RUSSIA: X5 Retail acquires regional chain, reports strong FY growth | Progresiv
The X5 Retail Group has announced the acquisition of a regional supermarket chain, even as it reported strong growth for the fiscal 2017 year, helped by its largest single-year expansion of stores. 
The group said it has bought JSC Ufa Grocery, which operates 99 stores under the Polushka banner in Bashkortostan, following approval from the Russian competition regulator. No financial details of the deal were disclosed.
The stores, which have a total floor area of 65,500 sq. m., will nearly all be integrated into the Pyaterochka banner. X5 Retail will own 59 of the stores, with the rest being leased under long-term contracts.
Earlier, the group said its net retail sales in 2017 jumped up 25.5% to 1.29trn roubles (€18.5bn), with adjusted net profit surging up 51.5% to 33.8bn roubles, and adjusted EBITDA up 24.7% to 99.1bn roubles. Like-for-like sales were up 3.5%, with the average ticket spend edging up 0.1%.
The results were helped by a 29.1% rise in sales at Pyaterochka, a 20.3% jump at Perekrestok, and a 6.9% increase at Karusel, although they were partially offset by a 11.6% drop at the Express banner.
X5 Retail opened a record 2,934 new outlets during the year, and said it plans to add another 2,500 stores in the current fiscal year. (www.kamcity.com)
