Fix Price announces key operating results and revenue for Q4 and 12M 2022

26 January 2023, Limassol, Cyprus – Fix Price (LSE and MOEX: FIXP, the “Company” or the “Group”), one of the leading variety value retailers globally and the largest in Russia, today announces its operating results based on management accounts for the fourth quarter (Q4 2022) and twelve months (12M 2022) ended 31 December 2022.

Operating summary for Q4 2022

• Revenue increased by 13.9% y-o-y to RUB 75.8 billion, supported by the Company’s store network expansion and LFL sales growth

• Retail revenue reached RUB 67.4 billion, up 14.0% y-o-y
• Wholesale revenue increased by 13.3% y-o-y and stood at
  RUB 8.4 billion

• LFL sales[1] adjusted for the rouble appreciation effect[2] grew by 5.2% y-o-y (by 3.9% before the adjustment)

• The LFL average ticket adjusted for the rouble appreciation effect increased by 9.7% y-o-y (by 8.3% before the adjustment) due to proactive work with the Company’s merchandise and attractive value proposition, as well as a higher share of upper-range price points in retail sales
• LFL traffic was down 4.1% amid continued subdued consumer confidence
• LFL sales at Company-operated stores in Russia increased by 5.5%. LFL sales dynamics at Company-operated stores in Kazakhstan and Belarus remained negatively affected by the rouble appreciation effect
• The share of non-food items in retail sales increased by 3.9 pps q-o-q to 48.4%, supported by seasonal ranges. At the same time, LFL sales of food and drogerie (household chemicals and hygiene products) in stores in Russia cumulatively reached 15.0% y-o-y, reflecting Fix Price’s strong value proposition for everyday essentials

• The Company opened 201 stores in Q4 2022 on a net basis (17 of which are franchised), bringing the total number of stores to 5,663
• The total selling space of stores operating under the Fix Price brand increased by 44.7 thous. sqm to 1,225.4 thous. sqm
• During the quarter, Fix Price attracted 1.4 million new loyalty programme members[3], with the total number of registered cardholders amounting to 21.9 million (+28.7% y-o-y). Loyalty card transactions accounted for 60.7% of retail sales. The average ticket for purchases with a loyalty card was 1.8x higher than the average ticket for non-loyalty-card purchases

Operating summary for 12M 2022

• Revenue grew by 20.5% y-o-y to RUB 277.6 billion

• Retail revenue reached RUB 246.2 billion, representing growth of 21.1% y-o-y
• Wholesale revenue grew 15.8% y-o-y to RUB 31.4 billion

• LFL sales adjusted for the rouble appreciation effect increased by
  11.0% y-o-y (by 10.1% before the adjustment), in line with the initial IPO guidance, as the Company’s business model yet again proved successful despite external headwinds:

• The LFL average ticket adjusted for the rouble appreciation effect was up 13.9% (12.9% before the adjustment)
• LFL traffic decreased by 2.5%
• LFL sales of food and drogerie in stores in Russia in 2022 cumulatively reached 22.8% y-o-y

• 759 Fix Price stores were opened on a net basis, including 671 Company-operated stores and 88 franchised outlets, which exceeds the previously announced guidance of 750 net openings for 2022
• The total selling space of Fix Price stores grew by 168.5 thous. sqm (+15.9% y-o-y)
• The total number of registered loyalty cardholders grew by 4.9 million to 21.9 million, with penetration in retail sales reaching 55.7%
• Gross margin for 2022 exceeded the level of 2021 by more than 1 pp
• EBITDA margin for 2022 exceeded the average level of 2020–2021, in line with the initial IPO guidance

“I am proud of the results that our team achieved in 2022 in a completely new environment not only for retail but also for global business as a whole. Fix Price’s revenue in 2022 increased by 20.5% to RUB 277.6 billion, alongside an 11.0% increase in adj. LFL sales. Despite the challenging macro environment, we kept our focus on development: we exceeded the targets outlined in our development plans and opened 759 new stores (net), which was more than the projected number of 750 net openings. This year, we have no intention of slowing down, and we plan to expand the Fix Price network by adding 750 stores.

“In January 2023, we opened our first franchised stores in Mongolia – our eighth country of operations. In the next few months, we will focus on testing and adapting the Fix Price business model to the specifics of the Mongolian market. If we are successful, we intend to continue developing our network there.

“We believe it is important to comment on the dividend situation. We continue to work on this issue, and we are developing solutions that, considering existing regulatory restrictions and sanctions, would take into account the interests of all shareholders. We confirm the Company’s intention to resume dividend payments in the future, which we will announce in due time.

“People are our key asset, and now more than ever it is important to motivate and support the team of experienced professionals with whom we have been successfully building the Fix Price business for many years. In this regard, a three-year long-term incentive programme for key staff was approved at the end of the year. This step is aimed at supporting the team’s continued excellent performance and creating incentives for long-term growth of the Company’s value in the interests of all stakeholders.”

Dmitry Kirsanov, Fix Price CEO