Q4 2023
Investor Presentation
March 2024
Investor Presentation| March 2024
Disclaimer
The information contained in this presentation has been prepared by Lenta IPJSC (the "Company"). The conclusions presented herein are based on general information gathered at the time of writing and are subject to change without further notice. While the Company relies on information obtained from sources believed to be reliable, it does not guarantee its accuracy or completeness. The contents of this presentation have not been verified by or on behalf of the Company, including verification by advisers or other independent third parties. The information contained herein shall not for any purpose be deemed complete, accurate or impartial. The Company has not made and does not make on its own behalf and on behalf of its shareholders, directors, officers or employees or any other persons, any representations or warranties, express or implied, as to the accuracy, completeness or objectivity of information or opinions contained herein. None of the directors of the Company, its shareholders, officers or employees or any other persons accepts any liability for any loss whatsoever that may arise from any use of this presentation or its contents or otherwise in connection therewith.
All information and opinions contained herein (including, without limitation, the forward-looking statements below) are valid as of the date hereof and are subject to change without notice. Information in this presentation may include statements with respect to future events.
Certain statements contained herein may constitute forward-looking statements. Any statements that address expectations or projections about the future, including statements about operating performance, market position, industry trends, general economic conditions, expected expenditures and financial results, are forward-looking statements. Forward-looking statements may be identified by words like "expect", "anticipate", "plan", "intend", "project", "indicate" and similar expressions.
Any statements contained herein that are not statements of historical facts, including (but not limited to) statements regarding the financial position; business strategy; plans and objectives for future operations; growth and development prospects; future growth plans and potential; growth in demand for products; economic forecasts; market trends; market developments and any other forward-looking statements regarding the future of the Company, involve known and unknown risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from those expressed or implied by such forward-looking statements. Such forward-looking statements are based on certain assumptions regarding the Company's current and future business plans and the environment in which the Company or its Group is currently operating and will be operating in the
future.
Because such assumptions are subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond the Company's control, the Company cannot guarantee that it will achieve or accomplish these expectations, beliefs or projections. Past performance is no indicator or guarantee of future performance. The Company makes no warranty, express or implied, as to future results. These forward-looking statements speak only as of the date on which they are made; the Company, the Board of Directors, employees, directors, officers, agents or advisers undertake no obligation to supplement, change, update or revise any forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements, changes in the Company's expectations or any changes in the events, conditions or circumstances on which these statements are based. The above persons are under no obligation to update or keep current any information contained herein.
Certain financial information contained in this presentation, including non- IFRS financial measures, may not have been audited, reviewed or verified by an independent auditor.
The inclusion of such financial information in this or any other presentation should not be regarded as a representation or warranty by the Company, advisers, affiliates, their respective directors, officers or employees as to the accuracy or completeness of such information regarding the financial condition or results of the Company.
Some numerical figures included in this presentation have been subject to rounding adjustments. Accordingly, numerical figures shown as totals in various tables or charts may not be arithmetic aggregations of the figures that precede them.
This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for, or purchase, any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever.
This presentation is not intended for distribution to, or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where its publication, availability or use would be contrary to law or would require any registration, licensing or other permission within such jurisdiction.
This presentation is not a public offer or advertisement of securities or any other kind of advertisement in the Russian Federation and is not an invitation to make offers to purchase, sell, exchange or transfer any securities in the Russian Federation. No part of this presentation, nor the fact of its distribution, shall form the basis of, or be relied on in connection with, any contract, commitment or investment decision whatsoever.
02
Investor Presentation| March 2024
Lenta is a Federal Player with Potential for Explosive Growth
Q4 2023
#1 | > 650 | 2,800+ | >75 k | |
Hypermarket | Cities and | |||
stores | employees | |||
chain in Russia | towns | |||
Key Results
+50.4% | +13.3% | +30.0% | 2,143 |
Sales growth, y-o-y | Lenta LFL sales growth, | Selling space growth, | Store openings (net)1 |
y-o-y | y-o-y |
+58.1%
Online sales growth, y-o-y
+58.6% |
Gross Profit growth, y-o-y
+116 bps |
Gross Margin expansion, y-o-y
+84.7% |
EBITDA growth, y-o-y
+149 bps |
EBITDA Margin expansion, y-o-y
1 Including acquired Monetka's stores |Please note that all Financial Highlights are based upon pre-IFRS 16 figures
3
Investor Presentation| March 2024
Key 2023 events
February | March | May | June |
Launch of the pilot format Hyper | Opening of | Opening of a distribution center | Opening of a hypermarket |
Discounter in St. Petersburg | 10 Pet Stores | in Voronezh | in Voronezh |
July
Opening of Lenta FRESH
self-service restaurant
1RUB trln
July | June |
Opening of a hypermarket | Launching payment for purchases |
in Surgut | through a mobile app |
(Lenta Pay) |
October | October | December | December | |
Acquisition of Monetka | Strategic Update | Opening of a Hyper Discounter | Opening of the second private label | |
in Ryazan | test center in Ivanovo | 4 |
Investor Presentation| March 2024
On Track to Achieve our 2025 Goals
Increase Sales to | Get closer to customers | Maintain leadership in the | Develop Online business | Remain the most | ||||||
RUB 1 trillion | through expansion | hypermarket segment | profitable retailer | |||||||
2023 Interim results | ||||||||||
RUB 767 billion | 2.3 million sq m | ~29% market share | ~7.5% market share | 8.0% EBITDA | ||||||
unconsolidated total revenue in | selling space | in the hypermarket segment³, | in the online segment4, | Margin | ||||||
20231, | as at the end of 2023², | +3.3 pp vs 2020 | +3 pp vs 2020 | in Q4 2023, | ||||||
+72% vs 2020 | +53% vs 2020 | with positive unit economics | +1.5 pp vs Q4 2022 | |||||||
Pre-IFRS 16 financials
1 Lenta and Monetka FY 2023 unconsolidated total revenue; Lenta starts consolidating Monetka in its financial results starting from Q4 2023 | 2 Lenta and Monetka total selling space as at 31 December 2023 | 3 INFOLine's FY 2023 forecast, channel sales and
Lenta's sales include online sales via hypermarkets | 4 The share is based on Data Insight's forecast for 2023, which includes sales forecasts for Lenta's own and partner services | 05 |
Investor Presentation| March 2024
We Reaffirm Our Ambition to Achieve
RUB 1 Trillion of Revenue in 2025
HYPERMARKETS | SUPERMARKETS | CONVENIENCE STORES | ONLINE BUSINESS | CORPORATE CENTRE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grow market share in | Enhance supermarket | Open 500+ | Improve customer | Strive to become our | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
the hypermarket | model efficiency | stores annually | proposition and operating | best self every year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
segment and improve | model | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
performance | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
by improving customer | to prepare for accelerated | while maintaining | to ensure effective growth | by embracing a culture of | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
proposition and optimising | organic growth | leadership in LFL | continuous improvement | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
costs | growth and efficiency | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
in home regions | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
06
Investor Presentation| March 2024
We want to become the champion of Russian retail
«Our goal is
to create a store that will be better than its competitors in | » |
terms of a set of parameters, so that the benefits that we | |
create for customers are so significant that they, without | |
hesitation, go shopping at Lenta |
Lenta CEO
Vladimir Sorokin
7
Key Financial Priorities Through 2025
Revenue growth at CAGR of
- 20% in 2022-2025 to RUB 1 trillion
Net Debt / EBITDA ratio reduction to 1.5x in 2025
EBITDA Margin growth to > 7% in 2025
with ~9% for mature business and assuming investments in expanding small formats and the online business
Capex at no more than 5% of Company revenue
excluding potential M&As, with stringent control over returns on all development projects
Potential to commence dividends1
despite increased spending on expansion and logistics infrastructure
potential dividend payouts in the mid-term in line with the Company's dividend policy
Pre-IFRS 16 financials | |
¹ A decision to pay dividends is made by the General Meeting of Shareholders based on a recommendation of the Board of Directors of Lenta IPJSC | 8 |
Lenta is …
Lenta Strategic Update | October 2023
Lenta is Now Evolving
Into a Multi-Brand Platform to Foster Business Growth
Extensive geographic coverage > 650 cities and towns¹
Proximity to customers > 2,800 retail stores²
> 2,300 convenience stores | 246 supermarkets |
261 hypermarkets
Logistics infrastructure
19 distribution centres³ and
over 1,000 owned trucks
Team
> 75,000 employees4
Customer base
- 645 million tickets in FY 2023
- 12 million MAU5 of Lenta's digital platforms6 in 1H 2023
¹ Combined total for Lenta and Monetka as at 31 December 2023 | ² Number of Lenta Mini stores, Lenta supermarkets, Lenta hypermarkets and Monetka stores as at 31 December 2023 | ³ Combined total for Lenta and Monetka as at 31 December 2023, excluding Utkonos distribution centres | 4 Combined headcount for Lenta and Monetka as at 31 December 2023 | 5 MAU stands for monthly active users | 6 Including Lenta, Lenta Online, Utkonos apps and Lenta.com and Utkonos.ru websites
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
MK Lenta PAO published this content on 20 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 13:17:13 UTC.