Bizim Toptan Satis Magazalari (BIZIM) Q3 2024 earnings summary

Executive summary

• Largest cash & carry company in Turkey by store count and geographic reach, with 182 stores in 72 cities and a diversified customer base including wholesalers, retailers, HORECA, corporates, and individuals.

• Operates a multi-channel sales model, including digital platforms and a significant franchising system (SEÇ) with 2,608 stores as of 3Q2024.

• Revenue for the nine months ended 30 September 2024 was TL 27.2 billion, down from TL 33.9 billion year-over-year, reflecting a significant contraction in topline performance.

• The period ended with a net loss of TL 963.8 million, compared to a net profit of TL 191.3 million in the prior year, driven by higher expenses and monetary losses.

• Focused on cost efficiency, store portfolio optimization, and increasing penetration of private label and exclusive products.

Financial highlights

• 3Q2024 consolidated sales (excluding TAS 29) reached 8.5 billion TL, up 16% year-over-year; 9M2024 sales at 24.3 billion TL, up 31%.

• Gross profit for the nine months was TL 3.49 billion, up from TL 3.12 billion year-over-year, but operating loss widened to TL 2.17 billion from TL 1.64 billion.

• Gross profit for 3Q2024 (excluding TAS 29) rose 34% year-over-year to 1.5 billion TL, with gross margin improving to 17.8% from 15.4%.

• EBITDA (excluding TAS 29) for 3Q2024 increased 4% year-over-year to 437.1 million TL, with margin at 5.1%.

• Net loss (excluding TAS 29) for 3Q2024 was -340.1 million TL, with net margin at -4.0%.

Outlook and guidance

• Full impact of cost efficiency and store optimization initiatives expected by Q4 2024.

• The company continues to operate in a hyperinflationary environment, applying inflation accounting as per TAS 29.

• Management is focused on optimizing the debt and equity balance and maintaining operational continuity.