Business & Financial News

Published on the eve not-audited financial parameters of Х5 Retail Group for 2007 have turned out not so successful for the company. Profitability of total profit and pure profitability have decreased to 26,4 and 2,65 % accordingly. Low parameters became payment for aggressive capture of a share in the market and too high rates of proceeds growth.
Only net profit parameter (due to the technical reasons) became above expectations of investors and analysts’ forecasts. Jump in growth of Ð¥5 net profit (it has increased for 38 %, up to 141 million doll.) in many respects speaks of “the high sum of reassessment of foreign currency operations”. Concerning the 53 % increases in proceeds of the company, it, according to analysts, became possible basically due to growth of comparable sales on 20 % and the average check for 13 % and opening of new shops.
At the same time experts specify that in 2007 Х5 has shown the tendency to decrease in business profitability. Profitability of total profit and pure profitability have decreased on 0,35 percentage items and on 0,29 percentage items. Profitability of EBITDA has not changed almost, having increased on 0,5 percentage items (up to 9 %).
According to analysts, decrease in pure profitability speaks of increase in debt and growth of corresponding percentage payments.