X5 to determine dividend amount by late autumn

X5 plans to determine the size of its next dividend payment by late autumn, chief financial officer Nikolay Ivanov told RBC on October 14. Net cash flow will be the main consideration.

Ivanov confirmed the company's intention to pay dividends but did not specify an amount per share or a payment date. The calculation will take account of its financial policy, which caps the net debt-to-EBITDA ratio at 1.4.

As the economy slows, the retailer is postponing investments with longer payback periods and prioritising faster returns. However, Ivanov said its plan to open approximately two thousand stores this year remains unchanged. The current strategy cycle runs through 2028.

X5's first-half revenue rose by 10.5%. Ivanov said profitability margins remained broadly at the previous year's level despite slower food inflation and increasingly cautious consumers.

Investment will continue in neighbourhood stores, logistics, the Chizhik discount chain, online sales and prepared food. At Perekrestok, the emphasis is on improving existing stores and adding services rather than aggressively expanding the supermarket network.

Ivanov said the Okolo franchise encompasses more than seven thousand outlets. Pyaterochka has surpassed six hundred stores in Russia's Far East, where X5 is also investing in infrastructure to support further expansion.

Among its technology initiatives, Ivanov highlighted Dialog X5, which provides analytical services to suppliers. His view that X5 is undervalued on the stock market represents management's assessment rather than a guarantee of future share-price gains.