27 April 2016

Lenta 1Q 2016 sales and operating results

St-Petersburg, Russia; 27 April, 2016 – Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”) one of the largest retail chains in Russia, is pleased to announce the Company’s consolidated sales and operating results for the first quarter ended 31 March 2016.

To view the full press release, please click here.

1Q 2016 Operating Highlights:

  • Total sales grew 22.1% in 1Q 2016 to Rub 66.5bn (1Q 2015: Rub 54.5bn);
  • Like-for-like (“LFL”)1 sales growth of 5.6% vs. 1Q 2015;
  • LFL traffic growth of 3.0% combined with a 2.5% increase in LFL ticket;
  • Three hypermarkets and six supermarkets opened during the first quarter of 2016;
  • Total store count reached 180 stores as at 31 March 2016, comprising 142 hypermarkets and 38 supermarkets;
  • Total selling space increased to 896,065 sq.m. as at 31 March 2016 (+23.2% vs. 31 March 2015); and
  • Number of active loyalty cardholders2 increased to 8.9m (+25% y-o-y) with approximately 93% of transactions in the first quarter made using the loyalty card.

Material events in 1Q 2016 and after the reported period:

  • Lenta signed a Rub 7bn three-year unsecured loan facility with Rosbank at a fixed rate. The full amount was drawn;
  • Lenta has successfully completed a secondary offering of 01 and 03 series bonds (with a total amount of Rub 7bn) with a coupon reset at 11.75% and a maturity of 2.5 years3 , while the Company repurchased 02 series bonds with a total amount of Rub 3bn; and
  • Lenta has opened one hypermarket in April 2016.

Lenta’s Chief Executive Officer, Jan Dunning commented:

“We are pleased with the results of the first quarter of 2016 – 22.1% sales growth with 5.6% LFL sales growth despite the rapid fall in food inflation since the beginning of the year and the high base for comparison of the first quarter of 2015 when we grew sales by 38%. We successfully continued expansion of our hypermarket format and accelerated rolling-out of our supermarket format in Moscow and Saint-Petersburg. The new store pipeline for 2016 is progressing well and we are confident in reaching our goal to open at least 40 hypermarkets this year. Our pipeline for 2017 looks very strong, allowing us to continue to be selective in choosing the best investment opportunities. 

While the environment continues to be tough for consumers, we have noticed a moderate stabilization of trading down. Compared with the previous quarters lower inflation was partly offset by improving trends in product mix and number of articles in the basket. The share of sales made with our loyalty card reached a record 93% and we continue adapt our offering with a deeper use of customer insight from our loyalty program.”

To view the full press release, please click here.

1 Lenta’s stores are included in the LFL store base starting 12 months after the end of the month in which they are opened
2 Cardholders who made at least 2 purchases at Lenta during the 12 months to 31 March, 2016 are considered active
3 Maturity is shown on the date of the put option