OREANDA-NEWS. 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 fourth quarter and full year ended 31 December 20141.

4Q 2014 Operating Highlights:

Total sales grew 30.6% in 4Q 2014 to Rub 59.5bn (4Q 2013: Rub 45.6bn), including stronger December sales growth;

Like-for-like ("LFL") sales growth of 7.6% vs. 4Q 2013, including double-digit LFL sales growth in December

LFL average ticket growth of 5.6% combined with a 1.9% increase in LFL traffic;

21 hypermarkets and eight supermarkets opened during the fourth quarter of 2014;

Total of 132 stores at 31 December 2014, comprising 108 hypermarkets and 24 supermarkets;

Total selling space increased to 701,150 sq.m. as at 31 December 2014 (+38.7% vs. 31 December 2013) significantly exceeding initial guidance of +30%; and

Number of active loyalty cardholders increased to 6.5m (+35% y-o-y) with approximately 90% of transactions in the fourth quarter made using the loyalty card.

FY 2014 Operating Highlights:

Total sales grew 34.5% in 2014 to Rub 194.0bn (2013: Rub 144.3bn), in line with Company sales growth guidance provided at time of IPO in February 2014;

LFL sales growth of 10.6% vs. 2013;

LFL average ticket increase of 6.0% combined with LFL traffic increase of 4.4%; and

31 hypermarkets and 14 supermarkets opened during 2014, significantly exceeding the Company's guidance of 24 hypermarket openings.

Material events in 4Q 2014 and after the reported period

Lenta completed the acquisition of three Bimart hypermarkets in Central Russia (two stores in Ivanovo and one in Vladimir);

Lenta signed a Rub 11.5bn five-year unsecured credit facility with UniCredit Bank to finance its on-going investment programme

Lenta's Chief Executive Officer, Jan Dunning commented:

"Lenta further extended its track record of rapid growth during 2014, opening a record 31 hypermarkets and 14 supermarkets and increasing net selling space by 39%. Execution by our development and operational teams was more reliable than ever, despite the rapid pace of expansion. This performance significantly exceeded our guidance of 24 new hypermarkets in 2014.

Consumers' budgets are under increasing pressure and Lenta's low price-low cost business model positions us well to meet these changing customer needs. We adapted effectively to the new more turbulent environment with changes in our assortment, pricing and promotions, enabling the company to accelerate full year sales growth from 31.3% in 2013 to 34.5% in 2014. This is the highest growth rate amongst publicly quoted retailers for the second consecutive year. We had strong LFL sales growth of 10.6% for the full year, LFL food sales growth was significantly higher at 12.1%, while non-food was under pressure. Based on the unaudited management accounts we expect Adjusted EBITDA margin for the full year of 2014 to exceed the current analyst consensus.

It is clear that the economy will face further challenges in 2015. Lenta will continue to focus on improving value for our customers and increasing productivity. Our team has developed a very strong pipeline of projects for the upcoming years, but we will closely monitor market conditions and optimise our store opening programme as appropriate to maintain high returns in combination with a healthy balance sheet. Having added around 195,000 sq.m. of selling space in 2014 we remain on track to meet our long-term target of doubling net selling space over the three years to December 2016."