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

Executive summary

• Revenues for the nine months ended 30 September 2024 grew 5.4% year-over-year to TL 47,421,069, driven by cost optimization, inventory, and cash management measures.

• EBITDA nearly doubled year-over-year to TL 1,509,458, with margin improvement from 1.8% to 3.2% or up to 5.8% depending on reporting basis.

• The period ended with a net loss of TL 1,092 million, compared to a net profit of TL 931 million in the prior year, mainly due to high financial expenses.

• The company operates 176 stores and an e-commerce platform, with a workforce of 2,859 as of 30 September 2024.

• Marketplace expanded to 901 merchants and 193,000 SKUs, though e-commerce GMV declined 2% year-over-year to TL 8,697 million.

Financial highlights

• 9M 2024 revenues: TL 47,421 million (up 5.4% YoY); EBITDA: TL 1,509 million (up 90% YoY); Net loss: TL 1,092 million (vs. TL 931 million profit in 9M 2023).

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

• Net working capital improved to -1,178 million TL, with a net cash position of TL 1.8 billion as of 3Q 2024.

• Finance expenses increased to TL 3,230 million from TL 1,486 million year-over-year.

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

Outlook and guidance

• FY 2024 guidance remains unchanged, targeting high single-digit EBITDA margin and TL 15 billion 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.

• Financial statements are prepared in accordance with Turkish Financial Reporting Standards and adjusted for hyperinflation as per TAS 29.