O`KEY Group S.A. (AIX, LSE, MOEX: OKEY, the “Group”), one of Russia’s leading food retailers, has announced its financial results for the first six months of 2023 based on condensed consolidated interim financial statements.
All results are according to IFRS 16, unless stated otherwise.
H1 2023 FINANCIAL HIGHLIGHTS
- Total Group revenue increased by 1.7% YoY to RUB 99.5 bn driven by both retail revenue and rental income.
- Group gross profit rose by 1.6% to RUB 22.7 bn, with gross margin remaining flat YoY at 22.8% thanks to efficient procurement, assortment management and logistics.
- Group EBITDA decreased by 5.4% YoY to RUB 7.1 bn, while EBITDA margin declined by 0.6 pps YoY to 7.1%, mainly on the back of temporary SG&A pressure from new store openings in the discounter segment. The Group expects EBITDA margin to normalise by the year-end, as recently opened discounters ramp up.
- The Group reported net loss of RUB 3.0 bn in H1 2023 compared to a RUB 0.6 bn net profit in H1 2022, mainly due to a non-cash foreign exchange loss and an increase in finance costs.
- In July 2023, the National Credit Rating (NCR) agency assigned an A.ru credit rating (Stable outlook) to O`KEY LLC, the main operating subsidiary of O`KEY Group S.A.