:. Food Industry News

Categories: Corporate Results

Russian Budget Grocer Dixy Posts 15 pct Sales Growth

Source: Reuters
28/10/2009

Moscow, Oct 27 - Russian budget food retailer Dixy Group on Tuesday posted a 15 percent rouble revenue growth in the first nine months of 2009 as the recession sent consumers in search of lower prices.

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The company said in a statement that revenue was 39.6 billion roubles, which is $1.37 billion at the current rate and $1.22 billion at the average exchange rate for the nine-month period.

Revenue was up compared to 34.6 billion roubles for January-September 2008. However, in dollar terms, revenue fell 15 percent from $1.44 billion at the average exchange rate in the previous year, as the Russian currency had weakened against the dollar.

Dixy said it had successfully implemented measures to improve its logistics efficiency in the third quarter.

The company operated 509 shops as of Sept. 30 compared with 425 a year ago. It plans to open 100 new stores next year and will finance the 2010 investment programme from its own revenues, Vice President Fyodor Rybasov said last week.

Retailers focusing on the cheaper end of the market have outperformed in Russia as consumers tightened their belts in the face of the first recession in a decade.

Dixy, controlled by businessman Igor Kesayev through his Mercury holding company, said last month it expected to see a considerable improvement at the level of retail sales growth in the second half of 2009.



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