Bizim Toptan Satis Magazalari (BIZIM) Q1 2024 earnings summary

Executive summary

• Largest cash & carry company in Turkey by store count and geographic reach, with 182 stores in 71 cities and a diversified customer base, employing 3,405 personnel as of March 2024.

• Operates a multi-channel sales model including physical stores, digital platforms, and a franchising system (SEÇ) with 2,747 stores as of 1Q2024.

• 66.6% owned by Yıldız Holding, 33.4% public.

• Revenue for Q1 2024 was TRY 7.89 billion, down from TRY 9.24 billion in Q1 2023, reflecting a year-over-year decline in sales volume.

• The group reported a net loss of TRY 220.3 million for Q1 2024, compared to a net profit of TRY 98.6 million in Q1 2023, driven by higher operating and financial expenses.

Financial highlights

• 1Q2024 consolidated revenue was 7,889.6 MTL, down 15% year-over-year.

• Gross profit rose 27% to 1,016.8 MTL, with gross margin improving from 8.7% to 12.9%.

• Operating expenses increased 15% to 1,317.7 MTL, with OPEX/sales rising to 16.7%.

• Adjusted EBITDA was -43.6 MTL, a 72% improvement from -157.8 MTL in 1Q2023; EBITDA (excluding TFRS 16) was -192.8 MTL.

• Cash and cash equivalents stood at 747.8 MTL as of 1Q2024, down from 1.04 billion at year-end 2023.

Outlook and guidance

• Out-of-home consumption and SEÇ channels supported sales growth despite macroeconomic headwinds.

• Financial statements are prepared under hyperinflationary accounting (TAS 29), reflecting the impact of high inflation in Turkey.