Russian low-cost retailer Fix Price's first-quarter revenue rose 29.2% to RUB51.7 billion (€570 million), the company said, in its first financial results statement since its market debut in London last month.
Fix Price raised around $2 billion in an initial public offering on the London Stock Exchange in early March, capitalising on the COVID-19 pandemic reducing Russians' spending power.
That was the biggest Russian IPO since western sanctions were introduced in 2014.
Revenue Growth
The company’s retail revenue grew by 31.4% to RUB44.9 billion (€490 million), while wholesale revenue was up by 16.3% to RUB6.8 billion (€74 million).
Like-for-like sales grew by 11.9% during the quarter, with like-for-like average ticket increasing by 15.2%.
In contrast, the like-for-like traffic decreased by 2.9% in this period due to the COVID-19 pandemic.
Fix Price, which sells low-priced goods in walk-in shops and online, has now posted 17 consecutive quarters of double-digit like-for-like sales growth, chief executive Dmitry Kirsanov said.
Outstanding Operational Performance
Kirsanov added that the first quarter was notable for the continuation of Fix Price’s outstanding operational performance.
"Performance remains in line with management expectations and budget, and we look forward to announcing our debut interim financial results as a public company in August 2021," he said.
Fix Price increased its total number of stores to 4,354 and opened in 47 new locations in Russia, Belarus, Kazakhstan and Latvia in the last quarter, the company said in a statement.
Kirsanov said higher like-for-like sales and the faster pace of new store openings were among the key drivers of the revenue increase.
“Looking ahead to the rest of the year, while there is some uncertainty in the macro environment, including continued rouble weakness, increased raw materials and logistics costs, the flexibility of the Fix Price business model allows us to adapt rapidly and navigate changes in market dynamics," he stated.
