OKEI Hypermarket Network

O'key is a Russian retail chain that specializes in food trade. The seventh largest retailer in Russia.

The company opened its first hypermarket in St. Petersburg in 2002. As of 2017, it has more than 100 stores in the largest cities of Russia - in the North-West, South, Central, Ural and Siberian regions.

Information Technology

2020

2018

2017: New Chief information officer - Tariel Bokuchawa

In July 2017 "OK" Tariela Bokuchavu , the retail chain appointed a director of information technology. In his post, Chief information officer Bokuchava replaced. Nicholas Zatravin More. here

2008

In 2008, "O'key" acquired Microsoft Dynamics AX's 750th user license. The implementation of the ERP system and the automation of business processes was carried out by Korus Consulting.

History and Performance Indicators

2024: Exclusion of securities from the London Exchange

In mid-May 2024, the Russian chain of O'Kay stores announced the exclusion of its securities from the London Exchange (LSE). The last day of the company's listing will be June 17, 2024.

We hereby inform you that the company has received notice from its depository bank the Bank of NY Mellon of its intention to terminate the current depositary agreement in relation to the GDRs of the group (Regulation S, ISIN: US6708662019), the retailer said in a statement.

source = O'Kay

It also specifies that this notice does not mean the immediate termination of the GDR program. Upon receipt of notice, the Company has 90 days to appoint a new depositary and at least another 90 days to terminate the program in the event that no such successor is appointed.

The group is currently working on all possible scenarios in connection with the notification received. The company's decision on this issue and other material information will be published at the appropriate time, when appropriate, the company's message adds.

By early January 2024, the O'Kay Group operates 297 stores in, Russia including 77 O'Kay hypermarkets and 220 discounters. " Yes! By the specified date, more than 49% of the company belongs to the Nisemax Co Ltd group, another 34% - GSU Ltd, 16.75% of the shares are in free float.

O'Kay held an IPO on the London Stock Exchange in 2010, and about 10 years later the company received a secondary listing on the Moscow Exchange. By May 2024, the retailer's receipt is also on the Kazakhstan AIX exchange. In addition, the company received an initial listing of its GDRs on the Moscow Exchange.^[1]

2023

Loss of 2.88 billion rubles

At the end of 2023, the O'Kay chain of stores received a loss of 2.88 billion rubles, while a year earlier the company recorded a net profit of 242 million rubles. The retailer announced such data in April 2024.

Large cash losses at O'Kay were associated with losses with the recognition of non-cash losses from exchange rate differences and an increase in financial expenses. Net loss on exchange rate differences of the O'Key group amounted to 1.07 billion rubles compared to a profit of 313 million rubles in 2022. The loss is non-monetary in nature, the company explains.

source = O'Kay

The loss was due to the depreciation of the ruble during 2023 and mainly related to intra-group loans denominated in US dollars, as well as lease agreements denominated in foreign currency. Losses from imports did not have a significant impact on the group's results, the retailer said in a report.

EBITDA According to the results of 2023, the indicator of the O'Key hypermarket chain decreased by 5.5% compared to 2022 - to 12.64 billion rubles, and the profitability of this indicator - to 8.8% from 9%. EBITDA of the discounter network "," on Yes! the contrary, increased by 20.3% to 4.4 billion rubles, the network's EBITDA margin increased to 6.9% from 6.8%. At the same time, the gross profit of the O'Key group increased by 1.8% to 47.7 billion rubles, the gross margin decreased to 22.9% from 23.2%.

As of December 31, 2023, the net debt of the O'Key network reached 35.6 billion rubles, which is 5.6% more than a year earlier, and the group's total debt during this time increased by 3.6% and amounted to 47.13 billion rubles.

By the end of 2023, the O'Key network included 77 hypermarkets and 220 discounters. The total revenue of hypermarkets in 2023 decreased by 3.3%, to 144 billion rubles, and the revenue of discounters, on the contrary, increased by 19.8% to 63.9 billion rubles.^[2]

Revenue growth by 2.8% to 205.8 billion rubles

According to the results of 2023, O'Kay's net retail revenue reached 205.8 billion rubles, an increase of 2.8% compared to the previous year. The Russian retailer published such data at the end of January 2024.

It also follows from the materials of the group that in 2023 the net retail revenue of O'Key hypermarkets decreased by 3.4%, to 141.9 billion rubles. The company explained this by a drop in the revenue of comparable stores in the network and a reduction in retail space.

source = O'Kay

O'Kay's total online sales grew by 24% in annual terms, to 7.7 billion rubles. The Internet segment accounted for about 5.4% of the company's revenue. As of the end of December 2023, the company organized 36 points for assembling and issuing online orders in O'Key hypermarkets: 12 in Moscow, 19 in St. Petersburg, 1 in Sochi and 4 in Krasnodar.

According to the results of 2023, the net retail revenue of the Yes! Discounter chain increased by 19.8% compared to a year ago, to 63.8 billion rubles. The press release clarifies that during 2023 another 26 "Yes!" Discounters were opened, their total number increased to 220 stores.

As of December 31, 2023, the group managed 77 O'Key hypermarkets and 220 Yes! Discounters with a total trading area of ​ ​ 663,865 sq. meters. "Yes!" stores accounted for about 31% of net retail revenue in 2023.

For the 12 months of 2023, the group closed three and opened one hypermarket "O'Kay" as part of the revision and optimization of the property portfolio. In addition, in 2023, retail space was optimized in three O'Key hypermarkets, as a result of which O'Key's retail space decreased in annual terms by 10,034 square meters. m, or 1.9%. By the end of 2023, the group employed 21,900 people.

O'KEY GROUP ANNOUNCES 5.2% INCREASE IN NET RETAIL REVENUE

2022: Revenue growth by 8.1% to 202.17 billion rubles

The revenue of the O'Key hypermarket chain in 2022 increased by 8.1% compared to 2021 - from 187.1 billion to 202.17 billion rubles. The company's net profit increased by 16.2% - from 208 million to 242 million rubles. The retailer released such data in mid-April 2023.

According to the material of the O'Key network, the revenue of hypermarkets included in it in 2022 decreased by 2.3%, to 148.82 billion rubles, the revenue of discounters, on the contrary, increased 1.5 times, to 53.35 billion rubles.

Commercial, general and administrative expenses of the group in 2022 increased by 13.1%, to 40.39 billion rubles, or to 20% of revenue from 19.1% in 2021. The growth was mainly due to an increase in personnel costs - up to 8.3% of revenue from 8.2% a year earlier, which was due to the indexation of salaries of hypermarket employees, as well as the opening of new stores in the group.

The amount of net cash received from operating activities in 2022 decreased by 6.2%, to 12.96 billion rubles. Net investment cash flow amounted to 6.47 billion rubles against 3.93 billion rubles in 2021. The Group invested about 2.6 billion rubles in the development of the hypermarket business, including the acquisition of four hypermarkets in the Moscow region, and over 4 billion rubles (excluding VAT) in the expansion of the discounter network.

In 2022, net profit from exchange rate differences of the O'Key group amounted to 313 million rubles, compared with a profit of 206 million rubles a year earlier. Net profit from foreign exchange differences was mainly due to lease agreements in foreign currency, as well as profit from foreign exchange differences from direct import operations, the company noted.

The retailer's total debt increased by 20.3% compared to the figure at the end of 2021, to 45.5 billion rubles, net debt - 18.8%, to 33.71 billion rubles. At the end of 2022, O'Kay Group consisted of 78 hypermarkets and 194 discounters.

O'KEY GROUP ANNOUNCES A 16.2% INCREASE IN NET PROFIT OF THE GROUP AND A MORE THAN TWO-FOLD INCREASE IN EBITDA OF THE DISCOUNTER NETWORK "YES!" IN 2022

2020

Revenue growth by 5.6%, to 174.34 billion rubles, net loss - 1.44 billion rubles

The revenue of the O'Key hypermarket chain at the end of 2020 reached 174.34 billion rubles, which is 5.6% more than a year earlier. Hypermarkets directly accounted for sales in the amount of 138.34 billion rubles (+ 0.8%), discounters - 26 billion rubles (+ 45.2%).

The retailer's net loss in 2020 amounted to 1.44 billion rubles, while in 2019 there was a net profit of 747 million rubles. Cash losses in the company were associated with a loss from exchange rate differences in the amount of 1.787 billion rubles (compared with a profit of 938 million rubles a year earlier). Foreign exchange loss primarily relates to intra-group loans denominated in US dollars and leases denominated in foreign currency, the report said.

Commercial, general and administrative expenses of the group in 2020 increased by 3.2%, to 32.79 billion rubles, while their share in revenue decreased by 0.5 percentage points, to 18.8%. The amount of net cash received from operating activities in 2020 amounted to 11.95 billion rubles, compared to 11.078 billion rubles a year earlier.

The retailer's total debt grew by 14.2%, to 36.23 billion rubles. Net debt increased by 8.8%, to 28.51 billion rubles.

In 2020, O'Kay opened 18 discounters (net of closures). The total number of chain stores increased to 118, the retail area increased by 16%. By the end of December, the chain had 77 hypermarkets (at the end of 2019 there were 78) and 118 discounters under the brand name "Yes!" The total retail area of ​ ​ the network for the year decreased by 1.8%.

In 2020, O'Kay opened the first hypermarket in an updated format (after the reconstruction of the old store). During 2020, the group opened 18 discounters in Moscow and the Moscow Region, and their retail area grew by 16%.^[3]

Joining the SberMarket service

On October 15, 2020, SberMarket announced that, together with O'KEY Group S.A., the Russian food retail chain signed a cooperation agreement. The Sberbank market has begun accepting orders, assembling and delivering goods from the O'KEY hypermarket chain. Read more here.

2017

• 12.8% CAGR revenue, 2009-2017
• RUB 178 billion revenue in 2017
• 228 million customers in 2017
• 78 hypermarkets
• 578,000 m2 of retail space
• 67 discounters

Notes