REG-O'KEY Group S.A. O`KEY GROUP REPORTS 8.1% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS REVENUE UP 53.2% IN 2022
31/01/2023 07:00
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O'KEY Group S.A. (OKEY)
O`KEY GROUP REPORTS 8.1% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS
REVENUE UP 53.2% IN 2022
31-Jan-2023 / 07:45 CET/CEST
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EquityStory RS.
The issuer is solely responsible for the content of this announcement.
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Press release
31 January 2023
O`KEY GROUP REPORTS 8.1% NET RETAIL REVENUE GROWTH,
DA! DISCOUNTERS REVENUE UP 53.2% IN 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 fourth quarter (Q4) and the twelve months (12M) of 2022.
All materials published by the Group are available on its website
1 www.okeygroup.lu.
12M 2022 operating highlights
• Group net retail revenue 1 increased by 8.1% YoY to RUB 200.2 bn,
driven by new store openings, strong LFL performance of
DA! discounters and O`KEY’s online sales growth.
• O`KEY hypermarkets’ net retail revenue decreased by 2.3% YoY to RUB
146.9 bn, due to a LFL revenue decline, which was partially offset by
revenue from new O`KEY stores.
• O`KEY total online sales rose by 32.6% YoY to RUB 6.2 bn,
representing 4.2% of O`KEY's net retail revenue.
• DA! discounters’ net retail revenue surged by 53.2% YoY to
RUB 53.3 bn, boosted by a 26.8% increase in LFL revenue and a 26.7%
expansion in selling space.
• DA! discounters’ share in the Group’s net retail revenue grew by
7.8 pps YoY to 26.6%. In the medium term, the Group expects up to a
half of its revenue to come from discounters.
• In 12M 2022, the Group opened four new O`KEY hypermarkets in the
Moscow Region and completed a full renovation of a hypermarket in
Sochi. By the end of 2022, the Company operated 79 hypermarkets, of
which nine had been refurbished in line with the modern concept.
• The Group opened 43 DA! stores, bringing the total to 194 by the end
of 2022.
1 Here and throughout this report, net retail revenue, LFL net retail
revenue, and online revenue metrics are provided net of VAT.
Q4 2022 operating highlights
• Group net retail revenue grew by 2.9% YoY to RUB 55.6 bn.
• O`KEY hypermarkets’ net retail revenue decreased by 5.3% to
RUB 41.2 bn in Q4 2022 amid softer consumer demand, macroeconomic
slowdown due to continuing geopolitical and macroeconomic turbulences.
• The YoY revenue dynamics in Q4 2022 was also affected by the
relatively high base of Q4 2021, which saw a boost in customer
footfall and average basket size across the two chains after the
COVID-related restrictions had been eased.
• DA! discounters' net retail revenue increased by 37.0% YoY to
RUB 14.4 bn, supported by a 14.5% LFL net retail revenue growth and
the chain’s expansion.
Operating review
Group Net Retail Revenue in Q4 and 12M 2022
Net Retail Revenue, RUB Q4 2022 Q4 2021 YoY, % 12M 2022 12M 2021 YoY, %
mln (excl. VAT)
O`KEY Group 55,589 54,024 2.9% 200,201 185,172 8.1%
O`KEY hypermarkets 41,235 43,545 (5.3%) 146,904 150,383 (2.3%)
DA! discounters 14,355 10,479 37.0% 53,297 34,789 53.2%
Group Net Retail Revenue Metrics for Q4 and 12M 2022
Q4 2022 vs. Q4 2021 12M 2022 vs. 12M 2021
Net Retail Net retail Average Net Average
Revenue, % revenue Traffic ticket retail Traffic ticket
revenue
O`KEY Group 2.9% 5.4% (2.4%) 8.1% 5.3% 2.7%
O`KEY (5.3%) (5.0%) (0.3%) (2.3%) (8.5%) 6.8%
hypermarkets
DA! discounters 37.0% 25.9% 8.8% 53.2% 36.0% 12.7%
Group Like-for-like Net Retail Revenue Performance in Q4 and 12M 2022
Q4 2022 vs. Q4 2021 12M 2022 vs. 12M 2021
LFL Net Retail Revenue, Net retail Average Net Average
% revenue Traffic ticket retail Traffic ticket
revenue
O`KEY Group (2.8%) (2.3%) (0.5%) 2.1% (2.5%) 4.6%
O`KEY hypermarkets (6.9%) (5.9%) (1.1%) (3.6%) (9.0%) 5.9%
DA! discounters 14.5% 4.8% 9.3% 26.8% 12.0% 13.2%
Note: 12M 2022 LFL metrics are calculated based on 75 O`KEY and 141 DA!
stores.
In 12M 2022, the Group’s net retail revenue rose by 8.1% YoY to
RUB 200,201 mln, led by the expansion of the two chains and growing
DA! discounters' LFL revenue and O`KEY's online revenue.
Net retail revenue of O`KEY hypermarkets declined by 2.3% YoY to
RUB 146,904 mln in 12M 2022, due to a 3.6% decrease in O`KEY’s LFL net
retail revenue amid continuing economic slowdown, softer consumer demand
and the temporary absence of our premium customers. Due to inflation
customers became more price sensitive, with the increased demand for goods
in a lower price segment and O’KEY private labels.
In 2022, O`KEY continued to modernise its hypermarkets to keep up with the
latest global retail trends. In April, the Group relaunched under the new
concept the four hypermarkets in the Moscow Region it had acquired from
X5 Group to strengthen O`KEY presence in Central Russia. In August, O`KEY
completed renovation of its hypermarket in Sochi.
O`KEY’s total online sales rose by 32.6% YoY to RUB 6,188 mln in 12M 2022.
The share of total online sales in O`KEY’s net retail revenue grew by
1.1 pps YoY to 4.2% in 12M 2022.
In 12M 2022, DA! discounters’ net retail revenue increased by 53.2% YoY to
RUB 53,297 mln, boosted by a 26.8% LFL revenue growth and a 26.7% YoY
increase in selling space. The growth in LFL revenue was driven by
improvements in customer traffic and average ticket as a result of the
Company's efforts to raise brand awareness and offer a wide range of
quality products at the best prices while maintaining a strong focus on
private labels. The share of these products in the discounters’ net retail
revenue amounted to approximately 50% in 12M 2022.
The discounters’ share in the Group’s net retail revenue rose by 7.8 pps
YoY to 26.6% in 12M 2022. The Company expects the DA! chain to remain a
key driver of the Group’s top- and bottom-line growth and to generate as
much as a half of the Group’s revenue in the medium term.
Group Stores and Selling Space in 12M 2022
Stores and Selling Space 12M 2022 12M 2021 Net change Change, %
Number of stores, EoP 273 230 43 18.7%
O`KEY hypermarkets 79 78 1 1.3%
DA! discounters 194 152 42 27.6%
Total selling space (sq m), 656,224 625,572 30,652 4.9%
EoP
O`KEY hypermarkets 525,829 522,650 3,179 0.6%
DA! discounters 130,395 102,922 27,473 26.7%
In 12M 2022, in course of an ongoing real estate portfolio optimisation,
the Group closed three O`KEY stores and opened four hypermarkets in
Central Russia. Also, as part of optimization, the selling space of the
renovated hypermarket in Sochi was reduced by 2,093 sq m to 4,607 sq m.
In 12M 2022, the Group opened 42 discounters (net of 1 closure) under the
DA! brand.
As of 31 December 2022, the Group operated 79 O`KEY hypermarkets and
194 DA! discounters with a total selling space of 656,224 sq m.
For more information, please contact:
Natalya Belyavskaya
Head of Investor Relations
+7 495 663 6677 ext. 266
natalya.belyavskaya@okmarket.ru
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 31 December 2022, the Group operated 273 stores across Russia (79
hypermarkets and 194 discounters) with the total selling space of 656,224
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
seventeen 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, the Group’s revenue amounted to RUB 187.1 bn, while EBITDA
reached RUB 15.5 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 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: ACS
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 219441
News ID: 1547073
End of Announcement EquityStory RS News Service
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