Ulker Bisküvi Sanayi (ULKER) Q4 2024 earnings summary

Executive summary

• 2024 volume rose 2.4%, revenue increased 4.3% to TRY 84.1 billion and EBITDA grew 1.9% to TRY 15.6 billion, surpassing guidance

• Net income reached TRY 7.4 billion, up 52% year-over-year

• Maintained snacking leadership, with 25% share overall and 35% in Türkiye

• Ranked as a world leader in the LSEG Sustainability Index and among Türkiye’s top employers for four consecutive years

• Issued Türkiye’s first sustainability-linked Eurobond; IFC invested €75 million

Financial highlights

• 2024 revenue was TRY 84.1 billion and EBITDA TRY 15.6 billion, up 4.3% and 1.9%, respectively

• Net income rose 52% year-over-year to TRY 7.4 billion

• Gross margin improved to 29.8% from 29.0%; Q4 gross profit rose 14% year-over-year

• EBITDA margin was 18.5% for 2024, exceeding guidance; Q4 margin was 18%

• Domestic revenue accounted for 70% of total; international revenue was 30%

Outlook and guidance

• 2024 revenue and EBITDA margin of TRY 84.1 billion and 18.5% exceeded guidance of ~TRY 80.0 billion and ~18.2%

• 2025 revenue and EBITDA margin guidance expected after Q1; focus remains on leadership, revenue and profitability despite anticipated challenges

• Aim to keep net debt/EBITDA below 2.5; no major acquisitions planned for 2025