Author Archives: CrispConsulting

Metro Cash & Carry to Expand to the Urals

Written by

Metro Cash & Carry will open a shopping centre with the total area 10,000 sq.m in Magnitogorsk at the end of 2011. It will be the third cash-and-carry centre in the Chelyabinsk Region. The company has also reported that it is planning to open a shopping centre with the total value about EUR 20m in Smolensk. The total area will be 9.800 sq.m, the shopping area – 5.800 sq.m.

Metro Cash & Carry — is one of the world’s largest small-scale wholesale operators. The company operates more than 655 stores in 31 countries under the brand names Metro and Makro. It is present in Russia since 2000 with 58 shopping centers in 39 regions. 2010 the company’s sales grew by 13% y-o-y and reached RUR 2.93bn.

Source: www.foodretail.ru

X5 Retail Group Reports Surge in FY Profits

Written by

X5 Retail Group reported a strong rise in full-year profits, noting that net profits jumped up 64% to $271m. These results are due to the fourth-quarter performance, when profits nearly doubled to $88m. Meanwhile, full-year EBITDA was up 15% to $843.6m.

Earlier the company announced a strong rise in full-year sales. X5 continues to keep the average prices well below the country’s official inflation rate and provide considerable savings to Russian consumers. This approach supported strong like-for-like growth but put pressure on gross margin and EBITDA.

Source: www.freshplaza.com

The X5 Retail Group reported a strong rise in full-year profits, noting that net profits jumped up 64% to $271m. These results are due to the fourth-quarter performance, when profits nearly doubled to $88m. Meanwhile, full-year EBITDA was up 15% to $843.6m.

Earlier the group announced a strong rise in full-year sales. The company continues to keep the average prices well below the country’s official inflation rate and provide considerable savings to Russian consumers. This approach supported strong like-for-like growth but put pressure on gross margin and EBITDA.

Russia Lowered Apple Imports in January-February 2011

Written by

Analysts of Fruit-Inform Project report of the considerable decrease of apple imports in Russia in the first months of 2011.
“Russia lowered apple imports due to price growth being sharper than in the last season, and overall shortage of high-quality apples in Poland and EU”, Andriy Yarmak, Head of Fruit-Inform Project, says. “However, decrease of apple imports was compensated by growth of imports of bananas, oranges, and mandarins which grew by 7%, 26%, and 14% respectively over 2 first months of 2011”, the expert goes on.

As before, Poland is the major supplier of apples to the Russian market. Poland’s share in total apple imports over the first 2 months of 2011 reached 37%. China and Serbia were among top-three major apple suppliers followed by Germany, Moldova, Belgium, and Ukraine.

Source: www.lol.org.ua

Magnit Grows Faster than Х5

Written by

The profit of “Magnit” in RUR terms grew by 53.15% in Q1 2011 y-o-y and reached RUR 75.3bn. In USD terms the profit increased by 56.4% to USD 2.56bn. Magnit’s profit in the segment of hypermarkets has doubled in Q1 2011 and reached RUR 8.86bn and USD 296.6m.

Magnit’s net retail profit in March 2011 grew by 53.75% y-o-y and reached RUR 27.3bn.
During January-March 2011 Magnit opened 134 outlets and the total number of stores grew to 4189. During the same period X5 Retail Group opened 76 new stores with the total number increasing to 2545.

Source: www.foodretail.ru

X5 Retail Group Reports Q1 2011 Trading Results

Written by

X5 Retail Group N.V., Russia’s largest retailer in terms of revenue, announced its retail sales and operational performance for the first quater of 2011. Consolidated net retail sales increased 48% y-o-n in RUB terms to 111.989m and in USD terms 51% to 3.826m. 76 stores added on net basis in Q1 2011, including 80 soft discounters, 2 supermarkets, 2 convenience stores and closures of 8 Kopeyka stores. Net addition of selling space totaled 16,000 sq.m.
Andrei Gusev, X5 Retail Group CEO, commented:  “Sales grew 48% in RUB terms in the first quarter or 29% excluding Kopeyka, led by a strong recovery in supermarket LFL sales growth and sustained performance of discounters”.

Source: www.retailer.ru, www.investegate.co.uk

Russian Retail Market Recovered after the Economic Slowdown

Written by

In 2010, Russian retail market recovered after the economic slowdown observed in the previous year and increased by 12.6% to RUB 16.4tr ($541bn). However, the latest PMR report „Retail in Russia 2011 – Regional focus. Market analysis and development forecasts for 2011-2013” shows that particular regional retail markets still reveal differences in their development due to their unique nature and local characteristics.

Being the smallest and the most populous region of Russia, the Central Federal District remains the largest retail market in the country, accounting for 34% of country sales in 2010. The majority of the largest retailers in Russia originate from Moscow, which gives the Central Federal District the special status of the region accommodating the leading domestic operators as well as foreign retailers establishing their presence in Russia.

In dollars, retail market in Russia gained 80bn in 2010, of which 60bn excluding an effect of exchange rates. The majority, i.e. more than one-third, was worked out in the Central Federal District. The Southern and Volga Federal Districts contributed to the Russian growth evenly. Owing to these three districts, the Russian retail market gained nearly $57bn in 2010.

The expectations of local retail operators regarding future development after the financial crisis vary considerably depending on the retail sector. Thus, in grocery retailing the financial crisis has stimulated market consolidation. The segment witnessed many takeovers across the country. Generally, according to PMR report, the retailers remain optimistic regarding the future development of the market.

Source: www.freshplaza.com

JFC Group Draws USD 138m as Syndicated Loan

Written by

The loan represents a credit line for 3.5 years, subject to depreciation, which amounts to USD 88m and RUB 1.5b. The loan was drawn to finance the general corporate goals of the Group’s companies and investment programs, such as further expansion in Central and South America and construction of new logistics centres in 15 Russian cities.
As a result of the investment strategy JFC Group plans to strengthen its leadership on the Russian banana market. The leading position is supposed to be supported not only by import volumes, but also by the possibility to ensure, that consumers all over Russia are provided with high-quality produce.

Source: www.fruitnews.ru

X5 Retail Group Changes Strategy

Written by

X5’s largest shareholder, Alfa Group, is reportedly considering a merger with a large market player – namely Metro Group or Turkish Migros – in the next two years, Kommersant reported.

New CEO Andrei Gusev, who was previously head of X5’s M&A department, said that the retailer was not interested in an acquisition in its domestic market, a strategy which X5 has followed over the last five years.

With new management in place, X5 is changing its strategy. It plans to grow organically, partly because there is lack of acquisition targets in the Russian retail scene, but also because the retailer has a lot of debt.

Source: www.retailer.ru, www.foodnewsweek.ru

Magnit Plans Massive Expansion in 2011

Written by

Magnit, which has the largest number of retail outlets in Russia, intends to invest USD1.5 billion in opening 800 convenience stores, about 200 drugstores under the Magnit Cosmetic brand and up to 55 hypermarkets in 2011, the retailer said. In contrast to this, Auchan has announced it will be opening fewer stores than planned in 2011, as it is hard to find suitable land.

Last year the retailer opened 800 supermarkets and neighbourhood stores and 27 hypermarkets, whereas its rival X5 has expanded its store network by around 480 stores.

Source: www.retail.ru