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Retail

Lenta Sees Retail Sales Up 13.5% In Third Quarter

Russian retailer Lenta has reported a 13.5% year-on-year increase in retail sales, to RUB 116 billion (€1.44 billion), in the third quarter of its financial year.

Like-for-like sales increased by 3.5% in this period, driven by the performance of its hypermarket format, while LFL average ticket grew by 4.7%.

The company's online sales grew by 237% year-on-year, to RUB 4.4 billion (€54 million), with online orders up 231% to 2.4 million in the third quarter.

Hypermarket sales accounted for 86% of the company's sales during the quarter, with the format delivering 6.6% sales growth despite increased competition from discounters and the e-grocery channel.

Commenting on the company's performance, chief executive officer, Vladimir Sorokin, said, "Lenta performed well in the third quarter, with retail sales growth of 13.5% and a firm 8.8% EBITDA Margin. These results demonstrate that Lenta can pursue and achieve both growth and profitability, even in a challenging operating environment."

Quarterly Highlights

During the period, Lenta accelerated the rollout of its new Mini format, with 36 new stores opened in the third quarter.

The company also completed the acquisition of Billa for €225 million and Semya for RUB 2.45 billion. It has started to integrate the 234 Billa and Semya stores, three distribution centres, and more than 6,600 employees.

Sorokin added, "These acquisitions will strengthen Lenta's market positions in Moscow and Perm via locations with established customer traffic. Importantly, we have not only acquired Billa's and Semya's physical stores, but also their expertise in operating smaller formats. The integration process will continue into 2022, but we have already made good progress."

Elsewhere, Fitch Ratings upgraded Lenta's credit rating to 'BB+' with a stable outlook.

© 2021 European Supermarket Magazine. Article by Dayeeta Das. For more Retail news, click here. Click subscribe to sign up to ESM: European Supermarket Magazine.

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