26 April 2021
Lenta’s Q1 2021 adjusted Retail Sales increased by 6.9% and Online Sales by 674%
Q1 2021 Operational and Financial Highlights1
- The Q1 2021 year-over-year comparison was materially impacted by the extraordinarily high base effect for the March 14-31, 2020 period, when last year’s COVID-19 bulk buying began in earnest. Adjusting for this effect, Retail Sales growth amounted to 6.9% and LFL Sales growth was 7.3%
- In Q1 2021, unadjusted Retail Sales increased by 1.5% y-o-y to RUB 105.9 billion
- Unadjusted LFL Sales growth for the full Q1 2021 quarter was 1.3% with an Average Ticket growth of 11.6% and a customer Traffic decline of 9.3%
- Lenta continued with the rapid roll-out of its online channel, which is now available in all 89 Russian cities where the company operates. As a result, Online Sales and Online Orders grew by 674% and 871% y-o-y respectively in Q1 2021, to RUB 3.8 billion and 2.2 million orders
- In Q1 2021, Lenta added 1 store on a net basis, bringing the total number of retail stores to 394 and the Total Selling Space to 1.52 million square meters as of 31 March 2021
- Gross Profit was RUB 23.4 billion, an increase of 2.4% y-o-y, which resulted in a Gross Margin of 21.8%, an improvement of 26 bps y-o-y
- SG&A expenses amounted to RUB 21.6 billion, or 20.1% of Total Sales, an increase of 217 bps
y- o-y, driven by investments into preparing Lenta for growth, salary indexation in LFL stores and new store openings, investments into online, COVID-19 and other one-off related expenses
- EBITDA was RUB 6.7 billion in Q1 2021, and Lenta’s EBITDA Margin was 6.2%
- LTM Net Debt to EBITDA ratio stood at 1.7x as of March 31, 2021
St. Petersburg, Russia, 26 April 2021: Lenta IPJSC (MOEX & LSE: LNTA), one of the largest retail chains in Russia, today announces its operational results and unaudited financial highlights for Q1 2021. A conference call with management to discuss these results is scheduled for today (see below for dial-in details).
Vladimir Sorokin, Chief Executive Officer:
“Lenta started 2021 with a firm financial foundation for growth and a clear strategy focused on value creation. In the first quarter of 2021, Lenta improved its Gross Margin to 21.8% and grew its Online Sales more than sevenfold. Adjusted to exclude the high base effect of 14-31 March 2020, our Q1 2021 Total Sales growth was a healthy 6.9%.
We have already made some exciting progress on new strategic initiatives aimed at expanding our online business and strengthening our multi-format offering. We just recently launched our new Mini Lenta proximity store format, which enables us to get closer to our customers and to offer a tailored range of quality products at segment-leading prices alongside a unique customer experience. The new format will operate to the same high standards that customers have come to appreciate from Lenta’s hypermarkets and supermarkets.
While the external environment still presents challenges as a result of the COVID-19 pandemic, Lenta has continued to adjust swiftly to meet and exceed the expectations of our customers when it comes to product quality and selection, as well as ensuring a safe shopping experience.”
Q1 2021 Conference Call
The Lenta Management Team will host an investor and analyst conference call at 17:00 Moscow time (15:00 London, 10:00 New York), on Monday, 26 April 2021. On the call will be Vladimir Sorokin (CEO), Rud Pedersen (CFO), and Tim Post (IRO).
To participate in the conference call, please use the following dial-in details:
Conference ID: 5638180 (“Lenta Q1 Results Call”)
+7 499 609 1260 (local access)
8 800 100 9471 (toll free)
+44 (0)330 027 1846 (local access)
0800 031 4838 (toll free)
+1 334-777-6978 (local access)
800-367-2403 (toll free)
Participants are encouraged to register approximately 5-10 minutes prior to the start of the call.
For further information, please visit www.lentainvestor.com or contact:
Head of Public Relations and Government Affairs email@example.com
Investor Relations Officer firstname.lastname@example.org
EM (International Media Inquiries)
1. Please note that all Financial Highlights are based upon IAS 17 figures