In the first half of the year, Lenta announced its intention to acquire the Billa Russia retail network and has even already received permission from the FAS for the transaction. Also yesterday, the Antimonopoly Service approved the takeover of the Perm network “Family». Nevertheless, Lenta’s stock prices have fallen by 13% since the beginning of the year. On Monday, the IFRS report for the first half of the year was released, to which the shares reacted with a fall. What can investors expect?
!Lenta’s revenue in the first half of the year increased by 0.5% to 218 billion, while comparable sales (LFL) fell by 0.7%.
However, the drop in net profit is already more serious, by 42% to 5.1 billion rubles. It is associated with an increase in administrative expenses, which in turn turned out to be high due to the current business transformation.
Positive changes in the business began after the controlling stake, namely 77% of the shares, was transferred to Severgroup
However, it is impossible to change such a huge business in one day or even a month. The transformation may take years, but it is clear that at least as a business, Lenta is trying to keep up with X5 and Magnet.
New store formats, as well as the growth of assets due to the acquisition of new chains, can have a positive impact on Lenta’s profit
Therefore, at the moment there is nothing interesting in the shares. Even if they declare dividends, the very fact of the announcement of shares may be perceived positively, but fundamentally their size will still be small. However, if the shares fall into the 190-200 zone, then perhaps you can look at these shares.
Always analyze the securities and buy and sell only in accordance with your strategy.
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