BIM Birlesik Magazalar (BIMAS) Q1 2024 earnings summary

Executive summary

• Net sales reached 104 billion TL in Q1 2024, up 17% year-over-year, supported by strong store expansion and 5% positive traffic growth, with 309 new stores opened and a total of 12,791 stores at quarter-end.

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

• Like-for-like sales in Türkiye rose 74% year-over-year (unadjusted), with basket size up 66% and customer traffic up 5%.

• BİM Turkey contributed 87% of total sales; FİLE's share rose to 7.4% with 244 stores and 5% of FİLE sales from online.

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

Financial highlights

• Gross profit for Q1 2024 was 17.9 billion TL (inflation-adjusted), with a gross margin of 17.2% (up 200 bps year-over-year, inflation-adjusted); unadjusted gross margin was 20.6%.

• EBITDA margin was 4.3% (inflation-adjusted) and 7.6% (unadjusted); net margin was 3.7% (inflation-adjusted) and 4.4% (unadjusted).

• CapEx was 3.6 billion TL (3.5% of net sales, inflation-adjusted), 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.

Outlook and guidance

• Top-line growth and EBITDA margin guidance maintained, with expectations for normalization in gross and EBITDA margins in coming quarters.

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

• No plans to revise guidance as Q1 and post-Q1 results are in line with expectations.

• Guidance commentary is based on financial data without inflation accounting for investor clarity.

• Management continues to focus on store network expansion and operational efficiency in Turkey and international markets.