O`KEY Group S.A. (AIX, 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 2023.
Q2 2023 OPERATING HIGHLIGHTS
- Group net retail revenue remained almost flat showing a 0.4% YoY increase to RUB 49.7 bn in Q2 2023.
- O`KEY hypermarkets’ net retail revenue decreased by 5.3% YoY to RUB 33.5 bn in Q2 2023, mainly due to a 4.8% YoY LFL revenue decrease. The decline was primarily attributable to a high comparable revenue base in Q2 2022, as food inflation peaked at 19.5% in Q2 2022 compared to 0.3% deflation in Q2 2023. In addition, in Q2 2022, we saw a temporary shift in the volume and structure of consumption, with further normalisation in H1 2023.
- O`KEY’s total online sales grew by 34.4% YoY to RUB 1.9 bn and accounted for 5.7% of the hypermarkets’ net retail revenue in Q2 2023.
- DA! discounters’ net retail revenue grew by 14.4% YoY to RUB 16.2 bn in Q2 2023, led by store openings, and offset partially by a high comparable base (DA! showed a record high net retail revenue growth of 68.5% in Q2 2022).
- DA! discounters’ share in the Group’s revenue rose by 4.0 pps YoY and reached 32.6% in Q2 2023. The Company expects the discounter segment to lead the Group’s growth in 2023 and in the mid-term.
H1 2023 OPERATING HIGHLIGHTS
- Group net retail revenue increased by 1.7% YoY to RUB 98.5 bn.
- O`KEY hypermarkets’ net retail revenue declined by 4.6% YoY to RUB 68.1 bn.
- O`KEY total online sales grew by 26.3% YoY to RUB 3.8 bn and reached 5.6% of O`KEY's net retail revenue.
- DA! discounters’ net retail revenue rose by 19.2% YoY to RUB 30.4 bn, driven by a 3.1% LFL net retail revenue growth and the chain’s expansion.
- In H1 2023, the Group opened 11 DA! stores. As of 30 June 2023, the Group operated 205 DA! discounters