BIM Birlesik Magazalar (BIMAS) Q1 2024 earnings summary

Executive summary

• Net sales reached TRY 104 billion in Q1 2024, up 17% year-over-year on an inflation-adjusted basis, with strong store expansion and 5% positive traffic growth supporting results.

• Over 300 new stores opened in Q1, including 268 in Turkey, 24 in Morocco, and 9 in Egypt, bringing the total to 12,791 stores as of March 31, 2024.

• Like-for-like sales in Turkey rose 74% and basket size increased 66% in Q1, both outpacing internal inflation.

• Net income surged 233% year-over-year to TRY 3.9 billion, with a margin of 3.7%.

• FİLE's share in consolidated revenues increased to 7.4% in Q1, with robust performance and online sales accounting for 5% of FİLE's total.

Financial highlights

• Inflation-adjusted EBITDA was TRY 4.4 billion (4.3% margin), up 90 bps year-over-year; unadjusted EBITDA was TRY 7.7 billion (7.6% margin).

• Gross profit for Q1 2024 was TRY 17.86 billion, with a gross margin of 17.2% (inflation-adjusted), up 200 bps year-over-year.

• CapEx was TRY 3.6 billion (3.5% of net sales), in line with guidance.

• Cash position at quarter-end was TRY 9.4 billion (including short-term financial assets), with improved working capital cycle.

• Free cash flow turned positive at TRY 2.1 billion, compared to negative TRY 201 million in Q1 2023.

Outlook and guidance

• Top-line growth and EBITDA margin guidance maintained for the full year, with expectations for normalization in gross margin and OpEx ratios in coming quarters.

• Store expansion plans include opening around 100 stores in Morocco and 70 in Egypt in 2024.

• No plans for Canadian market expansion at this time.

• Guidance and performance commentary are based on financial data without inflation accounting for investor clarity.

• Inflation accounting (TAS 29/IAS 29) is applied due to hyperinflationary conditions in Turkey, impacting financial reporting.