In the second quarter of 2024, the revenue of the retailer Fix Price grew by 9.9% year on year and amounted to 76.7 billion rubles, TASS writes, citing the company’s press release . Net profit in the reporting period decreased by 2.4 times, to 5.81 billion rubles.
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According to a report from Fix Price, retail revenue, which generates the vast majority of the retailer’s income, reached 69.3 billion rubles, an increase of 11.8%. Wholesale revenue decreased by 5.1%, to 7.4 billion rubles. LfL sales continue to show positive dynamics. At the end of the reporting period, the figure increased by 3.2%. The average check increased by 5.7%, while traffic decreased by 2.3%.
“Seasonal assortment that meets the needs and tastes of customers supported the growth of LFL average check. The growth of LfL sales was also helped by initiatives to introduce additional product items,” explains Fix Price.
Adjusted EBITDA increased by 2.3% to RUB 12.95 billion. Profitability for the indicator was 16.9% versus 18.1% a year earlier.
“The operating environment in the Russian retail market remains challenging: acute labor shortages continue to put pressure on profitability, and the transportation situation is still unstable. However, thanks to many years of experience in logistics management, we ensure timely delivery of goods to the shelves of our stores, including seasonal assortment,” commented Dmitry Kirsanov, managing director of Fix Price.
Gross profit rose by 12.4% to 26.05 billion rubles. Gross margin was 34% versus 33.2% a year earlier due to effective management of assortment and product categories. Capital expenditures remained at 1.3 billion rubles. Most of the investments were aimed at expanding the network of retail outlets.
The company also opened 177 stores in the second quarter (including closures and also including 15 franchise stores). As of June 30, 2024, the total number of stores reached 6,722 thousand, an increase of 11.3% compared to the same period in 2023. The share of franchise stores amounted to 10.8% of the total number of chain stores, decreasing by 27 bp. 16.9% of net openings occurred in foreign markets, and the share of foreign stores in the network increased to 10.4% compared to 10.1% as of June 30, 2023. The total retail space in the second quarter expanded by 37.8 thousand square meters. m (or by 11.4%) and amounted to 1.457 million sq. m.
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