After three consecutive quarters of decline in net profit X5 Retail Group (“Pyaterochka”, “Perekrestok”, “Karusel”) in April—June this year increased by 20.5%, to 16.27 billion rubles year-on-year. On profitability could have a positive impact consumers switching to products with higher profitability and cost control in conjunction with high revenue growth.In the second quarter net profit of X5 Retail Group (“Pyaterochka”, “Perekrestok”, “Karusel”) increased by 20.5% to 16.27 billion RUB year-on-year, the company said (.pdf). This is the first increase in net profit X5 during this period, from the second quarter 2019, when the rate increased by 55.5%, to 13.5 billion roubles year-on-year. So, in the first quarter of 2020, the company net profit declined by 12.1%, to 8.17 billion rubles in the previous quarter — in 86,1%, to 865 million rubles in the third quarter of 2019 — by 72.3%, to 2.23 billion roubles year-on-year.X5 gross profit in the April-June 2020 increased by 13.9% to 124,72 RUB bn gross profit margin increased from 25% to 25.3%, EBITDA by 14.4%, up to 41,32 billion rubles year-on-year. The increase in gross profitability is associated with initiatives to reduce losses and lower share of promo, said X5. Total expenses in the second quarter (excluding depreciation and amortization) was 17.6 percent of revenue, versus 17.4% a year earlier. And the total revenue of X5 increased by 12.9% to 493,63 billion rubles due to the growth of comparable (LfL) sales by 4.3%, while also increasing trading area by 10.7%, to 7.51 million sq. m. the Positive impact of the pandemic has resulted in buyers switching to more profitable categories in the absence of a normally operating segment food service and the transition to consumption at home, follows from the statements. X5 improved lease terms hypermarket during the restrictions, allowing to neutralize the negative impact of costs associated with COVID-19. The overall impact of these costs on EBITDA in the second quarter is estimated at 1.78 billion rubles, which, among others, were spent on personal protective equipment and disinfection of premises.As noted X5 CEO Igor Shekhterman, quarterly results, especially profitability due to fundamental factors. According to him, these factors of gross profit to operating expenses, will have a lasting effect. In addition, added a top Manager, the profitability of the online platforms X5 in the second quarter exceeded the planned targets, and in may online the operation has achieved positive EBITDA.And high revenue growth, coupled with control over operating costs ensured the growth of EBITDA profitability, it said in their review. According to the head of Infoline-Analytics Mikhail Burmistrov, X5 introduces various services automation — self-checkouts, smart scales, etc., which reduce the company’s dependence on personnel. In addition, the system improvement impact forecasting system used in promotion, pricing, and so on, he enumerates.Nikita Sharenkov