O`KEY Group S.A. (LSE, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, has announced its unaudited operating results for the third quarter (Q3) and the first nine months (9M) of 2022.
Q3 2022 OPERATING HIGHLIGHTS
- Group net retail revenue rose by 10.0% YoY to RUB 47.8 bn, driven mainly by discounters’ LFL performance and O`KEY’s online sales growth and supported by discounter stores openings.
- O`KEY hypermarkets’ net retail revenue declined by 1.2% to RUB 34.4 bn in Q3 2022, mainly due to a year-on-year drop in customer footfall in shopping malls resulting from continued changes in the retail brands portfolio. Nevertheless, the decline in LFL traffic was almost offset by additional revenue from four new O`KEY stores opened in April 2022.
- DA! discounters again showed one of the fastest paces of growth, with their net retail revenue adding 54.8% YoY to reach RUB 13.4 bn. The increase was led by a 26.1% LFL net retail revenue growth and the chain’s expansion.
9M 2022 OPERATING HIGHLIGHTS
- Group net retail revenue increased by 10.3% YoY to RUB 144.6 bn.
- O`KEY hypermarkets’ net retail revenue declined by 1.1% YoY to RUB 105.7 bn.
- O’KEY total online sales rose by 44.3% YoY to RUB 4.3 bn and accounted for 4.1% of O`KEY's net retail revenue.
- DA! discounters’ net retail revenue grew by 60.2% YoY to RUB 38.9 bn, driven by a 32.0% LFL net retail revenue growth and the chain’s expansion.
- The Group opened 20 DA! discounters (net of closures) in 9M 2022.
- DA! discounters’ share in the Group’s net retail revenue increased by 8.4 pps YoY to 26.9%.
- The Group expects to be receiving half of its revenue from discounters in the medium term.
- In 2022, the Group plans to open up to 45 new DA! discounters and have nine O`KEY hypermarkets in its portfolio in an updated concept.