REG-Fix Price Group PLC Fix Price Group PLC: Fix Price announces key operating and financial results for Q2 and H1 2024
08/08/2024 08:00
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Fix Price Group PLC (FIXP)
Fix Price Group PLC: Fix Price announces key operating and financial
results for Q2 and H1 2024
08-Aug-2024 / 09:50 MSK
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Fix Price announces key operating and financial results for Q2 and H1 2024
Striving for customer excellence and delivering on strategic priorities in
a mixed market environment
8 August 2024, Astana, Kazakhstan – Fix Price Group PLC (LSE and MOEX:
FIXP; AIX: FIXP.Y; “Fix Price”, the “Company” or the “Group”), one of
the leading variety value retailers globally and the largest in Russia,
today announces its operating and auditor-reviewed IFRS financial
results for the six months ended 30 June 2024 (H1 2024).
Operating and financial summary for Q2 2024
• Revenue was up by 9.9% y-o-y to RUB 76.7 billion
• Retail revenue grew by 11.8% to RUB 69.3 billion
• Wholesale revenue stood at RUB 7.4 billion
• LFL sales 1 1 increased by 3.2% y-o-y, supported by category
management initiatives and signs of recovery in consumer confidence,
which resulted in more active impulse buying
• During the reporting period, the Company opened 177 net new stores
(including 15 franchise stores). As of 30 June 2024, Fix Price was
operating a total of 6,722 stores
• In Q2 2024, 37,800 sqm was added to the Company’s total selling
space, which reached 1,456,920 sqm (+11.4% y-o-y) as of the end of
the quarter
• During the quarter, 0.7 million new members 2 2 joined the loyalty
programme, bringing the total number of registered cardholders to
27.1 million (+13.0% y-o-y). Loyalty card transactions accounted for
59.9% of retail sales. The average ticket for purchases with a
loyalty card remains almost twice as high as the average ticket for
non-loyalty-card purchases
• Gross profit grew by 12.4% to RUB 26.0 billion, supported by
optimised cost of sales. Gross margin increased by 74 bps to 34.0%
thanks to efficient assortment management as well as improved
commercial terms with suppliers, which helped offset pressure from
volatile currency exchange rates
• SG&A costs (excl. LTIP expense 3 3 and D&A) as a percentage of
revenue were 17.3%, versus 15.3% in Q2 2023, mainly driven by growth
in staff costs, advertising, repair and maintenance costs and other
expenses as a percentage of revenue, which was partially offset by
improved cost management in terms of bank charges, rental expense,
security services and utilities
• Adjusted EBITDA 4 4 under IFRS 16 grew by 2.3% y-o-y to RUB 13.0
billion, supported by solid gross margin dynamics, which offset
higher SG&A costs. Adjusted EBITDA margin stood at 16.9%
• EBITDA under IFRS 16 was up 3.0% to RUB 12.8 billion. The EBITDA
margin was 16.7%
• Net profit stood at RUB 5.8 billion for the period. Net profit
margin was 7.6%
• CAPEX as a percentage of revenue decreased to 1.7% from 1.9% in Q2
2023, reflecting stable investments in new store openings amid
revenue growth
Operating and financial summary for H1 2024
• Revenue grew by 9.4% y-o-y and reached RUB 148.4 billion
• Retail revenue increased to RUB 132.7 billion, up 10.5% y-o-y
• Wholesale revenue was up 0.9% y-o-y to RUB 15.7 billion
• LFL sales increased by 1.9%
• During the past six months, Fix Price opened 308 stores on a net
basis, including 287 Company-operated stores and 21 franchise
outlets, in accordance with store opening guidance for 2024. Store
openings slowed versus the previous year, as the Company decided to
push store openings to the second half of the year, which has
generally been more profitable
• The total selling space of stores increased by 66,309 sqm to
1,456,920 sqm in H1 2024
• The total number of registered loyalty cardholders grew by 1.4
million from the beginning of the year to 27.1 million, with
penetration in retail sales reaching 60.4%
• Gross profit grew by 9.6% y-o-y to RUB 49.5 billion. Gross margin
increased by 7 bps y-o-y to 33.3%
• SG&A costs (excl. LTIP expense and D&A) as a percentage of revenue
reached 18.1%, compared to 15.7% in H1 2023, mainly reflecting
growth in staff costs, advertising, repair and maintenance costs and
other expenses as a percentage of revenue, which was partially
mitigated by improved cost management in terms of bank charges,
rental expense and security services
• Adjusted EBITDA under IFRS 16 was RUB 22.9 billion. Adjusted EBITDA
margin was 15.5%
• EBITDA under IFRS 16 stood at RUB 22.5 billion, with an EBITDA
margin of 15.2%
• Profit for the period stood at RUB 9.1 billion, reflecting increased
tax expense on the back of withholding tax paid as a result of
intra-group dividend distribution, as well as the high base of the
previous year when tax provisions were released as a result of a
reassessment of certain tax risks. Net profit margin was 6.1%
• CAPEX as a percentage of revenue decreased to 1.8% from 2.5% for H1
2023
“In the second quarter, we continued to see a recovery in consumer demand,
as evidenced by the 3.2% year-on-year increase in the Group’s LFL sales.
Consumers are making more frequent impulse purchases; due to inflation
expectations and overall uncertainty, however, they continue to save and
to look for the best deals. For our part, we remain committed to offering
low prices across all product categories.
During the reporting period, we remained focused on our seasonal
assortment, which was the main driver of a 5.7% increase in the LFL
average ticket. We observed heightened interest in vacation and leisure
goods and ongoing strong demand for kitchenware, household goods, DIY
products, and party and celebration supplies. We are also enhancing our
assortment of food products, including ice cream, milk and cereals, which
encourages more frequent visits and, in turn, boosts sales of interesting,
regularly updated products in our non-food categories, which dominate our
product mix.
I am proud of the fact that our initiatives to improve our stores’ value
proposition are resonating with customers. A recent study by Vector showed
that the percentage of customers with a positive view of our store format
had risen by 2 percentage points over the past year, to 92%.
We are dedicated to making the unique Fix Price shopping experience widely
accessible across all our geographies. Consequently, we continued our
organic growth in the second quarter, opening 177 new stores (net) and
reaffirming our guidance for 750 net openings in 2024. Notably, around 17%
of net openings in the reporting period took place in international
markets: we recently surpassed the mark of 600 stores in total in Belarus
and Kazakhstan, which are showing strong LFL sales growth, and our first
store in the United Arab Emirates opened its doors in July.
At the same time, the operating environment in the Russian retail market
remains challenging, with an acute labour shortage putting pressure on
profit margins alongside ongoing instability when it comes to freight
transport. Nevertheless, our extensive logistics management experience has
ensured the timely delivery of goods, including seasonal items, to store
shelves. Our constant focus on improving operational efficiency, including
the installation of self-checkout cash registers and the reduction of bank
fees, has partially mitigated margin pressures. Our adjusted EBITDA margin
improved to 16.9% on a quarterly basis, which remains one of the best
results in the sector. In the first half of the year, we earned RUB 9.1
billion in net profit, although this was impacted by withholding tax on
dividend payments, which we were able to declare despite infrastructure
challenges.
Our priorities remain respecting the rights and protecting the interests
of all investors, along with maintaining an open dialogue with the
investment community. We are continuously adapting to changing conditions
in capital markets. We are working on solutions to eliminate key
infrastructure restrictions for all Fix Price investors, including
minority shareholders, regardless of jurisdiction. Negotiations are
currently under way to appoint a successor depositary for our GDR
programme. As before, we will communicate all changes and decisions in due
course.”
Dmitry Kirsanov, Fix Price CEO
Store base, geographical coverage and selling space
30 June 2024 31 Dec 2023 30 June 2023
Total number of stores 6,722 6,414 6,039
Russia 6,021 5,756 5,428
Belarus 309 292 278
Kazakhstan 304 280 256
Latvia 45 46 40
Uzbekistan 23 22 21
Georgia 7 7 6
Kyrgyzstan 5 6 6
Mongolia 4 3 2
Armenia 4 2 2
Number of Company-operated stores 5,998 5,711 5,372
Russia 5,412 5,166 4,872
Belarus 299 282 268
Kazakhstan 287 263 232
Number of franchise stores 724 703 667
Russia 609 590 556
Latvia 45 46 40
Uzbekistan 23 22 21
Kazakhstan 17 17 24
Belarus 10 10 10
Georgia 7 7 6
Kyrgyzstan 5 6 6
Mongolia 4 3 2
Armenia 4 2 2
Selling space (sqm) 1,456,920 1,390,611 1,308,198
Company-operated stores 1,295,981 1,234,312 1,160,261
Franchise stores 160,940 156,299 147,937
Development of Company-operated stores
Q2 2024 Q2 2023 H1 2024 H1 2023
Gross openings 207 195 371 393
Russia 178 177 321 346
Kazakhstan 17 12 29 30
Belarus 12 6 21 17
Closures 45 29 84 60
Russia 43 26 75 49
Belarus 2 1 4 2
Kazakhstan - 2 5 9
Net openings 162 166 287 333
Russia 135 151 246 297
Kazakhstan 17 10 24 21
Belarus 10 5 17 15
Operating results
Store network expansion
• The total number of stores reached 6,722 (11.3% growth y-o-y); the
share of franchise stores amounted to 10.8% of the total store count
(down 27 bps y-o-y)
• During Q2 2024, Fix Price added 177 net new stores, including 162
Company-operated stores and 15 franchise stores, versus 191 net new
stores in Q2 2023, including 166 Company-operated stores and 25
franchise stores
• The Company closed 45 Company-operated stores in Q2 2024, in
comparison with 29 stores in Q2 2023, as a result of the Company’s
continued focus on controlling rental expense
• 16.9% of net openings in Q2 2024 took place outside of Russia, as
Fix Price continued on its growth path in Russia and
internationally. The share of international geographies increased to
10.4% of the total store base, compared to 10.1% as of 30 June 2023
• Total selling space increased by 37,800 sqm to 1,456,920 sqm as of
the end of the quarter (an 11.4% increase y-o-y). The average Fix
Price store selling space in Q2 2024 was 217 sqm
• During the quarter, the Company opened stores in 40 new localities
in its countries of operations. Fix Price’s international presence
covered nine countries as of 30 June 2024
LFL sales growth
• In Q2 2024, LFL sales increased by 3.2%, while the LFL average
ticket was up by 5.7%, and LFL traffic decreased by 2.3%. Overall
consumer sentiment was on the rise, which resulted in an increase in
impulse buying, although traffic recovery was still under pressure.
The fact that the seasonal assortment resonated with customers’
wants and demands supported the LFL average ticket. Category
management initiatives to introduce additional traffic drivers in
the food category, such as ice cream, shelf-stable milk, and
cereals, also helped support LFL sales
• LFL sales at Company-operated stores in Russia increased by 2.0%.
Rouble-denominated LFL sales dynamics in Kazakhstan and Belarus had
a positive effect on the Group’s LFL sales on the back of stronger
sales performance and the currency conversion effect
• Stores in Belarus and Kazakhstan demonstrated LFL sales growth in
their national currencies, thanks to consistent improvement in
traffic trends, although the average ticket in Kazakhstan was
affected by the high base of the previous year
Assortment and category mix 5 5
• The share of non-food in retail sales climbed to 47.7%, compared to
44.5% in Q2 2023, due to the Company’s strong LFL performance in
various non-food categories, such as kitchenware, household goods,
DIY, party and celebration products and seasonal products. The share
of food in retail sales decreased by 97 bps to 26.7%, while the
share of cosmetics, hygiene and household chemicals as a percentage
of retail sales declined to 25.6% in Q2 2024, versus 27.9% in
Q2 2023
• The share of imported goods in retail sales increased to 23.5% in Q2
2024, versus 21.4% in Q2 2023, reflecting a higher share of non-food
in sales
• The share of price points above RUB 100 in retail sales increased to
59.9% in Q2 2024, up from 42.4% in Q2 2023, which reflects the
higher share of more expensive non-food items above RUB 100. The
Company also continued to gradually move its assortment mix to the
mid- and higher price range. The share of price points above RUB 200
in retail sales increased to 15.6% in Q2 2024, up from 13.7% in Q2
2023
• The average ticket for all Company-operated stores grew by 6.1%
y-o-y to RUB 333 as a result of constant assortment rotation and
gradual repricing
Loyalty programme development
• As of 30 June 2024, the total number of registered loyalty
cardholders reached 27.1 million (13.0% growth y-o-y). Fix Price
attracted 0.7 million new cardholders during the reporting period.
Active loyalty programme members 6 6 accounted for 41.9% of the
total number of loyalty cardholders
• Transactions using loyalty cards accounted for 59.9% of total retail
sales in Q2 2024, compared to 62.5% in Q2 2023
• Loyalty cardholders’ average ticket stood at RUB 472, which was
almost twice as high as the average ticket of RUB 244 for
non-loyalty-card purchases
Financial results for Q2 2024 and H1 2024
Statement of comprehensive income highlights
RUB million Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change
Revenue 76,707 69,782 9.9% 148,391 135,677 9.4%
Retail revenue 69,312 61,987 11.8% 132,661 120,086 10.5%
Wholesale revenue 7,395 7,795 (5.1)% 15,730 15,591 0.9%
Cost of sales (50,660) (46,600) 8.7% (98,910) (90,529) 9.3%
Gross profit 26,047 23,182 12.4% 49,481 45,148 9.6%
Gross margin, % 34.0% 33.2% 74 bps 33.3% 33.3% 7 bps
SG&A (excl. LTIP and (13,245) (10,666) 24.2% (26,844) (21,356) 25.7%
D&A)
Other op. income and
share of profit of 151 142 6.3% 304 301 1.0%
associates
Adjusted EBITDA 7 7 12,953 12,658 2.3% 22,941 24,093 (4.8)%
Adjusted EBITDA 16.9% 18.1% (125) 15.5% 17.8% (230)
margin, % bps bps
EBITDA 12,772 12,401 3.0% 22,545 23,562 (4.3)%
EBITDA margin, % 16.7% 17.8% (112) 15.2% 17.4% (217)
bps bps
D&A (4,219) (3,661) 15.2% (8,262) (7,235) 14.2%
Operating profit 8,553 8,740 (2.1)% 14,283 16,327 (12.5)%
Operating profit 11.2% 12.5% (137) 9.6% 12.0% (241)
margin, % bps bps
Net finance costs (229) (254) (9.8)% (208) (591) (64.8)%
FX (loss)/gain, net (769) 424 n/a (710) 907 n/a
Profit before tax 7,555 8,910 (15.2)% 13,365 16,643 (19.7)%
Income tax (1,745) 4,883 n/a (4,265) 3,003 n/a
(expense)/benefit
Profit for the period 5,810 13,793 (57.9)% 9,100 19,646 (53.7)%
Net profit margin, % 7.6% 19.8% (1,219) 6.1% 14.5% (835)
bps bps
Selling, general and administrative expenses 8 8
RUB million Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change
Staff costs (excl. LTIP) 10,173 7,920 28.4% 20,692 15,942 29.8%
% of revenue 13.3% 11.3% 191 bps 13.9% 11.7% 219 bps
Bank charges 801 848 (5.5)% 1,693 1,645 2.9%
% of revenue 1.0% 1.2% (17) bps 1.1% 1.2% (7) bps
Rental expense 456 429 6.3% 809 801 1.0%
% of revenue 0.6% 0.6% (2) bps 0.5% 0.6% (5) bps
Security services 523 488 7.2% 1,029 992 3.7%
% of revenue 0.7% 0.7% (2) bps 0.7% 0.7% (4) bps
Advertising costs 277 158 75.3% 580 362 60.2%
% of revenue 0.4% 0.2% 13 bps 0.4% 0.3% 12 bps
Repair and maintenance 305 246 24.0% 573 469 22.2%
costs
% of revenue 0.4% 0.4% 5 bps 0.4% 0.3% 4 bps
Utilities 234 227 3.1% 506 465 8.8%
% of revenue 0.3% 0.3% (2) bps 0.3% 0.3% (0) bps
Other expenses 476 350 36.0% 962 680 41.5%
% of revenue 0.6% 0.5% 12 bps 0.6% 0.5% 15 bps
SG&A (excl. LTIP and 13,245 10,666 24.2% 26,844 21,356 25.7%
D&A)
% of revenue 17.3% 15.3% 198 bps 18.1% 15.7% 235 bps
LTIP expense 181 257 (29.6)% 396 531 (25.4)%
% of revenue 0.2% 0.4% (13) bps 0.3% 0.4% (12) bps
Depreciation of 3,145 2,769 13.6% 6,227 5,487 13.5%
right-of-use assets
% of revenue 4.1% 4.0% 13 bps 4.2% 4.0% 15 bps
Other depreciation and 1,074 892 20.4% 2,035 1,748 16.4%
amortisation
% of revenue 1.4% 1.3% 12 bps 1.4% 1.3% 8 bps
Total SG&A 17,645 14,584 21.0% 35,502 29,122 21.9%
% of revenue 23.0% 20.9% 210 bps 23.9% 21.5% 246 bps
In Q2 2024, the Group recorded revenue growth of 9.9% y-o-y, reaching
RUB 76.7 billion as a result of an 11.8% increase in retail revenue,
which offset a 5.1% decrease in wholesale revenue.
Retail revenue reached RUB 69.3 billion, driven by new store openings
and LFL sales growth. Wholesale revenue totalled RUB 7.4 billion, while
the share of wholesale revenue decreased by 153 bps to 9.6% of total
revenue on the back of faster growth of the Company-operated network and
a slowdown in sales of franchise stores.
Gross profit increased by 12.4% y-o-y and reached RUB 26.0 billion in Q2
2024. Gross margin improved by 74 bps y-o-y and stood at 34.0% thanks to
efficient assortment and category mix management. The Company also made
some early payments to suppliers from its substantial cash balance to
benefit from better commercial terms, which helped mitigate pressure on
gross margin from unfavourable currency exchange rates.
Transportation costs were up 34 bps y-o-y to 2.0% of revenue in Q2 2024,
mainly on the back of higher tariffs in Russia.
Inventory write-downs stood at 0.7% of revenue, compared to 1.1% in Q2
2023, reflecting lower accruals based on the results of the FY 2023
inventory count.
Selling, general and administrative expenses (SG&A) excluding LTIP and
D&A expenses grew by 198 bps y-o-y to 17.3% of revenue, mainly driven by
growth in staff costs, advertising, repair and maintenance costs and
other expenses as a percentage of revenue, which was partially offset by
improved cost management in terms of bank charges, rental expense,
security services and utilities.
Staff costs excluding LTIP increased by 191 bps y-o-y to 13.3% of
revenue, driven by salary indexation amid persisting market-wide labour
shortages and an increased number of personnel due to the opening of new
DCs in 2023.
LTIP expense stood at RUB 181 million in Q2 2024, versus RUB 257 million
in Q2 2023.
Depreciation and amortisation (D&A) expenses increased by 25 bps y-o-y
to 5.5% of revenue. Depreciation of right-of-use assets grew by 13 bps
y-o-y to 4.1% of revenue as a result of an increase in the amount of
right-of-use assets amid store network expansion. The share of other
depreciation and amortisation expenses rose 12 bps to 1.4% of revenue.
Rental expense (under IFRS 16) decreased by 2 bps y-o-y to 0.6% of
revenue (down 3 bps to 0.7% of retail revenue), on the back of a decline
in the share of the variable component in the lease payment structure
due to softer revenue growth.
Rental expense (under IAS 17) increased by 15 bps y-o-y to 5.2% of
revenue (up 7 bps to 5.8% of retail revenue), reflecting the impact of
lease expenses under fixed-rate contracts (34% of the total contract
base), which are not sensitive to store revenue dynamics, and the fixed
component of variable contracts.
Bank charges were down 17 bps y-o-y to 1.0% of revenue thanks to reduced
acquiring commissions on bank card transactions on the back of improved
commercial terms with banks and payment systems, as well as a higher
share of payments through the Faster Payment System and cards with lower
fees.
Security costs were down 2 bps y-o-y to 0.7% of revenue thanks to the
operational leverage effect despite growing competition in the labour
market.
Repair and maintenance costs increased by 5 bps y-o-y to 0.4% of revenue
due to increased spending on service for self-checkout cash registers,
which are installed across the store network, and growth in purchases of
consumable materials.
Utilities were flat y-o-y at 0.3% of revenue, while other expenses were
up 12 bps and stood at 0.6% of revenue.
Advertising costs grew by 13 bps to 0.4% of revenue due to increased
marketing activity.
The Group’s total SG&A expenses were 23.0% of revenue, up 210 bps y-o-y,
mostly on the back of a 191 bps increase in the share of staff costs,
excluding LTIP, and 25 bps growth in the share of D&A expenses.
Other operating income and the share of profit of associates was flat
y-o-y and accounted for 0.2% of revenue.
EBITDA IFRS 16 and IAS 17 reconciliation
RUB million Q2 2024 Q2 2023 Change H1 2024 H1 2023 Change
EBITDA (IFRS 16) 12,772 12,401 3.0% 22,545 23,562 (4.3)%
EBITDA margin (IFRS 16.7% 17.8% (112) bps 15.2% 17.4% (217) bps
16), %
LTIP expense 181 257 (29.6)% 396 531 (25.4)%
Adjusted EBITDA (IFRS 12,953 12,658 2.3% 22,941 24,093 (4.8)%
16)
Adjusted EBITDA margin 16.9% 18.1% (125) bps 15.5% 17.8% (230) bps
(IFRS 16), %
Rental expense (3,538) (3,098) 14.2% (6,960) (6,097) 14.2%
Utilities (59) (56) 5.4% (117) (109) 7.3%
Adjusted EBITDA (IAS 9,356 9,504 (1.6)% 15,864 17,887 (11.3)%
17)
Adjusted EBITDA margin 12.2% 13.6% (142) bps 10.7% 13.2% (249) bps
(IAS 17), %
LTIP expense (181) (257) (29.6)% (396) (531) (25.4)%
EBITDA (IAS 17) 9,175 9,247 (0.8)% 15,468 17,356 (10.9)%
EBITDA margin (IAS 12.0% 13.3% (129) bps 10.4% 12.8% (237) bps
17), %
Adjusted EBITDA under IFRS 16 grew by 2.3% y-o-y to RUB 13.0 billion,
supported by strong gross margin dynamics, which offset the growth of
SG&A costs. Adjusted EBITDA margin was 16.9%, versus 18.1% in Q2 2023.
EBITDA under IFRS 16 increased by 3.0% y-o-y to RUB 12.8 billion. The
EBITDA margin was 16.7%, compared to 17.8% in Q2 2023.
Adjusted EBITDA under IAS 17 was almost flat y-o-y at RUB 9.4 billion.
The IAS 17-based adjusted EBITDA margin amounted to 12.2%, versus 13.6%
for Q2 2023.
Net finance costs decreased by 9.8% y-o-y to RUB 229 million mainly due
to higher interest income on the Group’s deposits, which was partially
offset by higher cost of funding and lease liabilities on the back of
store network expansion.
During Q2 2024, the Group recorded an FX loss of RUB 769 million,
compared to a gain of RUB 424 million in Q2 2023, on the back of rouble
appreciation during the reporting period and subsequent losses on the
revaluation of the Group’s bank accounts and deposits denominated in
foreign currencies, the revaluation of forward contracts and the
rouble-denominated intra-group accounts payable of the Group’s
international entities, which were partially offset by a gain on the
revaluation of trade accounts payable.
Income tax expense amounted to RUB 1.7 billion in Q2 2024, versus a tax
benefit of RUB 4.9 billion in Q2 2023, when tax provisions were released
as a result of a reassessment of certain tax risks.
The Group recorded profit for the period of RUB 5.8 billion, compared to
RUB 13.8 billion in Q2 2023. The net profit margin stood at 7.6%.
Statement of financial position highlights
RUB million 30 June 2024 31 Dec 2023 30 June 2023
Current loans and borrowings 15,036 10,024 15,019
Non-current loans and borrowings 4,855 4,675 4,503
Current lease liabilities 9,104 8,800 8,476
Non-current lease liabilities 4,763 4,974 4,920
Cash and cash equivalents (39,518) (37,343) (29,373)
(Net cash) / net debt (5,760) (8,870) 3,545
(Net cash) / net debt to EBITDA (0.1)x (0.2)x 0.07x
(IFRS 16) 9 9
Current lease liabilities (9,104) (8,800) (8,476)
Non-current lease liabilities (4,763) (4,974) (4,920)
IAS 17-based (net cash) (19,627) (22,644) (9,851)
IAS 17-based (net cash) to EBITDA (0.5)x (0.6)x (0.2)x
Current loans and borrowings remained flat y-o-y at RUB 15.0 billion, as
the Company aims to maintain an optimal level of financial debt with
modest variation throughout the year. Non-current loans and borrowings
amounted to RUB 4.9 billion, up RUB 0.4 billion y-o-y and RUB 0.2
billion from the beginning of the year. Total loans and borrowings stood
at RUB 19.9 billion, compared to RUB 19.5 billion as of 30 June 2023 and
RUB 14.7 billion as of 31 December 2023. Lease liabilities rose
slightly, to RUB 13.9 billion, in comparison with RUB 13.4 billion as of
30 June 2023 and RUB 13.8 billion at the beginning of the year. As a
result, total loans, borrowings and lease liabilities amounted to RUB
33.8 billion, up by 2.6% y-o-y and 18.6% from the beginning of 2024.
The Company’s IAS 17-based net cash position improved to RUB 19.6
billion from RUB 9.9 billion as of 30 June 2023 on the back of an
accumulated cash cushion, though it was down slightly from RUB 22.6
billion as of 31 December 2023 due to the payment of an interim dividend
of RUB 8.4 billion in Q1 2024. The IAS 17-based net cash to EBITDA ratio
stood at a conservative level of 0.5x, versus 0.2x as of 30 June 2023
and 0.6x as of 31 December 2023.
Statement of cash flows highlights
RUB million Q2 2024 Q2 2023 H1 2024 H1 2023
Profit before tax 7,555 8,910 13,365 16,643
Cash from operating activities before 13,492 13,389 24,042 25,535
changes in working capital
Changes in working capital (1,401) (444) (5,512) (4,727)
Net cash generated from operations 12,091 12,945 18,530 20,808
Net interest paid (130) (253) (16) (649)
Income tax paid (818) (748) (3,995) (3,018)
Net cash flows from operating activities 11,143 11,944 14,519 17,141
Net cash flows used in investing (1,249) (1,251) (2,613) (3,375)
activities
Net cash flows from / used in financing 1,918 (2,846) (9,458) (8,122)
activities
Effect of exchange rate fluctuations on (288) (50) (273) 145
cash and cash equivalents
Net increase in cash and cash 11,524 7,797 2,175 5,789
equivalents
Net trade working capital 10 10 grew to RUB 17.5 billion (5.7% of
revenue) 11 11 as of 30 June 2024, versus RUB 14.5 billion (5.0% of
revenue) as of 31 December 2023, while still remaining at a comfortable
level. Considering its strong liquidity cushion, the Company purchased
additional inventory to maintain sufficient stock of traffic-driving
essentials and seasonal items in order to support LFL sales.
CAPEX for Q2 2024 remained flat y-o-y and amounted to RUB 1.3 billion,
primarily reflecting investments in new store openings.
About the Company
Fix Price (LSE and MOEX: FIXP; AIX: FIXP.Y), one of the leading variety
value retailers globally and the largest in Russia, offers its customers a
compelling and constantly updated assortment of non-food goods, including
personal care and household products, and food items at low fixed price
points.
As of 30 June 2024, Fix Price was operating 6,722 stores in Russia and
neighbouring countries, all of them stocking approximately 2,000 SKUs
across around 20 product categories. As well as its own private brands,
Fix Price sells products from leading global names and smaller local
suppliers. As of 30 June 2024, the Company was operating 13 DCs covering
81 regions of Russia and 8 neighbouring countries.
In 2023, the Company recorded revenue of RUB 291.9 billion, EBITDA of RUB
53.1 billion and net profit of RUB 35.7 billion, in accordance with IFRS.
Fix Price Investor Relations Fix Price Media Relations
Contacts Elena Mironova Ekaterina Goncharova
12 ir@fix-price.com pr@fix-price.com
══════════════════════════════════════════════════════════════════════════
13 1 Here and hereinafter, like-for-like (LFL) sales, average ticket
and number of tickets are calculated based on the results of stores
operated by Fix Price and that were open for at least 12 full calendar
months preceding the reporting date. LFL sales and average ticket are
calculated based on retail sales including VAT. LFL numbers exclude stores
that were temporarily closed for seven or more consecutive days during the
reporting period and/or comparable periods
14 2 Here and hereinafter, loyalty programme data is calculated for Fix
Price stores operating in Russia
15 3 LTIP expense – expense related to the long-term incentive
programme (LTIP)
16 4 EBITDA adjusted for LTIP expense. EBITDA is calculated as profit
for the respective period before income tax expense, net interest
income/(expense), depreciation and amortisation expense, and foreign
exchange gain/(loss)
17 5 Unless stated otherwise, the data in this section refers to
Company-operated stores in Russia
18 6 Members of the loyalty programme who make at least one purchase
per month
19 7 EBITDA adjusted for LTIP expense
20 8 The total may not equal the sum of the components due to rounding
21 9 Here and hereinafter, the calculation of net debt (net cash) to
EBITDA is based on EBITDA for the last 12 months
22 10 Net trade working capital is calculated as inventories plus
receivables and other financial assets minus payables and other financial
liabilities
23 11 The calculation of the percentage of net trade working capital in
revenue is based on revenue for the last 12 months
══════════════════════════════════════════════════════════════════════════
Dissemination of a Regulatory Announcement that contains inside
information in accordance with the Market Abuse Regulation (MAR),
transmitted by EQS Group.
The issuer is solely responsible for the content of this announcement.
══════════════════════════════════════════════════════════════════════════
ISIN: US33835G2057
Category Code: MSCU
TIDM: FIXP
LEI Code: 549300EXJV1RPGZNH608
OAM Categories: 2.2. Inside information
Sequence No.: 339226
EQS News ID: 1963555
End of Announcement EQS News Service
══════════════════════════════════════════════════════════════════════════
24 fncls.ssp?fn=show_t_gif&application_id=1963555&application_name=news&site_id=reuters~~~6aa99418-46f7-48b9-89fd-959a8d2e4912
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