Migros Ticaret (MGROS) Q1 2026 earnings summary

Executive summary

• Net sales reached TRY 109.2 billion in Q1 2026, up 6.4% year-over-year, supported by volume gains, store expansion, and resilient performance despite weak consumer demand and macroeconomic tightening.

• Net profit rose 19% year-over-year to TRY 1.61 billion, with EBITDA at TRY 5.3 billion (4.8% margin), reflecting improved profitability and efficiency initiatives.

• Store count reached 3,812 with 51 new openings, prioritizing larger formats and hybrid online/offline models; online service stores expanded to 2,520.

• Online operations expanded, with e-commerce share rising to 23.5% of turnover, daily orders doubling year-over-year, and meal delivery GMV up 54%.

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

Financial highlights

• Gross profit was TRY 25.7 billion with a 23.6% gross margin (IAS 29), despite higher warehousing costs from payroll transitions.

• Adjusted EBITDA was TRY 3.7 billion, up 26%; net profit margin improved to 1.5% from 1.3% year-over-year.

• Free cash flow was TRY 1.2 billion, with net cash at TRY 28.1 billion, 17% higher than last year.

• Cash conversion cycle improved by 1.6 days to 37.6 days, reflecting better working capital management.

• Earnings per share increased to TRY 8.83 from TRY 7.09 year-over-year.

Outlook and guidance

• Maintains full-year guidance: real top-line growth of 5%-7%, IAS 29 EBITDA margin of 6%-7%, and adjusted EBITDA margin of 4%-5%.

• Store expansion target remains at 180-200 new stores for 2026.

• Capital expenditures guided at 2.5%-3% of sales for 2026.

• Management continues to focus on expanding retail footprint and digital services.

• Inflation accounting (TAS 29) applied for the first time, with all figures restated to current purchasing power.