Dixy Group Announces 16% Revenue Growth in Russian Rubles

OREANDA-NEWS. On 29 July 2009 was announced, that Dixy Group – one of the leading food retailers in the Russian Federation - has announced revenue growth of 16% in Russian ruble (a 16% decline in US dollars) for the first six months of 2009 ended 30 of June, 2009 over the same period in 2008.1,2

Dixy Group’s total revenue for the first six months of 2009 was RUR 26 751 mln., a 16% increase over the first six months sales in 2008, of RUR 23 092 mln.3 In dollars revenue declined 16% to USD 809.0 mln., from USD 964.4 mln. for the same period last year.

Retail revenue from DIXY operations for the first six months of 2009 amounted to RUR 22 356 mln. (USD 676.1 mln.), corresponding to a 13.2% increase in RUR and an 18% decline in USD, over the same period last year.

Retail revenue from MEGAMART operations for the first six months of 2009 amounted to RUR 2 992 mln. (USD 90.5 mln.), corresponding to a 34.8% increase in RUR and a 2.4% decline in USD, over the same period last year.

Retail revenue from MINIMART operations for the first six months of 2009 reached RUR 991 mln. (USD 30.0 mln.), corresponding to a 19.2% increase in RUR and a 13.7 % decline in USD, over the same period last year.

Retail revenue from VMart for the first six months of 2009 was RUR 68 mln. (USD 2.0 mln.).

Revenue from other activities, such as marketing revenue, sublease income and wholesale revenue amounted to RUR 344 mln. (USD 10.4 mln.).

The following exchange rates were used for converting Russian Rubles to US dollars:

Commenting these results, the President of DIXY Group, Ilya Yakubson said:

The main priorities of the Company during the first half of 2009 were optimization of the logistics function and the rollout of the GOLD system at the level of operating companies in the Central Federal district. These undertakings were executed according to schedule within a larger framework of centralization of the Company’s business processes at the HQ level. Today, the main part of these undertakings is successfully completed. During the next months, there remains a rollout of the GOLD IT system in stores, offices and distribution centers operating in the Moscow region, in Yaroslavl, and in Chelyabinsk. At the same time, we continue to work on increasing the level of centralization of deliveries throughout the Company. All of these actions, coupled with the optimization of the assortment mix and a heavier engagement in marketing activities, are the necessary elements for achieving a reversal in sales growth trend, which we will demonstrate in the second half of 2009.