Robust sales growth of 37.3% and LFL of 13.6%, with selling space increased by 36.3%

St-Petersburg, Russia; 17 April, 2014 – Lenta Ltd, (LSE, MOEX: LNTA / “Lenta” or the “Company”) one of the largest retail chains in Russia, is pleased to announce the Company’s consolidated sales and operating results for the first quarter ended 31 March 2014 ¹ .

1Q 2014 Operating Highlights:

Total sales grew 37.3% in 1Q 2014 to RUB 39.6bn (1Q 2013: RUB 28.8bn);

Like-for-like (“LFL”) ² sales growth of 13.6% vs. 1Q 2013; 

LFL traffic growth of 6.1% combined with a 7.0% increase in LFL average ticket;

Two new hypermarkets opened during the first quarter of 2014;

Total of 89 stores, comprising 79 hypermarkets and 10 supermarkets;

Total selling space increased to 522,000 sq.m. at 31 March 2014 (+36.3% vs. 31 March 2013);

Active loyalty cardholders ³ increased to 5.3m (+35% y-o-y) with approximately 90% of transactions in the first quarter made using the loyalty card;

3.1% increase in average hypermarket ticket to Rub 1,089 (1Q 2013: Rub 1,056).

Lenta’s Chief Executive Officer, Jan Dunning commented:

“Lenta’s distinctive hypermarket model continues to prove its value to customers, as demonstrated by LFL sales growth of 13.6% in the first quarter. We are delighted that LFL sales growth in 1Q 2014 exceeded the 4Q 2013 result of 11.1% which was driven by strong year-end trading. Our focus on promotions, pricing and assortment attracted a 6.1% increase in LFL traffic. The combination of strong LFL growth and selling space increase of 36.3% year-on-year enabled Lenta to accelerate total sales growth to 37.3% in the first quarter, up from 35.0% in 4Q 2013.

Lenta’s development is in-line with our expectations for this year. We have not seen significant changes in consumer behaviour in our stores in the quarter, 1Q 2014 LFL growth was strong in both older and newer stores and across all regions. New store openings are progressing well. We expect that continued robust LFL growth and additional store openings will ensure rapid sales growth for the rest of the year. The first quarter results provide the best evidence to support our confidence, though we will continue to be vigilant because of the many uncertainties which may impact consumer spending during the remainder of 2014.

We are delivering on our exciting vision for growth which will gain significant momentum in 2014 as we seek to open 24 hypermarkets and 15 supermarkets this calendar year. In the longer term, we aim to capture a substantial share of the potential in the Russian food retail market by doubling our net selling space over the next three years.”

¹Numbers in the Announcement are preliminary and not reviewed or audited by the auditor. Insignificant deviations in % change or totals is explained by rounding. This note applies to all tables in this Announcement

²Lenta’s stores are included in the LFL store base starting 12 months after the end of the month they are opened 

³Cardholders who made at least 2 purchases at Lenta during the 12 months to March 31, 2014 are considered active. 

For further information, please visit www.lentainvestor.com, or contact:

Lenta
Anna Meleshina,
Director of Public Relations and Government Affairs
+7 812 363 28 53
Anna.Meleshina@lenta.com

Albert Avetikov,
Director of Investor Relations
+7 812 363 28 44
Albert.Avetikov@lenta.com

Instinctif Partners
International Media
Mark Walter & Tony Friend
+44 20 7457 2020
Mark.Walter@instinctif.com

Leonid Fink
+44 (0)20 7457 2015 Leonid.Fink@instinctif.com

Russian Media
Anton Karpov
+7 495 660 05 91
Anton.Karpov@instinctif.com