from O'KEY Group S.A. (isin : US6708662019)
O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q3 2023
O'KEY Group S.A. (OKEY) Press release 3 November 2023
O`KEY GROUP REPORTS NET RETAIL REVENUE FOR Q3 2023
O`KEY Group S.A. (AIX, LSE, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, today announces its unaudited operating results for the third quarter (Q3) and the first nine months (9M) of 2023.
All materials published by the Group are available on its website at www.okeygroup.lu.
Q3 2023 operating highlights
DA! discounters’ share in the Group’s revenue rose by 4.4 pps YoY and reached 32.5% in Q3 2023.
9M 2023 operating highlights
Operating review Group Net Retail Revenue in Q3 and 9M 2023
Group Net Retail Revenue Metrics for Q3 and 9M 2023
Group Like-for-like Net Retail Revenue Performance in Q3 and 9M 2023
Note: Q3 2023 LFL metrics are calculated based on 78 O`KEY and 167 DA! stores.
The Group’s net retail revenue increased by 2.2% YoY to RUB 48,849 mln in Q3 2023, led by DA! discounter and online sales growth. Net retail revenue of O`KEY hypermarkets declined by 4.1% YoY to RUB 32,960 mln in Q3 2023. This was mainly due to a 2.9% YoY selling space reduction in 9M 2023, as well as a 1.8% LFL revenue decrease in Q3 2022. However, O’KEY’s LFL revenue performance improved in Q3 2023 compared to 1H 2023, as the YoY dynamics of both customer traffic and average ticket had been recovering on a monthly basis over Q3 2023. O`KEY’s total online sales increased by 16.9% YoY to RUB 1,504 mln in Q3 2023. The share of total online sales in O`KEY’s net retail revenue grew by 0.9 pps YoY to 4.6% in Q3 2023. As of the end of Q3 2023, the Company had 35 e-commerce points for online order pick-up and delivery in O`KEY hypermarkets from Moscow, St. Petersburg, Sochi and Krasnodar. DA! discounters’ net retail revenue grew by 18.3% YoY to RUB 15,889 mln in Q3 2023, showing a pickup in growth rate compared to 1H 2023. DA! discounters’ LFL revenue was almost flat YoY, increasing by 0.1% in Q3 2023 (against the high base of 26.1% LFL revenue growth in Q3 2022). In response to changes in consumer demand in 2023, in Q3, DA! discounters focused on family packaging offering the best price, the development of the middle segment in all categories, as well as worked on the quality of own bakery, taking into account changes in raw material prices. The emphasis was also made on improving the efficiency of logistics and the availability of goods on the shelves.
The DA! team sees own brands as the main driver for sales growth. For 9M 2023, in order to ensure sustainable business growth, DA! worked on the diversification of supply chain, expanding the range of private labels and exclusive imported goods, and also continued to adhere to the "every day low prices" (EDLP) pricing approach. The discounters’ share in the Group’s revenue increased by 4.4 pps YoY to 32.5% in Q3 2023. The Company expects the discounter segment to remain one of the key growth drivers for the Group.
Group Stores and Selling Space in 9M 2023
In 9M 2023, as part of the ongoing real estate portfolio review and optimisation, the Group closed 3 and opened 1 O`KEY hypermarket. Additionally, 3 O`KEY stores accomplished modernisation and related optimisation of their selling space in 9M 2023. In 9M 2023, the Group opened 25 discounters (net of closures) under the DA! brand. The Group increased its total number of stores by 45 YoY (net of closures), with the selling space growing by 16,681 sq m YoY in 9M 2023. As of 30 September 2023, the Group operated 296 stores, including 77 O`KEY hypermarkets and 219 DA! discounters, with a total selling space of 658,696 sq m. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||