Migros results for 1Q 2018

07-05-2018

 §  Store Network

1Q 2018: + 51 new stores, total of 1,933 stores

      2017: + 193 new stores

 

Financial Highlights

Strong sales growth momentum of Migros continued in the first quarter of 2018, despite a high base of record growth achieved last year. Migros’ consolidated sales rose by 26.5% and reached TL 3,940 million in 1Q 2018. Domestic growth performance of Migros excluding Kipa is indicative of continuous market share gains, which is verified by Nielsen data on FMCG sales in both organised and unorganised markets. Migros’ quality, service and best value proposition have been the pillars of its sustained strength.

The consolidated gross profit of Migros rose by 31.8% in 1Q 2018 corresponding a gross margin of 27.3%. Furthermore, 35.5% growth of consolidated EBITDA is higher than the consolidated sales growth of the Company. The operational profitability in 1Q 2018 improved over a year ago. The consolidated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) reached TL 211m, with a margin of 5.4% in the first three months of 2018.

Migros generated TL 423 m EBITDAR (EBITDA before rent) representing a margin of 10.7% in 1Q 2018. The Company’s operational profitability is undermined by mostly non-cash FX losses and one-off charges resulting in a consolidated net loss of TL 241m in 1Q 2018.

Operational Highlights

Migros opened 51 new stores in 1Q 2018. With the store openings in 8 new cities, the Company has been offering its service in all of 81 cities in the Country. 17 new stores opened in April 2018. As a part of inorganic growth program, Migros acquired Uyum stores in Istanbul and Makromarket stores in Antalya, of which are expected to be converted in Migros format within the next three months.
 

Migros aims to open between 120 and 150 new stores in 2018. After a strong top-line growth of 2017, the consolidated sales growth of Migros is expected to be between 15-18% in 2018. Migros aims to reach the consolidated EBITDA margin range of 5.5-6.0% this year.

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Migros Ticaret A.Ş.