REG-O'KEY Group S.A. O`KEY GROUP REPORTS AUDITED FINANCIAL RESULTS FOR FY 2023
19/04/2024 17:45
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O'KEY Group S.A. (OKEY)
O`KEY GROUP REPORTS AUDITED FINANCIAL RESULTS FOR FY 2023
19-Apr-2024 / 18:30 CET/CEST
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Press release
19 April 2024
O`KEY GROUP REPORTS AUDITED FINANCIAL RESULTS FOR FY 2023
O`KEY Group S.A. (AIX, LSE, MOEX: OKEY, the “Group”), one of Russia’s
leading food retailers, has announced its financial results for the full
year of 2023 based on audited consolidated financial statements.
All materials published by the Group are available on its website
1 okeygroup.lu.
All results are according to IFRS 16, unless stated otherwise.
FY 2023 financial highlights
• Total Group revenue increased by 2.8% YoY to RUB 207.9 bn driven
mainly by DA! discounters’ retail revenue growth.
• Group gross profit rose by 1.8% YoY to RUB 47.7 bn, while gross margin
declined slightly YoY to 22.9%, mainly due to increased transportation
costs offset partially by reduced shrinkage costs.
• Group EBITDA remained flat YoY at RUB 17.0 bn, while EBITDA margin
decreased by 0.2pps YoY to 8.2%, mainly on the back of the
abovementioned gross margin decline.
• Despite temporary pressure on profitability from the SG&A expenses of
immature discounter stores, DA! discounters demonstrated a 20.3% YoY
EBITDA growth and a 0.1 pps YoY increase in EBITDA margin in FY 2023.
• The Group reported net loss of RUB 2.9 bn in FY 2023 compared to a RUB
0.2 bn net profit in FY 2022 mainly due to a non-cash foreign exchange
loss and an increase in finance costs.
Group profit and losses highlights in FY 2023
RUB mln 2023 2022 ∆ YoY, %
Total Group revenue 207,865 202,171 2.8%
O`KEY 143,980 148,824 (3.3%)
DA! 63,885 53,347 19.8%
Gross profit 47,660 46,808 1.8%
Gross profit margin, % 22.9% 23.2% (0.3pps)
Selling, general and administrative expenses (42,516) (40,390) 5.3%
SG&A, % of revenue 20.5% 20.0% 0.5pps
Other operating expenses, net (292) (667) (56.3%)
Finance costs, net (7,267) (5,642) 28.8%
Foreign exchange (loss)/gain (1,074) 313 n/a
Net (loss)/profit (2,878) 242 n/a
Group EBITDA 17,026 17,020 -
Group EBITDA margin, % 8.2% 8.4% (0.2pps)
O`KEY EBITDA 12,643 13,377 (5.5%)
O`KEY EBITDA margin, % 8.8% 9.0% (0.2pps)
DA! EBITDA 4,383 3,643 20.3%
DA! EBITDA margin, % 6.9% 6.8% 0.1pps
Group revenue
RUB mln 2023 2022 ∆ YoY, %
Total Group revenue 207,865 202,171 2.8%
Retail revenue 205,772 200,201 2.8%
O`KEY 141,947 146,904 (3.4%)
DA! 63,825 53,297 19.8%
Rental income 2,093 1,970 6.2%
Total Group revenue increased by 2.8% YoY to RUB 207,865 mln driven mainly
by DA! discounters’ retail revenue growth in FY 2023. The Group’s rental
income increased by 6.2% YoY to RUB 2,093 mln in FY 2023.
For more details regarding the net retail revenue dynamics in FY 2023,
please refer to the Group’s 2 Q4 2023 Trading Update.
Group gross profit
In FY 2023, Group gross profit increased by 1.8% YoY to RUB 47,660 mln,
while gross margin decreased slightly YoY to 22.9%, mainly on the back of
increased logistics costs offset partially by reduced shrinkage costs, as
a percentage of revenue.
Group selling, general and administrative expenses
RUB mln 2023 % of revenue 2022 % of revenue ∆ YoY, pps
Personnel costs 17,649 8.5% 16,850 8.3% 0.2
Depreciation and 11,069 5.3% 10,662 5.3% -
amortisation
Communication and 5,355 2.6% 4,587 2.3% 0.3
utilities
Advertising and 2,200 1.1% 2,296 1.1% -
marketing
Repairs and maintenance 1,780 0.9% 1,582 0.8% 0.1
Insurance and bank 1,348 0.6% 1,260 0.6% -
commissions
Security expenses 771 0.4% 785 0.4% -
Operating taxes 718 0.3% 766 0.4% (0.1)
Legal and professional 674 0.3% 651 0.3% -
expenses
Materials and supplies 441 0.2% 460 0.2% -
Operating leases 440 0.2% 448 0.2% -
Other costs 74 0.0% 43 0.0% -
Total SG&A expenses 42,516 20.5% 40,390 20.0% 0.5
The Group’s total SG&A expenses increased by 5.3% YoY to RUB 42,516 mln in
FY 2023. SG&A expenses as a percentage of revenue rose by 0.5 pps YoY to
20.5% in FY 2023. The increase was mainly due to the temporary rise in
personnel costs, communication and utilities expenses, and repairs and
maintenance expenses as a percentage of revenue related to the discounter
segment growth.
In FY 2023, personnel costs increased by 4.7% YoY to RUB 17,649 mln and,
as a percentage of revenue, by 0.2 pps YoY to 8.5%. The growth was mainly
associated with new discounter openings and salary indexation.
Communication and utilities expenses grew by 16.7% YoY to RUB 5,355 mln,
and by 0.3 pps YoY as a percentage of revenue in FY 2023, mainly due to
tariff inflation and discounter chain growth.
Repairs and maintenance expenses increased by 12.5% YoY to RUB 1,780 mln,
and by 0.1 pps YoY as a percentage of revenue in FY 2023, largely as a
result of the discounter chain growth.
Group EBITDA was almost flat YoY at RUB 17,026 mln, while EBITDA margin
decreased by 0.2 pps YoY to 8.2% in FY 2023.
In FY 2023, Depreciation and amortisation increased by 3.8% YoY to RUB
11,069 mln mainly as a result of the discounter chain expansion.
Net finance costs increased by 28.8%, or by RUB 1,625 mln, YoY to RUB
7,267 mln in FY 2023. A substantial part of this growth (RUB 416 mln) was
attributable to the right-of-use assets’ foreseeable period of use
reassessment related to the Group’s long-term lease contracts (in
accordance with IFRS 16). Another part of the net finance costs YoY growth
(RUB 1,023 mln) came from the average net credit portfolio increase as a
result of the discounter chain expansion and the weighted average rate
growth on the back of the Bank of Russia interest rate increase. The
latter affected new facilities and issued bonds in terms of the interest
rates and a small part of the Group’s credit portfolio such as credit
lines with floating interest rates.
In FY 2023, net foreign exchange loss amounted to RUB 1,074 mln compared
to a RUB 313 mln gain in FY 2022. The loss resulted from Russian rouble
devaluation in FY 2023, and was largely attributable to intragroup
US dollar-denominated loans, as well as lease contracts denominated in
foreign currencies. Losses from import operations had a relatively small
impact on the Group’s results. Net foreign exchange loss has a non-cash
nature.
Consequently, the Group reported a RUB 2,878 mln net loss in FY 2023
compared to the profit of RUB 242 mln in FY 2022.
Group cash flow
RUB mln 2023 2022
Net cash from operating activities 15,276 12,958
Net cash (used in) investing activities (4,341) (6,468)
Net cash (used in) financing activities (11,158) (3,885)
Net (decrease) / increase in cash and cash equivalents (223) 2,605
Effect of exchange rate on cash and cash equivalents (30) (274)
Net cash from operating activities amounted to RUB 15,276 mln in FY 2023
compared to RUB 12,958 mln in FY 2022. The increase was due to revenue
growth and efficient working capital management.
Net cash used in investing activities amounted to RUB 4,341 mln in FY
2023, showing a decrease in comparison with RUB 6,468 mln in FY 2022. In
FY 2023, the Group invested over RUB 2,000 mln (excluding VAT) in the
hypermarket business development and store renovation, and over RUB
2,800 mln (excluding VAT) in the development of its discounter business.
Net cash used in financing activities amounted to RUB 11,158 mln in
FY 2023 compared to RUB 3,885 mln in FY 2022. Such evolution was due to
the Group's regular credit portfolio refinancing in FY 2023.
As of 31 December 2023, the Group had RUB 16,560 mln worth of available
credit lines in Russian roubles with fixed and floating interest rates. If
necessary, proceeds from these facilities may be used to finance operating
and investing activities.
Group net debt position
RUB mln As of 31 December As of 31 December
2023 2022
EBITDA 17,026 17,020
Total debt 47,131 45,486
Short-term debt1 6,003 9,961
Long-term debt 41,128 35,525
Cash & cash equivalents 11,526 11,779
Net debt 35,606 33,707
Total lease liabilities 26,722 22,545
Short-term lease liabilities 5,962 5,621
Long-term lease liabilities 20,760 16,924
Total interest-bearing liabilities 62,328 56,251
(net of сash & сash equivalents)
Total interest-bearing liabilities
(net of сash & сash equivalents) / 3.66x 3.30x
EBITDA
1 Short-term debt does not include interest accrued on loans and
borrowings.
As of 31 December 2023, the total interest-bearing liabilities (net of
cash) to EBITDA ratio grew to 3.66x from 3.30x as of 31 December 2022. The
growth was mainly due to an increase in long-term lease liabilities
attributable to the right-of-use assets’ foreseeable period of use
reassessment (in accordance with IFRS 16), as well as long-term debt
increase.
Group audited consolidated IFRS report
The Group’s audited report, including the full set of audited IFRS
financial statements, can be found at
3 https://www.okeygroup.lu/investors/result-center/ifrs-statements/.
For more information, please contact:
For investors
Natalya Belyavskaya
Head of Investor Relations
+7 495 663 6677, ext. 266
4 Natalya.Belyavskaya@okmarket.ru
5 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 19,200 people.
In 2023, the Group’s revenue amounted to RUB 207.9 bn, and EBITDA stood at
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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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: FR
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
Sequence No.: 316873
EQS News ID: 1885119
End of Announcement EQS News Service
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