X5 boosts revenue 20.8% in Q4, 18.6% for year, in line with forecast
MOSCOW. Jan 21 (Interfax) - X5 Retail Group, which manages the Pyaterochka, Perekrestok and Karusel stores, boosted its revenue by 20.8% in Q4 2014 in comparison with the same period in 2013, to 180.89 billion rubles, the company said in a statement.
In 2014 the retailer's revenue rose 18.6% to 631.93 billion rubles. Therefore the trend in sales for the year was in line with the retailer's forecast, which was 17%-19%, it was raised from 10%-12% in October.
In December X5's revenue rose by 23.6%, revenue growth accelerated from 19.4% in November and 18.5% in October.
The retailer's main revenue generator, the chain of Pyaterochka discount stores, increased sales by 29.1% in Q4 to 125.94 billion rubles. The Perekrestok supermarkets boosted revenue by 4.3% to 32.38 billion rubles and Karusel hypermarkets increased revenue by 7% to 19.65 billion rubles. X5 Retail's convenience store chains (Perekrestok Express and Kopeyka) increased sales last quarter by 25.6% to 2.84 billion rubles. X5's internet store, E5, reduced sales by 86.7% to 80.8 million rubles. E5 stopped working on January 1, 2015.
In Q3 of last year X5's revenue grew more rapidly, by 23.1%. In particular the growth of sales at Pyaterochka was 30.3%, Perekrestok - 8.1% and Karusel - 8.6%.
"Higher food inflation in 2014 drove average customer spending across all formats while Pyaterochka also benefited from an increase in basket volume during the year," X5 said in a statement.
In Q4 the retailer's LfL sales increased by 11.6% thanks to an increase in the average check of 12%. Consumer traffic fell by 0.4%.
LfL revenue of Pyaterochka rose by 15.7% thanks to a 14% increase in the average check and 1.5% increase in traffic. Perekrestok's LfL sales in October-December rose by 2.9%. The average check rose by 10% and traffic fell by 6.5%. Karusel's LfL sales in Q4 rose 4.8% thanks to a 12.2% increase in the average check, though traffic fell by 6.6%.
For the year X5's LfL sales increased by 9.8% thanks to a 9.2% increase in the average check and 0.6% increase in traffic.
Pyaterochka's LfL revenue in 2014 increased by 13.3% with an increase of 11.5% rise in the average check and 1.6% increase in consumer traffic. At Perekrestok supermarkets and Karusel hypermarkets, LfL traffic fell, by 2.9% and 1.8%, respectively, and the average check rose by 5.2% at the supermarkets and 7.1% at the hypermarkets. As a result LfL sales at Perekrestok rose by 2.1% last year and Karusel's LfL sales rose by 5.1%.
"The increase in customer visits was driven primarily by Pyaterochka expansion, as well as higher traffic in existing stores due to improved promotional campaigns and assortment rotation, while retargeting of promotional activities at Perekrestok coupled with the difficult macroeconomic environment, mainly in Q4 2014, resulted in a reduction in customer visits and traffic at Perekrestok and Karusel," the statement said.
In 2014 X5 opened 939 new stores including 478 stores in Q4. A large portion of openings occurred in the Pyaterochka chain (907 new discount stores for the year including 447 in October-December). In addition, in Q4 the company opened 14 Perekrestok supermarkets and one Karusel hypermarket.
For the year, X5 closed 46 Pyaterochka stores, 22 Perekrestok supermarkets, two Karusel hypermarkets and 45 Express stores, the results of which did not meet the format criteria. In addition, the company sold 12 Perekrestok supermarkets in Ukraine in Q1.
The selling space of X5 in 2014 increased by 15.7% to 2.572 million square meters.
In 2013 the retailer developed slower: for the year X5 opened 742 new stores, including 357 in Q4. The company's revenue in 2013 rose by only 8.7% to 532.69 billion rubles.
