Page 138 - RusRPTNov23

net profit amounted to RUB 22.8 billion. The revenue of MIC Group for 3Q23 amounted to RUB 19.4 billion.
The company, taking into account the consolidation of the MIC Group in the 4th quarter, expects to achieve a sales target of 1.6 million square meters by the end of 2023. m, revenue at the level of more than 300 billion rubles, and the indicator is adjusted. EBITDA – more than 70 billion rubles
9.2.5 Retail corporate news
• X5
Russia’s largest food retailer X5 Group (operates Pyaterochka supermarkets, Perekrestok proximity stores, and Chizhik discounters) had its net IFRS profit jump by 86% year on year to RUB25.8bn ($274.5mn) in 3Q23.
X5 revenues gained 23% y/y to RUB796bn, with EBITDA was up by 22% y/y to RUB94bn. In 9M23 overall X5’s revenues were up by 19% y/y RUB2.27 trillion, EBITDA up by 8.4% to RUB257bn, and net profit was up by 43% to RUB62bn.
As followed by bne IntelliNews, amid the accelerating consolidation in the retail sector in 2022, X5 made a run for more market share in the offline segment, acquiring two major Siberian retailers, boosting discounter format and private label sales.
Prior to Russia's full-scale military invasion of Ukraine, X5 also emerged as the country's largest e-grocer. Post-invasion the retailers seemed to set digital ambitions aside and focused on rerouting supply channels and expanding in the traditional offline segment through acquisition of smaller regional chains.
But the most recent deal by X5 closest rival Magit to acquire e-commerce platform KazanExpress could reignite the Russian e-grocery race. X5 digital business net revenues in 3Q23 were up by 98% year on year to RUB29bn or 3.7% of total.
• Magnit
Russia’s second-largest offline food and FMCG retailer Magnit will acquire 100% of KazanExpress e-marketplace from AliExpress Russia (56.3%), the owner of Kazan holding FIX Sergey Eremeev (33.8%), as well as the founders of the marketplace Linar Khusnullin (7.8%) and Kevin Handa (2.1%), Kommersant daily and RBC business portal report. As followed by bne IntelliNews, prior to Russia's full-scale military invasion of Ukraine, Magnit had rapidly closed the gap with market leader X5 Group by revamping its cosmetics format and buying a major retailer Dixy, almost doubling its size in
138 RUSSIA Country Report November 2023 www.intellinews.com