REG-O'KEY Group S.A. O'KEY Group S.A.: O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q2 2023
15/08/2023 08:00
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O'KEY Group S.A. (OKEY)
O'KEY Group S.A.: O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q2 2023
15-Aug-2023 / 08:45 CET/CEST
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Press release
15 August 2023
O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q2 2023
O`KEY Group S.A. (AIX, 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 2023.
All materials published by the Group are available on its website
1 www.okeygroup.lu.
Q2 2023 operating highlights
• Group net retail revenue 2 1 remained almost flat showing a 0.4% YoY
increase to RUB 49.7 bn in Q2 2023.
• O`KEY hypermarkets’ net retail revenue decreased by 5.3% YoY to
RUB 33.5 bn in Q2 2023, mainly due to a 4.8% YoY LFL revenue decrease.
The decline was primarily attributable to a high comparable revenue
base in Q2 2022, as food inflation peaked at 19.5% in Q2 2022 compared
to 0.3% deflation in Q2 2023. In addition, in Q2 2022, we saw a
temporary shift in the volume and structure of consumption, with
further normalisation in H1 2023.
• O`KEY’s total online sales grew by 34.4% YoY to RUB 1.9 bn and
accounted for 5.7% of the hypermarkets’ net retail revenue in Q2 2023.
• DA! discounters’ net retail revenue grew by 14.4% YoY to RUB 16.2 bn
in Q2 2023, led by store openings, and offset partially by a high
comparable base (DA! showed a record high net retail revenue growth of
68.5% in Q2 2022).
• DA! discounters’ share in the Group’s revenue rose by 4.0 pps YoY and
reached 32.6% in Q2 2023. The Company expects the discounter segment
to lead the Group’s growth in 2023 and in the mid-term.
H1 2023 operating highlights
• Group net retail revenue increased by 1.7% YoY to RUB 98.5 bn.
• O`KEY hypermarkets’ net retail revenue declined by 4.6% YoY to RUB
68.1 bn.
• O`KEY total online sales grew by 26.3% YoY to RUB 3.8 bn and reached
5.6% of O`KEY's net retail revenue.
• DA! discounters’ net retail revenue rose by 19.2% YoY to RUB 30.4 bn,
driven by a 3.1% LFL net retail revenue growth and the chain’s
expansion.
• In H1 2023, the Group opened 11 DA! stores. As of 30 June 2023, the
Group operated 205 DA! discounters.
Operating review
Group Net Retail Revenue in Q2 and H1 2023
Net Retail Revenue, RUB mln Q2 2023 Q2 2022 YoY, % H1 2023 H1 2022 YoY, %
(excl. VAT)
O`KEY Group 49,738 49,562 0.4% 98,463 96,814 1.7%
O'KEY hypermarkets 33,548 35,414 (5.3%) 68,054 71,300 (4.6%)
DA! discounters 16,190 14,148 14.4% 30,409 25,514 19.2%
Group Net Retail Revenue Metrics for Q2 and H1 2023
Q2 2023 vs. Q2 2022 H1 2023 vs. H1 2022
Net Retail Net retail Average Net Average
Revenue, % revenue Traffic ticket retail Traffic ticket
revenue
O`KEY Group 0.4% 2.0% (1.7%) 1.7% 3.4% (1.6%)
O'KEY (5.3%) (5.8%) 0.5% (4.6%) (4.4%) (0.1%)
hypermarkets
DA! discounters 14.4% 13.1% 1.2% 19.2% 15.4% 3.3%
Group Like-for-like Net Retail Revenue Performance in Q2 and H1 2023
Q2 2023 vs. Q2 2022 H1 2023 vs. H1 2022
LFL Net Retail Revenue, Net retail Average Net Average
% revenue Traffic ticket retail Traffic ticket
revenue
O`KEY Group (3.7%) (4.1%) 0.4% (3.2%) (3.2%) 0.0%
O'KEY hypermarkets (4.8%) (5.3%) 0.6% (5.4%) (5.1%) (0.3%)
DA! discounters (1.0%) (2.3%) 1.3% 3.1% (0.2%) 3.3%
Note: Q2 2023 LFL metrics are calculated based on 77 O`KEY and 162 DA!
stores.
The Group’s net retail revenue increased by 0.4% YoY to RUB 49,738 mln,
led mainly by discounters’ and online sales growth in Q2 2023.
Net retail revenue of O`KEY hypermarkets decreased by 5.3% YoY to
RUB 33,548 mln in Q2 2023. The decline was mainly attributable to a 4.8%
decrease in O`KEY LFL net retail revenue due to a high comparable base in
Q2 2022. The Russian Federal State Statistics Service recorded food
deflation of 0.3% in Q2 2023 vs. inflation of 19.5% in Q2 2022.
Additionally, in Q2 2022, customers tended to stockpile essential goods
under a fast-changing external environment, so we saw a peak demand in the
comparable period of 2022.
As consumers became more price sensitive and increased demand for cheaper
products, O’KEY continued to develop its entry-level product range under
own brands. The share of private labels in O’KEY revenue increased YoY to
7.4% in Q2 2023. The assortment refinement and prudent approach to
promotional activity allowed O`KEY to keep a healthy balance between the
top-line and operating margins in H1 2023. In Q2 2023, O’KEY also launched
a new customer loyalty program with a multi-level system of discounts on
the O'CARD, which has completely replaced the previous bonus system.
Under ongoing store portfolio optimisation, O`KEY closed 3 stores and
opened 1 store in H1 2023. In addition, several O`KEY hypermarkets
underwent modernisation and selling space optimisation. Overall O`KEY’s
selling space decreased by 3.2% YoY in H1 2023.
O`KEY total online sales increased by 34.4% YoY to RUB 1,918 mln in
Q2 2023. The share of total online sales in O`KEY’s net retail revenue
grew by 1.7 pps YoY and reached 5.7% in Q2 2023. The Company opened five
new e-commerce points for online order pick-up and delivery in its O`KEY
hypermarkets in Sochi and Krasnodar in Q2 2023.
DA! discounters net retail revenue grew by 14.4% YoY to RUB 16,190 mln in
Q2 2023, from the base of one of the industry's highest growth rates that
the network demonstrated over the last several years. DA! discounters’ LFL
revenue declined by 1.0% in Q2 2023 from the high comparable base of Q2
2022, when DA! delivered a record-high 37.1% LFL revenue growth.
In Q2 2023, the DA! team continued to work on enhancing the entry-level
products portfolio in order to provide our price sensitive customers with
the best value-for-money offers.
The discounters’ share in the Group’s revenue increased by 4.0 pps YoY to
32.6% in Q2 2023. The Company expects the discounter segment to remain one
of the key growth drivers for the Group.
Group Stores and Selling Space in H1 2023
Stores and Selling Space H1 2023 H1 2022 Net change Change, %
Number of stores, EoP 282 243 39 16.0%
O'KEY hypermarkets 77 79 (2) (2.5%)
DA! discounters 205 164 41 25.0%
Total selling space (sq m), EoP 648,597 638,638 9,959 1.6%
O'KEY hypermarkets 510,768 527,922 (17,154) (3.2%)
DA! discounters 137,829 110,716 27,113 24.5%
In H1 2023, in the course of ongoing real estate portfolio revision and
optimisation, the Group closed 3 and opened 1 O`KEY hypermarket.
Additionally, 3 O`KEY stores underwent modernisation and selling space
optimisation in H1 2023.
In H1 2023, the Group opened 11 discounters (net of closures) under the
DA! brand.
The Group increased its total number of stores by 39 YoY (net of
closures), and the selling space grew by 9,959 sq m YoY in H1 2023.
As of 30 June 2023, the Group operated 282 stores, including 77 O`KEY
hypermarkets and 205 DA! discounters, with a total selling space of
648,597 sq m.
For more information, please contact:
Natalya Belyavskaya
Head of Investor Relations
+7 495 663 6677 ext. 266
3 Natalya.Belyavskaya@okmarket.ru
4 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 30 June 2023, we operated 282 stores across Russia (77 hypermarkets
and 205 discounters) with a total selling space of 648,597 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 has e-commerce pick-up points in 31 O’KEY
hypermarkets: nine in Moscow, seventeen 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
21,900 people.
In 2022, the Group’s revenue amounted to RUB 202.2 bn, and EBITDA reached
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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5 1 Hereinafter, net retail revenue, LFL net retail revenue, and the
average ticket metrics are provided net of VAT.
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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: IR
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
Sequence No.: 264499
EQS News ID: 1703369
End of Announcement EQS News Service
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References
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