24 January 2021
Lenta Reports Retail Sales Growth of 5.7% in Q4 and 7.3% in FY 2020
FY 2020 Highlights
- In FY 2020, Retail Sales increased by 7.3% to RUB 438 billion despite changing customer behavior. This increase was mainly driven by an 11.6% rise in Average Ticket for both Hypermarkets and Supermarkets and partially offset by a 3.9% decrease in the Number of Tickets
- LFL Sales growth remained strong at 5.4% in FY 2020 with Average Ticket growth of 11.6% and customer Traffic decline of 5.5%
- Lenta continued developing its online services, and by the end of 2020, the company’s online services were available in 88 Russian cities compared to 27 cities a year earlier. As a result, Online Sales and Online Orders grew by 566% and 716% respectively, to RUB 6.3 billion and 3.2 million orders
- In 2020, Lenta added 13 stores on a net basis, bringing the total number of retail stores to 393 and Total Selling Space to 1.52 million square meters as of 31 December 2020
Q4 2020 Highlights
- Retail Sales rose by 5.7% year-over-year to RUB 122 billion in Q4 2020, driven by a 12.4% increase in Average Ticket and partially offset by a 5.9% decrease in the Number of Tickets
- LFL Sales continued a steady growth of 4.0% in Q4 2020. A 13.2% increase in Average Ticket was partially offset by an 8.1% decline in Traffic, as customers choose to visit stores less and buy more per visit
- In Q4 2020, Lenta continued to expand the presence of its online services to new cities. As a result, Total Online Sales totaled RUB 3.1 billion in Q4, up 933% year-over-year, while orders grew more than tenfold
- Lenta added 8 stores on a net basis in Q4 2020, bringing the total number of retail stores to 393 and Total Selling Space to 1.52 million square meters as of 31 December 2020
- In October, Lenta opened its thirteenth distribution center in the Leningrad region to supply the company’s stores in St. Petersburg and the Northwest
St. Petersburg, Russia, 25 January 2021: Lenta PLC (MOEX & LSE: LNTA), one of the largest retail chains in Russia, today announces its operational results for Q4 and FY 2020. A conference call with management to discuss these results is scheduled for today (see the PDF download for dial-in details).
Vladimir Sorokin, Chief Executive Officer:
“Lenta closed the year on a strong footing, with solid Retail Sales growth across our Hypermarket, Supermarket and Online formats. I’m proud that we managed to achieve these results while maintaining our unwavering commitment to the safety and well-being of our customers and employees.
The second wave of the COVID-19 pandemic continued to impact customer behavior during the fourth quarter of 2020, as customers preferred to make less frequent visits to stores. Lenta's Retail Sales in Q4 2020 increased by 5.7% compared to Q4 2019. This was driven by a 12.4% growth in the Average Ticket size, supported by an increase in the number of items per receipt and a noticeable trend of trading up, but this was partially offset by a 5.9% decrease in customer Traffic. Hypermarket performance remained resilient in the current environment, thanks to our competitive range of products, attractive pricing, and safer stores; while the
further development of Lenta’s online sales played an important role in supporting growth. By the end of 2020, we had expanded our online presence to all 88 cities in which we have bigbox stores in Russia.
December sales were traditionally strong as seasonal shopping drew customers into Lenta stores ahead of the extended January holidays, which many of our customers spent at home. In addition, our freshly revamped loyalty program and successful seasonal promo activities provided strong momentum into the new year.
Following the approval of Lenta’s new charter at the EGM in November, Lenta’s re-domiciliation in Russia remains on track, and we aim to complete the process in the first quarter of 2021.”
FY 2021 Outlook
Lenta will provide detailed guidance projections for 2021 at the time of its publication of FY-2020 financial results on 20 February and at our Strategy Day on 18 March.
Q4 and FY 2020 Conference Call
The Lenta Management Team will host an investor and analyst conference call at 17:00 Moscow time (14:00 London, 09:00 New York), on Monday, 25 January 2021. On the call willbe 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: 16-662-38 (“Lenta Q4 2020 Operational Results Conference Call”)
Russian Federation: +7 495 646 9190 (local access), 8 10 800 2867 5011 (toll-free)
United Kingdom: +44 (0)330 336 9411 (local access), 0800 279 7204 (toll-free)
United States: +1 646-828-8193 (local access), 888-394-8218 (toll-free)
Participants are encouraged to register approximately 5-10 minutes prior to the start of the call.
For further information, please visit www.lentainvestor.com or contact:
Head of Public Relations and Government
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 as of December 31, 2020 operated 254 hypermarkets and 139 supermarkets in 88 cities across Russia with more than 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 13 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.