Migros Ticaret (MGROS) Q4 2025 earnings summary

Executive summary

• Achieved TL 412.8 bn in net sales for 2025, up 7.3% year-over-year, with continued topline growth momentum and strong online traffic support under IAS 29 inflation accounting.

• EBITDA reached TL 27.3 bn, with a margin of 6.6%, reflecting a 120 bps improvement year-over-year, driven by efficiency investments and online business profitability.

• Net profit was TL 6.8 bn, down 21% year-over-year, with a net margin of 1.6%, impacted by inflation accounting adjustments and higher depreciation, amortization, and interest expenses.

• Expanded store network to 3,792 locations, including 681 new online service stores, 27 new Macrocenter openings, and 259 new stores overall, with presence in 519 towns.

• Online sales channels expanded, with e-commerce market share rising 180 bps to 21.6% and online orders up 17% year-over-year.

Financial highlights

• Gross profit rose to TL 100.3 bn, with gross margin improving to 24.3% due to a 30 bps reduction in shrinkage.

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

• Free cash flow was TL 7.8 bn, down 58.2% year-over-year due to one-off VAT/social security impacts and higher capex, with a 1.7-day improvement in the cash conversion cycle.

• CAPEX totaled TL 13.8 bn (3.3% of sales), with 20% allocated to efficiency investments such as electronic price tags and self-checkouts.

• Net cash position at TL 27.1 bn at year-end 2025; financial debt (excl. IFRS 16) down 51% to TL 773 mn.

Outlook and guidance

• 2026 guidance targets 5-7% sales growth (IAS 29), 6-7% EBITDA margin, and 180-200 new store openings.

• Plans to hire over 9,000 employees in 2026.

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