Russian retailer O'Key has seen its like-for-like sales rise during the fourth quarter, which contributed to a 24.5% increase in total revenue.
During the period total revenues rose to RUB116bn (US$3.8bn). Gains were primarily driven by the contribution of newly opened stores. During the period, the group added more than 428,00 sq m of selling space.
The company highlighted that like-for-like revenues rose 7.5% at stores open more than one year. While gains were driven by inflation, the group emphasised that like-for-like store traffic was up 2%.
"2012 was a successful year for O'Key in many respects. We opened the largest number of hypermarkets for a single year, we delivered on the sales and LFL revenue targets that were set at the beginning of 2012 and we continued to grow our customer base," said CEO Patrick Longuet.
OKEY GROUP S.A. announces unaudited operating results for 4Q and FY 2012
O’KEY GROUP S.A. (the “Company” or “O’KEY”), one of the leading Russian food retailers,announces its unaudited operating results for 4Q and FY 2012.
Operating Highlights
LFL traffic increased by 2.0% in 4Q
LFL revenue growth of 7.5% in 4Q
4Q net retail revenue increased by 24.5% year-on-year (y-o-y)
Selling space exceeded 428,000 sq.m. as at 31 December 2012
Commenting on the results, O’KEY CEO Patrick Longuet said:
“2012 was a successful year for O’KEY in many respects. We opened the largest number of hypermarkets for a single year, we delivered on the sales and LFL revenue targets that were set at the beginning of 2012 and we continued to grow our customer base.
“The strong progress made in the LFL number of tickets, that kept growing throughout the year, is the main indication of our success in 2012. This clearly demonstrates that both O’KEY’s product offering and the loyalty of our customer base are getting stronger, and I am delighted to see O’KEY consistently deliver good results in this area.
“LFL revenue growth amounted to 7.5% for the quarter demonstrating good progress quarter-onquarter. It accelerated throughout Q4 2012, and was driven by an increase in our average basket.
Furthermore, traffic increase of 2% enhanced by promotions surrounding O’KEY’s 10th anniversary in October contributed to the strong progress of revenues.
“During the fourth quarter of 2012, we opened 6 hypermarkets, bringing the total number of new stores to 12 and increasing our selling space to 428,000 of sq.m.. As for our development pipeline, we signed five new contracts during the quarter for the opening of future stores, of which 1 is a hypermarket and 4 are supermarkets, and a number of new stores are about to be introduced to our development pipeline over the coming weeks.”
