Migros results for 3Q 2015

06 November 2015

  • Sales
    3Q 2015: TL 2,642m +15.2% (3Q 2014: TL 2,295m)
    9M 2015: TL 7,012m +16.2% (9M 2014: TL 6,032m)
  • Gross Profit
    3Q 2015: TL 710m +16.5% (3Q 2014: TL 610m)
    9M 2015: TL 1,877m +17.2% (9M 2014: TL 1,602m)
    3Q 2015: TL 186m +14.2% (3Q 2014: TL 163m)
    9M 2015: TL 453m +14.6% (9M 2014: TL 395m)
    3Q 2015: TL 313m + 16.5% (3Q 2014: TL 269m)
    9M 2015: TL 807m + 16.6% (9M 2014: TL 692m)
  • Store Network
    3Q 2015: + 67 new stores,
    9M 2015: + 190 new stores in 9M 2015, total of 1,352 stores


Financial Highlights

Migros had another strong quarter leading to an increase in domestic sales by 16.9% in 9M 2015. In 9M 2015, the Company’s consolidated sales turnover grew by 16.2% and reached TL 7,012m. Private label products with competitive prices, rich portfolio of branded products and unique service quality have been the main drivers behind the consistently better sales performance over the past two years. The Company continued to gain market share in both modern and traditional FMCG markets, according to Nielsen data in 3Q 2015.

Migros’ consolidated gross profit rose by 17.2% to TL 1,877m with a margin of 26.8 % (9M 2014: 26.6%) in 9M 2015. Despite the intensified competition in the organized market over the years, the Company maintained its gross margin, delivered a consistently better top-line growth and generated strong negative working capital. The focus on supply chain and operational efficiencies will facilitate the continuity of this performance in the coming years.

In the third quarter alone, the Company delivered TL 186m EBITDA with a margin of 7.0%. In 9M 2015, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 14.6% to TL 453m and the EBITDA margin came to 6.5% (9M 2014: 6.6%), which is at the upper end of Company’s target range of 6.0% to 6.5%. EBITDAR (EBITDA before rent expenses) rose by 16.6%, representing a margin of 11.5% in 9M 2015.

On the other hand, due to non-cash FX losses, the Company reported a net loss in September year-to-date results.

Operational Highlights

In 9M 2015, the Company continued to be ahead of its expansion program with 190 new stores (9M 2014: 135) including 3 Macrocenters and 7 Ramstores (3 stores in Kazakhstan and 4 stores in Macedonia). In October, 22 new stores were opened in Turkey, which brought the total number of new stores to 212 in the first 10 months of the year. The Company’s total number of stores reached 1,352 at the end of September 2015, corresponding to 224 net store additions in the past 12 months.

Following a strong quarterly operational performance, the company revised its 2015 full-year new store openings guidance upwards, from 175-200 to 225+ stores.

As recently announced by Borsa Istanbul, Migros was found eligible to stay in BIST - Sustainability index, as the first and the only food retailer so far. Social responsibility, environment, productivity and better corporate governance continue to be Migros’ priorities into the future.

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.