TIDMLNTR TIDMLNTA
RNS Number : 1022Q
Lenta International PJSC
23 February 2021
Press Release | St. Petersburg | 24 February 2021
Lenta Reports Record EBITDA and Net Income in FY 2020
St. Petersburg, Russia, 24 February 2021: Lenta IPJSC (MOEX
& LSE: LNTA), one of the largest retail chains in Russia, today
published its audited consolidated IFRS accounts for the full year
ended 31 December 2020.
A conference call with the Chief Financial Officer to discuss
these results is scheduled for later today. Please see the dial-in
details at the end of this press release.
FY 2020 Key Financial Highlights(1)
-- Total Sales increased by 6.7% y-o-y to RUB 445.5 billion
-- Retail Sales increased by 7.3% y-o-y to RUB 437.5 billion,
driven by the strong performance of both Lenta's core Hypermarket
and Supermarket formats
-- Gross Profit was RUB 101.5 billion, an increase of 10.7%,
which resulted in a Gross Margin of 22.8%, an improvement of 83 bps
y-o-y
-- SG&A expenses decreased as a percentage of sales to 18.3%, an improvement of 3 bps y-o-y
-- EBITDA reached an all-time high of RUB 39.3 billion, a 15.8%
increase y-o-y, and EBITDA Margin rose by 69 bps to 8.8%
-- Net Income grew to RUB 17.4 billion, compared to a Net Loss
of RUB 2.1 billion in the previous year, and Net Income Margin
increased to 3.9%
-- CapEx stood at RUB 7.6 billion, down 46% y-o-y
-- Net Cash from Operating Activities was RUB 27.3 billion, down 12.3% y-o-y
-- Net Debt to EBITDA ratio decreased to 1.5x from 2.3x in FY 2019
FY 2020 Key Financial Results IFRS 16 IAS 17
RUB million FY 2020 FY 2019 Change FY 2020 FY 2019 Change
Total Sales 445,544 417,500 6.7% 445,544 417,500 6.7%
Retail Sales 437,493 407,761 7.3% 437,493 407,761 7.3%
Hypermarkets 399,262 372,787 7.1% 399,262 372,787 7.1%
Supermarkets 38,231 34,974 9.3% 38,231 34,974 9.3%
Wholesale 8,051 9,739 -17.3% 8,051 9,739 -17.3%
Gross Profit 101,816 92,017 10.6% 101,494 91,659 10.7%
Gross Margin (%) 22.9% 22.0% 81 bps 22. 8% 22.0% 83 bps
SG&A (80,114) (75,084) 6.7% (81,538) (76,535) 6.5%
SG&A as % of Total Sales 18.0% 18.0% 0 bps 18.3% 18.3% -3 bps
13.
EBITDAR 45,950 40,665 13.0% 45,586 40,302 1 %
EBITDAR Margin 10.3% 9.7% 57 bps 10.2% 9.7% 58 bps
Rent as % of Total Sales -0.2% -0.3% 4 bps -1.4% -1.5% 11 bps
EBITDA 44,919 39,506 13.7% 39,315 33,959 15.8%
EBITDA Margin 10.1% 9.5% 62 bps 8.8% 8.1% 69 bps
Operating Profit before
impairment 26,379 21,066 25.2% 24,591 19,251 27.7%
Operating Profit Margin
before impairment 5.9% 5.1% 87 bps 5.5% 4.6% 91 bps
Reversal of impairment
( i mpairment) 2,907 (11,850) 3,005 (11,850)
Operating Profit 29,286 9,216 217.8% 27,595 7,401 272.9%
Operating Profit Margin 6.6% 2.2% 437 bps 6.2% 1.8% 442 bps
Net Interest Expense (8,902) (12,040) -26.1% (6,217) (9,260) -32.9%
Net FX gain / (Loss) (386) 221 (247) 118
Profit / (Loss) Before
Income Tax 19,998 (2,603) 21,131 (1,740)
Net Income / (Loss) 16,541 (2,794) 17,447 (2,104)
Net Income Margin 3.7% -0.7% 438 bps 3.9% -0.5% 442 bps
Total Sales demonstrated robust growth of 6.7% and amounted to
RUB 445.5 billion, compared to RUB 417.5 billion in 2019,
predominantly driven by a higher Average Ticket, despite lower
Traffic throughout the year.
Retail Sales grew by 7.3% to RUB 437.5 billion (2019: RUB 407.8
billion), supported by changing customer behaviors due to the
COVID-19 pandemic, successful promotional activities, enhancements
to Lenta's loyalty program, and a noticeable trend of trading up
throughout much of the year.
Both Lenta's Hypermarket and Supermarket formats continued to
show good performance in 2020, amid the COVID-19 pandemic, further
proving the resilience of Lenta's Hypermarket format.
Retail sales at hypermarkets were up 7.1% year-over-year thanks
to growth in like-for-like Average Ticket despite a decline in the
like-for-like Traffic. During 2020, our Supermarket format showed
Retail Sales growth of 9.3% year-over-year.
Gross Profit (IAS 17) grew to RUB 101.5 billion, up 10.7%
year-on-year, and Gross Profit Margin improved by 83 bps to 22.78%
from 21.95% in 2019 as a result of an improvement in shrinkage,
higher retail margins, and improved trade terms with suppliers.
Additional positive impact came from a 17.3% sales decline in our
low-margin wholesale business throughout the year, which partially
offset higher stock provisions.
Lenta remained focused on maintaining strict cost management
amidst the volatile environment of 2020, nonetheless COVID-19
pandemic-related costs, in the amount of RUB 1.5 billion, put extra
pressure on profitability.
In 2020, EBITDA (IAS 17) in absolute terms reached an all-time
high, while the EBITDA margin also showed significant improvement.
Absolute EBITDA rose by 15.8% year-over-year and amounted to RUB
39.3 billion, while the EBITDA margin rose to 8.8%, up from 8.1% in
the previous year. This strong performance in EBITDA was primarily
driven by retail sales growth coupled with a higher gross
margin.
Net Interest Expense (IAS 17) decreased by 32.9% year-over-year
to RUB 6.2 billion in FY 2020.
Lenta delivered Net Income (IAS 17) of RUB 17.4 billion for the
year, compared to a net loss of RUB 2.1 billion in 2019, due mainly
to strong retail sales. As a result, the Net Income Margin was 3.9%
in FY 2020.
Selling, general and administrative IFRS 16 IAS 17
(SG&A)
RUB million FY 2020 FY 2019 Change FY 2020 FY 2019 Change
Payroll and related taxes 31,265 28,119 11.2% 31,265 28,119 11.2%
as a % of Total Sales 7.0% 6.7% 28 bps 7.0% 6.7% 28 bps
Depreciation and Amortization 18,540 18,440 0.5% 14,724 14,708 0.1%
as a % of Total Sales 4.2% 4.4% -26 bps 3.3% 3.5% -22 bps
Store Operations(2) 14,084 13,580 3.7% 14,084 13,580 3.7%
as a % of Total Sales 3.2% 3.3% -9 bps 3.2% 3.3% -9 bps
Professional Fees 4,318 4,388 -1.6% 4,318 4,388 -1.6%
as a % of Total Sales 1.0% 1.1% -8 bps 1.0% 1.1% -8 bps
Leases 1,031 1,159 -11.0% 6,271 6,342 -1.1%
as a % of Total Sales 0.2% 0.3% -5 bps 1.4% 1.5% -11 bps
Advertising 5,749 5,177 11.0% 5,749 5,177 11.0%
as a % of Total Sales 1.3% 1.2% 5 bps 1.3% 1.2% 5 bps
Other 5,127 4,221 21.5% 5,127 4,221 21.5%
as a % of Total Sales 1.2% 1.0% 14 bps 1.2% 1.0% 14 bps
Total SG&A 80,114 75,084 6.7% 81,538 76,535 6.5%
as a % of Total Sales 18.0% 18.0% 18.3% 18.3% -3 bps
SG&A excluding D&A 61,574 56,644 8.7% 66,814 61,827 8.1%
as a % of Total Sales 13.8% 13.6% 25 bps 15.0% 14.8% 19 bps
Selling, General, and Administrative expenses (IAS 17) increased
by 6.5% year-over-year to RUB 81.5 billion, and amounted to 18.3%
of Total Sales, an improvement of 3 bps.
Payroll and related taxes rose by 11.2% year-over-year due to
COVID-19 pandemic-related intensity allowance costs, changes to our
senior management team, bonus compensation in connection with
certain milestones being reached, new store expansion, and the
further roll-out of Lentochka, which is one of our online
channels.
2. Store Operations includes utilities, cleaning, repair and
maintenance, and security services.
FY 2020 Cash Flow IFRS 16 IAS 17
Statement
RUB million FY 2020 FY 2019 Change FY 2020 FY 2019 Change
Profit before income
tax 19,998 (2,603) 21,131 (1,740)
Net adjustments for
loss on disposal of
assets, impairment,
depreciation and amortization,
and other 25,943 43,558 -40.4% 19,247 37,153 -48.2%
Movements in Working
Capital (2,138) 7,479 (2,071) 7,422
Cash generated from
operating activities 43,803 48,434 -9.6% 38,307 42,835 -10.6%
Net Interest & Income
Taxes Paid (13,763) (14,562) -5.5% (11,046) (11,767) -6.1%
Net cash from Operating
Activities 30,040 33,872 -11.3% 27,260 31,068 -12.3%
Net cash used in Investing
Activities (7,374) (13,964) -47.2% (7,409) (14,008) -47.1%
Net cash (used) in
/ generated from Financing
Activities (74,262) 19,692 (71,447) 22,540
Net Increase / (Decrease)
in Cash & Cash Equivalents (51,596) 39,600 (51,596) 39,600
Net Cash from Operating Activities (IAS 17) in FY 2020 amounted
to RUB 27.3 billion.
Capital expenditures in 2020 were 45.7% lower than in 2019 and
amounted to RUB 7.6 billion. The reduction mainly reflected
hypermarket openings and slow implementation of maintenance and
improvement projects, taking into account the COVID-19
situation.
FY 2020 Debt Position and IFRS 16 IAS 17
Leverage
RUB million 31-Dec-20 31-Dec-19 31-Dec-20 31-Dec-19
Gross Debt 113,394 182,701 78,952 150,541
Long-term Debt 45,941 82,110 45,941 82,110
Short-term Debt 33,011 68,431 33,011 68,431
Lease Liabilities (IFRS
16) 34,442 32,160
Cash & Cash Equivalents 21,809 73,405 21,809 73,405
Net Debt 91,585 109,296 57,143 77,136
Net Debt / EBITDA ratio 1.5x 2.3x
Lenta materially improved its leverage position over the course
of 2020, closing the year with Gross Debt of RUB 79.0 billion (IAS
17), compared to RUB 150.5 billion as of the end of 2019. Cash
& Cash Equivalents at the end of FY 2020 stood at RUB 21.8
billion due to proactive efforts to pay down debt obligations.
As of 31 December 2020, Lenta's Net Debt to EBITDA ratio stood
at 1.5x compared to 2.3x one year earlier (IAS 17).
FY 2021 Outlook
Lenta will provide detailed guidance for FY 2021 at the
company's Capital Markets Day on the 18(th) of March 2021.
FY 2020 IFRS Results Conference Call
Lenta will host an investor and analyst conference call at 17:00
Moscow time (14:00 London, 09:00 New York), on Wednesday, 24
February 2021. On the call will be Rud Pedersen (CFO) and Tim Post
(IRO).
To participate in the conference call, please use the following
dial-in details:
Conference ID: 1920893 ("Lenta FY 2020 IFRS Results Conference
Call")
Russian Federation: +7 495 646 9190 (local access)
8 10 800 2867 5011 (toll-free)
United Kingdom: +44 (0)330 336 9411 (local access)
0800 279 7204 (toll-free)
United States: +1 929-477-0402 (local access)
888-204-4368 (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:
Lenta Lenta
Mariya Filippova Timothy Post
Head of Public Relations and Government Investor Relations Officer
Affairs timothy.post@lenta.com
maria.filippova@lenta.com
EM (International Media Inquiries)
Lenta@em-comms.com
About Lenta
Lenta is the largest hypermarket chain in the Russian Federation
and the fourth largest food retailer. The Company was founded in
1993 in St. Petersburg and as of December 31, 2020 operated 254
hypermarkets and 139 supermarkets in 88 cities across Russia with
more than 1.5 million square meters of Selling Space. The average
Lenta hypermarket has approximately 5,500 square meters of selling
space, while the Lenta supermarket averages 800 square meters. The
company operates 13 distribution centers throughout Russia. Lenta
is listed on both the London Stock Exchange and Moscow Exchange,
trading under the ticker: 'LNTA'.
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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR BRGDDIXDDGBX
(END) Dow Jones Newswires
February 24, 2021 02:50 ET (07:50 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
