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 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

Lenta Ltd announces its reviewed consolidated IFRS results for the half year ending 30 June 2016

St. Petersburg, Russia, 2016-Aug-26 — /EPR Retail News/ — Lenta Ltd (“Lenta” or the “Company”), one of the largest retail chains in Russia, today (24 August 2016) announces its reviewed consolidated IFRS results for the half year ending 30 June 2016 [1].

1H 2016 Financial Highlights:
•Total sales grew 21.9% to Rub 140.1bn (1H 2015: Rub 114.9bn);
•Adjusted EBITDA [2] of RUB 13.7bn, up 16.4% (1H 2015: RUB 11.7bn) with a margin of 9.8% (1H 2015: 10.2%);
•Gross margin of 21.9% (+0.2 p.p vs. 1H 2015) rose due to better supplier terms, supply chain improvements and more efficient in-store production which more than offset investments in prices;
•SG&A increased to 15.5% of sales (+0.9 p.p vs. 1H 2015) 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, additional investments in marketing and increases in utility costs;
•Capital expenditures of RUB 16.1bn, an increase of 37.0% compared to 1H 2015 (RUB 11.8bn) linked to higher investments in land acquisition and hypermarket construction;
•Net cash generated from operating activities, before net interest and income taxes paid, of RUB 7.2bn compared to RUB 5.1bn in 1H 2015 (an increase of 39.3%) primarily driven by EBITDA growth;
•Net interest expenses of RUB 4.5bn, a decrease of 12.7% compared to 1H 2015 (RUB 5.1bn) primarily due to lower interest rates;
•Net Profit [3] of RUB 4.3bn, up 45.9% (1H 2015: RUB 3.0bn) with a margin of 3.1%; and
•Net Debt of RUB 67.1bn as of 30 June 2016 (Net debt/Adjusted EBITDA of 2.2x).

1H 2016 Operational Highlights:
•Eight hypermarkets and 10 supermarkets opened during the first half of 2016;
•Total store count reached 189 stores as at 30 June 2016, comprising 147 hypermarkets and 42 supermarkets;
•Total selling space increased to 922,865 sq.m. as at 30 June 2016 (+22.8% vs. 30 June 2015);
•Like-for-like (“LFL”) [4] sales growth of 5.2% vs 1H 2015;
•LFL average ticket increased by 3.0%;
•LFL traffic growth of 2.1%;
•Number of active loyalty cardholders [5] increased to 9.3m (+23% y-o-y) with approximately 93% of transactions in the second quarter made using the loyalty card.

Material events after the reported period:
•Lenta agreed a Rub 53bn credit limit with Sberbank, providing access to new long-term loans of up to RUB 25bn for a period of up to 5 years;
•Lenta registered an Exchange Bond programme for up to a total maximum principal amount of RUB 100bn;
•Fitch Ratings has upgraded Lenta’s Long-term foreign and local currency Issuer Default Ratings (IDRs) from ‘BB-’ to ‘BB’ and National Long-term rating from ‘A+(rus)’ to ‘AA-(rus)’. The outlook on the ratings is stable;
•Started operations in a new dedicated supermarket distribution centre in Moscow during August.

Lenta’s Chief Executive Officer, Jan Dunning said:
“We continue to deliver strong results against the back-drop of a challenging consumer and macro environment.

Lenta’s results demonstrate continuing efficiency improvements in all areas of our business. Further development of logistics led to additional benefits in supply chain cost which in combination with better supplier conditions and improved productivity in our own production allowed us to deliver an increase in gross profit margin increase despite additional price investments made to support customers. We proved that the operational improvements made last year were sustainable and in the first half of this year continued optimizing processes, especially in the like-for-like stores, to drive productivity. However, the productivity improvements in the like-for-like stores were not enough to offset the impact of enhanced investments in marketing activities to support traffic and the increase in housing costs, mainly driven by the large number of new stores we opened. As a result, Lenta reports a slight reduction in EBITDA margin.

We continue to strengthen our financial position and improve our debt profile. Falling market interest rates and optimization of our major long-term loan facilities translated into a significant reduction in interest expenses which supported 46% growth in net income.

We are well on track to meet our target of at least 40 new hypermarket openings this year, while in our supermarket format we plan to further accelerate of expansion. We have almost finalized the pipeline of hypermarket openings for the next year and continue our very selective approach focused on opportunities with attractive returns”.
[1] Certain amounts do not correspond to the IFRS financial statements for the half year ended 30 June 2015 and reflect adjustments made as detailed in Note 2 of the IFRS financial statements
[2] Adjusted EBITDA is reported EBITDA as set out in Note 6 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
[3] Net Profit equates to “Profit for the year” in the attached IFRS Financial Statements
[4] Lenta’s stores are included in the LFL store base starting 12 months after the end of the month they are opened
[5] Cardholders who made at least 2 purchases at Lenta during the 12 months to 30 June 2016 are considered active

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
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
Marina.zakharova@citigatedr.co.uk

Source: Lenta

Lenta Ltd to release its reviewed IFRS financial results for H1 FY2016 on 25th August 2016

St-Petersburg, Russia, 2016-Aug-22 — /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 2016 on 25th August 2016. Lenta will also host an Analyst and Investor Conference Call on the same day to discuss the results.

Conference call details:

Date: Thursday, 25th August 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:
+7 495 705 9450

UK:
+44 20 7136 2050 (local access)
0800 279 5004 (toll free)

USA:
+1 718 354 1359 (local access)
1 877 280 2342 (toll free)

Conference ID: 2058090 or quote the conference call title: “Lenta Ltd. 1H 2016 Financial results”

The reviewed IFRS financial results for the first half-year ended 30 June 2016 and respective presentation will be published at 10:00am Moscow time (08:00am 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 147 hypermarkets in 72 cities across Russia and 42 supermarkets in Moscow and St. Petersburg, with a total of approximately 922,865 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 38,414 people as of 31 December 2015.

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