Dixy Group Announces 1Q Consolidated Unaudited IFRS Results

OREANDA-NEWS. May 26, 2011. DIXY Group - one of Russia's leading retailers of foods and everyday products - announces

consolidated unaudited IFRS results for the first quarter of 2011.

Key figures for the first quarter of 2011 in comparison with the same period of 2010 results:

•           Revenue increased 20.8% to RUR 18,106 mln. or 23.3% in USD to USD 619 mln. The top line growth was due to a 11.7% (24,027 square meters) increase in selling space as well as to a 7.6% increase of like-for-like sales.

•           Gross Profit increased 24.7% to RUR 4,322 mln., in USD Gross Profit increased by 27.4% to 148 mln. Gross Margin increased by 80 bp year-on-year to 23.9% compared to 23.1% for the first quarter of 2010. Effective 2011, the Gross Profit calculation methodology has been changed in accordance with the industry best practices as follows: Transportation expenses related to movement of goods and Shrinkage expenses (including Inventory Allowance) are transferred to the cost of sales. Without these changes under this methodology of calculating financial results, the Gross Margin in the first quarter of 2011 would have amounted to 26%. For the purposes of correct comparison of financial results, Gross Profit for the first quarter of 2010 is adjusted correspondingly.

•           EBITDA increased 28.0% to RUR 1,005 mln. In USD EBITDA grew 30.7% to USD 34 mln. EBITDA margin increased by 40 bp year-on-year to the level of 5.6% from 5.2% in the first quarter of 2010.

•           Net Profit increased by 26.9% year-on-year and amounted to RUR 164 mln. for a Net Margin of 0.9%. In USD Net Profit increased by 29.6% to USD 5.6 mln.

•           Net cash from operating activities increased by 126.7% over the same period of 2010 to RUR 680 mln. (USD 23 mln).

Key financial performance indicators as per unaudited 1st quarter of 2011 financial results