🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

Russian retailer Lenta posts higher sales growth

Published 17/04/2014, 08:49

MOSCOW (Reuters) - Russian hypermarket chain Lenta , which recently joined the stock market, said sales growth quickened in the first quarter as customers were, so far, unaffected by the country's economic slowdown.

Lenta is the only Russian company to have made an initial public offering (IPO) this year. The February listing in London came days before Russian stocks tumbled because of the crisis in neighbouring Ukraine and netted around $1 billion for shareholders including U.S. private equity firm TPG .

The company's GDRs fell as low as $8.10 in mid-March from the IPO price of $10, as the political turmoil fuelled expectations that Russia's economy would be dragged into recession. Shares were down 0.3 percent at $9.94 on Thursday.

Lenta said it had not seen any major changes in consumer behaviour as it reported a 37.3 percent year-on-year rise in first-quarter sales to 39.6 billion roubles ($1.1 billion) after a 35 percent rise in the previous quarter.

Growth in like-for-like sales, an indicator of mature store performance, was 13.6 percent compared with 11.1 percent in the final quarter of 2013, Lenta said.

"We expect that continued robust LFL growth and additional store openings will ensure rapid sales growth for the rest of the year," Chief Executive Jan Dunning said.

"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," he added.

Lenta plans to open 24 hypermarkets and 15 supermarkets in 2014. In the first quarter it opened two hypermarkets, while its total number of stores rose to 89 from 57 a year earlier.

(Reporting by Maria Kiselyova, editing by Erica Billingham)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.