X5 acquires Nice Ice production facility

X5 Retail Group N.V.

26 April 2024

 

X5 ACQUIRES NICE ICE READY-TO-EAT PRODUCTION FACILITY IN THE LENINGRAD REGION

Moscow, 26 April 2024 - X5 Group ("X5" or the "Company", LSE and MOEX ticker: FIVE), a leading Russian food retailer, announces the acquisition of the Nice Ice ready-to-eat food business in the Leningrad Region. The Company has obtained the relevant permit from a government commission. As part of the deal, X5 will take over ownership of a 4,200-square metre ready-to-eat food smart kitchen in the Vsevolozhsky District.

The production site will become a part of the X5 Food business unit, which develops the ready-to-eat segment across the Company's retail chains. The smart kitchen already produces about 7,000 ready-to-eat meals a day for X5's Pyaterochka and Perekrestok retail chains and has a total daily capacity of up to 40,000 meals, with the potential to be upgraded to up to 70,000 meals.

The facility produces ready-to-eat meals in a variety of categories, including salads, breakfasts, hot meals, starters, sandwiches and desserts.

Olga Feldt, Managing Director of X5 Food, commented:

"The acquisition of the smart kitchen will help us to expand the ready-to-eat assortment on our store shelves, accelerate the launch of new product lines and cut production costs, which will make ready meals at Pyaterochka and Perekrestok even more affordable."

At present, X5 Food's existing in-house and contracted production facilities produce about 100 tonnes of ready-to-eat food per day across more than 400 SKUs. As at 2023-end, ready-to-eat food accounted for 2.3% of sales at Pyaterochka and 6.3% at Perekrestok.

The Company plans to grow its share in the combined retail and HoReCa ready-to-eat market to 9% by 2026.

Note to Editors:  

X5 Retail Group N.V. (LSE and MOEX: FIVE; Expert RA - ruAAA; ACRA - AAA(RU)) is a leading Russian food retailer. The Company operates proximity stores under the Pyaterochka brand, Perekrestok supermarkets and Chizhik hard discounters. X5 provides an omnichannel experience to its customers, integrating retail stores and e-commerce through its businesses Vprok.ru, 5Post, express delivery and Mnogo Lososya.

As of 31 March 2024, X5 had 24,884 Company-operated stores. It has the leading market position in both Moscow and St Petersburg and a significant presence in the European part of Russia, as well as a growing presence in the Russian Far East. Its store base includes 21,593 Pyaterochka proximity stores, 978 Perekrestok supermarkets, 1,616 Chizhik hard discounters and 612 Krasny Yar and Slata stores. The Company operates 61 DCs and 5,504 Company-owned trucks across the Russian Federation.

X5 is one of the largest employers in Russia. The Company employs over 378 thousand people.

For the full year 2023, revenue totalled RUB 3,145,859 million (USD 36,903 million*), EBITDA pre-IFRS 16 reached RUB 214,764 million (USD 2,519 million*), and net profit pre-IFRS 16 for the period amounted to RUB 90,284 million (USD 1,059 million*). In Q1 2024, revenue totalled RUB 886,220 million (USD 9,766 million**), EBITDA pre-IFRS 16 reached RUB 55,266 million (USD 609 million**), and net profit pre-IFRS 16 amounted to RUB 24,015 million (USD 265 million**).

Forward-looking statements  

This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as "anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal", "believe", or other words of similar meaning.

By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.

Any forward-looking statements made by or on behalf of X5 Group N.V. speak only as of the date of this announcement. Save as required by any applicable laws or regulations, X5 Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.

*FX rate: 85.2466 USD/RUB

**FX rate: 90.7471 USD/RUB

For further details please contact:
Polina Ugryumova Head of Corporate Finance and IR Tel.: [phone] ext. 13-312 e-mail: [e-mail]	Maria Yazeva Investor Relations Officer Tel.: [phone] ext. 13-147 e-mail: [e-mail]

 

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