X5 Retail sales up 8.6% in Q4 (Part 2)

MOSCOW. Jan 14 (Interfax) - X5 Retail Group increased sales 8.6% to 133.88 billion rubles in the fourth quarter of last year, the company said in a statement.

For the year, the company's sales were up 8.3% at 490 billion rubles.

X5 Retail increased its number of stores by 330 in Q4 from 217 one year earlier. The total number of stores increased to 800 last year from 533 in 2011.

Commercial space reached 104,300 square meters in Q4 from 85,700 sq m in the same period of 2011. Net commercial area increased by 242,500 sq m from 172,200 sq m a year earlier.

X5 Retail plans to release its operational figures for Q4 2012 and to host a conference call on January 23.

X5's main competitor, Magnit (RTS: MGNT), drew near to the still-leader on the Russian market by sales revenues in Q4. Sergei Galitsky's company increased sales 35.2 % to 129.154 billion rubles over the quarter. Magnit ended the year with sales revenues up 33.63% at 448.486 billion rubles.

X5's most recent sales revenue growth forecast for 2012 was 7%-9%, and was adjusted based on the third quarter. In July, the company was expecting growth of 15% and at the start of the year - 15%-20%.

In Q3, X5 increased sales revenues 10.4% to 115.9 billion rubles. This was partially offset by a drop in like-for-like store sales both company-wide and by separate formats - supermarkets and hypermarkets - due to a drop in costumer traffic.

X5 operates the Pyaterochka chain of discounters, Perekrestok supermarkets, Karusel hypermarkets, and convenience stores. X5 had 3,472 company-operated stores as of September 30.

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