REG-O'KEY Group S.A. O'KEY GROUP NET RETAIL REVENUE RISES BY 9.3%, DA! DISCOUNTERS DELIVER 57.6% REVENUE GROWTH IN Q1 2022
28/04/2022 08:00
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O'KEY Group S.A. (OKEY)
O'KEY GROUP NET RETAIL REVENUE RISES BY 9.3%, DA! DISCOUNTERS DELIVER
57.6% REVENUE GROWTH IN Q1 2022
28-Apr-2022 / 08:45 CET/CEST
Dissemination of a Regulatory Announcement that contains inside
information according to REGULATION (EU) No 596/2014 (MAR), transmitted by
EQS Group.
The issuer is solely responsible for the content of this announcement.
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Press release
28 April 2022
O'KEY GROUP NET RETAIL REVENUE RISES BY 9.3%,
DA! DISCOUNTERS DELIVER 57.6% REVENUE GROWTH IN Q1 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 first quarter (Q1) of 2022.
All materials published by the Group are available on its website
1 www.okeygroup.lu.
Q1 2022 operating highlights
• Group net retail revenue 1 increased by 9.3% YoY to RUB 47.3 bn in
Q1 2022, driven by both hypermarkets and discounters LFL growth and
supported by online sales and the discounter chain expansion.
• O'KEY hypermarkets' net retail revenue stood almost flat YoY at
RUB 35.9 bn in Q1 2022 vs RUB 36.0 bn in Q1 2021, primarily due to a
selling space reduction. In Q1 2022, in the course of ongoing store
portfolio revision and optimisation, the Group closed two O'KEY stores
in Saratov and one supermarket in Moscow.
• DA! discounters continued to demonstrate one of the highest growth
rates in the sector and delivered an impressive 57.6% YoY net retail
revenue growth to RUB 11.4 bn in Q1 2022. This was driven by a 33.0%
LFL net retail revenue increase and a 32.3% YoY expansion of selling
space.
• DA! discounters' share in the Group's revenue rose by 7.4 pp YoY to
24.1% in Q1 2022.
• Total online sales grew by 64.5% YoY to RUB 1.6 bn and reached 4.5% of
O'KEY's net retail revenue in Q1 2022.
• The Group expects that the discounters and online business will
continue to spearhead growth in the medium term.
1 Hereinafter, net retail revenue, LFL net retail revenue, and the
average ticket metrics are provided net of VAT.
Key events after the reporting date
• Current geopolitical situation and market volatility, attributable to
the global economic environment, currency and stock markets, as well
as substantial currency exchange fluctuations are presumed to affect
companies across all the sectors of the economy. We are thoroughly
analysing the possible influence of the evolving macroeconomic
conditions and changes in the retail market on the O'KEY Group's
financial and operational results in mid-term and beyond.
For years, the Group has been cooperating with local producers: around
80% of the Company's purchases are accounted for by products made by
Russian producers. This is specifically relevant in terms of evolving
the O'KEY's and DA!'s own brands. The Company is also involved in
developing programmes to support local producers and therefore takes
part in regional and national quality initiatives, especially, in the
Group's core Northwest and Central regions of Russia.
Since March 2022, the Group has been redirecting logistics flows where
necessary to provide uninterrupted supply and meet the demand of our
customers. The Company makes best efforts to optimise logistic costs,
provide effective inventory management and assure full on-shelf
availability for its hypermarket and discounter chains, and online.
Despite the current situation, we strive to run our business smoothly
offering our customers the best value proposition and impeccable
service. We continue to implement our strategy and accomplish the
goals. Our well-balanced business model and established corporate
governance system offer a significant hedge against market volatility
and enable us to serve the interests of all our stakeholders.
• In April 2022, the Group opened four new hypermarkets under the O'KEY
brand in the Moscow Region to replace stores it had acquired from
X5 Group.
The full text of the announcement is available at
2 https://okeygroup.lu/press-center/press-releases/2022/1800/.
• In April 2022, the Company opened four new DA! discounters in the
Central Federal District of Russia.
Operating review
Group Net Retail Revenue in Q1 2022
Net Retail Revenue, RUB mln (excl. VAT) Q1 2022 Q1 2021 YoY, %
O'KEY Group 47,252 43,232 9.3%
O'KEY hypermarkets 35,886 36,019 (0.4%)
DA! discounters 11,366 7,214 57.6%
Group Net Retail Revenue Metrics for Q1 2022
Net Retail Revenue, % Q1 2022 vs Q1 2021
Net retail revenue Traffic Average ticket
O'KEY Group 9.3% 3.7% 5.4%
O'KEY hypermarkets (0.4%) (10.4%) 11.2%
DA! discounters 57.6% 40.7% 11.7%
Group LFL Net Retail Revenue Performance in Q1 2022
Q1 2022 vs Q1 2021
LFL Net Retail Revenue, % LFL net retail LFL traffic LFL average
revenue ticket
O'KEY Group 5.6% (1.7%) 7.4%
O'KEY hypermarkets 0.1% (9.3%) 10.4%
DA! discounters 33.0% 18.2% 12.6%
Note: Q1 2022 LFL metrics are calculated based on 74 O'KEY and 117 DA!
stores.
The Group's net retail revenue grew by 9.3% YoY to RUB 47,252 mln, led
mainly by a 5.6% LFL revenue growth and supported by the discounters'
expansion, as well as strong performance of the online business in
Q1 2022.
Net retail revenue of O'KEY hypermarkets declined slightly by 0.4% YoY to
RUB 35,886 mln in Q1 2022. That was mainly due to a closure of three O'KEY
stores in Q1 2022.
O'KEY hypermarkets LFL net retail revenue stood almost flat showing a 0.1%
YoY growth.
During January and February 2022, we saw relatively soft customer traffic
in shopping malls on the back of pandemic-related restrictions. In March
2022, in view of unstable geopolitical and economic environment, we
substantially limited promotional activity in hypermarkets to secure
sufficient stock levels and ensure full on-shelf availability. The average
ticket growth was supported by number of items bought and less promos in
O'KEY in March. However, that was offset partially by the sales mix, as
customers tended to stock-pile primarily basic goods like sugar, cereals,
canned and non-food products.
Total online sales, including our own delivery and third-party delivery
services, increased by 64.5% YoY to RUB 1,619 mln in Q1 2022. The share of
total online sales in O'KEY's net retail revenue grew by 1.8 pp YoY and
reach 4.5% in Q1 2022 compared to 2.7% in Q1 2021.
DA! discounters delivered a 57.6% YoY increase in net retail revenue to
RUB 11,366 mln in Q1 2022, driven by a 33.0% LFL revenue growth and a
32.3% YoY selling space expansion. The LFL revenue growth was led by
stronger brand recognition and loyalty among the customers, and supported
by the removal of pandemic-related restrictions, as well as peak demand in
March, especially, for dry, canned food, and non-food products.
The discounters' share in the Group's revenue rose by 7.4 pp YoY and
reached 24.1% in Q1 2022. The Company expects DA! to remain one of the key
growth drivers for the Group's top- and bottom-line.
Group Stores and Selling Space in Q1 2022
Stores and Selling Space Q1 2022 Q1 2021 Net change Change, %
Number of stores, EoP 232 195 37 19.0%
O'KEY hypermarkets 75 77 (2) (2.6%)
DA! discounters 157 118 39 33.1%
Total selling space (sq m), EoP 620,699 599,536 21,163 3.5%
O'KEY hypermarkets 514,625 519,369 (4,744) (0.9%)
DA! discounters 106,074 80,167 25,907 32.3%
In Q1 2022, in the course of ongoing real estate portfolio revision and
optimisation, the Group closed three O'KEY stores - two in Saratov and one
supermarket in Moscow. The Group opened five new DA! discounters in
Q1 2022.
As of 31 March 2022, the Group operated 75 O'KEY hypermarkets and 157 DA!
discounters, with a total selling space of 620,699 sq m.
In April 2022, the Group launched four hypermarkets in the Moscow Region
replacing the stores it had acquired from X5 Group and solidified O'KEY
presence in Central Russia. The expansion in Russia's Central Federal
District brought the number of O'KEY stores there to 24, of which 17 are
located in Moscow and the Moscow Region. The Group operates 26 O'KEY
hypermarkets in North-West Region, including 24 stores in St-Petersburg.
Another 11 O'KEY hypermarkets are located in South Russia, and 18 stores
operate in Eastern Russia.
In April 2022, The Group also opened four new DA! discounters in Central
Russia.
For further information, please contact:
For media
For investors
Alla Golovatenko
Natalya Belyavskaya
Public Relations Manager
Head of Investor Relations
+7 495 663 6677 ext. 496
+7 495 663 6677 ext. 266
5 alla.golovatenko@okmarket.ru
3 Natalya.Belyavskaya@okmarket.ru
6 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 31 March 2022, the Group operated 232 stores across Russia (75
hypermarkets and 157 discounters) with the total selling space of 620,699
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 seven e-commerce pick-up points in Moscow and six
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 20,000 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 -
43.20%, GSU Ltd - 30.03%, free-float and other holders - 26.77%.
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: QRF
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.: 158110
EQS News ID: 1337547
End of Announcement EQS News Service
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