Source - SMW
X5 Retail Group's first half revenues rose to RUB613,879m - 27.0% up on last time.

Gross profits of RUB147,233m were up 26.9% and EBITDA increased 37.0% to RUB50,000m.

The group said revenue growth accelerated from 26.5% in Q1 year-on-year to 27.5% in Q2 2017 year-on-year on the back of solid like-for-like  sales and strong selling space expansion.

 Pyaterochka was the main driver of growth with net retail sales up by 31.9% in the second quarter and 31.1% in the first half.

X5 added a total of 689 new stores in Q2 2017, delivering selling space growth of 270.6 th. sq. m.

Chief executive Igor Shekhterman said: "I am very pleased with the results that we managed to achieve in the first half of 2017, with revenue growth of 27% and an EBITDA margin of 8.1%. In addition, I would highlight the excellent performance of X5's three major formats, which all showed positive LFL growth.  

"We remain the fastest growing public retailer in Russia and are moving steadily towards achieving our long-term aim of having 15% of the food retail market in Russia by the end of 2020. 

"At the same time, we are growing while continuing to implement a customer centric approach, as we carefully adapt our value proposition to meet consumer needs. 

"For example, in April we launched a loyalty programme at Pyaterochka, which generated very positive feedback from our customers and we are already seeing the results of this programme.

"I would also point out that we are starting to benefit from our efforts to increase operational efficiency. Not only have they helped to enhance the customer experience overall, they have also translated into higher levels of profitability.

"Looking ahead, I am confident that we can continue to outpace the market in terms of our growth, as we maximise performance across all three of our core formats, thanks to our efficient, decentralised business model."