Page 135 - RusRPTNov20

Perekrestok Vprok introduces wide assortment for stockpiling in advance
5Post is a logistics platform for X5 marketplace and partners. The goal is to become one of the leaders in e-commerce delivery to parcel lockers and pickup points located in Pyaterochka stores. Parcel pickup points will be available in 80% of stores in 2020 and 100% in 2022
Food delivery aggregator ‘Okolo’ is a platform for cross-format interaction with customers in food segment and other daily needs
Progress in new businesses is ongoing. Perekrestok.ru (launched in 2018) and 5Post (launched in 2019) are expected to become EBITDA positive in 2021, demanding >RUB10bn for each project. Express delivery (launched in 2020) will be EBITDA positive in 2023, requiring RUB1bn CapEx. X5 estimates it will earn 2.5% of revenue from new businesses in 2023
The effect from projects in digital transformation is estimated at RUB3.8bn in 2021 on EBITDA via algorithmic approach to assortment determination, store automation
October results: +13.8% y/y in sales and +5.5% in LFl sales – continued to see customers trading up
2021 guidance suggests no more new openings than in 2020; maintaining the level of profitability and returns in line with 2019-20
Financial guidance for 2021-23 implies >10% annual revenue growth per year; EBITDA margin staying above 7%; net financial debt/EBITDA<2.0; >50% of dividends to be covered by FCF
X5 guided a 50% y/y increase in dividends for 2020, which implies RUB45bn dividends with a potential for growth (vs RUB30bn fora 2019)
X5 Retail Group​ posted strong 3Q20 trading results that showed revenue growing 15.4% y/y, which was ahead of Sova Capital’s forecast of 14.8% y/y. LfL sales grew 6.9% y/y last quarter, its fastest rate in three and a half years​.
Like-for-like (LFL) tickets continued to benefit from trading up and accelerating inflation, while LfL traffic outflow eased for the group and nearly halted for Pyaterochka. We reckon that the results should have positive implications for the retailer’s 3Q20 financials (due on 26
135 ​RUSSIA Country Report​ November 2020 www.intellinews.com