RUSSIA: Lenta launches its ‘Christmas Tree of Wishes’ charity event to help make New Year’s wishes of children in foster care come true

Saint Petersburg, Russia, 2017-Dec-08 — /EPR Retail News/ — Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, launches its ‘Christmas Tree of Wishes’ charity event to help children in institutional foster care make their New Year’s wishes come true.

Lenta customers will have the opportunity to act as Santa Claus, helping make the New Year’s wishes of children in state-sponsored foster care homes and specialised institutions come true. Christmas trees will be decorated with children’s wish cards in 179 Lenta hypermarkets across 76 Russian cities.

Taking part in the event is easy: customers need only choose a child’s wish card from the tree and purchase the New Year’s present listed within. Lenta will then collect all the gift items and send them to participating foster care homes and institutions, ensuring that every child receives a gift from Santa Claus during the New Year’s celebrations. Gifts will be collected in stores until the end of December, and will benefit around 6,000 children from 170 social institutions throughout Russia.

Lenta’s Chief Executive Officer Jan Dunning said:
“New Year is one of the most important and beloved holidays in the Russian calendar – a time of affection and generosity. We invite our customers to join our ‘Christmas Tree of Wishes’ initiative and become a part of the New Year’s magic for several thousand children living in state sponsored foster care homes. I hope this event will become a great tradition, for we all know that giving a gift is as heart-warming as receiving one.”

The ‘Christmas Tree of Wishes’ event was first held in 2015 five stores in the North West Region of Russia, at the initiative of our employees.

Thirty two Lenta hypermarkets in eight cities took part in the event in 2016, granting the wishes of over 1,300 children from 30 specialised institutions.

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 217 hypermarkets in 79 cities across Russia and 77 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,298,457 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 40,400 people as of 30 June 2017[1].

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com

Contact:

Lenta
E-mail: pr@lenta.com
NW Advisors
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@nwadvisors.com

FTI Consulting
International Media:
Leonid Fink
Тel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com

Source: Lenta

Lenta joins Europe’s leading purchasing alliance, EMD

St. Petersburg, Russia, 2017-Nov-21 — /EPR Retail News/ — Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, has joined EMD, Europe’s leading purchasing alliance. The Company is the only Russian retail chain to benefit from membership of the world’s largest FMCG purchasing network.

Lenta joins the alliance as a full member and will also become a shareholder. This allows the Company to fully benefit from contracts sourced by the alliance’s negotiations, including those with producers of high-end brands. Joint procurement with other large European retailers will enable Lenta to offer its customers access to an even broader range of quality products at affordable prices, while also providing a new impetus to the on-going development of Lenta’s private labels.

Lenta’s Chief Executive Officer Jan Dunning commented:
“We are pleased to join EMD as its exclusive Russian member. Above all, our membership of the alliance will enable us to enhance the breadth of our private label range through effective procurement of value-for-money products from international producers. In addition, our purchasing activities within EMD may potentially open an extra sales channel for Russian suppliers of Lenta’s private label products to access the European market.”

About EMD
European Marketing Distribution is a major association of FMCG retailers and trading companies, headquartered in Switzerland. The alliance brings together retailers from 20 European countries, including ASDA, Kaufland, Euromadi, Axfood, Superunie, and over 250 other retail chains. The alliance’s mission is to facilitate joint procurement of food and non-food products for its members. EMD consolidates the buying power and promotion opportunities for retailers, providing them with additional benefits of generating savings in the supply chain and streamlining logistics. EMD members have a combined turnover of over EUR 216 bn, with a total selling space of 41 m sq.m.

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 214 hypermarkets in 79 cities across Russia and 71 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,282,520 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 40,400 people as of 30 June 20171.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com

Contact:

Lenta
E-mail: pr@lenta.com

NW Advisors
Russian Media
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@nwadvisors.com

FTI Consulting International Media:
Leonid Fink & Victor Pomichal
Тel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com
victor.pomichal@fticonsulting.com

Source; Lenta

Lenta announces the opening of five new hypermarkets in Moscow

Saint-Petersburg, Russia, 2017-Nov-16 — /EPR Retail News/ — Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, announces the launch of five new hypermarkets in Moscow. The stores open on premises previously operated under the NASH hypermarkets brand, as part of the long-term lease agreement signed in July.

The new standard and compact hypermarkets were opened on Yaroslavskoye Highway, Orekhovyi Boulevard, Dmitrovskoye Highway, Reutov, and Govorovo following a complete renovation and comprehensive internal refurbishment of the premises. The product mix on offer is tailored to the needs of Moscow residents and features between 20,000 and 28,500 SKUs. As is traditional for Lenta, along with nationally supplied products and private labels, the stores also offer wide assortment of local produce. To ensure customers’ convenience, the stores are complete with parking areas, a larger number of checkouts, and self-checkout points. The hypermarkets are open 24 hours a day, seven days a week.

Lenta’s Chief Executive Officer Jan Dunning said:
“Despite entering the Moscow market later than our competitors, we are rapidly expanding our footprint here. Lenta opened its first store in Moscow in 2013, and ended that year with 10 supermarkets and one hypermarket in full operation. Currently, our presence in Moscow is comprised of 21 hypermarkets and 39 supermarkets. Moving forward, we plan to open four more hypermarkets before the end of the year, almost doubling our market presence in Moscow’s hypermarket segment. By the end of 2017, Lenta will become the second largest player in the Moscow hypermarket space.”

The newly opened stores bring the Lenta chain to 214 hypermarkets in 79 Russian cities, and 70 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg, and the Central Region.

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 214 hypermarkets in 79 cities across Russia and 70 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,281,595 sq.m of selling space.

The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 40,400 people as of 30 June 20171.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

Contact:

Lenta
E-mail: pr@lenta.com

NW Advisors
Russian Media
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@nwadvisors.com

FTI Consulting
International Media:
Leonid Fink & Victor Pomichal

Тel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com

Source: Lenta

Russian retailer Lenta to purchase 22 supermarkets in Siberia from Holiday Group

St. Petersburg, Russia, 2017-Nov-11 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”), one of the largest retail chains in Russia, is pleased to announce an agreement has been reached with the Holiday Group to purchase 22 supermarkets in the Siberia region.

Assets
The assets to be acquired consist of 22 owned supermarkets currently operated under the “Holiday Classic”, “Kora” and “Holdy” brands. 11 of the stores are located in Novosibirsk, 7 in Kemerovo and 4 Barnaul. The average selling space per store is around 800 square meters, giving total selling space of approximately 18 thousand square meters. The stores are compatible with Lenta’s supermarket format in terms of size and layout, and the locations are complementary to Lenta’s existing stores.

Lenta’s Chief Executive Officer, Jan Dunning said:
“Lenta is pleased to announce an agreement to acquire 22 supermarkets in Siberia from the Holiday Group. This transaction will significantly strengthen our network in Siberia, giving many more customers the opportunity to shop at a Lenta store close to their homes. The stores all have good urban locations and are complementary to Lenta’s existing network.

Siberia is an important region for Lenta. The company opened its first hypermarket in Novosibirsk in 2006 and its first supermarket in the city earlier this year. We currently operate 36 hypermarkets and 4 supermarkets across Siberia, served by our distribution centre in Novosibirsk.

While Lenta remains primarily focused on organic expansion, we are happy to supplement this by acquiring high quality existing stores when suitable opportunities arise. We have a strong track record of successful integration and look forward to welcoming former Holiday store employees into the Lenta family. The stores will be refurbished and rebranded over the next few months.”

Approvals and integration
All the stores are expected to transfer to Lenta ownership before year end 2017. The transaction does not require any regulatory approvals.

The stores will be closed temporarily for refurbishment and rebranding as Lenta stores, with all works expected to be completed by end March 2018.

Lenta 2017 Guidance
Lenta’s existing guidance of about 50 supermarket openings in 2017 with capital expenditure in the range of RUB 30-35bn remains unchanged.

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 204 hypermarkets in 79 cities across Russia and 69 supermarkets in Moscow, St. Petersburg, Novosibirsk, Yekaterinburg and the Central region with a total of approximately 1,223,933 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 40,400 people as of 30 June 2017.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

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 at the date of this announcement. Save 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.

For further information please visit www.lentainvestor.com

Contact:

Lenta
E-mail: pr@lenta.com Russian media:
NW Advisors
Anton Karpov & Victoria Afonina
Тel:+7 (495) 795 06 23
E-mail: lenta@nwadvisors.com

International media:
FTI Consulting
Леонид Финк
Тел.: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com

Source: Lenta

Lenta Ltd 1H2017 IFRS Financial Results: Total sales grew 16.7% to RUB 163.5bn (1H 2016: RUB 140.1bn)

St. Petersburg, Russia, 2017-Aug-31 — /EPR Retail News/ — Lenta Ltd (“Lenta” or the “Company”), one of the largest retail chains in Russia, today (30 August 2017) announces its reviewed consolidated IFRS results for the half year ending 30 June 2017.

1H 2017 Financial Highlights:

  • Total sales grew 16.7% to RUB 163.5bn (1H 2016: RUB 140.1bn);
  • Adjusted EBITDA1 of RUB 15.6bn, up 14.2% (1H 2016: RUB 13.7bn) with a margin of 9.6% (1H 2016: 9.8%);
  • Gross margin of 21.7% (-0.15 p.p vs. 1H 2016) decreased as better supplier terms, supply chain improvements, shrinkage and more efficient in-store production were offset by investments in prices and a one-off effect of around Rub 0.9bn as a result of the new Trade Law;
  • SG&A rose to 15.9% of sales (+0.4 p.p vs. 1H 2016) despite continuing successful productivity measures in the like-for-like stores, due to combined effects of the high number of new stores in the ramp-up phase, rise in depreciation and increases in utility and communal costs;
  • Capital expenditures of RUB 10.0bn, a decrease of 38.3% compared to 1H 2016 (RUB 16.1bn) linked to lower investments in land acquisition and hypermarket construction;
  • Net cash generated from operating activities, before net interest and income taxes paid, of RUB 7.3bn compared to RUB 7.2bn in 1H 2016 (an increase of 1.7%);
  • Net interest expenses of RUB 5.4bn, an increase of 21.3% compared to 1H 2016 (RUB 4.5bn) primarily due to higher amount of borrowings not compensated by lower cost of debt;
  • Net Profit2 of RUB 4.5bn, up 3.8% (1H 2016: RUB 4.3bn) with a margin of 2.7%; and
  • Net Debt of RUB 98.3bn as of 30 June 2017 (Net debt/Adjusted EBITDA of 2.9x).

1H 2017 Operational Highlights:

  • Four hypermarkets and 11 supermarkets opened during the first half of 2017;
  • Total store count reached 254 stores as at 30 June 2017, comprising 195 hypermarkets and 59 supermarkets;
  • Total selling space increased to 1,173,416 sq.m as at 30 June 2017 (+27.1% vs. 30 June 2016);
  • Like-for-like (“LFL”)3 sales growth of (1.8%) vs 1H 2016;
  • LFL average ticket increased by 0.6%;
  • LFL traffic growth of (2.4%);
  • Number of active loyalty cardholders4 increased to 11.5m (+23% y-o-y) with approximately 94% of transactions in the second quarter made using the loyalty card.

Material events during and after the reported period:

  • In May Lenta completed placement of Rub 5.0bn 3-years bonds with semi-annual coupon and an interest rate of 8.7%;
  • The Company issued 98,217 new ordinary shares (491,085 GDRs) under Management Incentive Program (MIP) and Long-Term Incentive Program (LTIP)5. As a result share capital increased to 97,416,963 shares (487,084,815 GDRs);
  • Lenta signed an agreement to lease 14 hypermarkets in Moscow and Russian regions currently operated under the NASH brand; and
  • Analytical credit rating agency (ACRA) assigned Lenta a rating of A+ (RUB). The outlook on the rating is “Stable”.

Lenta’s Chief Executive Officer, Jan Dunning said:
“Lenta’s results demonstrate the Company’s ability to combine strong profitability with rapid growth despite the challenging macro and consumer environment. We adapted well to recent regulatory changes and managed to achieve an improvement of underlying profitability and cash generation, excluding the one-off effects of the new Trade Law.

We have made good progress in developing our organic pipeline and also signed an agreement to lease 14 former ‘Nash’ hypermarkets, including 7 hypermarkets in Moscow. This will significantly strengthen our position in the strategic Moscow market and is complimentary for our expansion in other regions. As a result we have upgraded our store opening guidance to about 40 hypermarkets in 2017 while adjusting our opening schedule which enables the larger number of new hypermarkets without increasing capex guidance for the year”.

1 Adjusted EBITDA is reported EBITDA as set out in Note 3 of the IFRS financial statements adjusted for non-recurring one-off items such as changes in accounting estimates and one-off non-operating costs and income
2 Net Profit equates to “Profit for the period” in the attached IFRS Financial Statements
3 Lenta’s stores are included in the LFL store base starting 12 months after the end of the month they are opened
4 Cardholders who made at least 2 purchases at Lenta during the 12 months to 30 June 2017 are considered active
5 31,744 shares (158,720 GDRs) under LTIP are held as treasury shares

Source: Lenta

Lenta to announce its 1H 2017 financial results on 30th August 2017

St-Petersburg, Russia, 2017-Aug-23 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA) (“Lenta”), one of the largest retail chains in Russia, is pleased to announce it will release its reviewed IFRS financial results for the first half-year of 2017 on 30th August 2017. Lenta will also host an Analyst and Investor Conference Call on the same day to discuss the results.

Conference call details:

Date: Wednesday, 30th August 2017

Time: 17:00 (Moscow time), 15:00 (UK time), 10:00 (EST)

Speakers:
Jan Dunning, Chief Executive Officer
Jago Lemmens, Chief Financial Officer
Albert Avetikov, Director for Investor Relations

To participate in the conference call, please dial:

Russia

  • +7 495 213 1767 (Local access)

UK

  • +44 (0)330 336 9105 (Local access)
  • 0800 358 6377 (Toll free)

USA

  • +1 719-325-4756 (Local access)
  • 800-598-5161 (Toll free)

Conference ID: 9007528 or quote the conference call title: “Lenta’s financial results for the half year ended 30 June 2017”

The reviewed IFRS financial results for the first half-year ended 30 June 2017, press release and respective presentation will be published at 10:00 am Moscow time (08:00 am UK time) and will be available at www.lentainvestor.com

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 195 hypermarkets in 78 cities across Russia and 60 supermarkets in Moscow, St. Petersburg, Novosibirsk and the Central region with a total of approximately 1,173,831 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres
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 45,689 people as of 31 December 2016.

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 TPG Capital, the European Bank for Reconstruction and Development, all of whom are 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’.

For further information please visit www.lentainvestor.com.

Contact:

Lenta
Albert Avetikov
Director for Investor Relations
+7 812 363 28 44
Albert.Avetikov@lenta.com

FTI Consulting
Russian Media:
Anton Karpov and Victoria Afonina
Тel:+7 495 795 06 23
lenta@FTIconsulting.com

Source: Lenta

Lenta signs agreements with MCapital and OTZR for long-term leases of hypermarkets operated under the NASH brand

St. Petersburg, Russia, 2017-Jul-31 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”), one of the largest retail chains in Russia, is pleased to announce signing of agreements with MCapital and OTZR for long-term leases of hypermarkets in Moscow and Russian regions, currently operated under the NASH brand.

Assets
The agreements contemplate a 15-year arrangement for 14 hypermarkets in Moscow and the Russian regions, currently operated under the NASH brand with the total selling space of approximately 78,400 sq.m. This includes seven hypermarkets with total selling space of around 43,600 sq.m located in Moscow and another seven hypermarkets with total selling space of around 34,800 sq.m located in the Moscow region, Nizhniy Novgorod, Chelyabinsk, Perm, Ryazan, Yaroslavl and Rostov-on-Don. The average size of the stores is around 5,600 sq.m of selling space. The stores are compatible in terms of size and layout with existing Lenta standard, compact and supercompact hypermarket formats, and locations are complementary to Lenta’s existing stores.

Lenta’s Chief Executive Officer, Jan Dunning said:
“We are very pleased to have reached agreement with MCapital and OTZR based on a partnership approach, beneficial to both parties, to lease hypermarket locations in Moscow and the regions to Lenta. While Lenta remains primarily focused on its organic expansion, we continue to pursue strategic opportunities in parallel.

The stores all have good urban locations and complement Lenta’s existing network. The hypermarkets have well-trained personnel, so Lenta looks forward to welcoming NASH store employees into its family. As part of the transaction Lenta will also acquire the existing store equipment.

We have a very strong track record of successful integration and are confident this deal will significantly strengthen Lenta’s network in Moscow, where we currently operate 13 hypermarkets, and will complement our offering in each of the other regions. Upon the completion of integration, the stores will operate under the Lenta brand.”

Approvals and integration
The agreements have been approved by the Lenta Board, no further internal approvals are necessary. The transaction does not require any regulatory approvals.

The Company intends to invest in renovation of the sites to match Lenta’s standards and offer customers the high quality shopping experience they expect from Lenta. All the stores will be closed for renovation for a short period, then re-opened under the Lenta brand. The openings under the Lenta brand are planned to be completed within approximately two months.

Lenta will provide more details and revised store opening guidance at a later stage.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2016 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 195 hypermarkets in 78 cities across Russia and 59 supermarkets in Moscow, St. Petersburg, Novosibirsk and the Central region with a total of approximately 1,173,416 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 45,689 people as of 31 December 2016.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

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 at the date of this announcement. Save 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.

For further information please visit www.lentainvestor.com

Contact:

Lenta
Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

FTI Consulting 
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

FTI Consulting 
International Media: 
Leonid Fink & Jenny Payne
Тel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com
Jenny.Payne@fticonsulting.com

Source: Lenta

Lenta reports of total sales grew 16.3% in 2Q 2017 to Rub 85.6bn

Lenta sales and operating highlights for the second quarter ended 30 une 2016

St-Petersburg, Russia, 2017-Jul-20 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”) one of the largest retail chains in Russia, is pleased to announce the Company’s consolidated sales and operating results for the second quarter ended 30 June 2017.

2Q 2017 Operating Highlights:

  • Total sales grew 16.3% in 2Q 2017 to Rub 85.6bn (2Q 2016: Rub 73.6bn);
  • Like-for-like (“LFL”)1 sales growth of (2.0%) vs. 2Q 2016;
  • LFL traffic growth of (2.9%) combined with a 0.9% increase in LFL ticket;
  • Seven supermarkets opened during the second quarter of 2017;
  • Total store count reached 254 stores as at 30 June 2017, comprising 195 hypermarkets and 59 supermarkets;
  • Total selling space increased to 1,173,416 sq.m as at 30 June 2017 (+27.1% vs. 30 June 2016); and
  • Number of active loyalty cardholders2 increased to 11.5m (+23% y-o-y) with approximately 94% of transactions in the second quarter made using the loyalty card.

1H 2017 Operating Highlights:

  • Total sales grew 16.7% in 1H 2017 to Rub 163.5bn (1H 2016: Rub 140.1bn);
  • LFL sales growth of (1.8%) vs. 1H 2016;
  • LFL traffic growth of (2.4%) combined with a 0.6% increase in LFL ticket;
  • Lenta started expansion of its supermarket format in Novosibirsk with three stores opened in 1H 2017; and
  • Four new hypermarkets and 11 supermarkets were opened during 1H 2017 while one supermarket was closed.

Material events in 2Q 2017 and after the reported period:

  • Lenta completed placement of Rub 5.0bn 3-years bonds with semi-annual coupon and an interest rate of 8.7%;
  • Lenta issued 98,217 new ordinary shares (491,085 GDRs) under Management Incentive Program (MIP) and Long-Term Incentive Program (LTIP)3. As a result share capital increased to 97,416,963 shares (487,084,815 GDRs);

Lenta’s Chief Executive Officer, Jan Dunning commented:
“Lenta continues to deliver rapid growth, with sales up by 16.3% in the second quarter of 2017 despite the challenging macro environment. Although growth in the reported quarter was slightly below the first quarter of this year we are encouraged by recent trends – after disappointing trading in April which was impacted by abnormally cold weather, growth in May was in line with the quarterly average while June results were very strong with a return positive LFL sales growth which has continued into July.

While Lenta continued gaining new customers ahead of sales, rapid expansion in the cities with existing presence resulted in higher cannibalization effects. These effects were especially visible in St. Petersburg due to the acquisition of Kesko’s food retail business in late 2016. We are very happy with the performance of our new ex-Kesko stores – ramp-up is accelerating, reaching over 30% same-store sales growth in June4, a clear demonstration of the attractiveness of Lenta’s customer proposition. Of course, this growth also put additional pressure on our other stores in the region.

During the quarter the team launched several new initiatives to stimulate sales, including improvements in marketing and communications, category management and our loyalty program. We are pleased with the impact of these efforts, which helped deliver LFL sales growth in June back into positive territory and we hope to continue this momentum in the second half of the year.”

Lenta Store Developments

In the second quarter of 2017, Lenta opened seven supermarkets: three leased supermarkets in Moscow, three leased stores in Saint-Petersburg and one owned supermarket store in Novosibirsk. Total number of stores reached 254 (195 hypermarkets and 59 supermarkets).

In the reported quarter Lenta added 5,815 sq.m of net selling space. Total selling space as at 30 June 2017 increased to 1,173,416 sq.m, up 27.1% year-on-year.

1 Lenta’s stores are included in the LFL store base starting 12 months after the end of the month in which they are opened
2 Cardholders who made at least 2 purchases at Lenta during the 12 months to 30 June 2017 are considered active
3 31,744 shares (158,720 GDRs) under LTIP are held as treasury shares
4 The stores acquired from Kesko are not included in Lenta’s LFL panel. Calculation of same-store sales is made based on the period when the stores were owned by Kesko.

Contact:

T: +7 (812) 380-61-31
F: +7 (812) 380-61-50

Source:: Lenta

Russia: Lenta 1Q2017: total sales grew 17.2%

St-Petersburg, Russia, 2017-Apr-21 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”) one of the largest retail chains in Russia, is pleased to announce the Company’s consolidated sales and operating results for the first quarter ended 31 March 2017.

To download the full press release, please click here

1Q 2017 Operating Highlights:

• Total sales grew 17.2% in 1Q 2017 to Rub 77.9bn (1Q 2016: Rub 66.5bn);
• Like-for-like (“LFL”)1 sales growth of (1.7%) vs. 1Q 2016;
• LFL traffic growth of (2.0%) combined with a 0.3% increase in LFL ticket;
• Four new hypermarkets and four supermarkets opened during the first quarter of 2017 while one supermarket was closed;
• Total store count reached 247 stores as at 31 March 2017, comprising 195 hypermarkets and 52 supermarkets;
• Total selling space increased to 1,167,601 sq.m. as at 31 March 2017 (+30.3% vs. 31 March 2016); and
• Number of active loyalty cardholders2 increased to 11.1m (+25% y-o-y) with approximately 93% of transactions in the first quarter made using the loyalty card.

Material events in 1Q 2017 and after the reported period:
• The Company signed lease contracts with the ADG Group real estate development company to open 36 supermarkets (approx. 47,000 sq.m of total space and 30,300 sq.m of selling space) in Moscow shopping and entertainment centers in 2018-2019; and
• Lenta started expansion of its supermarket format in Novosibirsk with two stores opened in 1Q 2017.

Lenta’s Chief Executive Officer, Jan Dunning commented:

“The macro and consumer environment for food retail remained challenging in the first quarter of 2017. While Lenta stores continue to win customers from competitors, sales growth came under pressure due to a combination of falling inflation, changes in customer behaviour, one day less in February and our own rapid expansion which resulted in expected higher cannibalization effects. We hope to see some improvement in the environment later in the year and are putting sales initiatives in place to capitalize on this to deliver a pick-up in sales growth.

Customer numbers are running ahead of sales growth in both new and LFL stores, but as expected, cannibalization effects increased due to our rapid expansion in cities with existing Lenta presence. Consumers continued trading up in our stores for the second consecutive quarter, but this was offset by historically low on-shelf inflation and lower volume as customers reduced their food spending to compensate for pressure on their budgets. We see some stabilization of customer’s promo sensitivity, supported by the attractiveness of Lenta’s offering and low inflation. Visit frequency declined across much of the food retail sector – Lenta traffic improved compared to the previous quarter, but still remained in a negative territory.

We continue rolling-out new supermarkets in Moscow, St.Petersburg and the Central region3 and, as planned, started expanding the format in Siberia with two successful store openings in Novosibirsk. Our store opening guidance for 2017 and our long-term growth targets are unchanged, but we have decided to shift some store openings planned for 2018 into the second half of the same year which in combination with more predictable and efficient construction cycles will enable us to reduce capital expenditure in 2017. This will result in reduced leverage and provide more financial flexibility in case small acquisition opportunities appear in the future.”

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2016 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 195 hypermarkets in 78 cities across Russia and 53 supermarkets in Moscow, St. Petersburg, Novosibirsk and the Central region with a total of approximately 1,168,324 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,700 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 45,689 people as of 31 December 2016.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit http://www.lentainvestor.com/en/ or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel: +7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

FTI Consulting
Leonid Fink
Tel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com

Jenny Payne
Tel: +44 20 3727 1000
E-mail: Jenny.Payne@fticonsulting.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”, 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 at the date of this announcement. Save 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.

To view the full press release, please click here

1 Lenta’s stores are included in the LFL store base starting 12 months after the end of the month in which they are opened
2 Cardholders who made at least 2 purchases at Lenta during the 12 months to 31 March 2017 are considered active
3 The Company has included three supermarkets located in the Kaluzhskaya oblast in the Central region

SOURCE: Lenta

RUSSIA: Lenta announces the opening of its first supermarket in Novosibirsk

St. Petersburg, Russia, 2017-Feb-22 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the opening of its first supermarket in Novosibirsk.

The new store is a Lenta large format supermarket located in Amsterdam shopping centre at 4/1 Geodezicheskaya str., Novosibirsk. The store has a total area of 1,577 sq.m with 959 sq.m of selling space and is open from 8.00 am till 11.00 pm, seven days a week. A broad product assortment of 6,900 SKUs has been selected specifically for residents of Novosibirsk and includes Lenta’s private labels and federal product ranges alongside local produce. The store has 8 cash registers. The property is owned by Lenta.

This opening in Novosibirsk is Lenta’s first supermarket opening in 2017 and brings the total number of Lenta stores to 193 hypermarkets in 78 cities across Russia and 50 supermarkets in Moscow, St. Petersburg, Novosibirsk and the Central region.

Lenta’s Chief Executive Officer, Jan Dunning said:
“Our choice of Novosibirsk to launch our first supermarket outside Moscow and St. Petersburg was well justified. Novosibirsk is where Lenta opened its first hypermarket outside St Petersburg back in 2006. Today we successfully operate seven Lenta hypermarkets in Novosibirsk, enjoying high brand recognition and loyalty among city residents. We see significant growth potential in the Novosibirsk market and plan to open several more supermarkets in the city before the end of the year. These new supermarket launches will further strengthen our position in the region and set the stage for our rapid expansion of this format into other cities across Russia’.”

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 193 hypermarkets in 78 cities across Russia and 50 supermarkets in Moscow, St. Petersburg, Novosibirsk and the Central region with a total of approximately 1,156,885 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,800 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.

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 45,689 people as of 31 December 20161.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com

Contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

FTI Consulting
International Media:
Leonid Fink & Jenny Payne
Тel: +44 7497 783 705
E-mail: Leonid.Fink@fticonsulting.com
Jenny.Payne@fticonsulting.com

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Lenta Ltd announces consolidated sales and operating results for 4Q and full year 2016

St-Petersburg, Russia, 2017-Jan-26 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”) one of the largest retail chains in Russia, is pleased to announce the Company’s consolidated sales and operating results for the fourth quarter and twelve months ended 31 December 2016.

4Q 2016 Operating Highlights:

• Total sales grew 20.9% in 4Q 2016 to Rub 90.8bn (4Q 2015: Rub 75.1bn);
• Like-for-like (“LFL”) 1 sales growth of 1.7% vs. 4Q 2015;
• LFL traffic growth of (3.9%) combined with a 5.9% increase in LFL ticket;
• 36 hypermarkets and seven supermarkets opened during the fourth quarter of 2016;
• Total store count reached 240 stores as at 31 December 2016, comprising 191 hypermarkets and 49 supermarkets;
• Total selling space increased to 1,146,148 sq.m. as at 31 December 2016 2 (+29.9% vs. 31 December 2015); and
• Number of active loyalty cardholders 3 increased to 10.5m (+25% y-o-y) with approximately 93% of transactions in the fourth quarter made using the loyalty card.

FY 2016 Operating Highlights:
• Total sales grew 21.2% in FY 2016 to Rub 306.4bn (FY 2015: Rub 252.8bn);
• LFL sales growth of 3.9% vs. FY 2015;
• LFL traffic growth of (0.1%) combined with a 4.0% increase in LFL ticket;
• 51 hypermarket and 17 supermarket net openings 4 during FY 2016.

Material events in 4Q 2016 and after the reported period:
• Lenta exceeded its goal to double total selling space in three years, achieving one of the most important strategic targets established at its IPO in March 2014;
• Lenta achieved the milestone of 10 million active loyalty cardholders;
• The company completed acquisition of the Kesko food retail business in Russia, consisting of 11 hypermarkets;
• Lenta opened its seventh own distribution centre in Moscow, dedicated to its supermarket format;
• The Company signed lease contracts with the ADG Group real estate development company to open 36 supermarkets (approx. 47,000 sq.m of total space and 30,300 sq.m of selling space) in Moscow shopping and entertainment centers in 2018-2019;
• Lenta signed an agreement to acquire eight properties in Novosibirsk which are planned for use as Lenta supermarkets; and
• Lenta entered a partnership with Eurotorg, a leading Belarus retailer, to explore the potential for joint procurement opportunities for both food and non-food categories.

Lenta’s Chief Executive Officer, Jan Dunning commented:

“We are very pleased with the results of the fourth quarter – Lenta sales growth increased to 21% while we also opened a record number of new stores, completed the acquisition of Kesko’s food retail business and exceeded our strategic goal of doubling selling space in the 3 years to December 2016.

Lenta opened a record of 36 hypermarkets in the fourth quarter alone – more than we opened in the full year of 2015. The company completed 51 net hypermarket openings and entered eight new cities during the year. A key focus of our strategy is to strengthen our position in Russia’s largest cities and in existing cities of presence – we opened 35 new stores in cities with over 1 million inhabitants and are now present in all 15 of these cities. Almost 80% of new selling space was opened in cities where Lenta is already present – while this leads to pressure on traffic in nearby existing stores, this effect is far outweighed by the long term advantages of being closer to customers with a stronger market position. We will continue to focus most new hypermarket openings on existing cities of presence in 2017.

In December, Lenta successfully completed the largest acquisition in the Company’s history – the purchase of the Kesko food retail business in Russia comprising 11 hypermarkets in Saint-Petersburg. The Kesko stores were integrated then reopened as Lenta stores in only six days, and initial trading results have exceeded our expectations.

Our stores continued rapidly gaining new unique customers from competitors, with customer numbers running ahead of sales growth. The share of loyal customers in both new and LFL stores remained stable, proving the attractiveness of our commercial offer. As expected, cannibalization effects increased due to our rapid expansion in cities with existing Lenta presence – this was especially noticeable in the fourth quarter when we opened two-thirds of the total space added during 2016. For the first time since 2014, customers traded up and bought higher volumes per visit than in the previous year. Like-for-like sales growth of 2% was the net result of growth in the number of customers and a 6% increase in average like-for-like ticket compensating for lower visit frequency, which declined across much of the food retail sector. The consumer environment remains volatile – we already see some trends changing again in January 2017, with same-store traffic returning to positive growth.

We continue rolling-out new supermarkets in Moscow, St.Petersburg and the Central region and in the last year we doubled the number of store openings in these regions. We plan to significantly accelerate expansion of this format in existing and new regions in 2017. The agreement recently signed with ADG will allow us to reach well over 100 supermarkets in Moscow within the next three years or so.”

About Lenta
• Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 191 hypermarkets in 77 cities across Russia and 49 supermarkets in Moscow, St. Petersburg and the Central region with a total of approximately 1,146,148 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,800 sq.m. The average Lenta supermarket store has selling space of approximately 900 sq.m. The Company operates seven owned distribution centres.
• 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 45,689 people as of 31 December 2016 9.
• 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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

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 at the date of this announcement. Save 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.

To view the full press release, please click here

1 Lenta’s stores are included in the LFL store base starting 12 months after the end of the month in which they are opened

2 After the adjustments to reported selling space and store network described below

3 Cardholders who made at least 2 purchases at Lenta during the 12 months to 31 December 2016 are considered active

4 In March 2016 the Company closed one leased standard hypermarket in Novokuznetsk with selling space of 7,700 sq.m. The company has reclassified one of the purchased Kesko stores in Saint-Petersburg with a selling space of 1,520 sq.m from supermarket to hypermarket

9 FTE (full-time equivalent). Average FTE for 2016 was 35,677 employees

For further information please visit www.lentainvestor.com/en/

Contact:

Anna Meleshina
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

FTI Consulting
Leonid Fink
+44 7497 783 705
Leonid.Fink@fticonsulting.com

Jenny Payne
+44 20 3727 1000
Jenny.Payne@fticonsulting.com

Source: Lenta

Lenta Ltd. to release its sales and operating results for 4Q and full year of 2016 on 26th January 2017

St-Petersburg, Russia, 2017-Jan-24 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA) (“Lenta”), one of the largest retail chains in Russia, is pleased to announce it will release its consolidated sales and operating results for the fourth quarter and full year of 2016 on 26th January 2017. Lenta will also host an Analyst and Investor Conference Call on the same day to discuss the results.

Conference call details:

Date: Thursday, 26th January 2017

Time: 17:00 (Moscow time), 14:00 (UK time), 09:00 (EST)

Speakers:
Jan Dunning, Chief Executive Officer
Jago Lemmens, Chief Financial Officer
Albert Avetikov, Director for Investor Relations

To participate in the conference call, please dial:

Russia

  • +7 495 213 1767

UK

  • +44 330 336 9105 (local access)
  • 0800 358 6377 (toll free)

USA

  • +1 719 457 2086 (local access)
  • 800 274 0251 (toll free)

Conference ID: 7854062 or quote the conference call title: “Lenta Ltd. 4Q and FY 2016 Operational results”

The consolidated sales and operating results for the fourth quarter and full year ended 31 December 2016 and the respective presentation will be published at 10:00am Moscow time (07:00am UK time) and will be available at: www.lentainvestor.com

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 190 hypermarkets in 771 cities across Russia and 50 supermarkets in Moscow, St. Petersburg and the Central region with a total of approximately 1,146,542 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,800 sq.m. The Company operates five owned hypermarket distribution centres.

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 38,414 people as of 31st December 20152.

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 TPG Capital, the European Bank for Reconstruction and Development, all of whom are 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 can be seen here.

1 According to Lenta’s methodology for calculating number of cities of presence, since 1 May 2015 all cities located in Moscow City and the Moscow region are shown as Moscow, and all cities located in the Leningrad region and St. Petersburg are shown as St. Petersburg.

2 FTE (full-time equivalent). Average FTE for 2015 was 31,307 employees.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Albert Avetikov
Director for Investor Relations
+7 812 363 28 44
Albert.Avetikov@lenta.com

Citigate
International Media:
David Westover and Marina Zakharova
Тel: +44 207 282 2886
lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov and Victoria Afonina
Тel:+7 495 795 06 23
lenta@FTIconsulting.com

Source: Lenta

Lenta signs agreements with ADG Group for 36 locations of future Lenta supermarkets in Moscow

St. Petersburg, Russia, 2017-Jan-24 — /EPR Retail News/ — Lenta, (LSE, MOEX:LNTA) one of the largest retail chains in Russia, has signed lease contracts with Edisonenergo LLC, part of the ADG Group real estate development company, who are building a network of neighborhood shopping and entertainment centers across Moscow’s residential areas.

The agreements cover 36 locations for future Lenta supermarkets in Moscow shopping and entertainment centers currently under construction. All the centers are to be reconstructed on the sites of former Moscow cinemas. Each center will have an individual architectural style while delivering the concept of the project as a whole.

Attractively located in the middle of high traffic residential areas, the neighborhood shopping and entertainment centers are intended to meet the daily shopping and leisure needs of local residents. Each center will be a multi-functional space providing a wide range of consumer outlets, entertainment, and essential services, including social, cultural, and educational facilities which will draw citizens to visit them frequently.

A total of around 47,000 square meters will be leased by Lenta under ruble denominated 15 year contracts. All the rented areas conform to the specifications of Lenta’s ‘supermarket’ format, with each store’s total space varying from 740 sq m to 1,800 sq m.

The first supermarkets are scheduled to start operations in the end of 2018 with the remainder opening in 2019.

Jan Dunning, CEO of Lenta said: “Customer reaction to Lenta’s supermarket concept has been very positive since the first store was opened in Moscow in 2013 and we are pleased with the performance of our 36 existing stores in the city. We are accelerating growth in this format and this important agreement with ADG supports our strategy by adding a further 36 stores in attractive high traffic sites. We have a strong pipeline and will continue to add stores through our normal development process, giving us the potential to reach well over 100 supermarkets in Moscow within the next three years or so.”

Grigory Pechersky, Managing Director of ADG Group said: “We are offering our business partner an efficient and scalable way to expand its network across Moscow.  The main feature of our project is that we put hospitality and customer service before concrete and square footage aiming to become the leader of the local district neighborhood.

We are confident that people living close to our center will be visiting it two or three times a week.  Moreover, the exceptionally favorable locations and the use of advanced technologies and flexible formats make us uniquely positioned to be the first in the market to offer access to a loyal customer base of 2.5 million people residing within 15 minutes walking distance.  We will provide not just a shopping experience venue – we will become an integral part of our customers’ lives.”

Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 190 hypermarkets in 77 cities across Russia and 50 supermarkets in Moscow, St. Petersburg and the Central region with a total of approximately 1,146,542 sq m of selling space. The average Lenta hypermarket store has selling space of approximately 5,800 sq m. The average Lenta supermarket store has selling space of approximately 1,000 sq m. The Company operates seven owned distribution centres.

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 34,134 people as of 30 June 2016 1.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.
For further information please visit www.lentainvestor.com,

Contact:

Lenta
Anna Meleshina
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

FTI Consulting
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

About ADG Group
ADG Group is a pioneering urban developer whose mission is to better serve the new expectations of modern Moscow. The company was founded in 2003 with the single-minded vision of expanding the major regional centres of Russia. By 2009, ADG Group’s portfolio of projects covered over 1 million square metres with successfully implemented projects right across the country, from Kaliningrad to Novosibirsk.

In December 2014 ADG Group won the Moscow Government auction for purchasing 39 Moscow obsolete movie theaters. Rebuilding work is starting in winter 2017, and the opening of the first Neighborhood centers is planned for 2018. The project mission is to restore in Moscow residential areas spaces for meeting with families and friends, shopping and entertainment.

The total GBA of 39 objects is 470,000 sq. m. After complete Neighborhood centers commissioning in 2019 ADG Group will become the Moscow’s largest commercial real estate owner by number of objects.

For further information about ADG Group please visit www.adggroup.ru,

Contact:

Dmitriy Yurtsvayg
Marketing Director
Tel: +7 (985) 920 29 96
E-mail: d.yurtsvayg@adggroup.ru

1 FTE (full-time equivalent). Average FTE for 1H 2016 was 33,758 employees

Source: Lenta

Lenta announces partnership with Belarusian food retailer Eurotorg LLC

St. Petersburg, Russia, 2016-Dec-29 — /EPR Retail News/ — Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, and Eurotorg LLC (Euroopt retail chain), the Belarusian food retailer, are pleased to announce that they have signed an agreement of intent.

Under the agreement, the companies will explore the potential for joint procurement opportunities for both food and non-food categories. Lenta and Euroopt will share information about suppliers and run joint procurement programmes where appropriate.

The scope of the agreement also includes private label product ranges. Cooperation could include both supply of Lenta’s private label products to Euroopt and adding private label products developed by Euroopt to the Lenta range.

The companies also agreed to jointly develop marketing concepts and innovative product ranges.

Lenta’s Chief Executive Officer Jan Dunning said:
“We are excited to start a partnership with Euroopt, one of the largest Belarusian retailers. We see Euroopt as our strategic partner and look forward to running collaborative projects which will enable more efficient procurement by both companies and give an additional impetus to the development of Russian and Belarusian producers. This is a pioneering relationship in the CIS markets, although we see numerous examples of such partnerships elsewhere. With the help of our recently introduced strategic procurement division we will be among the first in the market to tap the potential of international partnerships to cement our position locally.”

Andrey Zubkov, Chairman of the Board at Eurotorg LLC said:
“Our partnership with the federal retail chain Lenta is definitely a major milestone both for our company and for Belarus in general, as this collaboration will enable our suppliers, Belarus producers, to boost their exports to Russia. By joining our procurement efforts, we expect to be able to negotiate more attractive prices and pass on these benefits to our customers, thus providing social support. We highly value the professional expertise of our partners and hope that knowledge and best practice sharing will drive the technology edge of our business and boost our performance. We are confident that this strategic partnership will set an excellent example of effective collaboration between like-minded business teams, highlighting the friendly ties between the markets of Russia and Belarus.”

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 189 hypermarkets in 77 cities across Russia and 47 supermarkets in Moscow, St. Petersburg and the Central region with a total of approximately 1,138,609 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,800 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates seven owned distribution centres.

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 34,134 people as of 30 June 20161.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com.

Contact:

Lenta
Anna Meleshina
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

RUSSIA: Lenta announces the opening of its first hypermarket in Kazan

Lenta expands its network in the Volga region to 31 hypermarkets in 21 cities. With this opening, Lenta is now present in all Russian cities with more than one million inhabitants.

St. Petersburg, Russia, 2016-Dec-05 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the opening of its first hypermarket in Kazan.

The new store is a Lenta supercompact format hypermarket located at 11B Zorge str., Gorki Park shopping center, Kazan. The store has a total area of 5,655 sq.m with 3,248 sq.m of selling space and is open 24 hours, seven days a week. A broad product assortment of 12,000 SKUs has been selected specifically for residents of Kazan and includes Lenta’s private labels and federal product ranges alongside local produce. The store is equipped with 20 cash registers. The shopping center has 942 parking spaces. The property is leased by Lenta.

The opening in Kazan is Lenta’s thirty first hypermarket opening in 2016 and brings the total number of Lenta stores to 170 hypermarkets in 77 cities across Russia and 43 supermarkets in Moscow and St. Petersburg.

Lenta’s Chief Executive Officer, Jan Dunning said:
“We are excited with our first store opening in Kazan, the capital of the Republic of Tatarstan. We continue to advance our growth strategy, opening stores in new cities and building on the success of our expanding network. We have a well-established presence and many loyal customers in Tatarstan, where we already have three hypermarkets in Almetyevsk, Naberezhnye Chelny and Nizhnekamsk, and our new store in Kazan will reinforce our position in this market of nearly four million people.

We will extend our reach to encompass many more customers and will expand our relationships to include more local suppliers to meet our greater purchasing needs. We would like to thank the local authorities for their collaboration and support, which have been essential for our development and expansion in the area.”

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 170 hypermarkets in 77 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 1,047,142 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates seven owned distribution centres.

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 34,134 people as of 30 June 20161.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Lenta announces the completion of purchase of Kesko food retail business in Russia

Lenta completes acquisition of Kesko food retail business in Russia from Kesko

St. Petersburg, Russia, 2016-Dec-01 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the completion of the purchase of the the Kesko food retail business in Russia (“KFR”), currently operating under the K-Ruoka brand, on November 30, 2016.

Assets acquired
The KFR assets consist of 10 hypermarkets and one supermarket operating under the K-Ruoka brand in St. Petersburg and the Leningradskiy region as well as three land plots in Moscow and the Leningradskiy regions. Most of the hypermarkets were opened in 2012-2015 and two stores were opened during 2016. Total selling space of the acquired stores is approximately 42,500 sq.m, of which approximately 40,200 sq.m are owned and approximately 2,300 sq.m are rented. The stores are compatible in terms of size and layout with existing Lenta compact and supercompact hypermarket formats, and almost all of the store locations are highly complementary to Lenta’s existing stores in Saint-Petersburg and the Leningradskiy region. The high proportion of owned stores is in line with Lenta’s store ownership strategy. The KFR business and assets are owned by six legal entities which have been purchased as part of the transaction.

Lenta’s Chief Executive Officer, Jan Dunning said:

“We are very pleased to have completed the acquisition of the Kesko retail business in Russia. The acquisition will significantly strengthen our network in St. Petersburg, giving many more customers the opportunity to shop at a Lenta store close to their homes. Lenta will become the largest hypermarket operator in the city, but we still see good opportunities for further growth in and around St. Petersburg, so will continue our organic expansion in both hypermarket and supermarket formats.

The stores have excellent urban locations and well-trained store teams who we welcome to the Lenta family. We will soon operate the stores under the Lenta brand, with Lenta assortment, supply chain and business processes. We expect the integration process to be largely complete by year-end.

With this acquisition, we now expect to open at least 50 new hypermarkets in 2016. While Lenta remains primarily focused on its successful organic expansion, we welcome opportunities to augment this by acquiring high quality assets such as the Kesko stores. Scale is becoming increasingly important in the Russian market which is likely to lead to consolidation of both larger and smaller players over time. Lenta is well positioned to selectively take advantage of any opportunities that may arise in the future.”

Strategic rationale

  • The acquired stores have a very good fit with Lenta given their high quality, complementary locations; store sizes and designs compatible with the Company’s existing formats; high quality of construction; and well trained and motivated staff. The combination of these factors with Lenta’s well-known brand and attractive consumer proposition is expected to enable rapid and successful integration;
  • The acquisition strengthens Lenta’s market position in St. Petersburg, Russia’s 2nd largest city. Lenta operates 22 hypermarkets and nine supermarkets in the Saint-Petersburg/Leningradskiy region with total selling space of 144k sq.m – approximately 15% of the Company’s total selling space in Russia as of 30 November 2016. The addition of the KFR stores will take Lenta’s total presence in the St. Petersburg/Leningradskiy region to 32 hypermarkets and 10 supermarkets with around 186k sq.m of selling space. The company envisions significant further expansion in the Saint-Petersburg/Leningradskiy region;
  • Given the quality of KFR stores and locations, the acquisition is expected to deliver attractive returns, broadly in line with returns on organic expansion.

Approvals and financing
Approval of the Federal Antimonopoly Service of the Russian Federation (“FAS Russia”) was received during November. The transaction has closed and no further approvals are required. Some administrative actions such as registration of assets and leases and renewal of certain licenses are required and it is expected that these will be largely completed before year end 2016. The transaction was financed using Lenta’s existing cash and a new long-term loan facility with a fixed interest rate below current Central Bank key rate which will lead to further reduction of the Company’s average effective cost of debt.

JP Morgan and VTB Capital acted as advisors to Lenta on this transaction.

Purchase price
The aggregate transaction consideration is Rub 11.4bn, an increase of Rub 0.4bn due to closing adjustments when compared to the aggregate base transaction consideration of Rub 11.0bn given in our earlier announcement. The difference is due to a higher than initially planned amount of cash and cash-like items on the balance sheet at closing. Lenta estimates that the replacement value of the acquired real estate and other fixed assets, positive working capital and other non-fixed assets is approximately equal to the purchase price.

Integration
Integration of KFR with Lenta will begin immediately. Each store will be closed for approximately one week from December 1st, then reopened as a Lenta store. The stores will operate in the same way as other Lenta stores in St. Petersburg under the Lenta brand, with Lenta assortment, supply chain, IT and business processes. Former KFR employees are now Lenta employees. Every effort will be made to minimize disruption for customers and employees during this integration period. Lenta considers the well-trained store staff to be one of the strengths of the business and welcomes them to the Lenta team. No redundancies among store staff are expected. KFR headquarters functions are being integrated into Lenta headquarters. Operationally, the integration is expected to be largely complete by year-end 2016.

Guidance related to the acquisition

  • Sales – the effect of the acquisition on Lenta 2016 sales will not be material (approximately 0.2% of total sales in 2016), given the short period between closing and year end 2016, and closure of the stores during part of this period in December for rebranding and other integration activities. The acquisition is expected to add around 3-4p.p. to Lenta sales growth in 2017 after taking into account minor cannibalization effects. The stores are expected to deliver sales densities at or above Lenta’s average by 2018;
  • EBITDA and Net Income margins – in 2016 EBITDA margin will be negatively impacted by around 0.1p.p. and Net income margin will be impacted by approximately 0.2p.p due to one-off integration/M&A related costs. In 2017 the overall effect on Lenta EBITDA margin and Net income margin is not expected to be material. The stores are expected to deliver margins at or above Lenta’s average by 2018;
  • Capex – the KFR stores are built to high standards and relatively new, so capex costs to rebrand the stores and adapt to Lenta requirements are not expected to be material. In the short term, Lenta will optimize capacity at the existing owned and rented distribution centres in St. Petersburg without significant additional supply chain related capex. In the medium term, some additional supply chain capacity is likely to be added in St. Petersburg to support continued growth in both hypermarkets and supermarkets – options on how best to achieve this are being evaluated. The Company’s new 2016 capex guidance is Rub 55-60bn, including the investment in the acquisition of the KFR stores;
  • Acquisition of KFR will not affect Lenta’s credit rating and was considered as credit positive by Moody’s and Fitch Rating Agencies.

Guidance related to Lenta new store openings

  • New hypermarket opening guidance – the acquisition will be additional to Lenta’s prior guidance of at least 40 new hypermarkets in 2016. Lenta therefore plans to open at least 50 hypermarkets in 2016, inclusive of the acquired KFR stores. If the number of store openings in 2016 significantly exceeds this new guidance, the Company may adjust the pipeline for 2017 while still delivering a total of at least 90 hypermarket openings in 2016-2017;
  • New supermarket opening guidance – the acquisition does not affect prior supermarket opening guidance.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 169 hypermarkets in 76 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 1,043,894 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.

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 34,134 people as of 30 June 20161.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover and Marina Zakharova
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Lenta achieves objective to double selling space ahead of schedule

The company has achieved its objective, set three years ago at IPO 

St. Petersburg, Russia, 2016-Nov-26 — /EPR Retail News/ — Lenta Ltd (LSE, MOEX: LNTA), one of the largest retail chains in Russia, is pleased to announce the early achievement of its strategic objective to double selling space before the end of 2016.

Lenta has doubled its total selling space to 1,019,968 sq.m, achieving one of the most important strategic targets established at its IPO in March 2014.

Lenta is Russia’s fastest growing hypermarket operator and became the country’s largest hypermarket chain measured by selling space in 2015. During the first 9 months of 2016, Lenta opened over 60% of the net selling space added in the hypermarket segment by the Top-150 retailers, up from 35% in 20151. Today Lenta accounts for approximately 20% of all hypermarket selling space in Russia2.

Lenta has opened 87 hypermarkets since the beginning of 2014. During this period the company has entered 30 new cities while also strengthening its position in the 45 cities where it was already present. Lenta now has hypermarkets in 32 of the 36 Russian cities with a population above 500,000 and expects to be present in all cities with a population above one million before the end of 2016.

The company expects to open at least 26 more hypermarkets before the end of 2016, including 10 stores through the acquisition of Kesko’s food retail business in Russia, which is projected to be completed on 30th November, 2016.

In addition to hypermarkets, Lenta is also rapidly developing its supermarket format. The first pilot supermarket store was opened in Moscow in 2013 – since then the company has opened 43 stores, including 33 stores since its IPO in 2014. Lenta expanded its supermarket business to St Petersburg in 2015 and will open its first supermarkets in Siberia within the next few months. The company plans to open at least twice as many supermarkets this year as in 2015 and to significantly accelerate this rate of openings in 2017.

Lenta has also invested in its distribution network, opening new distribution centres in Moscow, Yekaterinburg, Rostov-on-Don and Tolyatti during the last 3 years. Lenta’s supply chain network now has the capacity to serve over 250 hypermarkets and 250 supermarkets, providing a strong foundation for future growth.

Total capital investment by Lenta in the 3 year period 2014-16 is expected to exceed RUB 120 billion3. Lenta’s robust low price-low cost business model has enabled the company to increase its rate of investment in 2016 despite the challenging economic environment. In addition to providing 12,0004 new jobs directly since its IPO, Lenta’s continued expansion supports many more jobs among its local suppliers and in the construction industry at a time when employment and incomes in the wider economy are under pressure.

Lenta’s Chief Executive Officer, Jan Dunning commented: “At the beginning of 2014, we set ourselves the goal of doubling retail space within three years. Many felt that this target was too ambitious, but we were completely confident because we had a clear understanding of how to achieve it. For us, it is important to deliver not just rapid growth, but successful growth – successful for our customers, business partners and shareholders. In the context of such rapid expansion, we continue to be one of the most efficient food retailers in Russia and aim to retain this position.

In 2012, just over a year before our IPO, Lenta was Russia’s seventh largest retailer in terms of total sales – since then, our expansion enabled us to become the fourth largest retailer in terms of total sales in the third quarter of 20165. We have also become Russia’s largest hypermarket operator in terms of selling space, up from third place at the time of our IPO.

The Russian retail market presents the most efficient operators with huge potential for future growth combined with attractive returns. In early 2017 we will present a new long-term strategy, in which we will explain our plans to enable Lenta to realize its full market potential”.

In February 2017, after the announcement of the 2016 full year financial results, Lenta intends to hold a strategy presentation open to all investors, at which the company will set out its new long-term goals.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 165 hypermarkets in 75 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 1,019,968 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates seven owned distribution centres.

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 34,134 people as of 30 June 20166.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

1 Lenta share of net selling space added in hypermarket segment in 2015 and 2016 derived from Infoline data.
2 Based on Infoline data.
3 Based on the guidance of RUB 45-50 billion for 2016, adjusted upward for the acquisition of Kesko’s food retail business in Russia.
4 Calculated as the increase in the number of FTE (full time equivalent) employees between February 28, 2014 and October 30, 2016.
5  Based on public data on total quarterly sales in the third quarter of 2016.
6 FTE (full-time equivalent). Average FTE for 1H 2016 was 33,758 employees.

Contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Lenta announces the opening of its seventh own distribution centre located at Chekhov district, Moscow

St. Petersburg, Russia, 2016-Nov-17 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, is pleased to announce the opening of its seventh own distribution centre.

The new distribution centre will exclusively serve supermarkets in the Moscow and Central regions. The distribution centre is located at 3 Leshino industrial zone, Chekhov district, Moscow Region, with a total space of 31,600 sq.m. It has the capacity to serve over 150 supermarkets. The distribution centre is owned by Lenta.

The new distribution centre will help to realise operational efficiencies while adding capacity to support further development of supermarkets in the Moscow and Central regions.  Importantly, the hypermarket distribution centre which served Lenta’s Moscow supermarkets prior to this opening will now focus exclusively in serving hypermarkets in the region. This specialisation will increase the efficiency of Lenta’s hypermarket supply chain, with further improvements to come due to volume growth as a result of the continuing programme of hypermarket expansion in the Moscow and Central regions.

The total capital investment in the new distribution centre is approximately RUB 2 bln. Currently centralization ratio for supermarkets is around 65%. To maximise transportation efficiency, stores served by the new distribution centre will be supplied using Lenta’s own dedicated truck fleet.

Including this new distribution centre, Lenta’s distribution centres now have capacity to serve a total of over 250 hypermarkets and over 250 supermarkets. Lenta plans to continue to expand its national supply chain infrastructure to support further growth in the number of stores and selling space in the future.

Lenta’s Chief Executive Officer, Jan Dunning commented:
“Our supermarket format, which allows us to reach more customers in more locations, has proved to be extremely efficient and has delivered high sales densities and strong like-for-like growth. Opening this new distribution centre to serve the Moscow and Central regions is important to ensure this efficiency is maintained as we strive to meet the continuing demand for supermarkets in Moscow. We have opened 34 supermarkets in Moscow since 2013 and we see considerable potential for further expansion in the city and other locations over time.”

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 161 hypermarkets in 75 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 997,460 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates seven owned distribution centres.

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 34,134 people as of 30 June 2016 1.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Lenta and The Walt Disney Company CIS launch range of co-branded food products for children

The first licensed private label co-branded project in the Russian market

St. Petersburg, Russia, 2016-Nov-09 — /EPR Retail News/ — Lenta (LSE, MOEX: LNTA), one of the largest retail chains in Russia, and The Walt Disney Company CIS are pleased to announce the launch of a range of co-branded food products for children offered as Lenta’s private label products.

In 2016, the new product range will comprise six products, including breakfast cereals, jelly beans and cookies. The product packaging will feature Mickey Mouse, the world’s best known animation character, and his friends – Pluto, Minnie Mouse, Donald Duck, and others. The specially designed packaging featuring Disney characters will make the new range products particularly appealing to children and parents. The sales launch is scheduled for November 2016, with more new products to be added to the range during 2017.

All products comprising the new product range meet the highest quality standards that are consistently applied by Lenta to its private label products. Moreover, this product range meets additional requirements to product quality assurance and product safety applied by Disney. Independent social audits and checks for compliance with international labour standards were carried out at the facilities that manufacture Disney-branded products. All producers providing supplies for the new product range have been certified to ISO 22000, and their products are in compliance with Disney’s exacting dietary requirements to provide maximum health benefits to children.

Breakfast cereals, jelly beans and cookies for the new product range will be produced in Russia.

Jan Dunning, Lenta’s CEO, said: “We are excited about the start of our partnership with Disney. Today, Lenta is particularly focused on developing its private labels and we make an extra effort to ensure that these products meet the highest quality standards. Our partnership with Disney in this area is a fundamentally new stage in the development of Lenta’s private labels. We are proud to be the first company in the Russian food market to launch a licensed private label co-branded project. We hope the new products will be a success with both adult and little customers”.

“Creating new niche segments for licensing is a strategic focus for our company. The launch of the first licensed private label co-branded project in Russia is a milestone in the development of the Russian licensing market and Disney’s local business,” said Marina Jigalova-Ozkan, Managing Director for The Walt Disney Company CIS. “We are excited to drive a change in the market in partnership with a major market player like Lenta”.

In 9M 2016, sales of private label products accounted for 12.4% of Lenta’s total sales.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 160 hypermarkets in 74 cities across Russia and 43 supermarkets in Moscow and St. Petersburg, with a total of approximately 990,442 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 5,900 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.

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 34,134 people as of 30 June 2016 1.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

About Disney in Russia
The Walt Disney Company CIS, a subsidiary of The Walt Disney Company, was founded in April 2006. Marina Jigalova-Ozkan is the CEO of The Walt Disney Company CIS. In Russia and the CIS, the company’s business activities include film production and distribution, stage productions, the production and distribution of TV content, the Disney Channel, consumer product licensing – apparel, toys, children’s products, stationery, food products, cosmetics etc.; licensing publications – children’s books and magazines; the production and distribution of digital video content; development and distribution of console, mobile and online games; as well as promotion of Disney theme parks and Disney Cruise Lines to Russian tourists.

For further information about the company please visit www.disney.ru and www.waltdisney.ru,

About The Walt Disney Company globally
The Walt Disney Company (TWDC, NYSE – DIS), a world leader in the entertainment industry, was founded by Walt Disney in 1923. Disney is one of the top Dow Jones Industrial Average companies. The company’s revenue amounted to USD 52.5 billion in FY2015. TWDC owns a variety of brands including Disney, Pixar, Star Wars, MARVEL, ABC, ESPN Maker studios and others. For further information about The Walt Disney Company please visit www.thewaltdisneycompany.com

1 FTE (full-time equivalent). Average FTE for 1H 2016 was 33,758 employees

For further information please visit www.lentainvestor.com, or contact:
 
Lenta
Anna Meleshina
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

The Walt Disney Company CIS LLC
Elena Litovchenko
PR Director
+7 495 646 9000
Elena.Litovchenko@disney.com

Daria Chernysheva
Senior PR Manager
+7 495 646 9000
Daria.Chernysheva@disney.com

Source: Lenta

Lenta to acquire Kesko’s K-Ruoka brand food retail business in Russia

St. Petersburg, Russia, 2016-Oct-27 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA) one of the largest retail chains in Russia, and Kesko are pleased to announce they have reached an agreement under which Lenta will acquire Kesko’s food retail business in Russia (“KFR”), currently operating under the K-Ruoka brand.

Assets acquired
KFR consists of 10 hypermarkets and one supermarket operating under the K-Ruoka brand in Saint-Petersburg and the Leningradskiy region, as well as three land plots in Moscow and the Leningradskiy regions. Most of the hypermarkets were opened in 2012-2015 and two stores were opened during 2016. Total selling space of the acquired stores is around 42.5k sq.m, of which around 40.2k sq.m are owned and around 2.3k sq.m are rented. The stores are compatible in terms of size and layout with existing Lenta compact and supercompact hypermarket formats, and almost all of the store locations are complementary to Lenta’s existing stores in Saint-Petersburg and the Leningradskiy region. The high proportion of owned stores is in line with Lenta’s store ownership strategy. The KFR business and assets are owned by six legal entities which will be purchased as part of the transaction.

Lenta’s Chief Executive Officer, Jan Dunning said:

“We are very pleased to have reached an agreement with Kesko to acquire their business in Russia. While Lenta remains primarily focused on its successful organic expansion, we welcome opportunities to augment this by acquiring high quality assets such as the Kesko stores.

The stores all have excellent urban strategic locations and are complementary to Lenta’s existing network. They have a strong team of well-trained store staff who we look forward to welcoming into the Lenta family. Completion of the acquisition will significantly strengthen Lenta’s network in Saint-Petersburg, giving many more customers the opportunity to shop at a Lenta store close to their homes. Upon the completion of integration the stores will operate under the Lenta brand.”

Purchase price
According to the agreement the aggregate transaction consideration is Rub 11.0bn.

Closing, approvals and financing
The transaction has been approved by the Lenta and Kesko Boards, no further internal approvals are necessary. The transaction is expected to close on November 30, 2016 subject to fulfilment of the other terms and conditions and approval by Federal Antimonopoly Service of the Russian Federation (“FAS Russia”). The acquisition will be financed using Lenta’s existing cash and available undrawn long-term loan facilities.

Lenta will provide more details and revised guidance upon completion of the acquisition.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 156 hypermarkets in 72 cities across Russia and 42 supermarkets in Moscow and St. Petersburg, with a total of approximately 968,595 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 6,000 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.

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 34,134 people as of 30 June 20161.

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 TPG Capital and the European Bank for Reconstruction and Development, both of which are 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.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate
International Media:
David Westover and Marina Zakharova
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

Lenta announces 3Q 2016 consolidated sales and operating results

St-Petersburg, Russia, 2016-Oct-22 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”) one of the largest retail chains in Russia, is pleased to announce the Company’s consolidated sales and operating results for the third quarter ended 30 September 2016.

To view the full press release, please click here.

3Q 2016 Operating Highlights:

  • Total sales grew 20.2% in 3Q 2016 to Rub 75.4bn (3Q 2015: Rub 62.8bn);
  • Like-for-like (“LFL”)1 sales growth of 4.3% vs. 3Q 2015;
  • LFL traffic growth of 0.1% combined with a 4.2% increase in LFL ticket;
  • Eight hypermarkets opened during the third quarter of 2016;
  • Total store count reached 197 stores as at 30 September 2016, comprising 155 hypermarkets and 42 supermarkets;
  • Total selling space increased to 963,370 sq.m. as at 30 September 2016 (+22.3% vs. 30 September 2015); and
  • Number of active loyalty cardholders2 increased to 9.8m (+23% y-o-y) with approximately 93% of transactions in the third quarter made using the loyalty card.

9M 2016 Operating Highlights:

  • Total sales grew 21.3% in 9M 2016 to Rub 215.5bn (9M 2015: Rub 177.7bn);
  • LFL sales growth of 4.9% vs. 9M 2015;
  • LFL traffic growth of 1.4% combined with a 3.4% increase in LFL ticket;
  • 16 hypermarkets and 10 supermarkets opened during 9M 2016.

Material events in 3Q 2016 and after the reported period:

  • Lenta has opened one hypermarket in Taganrog in October 2016.

Lenta’s Chief Executive Officer, Jan Dunning commented:

“We are pleased with the results of the third quarter of 2016 – 20.2% sales growth with 4.3% LFL sales growth despite our own high base for comparison of the third quarter of 2015, the rapid fall in food inflation since the beginning of the year, and continuing pressure on customer purchasing power.

In this challenging environment, customers continue to be price sensitive and bargain oriented. Lenta’s low price, value led proposition is well positioned for this. For example, this has led to a record high penetration of promotional sales in the total basket even though Lenta’s overall promotional activity remained stable. We have also noticed further stabilization of purchasing trends with gradual improvement in the average number of articles per basket and average price per article as well as non-food sales growth.

We successfully continued expansion of our hypermarket format with eight stores opened in the third quarter. Since the beginning of the year we have opened 16 hypermarkets of which 11 stores have been opened in big cities with population of more than one million inhabitants.

We are well on track to deliver at least 40 new hypermarkets this year, and expect to beat our ambitious target to double selling space in the three years to December 2016. We have already secured all the sites required to meet our hypermarket opening goals for 2017 and have started working on the 2018 pipeline.”

1 Lenta’s stores are included in the LFL store base starting 12 months after the end of the month in which they are opened
2 Cardholders who made at least 2 purchases at Lenta during the 12 months to 30 September 2016 are considered active

To view the full press release, please click here.

A brief video summary on Lenta’s business and its Big Data initiative can be seen here. For further information please visit www.lentainvestor.com

Contact:
Anna Meleshina
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

David Westover
Senior Director
+44 207 282 2886 desk
+44 7768 897722 mobile
David.westover@citigatedr.co.uk

Marina Zakharova
Director
+44 207 282 1079 desk
+44 7774 256545 mobile
Marina.zakharova@citigatedr.co.uk

Source: Lenta

Lenta Ltd will release its 3Q-2016 consolidated sales and operating results on 20th October 2016

St-Petersburg, Russia, 2016-Oct-18 — /EPR Retail News/ — Lenta Ltd, (LSE, MOEX: LNTA) (“Lenta”), one of the largest retail chains in Russia, is pleased to announce it will release its consolidated sales and operating results for the third quarter of 2016 on 20th October 2016. Lenta will also host an Analyst and Investor Conference Call on the same day to discuss the results.

Conference call details:

Date: Thursday, 20th October 2016

Time: 17:00 (Moscow time), 15:00 (UK time), 10:00 (EST)

Speakers:
Jan Dunning, Chief Executive Officer
Jago Lemmens, Chief Financial Officer
Albert Avetikov, Director for Investor Relations

To participate in the conference call, please dial:

Russia
• +7 495 213 1767

UK
• +44 203 043 2003 (local access)
• 0800 358 6377 (toll free)

USA
• +1 719 325 2307 (local access)
• 1 888 487 0340 (toll free)

Conference ID: 3155826 or quote the conference call title: “Lenta Ltd. 3Q 2016 Operational results”

The consolidated sales and operating results for the third quarter ended 30 September 2016 will be published at 10:00am Moscow time (08:00 am UK time) and will be available at www.lentainvestor.com

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 155 hypermarkets in 72 cities across Russia and 42 supermarkets in Moscow and St. Petersburg, with a total of approximately 963,373 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 6,000 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.

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 34,134 people as of 30 June 2016.

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 TPG Capital, the European Bank for Reconstruction and Development, all of whom are 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 can be seen here.

For further information please visit www.lentainvestor.com, or contact:

Lenta
Albert Avetikov
Director for Investor Relations
+7 812 363 28 44
Albert.Avetikov@lenta.com

Citigate
International Media:
David Westover and Marina Zakharova
Тel: +44 207 282 2886
lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov and Victoria Afonina
Тel:+7 495 795 06 23
lenta@FTIconsulting.com

Source: Lenta