Migros results for 1Q 2014
12 May 2014
1Q 2014: TL 1,773m +11.4% (1Q 2013 TL 1,591m)
- Gross Profit
1Q 2014: TL 477m +13.1% (1Q 2013 TL 422m)
1Q 2014: TL 115m +10.3% (1Q 2013 TL 105m)
1Q 2014: TL 208m +13.2% (1Q 2013 TL 183m)
- Store Network
1Q 2014: + 17 new stores in 1Q 2014, total of 1,017 stores
Migros’ consolidated sales turnover reached TL 1,773m in the first quarter of 2014, a growth of 11.4% versus last year. Continuous focus on pricing, creative marketing and merchandising efforts helped to stimulate the sales turnover in 1Q 2014.
In 1Q 2014, profitability has been as strong as ever. Gross profit for 1Q 2014 rose by 13.1% to TL 477m, representing a gross margin of 26.9% (1Q 2013: 26,5%). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased by 10.3% to TL 115m in 1Q 2014, representing a stable EBITDA margin of 6.5% (1Q 2013: 6.6%). The supply chain improvements continued to have a positive contribution to the operational profitability. EBITDAR (EBITDA before rent expenses) increased by 13.2% representing a margin of 11.7%.
The Company added 17 new supermarkets to its store portfolio in the first quarter, 16 in Turkey and 1 in Kazakhstan. Migros managed to record a double digit top-line growth thanks to strong sales performance in 1Q 2014. The Company continues its space optimisation in hypermarkets, Macrocenter geographical expansion and its emphasis on proximity stores. The total number of Group stores increased to 1,017 at the end of March 2014.
Migros increased its market share by 70 bps in organised FMCG sales in 1Q 2014 versus the same period of last year with the help of expansion and sales growth of the existing stores.
Migros introduced a rich selection of private label packaged meat products. The products are prepared in Migros meat processing plant in Torbalı, İzmir. Serving packaged products will lead to productivity gains through the application of advanced packaging technology, increased hygiene and product quality. The plant has an indoor area of 12,000 sqm and a processing capacity of 50,000 tons of meat a year.
Strategies and trading update
Over the past years, Migros’s growth strategy has successfully delivered double-digit top line growth, an ever-expanding store base, market share gains and an enhanced competitive position. These factors together with vigilance over costs and working capital management have enabled Migros to deliver a stable operational margin.
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Migros Ticaret A.Ş.