Migros results for 2Q 2015

19 August 2015

  • Sales
    2Q 2015: TL 2,295m +16.8% (2Q 2014: TL 1,965m)
    1H 2015: TL 4,369m +16.9% (1H 2014: TL 3,738m)
  • Gross Profit
    2Q 2015: TL 611m +17.9% (2Q 2014: TL 518m)
    1H 2015: TL 1,170m +17.6% (1H 2014: TL 995m)
    2Q 2015: TL 137m +13.7% (2Q 2014: TL 120m)
    1H 2015: TL 270m +14.9% (1H 2014: TL 235m)
    2Q 2015: TL 255m + 16.8% (2Q 2014: TL 219m)
    1H 2015: TL 498m + 16.7% (1H 2014: TL 426m)
  • Store Network
    2Q 2015: + 77 new stores in 2Q 2015,
    1H 2015: + 123 new stores in 1H 2015, total of 1, 296 stores


Financial Highlights
Migros’ consolidated sales increased by 16.9% to reach TL 4,369m in 1H 2015. The strong domestic sales performance continued in the first half with 17.8% growth. Attractive promotions, competitive price offering and renewed emphasis on customer service were the main drivers behind notable sales development. Proximity stores, including Migros Jet stores, supported the Company to reach out to larger number of households.

Migros’ gross profit in absolute terms increased by 17.6% to TL 1,170 m with the gross profit margin of 26.8 % (1H 2014: 26.6%) in 1H 2015. In spite of intensified competition for space in the organized market in the past two years, the Company’s policies towards the right mix in the store network and marketing activities that focus on what consumers want helped to gain the traffic needed for sustainable top-line growth.

The strong operational profitability momentum was the outcome of continued customer trust and better operational efficiencies. EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 14.9% to TL 270m in 1H 2015 and the EBITDA margin was 6.2% (1H 2014: 6.3%). EBITDAR (EBITDA before rent expenses) rose by 16.7%, representing a margin of 11.4% in 1H 2015. The EBITDA margin in 1H 2015 was between 6.0% and 6.5%, i.e. within the yearly EBITDA margin target range.

Operational Highlights
In 1H 2015, the Company was ahead of its expansion program with 123 new stores (1H 2014: 82) including 3 Macrocenters and 4 Ramstores (2 stores in Kazakhstan and 2 stores in Macedonia).

Our focus on growth has been on both proximity and large stores. In the meantime, the space optimization in big stores continued, making them more efficient and profitable per square meter. The Company’s total number of stores reached 1,296 at the end of June 2015, corresponding to 217 net store additions in the past 12 months.

Following a strong quarterly performance, the company also revised its 2015 full-year new store openings guidance upwards. It was increased from 150-200 to 175-200. As disclosed earlier, the Company aims to maintain double digit top-line growth in 2015, as well as an EBITDA margin of 6.0% to 6.5%.

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

Please visit www.migroskurumsal.com for further information.