Migros results for 2Q 2014
19 August 2014
2Q 2014: TL 1,965m +14.2% (2Q 2013: TL 1,721m)
H1 2014: TL 3,738m +12.9% (H1 2013: TL 3,311m)
- Gross Profit
2Q 2014: TL 518m +13.6% (2Q 2013: TL 456m)
H1 2014: TL 995m +13.4% (H1 2013: TL 878m)
2Q 2014: TL 120m +18.8% (2Q 2013: TL 101m)
H1 2014: TL 235m +14.5% (H1 2013: TL 206m)
2Q 2014: TL 219m +18.0% (2Q 2013: TL 185m)
H1 2014: TL 426m +15.6% (H1 2013: TL 369m)
- Store Network
2Q 2014: + 65 new stores in 2Q 2014
H1 2014: + 82 new stores in 1H 2014, total of 1,079 stores
In the first half of the year, Migros recorded consolidated sales of TL 3,738m. Sales growth accelerated to 12.9% versus same period last year. According to Nielsen data, Migros’ market share in Modern FMCG Market improved by 50 bps to 14.2% compared to a year ago. Right positioning on key competitive areas with aggressive pricing contributed to robust sales performance in 1H 2014. Gross profit for 1H 2014 rose by 13.4% to TL 995m, representing 26.6% of sales (1H 2013: 26, 5%). EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) increased by 14.5% to TL 235m in 1H 2014 and the EBITDA margin ticked slightly up to 6.3% (1H 2013: 6.2%). EBITDAR (EBITDA before rent expenses) increased by 15.6% representing a margin of 11.4% in 1H 2014.
Sales growth gained momentum, increasing from 11.4% in 1Q 2014 to 14.2% in 2Q 2014 versus last year. In the first half of the year, the Company added 78 supermarkets, 3 hypermarkets in Turkey and 1 Ramstore in Kazakhstan to its store portfolio, reaching 82 new store openings. Considering the expansion in the first half, the Company revised its new store openings guidance from 100-150 to minimum 150 stores in 2014. While opening three new hypermarkets in Diyarbakır, Aydın and İstanbul in the second quarter, the Company continued its space optimisation in existing hypermarkets, thus creating a positive impact on sales area efficiencies. Acceleration in the expansion of proximity supermarkets continued and the number of Migros Jet stores exceeded 200 in June 2014. The total number of Group stores reached 1,079 at the end of June 2014.
Over the past years, Migros’ growth strategy has successfully delivered double-digit top line growth, an ever-expanding store base, market share gains and an enhanced competitive position. These factors together with vigilance over costs and working capital management have enabled Migros to deliver a stable operational margin.
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Migros Ticaret A.Ş.