Fix Price Group (FIXPRICE) Q2 2024 earnings summary

Executive summary

• Revenue reached RUB 76.7bn in Q2 2024 and RUB 148.4bn in H1 2024, up 9.4% year-over-year, with net profit of RUB 5.8bn in Q2 and RUB 9.1bn in H1, impacted by higher tax expenses.

• 177 net store openings in Q2 and 308 in H1, bringing the total to 6,722 stores across nine countries, with a 13% year-over-year increase in the loyal customer base.

• LFL sales increased by 3.2% in Q2 and 1.9% in H1 2024, driven by category management and improved consumer sentiment.

• Gross margin was 34.0% in Q2 and 33.3% in H1 2024, up 7 bps year-over-year, supported by efficient assortment management.

• Net profit margin for H1 2024 was 6.1%, down from 14.5% in H1 2023, mainly due to higher tax expense.

Financial highlights

• EBITDA for Q2 2024 was RUB 12.8bn and RUB 22.5bn for H1 2024; adjusted EBITDA for H1 2024 was RUB 22.9bn (margin 15.5%).

• Adjusted EBITDA margin (IFRS 16) was 16.9% in Q2 and 15.5% in H1 2024, down 230 bps year-over-year.

• Operating profit margin declined to 11.2% in Q2 and 9.6% in H1 2024.

• SG&A costs (excluding LTIP and D&A) rose to 17.3% of revenue, mainly due to higher staff costs and new DCs.

• CAPEX as a percentage of revenue decreased to 1.8% in H1 2024 from 2.5% in H1 2023.

Outlook and guidance

• Forecast for 750 net new store openings in 2024 is confirmed, with a focus on profitable expansion and international growth.

• Management remains committed to operational efficiency, cost control, and adapting to evolving market conditions.

• CAPEX is expected to remain low as a share of revenue due to standardized store layouts and automation.