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

Executive summary

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

• 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, with marketplace merchant count reaching 1,300 and SKUs up to 225,000, driving customer engagement and brand loyalty.

• Strategic actions in Q2 focused on revenue/margin optimization, cost rationalization, and inventory efficiency to mitigate macroeconomic headwinds.

• Net working capital turned negative, reflecting strong inventory and cash flow management.

Financial highlights

• Q2 2025 revenues increased 0.3% year-over-year to TL 17.7 billion; first half revenues reached TL 35.16 billion, 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%.

• EBITDA margin nearly doubled in Q2, rising from 2.7% to 5.3%; first half EBITDA margin at 4%.

• Net loss for Q2 2025 was TL 542 million, improving from TL 757 million in Q2 2024; adjusted net loss excluding one-off items 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 transformation 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.