BIM Birlesik Magazalar (BIMAS) Q1 2024 earnings summary

Executive summary

• Net sales reached 104 billion TL in Q1 2024, up 17% year-over-year on an inflation-adjusted basis, supported by strong store expansion and 5% positive traffic growth, with 309 net new stores opened, bringing the total to 12,791.

• Net income surged 233% year-over-year to 3.9 billion TL (3.7% margin), with EBITDA up 48% to 4.4 billion TL (4.3% margin).

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

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

• BİM maintains full consolidation of its international subsidiaries in Morocco and Egypt, supporting regional growth.

Financial highlights

• Gross profit rose 32% year-over-year to 17.9 billion TL (inflation-adjusted), with a gross margin of 17.2%, up 200 bps year-over-year.

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

• Cash position at quarter-end was TRY 9.4 billion, with improved working capital cycle.

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

• Net cash from operating activities was 5.90 billion TL, up from 2.05 billion TL 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.

• No material changes in accounting policies or significant impact from new standards are expected for 2024.