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

Executive summary

• Net sales grew 10% year-over-year to TL 28,884 million 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 TL 5,261 million GMV and 5.4M active customers.

• Gross margin and EBITDA margin declined due to price competition, retail mix, and increased OPEX, while profitability was pressured by higher financial expenses.

• The period ended with a net loss of TL 663 million, compared to a net profit of TL 471 million in the prior year, mainly due to higher financial expenses.

Financial highlights

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

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

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

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

• Operating loss for the period was TL 1,440 million, compared to TL 149 million in the prior year.

Outlook and guidance

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

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

• The company is assessing the impact of new tax regulations, including domestic and global minimum tax applications, on future financial statements.

• A bond issuance of up to TL 1 billion for qualified investors was approved post-period.

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