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LENTA LTD. Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 15.7% AND ONLINE SALES GROWTH OF 137.2% IN 9M 2022

Directive transparence : information réglementée

24/10/2022 09:00

Lenta IPJSC (LNTA;LENT)
Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 15.7% AND ONLINE SALES GROWTH OF 137.2% IN 9M 2022

24-Oct-2022 / 09:00 CET/CEST
Dissemination of a Regulatory Announcement, transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.


 

Press Release | St. Petersburg | 24 October 2022

 

 

LENTA REPORTS TOTAL SALES GROWTH OF 15.7% AND ONLINE SALES GROWTH OF 137.2% IN 9M 2022

 

 

24 October 2022

St. Petersburg,

Russia

Lenta IPJSC (LSE: LNTA, MOEX: LENT), one of the largest multi-format retail chains in Russia, today announces its operational results and key financial results for the third quarter and the first nine months of 2022.

 

Q3 2022 Highlights1,2

  •    Total Sales increased by 7.2% y-o-y to RUB 126.8 billion
  •    Retail Sales reached RUB 125.1 billion, representing 7.8% y-o-y growth
  •    Like-for-Like (LFL) Sales increased by 1.3%, driven by 4.6% LFL Average Ticket growth
  •    Online Sales grew by 98.2% y-o-y to RUB 8.8 billion
  •    The Company opened 18 small-format stores on a gross basis
  •    Total Selling Space increased by 3.2%, reaching 1,780.3 thousand sq. m.
  •    Gross Profit decreased by 5.0% y-o-y to RUB 26.5 billion. Gross Margin decreased by 268 bps to 20.9%
  •    EBITDA was RUB 7.5 billion with a 6.0% EBITDA Margin
  •    Capex stood at RUB 1.9 billion, up 26.3%
  •    The Net Debt to EBITDA (LTM) ratio stood at 1.8x vs. 1.4x as of 31 December 2021

 

  1. Including Utkonos results starting from 1 February 2022
  2. Please note that all Financial Highlights are based upon pre–IFRS 16 figures

 

 

 

Vladimir Sorokin,

Chief Executive Officer
 

 

«In Q3 2022, we continued our consistent work to develop our business in the context of changing market conditions and to adjust our offer, in terms of both our prices and our product range, to meet the needs of our customers. Meeting the daily needs of our customers has been and continues to be one of our key goal, and in the face of continued pressure on household incomes and the high degree of uncertainty, we are committed to be even more flexible and more efficient.

In assessing our performance in the last quarter, it is necessary to take into account the considerable impact of market conditions, which exerted pressure on retail in general and led to a decrease in the purchasing power of our customers in particular. Our key focus in Q3 2022 was to support customers by expanding our range of products in lower price segments and increasing the number of promotions. We see that these actions led to an improvement in the Lenta’s price perception among our customers, which is an important factor for further growth and development in a challenging operating environment. In Q3 2022, 2.4 million customers activated a new loyalty card, while the total number of cards issued reached 25.5 million.

Our hypermarkets demonstrated slight growth in the reporting period. In Q3 2022, we continued to incorporate tools aimed at returning traffic to our stores and increasing the number of items per ticket. Our strategic goal—increasing Lenta’s market share in the hypermarket segment in Russia—remains unchanged.

Another major task that we are working on is an integration of Utkonos into Lenta’s business. Since the beginning of the year, we have made significant progress in this area. In Q3 2022, for example, we began to combine the Lenta Online and Utkonos operating models. The implementation of this project will enable us to qualitatively improve our offer for our customers, including by reducing the delivery time for all orders to an average of 1.5 hours and offering our customers better prices and more attractive promos. An expanded range of Lenta’s private label products will be available to Utkonos customers. In terms of further steps, in the fourth quarter, we intend to improve the operational efficiency of the order picking and delivery processes by integrating the best practices of both businesses and sharing Lenta’s and Utkonos’s infrastructure. In addition, combining IT systems and key business processes will greatly reduce SG&A expenses and improve the marginality of Lenta’s online business, which is in line with our long-term goal.

In Q3 2022 we managed to reduce our SG&A as percentage of Total Sales by over 400 bps compared to the previous quarter. Lenta continues to adapt to the new environment; we are reducing inefficient costs and focusing on achieving our long-term margin guidance announced earlier. I would like to thank every member of our large team for their dedication every day and our customers and partners for their trust and support».

Q3 & 9M 2022 OPERATING RESULTS, y-o-y

Sales3

 

Q3’22

Q3’21

Change

% Change

9M’22

9M’21

Change

% Change

Total Sales (RUB million)

126,785

118,238

8,548

7.2%

389,244

336,325

52,919

15.7%

Retail Sales

125,087

116,066

9,021

7.8%

384,381

330,974

53,407

16.1%

Hypermarkets

101,240

99,478

1,762

1.8%

307,813

295,141

12,671

4.3%

Small Formats

21,870

16,588

5,282

31.8%

69,838

35,833

34,005

94.9%

Utkonos4

1,977

-

1,977

-

6,730

-

6,730

-

Wholesale5

1,698

2,171

-473

-21.8%

4,863

5,351

-488

-9.1%

Average Ticket (RUB)

985

1,012

-27

-2.7%

1,028

1,070

-42

-3.9%

Hypermarkets

1,283

1,215

68

5.6%

1,326

1,224

101

8.3%

Small Formats

459

505

-46

-9.0%

499

525

-27

-5.1%

Utkonos

3,950

-

3,950

-

4,215

-

4,215

-

Number of Tickets (millions)

127

115

12

10.7%

374

309

65

20.9%

Hypermarkets

79

82

-3

-3.6%

232

241

-9

-3.7%

Small Formats

48

33

15

44.9%

140

68

72

105.3%

Utkonos

0.5

--

1

-

1.6

-

2

-

Stores and Selling Space

 

Q3’22

Q3’21

Change

% Change

9M’22

9M’21

Change

% Change

Total Retail Stores (eop)

811

674

137

20.3%

811

674

137

20.3%

Hypermarkets

254

255

-1

-0.4%

254

255

-1

-0.4%

Openings

0

0

0

0.0%

0

3

-3

-

Closing

0

0

0

0.0%

0

2

-2

-

Small Formats

557

419

138

32.9%

557

419

138

32.9%

Openings

18

270

-252

-93.3%

80

283

-203

-71.7%

Closing

16

2

14

-

26

3

23

-

New Selling Space (sqm, eop)

1,618

196,642

-195,023

-99.2%

25,337

207,219

-181,881

-87.8%

Hypermarkets

0

0

0

0.0%

0

5,728

-5,728

-

Small Formats

1,618

196,642

-195,023

-99.2%

25,337

201,491

-176,153

-87.4%

Total Selling Space (sqm, eop)

1,780,320

1,725,817

54,504

3.2%

1,780,320

1,725,817

54,504

3.2%

Hypermarkets

1,401,291

1,406,516

-5,225

-0.4%

1,401,291

1,406,516

-5,225

-0.4%

Small Formats

379,029

319,301

59,729

18.7%

379,029

319,301

59,729

18.7%

LFL Results6

 

Q3’22

9M’22

 

Sales

Average Ticket

Traffic

Sales

Average Ticket

Traffic

Total Retail

1.3%

4.6%

-3.2%

3.8%

7.5%

-3.4%

Hypermarkets

2.3%

5.6%

-3.1%

4.4%

8.2%

-3.5%

Small Formats

-6.8%

-3.7%

-3.2%

-1.8%

1.5%

-3.2%

 

Online Sales3

 

Q3’22

Q3’21

Change

% Change

9M’22

9M’21

Change

% Change

Total Online Sales (RUB million)

8,750

4,415

4,335

98.2%

29,189

12,307

16,882

137.2%

Online Partners

2,081

2,521

-439

-17.4%

7,771

7,006

765

10.9%

Lenta Online7

4,692

1,895

2,798

147.7%

14,688

5,301

9,386

177.1%

Utkonos8

1,977

0

1,977

-

6,730

0

6,730

-

Average Online Ticket (RUB)

2,275

1,813

463

25.5%

2,277

1,795

482

26.9%

Online Partners

1,916

1,754

162

9.2%

1,898

1,791

108

6.0%

Lenta Online7

2,077

1,898

179

9.5%

2,063

1,802

261

14.5%

Utkonos8

3,950

0

3,950

-

4,200

0

4,200

-

Total Online Orders (thousands)

3,846

2,436

1,410

57.9%

12,817

6,855

5,962

87.0%

Online Partners

1,086

1,437

-351

-24.4%

4,094

3,913

181

4.6%

Lenta Online7

2,259

998

1,261

126.3%

7,121

2,943

4,179

142.0%

Utkonos8

500

0

500

-

1,602

0

1,602

-

 

For Q3 2022 monthly operating results, please refer to Appendix 1

 

3. Including Utkonos results from the date of consolidation (1 February 2022)

4. Includes only Utkonos Retail Sales (B2C)

5. Wholesales includes Utkonos wholesales (B2B)

6. LFL results include the results of Billa stores for September but do not include the results of Semya stores.

7. Lenta Online includes Click & Collect

8. Includes both Utkonos retail sales (B2C) and wholesales (B2B)

 

Q3 2022 OPERATING RESULTS

In Q3 2022, Total Sales increased by 7.2% to RUB 126.8 billion. Lenta’s Retail Sales in Q3 2022 increased by 7.8% to RUB 125.1 billion, compared to RUB 116.1 billion in Q3 2021, driven by 1.3% LFL Retail Sales growth and 3.2% Total Selling Space organic expansion. Overall Sales Density in Q3 2022 improved by 2.0% year-over-year.

In Q3 2022, we oversaw the change in customers’ behavior driven primarily by the decrease in real disposable income and the decline in consumer confidence. Our customers now tend to buy a product from a lower price segment and reduce their expenses on non-food categories and entertainment goods. Meanwhile, the growth rate in the Online channel is slowing down.

In Q3 2022, the total Number of Tickets increased by 10.7% thanks to the above-mentioned organic expansion and gradual improvement in the performance of our Lenta Mini stores, while the Average Ticket size decreased by 2.7% primarily due to the increasing share of small-format stores’ sales in total Retail Sales.

Wholesale Sales, which now includes Utkonos B2B sales from the date of the consolidation, represented 1.3% of Total Sales and decreased by 21.8% compared to the corresponding period of the previous year.

In Q3 2022, the Average Ticket continued to be the driver of LFL Sales growth. LFL Sales growth decelerated to 1.3% in Q3 2022. Total Retail LFL Traffic stood at a negative 3.2%. The Total Retail LFL Average Ticket increased by 4.6%, offsetting negative LFL Traffic.

In Q3 2022, Lenta continued to improve its loyalty program and actively worked on assortment tailoring and promo recovery. In Q3 2022, 2.4 million new loyalty cards were activated, with the total number of loyalty cards issued reaching to 25.5 million. Transactions using loyalty cards slightly increased compared to Q2 2022 and accounted for 96.1% of total Retail Sales, excluding Utkonos.

Hypermarket Sales represented 80.9% of total Retail Sales in Q3 2022. Hypermarkets delivered 1.8% Sales growth, positive LFL Sales growth of 2.3%, and an increase of 5.6% in the LFL Average Ticket, driven primarily by inflation. Lenta continues to improve the efficiency of in-store operations, which led to a sales density improvement of 5.4% year-over-year.

In 2022, Lenta put on hold a significant number of store openings due to the macroeconomic conditions and market uncertainties. During Q3 2022, 18 new small-format stores were opened. Lenta also closed 16 underperforming stores to optimize operations, bringing the total number of small-format stores to 557 as of the end of Q3. In the reporting period, small-format stores demonstrated decent year-over-year Sales Growth of 31.8%, driven by acquisitions made in 2021 and organic expansion. Small-format stores’ LFL Sales decreased by 6.8% as a result of a 3.7% decrease in the LFL Average Ticket and a 3.2% decline in LFL Traffic. This quarter-on-quarter decline in the performance of small-format stores was driven by the high base effect associated with clearance sales at Billa stores prior to the chain’s integration with Lenta in September 2021.

In Q3 2022, Lenta’s Online channel continued to demonstrate very strong sales growth. Total Online Sales including Utkonos sales during the period amounted to RUB 8.8 billion, an increase of 98.2% year-over-year, while Total Online Orders were up 57.9% and amounted to 3.8 million. The Average Ticket for Lenta Online was RUB 2,077 an increase of 9.5% year-over-year. The share of online sales via Partners decreased significantly following Partners’ revision of their approach to the development of their online offering. Lenta Online demonstrated considerable sales growth thanks to increases in the Average Ticket, the size of the customer base and the number of orders. In Q3 2022, Online Sales constituted 6.9% of Lenta’s Total Sales, compared to 3.7% in the corresponding period of the previous year. In Q3 2022, Lenta continued to expand Unkonos online offering and launched Utkonos Mini sales at several partners’ platforms.

Q3 & 9M 2022 FINANCIAL HIGHLIGHTS, pre–IFRS 16

Key Financial Results, pre–IFRS 16

RUB million

Q3’22

Q3’21

Change

9M’22

9M’21

Change

Total Sales

126,785

118,238

7.2%

389,224

336,325

15.7%

Gross Profit

26,500

27,888

-5.0%

89,339

77,610

15.1%

Gross Margin (%)

20.9%

23.6%

-268 bps

23.0%

23.1%

-12 bps

SG&A

-24,918

-22,661

-10.0%

-85,422

-64,764

-31.9%

SG&A as % of Total Sales

-19.7%

-19.2%

-49 bps

-21.9%

-19.3%

-269 bps

EBITDAR

10,416

12,607

-17.4%

31,813

33,448

-4.9%

EBITDAR Margin

8.2%

10.7%

-245 bps

8.2%

9.9%

-177 bps

Rent as % of Total Sales

-2.3%

-1.9%

-36 bps

-2.3%

-1.7%

-60 bps

EBITDA

7,545

10,356

-27.1%

22,954

27,828

-17.5%

EBITDA Margin

6.0%

8.8%

-281 bps

5.9%

8.3%

-238 bps

Operating Profit before impairment

3,001

6,475

-53.7%

9,594

16,331

-41.3%

Operating Profit Margin before impairment

2.4%

5.5%

-311 bps

2.5%

4.9%

-239 bps

Impairment

-

-

-

-

-9

-

Operating Profit

3,001

6,475

-53.7%

9,594

16,322

-41.2%

Operating Profit Margin

2.4%

5.5%

-311 bps

2.5%

4.9%

-239 bps

Net Interest Expense

-1,185

-1,298

8.7%

-3,640

-3,629

-0.3%

Net FX gain/(loss)

-144

141

-

213

-469

-

Profit Before Income Tax

1,672

5,318

-68.6%

6,167

12,224

-49.6%

Net Income

1,285

4,181

-69.3%

4,643

9,544

-51.4%

Net Income Margin

1.0%

3.5%

-252 bps

1.2%

2.8%

-164 bps

For Q3 & 9M 2022 financial highlights prepared in accordance with IFRS 16, please refer to Appendix 2

Total Sales demonstrated strong growth of 7.2% and amounted to RUB 126.8 billion, compared to RUB 118.2 billion in Q3 2021.
In Q3 2022, Gross Profit (pre–IFRS 16) decreased by 5.0% year-over-year to RUB 26.5 billion. Gross Margin dropped by 268 bps to 20.9%; the decrease in Gross Margin was driven mainly by higher investments in traffic retention, increased promo share, and a shift in the sales product mix toward lower margin goods.
The decline in Gross Profit and 10.0% increase in Total SG&A led to a 27.1% decrease in EBITDA (pre–IFRS 16) year-over-year. In Q3 2022, Lenta’s EBITDA Margin stood at 6.0%. EBITDA Margin declined by 281 bps compared to the previous year, primarily due to lower Gross Margin and the growth of SG&A as a percentage of Total Sales, which resulted from an increased share of stores in the ramp-up stage, the growing share of Lenta’s own online, and the Utkonos acquisition.

Selling, General, and Administrative (SG&A) expenses, pre–IFRS 16

RUB million

Q3’22

Q3’21

Change

9M’22

9M’21

Change

Payroll and related taxes

8,842

8,189

8.0%

34,778

24,473

42.1%

as a % of Total Sales

7.0%

6.9%

5 bps

8.9%

7.3%

166 bps

Depreciation and Amortization (D&A)

4,543

3,881

17.1%

13,360

11,497

16.2%

as a % of Total Sales

3.6%

3.3%

30 bps

3.4%

3.4%

1 bps

Lease Expenses

2,871

2,251

27.5%

8,859

5,620

57.6%

as a % of Total Sales

2.3%

1.9%

36 bps

2.3%

1.7%

60 bps

Utilities

1,321

1,444

-8.5%

4,847

4,091

18.5%

as a % of Total Sales

1.0%

1.2%

-18 bps

1.2%

1.2%

3 bps

Store Operations

2,532

2,482

2.0%

8,553

7,172

19.3%

as a % of Total Sales

2.0%

2.1%

-10 bps

2.2%

2.1%

6 bps

Professional Fees

1,487

1,329

11.9%

4,220

3,429

23.1%

as a % of Total Sales

1.2%

1.1%

5 bps

1.1%

1.0%

6 bps

Advertising

1,850

1,563

18.4%

5,338

3,944

35.3%

as a % of Total Sales

1.5%

1.3%

14 bps

1.4%

1.2%

20 bps

Other

1,472

1,522

-3.3%

5,467

4,538

20.5%

as a % of Total Sales

1.2%

1.3%

-13 bps

1.4%

1.3%

6 bps

Total SG&A

24,918

22,661

10.0%

85,422

64,764

31.9%

as a % of Total Sales

19.7%

19.2%

49 bps

21.9%

19.3%

269 bps

SG&A excluding D&A

20,375

18,780

8.5%

72,062

53,267

35.3%

as a % of Total Sales

16.1%

15.9%

19 bps

18.5%

15.8%

268 bps

For Q3 & 9M 2022 SG&A expenses in accordance with IFRS 16, please refer to Appendix 2

In Q3 2022, Total Selling, General, and Administrative expenses (pre–IFRS 16) increased by 10.0% year-over-year to RUB 24.9 billion. SG&A as a percentage of Total Sales increased by 49 bps to 19.7%. This growth was mainly driven by higher lease expenses as well as increased D&A.

In Q3 2022, Payroll expenses rose by 8.0% year-over-year, while personnel expenses as a percentage of Total Sales increased by 5 bps. These dynamics was primarily driven by a higher share of stores in the ramp-up stage and Utkonos acquisition which were offset by improved labor productivity in our hypermarkets.

D&A increased by 17.1% primarily due to the acquisition of Utkonos warehouses as well as the consolidation of Billa and Semya. D&A as a percentage of Total Sales decreased by 30 bps.

Lease expenses as a percentage of Total Sales rose by 36 bps, primarily due to the expansion of small format stores with higher share of leased premises.

Store Operations as percentage of Total Sales decreased by 10 bps year-over-year, mainly driven by 15 bps decline in repairs and maintenance and a 3 bps decrease in security costs, while cleaning costs increased by 8 bps.

Advertising costs during Q3 2022 were up 18.4% year-over-year, due to increased investments in our growing online business and expenses related to support for small-format in the ramp-up stage.

Cash Flow Statement, pre–IFRS 16

RUB million

Q3’22

Q3’21

Change

9M’22

9M’21

Change

Profit before income tax

1,672

5,318

-68.6%

6,167

12,224

-49.6%

Net adjustments for loss on disposal of assets, impairment, depreciation & amortization, and other

5,866

4,834

21.3%

17,194

15,574

10.4%

Movements in Working Capital

2,791

1,277

118.6%

-15,106

-8,939

-69.0%

Cash generated from / (used in) operating activities

10,329

11,429

-9.6%

8,255

18,859

-56.2%

Net Interest & Income Taxes Paid

-1,502

-1,228

-22.3%

-6,979

-4,551

-53.4%

Net Cash generated from Operating Activities

8,827

10,201

-13.5%

1,276

14,308

-91.1%

Net cash used in Investing Activities

-1,685

-23,067

92.7%

-9,044

-27,935

67.6%

Net cash generated from / (used in) financing activities

3,000

-168

-

-2,051

9,259

-

Effect of exchange rates on cash and cash equivalents

-68

126

-

-206

-489

57.9%

Net Increase / (Decrease) in Cash & Cash Equivalents

10,074

-12,908

-

-10,025

-4,857

-106.4%

For the Q3 & 9M 2022 cash flow statement prepared in accordance with IFRS 16, please refer to Appendix 2

Capital Expenditures in Q3 2022 amounted to RUB 1.9 billion, an increase of 26.3% year-over-year. This increase resulted from the opening of new stores and expenses related to the integration of Billa, Semya, and Utkonos’s online business.

The Company’s Profit before Income Tax for Q3 2022 was RUB 1.7 billion, which was 68.6% lower than in Q3 2021. The decrease in Profit before income tax was mainly the result of a 53.7% year-over-year decline in Operating Profit as well as net FX losses incurred compared to the net FX gain received in Q3 2021.

In Q3 2022, Net Cash generated from Operating Activities (pre–IFRS 16) amounted to RUB 8.8 billion, compared to RUB 10.2 billion the previous year. These dynamics resulted from the decrease in Profit before income tax, which was offset by the much higher positive movement of Working Capital and higher D&A.

Net Cash used in Investing Activities was 1.7 billion compared to 23.1 billion for the same period of the previous year. In Q3 2021 Net Cash used in Investing Activities was primarily related to the acquisition of Billa and Semya.

In Q3 2022, Net Cash generated from Financing Activities amounted to RUB 3.0 billion, compared to Net Cash used in Financing Activities of RUB 0.2 billion in Q3 2021.

Free Cash Flow for Q3 2022 was RUB 7.1 billion, which was RUB 20.0 billion higher than in Q3 2021, mainly due to lower Net Cash used in Investing Activities.

Debt Position and Leverage

 

IFRS 16

IAS 17

RUB million

30-Sep-22

31-Dec-21

30-Sep-22

31-Dec-21

Gross Debt

141,088

148,962

86,504

88,414

Long-term Debt

28,980

66,912

28,980

66,912

Short-term Debt

57,524

21,502

57,524

21,502

Lease Liabilities (IFRS 16)

54,584

60,548

-

-

Cash & Cash Equivalents

23,302

33,326

23,302

33,326

Net Debt

117,786

115,636

63,202

55,088

Net Debt / EBITDA (LTM) ratio

 

 

1.8x

1.4x

 

Lenta’s cash position at the end of Q3 2022 was RUB 23.3 billion. Gross Debt decreased by 2.2% compared to 31 December 2021 and stood at RUB 86.5 billion as of 30 September 2022. Net Debt (pre–IFRS 16) increased by RUB 8.1 billion compared to year-end 2021 and stood at RUB 63.2 billion.

All the Company’s debt has fixed interest rates and is fully ruble-denominated, matching its revenue structure. The LTM weighted average effective interest rate for Lenta’s debt portfolio for the period ended 30 September 2022 was 7.6%, compared to 6.8% for the twelve-month period ended 30 September 2021.

Lenta’s Net Debt to EBITDA ratio was 1.8x as of 30 September 2022 vs. 1.4x as of 31 December 2021.

 

Lenta

Tatyana Vlasova
Head of Investor Relations
tatyana.vlasova@lenta.com  

Lenta
Mariya Filippova
Head of Public Relations and Government Affairs
maria.filippova@lenta.com  

For further information, please contact:

About Lenta

Lenta IPJSC (LSE: LNTA, MOEX: LENT) 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 own Lenta Online services, Online Partners and the Utkonos platform. 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, 2022, operated 254 hypermarkets and 557 supermarkets and Lenta Mini stores in over 200 cities and towns across Russia, with almost 1.78 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 its stores. 2021 Revenues were RUB 484 billion (approximately USD 6.5 billion).

Forward-Looking Statements

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.

Appendix 1

Q2 2022 MONTHLY OPERATING RESULTS

Sales3

 

July

YoY

August

YoY

September

YoY

Total Sales (RUB million)

43,956

16.0%

41,837

5.6%

40,993

0.6%

Retail Sales

43,499

16.8%

41,332

6.2%

40,257

0.9%

Hypermarkets

35,322

3.4%

33,433

1.6%

32,485

0.3%

Small Formats

7,527

144.2%

7,230

20.5%

7,113

-5.3%

Utkonos4

650

-

668

-

658

-

Wholesale5

457

-28.5%

505

-27.6%

736

-11.8%

Average Ticket (RUB)

1,005

-7.7%

958

-3.0%

991

2.1%

Hypermarkets

1,302

7.0%

1,246

3.8%

1,303

6.0%

Small Formats

470

-6.2%

448

-10.6%

458

-9.8%

Utkonos

4,063

-

3,863

-

3,933

-

Number of Tickets (millions)

43

26.5%

43

9.5%

41

-1.2%

Hypermarkets

27

-3.4%

27

-2.2%

25

-5.4%

Small Formats

16

160.4%

16

34.8%

16

5.0%

Utkonos

0.2

-

0.2

-

0.2

-

Stores and Selling Space

 

July

August

September

Total Retail Stores (eop)

817

817

811

Hypermarkets

254

254

254

Openings

0

0

0

Closing

0

0

0

Small Formats

563

563

557

Openings

8

4

6

Closing

0

4

12

New Selling Space (sqm, eop)

4,057

139

-2,578

Hypermarkets

0

0

0

Small Formats

4,057

139

-2,578

Total Selling Space (sqm, eop)

1,782,759

1,782,898

1,780,320

Hypermarkets

1,401,291

1,401,291

1,401,291

Small Formats

381,468

381,607

379,029

Online Sales

 

July

YoY

August

YoY

September

YoY

Total Online Sales (RUB million)

2,933

127.3%

2,796

96.7%

3,021

77.4%

Online Partners

723

1.4%

639

-21.9%

719

-27.3%

Lenta Online6

1,561

169.9%

1,488

146.9%

1,643

130.3%

Utkonos7

650

-

668

-

658

-

Average Online Ticket (RUB)

2,272

26.2%

2,239

25.3%

2,314

25.5%

Online Partners

1,941

10.7%

1,855

6.9%

1,947

10.1%

Lenta Online6

2,056

10.5%

2,035

9.3%

2,137

9.0%

Utkonos7

4,063

-

3,863

-

3,933

-

Total Online Orders (thousands)

1,291

80.2%

1,249

57.0%

1,306

41.4%

Online Partners

372

-8.3%

345

-26.9%

369

-34.0%

Lenta Online6

759

144.3%

731

125.8%

769

111.3%

Utkonos7

160

-

173

-

167

-

 

3. Including Utkonos results from the date of consolidation (1 February 2022)

4. Includes only Utkonos Retail Sales (B2C)

5. Wholesales includes Utkonos wholesales (B2B)

6. Lenta Online includes Click & Collect

7. Includes both Utkonos retail sales (B2C) and wholesales (B2B)

Appendix 2

Q3 & 9M 2022 FINANCIAL HIGHLIGHTS, IFRS 16

Key Financial Results, IFRS 16

RUB million

Q3’22

Q3’21

Change

9M’22

9M’21

Change

Total Sales

126,785

118,238

7.2%

389,244

336,325

15.7%

Gross Profit

26,599

27,966

-4.9%

89,701

77,773

15.3%

Gross Margin (%)

21.0%

23.7%

-267 bps

23.0%

23.1%

-8 bps

SG&A

-24,329

-22,266

-9.3%

-83,628

-63,591

-31.5%

SG&A as % of Total Sales

-19.2%

-18.8%

-36 bps

-21.5%

-18.9%

-258 bps

EBITDAR

10,652

12,707

-16.2%

32,243

33,807

-4.6%

EBITDAR Margin

8.4%

10.7%

-235 bps

8.3%

10.1%

-177 bps

Rent as % of Total Sales

-0.3%

-0.3%

                         -  

-0.3%

-0.2%

-9 bps

EBITDA

10,291

12,367

-16.8%

30,977

33,014

-6.2%

EBITDA Margin

8.1%

10.5%

-234 bps

8.0%

9.8%

   -186 bps

Operating Profit before impairment

3,827

6,971

-45.1%

11,818

17,864

-33.8%

Operating Profit Margin before impairment

3.0%

5.9%

-288 bps

3.0%

5.3%

-228 bps

Impairment

-

-

-

-

-9

-

Operating Profit

3,827

6,971

-45.1%

11,818

17,855

-33.8%

Operating Profit Margin

3.0%

5.9%

-288 bps

3.0%

5.3%

-227 bps

Net Interest Expense

-2,488

-2,219

-12.1%

-7,398

-5,930

-24.8%

Net FX loss

-431

137

-

822

-452

-

Profit Before Income Tax

908

4,889

-81.4%

5,242

11,473

-54.3%

Net Income

673

3,838

-82.5%

3,903

8,943

-56.4%

Net Income Margin

0.5%

3.2%

-272 bps

1.0%

2.7%

-166 bps

 

Selling, General, and Administrative (SG&A) expenses, IFRS 16

RUB million

Q3’22

Q3’21

Change

9M’22

9M’21

Change

Payroll and related taxes

8,842

8,189

8.0%

34,778

24,473

42.1%

as a % of Total Sales

7.0%

6.9%

5 bps

8.9%

7.3%

166 bps

Depreciation and Amortization (D&A)

6,464

5,397

19.8%

19,159

15,151

26.5%

as a % of Total Sales

5.1%

4.6%

53 bps

4.9%

4.5%

42 bps

Lease Expenses

361

340

6.2%

1,266

793

59.6%

as a % of Total Sales

0.3%

0.3%

0 bps

0.3%

0.2%

9 bps

Utilities

1,321

1,444

-8.5%

4,847

4,091

18.5%

as a % of Total Sales

1.0%

1.2%

-18 bps

1.2%

1.2%

3 bps

Store Operations

2,532

2,482

2.0%

8,553

7,172

19.3%

as a % of Total Sales

2.0%

2.1%

-10 bps

2.2%

2.1%

6 bps

Professional Fees

1,487

1,329

11.9%

4,220

3,429

23.1%

as a % of Total Sales

1.2%

1.1%

5 bps

1.1%

1.0%

6 bps

Advertising

1,850

1,563

18.4%

5,338

3,944

35.3%

as a % of Total Sales

1.5%

1.3%

14 bps

1.4%

1.2%

20 bps

Other

1,472

1,522

-3.3%

5,467

4,538

20.5%

as a % of Total Sales

1.2%

1.3%

-13 bps

1.4%

1.3%

6 bps

Total SG&A

24,329

22,266

9.3%

83,628

63,591

31.5%

as a % of Total Sales

19.2%

18.8%

36 bps

21.5%

18.9%

258 bps

SG&A excluding D&A

17,865

16,869

5.9%

64,469

48,440

33.1%

as a % of Total Sales

14.1%

14.3%

-18 bps

16.6%

14.4%

216 bps

Cash Flow Statement, IFRS 16

RUB million

Q3’22

Q3’21

Change

9M’22

9M’21

Change

Profit before income tax

908

4,889

-81.4%

5,242

11,473

-54.3%

Net adjustments for loss on disposal of assets, impairment, depreciation & amortization, and other

9,239

7,283

26.9%

26,073

21,499

21.3%

Movements in Working Capital

2,926

1,415

106.8%

-15,003

-8,938

-67.9%

Cash generated from / (used in) operating activities

13,073

13,587

-3.8%

16,312

24,034

-32.1%

Net Interest & Income Taxes Paid

-2,809

-2,209

-27.2%

-10,755

-6,913

-55.6%

Net Cash generated from / (used in) Operating Activities

10,264

11,378

-9.8%

5,557

17,121

-67.5%

Net cash used in Investing Activities

-1,675

-23,058

92.7%

-9,015

-27,909

-67.7%

Net cash generated from / (used in) financing activities

1,553

-1,354

-

-6,361

6,420

-

Effect of exchange rates on cash and cash equivalents

-68

126

-

-206

-489

57.9%

Net Increase / (Decrease) in Cash & Cash Equivalents

10,074

-12,908

-

-10,025

-4,857

-106.4%

 



ISIN: US52634T2006, US52634T1016
Category Code: QRT
TIDM: LNTA;LENT
LEI Code: 213800OMCE8QATH73N15
Sequence No.: 196183
EQS News ID: 1469773

 
End of Announcement EQS News Service

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