REG-O'KEY Group S.A. O`KEY GROUP NET RETAIL REVENUE INCREASES BY 11.5%, DA! DISCOUNTERS REVENUE GROWTH ACCELERATES TO 68.5% IN Q2 2022
28/07/2022 08:00
============
O'KEY Group S.A. (OKEY)
O`KEY GROUP NET RETAIL REVENUE INCREASES BY 11.5%, DA! DISCOUNTERS REVENUE
GROWTH ACCELERATES TO 68.5% IN Q2 2022
28-Jul-2022 / 08:45 CET/CEST
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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Press release
28 July 2022
O`KEY GROUP NET RETAIL REVENUE INCREASES BY 11.5%,
DA! DISCOUNTERS REVENUE GROWTH ACCELERATES TO 68.5% IN Q2 2022
O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group” or the “Company”), one of
Russia’s leading food retailers, has announced its unaudited operating
results for the second quarter (Q2) and the first six months (H1) of 2022.
All materials published by the Group are available on its website
1 www.okeygroup.lu.
Q2 2022 operating highlights
• Group net retail revenue 2 1 rose by 11.5% YoY to RUB 49.6 bn,
driven mainly by discounters’ LFL performance and O’KEY’s online sales
growth and supported by discounter and hypermarket openings.
• O`KEY hypermarkets’ net retail revenue declined slightly to
RUB 35.4 bn in Q2 2022 vs RUB 36.0 bn in Q2 2021 mainly due to
geopolitical and macroeconomic turmoil that resulted in lower traffic
to shopping malls and changes in the product mix on the shelves
compared to the same period last year. However, that was largely
offset by the additional revenue of four newly opened O’KEY
hypermarkets in April 2022.
• O’KEY total online sales grew by 42.8% YoY to RUB 1.4 bn and accounted
for 4.0% of O`KEY’s net retail revenue in Q2 2022.
• DA! discounters accelerated their revenue growth in Q2 2022, both
year-on-year and quarter-on-quarter, again delivering one of the
fastest paces in the industry thanks to better brand recognition and a
well-balanced product mix based on private labels. DA! showed an
impressive 68.5% YoY net retail revenue growth to RUB 14.1 bn. This
was driven by a 37.1% LFL net retail revenue increase and a 33.7% YoY
growth in the chain’s selling space.
• DA! discounters’ share in the Group’s net retail revenue increased by
9.7 pps YoY to 28.5%.
• The Group expects that the discounters and online business will remain
the Company’s main growth drivers in the medium term.
H1 2022 operating highlights
• Group net retail revenue increased by 10.4% YoY to RUB 96.8 bn.
• O`KEY hypermarkets’ net retail revenue declined by 1.1% YoY to RUB
71.3 bn.
• O’KEY total online sales grew by 53.6% YoY to RUB 3.0 bn and reached
4.3% of O`KEY's net retail revenue.
• DA! discounters’ net retail revenue rose by 63.2% YoY to RUB 25.5 bn,
driven by a 35.2% LFL net retail revenue growth and the chain’s
expansion.
Key events after the reporting date
• In July 2022, Expert RA affirmed the credit rating of ”ruA-“ with a
Stable outlook for O`KEY LLC, the main operating subsidiary of O`KEY
Group S.A. The rating agency noted an improvement in the Group’s
revenue and EBITDA, with the discounters' EBITDA more than doubling in
the financial year 2021.
The full text of the announcement is available at
3 https://okeygroup.lu/press-center/press-releases/2022/1807/.
Operating review
Group Net Retail Revenue in Q2 and H1 2022
Net Retail Revenue, RUB mln Q2 2022 Q2 2021 YoY, % H1 2022 H1 2021 YoY, %
(excl. VAT)
O’KEY Group 49,562 44,437 11.5% 96,814 87,698 10.4%
O'KEY hypermarkets 35,414 36,041 (1.7%) 71,300 72,061 (1.1%)
DA! discounters 14,148 8,396 68.5% 25,514 15,637 63.2%
Group Net Retail Revenue Metrics for Q2 and H1 2022
Q2 2022 vs. Q2 2021 H1 2022 vs. H1 2021
Net Retail Revenue, % Net retail Average Net Average
revenue Traffic ticket retail Traffic ticket
revenue
O’KEY Group 11.5% 5.8% 5.4% 10.4% 4.8% 5.3%
O'KEY hypermarkets (1.7%) (10.7%) 10.0% (1.1%) (10.5%) 10.6%
DA! discounters 68.5% 43.2% 17.5% 63.2% 42.1% 14.9%
Group Like-for-like Net Retail Revenue Performance in Q2 and H1 2022
Q2 2022 vs. Q2 2021 H1 2022 vs. H1 2021
LFL Net Retail Revenue, Net Average Net Average
% retail Traffic ticket retail Traffic ticket
revenue revenue
O’KEY Group 4.0% (3.0%) 7.2% 4.8% (2.3%) 7.3%
O'KEY hypermarkets (3.8%) (11.5%) 8.8% (1.8%) (10.4%) 9.6%
DA! discounters 37.1% 15.9% 17.9% 35.2% 16.9% 15.4%
Note: Q2 2022 LFL metrics are calculated based on 74 O`KEY and 120 DA!
stores.
The Group’s net retail revenue rose by 11.5% YoY to RUB 49,562 mln, driven
mainly by DA! discounters and O’KEY online revenue growth and supported by
both the hypermarket and discounter chains’ expansions.
Net retail revenue of O`KEY hypermarkets decreased by 1.7% YoY to
RUB 35,414 mln in Q2 2022. The decline was due to a 3.8% decrease in
O’KEY’s LFL net retail revenue in the quarter, which was largely offset by
new store openings in April 2022.
During Q2 2022, we kept our promotional activity in hypermarkets limited
to secure sufficient stock levels, ensure full on-shelf availability, and
protect our margins in a highly inflationary and turbulent environment.
The average ticket growth was supported by limited promos and inflation
and offset partially by a smaller average basket and changes in the sales
mix on the shelves. However, we see that customers are adapting to the new
product offering and the environment, which has already had a positive
impact on our sales dynamics in July.
In Q2 2022, shopping malls in Moscow and St Petersburg and their
surroundings saw decline in customer footfall, both YoY and QoQ, due to
the geopolitical and global economic headwinds the market faced. We see
that, in order to support traffic in shopping malls, landlords are
actively reshaping their portfolios of tenants attracting new partners and
brands.
O’KEY’s total online sales, including our own and external delivery
services, rose by 42.8% YoY to RUB 1,427 mln in Q2 2022. The share of
total online sales in O`KEY’s net retail revenue grew by 1.2 pps YoY to
4.0% in Q2 2022 compared to 2.8% in Q2 2021. In Q2 2022, in order to
further optimise online order delivery time and costs, the company opened
six new pick-up points in its hypermarkets in Moscow and in St Petersburg.
As of the end of Q2 2022, the company had 19 zones in its hypermarkets to
cater for both online order pick-up and home delivery.
DA! discounters delivered a strong 68.5% YoY growth in net retail revenue,
which reached RUB 14,148 mln in Q2 2022 on the back of a 37.1% LFL revenue
growth and a 33.7% YoY increase in the chain’s selling space. The LFL
revenue growth was driven by rising brand recognition and customer loyalty
thanks to the chain’s active expansion, as well as its well-balanced
offering of products at the best possible prices with a special focus on
own brands. The share of own brands in the discounters’ net retail revenue
rose by 8.5 pps YoY to 58.7% in Q2 2022.
The discounters’ share in the Group’s net retail revenue rose by 9.7 pps
YoY to 28.5% in Q2 2022. The Company expects the DA! discounter chain to
be one of the key drivers of the Group’s top- and bottom-line growth.
Group Stores and Selling Space in H1 2022
Stores and Selling Space H1 2022 H1 2021 Net change Change, %
Number of stores, EoP 243 199 44 22.1%
O'KEY hypermarkets 79 77 2 2.6%
DA! discounters 164 122 42 34.4%
Total selling space (sq m), EoP 638,638 602,164 36,474 6.1%
O'KEY hypermarkets 527,922 519,369 8,553 1.6%
DA! discounters 110,716 82,795 27,921 33.7%
In Q1 2022, in the course of ongoing real estate portfolio revision and
optimisation, the Group closed 3 O`KEYs – two stores in Saratov and one in
Moscow.
In Q2 2022, the Group opened 4 hypermarkets in the Moscow Region to
replace the stores it had acquired from X5 Group and solidify O`KEY
presence in Central Russia.
In H1 2022, the Group also opened 12 discounters (net of closures) under
the DA! brand in Central Russia.
As of 30 June 2022, the Group operated 79 O`KEY hypermarkets and 164 DA!
discounters, with a total selling space of 638,638 sq m.
For further information, please contact:
For media
For investors
Alla Ivantsova
Natalya Belyavskaya
Head of Public Relations
Head of Investor Relations
+7 495 663 6677 ext. 496
+7 495 663 6677 ext. 266
alla.golovatenko@okmarket.ru
natalya.belyavskaya@okmarket.ru
5 www.okeygroup.lu
4 www.okeygroup.lu
ABOUT O`KEY GROUP
O`KEY Group S.A. (LSE, MOEX: OKEY) is one of the leading grocery retailers
in Russia, operating hypermarkets under the O`KEY brand and discounters
under the DA! brand.
As of 30 June 2022, the Group operated 243 stores across Russia (79
hypermarkets and 164 discounters) with the total selling space of 638,638
square meters. The Company opened its first hypermarket in St. Petersburg
in 2002 and has since demonstrated continuous growth. O`KEY was the first
Russian food retailer to launch e-commerce operations in St. Petersburg
and Moscow, offering a full range of hypermarket products for home
delivery. The Group has nine e-commerce pick-up points in Moscow and ten
e-commerce pick-up points in St. Petersburg. In 2015, the Group launched
the first discount chain in Russia under the DA! brand. The Group operates
five distribution centres in Russia – three in Moscow and two in St.
Petersburg. The Group employs more than 22,000 people.
In 2021, Group’s revenue amounted to RUB 187.1 billion, while EBITDA
reached RUB 15.5 billion.
The O`KEY Group shareholder structure is as follows: NISEMAX Co Ltd –
49.11%. GSU Ltd – 34.14%, free-float and other holders – 16.75%.
DISCLAIMER
These materials contain statements about future events and expectations
that are forward-looking statements. These statements typically contain
words such as ‘expects’ and ‘anticipates’ and words of similar import. Any
statement in these materials that is not a statement of historical fact is
a forward-looking statement that involves known and unknown risks,
uncertainties and other factors that may cause our actual results,
performance or achievements to be materially different from any future
results, performance or achievements expressed or implied by such
forward-looking statements.
None of the future projections, expectations, estimates or prospects in
this announcement should be taken as forecasts or promises nor should they
be taken as implying any indication, assurance or guarantee that the
assumptions on which such future projections, expectations, estimates or
prospects have been prepared are correct or exhaustive or, in the case of
the assumptions, fully stated in this announcement. We assume no
obligations to update the forward-looking statements contained herein to
reflect actual results, changes in assumptions or changes in factors
affecting these statements.
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6 1 Hereinafter, net retail revenue, LFL net retail revenue, and the
average ticket metrics are provided net of VAT.
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ISIN: US6708662019
Category Code: IR
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 177569
EQS News ID: 1407483
End of Announcement EQS News Service
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