from O'KEY Group S.A.
O`KEY GROUP NET RETAIL REVENUE INCREASES BY 11.5%, DA! DISCOUNTERS REVENUE GROWTH ACCELERATES TO 68.5% IN Q2 2022
O'KEY Group S.A. (OKEY)
Press release O`KEY GROUP NET RETAIL REVENUE INCREASES BY 11.5%, 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 second quarter (Q2) and the first six months (H1) of 2022. All materials published by the Group are available on its website www.okeygroup.lu. Q2 2022 operating highlights
H1 2022 operating highlights
Key events after the reporting date
The full text of the announcement is available at https://okeygroup.lu/press-center/press-releases/2022/1807/. Operating review Group Net Retail Revenue in Q2 and H1 2022
Group Net Retail Revenue Metrics for Q2 and H1 2022
Group Like-for-like Net Retail Revenue Performance in Q2 and H1 2022
Note: Q2 2022 LFL metrics are calculated based on 74 O`KEY and 120 DA! stores.
The Group’s net retail revenue rose by 11.5% YoY to RUB 49,562 mln, driven mainly by DA! discounters and O’KEY online revenue growth and supported by both the hypermarket and discounter chains’ expansions. Net retail revenue of O`KEY hypermarkets decreased by 1.7% YoY to RUB 35,414 mln in Q2 2022. The decline was due to a 3.8% decrease in O’KEY’s LFL net retail revenue in the quarter, which was largely offset by new store openings in April 2022. During Q2 2022, we kept our promotional activity in hypermarkets limited to secure sufficient stock levels, ensure full on-shelf availability, and protect our margins in a highly inflationary and turbulent environment. The average ticket growth was supported by limited promos and inflation and offset partially by a smaller average basket and changes in the sales mix on the shelves. However, we see that customers are adapting to the new product offering and the environment, which has already had a positive impact on our sales dynamics in July. In Q2 2022, shopping malls in Moscow and St Petersburg and their surroundings saw decline in customer footfall, both YoY and QoQ, due to the geopolitical and global economic headwinds the market faced. We see that, in order to support traffic in shopping malls, landlords are actively reshaping their portfolios of tenants attracting new partners and brands. O’KEY’s total online sales, including our own and external delivery services, rose by 42.8% YoY to RUB 1,427 mln in Q2 2022. The share of total online sales in O`KEY’s net retail revenue grew by 1.2 pps YoY to 4.0% in Q2 2022 compared to 2.8% in Q2 2021. In Q2 2022, in order to further optimise online order delivery time and costs, the company opened six new pick-up points in its hypermarkets in Moscow and in St Petersburg. As of the end of Q2 2022, the company had 19 zones in its hypermarkets to cater for both online order pick-up and home delivery. DA! discounters delivered a strong 68.5% YoY growth in net retail revenue, which reached RUB 14,148 mln in Q2 2022 on the back of a 37.1% LFL revenue growth and a 33.7% YoY increase in the chain’s selling space. The LFL revenue growth was driven by rising brand recognition and customer loyalty thanks to the chain’s active expansion, as well as its well-balanced offering of products at the best possible prices with a special focus on own brands. The share of own brands in the discounters’ net retail revenue rose by 8.5 pps YoY to 58.7% in Q2 2022. The discounters’ share in the Group’s net retail revenue rose by 9.7 pps YoY to 28.5% in Q2 2022. The Company expects the DA! discounter chain to be one of the key drivers of the Group’s top- and bottom-line growth. Group Stores and Selling Space in H1 2022
In Q1 2022, in the course of ongoing real estate portfolio revision and optimisation, the Group closed 3 O`KEYs – two stores in Saratov and one in Moscow. In Q2 2022, the Group opened 4 hypermarkets in the Moscow Region to replace the stores it had acquired from X5 Group and solidify O`KEY presence in Central Russia. In H1 2022, the Group also opened 12 discounters (net of closures) under the DA! brand in Central Russia. As of 30 June 2022, the Group operated 79 O`KEY hypermarkets and 164 DA! discounters, with a total selling space of 638,638 sq m.
For further information, please contact:
|