O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group”), one of Russia’s leading food retailers, has announced its financial results for the first six months of 2022 based on condensed consolidated interim financial statements.
All results are according to IFRS 16, unless stated otherwise.
H1 2022 FINANCIAL HIGHLIGHTS
- Total Group revenue increased by 10.3% YoY to RUB 97.8 bn
- Group gross profit rose by 14.5% to RUB 22.3 bn, and gross margin improved by 0.8 pps YoY to 22.8%
- Group EBITDA grew by 14.2% YoY to RUB 7.5 bn, and EBITDA margin increased by 0.3 pps YoY to 7.7%
- DA! discounters EBITDA more than doubled YoY to RUB 1.7 bn, and EBITDA margin reached 6.8%
- The Group’s net profit amounted to RUB 0.6 bn in H1 2022, compared to RUB 0.2 bn in H1 2021
- Year-on-year, the Group decreased its net interest-bearing liabilities to EBITDA ratio to 3.68x as of 30 June 2022
KEY EVENTS AFTER THE REPORTING PERIOD
- In August 2022, the Group paid out an interim dividend of EUR 8.5 mln.
The full announcement is available at https://okeygroup.lu/press-center/press-releases/2022/1810/.
ARMIN BURGER, O`KEY GROUP CEO, COMMENTED:
“In the first half of 2022, the Group delivered strong operational and financial results, despite the unprecedented geopolitical and macroeconomic turmoil that the global economy faced. The Group demonstrated a year-on-year improvement in both gross and EBITDA margins in H1 2022.
Since March 2022, we have successfully revised our supplier portfolio and adjusted the supply chain and logistics to ensure full-shelf product availability. Our focus remains on domestic supply, with around 80% of the assortment sourced locally.
We continued to develop the three pillars of O'KEY Group's business model: modern O'KEY hypermarkets, fast-growing DA! discounters, and the e-grocery business. The Group acquired and relaunched under a new concept 4 O'KEY hypermarkets in the Moscow region, opened 12 DA! discounters in Central Russia and added 6 pick-up points for online orders at O'KEY hypermarkets in Moscow and St. Petersburg.
For O'KEY hypermarkets, we went on optimising the store portfolio and streamlining the cost base. In Q2 2022, we temporarily limited promotional activity at hypermarkets in order to ensure sufficient stock levels and full on-shelf availability, as well as protect our margins in a highly inflationary environment. In H1 2022, the hypermarkets demonstrated a strong EBITDA margin of 8%.
DA! discounters showed a 63% YoY revenue growth with a record-high like-for-like increase of 35% in H1 2022. In Q2 2022, the discounter business reached 28.5% of the Group's net retail revenue. As the chain continued to ramp up in H1 2022, its EBITDA grew more than twofold, and the EBITDA margin improved substantially to 6.8%.
We expect the discounters to remain a key driver of the Company's continued top-and bottom-line growth and, in several years, to constitute half of the Group's business. In 2022, we plan to open up to 45 new DA! discounters and undergo a concept update in up to 8 O'KEY hypermarkets.”