REG-O'KEY Group S.A. O'KEY Group S.A.: O`KEY GROUP REPORTS NET PROFIT FOR H1 2022. DA! DISCOUNTERS EBITDA MORE THAN DOUBLED
15/09/2022 08:00
============
O'KEY Group S.A. (OKEY)
O'KEY Group S.A.: O`KEY GROUP REPORTS NET PROFIT FOR H1 2022. DA!
DISCOUNTERS EBITDA MORE THAN DOUBLED
15-Sep-2022 / 08:45 CET/CEST
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
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O`KEY GROUP REPORTS NET PROFIT FOR H1 2022
DA! DISCOUNTERS EBITDA MORE THAN DOUBLED
Press Release
15 September 2022
O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group”), one of Russia’s leading
food retailers, has announced its financial results for the first six
months of 2022 based on condensed consolidated interim 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.
H1 2022 Financial Highlights
• Total Group revenue increased by 10.3% YoY to RUB 97.8 bn
• Group gross profit rose by 14.5% to RUB 22.3 bn, and gross margin
improved by 0.8 pps YoY to 22.8%
• Group EBITDA grew by 14.2% YoY to RUB 7.5 bn, and EBITDA margin
increased by 0.3 pps YoY to 7.7%
• DA! discounters EBITDA more than doubled YoY to RUB 1.7 bn, and EBITDA
margin reached 6.8%
• The Group’s net profit amounted to RUB 0.6 bn in H1 2022, compared to
RUB 0.2 bn in H1 2021
• Year-on-year, the Group decreased its net interest-bearing liabilities
to EBITDA ratio to 3.68x as of 30 June 2022
Key events after the reporting period
• In August 2022, the Group paid out an interim dividend of EUR 8.5 mln.
The full announcement is available at
2 https://okeygroup.lu/press-center/press-releases/2022/1810/.
Armin Burger, O`KEY Group CEO, commented:
“In the first half of 2022, the Group delivered strong operational and
financial results, despite the unprecedented geopolitical and
macroeconomic turmoil that the global economy faced. The Group
demonstrated a year-on-year improvement in both gross and EBITDA margins
in H1 2022.
Since March 2022, we have successfully revised our supplier portfolio and
adjusted the supply chain and logistics to ensure full-shelf product
availability. Our focus remains on domestic supply, with around 80% of the
assortment sourced locally.
We continued to develop the three pillars of O'KEY Group's business model:
modern O'KEY hypermarkets, fast-growing DA! discounters, and the e-grocery
business. The Group acquired and relaunched under a new concept 4 O'KEY
hypermarkets in the Moscow region, opened 12 DA! discounters in Central
Russia and added 6 pick-up points for online orders at O'KEY hypermarkets
in Moscow and St. Petersburg.
For O'KEY hypermarkets, we went on optimising the store portfolio and
streamlining the cost base. In Q2 2022, we temporarily limited promotional
activity at hypermarkets in order to ensure sufficient stock levels and
full on-shelf availability, as well as protect our margins in a highly
inflationary environment. In H1 2022, the hypermarkets demonstrated a
strong EBITDA margin of 8%.
DA! discounters showed a 63% YoY revenue growth with a record-high
like-for-like increase of 35% in H1 2022. In Q2 2022, the discounter
business reached 28.5% of the Group's net retail revenue. As the chain
continued to ramp up in H1 2022, its EBITDA grew more than twofold, and
the EBITDA margin improved substantially to 6.8%.
We expect the discounters to remain a key driver of the Company's
continued top-and bottom-line growth and, in several years, to constitute
half of the Group's business. In 2022, we plan to open up to 45 new DA!
discounters and undergo a concept update in up to 8 O'KEY hypermarkets.”
Group Profit and Losses Highlights in H1 2022
RUB mln H1 2022 H1 2021 ∆ YoY, %
Total Group revenue 97,803 88,662 10.3%
O`KEY 72,264 73,001 (1.0%)
DA! 25,539 15,661 63.1%
Gross profit 22,302 19,486 14.5%
Gross profit margin, % 22.8% 22.0% 0.8pps
Selling, general and administrative expenses (19,794) (17,275) 14.6%
SG&A, % of revenue 20.2% 19.5% 0.7pps
Other operating expenses, net (551) (266) 2.1x
Operating profit 1,958 1,946 0.6%
Finance costs, net (2,685) (2,343) 14.6%
Foreign exchange gain 1,533 539 2.8x
Net profit 576 152 3.8x
Group EBITDA 7,511 6,575 14.2%
Group EBITDA margin, % 7.7% 7.4% 0.3pps
O`KEY EBITDA 5,765 5,904 (2.3%)
O`KEY EBITDA margin, % 8.0% 8.1% (0.1pps)
DA! EBITDA 1,745 671 2.6x
DA! EBITDA margin, % 6.8% 4.3% 2.5pps
Group Revenue
RUB mln H1 2022 H1 2021 ∆ YoY, %
Total Group revenue 97,803 88,662 10.3%
Retail revenue 96,814 87,698 10.4%
Rental income 989 964 2.6%
In H1 2022, Group retail revenue rose by 10.4% YoY to RUB 96,814 mln on
DA! discounters’ record-high LFL performance, supported by store expansion
of both O`KEY and DA! chains. Rental income increased by 2.6% YoY and
amounted to RUB 989 mln in H1 2022. Total Group revenue climbed 10.3% YoY
to RUB 97,803 mln in H1 2022.
Group net retail revenue and LFL revenue in H1 2022
RUB mln H1 2022 H1 2021 YoY, % LFL H1 2022/ H1 2021, %
O`KEY Group 96,814 87,698 10.4% 4.8%
O`KEY hypermarkets 71,300 72,061 (1.1%) (1.8%)
DA! discounters 25,514 15,637 63.2% 35.2%
For more details, please refer to the Group’s 3 Q2 2022 Trading Update.
Group Gross Profit
In H1 2022, Group gross profit went up by 14.5% YoY to RUB 22,302 mln, and
gross margin rose by 0.8 pps YoY to 22.8%. The improvement was mainly
thanks to the Group’s effective procurement and logistics management,
timely efforts in reshaping its product supply, as well as operational
synergy between the formats.
Group Selling, General and Administrative Expenses
RUB mln H1 2022 % of revenue H1 2021 % of ∆ YoY, pps
revenue
Personnel costs 8,494 8.7% 7,430 8.4% 0.3
Depreciation and 5,115 5.2% 4,347 4.9% 0.3
amortisation
Communication and 2,184 2.2% 1,984 2.2% -
utilities
Advertising and marketing 1,029 1.1% 899 1.0% 0.05
Repairs and maintenance 766 0.8% 648 0.7% 0.05
Insurance and bank 606 0.6% 524 0.6% 0.03
commissions
Operating taxes 421 0.4% 345 0.4% 0.04
Security expenses 375 0.4% 349 0.4% -
Legal and professional 330 0.3% 355 0.4% (0.05)
expenses
Materials and supplies 206 0.2% 182 0.2% -
Operating leases 246 0.3% 185 0.2% 0.04
Other costs 23 0.0% 27 0.0% (0.01)
Total SG&A expenses 19,794 20.2% 17,275 19.5% 0.75
The Group’s total SG&A expenses increased by 14.6% YoY to RUB 19,794 mln
in H1 2022. SG&A expenses as a percentage of revenue rose by 0.75 pps YoY
to 20.2% in H1 2022, mainly due to the growth of personnel costs and
depreciation and amortisation (D&A) expenses.
In H1 2022, personnel costs increased by 14.3% YoY to RUB 8,494 mln and,
as a percentage of revenue, by 0.3 pps YoY to 8.7%. The growth came mainly
on the back of new store openings across both hypermarket and discounter
chains, as well as wages indexation in hypermarkets.
Advertising and marketing expenses increased by 14.4% YoY to RUB 1,029
mln, and by 0.05 pps YoY to 1.1% as a percentage of revenue, mainly due to
the planned replacement of advertising equipment in hypermarkets.
Repairs and maintenance expenses went up by 18.1% YoY to RUB 766 mln, and,
as a percentage of revenue, by 0.05 pps YoY to 0.8%, largely due to new
hypermarket and discounter openings.
In H1 2022, D&A expenses rose by 17.7% YoY to RUB 5,115 mln, and by 0.3
pps YoY to 5.2% of revenue, driven primarily by the discounter chain
growth.
Group EBITDA and EBITDA Margin
The Group’s EBITDA grew by 14.2% YoY to RUB 7,511 mln, while EBITDA margin
improved by 0.3 pps YoY to 7.7% in H1 2022.
O`KEY hypermarkets EBITDA declined by 2.3% YoY, from RUB 5,904 mln in H1
2021 to RUB 5,765 mln in H1 2022, due to the above-mentioned SG&A expenses
growth, partially offset by an increase in gross profit. O`KEY
hypermarkets EBITDA margin fell slightly by 0.1 pps, from 8.1% in H1 2021
to 8.0% in H1 2022.
DA! discounters EBITDA more than doubled year-on-year to RUB 1,745 mln in
H1 2022, compared with RUB 671 mln in H1 2021. As the business continued
to ramp up, DA! EBITDA margin improved by 2.5 pps YoY and reached 6.8% in
H1 2022.
Group Net Profit
In H1 2022, the Group posted RUB 576 mln in net profit, compared to the
profit of RUB 152 mln in H1 2021.
Group Cash Flow
RUB mln H1 2022 H1 2021
Net cash from operating activities 948 804
Net cash used in investing activities (3,482) (1,786)
Net cash from (used in) financing activities 1,405 (4,344)
Net decrease in cash and cash equivalents (1,129) (5,326)
Effect of exchange rate on cash and cash equivalents (373) (7)
Net cash from operating activities amounted to RUB 948 mln and was driven
mainly by the discounter business growth, partially offset by an increase
in working capital in H1 2022.
Net cash used in investing activities amounted to RUB 3,482 mln in H1
2022, almost a twofold increase in comparison with the RUB 1,786 mln of
cash used in H1 2021. In H1 2022, the Group invested approximately RUB 1.6
bn (excluding VAT) in the development of the hypermarket business, and
over RUB 1.9 bn (excluding VAT) in the development of the discounter
business.
Net cash from financing activities amounted to RUB 1,405 mln in H1 2022,
compared with the RUB 4,344 mln of net cash used in financing activities
in H1 2021. The dynamics resulted from the Group's regular credit
portfolio refinancing in H1 2022.
As of 30 June 2022, the Group had RUB 13,150 mln of available credit lines
in Russian roubles with fixed and floating interest rates, in respect of
which all conditions have been met. If necessary, proceeds from these
facilities may be used to finance operating and investing activities.
Group Net Debt Position
RUB mln As of 30 June As of 30 June
2022 2021
EBITDA LTM 16,440 14,709
Total debt 44,396 36,556
Short-term debt1 10,122 9,661
Long-term debt 34,275 26,895
Cash & cash equivalents 7,946 2,380
Net debt 36,450 34,176
Total lease liabilities 23,967 24,241
Short-term lease liabilities 5,257 4,729
Long-term lease liabilities 18,711 19,512
Total interest-bearing liabilities (net of 60,417 58,417
сash & сash equivalents)
Total interest-bearing liabilities (net of 3.68 3.97
сash & сash equivalents) / LTM 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 30 June 2022, the total interest-bearing liabilities (net of cash)
to LTM EBITDA ratio decreased to 3.68x from 3.97x as of 30 June 2021. As
of 30 June 2022 and during the twelve-month period then ended, the Group
complied with all of its loan covenants.
Group interim IFRS report
The Group’s interim report, including the full set of interim IFRS
financial statements, can be found at
4 https://okeygroup.lu/investors/result-center/ifrs-statements/.
For more information, please contact:
For media
For investors
Alla Ivantsova
Natalya Belyavskaya
Head of Public Relations
Head of Investor Relations
+7 495 663 6677, ext. 496
+7 495 663 6677, ext. 266
7 alla.golovatenko@okmarket.ru
5 Natalya.Belyavskaya@okmarket.ru
8 www.okeygroup.lu
6 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 30 June 2022, the Group operated 243 stores across Russia (79
hypermarkets and 164 discounters) with a total selling space of 638,638
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 ten
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 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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Attachment
File: 9 O`KEY GROUP REPORTS NET PROFIT FOR H1 2022
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ISIN: US6708662019
Category Code: IR
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
Sequence No.: 188206
EQS News ID: 1442869
End of Announcement EQS News Service
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