TIDMLNTR TIDMLNTA

RNS Number : 3663G

Lenta International PJSC

26 July 2021

Press Release | St. Petersburg | 26 July 2021

Lenta reports Online Sales growth of +300%, an 8.0% EBITDA Margin, and the launch of its new Mini store format in 1H 2021

1H & Q2 2021 Operational and Financial Highlights

   --   Retail Sales increased by 0.7% y-o-y to RUB 215 billion in 1H 2021. 

-- LFL Sales declined by 0.7% in 1H, while LFL Average Ticket grew by 1.4% and customer Traffic declined by 2.1% .

   --   EBITDA Margin in 1H 2021 was 8.0% and EBITDA was RUB 17.5 billion. 

-- During Q2, Lenta announced that it would acquire 161 supermarkets from Billa Russia in a transaction that will make it the #2 supermarket operator in Moscow. FAS has approved the deal, which is expected to close in August.

-- In June, the company signed a deal to acquire Semya's 75 multi-format retail stores in the Perm region. Subject to FAS approval the deal is expected to close in August.

-- Online Sales grew by 322% y-o-y to RUB 7.9 billion with Online Orders up 426% y-o-y to 4.4 million in 1H 2021.

-- In 1H 2021, Lenta began opening its new Mini format with 12 new stores opened in total at the end of the period. Additionally, the company opened 3 new hypermarkets and 1 new supermarket. In total, the new store openings created an increase of 3.2% in new selling space.

   --   The Net Debt to EBITDA (LTM) ratio stood at 1.7x as of 30 June 2021. 

St. Petersburg, Russia, 26 July 2021: Lenta IPJSC (MOEX & LSE: LNTA), one of the largest multi-format retail chains in Russia, today announces its operational results and auditor reviewed IFRS financial results for the first six 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:

"In the second quarter, following our Capital Markets Day at the end of March, we began executing on our new strategic plan to pursue growth opportunities through the opening of new formats, strategic acquisitions, and bringing our online offering to new customers.

For example, in Q2, we opened 11 Lenta Mini stores. This new format is a very interesting and exciting initiative. The early results are promising, and we continue to make improvements with every new store opening. Also, during the second quarter we announced two important acquisitions, Billa Russia and Semya. These deals will strengthen our competitive position in two key markets, Moscow and Perm, and accelerate our transition into a large multi-format retailer. During the first six months of the year, our Online channel continued to produce impressive results with year-over-year growth rates exceeding 300%.

With respect to our core formats, hypermarkets and supermarkets, the results of the first six months of 2021 are better than we might have expected given the fact that the results of the same period of 2020 were driven by an unprecedented increase in consumer demand as a result of the COVID-19 lockdown here in Russia.

Finally, during the first half of 2021, we made changes to strengthen our Management Team mainly through internal promotion of executives who not only have a depth of experience but, just as importantly, are very motivated to do what will be required over the next five years to transform Lenta into a champion of Russian food retail. We may have a long road ahead of us, but I am very encouraged by the progress we have achieved during these first few months."

 
   Quarterly - LFL RESULTS                            Q2             Q2            Q2 
                                                     Sales     Average Ticket   Traffic 
 
                        Total Retail                 -2.6%         -7.9%          5.8% 
                        Hypermarkets                 -2.3%         -7.3%          5.4% 
                        Supermarkets                 -5.7%         -12.4%         7.7% 
 
   2nd Quarter - OPERATING RESULTS (Year-over-Year) 
                                         Q2 2021     Q2 2020           Change   % Change 
 
 Total Sales (RUB millions)              110,776     110,971            (195)      -0.2% 
   Retail Sales                          109,027     109,094             (67)      -0.1% 
       Hypermarkets                       99,473      99,643            (169)      -0.2% 
       Supermarkets (2)                    9,554       9,452              102       1.1% 
   Wholesale                               1,749       1,877            (128)      -6.8% 
 
 Average Ticket (RUB)                      1,085       1,195            (110)      -9.2% 
   Hypermarkets                            1,211       1,316            (105)      -8.0% 
   Supermarkets(2)                           520         607             (87)     -14.3% 
 
 Number of Tickets (millions)                101          91                9      10.1% 
   Hypermarkets                               82          76                6       8.5% 
   Supermarkets(2)                            18          16                3      17.9% 
 
 Total Retail Stores (eop) (3)               406         379               27 
   Hypermarkets                              255         248                7 
       Openings                                2           0                2 
       Closing                                 1           1                0 
   Supermarkets(2)                           151         131               20 
       Openings                               11           3                8 
       Closing                                 0           3              (3) 
 
 New Selling Space (sqm, eop)              7,078     (7,162)           14,240 
   Hypermarkets                            2,829     (7,641)           10,470 
   Supermarkets(2)                         4,249         479            3,770 
 
 Total Selling Space (sqm, eop)        1,529,175   1,482,067           47,108       3.2% 
   Hypermarkets                        1,406,516   1,370,940           35,576       2.6% 
   Supermarkets(3)                       122,659     111,127           11,532      10.4% 
 
 Total Online Sales (RUB, millions)        4,079       1,377            2,702     196.2% 
   Online Partners                         2,227       1,327              899 
   Lenta Online                            1,668          49            1,619 
   Click & Collect                           184           1              183 
 Total Online Orders (thousands)           2,267         618            1,649     266.6% 
   Online Partners                         1,253         574              679 
   Lenta Online                              939          44              895 
   Click & Collect                            75           0               75 
 Cities of Online Operation 
   Online Partners                            86          51               35 
   Lenta Online                               84           3               81 
   Click & Collect                            87           8               79 
 
   2.    Supermarkets include 12 new Lenta Mini stores opened in 1H 2021 
   3.    "eop" refers to "end of period" 
 
   6 Months - LFL RESULTS(3)                                      1H'21         1H'21         1H'21 
                                                                  Sales     Average Ticket   Traffic 
 
                                    Total Retail                  -0.7%          1.4%         -2.1% 
                                    Hypermarkets                  -0.3%          1.4%         -1.6% 
                                    Supermarkets                  -5.2%         -0.9%         -4.3% 
 
   6 Months - OPERATING RESULTS (Year-To-Date) 
                                                        1H'21       1H'20       Change       % Change 
 
 Total Sales (RUB millions)                           218,088     216,975            1,113       0.5% 
   Retail Sales                                       214,908     213,447            1,461       0.7% 
       Hypermarkets                                   195,664     194,196            1,468       0.8% 
       Supermarkets (2)                                19,245      19,251              (7)       0.0% 
   Wholesale                                            3,179       3,528            (349)      -9.9% 
 
 Average Ticket (RUB)                                   1,105       1,103                2       0.1% 
   Hypermarkets                                         1,229       1,221                9       0.7% 
   Supermarkets (2)                                       544         560             (16)      -2.8% 
 
 Number of Tickets (millions)                             195         193                1       0.5% 
   Hypermarkets                                           159         159                0       0.0% 
   Supermarkets (2)                                        35          34                1       2.9% 
 
 Total Retail Stores (eop)                                406         379               27 
   Hypermarkets                                           255         248                7 
       Openings                                             3           0                3 
       Closing                                              2           1                1 
   Supermarkets (2)                                       151         131               20 
       Openings                                            13           3               10 
       Closing                                              1           3              (2) 
 
 New Selling Space (sqm, 
  eop)                                                 10,577     (7,162)           17,739 
   Hypermarkets                                         5,728     (7,641)           13,369 
   Supermarkets (2)                                     4,849         479            4,370 
 
 Total Selling Space (sqm, 
  eop)                                              1,529,175   1,482,067           47,108       3.2% 
   Hypermarkets                                     1,406,516   1,370,940           35,576       2.6% 
   Supermarkets (2)                                   122,659     111,127           11,532      10.4% 
 
 Total Online Sales (RUB, 
  millions)                                             7,892       1,870            6,023     322.1% 
    Online Partners                                     4,486       1,816            2,670 
    Lenta Online                                        3,125          53            3,072 
    Click & Collect                                       281           1              281 
 
 Total Online Orders (thousands)                        4,419         840            3,579     426.1% 
   Online Partners                                      2,475         789            1,686 
   Lenta Online                                         1,821          51            1,770 
   Click & Collect                                        123           0              123 
 
 Cities of Online Operation 
   Online Partners                                         86          51               35 
   Lenta Online                                            84           3               81 
   Click & Collect                                         87           8               79 
 
 
   2.    Supermarkets include 12 Lenta Mini stores opened in 1H 2021 
   3.    LFL Results do not include 29-Feb-2020 
   4.    "eop" refers to "end of period" 
 
   Q2 2021 Monthly - OPERATING RESULTS 
                                        April      YoY         May      YoY        June      YoY 
 
 Total Sales (RUB millions)            36,631     1.8%      37,409    -2.0%      36,736    -0.2% 
   Retail Sales                        36,026     1.6%      36,945    -1.5%      36,057    -0.3% 
       Hypermarkets                    32,739     1.6%      33,739    -1.6%      32,995    -0.4% 
       Supermarkets (2)                 3,286     2.4%       3,206     0.3%       3,061     0.5% 
   Wholesale                              606    11.4%         464   -31.0%         679     2.7% 
 
 Average Ticket (RUB)                   1,088   -14.4%       1,088    -9.5%       1,078    -4.0% 
   Hypermarkets                         1,214   -13.1%       1,212    -8.1%       1,207    -3.0% 
   Supermarkets(2)                        534   -19.8%         524   -15.2%         502    -8.0% 
 
 Number of Tickets (millions)              33    18.7%          34     8.9%          33     3.9% 
   Hypermarkets                            27    16.8%          28     7.0%          27     2.7% 
   Supermarkets(2)                          6    27.7%           6    18.2%           6     9.2% 
 
 Total Retail Stores (eop)                397                  400                  406 
   Hypermarkets                           255                  254                  255 
       Openings                             1                    0                    1 
       Closing                              0                    1                    0 
   Supermarkets(2)                        142                  146                  151 
       Openings                             2                    4                    5 
       Closing                              0                    0                    0 
 
 New Selling Space (sqm, 
  eop)                                  5,911              (5,083)                6,250 
   Hypermarkets                         5,212              (6,583)                4,200 
   Supermarkets(2)                        699                1,500                2,050 
 
 Total Selling Space (sqm, 
  eop)                              1,528,008     3.2%   1,522,925     2.9%   1,529,175     3.2% 
   Hypermarkets                     1,408,899     2.8%   1,402,316     2.3%   1,406,516     2.6% 
   Supermarkets(2)                    119,109     8.3%     120,609    10.5%     122,659    10.4% 
 
 Total Online Sales (RUB, 
  millions)                             1,409   197.4%       1,359   168.3%       1,311   230.5% 
   Online Partners                        790                  738                  698 
   Lenta Online                           567                  563                  539 
   Click & Collect                         52                   59                   74 
 
 Total Online Orders (thousands)          793     329%         754     226%         719     257% 
   Online Partners                        447                  409                  397 
   Lenta Online                           322                  320                  297 
   Click & Collect                         25                   25                   25 
 
 Cities of Online Operation 
   Online Partners                         87                   86                   86 
   Lenta Online                            83                   83                   84 
   Click & Collect                         88                   87                   87 
 
 
   2.    Supermarkets include 12 new Lenta Mini stores opened in 1H 2021 
   3.    "eop" refers to "end of period" 

Operating Results Commentary

Lenta's Retail Sales in 1H 2021 increased by 0.7% compared to 1H 2020. This increase was supported by a 0.1% growth in Average Ticket size and a 0.5% increase in Number of Tickets. Retails Sales were boosted by the company's continued online development, loyalty program activations and new store operations.

Both Hypermarket and Supermarket formats showed flat Retail Sales performance in the first half of 2021, compared to the first half of 2020 when there was unprecedented surge-buying behavior and stocking up. At the end of the second quarter, customer behavior began reverting back to pre-COVID-19 norms with regard to Ticket size and Traffic volume.

The Hypermarket format delivered 0.8% growth in Retail Sales in 1H 2021, as a result of a 0.7% increase in Average Ticket size and a 0.0% change in Number of Tickets. The Supermarket format's Retail Sales remained flat in 1H 2021, as a result of a 2.8% decrease in Average Ticket and a 2.9% increase in Number of Tickets.

During Q2, LFL Retail Sales declined by 2.6% driven by a LFL Average Ticket decline of 7.9%, offset by a LFL Customer Traffic increase of 5.8%. These results reflect the fact that during Q2 2020, LFL Average Ticket was extraordinarily high, and LFL Customer Traffic was lower than normal. The same dynamic can be seen in Hypermarket and Supermarket LFL performance in Q2.

In 1H 2021, Lenta's online channel continued to be an engine of growth for the company. Total Online Sales during the period amounted to RUB 7.9 billion, an increase of 322% year-over-year, while Total Online Orders were up 426% and amounted to 4.4 million.

During the second quarter, Online Sales represented 3.7% of Lenta's Total Sales. The company's own Lenta Online express delivery service grew from 38% of Online Sales in Q1 to 41% in Q2, while its Click & Collect service grew from 2.6% in Q1 to 4.5% in Q2. The company already operates its own Click & Collect platform in all of the cities where it has physical stores.

Lenta opened two new hypermarkets, one new supermarket, and 11 new Lenta Mini stores during Q2 2021. Lenta also closed one hypermarket in Q2 2021, bringing the total number of Lenta stores at the quarter end to 255 hypermarkets, 139 supermarkets and 12 Lenta Mini stores. Lenta currently operates Total Selling Space of 1.5 million square meters, which is a year-over-year increase of 3.2%.

 
 1H 2021 Key Financial Results            IFRS 16                             IAS 17 
 RUB million                  1H 2021    1H 2020     Change        1H 2021     1H 2020    Change 
 
 Total Sales                  218,088    216,975       0.5%        218,088     216,975      0.5% 
 
 Gross Profit                  49,807     50,703      -1.8%         49,722      50,541     -1.6% 
 Gross Margin (%)               22.8%      23.4%    -53 bps          22.8%       23.3%   -49 bps 
 
 SG&A                        (41,325)   (37,464)      10.3%       (42,103)    (38,173)     10.3% 
 SG&A as % of Total Sales       18.9%      17.3%    168 bps          19.3%       17.6%   171 bps 
 
 EBITDAR                       21,100     25,285     -16.6%         20,841      25,118    -17.0% 
                                                       -198                                 -202 
 EBITDAR Margin                  9.7%      11.7%        bps           9.6%       11.6%       bps 
 Rent as % of Total Sales        0.2%       0.2%       1 bp           1.5%        1.4%    14 bps 
 
 EBITDA                        20,647     24,812     -16.8%         17,472      22,072    -20.8% 
                                                       -197                                 -216 
 EBITDA Margin                   9.5%      11.4%        bps           8.0%       10.2%       bps 
 
 Operating Profit before 
  impairment                   10,893     15,573     -30.1%          9,856      14,696    -32.9% 
 Operating Profit Margin                             -218                                   -225 
  before impairment             4.99%      7.18%      bps            4.52%       6.77%       bps 
 (Impairment) / reversal 
  of impairment                   (9)         42    -121.4%            (9)          42   -121.4% 
 
 Operating Profit              10,884     15,614     -30.3%          9,847      14,738    -33.2% 
                                                                                            -228 
 Operating Profit Margin        4.99%      7.20%    -221bps          4.52%       6.79%       bps 
 Net Interest Expense         (3,711)    (4,720)     -21.4%        (2,331)     (3,371)    -30.9% 
 (Net FX loss)                  (589)      (272)     116.5%          (610)       (187)    226.2% 
 Profit Before Income 
  Tax                           6,584     10,623     -38.0%          6,906      11,179    -38.2% 
 
 Net Income                     5,105      8,911     -42.7%          5,363       9,357    -42.7% 
                                                       -177                                 -185 
 Net Income Margin               2.3%       4.1%        bps           2.5%        4.3%       bps 
 
 

Total Sales rose by 0.5% year-over-year in 1H 2021, supported by Retail Sales growth, online development, growing participation in Lenta's revamped loyalty program and a noticeable trend of trading up.

In 1H 2021, Gross Profit (IAS 17) decreased by 1.6% year-over-year and Gross Margin decreased by 49 bps to 22.8%. Gross Profit was impacted by increased promotional activity in 1H 2021 compared to the same period of 2020, which was impacted by significant extra customer demand at Lenta stores due to the abnormal dynamics caused by the COVID-19 lockdown. Lenta benefited disproportionately more than other food retailers during the 1H 2020 period due to the fact that it also carried non-food products and during the lockdown non-food retailers were closed.

EBITDA (IAS 17) during 1H 2021 decreased by 20.8% to RUB 17.5 billion, mainly due to the surge-buying behavior seen during 1H 2020 in connection with the COVID-19 lockdown, and investment into Lenta's growth strategy. Nonetheless, Lenta's EBITDA margin remained at a solid 8.0% in 1H 2021, in line with the company's targets.

 
                                                  IFRS 16                  IAS 17 
   Selling, General, and Administrative 
   (SG&A) 
 RUB million                       1H 2021   1H 2020    Change   1H 2021   1H 2020    Change 
 
 Payroll and related taxes          16,284    14,907      9.2%    16,284    14,907      9.2% 
 as a % of Total Sales                7.5%      6.9%    60 bps      7.5%      6.9%    60 bps 
 Depreciation and Amortization       9,754     9,240      5.6%     7,616     7,376      3.3% 
 as a % of Total Sales                4.5%      4.3%    21 bps      3.5%      3.4%     9 bps 
 Lease Expenses                        453       473     -4.2%     3,369     3,046     10.6% 
 as a % of Total Sales                0.2%      0.2%     -1 bp      1.5%      1.4%    14 bps 
 Utilities                           2,647     2,403     10.2%     2,647     2,403     10.2% 
 as a % of Total Sales                1.2%      1.1%    11 bps      1.2%      1.1%    11 bps 
 Store Operations                    4,690     4,194     11.8%     4,690     4,194     11.8% 
 as a % of Total Sales                2.2%      1.9%    22 bps      2.2%      1.9%    22 bps 
 Professional Fees                   2,100     2,020      4.0%     2,100     2,020      4.0% 
 as a % of Total Sales                1.0%      0.9%     3 bps      1.0%      0.9%     3 bps 
 Advertising                         2,381     2,117     12.5%     2,381     2,117     12.5% 
 as a % of Total Sales                1.1%      1.0%    12 bps      1.1%      1.0%    12 bps 
 Other                               3,016     2,110     42.9%     3,016     2,110     42.9% 
 as a % of Total Sales                1.4%      1.0%    41 bps      1.4%      1.0%    41 bps 
 Total SG&A                         41,325    37,464     10.3%    42,103    38,173     10.3% 
                                                           168                           171 
 as a % of Total Sales               18.9%     17.3%       bps     19.3%     17.6%       bps 
 SG&A excluding D&A                 31,571    28,224     11.9%    34,487    30,797     12.0% 
                                                           147                           162 
 as a % of Total Sales               14.5%     13.0%       bps     15.8%     14.2%       bps 
 

Total Selling, General, and Administrative expenses (IAS 17) increased by 10.3% year-over year to RUB 42.1 billion and amounted to 19.3% of Total Sales. SG&A expenses were impacted by

higher personnel costs from new store openings and investments into Lenta Online, as well as COVID-19 safety related expenditures.

Payroll and related taxes rose by 9.2% year-on-year in connection with salary indexation, which took place in the second half of 2020, new store openings, building capabilities to implement Lenta's growth strategy and Lenta Online. Additionally, the company incurred certain one-off material expenses related to the departure of several senior executives.

Store Operations increased by 11.8% year-over-year, mainly driven by costs associated with new store openings, higher cleaning costs due to severe winter weather in the first half of 2021, increased security costs, as well as store repairs and maintenance.

Meanwhile, advertising costs during 1H 2021 were up 12.5% year-over-year, due to online channel marketing expenses and higher customer acquisition costs.

 
 1H 2021 Cash Flow Statement                      IFRS 16                     IAS 17 
 RUB million                       1H 2021     1H 2020   Change     1H 2021      1H 2020   Change 
 
 Profit before income 
  tax                                6,584      10,623   -38.0%       6,906       11,179   -38.2% 
 Net adjustments for 
  loss on disposal of 
  assets, impairment, 
  depreciation & amortization, 
  and other                         14,216      14,376    -1.1%      10,740       11,062    -2.9% 
 Movements in Working 
  Capital                         (10,353)    (11,892)   -12.9%    (10,216)     (11,761)   -13.1% 
 Cash generated from 
  operating activities              10,447      13,107   -20.3%       7,430       10,480   -29.1% 
 Net Interest & Income 
  Taxes Paid                       (4,704)     (6,885)   -31.7%     (3,323)      (5,524)   -39.8% 
 Net cash from Operating 
  Activities                         5,743       6,222    -7.7%       4,107        4,956   -17.1% 
 Net cash used in Investing 
  Activities                       (4,851)     (3,501)    38.6%     (4,868)      (3,518)    38.4% 
 Net cash generated from/(used 
  in) financing activities           7,774    (56,842)        -       9,427     (55,559)        - 
 Effect of exchange rates 
  on cash and cash equivalents       (615)          39        -       (615)           39        - 
 Net Increase / (Decrease) 
  in Cash & Cash Equivalents         8,051    (54,082)                8,051     (54,082) 
 

CapEx in 1H 2021 amounted to RUB 5.0 billion. This increase of nearly 40% year-over-year is due to the fact that in 1H 2020, Lenta put CapEx on hold due to uncertainty caused by COVID-19. The investments in 1H 2021 were focused on new hypermarket, supermarket, and Lenta Mini openings, as well as distribution center construction and IT investments.

Net cash generated from financing activities in 1H 2021 amounted to RUB 9.4 billion, compared to RUB 55.6 billion used in financing activities in 1H 2020.

Free Cash Flow for the 1H 2021 period amounted to RUB a negative 0.8 billion, which was RUB 2.2 billion lower than Free Cash Flow in 1H 2020, mainly due to abnormally high EBITDA in 1H 2020 due to the COVID-19 shutdown dynamics mentioned above.

 
 1H 2021 Debt Position and           IFRS 16                 IAS 17 
  Leverage 
 RUB million                  30-Jun-21   31-Dec-20   30-Jun-21   31-Dec-20 
 
 Gross Debt                     123,603     113,394      88,370      78,952 
 Long-term Debt                  57,929      45,941      57,929      45,941 
 Short-term Debt                 30,441      33,011      30,441      33,011 
 Lease Liabilities (IFRS 
  16)                            35,233      34,442           -           - 
 Cash & Cash Equivalents         29,861      21,809      29,861      21,809 
 Net Debt                        93,742      91,585      58,509      57,143 
 Net Debt / EBITDA (LTM) 
  ratio                                                    1.7x        1.5x 
 

As of June 30, 2021, Lenta's Gross Debt (IAS 17) had increased to RUB 88.4 billion. The company's Net Debt to EBITDA (LTM) ratio stood at 1.7x at the end of 1H 2021, compared to 1.9x at the end of 1H 2020 and 1.5x at year-end 2020.

FY 2021 Guidance

In line with the company's performance in 1H 2021 and in light of the announced M&A transactions, Lenta Management is updating its previously communicated guidance for FY 2021 to the following:

   --    Selling Space Growth: at least 200k sqm (including acquisitions) 
   --    EBITDA Margin: above 8% (no change) 
   --    CapEx: Up to 5% of Sales (not including acquisitions) 

1H 2021 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, 26 July 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:

Russia +7 495 283 98 58

United Kingdom +44 203 984 9844

United States +1 718 866 4614

Germany +49 30 25 555 323

Sweden +46 10 551 30 20

Participant code: 878744 ("Lenta 1H Earnings Call")

Audio webcast URL: http://webcast.closir.com/lenta2Qcall

Telephone numbers for additional countries can be found at the webcast URL. 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 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 June 30, 2021, operated 255 hypermarkets and 151 supermarkets in 88 cities across European 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, the average Lenta supermarket has 800 square meters, and the Mini Lenta format is 500 meters on average. The company operates 11 distribution centers to supply all of its stores. 2020 Revenues were RUB 445 billion (approximately USD 6 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.

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

IR FLFEDDDIEFIL

(END) Dow Jones Newswires

July 26, 2021 03:00 ET (07:00 GMT)

Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2024 to Jul 2024 Click Here for more Lenta IPJSC Charts.
Lenta IPJSC (LSE:LNTA)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Lenta IPJSC Charts.