REG-O'KEY Group S.A. O`KEY GROUP NET RETAIL REVENUE RISES BY 10%, DA! DISCOUNTERS DELIVER 54.8% REVENUE GROWTH IN Q3 2022
28/10/2022 08:00
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O'KEY Group S.A. (OKEY)
O`KEY GROUP NET RETAIL REVENUE RISES BY 10%, DA! DISCOUNTERS DELIVER 54.8%
REVENUE GROWTH IN Q3 2022
28-Oct-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 October 2022
O`KEY GROUP NET RETAIL REVENUE RISES BY 10%,
DA! DISCOUNTERS DELIVER 54.8% REVENUE GROWTH IN Q3 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 third quarter (Q3) and the first nine months (9M) of 2022.
All materials published by the Group are available on its website
1 www.okeygroup.lu.
Q3 2022 operating highlights
• Group net retail revenue 1 rose by 10.0% YoY to RUB 47.8 bn, driven
mainly by discounters’ LFL performance and O`KEY’s online sales growth
and supported by discounter stores openings.
• O`KEY hypermarkets’ net retail revenue declined by 1.2% to RUB 34.4 bn
in Q3 2022, mainly due to a year-on-year drop in customer footfall in
shopping malls resulting from continued changes in the retail brands
portfolio. Nevertheless, the decline in LFL traffic was almost offset
by additional revenue from four new O`KEY stores opened in April 2022.
• DA! discounters again showed one of the fastest paces of growth, with
their net retail revenue adding 54.8% YoY to reach RUB 13.4 bn. The
increase was led by a 26.1% LFL net retail revenue growth and the
chain’s expansion.
1 Hereinafter, net retail revenue, LFL net retail revenue, and the
average ticket metrics are provided net of VAT.
9M 2022 operating highlights
• Group net retail revenue increased by 10.3% YoY to RUB 144.6 bn.
• O`KEY hypermarkets’ net retail revenue declined by 1.1% YoY to RUB
105.7 bn.
• O’KEY total online sales rose by 44.3% YoY to RUB 4.3 bn and accounted
for 4.1% of O`KEY's net retail revenue.
• DA! discounters’ net retail revenue grew by 60.2% YoY to RUB 38.9 bn,
driven by a 32.0% LFL net retail revenue growth and the chain’s
expansion.
• The Group opened 20 DA! discounters (net of closures) in 9M 2022.
• DA! discounters’ share in the Group’s net retail revenue increased by
8.4 pps YoY to 26.9%.
• The Group expects to be receiving half of its revenue from discounters
in the medium term.
• In 2022, the Group plans to open up to 45 new DA! discounters and have
nine O`KEY hypermarkets in its portfolio in an updated concept.
Operating review
Group Net Retail Revenue in Q3 and 9M 2022
Net Retail Revenue, RUB Q3 2022 Q3 2021 YoY, % 9M 2022 9M 2021 YoY, %
mln (excl. VAT)
O’KEY Group 47,797 43,451 10.0% 144,612 131,149 10.3%
O'KEY hypermarkets 34,369 34,777 (1.2%) 105,669 106,839 (1.1%)
DA! discounters 13,428 8,673 54.8% 38,942 24,310 60.2%
Group Net Retail Revenue Metrics for Q3 and 9M 2022
Q3 2022 vs. Q3 2021 9M 2022 vs. 9M 2021
Net Retail Net retail Average Net Average
Revenue, % revenue Traffic ticket retail Traffic ticket
revenue
O’KEY Group 10.0% 6.2% 3.6% 10.3% 5.3% 4.8%
O'KEY (1.2%) (8.1%) 7.5% (1.1%) (9.7%) 9.6%
hypermarkets
DA! discounters 54.8% 36.0% 13.8% 60.2% 39.9% 14.5%
Group Like-for-like Net Retail Revenue Performance in Q3 and 9M 2022
Q3 2022 vs. Q3 2021 9M 2022 vs. 9M 2021
LFL Net Retail Net retail Average Net Average
Revenue, % revenue Traffic ticket retail Traffic ticket
revenue
O’KEY Group 2.5% (2.8%) 5.5% 4.1% (2.5%) 6.7%
O'KEY hypermarkets (3.3%) (9.1%) 6.4% (2.3%) (10.0%) 8.6%
DA! discounters 26.1% 10.4% 14.2% 32.0% 14.7% 15.0%
Note: Q3 2022 LFL metrics are calculated based on 74 O`KEY and 126 DA!
stores.
The Group’s net retail revenue rose by 10.0% YoY to RUB 47,797 mln, led by
discounters and online revenue growth and supported by expansion of both
store chains.
Net retail revenue of O`KEY hypermarkets declined by 1.2% YoY to
RUB 34,369 mln in Q3 2022, due to a 3.3% decrease in O`KEY’s LFL net
retail revenue resulting from a temporary footfall decrease in shopping
malls amid changes in the tenant mix.
In Q3 2022, shopping malls in the Moscow and St. Petersburg regions
continued to face a YoY decline in customer traffic due to geopolitical
and macroeconomic turbulence. In order to support traffic in these
locations, the landlords keep reshaping their tenant portfolios,
attracting new partners and brands.
In August 2022, O`KEY reopened after renovation its hypermarket in Sochi,
upgraded in line with the latest trends in the retail industry and global
best practices. In the upgraded hypermarket, more space was allocated to
the fresh and ultra-fresh categories, with their share in the overall
product range increased to 20%, while the store’s total selling space was
optimised.
O`KEY’s total online sales, including via our own and external delivery
services, rose by 26.2% YoY to RUB 1,286 mln in Q3 2022. The share of
total online sales in O`KEY’s net retail revenue grew by 0.8 pps YoY to
3.7% in Q3 2022.
In Q3 2022, DA! discounters’ net retail revenue expanded by 54.8% YoY to
RUB 13,428 mln, led by a 26.1% LFL revenue growth and 18.2% YoY increase
in the chain’s selling space over the quarter. The LFL revenue growth was
driven by both customer traffic and average ticket performance thanks to
rising DA! brand awareness, as well as the chain’s high-quality product
assortment, with a special focus on own brands, at the best possible
prices. The share of these products in the discounters’ net retail revenue
amounted to approx. 50% in Q3 2022.
The discounters’ share in the Group’s net retail revenue rose by 8.1 pps
YoY to 28.1% in Q3 2022. The Company expects the DA! discounter chain to
remain a key driver of the Group’s top- and bottom-line growth.
Group Stores and Selling Space in 9M 2022
Stores and Selling Space 9M 2022 9M 2021 Net change Change, %
Number of stores, EoP 251 206 45 21.8%
O'KEY hypermarkets 79 77 2 2.6%
DA! discounters 172 129 43 33.3%
Total selling space (sq m), EoP 642,015 604,956 37,059 6.1%
O'KEY hypermarkets 525,829 517,566 8,263 1.6%
DA! discounters 116,186 87,390 28,796 33.0%
In 9M 2022, as part of an ongoing real estate portfolio revision and
optimisation, the Group closed three O`KEY stores and opened four
hypermarkets in Central Russia. Also, the selling space of a hypermarket
in Sochi was optimised in the course of its renovation and reduced by
2,093 sq m to 4,607 sq m.
In 9M 2022, the Group also opened 20 discounters (net of closures) under
the DA! brand.
As of 30 September 2022, the Group operated 79 O`KEY hypermarkets and
172 DA! discounters with a total selling space of 642,015 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
3 www.okeygroup.lu
2 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 Septmeber 2022, the Group operated 251 stores across Russia (79
hypermarkets and 172 discounters) with the total selling space of 642,015
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
fifteen 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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ISIN: US6708662019
Category Code: QRT
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.: 197337
EQS News ID: 1473877
End of Announcement EQS News Service
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