Migros results for 4Q 2015

01 March 2016

  • Sales
    4Q 2015: TL 2,378m +13.8% (4Q 2014: TL 2,090m)
    FY 2015: TL 9,390m +15.6% (FY 2014: TL 8,123m)
  • Gross Profit
    4Q 2015: TL 649m +15.6% (4Q 2014: TL 562m)
    FY 2015: TL 2,526m +16.7% (FY 2014: TL 2,163m)
    4Q 2015: TL 149m +11.5% (4Q 2014: TL 134m)
    FY 2015: TL 602m +13.8% (FY 2014: TL 529m)
    4Q 2015: TL 275m + 15.2% (4Q 2014: TL 239m)
    FY 2015: TL 1,082m + 16.2% (FY 2014: TL 931m)
  • Store Network
    4Q 2015: + 67 new stores,
    FY 2015: + 257 new stores in 2015, total of 1,410 stores


Financial Highlights

Migros reported 16.6% domestic sales growth and 15.6% consolidated top-line growth in 2015, amounting to TL 9,390m. Private label, fresh category strategies and focus on brand variety were instrumental in helping to improve Migros’ competitive position and ultimately its sales performance over the past two years. Domestic sales growth increased from 10.2% in 2013 to 16.6% in 2015. Nielsen confirmed the continuity of the Company’s market share gain in both modern and traditional FMCG markets last year. Migros’ consolidated gross profit reached TL 2,526m in 2015. Despite the intensified competition and pricing pressures in the food retail market in recent years, Migros maintained its gross margin, delivered consistently better top-line growth and generated strong negative working capital. It will continue to focus on supply chain and operational efficiencies to secure the continuity of this performance in the years ahead.

In 2015, EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) was TL 602m, with a 13.8% increase. The EBITDA margin was 6.4% (2014: 6.5%), which is in line with the guidance of 6.0% to 6.5%. EBITDAR (EBITDA before rent expenses) rose by 16.2%, representing a margin of 11.5% in 2015. (2014: 11.5%) Although the Company generated strong operational profit, net loss was TL 370 million in 2015, mostly due to non-cash FX losses from FX denominated liabilities and one-off non-cash impairment loss of intangible assets.

Operational Highlights

In 2015, the Company surpassed its expansion target with 257 new stores (2014: 199) including 7 Macrocenters and 8 Ramstores (3 stores in Kazakhstan and 5 stores in Macedonia). In the first two months of 2016, 30 new stores were added to the store network in Turkey, bringing the total number of stores to 1,427 as of February 2016.

Migros qualified to participate in BIST Corporate Governance Index in January 2016. Migros has been in BIST - Sustainability index since 2014. Social responsibility, environment, productivity and better corporate governance will continue to be Migros’ priorities in the future.

Migros delivered on all of its targets for 2015 in terms of store expansion (Guidance: 225+, Actual: 257), annual consolidated sales growth and EBITDA by achieving a 15.6% sales growth with an underlying EBITDA margin of 6.4%.

Migros aims to open 150 to 200 new stores and maintain double digit top-line growth in 2016.

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.