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 fourth quarter (Q4) and the twelve months (12M) of 2022.
12M 2022 OPERATING HIGHLIGHTS
- Group net retail revenue increased by 8.1% YoY to RUB 200.2 bn, driven by new store openings, strong LFL performance of DA! discounters and O`KEY’s online sales growth.
- O`KEY hypermarkets’ net retail revenue decreased by 2.3% YoY to RUB 146.9 bn, due to a LFL revenue decline, which was partially offset by revenue from new O`KEY stores.
- O`KEY total online sales rose by 32.6% YoY to RUB 6.2 bn, representing 4.2% of O`KEY's net retail revenue.
- DA! discounters’ net retail revenue surged by 53.2% YoY to RUB 53.3 bn, boosted by a 26.8% increase in LFL revenue and a 26.7% expansion in selling space.
- DA! discounters’ share in the Group’s net retail revenue grew by 7.8 pps YoY to 26.6%. In the medium term, the Group expects up to a half of its revenue to come from discounters.
- In 12M 2022, the Group opened four new O`KEY hypermarkets in the Moscow Region and completed a full renovation of a hypermarket in Sochi. By the end of 2022, the Company operated 79 hypermarkets, of which nine had been refurbished in line with the modern concept.
- The Group opened 43 DA! stores, bringing the total to 194 by the end of 2022.
Q4 2022 OPERATING HIGHLIGHTS
- Group net retail revenue grew by 2.9% YoY to RUB 55.6 bn.
- O`KEY hypermarkets’ net retail revenue decreased by 5.3% to RUB 41.2 bn in Q4 2022 amid softer consumer demand, macroeconomic slowdown due to continuing geopolitical and macroeconomic turbulences.
- The YoY revenue dynamics in Q4 2022 was also affected by the relatively high base of Q4 2021, which saw a boost in customer footfall and average basket size across the two chains after the COVID-related restrictions had been eased.
- DA! discounters' net retail revenue increased by 37.0% YoY to RUB 14.4 bn, supported by a 14.5% LFL net retail revenue growth and the chain’s expansion.