Page 112 - RusRPTJul20

Reportedly, OAK could not directly obtain RUB250bn from the state budget to cover banking debt and restructure RUB150bn of liabilities. Overall, the corporation needs to restructure about RUB400bn of debt, and it owes about RUB535bn to banks. The largest creditors of OAK are Sberbank, VTB, Gazprombank and Novikombank, according to ​Vedomosti.​ OAK is the largest military industrial major, uniting all aviation building and repair assets in the country. In 2019 its revenues were down 15% to RUB315bn; net loss doubled to RUB60bn.
9.2.5​ Retail corporate news
X5’s market share in St Petersburg was above 25% in 2011-13 – more than allowed under Russia’s anti-trust laws – with the new roll-out on hold as a result​. The city and its region are not a prime source of organic growth for the company, and the North Western federal district accounted for 11% of its store base as of YE19, but also 9% of new openings last year. The Central, Volga and Southern federal districts accounted for 68% of new outlets in 2019, becoming the prime expansion drivers.​ ​The announced figure is above the 25% allowed by the retail law and FAS is to request additional materials from X5 Retail Group and the way that the company achieved these results, i.e. via an inflow of clients or new store openings. It will then announce a final view and the course of actions thereafter
X5 Retail Group​ announced its entrance into the Kaliningrad region on June 26​, with three stores opened in the Kaliningrad metropolitan area and two more in nearby Zelenogradsk and Chernyakhovsk, all of them under the new Pyaterochka concept. The combined area of all the facilities exceeds 3,000sqm, with a total of 90 people employed, while SKUs range from 4,700 to 5,800. Around 40% of the assortment is locally produced, including 60% in the fresh category and 100% for fruits and vegetables. The company also plans to open 10 more stores by YE20. The Kaliningrad region is the most western region of Russia, and is home to 0.7% of the country's population, while its share of the total food retail market is 0.5%. In its key regions of presence, X5 is already close to, or has passed, the allowed threshold of 25% of the market (such as in St Petersburg) and new regions are currently on the agenda. In 2019, the company opened 1,866 stores, and the top three regions were the Central, Volga and Southern federal districts, which accounted for 68% of new outlets, becoming the prime expansion drivers. Following the lockdown restrictions and the growing popularity of delivery retail channels, the company cut its new openings target 20% to 1,600 locations and restyling plans 40% to 780 for 2020. These measures imply savings of RUB 15bn in capex.
X5 Retail Group has announced its e-grocery results, with sales surging 40% m/m in May to RUB2.37bn (including VAT). ​The stock-up mission via Perekrestok.ru accounted for 72% of the total, with 350,000 orders and an average ticket of RUB4,813. The remaining 28% came from express delivery, that saw 364,000 orders with a blended check of RUB1,849. Individually, these services grew 35-41% m/m and had comparable daily order counts of 11-11,500. On a separate note, Alexander Torbakhov is to leave the Supervisory Board after his appointment as Beeline CEO. The search for a successor is underway. The announced pace is likely to strengthen the company’s leading position in the e-grocery sector (which it attained in April). That sector saw the company’s turnover surge 370% y/y, after the 7x y/y uplift in May, as X5 has added one additional dark store for Perekrestok.ru, while
112​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com