OREANDA-NEWS. May 18, 2012. DIXY Group (RTS, MICEX: DIXY) - one of Russia's leading retailers of foods and everyday products - announces unaudited consolidated IFRS results for the full year of 2011.

Key Results of the Full Year and the Fourth Quarter of 2011

•           During the full year of 2011, the combined Company opened 255 new stores, having increased pro-forma selling space (including Victoria Group from the beginning of 2010 and 2011) by 15% year-on-year, while DIXY Group standalone selling space increased by 25% year-on-year.

•           Consolidated Revenue for the fourth quarter 2011 increased by 87.8% (87.5% in USD) year-on-year to RUR 34.0 bln (USD 1.1 bln). Consolidated Revenue for the full year increased by 59.3% (64.6% in USD) to RUR 102.3bln (USD 3.5 bln).

•           Consolidated Gross Profit for the fourth quarter increased by 107.9% (108.1% in USD) to RUR 9.7 bln (USD 318 mln), while Gross Margin increased by 277 bp year-on-year to 28.6% of sales compared to 25.8% for the same period of 2010. Consolidated Gross Profit for the full year increased by 79.3% (85.3% in USD) to RUR 27.7 bln (USD 944 mln), while respective Gross Margin increased by 303 bp year-on-year to 27.1% of sales compared to 24.1% for the same period of 2010.

•           Consolidated EBITDA for the fourth quarter increased by 68.7% (68.3% in USD) year-on- year to RUR to 2.2 bln (USD 73 mln), while EBITDA margin decreased by 75 bp to the level of 6.6% of sales from 7.4% for the same period of 2010. Consolidated EBITDA for the full year of 2011 increased by 78.5% (84.5% in USD) year-on-year to RUR 6.5 bln (USD 221 mln), while EBITDA margin increased by 68 bp year-on-year to the level of 6.3% from 5.7% in the same period of 2010.

•           Consolidated Net Profit for the fourth quarter increased by 6.8% (4.4% in USD) and amounted to RUR 315 mln (USD 10 mln). Net Margin decreased by 70 bp to 0.9% of sales compared to 1.6% for the same period of 2010. Net Profit for the full year increased by 327% (342% in USD) and amounted to RUR 1.1 bln (USD 37 mln), while Net Margin increased by 68 bp and amounted to 1.1% of sales compared to 0.4% for the same period of 2010.

• Consolidated Net Cash from Operating Activities for the fourth quarter increased by 167% (173% in USD) over the same period of 2010 to RUR 3.2 bln (USD 109 mln). Net Cash from Operating Activities for the full year increased by 164% (173% in USD) over the same period of 2010 to RUR 5.2 bln (USD 178 mln).

New stores were opened in the Central, Northwest and Urals Federal Districts through long- term lease agreements, except for twelve acquired stores (4 hypermarkets Megamart in the Urals, 7 neighborhood stores DIXY in the Central Federal District and one supermarket Victoria in the Northwest Federal District). As of December 31, 2011, the Company operated 1,119 stores.

In the fourth quarter of 2011 the Company conducted a significant part of the neighborhood stores Kvartal rebranding in the Northwest region, planned for 2011, resulting in 19 stores rebrandings in the fourth quarter of 2011. As of full year end all 37 Kvartal stores in the Northwest region were successfully rebranded into DIXY format.

In the fourth quarter of 2011 DIXY Group continued to implement marketing initiatives on optimization of assortment and floor space, improvement of external and internal design of stores and their clearer positioning, as well as on improvement of customer service and marketing communications (in particular, in September the advertising campaign developed jointly by DIXY and Saatch&Saatchi and launched in June 2011, was named best in the industry at the retail chain competition held during 10th annual Retail Business Russia 2011 international summit). These efforts have led to a 4.6% increase in like-for-like sales for the core DIXY format, and to a 5.4% increase in average ticket (with the highest ticket growth of 7.8% in the Urals Federal District).

The efficiency of the promotional activities was made possible also by means of increased levels of centralization of deliveries (rate of deliveries through own distribution centers) and logistical service (success of delivery rate) with DIXY format centralization rate at 85% in the fourth quarter of 2011, and general logistics service level reaching 90% in December 2011.