Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) Q2 2024 earnings summary

Executive summary

• Net sales grew 10% year-over-year to 28,884 mn TL in H1 2024, driven by omnichannel strength and increased demand in telecom and air-conditioning categories.

• Store visitors increased 8% year-over-year, with 178 stores and 105K sqm retail area.

• Marketplace/online GMV reached 33%, with 5.3 bn TL inflation-indexed GMV, 5.4M active customers, 832 merchants, and 188K SKUs.

• Gross margin and EBITDA margin declined due to price competition, retail mix, increased OPEX, and higher financial expenses.

• Maintained FY 2024 guidance and committed to long-term growth targets despite ongoing challenges.

Financial highlights

• Total revenues grew 10% year-over-year to 28,884 mn TL (IAS 29 adjusted); e-commerce GMV rose 2% to 5,261 mn TL.

• Gross profit increased 7% to 3,392 mn TL, but gross margin fell to 11.7% from 12.1% year-over-year.

• EBITDA dropped 21% to 758 mn TL, with EBITDA margin down to 2.6% from 3.7%.

• Net loss of -663 mn TL in H1 2024, compared to a net profit of 471 mn TL in 1H23, mainly due to higher financial expenses.

• OPEX/sales ratio increased to 11.2% from 10.4%.

Outlook and guidance

• FY2024 guidance maintained, targeting high single-digit EBITDA margin and 15 bn TL e-commerce GMV (w/o IAS 29).

• Focus on operational efficiency, working capital recovery, and strategic CAPEX to support long-term digital transformation.

• Ongoing transformation initiatives and cost control measures aim to sustain growth and improve operational KPIs.