Fix Price announces key operating and financial results for Q1 2023

27 April 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 and IFRS financial results based on management accounts for the first quarter (Q1 2023) ended 31 March 2023.

Operating summary for Q1 2023

• Revenue increased by 5.2% y-o-y to RUB 65.9 billion

• Retail revenue increased by 4.9% y-o-y to RUB 58.1 billion
• Wholesale revenue grew by 7.6% y-o-y to RUB 7.8 billion

• LFL sales[1] decreased by 5.1% y-o-y due to the high base effect from last year as well as ongoing macroeconomic uncertainty
• The Company opened 185 net new stores in Q1 2023 (18 of which are franchised) to close the quarter with 5,848 stores. Fix Price’s guidance of 750 net store openings in 2023 remains in effect
• The total selling space of Fix Price stores increased by 40.9 thous. sqm to 1,266.3 thous. sqm (+15.5% y-o-y)
• The total number of registered loyalty cardholders increased by 1.2 million and amounted to 23.1[2] million as of the end of the quarter (+27.9% y-o-y), with loyalty card transactions accounting for 63.4% 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

"The last year turned out to be one of the most challenging in the Company’s history, as new economic realities required, and still require, our team to make resolute and timely decisions to ensure an uninterrupted supply and maintain a wide product assortment. In addition to continued pressure on household incomes and a high degree of uncertainty, another challenge in the first quarter of this year was the high base effect from the atypical demand for groceries and household chemical products that we witnessed a year ago.

“We place a special focus on the analysis of changing customer preferences, which enables us to adapt the Fix Price value proposition to new realities. In the current environment, the greatest demand is for basic necessities and home and garden products, mainly consumables. We have increased the share of these categories in the assortment matrix, while testing and rotating goods across all target categories. We introduce around 60-80 new products every week and promptly analyse our sales, loyalty programme and market research data to identify the most in-demand items. We seek to add our own twist to each product niche and work closely with suppliers at all stages of goods development and manufacture to offer customers unique products at the most attractive prices on the market.

“In this challenging macroeconomic environment, our loyalty programme remains one of the key tools for boosting sales and getting targeted feedback from our customers. Thanks to our extensive efforts to customise its terms and conditions, the programme continues to attract new users – throughout the year, the number of loyal customers increased by 27.9% and exceeded 23 million – and to maintain its effectiveness. The average ticket of loyalty programme participants is 1.8 times higher than that of customers without a bonus card, while the percentage of active users who make at least one purchase per month still exceeds 50%.

“Another one of our priorities is to increase the availability of variety value retail format in the regions where we operate. During the reporting period, we increased our network by 185 stores and keep our guidance of 750 net store openings in 2023. The whitespace potential of variety value retail format in our key countries of presence – Russia, Kazakhstan and Belarus – is estimated at 18,600 stores, or more than three times the current number of Fix Price stores. At the same time, we remain the absolute leader of this format in Russia, with a market share of 90%. In addition to active expansion in our key regions of presence, we are also testing new markets – for example, in Q1 2023 we launched our first two Fix Price franchise stores in Mongolia.

“We continue to invest in our logistics infrastructure in order to maintain our network's steady growth rate. In March, we opened a new 68,000-square-metre distribution centre in Domodedovo, which will cover our wharehouse space needs in the Central region of Russia for the next several years. We are also building a large distribution centre in Yekaterinburg, which is slated to open in Q4 2023.

“I am confident that our flexibility, our proactive approach and our ability to develop the business in different economic cycles will enable us to continue to maintain our leadership position in a promising market and ensure the growth of our business value in the long term.”

Dmitry Kirsanov, Fix Price CEO

Operating resul