O'KEY Group S.A.
O`KEY GROUP REPORTS 35.4% EBITDA GROWTH FOR THE FIRST HALF OF 2024
23-Aug-2024 / 08:30 CET/CEST
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Press release 23 August 2024 O`KEY GROUP REPORTS 35.4% EBITDA GROWTH FOR THE FIRST HALF OF 2024 O`KEY Group S.A. (AIX, MOEX: OKEY, the “Group”), one of Russia’s leading food retailers, has announced its financial results for the first half (H1) of 2024 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 2024 financial highlights - Total Group revenue increased by 6.2% YoY to RUB 105.7 bn driven mainly by retail revenue growth from both O’KEY hypermarkets and DA! discounters. The two formats demonstrated LFL revenue growth for the reporting period.
- Group gross profit rose by 6.7% YoY to RUB 24.2 bn, while gross margin grew by 0.1 pps to 22.9% mainly due to efficient procurement and shrinkage cost management.
- Group EBITDA increased by 35.4% YoY to RUB 9.6 bn, while EBITDA margin grew by 2.0 pps to 9.1% due to improved profitability in both business segments.
- O’KEY hypermarkets EBITDA grew by 18.6% YoY to RUB 6.5 bn, while EBITDA margin was up by 1.3 pps to 9.2% driven by revenue growth combined with optimised operating expenses.
- DA! discounters EBITDA nearly doubled YoY to RUB 3.2 bn, while EBITDA margin increased to 9.0% from 5.4% in the prior year. This was driven by both operating expenses optimisation and maturation of DA! stores opened in previous years.
- The Group posted a net profit of RUB 78 mln for H1 2024 compared to a net loss of about RUB 3.0 bn a year earlier.
Group profit and losses highlights in H1 2024 RUB mln | H1 2024 | H1 2023 | ∆ YoY, % | Total Group revenue | 105,653 | 99,478 | 6.2% | O`KEY | 70,445 | 69,042 | 2.0% | DA! | 35,208 | 30,436 | 15.7% | Gross profit | 24,176 | 22,652 | 6.7% | Gross profit margin, % | 22.9% | 22.8% | 0.1 pps | Selling, general and administrative expenses (SG&A) | (20,843) | (21,762) | (4.2%) | SG&A, % of revenue | 19.8% | 21.8% | (2.0 pps) | Other operating income/(expenses) | 714 | (389) | n/a | Finance costs, net | (4,018) | (3,250) | 23.7% | Foreign exchange gain/(loss) | 73 | (881) | n/a | Net profit/(loss) | 78 | (2,977) | n/a | Group EBITDA | 9,616 | 7,102 | 35.4% | Group EBITDA margin, % | 9.1% | 7.1% | 2.0 pps | O`KEY EBITDA | 6,459 | 5,447 | 18.6% | O`KEY EBITDA margin, % | 9.2% | 7.9% | 1.3 pps | DA! EBITDA | 3,157 | 1,656 | 90.7% | DA! EBITDA margin, % | 9.0% | 5.4% | 3.6 pps |
Group revenue RUB mln | H1 2024 | H1 2023 | ∆ YoY, % | Total Group revenue | 105,653 | 99,478 | 6.2% | Retail revenue | 104,568 | 98,463 | 6.2% | Rental income | 1,085 | 1,015 | 6.9% |
In H1 2024, total Group revenue increased by 6.2% YoY to RUB 105,653 mln led mainly by retail revenue growth. Group retail revenue was up 6.2% YoY to RUB 104,568 mln in H1 2024 driven by performance of both O’KEY hypermarkets and DA! discounters. Group net retail revenue and LFL revenue RUB mln | H1 2024 | H1 2023 | ∆ YoY, % | LFL H1 2024 / H1 2023, % | O`KEY Group | 104,568 | 98,463 | 6.2% | 3.9% | O`KEY hypermarkets | 69,383 | 68,054 | 2.0% | 2.6% | DA! discounters | 35,185 | 30,409 | 15.7% | 6.9% |
For more details, please refer to the Group’s Q2 2024 Trading Update. Group gross profit increased by 6.7% YoY to RUB 24,176 mln in H1 2024. Group gross margin grew by 0.1 pps YoY to 22.9% due to consistent work on enhancing the efficiency of procurement, as well as shrinkage costs optimisation. Group selling, general and administrative expenses RUB mln | H1 2024 | % of revenue | H1 2023 | % of revenue | ∆ YoY, pps | Personnel costs | 8,727 | 8.3% | 9,427 | 9.5% | (1.2) | Depreciation and amortisation | 5,372 | 5.1% | 5,717 | 5.7% | (0.6) | Communication and utilities | 2,687 | 2.5% | 2,702 | 2.7% | (0.2) | Advertising and marketing | 958 | 0.9% | 956 | 1.0% | (0.1) | Repairs and maintenance | 846 | 0.8% | 820 | 0.8% | - | Insurance and bank commissions | 705 | 0.7% | 646 | 0.6% | 0.1 | Operating taxes | 441 | 0.4% | 388 | 0.4% | - | Security expenses | 372 | 0.4% | 380 | 0.4% | - | Legal and professional expenses |
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