Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 20.3% AND ONLINE SALES GROWTH OF 159.0% IN H1 2022
Lenta IPJSC (LNTA;LENT)
Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 20.3% AND ONLINE SALES GROWTH OF 159.0% IN H1 2022
25-Jul-2022 / 09:00 CET/CEST
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Press Release | St. Petersburg | 25 July 2022
LENTA REPORTS TOTAL SALES GROWTH OF 20.3% AND ONLINE SALES GROWTH OF 159.0% IN H1 2022
25 July 2022, St. Petersburg, Russia: Lenta IPJSC (LSE: LNTA, MOEX: LENT), one of the largest multi-format retail chains in Russia, today announces its operational results and key financial results for the second quarter and the first six months of 2022 as well as its auditor-reviewed IFRS financial results for the first six months of 2022.
H1 2022 Highlights1,2
Total Sales increased by 20.3% y-o-y to RUB 262.5 billion. Retail Sales reached RUB 259.3 billion, representing 20.7% y-o-y growth. Like-for-Like (LFL) Sales increased by 5.2%, driven by 9.0% LFL Average Ticket growth. Online Sales grew by 159.0% y-o-y to RUB 20.4 billion. The Сompany opened 62 small-format stores on a gross basis. Total Selling Space increased by 16.3%, reaching 1,778.7 thousand sq. m. Gross Profit increased by 26.4% y-o-y to RUB 62.8 billion. Gross Margin increased by 114 bps and stood at 23.9%. EBITDA was RUB 15.4 billion with a 5.9% EBITDA Margin. Capex stood at RUB 7.2 billion, up 43.3%. The Net Debt to EBITDA (LTM) ratio stood at 1.9x vs. 1.4x as of 31 December 2021. Including Utkonos results starting from 1 February 2022 Please note that all Financial Highlights are based upon pre–IFRS 16 figures
Vladimir Sorokin, Chief Executive Officer, commented on Q2 2022 results:
“In Q2 2022, we continued adapting Lenta’s business to the new environment to ensure that we were able to fulfill our primary objective – providing customers with quality food products and basic essentials–without interruption.
Thanks to the concerted efforts of our personnel, we dealt with emerging challenges while maintaining the sustainability and viability of Lenta’s business. By the end of Q2 2022, the quality of our relations with suppliers was closer to where it was in January; in addition, we built new supply chains and established a process for settlements with foreign counterparties. Moreover, we managed to put new products on our stores’ shelves and to expand Lenta’s supplier base considerably. In the first half of 2022, we added 314 local producers to our suppliers.
In Q2 2022, we completed the integration of Billa: all of the retailer’s stores are already operating under the Lenta brand, and they have been fully integrated into our platforms, product matrixes and IT solutions. In the second half of 2022, we will continue to integrate the Semya chain and the online business Utkonos.
A few words about our formats. In Q2 2022, like-for-like sales at our hypermarkets increased by 2.5%. At the moment, the priority for us is to develop an offer that will bring traffic back to our stores, including by developing our product mix and promotions as well as expanding our own private labels. In terms of our small-format stores, we note the positive dynamics and the return on our efforts to develop them. Our Q2 2022 results are clear evidence of this: we achieved 2.9% growth in LFL sales, and we were able to stabilize inventories, which enabled us to improve our EBITDA margin. Our online business continues to increase its share in Lenta’s total sales and is showing strong results. Online sales in Q2 2022 increased by 135%.
Responding to customer requests remains our top priority. We are undertaking comprehensive efforts to ensure that we can update our product mix and pricing quickly in response to changing external market conditions. The company’s operating and financial results demonstrate that we are successfully adapting and quickly learning to work in the new environment.”
Q2 & H1 2022 OPERATING RESULTS, y-o-y
Sales3
Q2’22
Q2’21
Change
% Change
H1’22
H1’21
Change
% Change
Total Sales (RUB million)
130,089
110,776
19,313
17.4%
262,459
218,088
44,371
20.3%
Retail Sales
128,737
109,027
19,710
18.1%
259,294
214,908
44,386
20.7%
Hypermarkets
101,868
99,473
2,395
2.4%
206,574
195,664
10,911
5.6%
Small Formats
24,310
9,554
14,757
154.5%
47,966
19,245
28,722
149.2%
Utkonos4
2,559
0
-
-
4,754
0
-
-
Wholesale5
1,352
1,749
-397
-22.7%
3,165
3,179
-14
-0.5%
Average Ticket (RUB)
1,023
1,085
-61
-5.7%
1,050
1,105
-54
-4.9%
Hypermarkets
1,325
1,211
114
9.4%
1,347
1,229
118
9.6%
Small Formats
503
520
-17
-3.3%
519
544
-26
-4.7%
Utkonos
4,383
0
-
-
4,336
0
-
-
Number of Tickets (millions)
126
101
25
25.2%
247
195
52
26.9%
Hypermarkets
77
82
-5
-6.4%
153
159
-6
-3.7%
Small Formats
48
18
30
163.2%
92
35
57
161.6%
Utkonos
0.6
0
-
-
1.1
0
-
-
Stores and Selling Space
Q2’22
Q2’21
Change
% Change
H1’22
H1’21
Change
% Change
Total Retail Stores (eop)
809
406
403
99.3%
809
406
403
99.3%
Hypermarkets
254
255
-1
-0.4%
254
255
-1
-0.4%
Openings
0
2
-2
-
0
3
-3
-
Closing
0
1
-1
-
0
2
-2
-
Small Formats
555
151
404
267.5%
555
151
404
267.5%
Openings
18
11
7
63.6%
62
13
49
376.9%
Closing
4
0
4
-%
10
1
9
900.0%
New Selling Space (sqm, eop)
6,286
7,078
-792
-11.2%
23,719
10,577
13,142
124.3%
Hypermarkets
0
2,829
-
-
0
5,728
-
-
Small Formats
6,286
4,249
2,037
47.9%
23,719
4,849
18,870
389.2%
Total Selling Space (sqm, eop)
1,778,702
1,529,175
249,527
16.3%
1,778,702
1,529,175
249,527
16.3%
Hypermarkets
1,401,291
1,406,516
-5,225
-0.4%
1,401,291
1,406,516
-5,225
-0.4%
Small Formats
377,411
122,659
254,752
207.7%
377,411
122,659
254,752
207.7%
LFL Results
Q2’22
H1’22
Sales
Average Ticket
Traffic
Sales
Average Ticket
Traffic
Total Retail
2.6%
8.6%
-5.5%
5.2%
9.0%
-3.6%
Hypermarkets
2.5%
9.2%
-6.1%
5.5%
9.5%
-3.6%
Small Formats
2.9%
6.1%
-3.0%
1.4%
4.9%
-3.3%
Online Sales
Q2’22
Q2’21
Change
% Change
H1’22
H1’21
Change
% Change
Total Online Sales (RUB million)
9,603
4,079
5,524
135.4%
20,439
7,892
12,547
159.0%
Online Partners
2,158
2,227
-69
-3.1%
5,690
4,486
1,205
26.9%
Lenta Online6
4,949
1,852
3,097
167.2%
9,996
3,407
6,589
193.4%
Utkonos7
2,495
0
-
-
4,754
0
-
-
Average Online Ticket (RUB)
2,354
1,799
555
30.9%
2,278
1,786
493
27.6%
Online Partners
1,896
1,778
118
6.7%
1,892
1,812
80
4.4%
Lenta Online6
2,100
1,825
275
15.0%
2,056
1,752
304
17.3%
Utkonos7
4,274
0
-
-
4,314
0
-
-
Total Online Orders (thousands)
4,079
2,267
1,811
79.9%
8,971
4,419
4,552
103.0%
Online Partners
1,138
1,253
-115
-9.2%
3,007
2,475
532
21.5%
Lenta Online6
2,357
1,015
1,342
132.3%
4,862
1,944
2,918
150.1%
Utkonos7
584
0
-
-
1,102
0
-
-
For Q2 2022 monthly operating results, please refer to Appendix 1
3. Including Utkonos results from the date of consolidation (1 February 2022)
4. Includes only Utkonos Retail Sales (B2C)
5. Wholesales includes Utkonos wholesales (B2B)
6. Lenta Online includes Click & Collect
7. Includes both Utkonos retail sales (B2C) and wholesales (B2B)
Q2 2022 OPERATING RESULTS
In Q2 2022, Total Sales increased by 17.4% to RUB 130.1 billion. Lenta’s Retail Sales in Q2 2022 increased by 18.1% to RUB 128.7 billion, compared to RUB 109.0 billion in Q2 2021, driven by 2.6% LFL Retail Sales growth and 16.3% Total Selling Space expansion, both organically and inorganically. Overall Sales Density in Q2 2022 improved by 3.5% year-over-year.
Following the abnormal retail sales hike in March 2022, when customers stockpiled household chemicals, hygiene products, dry food, and other durables, Lenta faced a traffic decline in Q2 2022. Cold weather in May and June also affected sales of summer non-food goods.
In Q2 2022, the total Number of Tickets increased by 25.2% thanks to the above-mentioned expansion, while the Average Ticket size decreased by 5.7% primarily due to the increasing share of small-format stores’ sales in total Retail Sales.
Wholesale Sales, which now includes Utkonos B2B sales from the date of consolidation, represented 1.0% of Total Sales and decreased by 22.7% compared to the corresponding period of the previous year.
In H1 2022, the Average Ticket was the driver of LFL Sales growth. LFL Sales growth decelerated to 2.6% in Q2 2022. Total Retail LFL Traffic stood at a negative 5.5%. The Total Retail LFL Average Ticket increased by 8.6%, offsetting negative LFL Traffic.
In Q2 2022, Lenta continued to improve its loyalty program and actively worked on promo recovery. In Q2 2022, 1.7 million new loyalty cards were activated, with the total number of loyalty cards issued reaching to 23.0 million. Transactions using loyalty cards accounted for 95.9% of total Retail Sales, excluding Utkonos.
Hypermarket Sales represented 79.1% of total Retail Sales in Q2 2022. Hypermarkets delivered 2.4% Sales growth, positive LFL Sales growth of 2.5%, and an increase of 9.2% in the LFL Average Ticket, driven primarily by inflation. Lenta continues to improve the efficiency of in-store operations, which led to a sales density improvement of 5.8% year-over-year.
In Q2 2022, Lenta put on hold a significant number of store openings due to the macroeconomic conditions and market uncertainties. During Q2 2022, 18 new small-format stores were opened. Lenta also closed four underperforming stores to optimize operations, bringing the total number of small-format stores to 555 as of the end of Q2. In the reporting period, small-format stores demonstrated significant year-over-year Sales Growth of 154.5%, primarily driven by acquisitions made in 2021. Small-format stores’ LFL Sales grew by 2.9%, compared to a 0.1% decrease in Q1 2022. The LFL Average Ticket increased by 6.1%, while LFL Traffic stood at a negative 3.0%.
In Q2 2022, Lenta’s Online channel continued to demonstrate very strong sales growth. Total Online Sales including Utkonos sales during the period amounted to RUB 9.6 billion, an increase of 135.4% year-over-year, while Total Online Orders were up 79.9% and amounted to 4.1 million. The Average Ticket for Lenta Online was RUB 2,100, an increase of 15.0% year-over-year. The share of online sales via Partners decreased significantly following Partners’ revision of their approach to the development of their online offering, while there was no significant change in Lenta’s share of sales in Partner services. Lenta Online demonstrated considerable sales growth thanks to increases in the Average Ticket, the size of the customer base and the number of orders. In addition, Lenta Online incorporated technologies for the simultaneous picking and delivery of multiple online orders, which will improve the business’s operational efficiency. In Q2 2022, Online Sales constituted 7.4% of Lenta’s Total Sales, compared to 3.7% in the corresponding period of the previous year.
Q2 & H1 2022 FINANCIAL HIGHLIGHTS, pre–IFRS 16
Key Financial Results, pre–IFRS 16
RUB million
Q2’22
Q2’21
Change
H1’22
H1’21
Change
Total Sales
130,089
110,776
17.4%
262,459
218,088
20.3%
Gross Profit
32,798
26,291
24.7%
62,839
49,722
26.4%
Gross Margin (%)
25.2%
23.7%
148 bps
23.9%
22.8%
114 bps
SG&A
-30,839
-20,540
-50.1%
-60,504
-42,103
-43.7%
SG&A as % of Total Sales
-23.7%
-18.5%
-516 bps
-23.1%
-19.3%
-375 bps
EBITDAR
11,490
12,516
-8.2%
21,397
20,841
2.7%
EBITDAR Margin
8.8%
11.3%
-247 bps
8.2%
9.6%
-140 bps
Rent as % of Total Sales
-2.3%
-1.5%
-74 bps
-2.3%
-1.5%
-74 bps
EBITDA
8,518
10,806
-21.2%
15,409
17,472
-11.8%
EBITDA Margin
6.5%
9.8%
-321 bps
5.9%
8.0%
-214 bps
Operating Profit before impairment
4,062
7,003
-42.0%
6,593
9,856
-33.1%
Operating Profit Margin before impairment
3.1%
6.3%
-320 bps
2.5%
4.5%
-201 bps
Impairment
-
-
-
-9
-
Operating Profit
4,062
7,003
-42.0%
6,593
9,847
-33.0%
Operating Profit Margin
3.1%
6.3%
-320 bps
2.5%
4.5%
-200 bps
Net Interest Expense
-1,400
-1,212
-15.5%
-2,455
-2,331
-5.3%
Net FX loss
388
-605
-
357
-610
-
Profit Before Income Tax
3,050
5,186
-41.2%
4,495
6,906
-34.9%
Net Income
2,623
4,046
-35.2%
3,358
5,363
-37.4%
Net Income Margin
2.0%
3.7%
-164 bps
1.3%
2.5%
-118 bps
For Q2 & H1 2022 financial highlights prepared in accordance with IFRS 16, please refer to Appendix 2
Total Sales demonstrated strong growth of 17.4% and amounted to RUB 130.1 billion, compared to RUB 110.8 billion in Q2 2021.
In Q2 2022, Gross Profit (pre–IFRS 16) rose by 24.7% year-over-year to RUB 32.8 billion. Gross Margin improved by 148 bps to 25.2% mainly due to a lower promo share. This growth was offset by an increased shrinkage as a percentage of Total Sales, which resulted from a higher share of new stores in the ramp-up stage.
Gross Profit growth was offset by a Total SG&A increase of 50.1%, leading to an EBITDA (pre–IFRS 16) decrease of 21.2% year-over-year. In Q2 2022, Lenta’s EBITDA Margin stood at 6.5%. EBITDA Margin declined by 321 bps compared to the previous year, primarily due to the growth of SG&A as a percentage of Total Sales, which resulted from an increased share of stores in the ramp-up stage, the growing share of Lenta’s own online and the Utkonos acquisition.
Selling, General, and Administrative (SG&A) expenses, pre–IFRS 16
RUB million
Q2’22
Q2’21
Change
H1’22
H1’21
Change
Payroll and related taxes
13,509
7,792
73.4%
25,936
16,284
59.3%
as a % of Total Sales
10.4%
7.0%
335 bps
9.9%
7.5%
242 bps
Depreciation and Amortization (D&A)
4,457
3,803
17.2%
8,817
7,616
15.8%
as a % of Total Sales
3.4%
3.4%
-1 bp
3.4%
3.5%
-13 bps
Lease Expenses
2,972
1,709
73.9%
5,988
3,369
77.7%
as a % of Total Sales
2.3%
1.5%
74 bps
2.3%
1.5%
74 bps
Utilities
1,738
1,251
38.9%
3,526
2,647
33.2%
as a % of Total Sales
1.3%
1.1%
21 bps
1.3%
1.2%
13 bps
Store Operations
2,980
2,404
24.0%
6,021
4,690
28.4%
as a % of Total Sales
2.3%
2.2%
12 bps
2.3%
2.2%
14 bps
Professional Fees
1,359
988
37.6%
2,733
2,100
30.1%
as a % of Total Sales
1.0%
0.9%
15 bps
1.0%
1.0%
8 bps
Advertising
1,826
1,122
62.7%
3,488
2,381
46.5%
as a % of Total Sales
1.4%
1.0%
39 bps
1.3%
1.1%
24 bps
Other
1,998
1,471
35.8%
3,995
3,016
32.5%
as a % of Total Sales
1.5%
1.3%
21 bps
1.5%
1.4%
14 bps
Total SG&A
30,839
20,540
50.1%
60,504
42,103
43.7%
as a % of Total Sales
23.7%
18.5%
516 bps
23.1%
19.3%
375 bps
SG&A excluding D&A
26,382
16,737
57.6%
51,687
34,487
49.9%
as a % of Total Sales
20.3%
15.1%
517 bps
19.7%
15.8%
388 bps
For Q2 & H1 2022 SG&A expenses in accordance with IFRS 16, please refer to Appendix 2
In Q2 2022, Total Selling, General, and Administrative expenses (pre–IFRS 16) increased by 50.1% year-over-year to RUB 30.8 billion. SG&A as a percentage of Total Sales increased by 516 bps to 23.7%. This growth was mainly driven by higher payroll expenses, higher lease expenses, as well as increased utilities costs.
In Q2 2022, Payroll expenses rose by 73.4% year-over-year, while personnel expenses as a percentage of Total Sales increased by 335 bps. This growth primarily resulted from the salary indexation that took place in Q4 2021, a higher share of stores in the ramp-up stage and the Utkonos acquisition.
D&A increased by 17.2% due to an increase in owned selling space of 2.4% year-over-year. D&A as a percentage of Total Sales decreased by 1 bp due to the declining share of owned selling space in Total Selling Space.
Lease expenses as a percentage of Total Sales rose by 74 bps, primarily due to the acquisitions of Billa and Semya, both of which have a higher percentage of leased versus owned stores in their portfolios. The share of leased selling space for Lenta overall was 35% as of 30 June 2022, compared to 26% a year ago.
Store Operations as percentage of Total Sales increased by 12 bps year-over-year, mainly driven by 10 bps increase in repairs and maintenance and 5 bps increase in cleaning costs, while security costs decreased by 3 bps.
Advertising costs during Q2 2022 were up 62.7% year-over-year, due to investments in our growing online business as well as an increase in media related expenses as a result of organic growth (especially in the Moscow Region).
Cash Flow Statement, pre–IFRS 16
RUB million
Q2’22
Q2’21
Change
H1’22
H1’21
Change
Profit before income tax
3,050
5,186
-41.2%
4,495
6,906
-34.9%
Net adjustments for loss on disposal of assets, impairment, depreciation & amortization, and other
5,753
5,755
-0.0%
11,328
10,740
5.5%
Movements in Working Capital
-3,448
-3,261
-5.7%
-17,897
-10,216
-75.2%
Cash generated from / (used in) operating activities
5,355
7,680
-30.3%
-2,074
7,430
-
Net Interest & Income Taxes Paid
-1,865
-1,323
-41.0%
-5,477
-3,323
-64.8%
Net Cash generated from / (used in) Operating Activities
3,490
6,357
-45.1%
-7,551
4,107
-
Net cash used in Investing Activities
-3,361
-1,791
-87.7%
-7,359
-4,868
-51.2%
Net cash generated from / (used in) financing activities
-5,001
10,000
-
-5,051
9,427
-
Effect of exchange rates on cash and cash equivalents
-173
-605
71.4%
-138
-615
77.6%
Net Increase / (Decrease) in Cash & Cash Equivalents
-5,045
13,961
-
-20,099
8,051
-
For the Q2 & H1 2022 cash flow statement prepared in accordance with IFRS 16, please refer to Appendix 2
Capital Expenditures in Q2 2022 amounted to RUB 3.1 billion, an increase of 72.3% year-over-year. This increase resulted from the opening of new stores (18 store openings on a gross basis during Q2 2022 vs. 11 store openings during Q2 2021) and expenses related to the integration of Billa and Semya stores.
The Company’s Profit Before Income Tax for Q2 2022 was RUB 3.1 billion, which was 41.2% lower than in Q2 2021. The decrease in Profit before income tax was mainly the result of a 42.0% year-over-year decline in Operating Profit as well as a 15.5% increase in Net Interest Expense.
In Q2 2022, Net Cash generated from Operating Activities (pre–IFRS 16) amounted to RUB 3.5 billion, compared to RUB 6.4 billion the previous year. These dynamics resulted from the decrease in Profit before income tax and higher Interest and Income Taxes Paid.
Net Cash used in Investing Activities increased by 87.7% to RUB 3.4 billion in Q2 2022, up from RUB 1.8 billion in Q2 2021.
In Q2 2022, Net Cash used in Financing Activities amounted to RUB 5.0 billion, compared to Net Cash generated from Financing Activities of RUB 10.0 billion in Q2 2021.
Free Cash Flow for Q2 2022 was RUB 0.1 billion, which was RUB 4.4 billion lower than in Q2 2021, mainly due to lower Net Cash generated from Operating Activities.
Debt Position and Leverage
IFRS 16
pre-IFRS 16
RUB million
30-Jun-22
31-Dec-21
30-Jun-22
31-Dec-21
Gross Debt
139,989
148,962
83,129
88,414
Long-term Debt
25,975
66,912
25,975
66,912
Short-term Debt
57,154
21,502
57,154
21,502
Lease Liabilities (IFRS 16)
56,860
60,548
-
-
Cash & Cash Equivalents
13,228
33,326
13,228
33,326
Net Debt
126,761
115,636
69,901
55,088
Net Debt / EBITDA (LTM) ratio
1.9x
1.4x
Lenta’s cash position at the end of Q2 2022 was RUB 13.2 billion. Gross Debt decreased by 6.0% compared to 31 December 2021 and stood at RUB 83.1 billion as of 30 June 2022. Net Debt (pre–IFRS 16) increased by RUB 14.8 billion compared to year-end 2021 and stood at RUB 69.9 billion.
All the Company’s debt has fixed interest rates and is fully ruble-denominated, matching its revenue structure. The LTM weighted average effective interest rate for Lenta’s debt portfolio for the period ended 30 June 2022 was 7.4%, compared to 6.9% for the twelve-month period ended 30 June 2021.
Lenta’s Net Debt to EBITDA ratio was 1.9x as of 31 June 2022 vs. 1.4x as of 31 December 2021.
FY’22 GUIDANCE
Lenta expects to add at least 100 stores in 2022. This guidance reflects the current macroeconomic uncertainty. In 2022, Lenta will continue to look for attractive growth opportunities and expansion in existing and new formats, as well as further development of our online business. The company reserves the right to revise guidance in the course of the year or when additional information regarding the effect of ongoing events becomes available.
For further information, please contact:
Lenta
Tatyana Vlasova
Head of Investor Relations
tatyana.vlasova@lenta.com
Lenta
Mariya Filippova
Head of Public Relations and Government Affairs
maria.filippova@lenta.com
About Lenta
Lenta IPJSC (LSE: LNTA, MOEX: LENT) is a leading Russian multi-format food and FMCG retailer. The company operates hypermarkets, supermarkets, and recently launched a new proximity store format under the brand Mini Lenta. It also provides customers the option to shop online via its own Lenta Online services, Online Partners and the Utkonos platform. Lenta is Russia’s largest hypermarket operator and the fourth largest food retailer overall by Sales. The company was founded in 1993 in St. Petersburg and as of June 30, 2022, operated 254 hypermarkets and 555 supermarkets and Lenta Mini stores in over 200 cities and towns across Russia, with almost 1.78 million square meters of Selling Space. The average Lenta hypermarket has approximately 5,500 square meters of Selling Space, the average Lenta supermarket has 800 square meters, and the Mini Lenta format is 500 meters on average. The company operates 14 distribution centers to supply all its stores. 2021 Revenues were RUB 484 billion (approximately USD 6.5 billion).
Forward-Looking Statements
This announcement includes statements that are, or may be deemed to be, "forward-looking statements." These forward-looking statements can be identified by the fact that they do not only relate to historical or current events. Forward-looking statements often use words such as "anticipate," "target," "expect," "estimate," "intend," "expected," "plan," "goal," "believe," or other words of similar meaning. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, a number of which are beyond Lenta's control. As a result, actual future results may differ materially from the plans, goals, and expectations set out in these forward-looking statements. Any forward-looking statements made by or on behalf of Lenta speak only as of the date of this announcement. Except as required by any applicable laws or regulations, Lenta undertakes no obligation publicly to release the results of any revisions to any forward-looking statements in this document that may occur due to any change in its expectations or to reflect events or circumstances after the date of this document.
Appendix 1
Q2 2022 MONTHLY OPERATING RESULTS
Sales3
April
YoY
May
YoY
June
YoY
Total Sales (RUB million)
43,521
18.8%
43,903
17.4%
42,665
16.1%
Retail Sales
43,156
19.8%
43,462
17.6%
42,118
16.8%
Hypermarkets
33,710
3.0%
34,370
1.9%
33,788
2.4%
Small Formats
8,463
157.5%
8,248
157.3%
7,600
148.2%
Utkonos4
984
-
844
-
731
-
Wholesale5
364
-39.9%
441
-4.9%
547
-19.5%
Average Ticket (RUB)
1,027
-5.6%
1,032
-5.2%
1,011
-6.2%
Hypermarkets
1,327
9.3%
1,333
10.0%
1,315
9.0%
Small Formats
515
-3.6%
511
-2.4%
481
-4.3%
Utkonos
4,623
-
4,233
-
4,261
-
Number of Tickets (millions)
42
26.9%
42
24.0%
42
24.6%
Hypermarkets
25
-5.8%
26
-7.4%
26
-6.1%
Small Formats
16
167.0%
16
163.5%
16
159.3%
Utkonos
0
-
0.2
-
0.2
-
Stores and Selling Space
April
May
June
Total Retail Stores (eop)
800
803
809
Hypermarkets
254
254
254
Openings
0
0
0
Closing
0
0
0
Small Formats
546
549
555
Openings
6
5
7
Closing
1
2
1
New Selling Space (sqm, eop)
2,005
849
3,432
Hypermarkets
0
0
0
Small Formats
2,005
849
3,432
Total Selling Space (sqm, eop)
1,774,421
1,775,270
1,778,702
Hypermarkets
1,401,291
1,401,291
1,401,291
Small Formats
373,130
373,979
377,411
Online Sales
April
YoY
May
YoY
June
YoY
Total Online Sales (RUB million)
3,408
141.9%
3,222
137.1%
2,973
126.7%
Online Partners
785
-0.7%
683
-7.4%
690
-1.2%
Lenta Online6
1,703
194.6%
1,695
193.3%
1,552
179.7%
Utkonos7
920
-
844
-
731
-
Average Online Ticket (RUB)
2,331
31.3%
2,380
32.1%
2,354
29.2%
Online Partners
1,842
4.1%
1,896
5.0%
1,963
11.6%
Lenta Online6
2,068
17.0%
2,134
20.4%
2,098
14.5%
Utkonos7
4,323
-
4,233
-
4,261
-
Total Online Orders (thousands)
1,462
84.3%
1,354
79.5%
1,263
75.5%
Online Partners
426
-4.6%
360
-11.8%
351
-11.5%
Lenta Online6
823
151.7%
794
143.7%
740
144.3%
Utkonos7
213
-
199
-
172
-
3. Including Utkonos results from the date of consolidation (1 February 2022)
4. Includes only Utkonos Retail Sales (B2C)
5. Wholesales includes Utkonos wholesales (B2B)
6. Lenta Online includes Click & Collect
7. Includes both Utkonos retail sales (B2C) and wholesales (B2B)
Appendix 2
Q2 & H1 2022 FINANCIAL HIGHLIGHTS, IFRS 16
Key Financial Results
RUB million
Q2’22
Q2’21
Change
H1’22
H1’21
Change
Total Sales
130,089
110,776
17.4%
262,459
218,088
20.3%
Gross Profit
33,003
26,314
25.4%
63,102
49,807
26.7%
Gross Margin (%)
25.4%
23.8%
162 bps
24.0%
22.8%
120 bps
SG&A
-30,263
-20,115
-50.4%
-59,299
-41,325
-43.5%
SG&A as % of Total Sales
-23.3%
-18.2%
-511 bps
-22.6%
-18.9%
-364 bps
EBITDAR
11,630
12,501
-7.0%
21,591
21,100
2.3%
EBITDAR Margin
8.9%
11.3%
-234 bps
8.2%
9.7%
-145 bps
Rent as % of Total Sales
-0.4%
-0.2%
-18 bps
-0.3%
-0.2%
-14 bps
EBITDA
11,156
12,300
-9.3%
20,686
20,647
0.2%
EBITDA Margin
8.6%
11.1%
-253 bps
7.9%
9.5%
-159 bps
Operating Profit before impairment
4,778
7,414
-35.6%
7,991
10,893
-26.6%
Operating Profit Margin before impairment
3.7%
6.7%
-302 bps
3.0%
5.0%
-195 bps
Impairment
-
-
-
-9
-
Operating Profit
4,778
7,414
-35.6%
7,991
10,884
-26.6%
Operating Profit Margin
3.7%
6.7%
-302 bps
3.0%
5.0%
-195 bps
Net Interest Expense
-2,622
-1,924
-36.3%
-4,910
-3,711
-32.3%
Net FX loss
1,594
-562
-
1,253
-589
-
Profit Before Income Tax
3,750
4,928
-23.9%
4,334
6,584
-34.2%
Net Income
3,185
3,840
-17.0%
3,230
5,105
-36.7%
Net Income Margin
2.4%
3.5%
-102 bps
1.2%
2.3%
-111 bps
Selling, General, and Administrative (SG&A) expenses
RUB million
Q2’22
Q2’21
Change
H1’22
H1’21
Change
Payroll and related taxes
13,509
7,792
73.4%
25,936
16,284
59.3%
as a % of Total Sales
10.4%
7.0%
335 bps
9.9%
7.5%
242 bps
Depreciation and Amortization (D&A)
6,378
4,886
30.5%
12,695
9,754
30.2%
as a % of Total Sales
4.9%
4.4%
49 bps
4.8%
4.5%
36 bps
Lease Expenses
474
201
135.8%
905
453
99.8%
as a % of Total Sales
0.4%
0.2%
18 bps
0.3%
0.2%
14 bps
Utilities
1,738
1,251
38.9%
3,526
2,647
33.2%
as a % of Total Sales
1.3%
1.1%
21 bps
1.3%
1.2%
13 bps
Store Operations
2,980
2,404
24.0%
6,021
4,690
28.4%
as a % of Total Sales
2.3%
2.2%
12 bps
2.3%
2.2%
14 bps
Professional Fees
1,359
988
37.6%
2,733
2,100
30.1%
as a % of Total Sales
1.0%
0.9%
15 bps
1.0%
1.0%
8 bps
Advertising
1,826
1,122
62.7%
3,488
2,381
46.5%
as a % of Total Sales
1.4%
1.0%
39 bps
1.3%
1.1%
24 bps
Other
1,999
1,471
35.9%
3,995
3,016
32.5%
as a % of Total Sales
1.5%
1.3%
21 bps
1.5%
1.4%
14 bps
Total SG&A
30,263
20,115
50.4%
59,299
41,325
43.5%
as a % of Total Sales
23.3%
18.2%
511 bps
22.6%
18.9%
364 bps
SG&A excluding D&A
23,885
15,229
56.8%
46,604
31,571
47.6%
as a % of Total Sales
18.4%
13.7%
461 bps
17.8%
14.5%
328 bps
Cash Flow Statement
RUB million
Q2’22
Q2’21
Change
H1’22
H1’21
Change
Profit before income tax
3,750
4,928
-23.9%
4,334
6,584
-34.2%
Net adjustments for loss on disposal of assets, impairment, depreciation & amortization, and other
7,754
7,521
3.1%
16,834
14,216
18.4%
Movements in Working Capital
-3,433
-3,276
4.8%
-17,929
-10,353
73.2%
Cash generated from / (used in) operating activities
8,071
9,173
-12.0%
3,239
10,447
-69.0%
Net Interest & Income Taxes Paid
-3,099
-2,025
53.0%
-7,946
-4,704
68.9%
Net Cash generated from / (used in) Operating Activities
4,972
7,148
-30.4%
-4,707
5,743
*
Net cash used in Investing Activities
-3,351
-1,782
88.0%
-7,340
-4,851
51.3%
Net cash generated from / (used in) financing activities
-6,493
9,200
-
-7,914
7,774
-
Effect of exchange rates on cash and cash equivalents
-173
-605
-71.4%
-138
-615
-77.6%
Net Increase / (Decrease) in Cash & Cash Equivalents
-5,045
13,961
-
-20,099
8,051
-
ISIN: US52634T2006, US52634T1016 Category Code: IR TIDM: LNTA;LENT LEI Code: 213800OMCE8QATH73N15 OAM Categories: 3.1. Additional regulated information required to be disclosed under the laws of a Member State Sequence No.: 176721 EQS News ID: 1404489
End of Announcement EQS News Service