By Michael Susin
X5 Retail Group NV said Tuesday that net profit rose for the second quarter backed on strong revenue increase and that it plans to accelerate growth and expansion through its Chizhik hard-discount chain.
The Russian food retailer, which is listed in Moscow and London, said that net profit for the three-months ended June 30 rose 80% on year to 26.76 billion Russian rubles ($424.8 million).
Revenue came in at RUB648.95 billion from RUB546.51 billion, driven by a 38.4% sales increase in a like-for-like basis.
“We anticipate that ongoing price investments and the adaptation of our product assortment – including the diversification of our supplier base and the development of X5’s private labels, which are seeing growing customer demand – will contribute to stabilizing margins at lower levels in the second half of 2022,” Chief Executive Igor Shekhterman said.
X5 added that it will accelerate its Chizhik hard discounter format by opening 400 new hard discounter stores in 2022. The Chizhik business delivered a 30-fold revenue increase in the first half of 2022 and performed above expectations, it said.
“The chain’s footprint will include up to 500 hard discounters spanning 11 regions of Russia by the end of the year,” the company added.
Write to Michael Susin at [email protected]
Credit: www.marketwatch.com /