O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, today announces its unaudited operating results for the fourth quarter (Q4) and the twelve months (12M) of 2020. 

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Q4 2020 operating highlights

  • Group net retail revenue1 rose by 6.0% YoY to RUB 48,939 mln in Q4 2020, mainly as a result of like-for-like (LFL) net retail revenue growth, supported by DA! selling space expansion.
  • Group LFL net retail revenue increased by 4.2% YoY in Q4 2020, driven by growth in both DA! and O`KEY chains.
  • Net retail revenue at O`KEY hypermarkets increased by 1.6% YoY to RUB 41,808 mln in Q4 2020 on the back of a 1.8% YoY LFL net retail revenue growth.
  • DA! discounters demonstrated a 42.2% YoY net retail revenue growth, reaching RUB 7,131 mln in Q4 2020. This came on the back of a 23.5% LFL net retail revenue increase and a 15.1% YoY expansion of selling space in Q4. 
  • In line with the previously announced forecast, the Group opened 13 DA! stores (net of closures) in Q4, increasing its total number of DA! stores to 118 by the end of 2020. The Group expects that discounters will remain the main driver of growth going forward.

    12M 2020 operating highlights

  • Group net retail revenue increased by 5.9% YoY to RUB 172,738 mln in 12M 2020, driven primarily by a 5.4% YoY LFL increase in net retail revenue. 
  • Net retail revenue for DA! discounters grew by 45.3% YoY to RUB 25,950 mln in 12M 2020 as a result of a 27.8% LFL net retail revenue growth and a 15.8% increase in selling space. The discounter’s share of Group net retail revenue reached 15% in 12M 2020.
  • O`KEY hypermarkets’ LFL net retail revenue rose by 2.5% YoY in 12M 2020. This resulted in a net retail revenue increase of 1.0% YoY to RUB 146,788 mln.
  • Sales via O`KEY’s delivery platform increased by 28.4% YoY in 12M 2020, reaching 3.7% of O`KEY's net retail revenue in Moscow and 2.1% in St.-Petersburg.

Q4 2020 – Key Events

  • On December 14, the Group listed its GDRs on the Moscow Exchange, aiming to expand its investor base and boost liquidity. The Group intends to maintain its initial listing on the London Stock Exchange, where O`KEY’s GDRs have traded since 2010. The full text of the announcement is available at https://okeygroup.lu/press-center/press-releases/2020/1736/
  • In December, the Company expanded its online delivery operations to 20 more Russian cities. As a result, O`KEY now offers delivery in all of its main regions of operation. The full text of the announcement is available at https://okeygroup.lu/press-center/press-releases/2020/1740/

Armin Burger, Chief Executive Officer at O`KEY Group, commented:

“We are pleased with our results in what has been such a challenging year. Our business model, combining modern hypermarkets, uniquely positioned discounters and a developed online platform, proved its flexibility and resilience in a turbulent macroeconomic environment caused by the pandemic. In 12M 2020, the Group’s net retail revenue rose by 5.9% YoY, with a solid LFL growth of 5.4%.” 

“DA! discounters reached a 15% share of the Group’s revenue in 12M 2020 and continued to lead the Group’s performance. With its strong value-for-money proposition, carefully selected product offering based on the ‘fresh’ and own brands portfolio, and focus on ‘everyday low prices’, DA! continued to capitalize on a growing long-term trend towards cost-conscious consumption. In 12M 2020, DA! showed record top-line growth for the last three years – net retail revenue rose by 45.3% YoY, with an impressive 27.8% LFL increase driven by both basket and traffic growth.”

“O`KEY hypermarkets demonstrated a 2.5% LFL revenue increase in 12M 2020, enjoying customer loyalty thanks to a well-balanced product range with a particular focus on freshness, competitive prices, a high level of service, and a safe shopping environment. As we mentioned earlier, we are implementing a transformation program across our hypermarkets, aiming to anticipate market trends and further increase our attractiveness to customers in a fast-changing consumer environment.”

“To meet growing customer demand for multi-channel shopping, we have substantially increased both our online capacity and speed of delivery through the e-commerce platform. Sales through our delivery service rose by around 30% YoY and reached 1.6% of O'Key’s revenue in 12M 2020. We see great potential for further development and continue to invest in our own e-commerce business focusing, first of all, on Moscow and St.-Petersburg as key cities of our presence.” 

“In December 2020, the Group successfully listed its GDRs on the Moscow Exchange while maintaining its primary listing on the London Stock Exchange. As a Group, we are focused on creating value for our customers, partners and shareholders, and the Moscow listing is another important step to diversify our investor base, improve the liquidity of our shares and allow our performance to be better reflected in the Group’s market valuation.”

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For further information please contact:  

For investors
Natalya Belyavskaya
Head of Investor Relations
+7 495 663 6677 ext. 266

For media
Alla Golovatenko
Public Relations Manager
+7 926 169 9117