Lenta IPJSC (LNTA;LENT) Lenta IPJSC: LENTA REPORTS TOTAL SALES
GROWTH OF 15.7% AND ONLINE SALES GROWTH OF 137.2% IN 9M 2022
24-Oct-2022 / 09:00 CET/CEST Dissemination of a Regulatory
Announcement, transmitted by EQS Group. The issuer is solely
responsible for the content of this announcement.
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Press Release | St. Petersburg | 24 October 2022
LENTA REPORTS TOTAL SALES GROWTH OF 15.7% AND ONLINE SALES
GROWTH OF 137.2% IN 9M 2022
24 October
2022
Lenta IPJSC (LSE: LNTA, MOEX: LENT), one of the largest multi-format retail chains in Russia, today
St. announces its operational results and key financial results for the third quarter and the first nine
Petersburg, months of 2022.
Russia
Q3 2022 Highlights1,2
-- Total Sales increased by 7.2% y-o-y to RUB 126.8 billion
-- Retail Sales reached RUB 125.1 billion, representing 7.8%
y-o-y growth
-- Like-for-Like (LFL) Sales increased by 1.3%, driven by 4.6%
LFL Average Ticket growth
-- Online Sales grew by 98.2% y-o-y to RUB 8.8 billion
-- The Company opened 18 small-format stores on a gross
basis
-- Total Selling Space increased by 3.2%, reaching 1,780.3
thousand sq. m.
-- Gross Profit decreased by 5.0% y-o-y to RUB 26.5 billion.
Gross Margin decreased by 268 bps to 20.9%
-- EBITDA was RUB 7.5 billion with a 6.0% EBITDA Margin
-- Capex stood at RUB 1.9 billion, up 26.3%
-- The Net Debt to EBITDA (LTM) ratio stood at 1.8x vs. 1.4x as
of 31 December 2021 1. Including Utkonos results starting from 1
February 2022 2. Please note that all Financial Highlights are
based upon pre-IFRS 16 figures
«In Q3 2022, we continued our consistent work to develop our business in the context of changing market
conditions and to adjust our offer, in terms of both our prices and our product range, to meet the needs
of our customers. Meeting the daily needs of our customers has been and continues to be one of our key
goal, and in the face of continued pressure on household incomes and the high degree of uncertainty, we
are committed to be even more flexible and more efficient.
In assessing our performance in the last quarter, it is necessary to take into account the considerable
impact of market conditions, which exerted pressure on retail in general and led to a decrease in the
purchasing power of our customers in particular. Our key focus in Q3 2022 was to support customers by
expanding our range of products in lower price segments and increasing the number of promotions. We see
that these actions led to an improvement in the Lenta's price perception among our customers, which is an
important factor for further growth and development in a challenging operating environment. In Q3 2022,
2.4 million customers activated a new loyalty card, while the total number of cards issued reached 25.5
million.
Vladimir
Sorokin, Our hypermarkets demonstrated slight growth in the reporting period. In Q3 2022, we continued to
incorporate tools aimed at returning traffic to our stores and increasing the number of items per ticket.
Chief Our strategic goal-increasing Lenta's market share in the hypermarket segment in Russia-remains
Executive unchanged.
Officer
Another major task that we are working on is an integration of Utkonos into Lenta's business. Since the
beginning of the year, we have made significant progress in this area. In Q3 2022, for example, we began
to combine the Lenta Online and Utkonos operating models. The implementation of this project will enable
us to qualitatively improve our offer for our customers, including by reducing the delivery time for all
orders to an average of 1.5 hours and offering our customers better prices and more attractive promos. An
expanded range of Lenta's private label products will be available to Utkonos customers. In terms of
further steps, in the fourth quarter, we intend to improve the operational efficiency of the order
picking and delivery processes by integrating the best practices of both businesses and sharing Lenta's
and Utkonos's infrastructure. In addition, combining IT systems and key business processes will greatly
reduce SG&A expenses and improve the marginality of Lenta's online business, which is in line with our
long-term goal.
In Q3 2022 we managed to reduce our SG&A as percentage of Total Sales by over 400 bps compared to the
previous quarter. Lenta continues to adapt to the new environment; we are reducing inefficient costs and
focusing on achieving our long-term margin guidance announced earlier. I would like to thank every member
of our large team for their dedication every day and our customers and partners for their trust and
support». Q3 & 9M 2022 OPERATING RESULTS, y-o-y
Sales3
Q3'22 Q3'21 Change % Change 9M'22 9M'21 Change % Change
Total Sales (RUB million) 126,785 118,238 8,548 7.2% 389,244 336,325 52,919 15.7%
Retail Sales 125,087 116,066 9,021 7.8% 384,381 330,974 53,407 16.1%
Hypermarkets 101,240 99,478 1,762 1.8% 307,813 295,141 12,671 4.3%
Small Formats 21,870 16,588 5,282 31.8% 69,838 35,833 34,005 94.9%
Utkonos4 1,977 - 1,977 - 6,730 - 6,730 -
Wholesale5 1,698 2,171 -473 -21.8% 4,863 5,351 -488 -9.1%
Average Ticket (RUB) 985 1,012 -27 -2.7% 1,028 1,070 -42 -3.9%
Hypermarkets 1,283 1,215 68 5.6% 1,326 1,224 101 8.3%
Small Formats 459 505 -46 -9.0% 499 525 -27 -5.1%
Utkonos 3,950 - 3,950 - 4,215 - 4,215 -
Number of Tickets (millions) 127 115 12 10.7% 374 309 65 20.9%
Hypermarkets 79 82 -3 -3.6% 232 241 -9 -3.7%
Small Formats 48 33 15 44.9% 140 68 72 105.3%
Utkonos 0.5 -- 1 - 1.6 - 2 -
Stores and Selling Space
Q3'22 Q3'21 Change % Change 9M'22 9M'21 Change % Change
Total Retail Stores (eop) 811 674 137 20.3% 811 674 137 20.3%
Hypermarkets 254 255 -1 -0.4% 254 255 -1 -0.4%
Openings 0 0 0 0.0% 0 3 -3 -
Closing 0 0 0 0.0% 0 2 -2 -
Small Formats 557 419 138 32.9% 557 419 138 32.9%
Openings 18 270 -252 -93.3% 80 283 -203 -71.7%
Closing 16 2 14 - 26 3 23 -
New Selling Space (sqm, eop) 1,618 196,642 -195,023 -99.2% 25,337 207,219 -181,881 -87.8%
Hypermarkets 0 0 0 0.0% 0 5,728 -5,728 -
Small Formats 1,618 196,642 -195,023 -99.2% 25,337 201,491 -176,153 -87.4%
Total Selling Space (sqm, eop) 1,780,320 1,725,817 54,504 3.2% 1,780,320 1,725,817 54,504 3.2%
Hypermarkets 1,401,291 1,406,516 -5,225 -0.4% 1,401,291 1,406,516 -5,225 -0.4%
Small Formats 379,029 319,301 59,729 18.7% 379,029 319,301 59,729 18.7%
LFL Results6
Q3'22 9M'22
Sales Average Ticket Traffic Sales Average Ticket Traffic
Total Retail 1.3% 4.6% -3.2% 3.8% 7.5% -3.4%
Hypermarkets 2.3% 5.6% -3.1% 4.4% 8.2% -3.5%
Small Formats -6.8% -3.7% -3.2% -1.8% 1.5% -3.2%
Online Sales3
Q3'22 Q3'21 Change % Change 9M'22 9M'21 Change % Change
Total Online Sales (RUB million) 8,750 4,415 4,335 98.2% 29,189 12,307 16,882 137.2%
Online Partners 2,081 2,521 -439 -17.4% 7,771 7,006 765 10.9%
Lenta Online7 4,692 1,895 2,798 147.7% 14,688 5,301 9,386 177.1%
Utkonos8 1,977 0 1,977 - 6,730 0 6,730 -
Average Online Ticket (RUB) 2,275 1,813 463 25.5% 2,277 1,795 482 26.9%
Online Partners 1,916 1,754 162 9.2% 1,898 1,791 108 6.0%
Lenta Online7 2,077 1,898 179 9.5% 2,063 1,802 261 14.5%
Utkonos8 3,950 0 3,950 - 4,200 0 4,200 -
Total Online Orders (thousands) 3,846 2,436 1,410 57.9% 12,817 6,855 5,962 87.0%
Online Partners 1,086 1,437 -351 -24.4% 4,094 3,913 181 4.6%
Lenta Online7 2,259 998 1,261 126.3% 7,121 2,943 4,179 142.0%
Utkonos8 500 0 500 - 1,602 0 1,602 -
For Q3 2022 monthly operating results, please refer to Appendix
1
3. Including Utkonos results from the date of consolidation (1
February 2022)
4. Includes only Utkonos Retail Sales (B2C)
5. Wholesales includes Utkonos wholesales (B2B)
6. LFL results include the results of Billa stores for September
but do not include the results of Semya stores.
7. Lenta Online includes Click & Collect
8. Includes both Utkonos retail sales (B2C) and wholesales (B2B)
Q3 2022 OPERATING RESULTS
In Q3 2022, Total Sales increased by 7.2% to RUB 126.8 billion.
Lenta's Retail Sales in Q3 2022 increased by 7.8% to RUB 125.1
billion, compared to RUB 116.1 billion in Q3 2021, driven by 1.3%
LFL Retail Sales growth and 3.2% Total Selling Space organic
expansion. Overall Sales Density in Q3 2022 improved by 2.0%
year-over-year.
In Q3 2022, we oversaw the change in customers' behavior driven
primarily by the decrease in real disposable income and the decline
in consumer confidence. Our customers now tend to buy a product
from a lower price segment and reduce their expenses on non-food
categories and entertainment goods. Meanwhile, the growth rate in
the Online channel is slowing down.
In Q3 2022, the total Number of Tickets increased by 10.7%
thanks to the above-mentioned organic expansion and gradual
improvement in the performance of our Lenta Mini stores, while the
Average Ticket size decreased by 2.7% primarily due to the
increasing share of small-format stores' sales in total Retail
Sales.
Wholesale Sales, which now includes Utkonos B2B sales from the
date of the consolidation, represented 1.3% of Total Sales and
decreased by 21.8% compared to the corresponding period of the
previous year.
In Q3 2022, the Average Ticket continued to be the driver of LFL
Sales growth. LFL Sales growth decelerated to 1.3% in Q3 2022.
Total Retail LFL Traffic stood at a negative 3.2%. The Total Retail
LFL Average Ticket increased by 4.6%, offsetting negative LFL
Traffic.
In Q3 2022, Lenta continued to improve its loyalty program and
actively worked on assortment tailoring and promo recovery. In Q3
2022, 2.4 million new loyalty cards were activated, with the total
number of loyalty cards issued reaching to 25.5 million.
Transactions using loyalty cards slightly increased compared to Q2
2022 and accounted for 96.1% of total Retail Sales, excluding
Utkonos.
Hypermarket Sales represented 80.9% of total Retail Sales in Q3
2022. Hypermarkets delivered 1.8% Sales growth, positive LFL Sales
growth of 2.3%, and an increase of 5.6% in the LFL Average Ticket,
driven primarily by inflation. Lenta continues to improve the
efficiency of in-store operations, which led to a sales density
improvement of 5.4% year-over-year.
In 2022, Lenta put on hold a significant number of store
openings due to the macroeconomic conditions and market
uncertainties. During Q3 2022, 18 new small-format stores were
opened. Lenta also closed 16 underperforming stores to optimize
operations, bringing the total number of small-format stores to 557
as of the end of Q3. In the reporting period, small-format stores
demonstrated decent year-over-year Sales Growth of 31.8%, driven by
acquisitions made in 2021 and organic expansion. Small-format
stores' LFL Sales decreased by 6.8% as a result of a 3.7% decrease
in the LFL Average Ticket and a 3.2% decline in LFL Traffic. This
quarter-on-quarter decline in the performance of small-format
stores was driven by the high base effect associated with clearance
sales at Billa stores prior to the chain's integration with Lenta
in September 2021.
In Q3 2022, Lenta's Online channel continued to demonstrate very
strong sales growth. Total Online Sales including Utkonos sales
during the period amounted to RUB 8.8 billion, an increase of 98.2%
year-over-year, while Total Online Orders were up 57.9% and
amounted to 3.8 million. The Average Ticket for Lenta Online was
RUB 2,077 an increase of 9.5% year-over-year. The share of online
sales via Partners decreased significantly following Partners'
revision of their approach to the development of their online
offering. Lenta Online demonstrated considerable sales growth
thanks to increases in the Average Ticket, the size of the customer
base and the number of orders. In Q3 2022, Online Sales constituted
6.9% of Lenta's Total Sales, compared to 3.7% in the corresponding
period of the previous year. In Q3 2022, Lenta continued to expand
Unkonos online offering and launched Utkonos Mini sales at several
partners' platforms. Q3 & 9M 2022 FINANCIAL HIGHLIGHTS,
pre-IFRS 16
Key Financial Results, pre-IFRS 16
RUB million Q3'22 Q3'21 Change 9M'22 9M'21 Change
Total Sales 126,785 118,238 7.2% 389,224 336,325 15.7%
Gross Profit 26,500 27,888 -5.0% 89,339 77,610 15.1%
Gross Margin (%) 20.9% 23.6% -268 bps 23.0% 23.1% -12 bps
SG&A -24,918 -22,661 -10.0% -85,422 -64,764 -31.9%
SG&A as % of Total Sales -19.7% -19.2% -49 bps -21.9% -19.3% -269 bps
EBITDAR 10,416 12,607 -17.4% 31,813 33,448 -4.9%
EBITDAR Margin 8.2% 10.7% -245 bps 8.2% 9.9% -177 bps
Rent as % of Total Sales -2.3% -1.9% -36 bps -2.3% -1.7% -60 bps
EBITDA 7,545 10,356 -27.1% 22,954 27,828 -17.5%
EBITDA Margin 6.0% 8.8% -281 bps 5.9% 8.3% -238 bps
Operating Profit before impairment 3,001 6,475 -53.7% 9,594 16,331 -41.3%
Operating Profit Margin before impairment 2.4% 5.5% -311 bps 2.5% 4.9% -239 bps
Impairment - - - - -9 -
Operating Profit 3,001 6,475 -53.7% 9,594 16,322 -41.2%
Operating Profit Margin 2.4% 5.5% -311 bps 2.5% 4.9% -239 bps
Net Interest Expense -1,185 -1,298 8.7% -3,640 -3,629 -0.3%
Net FX gain/(loss) -144 141 - 213 -469 -
Profit Before Income Tax 1,672 5,318 -68.6% 6,167 12,224 -49.6%
Net Income 1,285 4,181 -69.3% 4,643 9,544 -51.4%
Net Income Margin 1.0% 3.5% -252 bps 1.2% 2.8% -164 bps
For Q3 & 9M 2022 financial highlights prepared in accordance
with IFRS 16, please refer to Appendix 2
Total Sales demonstrated strong growth of 7.2% and amounted to
RUB 126.8 billion, compared to RUB 118.2 billion in Q3 2021. In Q3
2022, Gross Profit (pre-IFRS 16) decreased by 5.0% year-over-year
to RUB 26.5 billion. Gross Margin dropped by 268 bps to 20.9%; the
decrease in Gross Margin was driven mainly by higher investments in
traffic retention, increased promo share, and a shift in the sales
product mix toward lower margin goods. The decline in Gross Profit
and 10.0% increase in Total SG&A led to a 27.1% decrease in
EBITDA (pre-IFRS 16) year-over-year. In Q3 2022, Lenta's EBITDA
Margin stood at 6.0%. EBITDA Margin declined by 281 bps compared to
the previous year, primarily due to lower Gross Margin and the
growth of SG&A as a percentage of Total Sales, which resulted
from an increased share of stores in the ramp-up stage, the growing
share of Lenta's own online, and the Utkonos acquisition.
Selling, General, and Administrative (SG&A) expenses,
pre-IFRS 16
RUB million Q3'22 Q3'21 Change 9M'22 9M'21 Change
Payroll and related taxes 8,842 8,189 8.0% 34,778 24,473 42.1%
as a % of Total Sales 7.0% 6.9% 5 bps 8.9% 7.3% 166 bps
Depreciation and Amortization (D&A) 4,543 3,881 17.1% 13,360 11,497 16.2%
as a % of Total Sales 3.6% 3.3% 30 bps 3.4% 3.4% 1 bps
Lease Expenses 2,871 2,251 27.5% 8,859 5,620 57.6%
as a % of Total Sales 2.3% 1.9% 36 bps 2.3% 1.7% 60 bps
Utilities 1,321 1,444 -8.5% 4,847 4,091 18.5%
as a % of Total Sales 1.0% 1.2% -18 bps 1.2% 1.2% 3 bps
Store Operations 2,532 2,482 2.0% 8,553 7,172 19.3%
as a % of Total Sales 2.0% 2.1% -10 bps 2.2% 2.1% 6 bps
Professional Fees 1,487 1,329 11.9% 4,220 3,429 23.1%
as a % of Total Sales 1.2% 1.1% 5 bps 1.1% 1.0% 6 bps
Advertising 1,850 1,563 18.4% 5,338 3,944 35.3%
as a % of Total Sales 1.5% 1.3% 14 bps 1.4% 1.2% 20 bps
Other 1,472 1,522 -3.3% 5,467 4,538 20.5%
as a % of Total Sales 1.2% 1.3% -13 bps 1.4% 1.3% 6 bps
Total SG&A 24,918 22,661 10.0% 85,422 64,764 31.9%
as a % of Total Sales 19.7% 19.2% 49 bps 21.9% 19.3% 269 bps
SG&A excluding D&A 20,375 18,780 8.5% 72,062 53,267 35.3%
as a % of Total Sales 16.1% 15.9% 19 bps 18.5% 15.8% 268 bps
For Q3 & 9M 2022 SG&A expenses in accordance with IFRS
16, please refer to Appendix 2
In Q3 2022, Total Selling, General, and Administrative expenses
(pre-IFRS 16) increased by 10.0% year-over-year to RUB 24.9
billion. SG&A as a percentage of Total Sales increased by 49
bps to 19.7%. This growth was mainly driven by higher lease
expenses as well as increased D&A.
In Q3 2022, Payroll expenses rose by 8.0% year-over-year, while
personnel expenses as a percentage of Total Sales increased by 5
bps. These dynamics was primarily driven by a higher share of
stores in the ramp-up stage and Utkonos acquisition which were
offset by improved labor productivity in our hypermarkets.
D&A increased by 17.1% primarily due to the acquisition of
Utkonos warehouses as well as the consolidation of Billa and Semya.
D&A as a percentage of Total Sales decreased by 30 bps.
Lease expenses as a percentage of Total Sales rose by 36 bps,
primarily due to the expansion of small format stores with higher
share of leased premises.
Store Operations as percentage of Total Sales decreased by 10
bps year-over-year, mainly driven by 15 bps decline in repairs and
maintenance and a 3 bps decrease in security costs, while cleaning
costs increased by 8 bps.
Advertising costs during Q3 2022 were up 18.4% year-over-year,
due to increased investments in our growing online business and
expenses related to support for small-format in the ramp-up
stage.
Cash Flow Statement, pre-IFRS 16
RUB million Q3'22 Q3'21 Change 9M'22 9M'21 Change
Profit before income tax 1,672 5,318 -68.6% 6,167 12,224 -49.6%
Net adjustments for loss on disposal of assets, impairment, depreciation 5,866 4,834 21.3% 17,194 15,574 10.4%
& amortization, and other
Movements in Working Capital 2,791 1,277 118.6% -15,106 -8,939 -69.0%
Cash generated from / (used in) operating activities 10,329 11,429 -9.6% 8,255 18,859 -56.2%
Net Interest & Income Taxes Paid -1,502 -1,228 -22.3% -6,979 -4,551 -53.4%
Net Cash generated from Operating Activities 8,827 10,201 -13.5% 1,276 14,308 -91.1%
Net cash used in Investing Activities -1,685 -23,067 92.7% -9,044 -27,935 67.6%
Net cash generated from / (used in) financing activities 3,000 -168 - -2,051 9,259 -
Effect of exchange rates on cash and cash equivalents -68 126 - -206 -489 57.9%
Net Increase / (Decrease) in Cash & Cash Equivalents 10,074 -12,908 - -10,025 -4,857 -106.4%
For the Q3 & 9M 2022 cash flow statement prepared in
accordance with IFRS 16, please refer to Appendix 2
Capital Expenditures in Q3 2022 amounted to RUB 1.9 billion, an
increase of 26.3% year-over-year. This increase resulted from the
opening of new stores and expenses related to the integration of
Billa, Semya, and Utkonos's online business.
The Company's Profit before Income Tax for Q3 2022 was RUB 1.7
billion, which was 68.6% lower than in Q3 2021. The decrease in
Profit before income tax was mainly the result of a 53.7%
year-over-year decline in Operating Profit as well as net FX losses
incurred compared to the net FX gain received in Q3 2021.
In Q3 2022, Net Cash generated from Operating Activities
(pre-IFRS 16) amounted to RUB 8.8 billion, compared to RUB 10.2
billion the previous year. These dynamics resulted from the
decrease in Profit before income tax, which was offset by the much
higher positive movement of Working Capital and higher D&A.
Net Cash used in Investing Activities was 1.7 billion compared
to 23.1 billion for the same period of the previous year. In Q3
2021 Net Cash used in Investing Activities was primarily related to
the acquisition of Billa and Semya.
In Q3 2022, Net Cash generated from Financing Activities
amounted to RUB 3.0 billion, compared to Net Cash used in Financing
Activities of RUB 0.2 billion in Q3 2021.
Free Cash Flow for Q3 2022 was RUB 7.1 billion, which was RUB
20.0 billion higher than in Q3 2021, mainly due to lower Net Cash
used in Investing Activities.
Debt Position and Leverage
IFRS 16 IAS 17
RUB million 30-Sep-22 31-Dec-21 30-Sep-22 31-Dec-21
Gross Debt 141,088 148,962 86,504 88,414
Long-term Debt 28,980 66,912 28,980 66,912
Short-term Debt 57,524 21,502 57,524 21,502
Lease Liabilities (IFRS 16) 54,584 60,548 - -
Cash & Cash Equivalents 23,302 33,326 23,302 33,326
Net Debt 117,786 115,636 63,202 55,088
Net Debt / EBITDA (LTM) ratio 1.8x 1.4x
Lenta's cash position at the end of Q3 2022 was RUB 23.3
billion. Gross Debt decreased by 2.2% compared to 31 December 2021
and stood at RUB 86.5 billion as of 30 September 2022. Net Debt
(pre-IFRS 16) increased by RUB 8.1 billion compared to year-end
2021 and stood at RUB 63.2 billion.
All the Company's debt has fixed interest rates and is fully
ruble-denominated, matching its revenue structure. The LTM weighted
average effective interest rate for Lenta's debt portfolio for the
period ended 30 September 2022 was 7.6%, compared to 6.8% for the
twelve-month period ended 30 September 2021.
Lenta's Net Debt to EBITDA ratio was 1.8x as of 30 September
2022 vs. 1.4x as of 31 December 2021.
Lenta Lenta
Mariya Filippova
Tatyana Vlasova Head of Public Relations and Government Affairs
Head of Investor Relations maria.filippova@lenta.com
tatyana.vlasova@lenta.com For further information, please contact:
About Lenta
Lenta IPJSC (LSE: LNTA, MOEX: LENT) is a leading Russian
multi-format food and FMCG retailer. The company operates
hypermarkets, supermarkets, and recently launched a new proximity
store format under the brand Mini Lenta. It also provides customers
the option to shop online via its own Lenta Online services, Online
Partners and the Utkonos platform. Lenta is Russia's largest
hypermarket operator and the fourth largest food retailer overall
by Sales. The company was founded in 1993 in St. Petersburg and as
of September 30, 2022, operated 254 hypermarkets and 557
supermarkets and Lenta Mini stores in over 200 cities and towns
across Russia, with almost 1.78 million square meters of Selling
Space. The average Lenta hypermarket has approximately 5,500 square
meters of Selling Space, the average Lenta supermarket has 800
square meters, and the Mini Lenta format is 500 meters on average.
The company operates 14 distribution centers to supply all its
stores. 2021 Revenues were RUB 484 billion (approximately USD 6.5
billion).
Forward-Looking Statements
This announcement includes statements that are, or may be deemed
to be, "forward-looking statements." These forward-looking
statements can be identified by the fact that they do not only
relate to historical or current events. Forward-looking statements
often use words such as "anticipate," "target," "expect,"
"estimate," "intend," "expected," "plan," "goal," "believe," or
other words of similar meaning. By their nature, forward-looking
statements involve risk and uncertainty because they relate to
future events and circumstances, a number of which are beyond
Lenta's control. As a result, actual future results may differ
materially from the plans, goals, and expectations set out in these
forward-looking statements. Any forward-looking statements made by
or on behalf of Lenta speak only as of the date of this
announcement. Except as required by any applicable laws or
regulations, Lenta undertakes no obligation publicly to release the
results of any revisions to any forward-looking statements in this
document that may occur due to any change in its expectations or to
reflect events or circumstances after the date of this document.
Appendix 1
Q2 2022 MONTHLY OPERATING RESULTS
Sales3
July YoY August YoY September YoY
Total Sales (RUB million) 43,956 16.0% 41,837 5.6% 40,993 0.6%
Retail Sales 43,499 16.8% 41,332 6.2% 40,257 0.9%
Hypermarkets 35,322 3.4% 33,433 1.6% 32,485 0.3%
Small Formats 7,527 144.2% 7,230 20.5% 7,113 -5.3%
Utkonos4 650 - 668 - 658 -
Wholesale5 457 -28.5% 505 -27.6% 736 -11.8%
Average Ticket (RUB) 1,005 -7.7% 958 -3.0% 991 2.1%
Hypermarkets 1,302 7.0% 1,246 3.8% 1,303 6.0%
Small Formats 470 -6.2% 448 -10.6% 458 -9.8%
Utkonos 4,063 - 3,863 - 3,933 -
Number of Tickets (millions) 43 26.5% 43 9.5% 41 -1.2%
Hypermarkets 27 -3.4% 27 -2.2% 25 -5.4%
Small Formats 16 160.4% 16 34.8% 16 5.0%
Utkonos 0.2 - 0.2 - 0.2 -
Stores and Selling Space
July August September
Total Retail Stores (eop) 817 817 811
Hypermarkets 254 254 254
Openings 0 0 0
Closing 0 0 0
Small Formats 563 563 557
Openings 8 4 6
Closing 0 4 12
New Selling Space (sqm, eop) 4,057 139 -2,578
Hypermarkets 0 0 0
Small Formats 4,057 139 -2,578
Total Selling Space (sqm, eop) 1,782,759 1,782,898 1,780,320
Hypermarkets 1,401,291 1,401,291 1,401,291
Small Formats 381,468 381,607 379,029
Online Sales
July YoY August YoY September YoY
Total Online Sales (RUB million) 2,933 127.3% 2,796 96.7% 3,021 77.4%
Online Partners 723 1.4% 639 -21.9% 719 -27.3%
Lenta Online6 1,561 169.9% 1,488 146.9% 1,643 130.3%
Utkonos7 650 - 668 - 658 -
Average Online Ticket (RUB) 2,272 26.2% 2,239 25.3% 2,314 25.5%
Online Partners 1,941 10.7% 1,855 6.9% 1,947 10.1%
Lenta Online6 2,056 10.5% 2,035 9.3% 2,137 9.0%
Utkonos7 4,063 - 3,863 - 3,933 -
Total Online Orders (thousands) 1,291 80.2% 1,249 57.0% 1,306 41.4%
Online Partners 372 -8.3% 345 -26.9% 369 -34.0%
Lenta Online6 759 144.3% 731 125.8% 769 111.3%
Utkonos7 160 - 173 - 167 -
3. Including Utkonos results from the date of consolidation (1
February 2022)
4. Includes only Utkonos Retail Sales (B2C)
5. Wholesales includes Utkonos wholesales (B2B)
6. Lenta Online includes Click & Collect
7. Includes both Utkonos retail sales (B2C) and wholesales (B2B)
Appendix 2
Q3 & 9M 2022 FINANCIAL HIGHLIGHTS, IFRS 16
Key Financial Results, IFRS 16
RUB million Q3'22 Q3'21 Change 9M'22 9M'21 Change
Total Sales 126,785 118,238 7.2% 389,244 336,325 15.7%
Gross Profit 26,599 27,966 -4.9% 89,701 77,773 15.3%
Gross Margin (%) 21.0% 23.7% -267 bps 23.0% 23.1% -8 bps
SG&A -24,329 -22,266 -9.3% -83,628 -63,591 -31.5%
SG&A as % of Total Sales -19.2% -18.8% -36 bps -21.5% -18.9% -258 bps
EBITDAR 10,652 12,707 -16.2% 32,243 33,807 -4.6%
EBITDAR Margin 8.4% 10.7% -235 bps 8.3% 10.1% -177 bps
Rent as % of Total Sales -0.3% -0.3% - -0.3% -0.2% -9 bps
EBITDA 10,291 12,367 -16.8% 30,977 33,014 -6.2%
EBITDA Margin 8.1% 10.5% -234 bps 8.0% 9.8% -186 bps
Operating Profit before impairment 3,827 6,971 -45.1% 11,818 17,864 -33.8%
Operating Profit Margin before impairment 3.0% 5.9% -288 bps 3.0% 5.3% -228 bps
Impairment - - - - -9 -
Operating Profit 3,827 6,971 -45.1% 11,818 17,855 -33.8%
Operating Profit Margin 3.0% 5.9% -288 bps 3.0% 5.3% -227 bps
Net Interest Expense -2,488 -2,219 -12.1% -7,398 -5,930 -24.8%
Net FX loss -431 137 - 822 -452 -
Profit Before Income Tax 908 4,889 -81.4% 5,242 11,473 -54.3%
Net Income 673 3,838 -82.5% 3,903 8,943 -56.4%
Net Income Margin 0.5% 3.2% -272 bps 1.0% 2.7% -166 bps
Selling, General, and Administrative (SG&A) expenses, IFRS
16
RUB million Q3'22 Q3'21 Change 9M'22 9M'21 Change
Payroll and related taxes 8,842 8,189 8.0% 34,778 24,473 42.1%
as a % of Total Sales 7.0% 6.9% 5 bps 8.9% 7.3% 166 bps
Depreciation and Amortization (D&A) 6,464 5,397 19.8% 19,159 15,151 26.5%
as a % of Total Sales 5.1% 4.6% 53 bps 4.9% 4.5% 42 bps
Lease Expenses 361 340 6.2% 1,266 793 59.6%
as a % of Total Sales 0.3% 0.3% 0 bps 0.3% 0.2% 9 bps
Utilities 1,321 1,444 -8.5% 4,847 4,091 18.5%
as a % of Total Sales 1.0% 1.2% -18 bps 1.2% 1.2% 3 bps
Store Operations 2,532 2,482 2.0% 8,553 7,172 19.3%
as a % of Total Sales 2.0% 2.1% -10 bps 2.2% 2.1% 6 bps
Professional Fees 1,487 1,329 11.9% 4,220 3,429 23.1%
as a % of Total Sales 1.2% 1.1% 5 bps 1.1% 1.0% 6 bps
Advertising 1,850 1,563 18.4% 5,338 3,944 35.3%
as a % of Total Sales 1.5% 1.3% 14 bps 1.4% 1.2% 20 bps
Other 1,472 1,522 -3.3% 5,467 4,538 20.5%
as a % of Total Sales 1.2% 1.3% -13 bps 1.4% 1.3% 6 bps
Total SG&A 24,329 22,266 9.3% 83,628 63,591 31.5%
as a % of Total Sales 19.2% 18.8% 36 bps 21.5% 18.9% 258 bps
SG&A excluding D&A 17,865 16,869 5.9% 64,469 48,440 33.1%
as a % of Total Sales 14.1% 14.3% -18 bps 16.6% 14.4% 216 bps
Cash Flow Statement, IFRS 16
RUB million Q3'22 Q3'21 Change 9M'22 9M'21 Change
Profit before income tax 908 4,889 -81.4% 5,242 11,473 -54.3%
Net adjustments for loss on disposal of assets, impairment, depreciation 9,239 7,283 26.9% 26,073 21,499 21.3%
& amortization, and other
Movements in Working Capital 2,926 1,415 106.8% -15,003 -8,938 -67.9%
Cash generated from / (used in) operating activities 13,073 13,587 -3.8% 16,312 24,034 -32.1%
Net Interest & Income Taxes Paid -2,809 -2,209 -27.2% -10,755 -6,913 -55.6%
Net Cash generated from / (used in) Operating Activities 10,264 11,378 -9.8% 5,557 17,121 -67.5%
Net cash used in Investing Activities -1,675 -23,058 92.7% -9,015 -27,909 -67.7%
Net cash generated from / (used in) financing activities 1,553 -1,354 - -6,361 6,420 -
Effect of exchange rates on cash and cash equivalents -68 126 - -206 -489 57.9%
Net Increase / (Decrease) in Cash & Cash Equivalents 10,074 -12,908 - -10,025 -4,857 -106.4%
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ISIN: US52634T2006, US52634T1016
Category Code: QRT
TIDM: LNTA;LENT
LEI Code: 213800OMCE8QATH73N15
Sequence No.: 196183
EQS News ID: 1469773
End of Announcement EQS News Service
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