Migros results for 1Q 2019

08-05-2019

 §  Store Network

1Q 2019: + 19 new stores, total of 2,100 stores
238 new stores in 2018

 

Financial Highlights

Migros consolidated sales growth in 1Q 2019 reached 24.9% surpassing Company’s FY guidance of 20%, despite slower pace of new store opening program. Migros opened 19 new stores in the first quarter of the year. Sales turnover exceeded TL 4.9 billion in 1Q 2019. Competitive prices especially in fresh categories have been well perceived by consumers. Giving more value to consumers has awarded Migros with increased footfall.

Migros doubled its consolidated sales turnover in the past three years and benefited from the economies of increased scale in the form of a more efficient operational structure.

The company recorded TL 314 mn EBITDA (TL 490 mn with IFRS 16) corresponding 6.4% EBITDA margin (9.9% with IFRS 16) in 1Q 2019. EBITDA growth of 52.5% is driven by higher gross profitability, and a better fixed cost absorption due to increase scale. Migros recorded TL 556 mn consolidated EBITDAR (EBITDA before rent) in 1Q 2019, representing a margin of 11.3%.

Further depreciation of TL against Euro increased Company’s FX losses as well as financial expenses and the Company reported a net consolidated loss of TL 231 mn in 1Q 2019 (with IFRS 16). On the other hand, Migros will strive to generate strong operational profitability in the coming quarters just like in the previous years.

Operational Highlights

Migros opened 36 stores in the first four months of the year. The Company is very much on track in implementing its expansion plan and at least 65 stores are expected to be opened in the remainder of the year.

The contribution of online business to the growth has been strong in 2019. The Company will be exploring alternative online sales channels this year, one of which is promising delivery within 30 minutes. The app Migros Now (“Migros Hemen”) is now being rolled over to many neighborhoods in the big cities. The company’s focus remains providing the best shopping experience and offering customers the ultimate convenience of shopping anytime, anywhere.

 

 


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