X5, Russia’s second-biggest retailer, rose as much as 7.4 percent in U.K. trading, the biggest intraday advance since September 2012, and was up 6.9 percent at $17.45 a depositary receipt as of 12:50 p.m. in London.
Earnings before interest, taxes, depreciation and amortization rose 27 percent from a year earlier to $280 million, X5 said today in a statement. The Ebitda margin expanded to 7.4 percent of sales from 6.1 percent a year earlier.
Margins were “driven by improved conditions with suppliers,” Anna Kochkina, an analyst at BCS Financial Group, said by phone. “Investors who were short X5, had to buy additional shares to cover their positions.”
The turnaround may not be sustainable, Kochkina said. X5 has to prove it can maintain profitability and stop a decline in customer numbers in its stores, she said.
To contact the reporter on this story: Ilya Khrennikov in Moscow at email@example.com