X5 Retail Group. Годовой отчет за 2022 год (на английском) - часть 5

Summary of operating results

STRATEGIC REPORT

FINANCIAL REVIEW

66

% change, y-o-y

Average ticket

¹

Number of customers

¹

Net retail sales

Pyaterochka

7.9

9.9

18.3

Perekrestok

7.1

3.3

10.5

Karusel

5.3

(53.1)

(50.6)

Chizhik

11.0

11x

12x

X5 Group

7.2

10.4

18.3

% growth, y-o-y

Sales

Traffic

Basket

Pyaterochka

11.7

3.5

7.9

Perekrestok

7.1

0.0

7.1

Karusel

(14.3)

(16.0)

2.1

X5 Group

10.8

3.1

7.5

RUB mln

2022

2021

% change, y-o-y

Pyaterochka

2,100,019

1,779,567

18.0

Perekrestok

365,283

337,391

8.3

Karusel

15,693

31,723

(50.5)

Chizhik

35,893

2,940

12x

Offline net sales

⁴

2,531,369

2,151,621

17.7

Digital businesses’ net sales

70,354

47,943

46.6

Total net sales

2,601,723

2,199,564

18.3

square metres

31-Dec-22

31-Dec-21

% change, y-o-y

Pyaterochka

7,497,056

7,048,488

6.4

Perekrestok

1,085,496

1,098,905

(1.2)

Karusel

49,225

128,063

(61.6)

Chizhik

152,370

20,327

7x

X5 Group

²

9,107,479

8,409,757

8.3

1 Excluding Vprok.ru.
2 Including Vprok.ru, Mnogo Lososya, Krasny Yar and 

Slata, and joint dark stores.

3 LFL comparisons of retail sales between two periods are 

comparisons of retail sales in the local currency 
(including VAT) generated by relevant stores. The stores 
that are included in LFL comparisons are those that 
have operated for at least 12 full months. Their sales are 
included in the LFL calculations starting from the day of 

the store’s opening. We include all stores that fit our LFL 

criteria in each reporting period.

4 Including Krasny Yar and Slata.

2022 net retail sales and sales drivers

2022 LFL  results

³

Sales of offline and digital businesses

Selling space (end of period)

Staff costs

(209,940)

(185,572)

13.1

(209,940)

(185,572)

13.1

% of revenue

8.1

8.4

(36) b.p.

8.1

8.4

(36) b.p.

incl. LTI and share-based 
payments

(2,517)

(3,011)

(16.4)

(2,517)

(3,011)

(16.4)

staff costs excl. LTI, % of revenue

8.0

8.3

(32) b.p.

8.0

8.3

(32) b.p.

Lease expenses

(19,624)

(14,452)

35.8

(117,825)

(105,451)

11.7

% of revenue

0.8

0.7

10 b.p.

4.5

4.8

(26) b.p.

Utilities

(51,309)

(45,539)

12.7

(51,309)

(45,539)

12.7

% of revenue

2.0

2.1

(10) b.p.

2.0

2.1

(10) b.p.

Other store costs

(23,685)

(22,568)

4.9

(24,573)

(23,418)

4.9

% of revenue

0.9

1.0

(11) b.p.

0.9

1.1

(12) b.p.

Third-party services

(20,187)

(22,016)

(8.3)

(19,796)

(21,718)

(8.8)

% of revenue

0.8

1.0

(22) b.p.

0.8

1.0

(23) b.p.

Other expenses

(30,118)

(26,881)

12.0

(36,714)

(31,518)

16.5

% of revenue

1.2

1.2

(6) b.p.

1.4

1.4

(2) b.p.

SG&A (excl. D&A&I and impact 
from Karusel transformation)

(354,863)

(317,028)

11.9

(460,157)

(413,216)

11.4

% of revenue

13.6

14.4

(76) b.p.

17.7

18.7

(108) b.p.

Adj. SG&A (excl. D&A&I, LTI, 
share-based payments and 
impact from Karusel 
transformation)

(352,346)

(314,017)

12.2

(457,640)

(410,205)

11.6

% of revenue

13.5

14.2

(72) b.p.

17.6

18.6

(104) b.p.

RUB mln

2022

2021

% change,

y-o-y

2022

2021

% change,

y-o-y

IFRS 16

pre-IFRS 16

STRATEGIC REPORT

FINANCIAL REVIEW

67

Adjusted selling, general and administrative (SG&A) expenses

In 2022, adjusted SG&A expenses under IFRS 16 as a 
percentage of revenue decreased year-on-year by 72 b.p. 
to 13.5% (decreased by 104 b.p. to 17.6% pre-IFRS 16) 
mainly due to lower staff costs, utilities, other store costs, 
and third-party services. 

Staff costs (excluding LTI and share-based payments) in 
2022, as a percentage of revenue, decreased year-on-
year by 32 b.p. to 8.0% due to the operating leverage 
effect as well as a balanced approach to targeted salary 
increases. 

Lease expenses under IFRS 16 as a percentage of 
revenue in 2022 increased year-on-year by 10 b.p. to 
0.8% (decreased by 26 b.p. to 4.5% pre-IFRS 16) mainly 
due to a higher number of revenue-linked leases and 
reverse franchising agency fees. The decrease in 
pre-IFRS 16 lease expenses by 26 b.p. to 4.5% was 
caused by a positive operating leverage effect and 
measures taken to reduce lease expenses, partially 
compensated by a higher number of revenue-linked 
leases.

Utility costs, as a percentage of revenue in 2022, 
decreased year-on-year by 10 b.p. to 2.0% driven by 
operating leverage effect as well as improved control of 
climate equipment settings and optimisation initiatives. 

In 2022, other store costs under IFRS 16 as a percentage 
of revenue decreased year-on-year by 11 b.p. to 0.9% 
(decreased by 12 b.p. to 0.9% pre-IFRS 16) mainly due to 
positive operating leverage effect. 

In 2022, third-party services under IFRS 16 as a 
percentage of revenue decreased year-on-year by 22 b.p. 
to 0.8% (decreased by 23 b.p. to 0.8% pre-IFRS 16) 
mainly due to lower marketing expenses. 

Other expenses under IFRS 16 as a percentage of 
revenue decreased year-on-year by 6 b.p., totalling 1.2% 
(decreased by 2 b.p., totalling 1.4% pre-IFRS 16) mainly 
due to positive operating leverage effect and measures 
taken to reduce expenses.

Analysis of selling, general and administrative (SG&A) expenses

STRATEGIC REPORT

FINANCIAL REVIEW

68

The consolidated financial statements for the year ended 
31 December 2022 included accruals for liabilities related 
to deferred conditional payouts for the LTI programme 
covering 2018–2020, the new LTI programme for 
2021–2023, as well as the new LTI programme for new 
businesses (Mnogo Lososya, Chizhik and 5Post). In total, 
RUB 2,517 million was accrued in 2022 for the LTI 
programme and share-based payments. 

The LTI programme is a cash incentive programme over a 
three-year period until 31 December 2023, with an 
extension component of deferred and conditional 
payouts in order to maintain the focus on long-term goals 
and to provide for an effective retention mechanism. 

The LTI programme’s targets are designed to align the 
long-term interests of shareholders and management. 
They focus on maintaining leadership in terms of revenue 
and enterprise value multiple relative to peers (for 2021), 
as well as free cash flow relative to revenue (for 2022 and 
2023). Additionally, the programme aims to achieve 
specific ESG targets. 

In 2022, the Company re-assessed its strategic priorities 
and corresponding long-term performance measures 
and targets. Starting from 2022, the enterprise value 
multiple is no longer considered a meaningful leadership 
indicator for X5. Instead, Free Cash Flow is used as a key 
indicator of the Company’s financial health and effective 
financial management. Additionally, the LTI programme 
includes triggers relating to the EBITDA margin 
pre-IFRS 16 and to the net debt/EBITDA ratio pre-IFRS 16 
to retain focus on prudent financial and balance sheet 
management. 

The accruals have been made for all three targets in 
2022 and 2023 and for the market share and ESG targets 
only in 2021. 

All LTI accruals and attributable social taxes are 
summarised in the table below.

Long-term incentive (LTI) programme

LTI programme expense (including social security contributions (SSC))

RUB mln

2022

2021

2020

2019

2018

2017

2016

2015

LTI 2015–2017

−

−

(541)

327

1,552

2,875

3,053

3,607

LTI 2018–2020

68

1,055

830

2,444

619

−

−

−

LTI 2021–2023

2,122

1,350

−

−

−

−

−

−

New businesses

314

515

−

−

−

−

−

−

Total LTI

2,504

2,920

289

2,771

2,171

2,875

3,053

3,607

Gross profit

635,196

561,317

13.2

626,744

553,363

13.3

Gross profit margin, %

24.4

25.5

(108) b.p.

24.1

25.1

(104) b.p.

Adj. SG&A (excl. D&A&I, LTI, 
share-based payments,
and impact from Karusel 
transformation)

(352,346)

(314,017)

12.2

(457,640)

(410,205)

11.6

% of revenue

13.5

14.2

(72) b.p.

17.6

18.6

(104) b.p.

Net impairment losses on 

financial assets

(346)

(154)

124.7

(346)

(154)

124.7

% of revenue

0.01

0.01

1 b.p.

0.01

0.01

1 b.p.

Lease/sublease and other 
income

23,025

23,877

(3.6)

20,710

21,193

(2.3)

% of revenue

0.9

1.1

(20) b.p.

0.8

1.0

(17) b.p.

Adj. EBITDA

305,529

271,023

12.7

189,468

164,197

15.4

Adj. EBITDA margin, %

11.7

12.3

(56) b.p.

7.3

7.4

(17) b.p.

LTI, share-based payments and 
other one-off remuneration 
payments expense and SSC

(2,517)

(3,011)

(16.4)

(2,517)

(3,011)

(16.4)

% of revenue

0.1

0.1

(4) b.p.

0.1

0.1

(4) b.p.

Effect of Karusel transformation

(163)

(162)

0.6

(163)

(162)

0.6

% of revenue

(0.01)

(0.01)

(0) b.p.

(0.01)

(0.01)

(0) b.p.

EBITDA

302,849

267,850

13.1

186,788

161,024

16.0

EBITDA margin, %

11.6

12.1

(52) b.p.

7.2

7.3

(13) b.p.

RUB mln

2022

2021

% change,

y-o-y

2022

2021

% change,

y-o-y

IFRS 16

pre-IFRS 16

EBITDA and adjusted EBITDA

STRATEGIC REPORT

FINANCIAL REVIEW

69

Lease/sublease and other income

As a percentage of revenue, the Company’s income from lease, 
sublease and other operations under IFRS 16 decreased by 
20 b.p. year-on-year, totalling 0.9% (decreased by 17 b.p. year-
on-year, totalling 0.8% pre-IFRS 16), driven by lower income from 

sales of recyclables, lower fixed sublease fees as percentage of 

revenue and absence of depositary service fee income under 
the GDR programme.

EBITDA analysis

EBITDA under IFRS 16 in 2022 grew year-on-year by 13.1% and 
totalled RUB 302,849 million (grew by 16.0% and totalled 
RUB 186,788 million pre-IFRS 16), while EBITDA margin under 
IFRS 16 decreased by 52 b.p. year-on-year to 11.6% (decreased by 
13 b.p. to 7.2% pre-IFRS 16).

EBITDA analysis by segment

Upon adoption of IFRS 16, the Management Board continued to 
assess the performance of the Company’s operating segments 
based on a measure of sales and adjusted EBITDA pre-IFRS 16, as 

it more accurately reflects the true nature of the Company’s 

business and retail formats.

Pyaterochka (pre-IFRS 16)

RUB mln

2022

2021

% change,

y-o-y

Revenue

2,124,617

1,795,018

18.4

EBITDA

170,538

145,495

17.2

EBITDA margin, %

8.0

8.1

(8) b.p.

Pyaterochka’s EBITDA margin decreased by 8 b.p. to 8.0% due to lower 
commercial margin on the back of price investments partially compensated by 
positive operating leverage effect in logistics and staff costs as well as 

optimisation of marketing expenses.

Perekrestok (pre-IFRS 16)

RUB mln

2022

2021

% change,

y-o-y

Revenue

386,199

351,100

10.0

EBITDA

28,251

24,241

16.5

EBITDA margin, %

7.3

6.9

41 b.p.

Perekrestok’s EBITDA margin increased by 41 b.p. year-on-year in FY 2022 to 7.3% 

mainly due to increased profitability of own production.

Other segments: Chizhik, Karusel, Vprok.ru, 
5Post, Mnogo Lososya, and Krasny Yar
and Slata (pre-IFRS 16)

RUB mln

2022

2021

% change,

y-o-y

Revenue

94,416

58,701

60.8

EBITDA

(5,963)

(4,369)

36.5

EBITDA margin, %

(6.3)

(7.4)

113 b.p.

Negative EBITDA of Other segments improved by 113 b.p. year-on-year in FY 2022 

to –6.3% driven by increasing efficiency of 5Post, Vprok.ru and Mnogo Lososya 

and consolidation of positive EBITDA of Krasny Yar and Slata.

Corporate Centre (pre-IFRS 16)

RUB mln

2022

2021

% change,

y-o-y

EBITDA

(6,038)

(4,343)

39.0

Corporate expenses increased by 39.0% year-on-year in 2022 due to the absence 

of depositary service fee income under GDR programme and investments into 
information security.

STRATEGIC REPORT

FINANCIAL REVIEW

70

Depreciation, amortisation and impairment costs under IFRS 16 in 2022 
totalled RUB 164,731 million (RUB 89,156 million pre-IFRS 16), 
decreasing as a percentage of revenue by 49 b.p. year-on-year to 6.3% 
(decreasing by 5 b.p. to 3.4% pre-IFRS 16). The change was primarily 
driven by a decrease in the depreciation of right-of-use assets, which 
resulted from an increased discount rate, as well as a positive operating 
leverage effect.

Depreciation, amortisation
and impairment costs

IFRS 16

pre-IFRS 16

Non-operating gains and losses

RUB mln

2022

2021

% change,

y-o-y

2022

2021

% change,

y-o-y

Operating profit

138,118

117,572

17.5

97,632

84,359

15.7

Operating profit margin, %

5.3

5.3

(3) b.p.

3.7

3.8

(8) b.p.

Net finance costs

(68,417)

(57,229)

19.5

(18,439)

(16,569)

11.3

Net FX result

(2,032)

399

n/a

(2,699)

175

n/a

Profit before tax

67,669

60,742

11.4

76,494

67,965

12.5

Income tax expense

(22,481)

(18,004)

24.9

(24,246)

(19,452)

24.6

Net profit

45,188

42,738

5.7

52,248

48,513

7.7

Net profit margin, %

1.7

1.9

(20) b.p.

2.0

2.2

(19) b.p.

Effect of Karusel transformation and tax accrual related
to X5’s reorganisation in previous periods

2,022

1,875

7.9

2,022

1,810

11.7

% of revenue

0.1

0.1

(1) b.p.

0.1

0.1

(0) b.p.

Adj. net profit

47,210

44,613

5.8

54,270

50,323

7.8

Adj. net profit margin, %

1.8

2.0

(21) b.p.

2.1

2.3

(20) b.p.

STRATEGIC REPORT

FINANCIAL REVIEW

71

Net finance costs under IFRS 16 in 2022 amounted to
RUB 68,417 million, a 19.5% increase from 2022 (RUB 18,439 million, 
a 11.3% increase from 2020 pre-IFRS 16) driven by increasing interest 
rates in Russian capital markets and increasing interest on lease liabilities 
partially compensated by interest income on short-term financial 
investments. Under pre-IFRS 16, the increase is driven by increasing 
interest rates partially compensated by interest income on short-term 
investments. 

The net FX result reflects the volatility of the rouble exchange rate. 

Income tax expenses under IFRS 16 increased by 24.9% in 2022. In 
2022, X5’s effective tax rate under IFRS 16 increased to 33.2% from 
29.6% in 2021 (increased to 31.7% from 28.6% in 2021 pre-IFRS 16), due 
to one-off effects. 

Net profit in 2022 under IFRS 16 included one-off adjustments totalling 
RUB 2,022 million (RUB 2,022 million pre-IFRS 16) related to the Karusel 
transformation and a tax accrual related to X5’s reorganisation in prior 
periods.

Analysis of non-operating
gains and losses

IFRS 16

pre-IFRS 16

Consolidated cash flow

RUB mln

2022

2021

% change,

y-o-y

2022

2021

% change,

y-o-y

Net cash from operating activities before changes in working capital

300,768

265,528

13.3

187,026

161,387

15.9

Change in working capital

5,924

32,415

(81.7)

4,088

32,244

(87.3)

Net interest and income tax paid

(85,768)

(70,481)

21.7

(35,887)

(29,919)

19.9

Net cash flows generated from operating activities

220,924

227,462

(2.9)

155,227

163,712

(5.2)

Adj. net cash used in investment activities

(75,978)

(89,435)

(15.0)

(76,295)

(90,295)

(15.5)

Short-term financial investments

−

(50,000)

n/a

−

(50,000)

n/a

Net cash used in financing activities

(127,655)

(81,890)

55.9

(61,641)

(17,280)

256.7

Effect of exchange rate changes on cash and cash equivalents

(98)

(83)

18.1

(98)

(83)

18.1

Net increase/(decrease) in cash and cash equivalents

17,193

6,054

184.0

17,193

6,054

184.0

STRATEGIC REPORT

FINANCIAL REVIEW

72

In 2022, the Company’s net cash from operating activities 
before changes in working capital under IFRS 16 
increased by RUB 35,240 million, or 13.3%, year-on-year, 
totalling RUB 300,768 million (increased by 
RUB 25,639 million, or 15.9%, totalling RUB 187,026 million 

pre-IFRS 16) and reflecting the overall business growth. 

Changes in working capital under IFRS 16 totalled RUB 
5,924 million in 2022 compared with RUB 32,415 million
in 2021. Under pre-IFRS 16, changes in working capital 
in 2022 totalled RUB 4,088 million compared with 
RUB 32,244 million in 2021. The decrease in the positive 
change in working capital was mainly caused by a higher 
increase in inventories resulting from business growth. 
Additionally, the lower increase in accounts payable was 
due to earlier stockpiling and payments before the New 
Year season. This was partially offset by a higher increase 
in other accounts payable. Net interest and income tax 
paid under IFRS 16 in 2021 increased year-on-year by
RUB 15,287 million, or 21.7%, totalling RUB 85,768 million 
(increased by RUB 5,968 million, or 19.9%, totalling 

RUB 35,887 million pre-IFRS 16), driven by a higher profit 

before tax, lower 

available prepayments made in previous periods and 
higher interest paid due to increasing interest rates in the 
Russian capital markets. This was partially offset by interest 

income from short-term financial investments. As a result, 
in 2022 net cash flows generated from operating activities 

increased to RUB 220,924 million under IFRS 16 
(RUB 155,227 million pre-IFRS 16), compared with 
RUB 227,462 million under IFRS 16 (RUB 163,712 million 
pre-IFRS 16) for the same period in 2021. 

Net cash used in investing activities under IFRS 16, which 
generally consists of payments for property, plant and 
equipment, totalled RUB 75,978 million in 2022, compared 
with RUB 89,435 million (RUB 76,295 in 2022 compared 
with RUB 90,295 million in 2021 pre-IFRS 16) in 2021. 

Net cash used in financing activities under IFRS 16 totalled 

RUB 127,655 million (RUB 61,641 million pre-IFRS 16) in 
2022, compared with RUB 81,890 million under IFRS 16 
(RUB 17,280 million pre-IFRS 16) in 2021.

Сash flow analysis

As at 31 December 2022, the Company’s total debt 
pre-IFRS 16 amounted to RUB 234,532 million, 37.2% 
of which was short-term debt and 62.8% was long-term 
debt. The Company’s debt is 100% denominated in 
Russian roubles. As at 31 December 2022, the majority 

of X5’s debt had fixed interest rates.

As at 31 December 2022, the Company had access to 
RUB 475,020 million in available credit limits with major 
banks.

Liquidity analysis

Liquidity update

RUB mln

31-Dec-22

% of total

31-Dec-21

% of total

31-Dec-20

% of total

Total financial debt

234,532

294,338

261,947

Short-term borrowings

87,146

37.2

87,767

29.8

77,026

29.4

Long-term borrowings

147,386

62.8

206,571

70.2

184,921

70.6

Net debt (pre-IFRS 16)

191,277

268,276

241,939

Net debt/EBITDA (pre-IFRS 16)

1.02x

1.67x

1.67x

Lease liabilities (IFRS 16)

591,160

577,363

548,501

Net debt/EBITDA (IFRS 16)

2.58x

3.16x

3.24x

Information on alternative

performance measures

In this report and other public disclosures, X5 Group presents certain alternative performance 
measures (APMs) that it believes provide readers with a more detailed and accurate understanding 

of the Company’s financial and operating performance. In accordance with European Securities and 
Markets Authority (ESMA) guidelines, a list of definitions, explanations of the relevance of APMs, 
comparatives, and reconciliations are provided below.

STRATEGIC REPORT

INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

73

EBITDA (including EBITDA margin)

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Operating profit

138,118

117,572

97,632

84,359

Depreciation, amortisation and impairment

164,731

150,278

89,156

76,665

EBITDA

302,849

267,850

186,788

161,024

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Revenue

2,605,232

2,204,819

2,605,232

2,204,819

EBITDA

302,849

267,850

186,788

161,024

EBITDA margin, %

11.6

12.1

7.2

7.3

Earnings before interest, tax, depreciation, and amortisation (EBITDA) is a measure of the Company’s operating 
performance. It is a way to evaluate X5 Group’s performance exclusive of financing, accounting and taxation factors. 
X5 believes that showing EBITDA and EBITDA margin performance provides greater detail about the Company’s 
performance.

Adjusted EBITDA (including adjusted EBITDA margin)

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

EBITDA

302,849

267,850

186,788

161,024

Adjustments:

LTI, share-based payments and other one-off 
remuneration payments expense and SSC

2,517

3,011

2,517

3,011

Effect of Karusel transformation

163

162

163

162

Adj. EBITDA

305,529

271,023

189,468

164,197

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Revenue

2,605,232

2,204,819

2,605,232

2,204,819

Adj. EBITDA

305,529

271,023

189,468

164,197

Adj. EBITDA margin, %

11.7

12.3

7.3

7.4

Adjusted EBITDA is a measure of the Company’s operating performance. It is a way to evaluate the Company’s 
performance exclusive of financing, accounting and taxation factors, and also excluding the effects of the long-term 
incentive (LTI) programme and the impact of the Karusel transformation, which do not represent ongoing costs of 
doing business. X5 believes that showing adjusted EBITDA and adjusted EBITDA margin performance provides a 
more accurate reflection of the Company’s sustainable performance.

Adjusted net profit (including adjusted net profit margin)

Adjusted SG&A (including adjusted SG&A as % of revenue)

STRATEGIC REPORT

INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

74

Adjusted net profit is a measure of the Company’s profitability. It is a way to evaluate the Company’s performance 
exclusive of one-off factors, including the effect of the Karusel transformation and a tax accrual related to X5’s 
reorganisation in prior periods, which do not represent ongoing costs of doing business. X5 believes that showing 
adjusted net profit and adjusted net profit margin performance provides a more accurate reflection of the Company’s 
sustainable performance.

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

SG&A

519,757

467,468

549,476

490,043

Adjustments:

LTI, share-based payments and other one-off 
remuneration payments expense and SSC

(2,517)

(3,011)

(2,517)

(3,011)

Effect of Karusel transformation

(163)

(162)

(163)

(162)

Depreciation, amortisation and impairment

(164,731)

(150,278)

(89,156)

(76,665)

Adjusted SG&A

352,346

314,017

457,640

410,205

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Revenue

2,605,232

2,204,819

2,605,232

2,204,819

Adjusted SG&A

352,346

314,017

457,640

410,205

Adjusted SG&A expenses as % of revenue

13.5

14.2

17.6

18.6

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Net profit

45,188

42,738

52,248

48,513

Adjustments:

Effect of Karusel transformation and tax accrual related
to X5’s reorganisation in previous periods

2,022

1,875

2,022

1,810

Adj. net profit

47,210

44,613

54,270

50,323

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Revenue

2,605,232

2,204,819

2,605,232

2,204,819

Adj. net profit

47,210

44,613

54,270

50,323

Adj. net profit margin, %

1.8

2.0

2.1

2.3

Selling, general and administrative expenses (SG&A) are reported on the income statement as the sum of all direct 
and indirect selling expenses and all general and administrative expenses of the Company. X5 Group reports adjusted 
SG&A, which excludes the effects of the LTI programme and share-based payments, the impact of the Karusel 
transformation as well as depreciation, amortisation and impairment. The Company believes that adjusted SG&A 
provides additional detail regarding the long-term SG&A costs of the business.

Adjusted net cash used in investing activities

ROIC

STRATEGIC REPORT

INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

75

Adjusted net cash used in investing activities is a measure of the Company’s cash generation or spending from 

various investment-related activities in a specific period. It is a way to evaluate the change in a company’s cash 
position from investment gains/losses and fixed asset investments. X5 believes that showing adjusted net cash used 
in investing activities provides a more accurate reflection of the Company’s performance.

IFRS 16

pre-IFRS 16

2022

2021

2022

2021

NOPAT

92,232

82,724

66,686

60,215

Invested capital (average equity + net debt)

874,378

884,229

360,029

384,793

ROIC

10.5%

9.4%

18.5%

15.6%

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

Net cash used in investing activities

75,978

139,435

76,295

140,295

Adjustments:

Short-term financial investments

−

(50,000)

−

(50,000)

Adjusted net cash used in investing activities

75,978

89,435

76,295

90,295

Adjusted FCF

Adjusted free cash flow is a measure of the  Company’s cash generation. It is a way to evaluate the Company’s 
cash generation after taking into consideration cash outflows that support its operations and maintain its 
capital assets. X5 believes that showing adjusted free cash flow provides a more accurate reflection of the 
Company’s performance.

IFRS 16

pre-IFRS 16

RUB mln

2022

2021

2022

2021

FCF

144,946

88,027

78,932

23,417

Adjustments:

Payments for financial assets

−

50,000

−

50,000

Adjusted FCF

144,946

138,027

78,932

73,417

Adjusted ROIC

Adjusted ROIC is a measure of the Company’s efficiency at allocating the capital under its control to profitable 
investments adjusted for one-off effects and tax on investments. It is a way to evaluate how well a company is using 
its capital to generate profits excluding one-off effects. X5 believes that showing adjusted ROIC provides a more 
accurate reflection of the Company’s performance.

IFRS 16

pre-IFRS 16

2022

2021

2022

2021

NOPAT

92,232

82,724

66,686

60,215

Adjustments:

Effect of Karusel transformation, 

tax on investments and tax accrual related to X5’s 

reorganisation in previous periods

3,721

7,739

2,502

5,439

Adjusted NOPAT

95,953

90,462

69,188

65,654

Invested capital (average equity + net debt)

874,378

884,229

360,029

384,793

Adjusted ROIC

11.0%

10.2%

19.2%

17.1%

ROIC is a measure of the Сompany’s efficiency at allocating the capital under its control to profitable investments. It is 
a way to evaluate how well a company is using its capital to generate profits.

Net debt/EBITDA

Net retail sales

STRATEGIC REPORT

INFORMATION ON ALTERNATIVE PERFORMANCE MEASURES

76

The net borrowings to earnings before interest depreciation and amortisation (EBITDA) ratio is a measurement of 
leverage. It is calculated as the Company’s long-term and short-term borrowings, minus cash and cash equivalents, 

divided by EBITDA. The net debt to EBITDA ratio is a commonly used indicator that provides additional clarification 

regarding the Company’s debt burden.

RUB mln

2022

2021

Revenue

2,605,232

2,204,819

Adjustments:

Revenue from wholesale operations and other services

(9,136)

(10,335)

Revenue from franchise services

(10)

(7)

Net retail sales

2,596,086

2,194,477

IFRS 16

pre-IFRS 16

31-Dec-22

31-Dec-21

31-Dec-22

31-Dec-21

Total debt, incl.:

234,532

294,338

234,532

294,338

Short-term borrowings

87,146

87,767

87,146

87,767

Long-term borrowings

147,386

206,571

147,386

206,571

Lease liabilities

591,160

577,363

−

−

Cash and cash equivalents

43,255

26,062

43,255

26,062

Net debt

782,437

845,639

191,277

268,276

EBITDA

302,849

267,850

186,788

161,024

Net debt/EBITDA

2.58x

3.16x

1.02x

1.67x

Net retail sales show the amount of sales generated by the Company after the deduction of revenue from franchise 
services, wholesale operations and other services. Because food retail is X5 Group’s core business, net retail sales is 
provided to give a clearer picture of the performance of the Company’s core business activity.

Like-for-like (LFL)

%

2022

2021

Net retail sales growth

18.3

11.2

Less contribution from an increase in selling space

7.5

6.1

LFL

10.8

5.1

LFL comparisons of retail sales between two periods are comparisons of retail sales in the local currency (including 
VAT) generated by relevant stores. The stores that are included in LFL comparisons are those that have operated 
for at least 12 full months. Their sales are included in the LFL calculation starting from the day of the store’s 

opening. We include all stores that fit our LFL criteria in each reporting period. This is a commonly used indicator in 

the retail industry that helps illustrate the sustainability of a company’s growth by focusing on the performance of 
stores that have already been operating for more than 12 months by removing the effect of new stores opened 
during the period.

Sustainability strategy 

77

contributes to one of the six environmental 
objectives;

does ‘no significant harm’ (DNSH) to any of the six 
environmental objectives; 

meets ‘minimum safeguards’, such as the UN 
Guiding Principles on Business and Human Rights, 
to not exert a negative social impact, and 

complies with the technical screening criteria 

developed by the EU Technical Expert Group

It was decided to alter our 2023 food waste 

goal (to send wasted merchandise for 
disposal or recycling) and to revise the 40% 
target down to 20% due to the low 
availability of food waste recycling 
technology 

The quantitative goal for supply chain 
responsibility was replaced with a 
qualitative one, as most international 
certification has been suspended in Russia 

Our approach 

We aim to develop X5 Group as a profitable, sustainable 
enterprise that is able to satisfy the needs and demands of 
Russian shoppers by bringing them the top products on the 
market and best-in-class service in user-friendly online and 
offline food retail formats. 

Throughout 2022, we embedded a sustainability-led 
approach into our business strategy by focusing on 
objectives linked to the United Nations Sustainable 
Development Goals (UN SDGs) that we consider most 
relevant to our operations: these include Zero Hunger, Good 
Health and Well-being, Decent Work and Economic Growth, 
as well as Responsible Consumption and Production. Our 
sustainability goals also align with the national development 
goals of the Russian Federation: Goal 12 correlates with the 

national goal of developing a comfortable and safe living 
environment; Goals 2 and 3 correlate with the national goal 

of preservation of the population, health and welfare of 

people; and Goal 8 correlates with the national goal of 

decent, efficient labor and successful entrepreneurship. We 
are also mindful of the UN SDGs indirectly related to the 
Company’s activities, and we pursue targeted actions to 
achieve them. 

Long-term sustainability is the prime factor in shaping our 
ESG framework, and we have taken into consideration the 
interests of stakeholders and our potential risks first and 
foremost. 

X5 aspires to make its food products available to everyone. 
We analyse our food supply chain to explore how we can 
make it more cost-efficient and less harmful in terms of food 
and solid waste generation, greenhouse gas emissions and 
air pollution. We pay particular attention to supplier 
accountability and recognise our vital role in promoting 
responsible practices among SMEs. 

Changes in our strategic 

goals through 2022 

The Supervisory Board meeting held in 
September 2022 took a decision to revise 
the sustainability goals in light of the 

changes in business practices: 

This vision is reflected in the agendas for our Supervisory 
Board meetings and the Company’s decisions, including 

those made regarding annual investments in achieving 

sustainability goals and other related activities. 

Executive

CSRD

X5 Group has already published two GRI-compliant 
Sustainability Reports – which are available online – and 
intends to release its third report in the first half of 2023. 

At X5’s regular Supervisory Board meetings, the Supervisory 

Board and the 

 Board discuss strategy execution, 

progress on sustainability goals and the main associated 
risks. 

To hit our sustainability objectives more rapidly and 
effectively, we keep a close eye on emerging technologies 
and business models. Before tapping into innovations, we 
check if they are worthwhile and launch pilot projects. 
Notably, we analyse the trends in AI and technologies 
designed to reduce waste, carbon footprint, and product 
losses on the way to customers. Improvements in our digital 
platforms and online retail, coupled with our new hard 
discounter chain Chizhik, clearly evidence the Company’s 
ongoing strategic efforts to achieve its sustainability goals. 

Our approach to sustainability management leans upon the 
recommendations of the Corporate Sustainability Reporting 
Directive (

). Going forward, key Company disclosures will 

be based on this Directive, and all disclosures will be fully 
CSRD-compliant by 2025. 

This Directive should allow for more thorough and 
standardised ESG disclosures, independent verification

and 

auditing. 

This year, the Company kicked off work to prepare for 
disclosures under the EU Taxonomy for Sustainable Activities 
(Regulation (EU) 2020/852 of 18 June 2020).

X5 Group disclosed activities that contribute to one 

of the six environmental objectives in its – 2021 
Sustainability Report.

The Company is also working on disclosures on the 
other Taxonomy objectives.  

To be classified as a sustainable economic activity 

according to the EU Taxonomy Regulation, 
a company must evaluate its business activities 

and prove that it:  

Freight rail transport  

Freight transport services by road 

Renovation of existing buildings 

The Company found the following activities eligible: 

STRATEGIC REPORT

SUSTAINABLE DEVELOPMENT

SUSTAINABILITY STRATEGY 

78

Sustainability strategy and UN SDGs 

Throughout 2022, X5 Group expanded its efforts to contribute to the 17 UN SDGs in 
line with its Sustainability Strategy. We remain committed to our sustainable 
development framework and consider it critical for achieving our short- and
long-term business goals.

The Company’s ambitious 30x30 agenda aims at lowering greenhouse gas 
emissions per square metre of retail space, as well as the ratio of waste generated to 
retail sales by 30%, respectively, while increasing renewable energy use in X5 
operations to 30%. This is our straightforward goal by 2030. 

Increase the share of fresh 
produce, fruits and vegetables 
in our assortment to 44% at 
Pyaterochka and to 50% at 
Perekrestok

Focus

Develop principles and practices
for monitoring suppliers’ responsible
sourcing of goods

Develop principles and practices for 
monitoring suppliers’ responsible 
sourcing of goods

Expand our range of products
for a healthy lifestyle

Expanding the Green Line product mix by 148 SKUs at Perekrestok, including healthy products like gluten-free bread, milk 

alternatives, healthy sweets, and more. 

The following section provides an overview of our key goals and achievements over 
the course of 2022. Further information, including an ESG Databook, is available at 

.

https://esg.x5.ru

Priority 

Goals for 2023

Goals through 2030  

Initiatives throughout 2022 

Relevant UN SDGs  

primary and secondary 
goals

HEALTH

Continue to develop the 
product quality control 
system

Auditing Pyaterochka’s private label manufacturers (PLMs) and fruit and vegetable suppliers. 

Establishing independent third-party quality control in Chizhik stores. 

Adopting the Corrective Action Plan at Chizhik stores based on the audit recommendations for production compliance with 
X5 checklist requirements.

Launching and supporting Food.ru, an edutainment media platform dedicated to healthy eating and lifestyle. 

Expand the range of 
products for a healthy 
lifestyle

Launching a pilot category – Farm – at Perekrestok stores. Eight Perekrestok stores in Moscow filled sections of an aisle with 

farm products such as cottage cheese, dairy products, and meat. 

Installing special aisles with healthy offerings in Perekrestok stores.

Increase the share of 
customers who believe that 
X5’s retail chains help them 
lead a healthy lifestyle

Expand our range of products
for a healthy lifestyle

Three health and wellness festivals with healthy food offerings at Perekrestok stores: over 100,000 people visited the 
festivals, where they could buy healthy products and win prizes.

Perekrestok, Bite, and Epica’s nationwide Champion Marathon: people all over Russia had the opportunity to take up 

running or working out under special fitness programmes developed by professional trainers. 

Pyaterochka’s healthy lifestyle awareness-raising campaign (in collaboration with Rospotrebnadzor and the Federal 

Research Centre of Nutrition, Biotechnology and Food Safety) promoted healthy eating habits on our social media. 

Our eco-activities: 

STRATEGIC REPORT

SUSTAINABLE DEVELOPMENT

SUSTAINABILITY STRATEGY 

79

Sustainability strategy and UN SDGs 

Reduce GHG emissions 
(Scope 1 and Scope 2) 
intensity per sqm of selling 
space by 10% compared 
with 2019

Focus

Indirect

Reduce GHG emissions
(Scope 1 and Scope 2) intensity per 
sqm of selling space by 30% 

compared with 2019 

Converting 20% of the vehicle fleet to gas and diesel hybrid engines. 

Using light-duty trucks and optimising mileage per journey. 

Deploying a standard for opening and refurbishing distribution centres and retail chains with climate-neutral equipment.

Priority 

Goals for 2023

Goals through 2030  

Initiatives throughout 2022 

Relevant UN SDGs  

primary and secondary 
goals

PLANET

Reduce the ratio of waste  
generated to retail sales by 
up to 10% compared with 
2019

Reduce the ratio of waste generated 
to retail sales by 30% compared with 
2019

Returning some pallets to the supplier and repairing pallets in DCs for reuse by Pyaterochka, Perekrestok and Chizhik. 

Launching the centralised collection of recyclables from Perekrestok stores back to DCs. 

Deploying projects for donating wasted products to farms and expiring-but-still-fit products to charities. 

Collecting recyclable items from consumers (batteries, aerosol cans, PET bottles, aluminium cans, and plastic caps). 

Introducing paperless receipts at Perekrestok and Pyaterochka.

Increase the share of 
recyclable solid waste 
generated by our retail 
chains that is sent for 
recycling to up to 95%

Evaluating the Waste Minimisation Policy against new laws. 

Getting on the innovation track to seek various waste recycling solutions. 

Changing workflows to accept and collect recyclables at Pyaterochka and Perekrestok; automated accounting.

STRATEGIC REPORT

SUSTAINABLE DEVELOPMENT

SUSTAINABILITY STRATEGY 

80

Sustainability strategy and UN SDGs 

Increase the share of non-
expired food waste sent for 
reprocessing to up to 20%

Focus

Indirect

Launched Foodsharing, a new aid programme integrated into Pyaterochka and Perekrestok retail chain stores and covering 
several cities, such as Moscow, Saint Petersburg, Chelyabinsk, Ryazan, Yekaterinburg, and Tomsk. 

Deploying Regional Food Aid Centres to streamline the infrastructure for allocating the necessary food volumes and 
develop an effective system for delivering food to people in need in collaboration with regional authorities, NGOs and 
charities. 

Developing a project for transferring non-expired products that is no longer saleable to farms. 

Developing new projects and identifying potential food waste recycling contractors (sending waste for composting, worm 
composting, fertilisation, etc.)

Increase the share of private 
label goods in environmentally 
friendly packaging to 50% or 
more

Shifting Green Line products (Perekrestok’s private label) to sustainable packaging; for example, lemonades were 
repackaged from Tetra Pak and PET into glass containers (similar to Tetra Pak milk). 

Using sustainable packaging for Chizhik private label goods. The share of such packaging amounted to about 70% in 2022, 

almost flat on 2021 despite an increase in packaging types.

Increase the use of renewable 
energy in our operations

Increase share of renewable energy 
used in our operations to 30%

Connecting 13 facilities to Pyaterochka’s renewable energy programme in the Republic of Karelia. A total 39 out of 115 
facilities (about 34%) in the Karelia Division are powered by renewable energy sources. 

Operating 11 Company DCs using low-carbon energy sources.

Priority 

Goals for 2023

Goals through 2030  

Initiatives throughout 2022 

Relevant UN SDGs  

primary and secondary 
goals

PLANET

Develop principles and 
practices for tracing 
suppliers’ responsible 
sourcing of goods

Co-developing a voluntary sustainable packaging standard. 

Sharing sustainability ideas with suppliers through an ever-improving tool — the supplier platform — as well as communicating 
with them at events, seminars and webinars.

STRATEGIC REPORT

SUSTAINABLE DEVELOPMENT

SUSTAINABILITY STRATEGY 

81

Sustainability strategy and UN SDGs 

Double the number of families 
receiving food aid through the 
Basket of Kindness project 
compared with 2019

Focus

Increase the annual growth rate in 
the number of families receiving
assistance through the Basket of 
Kindness programme up to 30% 
per year

Collecting and distributing food to people in need across the country under the Basket of Kindness project. We distributed 

over 518 tonnes of products in 2022, almost 1.5x more than in 2021. 

Priority 

Goals for 2023

Goals through 2030  

Initiatives throughout 2022 

Relevant UN SDGs  

primary and secondary 
goals

COMMUNITY

Engage all stores in Help for 
Lost People programme

Helping around 1,200 lost or disoriented people get back home thanks to the actions of Pyaterochka and Perekrestok store 
employees and volunteers from the LizaAlert search and rescue team. 

Running the Adventure Zones class at Pyaterochka, 

 and LizaAlert under the Safety 

Zones programme.

Centre to Search for Missing People

Develop partnership 
programmes with small and 
medium-sized businesses, 
farmers and local producers

Launching the Farmer Zones project in collaboration with RSMB Corporation. Several regions feature more than 20 zones 

with over 200 farmers supplying their products. 

Develop community care 
programmes

Growing Chizhik to help more people buy high-quality and affordable food. 

Elevating Pyaterochka’s Local Community Centres project. Our stores held workshops, lectures, creative competitions, and 
charity events for locals. Throughout 2022, Local Community Centres averaged over 2,500 events per month, totalling about 
60,000 participants. 

Supporting a Pyaterochka social impact project to prevent obesity among 6–9 year-olds in the Sverdlovsk Region under the 
Care for the Community programme. The project was backed by the regional government, VEB.RF and the Ministry of Health 
of the Sverdlovsk Region.

STRATEGIC REPORT

SUSTAINABLE DEVELOPMENT

SUSTAINABILITY STRATEGY