29 Mar 2023 08:00
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
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 at 22.5% SG&A expenses increased as a percent of Sales by 178 bps due to the expansion of small-format stores and significantly 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 2021Q4 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 at 21.2% SG&A expenses decreased as a percent of Sales by 61 bps thanks to lower personnel related expenses as well 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%Including Utkonos results starting from 1 February 2022 Please note that all Financial Highlights are based upon pre–IFRS 16 figures
Q4 & FY 2022 FINANCIAL HIGHLIGHTSKey Financial Results, pre–IFRS 16
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
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
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
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.
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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
Selling, General, and Administrative (SG&A) expenses, IFRS 16
Cash Flow Statement, IFRS 16
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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 |
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