Page 151 - RusRPTSept22

9.8% – largely stable y/y.
● Net debt incl. cash on escrow accounts grew to Rb74.2bn vs Rb68.8bn
in 2021, while Net Debt/EBITDA declined to 1.9x and total debt amounted to Rb185.3bn.
9.2.5 Retail corporate news
• X5 Group
X5 reported 2Q22 IFRS results on August 2 . The profitability was exceptionally strong, above expectations.
Total revenue grew 19% y/y (to Rb648bn), with retail sales reported earlier. The growth was roughly the same as in 1Q22, supported by 20% food inflation. It came on the back of an 11.7% increase in blended LFL sales (+11% ticket; +0.6% traffic) and 7% y/y increase in selling space (+1% q/q).
This led to a 37% y/y increase in IAS-17 EBITDA (to Rb62bn; 9.6% margin) – an 1.3pp y/y increase in margin, with 0.2pp higher gross margin (25.5%) and OpEx growth by far lagging top-line (+11% y/y; operating leverage and cost control measures).
Net income (IAS-17) grew 58% y/y (3.9% margin) also backed by FX gain as ruble appreciated against dollar.
Net debt/EBITDA (IAS-17) stood at 1.7x (flat YTD).
OCF grew 10% y/y in 1H22 (+15% under IAS-17). Investing cash flow (mostly CapEx) decreased 13% y/y (to 3.0% revenue) considering suspended store openings in spring. As a result, OCF minus investing CF in 1H22 (IAS-17) stood at Rb33bn (c80% up y/y).
Outlook for 2022 and 2H22: 1) Profitability in 1H22 is exceptionally high – will likely be lower in 2H22 as plan ongoing price investments, diversification of supplier base and the development of X5’s private labels. 2) CapEx plans – will prioritise the expansion of Chizhik hard discounters (plan 400+ gross openings in 2022), Pyaterochka (1,400+ gross openings in 2022).
X5 also said it agreed to acquire 70% stake in two large retailers in Siberia (Slata and Krasny Yar), which in total have 236k sq m selling space (c3% X5 total) and 588 stores. The deal size was not disclosed. X5 applied for antitrust approval for the deal.
151 RUSSIA Country Report September 2022 www.intellinews.com