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