published on 04/18/2023 at 08:30 from O'KEY Group S.A. (isin : US6708662019)

O`KEY GROUP REPORTS NET PROFIT GROWTH OF 16.2%, DA! DISCOUNTERS EBITDA MORE THAN DOUBLES IN FY 2022

O'KEY Group S.A. (OKEY)
O`KEY GROUP REPORTS NET PROFIT GROWTH OF 16.2%, DA! DISCOUNTERS EBITDA MORE THAN DOUBLES IN FY 2022

18-Apr-2023 / 08:30 CET/CEST
The issuer is solely responsible for the content of this announcement.

18 April 2023

O`KEY GROUP REPORTS NET PROFIT GROWTH OF 16.2%,
DA! DISCOUNTERS EBITDA MORE THAN DOUBLES IN FY 2022

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 full year of 2022 based on audited consolidated 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.

FY 2022 financial highlights

Total Group revenue increased by 8.1% YoY to RUB 202.2 bn
Group gross profit rose by 11.1% to RUB 46.8 bn, and gross margin improved by 0.7 pps YoY to 23.2%
Group EBITDA grew by 9.8% YoY to RUB 17.0 bn, and EBITDA margin increased by 0.1 pps YoY to 8.4%
DA! discounters EBITDA surged 2.2 times YoY to RUB 3.6 bn, and EBITDA margin reached 6.8%
The Group’s operating profit grew by 15.2% YoY to RUB 5.8 bn
The Group’s net profit increased by 16.2% YoY and amounted to RUB 242 mln

Key events after the reporting period

In March 2023, the Group’s global depositary receipts (GDRs) were admitted to the quotation list in the main market segment on the Astana International Exchange (AIX).

The full announcement is available at https://www.okeygroup.lu/press-center/press-releases/2023/1836/.

Group Profit and Losses Highlights for FY 2022

RUB mln	FY 2022	FY 2021	∆ YoY, %
Total Group revenue	202,171	187,097	8.1%
O`KEY hypermarkets	148,824	152,260	(2.3%)
DA! discounters	53,347	34,837	53.1%
Gross profit	46,808	42,119	11.1%
Gross profit margin, %	23.2%	22.5%	0.7pps
SG&A	(40,390)	(35,718)	13.1%
SG&A as % of revenue	20.0%	19.1%	0.9pps
Other operating expenses, net	(667)	(1,410)	(52.7%)
Operating profit	5,751	4,991	15.2%
Finance expenses, net	(5,642)	(4,798)	17.6%
Foreign exchange gain	313	206	51.9%
Net profit	242	208	16.2%
Group EBITDA	17,020	15,504	9.8%
Group EBITDA margin, %	8.4%	8.3%	0.1pps
O`KEY EBITDA	13,377	13,839	(3.3%)
O`KEY EBITDA margin, %	9.0%	9.1%	(0.1pps)
DA! EBITDA	3,643	1,665	2.2x
DA! EBITDA margin, %	6.8%	4.8%	2pps

Group Revenue

RUB mln	FY 2022	FY 2021	∆ YoY, %
Total Group revenue	202,171	187,097	8.1%
Retail revenue	200,201	185,172	8.1%
Rental income	1,970	1,925	2.3%

In FY 2022, Group retail revenue grew by 8.1% YoY to RUB 200,201 mln, driven by the expansion of the two chains, as well as DA! discounters' LFL revenue and O`KEY's online revenue growth.

The Group’s rental income increased by 2.3% YoY and amounted to RUB 1,970 mln in FY 2022. Total Group revenue was up by 8.1% YoY to RUB 202,171 mln in FY 2022.

Group Net Retail Revenue and LFL Revenue

RUB mln	12M 2022	12M 2021	YoY, %	LFL 2022/ 2021, %
O`KEY Group	200,201	185,172	8.1%	2.1%
O`KEY hypermarkets	146,904	150,383	(2.3%)	(3.6%)
DA! discounters	53,297	34,789	53.2%	26.8%

For more details, please refer to the Group’s Q4 and 12M 2022 Trading Update.

Group Gross Profit

In FY 2022, Group gross profit rose by 11.1% YoY to RUB 46,808 mln, while gross margin improved by 0.7 pps YoY to 23.2%. The improvement was made possible by the Group’s effective procurement and logistics management, timely efforts in reshaping the supply of products on offer, and operational synergies between the formats.

In 2022, thanks to our long-term partnership with local suppliers, we introduced new SKUs into our offering. Additionally, we successfully phased out some of the imported SKUs, ensuring a diverse selection of products at reasonable prices without sacrificing our margins.

Group Selling, General and Administrative Expenses

RUB mln	FY 2022	% of revenue	FY 2021	% of revenue	∆ YoY, pps
Personnel costs	16,850	8.3%	15,388	8.2%	0.1
Depreciation and amortisation	10,662	5.3%	8,904	4.8%	0.5
Communication and utilities	4,587	2.3%	4,037	2.2%	0.1
Advertising and marketing	2,296	1.1%	1,992	1.1%	-
Repairs and maintenance	1,582	0.8%	1,399	0.7%	0.1
Insurance and bank commissions	1,260	0.6%	1,094	0.6%	-
Operating taxes	766	0.4%	652	0.3%	0.1
Security expenses	785	0.4%	730	0.4%	-

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