Migros results for Q3 2012

14 November 2012

Migros Consolidated results for Q3 2012 and 9 months to September 2012
  •  Sales
    • TL 4,833m (+13.6%) - 9 months to Sept 2012
    • TL 1,825m (+13.1%) - Q3 2012
  •   Gross Profit

    • TL 1,267m (+15.2%) - 9 months to Sept 2012
    • TL 468m (+15.2%) - Q3 2012
  •   EBITDA
    • TL 320m (+8.1%) - 9 months to Sept 2012
    • TL 124m (+5.2%) - Q3 2012
  • Store Openings

    • Continuation of accelerated programme
    • 147 new stores opened in 9 months to September
    • Total of stores: 874

In the third quarter of 2012 Migros continued to achieve strong sales growth reporting a 13.1% increase in Group sales and a 13.6% increase for the 9 months to September 2012. Sales and market share benefitted from the accelerated store opening programme and the group’s successful focus on commodity products in the private label category and fresh products which resulted in strong growth in these segments. Sales from international operations also grew strongly, increasing by 16.2% to TL 285 million.

Gross profit increased by 15.2% for both the 3rd quarter and the 9 months to September 2012 and gross margins of 25.6% (25.2% Q3 2011) and 26.2% (25.9% 9 months to September 2011) were achieved for each respective period.

EBITDA for the quarter rose to TL 124 million, representing an EBITDA margin of 6.8% (7.3% Q3 2011). For the 9 months to September 2012 the Group reported EBITDA of TL 320 million, an 8.1% increase on the prior period and an EBITDA margin of 6.6% (7.0% 9 months to September 2011). The EBITDA margin, which is in line with management expectations and slightly ahead of full year guidance of 6%-6.5%, was impacted by the costs associated with Migros’ accelerated store opening program which continued during the quarter.

During the 9 months to September 2012 147 new stores were opened, including 142 supermarkets, 2 hypermarkets and 3 Ramstores, bringing the total number of stores to 874. The Group’s store network is present in 69 of Turkey’s 81 cities.

Migros remains focused on expanding its presence and capitalising on its strong brand in the Turkish market to continue to increase market share and deliver strong sales growth. A focus on fresh products, private label categories, competitive pricing on everyday products and high product availability, coupled with a strong loyalty and CRM programme, are initiatives aimed at complimenting the Group’s ongoing store opening programme. This will see c.100-150 new supermarkets and c.2 new hypermarkets openings a year over the medium term. Sustainable profitability is a key objective of the Group and growth will be balanced with an ongoing focus on operational efficiencies including initiatives to improve supply chain management.

Migros Ticaret A.Ş