RUSSIA: O'Key books jump in sales, profits
- Net profit up 44.4%
- EBITDA up 25.5%
- Revenue up 26%
Russian retailer O'Key has booked a jump in full-year sales and profits for fiscal 2012, as the group expanded into new cities in Russia.
The company said today (29 April) that revenues rose 26% to RUB117.3bn (US$3.79bn). During the period the company opened 12 new outlets, expanding its presence into four new cities in Russia. The group saw like-for-like gains, with same store sales up 7%.
"While most Russian retailers benefited from growing inflation in 2012, few managed to deliver positive LFL traffic growth. On a like-for-like basis, our store traffic grew by 2.5% during 2012, and as the year progressed, more and more customers chose to shop at O'Key stores," president and CEO Patrick Longuet said.
O'Key also booked "record" margins, driving profit gains. EBITDA increased 25.5% to RUB9.42bn, while net profit was up 44.4% to RUB4.7bn.
Looking to the remainder of the year, the Russian retailer was upbeat, suggesting that there was further scope to improve efficiency and boost margins.
O'KEY GROUP ANNOUNCES FY 2012 AUDITED FINANCIAL RESULTS
44.4% INCREASE IN NET PROFIT TO 4.7 BILLION ROUBLES
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 audited consolidated IFRS financial results for the year ended 31 December 2012. These and the company's 2012 Annual Report have been published on the company's website, http://okeyinvestors.ru/.
2012 Year-end Highlights:
Total revenue grew 26.0% to RUB 117.3 billion, while like-for-like revenue increased by 7.0% year-on-year (y-o-y)
12 new stores opened during 2012, with a presence established in 4 new cities
Gross margin increases to a historic high of 23.5%
44.4% increase in net profit to RUB 4.7 billion
39.6% increase in cash flows from operating activities to RUB 8.9 billion
O'Key Group CEO Patrick Longuet said: "We are delighted with the progress we made during 2012, having enjoyed a successful year on several fronts. We grew our retail revenues by 25.7% to RUB 115.9 billion, or by 7% on a like-for-like basis, to deliver on the sales and LFL revenue targets that were set at the beginning of 2012. Furthermore, our EBITDA margin of 8.0%, demonstrates that our focus on delivering exceptional customer experience is generating high returns.
"While most Russian retailers benefited from growing inflation in 2012, few managed to deliver positive LFL traffic growth. On a like-for-like basis, our store traffic grew by 2.5% during 2012, and as the year progressed, more and more customers chose to shop at O'KEY stores. The strength of our customer oriented business model and the strength of our brand played a significant role in helping us achieve these LFL results.
"We opened 12 new stores during 2012, which included openings in 4 new cities, ensuring that O'KEY is well on its way to meeting its target of establishing a presence in 25 Russian cities by 2015. In terms of our expectations moving forward, the organic expansion of our hypermarket network remains a priority. We currently have 26 hypermarkets in our pipeline and we are rapidly expanding our land bank to ensure that our flow of planned new store openings remains high.
"Our long-term profitability target remains at 8% on the EBITDA line, and we still think there is scope to improve our operating efficiency going forward. We continue to develop our range of products through our non-food offering, our private labels and own production, and as efficiencies are realised, we intend to pass these savings on to our customers."
Original source: O'Key
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