Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) Q1 2025 earnings summary

Executive summary

• Revenue declined 18% year-over-year in Q1 2025 to TL 16,505 million, driven by weak demand, seasonality, and macroeconomic headwinds.

• EBITDA margin improved to 2.7% from 2.5% year-over-year, supported by higher gross margin and disciplined OpEx management.

• Net loss widened to TL 414 million from TL 131 million in Q1 2024, with net profit margin at -2.5%.

• Continued focus on digital transformation, AI-driven initiatives, and sustainability, including inclusion in the BIST Sustainability Index.

• Store network optimized to 172 locations, with 71 stores upgraded to new digital concepts and retail area at 105K sqm.

Financial highlights

• Gross margin increased by 1.4 percentage points year-over-year to 12.7%, with gross profit at TL 2,093 million.

• EBITDA reached TL 441 million, down 14% year-over-year, with margin at 2.7%.

• Net financial expenses-to-revenue ratio improved to 5.6% from 5.9% year-over-year.

• Total CapEx rose 21% in real terms, focused on IT, efficiency, and digital transformation.

• Cash and cash equivalents at March 2025 were TL 1,567 million, down from TL 2,813 million at December 2024.

Outlook and guidance

• Focus on driving revenue growth in complementary products and services, optimizing gross margin, and controlling OpEx.

• Continued investment in AI-driven digital initiatives and IT infrastructure to enhance operational efficiency.

• Commitment to long-term growth, sustainability, and strategic CapEx investments despite macroeconomic challenges.