Migros Ticaret (MGROS) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 reached TL 78.4 bn, up 8.5% year-over-year, with inflation accounting applied.

• Net profit was TL 1.03 bn, down 41% year-over-year, mainly due to higher expenses and inflation accounting.

• EBITDA reached TL 3.7 bn (4.7% margin), reflecting TFRS 16 adjustments.

• Store network expanded to 3,642 locations, with 56 new stores opened, 11 closed due to earthquake concerns, and workforce grew by 420 employees.

• Online grocery and meal businesses posted strong growth, with online grocery GMV up 16% and meal business GMV up 59% year-over-year.

Financial highlights

• Gross profit rose 30% to TL 19.0 bn; gross margin improved to 24.2% from 20.2% year-over-year.

• Operating loss narrowed to TL -3.0 bn from TL -4.5 bn in Q1 2024 (with inflation accounting).

• Net cash position (excluding IFRS 16) increased 6% to TL 18.4 bn; cash and cash equivalents at period end were TL 19.4 bn.

• Total equity rose 9% to TL 64.4 bn; total financial debt (excl. IFRS 16) fell 51% to TL 1.1 bn.

• Free cash flow turned negative at -TL 3.2 bn, mainly due to VAT receivables and one-off items; net cash from operating activities was negative TL 169 mn.

Outlook and guidance

• 2025 sales growth expected at 8–10% with EBITDA margin targeted at ~6.0%.

• Plan to open ~250 new stores in 2025; capex/sales ratio guided at 2.5–3.0%.

• Inflationary pressure on opex expected to ease in 2H 2025; focus remains on operational efficiency and cost control.