REG-O'KEY Group S.A. O'KEY GROUP REPORTS AUDITED IFRS RESULTS FOR FY 2021
12/04/2022 07:45
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O'KEY Group S.A. (OKEY)
12-Apr-2022 / 08:30 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
12 April 2022
O'KEY GROUP REPORTS AUDITED IFRS RESULTS FOR FY 2021
O'KEY Group S.A. (LSE, MOEX: OKEY, the 'Group'), one of Russia's leading
food retailers, has announced its financial results for the full year of
2021 based on audited consolidated financial statements.
All materials published by the Group are available on its website,
1 okeygroup.lu.
All results are presented under IFRS 16 unless stated otherwise.
FY 2021 Financial Highlights
• Total Group revenue increased by 7.3% YoY to RUB 187.1 bn
• O'KEY revenue rose by 2.6% YoY to RUB 152.3 bn driven by LFL revenue
growth and expansion
• DA! revenue soared by 34.0% YoY to RUB 34.8 bn, led by LFL revenue
growth and selling space expansion
• Group gross profit increased by 7.2% to RUB 42.1 bn, and gross margin
stood flat YoY at 22.5%
• Group EBITDA grew by 4.5% YoY to RUB 15.5 bn, with EBITDA margin
amounting to 8.3%
• DA! discounters EBITDA more than doubled YoY to RUB 1.7 bn
• Group's net debt level improved YoY to a 3.38x interest-bearing
liabilities to EBITDA ratio, as of 31 December 2021
Group Profit and Losses Highlights in FY 2021
RUB mln FY 2021 FY 2020 ∆ YoY, %
Total Group revenue 187,097 174,341 7.3%
O'KEY 152,260 148,341 2.6%
DA! 34,837 26,000 34.0%
Gross profit 42,119 39,288 7.2%
Gross profit margin, % 22.5% 22.5% -
Selling, general and administrative expenses (35,718) (32,792) 8.9%
SG&A, % of revenue 19.1% 18.8% 0.3 pp
Other operating expenses, net (1,410) (1,457) (3.3%)
Operating profit 4,991 5,039 (0.9%)
Finance costs, net (4,798) (4,884) (1.8%)
Foreign exchange (loss)/gain 206 (1,787) n/a
Net (loss)/profit 208 (1,444) n/a
Group EBITDA 15,504 14,832 4.5%
Group EBITDA margin, % 8.3% 8.5% (0.2 pp)
O'KEY EBITDA 13,839 14,048 (1.5%)
O'KEY EBITDA margin, % 9.1% 9.5% (0.4pp)
DA! EBITDA 1,665 784 112.4%
DA! EBITDA margin, % 4.8% 3.0% 1.8 pp
Group Net Retail Revenue and LFL revenue in 12M 2021
RUB mln 12M 2021 12M 2020 YoY, % LFL revenue,%
O'KEY Group 185,172 172,676 7.2% 3.7%
O'KEY hypermarkets 150,383 146,779 2.5% 1.4%
DA! discounters 34,789 25,896 34.3% 16.3%
For more details, please refer to 2 the Group's Q4 2021 Trading Update.
Group Revenue
RUB mln FY 2021 FY 2020 ∆ YoY, %
Total Group revenue 187,097 174,341 7.3%
Retail revenue 185,172 172,738 7.2%
Rental income 1,925 1,603 20.1%
Group retail revenue rose by 7.2% YoY to RUB 185,172 mln in FY 2021 on the
back of solid LFL performance of both O'KEY and DA!, supported by selling
space expansion. Rental income rose by 20.1% YoY to RUB 1,925 mln in
FY 2021. Total Group revenue increased by 7.3% YoY to RUB 187,097 mln.
Group Gross Profit
In FY 2021, Group gross profit rose by 7.2% YoY to RUB 42,119 mln, while
gross margin stood flat YoY at 22.5%.
In FY 2021, logistics costs as a percentage of revenue increased by
0.4 pp YoY due to significant transportation tariffs inflation. However,
the increase was fully offset by commercial margin improvement of
0.4 pp YoY in FY 2021. That was mainly led by ongoing assortment
optimisation, as well as additional efficiencies in procurement and
operational synergies between the formats.
Shrinkage costs as a percentage of revenue stood flat YoY thanks to the
efficient supply chain and despite the substantial share of 'fresh' and
'ultra-fresh' products in the mix, which amounted to 52.1% of O'KEY's and
over 60% of DA!'s net retail revenue in FY 2021.
Group Selling, General and Administrative Expenses
RUB mln FY 2021 % of FY 2020 % of ∆ YoY, pps
revenue revenue
Personnel costs 15,388 8.2% 13,607 7.8% 0.4 pp
Depreciation and amortisation 8,904 4.8% 8,204 4.7% 0.05 pp
Communication and utilities 4,037 2.2% 3,720 2.1% 0.02 pp
Advertising and marketing 1,992 1.1% 2,124 1.2% (0.15 pp)
Repairs and maintenance 1,399 0.7% 1,345 0.8% (0.02 pp)
Insurance and bank commissions 1,094 0.6% 1,026 0.6% -
Security expenses 730 0.4% 712 0.4% -
Legal and professional expenses 709 0.4% 685 0.4% -
Operating taxes 652 0.3% 735 0.4% (0.07 pp)
Materials and supplies 409 0.2% 435 0.2% -
Operating leases 313 0.2% 161 0.1% 0.07 pp
Other costs 51 0.0% 38 0.0% -
Total SG&A 35,718 19.1% 32,792 18.8% 0.3 pp
The Group's total SG&A expenses increased by 8.9% YoY to RUB 35,718 mln in
FY 2021. SG&A expenses as a percentage of revenue rose by 0.3 pp YoY to
19.1% in FY 2021, mainly on the back of wages indexation.
Personnel costs rose by 13.1% YoY to RUB 15,388 mln and, as a percentage
of revenue, by 0.4 pp YoY to 8.2% in FY 2021, largely due to wages
indexation in the hypermarket segment in the beginning of 2021 and the
acceleration of DA! discounters' openings partially offset by the chain
ramp-up.
Communication and utilities expenses increased by 8.5% YoY to
RUB 4,037 mln, and by 0.1 pp YoY as a percentage of revenue in FY 2021.
The increase mainly resulted from utilities tariffs indexation, as well as
growing number of stores.
Advertising and marketing expenses declined by 6.2% YoY to RUB 1,992 mln,
and, as a percentage of revenue, by 0.15 pp YoY to 1.1% on the back of the
advertising channels mix optimisation refocusing on the Internet and
social media in response to changing customer shopping habits and a
growing e-grocery share.
Repairs and maintenance expenses increased by 4.0% YoY to RUB 1,399 mln,
mainly due to hypermarket modernisation and discounter chain development.
However, repairs and maintenance expenses as a percentage of revenue
declined by 0.02 pp YoY to 0.7%.
Operating tax expenses decreased by 11.3% YoY to RUB 652 mln, and by
0.07 pp YoY as a percentage of revenue to 0.3%. The decline was mainly a
result of a reduction in cadastral value of the property owned, as well as
a decrease in the amount of non-deductible VAT compared to 2020.
In 2020, the Group re-negotiated the terms of lease payments with some
landlords for the period of the pandemic-related lockdowns, which led to a
decrease in variable rental costs. In 2021, the lease benefits were no
longer in effect, and variable rent expenses rose by 0.07 pp YoY to 0.2%
of revenue.
In FY 2021, depreciation and amortisation expenses increased by 8.5% YoY
to RUB 8,904, and by 0.05 pp YoY to 4.8% of revenue, driven primarily by
the discounter chain expansion.
Group EBITDA and EBITDA Margin
The Group's EBITDA grew by 4.5% YoY to RUB 15,504 mln. Group EBITDA margin
stood at 8.3% in FY 2021.
O'KEY hypermarkets EBITDA reduced slightly by 1.5% YoY due to the factors
described above, and amounted to RUB 13,839 mln in FY 2021.
DA! discounters EBITDA grew by 112.4% YoY to 1,665 mln in FY 2021,
compared to RUB 784 mln in FY 2020. As the business continued to ramp up,
DA! EBITDA margin improved by 1.8 pp YoY to 4.8% in FY 2021.
Group Net Profit
Other operating expenses (net of incomes) decreased by 3.3% YoY to
RUB 1,410 mln in FY 2021. The decrease was mainly attributable to a
year-on-year reduction of losses on non-current assets disposal, offset by
a year-on-year increase in non-current assets impairment loss in FY 2021.
Net finance costs decreased by 1.8% YoY to RUB 4,798 mln in FY 2021,
driven mainly by a decline in the weighted average interest rate. In
addition, a substantial part of interest costs was attributable to
non-current lease liabilities (under IFRS 16), which decreased in FY 2021.
In FY 2021, the Group recognised net foreign exchange gain of RUB 206 mln,
compared to a RUB 1,787 mln net loss in FY 2020. The Group's net foreign
exchange gain was mainly attributable to lease contracts in foreign
currencies, as well as foreign exchange gain from import operations, while
USD-denominated intercompany loans with different functional currencies
which were eliminated on consolidation had a relatively small impact on
the Group's results. The foreign exchange gain/loss is of non-cash nature.
In FY 2021, the Group recorded a net profit of RUB 208 mln, compared to a
loss of RUB 1,444 mln in FY 2020.
Group Cash Flow
RUB mln FY 2021 FY 2020
Net cash from operating activities 13,813 11,946
Net cash used in investing activities (3,927) (3,755)
Net cash used in financing activities (8,137) (5,988)
Net increase in cash and cash equivalents 1,749 2,202
Effect of exchange rate on cash and cash equivalents (15) 4
Net cash from operating activities amounted to RUB 13,813 mln in FY 2021 -
an increase compared to RUB 11,946 mln in FY 2020, driven mainly by
revenue growth.
Net cash used in investing activities amounted to RUB 3,927 mln in
FY 2021, almost flat in comparison with RUB 3,755 mln cash used in
FY 2020. In FY 2021, the Group invested approximately RUB 2.5 bn (net of
VAT) in the development of its hypermarket business, including hypermarket
modernisation and the acquisition of one hypermarket in Moscow, and
approximately RUB 3.0 bn (net of VAT) in the development of its discounter
chain. Proceeds from sale of land plots and lease rights on land plots
amounted to RUB 1.5 bn in FY 2021.
Net cash used in financing activities amounted to RUB 8,137 mln in
FY 2021, compared to RUB 5,988 mln in FY 2020. The increase resulted from
the Group's regular credit portfolio refinancing in FY 2021.
As of 31 December 2021, the Group had RUB 18,550 mln of undrawn, committed
borrowing facilities available in Russian roubles on a fixed and floating
rate basis until March 2022 - October 2027, in respect of which all
conditions have been met. Proceeds from these facilities may be used to
finance operating and investing activities, if necessary.
Net increase in cash amounted to RUB 1,749 mln in FY 2021, versus a
RUB 2,202 mln cash increase in FY 2020.
Group Net Debt Position
RUB mln As of 31 December As of 31 December
2021 2020
EBITDA 15,504 14,832
Total debt 37,817 36,227
Short-term debt1 6,172 4,419
Long-term debt 31,645 31,808
Cash & cash equivalents 9,448 7,714
Net debt 28,369 28,514
Total lease liabilities 24,063 24,639
Short-term lease liabilities 4,986 4,472
Long-term lease liabilities 19,077 20,167
Total interest-bearing
liabilities (net of сash & сash 52,432 53,153
equivalents)
Total interest-bearing
liabilities (net of сash & сash 3.38 3.58
equivalents) / EBITDA
1 Short-term debt does not include interest accrued on loans and
borrowings.
The Group's financial position remained stable during the reporting
period.
As of 31 December 2021, the total interest-bearing liabilities (net of
cash) to EBITDA ratio reduced to 3.38x from 3.58x as of 31 December 2020.
As of 31 December 2021 and during the twelve-month period then ended, the
Group complied with all of its loan covenants.
Group Audited IFRS Report
The Group's audited report, including the full set of audited IFRS
financial statements, can be found at
3 https://okeygroup.lu/investors/result-center/ifrs-statements/.
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
6 alla.golovatenko@okmarket.ru
4 Natalya.Belyavskaya@okmarket.ru
7 www.okeygroup.lu
5 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 2021, the Group operated 230 stores across Russia (78
hypermarkets and 152 discounters) with the total selling space of 625,572
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: ACS
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 154955
EQS News ID: 1325687
End of Announcement EQS News Service
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