Page 134 - RusRPTAug21

implying that most of the stores were in the new compact format (c. 250 square meters of selling space). This enabled the retailer to enter 20 new cities.
The retailer’s online sales have continued to grow at a double-digit pace in July, mostly due to the c. 4x surge in sales through the customer mobile app.
Lenta reported 1H21 IFRS & Trading Update. EBITDA, Net income fell by 17% and 43% y/y due to surge-buying behavior seen during 1H20 in connection with the COVID-19 lockdown, and investment into Lenta's growth strategy.
Revenue rose 0.5% y/y vs +8.9% in 1H20
LFL sales decreased 0.7% vs +7.1% in 1H20 on the back of decreased customer traffic (-2.1% y/y) and increased average ticket (+1.4% y/y)
Total number of retail stores was 406 (+7.1% y/y). Selling Space was 1.53mn sqm (+3.2% y/y)
EBITDA declined 17% y/y as SG&A expenses increased by 168 bps y/y to 18.9% of sales, driven by salary indexation and investments into Lenta Online, as well as COVID-19 safety related expenditures. EBITDA Margin fell by 197bps y/y to 9.5% vs 11.4% in 1H20 (under IFRS 16). Under IAS 17, EBITDA margin contracted from 10.2% to 8% (-216bps y/y)
Net income dropped 43% y/y. Net margin decreased to 2.3% from 3.3% in 1H20
FY21 guidance was updated. Selling space growth: at least 200k sqm including acquisitions (raised from at least 100k sqm). EBITDA margin: above 8% (confirmed). CAPEX: up to 5% of sales (w/o acquisitions)
O’Key Group reported 2Q21 Trading Update. The results showed a moderate sales growth of 6.1% y/y, supported by slightly positive LFL sales (+1.2% y/y) after a strong base of 2Q20.
The Group’s LFL sales rose 1.2% y/y vs -0.3% y/y in 1Q21 and vs high base effect of +7.4% in 2Q20 and was driven by the traffic (+19.4% y/y) despite declined average ticket (-15.2% y/y)
o LFL sales generated by O'KEY branded stores were flat with +0.1% y/y, driven by +19% y/y in LFL traffic and -15.9% in the LFL average ticket
o LFL net retail sales generated by DA! Increased by 6.8% y/y, driven by LFL traffic (+20.1% y/y) and -11.1% y/y in the average LFL ticket The Group‘s net retail revenue increased 6.1% y/y vs +1.9% y/y in 1Q21 and compared to +6.1% in 2Q20
o DA! discounters' net retail revenue expanded by 21.4% y/y, driven by a 6.8% LFL net retail revenue growth and increased selling space by 19.5% y/y
o DA! discounters' share in the Group's revenue rose by 2.4 pps y/y to 18.9%
o O'KEY hypermarkets' net retail revenue added 3.1% y/y Online sales rose by 62.6% y/y to account for 2.8% of O'KEY's revenue
134 RUSSIA Country Report August 2021 www.intellinews.com