REG-O'KEY Group S.A. O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q3 2023

O'Key SAAnnouncement

03/11/2023 07:00

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   O'KEY Group S.A. (OKEY)
   O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q3 2023

   03-Nov-2023 / 07:45 CET/CEST

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   Press release

   3 November 2023

    

               O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q3 2023

                                        

   O`KEY Group S.A. (AIX, LSE, MOEX: OKEY, the “Group” or the “Company”), one
   of  Russia’s  leading  food  retailers,  today  announces  its   unaudited
   operating results for  the third quarter  (Q3) and the  first nine  months
   (9M) of 2023.

    

   All materials  published by  the Group  are available  on its  website  at
   www.okeygroup.lu.

    

    

   Q3 2023 operating highlights

     • Group net retail revenue 1  1  increased by 2.2% YoY to RUB 48.8 bn in
       Q3 2023, driven by discounter and online revenue growth.
     • O`KEY hypermarkets’  net  retail  revenue decreased  by  4.1%  YoY  to
       RUB 33.0 bn in Q3 2023 on the back of  a 2.9% YoY selling space and  a
       1.8% LFL revenue decrease.
     • O`KEY’s total  online  sales  grew  by 16.9%  YoY  to  RUB 1.5 bn  and
       accounted for 4.6% of the hypermarkets’ net retail revenue in Q3 2023.
     • DA!  discounters’  net  retail  revenue  increased  by  18.3%  YoY  to
       RUB 15.9 bn in Q3 2023, led mainly by store openings.

   DA! discounters’ share  in the  Group’s revenue  rose by  4.4 pps YoY  and
   reached 32.5% in Q3 2023.

    

   9M 2023 operating highlights

     • Group net retail revenue rose by 1.9% YoY to RUB 147.3 bn.
     • O`KEY hypermarkets’ net  retail revenue  declined by  4.4% YoY to  RUB
       101.0 bn.
     • O`KEY’s total online sales grew by 23.2% YoY to RUB 5.3 bn and reached
       5.3% of O`KEY's net retail revenue.
     • DA! discounters’ net retail revenue rose by 18.9% YoY to  RUB 46.3 bn,
       driven by  a 2.0%  LFL net  retail revenue  increase and  the  chain’s
       selling space growth.
     • In 9M 2023, the Group opened  25 DA! stores. As of 30 September  2023,
       the Group operated 219 DA! discounters and 77 O’KEY hypermarkets  with
       a total selling space of 659 thousand sq m.

    

    

    

    

    

    

   Operating review

   Group Net Retail Revenue in Q3 and 9M 2023

   Net Retail Revenue, RUB mln  Q3 2023 Q3 2022 YoY, % 9M 2023 9M 2022 YoY, %
   (excl. VAT)
   O`KEY Group                   48,849  47,797   2.2% 147,312 144,612   1.9%
   O'KEY hypermarkets            32,960  34,369 (4.1%) 101,013 105,669 (4.4%)
   DA! discounters               15,889  13,428  18.3%  46,298  38,942  18.9%

    

   Group Net Retail Revenue Metrics for Q3 and 9M 2023

                         Q3 2023 vs. Q3 2022          9M 2023 vs. 9M 2022
   Net Retail       Net retail          Average      Net             Average
   Revenue, %        revenue   Traffic   ticket    retail   Traffic  ticket
                                                   revenue
   O`KEY Group            2.2%    1.3%       0.8%      1.9%    2.7%    (0.8%)
   O'KEY                (4.1%)  (7.8%)       4.0%    (4.4%)  (5.6%)      1.2%
   hypermarkets
   DA! discounters       18.3%   14.3%       3.6%     18.9%   15.0%      3.4%

    

   Group Like-for-like Net Retail Revenue Performance in Q3 and 9M 2023

                              Q3 2023 vs. Q3 2022       9M 2023 vs. 9M 2022
   LFL Net Retail Revenue, Net retail         Average   Net           Average
   %                        revenue   Traffic ticket  retail  Traffic ticket
                                                      revenue
   O`KEY Group                 (1.3%)  (5.4%)    4.4%  (2.2%)  (3.9%)    1.8%
   O'KEY hypermarkets          (1.8%)  (6.9%)    5.5%  (3.8%)  (5.7%)    2.0%
   DA! discounters               0.1%  (3.2%)    3.4%    2.0%  (1.3%)    3.4%

   Note: Q3 2023 LFL metrics are calculated based on 78 O`KEY and 167 DA!
   stores.

    

    

   The Group’s net retail revenue increased by 2.2% YoY to RUB 48,849 mln  in
   Q3 2023, led by DA! discounter and online sales growth.

   Net  retail  revenue  of  O`KEY  hypermarkets  declined  by  4.1%  YoY  to
   RUB 32,960 mln in Q3 2023. This was mainly due to a 2.9% YoY selling space
   reduction in 9M 2023, as well as  a 1.8% LFL revenue decrease in  Q3 2022.
   However, O’KEY’s LFL revenue performance  improved in Q3 2023 compared  to
   1H 2023, as the YoY dynamics  of both customer traffic and average  ticket
   had been recovering on a monthly basis over Q3 2023.

   O`KEY’s total  online sales  increased by  16.9% YoY  to RUB 1,504 mln  in
   Q3 2023. The share  of total online  sales in O`KEY’s  net retail  revenue
   grew by 0.9 pps  YoY to 4.6%  in Q3 2023. As  of the end  of Q3 2023,  the
   Company had 35 e-commerce points for online order pick-up and delivery  in
   O`KEY hypermarkets from Moscow, St. Petersburg, Sochi and Krasnodar.

   DA! discounters’ net retail revenue grew by 18.3% YoY to RUB 15,889 mln in
   Q3 2023, showing  a  pickup  in  growth rate  compared  to  1H  2023.  DA!
   discounters’ LFL revenue  was almost flat  YoY, increasing by  0.1% in  Q3
   2023 (against the high base of 26.1% LFL revenue growth in Q3 2022).

   In response to changes in consumer demand in 2023, in Q3, DA!  discounters
   focused on family packaging  offering the best  price, the development  of
   the middle segment in all categories, as well as worked on the quality  of
   own bakery,  taking  into account  changes  in raw  material  prices.  The
   emphasis was also made  on improving the efficiency  of logistics and  the
   availability of goods on the shelves.

    

   The DA! team sees own brands as  the main driver for sales growth. For  9M
   2023, in order to  ensure sustainable business growth,  DA! worked on  the
   diversification of supply chain, expanding the range of private labels and
   exclusive imported goods, and also continued  to adhere to the "every  day
   low prices" (EDLP) pricing approach.

   The discounters’ share in the Group’s revenue increased by 4.4 pps YoY  to
   32.5% in Q3 2023. The Company expects the discounter segment to remain one
   of the key growth drivers for the Group.

    

   Group Stores and Selling Space in 9M 2023

   Stores and Selling Space        9M 2023 9M 2022 Net change Change, %
   Number of stores, EoP               296     251         45     17.9%
   O'KEY hypermarkets                   77      79        (2)    (2.5%)
   DA! discounters                     219     172         47     27.3%
   Total selling space (sq m), EoP 658,696 642,015     16,681      2.6%
   O'KEY hypermarkets              510,768 525,829   (15,061)    (2.9%)
   DA! discounters                 147,928 116,186     31,742     27.3%

    

   In 9M 2023,  as part  of  the ongoing  real  estate portfolio  review  and
   optimisation,  the  Group  closed  3  and  opened  1  O`KEY   hypermarket.
   Additionally,  3  O`KEY  stores  accomplished  modernisation  and  related
   optimisation of their selling space in 9M 2023.

   In 9M 2023, the  Group opened 25 discounters  (net of closures) under  the
   DA! brand.

   The Group  increased  its  total  number  of stores  by  45  YoY  (net  of
   closures), with the selling space growing by 16,681 sq m YoY in 9M 2023.

   As of 30 September 2023, the Group operated 296 stores, including 77 O`KEY
   hypermarkets and  219 DA!  discounters,  with a  total  selling  space  of
   658,696 sq m.

    

   For more information, please contact:

    

   Natalya Belyavskaya

   Head of Investor Relations

   +7 495 663 6677 ext. 266
                                       
    2 Natalya.Belyavskaya@okmarket.ru

    3 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 September  2023, the  Group  operated 296 stores  across  Russia
   (77 hypermarkets and  219 discounters)  with  a  total  selling  space  of
   658,696 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 35 O’KEY  hypermarkets: twelve in  Moscow,
   eighteen 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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    4  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: QRT
   TIDM:          OKEY
   LEI Code:      213800133YYU23T4L791
   Sequence No.:  282412
   EQS News ID:   1764027


    
   End of Announcement EQS News Service

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References

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