V. News and forecasts of X5 Retail Group N.V. on achieving strategic goals
At the end of the day, X5 Retail Group, one of the largest food distribution companies in Russia, announced that the Moscow Exchange has decided to include global depositary receipts (GDR X5) in the first-tier quotation list. Trading in global depositary receipts on the Moscow Exchange began on February 1, 2018. With this information, we will try to find out how there is a new representative of funds for the mid-Russian investment portfolio.
About the company
X5 Retail Group is one of the leading Russian food distribution companies. The company operates several retail outlets: Belya Budinka stores under the P'yatirochka brand, supermarkets under the Perekrestok brand, hypermarkets under the Karusel brand, Express-Retail stores under various brands. Global depositary receipts of the X5 group are traded on the London Stock Exchange (ticker LSE: FIVE) and Moscow Stock Exchange (ticker MCX: FIVE). Skin NDR represents 0.25% of one initial share.
Operational displays
The company finally revealed key operational indicators for the fourth quarter and 2017. In 2017, 2,934 stores were opened in droves, a record increase in history. The total number of open stores as of April 31, 2017 was 12,121, which is 31.94% more than in 2016.
The net increase in retail space in 2017 exceeded one million square meters. meters and became 1,178 thousand. sq. meters The growth of retail space was due to the expansion of Pyatirochka stores. In 2017, the trading area increased by 27.38% compared to 2016 and reached 5,480 thousand. sq. meters
Net sales revenue for 2017 increased by 25.48% compared to 2016 and reached a record value of 1,286.87 billion rubles. In 2014, the increase in net sales turnover was at a high level, with the average increase being 24.72%.
The main contribution to the growth of the net profit of X5 Retail Group since 2011 is to work on the Pyatyrochka trade border, mainly for the growth of the number of stores and retail space along the border.
The average bill for pouches in 2017 increased slightly, by 0.16% and became 382.50 rubles.
The dynamics of the number of purchases has been growing since 2013; in 2017, the number of purchases was 25.28% versus 24.48% in 2016.
Analyzing the dynamics of flat sales (LFL), it is significant that an increase in traffic is expected for all three main formats. Moreover, the growth of LFL traffic of X5 Retail Group became a record in 2012, increasing to 3.00% in 2017 growth versus 2.50% in 2016 growth.
Yak for life (LFL) – One of the important methods for analyzing sales in the retail trade in the minds of the growing number of stores. This indicator equalizes the sales obligations of the in-line market to the previous year; during the LFL expansion, only stores that have been operating for at least 12 months will be insured. Meta-display - turn on the influx of seasonality, identify the reasons for the decrease in turnover and the flow of buyers, and also predict the dynamics of sales in future periods.
Sales revenue per store has been steadily decreasing since 2011; in 2017, the average revenue per store was 106.17 million rubles, which is 5.14% lower than the 2016 value. The net profit from sales per one store for pouches in 2017 decreased by 13.55% compared to 2016 and amounted to 2.14 million rubles. In 2015, net profit per store increased by 5.94%.
Financial displays
At the end of 2017, the company disclosed unaudited financial results for the 3rd quarter and 9 months of 2017. Gross income from pods in 9 months increased by 24.89% compared to the same period in 2016 and amounted to 222.99 billion rubles, against 178.55 billion rubles in 2016. Gross profitability per bag for 9 months of 2017 was 23.89% versus 24.10% for the same period in 2016.
The EBITDA figure for the 9 months of 2017 increased by 28.44% to the same period last year and reached 72.39 billion rubles. The EV/EBITDA multiplier value was 6.17, versus 8.82 in 2016. The EBITDA margin for the 9 months of 2017 became 7.76% versus 7.60% for the 9 months of 2016.
Net income from pouches in the 9 months of 2017 increased by 30.69% and amounted to 25.97 billion rubles, compared to 19.87 billion rubles for the same period earlier. The value of the P/I multiplier became 20.02 roki, for the company “Magnit” after a significant drop in the exchange rate of shares, the value of the P/I multiplier became 13.91 roki, which is significantly lower and looks good.
X5 Retail Group for 9 months of 2017 increased its net income by 22.51 billion rubles up to 2016. Zagalny Borg increased by 16.03 billion rubles and became 172.06 billion rubles. The value of the Net Debt/EBITDA multiplier decreased to 2016 due to the increase in EBITDA and amounted to 1.74.
In the spring of 2017, Naglyadova Rada of X5 Retail Group confirmed its first dividend policy. In advance of the new dividend policy, Borgov's attention is of greater importance. Since the Net Debt /EBITDA ratio is less than or more than 2.0, the level of dividend payments is within the range of 25% of net income, which is covered by the consolidated financial position of the MSF Z. The first dividends of the company's shareholders can be withdrawn as early as 2017, the dividend yield can become 1.50 to 2.00%, which, in our opinion, is positive for the company's shareholders.
Due to the strong forward operating indicators of the X5 Retail Group company, we are aware of the increase in the financial indicators of ISFZ in 2017. Group X5, and in the face of increased competition, is demonstrating an aggressive rate of growth. The company's shares can be added to the average investment portfolio, often not more than 7%. The release of the financial results of the ISFZ for 2017, in our opinion, will help increase the capitalization of the company. An additional driver for the growth of the company's shares may be the announcement of the first dividend payments to its shareholders. In addition, listing on the Moscow Exchange increases the chances of inclusion in the MCSI index, which will lead to an influx of capital in GDR X5 from the side of great investors. The growth potential is estimated conservatively at 22% (target RUB 2,460-2,480 per NDR).
This information does not constitute an invitation to action and we encourage you to make your own investment decisions. The editors are not responsible for any direct or indirect changes in the content of the materials.
I took over the position of the head director of the 2015 leaf fall, replacing Stéphane Ducharme, who worked on this plant for three years. During that period, with the support of the directors, of which I was a member, the company's management carried out a large-scale program to change the positioning of the X5 Retail Group and the trading range that was included in its warehouse. The new strategy has transferred the formation of a flexible multi-format business model, which will ensure the growth and adaptation to changes in the needs of Russian buyers, as well as the careful development of the principles of effective business gostrokovy development.
I am proud to announce that in three years the company has been able to successfully implement its goals, including in the minds of the tense macroeconomic situation of the remaining repeaters of the destiny. Regardless of the fact that in 2015 the X5 company achieved record results for the company due to low performance, to assess the effectiveness of strategic changes it is necessary to take into account the achievements of the remaining three factors:
- Viruchka in 2012-2015: Growth by 64.7% to 808.8 billion rubles.
- Store sales in 2012–2015: increase by 37.6% to 2.5 billion sales
- Retail space in 2012–2015: increase by 69.2% to 3,333 thousand. m 2
- Number of stores in 2012–2015: increase by 84.6% to 7020
- X5 stores are represented in nine Russian federal districts, reaching 88% of the region's population.
Having achieved truly significant results, the company was able to become a leader in the rate of growth, surpassing the ten largest companies in the Russian food and gas market.
achieving strategic goals
In 2015, X5 Retail Group achieved significant results in its five main strategic objectives:
Multi-format operating model: We were able to lead stores of three main formats onto the trajectory of self-sustaining growth. Thus, the net sales of the Pyatyrochka measure, a value proposition that better meets the needs of buyers that have changed, increased by 34.3%; the winning margin of the “Crossroads” - by 12.5%, and the winning margin of “Carousel” - by 11.6%, up from 2014. Thus, the rate of growth in X5 trading revenues significantly exceeded the market's performance indicators for the growth of general merchandise turnover in Russia by a total of 8.3%.
In 2015, the sales area of the P'yatirochka stores increased by 668.4 thousand. m2 will also open 1,476 new stores, which is a record high not only for X5, but also for the Russian retail market as a whole. Merezhi "Perekrestok" and "Carousel" also continued their expansion, adding 75 and 8 new stores. The net trading area of the Perekrestok junction increased by 68.2 thousand. m2, “Carousel” borders - by 31.5 thousand. m2.
Increased value proposition: skins from formats X5 orientations of the singing group of the population of Russia and the starry rock are actively working on adapting their value proposition to the minimal needs of buyers and intelligent market minds, so that In other words, it allowed us to maximize the share of expenses of buyers and the market share of the company.
A deeper understanding of customer needs and production capacity are adjusted to the changes that are expected that would be impossible without involving all departments of the company's IT systems that allow for accurate analysis market conditions and provide greater external visibility into buyer advances and pricing trends.
Balanced growth: In healthcare, it is clear that there is a low representation of current subdivisions on the market; in order to achieve our goals, we may rely most heavily on the potential of organic growth. Our traders have a wealth of Galouzean evidence on the development of business in all formats and are one of the best experts on the market in such matters as determining the optimal location for growing a store and promptly opening new facilities. c, the reconstruction work is carried out by closing the store for a minimum period.
To select new locations, we develop stores using new analytical technologies and, in addition, we have staff resources to carry out the acquisition of land plots and the daily life of retail facilities. This allows us to quickly make decisions, control spending and open new stores quickly. Despite the fact that the company is focused on organic growth, X5 also has wide opportunities to participate in the interests of growth and expansion, so that it can quickly enter the market of a new region or increase its position in the main regions ions of presence.
Efficiency of operational activities: The continued growth that the company has achieved has resulted in high standards of operational efficiency and continuous work on advancements and efficiency. X5 Retail Group is one of the largest SAP customer solutions in the retail trade sector: our innovative IT platform allows you to analyze data on billions of purchases in real time. Finance department managers play an important role in the control and analysis of key indicators of the effectiveness of our formats and competitors, as well as in the increased accuracy of forecasting.
In addition, we have achieved a significant increase in transport and logistics efforts due to the increase in the efficiency of the work of separate departmental centers and the resulting increase in the capacity of the transport fleet.
Highly qualified employee: One of the most important factors for our success is the achievement of the pharmaceutical industry, which defines the trading boundaries of skin formats and the X5 corporate center. Having grown up with the obligations of the head and new director, I believe that the company will not slow down the pace of growth due to the first-class representatives of the X5 Retail Group. For the number of months that I worked together with Stefan Ducharme during his transition to the Posad of Head Naglyadova, I became the greatest equal to the professionalism of the X5 military officers.
the situation in Galusia
Regardless of the decline in most of the main economic indicators of Russia, our company has achieved significant growth. In our opinion, the difficult economic situation will continue throughout 2016 and into 2017.
Prices for chicken products will continue to rise, and the growth of real wages will increase or change to decreases. This leads to a reduction in spending on groceries in the budget of shoppers and influences the behavior of shoppers, who are trying to get skin care at a store that costs less, searching for the most attractive propositions, choosing cheaply. Our products make great purchases.
Similar trends are emerging not only in the company’s work, but also in the situation in the field of retail sales of halves. However, X5 is ready for such folding machines: our multi-format operating model allows us to cover different social classes of the population of Russia, and constant work on optimizing the value proposition of trade measures makes it possible to satisfy consumers buyers who change, from the skin class.
X5 will not provide every Russian with the ability to buy products in current stores, which guarantee access to essential goods at reasonable prices, and this itself becomes our main advantage, especially when working with companions, who are the most vulnerable not to negative changes in the economy. Therefore, we have increased the number of promotions and expanded the range of goods in the lower price segment, and, as part of supporting the most diverse groups of buyers, pensioners are now aware of the possibility of receiving socially significant benefits. products at special prices, so you don’t miss the discounts that you already get in our stores.
In the long-term perspective, we maintain an optimistic view of the development of the Russian market of retail trade, with some traditional trade formats and small regional measures gradually coming to fruition in the hands of the leading traders. rinku.
prospects
Regardless of the difficult economic situation, X5's results in 2015 completely surpassed those of the ten largest Russian retailers and the market with a lead in which profitability was saved on the target market. In the fourth quarter of 2015, we ranked first among public companies in the divisional trading for the rate of growth of net divisional profit, which created a special basis for the improvement of the company's position in 2016 roci.
The current market environment for us is an hour of new opportunities that we plan to effectively capitalize on in the future for the strategic growth and further development of the company.
To this day, we have already achieved significant success in transforming our business, but we do not plan to rest on our achievements. Our strategic priorities include improving the operating model, increasing operational efficiency, reducing value propositions, and, obviously, preserving leading positions in the market in the minds of oh the transition from the traditional to the daily format of trading.
One of the most important tasks for me is the development of the X5 corporate center, not only in terms of increasing the efficiency of managing our brands, but in the context of expanding its capabilities to improve the potential of the flow situation in the sector with maximum good for the company.
We have modernized the IT infrastructure and continue to promote innovative technological solutions in all divisions of the company, which can be positively reflected in the performance indicators of our robots, as well as the accuracy of the forecast. There are no problems with the behavior of Russian companions. We will also continue to develop transport and logistics infrastructure so that further increases in efficiency can be achieved.
We are growing our business and adapting to the needs of our clients for the benefit of all parties involved: buyers to find the optimal value proposition, and customers to be able to sell goods and through large divisions, and shareholders benefit from participation in a stable, growing business of such a scale.
I would like to thank our customers once again, whose loyalty is the guarantee of our success, as well as our customers, shareholders and members of Naglyadova for the sake of the company for the encouragement they gave us to our fate.
In addition, I would like to commend the management and the entire team of X5 Retail Group for their highly professional work and outstanding performance in line with the previous tasks. Our new products are the basis for the success of X5 Retail Group today and in the future, and I am grateful for the opportunity to work on a new plant in such a team over the creation and development of the largest food retailer in Russia.
Igor Shekhterman
Head Vikon's Director
Name of the organization Limited Liability Company "IKS 5 Retail Group" INN 7733571872 Code of the type of economic activity according to the OKVED classifier 70.20 Code according to OKPO 96042871 Form of ownership (according to OKFS) 16 - Private property Organizational and legal form (according to OKOPF) 65 - Report type 2 - Povniy One in the world 384 - Thousand rubles Warehouse of information
Responsibility for other fatesFor ease of reference, zero rows are included
Balance sheet
| name of the show | Row code | On 31st birthday 2015 | On 31st birthday 2014 |
| Assets | |||
| I. Non-current assets | |||
| intangible search assets | 1130 | 759 | 1 043 |
| Main features | 1150 | 3 526 | 3 919 |
| Financial investments | 1170 | 4 960 255 | 4 817 010 |
| investment of depositable assets | 1180 | 81 286 | 50 625 |
| Other non-current assets | 1190 | 5 | 15 |
| Together at the same time I | 1100 | 5 045 831 | 4 872 612 |
| II. Working assets | |||
| Stock | 1210 | 1 833 | 1 833 |
| Tax for additional valuables | 1220 | 3 899 | 622 |
| Accounts receivable | 1230 | 444 360 | 414 021 |
| Financial investments (except penny equivalents) | 1240 | 0 | 143 245 |
| Costs and penny equivalents | 1250 | 155 | 1 369 |
| Other current assets | 1260 | 2 706 | 3 910 |
| Together at the same time II | 1200 | 452 953 | 565 000 |
| BALANCE | 1600 | 5 498 784 | 5 437 612 |
| Passive | |||
| III. Capital and reserves | |||
| Statutory capital (folded capital, statutory fund, contributions of friends) | 1310 | 10 | 10 |
| Additional capital (without revaluation) | 1350 | 3 317 000 | 3 317 000 |
| 1370 | 450 604 | 572 573 | |
| One by one III | 1300 | 3 767 614 | 3 889 583 |
| IV. DOVGOSTROKOVI ZOBOV'YAZANNYA | |||
| Pozikovі koshti | 1410 | 333 205 | 906 134 |
| Submission of goiters | 1420 | 57 278 | 54 490 |
| Together in section IV | 1400 | 390 483 | 960 624 |
| V. Short-line obligations | |||
| Pozikovі koshti | 1510 | 861 856 | 110 669 |
| Creditors' liability | 1520 | 476 564 | 475 491 |
| Other goiters | 1550 | 2 267 | 1 245 |
| Together in Section V | 1500 | 1 340 687 | 587 405 |
| BALANCE | 1700 | 5 498 784 | 5 437 612 |
Talk about financial results
| name of the show | Row code | For 2015 | For 2014 |
| Vitorg The proceeds are minus the tax on added goods and excise taxes. |
2110 | 138 950 | 125 417 |
| Gross profit (zbitok) | 2100 | 138 950 | 125 417 |
| Commercial expenses | 2210 | (218 703) | (215 429) |
| Profit (surcharge) on sale | 2200 | -79 753 | -90 012 |
| hundreds to otrimannya | 2320 | 16 473 | 24 818 |
| Hundreds until payday | 2330 | (115 701) | (106 163) |
| other income | 2340 | 54 355 | 109 001 |
| Other expenses | 2350 | (25 216) | (40 945) |
| Profit (overhead) before payment | 2300 | -149 842 | -103 301 |
| incl. permanent claims (assets) | 2421 | 2 095 | 5 386 |
| Change of substringing of goiters | 2430 | 2 788 | 10 814 |
| Change of subordinated assets | 2450 | 30 662 | 31 901 |
| Otherwise | 2460 | 0 | 5 812 |
| net profit | 2400 | -121 968 | -88 026 |
| Aggregate financial result for the period | 2500 | 0 | 0 |
About the change to capital
| 1. Rukh capital | |||||
| Statutory capital | Powerful shares purchased into shareholders | Additional capital | Reserve capital | Undivided profit (uncovered surplus) | Together |
| Capital size on January 31, 2014 (3200) | |||||
| 10 | (0) | 3 317 000 | 0 | 572 573 | 3 889 583 |
| (2015 r_k) | |||||
| Increased capital - total: (3310) | |||||
| 0 | 0 | 0 | 0 | 0 | 0 |
| including: net profit (3311) |
0 | 0 | |||
| revaluation of lane (3312) | 0 | 0 | 0 | ||
| income, which is worth a lot of money for capital (3313) | 0 | 0 | 0 | ||
| additional issue of shares (3314) | |||||
| 0 | 0 | 0 | 0 | ||
| increase in nominal value of shares (3315) | |||||
| 0 | 0 | 0 | 0 | ||
| reorganization of a legal entity (3316) | |||||
| 0 | 0 | 0 | 0 | 0 | 0 |
| Capital changes - total: (3320) | |||||
| (0) | 0 | (0) | (0) | (121 968) | (121 968) |
| including: zbitok (3321) |
(121 968) | (121 968) | |||
| revaluation of lane (3322) | (0) | (0) | (0) | ||
| spend what you need to fuss about changing capital (3323) | (0) | (0) | (0) | ||
| change in nominal value of shares (3324) | |||||
| (0) | 0 | 0 | 0 | (0) | |
| Change in the number of shares (3325) | |||||
| (0) | 0 | 0 | 0 | (0) | |
| reorganization of a legal entity (3326) | |||||
| 0 | 0 | 0 | 0 | 0 | (0) |
| dividends (3327) | (0) | (0) | |||
| Change additional capital (3330) | 0 | 0 | 0 | ||
| Change reserve capital (3340) | 0 | 0 | |||
| Capital growth on January 31, 2015 (3300) | |||||
| 10 | (0) | 3 317 000 | 0 | 450 604 | 3 767 614 |
Sounds about the Rukh Koshtiv
| name of the show | Row code | For 2015 |
| Penny flows from flow operations | ||
| Nadhodzhennya - everything including: |
4110 | 199 248 |
| for the sale of products, goods, work and services | 4111 | 167 838 |
| rent payments, license payments, royalties, commissions and other similar payments | 4112 | 0 |
| for resale of financial injections | 4113 | 0 |
| Other needs | 4119 | 31 410 |
| Payments - everything including: |
4120 | (263 020) |
| to postalniks (contractors) for goods, materials, work, services | 4121 | (218 716) |
| we have a connection with the payment of the workers | 4122 | (9 011) |
| Vіdsotkiv for hog crops | 4123 | (0) |
| tax on the organization's profits | 4124 | (0) |
| Other payments | 4129 | (28 624) |
| Balance of penny flows from current operations | 4100 | -63 772 |
| Penny flows from investment operations | ||
| Nadhodzhennya - everything including: |
4210 | 0 |
| for the sale of non-current assets (in addition to financial investments) | 4211 | 0 |
| for the sale of shares in other organizations (partial participation) | 4212 | 0 |
| from the reversal of these positions, from the sale of commercial valuable papers (rights for the benefit of assets until otherwise) | 4213 | 0 |
| dividends, dividends from trading financial investments and similar expenses from shares in other organizations | 4214 | 0 |
| Other needs | 4219 | 0 |
| Payments - everything including: |
4220 | (0) |
| in connection with outbuildings, buildings, modernization, reconstruction and preparation for the recovery of non-current assets | 4221 | (0) |
| in connection with additional shares of other organizations (partial participation) | 4222 | (0) |
| in connection with the additions of commercial valuable papers (rights of benefits to other persons), assigning positions to other persons | 4223 | (0) |
| vіdsotkіv for bogovy zob'yazaniya, which is included before the release of the investment asset | 4224 | (0) |
| Other payments | 4229 | (0) |
| Balance of penny flows from investment operations | 4200 | 0 |
| Penny flows from financial transactions | ||
| Nadhodzhennya - everything including: |
4310 | 86 556 | withdrawal of credits and position | 4311 | 86 556 |
| penny deposits of vlasniks (participants) | 4312 | 0 |
| upon the issue of shares, an increase in the number of shares | 4313 | 0 | from the issue of bonds, bills and other securities securities, etc. | 4314 | 0 |
| Other needs | 4319 | 0 |
| Payments - everything including: |
4320 | (24 000) |
| to the leaders (participants) in connection with the purchase of shares (partial participation) from them in the organization or their exit from the warehouse of participants | 4321 | (0) |
| for the payment of dividends and other payments in order to distribute the income to the owners (participants) | 4322 | (0) |
| in connection with the repayment (purchase) of bills and other commercial securities, reversal of loans and positions | 4323 | (24 000) |
| Other payments | 4329 | (0) |
| Balance of penny flows from financial transactions | 4300 | 62 556 |
| Balance of penny flows during the winter period | 4400 | -1 216 |
| A surplus of kostiv and penny equivalents for the beginning of the great period | 4450 | 0 |
| Surplus of kosti and penny equivalents at the end of the world period | 4500 | 0 |
| The amount of inflow of changes in the exchange rate of foreign currencies in relation to the ruble | 4490 | 0 |
The reports are compiled from a set of closed data “Accounting (financial) reporting of enterprises and organizations for 2015” of the Federal Service of State Statistics (Rosstat)
X5 Retail Group is a leading food distribution company in Russia. The company operates stores in a number of formats: “White Budinka stores” under the “P’yatirochka” brand, supermarkets under the “Perekhrestya” brand, hypermarkets under the “Karusel” brand, as well as stores under the “Perekhrestya Express” brand.
Today, the Company operates 10,506 stores with established positions in Moscow, St. Petersburg and a significant presence in the European part of Russia.
The range of the Company's stores includes 9,688 "Pyatirochka" white-budinka stores, 557 "Perekhrestya" supermarkets, 90 "Karusel" hypermarkets, as well as 171 "Perekhrestya Express" mini-markets. The Company also operates 36 divisional centers on the territory of the Russian Federation, as well as a fleet of commercial vehicles.
The company was established on May 18, 2006, in a strategic move between “Pyatirochka” and “Perekrestya” by creating a leading multi-format company on the Russian food retail market. U Chernі 2008 r. X5 completed its acquisition of the Karusel hypermarket chain, thereby significantly strengthening its position in the hypermarket format and giving further impetus to the development of X5. In 2009-2010, X5 continued to consolidate its business, having acquired the largest Russian trading routes Paterson and Kopiyka.
Company news
Today, the retailer is opening an order book for the addition of 15-year exchange-traded bonds of series 001Р-04 in the amount of 5 billion rubles. The structure of the issuer transferred the offer in 2.5 years. The indicative range of the coupon rate according to the organizers is 8.6-8.7% of market prices, which translates into the profitability of the put option at the YTP level of 8.78-8.89% of market prices (spread to OFZ 88-99 bp). Regardless of those who at first glance look expensive, you can completely understand that the book will be closed close to the lower end of the profitability range.
Today, the largest Russian food retailer X5 (В2/ВВ/ВВ+/АА) has opened an order book for the addition of 15-year exchange-traded bonds of series 001Р-04 in the amount of 5 billion rubles. The structure of the issuer transferred the offer in 2.5 years. The indicative range of the coupon rate according to the organizers is 8.6-8.7% of market prices, which translates into the profitability of the put option at the YTP level of 8.78-8.89% of market prices (spread to OFZ 88-99 bp).
Bond valuation. The emerging issuer came out of the initial proposal in the spring of last year by also placing paper 15-note bonds series 001Р-03 (with an offer in two years) with a coupon rate of 6.95%. At the moment, papers are trading below par with a YTP profit of 8.89% of the river (premium to the sovereign curve at 120 bp). The recently released issue of the 001Р-02 series now shows a gain of approximately 9.0%, which translates into a spread to the OFZ also of 120 bp. Based on this, the fate of those located on marketed areas (YTP8.78-8.89) does not look bad. At the same time last year, another large federal product measure, Magnit, was able to close the order book for territorial bonds at richly lower levels of coarse benchmarks (coupon 8.9-9.1%). The yield to maturity was at YTM 8.89% (premium up to OFZ 95 bp). With the assurance of a slightly stronger credit profile of X5 (for the scale of the business and the aggregate of credit ratings), as well as a good return for investors on the bonds of certain issuers, it is possible to fully appreciate that the book will be where it is closed close to the lower limit of the range of bubbliness.
Comment: Olga Nikolaeva
X5 Retail Group: X5: the absolute leader in the pouch segment 2K 2017
Below are the publications of operating data for 2Q 2017. 1H 2017 X5 has become an incredible leader in the product segment. 21 days later, the operating data of another great retailer, Magnit, will be published, despite the strong results of this company in terms of the dynamics of growth, which has recovered, and also with a bang I love the fact that Magnit, under the management of X5, is at the very beginning of its update program stores in the "U Budinka" format (analogous to the X5 format - the "P'yatirochka" format, which is currently 97% updated). The growth of the retailer's quarterly revenue for 2K amounted to 27.7% y/y, with the largest contribution being made by stores in the "P'yatyrochka" format: the growth of the quarterly profit for stores of this format was 31.9% y/y. Zagalom at 2K 2017 The company managed to open 689 new stores, 686 of them in the “Pyatirochka” format. The annual increase in retail space reached 28.7% r/r. Tobto. The company maintains high rates of moisture expansion. REALLY POSITIVE This time the company was able to demonstrate opposing results for LFL-indicators (as well as Dixie and Strichki). Regardless of the slowdown in the growth rate of equal sales to 6.6% p/p in 2Q 2017. equaled from 7.3% of the ruble for 1Q 2017, based on a decrease in the rate of growth of traffic to 2% of the rub. equaled from 4.6% of the 1Q 2017, which was fixed at a higher rate of growth of the average bill / rub. And for the sake of an aggressive policy, it is necessary to expand the border (so that in mind there is a possible cannibalization of traffic). We would like to remind you that X5’s closest competitor for the rate of quarterly revenue growth is Strichka, based on the published operating data, the retailer is under the strong pressure of traffic cannibalization, and the company has demonstrated negative results Well, the dynamics of equal sales per division under the leader X5. REALLY POSITIVE Warto means that the market as a whole has benefited from the positive operating data from X5. Timing is no less, at the time of publication the papers grew by at least 3%, but then the retailer’s papers sank a little and began to trade at a premium of 0.5-1%, equal to the closing price. |
The company presented strong operating results for the 4th quarter. 2016
X5 presented operating results for the 4th quarter. 2016 The group continued to pursue its strategy of expanding retail space, opening 613 stores during the current period, 576 of which were in the “Pyatyrochka” format, compared to 508 and 470 previously. However, due to the high base of the previous periods, the growth of retail space in the group as a whole amounted to 30.7% in the 3rd quarter. 2016 – up to 29.1%.
The dynamics of domestic sales indicated an increase in sales in the 4th quarter. 2016 9.1% in Q3. 2016 to 7.5%. Following the “Five-Year” format, the highest increase in sales was observed in breastfeeding, where the sales level decreased to 6.3%.
Sales dynamics from 1st quarter. m also indicated for a reduction in 4 sq. 2016 Thus, the decline in sales for the average company accelerated to 1.8% from 0.7% in the 3rd quarter. 2016 This trend was also observed in competitors (Magnit, Diksi).
As a result, divisional revenue increased by 27.5% (after an increase of 30.2% in Q3 2016) to RUB 291.29 billion. It was different from our forecast (RUB 291.9 billion). For pouches 12 m. 2016 The revenue amounted to 1025.6 billion rubles, exceeding the previous figure by 27.5%.
The company filed a strong report. At 4 sq. 2016 The company's sales revenue exceeded Magnit's sales by 3.1%. The large-scale expansion of retail space allows the company to demonstrate significant sales growth rates. Prote data for 4 quarters. 2016 indicated that persistent activity preserves weakness and instability.
Commentary: Oleksandr Kostyukov
The company presented strong financial results for the 3rd quarter. 2016
X5 Retail Group published financial results according to IFRS for the 3rd quarter. 2016 EBITDA of the company grew by 39.2% to 19.86 billion rubles. (Instead of the forecast of 19.67 billion rubles). EBITDA margin increased by 48 bps in Q3. 2015 r. it became 7.75%. The company's net profit increased by 65.9% to RUB 6.87 billion. , What is a little lower than 7.21 billion rubles. The net profit margin increased by 57 bp to 2.68%.
X5 Retail Group published financial results according to IFRS for the 3rd quarter. 2016 EBITDA of the company grew by 39.2% to 19.86 billion rubles. (Instead of the forecast of 19.67 billion rubles). EBITDA margin increased by 48 bps in Q3. 2015 r. it became 7.75%.
The company managed to increase its profitability due to a decrease in commercial, sales and administrative expenses, which decreased by 106 BP to 17.35% of revenue.
The company's net profit increased by 65.9% to RUB 6.87 billion. , What is a little lower than 7.21 billion rubles. The net profit margin increased by 57 bp to 2.68%.
Regardless of the three-fold lower income compared to the consensus, the increase in financial indicators is consistent. The profitability of this business has also increased, which is positive, especially against Magnitom, whose profitability is 3Q. 2016 significantly decreased recently through the displacement of capital on the cost of less marginal goods, as well as the transfer of bonuses to postal employees at the bottom, which the company needed to comply with the law.
Vantaged...