Bizim Toptan Satis Magazalari (BIZIM) Q2 2024 earnings summary

Executive summary

• Largest cash & carry company in Turkey by store count, operating 182 stores in 72 cities and employing 3,409 personnel as of 1H2024.

• Diversified customer base includes wholesalers, retailers, HORECA, corporates, and individuals.

• Multi-channel sales model: physical stores, franchising (SEÇ), digital platforms, and professional sales force.

• Yıldız Holding A.Ş. is the controlling shareholder with a 66.6% stake, with 33.4% publicly held.

• Included in BIST Sustainability Index since 2020, focusing on food safety, quality, and environmental initiatives.

Financial highlights

• 1H2024 consolidated revenue was 16.91 BTL, down from 20.44 BTL in 1H2023; 2Q2024 revenue was 8.4 BTL, down 19.8% YoY.

• Gross profit margin improved to 12.3% in 1H2024 (up from 9.6% YoY); 2Q2024 margin at 11.8%.

• EBITDA (Inc. TAS 29) was -151.2 MTL in 1H2024 (margin -0.9%), compared to -59.3 MTL in 1H2023; 2Q2024 EBITDA was -104.0 MTL.

• Net loss (Inc. TAS 29) was -618.1 MTL in 1H2024 (net margin -3.7%), compared to -121.7 MTL in 1H2023; 2Q2024 net loss was -376.1 MTL.

• Cash and cash equivalents decreased to 775.4 MTL as of 1H2024 from 1.13 BTL at year-end 2023.

Outlook and guidance

• High interest rates and limited credit lines are expected to continue impacting traditional channel customers.

• Lower internal inflation trends are affecting growth and sales figures.

• The group is assessing the impact of new tax regulations published in August 2024 on its consolidated financials.

• Plans to expand Gross store format and increase renewable energy initiatives.