OKey increased its selling space by 19.3% in the period

O'Key increased its selling space by 19.3% in the period

Russian retailer O'Key Group has said it delivered a "strong" set of like-for-like results in the first half of the year.

In the six months to the end of June, net sales climbed 21.5% to RUR33.19bn (US$1bn), the group reported today (15 July). Like-for-like sales were up 7.5% in the period.

O'Key said it opened two new stores in the period, bringing the total to 85. It increased its selling space by 19.3%.

"In a relatively stable trading environment we achieved a meaningful increase both in the number of purchases and in the size of our customers' average shopping basket," said CEO Patrick Longuet.

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Press Release

12.07.2013

OKEY GROUP S.A. announces unaudited operating results for 2Q and 1H 2013

O'KEY GROUP S.A. (the "Company" or "O'KEY"), one of the leading Russian food retailers, announces its unaudited operating results for 2Q and 1H 2013.

Operating Highlights

 

  • LFL traffic increased by 1.7% in 2Q
  • LFL revenue growth of 9.6% in 2Q
  • 2Q net retail revenue increased by 21.5% y-o-y
  • Selling space exceeded 437,000 sq.m. as at 30 June 2013

Commenting on the results, O'KEY CEO Patrick Longuet said:

"In Q2 2013 we delivered another strong set of LFL results. In a relatively stable trading environment we achieved a meaningful increase both in the number of purchases and in the size of our customers' average shopping basket.

"The LFL number of purchases increased by 1.7% and at the same time our average basket expanded by 7.8% y-o-y. As for the number of purchases, we are very satisfied with the LFL progress there as it exceeded both the first quarter results and our targets.

"On the average basket side, the accelerated growth of 7.8%, compared to 5% in Q1, was mainly caused by an increase in the number of items per basket. This increase occurred in March and continued into Q2 as a tendency. It is a positive sign pointing at improvements in confidence and a real increase in spending of consumers in our stores.

"We opened one hypermarket in the second quarter, increasing the selling space to 437,000 sq.m.. Our development pipeline has been expanding rapidly, and during the first six months of 2013 we signed 7 new contracts for the opening of future stores, 5 of which are hypermarkets, 2 are supermarkets, and we also secured 10 locations for the new project."

Key operating results:

 

Number of new stores

1H 2013

1H 2012

 

Company

2

4

 

Hypermarkets

2

3

 

Supermarkets

-

1

 

 

     

Stores at the end of the period

1H 2013

1H 2012

 

Company

85

75

 

Hypermarkets

54

45

 

Supermarkets

31

30

 
       

Trading space at the end of the period,

'000 sq.m.

1H 2013

1H 2012

Growth

Company

437

368

18.8%

Hypermarkets

396

329

20.4%

Supermarkets

41

39

5.1%

       

Net Retail Revenue, mln RUB

1H 2013

1H 2012

Growth

Company

63,865

53,535

19.3%

 

 

 

 

LFL indicators, %

1H 2013

1H 2012

 

Retail Revenue, LFL

7.5

7.9

 

Average ticket, LFL

6.4

3.7

 

Number of tickets, LFL

1.1

4.0

 
       

Net Retail Revenue, mln RUB

2Q 2013

2Q 2012

Growth

Company

33,087

27,227

21.5%

       

LFL indicators, %

2Q 2013

2Q 2012

 

Retail Revenue, LFL

9.6

4.0

 

       Average ticket, LFL

7.8

2.8

 

       Number of tickets, LFL

1.7

1.2

 

 

Number of New Stores Under Development

 

Locations secured

Preparing documentation/ obtaining construction permits

Land works, shell&core construction in progress

Fit-out in progress

Obtaining operating permit

Total number of stores under development

Hypermarkets

9

7

9

3

0

28

Supermarkets

19

2

1

0

0

22

 

___________________________________________________________________________________________

COMPANY OVERVIEW

"O'KEY" is one of the largest retail chains in Russia. Its primary retail format is the modern Western European hypermarket under the "O'KEY" brand, complemented by "O'KEY - Express" supermarkets.

The Company opened its first hypermarket in St. Petersburg in 2002 and has demonstrated continuous growth ever since. As at December 31, 2012, O'KEY operated 83 stores in 21 cities across Russia: 52 hypermarkets with an aggregate selling space of approximately 387,000 square meters and 31 supermarkets with an aggregate trading space of approximately 41,000 square meters. As at December 31, 2012, O'KEY employed more than 23,000 people.

In accordance with the unaudited consolidated financial statements for the FY 2012, O'KEY's revenue was RUR 117.3 billion, like-for-like revenue growth rate was 7.0% and its EBITDA margin was 8.0%.

Original source: O'Key Group