Discount Variety Retail Chain Fix Price's (listed on LSX: FIXP) like-for-like sales stores unaffected by restrictions due to the latest wave of the pandemic increased by 9% in this period. The company’s revenue for the full year amounted to RUB 230.5 billion (US$3 billion), up 21.3% coopered with 2020, driven by store network expansion and like-for-like sales growth. Retail revenue was up by 22.5%, to RUB 203.3 billion (€2.6 billion), while wholesale revenue grew by 12.9% year-on-year to RUB 27.1 billion (US$ 345 million).
'Resilience And Flexibility'
According to Dmitry Kirsanov, CEO of Fix Price, the company’s performance demonstrates the “resilience and flexibility” of its business model to deliver strong operational and financial performance in a challenging operating environment. Kirsanov added, “Amid challenges including high inflation, FX volatility and elevated freight costs, as well as COVID-related restrictions in some regions that directly affected our stores located in shopping malls, our ability to deliver on those things we can control remains superior. “Management used a range of tools, including fast assortment rotation, product engineering and the introduction of new price points to anticipate and respond to external headwinds and maintain margins.”
In the fourth quarter, like-for-like sales were up by 3.2% year-on-year, while like-for-like traffic decreased by 3.5% due to COVID-related restrictions in Russia and continued subdued consumer sentiment. Like-for-like sales at company-operated stores in Russia grew by 5.3%, while stores unaffected by COVID-related restrictions saw like-for-like sales up by 6.5%. Revenue during the quarter increased by 14.5% year-on-year, to RUB 66.5 billion (US$ 865 million), driven by new store openings and LFL sales growth. Retail revenue accounted for RUB 59.1 billion (US$ 767 million), up by 15.1% compared to the same period last year, and wholesale revenue increased by 9.6% to RUB 7.4 billion (US$ 96 million). Kirsanov commented, “In Q4 2021, our focus on optimisation of price points, as well as delivering the full range of New Year goods proved successful, supporting gross margin growth for the quarter on a year-on-year basis. As a result, we expect EBITDA margin for the full year to be in 19% area.”
The company hopes to maintain the pace of its store network expansion in 2022 to support further operational and financial growth. “Following the 737 net new stores we opened in 2021, slightly above our guidance of 730, we plan to open 750 net new stores this year,” Kirsanov said.