Migros Ticaret (MGROS) Q2 2024 earnings summary

Executive summary

• Net sales for 1H 2024 reached TL 121.1 billion, up 11% year-over-year, reflecting strong retail and omni-channel growth.

• Net income was TL 2.0 billion, down from TL 5.4 billion in 1H 2023, mainly due to inflation accounting and higher expenses.

• EBITDA for 1H 2024 was TL 4.1 billion (IAS 29), showing operational resilience.

• Expanded to 3,490 stores and 1,185 online service stores, with workforce at 55,182 as of June 2024.

• Maintained leadership in Turkish e-grocery and meal delivery, with strong digital ecosystem growth.

Financial highlights

• Gross profit reached TL 26.3 billion (IAS 29), with a margin of 21.7% in 1H 2024, up from 19.9% in 1H 2023.

• Free cash flow was TL 6.0 billion (IAS 29), and cash and cash equivalents rose to TL 16.5 billion.

• Total equity increased to TL 45.8 billion as of June 2024.

• Total financial debt (ex-IFRS 16) decreased to TL 1.5 billion.

• Operating loss for 1H 2024 was TL 5.73 billion, mainly due to increased marketing and other expenses.

Outlook and guidance

• 2024 sales growth guidance updated to 10% (IAS 29) and 75% (non-inflationary).

• EBITDA margin expected at 4.5–5.0% (IAS 29) and 8.0–8.5% (non-inflationary) for 2024.

• Targeting 350 new stores and TL 8.0 billion in CAPEX for 2024.

• Focus on retail expansion and operational efficiency, with retailing accounting for 96% of gross sales.

• Ongoing investments in store network and digital platforms to support growth.