Migros Ticaret (MGROS) Q3 2024 earnings summary

Executive summary

• Net sales reached TL 206.3 billion for 9M 2024, with 12% growth under IAS 29 and 82% growth without inflation accounting.

• Net profit declined 50% year-over-year to TL 5,464 million with IAS 29, but rose 15% to TL 4,883 million without inflation accounting.

• EBITDA for the period was TL 9.8 billion, up from TL 4.6 billion year-over-year.

• Retailing accounted for 97% of gross sales, with 3,550 stores and 1,289 online service stores as of 30 September 2024.

• Online business GMV grew 110% year-over-year, with online share of sales at 18.2% (excluding tobacco & alcohol).

Financial highlights

• Gross profit increased 32% to TL 46,501 million with IAS 29; gross margin at 22.5% for 9M 2024.

• Free cash flow remained stable at TL 13,174 million for 9M 2024.

• Total equity rose 15% to TL 54,435 million; total financial debt (excluding IFRS 16) fell 61% to TL 1,585 million.

• Net cash position improved 18% to TL 21,325 million; cash and cash equivalents increased to TL 22.9 billion.

• CAPEX reached TL 6,072 million, with 33% allocated to new stores and 26% to IT, R&D, and energy.

Outlook and guidance

• 2024 sales growth guidance updated to 10–12% with IAS 29 and 76–78% without; EBITDA margin expected at ~5.0% (IAS 29) and ~9.0% (non-inflationary).

• Expansion target maintained at ~350 new stores and CAPEX at TL ~8.0 billion.

• No subsequent events affecting the financial statements were reported after the period end.