Sales growth of the biggest Russian retailer X5 Retail Group would not reach previously expected 15 per cent, Kieran Balfe, chief financial officer, warned investors on a conference call. Earlier Balfe said that the growth rate would be about 15 per cent for this year – but for the first half of the year X5 revenues rose by only 7.2 per cent.
The sales in hypermarkets fell by 14 percent in July. Net profit of the retailer fell by 6.2 percent to $ 68.9 million. EBITDA decreased by 1.6 percent to $ 280.3 million.
Despite the fact that the X5 Retail these results are still not bad, they do not seem so so good if compared to the indicators of the Magnet, X5 main competitor, according to VTB Capital analysts. Magnit EBITDA profitability reached 10.1 percent in the second quarter.
Source: www.retailer.ru