Russian retailer O’Key Group has posted 0.7% year-on-year growth in underlying group net retail revenue in the first quarter of its financial year, to RUB 39,421 million (€545.25 million).
The result excludes the effect of the sale of its supermarket business to X5 Retail Group.
Like-for-like net retail revenue saw a year-on-year decline of 1.3% during the quarter.
The performance was driven by a 3.4% year-on-year decrease in like-for-like traffic and a 2.2% year-on-year increase in the like-for-like average ticket.
Divisional Results
Net retail revenue generated by its discounter chain, DA!, grew by 36.0% year on year, to RUB 3,985 million (€55.1 million) during the quarter, the group reported.
This was driven by 25.9% year-on-year growth in traffic and an 8.6% year-on-year increase in the average ticket size.
Like-for-like net retail revenue generated by the discounter increased by 21.4% in the first quarter of 2019, when compared with the same period in 2018.
Hypermarket chain O’Key posted a 2.2% year-on-year decrease in underlying net retail revenue during the period, to RUB 35,437 million (€493.42 million), due to weaker-than-expected sales in January.
Like-for-like net retail revenue across O’Key hypermarkets dropped by 3.7% year on year.
Outlook
The retail group is anticipating top-line growth in O’Key hypermarkets to be around zero for the full year.
Discount banner DA! is expected to deliver double-digit like-for-like growth in 2019, with 30 new outlets scheduled to open by the end of the year.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
