BIM Birlesik Magazalar (BIMAS) Q3 2024 earnings summary

Executive summary

• Net sales reached TRY 126 billion in Q3 2024, up 9% year-on-year in real terms, supported by ongoing store expansion and sustainability investments.

• Net income for Q3 2024 was TRY 4.4 billion (3.5% margin), and EBITDA was TRY 5.4 billion (4.3% margin), both with inflation accounting.

• Store network expanded to 13,377 locations as of September 30, 2024, with 253 new stores opened in Q3.

• Revenue for the nine months ended September 30, 2024, reached TRY 367.5 billion, up from TRY 330.9 billion year-over-year.

• Total assets increased to TRY 223.9 billion from TRY 201.3 billion at December 31, 2023.

Financial highlights

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

• Gross margin was 17.7% (inflation-adjusted), down 110 bps year-on-year; unadjusted gross margin was 20.8%, down 10 bps.

• EBITDA for 3Q24 was 5.4 billion TL (4.3% margin); 9M24 EBITDA was 14.7 billion TL (4.0% margin), both with inflation accounting.

• Net cash position at quarter-end was 19.5 billion TL, nearly doubling from the previous quarter.

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

Outlook and guidance

• Full-year sales growth guidance maintained at 75%.

• 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.

• Dividend payments from 2023 profits are being distributed in three installments during 2024.