Press release

1 April 2025

O`KEY GROUP REPORTS NET PROFIT OF RUB 2.0 BN

AND 20.3% EBITDA GROWTH IN FY 2024

 

O`KEY Group S.A. (AIX, MOEX: OKEY, the “Group”), one of Russia’s leading food retailers, has announced its financial results for the full year of 2024 based on its audited consolidated financial statements.

All materials published by the Group are available on its website okeygroup.lu.

FY 2024 financial highlights[1]

• Total Group revenue increased by 5.5% YoY to RUB 219.4 bn, driven mainly by LFL net retail revenue growth from both O’KEY hypermarkets and DA! discounters.
• Group gross profit rose by 7.9% YoY to RUB 51.4 bn, while gross margin grew by 0.5 pps to 23.4%, led by efficient procurement and shrinkage cost management.
• Group EBITDA increased by 20.3% YoY to RUB 20.5 bn, while EBITDA margin grew by 1.1 pps to 9.3% due to improved profitability in both business segments.
• O’KEY hypermarkets’ EBITDA increased by 6.2% YoY to RUB 13.4 bn, while EBITDA margin rose by 0.3 pps to 9.1%, driven by revenue growth and optimisation of operating expenses.
• DA! discounters’ EBITDA surged by 61.0% YoY to RUB 7.1 bn, while EBITDA margin rose 2.8 pps YoY to 9.7% in FY 2024. This was driven by both optimisation of operating expenses and a higher share of mature DA! stores in the Group’s portfolio.
• The Group reported a net profit of RUB 2.0 bn in FY 2024, compared to a net loss of RUB 2.9 bn in FY 2023.

 

Group profit and losses highlights in FY 2024

RUB mln	2024	2023	∆ YoY, %
Total Group revenue	219,358	207,865	5.5%
O`KEY	146,967	143,980	2.1%
DA!	72,391	63,885	13.3%
Gross profit	51,415	47,660	7.9%
Gross profit margin, %	23.4%	22.9%	0.5pps
Selling, general and administrative expenses	(42,577)	(42,516)	-
SG&A, % of revenue	19.4%	20.5%	(1.1pps)
Other operating expenses, net	753	(292)	n/a
Finance costs, net	(8,447)	(7,267)	16.2%
Foreign exchange loss	(304)	(1,074)	n/a
Net profit / (loss)	1,988	(2,878)	n/a
Group EBITDA	20,485	17,026	20.3%
Group EBITDA margin, %	9.3%	8.2%	1.1pps
O`KEY EBITDA	13,431	12,643	6.2%
O`KEY EBITDA margin, %	9.1%	8.8%	0.3pps
DA! EBITDA	7,054	4,383	61.0%
DA! EBITDA margin, %	9.7%	6.9%	2.8pps

Group revenue

RUB mln	2024	2023	∆ YoY, %
Total Group revenue	219,358	207,865	5.5%
Retail revenue	217,125	205,772	5.5%
O`KEY	144,781	141,947	2.0%
DA!	72,344	63,825	13.3%
Rental income	2,233	2,093	6.7%

 

Total Group revenue increased by 5.5% YoY to RUB 219,358 mln, driven by both DA! discounters’ and O`KEY hypermarkets’ retail revenue growth in FY 2024. Group retail revenue rose 5.5% YoY to RUB 217,125 mln in FY 2024, primarily led by the LFL performance of both chains.

The Group’s rental income increased by 6.7% YoY to RUB 2,233 mln in FY 2024.

Group net retail revenue and LFL revenue

RUB mln	2024	2023	∆ YoY, %	LFL 2024 / 2023, %
O`KEY Group	217,125	205,772	5.5%	4.1%
O`KEY hypermarkets	144,781	141,947	2.0%	2.3%
DA! discounters	72,344	63,825	13.3%	8.0%

For more details regarding net retail revenue dynamics in FY 2024, please refer to the Group’s Q4 2024 Trading Update.

Group gross profit

In FY 2024, Group gross profit increased by 7.9% YoY to RUB 51,415 mln, while gross margin improved by 0.5 pps YoY to 23.4%, thanks to consistent work on enhancing the efficiency of procurement as well as optimisation of shrinkage costs.

Group selling, general and administrative expenses

RUB mln	2024	% of revenue	2023	% of revenue	∆ YoY, pps
Personnel costs	17,801	8.1%	17,649	8.5%	(0.4)
Depreciation and amortisation	10,495	4.8%	11,069	5.3%	(0.5)
Communication and utilities	5,425	2.5%	5,355	2.6%	(0.1)
Advertising and marketing	2,110	1.0%	2,200	1.1%	(0.1)
Repairs and maintenance	1,845	0.8%	1,780	0.9%	(0.1)
Insurance and bank commissions	1,475	0.7%	1,348	0.7%	-
Operating taxes	864	0.4%	674	0.3%	0.1
Security expenses	756	0.3%	771	0.4%	(0.1)
Legal and professional expenses	746	0.3%	718	0.3%	-
Operating leases	564	0.3%	440	0.2%	0.1
Materials and supplies	397	0.2%	441	0.2%	-
Other costs	99	0.0%	74	0.0%	-
Total SG&A	42,577	19.4%	42,516	20.5%	(1.1)

 

The Group’s total SG&A expenses were almost flat YoY at RUB 42,577 mln in FY 2024. SG&A expenses as a percentage of revenue declined by 1.1 pps YoY to 19.4% in FY 2024. The decrease was led mainly by revenue growth as well as efficient cost management.

In FY 2024, personnel costs increased by 0.9% YoY to RUB 17,801 mln, but decreased as a percentage of revenue by 0.4 pps YoY to 8.1%, mainly due to cost optimisation, as well as a higher number of mature discounters in the Group’s portfolio.

Communication and utilities expenses grew by 1.3% YoY to RUB 5,425 mln, but decreased as a percentage of revenue by 0.1 pps in FY 2024, mainly due to revenue growth combined with cost optimisation.

Advertising and marketing expenses decreased by 4.1% YoY to RUB 2,110 mln and, as a percentage of revenue, by 0.1 pps YoY to 1.0%, mainly due to effective management of the marketing channels mix.

Repairs and maintenance expenses increased by 3.7% YoY to RUB 1,845 mln, but declined as a percentage of revenue by 0.1 pps YoY to 0.8%, largely as a result of the Group’s revenue increase, as well as a temporary slowdown in discounter openings in FY 2024.

Group EBITDA grew by 20.3% YoY to RUB 20,485 mln, while EBITDA margin rose by 1.1 pps YoY to 9.3% in FY 2024, led by positive dynamics in both business segments. O’KEY hypermarkets’ EBITDA increased by 6.2% YoY, while EBITDA margin grew by 0.3 pps YoY to 9.1% in FY 2024. DA! discounters’ EBITDA surged by 61.0% YoY, while their EBITDA margin increased to 9.7% in FY 2024, compared to 6.9% in FY 2023.

Depreciation and amortisation decreased by 5.2% YoY to RUB 10,495 mln and by 0.5 pps YoY as a percentage of revenue in FY 2024, mainly as a result of a temporary slowdown in the discounter chain’s expansion, as well as a review of the assets’ useful life in the discounter network related to the renewal of lease agreements (under IFRS 16).

In FY 2024, the Group recognised other operating income in the amount of RUB 753 mln, compared to a loss of RUB 292 mln in FY 2023. This income arose from the modification of assets related to the improvement of lease terms (in accordance with IFRS 16).

Net finance costs increased by 16.2% YoY to RUB 8,447 mln in FY 2024. A substantial part of this growth was attributable to an increase in the weighted average rate on the back of a rise in the Bank of Russia interest rate.  

In FY 2024, net foreign exchange loss amounted to RUB 304 mln, compared to a RUB 1,074 mln loss in FY 2023. The loss was largely attributable to intragroup US dollar-denominated loans; losses from import operations had a relatively small impact on the Group’s results. Net foreign exchange loss has a non-cash nature.

The Group reported a RUB 1,988 mln net profit in FY 2024, compared to a loss of RUB 2,878 mln in FY 2023. 

 

Group cash flow

RUB mln	2024	2023
Net cash from operating activities	19,427	15,276
Net cash used in investing activities	(1,835)	(4,341)
Net cash used in financing activities	(13,260)	(11,158)
Net increase / (decrease) in cash and cash equivalents	4,333	(223)
Effect of exchange rate on cash and cash equivalents	(30)	(30)

 

Net cash from operating activities amounted to RUB 19,427 mln in FY 2024, compared to RUB 15,276 mln in FY 2023. The increase was mainly led by revenue growth.

Net cash used in investing activities amounted to RUB 1,835 mln in FY 2024, showing a decrease in comparison with RUB 4,341 mln in FY 2023. In FY 2024, the Group focused on optimisation of its discounter store opening model, which led to a temporary slowdown in the pace of openings and, consequently, in a reduction in investing activities. The Group invested RUB 1,072 mln (excluding VAT) in its hypermarket business, and RUB 767 mln (excluding VAT) in the development of its DA! discounter segment.

Net cash used in financing activities amounted to RUB 13,260 mln in FY 2024, compared to RUB 11,158 mln in FY 2023. This was due to regular refinancing of the Group's credit portfolio in FY 2024.

As of 31 December 2024, the Group had RUB 13,050 mln worth of available credit lines in Russian roubles with fixed and floating interest rates. If necessary, proceeds from these facilities may be used to finance operating and investing activities.

Group net debt position

RUB mln	As of 31 December 2024	As of 31 December 2023
EBITDA	20,485	17,026
Total debt	47,651	47,131
Short-term debt1	11,070	6,003
Long-term debt	36,581	41,128
Cash & cash equivalents	15,828	11,526
Net debt	31,823	35,606
Total lease liabilities	22,435	26,722
Short-term lease liabilities	5,456	5,962
Long-term lease liabilities	16,979	20,760
Total interest-bearing liabilities (net of сash & сash equivalents)	54,257	62,328
Total interest-bearing liabilities (net of сash & сash equivalents) / EBITDA	2.65x	3.66x

[1] Short-term debt does not include interest accrued on loans and borrowings.

As of 31 December 2024, the total interest-bearing liabilities (net of cash) to EBITDA ratio declined to 2.65x from 3.66x as of 31 December 2023. This was mainly driven by an increase in EBITDA combined with a decrease in net debt and long-term lease liabilities (in accordance with IFRS 16).

 

 

Group audited consolidated IFRS report

The Group’s audited report, including the full set of audited IFRS financial statements, can be found at https://www.okeygroup.lu/investors/result-center/ifrs-statements/.

 

For more information, please contact:

For investors: Natalya Belyavskaya Head of Investor Relations +7 495 663 6677 ext. 266 Natalya.Belyavskaya@okmarket.ru

For the media: pr@okmarket.ru   EM (communications consultant to O`KEY Group): Denis Maternovsky maternovsky@em-comms.com   Maria Zhmurko zhmurko@em-comms.com

ABOUT O`KEY GROUP

 

O`KEY Group S.A. (AIX, MOEX: OKEY) is one of the leading grocery retailers in Russia, operating hypermarkets under the O`KEY brand and discounters under the DA! brand.

As of 31 December 2024, the Group had 301 stores across Russia (77 hypermarkets and 224 discounters) with a total selling space of 663,568 sq m. O`KEY opened its first hypermarket in St Petersburg in 2002 and has since demonstrated continuous growth. It was the first Russian food retailer to launch e-commerce operations offering a full range of hypermarket products for home delivery. The Group operates e-commerce pick-up and delivery points in O`KEY hypermarkets across the country. In 2015, we launched the first discount chain in Russia under the DA! brand. The Group operates five distribution centres in Russia – three in Moscow and two in St Petersburg – and employs over 19,000 people.

In 2024, the Group’s revenue amounted to RUB 219.4 bn, and EBITDA reached RUB 20.5 bn.

The O`KEY Group shareholder structure is as follows: NISEMAX Co Ltd, 49.11%; GSU Ltd, 34.14%; free-float and other holders, 16.75%.

DISCLAIMER

These materials contain statements about future events and expectations that are forward-looking statements. These statements typically include words such as ‘expects’ and ‘anticipates’ and words of similar import. Any statement in these materials that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.

None of the future projections, expectations, estimates or prospects in this announcement should be taken as forecasts or promises, nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in this announcement. We assume no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements.

 

 

 

[1] All results are presented according to IFRS 16 unless stated otherwise.