Press release
28 October 2022
O`KEY GROUP NET RETAIL INCOME INCREASES 10%,
GIVES! DISCOUNTS PROVIDE 54.8% REVENUE GROWTH IN Q3 2022
O`KEY Group SA (LSE, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, has announced its unaudited operating results for the third quarter (Q3) and the first nine months (9M) of 2022.
All materials published by the Group are available on its website www.okeygroup.lu.
Q3 2022 Operational Highlights
- Group net retail income[1] increased 10.0% yoy to RUB 47.8 bn, primarily driven by LFL’s performance of discount stores and O`KEY’s online sales growth and supported by discount store openings.
- O`KEY hypermarkets net retail revenue decreased by 1.2% to RUB 34.4 billion in the third quarter 2022, mainly due to a year-over-year drop in footfall in shopping malls as a result of ongoing changes in the retail brand portfolio. However, the decline in LFL traffic was almost offset by additional revenue from four new O`KEY stores opening in April 2022.
- GIVES! discounters again showed one of the fastest growth rates, with net retail revenue rising 54.8% year-on-year to reach RUB 13.4 billion The increase was led by LFL net retail revenue growth of 26.1% and chain expansion.
[1] Going forward, net retail revenue, LFL net retail revenue and average ticket metrics are provided exclusive of VAT.
9M 2022 Operational Highlights
- Group net retail revenue increased by 10.3% yoy to RUB 144.6 billion
- O`KEY Net retail revenue from hypermarkets decreased by 1.1% YoY to RUB 105.7 billion.
- O’KEY’s total online sales increased by 44.3% year-on-year to 4.3 billion rubles and accounted for 4.1% of O`KEY’s net retail revenue.
- GIVES! Discount stores net retail revenue grew 60.2% yoy to RUB 38.9 bn, driven by LFL net retail revenue growth of 32.0% and chain expansion.
- The Group opened 20 DA! discount stores (net of closings) in 9M 2022.
- GIVES! Discount stores’ share of Group net retail revenue increased by 8.4 pps YoY at 26.9%.
- The Group expects to receive half of its income from discount stores in the medium term.
- In 2022, the Group plans to open up to 45 new DA! discount stores and has nine O`KEY hypermarkets in its portfolio in an updated concept.
operational review
Group net retail income in the third quarter and the nine months 2022
|
Net retail income, million RUB (excluding VAT) |
Q3 2022 |
Q3 2021 |
YoY, % |
9M 2022 |
9M 2021 |
YoY, % |
|
O’KEY Group |
47,797 |
43,451 |
10.0% |
144,612 |
131,149 |
10.3% |
|
O’KEY hypermarkets |
34,369 |
34,777 |
(1.2%) |
105,669 |
106,839 |
(1.1%) |
|
GIVES! discount |
13,428 |
8,673 |
54.8% |
38,942 |
24,310 |
60.2% |
Group net retail revenue metrics for the third quarter and the ninth month 2022
|
Net retail revenue, % |
Q3 2022 vs. Q3 2021 |
9M 2022 vs. 9M 2021 |
||||
|
Net retail income |
Traffic |
average ticket |
Net retail income |
Traffic |
average ticket |
|
|
O’KEY Group |
10.0% |
6.2% |
3.6% |
10.3% |
5.3% |
4.8% |
|
O’KEY hypermarkets |
(1.2%) |
(8.1%) |
7.5% |
(1.1%) |
(9.7%) |
9.6% |
|
GIVES! discount |
54.8% |
36.0% |
13.8% |
60.2% |
39.9% |
14.5% |
Comparable Group Net Retail Revenue Performance in Q3 and 9 Months 2022
|
LFL Net Retail Revenue, % |
Q3 2022 vs. Q3 2021 |
9M 2022 vs. 9M 2021 |
||||
|
Net retail income |
Traffic |
average ticket |
Net retail income |
Traffic |
average ticket |
|
|
O’KEY Group |
2.5% |
(2.8%) |
5.5% |
4.1% |
(2.5%) |
6.7% |
|
O’KEY hypermarkets |
(3.3%) |
(9.1%) |
6.4% |
(23%) |
(10.0%) |
8.6% |
|
GIVES! discount |
26.1% |
10.4% |
14.2% |
32.0% |
14.7% |
15.0% |
Note: Q3 2022 LFL metrics are calculated based on 74 O`KEY and 126 GIVES! stories.
Group net retail revenue increased by 10.0% yoy to RUB 47,797 million, led by discount store and online revenue growth and supported by the expansion of both store chains.
O`KEY hypermarkets net retail revenue decreased by 1.2% yoy to RUB 34,369 million in the third quarter 2022, due to a 3.3% decline in O`KEY’s LFL net retail revenue as a result of a temporary decline in footfall at shopping centers amid changes in tenant mix.
in the third trimester 2022, shopping centers in Moscow and St. The Petersburg regions continued to face a year-over-year decline in customer traffic due to geopolitical and macroeconomic turmoil. To support traffic to these locations, landlords continue to reshape their tenant portfolios, attracting new partners and brands.
In August 2022, O`KEY reopened after the renovation of its hypermarket in Sochi, updated according to the latest trends in the retail industry and global best practices. In the upgraded hypermarket, more space was allocated to the fresh and ultra-fresh categories, increasing their share of the overall product range to 20%, while the store’s total selling space was optimized.
O`KEY’s total online sales, including through in-house and third-party delivery services, increased 26.2% year-on-year to RUB 1,286 million in the third quarter 2022. O`KEY’s share of total online sales in net retail revenue grew by 0.8 YoY pps to 3.7% in Q3 2022.
in the third trimester 2022, AD! Discount stores net retail revenue expanded 54.8% yoy to RUB 13,428 million, led by LFL revenue growth of 26.1% and an 18.2% year-over-year increase in the chain’s selling space during the quarter. LFL revenue growth was driven by both customer traffic and average ticket yield thanks to increased DA! brand awareness, as well as the chain’s range of high-quality products, with a special focus on its own brands, at the best possible prices. The share of these products in the discount stores’ net retail revenue amounted to approx. 50% in the third trimester 2022.
Discount stores’ share of Group net retail revenue increased by 8.1 YoY pps to 28.1% in Q3 2022. The Company awaits the DA! discount store chain remains a key driver of Group revenue and profit growth.
Group Stores and Sales Space in 9M 2022
|
Stores and Sales Spaces |
9M 2022 |
9M 2021 |
net change |
Change, % |
|
Number of stores, EoP |
251 |
206 |
Four. Five |
21.8% |
|
O’KEY hypermarkets |
79 |
77 |
two |
2.6% |
|
GIVES! discount |
172 |
129 |
43 |
33.3% |
|
Total sales space (m2), EoP |
642,015 |
604,956 |
37,059 |
6.1% |
|
O’KEY hypermarkets |
525,829 |
517,566 |
8,263 |
1.6% |
|
GIVES! discount |
116,186 |
87,390 |
28,796 |
33.0% |
in 9M In 2022, as part of an ongoing review and optimization of the real estate portfolio, the Group closed three O`KEY stores and opened four hypermarkets in central Russia. In addition, the sales space of a hypermarket in Sochi was optimized in the course of its renovation and was reduced by 2,093 squares ma 4607 squares meter.
in 9M 2022, the Group also opened 20 discount stores (net of closings) under the DA! brand.
from 30 September 2022, the Group operated 79 O`KEY and 172 hypermarkets GIVES! discount stores with a total selling space of 642,015 squares meter.
For more information contact:
|
For investors
Natalia Belyavskaya Head of Investor Relations +7 495 663 6677 extension 266 |
for the media
alla ivantsov Head of public relations +7 495 663 6677 ext. 496
|
ABOUT THE O`KEY GROUP
O`KEY Group SA (LSE, MOEX: OKEY) is one of Russia’s leading grocery retailers, operating hypermarkets under the O`KEY brand and discount stores under DA! brand.
As of September 30, 2022, the Group operated 251 stores in Russia (79 hypermarkets and 172 discount stores) with a total selling space of 642,015 square meters. The company opened its first hypermarket in St. Petersburg in 2002 and has since shown 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 collection points in Moscow and fifteen e-commerce collection points in St. Petersburg. In 2015, the Group launched the first discount chain in Russia under DA! brand. The Group operates five distribution centers in Russia: three in Moscow and two in Saint Petersburg. The Group employs more than 22,000 people.
In 2021, the Group’s revenue amounted to RUB 187.1 billion, while EBITDA reached RUB 15.5 billion.
The shareholding structure of the O`KEY Group is as follows: NISEMAX Co Ltd – 49.11%. GSU Ltd: 34.14%, Free float and other owners: 16.75%.
DISCLAIMER
These materials contain statements about future events and expectations that are forward-looking statements. These statements often contain words such as ‘expects’ and ‘anticipates’ and words of similar meaning. 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 actual results, performance or achievements. future. 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 construed to imply any indication, assurance or guarantee that the assumptions on which such projections, expectations, estimates or prospects have been based future. elaborated are correct or exhaustive or, in the case of the assumptions, fully expressed in this announcement. We undertake no obligation to update any forward-looking statements contained in this document to reflect actual results, changes in assumptions, or changes in factors affecting these statements.
