X5 Drops as Profit Misses Estimates on Management Bonuses
- Russian retailer falls as much as 6.8%, most in seven months
- Departing CEO DuCharme received 916 million rubles in pay
This article is for subscribers only.
X5 Retail Group NV’s shares fell the most since August after quarterly profit at Russia’s second-largest retailer came in below analysts’ estimates because of management bonus payouts.
The food-store operator’s global depositary receipts fell as much as 6.8 percent trading Monday before narrowing losses to 2.1 percent by 3:22 p.m. in London. Fourth-quarter earnings before interest, taxes, depreciation and amortization slid to 13.5 billion rubles ($196 million), or 5.8 percent of sales, the retailer said in a statement. That compared with Interfax estimates for a 7.3 percent margin.