Migros results for 1Q 2017

09 May 2017

 §  Store Network

1Q 2017: +   42 new stores, total of 1,794 stores with Kipa stores

      2016: + 232 new stores

Financial Highlights

Migros finalized the acquisition of 95.5% of Tesco Kipa shares on March 01, 2017 and started to consolidate Tesco Kipa financial results. Migros recorded subsidiary acquisition profit in 1Q 2017 due to Tesco Kipa acquisition, which bolstered shareholders equity. Net consolidated profit of Migros in 1Q 2017, including the acquisition profits, was TL 907m.

Including one month sales from Kipa stores, Migros consolidated sales grew by 29.1% and reached TL 3,114m in 1Q 2017. Robust sales growth was consistent across all formats. Migros market share in both modern and total FMCG market, even excluding the Kipa operations, continued its expansion in 1Q 2017 according to Nielsen.

The consolidated gross profit increased by 23.9% and reached TL 817m corresponding a gross margin of 26.2% despite the dilutive impact of Kipa in the first quarter of the year. Migros’ main focus remained to support sales and give value to the consumers. The consolidated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) was TL 156m, with 5.0% EBITDA margin, which was in line with the full year guidance of 5.0% to 5.5% including Kipa. EBITDAR (EBITDA before rent) rose by 15.4% y-o-y in 1Q 2017, representing a margin of 10.2%.

Kipa acquisition value accretion is expected to start toward the end of the year and full benefits to be realised in the next two to three years.

Operational Highlights

Organic growth of Migros continued and the Company opened 62 new stores in the first four months of 2017 including 1 Ramstore in Kazakhstan.

Please visit www.migroskurumsal.com for further information.

Migros Ticaret A.Ş.