One of Russia's largest retailers X5 Group expects revenues to grow by 10%-12% in 2014 vs. 8.7% growth seen in 2013. The company expected 8% growth in 2013. EBITDA margin is expected to amount to 6.8%-7.2% in 2014 vs. the expected 7% in 2014. X5 expects the trading space to increase by 10.5% in 2014, while as of end of 2013 X5 increased its trading space by 12.9% y/y to 1.223mn m2 (targeted increase of 11%) and number of stores by 742 to 4,554.
X5 Group increased its revenues by 12% y/y in Q4/12 to RUB 150bn (USD 4.4bn) and like-for-like sales by 3.9% y/y. As a result in 2013 overall company's revenues increased by 8.7% y/y to RUB 532.7bn and like-for-like sales by 0.7%. This beats company's revenue growth target of 8% for 2013 (previously revised downwards from 11%).
Analysts surveyed by Reuters and Bloomberg noted X5 strong performance in Q4/13, while its main competitor Magnit reported sales decline in Q4.
In 2011, X5 acquired another retail chain Kopeika with 652 stores, capitalization before the acquisition estimated at USD 1.6bn-USD 1.8bn. Share of 47.68% in X5 is held by Russian Alfa Group (assets in telecom, extraction, retail and other sectors).