X5 RETAIL GROUP X5.RU 01
X5 reports 15.2% revenue growth in Q1 2023
5.8% adj. EBITDA margin pre-IFRS 16
+15.2% y-o-y | +35.9% y-o-y | ||
Revenue growth in Q1 2023 | Digital business (express | ||
driven by solid like-for-like (LFL)1 sales | delivery, Vprok.ru, 5Post and | ||
and selling space expansion | Mnogo Lososya) net sales | ||
growth in Q1 2023 | |||
Digital business net sales amounted to | |||
RUB 25.6 billion, which comprised 3.7% of | |||
consolidated Q1 2023 revenue. |
24.0% -88 b.p.
Gross margin under IFRS 16 in Q1 2023
(-88b.p. to 23.7% pre-IFRS 162) driven by the aggressive expansion of the Chizhik hard discounter format into the regions, the consolidation of Krasny Yar and Slata, as well as the transformation of Pyaterochka's CVP
10.2% | -143 b.p. | 1.4% | +98 b.p. | 2.65x | ||
Adjusted EBITDA3 margin | Net profit margin under | Net debt/EBITDA ratio under | ||||
under IFRS 16 in Q1 2023 | IFRS 16 in Q1 2023 | IFRS 16 as of 31 March 2023 | ||||
(-126 b.p. to 5.8% pre-IFRS 16) | (+92 b.p. to 1.7% pre-IFRS 16) | (1.13x pre-IFRS 16) | ||||
Amsterdam
27 April 2023
X5 Retail Group N.V. ("X5" or the "Company", LSE and MOEX ticker: FIVE), a
leading Russian food retailer that operates the Pyaterochka, Perekrestok and Chizhik retail chains, today released its unaudited condensed consolidated interim financial information for the three months ended 31 March 2023, in accordance with International Financial Reporting Standards, as adopted in the European Union.
- LFL comparisons of retail sales between two periods are comparisons of retail sales in local currency (including VAT) generated by the relevant stores. The stores that are included in LFL comparisons are those that have operated for at least 12 full months. Their sales are included in LFL calculations starting from the day of the store's opening. We include all stores that fit our LFL criteria in each reporting period. Sales of express delivery service from stores and dark stores that have operated for less than 12 full months are also included in LFL calculations.
- The pre-IFRS 16 financial measures are calculated by adjusting the applicable IFRS measures to include fixed lease expenses and fixed non-lease components of lease contracts, and to exclude any gain on derecognition of right-of-use assets and lease liabilities, depreciation of right-of-use assets and interest on lease liabilities, and gain/loss from asset sale and leaseback operations for the proportion of rights retained as recognised under IFRS 16.
- Adjusted EBITDA is EBITDA before costs related to the LTI programme, share-based payments, other one-off remuneration payment expenses and the impact of the Karusel transformation.
X5.RU 02
Profit and loss statement highlights4
IFRS 16 | Pre-IFRS 16 | |||||
change, | change, | |||||
RUB mln | Q1 2023 | Q1 2022 | y-o-y, % or | Q1 2023 | Q1 2022 | y-o-y, % or |
multiple | multiple | |||||
Revenue | 696,364 | 604,230 | 15.2 | 696,364 | 604,230 | 15.2 |
incl. net retail sales5 | 693,481 | 601,776 | 15.2 | 693,481 | 601,776 | 15.2 |
Pyaterochka (incl. express delivery) | 548,912 | 489,193 | 12.2 | 548,912 | 489,193 | 12.2 |
Perekrestok (incl. express delivery) | 101,442 | 96,565 | 5.1 | 101,442 | 96,565 | 5.1 |
Chizhik | 18,744 | 4,099 | 5x | 18,744 | 4,099 | 5x |
Karusel | 631 | 5,430 | (88.4) | 631 | 5,430 | (88.4) |
Gross profit | 167,231 | 150,430 | 11.2 | 164,949 | 148,472 | 11.1 |
Gross profit margin, % | 24.0 | 24.9 | (88) b.p. | 23.7 | 24.6 | (88) b.p. |
Adj. EBITDA | 70,923 | 70,179 | 1.1 | 40,236 | 42,532 | (5.4) |
Adj. EBITDA margin, % | 10.2 | 11.6 | (143) b.p. | 5.8 | 7.0 | (126) b.p. |
EBITDA | 70,191 | 69,556 | 0.9 | 39,504 | 41,909 | (5.7) |
EBITDA margin, % | 10.1 | 11.5 | (143) b.p. | 5.7 | 6.9 | (126) b.p. |
Operating profit | 30,516 | 26,190 | 16.5 | 19,332 | 17,106 | 13.0 |
Operating profit margin, % | 4.4 | 4.3 | 5 b.p. | 2.8 | 2.8 | (5) b.p. |
Net profit | 9,696 | 2,499 | 288.0 | 12,172 | 5,022 | 142.4 |
Net profit margin, % | 1.4 | 0.4 | 98 b.p. | 1.7 | 0.8 | 92 b.p. |
- Please note that, in this and other tables and in the text of this press release, immaterial deviations in the calculation of % changes, subtotals and totals are due to rounding.
- Net retail sales represent revenue from the operations of X5-managed stores net of VAT. This number differs from revenue, which includes proceeds from wholesale operations, direct franchisees (royalty payments) and other revenue. Including Mnogo Lososya, Vprok.ru, Krasny Yar and Slata
X5.RU 03
Revenue
Revenue growth reached 15.2% year-on-year in Q1 2023. Net retail sales increased by 15.2%, driven by a combination of 7.9% selling space growth and 6.5% LFL sales growth, while X5's digital business sales grew by 35.9% y-o-y.
Selling space by format, square metres (sqm)
CHANGE | CHANGE Y-O-Y, % | ||||
AS AT 31-MAR-23 | AS AT 31-DEC-22 | VS 31-DEC-22, % | AS AT 31-MAR-22 | ||
OR MULTIPLE | |||||
OR MULTIPLE | |||||
Pyaterochka | 7,634,733 | 7,497,056 | 1.8 | 7,183,452 | 6.3 |
Perekrestok | 1,068,031 | 1,085,496 | (1.6) | 1,094,674 | (2.4) |
Karusel | - | 49,225 | n/a | 108,982 | n/a |
Chizhik | 174,368 | 152,370 | 14.4 | 25,361 | 7x |
X5 Group6 | 9,203,045 | 9,107,479 | 1.0 | 8,528,416 | 7.9 |
Q1 2023 LFL store performance by format, % change y-o-y
In Q1 2023, LFL sales increased by 6.5% year-on-year, supported by solid LFL results of Pyaterochka and Perekrestok at 7.0% and 4.1%, respectively.
The LFL traffic was the main driver of LFL sales in Q1 2023, with LFL basket in positive territory at 2.8% year-on-year.
SALES | TRAFFIC | BASKET | |
Pyaterochka | 7.0 | 3.9 | 3.0 |
Perekrestok | 4.1 | 1.3 | 2.7 |
X5 Group7 | 6.5 | 3.6 | 2.8 |
For more details on net retail sales performance, please refer to X5's Q1 2023 TradingUpdate.
Gross profit margin
Gross profit margin under IFRS 16 decreased by 88 b.p. year-on-year to 24.0% (decreased by 88 b.p. year-on-year to 23.7% pre-IFRS 16)
in Q1 2023, mainly due to the aggressive expansion of the Chizhik hard discounter format into the regions, the consolidation of Krasny Yar and Slata, as well as the transformation of Pyaterochka's CVP.
- Including Vprok.ru dark stores, Mnogo Lososya dark kitchens, Krasny Yar and Slata stores and joint dark stores.
- Excluding Krasny Yar and Slata, Vprok.ru and Mnogo Lososya; including Chizhik and Karusel.
X5.RU 04
Selling, general and administrative (SG&A) expenses (excl. D&A&I and the impact of the Karusel transformation)
IFRS 16 | Pre-IFRS 16 | |||||
RUB mln | Q1 2023 | Q1 2022 | change, | Q1 2023 | Q1 2022 | change, |
y-o-y, % | y-o-y, % | |||||
Staff costs | (61,198) | (50,078) | 22.2 | (61,198) | (50,078) | 22.2 |
% of revenue | 8.8 | 8.3 | 50 b.p. | 8.8 | 8.3 | 50 b.p. |
incl. LTI and share-based | (732) | (376) | 94.7 | (732) | (376) | 94.7 |
payments | ||||||
staff costs excl. LTI and share- | ||||||
based payments as % of | 8.7 | 8.2 | 46 b.p. | 8.7 | 8.2 | 46 b.p. |
revenue | ||||||
Lease expenses | (5,271) | (4,169) | 26.4 | (31,357) | (28,168) | 11.3 |
% of revenue | 0.8 | 0.7 | 7 b.p. | 4.5 | 4.7 | (16) b.p. |
Utilities | (16,868) | (13,867) | 21.6 | (16,868) | (13,867) | 21.6 |
% of revenue | 2.4 | 2.3 | 13 b.p. | 2.4 | 2.3 | 13 b.p. |
Other store costs | (6,153) | (5,620) | 9.5 | (6,366) | (5,839) | 9.0 |
% of revenue | 0.9 | 0.9 | (5) b.p. | 0.9 | 1.0 | (5) b.p. |
Third-party services | (4,144) | (4,514) | (8.2) | (4,086) | (4,419) | (7.5) |
% of revenue | 0.6 | 0.7 | (15) b.p. | 0.6 | 0.7 | (14) b.p. |
Other expenses | (8,390) | (8,187) | 2.5 | (10,270) | (9,564) | 7.4 |
% of revenue | 1.2 | 1.4 | (15) b.p. | 1.5 | 1.6 | (11) b.p. |
SG&A (excl. D&A&I and the | ||||||
impact of the Karusel | (102,024) | (86,435) | 18.0 | (130,145) | (111,935) | 16.3 |
transformation) | ||||||
% of revenue | 14.7 | 14.3 | 35 b.p. | 18.7 | 18.5 | 16 b.p. |
SG&A (excl. D&A&I, LTI, share- | ||||||
based payments and the impact | (101,292) | (86,059) | 17.7 | (129,413) | (111,559) | 16.0 |
of the Karusel transformation) | ||||||
% of revenue | 14.5 | 14.2 | 30 b.p. | 18.6 | 18.5 | 12 b.p. |
X5.RU 05
In Q1 2023, SG&A expenses excluding D&A&I, LTI, share-based payments and the impact of the Karusel transformation under IFRS 16 as a percentage of revenue increased by 30 b.p. to 14.5% (increased by 12 b.p. to 18.6% pre-IFRS 16), mainly driven by increased staff costs, lease expenses and utilities as a percentage of revenue.
Staff costs (excluding LTI and share-based payments) as a percentage of revenue increased by 46 b.p. year-on-year in Q1 2023 to 8.7%, mainly due to a negative operating leverage effect.
LTI and share-based payment expenses amounted to RUB 732 million in Q1 2023, up by 94.7% from RUB 376 million in Q1 2022, driven by the introduction of the LTI programme for new businesses and an increase in accruals for the 2021-2023 LTI
programme on the back of updated KPIs and a reassessment of the probabilities of the KPIs' achievement.
Lease expenses under IFRS 16 as a percentage of revenue in Q1 2023 increased by 7 b.p. year-on-year to 0.8%, mainly due to an increase in the number of reverse franchising stores. The decrease in pre-IFRS 16 lease expenses by 16 b.p. to 4.5% was caused by a positive operating leverage effect for fixed lease rates.
Utilities costs as a percentage of revenue in Q1 2023 increased by 13 b.p. year-on-year to 2.4%, mainly due to a negative operating leverage effect.
Other store costs under IFRS 16 as a percentage of revenue in Q1 2023 decreased by 5 b.p. year-on-year (falling by 5 b.p. pre-IFRS 16), mainly due to the increased cost efficiency of security and cleaning services.
Third-party service expenses under IFRS 16 as a percentage of revenue in Q1 2023 decreased by 15 b.p. year-on-year to 0.6%
(down 14 b.p. to 0.6% pre-IFRS 16), mainly due to a shift in the timing of marketing initiatives.
Other expenses under IFRS 16 as a percentage of revenue in Q1 2023 decreased by 15 b.p. year-on-year to 1.2% (down 11 b.p. to 1.5% pre-IFRS 16), due to the high base effect in Q1 2022 driven by one-off expenses.
Lease/sublease and other income8
As a percentage of revenue, the Company's income from leases, subleases and other operations under IFRS 16 totalled 0.7%, representing a decrease of 31 b.p. year-on-yearin Q1 2023 (a decrease of 32 b.p. to 0.7% pre-IFRS16), driven by lower income from sales of recyclables.
8. Mainly consists of lease/sublease income, income from the sale of recyclable materials and other one-off gains.
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Disclaimer
X5 Retail Group NV published this content on 27 April 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 April 2023 07:47:10 UTC.
