Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) Q2 2025 earnings summary

Executive summary

• Revenues remained broadly flat year-over-year despite high inflation, market contraction, and elevated interest rates, supported by operational efficiency, cost discipline, and strategic actions.

• Store network optimization led to a reduction in store count but increased average net sales area per store, focusing on larger, experience-driven formats.

• Marketplace and e-commerce platforms expanded significantly, with merchant count reaching 1,300 and SKUs exceeding 215,000, driving customer engagement and loyalty program growth.

• EBITDA margin improved due to expanded gross margin and disciplined cost control, with net working capital turning negative, reflecting strong inventory and cash flow management.

• Strategic and digital transformation initiatives, including AI and ERP implementation, are expected to yield further benefits in the second half of 2025 and beyond.

Financial highlights

• Q2 2025 revenues increased 0.3% year-over-year to TL 17,667 million; first half revenues reached TL 35,163 million, down 9.9% year-over-year.

• Gross margin improved by 2.1 percentage points year-over-year in Q2 to 14.4%; first half margin at 13.5%-13.6%, up from 11.7% a year earlier.

• EBITDA margin nearly doubled in Q2, rising from 2.7% to 5.3%; first half EBITDA margin at 4.0%, up from 2.6% year-over-year.

• Net loss for Q2 2025 was TL 542 million, improving from TL 757 million in Q2 2024; first half net loss was TL 980.5 million.

• Adjusted net loss for Q2 2025, excluding one-off OpEx costs, was TL 455 million.

• CapEx for the first half was TL 342 million, maintaining a CapEx-to-sales ratio of 1%.

Outlook and guidance

• Management expects further benefits from ongoing efficiency, digitalization, and sustainability initiatives in the second half of 2025 and beyond.

• Anticipates demand recovery in Q3 and Q4, supported by back-to-school campaigns and new product launches.

• Expects to benefit from declining interest rates following recent monetary easing.

• Remains committed to long-term growth, digital-first transformation, and sustainability, targeting a 42% reduction in Scope 1 and 2 emissions by 2030 and Net Zero by 2050.

• Financial statements are prepared under hyperinflationary accounting (TAS 29), reflecting significant inflation adjustments.