We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Name | Symbol | Market | Type |
---|---|---|---|
Lenta IPJSC | LSE:LNTA | London | Depository Receipt |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.50 | 0 | 01:00:00 |
Lenta IPJSC (LNTA;LENT) Lenta IPJSC: LENTA REPORTS TOTAL SALES GROWTH OF 11.1% AND 6.1% EBITDA MARGIN IN FY 2022 29-March-2023 / 09:00 CET/CEST The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
Press Release | St. Petersburg | 29 March 2023
LENTA REPORTS TOTAL SALES GROWTH OF 11.1% AND 6.1% EBITDA MARGIN IN FY 2022
29 March 2023 Lenta IPJSC (LSE: LNTA, MOEX: LENT), one of the largest multi-format retail chains in Russia, today St. announces its financial results for the fourth quarter and audited financial results for full year of Petersburg, 2022. Russia
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
-- Gross Profit was RUB 120.7 billion, an increase of 8.7%. Gross Margin declined by 51 bps and stood at22.5%
-- SG&A expenses increased as a percent of Sales by 178 bps due to the expansion of small-format stores andsignificantly increased share of online sales in Total Sales
-- EBITDA was RUB 32.6 billion with an 6.1% EBITDA Margin
-- CapEx stood at RUB 11.0 billion, up 17.8% y-o-y
-- As of 31 December 2022, the Net Debt to EBITDA ratio was 1.6x vs. 1.4x as of 31 December 2021
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
-- Gross Profit was RUB 31.4 billion, decreased by 6.3%. Gross Margin decreased by 154 bps and stood at21.2%
-- SG&A expenses decreased as a percent of Sales by 61 bps thanks to lower personnel related expenses aswell as decreased store operations costs
-- EBITDA was RUB 9.7 billion, decrease of 15.2%. EBITDA Margin decreased by 121 bps and stood at 6.5% 1. Including Utkonos results starting from 1 February 2022 2. Please note that all Financial Highlights are based upon pre-IFRS 16 figures
«Our business remains stable and flexible despite serious challenges in 2022 for both retail industry and the entire Russian economy. Throughout the year, the Lenta team focused on adapting to the new business environment. The measures we implemented drove solid performance and enabled us to maintain operational efficiency and, of course, to continue to meet the daily needs of our customers in terms of fresh products and quality essentials. In 2022, Lenta's retail sales grew by 11.4%. Our online business doubled last year, with revenue from online sales reaching 7.5% of Lenta's total sales for the year. Despite the substantial transformation of our business, the development of our small-format stores and the growing share of our online business, we were able to improve our operational efficiency considerably in the fourth quarter. Selling, general and administrative expenses as a percentage of revenue in the fourth quarter decreased by 61 basis points. We completed the integration of Billa and Semya chains last year; all Billa stores are now operating under the Lenta brand. In addition, we fully integrated all acquired stores into the Company's operating processes. One important focal point of our work last year was the establishment of a team devoted for the development of our small-format stores. We now have a Small-Format Division that is going to focus on Vladimir improving our supermarkets and convenience stores and expanding in this segment. Moreover, we continued Sorokin, to develop our online business throughout 2022, which included efforts to amalgamate the operating models for Lenta Online and Utkonos. Thanks to the concerted efforts of our Lenta-U team, we were able to Chief greatly improve the efficiency of our online business, and we plan to continue working on this going Executive forward. Officer: The year 2023 is an important one for us: it marks Lenta's 30th anniversary, and we have big plans for the year. Despite turbulence in the business environment, we remain committed to Lenta's key development priorities, including restoring LFL growth at hypermarkets, increasing margins, and expanding and developing new formats and our online business. Instead of standing still, we are looking for new formats and approaches to doing business that will continue to meet the needs of our customers to the best of our ability. In February 2023, we launched a pilot project for a new hypereconomy format in St Petersburg, where we offer our customers better prices while providing the fairly broad product range found in our hypermarkets, which is especially important at a time when consumers are facing rising prices. We are testing a number of innovations in underperforming stores in order to find the best options for reducing operating costs and increasing sales density. The pilot project is our response to the needs of customers focused on savings and who want a choice of products in lower price segments. This project, like our results for 2022 as a whole, would not have been possible without the dedicated and professional work of our team. I would like to thank all Lenta employees, and I am looking forward to seeing what we can accomplish together in 2023».
Q4 & FY 2022 FINANCIAL HIGHLIGHTS Key Financial Results, pre-IFRS 16
RUB million Q4'22 Q4'21 Change FY'22 FY'21 Change Total Sales 148,157 147,316 0.6% 537,401 483,641 11.1% Gross Profit 31,400 33,497 -6.3% 120,739 111,107 8.7% Gross Margin (%) 21.2% 22.7% -154 bps 22.5% 23.0% -51 bps SG&A -27,565 -28,302 -2.6% -112,987 -93,066 21.4% SG&A as % of Total Sales -18.6% -19.2% 61 bps -21.0% -19.2% -178 bps EBITDAR 12,868 14,195 -9.3% 44,681 47,643 -6.2% EBITDAR Margin 8.7% 9.6% -95 bps 8.3% 9.9% -154 bps Rent as % of Total Sales -2.1% -1.9% -26 bps -2.2% -1.7% -50 bps EBITDA 9,684 11,414 -15.2% 32,638 39,242 -16.8% EBITDA Margin 6.5% 7.7% -121 bps 6.1% 8.1% -204 bps Operating Profit before impairment 4,810 6,854 -29.8% 14,404 23,185 -37.9% Operating Profit Margin before impairment 3.2% 4.7% -141 bps 2.7% 4.8% -211 bps (Impairment) / Reversal of impairment -2,322 173 - -2,322 164 - Operating Profit 2,488 7,026 -64.6% 12,082 23,348 -48.3% Operating Profit Margin 1.7% 4.8% -309 bps 2.2% 4.8% -258 bps Net Interest Expense -1,284 -1,294 -0.8% -4,924 -4,923 0.0% Net FX loss -265 -28 846.4% -52 -497 -89.5% Profit Before Income Tax 939 5,704 -83.5% 7,106 17,928 -60.4% Net Income 207 4,102 - 4,850 13,646 -64.5% Net Income Margin 0.1% 2.8% -264 bps 0.9% 2.8% -192 bps
For Q4 & FY 2022 financial highlights prepared in accordance with IFRS 16, please refer to Appendix 1
In Q4 2022, Total Sales increased by 0.6% to RUB 148.2 billion. Lenta's Retail Sales in Q4 2022 increased by 0.7% to RUB 145.8 billion, compared to RUB 144.8 billion in Q4 2021, driven by 1.9% Total Selling Space organic growth which was partially offset by LFL Sales decline of 1.3%. In Q4 2022, Gross Profit (pre-IFRS 16) decreased by 6.3% year-over-year to RUB 31.4 billion. Gross Margin dropped by 154 bps to 21.2%; the decrease in Gross Margin was driven mainly by higher investments in traffic retention, increased promo share, a shift in the sales product mix toward lower margin goods, as well as increased share of small-format stores with lower gross margin level.
The decline in Gross Profit which was slightly offset by a 2.6% decrease in Total SG&A led to a 15.2% decrease in EBITDA (pre-IFRS 16) year-over-year. In Q4 2022, Lenta's EBITDA Margin stood at 6.5%. EBITDA Margin declined by 121 bps compared to the previous year, driven by the decline of Gross Margin which was partially offset by the decrease of SG&A as a percentage of Total Sales resulted from lower personnel related expenses as well as decreased store operations costs.
Selling, General, and Administrative (SG&A) expenses, pre-IFRS 16
RUB million Q4'22 Q4'21 Change FY'22 FY'21 Change Payroll and related taxes 9,391 10,963 -14.3% 44,169 35,436 24.6% as a % of Total Sales 6.3% 7.4% -110 bps 8.2% 7.3% 94 bps Depreciation and Amortization (D&A) 4,874 4,560 6.9% 18,234 16,057 13.6% as a % of Total Sales 3.3% 3.1% 19 bps 3.4% 3.3% 7 bps Lease Expenses 3,184 2,781 14.5% 12,043 8,401 43.4% as a % of Total Sales 2.1% 1.9% 26 bps 2.2% 1.7% 57 bps Utilities 1,206 1,535 -21.4% 6,053 5,626 7.6% as a % of Total Sales 0.8% 1.0% -23 bps 1.1% 1.2% -9 bps Store Operations 2,665 3,090 -13.8% 11,218 10,262 9.3% as a % of Total Sales 1.8% 2.1% -30 bps 2.1% 2.1% -4 bps Professional Fees 1,774 1,060 67.4% 5,994 4,489 33.5% as a % of Total Sales 1.2% 0.7% 48 bps 1.1% 0.9% 19 bps
Advertising 2,693 2,545 5.8% 8,031 6,489 23.8% as a % of Total Sales 1.8% 1.7% 9 bps 1.5% 1.3% 15 bps Other 1,778 1,768 0.6% 7,245 6,306 14.9% as a % of Total Sales 1.2% 1.2% 0 bps 1.3% 1.3% 0 bps Total SG&A 27,565 28,302 -2.6% 112,987 93,066 21.4% as a % of Total Sales 18.6% 19.2% -61 bps 21.0% 19.2% 178 bps SG&A excluding D&A 22,691 23,742 -4.4% 94,753 77,009 23.0% as a % of Total Sales 15.3% 16.1% -80 bps 17.6% 15.9% 171 bps
For Q4 & FY 2022 SG&A expenses in accordance with IFRS 16, please refer to Appendix 1
In Q4 2022, Total Selling, General, and Administrative expenses (pre-IFRS 16) decreased by 2.6% year-over-year to RUB 27.6 billion. Meanwhile, SG&A as a percentage of Total Sales decreased by 61 bps to 18.6%. This dynamics was mainly driven by lower personnel related expenses as well as decreased store operations costs.
In Q4 2022, Payroll expenses declined by 14.3% year-over-year, while personnel expenses as a percentage of Total Sales decreased by 110 bps. The positive dynamic of SG&A was primarily driven by increased productivity and operational improvement of small format stores, including ex-Billa and ex-Semya stores.
D&A increased by 6.9% primarily due to the acquisition of Utkonos warehouses. D&A as a percentage of Total Sales increased by 19 bps.
Lease expenses as a percentage of Total Sales rose by 26 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 30 bps year-over-year, mainly driven by 22 bps decline in repairs and maintenance, 7 bps decrease in cleaning costs, and 1 bps decline in security costs.
Advertising costs during Q4 2022 were up 5.8% 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.
In FY 2022, Total Selling, General and Administrative expenses (pre-IFRS) increased by 21.4% to RUB 113.0 billion. SG&A as a percentage of Total Sales increased by 178 bps mainly driven by 94 bps increase in Payroll and related taxes, 57 bps increase in Lease expenses, and 19 bps increase in Professional fees.
Cash Flow Statement, pre-IFRS 16
RUB million Q4'22 Q4'21 Change FY'22 FY'21 Change Profit before income tax 939 5,704 -83.5% 7,106 17,928 -60.4% Net adjustments for loss on disposal of assets, impairment, depreciation 8,251 5,998 37.6% 25,445 21,572 18.0% & amortization, and other Movements in Working Capital 12,272 11,015 11.4% -2,834 2,076 - Cash generated from Operating Activities 21,462 22,717 -5.5% 29,717 41,576 -28.5% Net Interest & Income Taxes Paid -2,532 -3,440 -26.4% -9,511 -7,991 19.0% Net Cash generated from Operating Activities 18,930 19,277 -1.8% 20,206 33,585 -39.8% Net cash used in Investing Activities -8,246 -2,880 186.3% -17,290 -30,815 -43.9% Net cash generated from / (used in) financing activities -5,017 -41 12,136.6% -7,068 9,218 - Effect of exchange rates on cash and cash equivalents 51 18 183.3% -155 -471 -67.1% Net Increase / (Decrease) in Cash & Cash Equivalents 5,718 16,374 -65.1% -4,307 11,517 -
For the Q4 & FY 2022 cash flow statement prepared in accordance with IFRS 16, please refer to Appendix 1
Capital Expenditures in Q4 2022 amounted to RUB 2.0 billion, and decreased by 31.7% year-over-year. This decreased resulted from the fewer new store openings in Q4 2022 compared to Q4 2021.
The Company's Profit before Income Tax for Q4 2022 was RUB 0.9 billion compared to RUB 5.7 billion in Q4 2021. The decrease in Profit before income tax was mainly the result of a 29.8% year-over-year decline in Operating Profit before Impairment and significant impairment primarily related to Utkonos assets compared to minor reversal of impairment in Q4 2021.
In Q4 2022, Net Cash generated from Operating Activities (pre-IFRS 16) amounted to RUB 18.9 billion, compared to RUB 19.3 billion in the previous year. These dynamics resulted from the decrease in Profit before income tax, which was offset by the higher positive movement of Working Capital, higher D&A and lower Net income tax paid.
Net Cash used in Investing Activities was 8.2 billion compared to 2.9 billion for the same period of the previous year.
In Q4 2022, Net Cash used in Financing Activities amounted to RUB 5.0 billion, compared to RUB 0.04 billion in Q4 2021.
Free Cash Flow for Q4 2022 was RUB 10.7 billion, which was RUB 5.7 billion lower than in Q4 2021, mainly due to higher Net Cash used in Investing Activities.
Capital Expenditures for FY 2022 amounted to RUB 11.0 billion, and increased by 17.8% year-over-year. FY 2022 Capital Expenditures were primarily related to new small-format store openings, integration of Billa, Semya and Unkonos, and IT-systems development.
Free Cash Flow for FY 2022 was RUB 2.9 billion, and increased by 5.3% year-over-year, mainly due to significant decrease of Net Cash used in Investing Activities which was partially offset by the decline in Net Cash generated from Operating Activities.
Debt Position and Leverage
IFRS 16 IAS 17 RUB million 31-Dec-22 31-Dec-21 31-Dec-22 31-Dec-21 Gross Debt 134,273 148,962 81,123 88,414 Long-term Debt 26,968 66,912 26,968 66,912 Short-term Debt 54,155 21,502 54,155 21,502 Lease Liabilities (IFRS 16) 53,150 60,548 - - Cash & Cash Equivalents 29,020 33,326 29,020 33,326 Net Debt 105,253 115,636 52,103 55,088 Net Debt / EBITDA (LTM) ratio 1.6x 1.4x
Lenta's cash position at the end of Q4 2022 was RUB 29.0 billion. Gross Debt decreased by 8.2% compared to 31 December 2021 and stood at RUB 81.1 billion as of 31 December 2022. Net Debt (pre-IFRS 16) decreased by RUB 3.0 billion compared to year-end 2021 and stood at RUB 52.1 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 31 December 2022 was 7.7%, compared to 6.8% for the twelve-month period ended 31 December 2021.
Lenta's Net Debt to EBITDA ratio was 1.6x as of 31 December 2022 vs. 1.4x as of 31 December 2021. For further information, please contact:
Tatyana Vlasova Mariya Filippova Head of Investor Relations Head of Public Relations and Government Affairs tatyana.vlasova@lenta.com maria.filippova@lenta.com
About Lenta
Lenta IPJSC (LSE: LNTA, MOEX: LENT) is a leading Russian multi-format food and FMCG retailer. The company operates hypermarkets, supermarkets, and 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 31 December 2022, operated 259 hypermarkets and 561 supermarkets and Lenta Mini stores in over 200 cities and towns across Russia, with almost 1.79 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. 2022 Revenues were RUB 537 billion (approximately USD 7.6 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
Q4 & FY 2022 FINANCIAL HIGHLIGHTS, IFRS 16
Key Financial Results, IFRS 16
RUB million Q4'22 Q4'21 Change FY'22 FY'21 Change Total Sales 148,157 147,316 0.6% 537,401 483,641 11.1% Gross Profit 31,503 33,588 -6.2% 121,204 111,361 8.8% Gross Margin (%) 21.3% 22.8% -154 bps 22.6% 23.0% -47 bps SG&A -26,636 -27,856 -4.4% -110,264 -91,447 20.6% SG&A as % of Total Sales -18.0% -18.9% 93 bps -20.5% -18.9% -161 bps EBITDAR 13,046 14,290 -8.7% 45,289 48,097 -5.8% EBITDAR Margin 8.8% 9.7% -89 bps 8.4% 9.9% -152 bps Rent as % of Total Sales -0.2% -0.3% 4 bps -0.3% -0.3% -5 bps EBITDA 12,688 13,871 -8.5% 43,665 46,885 -6.9% EBITDA Margin 8.6% 9.4% -85 bps 8.1% 9.7% -157 bps Operating Profit before impairment 5,917 7,394 -20.0% 17,735 25,258 -29.8% Operating Profit Margin before impairment 4.0% 5.0% -103 bps 3.3% 5.2% -192 bps (Impairment ) / Reversal of impairment -2,322 173 - -2,322 164 - Operating Profit 3,594 7,567 -52.5% 15,412 25,422 -39.4% Operating Profit Margin 2.4% 5.1% -271 bps 2.9% 5.3% -239 bps Net Interest Expense -2,619 -2,498 4.8% -10,017 -8,428 18.9% Net FX loss -660 -72 816.7% 162 -524 - Profit Before Income Tax 315 4,997 -93.7 5,557 16,470 -66.3% Net Income / (Net Loss) -292 3,537 -108.3% 3,611 12,480 -71.7% Net Income Margin -0.2% 2.4% -260 bps 0.7% 2.6% -191 bps
Selling, General, and Administrative (SG&A) expenses, IFRS 16
RUB million Q4'22 Q4'21 Change FY'22 FY'21 Change Payroll and related taxes 9,391 10,963 -14.3% 44,169 35,436 24.6% as a % of Total Sales 6.3% 7.4% -110 bps 8.2% 7.3% 89 bps Depreciation and Amortization (D&A) 6,771 6,476 4.6% 25,930 21,627 19.9% as a % of Total Sales 4.6% 4.4% 17 bps 4.8% 4.5% 35 bps Lease Expenses 358 419 -14.6% 1,624 1,212 34.0% as a % of Total Sales 0.2% 0.3% -4 bps 0.3% 0.3% 5 bps Utilities 1,206 1,535 -21.4% 6,053 5,626 7.6% as a % of Total Sales 0.8% 1.0% -23 bps 1.1% 1.2% -4 bps Store Operations 2,665 3,090 -13.8% 11,218 10,262 9.3% as a % of Total Sales 1.8% 2.1% -30 bps 2.1% 2.1% -3 bps Professional Fees 1,774 1,060 67.4% 5,994 4,489 33.5% as a % of Total Sales 1.2% 0.7% 48 bps 1.1% 0.9% 19 bps Advertising 2,693 2,545 5.8% 8,031 6,489 23.8% as a % of Total Sales 1.8% 1.7% 9 bps 1.5% 1.3% 15 bps Other 1,778 1,768 0.6% 7,245 6,306 14.9% as a % of Total Sales 1.2% 1.2% 0 bps 1.3% 1.3% 4 bps Total SG&A 26,636 27,856 -4.4% 110,264 91,447 20.6% as a % of Total Sales 18.0% 18.9% -93 bps 20.5% 18.9% 161 bps SG&A excluding D&A 19,865 21,380 -7.1% 84,334 69,820 20.8% as a % of Total Sales 13.4% 14.5% -110 bps 15.7% 14.4% 126 bps
Cash Flow Statement, IFRS 16
RUB million Q4'22 Q4'21 Change FY'22 FY'21 Change Profit before income tax 315 4,997 -93.7% 5,557 16,470 -66.3% Net adjustments for loss on disposal of assets, impairment, depreciation & 11,806 9,151 29.0% 37,879 30,650 26.3% amortization, and other Movements in Working Capital 12,267 11,257 9.0% -2,736 2,319 - Cash generated from / (used in) operating activities 24,388 25,405 -4.0% 40,700 49,439 -17.7% Net Interest & Income Taxes Paid -3,878 -4,647 -16.5% -14,633 -11,560 26.6% Net Cash generated from / (used in) Operating Activities 20,510 20,758 -1.2% 26,067 37,879 -31.2% Net cash used in Investing Activities -8,237 -2,870 187.0% -17,252 -30,779 -43.9% Net cash generated from / (used in) financing activities -6,606 -1,532 331.2% -12,967 4,888 - Effect of exchange rates on cash and cash equivalents 51 18 183.3% -155 -471 -67.1% Net Increase / (Decrease) in Cash & Cash Equivalents 5,718 16,374 -65.1% -4,307 11,517 -
----------------------------------------------------------------------------------------------------------------------- Dissemination of a Regulatory Announcement, transmitted by EquityStory RS. The issuer is solely responsible for the content of this announcement.
-----------------------------------------------------------------------------------------------------------------------
ISIN: US52634T2006, US52634T1016 Category Code: FR TIDM: LNTA;LENT LEI Code: 213800OMCE8QATH73N15 Sequence No.: 232905 News ID: 1593777 End of Announcement EquityStory RS News Service =------------------------------------------------------------------------------------
Image link: https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=1593777&application_name=news
(END) Dow Jones Newswires
March 29, 2023 03:00 ET (07:00 GMT)
1 Year Lenta IPJSC Chart |
1 Month Lenta IPJSC Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions