O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, today announces its financial results for the full year of 2020 based on audited consolidated financial statements.

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FY 2020 Financial Highlights

  • Total Group revenue increased by 5.6% YoY to RUB 174,341 mln
  • O`KEY revenue rose by 0.8% YoY to RUB 148,341 mln, driven by 2.5% LFL retail revenue growth
  • DA! revenue soared by 45.2% YoY to RUB 26,000 mln, led by 27.8% LFL revenue growth and selling space expansion
  • Group gross profit increased by 5.4% to RUB 39,288 mln, and gross margin amounted to 22.5% in FY 2020
  • Group EBITDA grew by 5.5% YoY to RUB 14,832 mln, and EBITDA margin stood at 8.5%
  • DA! discounters EBITDA improved to positive RUB 784 mln in FY 2020 from negative RUB 215 mln in FY 2019, driven by strong revenue performance and efficiency growth
  • Group’s operating profit grew by 2.8% YoY to RUB 5,039 mln in FY 2020
  • Group’s net debt position improved slightly YoY to a 3.6x interest-bearing liabilities to EBITDA ratio, as of December 31, 2020

Armin Burger, O’KEY Group CEO, commented:

“In 2020, all sectors of the economy faced unprecedented instability and challenges. And I am all the more pleased to report the solid financial results delivered by O’KEY Group over the year. Our business model based on clearly positioned and complementary formats – modern O’KEY hypermarkets, DA! discounters, and a well-established e-commerce platform – enables us to cover all customer segments, and leverage the synergies. Our revenue grew by 5.6% YoY to RUB 174 billion, and Group EBITDA reached RUB 14.8 billion with an EBITDA margin of 8.5%.”

“O’KEY hypermarkets showed sustainable operational and financial results. The revenue of O’KEY hypermarkets grew to RUB 148 billion, while EBITDA stood at RUB 14.0 billion with an EBITDA margin of 9.5% in 2020. In 2020, we introduced a new hypermarket concept, which is based on both O’KEY’s own innovations and best international practices aimed at strengthening O`KEY’s market positioning and improving the economics of selling space utilisation. Within the next few years, we plan to expand our new hypermarket concept across our key regions, starting with five to seven stores in 2021.”

“DA! discounters remained the main driver for the Group and once again showed excellent results, with 45.2% revenue growth. As expected, DA! broke even and delivered positive EBITDA in 2020. During the year, we opened 18 discounters net of closures in Moscow and the Moscow Region, which brought the total number of stores to 118 and increased selling space by 16% YoY. Being focused on our strategic goals, we will continue expansion of the discounter business, and expect to open 30 to 40 new DA! stores in 2021, carefully selecting locations for every one of them. We expect that the share of discounters in the Group revenue will keep growing, thus supporting the Group’s overall growth and increasing operational profitability.”

“Our strategic target is to deliver the best price-quality ratio in the market in all our formats. We believe that the right strategy in action will allow us to fully capitalise on the opportunities in a changing market landscape.”

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