DIXY Announces Consolidated Unaudited IFRS Results for 9M 2009
OREANDA-NEWS. December 08, 2009. Dixy Group – one of the leading Russian food retailers - announces consolidated unaudited IFRS results for the first nine months of 2009.
Key P&L figures for first 9 months of
In RUR
• Total Revenues increased 14.5% to RUR 39,622 mln.
• Gross Profit increased 22.9% to RUR 10,613 mln.
• Gross Profit Margin increased from 25.0% for the first 9 months of 2008 to 26.8%.
• EBITDA increased 12.3% to RUR 2,124 mln.
• Net Loss totaled RUR 102.0 mln.
• Net operating cash flow increased by 19.7% to RUR 302,8 mln.
In USD
• Total Revenues decreased 15.2% to USD 1,219.8 mln.
• Gross Profit decreased 9.0% to USD 326.7 mln.
• EBITDA decreased 16.8% to USD 65.4 mln.
• Net Loss totaled USD 3.1 mln.
• Net operating cash flow declined by 11.4% to USD 9.3 mln.
Commenting on Group performance during the first 9 months of 2009, the President of the Company Ilya Yakubson said:
“All-in-all, our nine months 2009 results are fully consistent with our plans and expectations. In the third quarter we started to implement a set of measures aimed at stimulating sales, including changes in pricing policies, special marketing campaigns, which allowed us to increase the number of purchases in our Dixy stores. The gross profit margin declined from 28.6% in the second to 26.1% in the third quarter of 2009. We will continue to push forward in this direction, expanding our advertising and promo activities, optimizing our assortment matrix, in order to drive-up the average check. At the end of October, we successfully completed the rollout of our IT platform, ALDATA GOLD for all business units of the Company including stores, warehouses and offices.”
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Key unaudited financial indicators |
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In thousands of RUR |
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9M 2009 |
9M 2008 |
Growth (%) |
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Net Sales |
39 621 662 |
34 593 724 |
14.5% |
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Gross Profit |
10 612 742 |
8 632 014 |
22.9% |
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EBITDAR |
3 789 623 |
3 147 568 |
20.4% |
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EBITDA |
2 123 932 |
1 890 717 |
12.3% |
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Net Profit |
-101 952 |
242 745 |
NA |
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Net Operating cash flow In thousands of USD |
302 799 |
252 880 |
19.7% |
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9M 2009 |
9M 2008 |
Growth (%) |
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Net Sales |
1 219 826 |
1 438 684 |
-15.2% |
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Gross Profit |
326 733 |
358 988 |
-9.0% |
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EBITDAR |
116 671 |
130 901 |
-10.9% |
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EBITDA |
65 389 |
78 631 |
-16.8% |
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Net Profit |
-3 139 |
10 095 |
NA |
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Net Operating cash flow |
9 322 |
10 517 |
-11.4% |
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9M 2009 |
9M 2008 |
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Gross Profit |
26.8% |
25.0% |
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EBITDAR |
9.6% |
9.1% |
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EBITDA |
5.4% |
5.5% |
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Net Profit |
-0.3% |
0.7% |
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Net Sales as of the first 9 months of 2009 amounted to RUR 39 622 mln., representing a 14.5% increase over the first 9 months of 2008 results. Falling short of our retail sales targets is due to natural propensity of lower retail spending due to adverse economic environment, while also due to low efficiency in the execution at the level of our logistics function. Sales in USD amounted to USD 1 219.8 mln., representing a decrease of 15.2% from the same period last year. The decrease in USD revenue is due to USD appreciation against the RUR, exceeding the RUB sales growth during the period. While in the third quarter, there is a further decline in sales growth rate, we notice a positive trend in traffic growth, which we believe is primarily due to the substantial increase in our marketing and promotional activity.
Gross profit for the first nine months of 2009 amounted to RUR 10 613 mln. (USD 326.7 mln.), demonstrating growth of 22.9% in RUR (-9.0% in USD) from the first 9 months of 2008 result. Gross margin increased from 25.0% in the first nine months of 2008 to 26.8% over the same period in 2009, declining in Q3 to 26.1% from 28.6% in Q2 2009. The decline is due to a more aggressive pricing policy, and to deep-discount type promotional campaigns, which while helping to pump-up traffic, fail to stimulate ticket growth, generating mostly low marginal.
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Thous. RUR |
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9M 2009 |
9M 2008 |
Growth (%) |
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Salaries |
3 997 784 1 665 |
3 531 570 |
13.2% |
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Lease Expense |
691 |
1 256 851 |
32.5%
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D&A |
1 165 308 |
810 549 |
43.8%
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Utilities |
453 635 |
293 446 |
54.6%
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Other Expenses (shrinkage, transport, bank charges, advertising costs etc.) |
2 371 700 |
1 659 430 |
42.9% |
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SG&A Expense % revenue |
9 654 118 |
7 551 846 |
27.8% |
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9M 2009 |
9M 2008 |
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Salaries |
10.1% |
10.2% |
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Lease Expense |
4.2% |
3.6% | |
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D&A |
2.9% |
2.3% | |
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Utilities |
1.1% |
0.8% | |
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Other Expenses (shrinkage, transport, bank charges, advertising costs etc.) |
6.0%
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4.8% | |
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24.4%
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21.8%
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Salary Expense, in 9M 2009 amounted to RUR 3 998 mln. versus RUR 3 532 mln. for the 9M 2008. Demonstrating a 13.2% year-on-year growth and a 5.9% quarter-on-quarter decline. Further reduction of salary expense in Q3 to 9.7% of Sales is due to optimization of wages and reduction of total headcount.
Utilities and maintenance expenses: 54.6% growth in utilities and maintenance expense to RUR 454 mln. for the 9M 2009 versus RUR 293 mln. for the 9M 2008 is due to a 19.5% growth in total selling space and an over 50% growth in warehousing areas, following the opening of the
Shrinkage for the first nine months of 2009 amounted to RUR 728 mln. In Q3 shrinkage expense slightly decreased to RUR 230 mln. from RUR 243 mln. in Q2 and RUR 255 mln. in Q1 2009. For 9M 2009, Shrinkage Expense remains at 1.8% of Sales, down from 1.92% in Q1 to 1.79% in Q3, which remains one of the highest levels in our sector. Reduction of shrinkage is one of the key priorities for the management.
EBITDAR amounted to RUR 3 790 mln. (USD 116.7 mln.), which represents a 20.4% growth in RUR (10.9% decline in USD). EBITDAR margin increased from 9,1% for the first nine months of 2008 to 9,6% over the same period in 2009. EBITDAR growth is primarily due to the increase in Gross Profit for the Company during the period.
Lease Expense for the 9M 2009 amounted to RUR 1 666 mln. a 32.5% increase from RUR 1 257 mln. for the 9M 2008. During the 12 months period preceding the end of the Q3 2009 the Group opened 91 Dixy stores on leased basis with a total selling space of over 25 thousand sq. m. increasing by 33.5% format’s leased selling space. Quarter on quarter the lease expense continues to declines, from RUR 575 mln. in Q1 to RUR 554 mln. in Q2 to RUR 538 mln. in Q3. These reductions were achieved by further
successful efforts to renegotiate lease agreements and by continuous optimization of the retail assets portfolio. Lease expense as a percentage of revenue increased to 4.2% from 3.6% for the 2008 first nine months period, due primarily to slower revenue growth and predominately lease based expansion.
EBITDA increased by 12.3% in RUR terms (a 16.8% decline in USD), to RUR 2 124 mln. (USD 65.4 mln.). EBITDA margin of 5.4% was slightly lower than 5.5% for the 9M 2008. Lower Salary Expense was offset by higher Leasing Expense, Maintenance and Utilities charges, and a 45% growth in Shrinkage from RUR 504 mln. for the first nine months of 2008 to RUR 728 mln. for the same period in 2009.
Net Loss: in 9M 2009 the Group recorded a Net Loss of RUR 102 mln. (USD 3.1 mln.) primarily due to RUR 163 mln. in FX translational losses sustained during the period and to RUR 290 mln. in accrued profit taxes for the nine months period, including RUR 254 mln. accrued in Q3 2009.
Net debt including outstanding obligations under the leasing agreements as of September 30, 2009 amounted to RUR 8,525 mln. or USD 283,3 mln.
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Key operating statistics 9M 2008 – 2009 |
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9M 2009 509 |
9M 2008 425 |
Growth (%) |
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Number of stores |
19.8% | ||
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Number of employees |
16,085 |
15,854 |
1.5% |
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Total Space owned, sq.m. |
169,199 |
152,005 |
11.3% |
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Total Space, sq.m. |
463,032 |
387,342 |
19.5% |
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Selling Space, sq.m. by format: |
197,425 |
166,823 |
18.3% |
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DIXY |
161,500 |
136,224 |
18.6% |
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V-MART |
-- |
915 |
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MEGAMART |
30,305 |
24,755 |
22.4% |
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MINIMART |
5,620 |
4,930 |
14.0% |
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Thous. RUR |
9M 2009 |
9M 2008 |
Growth (%) |
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DIXY |
33 088 352 |
29 377 137 |
12.6% -57.2% |
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V-MART |
68 034 |
158 869 |
28.7% 17.1% |
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MEGAMART |
4 483 396 |
3 482 829 |
60.6% |
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MINIMART |
1 476 071 |
1 259 986 |
14.5% |
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OTHER REVENUE |
505 809 |
314 903 |
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39 621 662 |
34 593 724 |
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Thous. USD DIXY V-MART MEGAMART MINIMART OTHER REVENUE |
9M 2009 1 018 686 2 095 138 030 45 444 15 572 |
9M 2008 1 221 736 6 607 144 844 52 400 13 096 |
Growth (%) -16.6% -68.3% -4.7% -13.3% 18.9% |
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1 219 826 |
1 438 684 |
-15.2% |
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