Lenta Ltd. (LNTA;LNTR)
Lenta PLC.: FY 2019 IFRS financial results
25-Feb-2020 / 07:59 CET/CEST
Dissemination of a Regulatory Announcement that contains inside information
according to REGULATION (EU) No 596/2014 (MAR), transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
LENTA PUBLISHES AUDITED IFRS FINANCIAL RESULTS FOR THE YEARED 31
DECEMBER 2019
St. Petersburg, Russia; 25 February 2020 - Lenta PLC ("Lenta" or the
"Company"), one of the largest retail chains in Russia, today announces its
audited consolidated IFRS results for the year ending 31 December 2019.
2019 Financial Highlights:
? Total sales grew 1.0% to Rub 417.5bn (2018: Rub 413.6bn), including
retail sales growth of 4.0% to Rub 408.0bn (2018: Rub 392.2bn) and
wholesales decline of 55.5%;
? The gross margin of 22.0% (+0.5 p.p. vs. 2018) increased on the back of
a slightly higher retail margin and a positive impact from a declining
share of low-margin wholesale business in total sales;
? SG&A increased to 18.3% of sales (1.6 p.p. higher vs. 2018) mostly due
to higher personnel expenses, higher depreciation linked to a reassessment
of the economic useful life of land improvements and an increase in rental
costs linked to the indexation of rental fees;
? EBITDA of Rub 34.0bn, down 6.2% (2018: Rub 36 .2bn) with a margin of
8.1% (2018: 8.8%).
? Non-cash expenses of approx. Rub 14.1bn, including impairment of assets
of approx. Rub 11.8bn and depreciation from a change in useful life of
land improvements of approx. Rub 2.3bn;
? Net interest expenses of Rub 9.3bn, an increase of 1.9% compared to 2018
(Rub 9.1bn) as an increase in gross debt offset a decline in the average
cost of debt;
? Net Loss[1] of Rub 2.1bn due to non-cash expenses, with a negative Net
Profit margin of 0.5% compared to Net Profit of Rub 11.7bn in 2018 with
Net Profit margin of 2.9%;
? Net cash generated from operating activities, before net interest and
income taxes paid, of Rub 42.8bn compared to Rub 32.4bn in 2018 with an
increase of 32.1% due to movements in working capital;
? Capital expenditures of Rub 14.1bn, a decrease of 36.1% compared to 2018
(Rub 22.1bn) mainly due to the slower rate of expansion compared to the
prior year, tight control over expenses and changes in the phasing of
payments for some planned non-expansion projects;
? The Company generated a positive free cash flow of Rub 17.0bn in 2019;
? Net Debt of Rub 77.1bn as of 31 December 2019 vs. Rub 93.3bn as at the
end of 2018 and Rub 99.3 as at 30 June 2019;
? Net Debt/EBITDA of 2.3x compared to 2.6x as at 31 December 2018 and 2.7x
as at 30 June 2019.
2019 Operational Highlights:
? Eight new hypermarkets and three supermarkets were opened in 12M 2019,
while three hypermarkets and seven supermarkets were closed during the
same period;
? Total number of stores was 380 as at 31 December 2019, comprising 249
hypermarkets and 131 supermarkets with a selling space of 1,489,497 sq.m
(+1.5% vs. 31 December 2018);
? Lenta has changed its approach to recognizing wholesale and retail sales
and revised sales figures from these two channels for 4Q/FY 2018 and 4Q/FY
2019. The revision did not affect total sales growth of the Company.
? Like-for-like ("LFL")[2] retail sales growth of 0.1% excluding VAT. This
is the equivalent of LFL retail sales growth of 0.9% including VAT, due to
the increase in VAT from 1 January 2019;
? LFL average ticket growth of 0.1% and flat LFL retail traffic in 2019;
? The number of active loyalty cardholders[3] increased by 10.1% y-o-y to
a total of 15.8m as of 31 December 2019;
? Lenta opened a new distribution center in Moscow with total space of
70,990 sq.m and extended its warehouse in Novosibirsk, bringing its total
space to 71,837 sq.m. Both facilities contain new features, which will
optimize the Company's procurement and logistics in addition to support
centralization and further development of Lenta's "hero categories".
*Events after the reported period: *
? On the 21st of February Lenta received a certificate of temporary
registration in Cyprus following its application to the Department of
Registrar of Companies and Official Receiver. As a result of the
Redomiciliation becoming effective, the Company is now named Lenta PLC,
has adopted a new memorandum and articles of association, and entered into
a new deposit agreement with Deutsche Bank Trust Company Americas. All the
relevant announcements can be viewed on the Company's website at
www.lentainvestor.com
Lenta's Chief Executive Officer, Herman Tinga said:
"2019 presented a challenging economic and operating environment, but we
took measures to increase our resilience to adapt to changing market
conditions. The year was also a turning point for us at Lenta, both in terms
of changes in our shareholder structure and an evolution of our strategy. We
continued to slow our previously rapid expansion with a clear focus on store
performance and returns. As a result, our overall selling space grew by just
1.5%, and we also closed a few unprofitable hypermarkets. This, along with
the subdued macroeconomic environment, aggressive competition, higher
promo-activity, and some misses in our non-food performance hit our EBITDA
margin in 2019, which declined to 8.1% from 8.8% in the previous year.
In the current environment, our hypermarkets faced the greatest challenges.
This was especially visible in the third and the fourth quarter with
declining LFL sales - a result of fewer visits by consumers along with a
lower number of items purchased per basket. Nonetheless, we retained our
strong position in the market and as evidence we see a further inflow of new
customers who chose Lenta for grocery shopping. Our priority for this year
is to offer customers a better shopping experience, improved assortment and
enhanced customer communication to achieve positive trends in the
performance of our core business.
Finally, I am satisfied with the work of our supermarkets over the past
year. This format had been a significant challenge for us in 2018. However,
we appointed a dedicated team and implemented a number of initiatives to
better our customer value proposition. As a result we saw material
improvements in EBITDA which remained positive throughout 2019. I am
confident in the prospects of this format, although it still represents a
relatively small part of our business."
Lenta's Chief Financial Officer, Rud Pedersen commented:
"In 2019 we worked on initiatives to achieve operational efficiency and
improve our cash flow. Our efforts started to pay off as we saw some
improvements in the dynamics of our SG&A in the second half of the year due
to optimizing the headcount, our marketing costs and other operating
expenses. Our team also achieved good results in managing working capital,
which, along with tight control over capital expenditures, resulted in a
strong free cash flow of around Rub 17bn. Considering the new stage of the
Company's development and our own efforts, we maintain our target to remain
free-cash-flow positive and deliver value to our shareholders.
Improving our cash flow and performance across all formats remains our key
priority for the current year, albeit we do not exclude potential
opportunities to further strengthen our position in the market. This can
include expansion in existing and new formats and further exploration of the
online market."
Operating performance
Quarterly Year to Date
As As at Net Change As As at Net Change
at 31 change (%) at 31 change (%)
31 Decem 31 Decem
Dece ber Dece ber
mber mber
4Q FY
4Q 2018 FY 2018
2019 2019
Total 117, 119,5 (1 693) (1.4%) 417, 413,5 3,938 1.0%
sales 893 86 500 62
(Rub,
million)
Retail 115, 115,4 (164) (0.1%) 407, 392,1 15,787 4.0%
sales 285 49 986 99
(Rub,
million)
Hypermarke 105, 106,3 (866) (0.8%) 373, 364,7 8,253 2.3%
ts 524 90 012 58
Supermarke 9,76 9,059 702 7.7% 34,9 27,44 7,534 27.5%
ts 1 74 1
Wholesales 2,60 4,136 (1,528) (37.0%) 9,51 21,36 (11,85 (55.5%)
(Rub, 8 4 3 0)
million)
Lenta updated operational figures provided in January for FY 2018 and FY
2019 with the effect on the previous quarterly results. These changes
reflect the elimination of differences between operating and financial
accounting.
YoY growth 1H 2019 2H 2019 2019
Total sales 3.1% -0.9% 1.0%
Retail sales 7.2% 1.2% 4.0%
LFL retail sales 2.9% -2.2% 0.1%
LFL retail traffic 2.2% -1.9% 0.0%
LFL retail ticket 0.7% -0.3% 0.1%
Lenta's total sales in 2019 increased 1.0% compared to 2018 on the back of
an increase in retail sales by 4.0% and a decline in wholesales by 55.5%.
This included retail sales growth from new stores that opened in 2019, new
stores that opened in 2018 that are not yet part of the LFL panel and a
like-for-like retail sales increase of 0.1%. Lenta recorded a 1.5% increase
in net selling space as of 31 December 2019 compared to 31 December 2018.
After the robust performance in the first half, sales came under pressure in
the second half of the year due to declining inflation, higher promotional
activity and a decline in LFL sales, which was especially pronounced in the
fourth quarter. Total LFL retail sales increased 0.1% during the reported
year driven by an increase in LFL ticket by 0.1%, while LFL traffic was flat
versus 2018.
In 2019 the Company recorded a significant decline in LFL non-food sales by
7.4% (excl. VAT). The results were weak amid a high base of 2018, where LFL
non-food sales were positive throughout the year due to revised assortment
and successful promo-campaigns. The demand for the similar assortment fell
significantly last year mainly due to a deteriorated macroeconomic
environment. The company will keep working on its offering in this category
to meet consumer demand and deliver positive trends in non-food sales
performance.
At the same time, our LFL food sales grew 1.2% (excl. VAT) as a result of
positive changes in the assortment, procurement and marketing communication
during the year. In 2019 the Company launched new initiatives and focused on
the development of "hero categories" - the part of food products that is
intended to attract customers to the stores. As a result of the efforts,
"hero categories" delivered LFL sales growth of 3.5% (excl. VAT).
The Company maintained a focus on digital marketing activities as a mean to
reach customers. Lenta's mobile App has been installed by 4.8 million
customers since its launch in the fourth quarter of 2018. Direct
communication with consumers via the app with personalized offers delivered
promising uplifts in sales. The Company will continue improving its App with
a series of upgrades steadily increasing functionality. Lenta's goal is to
switch to low-cost digital customer communication leveraging insights from
individual customer loyalty-card data to deliver a better customer
experience leading to increased loyalty, higher sales and lower costs.
Store Network Development, Supply Chain and Performance Review
Lenta opened eight hypermarkets and three supermarkets during 2019, while
three hypermarkets and seven supermarkets were closed, taking the total
number of hypermarkets to 249 and supermarkets to 131. The Company did not
enter any new cities during the period and remained present in 88 cities[4]
across the country. Total selling space as at 31 December 2019 increased to
1,489,497 sq.m., up 1.5% year-on-year.
In 2019 the Company made a decision to run a bottom-up store performance
review to identify stores which have low potential to reach expected
returns. As a result of this review the Company closed seven supermarkets
and three hypermarkets during the year. An additional three hypermarkets may
be closed, subject to rent negotiations. The Company will continue operating
these stores if there is a positive outcome of lease negotiations.
In the second half of the year the Company added 21 stores to the
performance-review base, which resulted in additional impairment charges of
around Rub 2.8bn. Lenta is not considering closing any of these stores.
The Company continued investing in the optimization of its logistics. In
2019, Lenta opened a new distribution center in Moscow with a total space of
around 70,990 sq.m. and extended the total space of its existing warehouse
in Novosibirsk from 39,137to 71,837 sq.m. The larger space of the
distribution center mainly reflects the Company's decision to upgrade its
supply-chain standards by adding different temperature zones for fresh and
frozen food categories, as well as separate units for hero categories to
support their centralization and further development.
FY2019 Financial Performance
IAS 17
RUB 1H 1H 2019 2H 2H 2019 2018 2019 % Change
(millions) 2018 2018 2019 -
2018
Total 193,22 199,211 220,34 218,289 413,56 417,500 1.0%
sales 0 2 2
Gross 42,319 44,855 46,475 46,803 88,794 91,659 3.2%
profit
Gross 21.9% 22.5% 21.1% 21.4% 21.5% 22.0% 0.5p.p
margin
SG&A, % of 17.1% 19.1% 16.4% 17.6% 16.7% 18.3% 1.6p.p
sales
Adjusted 12.5% 13.9% 12.2% 12.8% 12.3% 13.3% 1.0p.p
SG&A[5], %
of sales
EBITDAR[6] 20,030 19,235 22,228 21,067 42,258 40,302 (4.6%)
EBITDAR 10.4% 9.7% 10.1% 9.7% 10.2% 9.7% (0.5p.p)
margin
Rental 1.5% 1.6% 1.4% 1.5% 1.5% 1.5% -
expenses,
% of sales
EBITDA 17,112 16,144 19,082 17,816 36,194 33,959 (6.2%)
EBITDA 8.9% 8.1% 8.7% 8.2% 8.8% 8.1% (0.7p.p)
margin
Operating 11,226 8,756 12,990 10,495 24,217 19,251 (20.5%)
profit
before
impairment
Impairment (200) (9,005) 68 (2,845) (132) (11,850 89.7x
)
Operating 11,027 (250) 13,058 7,651 24,084 7,401 (69.3%)
profit/(lo
ss)
Profit 6,354 (4,829) 8,464 3,089 14,817 (1,740) (111.7%)
before
income tax
Net Profit 5,161 (4,453) 6,634 2,349 11,794 (2,104) (117.8%)
Net profit 2.7% (2.2%) 3.0% 1.1% 2.9% (0.5%) (3.4p.p)
margin
Gross profit margin improved to 22.0% from 21.5% in 2018. The Company mainly
benefited from a significant decline in a share of a low-margin wholesales
business in the total sales throughout the year.An additional positive
effect came from a higher retail margin as an increase in promo share as %
of sales by 4.p.p. y-o-y was fully compensated by a combined effect of
higher promo margin and better coverage of promo activities by suppliers.
The expansion of the Company's own production and increased volumes led to a
rise in related costs by 43 bps. The share of shrinkage increased by 13 bps
as a result of ongoing changes in procurement, including increased direct
import and direct contracts with suppliers. At the same time, Lenta recorded
a declining shrinkage in its fresh-food category as a result of the
Company's focused efforts.
Supply-chain cost as % of sales rose by 17 bps to 1.3% in 2019 vs 1.2% in
2018. The increase was mainly driven by higher fuel prices and higher
personnel expenses following an expansion of own truck fleet and the launch
of new distribution centers. Nonetheless, higher transport costs were
largely offset by an increase in the share of deliveries by own truck fleet,
the increase in supply-chain income versus the previous year and ongoing
improvements in transportation efficiency. The Company's average
centralization ratio increased to 60.5% from 56.9% in 2018.
Personnel costs as % of sales grew by 56 bps y-o-y due to one-off expenses
related to management compensation, including an amount of Rub 116.5m
related to a change the shareholder structure, and further stores expansion.
Professional fees were higher as % of sales by 12 bps mainly due to rapid
growth of the share of customer payments by debit and credit cards, in
addition to one-off expense of around Rub 332m related to MTO[7] and the
re-domiciliation process. A country-wide increase in tariffs resulted in
higher utilities, and cleaning and communal costs which increased by 27bps.
As a result, adjusted SG&A as % of sales increased by 1.0 p.p to 13.3% in
2019 compared to 2018. Rental expenses increased marginally by 5 bps to 1.5%
of sales as a result of the indexation of rental fees in 2019 linked to the
CPI.
Following the factors mentioned above, EBITDA in 2019 reached Rub 34.0bn and
the EBITDA margin stood at 8.1%.
Depreciation as % of sales increased by 63 bps y-o-y, which was mainly due
to the Company reviewing the economic useful life of land improvements from
30 years to 7 years (as practice has proven that the factual useful life of
land improvements does not exceed 7 years). Consequently, the Company
recognized an additional non-cash expense of around Rub 2.3bn in 2019.
Total SG&A as % of sales increased to 18.3% in the reported period, up from
16.7% in 2018.
In the first half of the year, the Company's management decided to reassess
its impairment of assets. Lenta performed an impairment test of assets at
the lowest level of aggregation of assets that is able to generate
independent cash Inflows, which is generally at the individual store level.
In 2019 an impairment charge was made on 100 objects (55 hypermarkets and 40
supermarkets), including closed stores, stores that may be closed, and
several projects in progress; and also cover land, land improvements,
buildings and equipment. The Company recognised one-off non-cash impairment
loss of approximately Rub 11.8bn for 2019.
Net interest expenses increased 1.9% to Rub 9.3bn as the increase in gross
debt outpaced the reduction of the cost of debt. Overall, the
weighted-average effective interest cost decreased 40 bps from 8.6% for 2018
to 8.2% for 2019, declining to 7.8% in the fourth quarter of the year. The
Company achieved it through the combined effects of improvements in the
terms and conditions of major long-term loan facilities, debt repayments and
refinancing.
In 2019 Lenta recorded a tax benefit as a result of losses before tax, which
was offset by additional one-off income tax expenses. As a result the
Company recognized a tax expense in the amount of Rub 363m.
In the reported period the Company recognized a Net Loss of Rub 2.1bn
compared to a Net Profit of Rub 11.8bn in 2018. This was mainly due to the
negative impact from the above mentioned non-cash items in the total amount
of Rub 14.1bn.
IFRS 16
RUB IFRS 16 1H 2019 IFRS 16 2H 2019 IFRS 16 2019
(millions) impact impact impact
Total - 199,211 - 218,289 - 417,500
sales
Gross 187 45,043 171 46,975 358 92,017
profit
Gross 0.1p.p 22.6% 0.1p.p 21.5% - 22.0%
margin
SG&A, % of (0.3p.p) 18.8% (0.4p.p) 17.2% (0.3p.p) 18.0%
sales
Adjusted - 13.9% - 12.8% - 13.3%
SG&A[8], %
of sales
EBITDAR[9] 187 19,422 176 21,243 363 40,665
EBITDAR - 9.7% - 9.7% - 9.7%
margin
Rental (1.3p.p) 0.3% (1.2p.p) 0.3% (1.2p.p) 0.3%
expenses,
% of sales
EBITDA 2,680 18,824 2,866 20,682 5,547 39,506
EBITDA 1.3p.p 9.4% 1.3p.p 9.5% 1.4p.p 9.5%
margin
Operating 833 9,589 982 11,477 1,815 21,066
profit
before
impairment
Impairment - (9,005) - (2,845) - (11,850)
Operating 833 583 982 8,633 1,815 9,216
profit/(lo
ss)
Profit (470) (5,299) (393) 2,696 (863) (2,603)
before
income tax
Net Profit (376) (4,829) (314) 2,035 (690) (2,794)
Net profit (0.2p.p) (2.4%) (0.2p.p) 0.9% (0.2p.p) (0.7%)
margin
Cash Flow and Balance Sheet
RUB IAS 17 IFRS 16
(millions)
FY 2018 FY 2019 Change, % IFRS 16 impact FY 2019
2019 -2018
Cash flow 32,416 42,835 32.1% 5,599 48,434
from
operating
activities
Movements (4,400) 7,422 2.7x 57 7,479
in working
capital
Net (10,789) (11,767) 9.1% (2,795) (14,562)
interest
and income
taxes paid
Net cash 21,627 31,068 43.7% 2,804 33,872
flow from
operating
activities
Net cash (22,144) (14,008) (36.7%) 44 (13,964)
flow from
investing
activities
Net cash 20,020 22,540 12.6% (2,848) 19,692
flow from
financing
activities
Net 19,503 39,600 2.0x - 39,600
increase/(d
ecrease) in
cash and
cash
equivalents
Net cash generated from operating activities before net interest and income
taxes paid increased by 32.1% and reached Rub 42.8bn as opposed to Rub
32.4bn in 2018. The Company improved its inventory levels, which resulted in
better working capital in the reported year. Another positive impact came
from higher trade payables compared to 2018 due to better supplier
conditions.
Capital expenditures in 2019 were 36.1% lower than in 2018 and amounted to
Rub 14.1bn. The reduction mainly reflected the effect of slower organic
expansion, tight control over expenses and changes in phasing of payments
for some planned non-expansion projects. At 31 December 2019, the Group had
contractual capital expenditure commitments in respect to property, plant
and equipment, and intangible assets totalling Rub 6.2bn net of VAT (30
December 2018: Rub 11.5bn net of VAT).
As a result, the Company generated Rub 17.0bn of free cash flow during the
reported period.
RUB (millions) 31 December 30 June 31 December
2019 2019 2018
Gross debt 150,541 170,260 127,080
Long-term debt 82,110 87,064 106,341
Short-term debt 68,431 83,197 20,739
Cash and cash 73,405 70,969 33,805
equivalents
Net Debt 77,136 99,291 93,275
Net Debt/EBITDA 2.3x 2.7x 2.6x
As of 31 December 2019, the Company had a gross debt of Rub 150.5bn and a
cash balance of Rub 73.4bn, giving Net Debt of Rub 77.1bn. In addition,
Lenta had Rub 89.1bn of undrawn short- and long-term facilities.
New long-term loan facilities with lower fixed rates were placed early in
the first quarter of 2019 and shortly after the closure of the second
quarter. These facilities enabled the Company to secure a lower cost of debt
with sufficient cash on hand to cover all of Lenta's refinancing needs in
2019 and part of 2020. All of Lenta's debt is denominated in Russian rubles
and unsecured. A total of 69.6% of debt is long-term, of which 21.2% is due
within one year.
As of 31 December 2019, Net Debt to EBITDA stood at 2.3x, Lease Adjusted Net
Debt to EBITDAR[10] at 3.2x and EBITDA to Net Interest at 3.7x. As of 31
December 2018, Net Debt to EBITDA stood at 2.6x, Lease Adjusted Net Debt to
EBITDAR at 3.4x and EBITDA to Net Interest was at 3.9x.
Impact of IFRS 16
In 2019 Lenta applied IFRS 16, which changes the accounting principles for
operating leases, using the modified retrospective approach under which the
prior year figures in the financial statement were not restated.
Under IFRS 16, Lenta's gross profit increased by Rub 359m due to a reduced
supply-chain cost by an amount related to an operating lease of distribution
centers. Gross profit margin stood flat at 22.0% vs. compared to figure
under IAS 17.
SG&A expenses decreased by Rub 1.5bn mainly due to the exclusion of lease
expenses of Rub 5.2bn under the new standard. At the same time, the Company
recognized additional depreciation of around Rub 3.7bn. Operating profit
before impairment amounted to Rub 21.1bn under IFRS 16 vs. Rub 19.3bn under
IAS 17. Adjusted for impairment, the Company recorded operating profit of
Rub 9.2bn under the new standard vs. an operating profit of Rub 7.4bn under
IAS 17.
Interest expenses under IFRS 16 increased by Rub 2.8bn, related to interest
expenses on lease liabilities, while income-tax expense increased by Rub
173m due to additional depreciation expenses. As a result, Net Loss under
the new standard reached Rub 2.8bn vs. Rub 2.1bn under IAS 17.
The net changes in cash position has not changed under IFRS 16 vs. IAS 17,
while the relevant reclassifications were made within the cash-flow
statement.
Guidance
Lenta expects its selling space to increase by 3% in 2020. This figure
reflects the Company's decision to focus on improvements in store
performance and operational efficiency. Nonetheless, Lenta will continue
looking for attractive growth opportunities and expansion in existing and
new formats, as well as further exploration of on-line market.
In 2020 Lenta will continue working to optimize SG&A expenses. The Company
expects that the implementation of priorities set for this year will result
in the EBITDA margin in 2020 above that of 2019.
Lenta plans to invest 4% of its sales in capital expenditures in 2020. The
Company will have overall lower investments in organic expansion and
supply-chain infrastructure when compared to 2019. Meanwhile Lenta will
increase spending on IT, digital marketing and other projects aimed to
upgrade and enhance the customer's experience in its stores as well as drive
operational efficiency.
The current plans for expansion and capital expenditures, as well as further
efforts to optimize operating cash flow, will result in positive free
cash-flow generation by the Company in 2020.
The full set of accounts for Lenta PLC. for financial years of 2011-2019 are
available at www.lentainvestor.com [1]
About Lenta
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 249 hypermarkets in 88 cities across Russia and
131 supermarkets in Moscow, St. Petersburg, and the Siberia, Ural and
Central regions, with a total of approximately 1,489,497 sq.m. of selling
space. The average Lenta hypermarket has selling space of approximately
5,500 sq.m. The average Lenta supermarket has selling space of approximately
840 sq.m. The Company operates 12 distribution centers.
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 48,391 people as of 31
December 2019[11].
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 Severgroup, which is 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 [2].
? For further information, please visit www.lentainvestor.com [1], or
contact:
?
? Lenta Russian Media:
? Mariya Filippova
NW Advisors
PR&GR Director
Victoria Afonina
? Tel: +7 812 380-61-31 ext.:
1892
?el:+7 495 795 06 23
? E-mail:
maria.filippova@lenta.com
E-mail: lenta@nwadvisors.com
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", and 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
at the date of this announcement. 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.
?
=---------------------------------------------------------------------------
[1] Net Loss equates to "(Loss)/Profit for the period" in the attached IFRS
Financial Statements
[2] Lenta's stores are included in the LFL store base starting 12 months
after the end of the month they are opened
[3] Cardholders who made at least 2 purchases at Lenta during the 12 months
to 31 December 2019 are considered active
[4] According to Lenta's methodology for calculating the number of cities of
presence, since 1 May 2015 all cities located in Moscow city limits and the
Moscow region are shown as Moscow, and all cities located in the Leningrad
region and St. Petersburg are shown as St. Petersburg.
[5] Adjusted SG&A is SG&A before rent paid on land, equipment and premises
leases, depreciation
[6] EBITDAR is EBITDA before rent paid on land, equipment and premises
leases
[7] In 2019 Severgroup LLC acquired 34.45% and 7.47% of Lenta's issued and
outstanding voting shares from TPG and EBRD respectively. As a result,
Severgroup launched a cash offer on 30 April 2019 to acquire all of the
issued shares and GDR's of Lenta (Mandatory Tender Offer);
[8] Adjusted SG&A is SG&A before rent paid on land, equipment and premises
leases, and depreciation
[9] EBITDAR is EBITDA before rent paid on land, and equipment and premises
leases
[10] Lease adjusted Net Debt calculated as Net Debt plus operating leases
multiplied by capitalization rate of 8.0x in accordance with the approach of
credit rating agencies.
[11] FTE (full-time equivalent). Average FTE for FY 2019 was 51,908
employees
ISIN: US52634T2006, US52634T1016
Category Code: ACS
TIDM: LNTA;LNTR
LEI Code: 213800OMCE8QATH73N15
OAM Categories: 1.1. Annual financial and audit reports
Sequence No.: 48660
EQS News ID: 982787
End of Announcement EQS News Service
1: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=7b02fd0089c43ad819982a795a635ba5&application_id=982787&site_id=vwd&application_name=news
2: https://link.cockpit.eqs.com/cgi-bin/fncls.ssp?fn=redirect&url=c61cfc5a7efef6da6692e51b2e16a515&application_id=982787&site_id=vwd&application_name=news
(END) Dow Jones Newswires
February 25, 2020 02:00 ET (07:00 GMT)
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2024 to Jul 2024
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2023 to Jul 2024
