Amsterdam, 23 January 2018 – X5 Retail Group N.V. ("X5" or the "Company"), a leading Russian food retailer (LSE ticker: "FIVE"), today announces preliminary consolidated net retail sales and operational results for the fourth quarter (Q4) and full year (FY) ended 31 December 2017(1).
X5 Chief Executive Officer Igor Shekhterman said:
"X5 delivered strong growth in 2017 and showed we were able to achieve sustainable performance even in what continues to be a challenging macro environment. Decelerating food CPI has put a damper on retail sales growth throughout the year, with inflation growth reaching its lowest level in Q4. Real disposable income growth remained negative in 2017, and the recovery in consumer confidence slowed towards the end of the year.
"Despite these external challenges, we continued to deliver solid business growth: X5 once again expanded at the fastest pace among its public peers in Russia, and LFL traffic improved relative to the previous year, reaching 3.0% annual growth in 2017, compared to 2.5% growth in 2016. For the first time in the Company’s history, we added more than one million square metres of selling space.
"Looking ahead to 2018 and beyond, we remain committed to our core strategic goals and will continue on the path of rapid, efficient and profitable growth, with the aim of sustainably occupying the position of Russia’s food retail market leader."
(1) Numbers in this press release are preliminary and have not been reviewed or audited by the Company’s auditor.