Migros Ticaret (MGROS) Q4 2025 earnings summary

Executive summary

• Net sales/revenue reached TL 412.8 bn for 2025, up 7.3–7.4% year-over-year, supported by strong retail and online performance, and expansion in store count and sales area.

• EBITDA rose to TL 27.3 bn, with margin improving to 6.6%, reflecting operational efficiencies and online business profitability.

• Net profit was TL 6.8 bn (attributable to equity holders: TL 6.47 bn), down 21% year-over-year, with net margin at 1.6%, impacted by inflation accounting and higher expenses.

• Store network expanded to 3,792 locations, including 681 new online service stores and 27 new Macrocenter openings, with presence in 519 towns and 55,434 employees.

• Continued focus on food and consumer goods retail, with digital and fintech segment growth.

Financial highlights

• Gross profit rose to TL 100.3 bn, with gross margin improving to 24.3% from 23.1% due to reduced shrinkage.

• OPEX/sales ratio decreased to 20.8% in 2025, with reductions in employee, energy, and rent costs.

• Free cash flow was TL 7.8 bn, and cash conversion cycle improved by 1.7 days.

• CAPEX totaled TL 13.8 bn, with 20% allocated to efficiency investments such as electronic price tags and self-checkouts.

• Cash and cash equivalents at year-end were TL 27.8 bn.

Outlook and guidance

• 2026 guidance targets 5–7% sales growth, 6–7% EBITDA margin, and 180–200 new store openings.

• Capex/sales ratio expected to be 2.5–3.0% in 2026.

• Management expects continued growth in retail and online channels, leveraging expanded store network and digital services.

• Inflationary pressures and regulatory changes in Turkey are expected to impact cost structure and margins.

• Ongoing investments in logistics, technology, and new subsidiaries to support long-term growth.