21 October 2020
Lenta Reports Retail Sales Growth of 4.6% in Q3 and 7.9% in 9M 2020
St. Petersburg, Russia, 21 October 2020: Lenta PLC (MOEX & LSE: LNTA), one of the largest retail chains in Russia, today announces its Q3 2020 Operational Results. A conference call with the CEO and CFO to discuss these results is scheduled for today (see below for dial-in details).
- Retail Sales increased by 4.6% year-over-year to RUB 102 billion in Q3 2020, on the back of mixed trends as Lenta continued to adapt to changing customer behavior
- LFL Sales growth remained strong at 3.0% in Q3 2020 with Average Ticket growth of 9.2% and customer Traffic decline of 5.7%
- Online Sales grew to RUB 1.3 billion in Q3 2020, an increase of 551% year-over-year, serving customers across 82 cities
- Lenta added 6 stores on a net basis (2 new hypermarkets and 5 new supermarkets with 1 supermarket closure) in Q3 2020, bringing the total number of retail stores to 386 and Total Selling Space to 1.49 million square meters as of 30 September 2020
- On 2 September, Vladimir Sorokin was appointed Lenta’s new Chief Executive Officer
Vladimir Sorokin, Chief Executive Officer:
"While 2020 has been an unprecedented year for the retail industry, I am extremely proud of how swiftly and efficiently Lenta has adapted to the ever-evolving market conditions due to Covid-19. At all times we have made the safety and well-being of our employees and customers our highest priority. These measures have paid off as local authorities didn’t close any of our stores and consumers felt it is safer to shop at Lenta. As a result, some customers made Lenta their store of choice and spent more at our stores. Together with our resilient business model this approach translated into strong results in the first nine months. Retail Sales were up by 7.9% compared with the same period last year thanks to an 11.4% growth in Average Ticket. Like-for-Like Retail Sales grew by 5.9%, driven by an 11.5% increase in the Like-for-Like Average Ticket.
Lenta’s online offering also continues to add value to our customers’ lives. We have made robust progress during 2020 in expanding the geographic coverage of our own Lentochka express delivery service and our new Click & Collect program. We believe that Lenta is uniquely positioned for online food retail as it already has a large store network in 88 cities with a wide assortment of 25,000 SKUs. As a result, we do not need to build expensive dark stores.
During 2020, Lenta has again proven itself to be resilient and adaptable to changes in consumer behavior. That said, there is further scope to fine-tune the business model in response to shifts in demand patterns and the external environment. I appreciate that an updated strategic plan is long awaited, but the focus for the last several months has understandably been on steering Lenta through a turbulent period and ensuring safe and uninterrupted access to stores for our customers. We look forward to unveiling a new long-term growth strategy early next year.
In the interim, we will remain focused on the key factors that affect the choices our customers make daily, such as an attractive and relevant assortment that emphasizes quality rather than quantity and is a great value for money proposition for a wide range of consumer groups.”
Q3 Conference Call
The Lenta Management Team will host an investor and analyst conference call at 16:00 Moscow time (14:00 London, 09:00 US Eastern Daylight Time), on Wednesday, 21 October 2020. On the call will be Vladimir Sorokin (CEO), Rud Pedersen (CFO), and Tim Post (IRO).
To participate in the conference call, please use the following dial-in details:
Conference ID: 9125402 (“Lenta Q3 2020 Operational Results Conference Call”)
Participants are encouraged to register approximately 10 minutes prior to the start of the call.
For further information please visit www.lentainvestor.com or contact:
Head of Public Relations and Government Affairs
Investor Relations Officer
EM (International Media Inquiries)
Lenta is the largest hypermarket chain in the Russian Federation and the fourth largest food retailer. The Company was founded in 1993 in St. Petersburg and currently operates 250 hypermarkets and 136 supermarkets in 88 cities across Russia with almost 1.5 million square meters of selling space. The average Lenta hypermarket has approximately 5,500 square meters of selling space, while the Lenta supermarket averages 800 square meters. The company operates 12 distribution centers throughout Russia. Lenta is listed on both the London Stock Exchange and Moscow Exchange, trading under the ticker: 'LNTA'
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.