25 October 2021
Lenta Reports Strong Sales Growth, Positive LFL Retail Sales, and 8.8% EBITDA Margin
Q3 2021 Operational and Financial Highlights1
- Retail Sales increased by 13.5% y-o-y to RUB 116 billion in Q3 2021
- LFL Sales increased by 3.5% in Q3, while LFL Average Ticket grew by 4.7%
- Online Sales grew by 237% y-o-y to RUB 4.4 billion with Online Orders up 231% y-o-y to
2.4 million in Q3
- Lenta accelerated the rollout of its new Mini format with 36 new stores opened in Q3
- The company acquired 190 supermarkets and 44 convenience stores.
- In total, the new stores resulted in an increase of 16% in new selling space2
- EBITDA Margin for Q3 was 8.8%, up 119 bps, y-o-y and EBITDA was RUB 10.4 billion
- The Net Debt to EBITDA (LTM) ratio stood at 1.9x as of 30 September 2021
- Lenta completed two M&A transactions: the acquisition of Billa for EUR 225 million and the acquisition of Semya for RUB 2.45 billion
- Fitch Ratings upgraded Lenta’s credit rating to 'BB+' with a Stable Outlook
St. Petersburg, Russia, 25 October 2021: Lenta IPJSC (MOEX & LSE: LNTA), one of the largest multi-format retail chains in Russia, today announces its operational results and financial highlights for the third quarter and the first nine months of 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 performed well in the third quarter, with retail sales growth of 13.5% and a firm 8.8% EBITDA Margin. These results demonstrate that Lenta can pursue and achieve both growth and profitability, even in a challenging operating environment.
In Q3, we closed two transformative M&A deals and began to integrate the 234 Billa and Semya stores, 3 distribution centers, and more than 6,600 employees. These acquisitions will strengthen Lenta’s market positions in Moscow and Perm via locations with established customer traffic. Importantly, we have not only acquired Billa ’s and Semya’s physical stores, but also their expertise in operating smaller formats. The integration process will continue into 2022, but we have already made good progress.
Our online business continues to deliver good results, both in terms of our own Lenta Online and third-party partnerships, which are together generating more than 30,000 orders per day. We recently announced promising agreements to sell our goods online via the Ozon and AliExpress Russia marketplaces, extending our reach to an even broader base of customers.
In Q3, we accelerated the roll-out of our new Mini Lenta format, opening 36 new stores primarily in Moscow, Moscow region, and St. Petersburg. With each new store we open, we are making improvements along the way to enhance the customer experience and increase efficiency.
Altogether, this means we are off to a good start implementing our new strategy aimed at transforming Lenta into one of Russia’s food retail champions through our superior assortment, excellent shopping experience, and market-leading customer individualization.”
Q3 and 9M 2021 Trading and Strategic Update Conference Call Dial-in Details
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, 25 October 2021.
On the call will be Vladimir Sorokin (CEO), Rud Pedersen (CFO), and Tatyana Vlasova (IRO).
To participate in the conference call, please use the following dial-in details:
Russia +7 495 283 98 58
United Kingdom +44 203 984 9844
United States +1 718 866 4614
Telephone numbers for additional countries can be found at the webcast URL.
Participant code: 878744 (“Lenta Q3 & 9M Trading and Strategic Update Call”)
Audio webcast URL: https://mm.closir.com/slides?id=878744
Participants are encouraged to register approx. 5-10 minutes prior to the start of the call.
For further information, please visit www.lentainvestor.com or contact:
Head of Investor Relations
Head of Public Relations and Government Affairs
EM (International Media Inquiries)
1. Please note that all Financial Highlights are based upon IAS 17 figures.
2. Including new stores added following the acquisition of Billa’s and Semya’s businesses.
Lenta IPJSC (LSE and MOEX: LNTA) is a leading Russian multi-format food and FMCG retailer. The company operates hypermarkets, supermarkets, and recently launched a new proximity store format under the brand “Mini Lenta.” It also provides customers the option to shop online via its click-and-collect and express delivery services. Lenta is Russia’s largest hypermarket operator and the fourth largest food retailer overall by Sales. The company was founded in 1993 in St. Petersburg and as of September 30, 2021, operated 255 hypermarkets and 419 supermarkets in 88 cities across Russia with more than 1.7 million square meters of Selling Space. The average Lenta hypermarket has approximately 5,500 square meters of selling space, the average Lenta supermarket has 800 square meters, and the Mini Lenta format is 500 meters on average. The company operates 14 distribution centers to supply all of its stores. 2020 Revenues were RUB 445 billion (approximately USD 6 billion).
This announcement includes statements that are, or may be deemed to be, "forward-looking statements." These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "expected," "plan," "goal," "believe," or other words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond Lenta's control. As a result, actual future results may differ materially from the plans, goals, and expectations set out in these forward-looking statements. Any forward-looking statements made by or on behalf of Lenta speak only as of the date of this announcement. Except as required by any applicable laws or regulations, Lenta undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.