O`KEY GROUP opens new DA! discounters

At the end of October, a new discounter DA! opened in Tver at 44 Pasha Savelyevoy Street. In November, new stores also opened in Lyubertsy at 1 Mitrofanova Street and in Moscow at 13A Kuntsevskaya Street. In the last days of the month, two discounters under the DA! brand opened their doors to the public: in Tver at 52 Mozhayskogo Street and in Ramenskoye at 1 Northern Highway. 

As a result of active expansion within two months the number of discounters under the DA! brand increased to 76.

 The development of discounters under the DA! brand is one of the main priorities of the O`KEY Group. Since the launch of the first discounter in 2015, this format has shown steady improvement in financial performance. In the first nine months of 2018, the net retail revenue generated by DA! grew by 33.2% YoY to RUB 9,605 mln. Like-for-like (LFL) net retail revenue generated by DA! increased by 13.3% YoY, driven by steady growth in LFL traffic and LFL average ticket.

 The Company plans to accelerate the pace of development of this format and open about 170 discounters by the end of 2020.

Armin Burger, Chief Executive Officer of O`KEY Group:

“The accelerated pace of new openings of discounters under the DA! brand in the second half of 2018 is in line with previously announced growth strategy of the O`KEY Group. The growing popularity of the unique value proposition of such stores continues to yield solid like-for-like traffic growth. In the third quarter, we continued to enhance our assortment matrix by introducing 50 new private label SKUs. As of the end of the last quarter, the share of private label products in the total SKUs stood at 42%. We will continue to develop discounters under the DA! brand, choosing convenient locations for our customers and expanding our presence in Moscow and other cities.”

OVERVIEW

O`KEY Group S.A. (LSE: OKEY, Fitch – ‘B+’, RAEX – ‘ruA-’) operates under two main formats: hypermarkets, under the ‘O`KEY’ brand and discounters, under the ‘DA!’ brand. 

The Group operates 153 stores across Russia. The Group opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. O`KEY is the first among Russian food retailers to launch and actively develop e-commerce operations in St. Petersburg and Moscow, offering a full range of hypermarket products for home delivery. The Group operates four distribution centres across the Russian Federation. 

For the full year 2017, revenue totalled RUB 177,454,848 thousand, EBITDA reached RUB 9,334,993 thousand, and the net income for the period amounted to RUB 3,166,913 thousand. 

The O`KEY shareholder structure is as follows: NISEMAX Co Ltd – 50.95%, GSU Ltd – 29.52%, free float – 19.53%. 

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