from O'KEY Group S.A.
O'KEY Group S.A.: O`KEY GROUP REPORTS NET PROFIT FOR H1 2022. DA! DISCOUNTERS EBITDA MORE THAN DOUBLED
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O'KEY Group S.A. (OKEY)
O`KEY GROUP REPORTS NET PROFIT FOR H1 2022 DA! DISCOUNTERS EBITDA MORE THAN DOUBLED Press Release 15 September 2022
O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group”), one of Russia’s leading food retailers, has announced its financial results for the first six months of 2022 based on condensed consolidated interim financial statements.
All materials published by the Group are available on its website, okeygroup.lu.
All results are according to IFRS 16, unless stated otherwise.
H1 2022 Financial Highlights
Key events after the reporting period
The full announcement is available at https://okeygroup.lu/press-center/press-releases/2022/1810/.
Armin Burger, O`KEY Group CEO, commented: “In the first half of 2022, the Group delivered strong operational and financial results, despite the unprecedented geopolitical and macroeconomic turmoil that the global economy faced. The Group demonstrated a year-on-year improvement in both gross and EBITDA margins in H1 2022. Since March 2022, we have successfully revised our supplier portfolio and adjusted the supply chain and logistics to ensure full-shelf product availability. Our focus remains on domestic supply, with around 80% of the assortment sourced locally. We continued to develop the three pillars of O'KEY Group's business model: modern O'KEY hypermarkets, fast-growing DA! discounters, and the e-grocery business. The Group acquired and relaunched under a new concept 4 O'KEY hypermarkets in the Moscow region, opened 12 DA! discounters in Central Russia and added 6 pick-up points for online orders at O'KEY hypermarkets in Moscow and St. Petersburg. For O'KEY hypermarkets, we went on optimising the store portfolio and streamlining the cost base. In Q2 2022, we temporarily limited promotional activity at hypermarkets in order to ensure sufficient stock levels and full on-shelf availability, as well as protect our margins in a highly inflationary environment. In H1 2022, the hypermarkets demonstrated a strong EBITDA margin of 8%. DA! discounters showed a 63% YoY revenue growth with a record-high like-for-like increase of 35% in H1 2022. In Q2 2022, the discounter business reached 28.5% of the Group's net retail revenue. As the chain continued to ramp up in H1 2022, its EBITDA grew more than twofold, and the EBITDA margin improved substantially to 6.8%. We expect the discounters to remain a key driver of the Company's continued top-and bottom-line growth and, in several years, to constitute half of the Group's business. In 2022, we plan to open up to 45 new DA! discounters and undergo a concept update in up to 8 O'KEY hypermarkets.”
Group Profit and Losses Highlights in H1 2022
Group Revenue
In H1 2022, Group retail revenue rose by 10.4% YoY to RUB 96,814 mln on DA! discounters’ record-high LFL performance, supported by store expansion of both O`KEY and DA! chains. Rental income increased by 2.6% YoY and amounted to RUB 989 mln in H1 2022. Total Group revenue climbed 10.3% YoY to RUB 97,803 mln in H1 2022.
Group net retail revenue and LFL revenue in H1 2022
For more details, please refer to the Group’s Q2 2022 Trading Update.
Group Gross Profit In H1 2022, Group gross profit went up by 14.5% YoY to RUB 22,302 mln, and gross margin rose by 0.8 pps YoY to 22.8%. The improvement was mainly thanks to the Group’s effective procurement and logistics management, timely efforts in reshaping its product supply, as well as operational synergy between the formats. Group Selling, General and Administrative Expenses
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