27 November 2017
Lenta buys 130 new delivery trucks for own fleet
St. Petersburg, Russia; 27 November 2017 – Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, announces the purchase of 130 MAN trucks with refrigerated semitrailers. The new vehicles will improve the Company’s supply chain performance.
Lenta has purchased 120 semitrailer trucks configured as MAN TGS trucks with Schmitz Cargobull refrigerated semitrailers, equipped with Carrier Vector refrigerating and heating units for 36 Euro-pallets. In addition, the Company will receive 10 MAN TGM trucks with Schmitz refrigerated bodies for 21 Euro-pallets. The purchase contract includes maintenance and repairs throughout the trucks’ service life.
The new vehicles will be used both on Lenta’s regional routes, to deliver goods from distribution centres to stores, as well as on a number of inter-regional routes operating between points in Central Russia and the South. The new trucks and semitrailers were selected to meet Lenta’s high standards for transportation of food products and other goods.
Joern Arnhold, Lenta’s Supply Chain Director commented: “The expansion of our hypermarket and supermarket network across Russia considerably increases our distribution volumes as well as our delivery points. On many of the new routes, Lenta stands to benefit from operating its own delivery vehicles. Furthermore, rates for transport hire have risen steadily since early 2017, making the use of our own vehicles economically viable on a larger number of routes. The new vehicles will improve the performance of our supply chain with the increase in quality and reliability of the deliveries. With the purchase of these new trucks, we have almost doubled our fleet.”
With this purchase, over 60% of the goods delivered to Lenta’s stores from the company’s distribution centers will be covered by own vehicles.
All Lenta’s new trucks are powered by high fuel efficiency diesel engines that fully comply with the EURO-5 standard. Currently, 90% of the Company’s delivery truck fleet comply with this emissions standard.
MAN Truck & Bus RUS LLC is a 100 % subsidiary of MAN Truck & Bus AG and general importer of MAN products in Russia. The enterprise has two branch offices: in Podolsk and Saint Petersburg. MAN Truck & Bus RUS LLC is present all over Russia through its partner network of more than 50 workshops located in the key regions. MAN offers both financing and high-quality professional services. The company's customers may also purchase MAN original spare parts with 2-year warranty, have their vehicles serviced within the framework of maintenance contracts, take MAN ProfiDrive courses as well as use 24-hour Mobile24 road assistance service.
Lenta is the largest hypermarket chain in Russia and the country’s fourth largest retail chain. The Company was founded in 1993 in St. Petersburg. Lenta operates 217 hypermarkets in 79 cities across Russia and 72 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,295,335 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.
The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 40,400 people as of 30 June 20171.
The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’.
A brief video summary on Lenta’s business and its Big Data initiative can be seen here.
For further information please visit www.lentainvestor.com, or contact:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
Тel: +44 7497 783 705
1 FTE (full-time equivalent). Average FTE for 1H 2017 was 40,197 employees