published on 07/31/2024 at 08:45 from O'KEY Group S.A. (isin : US6708662019)

O`KEY GROUP REPORTS 5.2% NET RETAIL REVENUE GROWTH IN Q2 2024

O'KEY Group S.A.
O`KEY GROUP REPORTS 5.2% NET RETAIL REVENUE GROWTH IN Q2 2024

31-Jul-2024 / 08:45 CET/CEST
The issuer is solely responsible for the content of this announcement.

Press release

31 July 2024

O`KEY Group S.A. (AIX, 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 six months (6M) of 2024.

All materials published by the Group are available on its website at www.okeygroup.lu.

Q2 2024 operating highlights

Group net retail revenue [1] rose by 5.2% YoY to RUB 52.3 bn, driven mainly by LFL revenue growth of O’KEY hypermarkets and DA! discounters, as well as by support from DA! chain expansion.
O`KEY hypermarkets’ net retail revenue grew by 1.0% YoY to RUB 33.9 bn on the back of a 1.5% increase in LFL revenue.
DA! discounters' net retail revenue went up 13.8% YoY to RUB 18.4 bn, led by a 6.3% increase in LFL revenue and the chain's organic growth.
DA! discounters’ share in the Group’s net retail revenue grew by 2.7 pp YoY and reached 35.2%.

6M 2024 operating highlights [2]

Group net retail revenue grew by 6.2% YoY to RUB 104.6 bn.
O`KEY hypermarkets’ net retail revenue was up 2.0% YoY to RUB 69.4 bn, thanks to a 2.6% increase in LFL revenue.
DA! discounters’ net retail revenue rose by 15.7% YoY to RUB 35.2 bn, driven by a 6.9% LFL revenue growth and further boosted by the chain’s expansion.

Key events in 6M 2024 and after the reporting date

In June, Expert RA affirmed a credit rating of ‘ruA-’ for O`KEY LLC, the main operating subsidiary of O`KEY Group S.A. The outlook of the rating remains Stable. The full text of the announcements is available at https://www.okeygroup.lu/press-center/press-releases/2024/1904/
On 18 June 2024, the Group cancelled the listing of its GDRs on LSE. On 13 June, in preparation for the delisting from LSE, the Group transferred GDRs to Level II Quotation List on the Moscow Exchange. O'KEY Group GDRs are also listed on AIX. The Group plans to keep its listing on both MOEX and AIX.

The full text of the respective announcements is available at https://www.okeygroup.lu/press-center/press-releases/2024/1902/ and at https://www.okeygroup.lu/press-center/press-releases/2024/1906/

In July, the Group announced that it had initiated a transition to a new depositary bank, replacing The Bank of NY Mellon with RCS Trust and Corporate Services Ltd., appointed as a successor for the Group’s GDR program. The full text of the announcements is available at https://www.okeygroup.lu/press-center/press-releases/2024/1908/
In July, NCR rating agency affirmed a credit rating of ‘A.ru’ with Stable outlook for O`KEY LLC, the main operating subsidiary of O`KEY Group S.A. The full text of the announcements is available at https://www.okeygroup.lu/press-center/press-releases/2024/1911/

Operating review

Group Net Retail Revenue in Q2 and 6M 2024

Net Retail Revenue, RUB mln (excl. VAT)	Q2 2024	Q2 2023	YoY, %	6M 2024	6M 2023	YoY, %
O`KEY Group	52,316	49,738	5.2%	104,568	98,463	6.2%
O`KEY hypermarkets	33,896	33,548	1.0%	69,383	68,054	2.0%
DA! discounters	18,420	16,190	13.8%	35,185	30,409	15.7%

Group Like-for-Like Net Retail Revenue Performance in Q2 and 6M 2024

	April	May	June	Q2 2024	6M 2024
Net retail revenue, % YoY
O’KEY Group	(1.2%)	5.5%	5.1%	3.1%	3.9%
O'KEY hypermarkets	(3.2%)	4.5%	3.3%	1.5%	2.6%
DA! discounters	2.8%	7.4%	8.7%	6.3%	6.9%
Customer traffic, % YoY
O’KEY Group	(6.3%)	(3.1%)	(2.9%)	(4.1%)	(3.2%)
O'KEY hypermarkets	(8.1%)	(4.1%)	(3.9%)	(5.4%)	(4.5%)
DA! discounters	(4.2%)	(1.9%)	(1.7%)	(2.6%)	(1.6%)
Average ticket, % YoY
O’KEY Group	5.4%	8.9%	8.2%	7.5%	7.4%
O'KEY hypermarkets	5.4%	9.0%	7.5%	7.3%	7.4%
DA! discounters	7.3%	9.5%	10.6%	9.2%	8.6%

Note: Q2 2024 LFL metrics are calculated based on 77 O`KEY and 202 DA! stores.

In Q2 2024, the Group’s net retail revenue increased by 5.2% YoY to RUB 52,316 mln, led mainly by LFL revenue growth of the two chains, as well as the discounter business expansion.

Net retail revenue of O`KEY hypermarkets rose by 1.0% YoY to RUB 33,896 mln on the back of a 1.5% LFL net retail revenue increase in Q2 2024.

Over the first half of 2024, O’KEY management team has been significantly strengthened with seasoned professionals in store operations, commercial, marketing, real estate, non-commercial purchases and more.

In Q2 2024, O'KEY initiated a thorough review of assortment and suppliers portfolio to further strengthen customer proposition and build long-term and mutually beneficial strategic partnerships at the same time. The process is being backed by updating the promotional, pricing and marketing concepts as the basis for the development of renewed strategy for O’KEY hypermarkets.

In Q2 2024, DA! discounters’ net retail revenue grew by 13.8% YoY to RUB 18,420 mln, driven by a 6.3% LFL revenue growth and a 6.9% YoY increase in selling space. The discounters’ share in the Group’s revenue grew by 2.7 p.p. YoY to 35.2% in Q2 2024.

The DA! discount chain continued to work on providing the best value for money proposition to our customers, with an emphasis on the range of fresh and ultra-fresh products and further improving the portfolio of its own brands.

Group Stores and Selling Space in 6M 2024

Stores and Selling Space	6M 2024	6M 2023	Net change	Change, %
Number of stores, EoP	296	282	14	5.0%
O`KEY hypermarkets	77	77	-	-
DA! discounters	219	205	14	6.8%
Total selling space (sq m), EoP	659,973	648,866	11,107	1.7%
O`KEY hypermarkets	512,329	510,768	1,561	0.3%
DA! discounters	147,644	138,098	9,546	6.9%

In Q2 2024, the Group closed three and opened two DA! stores. As of 30 June 2024, the Group operated a total of 77 O`KEY hypermarkets and 219 DA! discounters with a total selling space of 659,973 sq

Q2 2024 O'KEY Group Net Retail Revenue Hypermarkets Discounters

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