REG-O'KEY Group S.A. O'KEY GROUP NET RETAIL REVENUE GROWS BY 1.9%, DA! DELIVERS 27% REVENUE GROWTH AND ONLINE SALES DOUBLE IN Q1 2021
28/04/2021 07:50
============
O'KEY Group S.A. (OKEY)
O'KEY GROUP NET RETAIL REVENUE GROWS BY 1.9%, DA! DELIVERS 27% REVENUE
GROWTH AND ONLINE SALES DOUBLE IN Q1 2021
28-Apr-2021 / 08:45 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.
══════════════════════════════════════════════════════════════════════════
Press release
28 April 2021
O'KEY GROUP NET RETAIL REVENUE GROWS BY 1.9%, DA! DELIVERS 27% REVENUE
GROWTH AND ONLINE SALES DOUBLE IN Q1 2021
O'KEY Group S.A. (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 2021.
All materials published by the Group are available on its website
1 www.okeygroup.lu.
Q1 2021 operating highlights
• Group net retail revenue 2 1 increased by 1.9% YoY to RUB 43,232 mln
in Q1 2021, driven by DA! discounters' revenue growth.
• DA! discounters delivered a 27.0% YoY net retail revenue growth to RUB
7,214 mln in Q1 2021. This was led by a 14.2% LFL net retail revenue
increase and a 15.8% YoY expansion of selling space in Q1 2021.
• Net retail revenue at O'KEY hypermarkets declined by 2.0% YoY to RUB
36,019 mln in Q1 2021, primarily due to a high comparable base of
March 2020 caused by a pandemic-related spike in consumer demand and a
stockpiling trend for certain food and non-food products.
• The Group's online sales grew by 110.6% YoY to RUB 984 mln in Q1 2021
and reached 2.7% of O'KEY's net retail revenue.
• The Group expects that the discounters and online business will
continue to lead the total growth and confirms its expansion plans of
35 to 40 DA! store openings in 2021.
Armin Burger, Chief Executive Officer at O'KEY Group, commented:
"We are satisfied with the Group's operational results in the first
quarter of 2021, especially given the challenging comparables from March
2020, with its panicked surge in consumer demand amid the introduction of
pandemic restrictions."
"DA! discounters continued to lead our overall growth and achieved nearly
17% of the Group's revenue in Q1 2021. DA! delivered a solid top-line
performance, showing a 27.0% year-on-year increase in net retail revenue
and a 14.2% LFL growth, in spite of a very high base of 2020. The success
of our discounter business is at the heart of our expansion plans: as we
have previously reported, we intend to open from 35 to 40 new stores in
2021. We remain focused on keeping our internal operations highly
efficient, and further improving the product range and supply to
strengthen our market position and boost profitability."
"We are definitely pleased with the operational results demonstrated by
O'KEY hypermarkets in the first quarter of 2021, which, keeping in mind
the base effect of March 2020, came above our expectations. Our focus on
fresh offer and own production, well-chosen product range at competitive
prices, and high level of service underpin our ability to retain customer
loyalty even in a tough and fast-changing market environment. We are
successfully rolling out our recently launched hypermarket concept and
will have up to five O'KEY stores modernised by the end of 2021, with the
remaining hypermarkets to follow suit in the medium term."
"We have been capitalising on current market trends and continue to build
up our e-commerce platform and to expand the brand's digital presence,
developing an omni-channel shopping environment and partnering with
delivery operators. The Group's online revenue more than doubled
year-on-year, reaching 2.7% of O'KEY's revenue in the first quarter of
2021."
"The proven resilience and stability of the Group's well-balanced business
model based on modern hypermarkets, efficient and fast-growing discounters
and an advanced online platform gives us every confidence in our outlook
for 2021: we expect a low-single-digit LFL increase at O'KEY and a
continuous double-digit LFL growth at DA!."
Operating review
Group Net Retail Revenue for Q1 2021
Net Retail Revenue, RUB mln (excl. VAT) Q1 2021 Q1 2020 YoY, %
O'KEY Group 43,232 42,426 1.9%
O'KEY hypermarkets 36,019 36,744 (2.0%)
DA! discounters 7,214 5,683 27.0%
Group LFL Net Retail Revenue Dynamics for Q1 2021
LFL Net Retail Revenue, % Q1 2021 vs. Q1 2020
Net retail revenue Traffic Average ticket
O'KEY Group (0.3%) (11.7%) 13.0%
O'KEY hypermarkets (2.5%) (14.2%) 13.7%
DA! discounters 14.2% (3.6%) 18.4%
Note: Q1 2021 LFL metrics calculated based on 76 O'KEY and 95 DA! stores.
Group Net Retail Revenue Monthly Metrics for Q1 2021
January February 3 2 March Q1 2021
Net retail revenue, % YoY
O'KEY Group 7.0% 3.1% (3.1%) 1.9%
O'KEY hypermarkets 2.2% (1.4%) (5.9%) (2.0%)
DA! discounters 40.8% 32.7% 13.2% 27.0%
Customer traffic, % YoY
O'KEY Group (10.3%) (13.3%) (3.6%) (9.0%)
O'KEY hypermarkets (15.9%) (18.8%) (7.8%) (14.1%)
DA! discounters 9.7% 4.9% 9.2% 8.0%
Average ticket, % YoY
O'KEY Group 19.3% 18.9% 0.5% 12.0%
O'KEY hypermarkets 21.5% 21.4% 2.1% 14.1%
DA! discounters 28.3% 26.5% 3.7% 17.6%
The Group's LFL net retail revenue remained almost flat YoY, showing a
slight decline of 0.3%, while net retail revenue rose by 1.9% YoY to RUB
43,232 mln in Q1 2021.
DA! delivered a 27.0% YoY increase in net retail revenue to RUB 7,214 mln
in Q1 2021, driven by a 14.2% LFL revenue growth and a 15.8% YoY selling
space expansion.
Net retail revenue at O'KEY hypermarkets declined by 2.0% YoY to RUB
36,019 mln in Q1 2021, and LFL revenue decreased by 2.5% YoY. That was
mainly due to a high comparable base of March 2020, when we saw
extraordinarily strong demand for some product categories which consumers
tended to stockpile in the face of the COVID-related restrictions and
lockdown.
In Q1 2021, O'KEY continued to work on improving its customer proposition.
The high quality of 'ultra-fresh' and 'fresh' products and own production
remained our key focus, with these products accounting for over 50% of
O'KEY's revenue in Q1 2021.
O'KEY is also reviewing its private label range to improve product quality
and to relaunch packaging and design, aiming to increase sales and
profitability in each category. The O'KEY and DA! chains collaborate to
unlock potential synergies in own brands expertise, product development
and supply. The share of private labels amounted to 7.2% of O'KEY's net
retail revenue, and to 50.3% of the discounters' net retail revenue in Q1
2021.
The Group continued transforming its hypermarkets to further improve
customer service and shopping experience. By the end of 2021, the Group
will have from four to five O'KEY hypermarkets modernised in line with the
new concept.
In 2020, the Group expanded online operations for its hypermarkets across
all regions of their presence through partnerships with delivery
operators. The Group continues to further develop its own e-commerce
platform, with a particular focus on the key cities of Moscow and St.
Petersburg.
In Q1 2021, the revenue from the online business grew by 110.6% YoY to RUB
984 mln.
Group Stores and Selling Space Dynamics in Q1 2021
Stores and Selling Space Q1 2021 Q1 2020 Net change Change (%)
Number of stores, EoP 195 178 17 9.6%
O'KEY hypermarkets 77 78 (1) (1.3%)
DA! discounters 118 100 18 18.0%
Total selling space (sq m), EoP 599,536 598,308 1,228 0.2%
O'KEY hypermarkets 519,369 529,055 (9,686) (1.8%)
DA! discounters 80,167 69,253 10,914 15.8%
In Q1 2021, the number of stores remained unchanged, and, as of March 31,
2021, the Group operated 77 O'KEY hypermarkets and 118 DA! discounters,
with a total selling space of 599,536 sq m.
The Group plans to open from 35 to 40 DA! stores in 2021.
For further information please contact:
For investors
Natalya Belyavskaya
Head of Investor Relations
+7 495 663 6677 ext. 266
4 Natalya.Belyavskaya@okmarket.ru
5 www.okeygroup.lu
For media
Alla Golovatenko
Public Relations Manager
+7 495 663 6677 ext. 496
6 alla.golovatenko@okmarket.ru
7 www.okeygroup.lu
ABOUT O'KEY GROUP
As of March 31, 2021, the Group operated 195 stores across Russia (77
hypermarkets and 118 discounters) with total selling space of 599,536
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 six 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 2020, Group's revenue amounted to RUB 174.3 billion, while EBITDA
reached RUB 14.8 billion.
The O'KEY shareholder structure is as follows: NISEMAX Co Ltd - 44.84%,
GSU Ltd - 29.53%, free float - 25.63%.
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 which 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.
══════════════════════════════════════════════════════════════════════════
^ 1 Hereinafter, net retail revenue, LFL net retail revenue, and the
average ticket metrics are provided net of VAT.
8 2 Note: February year-on-year sales dynamics is not adjusted for a
leap-year effect, i.e. there was an additional trading day in February
2020 compared to February 2021.
══════════════════════════════════════════════════════════════════════════
ISIN: US6708662019
Category Code: QRF
TIDM: OKEY
LEI Code: 213800133YYU23T4L791
Sequence No.: 101565
EQS News ID: 1189578
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
9 fncls.ssp?fn=show_t_gif&application_id=1189578&application_name=news&site_id=reuters8
References
Visible links
1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=165d1384cdd074f733b492a43c94ae37&application_id=1189578&site_id=reuters8&application_name=news
2. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_18BHITrz.html#_ftn1
3. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_18BHITrz.html#_ftn2
4. mailto:Natalya.Belyavskaya@okmarket.ru
5. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=165d1384cdd074f733b492a43c94ae37&application_id=1189578&site_id=reuters8&application_name=news
6. mailto:alla.golovatenko@okmarket.ru
7. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=165d1384cdd074f733b492a43c94ae37&application_id=1189578&site_id=reuters8&application_name=news
8. file:///data/ucdp/tmp/xhtmlconvert_parsn_eqs_18BHITrz.html#_ftnref2
============Recent news on O'Key SA
See all newsREG-O'KEY Group S.A. NOTICE FOR O’KEY GROUP SHAREHOLDERS
AnnouncementREG-O'KEY Group S.A. O`KEY GROUP REPORTS 5.2% NET RETAIL REVENUE GROWTH, DA! DISCOUNTERS REVENUE GREW 22.1% IN Q4 2023
AnnouncementREG-O'KEY Group S.A. O`KEY GROUP ANNOUNCES CHANGES TO ITS CORPORATE MANAGEMENT
AnnouncementREG-O'KEY Group S.A. O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q3 2023
AnnouncementREG-O'KEY Group S.A. O`KEY GROUP’S GDRs RECEIVE PRIMARY LISTING STATUS ON MOSCOW EXCHANGE
Announcement