×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

Russian Food Retailer O'Key Posts 5 Percent Net Profit Rise

People shop at a supermarket of Russian food retailer O'Key.

Russian food retailer O'Key posted a 5 percent rise in 2014 net profit to 5.2 billion rubles ($86.5 million), helped by a tax refund, it said Thursday.

The company said its income tax expenses fell by 42 percent last year as a result of a tax reimbursement of around 1 billion rubles it had paid for 2010-2013, while profit before income tax was down 7.8 percent.

Pretax income was hit by a foreign exchange loss of 688 million rubles on a dollar loan, as well as a spike in financing costs as its debt rose 88 percent to 32 billion rubles.

The company also said its earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 2.2 percent to 11.3 billion rubles, with its EBITDA margin sliding to 7.4 percent from 7.9 percent a year earlier.

Revenues grew 9 percent to 152 billion rubles, primarily driven by increased selling space, while like-for-like sales were down 0.2 percent.

O'Key, which operates hypermarkets and supermarkets, had seen customers leave in favor of budget retailers last year as Russia's economy weakened and a slump in the ruble fueled inflation.


… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more