X5 Group (Пятерочка). Годовой отчет за 2021 год - часть 11

Focus on development 
of own sales channel 
and positive brand 
recognition 

Expand operations to 
increase the number 
of dark kitchens from 
50 to 60–65 in 2022

Identify and test 
additional brands that 
can leverage X5’s 
purchasing power

Launch offering in 
Murmansk; other large 
cities being considered

Be on track to reach 
positive EBITDA within 
three years

After becoming part of X5 Group in March 2021, Mnogo 
Lososya successfully developed its dark kitchen business 
through organic growth, including expanding into the St 
Petersburg market in June 2021. The business managed to 
exceed its 2021 revenue goal by around 20% thanks to the 
implementation in full of its development programme and 
strong demand from customers for its ready-to-eat hot 
meal offering.  

In addition to geographic expansion, Mnogo Lososya also 
launched a project with Perekrestok to develop cafe points 
in selected Moscow supermarkets, which will be rolled out 
to other major cities during 2022. 

While Mnogo Lososya work with a number of delivery 
aggregators, the company’s app is also popular among 
customers, and currently generates around 30% of revenue 
for the dark kitchen business.

Key highlights of 2021

Plans for 2022 and beyond

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DIGITAL BUSINESSES

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MNOGO LOSOSYA

82

STRATEGIC REPORT

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DIGITAL BUSINESSES

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X5 BANK

83

X5 Bank today

X5 Bank

X5 Bank’s MVP was launched in November 2021,
offering users plastic and digital cards that combine 
the functionality of Pyaterochka and Perekrestok 
loyalty cards with banking services such as 
payments, money transfers and rouble-denominated 
cashback, among others, in X5's mobile apps.

X5 Bank is a joint project between X5 and Alfa Bank, 
Russia’s largest non-state bank. In line with our 
strategic goal of being present at every stage of the 
customer journey, X5 Bank cards support customer 
acquisition, increased retention and higher revenue by 
raising shopping frequency. 

X5 Bank was launched in November 2021 and is still at 
the MVP stage.  

Customers can now order plastic cards or use digital cards 
issued via the Perekrestok and Pyaterochka mobile apps.  

In the first phase X5 Bank offers digital cards that combine the 
functionality of Pyaterochka and Perekrestok loyalty cards 
with bank services – payments, money transfers, cashback, 
etc.   

As of 31 December 2021, X5 Bank digital cards were available 
to users of the Perekrestok and Pyaterochka mobile apps in 13 
cities. 

Plans for 2022

X5 Bank's offering of various card types will be 
expanded to more cities where X5's formats operate 
and will be available digitally throughout Russia

Expand the range of financial services offered via 
X5 Bank to include lending products: credit cards, 
instalment purchases, overdrafts and cash loans

We plan to launch a new product line integrated into 
instalment programmes and providing maximum 
privileges at our stores

Pyaterochka card

Perekrestok card

STRATEGIC REPORT

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FINANCIAL REVIEW

84

Financial review

Our net debt/EBITDA ratio (pre-IFRS 16) remained 
unchanged at the comfortable level of 1.67x, which 
is below our upper target limit of 2.0x. Despite the 
reduction in the weighted average effective interest 
rate on X5’s total debt from 6.78% for 2020 to 6.56% 
for 2021, the rise in net finance costs under IFRS 16 of 
1.0% year-on-year was due to new and prolonged 
contracts at higher rates.  The share of borrowings with 
fixed interest rate accounted for 84% as the end of 
December 2021. 

The X5 Group Supervisory Board has made 
a recommendation not to pay a final dividend for 2021. 
The total dividend for the year will amount to RUB 
20 billion, or RUB 73.65 per GDR, which represents 
46.8% of X5 Group's 2021 net profit. 

Looking ahead, there is a great deal of uncertainty 
in economic environment. I am confident that 
X5 Group’s strong balance sheet, robust business 
processes and talented team will help us to navigate 
the challenges we will undoubtedly face in the year 
ahead.

X5 Group’s performance in 2021 well demonstrated 
the resilience, flexibility and sustainability of our 
business. We delivered revenue growth of 11.5% to RUB 
2,205 billion with solid pre-IFRS 16 EBITDA margin of 
7.3%, in line with our targets.  

Top-line growth was driven by expansion in selling 
space, which delivered a 6.1% increase, and LFL 
performance, which contributed 5.1%. X5 maintained its 
top spot in Russian food retail and increased its market 
share to 12.7% in 2021, despite fierce competition from 
established players, the emergence of new and niche 
formats, as well as the aggressive expansion of online 
ecosystems into the food market. We were able to 
do this thanks to our continued focus on adapting the 
CVPs of our existing formats, successful steps to 
enable X5 to engage with consumers at every stage 
of the customer journey and the launch of our new 
hard discounter retail chain — Chizhik.  

At the same time, our focus on the digital 
transformation of our business and efficiency 
measures enabled X5 Group to successfully deliver 
on profitability targets. Despite significant inflationary 
pressures, we were able to contain adjusted SG&A 
expenses under IFRS 16 as a percentage of revenue to 
14.2%, representing year-on-year growth of 71 b.p. This 
increase was mainly due to higher staff costs, third-
party services and other expenses. 

Vsevolod Starukhin

CHIEF FINANCIAL OFFICER

STRATEGIC REPORT

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FINANCIAL REVIEW

85

Key highlights

Capital expenditure structure (pre-IFRS 16), 

%

44%

5%

8%

17%

12%

14%

2020

89.9

RUB

BLN

34%

10%

20%

11%

15%

2021

97.9

RUB

BLN

10%

New store openings

Refurbishments

Maintenance

Logistics

IT

Other, including new digital businesses

Segments

GROSS PROFIT MARGIN

NET DEBT/EBITDA

25.5

%

45 b.p. year-on-year 
increase

IFRS 16

3.16

×

IFRS 16

1.67

×

pre-IFRS 16

25.1

%

47 b.p. year-on-year 
increase

pre-IFRS 16

REVENUE

CAPITAL EXPENDITURE

2,205

RUB

BLN

11.5% year-on-year 
increase

97.9

RUB

BLN

8.9% year-on-year 
increase

ADJUSTED EBITDA MARGIN

DIVIDENDS

12.3

%

7 b.p. year-on-year 
decrease

IFRS 16

7.4

%

7 b.p. year-on-year 
increase

pre-IFRS 16

20

RUB

BLN

46.8% of consolidated 
IFRS 16 net profit

73.65

RUB 

PER GDR

Financial 

review

The financial and operational information 
contained in this financial review comprises 
information about X5 Group N.V. and 
its consolidated subsidiaries (hereinafter jointly 
referred to as “we”, “X5” or the “Company”). 
The following is a review of our financial 
condition and results of operations 
as of 31 December 2021 and for the years ended 
31 December 2021 and 31 December 2020. 
The consolidated financial statements and 
related notes thereto are available on pages 
177-264 of this document and were prepared 
in accordance with International Financial 
Reporting Standards (IFRS), as adopted 
by the European Union.

STRATEGIC REPORT

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FINANCIAL REVIEW

86

Profit and loss statement: highlights

Results of operations for the year ended 
31 December 2021 compared with the year 
ended 31 December 2020 

The following table and discussion provide a summary 
of our consolidated results of operations for the years 
ended 31 December 2021 and 31 December 2020. 

RUSSIAN ROUBLES (RUB), 

MILLIONS¹

2021

2020

% CHANGE, 

Y-O-Y

2021

2020

% CHANGE, 

Y-O-Y

Revenue

2,204,819

1,978,026

11.5

2,204,819

1,978,026

11.5

incl. net retail sales²

2,194,477

1,973,346

11.2

2,194,477

1,973,346

11.2

Pyaterochka

1,793,676

1,597,174

12.3

1,793,676

1,597,174

12.3

Perekrestok (including Vprok.ru Perekrestok)

365,119

320,459

13.9

365,119

320,459

13.9

Karusel

31,742

55,662

(43.0)

31,742

55,662

(43.0)

Chizhik

2,940

50

59×

2,940

50

59×

  Mnogo Lososya

  

999

–

n/a

999

–

n/a

Gross profit

561,317

494,620

13.5

553,363

487,223

13.6

Gross profit margin, 

%

25.5

25.0

45 b.p.

25.1

24.6

47 b.p.

Adj. SG&A³

(314,017)

(267,605)

17.3

(410,205)

(356,838)

15.0

Adj. SG&A, 

% of revenue

14.2

13.5

71 b.p.

18.6

18.0

56 b.p.

Adj. EBITDA

271,023

244,501

10.8

164,197

146,016

12.5

Adj. EBITDA margin, 

%

12.3

12.4

(7) b.p.

7.4

7.4

7 b.p.

EBITDA

267,850

243,622

9.9

161,024

145,137

10.9

EBITDA margin, 

%

12.1

12.3

(17) b.p.

7.3

7.3

(3) b.p.

Operating profit

117,572

105,717

11.2

84,359

76,785

9.9

Operating profit margin, 

%

5.3

5.3

(1) b.p.

3.8

3.9

(6) b.p.

Adj. net profit⁴

44,613

35,828

24.5

50,323

46,863

7.4

Adj. net profit margin, 

%

2.0

1.8

21 b.p.

2.3

2.4

(9) b.p.

Net profit

42,738

28,344

50.8

48,513

39,180

23.8

Net profit margin, 

%

1.9

1.4

51 b.p.

2.2

2.0

22 b.p.

PRE-IFRS 16

IFRS 16

1 Please note that in this and other tables and text, immaterial deviations 

in the calculation of percentage changes, subtotals and totals 
are explained by rounding. 

2 Net of VAT and revenue from wholesale operations and revenue 

from franchise services and other services. 

3 Adjusted SG&A is SG&A before depreciation, amortisation 

and impairment costs as well as costs related to the LTI programme, 
share-based payments and other one-off remuneration payments 
and the one-off impact of the Karusel transformation. For more 
information on alternative performance measures, see pages 93-97.  

4 Adjusted net profit is net profit before the effect of the Karusel 

transformation and tax accruals related to previous periods, including 
X5’s reorganisation. 

STRATEGIC REPORT

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FINANCIAL REVIEW

87

Sales of offline and digital businesses

RUB MLN

2021

2020

CHANGE

Y-O-Y, 

%

Pyaterochka

1,779,567

1,592,576

11.7

Perekrestok

337,391

306,218

10.2

Karusel

31,723

55,662

(43.0)

Chizhik

2,940

50

59×

Offline net sales

2,151,621

1,954,506

10.1

Vprok.ru Perekrestok 

18,651

13,183

41.5

Express delivery 
(incl. Okolo)

25,678

6,112

4×

5Post (e-comm last mile)

2,615

683

4×

Mnogo Lososya

999

–

n/a

Digital businesses’ 
net sales

47,943

19,978

140.0

Total net sales

2,199,564

1,974,484

11.4

Summary of operating results

2021 net retail sales 
and sales drivers,

y-o-y % change

Average ticket¹

Number of 

customers¹

Net retail sales¹

Pyaterochka

4.0

7.9

12.3

Perekrestok

0.2

13.2

13.4

Karusel

7.2

(46.6)

(43.0)

Chizhik

24.7

48×

59×

X5 Group

2.9

7.9

11.2

Selling space end of period, 

square metres

31-Dec-21

31-Dec-20

% change, y-o-y

Pyaterochka

7,048,488

6,541,622

7.7

Perekrestok

1,098,905

1,013,860

8.4

Karusel

128,063

222,119

(42.3)

Chizhik

20,327

980

21×

Mnogo Lososya

4,992

–

n/a

X5 Group

8,409,757

7,840,055

7.3

2021 LFL  results,

% growth y-o-y

²

Sales

Traffic

Basket

Pyaterochka

5.6

1.4

4.1

Perekrestok

3.8

3.2

0.5

Karusel

(8.4)

(9.3)

1.0

X5 Group

5.1

1.5

3.5

Revenue and net retail sales

In 2021, X5’s revenue increased by 11.5% year-on-year to RUB 2,205 billion. 
Net retail sales for 2021 grew by 11.2% year-on-year, driven by a 5.1% 
increase in like-for-like (LFL) sales and a 6.1% sales growth contribution 
from a 7.3% rise in selling space.  

The Company’s proximity store format, Pyaterochka, was the main growth 
driver in 2021: Pyaterochka’s net retail sales rose by 12.3% year-on-year, 
driven by a 5.6% increase in LFL sales and a 6.7% contribution to sales 
growth from a 7.7% expansion in selling space. LFL traffic increased 
by 1.4% year-on-year, while the LFL basket grew by 4.1% year-on-year.  

Perekrestok’s net sales, excluding the online hypermarket Vprok.ru 
Perekrestok, increased by 13.4% in 2021, driven mostly by selling space 
expansion and a recovery at stores located in shopping malls after 
the lockdown restrictions were lifted. LFL sales growth was 3.8%.  

Karusel experienced a 43.0% decline in net retail sales, driven 
by downsizing as part of the format’s transformation programme.   

In 2021, Chizhik’s net sales rose 59   year-on-year. The number of stores 
reached 72 as of 31 December 2021. 

Gross profit

The Company’s gross profit margin under IFRS 16 in 2021 increased 
by 45 b.p. year-on-year to 25.5% (increased by 47 b.p. to 25.1% under pre-
IFRS 16), driven predominantly by an improvement in commercial margin 
on the back of accelerating shelf inflation, reduced price investments 
in Q4 2021 and changes in category mix as well as a reduction in shrinkage 
as a result of operating improvements.

1 Excluding Vprok.ru Perekrestok 

2 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.

×

STRATEGIC REPORT

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FINANCIAL REVIEW

88

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

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

RUB MLN

2021

2020

% CHANGE, 

Y-O-Y

2021

2020

% CHANGE, 

Y-O-Y

Staff costs

(185,572)

(159,261)

16.5

(185,572)

(159,261)

16.5

% of revenue

8.4

8.1

37 b.p.

8.4

8.1

37 b.p.

incl. LTI and share-based payments

(3,011)

(345)

772.8

(3,011)

(345)

772.8

staff costs excl. LTI % of revenue

8.3

8.0

25 b.p.

8.3

8.0

25 b.p.

Lease expenses

(14,452)

(11,291)

28.0

(105,451)

(96,573)

9.2

% of revenue

0.7

0.6

8 b.p.

4.8

4.9

(10) b.p.

Utilities

(45,539)

(39,819)

14.4

(45,539)

(39,819)

14.4

% of revenue

2.1

2.0

5 b.p.

2.1

2.0

5 b.p.

Other store costs

(22,568)

(21,625)

4.4

(23,418)

(22,621)

3.5

% of revenue

1.0

1.1

(7) b.p.

1.1

1.1

(8) b.p.

Third-party services

(22,016)

(16,257)

35.4

(21,718)

(15,894)

36.6

% of revenue

1.0

0.8

18 b.p.

1.0

0.8

18 b.p.

Other expenses

(26,881)

(19,697)

36.5

(31,518)

(23,015)

36.9

% of revenue

1.2

1.0

22 b.p.

1.4

1.2

27 b.p.

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

(317,028)

(267,950)

18.3

(413,216)

(357,183)

15.7

% of revenue

14.4

13.5

83 b.p.

18.7

18.1

68 b.p.

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

(314,017)

(267,605)

17.3

(410,205)

(356,838)

15.0

% of revenue

14.2

13.5

71 b.p.

18.6

18.0

56 b.p.

PRE-IFRS 16

IFRS 16

In 2021, adjusted SG&A expenses under IFRS 16 
as a percentage of revenue increased year-on-year 
by 71 b.p. to 14.2% (increased by 56 b.p. to 18.6% pre-
IFRS 16), mainly due to increased staff costs, third-
party services and other expenses. 

Staff costs (excluding LTI and share-based payments) 
in 2021, as a percentage of revenue, increased year-
on-year by 25 b.p. to 8.3% due to the shortage 
of labour force driven by the COVID-19 pandemic.  

Lease expenses under IFRS 16 as a percentage 
of revenue in 2021 increased year-on-year by 8 b.p. 
to 0.7% (decreased by 10 b.p. to 4.8% pre-IFRS 16), 
mainly due to the higher number of stores with 
revenue-linked lease payments accounted for as part 
of operating activities under IFRS 16 and higher sales 
at those stores compared with the X5 average. 
The decrease pre-IFRS 16 was mainly due to the 
positive operating leverage effect and measures taken 
to reduce lease expenses; the decrease was partially 
balanced by the growing share of leased space in X5’s 
total real estate portfolio, which accounted for 82% 
as of 31 December 2021, compared with 80% 
as of 31 December 2020. 

In 2021, other store costs under IFRS 16 
as a percentage of revenue decreased year-on-year 
by 7 b.p. to 1.0% (decreased by 8 b.p. to 1.1% pre-IFRS 
16), driven by lower maintenance expenses.  

In 2021, third-party services under IFRS 16 
as a percentage of revenue increased year-on-year 
by 18 b.p. to 1.0%, driven by investments in new 
services – subscription and a media platform.  

Other expenses (excluding the impact of the Karusel 
transformation) under IFRS 16 as a percentage of 
revenue increased year-on-year by 22 b.p., totalling 
1.2% (increased by 27 b.p. totalling 1.4% pre-IFRS 16) 
due to a growing share of courier service costs for 
express delivery, reflecting a 4x year-on-year increase 
in the number of orders and higher acquiring costs 
driven by the increased penetration of card payments. 

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FINANCIAL REVIEW

89

Long-term incentive (LTI) programme

Accruals were made in the consolidated financial 
statements for the year ended 31 December 2021 
related to liabilities for deferred conditional payouts 
related to the LTI programme for 2018–2020, the new 
LTI programme for 2021–2023 and the new LTI 
programme for new businesses (5Post, Chizhik and 
Okolo). Accruals for the deferred conditional payout 
related to the 2018–2020 LTI programme will continue 
until Q2 2022. In total, RUB 3,011 million was accrued 
in 2021 for the LTI programme.  

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. 

Targets under the LTI programme are structured 
to align the long-term interests of shareholders and 
management, with a focus on maintaining leadership 
in terms of revenue, maintaining leadership in terms 
of enterprise value multiple relative to peers and 
achieving ESG targets. Additionally, the LTI programme 
includes triggers relating to the EBITDA margin
pre-IFRS 16 to ensure that profitability is not sacrificed 
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. 

EBITDA and adjusted EBITDA

RUB MLN

2021

2020

% CHANGE, 

Y-O-Y

2021

2020

% CHANGE, 

Y-O-Y

Gross profit

561,317

494,620

13.5

553,363

487,223

13.6

Gross profit margin, %

25.5

25.0

45 b.p.

25.1

24.6

47 b.p.

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

(314,017)

(267,605)

17.3

(410,205)

(356,838)

15.0

% of revenue

14.2

13.5

71 b.p.

18.6

18.0

56 b.p.

Net impairment losses on financial assets

(154)

(251)

(38.6)

(154)

(251)

(38.6)

% of revenue

0.0

0.0

(1) b.p.

0.0

0.0

(1) b.p.

Lease/sublease and other income

23,877

17,737

34.6

21,193

15,882

33.4

% of revenue

1.1

0.9

19 b.p.

1.0

0.8

16 b.p.

Adj. EBITDA

271,023

244,501

10.8

164,197

146,016

12.5

Adj. EBITDA margin,

 %

12.3

12.4

(7) b.p.

7.4

7.4

7 b.p.

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

(3,011)

(345)

772.8

(3,011)

(345)

772.8

% of revenue

(0.1)

(0.0)

(12) b.p.

(0.1)

(0.0)

(12) b.p.

Effect of Karusel transformation

(162)

(534)

(69.6)

(162)

(534)

(69.9)

% of revenue

(0.0)

(0.0)

2 b.p.

(0.0)

(0.0)

2 b.p.

EBITDA

267,850

243,622

9.9

161,024

145,137

10.9

EBITDA margin, %

12.1

12.3

(17) b.p.

7.3

7.3

(3) b.p.

IFRS 16

PRE-IFRS 16

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

RUB MLN

2021

2020

2019

2018

2017

2015

2016

LTI 2015-2017

–  

(541)

327

1,552

2,875

3,053

3,607

LTI 2018-2020

1,055 

830

2,444

619

– 

– 

– 

LTI 2021-2023

1,350 

– 

– 

–

– 

– 

– 

New businesses

515 

–

– 

–

– 

– 

– 

Total LTI

2,920 

289

2,771

2,171

2,875

3,053

3,607