Ulker Bisküvi Sanayi (ULKER) Q2 2025 earnings summary

Executive summary

• Achieved strong volume growth and maintained market leadership in key regions despite macroeconomic headwinds, including high inflation and raw material volatility.

• Launched several new products and impactful marketing campaigns, contributing 4% to Q2 net revenue and supporting topline growth.

• Advanced sustainability initiatives, including 100% recyclable packaging, biofortified products, and received multiple awards for employer excellence and corporate reputation.

• Revenue for the six months ended 30 June 2025 reached TL 51.6 billion, with gross profit at TL 15.8 billion and net profit attributable to equity holders at TL 3.28 billion.

• Distributed TL 2.98 billion in dividends, fully covered by period profit, and maintained a strong cash position with TL 27.4 billion in cash and equivalents at period end.

Financial highlights

• Q2 revenue grew by 11.5% year-over-year to TRY 23,058M; volume up 5.5%; gross profit margin at 27.2%.

• Q2 EBITDA margin at 14.6%; H1 EBITDA margin at 17.8%, slightly down from 20.0% year-over-year.

• H1 revenue reached TRY 51,640M, up 4.6% year-over-year; net profit attributable to equity holders at TL 3.28 billion.

• Net debt/EBITDA improved to 1.24x as of June 2025.

• Financial expenses rose sharply to TL 11.6 billion, driven by higher interest and foreign exchange losses.

Outlook and guidance

• 2025 guidance: 3% ±1% net sales growth and 17.5% ±0.5% EBITDA margin.

• Expect gross margins in H2 to be in line with H1, with normalization in working capital and inventory levels.

• Management continues to focus on margin preservation and operational efficiency amid ongoing inflation and currency volatility.

• Inflation for H2 estimated at 30%, down from 35% in H1.

• The company is investing in sustainability and growth, supported by new syndicated and EBRD loans and an IFC facility.