O'Key Group S.A. reported unaudited sales results for the first quarter of 2018. For the quarter, the company's group net retail revenue decreased by 6.9% year over year to RUB 39,840 million from RUB 42,797 million. The revenue decline was primarily influenced by the unwinding of the supermarket business in December 2017 and January 2018. Group net retail revenue, adjusted for the sale of the supermarket business, decreased by 0.7% year over year. Net retail revenue generated by the company decreased by 9.1% year over year to RUB 36,909 million. Total sales amounted to RUB 2.9 billion in the first quarter, compared to RUB 2.2 billion for the same period last year.

The company expects net retail revenue generated by hypermarkets business (excluding the supermarkets business) to grow by low single digits in 2018, with new stores openings limited to two. The company anticipates the EBITDA margin will be within a range of 7-8% in 2018-2020. The company forecasts net retail revenue generated by discounters business to grow by approximately 50% year over year in 2018, driven by the opening of up to 30 new stores and improved sales density. EBITDA loss is expected to decline by up to 50% year over year.