Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) investor relations material

Executive summary

• Revenues remained broadly flat year-over-year despite high inflation, elevated interest rates, and market slowdown, supported by operational efficiency and cost optimization initiatives.

• Store network optimization reduced total stores from 175 to 153, focusing on larger, experience-driven digital stores.

• Marketplace expansion increased SKUs to 225,000 and merchant count to 1,300, with e-commerce representing 11% of sales.

• Net working capital turned negative, reflecting strong inventory and cash flow management.

• Strategic actions and digital transformation expected to yield full benefits in the second half of 2025 and beyond.

Financial highlights

• Q2 2025 revenues increased 0.3% year-over-year and 1% sequentially to TL 17.7 billion; first half revenues totaled TL 35.16 billion, down 9.9% year-over-year.

• Gross margin improved by 2.1 percentage points year-over-year in Q2 to 14.4%; first half margin at 13.5%.

• EBITDA margin nearly doubled year-over-year in Q2, rising from 2.7% to 5.3%; first half EBITDA margin at 4%.

• Net loss for Q2 2025 was TL 542 million, improving from TL 757 million in Q2 2024; adjusted net loss excluding one-off items was TL 455 million.

• Net working capital turned negative in Q2, reaching minus 24 million TL, a 2 billion TL improvement year-over-year.

Outlook and guidance

• Early signs of demand recovery observed from May, with expectations for higher demand in Q3 and Q4 due to seasonality and new product launches.

• Management expects further benefits from ongoing cost and efficiency initiatives in the second half of the year.

• Focus remains on digital-first strategy, financial discipline, and sustainability, targeting 42% reduction in Scope 1 and 2 emissions by 2030 and Net Zero by 2050.