REG-O'KEY Group S.A. O`KEY GROUP REPORTS 5.2% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS REVENUE GREW 22.1% IN Q4 2023

O'Key SAAnnouncement

31/01/2024 07:00

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   O'KEY Group S.A. (OKEY)
   O`KEY GROUP REPORTS 5.2% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS
   REVENUE GREW 22.1% IN Q4 2023

   31-Jan-2024 / 07:45 CET/CEST

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   Press release

   31 January 2024
    

              O`KEY GROUP REPORTS 5.2% NET RETAIL REVENUE GROWTH,

                 DA! DISCOUNTERS REVENUE GREW 22.1% IN Q4 2023

                                        

   O`KEY Group S.A. (AIX, LSE, MOEX: OKEY, the “Group” or the “Company”), one
   of Russia’s leading food retailers, has announced its unaudited  operating
   results for the fourth quarter (Q4) and the twelve months (12M) of 2023.

    

   All materials  published by  the Group  are available  on its  website  at
    1 www.okeygroup.lu.

    

   Q4 2023 operating highlights

     • Group net retail revenue 2  1  grew by 5.2% YoY to RUB 58.5 bn, driven
       by positive LFL performance of both O’KEY and DA! chains, discounters’
       expansion and O’KEY’s online sales growth.
     • O`KEY  hypermarkets’  net   retail  revenue  decreased   by  0.7%   to
       RUB 40.9 bn in Q4 2023 mainly due  to a selling space decrease  offset
       partially by an increase in LFL sales.
     • O`KEY’s  total  online  sales  rose  by  25.1%  YoY  to  RUB  2.3  bn,
       reaching 5.7% of O`KEY's net retail revenue.
     • DA!  discounters'  net  retail  revenue  increased  by  22.1%  YoY  to
       RUB 17.5 bn, led by both LFL net retail revenue growth and the chain’s
       expansion.

    

   12M 2023 operating highlights

     • Group net retail revenue increased by 2.8% YoY to RUB 205.8 bn
     • O`KEY hypermarkets’ net retail  revenue decreased by  3.4% YoY to  RUB
       141.9 bn due to a decrease in LFL revenue and selling space.
     • O`KEY’s  total  online  sales  rose  by  24.0%  YoY  to  RUB  7.7  bn,
       representing 5.4% of O`KEY's net retail revenue.
     • DA! discounters’ net retail revenue grew by 19.8% YoY to  RUB 63.8 bn,
       led by LFL revenue and selling space growth.
     • DA! discounters’  share in  the  Group’s net  retail revenue  grew  to
       31.0%.
     • The Group opened 26 DA! stores, bringing the  total to 220 by the  end
       of 2023.

    

   Operating review

   Group Net Retail Revenue in Q4 and 12M 2023

   Net Retail Revenue, RUB    Q4 2023 Q4 2022 YoY, % 12M 2023 12M 2022 YoY, %
   mln (excl. VAT)
   O`KEY Group                 58,460  55,589   5.2%  205,772  200,201   2.8%
   O`KEY hypermarkets          40,934  41,235 (0.7%)  141,947  146,904 (3.4%)
   DA! discounters             17,527  14,355  22.1%   63,825   53,297  19.8%

    

   Group Net Retail Revenue Metrics for Q4 and 12M 2023

                         Q4 2023 vs. Q4 2022         12M 2023 vs. 12M 2022
   Net Retail       Net retail          Average      Net             Average
   Revenue, %        revenue   Traffic   ticket    retail   Traffic  ticket
                                                   revenue
   O`KEY Group            5.2%    1.4%       3.7%      2.8%    2.3%      0.4%
   O`KEY                (0.7%)  (7.2%)       6.9%    (3.4%)  (6.0%)      2.8%
   hypermarkets
   DA! discounters       22.1%   14.2%       6.9%     19.8%   14.8%      4.3%

    

   Group Like-for-Like Net Retail Revenue Performance in Q4 and 12M 2023

                              Q4 2023 vs. Q4 2022      12M 2023 vs. 12M 2022
   LFL Net Retail Revenue, Net retail         Average   Net           Average
   %                        revenue   Traffic ticket  retail  Traffic ticket
                                                      revenue
   O`KEY Group                   1.7%  (4.2%)    6.2%  (1.6%)  (4.0%)    2.5%
   O`KEY hypermarkets            0.3%  (6.3%)    7.1%  (3.3%)  (5.9%)    2.8%
   DA! discounters               5.7%  (1.1%)    7.0%    3.0%  (1.2%)    4.3%

   Note: 4Q 2023 LFL metrics are calculated based on 76 O`KEY and 181 DA!
   stores.

    

    

   In Q4  2023, the  Group’s net  retail  revenue increased  by 5.2%  YoY  to
   RUB 58,460 mln, led  by the  LFL revenue  of the  two chains  and  O`KEY's
   online revenue growth, as  well as the  discounter business expansion.  In
   12M 2023,  the  Group’s  net  retail revenue  increased  by  2.8%  YoY  to
   RUB 205,772 mln.

   Net  retail  revenue  of  O`KEY  hypermarkets  declined  by  0.7%  YoY  to
   RUB 40,934 mln in Q4 2023 due to a selling space decrease offset partially
   by an  LFL  net retail  revenue  increase.  Net retail  revenue  of  O`KEY
   hypermarkets totalled RUB 141,947 mln in 12M 2023.

   O`KEY’s total online sales  rose by 25.1%  YoY to RUB 2,323 mln,  reaching
   5.4% of O’KEY’s net retail revenue in Q4 2023. Total online sales amounted
   to RUB 7,671 mln in 12M 2023.

   In Q4 2023, DA! discounters’ net retail revenue increased by 22.1% YoY  to
   RUB 17,527 mln, driven  by 5.7%  LFL  revenue growth  and an  increase  in
   selling space. In 12M  2023, DA! discounters’ net  retail revenue grew  by
   19.8% YoY to reach RUB 63,825 mln,  accounting for 31% of the Group’s  net
   retail revenue.

    

    

   Group Stores and Selling Space in 12M 2023

   Stores and Selling Space    12M 2023    12M 2022    Net change   Change, %
   Number of stores, EoP              297         273            24      8.8%
   O`KEY hypermarkets                  77          79           (2)    (2.5%)
   DA! discounters                    220         194            26     13.4%
   Total selling space (sq        663,865     656,688         7,177      1.1%
   m), EoP
   O`KEY hypermarkets             515,795     525,829      (10,034)    (1.9%)
   DA! discounters                148,070     130,859        17,211     13.2%

    

   In 12M 2023,  as part  of the  ongoing real  estate portfolio  review  and
   optimisation,  the  Group  closed  3  and  opened  1  O`KEY   hypermarket.
   Additionally, 3 O`KEY stores saw reduction in their sellng space in  2023.
   As a result, O’KEY selling space dreceased by 10,034 sq m, or 1.9% YoY, in
   2023.

   In 12M 2023, the Group opened 26  discounters (net of closures) under  the
   DA! brand.

   As of  31 December  2023, the  Group  operated 77 O`KEY  hypermarkets  and
   220 DA! discounters with a total selling space of 663,865 sq m.

    

    

   For more information, please contact:

    

   Natalya Belyavskaya

   Head of Investor Relations

   +7 495 663 6677 ext. 266
                                       
    3 Natalya.Belyavskaya@okmarket.ru

    4 www.okeygroup.lu

    

    

   ABOUT O`KEY GROUP

   O`KEY Group S.A.  (AIX, 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 December  2023,  the Group  operated  297 stores  across  Russia
   (77 hypermarkets and  220 discounters)  with  a  total  selling  space  of
   663,865 sq m. O`KEY opened its first hypermarket in St Petersburg in  2002
   and has since  demonstrated continuous  growth. It was  the first  Russian
   food retailer to  launch e-commerce  operations offering a  full range  of
   hypermarket products  for home  delivery.  The Group  operates  e-commerce
   pick-up and delivery points  in 36 O’KEY  hypermarkets: twelve in  Moscow,
   nineteen in St Petersburg, one in Sochi,  and four in Krasnodar. In  2015,
   we 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 – and employs 21,900 people.

   In 2022, the Group’s revenue amounted to RUB 202.2 bn, and EBITDA  reached
   RUB 17.0 bn.

   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  include
   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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    5  1  Hereinafter the net retail revenue, LFL net retail revenue, and
   online revenue metrics are provided net of VAT.

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   Dissemination of a Regulatory Announcement, transmitted by EQS Group.
   The issuer is solely responsible for the content of this announcement.

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   ISIN:          US6708662019
   Category Code: ACS
   TIDM:          OKEY
   LEI Code:      213800133YYU23T4L791
   Sequence No.:  300632
   EQS News ID:   1826275


    
   End of Announcement EQS News Service

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