Russian O`KEY Group S.A., owner of the Discount Retail Chain DA! has announced its unaudited operating results for the second quarter and the first six months of 2020.
Q2 2020 operating highlights
DA! discounters net retail revenue jumped by 50.8% YoY to US $95 mln, realising $ 457 per-square-meter, in Q2 2020, driven primarily by a 34.7% LFL net retail revenue growth, and supported by the expanded selling space.
H1 2020 operating highlights
DA! discounters net retail revenue grew by 47.0% YoY to US $172 mln in H1 2020, as a result of a 31.3% LFL net retail revenue growth and expanded selling space.
Operating review
Group Net Retail Revenue in Q2 and H1 2020
DA! discounters
As stores with a well-balanced, high-quality assortment at competitive prices, DA! discounters were the main growth drivers for the Group in Q2 2020. During the pandemic months, the customers greatly appreciated both the shopping experience and selection of products on offer.
The ongoing efforts to improve customer value proposition and the quality of its products and services, while aiming to continue offering competitive prices for essential goods, resulted in higher customer loyalty and impressive top-line growth. Compared to the sustainable average growth of over 30%, the DA! stores showed a significant acceleration in revenue growth during Q2 2020. DA! discounters net retail revenue soared by 50.8% YoY to US $95mln, realising $ 457 per-square-meter, driven mainly by LFL net retail revenue growth and supported by expanded selling space.
The DA! stores delivered a 34.7% LFL net retail revenue increase during Q2 2020. The growth is attributable to a 47.2% increase in the average LFL ticket, while LFL traffic was down by 8.5% in Q2 2020.
Customer traffic fell year-on-year in April and May as a result of less frequent store visits due to the COVID-19 restrictions. However, this accelerated to a growth of 11.5% YoY in June, as the self-isolation was eased. The average ticket growth, conversely, peaked in April-May due for the most part to the higher number of items per basket.
Thanks to the balanced selection on offer, the brand showed an impressive growth in sales across all product categories without any substantial changes in the sales mix during Q2 2020. The share of private labels totalled 50% of all DA! sales in Q2 2020.
O'KEY Group opened three and closed three DA! Discounters in Q2 2020, and operates 100 discounters with 69,313 sq. m. of selling space as of 30 June 2020.
OVERVIEW
O'KEY Group S.A. is one of the leading grocery retailers in Russia, operating hypermarkets under the O'KEY brand and discounters under the DA! brand.
As of June 30, 2020, the Group operates 177 stores across Russia (77 hypermarkets and 100 discounters) with a total selling area of 589,894 square meters. The company opened its first hypermarket in St. Petersburg in 2002 and has since demonstrated continuous growth. O'KEY is the first Russian food retailer to launch e-commerce operations in St. Petersburg and Moscow, offering a full range of hypermarket products for home delivery. The Group has six e-commerce pick-up points in Moscow and six e-commerce pick-up points in St. Petersburg. In 2015, the Group launched the first discount chain in Russia under the DA! brand. The Group operates four distribution centres throughout the Russian Federation - two in Moscow and two in St. Petersburg. The company employs 20,000+ people.
In 2019, Group's revenue totalled US $ 2.24 billion, while EBITDA reached US $ 190 million and net income climbed to US $ 10.15 million.
The O'KEY shareholder structure is as follows: NISEMAX Co Ltd - 44.79%, GSU Ltd - 29.52%, free float - 25.69%.
Click here for more: https://okeygroup.lu/upload/iblock/cef/Q2%202020%20ENG_final.pdf
Comments