DJ Fix Price announces key operating and financial results for Q3 and 9M 2023
Fix Price Group PLC (FIXP)
Fix Price announces key operating and financial results for Q3 and 9M 2023
31-Oct-2023 / 09:50 MSK
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Fix Price announces key operating and financial results for Q3 and 9M 2023
A flexible business model is pivotal for sustaining long-term leadership and creating shareholder value amid an
uncertain environment
31 October 2023, Limassol, Cyprus - 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 IFRS financial results based on management accounts for the
third quarter (Q3 2023) and nine months (9M 2023) ended 30 September 2023.
Operating AND FINANCIAL summary for Q3 2023
-- Revenue grew by 6.3% y-o-y to RUB 74.5 billion
-- Retail revenue was RUB 66.1 billion, up 6.3% y-o-y
-- Wholesale revenue stood at RUB 8.4 billion, up 6.0% y-o-y
-- In Q3 2023, LFL sales[1] were 2.8% lower y-o-y amid the high base effect from last year and
continued cautious consumer behaviour
-- During the quarter, the Company opened 123 net new stores (including 19 franchises); the
total number of stores reached 6,162 as of the end of the reporting period. Store opening dynamics
saw a certain slowdown as the Company decided to push store openings to the generally more profitable
fourth quarter
-- The total selling space of the stores increased by 27.2 thous. sqm to 1,335.4 thous. sqm
(13.1% y-o-y growth)
-- The total number of registered loyalty cardholders increased by 0.8 million new members[2]
over the quarter to 24.8 million (+21.5% y-o-y). Loyalty card transactions as a percentage of retail
sales increased by 5.0 pps y-o-y and reached 61.4%. The average ticket for purchases with a loyalty
card was 1.9x higher than the average ticket for non-loyalty-card purchases
-- Gross profit increased by 11.0% y-o-y to RUB 25.2 billion. Gross margin was up 143 bps
y-o-y to 33.9% thanks to efficient assortment and category mix management, an increased share of
non-food products, as well as the positive impact of the Company's performance in Kazakhstan and
Belarus
-- SG&A costs (excl. LTIP expense[3] and D&A) as a percentage of revenue totalled 15.0%,
compared to 14.1% a year ago, due to higher staff costs, banking charges, advertising and repair and
maintenance costs as well as the negative operating leverage effect, to some extent mitigated by
gained efficiencies in rental expense, security services and other expenses
-- Adjusted EBITDA[4] under IFRS 16 totalled RUB 14.2 billion, up 8.0% y-o-y. Adjusted EBITDA
margin increased by 29 bps to 19.0%
-- EBITDA under IFRS 16 was up 5.8% y-o-y to RUB 13.9 billion, with the EBITDA margin
generally flat at 18.7%, reflecting positive gross margin dynamics partially offset by pressure on SG
&A costs (excl. D&A)
-- Profit for the period grew by 6.4% y-o-y to RUB 7.4 billion. Net profit margin was up by 1
bp y-o-y to 10.0%
-- CAPEX as a percentage of revenue decreased to 2.1% from 2.6% in Q3 2022 amid lower
investments in logistics due to the planned completion of the construction phase of distribution
centres that started in 2022
Operating and financial summary for 9M 2023
-- Revenue increased by 4.1% y-o-y to RUB 210.2 billion
-- Retail revenue stood at RUB 186.2 billion, up 4.1% y-o-y
-- Wholesale revenue was up 4.2% y-o-y and stood at RUB 24.0 billion
-- LFL sales were down 5.3%
-- During the first nine months of 2023, 499 stores were opened on a net basis, including 437
Company-operated stores and 62 franchise outlets
-- In 9M 2023, the total selling space of the stores grew by 110.0 thous. sqm to 1,335.4
thous. sqm
-- The total number of registered loyalty cardholders grew by 3.0 million to 24.8 million,
with penetration in retail sales reaching 62.4%
-- Gross profit increased by 6.3% y-o-y to RUB 70.4 billion. Gross margin improved by 69 bps
y-o-y and stood at 33.5%
-- SG&A costs (excl. LTIP expense and D&A) as a percentage of revenue was 15.5%, compared to
13.9% a year ago, on the back of the negative operating leverage effect and high labour market
competition
-- Adjusted EBITDA under IFRS 16 reached RUB 38.3 billion, versus RUB 39.1 billion for 9M
2022. Adjusted EBITDA margin was 18.2%
-- EBITDA under IFRS 16 was RUB 37.5 billion, with an EBITDA margin of 17.8%, reflecting gross
margin growth offset by higher SG&A costs (excl. D&A)
-- Profit for the reporting period was up 124.0% y-o-y to RUB 27.1 billion. Net profit margin
grew to 12.9%, compared to 6.0% for 9M 2022
"Our business model again proved effective during the reporting period, as we enjoyed high profit margins in the face
of cautious consumer sentiment. Revenue for Q3 2023 reached RUB 75 billion, while our operating margin was 13.4%. Going
forward, we intend to further expand our network while maintaining a balance between growth and profitability. Even
though some of our planned openings for the reporting period were postponed until the higher-yielding fourth quarter,
our annual forecast of 750 net openings remains unchanged.
"In the third quarter, we saw a quarterly improvement in LFL performance on the back of accelerated growth of retail
turnover in Russia. However, households continued to favour large purchases in non-food categories due to the weakening
of the rouble and inflationary pressure. For our part, we are proceeding with our unceasing work to improve our stores'
value proposition, and we are studying customer needs even more closely on the basis of sales data, our loyalty
programme and market research. We expanded our offer of popular new products in the non-food segment, and we are seeing
a positive trend in LFL sales in the categories of kitchenware, accessories and party supplies.
"I am proud that over the past year we have managed to enrol about 4.5 million new members in our loyalty programme,
and, as a result, the total number of cardholders has now surpassed 25 million. It is important that, in addition to
the rapid growth in the number of users, the programme's effectiveness and member engagement have also improved - for
example, in the reporting period, the average ticket of loyal customers was 90% higher than that of customers without a
loyalty card; a year ago, this figure was at 80%.
"The labour market remains highly competitive, and we expect staff costs to continue to put pressure on profitability
in the medium term. Nevertheless, we increased our gross margin during the reporting period and delivered a robust
adjusted EBITDA margin of 19.0%. In the third quarter, we also improved working capital turnover, despite moderate
business growth, thanks to more efficient planning and assortment management.
"In addition to improving operational efficiency, we are focused on finding solutions to ensure the utmost protection
of the interests of all stakeholders and increase the value of our business for shareholders. With that in mind, on 16
September Fix Price's GDRs were listed on the Astana International Exchange (AIX), while in November of this year an
extraordinary meeting of shareholders will be held to discuss the issue of re-domiciliation to Kazakhstan. We hope that
this will help diversify our shareholder base and potentially increase the liquidity of the Company's securities.
"The issue of dividends remains one of our priorities. We are committed to paying out dividends again, and we are now
actively exploring possible options that, given the regulatory environment, would address the interests of all
shareholders."
Dmitry Kirsanov, Fix Price CEO
Store base, geographical coverage and selling space
30 Sep 2023 31 Dec 2022 30 Sep 2022 Total number of stores 6,162 5,663 5,462 Russia 5,537 5,098 4,932 Belarus 282 263 247 Kazakhstan 262 235 221 Latvia 42 36 32 Uzbekistan 22 19 19 Georgia 6 6 5 Kyrgyzstan 6 6 6 Mongolia 3 - - Armenia 2 - - Number of Company-operated stores 5,476 5,039 4,855 Russia 4,966 4,575 4,421 Belarus 272 253 237 Kazakhstan 238 211 197 Number of franchise stores 686 624 607 Russia 571 523 511 Latvia 42 36 32 Kazakhstan 24 24 24 Uzbekistan 22 19 19 Belarus 10 10 10 Georgia 6 6 5 Kyrgyzstan 6 6 6 Mongolia 3 - - Armenia 2 - - Selling space (sqm) 1,335,363 1,225,360 1,180,683 Company-operated stores 1,183,229 1,087,047 1,046,287 Franchise stores 152,134 138,313 134,396
Development of Company-operated stores
Q3 2023 Q3 2022 9M 2023 9M 2022
Gross openings 144 193 537 581
Russia 126 167 472 497
Kazakhstan 8 10 25 34
Belarus 10 16 40 50
Uzbekistan - - - -
Closures 40 27 100 94
Russia 32 17 81 51
Kazakhstan 4 - 6 -
Belarus 4 - 13 1
Uzbekistan - 10 - 42
Net openings 104 166 437 487
Russia 94 150 391 446
Kazakhstan 4 10 19 34
Belarus 6 16 27 49
Uzbekistan - (10) - (42)
Operating results
Store network expansion
-- The total number of stores reached 6,162 as of 30 September 2023 (12.8% growth y-o-y); the
share of franchise stores in the total store count remained flat y-o-y at 11.1%
-- During Q3 2023, the Company opened 123 new stores on a net basis, including 104
Company-operated stores and 19 franchise stores, compared to 195 net new stores in Q3 2022, including
166 Company-operated stores and 29 franchise stores. A certain slowdown in store openings was driven
by the Company's decision to push store openings to the generally more profitable fourth quarter
-- Fix Price closed 40 Company-operated stores in Q3 2023, compared to 27 stores in Q3 2022,
as a result of the Company's continued focus on improving its lease terms
-- Some 11.4% of net openings in Q3 2023 were international. As of the end of the reporting
period, the share of stores outside Russia grew to 10.1% of the total store base, compared to 9.7% as
of 30 September 2022
-- Total selling space increased by 27.2 thous. sqm during Q3 2023 to 1,335.4 thous. sqm
(13.1% growth y-o-y). The average selling space of a Fix Price store was 217 sqm as of 30 September
2023
-- During the quarter, the Company opened stores in 25 new localities. Fix Price's
international presence covered nine countries as of 30 September 2023
LFL sales growth
-- In Q3 2023, LFL sales were 2.8% lower y-o-y as a result of the continued high base effect
of the previous year. On top of that, amid the sharp depreciation of the rouble customers planned
their budgets around big non-food purchases. The LFL average ticket grew by 2.5%; LFL traffic was
5.1% lower y-o-y
-- LFL sales of Company-operated stores in Russia were down 5.4%. However, rouble-denominated
LFL performance in Kazakhstan and Belarus was supportive due to the currency conversion effect on the
back of rouble depreciation
-- Stores in Belarus showed positive LFL traffic dynamics, while in the national currency the
LFL average ticket was affected by the high base of the previous year and uneven assortment matrix
due to some operational hurdles. The LFL average ticket in stores in Kazakhstan in their national
currency improved on the back of granular work with the assortment. In both countries Fix Price
maintained an attractive value proposition amid inflationary pressure
Assortment and category mix[5]
-- The share of food continued to normalise, reaching 25.8%, versus 27.2% in Q3 2022 and 27.9%
in Q3 2021, when the demand for essentials was fuelled by consumer stockpiling. As a result, the
share of non-food items in retail sales grew to 44.5% in Q3 2023, compared to 42.7% in Q3 2022.
Demand for drogerie (household chemicals and hygiene products) remained strong thanks to efficient
assortment management, which supported an increase in the share of drogerie in retail sales to 27.9%
in Q3 2023, up from 26.4% in Q3 2022
-- In Q3 2023, the Company recorded positive LFL sales in kitchenware, DIY, party and
celebration products, stationery and books, pet care products and haberdashery goods despite the high
base of the previous year. September LFL sales in these categories contributed most to the overall
quarterly LFL sales due to the introduction of a trendy assortment, new kitchenware collections and
seasonal campaigns
-- The Company continued switching to local producers, which resulted in a decline in the
share of imports in retail sales to 21.9% in Q3 2023, versus 22.3% in Q3 2022
-- During the quarter, the share of price points above RUB 99 in retail sales reached 47.4%,
up from 38.0% in Q3 2022, as Fix Price efficiently rotated products between price points while
maintaining an attractive value proposition. The share of price points above RUB 199 in retail sales
was 14.5% in Q3 2023, versus 15.1% in Q3 2022, reflecting a shift in consumer demand towards an
assortment at low and middle price points
-- The average ticket for all Company-operated Fix Price stores grew by 2.8% y-o-y to RUB 337
in Q3 2023 as a result of constant assortment rotation and gradual repricing
Loyalty programme development
-- As of 30 September 2023, the total number of registered loyalty cardholders reached 24.8
million, up 21.5% y-o-y. The Company managed to attract 0.8 million new cardholders in Q3 2023 thanks
to promotional campaigns for loyalty programme members. On average around 52% of loyalty programme
cardholders were active members[6] in Q3 2023
-- Transactions using loyalty cards accounted for 61.4% of total retail sales in Q3 2023,
compared to 56.4% in Q3 2022
-- The average ticket for purchases made using a loyalty card was RUB 463, which was 1.9x
higher than the average ticket for non-loyalty-card purchases
Financial results for Q3 and 9M 2023
Statement of comprehensive income highlights
RUB million Q3 2023 Q3 2022 Change 9M 2023 9M 2022 Change
Revenue 74,519 70,099 6.3% 210,196 201,887 4.1%
Retail revenue 66,119 62,173 6.3% 186,205 178,861 4.1%
Wholesale revenue 8,400 7,926 6.0% 23,991 23,026 4.2%
Cost of sales (49,289) (47,371) 4.0% (139,818) (135,682) 3.0%
Gross profit 25,230 22,728 11.0% 70,378 66,205 6.3%
Gross margin, % 33.9% 32.4% 143 bps 33.5% 32.8% 69 bps
SG&A (excl. LTIP and D&A) (11,207) (9,907) 13.1% (32,563) (28,126) 15.8%
Other op. income and share of profit of associates 158 315 (49.8)% 459 1,048 (56.2)%
Adjusted EBITDA 14,181 13,136 8.0% 38,274 39,127 (2.2)%
Adjusted EBITDA margin, % 19.0% 18.7% 29 bps 18.2% 19.4% (117) bps
EBITDA 13,903 13,136 5.8% 37,465 39,127 (4.2)%
EBITDA margin, % 18.7% 18.7% (8) bps 17.8% 19.4% (156) bps
D&A (3,935) (3,317) 18.6% (11,170) (9,690) 15.3%
Operating profit 9,968 9,819 1.5% 26,295 29,437 (10.7)%
Operating profit margin, % 13.4% 14.0% (63) bps 12.5% 14.6% (207) bps
Net finance costs (25) (811) (96.9)% (616) (2,437) (74.7)%
FX gain / (loss), net (373) 434 n/a 534 (1,454) n/a
Profit before tax 9,570 9,442 1.4% 26,213 25,546 2.6%
Income tax expense (2,123) (2,444) (13.1)% 880 (13,453) n/a
Profit for the period 7,447 6,998 6.4% 27,093 12,093 124.0%
Net profit margin, % 10.0% 10.0% 1 bp 12.9% 6.0% 690 bps Selling, general and administrative expenses
RUB million Q3 2023 Q3 2022 Change 9M 2023 9M 2022 Change
Staff costs (excl. LTIP) 8,227 7,302 12.7% 24,169 20,302 19.0%
% of revenue 11.0% 10.4% 62 bps 11.5% 10.1% 144 bps
Bank charges 902 595 51.6% 2,547 1,904 33.8%
% of revenue 1.2% 0.8% 36 bps 1.2% 0.9% 27 bps
Rental expense 475 584 (18.7)% 1,276 1,639 (22.1)%
% of revenue 0.6% 0.8% (20) bps 0.6% 0.8% (20) bps
Security services 508 491 3.5% 1,500 1,348 11.3%
% of revenue 0.7% 0.7% (2) bps 0.7% 0.7% 5 bps
Advertising costs 278 173 60.7% 640 551 16.2%
% of revenue 0.4% 0.2% 13 bps 0.3% 0.3% 3 bps
Repair and maintenance costs 277 227 22.0% 746 825 (9.6)%
% of revenue 0.4% 0.3% 5 bps 0.4% 0.4% (5) bps
Utilities 204 194 5.2% 669 619 8.1%
% of revenue 0.3% 0.3% (0.3) bps 0.3% 0.3% 1 bp
Other expenses 336 341 (1.5)% 1,016 938 8.3%
% of revenue 0.5% 0.5% (4) bps 0.5% 0.5% 2 bps
SG&A (excl. LTIP and D&A) 11,207 9,907 13.1% 32,563 28,126 15.8%
% of revenue 15.0% 14.1% 91 bps 15.5% 13.9% 156 bps
LTIP expense 278 - - 809 - -
% of revenue 0.4% 0.0% 37 bps 0.4% 0.0% 38 bps
Depreciation of right-of-use assets 2,999 2,552 17.5% 8,486 7,374 15.1%
% of revenue 4.0% 3.6% 38 bps 4.0% 3.7% 38 bps
Other depreciation and amortisation 936 765 22.4% 2,684 2,316 15.9%
% of revenue 1.3% 1.1% 16 bps 1.3% 1.1% 13 bps
Total SG&A 15,420 13,224 16.6% 44,542 37,816 17.8%
% of revenue 20.7% 18.9% 183 bps 21.2% 18.7% 246 bps
The Group's revenue grew by 6.3% y-o-y and stood at RUB 74.5 billion in Q3 2023 on the back of a 6.3%
increase in retail revenue, as well as 6.0% growth y-o-y in wholesale revenue.
In Q3 2023, the Company's retail revenue reached RUB 66.1 billion mainly due to the growth of the store
network. Wholesale revenue grew to RUB 8.4 billion on the back of the opening of new franchise stores.
The share of wholesale revenue was flat y-o-y at 11.3% of the Company's total revenue.
Gross profit grew by 11.0% y-o-y and reached RUB 25.2 billion in Q3 2023. Gross margin improved by 143
bps y-o-y and stood at 33.9% thanks to efficient assortment and category mix management supported by
favourable trends in the rouble exchange rate for the purchase and delivery of imported products that
were sold in the reporting period, as well as the increased share of non-food products and the positive
impact of the Company's performance in Kazakhstan and Belarus.
Transportation costs remained almost flat at 1.6% of revenue in Q3 2023 despite growing tariffs.
Inventory write-downs were also stable at 1.0% of revenue in Q3 2023.
Selling, general and administrative expenses (SG&A) excluding LTIP and D&A expenses increased by 91 bps
y-o-y to 15.0% of revenue due to higher staff costs, banking charges, advertising and repair and
maintenance costs as well as the negative operating leverage effect, which was mitigated to some extent
by gained efficiencies in rental expense, security services and other expenses.
Staff costs excluding LTIP increased by 62 bps y-o-y to 11.0% of revenue, driven by salary indexation to
improve Fix Price's competitive position in the labour market amid widespread labour shortages, and also
due to the increased number of employees related to proactive new DCs openings.
Accruals for LTIP expense totalled RUB 278 million for Q3 2023.
Depreciation and amortisation (D&A) expenses were up 55 bps y-o-y to 5.3% of revenue. Depreciation of
right-of-use assets grew by 38 bps to 4.0% of revenue on the back of the increasing amount of
right-of-use assets due to the expansion of the store network, new leased DC openings and the negative
operating leverage effect. The share of other depreciation and amortisation expenses grew by 16 bps, as
the Company opened two owned DCs in September 2022 and March 2023.
The Group's total SG&A expenses grew by 183 bps y-o-y to 20.7% of revenue. The LTIP expense contribution
amounted to 37 bps, and the share of D&A expenses grew by 55 bps.
Rental expense (under IFRS 16) decreased by 20 bps y-o-y to 0.6% of revenue (down 22 bps to 0.7% of
retail revenue), due to a decrease in the share of the variable component in the lease payment structure
on the back of softer revenue growth dynamics.
Rental expense (under IAS 17) grew by 26 bps y-o-y to 5.0% of revenue (up 29 bps to 5.6% of retail
revenue), on the back of higher impact of lease expenses under fixed-rate contracts (37% of the total
contract base), which are generally less sensitive to store revenue dynamics. DC openings also added to
the y-o-y growth in rental expense in the reporting period.
Bank charges were up 36 bps y-o-y to 1.2% of revenue due to the low base of the previous year, when, from
18 April to 31 August 2022, the Central Bank of Russia reduced acquiring commissions on bank card
transactions for businesses selling socially important products and services.
Security costs were down 2 bps y-o-y to 0.7% of revenue 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 higher repair costs and
purchases of consumable materials.
Utilities were flat y-o-y at 0.3% of revenue, while other expenses were down 4 bps and stood at 0.5% of
revenue.
Advertising costs grew by 13 bps to 0.4% of revenue due to increased marketing activity.
Other operating income and the share of profit of associates decreased by 24 bps y-o-y to 0.2% of revenue
on the back of negative operating leverage. In addition, on the back of prevailing uncertainties over
developments in the Western regulatory framework, the Group suspended recognition of revenue from its
depositary bank in connection with the Company's IPO.
EBITDA IFRS 16 and IAS 17 reconciliation
RUB million Q3 2023 Q3 2022 Change 9M 2023 9M 2022 Change
EBITDA IFRS 16 13,903 13,136 5.8% 37,465 39,127 (4.2)%
EBITDA margin (IFRS 16), % 18.7% 18.7% (8) bps 17.8% 19.4% (156) bps
LTIP expense 278 - - 809 - -
Adjusted EBITDA IFRS 16 14,181 13,136 8.0% 38,274 39,127 (2.2)%
Adjusted EBITDA margin (IFRS 16), % 19.0% 18.7% 29 bps 18.2% 19.4% (117) bps
Rental expense (3,225) (2,715) 18.8% (9,322) (8,009) 16.4%
Utilities (55) (51) 7.8% (164) (134) 22.4%
Adjusted EBITDA IAS 17 10,901 10,370 5.1% 28,788 30,984 (7.1)%
Adjusted EBITDA margin (IAS 17), % 14.6% 14.8% (16) bps 13.7% 15.3% (165) bps
LTIP expense (278) - - (809) - -
EBITDA IAS 17 10,623 10,370 2.4% 27,979 30,984 (9.7)%
EBITDA margin (IAS 17), % 14.3% 14.8% (54) bps 13.3% 15.3% (204) bps
Adjusted EBITDA under IFRS 16 grew by 8.0% y-o-y to RUB 14.2 billion, while adjusted EBITDA margin stood
at 19.0%, up 29 bps y-o-y.
EBITDA under IFRS 16 increased by 5.8% y-o-y to RUB 13.9 billion in Q3 2023. The EBITDA margin remained
virtually unchanged at 18.7%, as higher SG&A expenses (excl. D&A) were mitigated by a strong gross margin
dynamics.
Adjusted EBITDA under IAS 17 grew by 5.1% y-o-y and totalled RUB 10.9 billion in Q3 2023. The IAS
17-based adjusted EBITDA margin amounted to 14.6%, versus 14.8% for Q3 2022.
Net finance costs for Q3 2023 were down by 96.9% y-o-y to RUB 25 million, driven by a decrease in loans
and borrowings on a y-o-y basis and higher interest income on Group deposits, partially offset by an
increase in the interest expense on lease liabilities on the back of growing interest rates in
August-September 2023.
During Q3 2023, the Group recorded an FX loss of RUB 373 million, compared to a RUB 434 million gain in
Q3 2022, on the back of rouble depreciation and a subsequent loss on the revaluation of trade accounts
payable, which was mitigated to some extent by the gain on the revaluation of the rouble-denominated
intragroup accounts payable of the Group's international entities, as well as the gain on the revaluation
of the Group's bank accounts and deposits denominated in foreign currencies.
Income tax expense was down by 13.1% y-o-y to RUB 2.1 billion in Q3 2023 due to the high base of the
previous year, when in Q3 2022 the Group made accruals for certain tax provisions.
Profit for the period grew by 6.4% y-o-y to RUB 7.4 billion. Net profit margin rose 1 bp y-o-y to 10.0%.
Statement of financial position highlights
RUB million 30 Sep 2023 31 Dec 2022 30 Sep 2022
Current loans and borrowings 15,026 17,576 16,514
Non-current loans and borrowings 4,584 4,352 4,260
Current lease liabilities 8,564 7,997 7,588
Non-current lease liabilities 4,731 4,615 4,427
Cash and cash equivalents (35,981) (23,584) (11,021)
(Net cash) / net debt (3,076) 10,956 21,768
(Net cash) / net debt to EBITDA (IFRS 16)[7] (0.1)x 0.2x 0.4x
Current lease liabilities (8,564) (7,997) (7,588)
Non-current lease liabilities (4,731) (4,615) (4,427)
IAS 17-based (net cash) / net debt (16,371) (1,656) 9,753
IAS 17-based (net cash) / net debt to EBITDA (0.4)x (0.04)x 0.2x
Non-current loans and borrowings stood at RUB 4.6 billion, up RUB 0.2 billion from the beginning of the
year. Current loans and borrowings decreased by 14.5% since the start of the year to RUB 15.0 billion due
to further debt reduction amid growing interest rates and a high accumulated cash position. Total loans
and borrowings stood at RUB 19.6 billion, compared to RUB 21.9 billion as of 31 December 2022. Lease
liabilities grew slightly, to RUB 13.3 billion, from RUB 12.6 billion at the start of the year, driven by
an increase in the number of lease contracts on the back of store network expansion. As a result, the
Group's total loans, borrowings and lease liabilities amounted to RUB 32.9 billion, down by 4.7% from the
start of the year.
As of the end of the reporting period, the Company's IAS 17-based net cash position improved
significantly, to RUB 16.4 billion, versus RUB 1.7 billion on 31 December 2022. As a result, the IAS
17-based net cash to EBITDA ratio improved to 0.4x, compared to 0.04x as of 31 December 2022, on the back
of accumulated cash reserves as well as a decrease in current loans and borrowings.
Statement of cash flows highlights
RUB million Q3 2023 Q3 2022 9M 2023 9M 2022
Profit before tax 9,570 9,442 26,213 25,546
Cash from operating activities before changes in working capital 14,903 13,800 40,438 41,115
Changes in working capital (1,648) 5,004 (6,375) (6,761)
Net cash generated from operations 13,255 18,804 34,063 34,354
Net interest paid (25) (725) (674) (2,267)
Income tax paid (2,103) (8,452) (5,121) (14,093)
Net cash flows from operating activities 11,127 9,627 28,268 17,994
Net cash flows used in investing activities (1,572) (1,729) (4,947) (6,512)
Net cash flows used in financing activities (2,943) (4,571) (11,065) (8,489)
Effect of exchange rate fluctuations on cash and cash equivalents (4) (6) 141 (751)
Net increase / (decrease) in cash and cash equivalents 6,608 3,321 12,397 2,242
The Group's net trade working capital[8] improved to RUB 11.5 billion (4.0% of
revenue)[9] as of 30 September 2023, from RUB 15.3 billion (5.7% of revenue)
as of 30 September 2022, despite slower revenue growth, reflecting improved
efficiency in assortment management.
CAPEX for Q3 2023 was RUB 1.6 billion, versus RUB 1.8 billion in Q3 2022, due
to lower investments in the construction of distribution centres that started
in 2022 and the decision to push the planned openings of some Company-operated
stores to Q4 2023.
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, has been helping its customers save money every day since 2007. Fix Price offers its customers a unique 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 September 2023, Fix Price was operating 6,162 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 September 2023, the Company was
operating 12 DCs covering 80 regions of Russia and 8 neighbouring countries.
In 2022, the Company recorded revenue of RUB 277.6 billion, EBITDA of RUB 54.2 billion and net profit of RUB 21.4
billion, in accordance with IFRS.
Fix Price Investor Relations Fix Price Media Relations
Contacts Elena Mironova Ekaterina Goncharova
ir@fix-price.com pr@fix-price.ru
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[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 revenue including VAT. LFL numbers exclude stores that were temporarily closed for seven or more consecutive days during the reporting period and/or comparable periods
[2] Here and hereinafter, data on the loyalty programme is calculated for Fix Price stores operating in Russia
[3] LTIP expense - expense related to the long-term incentive programme (LTIP)
[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)
[5] Unless stated otherwise, the data in this section refers to Company-operated stores in Russia
[6] Members of the loyalty programme who make at least one purchase per month
[7] Here and hereinafter, the calculation of net debt / (net cash) to EBITDA is based on EBITDA for the last 12 months
[8] Net trade working capital is calculated as inventories plus receivables and other financial assets minus payables and other financial liabilities
[9] 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.
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ISIN: US33835G2057 Category Code: MSCU TIDM: FIXP LEI Code: 549300EXJV1RPGZNH608 OAM Categories: 2.2. Inside information Sequence No.: 281487 EQS News ID: 1760885 End of Announcement EQS News Service =------------------------------------------------------------------------------------
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(END) Dow Jones Newswires
October 31, 2023 02:50 ET (06:50 GMT)
