Page 178 - RusRPTMay21

mentioned that April sales have shown flat dynamics y/y MtD,” Sova Capital reports.
O’Key Group reported 1Q21 Trading Update. Mild sales growth (+1.9% y/y) was due to high base effect in 1Q20 (+7.6% y/y).
· The Group’s LFL sales was almost flat with -0.3% y/y (vs +4.2% y/y in 4Q20 and the high base of +7.2% in 1Q20) and was driven by the average ticket (+13% y/y) and lower traffic (-11.7% y/y)
· LFL sales generated by O'KEY branded stores fell 2.5% y/y, driven by +13.7% in the LFL average ticket and -14.2% y/y in LFL traffic
· LFL net retail sales generated by DA! Increased by 14.2% y/y, driven by +18.4% y/y in average LFL ticket, while LFL traffic was down by 3.6%.
· The Group‘s net retail revenue increased 1.9% y/y vs +6% y/y in 4Q20 and +7.6% in 1Q20
· Net retail sales generated by O'KEY branded stores declined by 2% y/y
· Net retail revenue generated by DA! was up 27% y/y
· The Group’s selling space rose 0.2% y/y to 599,536 sqm
· The Group’s online sales grew 110.6% y/y and hit 2.7% of
O’KEY’s net retail revenue
· The Group expects that discounters and the online business will
continue to lead total growth and confirms its expansion plans of 35-40 DA! store openings in 2021.
9.2.6 Agriculture corporate news
Leading Russian agricultural producer Rusagro released a 51% y/y advance in total revenues to RUB51bn ($680mn), which reflected a strong y/y pricing environment in the first quarter of this year and a pick-up in volumes on April 26.
Key soft commodity prices added 50% y/y, reflecting a surge in global prices, lower supply-demand balances and a weaker domestic currency, VTB Capital (VTBC) said in a note.
Meanwhile, q/q, there was a stabilization (up 5% blended), with downside pressure coming from price-capping initiatives by the government that has been trying to control soaring prices for food that is pushing up inflation.
“Those are to cost the company RUB200mn a month, according to management, and could account for 12% of our net income forecast for 2021F, if assumed for whole year,” VTBC said. “We leave our
178 RUSSIA Country Report May 2021 www.intellinews.com