BIM Birlesik Magazalar (BIMAS) Q3 2024 earnings summary

Executive summary

• Net sales reached 126 billion TL in Q3 2024, up 9% year-on-year (inflation-adjusted), with 253 new stores opened, bringing the total to 13,377 by quarter-end.

• Net income was 4.4 billion TL in Q3 (3.5% margin), with a net cash position of 19.5 billion TL at quarter-end.

• Strong operational cash flow and capital expenditures of 4.4 billion TL (3.5% of sales) in Q3.

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

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

Financial highlights

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

• Gross margin (inflation-adjusted) was 17.7% in Q3; EBITDA margin was 4.3%; net margin was 3.5%.

• Q3 2024 EBITDA was 5.4 billion TL (inflation-adjusted); net income was 4.4 billion TL (inflation-adjusted), up 38% year-on-year (unadjusted).

• Free cash flow and cash position improved, with cash at 19.5 billion TL at Q3 end.

• Operating expenses rose to 16.6% of sales in Q3 (inflation-adjusted).

Outlook and guidance

• Full-year sales growth guidance maintained at 75%, with EBITDA margin guidance reaffirmed and margin improvement expected in Q4.

• 2024 full-year expectations are maintained, with continued focus on operational efficiency and store expansion.

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

• Consumer spending expected to remain soft in Q4 due to weak purchasing power; potential change in 2025 depends on minimum wage hike.