Migros Ticaret (MGROS) Q1 2025 earnings summary

Executive summary

• Achieved TL 78.4 bn in net sales for 1Q 2025, up 8.5% year-over-year, driven by omnichannel expansion and competitive pricing, with inflation accounting applied.

• EBITDA reached TL 3.7 bn (4.7% margin), while net profit was TL 1.03 bn, reflecting a 41% decline year-over-year due to higher costs and inflationary impacts.

• Store network expanded to 3,642 locations, with 56 new stores opened and 11 closed due to earthquake concerns; workforce grew to 53,748.

• Online grocery and meal businesses posted strong growth, with online grocery GMV up 16% and meal business GMV up 59% year-over-year; online channels contributed 21.1% of total sales (excl. tobacco & alcohol).

• Free cash flow turned negative at -TL 3.2 bn, mainly due to VAT receivables and one-off balance sheet items.

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 1Q 2024 (with inflation accounting).

• Net cash position (excluding IFRS 16) increased 6% to TL 18.4 bn; total financial debt (excl. IFRS 16) fell 51% to TL 1.07 bn.

• Capex was TL 1.6 bn, down 35% year-over-year, with a focus on efficiency, technology, and sustainability investments.

• Cash and cash equivalents at period end were TL 19.4 bn, down from TL 24.8 bn at year-end 2024.

Outlook and guidance

• 2025 sales growth expected at 8–10% with EBITDA margin targeted at ~6.0% (IAS 29 basis); capex/sales ratio guided at 2.5–3.0%.

• Plan to open ~250 new stores and hire over 8,000 employees in 2025.

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