Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Embattled Retailer X5 Sees Second-Quarter Profits Jump 71%

X5 Retail Group N.V. (“X5” or the “Company”) is a leading Russian food retailer.

Russian supermarket operator X5 Retail Group reported on Thursday a 71 percent jump in second-quarter net income due to a one-off reduction in tax expenses and said its operating cash flow visibly improved.

X5, struggling to turn around its business after a strategy shift several years ago and a series of management changes, said net profit amounted to around 4 billion rubles ($111 million), up from 2.3 billion a year earlier.

The company eliminated a 749 million ruble tax provision in the first half of the year and its second-quarter income tax expenses halved to 376 million rubles, boosting net earnings.

Its earnings before interest, taxation, depreciation and amortization, or EBITDA, increased 24 percent to 11.4 billion rubles with an EBITDA margin at 7.3 percent compared with 6.9 percent a year ago, X5 said in a statement.

It had earlier forecast full-year 2014 EBITDA margin in the 6.8-7.2 percent range, after 7.2 percent in 2013.

X5 also said that its operating cash flow grew eight-fold in the second quarter to around 13 billion rubles due to positive changes in working capital and lower income taxes paid.

See also:

Russia's Food Ban Strikes Its Own Consumers

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more