Nov. 12 (Bloomberg) -- X5 Retail Group NV, the Russian retailer controlled by billionaire Mikhail Fridman and his partners, surged the most in more than 17 months after boosting third-quarter profitability.
X5, Russia’s second-biggest retailer, rose 6.9 percent, the biggest advance since May 24, 2012, to $17.45 a depositary receipt 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.
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