Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) Q3 2024 earnings summary

Executive summary

• Revenues grew 5.4% year-over-year to 47.4 bn TL for 9M 2024, outpacing the panel market.

• Achieved strong operational performance in Q3 2024, driven by cost optimization, inventory, and cash management measures.

• Store visitors increased 6% year-over-year, with 176 stores and 106K sqm retail area.

• Marketplace expanded to 901 merchants and 193K SKUs, though e-commerce GMV declined 2% YoY to 8.7 bn TL.

• Focus on digitalization, omnichannel strategy, and operational improvements drove topline and margin gains.

Financial highlights

• 9M 2024 revenues: 47.4 bn TL (up 5.4% YoY); EBITDA: 1,509 mn TL (up 90% YoY); Net profit: -1,092 mn TL (vs. 931 mn TL profit in 9M 2023).

• Gross profit margin improved to 12.1% (from 10.3% YoY); EBITDA margin rose to 5.8% (from 3.2%).

• Net working capital improved to -1,178 mn TL, with cash position at 10,722 mn TL as of Sep 2024.

• 73% of 596 mn TL CAPEX in 9M 2024 allocated to IT and efficiency projects.

• Net cash position reached TL 1.8 billion in 3Q 2024, reflecting strong balance sheet and working capital management.

Outlook and guidance

• FY 2024 guidance remains unchanged, targeting high single-digit EBITDA margin and 15 bn TL e-commerce GMV (excluding IAS 29).

• E-commerce NMV/retail total merchandise value expected to reach around 20% in the mid-term.

• Focus in Q4 on revenue growth via complementary products, strict working capital management, and mitigating financing costs.

• Committed to long-term growth targets and strategic investments despite challenging macroeconomic conditions.

• Focus on sustainability, aiming for Net Zero by 2050.