Teknosa Iç ve Dis Ticaret Anonim Sirketi (TKNSA) Q4 2024 earnings summary

Executive summary

• Net sales grew 1.6% year-over-year to 69.4 bn TL, with EBITDA up 87% to 2.9 bn TL, supported by an effective omnichannel strategy and increased sales in mobile and air-conditioning.

• E-commerce GMV declined 9.7% due to market competition and a focus on profitability, while the marketplace expanded to 1,605 merchants and 200,000 SKUs.

• Operational efficiencies and improved gross margin led to a higher EBITDA margin of 4.2% for FY24.

• Net loss of 1.42 bn TL for FY24 was mainly due to higher finance expenses, including elevated credit card costs and inflation accounting.

• Recognized for sustainability, included in CDP's 'A List' and committed to reducing emissions by 42% by 2030 and achieving Net Zero by 2050.

Financial highlights

• FY24 revenues (IAS 29 adjusted) rose 2% to 69.4 bn TL; gross profit up 22% to 8.9 bn TL; EBITDA margin improved to 4.2% from 2.3% in FY23.

• Net loss of 1.42 bn TL, compared to a net profit of 1.08 bn TL in FY23, mainly due to higher finance expenses.

• E-commerce GMV (w/o IAS 29) reached 11.7 bn TL, up from 8.4 bn TL in 2023, but below initial guidance.

• CAPEX (w/o IAS 29) was 800 mn TL, below the 1 bn TL guidance due to reassessment of investments.

• Ended the year with a net cash position of 2,166 mn TL.

Outlook and guidance

• Focus for 2025 includes driving revenue growth in complementary products, maintaining a profitable retail mix, and optimizing gross margin.

• Ongoing transformation initiatives target operational KPIs, cash management, and cost control.

• Continued investments in AI-based digital transformation, stores, online platforms, and customer experience.