Mavi Giyim Sanayi ve Ticaret (MAVI) Q1 2025 earnings summary

Executive summary

• Consolidated revenue reached TRY 8,273 million in Q1 2024, up 20% year-on-year, with 89% from Türkiye and strong retail and online growth.

• EBITDA rose 49% to TRY 1,984 million with a 24% margin; net income surged 127% to TRY 969 million.

• 409,000 new customers were acquired in Q1, and active loyalty program members reached 5.7 million.

• Total assets increased to TRY 17,255 million, and the workforce expanded to 6,427 employees.

Financial highlights

• Gross margin improved to 52.5%, up 650 basis points year-on-year, with gross profit at TRY 4,341 million.

• Operating profit nearly doubled to TRY 1,657 million, with an operating margin of 20.1%.

• Operational cash generation exceeded TRY 2 billion, with a 105% cash conversion rate.

• CapEx in Q1 was TRY 220 million, mainly for store expansion and digital investments, with a CapEx to sales ratio of 2.7%.

• Net cash position increased to TRY 5,266 million by April end.

Outlook and guidance

• FY2024 guidance unchanged: consolidated sales growth of 70% ±5% (without IAS 29), EBITDA margin of 20% ±0.5% exc. IFRS16, and 23.5% ±0.5% inc. IFRS16.

• Early Q2 shows continued positive sales momentum, with May retail and online sales up 74% and 73%, and Eid holiday in June boosting sales.

• Management expects some normalization in growth rates but remains confident in exceeding 15-20% volume growth.

• Net 15 new store openings and 10 expansions planned in Türkiye retail.