X5 Retail sees sharp drop in H1 profits | Progresiv
The X5 Retail Group has reported a sharp drop in profits for its fiscal first half, hurt by rising prices and weak food inflation. 
For the six months, operating profit fell by 15.5% to 27.5bn roubles, while net profit dropped by 23.5% to 14.3bn roubles. Net retail sales, however, were up 19.8% to 732bn roubles, on like-for-like growth of 0.8%.
X5 noted that food inflation “remained at a record low level of 0.4%” in the second quarter, and it was also affected by higher staff and utilities costs. Store traffic growth also remained weak, edging up just 0.1% for the half, although the average basket was up 0.6%. The Pyaterochka and Perekestok banners continued to perform strongly, but Karusel remained a weakness.
CEO Igor Shekhterman said the group will “continue to focus on operational efficiency … especially at proximity stores.” He added that the group remains on track to open 2,500 new outlets in 2018. (www.kamcity.com)
