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. Last Updated: 07/27/2016

X5 Posts Q4 Loss Of $2.3Bln

X5 Retail Group posted a $2.28 billion fourth-quarter loss as a plunging share price caused the company to write down the value of assets from the time of its creation in 2006, it said in a statement Tuesday.

The retailer took a $2.3 billion impairment charge, mostly related to the merger of supermarket chains Perekryostok and Pyatyorochka that formed the company. Earnings before interest, taxes, depreciation and amortization increased 19 percent to $225 million and sales jumped 41 percent to $2.4 billion.

X5 reassessed the value of assets after its shares slid 76 percent last year and the cost of capital increased. The share price drop was fueled by the global financial crisis, which caused Russia's economy to grow at the slowest pace in a decade.

"The write-down reflects the revaluation of assets by investors today." Yekaterina Krasnenko, an analyst at UBS in Moscow, said before the results. Earnings were also hurt by the ruble's decline against the dollar, she said.

The fourth-quarter loss was compared with a year-earlier profit of $89.5 million. The retailer repeated its March forecast for 2009 sales growth of more than 25 percent in ruble terms on a so-called pro-forma basis. Capital spending this year will be no more than 14 billion rubles ($419 million), the company also said.

EBITDA as a proportion of sales was unchanged in the quarter at 9.5 percent. EBITDA was reported on a so-called pro-forma basis that assumes that the Carousel chain of superstores acquired in June was part of the company in 2007 and 2008.

"We entered 2009 with a solid financial position, and during the year we expect this to strengthen further through cash flow management, cost control, disciplined investment and deleveraging," chief executive Lev Khasis said in the statement. "Our ultimate goal is long-term outperformance."