O'KEY GROUP ANNOUNCES OPERATING RESULTS FOR Q4 AND 12M 2019
O'KEY Group S.A. (OKEY)
Press release 30 January 2020 O'KEY GROUP ANNOUNCES OPERATING RESULTS FOR Q4 AND 12M 2019
O'KEY Group S.A. (LSE: OKEY, the 'Group') announces its unaudited operating results for the fourth quarter and twelve months of 2019. All materials published by the Group are available on its website www.okeygroup.lu.
12M 2019 operating highlights
Q4 2019 operating highlights
Stores development of the Group
Group key operating indicators for 12M 2019
Key operating indicators by month
O'KEY: Operating review
In Q4 2019, O'KEY did not open any new hypermarkets. As at 31 December 2019, the total number of stores was 78, with the total selling space at 529,055 sq. m. Key operating indicators for 12M 2019
Key operating indicators for the quarter
Underlying O'KEY net retail revenue dynamics by month
In Q4 2019, in line with the previously announced assortment improvement strategy, the Company significantly increased direct imports of fruit and vegetables, expanded the ranges of fresh and ultra-fresh products, and also continued its private label development programme. We grew our private label ranges across different price categories, including That's What You Need, O'KEY and Selection of O'KEY, by 494 SKUs while significantly expanding the range of seasonal products. We also rebranded a number of private labels to reflect our new design concept. The fourth quarter was marked by a significant increase in LFL turnover - by 26% for the O'KEY and O'KEY Selection private labels. In Q4 2019, O'KEY's own production showed strong positive dynamics in LFL growth - up by 0.5%. During the reporting period, several new product ranges were launched in our own production at the federal level, and the Hot Bread project was started within the O'KEY Bakery segment to provide our customers with freshly baked bread three times a day. We note that weaker-than-expected LFL performance during the Q4 was mainly driven by lower LFL in December, which was triggered by several one-off factors, namely the renovation of one of our shopping malls, to be completed in Q2, and abnormal weather conditions, leading to weaker-than-expected sales in seasonal categories. Excluding these one-off factors, sales in December would have been in line with the positive trends we observed in October and November. It is also worth noting that we observed trends of price deflation in December, driven by slowing inflation.
DA!: Operating review
In Q4 2019, in line with the previously announced plans, the Company opened 14 new discounter stores in Moscow, Yaroslavl, Klin, Tver, Kaluga, Tula, and Ryazan Regions, increasing the total selling space by 9,634 sq. m to 69,253 sq. m as at 31 December 2019.
Key operating indicators for 12M 2019
Key operating indicators for the quarter
Key operating indicators by month
The Company demonstrated an increase in LFL revenue for Q4 2019, driven by average ticket gains, and a continued growth in LFL traffic. In Q4 2019, the Company continued improving its value proposition for customers, enhanced the quality of goods and customer service in stores. In Q4 2019, the Company rebranded several existing private label brands and introduced new private label SKUs, expanded the range of products, including seasonal ones.
OVERVIEW O'KEY Group S.A. (LSE: OKEY, RAEX - 'ruA-') operates under two main formats: hypermarkets under the O'KEY brand and discounters under the DA! brand. As at 31 December 2019, the Group operates 178 stores across Russia (78 hypermarkets and 100 discounters). 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 six e-commerce pick-up points in Moscow and six e-commerce pick-up points in St. Petersburg. The Group operates four distribution centres across the Russian Federation - two in Moscow and two in St. Petersburg. As at 31 December 2019 the Group employs more than 20,000 people. For the full year 2018, revenue totaled RUB 161,303,411 thousand, EBITDA reached RUB 8,644,008 thousand, and net loss for the period amounted to RUB 599,755 thousand. The O'KEY shareholder structure is as follows: NISEMAX Co Ltd - 44.79%, GSU Ltd - 29.52%, free float - 25.69%.
DISCLAIMER These materials contain statements about future events and expectations that are forward-looking statements. These statements typically contain words such as 'expects' and 'anticipates' and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.
For further information please contact: Anton Farlenkov Corporate Development Director +7 919 777 0220
Alla Golovatenko Public Relations Manager +7 926 169 9117 |
ISIN: | US6708662019 |
Category Code: | MSCH |
TIDM: | OKEY |
LEI Code: | 213800133YYU23T4L791 |
Sequence No.: | 43596 |
EQS News ID: | 964127 |
End of Announcement | EQS News Service |
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