The company noted that the deterioration in consumer sentiment caused by the reduction in real incomes on 0,2% in annual terms, rising inflation and lack of growth of pensions, along with increased competition in the market continued to put pressure on the operations of the Group in 2018. Adaptation of employees to new working schedules had an impact on the level of service and quality of products categories fresh during the summer period, which weighed on revenue.

Closing a hypermarket in Cherepovets, Sterlitamak and in the first half of 2017, supermarket in Omsk in the second half of 2018 and closures in Moscow hypermarket in the shopping center "RIO" in the period from July 2017 to may 2018 and in the Shopping Park Otrada in December 2018 has also affected the Group's results in the reporting period.

At the end of the reporting period, the total sales area of the Group increased by 1.2% to 584 914 m2. The shopping area is "OK" decreased by 0.7% to 528 124 m2 trading area, "YES!" increased by 22.9% to 56 790 m2.

Gross profit as a percentage of revenue in 2018 increased by 20 basis points to 37 382 million rubles.The increase in gross profit was mainly due to reduction of cost of inventory. The EBITDA margin of the Group increased by 6 bps yoy to 5.4%, while EBITDA decreased by 7.4% yoy to 8 644 million rubles.

O'KEY Group S. A. is presented in two formats: hypermarkets under the brand name "O'key" and discount stores under the brand "YES!". On April 1, 2019, the Group operates 162 stores in Russia (78 of 84 hypermarkets and discounter). The group opened its first hypermarket in 2002 in Saint-Petersburg and since then has been steadily increasing. "Okay" the first Russian retail networks on trade in food products has launched and is actively developing an online sales channel with the range on the basis of hypermarkets in Moscow and St. Petersburg for home delivery. The group organized six points of delivery of online orders in Moscow and six in St. Petersburg. The group manages four distribution centers in Russia: two in Moscow and two in St. Petersburg. On December 31, 2018, the Group employs more than 20,000 employees.

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