O'KEY Group S.A. (OKEY)
O'KEY GROUP REPORTS FINANCIAL RESULTS FOR H1 2023
18-Sep-2023 / 08:45 CET/CEST
Press release 18 September 2023 O`KEY GROUP REPORTS FINANCIAL RESULTS FOR H1 2023 O`KEY Group S.A. (AIX, LSE, MOEX: OKEY, the “Group”), one of Russia’s leading food retailers, has announced its financial results for the first six months of 2023 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 2023 financial highlights - Total Group revenue increased by 1.7% YoY to RUB 99.5 bn driven by both retail revenue and rental income.
- Group gross profit rose by 1.6% to RUB 22.7 bn, with gross margin remaining flat YoY at 22.8% thanks to efficient procurement, assortment management and logistics.
- Group EBITDA decreased by 5.4% YoY to RUB 7.1 bn, while EBITDA margin declined by 0.6 pps YoY to 7.1%, mainly on the back of temporary SG&A pressure from new store openings in the discounter segment. The Group expects EBITDA margin to normalise by the year-end, as recently opened discounters ramp up.
- The Group reported net loss of RUB 3.0 bn in H1 2023 compared to a RUB 0.6 bn net profit in H1 2022, mainly due to a non-cash foreign exchange loss and an increase in finance costs.
- In July 2023, the National Credit Rating (NCR) agency assigned an A.ru credit rating (Stable outlook) to O`KEY LLC, the main operating subsidiary of O`KEY Group S.A.
For more details, please refer to the full press release at https://www.okeygroup.lu/press-center/press-releases/2023/1859/. Group profit and losses highlights in H1 2023 RUB mln | H1 2023 | H1 2022 | ∆ YoY, % | Total Group revenue | 99,478 | 97,803 | 1.7% | O`KEY | 69,042 | 72,264 | (4.5%) | DA! | 30,436 | 25,539 | 19.2% | Gross profit | 22,652 | 22,302 | 1.6% | Gross profit margin, % | 22.8% | 22.8% | - | Selling, general and administrative expenses | (21,762) | (19,794) | 9.9% | SG&A, % of revenue | 21.9% | 20.2% | (1.6pp) | Other operating expenses, net | (389) | (551) | (29.4%) | Finance costs, net | (3,249) | (2,685) | 21.0% | Foreign exchange (loss)/gain | (881) | 1,533 | n/a | Net (loss)/profit | (2,977) | 576 | n/a | Group EBITDA | 7,102 | 7,511 | (5.4%) | Group EBITDA margin, % | 7.1% | 7.7% | (0.6pp) | O`KEY EBITDA | 5,447 | 5,765 | (5.5%) | O`KEY EBITDA margin, % | 7.9% | 8.0% | (0.1pp) | DA! EBITDA | 1,656 | 1,745 | (5.1%) | DA! EBITDA margin, % | 5.4% | 6.8% | (1.4pp) |
Group revenue RUB mln | H1 2023 | H1 2022 | ∆ YoY, % | Total Group revenue | 99,478 | 97,803 | 1.7% | Retail revenue | 98,463 | 96,814 | 1.7% | Rental income | 1,015 | 989 | 2.6% |
Total Group revenue increased by 1.7% YoY to RUB 99,478 mln driven by both retail revenue and rental income. The Group’s retail revenue went up 1.7% YoY to RUB 98,463 mln driven by DA! discounters and online revenue growth in H1 2023. The Group’s rental income increased by 2.6% YoY to RUB 1,015 mln in H1 2023. Group net retail revenue and LFL revenue in H1 2023 RUB mln | H1 2023 | H1 2022 | YoY, % | LFL H1 2023/ H1 2022, % | O`KEY Group | 98,463 | 96,814 | 1.7% | (3.2%) | O`KEY hypermarkets | 68,054 | 71,300 | (4.6%) | (5.4%) | DA! discounters | 30,409 | 25,514 | 19.2% | 3.1% |
For more details, please refer to the Group’s Q2 2023 Trading Update. Group gross profit In H1 2023, Group gross profit improved by 1.6% YoY to RUB 22,652 mln, while gross margin stood flat YoY at 22.8%. The Group sustained its gross margin thanks to efficient procurement and logistics optimisation along with effective assortment and shrinkage management. Group selling, general and administrative expenses RUB mln | H1 2023 | % of revenue | H1 2022 | % of revenue | ∆ YoY, pps | Personnel costs | 9,427 | 9.5% | 8,494 | 8.7% | 0.8 | Depreciation and amortisation | 5,717 | 5.7% | 5,115 | 5.2% | 0.5 | Communication and utilities | 2,702 | 2.7% | 2,184 | 2.2% | 0.5 | Advertising and marketing | 956 | 1.0% | 1,029 | 1.1% | (0.1) | Repairs and maintenance | 820 | 0.8% | 766 | 0.8% | - | Insurance and bank commissions | 646 | 0.6% | 606 | 0.6% | - | Operating taxes | 388 | 0.4% | 421 | 0.4% | - | Security expenses | 380 | 0.4% | 375 | 0.4% | - | Legal and professional expenses | 292 | 0.3% | 330 | 0.3% | - | Materials and supplies | 218 | 0.2% | 206 |
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