OREANDA-NEWS. October 12, 2010. X5 Retail Group N.V., Russia's largest retailer in terms of revenue (LSE ticker: “FIVE”), announced its retail sales and operational performance for the quarter ended 30 September 2010.

Q3 2010 Highlights

9M 2010 Highlights

•   Net retail sales increased 21% year-on-year in RUR terms to RUR 79,822 mln or 24% in USD terms to USD 2,607 mln;

•    Net retail sales increased 20% year-on-year in RUR terms to RUR 235,332 mln or 29% in USD terms to USD 7,779 mln;

•   X5’s LFL sales grew 6% in RUR terms year-on-year,   supported by  4%  traffic growth;

•    X5’s LFL sales grew 5% in RUR terms year-on-year on 3% traffic growth;

•   Discounters’ customer traffic increased 6%,   driving  Pyaterochka’s  LFL   sales growth of 10% year-on-year;

•   Discounters’  customer traffic increased 7%,   driving  Pyaterochka’s  LFL   sales growth of 12% year-on-year;

•    116 stores added on net basis in Q3 2010, including 97 soft discounters (of which 10 acquired Ostrov stores) and 14 supermarkets (of which 6 Ostrov stores), three hypermarkets and two convenience stores;

•   258 stores added on net basis in first 9 months   of  2010,   including   193   soft discounters, 14 supermarkets,  and seven hypermarkets;        in        addition        to consolidating 44 convenience stores;

•   Net addition of 54 thousand sq. m. of selling       space       for       discounters, supermarkets,        hypermarkets        and convenience stores;

•   Net addition of 114 thousand sq. m. of selling       space       for       discounters, supermarkets,         hypermarkets        and convenience stores;

•    As at 30 September 2010 X5 operated 1,630 stores (1,177 thousand sq. m.), including 1,232 soft discounters, 289 supermarkets, 65 hypermarkets and 44 convenience stores;

•   X5 reiterates its 2010 sales growth outlook as provided on 27 May 2010. Actual top line performance will be largely dependent on inflationary trends and the timing of a recovery in the consumer spending.

Lev Khasis, X5 Retail Group CEO, commented:

“X5 delivered its best performance of 2010 this quarter with RUR net sales growth of 21% year-on-year.   Top-line growth is being driven by strong sales and record new store openings in our soft discounter segment.   Our success in winning customers was on display in discounters’ 10% like-for-like sales growth year-on-year, which was achieved against the high growth rate in Q3 2009 following the launch of Pyaterochka’s positioning as the lowest price competitor on the market on 100% of assortment.

“We are also excited about the strong improvement at converted Paterson supermarkets, where LFL sales surged more than 20% compared to pre-acquisition levels in last year’s third quarter.   Raising sales densities and efficiency to X5 levels is a key priority for us following Paterson integration in first half 2010, while we continue to improve overall supermarket format performance with price promotions and assortment changes to benefit from future economic recovery.   Despite weak consumer spending, X5’s business is building momentum and we are well on track to deliver on the Company’s growth outlook for the year.”