Migros results for 4Q 2017
09 March 2018
§ Store Network
4Q 2017: + 43 new stores, total of 1,897 stores
2017: + 193 new stores
The sales performance of 2017 has set a new milestone in the growth history of Migros. Company’s consolidated sales exceeded TL 15.3 billion representing a yearly growth of 38.7%. As a result, Migros more than doubled its consolidated sales turnover in four years. A highest domestic growth of past ten years was recorded even excluding Kipa acquisition in 2017. Migros’ solid domestic operations (+21.4%), international operations (+18.6%) and the consolidation of Kipa’s 10 month sales have all helped the Company to achieve this new threshold. The 2017 performance heralds market share gains, which is verified by Nielsen data on FMCG sales in both organised and unorganised markets. Migros’ quality, service and best value proposition have been the pillars of its strength and sources of its continuous market share gains.
Consolidation of Kipa results for 10 months slightly diluted Migros’ operational profitability in 2017. However, the dilution impact was being compensated by the improvement in the gross profitability of Kipa in 2H17 as well as the improved performance of Migros stores. The consolidated gross profit of Migros rose by 38.3% in 2017 corresponding a gross margin of 26.6%. The consolidated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) reached TL 872m, with a margin of 5.7% in 2017. EBITDA margin without Kipa improved 70 bps over a year ago and reached 6.4% in 4Q 2017.
Migros generated TL 1,634 m EBITDAR (EBITDA before rent) representing a margin of 10.7% in 2017. Although the Company’s profitability is undermined by FX losses last year, Migros recorded a consolidated net profit of TL 509 million in 2017.
Accounting policy of assets valuation was changed “at cost” to “revaluation” method, this has bolstered the consolidated shareholders equity by TL 743,7 million.
Migros opened 193 new stores last year delivering the full-year new store openings guidance of 180+. Moreover, top-line growth as well as operational profitability was better than expectations last year. In conclusion, Migros delivered on all its targets in 2017.
Migros aims to open between 120 and 150 new stores this year. After a strong top-line growth year, the consolidated sales growth of Migros is expected to be between 15-18%. Migros aims to reach the consolidated EBITDA margin range of 5.5-6.0% in 2018.
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Migros Ticaret A.Ş.