OREANDA-NEWS. April 15, 2011. X5 Retail Group N.V., Russia's largest retailer in terms of sales (LSE ticker: “FIVE”), announced its audited IFRS results for the year ended 31 December 2010.

Q4 2010 Highlights*11

FY 2010 Highlights

• Net sales increased 35% year-on-year in RUR terms to RUR 106,670 mln or 32% in USD terms to USD 3,483 mln;

• Net sales increased 24% year-on-year in RUR terms to RUR 342,580 mln or 29% in USD terms to USD 11,280 mln;

• Gross profit totaled USD 767 mln, for a gross margin of 22.0%;

• Gross profit totaled USD 2,629 mln, for a gross margin of 23.3%;

• EBITDA amounted to USD 250 mln, for an EBITDA margin of 7.2%;

• EBITDA amounted to USD 844 mln, for an EBITDA margin of 7.5%;

• Net profit increased 99% year-on-year to USD 88 mln, for a net margin of 2.5%.

• Net profit increased 64% year-on-year to USD 271 mln, for a net margin of 2.4%.

X5 Retail Group CEO Andrei Gusev commented:

"We met our 2010 growth outlook with a net retail sales increase of 24% in ruble terms. The Company ended the year with USD 11.3 billion in consolidated net sales, completed strategic acquisition of Kopeyka retail chain and added nearly 1,100 stores in total. We continued to invest in customer loyalty, keeping average prices for our products well below the country's official inflation rate and providing meaningful savings to Russian consumers. This approach supported strong LFL growth but put pressure on gross margin and EBITDA.

"2011 will be a critical year for execution of our organic store expansion plan and fast-tracked integration of Kopeyka. Our management team is focused on strengthening operational performance and making X5 an even stronger and more efficient business.

"Tight financial discipline remains a key priority and we will work to ensure disciplined CapEx plan execution, cost control, cash generation and working capital management while pursuing longer- term efficiency gains from IT systems transformation, supply chain logistics and in-store productivity enhancements."