OREANDA-NEWS. October 29, 2009. Dixy Group – one of the leading food retailers in the Russian Federation - has announced revenue growth of 15% in Russian ruble (a 15% decline in US dollars) for the first nine months of 2009 ended 30 of September, 2009 over the same period in 2008.

Dixy Group’s total revenue for the first nine months of 2009 was RUR 39 619 mln., a 15% increase over the same period in 2008, of RUR 34 594 mln. In dollars revenue declined 15% to USD 1 219.7 mln., from USD 1 438.7 mln. for the same period last year.

Retail revenue from DIXY operations for the first nine months of 2009 amounted to RUR 33 088 mln. (USD 1 018.7 mln.), corresponding to a 12.6% increase in RUR and a 16.6% decline in USD, over the same period last year.

Retail revenue from MEGAMART operations for the first nine months of 2009 amounted to RUR 4 483 mln. (USD 138.0 mln.), corresponding to a 28.7% increase in RUR and a 4.7% decline in USD, over the same period last year.

Retail revenue from MINIMART operations for the first nine months of 2009 reached RUR 1 476 mln. (USD 45.4 mln.), corresponding to a 17.1% increase in RUR and a 13.3% decline in USD, over the same period last year.

Retail revenue from VMart for the first nine months of 2009 was RUR 68 mln. (USD 2.1 mln.).

Revenue from other activities, such as marketing revenue, sublease income and wholesale revenue amounted to RUR 503 mln. (USD 15.4 mln.).

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

Exchange Rate according to CBR

2008

2009

Average (9 months), RUR/USD

24.05

32.48

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

“During the third quarter of 2009, we successfully accomplished the majority of undertakings related to increasing the effectiveness of our logistics and goods flow functions. As of September 30th, 2009, the level of centralization of deliveries processed through our distribution center located in the Serpukhov region of Moscow reached 68 percent. On October 25th 2009, we completed transfer of all Company’s operations onto the Aldata GOLD information system. The primary stage of centralizing our logistical operations across the Company is therefore complete. Today, our main priorities include assortment optimization and other marketing actions designed to stimulate average ticket and traffic growths. First marketing actions and promotional campaigns, which ran throughout Q3 2009, had proven that such instruments can be effective in terms of improving sales growth pattern.”

Key operating and financial data for the first nine months of 2009 and 2008:

As of

Number of stores

30 September 2009  

509

30 September 2008

4255

Growth

20%

Net Selling space (sq.m.)

197 425

166 823

18%

For the 9-month period ending

30 September 2009

30 September 2008

Growth

Revenue ( mln. RUR)

39 619

34 594

15%

Revenue (mln. USD)

1 220

1 439

-15%

Store openings

37

37

 

Dixy

36

29

 

Megamart

1

3

 

Minimart

0

0

 

VMart

0

5

 

Information about DIXY’s formats of stores as of 30.09.2009

Format Brand

DIXY

MINIMART

MEGAMART

Format Description

Discounter

Economical Supermarket

Compact Hypermarket

Average Selling Space (sq. m.)

331

702

2,164

SKU (average per store)

3 100

7,500

20,500

Number of stores (as of 30.09.2009)

487

8

14

Selling Space per Format (sq. m.)

161 500

5,620

30 305

Total Space per Format (sq. m.)

379 492

12 555

70 985

Total Selling Space (sq. m.)

197 425

 

Total Space (sq. m.)

463 032

 

LFL Sales in RUR for the first nine months of 2009

For purposes of internal reporting and planning we include in like-for-like store base only stores that were opened twelve months before the beginning of the comparison period, thus giving the stores time to achieve maturity. We view this calculation as the most prudent, as it reflects the performance of the mature stores. We include in this base stores opened before 01.01.07. We now, for LFL purposes, compare sales data which includes VAT.

For the purposes of comparison of our results with those published by our peers in Russia, we also present like-for-like calculation that includes stores that were open before 01.09.08.

 

On stores opened

 

On stores opened

 

 

before 01.09.08*

ave. receipt

before 01.01.07**

 

 

TOTAL

receipt q-ty

TOTAL

receipt q-ty

ave. receipt

DIXV

 

 

 

 

 

 

Central Fed. Distr.

-3,61%

-5,52%

2,02%

-5,23%

-7,19%

2,11%

North - West. FD

3,74%

-0,24%

3,99%

1,60%

-2,44%

4,14%

Urals FD

-9,35%

-7,98%

-1,49%

-10,59%

-9,28%

-1,44%

TOTAL Dixy:

-1,92%

-4,18%

2,37%

-3,83%

-6,08%

2,40%

Megarnarts (Urals)

7,3U%

7,09%

0,20%

-13,10%

-8,53%

-5,00%

Mini marts (Urals)

U,92%

0,18%

0,74%

-5,11%

-5,77%

0,70%

TOTAL GROUP (RUB):

-0,83%

-3,60%

2,87%

-4,50%

-6,13%

1,73%

* LFL Block includes 305 “DIXY” stores, 9 “MEGAMART” stores and 7 “MINIMART” stores

** LFL Block includes 246 “DIXY” stores, 5 “MEGAMART” stores and 6 “MINIMART” stores