X5 Retail says EBITDA rises 20 bln rbl on digital transformation

MOSCOW, Oct 27 (PRIME) -- The combined impact from digital transformation of businesses of X5 Retail Group on the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) should exceed 20 billion rubles per year starting from 2021, CEO Igor Shekhterman said on Tuesday during the company’s investor day.

“We expect the results of this entire program of digital transformation to have a combined annual impact on EBITDA of more than 20 billion rubles starting from 2021,” he said.

According to the presentation, the company expects the share of digital business in its revenue to grow to 5% in 2023.

Shekhterman gave self-checkout registers that the company had developed and started introducing in its stores as an example. Each machine saves about 200,000 rubles as compared with average market prices for comparable machines, he said.

“More than 3,500 self-checkout registers of our in-house design have been installed in 1,186 stores of X5. The cost-cutting for our capex will exceed 900 million rubles this year thanks to these installations,” he said.

(76.4443 rubles – U.S. $1)

End %%md/jst%%