TIDMLNTR TIDMLNTA
RNS Number : 7701Z
Lenta International PJSC
27 January 2022
Press Release | St. Petersburg | 27 January 2022
LENTA REPORTS TOTAL SALES GROWTH OF 18.6% IN Q4 & 8.6% IN FY
2021
FY 2021 Highlights(1)
-- Total Sales increased by 8.6% y-o-y to RUB 483.6 billion
-- Retail Sales reached RUB 475.8 billion representing 8.8% y-o-y growth
-- LFL Sales increased by 2.4%, while LFL Average Ticket grew by 4.7%
-- Online Sales grew by 208% y-o-y to RUB 19.3 billion, with
Online Orders up 221% y-o-y to 10.4 million
-- 376 new stores were added on a gross basis, and 12 stores
were closed resulting in net store additions of 364 stores. The
total number of stores as of December 31, 2021 was 757 (including
254 hypermarkets and 503 small-format stores)
-- Net addition of selling space amounted to 236.4 k sqm,
bringing total selling space to 1,755 k sqm (representing 15.6%
y-o-y growth)
Q4 2021 Highlights(1)
-- Total Sales increased by 18.6% y-o-y to RUB 147.3 billion
-- Retail Sales reached RUB 144.8 billion representing 18.9% y-o-y growth
-- LFL Sales increased by 7.0%, while LFL Average Ticket grew by 10.4%
-- Online Sales grew by 128% y-o-y to RUB 7.0 billion with
Online Orders up 114% y-o-y to 3.6 million
-- Lenta accelerated the rollout of its new Mini format with 85 new stores opened
-- Addition of Small Formats selling space amounted to 34.4 k
sqm, bringing total Small Formats selling space to 353.7 k sqm
(representing 200.3% y-o-y growth)
-- Lenta announced the acquisition of the Utkonos business from LLC Severgroup
1. Including new stores added following the acquisition of
Billa's and Semya's businesses.
27 January 2022, St. Petersburg, Russia: Lenta IPJSC (LSE: LNTA,
MOEX: LNTA & LENT), one of the largest multi-format retail
chains in Russia, today announces its operational results for the
fourth quarter and the full year 2021.
Vladimir Sorokin, Chief Executive Officer :
"Lenta finished 2021 in a strong position, with full-year Total
Sales increasing by 8.6 % year-over-year to RUB 484 billion.
Meanwhile, the fourth quarter of 2021 was the best-performing
quarter of the year in terms of Sales, thanks to traditionally
strong seasonal shopping in December at our hypermarket stores,
expansion in small formats, and the continuing development of our
online business. This was made possible by the commendable efforts
of Lenta's employees, despite the continuing challenges caused by
the COVID-19 pandemic.
I'm also proud to report that we are making solid progress with
the Lenta Mini roll-out. As of the end of the year, we had 133
Lenta Mini locations and 85 of those stores were added in the
fourth quarter alone.
In addition to our robust operational performance in 2021, the
year also was marked by several significant milestones in Lenta's
development, setting the stage for the company's continued growth.
After announcing our new strategy in March, we quickly got to work
with multi-format organic expansion, digital business development,
and the strategic acquisitions of Billa, Semya, as well as
Utkonos.
Looking ahead to the remainder of 2022, we will focus on the
improved performance, enhanced efficiency of the core business,
accelerated roll-out of our small-format stores, and further
development of our own Online business, as well as the phased
integration of the Utkonos business to capture meaningful synergies
and unlock long-term value in our combined online business. Despite
the challenging macroeconomic situation due to rising inflation and
the ongoing COVID-19 pandemic, we stay committed to our mission to
help our customers live a better life by spending less."
4Q & FY OPERATING RESULTS , y-o-y
Sales
Q4'21 Q4'20 Change % Change FY'21 FY'20 Change % Change
================================= ======== ======== ======= ========= ======== ======== ======= =========
Total Sales(2) (RUB millions) 147,316 124,172 23,144 18.6% 483,641 445,544 38,097 8.6%
Retail Sales 144,813 121,786 23,027 18.9% 475,787 437,493 38,295 8.8%
Hypermarkets 121,662 111,599 10,063 9.0% 416,803 399,081 17,722 4.4%
Small Formats 23,152 10,187 12,964 127.3% 58,984 38,411 20,573 53.6%
Wholesale 2,503 2,386 116 4.9% 7,853 8,051 -198 -2.5%
Average Ticket(2) (RUB) 1,146 1,201 -55 -4.6% 1,092 1,115 -23 -2.1%
Hypermarkets 1,469 1,334 135 10.1% 1,287 1,237 50 4.0%
Small Formats 531 573 -42 -7.3% 528 551 -24 -4.3%
Number of Tickets(2) (millions) 126 101 25 24.6% 436 392 43 11.1%
Hypermarkets 83 84 -1 -1.0% 324 323 1 0.4%
Small Formats 44 18 26 145.1% 112 70 42 60.4%
Stores and Selling Space
Q4'21 Q4'20 Change % Change FY'21 FY'20 Change % Change
============================ ========== ========== ======== ========= ========== ========== ======== =========
Total Retail Stores (eop) 757 393 364 92.6% 757 393 364 92.6%
Hypermarkets 254 254 0 0.0% 254 254 0 0.0%
Openings 0 4 -4 - 3 6 -3 -50.0%
Closing 1 0 1 - 3 1 2 200.0%
Small Formats 503 139 364 261.9% 503 139 364 261.9%
Openings 90 6 84 1,400.0% 373 14 359 2,564.3%
Closing 6 2 4 200.0% 9 6 3 50.0%
New Selling Space (sqm,
eop) 29,167 24,347 4,820 19.8% 236,385 29,369 207,016 704.9%
Hypermarkets -5,225 21,554 -26,779 -124.2% 503 22,219 -21,716 -97.7%
Small Formats 34,392 2,793 31,599 1,131.4% 235,882 7,150 228,732 3,199.1%
Total Selling Space (sqm,
eop) 1,754,983 1,518,598 236,385 15.6% 1,754,983 1,518,598 236,385 15.6%
Hypermarkets 1,401,291 1,400,800 491 0.0% 1,401,291 1,400,800 491 0.0%
Small Formats 353,692 117,798 235,894 200.3% 353,692 117,798 235,894 200.3%
LFL Results
Q4'21 FY'21(3)
=============== ================================= =================================
Sales Average Ticket Traffic Sales Average Ticket Traffic
Total Retail 7.0% 10.4% -3.0% 2.4% 4.7% -2.1%
Hypermarkets 7.9% 10.5% -2.3% 3.1% 4.6% -1.5%
Small Formats -2.8% 3.7% -6.3% -4.3% 0.8% -5.0%
Online Sales
Q4'21 Q4'20 Change % Change FY'21 FY'20 Change % Change
==================================== ====== ====== ======= ========= ======= ====== ======= =========
Total Online Sales (RUB, millions) 7,033 3,088 3,944 128% 19,340 6,269 13,071 208%
Online Partners 3,619 2,257 1,362 60% 10,625 5,259 5,366 102%
Lenta Online 3,228 729 2,500 343% 8,085 886 7,199 813%
Click & Collect 186 103 83 80% 631 125 506 406%
Average Online Ticket (RUB) 1,960 1,847 114 6% 1,852 1,930 -78 -4%
Online Partners 1,844 1,928 -84 -4% 1,808 2,025 -216 -11%
Lenta Online 2,083 1,567 515 33% 1,883 1,463 420 29%
Click & Collect 2,485 2,782 -297 -11% 2,305 2,719 -414 -15%
Total Online Orders (thousands) 3,587 1,673 1,915 114% 10,442 3,249 7,193 221%
Online Partners 1,962 1,171 792 68% 5,875 2,597 3,278 126%
Lenta Online 1,550 465 1,085 233% 4,293 605 3,688 609%
Click & Collect 75 37 38 102% 274 46 228 497%
For Q4 2021 monthly operating results please refer to Appendix
1
2. Including Semya and Billa's results from the date of
consolidation.
3. LFL Results do not include 29-Feb-2020
Q4 2021 OPERATING RESULTS
In Q4 2021, Total Sales increased by 18.6% to RUB 147 billion.
Lenta's Retail Sales in Q4 2021 increased by 18.9% to RUB 145
billion compared to RUB 122 billion in Q4 2020, driven by 7.0% LFL
Retail Sales growth and 15.6% total selling space expansion both
organically and inorganically. Overall Sales Density in Q4 2021
improved by 1.0% year-over-year, while in our core Hypermarket
format this improvement amounted to 2.7% year-over-year. Traffic in
some of Lenta's stores was affected by the lockdown measures
introduced at the end of October and beginning of November, as well
as by other COVID-related restrictions implemented in various
regions of Russia throughout Q4 2021. In Q4 2021, the Number of
Tickets increased by 24.6% thanks to the expansion, while the
Average Ticket size decreased by 4.6% primarily due increasing
share of small-format stores sales in total Retail Sales.
Wholesale Sales represented 1.7% of Total Sales and increased by
4.9% compared to the corresponding period of the previous year.
As in the previous quarter, Average Ticket was the driver of LFL
Sales growth. LFL Sales growth doubled quarter-on-quarter from 3.5%
in Q3 2021 to 7.0% in Q4 2021. Total Retail LFL Traffic was a
negative 3.0%, primarily due to COVID-related restrictions. Total
Retail LFL Average Ticket increased by 10.4%, offsetting the
negative LFL Traffic.
Lenta's loyalty program continued to gain traction. In Q4 2021,
the number of customers who activated a new Lenta #1 card continued
to increase, with the total number of loyal cards issued amounted
to19 million. Lenta continues to optimize the broader mechanics of
the loyalty program to ensure the optimal result across various
metrics, including incremental sales, enhanced customer perception,
and margin dynamics.
Hypermarket Sales represented 84% of total Retail Sales in Q4
2021. Hypermarkets delivered strong 9.0% Sales growth, positive LFL
Sales growth of 7.9%, and an increase of 10.5% in the LFL Average
Ticket. Lenta continues to improve the efficiency of in-store
operations. In Q4 2021, designated areas for online order picking
were arranged in several hypermarkets, which will not only allow
Lenta to improve the availability, quality, and speed of online
delivery but will also increase the efficiency of selling space
utilization. In December 2021, a fire caused by arson destroyed one
of Lenta's hypermarkets in Tomsk. The Company plans to reconstruct
the hypermarket in 2022.
In Q4, Lenta continued its expansion in Small Format. 85 new
Lenta Mini stores and 5 supermarkets were opened during the period.
In Q4, Lenta also closed six underperforming supermarkets to
optimize operations. Small Formats Selling Space continued to
increase and reached 354 k square meters in Q4 2021. Lenta's
Supermarkets demonstrated significant year-over-year Sales Growth
in Q4 of 127.3%, primarily driven by acquisitions made earlier this
year. Small-format stores demonstrated negative LFL Sales growth of
2.8% resulting from LFL Traffic decline by 6.3%, which was
partially offset by the growth of LFL Average Ticket by 3.7%.
In Q4 2021, Lenta's online channel continued to demonstrate very
strong sales growth. Total Online Sales during the period amounted
to RUB 7.0 billion, an increase of 128% year-over-year and 59%
quarter-on-quarter, while Total Online Orders were up 114% and
amounted to 3.6 million. The Average Ticket for Lenta's own online
delivery was RUB 2,083 and increased by 11% quarter-on-quarter.
During Q4 2021, Online Sales continued to gain share in Lenta's
Retail Sales and reached 4.9% of Lenta's total Retail Sales, while
own online represented 48.5% of Lenta's Total Online Sales.
FY'21 GUIDANCE
In addition to the FY 2021 Selling Space Growth and New Store
Openings guidance metrics met by the Company and disclosed in this
press release, Lenta Management also keeps the previously
communicated guidance for FY 2021:
-- EBITDA Margin: above 8%
-- CapEx: Up to 5% of Sales, not including acquisitions
Lenta will provide detailed guidance projections for 2022 at the
time of its publication of FY 2021 financial results on 21 February
2022.
UTKONOS ACQUISITION
-- In December 2021, Lenta announced an agreement to acquire online-retailer Utkonos.
-- The acquisition of Utkonos will enable Lenta to expand its
online market share and gain unique competencies and a loyal
customer base.
-- The base purchase price for the transaction is RUB 20
billion. Consideration to be financed by an additional issuance of
shares of Lenta IPJSC.
-- The transaction was approved by Lenta's Board of Directors
upon the recommendation of the Special Committee; the additional
share issue is subject to shareholder approval at the extraordinary
general meeting of shareholders to be held on 11 February 2022, for
which the record date is 19 January 2022.
-- For additional details please follow the link: http://www.lentainvestor.com/en/media-centre/news-article/id/2830 .
LISTING OF ORDINARY SHARES ON MOEX
-- The Company's ordinary shares (Security code: LENT, ISIN:
RU000A102S15) (the "Ordinary Shares ") were included into the
"Level 1" part of the list of securities admitted to trading on
MOEX with effect from 26 November 2021.
-- The trading in the Ordinary Shares on MOEX commenced on 1 December 2021.
-- The global depositary receipts (Security code: LNTA, ISIN:
US52634T2006) ("GDRs") will be excluded from the "Level 1" part of
the list of securities admitted to trading on MOEX and no longer
trade on MOEX with effect from 19 April 2022.
-- GDRs will continue to be listed and traded on the London
Stock Exchange (Security code: LNTA, ISIN: US52634T2006).
-- GDR holders who cancel their GDRs and receive Ordinary Shares
in return will be charged a reduced GDR cancellation fee by the
Depositary of USD 3 cents per GDR if the Depositary receives duly
completed documentation in respect of the cancellation from the GDR
holder (or their broker) no later than 18:00 hours (Moscow time) on
1 February 2022, after which the fee will revert to the standard
USD 5 cents per GDR fee. The holders of GDRs may find additional
information on the cancellation process through the following link
http://www.lentainvestor.com/en/investors/shareholders/shareholder-capital
.
For further information, please contact:
Lenta EM (International Media
Tatyana Vlasova Inquiries)
Head of Investor Relations Lenta@em-comms.com
tatyana.vlasova@lenta.com
Lenta
Mariya Filippova
Head of Public Relations and Government
Affairs
maria.filippova@lenta.com
About Lenta
Lenta IPJSC (LSE: LNTA, MOEX: LNTA & 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 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 December 31, 2021,
operated 254 hypermarkets and 503 supermarkets and Lenta Mini
stores in 89 cities across Russia, with more than 1.7 million
square meters of Selling Space. The average Lenta hypermarket has
approximately 5,500 square meters of Selling Space, the average
Lenta supermarket has 800 square meters, and the Mini Lenta format
is 500 meters on average. The company operates 14 distribution
centers to supply all 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
Q4 2021 MONTHLY OPERATING RESULTS
Sales
October YoY November YoY December YoY
Total Sales(2) (RUB
millions) 42,203 23.1% 41,471 20.1% 63,641 15.0%
Retail Sales 41,367 23.5% 40,597 20.0% 62,850 15.4%
Hypermarkets 34,138 12.2% 33,786 9.7% 53,737 6.7%
Small Formats 7,228 136.6% 6,811 124.0% 9,113 122.7%
Wholesale 837 3.0% 874 27.7% 792 -11.0%
Average Ticket(2)
(RUB) 1,005 -4.7% 1,067 -3.0% 1,332 -4.9%
Hypermarkets 1,291 9.8% 1,367 11.8% 1,698 9.8%
Small Formats 492 -5.7% 511 -6.3% 586 -9.1%
Number of Tickets(2)
(millions) 41 29.6% 38 23.7% 47 21.3%
Hypermarkets 26 2.2% 25 -1.8% 32 -2.8%
Small Formats 15 150.8% 13 139.2% 16 144.9%
Stores and Selling Space
October November December
===================== ========== ========== ==========
Total Retail Stores
(eop) 690 703 757
Hypermarkets 255 255 254
Openings 0 0 0
Closing 0 0 1
Small Formats 435 448 503
Openings 18 16 56
Closing 2 3 1
New Selling Space
(sqm, eop) 7,105 4,531 17,531
Hypermarkets 0 0 -5,225
Small Formats 7,105 4,531 22,756
Total Selling Space
(sqm, eop) 1,732,922 1,737,453 1,754,984
Hypermarkets 1,406,516 1,406,516 1,401,291
Small Formats 326,406 330,937 353,693
Online Sales
October YoY November YoY December YoY
======================= ======== ======= ========= ======= ========= =======
Total Online Sales
(RUB, millions) 1,879 150.0% 2,242 131.9% 2,912 112.6%
Online Partners 1,050 71.8% 1,160 60.7% 1,408 52.5%
Lenta Online 780 520.8% 1,034 372.2% 1,413 268.3%
Click & Collect 48 228.1% 48 84.5% 90 43.7%
Average Online Ticket
(RUB) 1,849 4.5% 1,918 5.5% 2,076 8.5%
Online Partners 1,729 -6.6% 1,790 -4.5% 1,992 -1.7%
Lenta Online 2,034 42.9% 2,066 28.4% 2,123 32.9%
Click & Collect 1,922 -15.6% 2,396 -3.2% 3,017 -2.7%
Total Online Orders
(thousands) 1,016 139.2% 1,169 119.8% 1,403 95.9%
Online Partners 607 84.0% 648 68.3% 707 55.2%
Lenta Online 384 334.4% 501 267.7% 666 177.0%
Click & Collect 25 289.0% 20 90.6% 30 47.6%
2. Including Semya and Billa results from the date of
consolidation.
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