11th Aug 2008 10:06
X5 PLANS TO RETAIN KARUSEL BRAND
Amsterdam, 11 August 2008 - X5 Retail Group N.V. ("X5" or the "Company"), Russia's largest retailer in terms of sales (LSE ticker: "FIVE"), announces today that is has decided to retain the Karusel brand and to use it for all of the Company's hypermarkets.
As it was announced by X5 on 25 June 2008, in addition to purchasing the entire issued share capital in Formata Holding B.V, the owner of the Karusel hypermarket chain, the Company has also acquired certain intellectual property, which originally was not part of the Call Option Agreement, including Karusel brand.
X5 has thoroughly reviewed its initial approach towards rebranding of the acquired stores, analysed brand awareness and customer loyalty to the Karusel brand. Based on the results of this analysis, X5 has decided to retain the brand and to use it for all of the Company's hypermarkets. All new hypermarkets will be opened under the Karusel brand, while rebranding of existing stores will be done gradually.
The decision to retain the brand will enable X5 to optimise the Karusel integration process, while a single brand for all hypermarkets means more efficiency in terms of operating the stores and clearer value proposition for the customers. The Company is considering using the Mercado brand for its future projects.
X5 Retail Group plans to provide an update on the progress of Karusel's integration and the integration plan along with the announcement of the Company's financial results for the first half of 2008, which is preliminarily scheduled for the end of August. Simultaneously X5 will provide 2008 guidance for the joint Company.
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For further details please contact |
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Anna Kareva IR Director Tel.: +7 (495) 980-27-29 ext. 22-162 e-mail: [email protected] |
Elena Cherkalova PR Manager Теl.: +7 (495) 662-88-88 ext. 41-330 e-mail: [email protected] |
Note to Editors:
X5 Retail Group N.V. is Russia's largest retailer in terms of sales. The Company was created as a result of a merger between Pyaterochka (soft discounter chain) and Perekrestok (supermarket chain) on 18 May 2006.
As at 30 June 2008, X5 had 991 Company-managed stores located in Moscow, St. Petersburg and other regions of European Russia, Urals and Ukraine, including 762 soft discount stores, 190 supermarkets and 39 hypermarkets.
As of 30 June 2008, X5's franchisees operated 710 stores across Russia and in Kazakhstan.
X5's net sales for the full year 2007 reached USD 5,320 mln, an increase of 53% year-on-year. Gross profit for the period totaled USD 1,404 mln, EBITDA amounted to USD 479 mln. Full year 2007 net income reached USD 144 mln.
X5 Retail Group N.V.'s net retail sales for the first half 2008 surged 61% in USD terms and reached USD 3,744 mln (excluding Karusel). Including Karusel on pro-forma basis the Company's net retail sales for the first half 2008 totaled USD 4,303 mln.
Forward looking statements:
This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as" anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal" believe", or other words of similar meaning.
By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond X5 Retail Group N.V.'s control. As a result, actual future results may differ materially from the plans, goals and expectations set out in these forward-looking statements.
Any forward-looking statements made by or on behalf of X5 Retail Group N.V. speak only as at the date of this announcement. Save as required by any applicable laws or regulations, X5 Retail Group N.V. undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
Related Shares:
X5 Retail