X5 Retail Group’s Net Profit Drops 20% in First Half of 2012

The net profit of X5 Retail Group N.V. in the first half of 2012 came to $135m, which is 20.6% less than in the first half of 2011. The net profit margin came to 1.7%, Retailer.ru refers to the company’s consolidated intermediary financial data for the second quarter of the year as stating; these data were compiled in accordance with the IAS.

In the second quarter, X5’s net revenues rose by 9.8% in Russian rubles compared with a year earlier and amounted to 123.6bn RUR, and at the same time decreased by 0.8% in the U.S. dollars and amounted to $3.99bn. Sales grew among the ‘soft discounters’ (+4.7%), ‘corner shops’ (+35.9%), and online shops (+89.7%). The supermarkets and the hypermarkets’ revenues decreased by 4.7% and 18.7%, respectively.

The company’s gross profits reached $910m, which was 3.8% lower than in the second quarter of 2011. Gross margin came to 22.8%, which is 70 basic points lower than in the second quarter of 2011. The company reports this mainly has to do with the growing logistics expenses, namely, the initial direct import spending and the opening of the new distribution center; the growing losses on the seasonal increase in the fruit and vegetable supplies, and the disposal of the excess stock at the warehouses. EBITDA came to $280m, or 7% of the total net revenues. Net profit reached $69m, which is 6.2% less than a year earlier. The net profit margin came to 1.7%.


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