Lenta IPJSC (LNTA;LENT)
Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 11.1% AND ONLINE SALES GROWTH OF 108.9% IN FY 2022
30-Jan-2023 / 08:00 CET/CEST
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Press Release | St. Petersburg | 30 January 2023
LENTA REPORTS TOTAL SALES GROWTH OF 11.1% AND ONLINE SALES GROWTH OF 108.9% IN FY 2022
30 January 2023 St. Petersburg, Russia | Lenta IPJSC (LSE: LNTA, MOEX: LENT), one of the largest multi-format retail chains in Russia, today announces its operational results for the fourth quarter and the full year 2022. |
FY 2022 Highlights1,2 - Total Sales increased by 11.1% y-o-y to RUB 537.4 billion
- Retail Sales reached RUB 530.2 billion, representing 11.4% y-o-y growth
- Like-for-Like (LFL) Sales increased by 2.3%, driven by 5.0% LFL Average Ticket growth
- The total number of stores reached 820, including 259 hypermarkets and 561 small format stores
- Total Selling Space increased by 1.9%, reaching 1,788.2 thousand sq. m.
- Online Sales grew by 108.9% y-o-y to RUB 40.4 billion
Q4 2022 Highlights1,2 - Total Sales increased by 0.6% y-o-y to RUB 148.2 billion
- Retail Sales reached RUB 145.8 billion, representing 0.7% y-o-y growth
- Like-for-Like (LFL) Sales declined by 1.3%, as a result of LFL Average Ticket and LFL Traffic decrease by 0.5% and 0.8% respectively
- The Company opened 1 hypermarket and 24 small-format stores on a gross basis
- Online Sales grew by 59.4% y-o-y to RUB 11.2 billion
- Including Utkonos results starting from 1 February 2022
- LFL results include the results of Billa stores starting from September 2022 and the results of Semya stores starting from October 2022
Vladimir Sorokin, Chief Executive Officer
| «In 2022, Russian business as a whole faced exceptional challenges that required decisive measures from Lenta’s team: reconfiguring supply chains, establishing relationships with new suppliers and setting up payment procedures for transactions involving foreign counterparties. Despite all the difficulties, we were able to meet these challenges, we became even more flexible and efficient, and we continued to develop.An important event in the fourth quarter was the opening of our hypermarket in Tomsk, which we rebuilt from scratch following a fire in 2021. The new store was the first hypermarket that Lenta opened in 2022.One of our priorities in 2022 was to improve the model for our Mini Lenta stores, and we can see the results of this work—specifically, the gradual improvement in the results of our convenience stores. Notably, we achieved positive LFL traffic at these stores in November and December. We plan to further increase the number of Mini Lenta stores. One of the things we are doing for this purpose is expanding our vehicle fleet. In Q4 2022, we purchased 22 Kamaz Kompas-12 medium-duty trucks, which, alongside the existing fleet, will be used to deliver goods to small-format stores. Despite the departure of foreign truck distributors from Russia, we were able to find a replacement in the Russian market in a very short time.Shoppers continued to economize in 2022 and gradually shifted to cheaper products. We reviewed our product range during the year, adjusting it accordingly to meet the needs of our customers. We expanded the range of products in lower price segments and stepped up our use of promotional and personal offers for our customers. We see that shoppers have responded positively to the changes in our stores’ offer, and Lenta’s price perception is improving.In terms of the Online segment, we continue to combine the operational processes of Lenta Online and Utkonos, and we are also committed to expanding and improving our online offer for customers. The Lenta Online service has begun delivering orders around the clock: as of today, 40 Lenta hypermarkets and supermarkets offer round-the-clock delivery in 11 cities, and we have no intention of stopping there, as we plan to expand the service throughout Russia.I would like to thank our team for their continued effort and dedication. This year marks the Company’s 30th anniversary. I am confident that we will become even stronger in this milestone year as we continue to consistently implement our strategy». |
Q4 & FY 2022 OPERATING RESULTS, y-o-ySales3 | Q4’22 | Q4’21 | Change | % Change | FY’22 | FY’21 | Change | % Change | Total Sales (RUB million) | 148,157 | 147,316 | 841 | 0.6% | 537,401 | 483 641 | 53,760 | 11.1% | Retail Sales | 145,816 | 144,813 | 1,003 | 0.7% | 530,197 | 475 787 | 54,409 | 11.4% | Hypermarkets4 | 121,703 | 122,652 | -949 | -0.8% | 431,867 | 418 061 | 13,806 | 3.3% | Small Formats | 22,992 | 22,161 | 831 | 3.7% | 90,478 | 57 727 | 32,751 | 56.7% | Utkonos5 | 1,121 | - | 1,121 | - | 7,852 | - | 7 ,852 | - | Wholesale6 | 2,341 | 2,503 | -162 | -6.5% | 7,204 | 7 853 | -649 | -8.3% | Average Ticket (RUB) | 1,116 | 1,146 | -30 | -2.6% | 1,051 | 1 092 | -41 | -3.8% | Hypermarkets | 1,452 | 1,458 | -6 | -0.4% | 1,351 | 1 284 | 68 | 5.3% | Small Formats | 494 | 524 | -30 | -5.8% | 494 | 525 | -30 | -5.8% | Utkonos | 3,599 | - | 3,599 | - | 4,115 | - | 4,115 | - | Number of Tickets (millions) | 131 | 126 | 4 | 3.4% | 505 | 436 | 69 | 15.8% | Hypermarkets | 84 | 84 | 0 | -0.4% | 320 | 326 | -6 | -1.9% | Small Formats | 47 | 42 | 4 | 10.1% | 183 | 110 | 73 | 66.4% | Utkonos | 0.3 | - | 0.3 | - | 2 | - | 2 | - |
Stores and Selling Space | Q4’22 | Q4’21 | Change | % Change | FY’22 | FY’21 | Change | % Change | Total Retail Stores (eop) | 820 | 757 | 63 | 8.3% | 820 | 757 | 63 | 8.3% | Hypermarkets4 | 259 | 258 | 1 | 0.4% | 259 | 258 | 1 | 0.4% | Openings | 1 | 0 | 1 |
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