Migros Ticaret (MGROS) Q1 2026 earnings summary

Executive summary

• Achieved 6.4% year-over-year real sales growth in Q1 2026, reaching TL 109.2 billion under IAS 29 inflation accounting, with net profit at TL 1.61 billion, up 19% year-over-year.

• EBITDA rose to TL 5.3 billion (4.8% margin), and gross profit reached TL 25.7 billion (23.6% margin), despite higher warehousing costs from payroll transitions.

• Store count reached 3,812 with 51 new openings, and online operations expanded to over 2,500 stores, with online channels contributing 23.5% of total sales.

• Fintech (MoneyPay/Moneypay) payment volume rose 148% to TL 37 billion, with daily transactions up 64% and registered users reaching 5.1 million.

• Continued investment in technology, store efficiency, and new initiatives, including Migros One and Moneypay.

Financial highlights

• Net sales: TL 109.2 billion (+6.4% y-o-y); EBITDA: TL 5.3 billion (+9.6% y-o-y, 4.8% margin); Net income: TL 1.61 billion (+19% y-o-y, 1.5% margin).

• Gross profit: TL 25.7 billion (23.6% margin); adjusted gross margin declined 30 bps to 22.1% due to distribution center transition costs.

• Free cash flow was TL 1.2 billion, with net cash at TL 28.1 billion, up 17% year-over-year.

• Capex reached TL 2.7 billion (2.4% of sales), focused on technology, self-checkouts, and store efficiencies.

• OPEX/Sales ratio improved to 23.3%, with a 30-40 bps improvement year-over-year due to efficiency gains.

Outlook and guidance

• Maintains 2026 guidance: consolidated revenue growth of 5-7% (IAS 29), EBITDA margin of 6-7% (IAS 29), and capex/sales ratio of 2.5-3.0%.

• Plans to open 180-200 new stores and hire over 9,000 employees in 2026.