REG-O'KEY Group S.A. O`KEY GROUP REPORTS 3.1% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS DELIVER 25.1% REVENUE GROWTH IN Q1 2023
16/05/2023 07:15
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O'KEY Group S.A. (OKEY)
O`KEY GROUP REPORTS 3.1% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS
DELIVER 25.1% REVENUE GROWTH IN Q1 2023
16-May-2023 / 08:00 CET/CEST
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Press release
16 May 2023
O`KEY GROUP REPORTS 3.1% NET RETAIL REVENUE GROWTH,
DA! DISCOUNTERS DELIVER 25.1% REVENUE GROWTH IN Q1 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 first quarter (Q1) of 2023.
All materials published by the Group are available on our website at
1 www.okeygroup.lu.
Q1 2023 operating highlights
• Group net retail revenue 2 1 increased by 3.1% YoY to RUB 48.7 bn in
Q1 2023, led by revenue growth at discounters and O’KEY online sales.
• O`KEY hypermarkets’ net retail revenue decreased by 3.8% YoY to
RUB 34.5 bn in Q1 2023 vs RUB 35.9 bn in Q1 2022 on the back of a 5.9%
YoY LFL revenue decrease. The decline resulted mainly from a high
comparable base in February-March 2022, added by a year-on-year
inflation slow down in Q1 2023.
• Total online sales grew by 19.1% YoY to RUB 1.9 bn and reached 5.6% of
O`KEY’s net retail revenue in Q1 2023.
• DA! discounters’ showed net retail revenue growth of 25.1% YoY to
RUB 14.2 bn in Q1 2023. This was led by both LFL net retail revenue
increase and the chain’s expansion. DA! LFL revenue grew by 8.1% YoY
in Q1 2023 (on the top of 33.0% LFL growth in Q1 2022).
• DA! discounters’ share in the Group’s revenue rose by 5.1 pps YoY to
29.2% in Q1 2023.
Key events after the reporting date
• In April 2023, the Group opened a new hypermarket under the O’KEY
brand in St Petersburg.
Read more about it at
3 https://www.okeygroup.lu/press-center/press-releases/2023/1849/.
• In April 2023, the Company also opened 6 new DA! discounters in
Russia’s Central Federal District.
Operating review
Group Net Retail Revenue in Q1 2023
Net Retail Revenue, RUB mln (excl. VAT) Q1 2023 Q1 2022 YoY, %
O’KEY Group 48,725 47,252 3.1%
O'KEY hypermarkets 34,506 35,886 (3.8%)
DA! discounters 14,219 11,366 25.1%
Group Net Retail Revenue Metrics for Q1 2023
Net Retail Revenue, % Q1 2023 vs Q1 2022
Net retail revenue Traffic Average ticket
O’KEY Group 3.1% 4.9% (1.7%)
O'KEY hypermarkets (3.8%) (3.1%) (0.8%)
DA! discounters 25.1% 18.2% 5.8%
Group LFL Net Retail Revenue Performance in Q1 2023
Q1 2023 vs Q1 2022
LFL Net Retail Revenue, % LFL net retail LFL traffic LFL average
revenue ticket
O’KEY Group (2.6%) (2.2%) (0.4%)
O'KEY hypermarkets (5.9%) (4.9%) (1.1%)
DA! discounters 8.1% 2.3% 5.7%
Note: Q1 2023 LFL metrics are calculated based on 75 O`KEY and 151 DA!
stores.
The Group’s net retail revenue grew by 3.1% YoY to RUB 48,725 mln, led
mainly by discounters’ LFL growth and expansion, supported by an increase
in O’KEY’s online sales in Q1 2023.
Net retail revenue of O`KEY hypermarkets declined by 3.8% YoY to
RUB 34,506 mln in Q1 2023. The decline was attributable to a 5.9% decrease
in O’KEY LFL net retail revenue mainly on the back of a high comparable
base in Q1 2022 when customers were stock-piling some essential goods and
non-food products. In addition, food inflation in Russia slowed down in
Q1 2023 from high base in 2022. Thus, according to the Russian Federal
State Statistics Service, food inflation in March 2023 decreased to 3.5%
compared to 18.0% in March 2022.
As consumers have become more price sensitive, increasing demand for
cheaper products and private labels, O’KEY continued to develop its
product range and enhance its own branded products. The share of private
labels in O’KEY revenue increased to 7.5% in Q1 2023 from 7.0% in Q1 2022.
O’KEY also continuously works on the ‘fresh’ proposition to offer our
customers the variety of high-quality products at affordable prices. The
assortment of ‘fresh’, including fish, meat, poultry, dairy, pastries,
ready-to eat meals, fruit and vegetables amounted to c.6,000 SKUs and
their share in O’KEY revenue accounted for 51.6% in Q1 2023.
O’KEY total online sales increased by 19.1% YoY to RUB 1,927 mln in
Q1 2023. The share of total online sales in O`KEY’s net retail revenue
grew by 1.1 pps YoY and reached 5.6% in Q1 2023.
O’KEY continues to optimise and modernise its store portfolio. In April
2023, the Group opened a new hypermarket with 5,215 sq m of selling space
in St Petersburg. The store is based on a renewed concept that the Group
has been implementing since 2020 to upgrade existing and new hypermarkets.
DA! discounters delivered a 25.1% YoY increase in net retail revenue to
RUB 14,219 mln in Q1 2023, driven by a 8.1% LFL revenue growth, as well as
the chain’s expansion. The LFL revenue growth was led by both traffic and
average ticket, offset partially by an effect of high comparable revenue
in Q1 2022. During the Q1 2023, DA! further improved its own brands’
recepies and packaging, developed its fresh offer and focused on the Every
Day Low Price approach, keeping products accessible to all customers. The
share of goods under own brands reached 51% in the discounters’ revenue,
while the share of fresh products amounted to 63% in Q1 2023.
The discounters’ share in the Group’s revenue rose by 5.1 pps YoY and
reached 29.2% in Q1 2023. The Company expects discounter segment to remain
one of the key growth drivers for the Group.
Group Stores and Selling Space in Q1 2023
Stores and Selling Space Q1 2023 Q1 2022 Net change Change, %
Number of stores, EoP 276 232 44 19.0%
O'KEY hypermarkets 78 75 3 4.0%
DA! discounters 198 157 41 26.1%
Total selling space (sq m), EoP 651,659 619,068 32,591 5.3%
O'KEY hypermarkets 518,530 512,994 5,536 1.1%
DA! discounters 133,129 106,074 27,055 25.5%
In Q1 2023, as part of ongoing real estate portfolio optimisation, the
Group closed one O`KEY store in Surgut.
As of 31 March 2023, the Group operated 78 O`KEY hypermarkets and 198 DA!
discounters, with a total selling space of 651,659 sq m.
In April 2022, the Group opened a new O’KEY hypermarket in St Petersburg,
bringing the total number of O`KEY hypermarkets in the North-West Region
to 27, including 25 stores in St Petersburg.
In April 2022, the Group also opened 6 new DA! discounters in Central
Russia.
For more information, please contact:
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 March 2023, we operated 276 stores across Russia (78 hypermarkets
and 198 discounters) with a total selling space of 651,659 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 nine e-commerce pick-up points in Moscow
and seventeen e-commerce pick-up points in St Petersburg. 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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6 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 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.
══════════════════════════════════════════════════════════════════════════
ISIN: US6708662019
Category Code: QRF
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
OAM Categories: 3.1. Additional regulated information required to be
disclosed under the laws of a Member State
Sequence No.: 243829
EQS News ID: 1633623
End of Announcement EQS News Service
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References
Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=165d1384cdd074f733b492a43c94ae37&application_id=1633623&site_id=reuters8&application_name=news
2. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_35PXlnvz.html#_ftn1
3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=c15a3742b5f9e4a1b870dfaa053873eb&application_id=1633623&site_id=reuters8&application_name=news
4. mailto:Natalya.Belyavskaya@okmarket.ru
5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=165d1384cdd074f733b492a43c94ae37&application_id=1633623&site_id=reuters8&application_name=news
6. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_35PXlnvz.html#_ftnref1
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