Last checked at 11 Oct 2013 11:06
Press Release
11.10.2013
OKEY GROUP S.A. announces unaudited operating results for 3Q and 9M 2013
O'KEY GROUP S.A. (the "Company" or "O'KEY"), one of the leading Russian food retailers, announces its unaudited operating results for 3Q and 9M 2013.
Operating Highlights
· LFL revenue growth of 9.2% in 3Q
· LFL traffic increased by 0.7% in 3Q
· 3Q net retail revenue increased by 19.9% y-o-y
· Selling space totalled 452 thsd sq.m. as of 30 September 2013
Patrick Longuet, CEO of O'KEY Group, commented:
"We had a very successful quarter both in terms of operating results and in securing our future expansion plans. On operational side, we maintained impressive growth in LFL revenue, where basket growth exceeded inflation and the LFL number of transactions continued to increase year-on-year. On the expansion side, we added a record number of new projects to our development pipeline.
"LFL revenue increased by 9.2% mainly driven by the expansion of our average basket, which stood at 8.4% for the quarter. Progress in our average basket outpaced inflation trends and was supported by the growing number of items per basket. At the same time, traffic was not compromised by the strong progress on the basket side, as it grew by 0.7% in Q3.
In July and August, we had particularly strong results in both average basket and the number of purchases, which were stimulated by a successful promotional campaign. We witnessed a slowdown in revenue progress in September, which we attribute to a stronger comparative base of 2012, when an intensive promotion was in place to mark the Company's 10th anniversary and we had an additional weekend day when trading is higher.
"In terms of our expansion, we opened two hypermarkets during the third quarter and continued to work actively on securing new locations. Our development pipeline has increased significantly in Q3 2013 as we signed twelve new contracts, eight of which are for hypermarkets, two are for supermarkets and the remaining two are for the new project. As of 30 September 2013, the total number of projects reached 34 hypermarkets and 26 locations for smaller formats."
Key operating results:
Number of new stores | 9M 2013 | 9M 2012 | |
Company | 4 | 6 | |
Hypermarkets | 4 | 4 | |
Supermarkets | - | 2 | |
| |||
Stores at the end of the period | 9M 2013 | 9M 2012 | |
Company | 87 | 77 | |
Hypermarkets | 56 | 46 | |
Supermarkets | 31 | 31 | |
Trading space at the end of the period, '000 sq.m. | 9M 2013 | 9M 2012 | Growth |
Company | 452 | 379 | 19.3% |
Hypermarkets | 412 | 338 | 21.9% |
Supermarkets | 41 | 41 | 0.0% |
Net Retail Revenue, mln RUB | 9M 2013 | 9M 2012 | Growth |
Company | 96,870 | 81,072 | 19.5% |
LFL indicators, % | 9M 2013 | 9M 2012 | |
Retail Revenue, LFL | 8.1 | 6.7 | |
Average ticket, LFL | 7.1 | 3.9 | |
Number of tickets, LFL | 0.9 | 2.7 | |
Net Retail Revenue, mln RUB | 3Q 2013 | 3Q 2012 | Growth |
Company | 33,006 | 27,536 | 19.9% |
LFL indicators, % | 3Q 2013 | 3Q 2012 | |
Retail Revenue, LFL | 9.2 | 4.5 | |
Average ticket, LFL | 8.4 | 4.2 | |
Number of tickets, LFL | 0.7 | 0.2 |
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 | 13 | 6 | 7 | 8 | 0 | 34 |
Supermarkets | 21 | 2 | 0 | 3 | 0 | 26 |
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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 of June 30, 2013, O'KEY operated 85 stores in 21 cities across Russia: 54 hypermarkets with an aggregate selling space of approximately 396,000 square meters and 31 supermarkets with an aggregate trading space of approximately 41,000 square meters. As of June 30, 2013, O'KEY employed more than 24,000 people.
In accordance with the consolidated financial statements for the 1H 2013, O'KEY's revenue was RUB 64.7 billion, like-for-like revenue growth rate stood at 7.5% and its EBITDA margin was 6.6%. ____________________________________________________________________________________________
For further information please contact:
Maksim Kravtsov Artem Glushchenko
Head of Investor Relations Head of Public Relations
Num. +7(495)6636677, ext. 220 Num. +7(495)6636677, ext. 338
e-mail: ir@okmarket.ru e-mail: corpcom@okmarket.ru
www.okmarket.ru www.okmarket.ru