Page 113 - RusRPTJul20

another opened recently (on 1 June). That increased the count of express delivery outlets from 50 (as of 19 March) to over 200 in late May. Overall, online turnover accounted for 3% of the total in the Moscow Metropolitan Area, while the service is now present in Kazan, Krasnodar and Nizhniy Novgorod (in addition to the capitals). The company stated that three of its five Perekrestok.ru dark stores had reached positive EBITDA. We await greater details on the cost allocation. X5 Retail Group launched online operations in 2017 and total e-investments stand at RUB5-6bn, evenly split between the infrastructure roll-out and operational losses. The company sees the online food market surging 17x to RUB716bn by 2024 and targets a 15-20% market share. The latter would imply some 6% of total turnover in our model by 2024F and the most rapid pace among traditional retailers.
X5 Retail Group​ CEO Svetlana Demyashkevich gave an interview with Interfax. Key takeaways are below:
· FY20 dividends may see 50% growth to RUB45bn (RUB165/sh or 6.5% DY) with the potential for annual growth going forward
· Conservative opening plan for 2020 is still on track, though many negative COVID-related risks have not been realized
· Share of online business will grow to 7-10% in total revenue in the next several years (from c1% now)
· 2Q20 will be strong enough – sales growth in April-May close to 1Q20, EBITDA margin is above budget and close to 2Q19’s level of 8.3%, though June numbers are not yet clear
Russia's largest traditional retailer​ ​X5 Retail Group​ has continued its rapid expansion into the e-grocery segment ​amid the coronavirus (COVID-19) lockdown, boosting online sales and express deliveries by 40% month on month and 7-fold year on year in May 2020 to RUB2.4bn ($34.9mn). As reported by ​bne IntelliNews,​ last month X5 emerged as ​Russia's largest e-grocer​, with Magnit rival trying to ​catch up with its digital transformation​ and testing delivery solutions. Out of May online sales RUB1.7bn was attributed to its online sales platform Perekrestok.ru and RUB0.67bn to express delivery services. The online sales represent less than 5% of the total revenue (3% of the total sales come from e-grocery in Moscow and Moscow region alone). "X5 efficiently [has] used the quarantine to strengthen its online business, launch express delivery and enhance online platforms, which allows it to build a reliable base for further growth," BCS Global Markets commented on June 5. Three out of five of the Perekrestok.ru online supermarket’s dark stores are already reporting positive Ebitda, while new facilities in Vidnoye and Nizhny Novgorod are expected to achieve positive financials ahead of schedule.
9.2.6​ Agriculture corporate news
9.2.7​ TMT corporate news
RusAgro​ has announced the completion of its sowing campaign​, with the area down 8% y/y to 538,000ha due to the termination of lease agreements. In terms of the crop, grain lost 3% y/y (245,000 ha), oilseeds corrected 12% y/y (187,000 ha) and sugar was down 5% y/y (84,000 ha).
Russia's largest state-controlled bank​ ​Sberbank​ eyes 30% stake in e-commerce major​ ​Ozon Holdings​ controlled by multi-industry investment conglomerate ​AFK Sistema​, Reuters reported on June 4 citing unnamed
113​ RUSSIA Country Report​ July 2020 ​ ​www.intellinews.com