O`KEY Group S.A. (LSE, 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 first six months (H1) of 2021Download full press release >>
Q2 2021 OPERATING HIGHLIGHTS
Group net retail revenue grew by 6.1% YoY to RUB 44,437 mln.
- The Group like-for-like (LFL) net retail revenue grew by 1.2% YoY, with both hypermarkets and discounters delivering positive LFL performance.
- DA! discounters’ net retail revenue expanded by 21.4% YoY to RUB 8,396 mln, driven by a 6.8% LFL net retail revenue growth and a 19.5% YoY selling space increase.
- DA! discounters’ share in the Group’s revenue rose by 2.4 pps YoY to 18.9%.
- O`KEY hypermarkets’ net retail revenue added 3.1% YoY to reach RUB 36,041 mln.
H1 2021 OPERATING HIGHLIGHTS
- Group net retail revenue increased by 4.0% YoY to RUB 87,698 mln.
- DA! discounters’ net retail revenue grew by 23.9% YoY to RUB 15,637 mln, driven by a 10.2% LFL net retail revenue growth and a selling space expansion.
- O`KEY hypermarkets’ net retail revenue grew by 0.5% YoY to RUB 72,061 mln.
- Total online sales grew by 62.6% YoY to RUB 1,982 mln and accounted for 2.8% of O`KEY's revenue.
KEY EVENTS IN Q2 2021 AND AFTER THE REPORTING DATE
- In June 2021, O`KEY Group acquired a Karusel hypermarket in Moscow from X5 Group. The new hypermarket became the 14th O`KEY store in the Moscow metropolitan area. The Company has further strengthened its position in this strategic market and brought its selling space in the Central region to over 115,000 sq m. In Q4 2021, O’KEY plans to open here a hypermarket designed in line with the new store concept.
The full text of the announcement is available at https://okeygroup.lu/press-center/press-releases/2021/1760/.
- In July 2021, Expert RA affirmed the credit rating of ‘ruA-’ with a Stable outlook for O`KEY LLC, the main operating subsidiary of O`KEY Group S.A. The agency noted the growth in the Group’s revenue and EBITDA in the financial year 2020, combined with a solid financial position and a high diversification of the debt portfolio.
Armin Burger, Chief Executive Officer at O`KEY Group, commented:
“We are very pleased with a 6.1% revenue growth the Group delivered thanks to both hypermarkets’ and discounters’ strong performance in Q2 2021.
“DA! discounters showed an impressive increase of 21.4% in net retail revenue, with a like-for-like growth of 6.8% in Q2 2021. It is noteworthy that the discounters delivered these results on top of their 50.8% YoY revenue growth and 34.7% LFL performance in the comparable Q2 2020. Starting from its launch in 2015, DA! remains one of the fastest growing grocery chains in terms of revenue. Today, DA! is the only food discounter in Russia that successfully operates a business model based on a unique private label portfolio. The share of DA! in the Group’s revenue reached almost 19% in Q2 2021. Keeping focus on the efficiency and profitability of our discounter business, we plan to bring the number of new openings at DA! up to 35–40 annually, starting this year. We see discounters as the main driver of the Group’s revenue and profitability growth in the medium term.
“O’KEY hypermarkets demonstrated a 3.1% YoY revenue growth in Q2 2021, a solid result, especially given the high comparables from Q2 2020. We continue to improve customer service, develop the product range with a focus on fresh categories and private labels, and streamline the use of selling space. We keep redesigning our hypermarkets in key regions, including the newly acquired store in Moscow we will relaunch under the new concept by the end of 2021.
“As a pioneer in e-grocery, we continuously invest in our omni-channel shopping model. In Q2 2021, the Group’s online sales rose by 62.6% YoY to account for 2.8% of O`KEY’s revenue.
“We also confirm our previously announced guidance for 2021, expecting a low-single-digit LFL growth at O`KEY hypermarkets and a double-digit LFL growth at DA! discounters.”Download full press release >>