Fix Price announces key financial results for Q4 and 12M 2022

27 February 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 audited IFRS financial results for the twelve months ended 31 December 2022 (FY 2022).

financial 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

• Gross profit increased by 17.9% y-o-y and reached RUB 25.8 billion in Q4 2022. Gross margin improved by 116 bps y-o-y to 34.0%, evidencing the Group’s successful management of the assortment and price point mix
• SG&A expenses (excl. D&A) grew by 139 bps y-o-y to 14.6% of revenue primarily due to higher staff costs as a percentage of revenue, which were partially mitigated by efficiencies gained in other SG&A costs
• EBITDA[1] increased by 12.8% y-o-y to RUB 15.1 billion. EBITDA margin declined slightly, by 20 bps, y-o-y to 19.9% as gross margin gain was offset by the growth of SG&A expenses (excl. D&A)
• Operating profit increased by 12.9% y-o-y to RUB 11.6 billion. Operating margin decreased by 14 bps y-o-y to 15.3%
• Profit for the period grew by 43.8% y-o-y to RUB 9.3 billion. Net profit margin was up to 12.3% versus 9.7% in Q4 2021
• The IAS 17-based net cash to EBITDA ratio was (0.04)x, versus the
  IAS 17-based net debt to EBITDA ratio of 0.4x as of 31 December 2021

financial 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 by 15.8% y-o-y to RUB 31.4 billion

• Gross profit went up 25.3% y-o-y to RUB 92.0 billion. Gross margin was up 129 bps y-o-y to 33.1%
• SG&A costs (excl. D&A) as a percentage of revenue increased to 14.1%, compared to 13.1% for 12M 2021
• Rental expenses under IAS 17 as a percentage of retail revenue improved by 32 bps y-o-y to 5.3%, in line with IPO guidance
• EBITDA was up by 22.7% y-o-y to RUB 54.2 billion. EBITDA margin grew by 36 bps y-o-y to a record high of 19.5%, outperforming IPO guidance. The increase in EBITDA margin was mainly due to a substantial improvement in gross margin which was partially offset by growing SG&A expenses
• Operating profit grew by 27.0% y-o-y to RUB 41.1 billion. Operating margin rose to 14.8%, compared with 14.0% in 2021
• Profit for the period amounted to RUB 21.4 billion
• CAPEX as a percentage of revenue grew to 4.3% for 12M 2022 from 2.7% for the previous year, as the Company pushed forward expansion of distribution centres’ space to capture better construction terms and benefit from the current market environment

“In 2022, we once again proved that we are capable of operating in any economic conditions, and, despite all the challenges, we achieved solid financial results, thus delivering on all the key targets we announced during our IPO. Throughout the year, we actively contributed to the economic development in our extensive regions of operations, where we created new jobs by expanding our network. Most importantly, we ensured that a wide range of high-quality essentials were always available to our customers at the best prices.

“Although the macroeconomic environment remains tough in 2023, we are positive about what lies ahead, and we will continue to make every effort to develop Fix Price business and increase its long-term value.

Dmitry Kirsanov, Fix Price CEO