• Net profit climbs 36%
  • EBITDA up 33.7%
  • Sales grow 26.5%
OKey attributed growth in the period to an increase in selling space and store traffic

O'Key attributed growth in the period to an increase in selling space and store traffic

Russian retailer O'Key has recorded an increase in half-year profits on the back of higher sales.

Earnings in the six months to the end of June climbed 36% to RUR1.47bn (US$45.5m), the group reported today (30 August). EBITDA amounted to RUR3.7bn, a 33.7% increase on the prior-year period.

O'Key attributed growth in the period to an increase in selling space and store traffic.

Sales grew 26.5% to RUR54.12bn, driven by like-for-like sales growth of 7.9%. Like-for-like traffic grew by 4% in the period.

The retailer reiterated its full year guidance of 25-30% revenue growth. O'Key said it expects its EBITDA margin to be at 7.8% - 8%.

Show the press release



O'Key Group S.A., ("O'Key Group", "the Group" or "the Company"), one of the leading food retailers in Russia (LSE ticker: OKEY), today released its unaudited interim consolidated IFRS financial results for the period ended 30 June 2012. All related materials have been published on the Company's website, okeyinvestors.ru/.

1H 2012 Highlights:

· Total revenue grew 26.5% to RUB 54.1 billion, while like-for-like revenue increased 7.9% year-on-year (y-o-y)
· 4 new stores opened for operation during the first six months of 2012
· Gross margin reaches 22.5%
· EBITDA increases by 33.7%
· 36% increase in net profit to RUB 1.5 billion

O'Key Group CEO Patrick Longuet said: "Despite pressures facing food retailers in Russia, the strength of our business model helped generate a 26.5% increase in total revenues to RUB 54.1 billion and a 33.7% increase in EBITDA to RUB 3.7 billion.
"Growth for the reporting period was mostly due to an increase in selling space, while store traffic continues to grow on a like-for-like basis, which is testament to the strength of our brand and our product offering. Our average ticket grew in-line with Russia's CPI rate of inflation, which remained at a modest 3.8%.

"We continue to benefit from our growing scale and our centralized purchasing function as it increases our buying power and enables us to negotiate improved commercial terms. This is keeping our margins high and helps mitigate growing SG&A expenses as we increase our footprint.

"We wish to reiterate our ambition to keep growing our selling area by 30% and we also reiterate the full year guidance we have provided on revenue, which we expect will grow by 25-30%, on our EBITDA margin which we expect to be at 7.8% - 8.0% and on our CAPEX commitments which remain at approximately RUB 15 billion for 2012. In addition, to provide greater insight into our development pipeline, you will see that we are increasing transparency and disclosing total number of stores under development and their respective completion stages. This information provides clarity on our actual committed pipeline, as well as our anticipated store completion dates and it demonstrates that our growth plans are very much intact."


Original source: O'Key