Migros results for 1Q 2015

11 May 2015

  • Sales
    1Q 2015: TL 2,074m +17.0% (1Q 2014: TL 1,773m)
    FY 2014: TL 8,123m +14.0% (FY 2013: TL 7,127m)
  • Gross Profit
    1Q 2015: TL 560m +17.3% (1Q 2014: TL 477m)
    FY 2014: TL 2,166m +14.3% (FY 2013: TL 1,895m)
    1Q 2015: TL 134m +16.0% (1Q 2014: TL 115m)
    FY 2014: TL 532m +13.4% (FY 2013: TL 469m)
    1Q 2015: TL 242m + 16.6% (1Q 2014: TL 208m)
    FY 2014: TL 934m + 14.9% (FY 2013: TL 813m)
  • Store Network
    1Q 2015: + 46 new stores in 1Q 2015, total of 1,227 stores
    FY 2014: + 199 new stores in 2014, total of 1,190 stores

Financial Highlights
Migros’ consolidated sales reached TL 2,074m in 1Q 2015, corresponding to a yearly growth of 17.0%. In the first quarter, the Company recorded a robust domestic sales increase of 18.6%. Top-line growth was boosted by new store openings and the improved performance of existing stores. The strong sales performance is also supported by increased competitiveness of its private labels & fresh products. Migros’ gross profit for 1Q 2015 increased by 17.3% to TL 560m, representing 27.0 % of sales (1Q 2014: 26.9%). The Company recorded a strong and sustainable gross profitability while keeping the focus on growth and supply chain management. Furthermore, improving operational efficiencies remained at the top of the Company’s agenda. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 16.0% to TL 134m in 1Q 2015 and the EBITDA margin came to 6.4% (1Q 2014: 6.5%). EBITDAR (EBITDA before rent expenses) rose by 16.6%, representing a margin of 11.7% in 1Q 2015. EBITDA margin in 1Q 2015 was in the yearly EBITDA margin target range of 6.0%-6.5%.

Operational Highlights In 1Q 2015, the Company added to its network 46 stores (1Q 2014: 17) including 1 Macrocenter and 3 Ramstores (2 stores in Kazakhstan and 1 store in Macedonia). Proximity supermarkets continued to expand rapidly in 1Q 2015. The Group’s total number of stores reached 1,227 at the end of March 2015. Migros continued to further invest in technology and introduced a mobile application combining online & physical store customers. It is a step forward in the quest for a proper omni-channel customer shopping experience.

As it was disclosed before, the Company aims to open 150 to 200 new stores and maintain double digit top-line growth in 2015 as well as an EBITDA margin between 6.0% and 6.5%.

Over the past years, Migros’ growth strategy has successfully delivered double-digit top line growth, a continuously expanding store network and capturing more market share supported by an enhanced competitive position. These factors, as well as vigilance over costs and working capital management, have enabled Migros to deliver a stable operating margin.

Please visit www.migroskurumsal.com for further information.