Vladimir Sorokin, Chief Executive Officer: Lenta reports Online Sales growth of +300%

Lenta reports Online Sales growth of +300%, an 8.0% EBITDA Margin, and the launch of its new Mini store format in 1H 2021

1H & Q2 2021 Operational and Financial Highlights

·      Retail Sales increased by 0.7% y-o-y to RUB 215 billion in 1H 2021.

·      LFL Sales declined by 0.7% in 1H, while LFL Average Ticket grew by 1.4% and customer Traffic declined by 2.1% .

·      EBITDA Margin in 1H 2021 was 8.0% and EBITDA was RUB 17.5 billion.

·      During Q2, Lenta announced that it would acquire 161 supermarkets from Billa Russia in a transaction that will make it the #2 supermarket operator in Moscow. FAS has approved the deal, which is expected to close in August.

·      In June, the company signed a deal to acquire Semya’s 75 multi-format retail stores in the Perm region. Subject to FAS approval the deal is expected to close in August.

·      Online Sales grew by 322% y-o-y to RUB 7.9 billion with Online Orders up 426% y-o-y to 4.4 million in 1H 2021.

·      In 1H 2021, Lenta began opening its new Mini format with 12 new stores opened in total at the end of the period. Additionally, the company opened 3 new hypermarkets and 1 new supermarket. In total, the new store openings created an increase of 3.2% in new selling space.

·      The Net Debt to EBITDA (LTM) ratio stood at 1.7x as of 30 June 2021.

St. Petersburg, Russia, 26 July 2021: Lenta IPJSC (MOEX & LSE: LNTA), one of the largest multi-format retail chains in Russia, today announces its operational results and auditor reviewed IFRS financial results for the first six months of 2021. A conference call with management to discuss these results is scheduled for today (see below for dial-in details).

Vladimir Sorokin, Chief Executive Officer: 

“In the second quarter, following our Capital Markets Day at the end of March, we began executing on our new strategic plan to pursue growth opportunities through the opening of new formats, strategic acquisitions, and bringing our online offering to new customers. 

For example, in Q2, we opened 11 Lenta Mini stores. This new format is a very interesting and exciting initiative. The early results are promising, and we continue to make improvements with every new store opening. Also, during the second quarter we announced two important acquisitions, Billa Russia and Semya. These deals will strengthen our competitive position in two key markets, Moscow and Perm, and accelerate our transition into a large multi-format retailer. During the first six months of the year, our Online channel continued to produce impressive results with year-over-year growth rates exceeding 300%.

With respect to our core formats, hypermarkets and supermarkets, the results of the first six months of 2021 are better than we might have expected given the fact that the results of the same period of 2020 were driven by an unprecedented increase in consumer demand as a result of the COVID-19 lockdown here in Russia.

Finally, during the first half of 2021, we made changes to strengthen our Management Team mainly through internal promotion of executives who not only have a depth of experience but, just as importantly, are very motivated to do what will be required over the next five years to transform Lenta into a champion of Russian food retail. We may have a long road ahead of us, but I am very encouraged by the progress we have achieved during these first few months.”


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