CFO says X5 Retail Group aims at EBITDA margin of over 7%

MOSCOW, Apr 26 (PRIME) -- Russia’s X5 Retail Group targets an earnings before taxes, depreciation, and amortization (EBITDA) margin above 7%, CFO Svetlana Demyashkevich said in a conference call on Thursday.

In January–March, the company’s adjusted EBITDA margin fell to 6.3% from 7.7% in the same period of 2017. In 2017, the company’s EBITDA margin remained flat on the year at 7.7%.

“We still keep the target of over 7% for the year. As we’ve said before, the first quarter is the most difficult for us from the point of view of maintaining profitability,” Demyashkevich said.

The EBITDA margin in January–March and April–June of 2017 was unusually high backed by amendments to the trade law and cost cuts. “If we look at dynamics that we had in 2015 and 2016, I would say that the current margin dynamics are normal from the point of view of seasonality,” she said.

Russia’s food inflation fell to an all-time low of 1% in January–March 2018, which had an impact on all retailers, she added.

End