BIM Birlesik Magazalar (BIMAS) Q3 2024 earnings summary

Executive summary

• Net sales reached 126 billion TL in Q3 2024, up 9% year-on-year, with 19.5 billion TL net cash and 4.4 billion TL net profit, supported by ongoing store expansion and sustainability investments.

• 253 new stores opened in Q3, bringing the total to 13,377, reflecting an 11% annual increase in store count and continued expansion in Türkiye and international markets.

• Strong operational cash flow and continued investment, with 4.4 billion TL in capital expenditures (3.5% of sales).

• BİM continued its expansion in Turkey and abroad, consolidating results from subsidiaries in Morocco and Egypt.

• A new subsidiary, Desto Atık Yönetimi A.Ş., was established in July 2024 to enhance sustainability and waste management.

Financial highlights

• Like-for-like sales rose 50% year-on-year in Q3 (unadjusted), with basket size up 54% and internal inflation at 54%.

• Q3 2024 gross profit: 22.3 billion TL (gross margin 17.7%); nine-month gross profit: 63.3 billion TL (17.2% margin).

• EBITDA margin was 4.3% (inflation-adjusted); net income was 4.4 billion TL (3.5% margin, inflation-adjusted).

• Net cash position nearly doubled to 19.5 billion TL at Q3 end, up from 9.1 billion TL in Q2.

• Free cash flow benefited from improved inventory days and strong working capital release.

Outlook and guidance

• Full-year sales growth guidance maintained at 75%, with continued focus on operational efficiency and store expansion.

• EBITDA margin guidance for 2024 reaffirmed, expecting margin improvement in Q4 due to operating leverage and controlled OPEX.

• No major change expected in store expansion pace for 2025; similar growth planned for FİLE and international formats.

• Consumer spending expected to remain soft in Q4 due to weak purchasing power and no minimum wage hike.