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

2024-07-31 04:19:28

(MENAFN- EQS Group)

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 REPORTS 5.2% NET RETAIL REVENUE GROWTH IN Q2
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 .

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
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 href=' style="text-decoration:none;font-family:Arial; font-size:11pt; text-decoration:underline; color:#0000ff"> and at href=' style="text-decoration:none;font-family:Arial; font-size:11pt; text-decoration:underline; color:#0000ff"> style="margin:0pt; padding-left:0pt" type="disc">

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 href=' style="text-decoration:none;font-family:Arial; text-decoration:underline; color:#0000ff">

In July, NCR rating agency affirmed a credit rating of 'A' 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 href=' style="text-decoration:none;font-family:Arial; text-decoration:underline; color:#0000ff"> style="margin-top:0pt; margin-bottom:6pt; text-align:justify; line-height:115%; font-size:11pt">

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
m.

For more information, please contact:

Natalya Belyavskaya

Head of Investor Relations

+7 495 663 6677 ext. 266

href="..." style="text-decoration:none">.

ABOUT O`KEY GROUP

O`KEY Group S.A. (AIX, MOEX: OKEY) is one of the leading grocery retailers in Russia, operating hypermarkets under the O`KEY brand and discounters under the DA! brand.

As of 30
June 2024, the Group had 296
stores across Russia (77
hypermarkets and 219
discounters) with a total selling space of 659,973
sq
m. O`KEY opened its first hypermarket in St
Petersburg in 2002 and has since demonstrated continuous growth. It was the first Russian food retailer to launch e-commerce operations offering a full range of hypermarket products for home delivery. The Group operates e-commerce pick-up and delivery points in 72 O'KEY hypermarkets across the country. In 2015, we launched the first discount chain in Russia under the DA! brand. The Group operates five distribution centres in Russia
– three in Moscow and two in St
Petersburg
– and employs 19,200
people.

In 2023, the Group's revenue amounted to RUB
207.9
bn, and EBITDA reached RUB
17.0
bn.

The O`KEY Group shareholder structure is as follows: NISEMAX
Co
Ltd
– 49.11%. GSU
Ltd
– 34.14%, free-float and other holders
– 16.75%.

DISCLAIMER

These materials contain statements about future events and expectations that are forward-looking statements. These statements typically include words such as 'expects' and 'anticipates' and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises, nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

[1] Hereinafter the net retail revenue, LFL net retail revenue, and online revenue metrics are provided net of VAT.

[2] Hereinafter the net retail revenue and LFL net retail revenue for 6M
2024 vs 6M
2023 is not adjusted for a leap-year effect, i.e. there was an additional trading day in February 2024 compared to February 2023.

Dissemination of a CORPORATE NEWS, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.

End of Announcement - EQS News Service

MENAFN31072024004691010666ID1108502258

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.