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Russia's O'Key to boost discount stores numbers in next 2 years
May 17, 2017 / 4:43 PM / 7 months ago

Russia's O'Key to boost discount stores numbers in next 2 years

May 17 (Reuters) - Russian food retailer O‘Key Group SA said on Wednesday it planned to increase the pace of discount store openings in the next two years.

* O‘Key plans to open 50-60 discount shops in 2018 and around 70 in 2019, company executives told a conference call.

* Confirmed plans to open 20 discounters in 2017.

* Aims to have at least 200 discount stores by 2020 vs 55 as of the end of March.

* Sees EBITDA margin of the discount business at 6-7 pct by 2020.

* The group’s total sales are up 5.2 percent year-on-year so far in May, like-for-like sales up 0.3 percent.

* O‘Key previously reported that its Q1 revenue was up 0.5 percent year-on-year while like-for-like sales were down 4.9 percent.

* It plans to achieve total revenue growth of around 5 percent in 2017 after revenue rose 8 percent to 175.5 billion roubles ($3.1 billion) in 2016.

* Sees annual capital expenditures at between 7 billion roubles and 8 billion roubles in 2017-2019.

* Annual dividends payments will not exceed 1.5 billion roubles. Further company coverage: ($1 = 56.8705 roubles) (Reporting by Moscow Newsroom)

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