Mavi Giyim Sanayi ve Ticaret (MAVI) Q2 2025 earnings summary

Executive summary

• Consolidated revenue for H1 2024 grew 6% year-over-year to TRY 16.4 billion, with EBITDA up 14% to TRY 3.37 billion and net income rising 30% to TRY 1.519 billion, reflecting strong operational performance despite macroeconomic headwinds.

• Retail sales in Türkiye increased 11% and online sales grew 10% in H1 2024, with 768,000 new customers acquired and active loyalty card members reaching 5.7 million.

• International sales declined 7.5% in H1 2024 in constant currency, with North America as the only growth market in Q2.

• Operational cash flow exceeded TRY 3.43 billion in H1 2024, supported by optimal inventory and effective working capital management.

• The group maintained a robust cash position, ending the period with TRY 6.2 billion in cash and cash equivalents.

Financial highlights

• Gross margin improved to 51.8% in H1 2024 from 47.5% a year earlier; EBITDA margin reached 20.6%.

• Net cash position at period end was TRY 4.9 billion, with a 99% cash conversion rate in H1.

• Operating profit increased to TRY 2.48 billion from TRY 1.97 billion year-over-year.

• Earnings per share for the six months was TRY 3.91, up from TRY 3.01 in the prior year.

• Dividend payment of TRY 887 million was made during the period.

Outlook and guidance

• FY2024 guidance (excluding IAS 29): consolidated sales growth of 70% ±5%, EBITDA margin of 20% ±0.5% (exc. IFRS16), net 15 new store openings and 10 expansions in Türkiye, and capex/sales ratio of 5%.

• Early Q3 showed variable demand, with August starting weak but improving in September; Turkey retail and online sales grew 57% and 64% respectively in the first half of September (nominal, IAS 29 excluded).

• Management notes that six-month results are not indicative of full-year performance due to seasonality.

• The group continues to monitor the impact of new tax regulations and inflation accounting on future results.

• Management remains committed to sustaining profitable growth and will update guidance if needed in Q3.