REG-O'KEY Group S.A. O'KEY GROUP REPORTS 6.1% REVENUE GROWTH IN Q2 2021
29/07/2021 07:50
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O'KEY Group S.A. (OKEY)
O'KEY GROUP REPORTS 6.1% REVENUE GROWTH IN Q2 2021
29-Jul-2021 / 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
29 July 2021
O'KEY GROUP REPORTS 6.1% REVENUE GROWTH IN Q2 2021
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 2021.
All materials published by the Group are available at 1 www.okeygroup.lu.
Q2 2021 operating highlights
• Group net retail revenue 2 1 grew by 6.1% YoY to RUB 44,437 mln.
• The Group like-for-like (LFL) net retail revenue grew by 1.2% YoY,
with both hypermarkets and discounters delivering positive LFL
performance.
• DA! discounters' net retail revenue expanded by 21.4% YoY to
RUB 8,396 mln, driven by a 6.8% LFL net retail revenue growth and a
19.5% YoY selling space increase.
• DA! discounters' share in the Group's revenue rose by 2.4 pps YoY to
18.9%.
• O'KEY hypermarkets' net retail revenue added 3.1% YoY to reach RUB
36,041 mln.
H1 2021 operating highlights
• Group net retail revenue increased by 4.0% YoY to RUB 87,698 mln.
• DA! discounters' net retail revenue grew by 23.9% YoY to
RUB 15,637 mln, driven by a 10.2% LFL net retail revenue growth and a
selling space expansion.
• O'KEY hypermarkets' net retail revenue grew by 0.5% YoY to RUB 72,061
mln.
• Total online sales grew by 62.6% YoY to RUB 1,982 mln and accounted
for 2.8% of O'KEY's revenue.
Key events in Q2 2021 and after the reporting date
• In June 2021, O'KEY Group acquired a Karusel hypermarket in Moscow
from X5 Group. The new hypermarket became the 14th O'KEY store in the
Moscow metropolitan area. The Company has further strengthened its
position in this strategic market and brought its selling space in the
Central region to over 115,000 sq m. In Q4 2021, O'KEY plans to open
here a hypermarket designed in line with the new store concept.
The full text of the announcement is available at
3 https://okeygroup.lu/press-center/press-releases/2021/1760/.
• In July 2021, 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 agency noted the growth in the Group's revenue and
EBITDA in the financial year 2020, combined with a solid financial
position and a high diversification of the debt portfolio.
Armin Burger, Chief Executive Officer at O'KEY Group, commented:
"We are very pleased with a 6.1% revenue growth the Group delivered thanks
to both hypermarkets' and discounters' strong performance in Q2 2021.
"DA! discounters showed an impressive increase of 21.4% in net retail
revenue, with a like-for-like growth of 6.8% in Q2 2021. It is noteworthy
that the discounters delivered these results on top of their 50.8% YoY
revenue growth and 34.7% LFL performance in the comparable Q2 2020.
Starting from its launch in 2015, DA! remains one of the fastest growing
grocery chains in terms of revenue. Today, DA! is the only food discounter
in Russia that successfully operates a business model based on a unique
private label portfolio. The share of DA! in the Group's revenue reached
almost 19% in Q2 2021. Keeping focus on the efficiency and profitability
of our discounter business, we plan to bring the number of new openings at
DA! up to 35-40 annually, starting this year. We see discounters as the
main driver of the Group's revenue and profitability growth in the medium
term.
"O'KEY hypermarkets demonstrated a 3.1% YoY revenue growth in Q2 2021, a
solid result, especially given the high comparables from Q2 2020. We
continue to improve customer service, develop the product range with a
focus on fresh categories and private labels, and streamline the use of
selling space. We keep redesigning our hypermarkets in key regions,
including the newly acquired store in Moscow we will relaunch under the
new concept by the end of 2021.
"As a pioneer in e-grocery, we continuously invest in our omni-channel
shopping model. In Q2 2021, the Group's online sales rose by 62.6% YoY to
account for 2.8% of O'KEY's revenue.
"We also confirm our previously announced guidance for 2021, expecting a
low-single-digit LFL growth at O'KEY hypermarkets and a double-digit LFL
growth at DA! discounters."
Operating review
Group Net Retail Revenue in Q2 and H1 2021
Net Retail Revenue, RUB mln Q2 2021 Q2 2020 YoY, % H1 2021 H1 2020 YoY, %
(excl. VAT)
O'KEY Group 44,437 41,891 6.1% 87,698 84,335 4.0%
O'KEY hypermarkets 36,041 34,973 3.1% 72,061 71,718 0.5%
DA! discounters 8,396 6,918 21.4% 15,637 12,617 23.9%
Group Like-for-like Net Retail Revenue Performance in Q2 and H1 2021
Q2 2021 vs. Q2 2020 H1 2021 vs. H1 2020
LFL Net Retail Net retail Average Net Average
Revenue, % revenue Traffic ticket retail Traffic ticket
revenue
O'KEY Group 1.2% 19.4% (15.2%) 0.5% 1.9% (1.4%)
O'KEY hypermarkets 0.1% 19.1% (15.9%) (1.2%) (0.2%) (1.1%)
DA! discounters 6.8% 20.1% (11.1%) 10.2% 8.0% 2.0%
Note: Q2 2021 LFL metrics calculated based on 74 O'KEY and 99 DA! stores.
Group Net Retail Revenue Monthly Metrics for Q2 2021
April May June Q2 2021 H1 2021
Net retail revenue, % YoY
O'KEY Group 9.7% 4.2% 4.5% 6.1% 4.0%
O'KEY hypermarkets 7.6% 1.1% 0.6% 3.1% 0.5%
DA! discounters 20.2% 19.6% 24.4% 21.4% 23.9%
Customer traffic, % YoY
O'KEY Group 41.3% 27.8% 15.4% 27.3% 6.9%
O'KEY hypermarkets 37.6% 23.0% 10.5% 22.9% 1.5%
DA! discounters 50.8% 40.4% 27.6% 38.7% 22.9%
Average ticket, % YoY
O'KEY Group (22.4%) (18.5%) (9.5%) (16.7%) (2.7%)
O'KEY hypermarkets (21.8%) (17.8%) (9.0%) (16.1%) (1.0%)
DA! discounters (20.3%) (14.8%) (2.5%) (12.5%) 0.8%
The Group's net retail revenue increased by 6.1% YoY to RUB 44,437 mln in
Q2 2021 and by 4.0% YoY to RUB 87,698 mln in H1 2021.
Net retail revenue at O'KEY hypermarkets grew by 3.1% YoY to RUB 36,041
mln in Q2 2021 and by 0.5% YoY to RUB 72,061 mln in H1 2021.
O'KEY's LFL revenue increased by 0.1% YoY in Q2 2021 on top of strong
comparables from April and May 2020, when customers tended to stockpile
during the pandemic-related lockdown.
In H1 2021, the Group continued transforming its hypermarket business to
improve customer service and shopping experience. O'KEY focuses on fresh
and ultra-fresh products, ready-to-eat dishes, bakery and own brands as
key differentiation points and competitive advantages. The share of fruits
& vegetables, fresh and ultra-fresh categories in the hypermarkets'
revenue was 52.0% in Q2 2021.
The Group constantly works to optimise its private label portfolio to win
additional customer loyalty and improve profitability in each category.
Own brands accounted for 7.7% of O'KEY's and 50.2% of the discounters' net
retail revenue in Q2 2021.
DA! discounters delivered a 21.4% YoY growth in net retail revenue to RUB
8,396 mln in Q2 2021, and a 23.9% YoY increase to RUB 15,637 mln in H1
2021. The discounters showed a 10.2% YoY LFL revenue growth in H1 2021 (a
6.8% YoY LFL growth in Q2 2021), and increased their selling space by
19.5% YoY in H1 2021. DA! discounters' share in the Group's revenue rose
by 2.4 pps YoY to 18.9% in Q2 2021.
The Group develops its own e-commerce platform, focusing on the key cities
of Moscow and St.-Petersburg and covers the rest of its footprint via
partnerships with delivery operators. In H1 2021, the Group's online sales
rose by 62.6% YoY to RUB 1,982 mln, accounting for 2.8% of O'KEY's
revenue.
Group Stores and Selling Space in Q2 2021
Stores and Selling Q2 2021 Q2 2020 Net change Change (%)
Space
Number of stores, EoP 199 177 22 12.4%
O'KEY hypermarkets 77 77 - -
DA! Discounters 122 100 22 22.0%
Total selling space 602,164 595,394 6,770 1.1%
(sq m), EoP
O'KEY hypermarkets 519,369 526,081 (6,712) (1.3%)
DA! Discounters 82,795 69,313 13,482 19.5%
The Company operated 77 O'KEY stores with a total selling space of 519,369
sq m as of 30 June 2021. In Q2 2021, the Company acquired a hypermarket in
Moscow to relaunch it under the new concept in Q4 2021.
The Group opened four discounters in Q2 2021 and, as of 30 June 2021,
operated 122 DA! stores with a total selling space of 82,795 sq m. The
Group plans to open from 35 to 40 DA! stores in 2021.
For further information please contact:
For investors For media
Natalya Belyavskaya Alla Golovatenko
Head of Investor Relations Head of Public Relations
+7 495 663 6677 ext. 266 +7 495 663 6677 ext. 496
4 Natalya.Belyavskaya@okmarket.ru 6 alla.golovatenko@okmarket.ru
5 www.okeygroup.lu 7 www.okeygroup.lu
ABOUT O'KEY GROUP
As of June 30, 2021, the Group operated 199 stores across Russia (77
hypermarkets and 122 discounters) with total selling space of 602,164
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 six 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 2020, Group's
revenue amounted to RUB 174.3 billion, while EBITDA reached RUB 14.8
billion. The O'KEY shareholder structure is as follows: NISEMAX Co Ltd -
44.84%, GSU Ltd - 29.53%, free float - 25.63%.
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 which 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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8 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: 1.2. Half yearly financial reports and audit
reports/limited reviews
Sequence No.: 118692
EQS News ID: 1222498
End of Announcement EQS News Service
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References
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