Migros results for 2Q 2018
09 August 2018
§ Store Network
1H 2018: + 134 new stores, total of 2,3 stores
2017: + 193 new stores
Migros’ consolidated sales rose by 20.3% and reached TL 8,463 million in 1H 2018, which validates continuing strong top-line growth momentum of Migros. Domestic sales growth excluding Kipa was stronger in 2Q 2018 with 19.3% than 1Q 2018 (1Q 2018: 17.9%). Space optimization in Kipa dilute the sales performance indicators on a consolidated basis in 2Q 2018. Migros on a consolidated level reported y-o-y 15.3% sales growth increase in 2Q 2018.
The consolidated gross profit of Migros rose by 27.6% in 1H 2018 corresponding a gross margin of 27.6%. Likewise, consolidated EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) growth was strong with 39.5% increase, reporting an EBITDA margin of 5.7% in the first half of the year. The consolidated EBITDA reached TL 486 million in 1H 2018. Migros generated TL 936 m EBITDAR (EBITDA before rent) representing a margin of 11.1% in 1H 2018.
The consolidated EBITDA margin was stronger with 6.1% in 2Q 2018 than 1Q 2018. Migros generated TL 275 million EBITDA and TL 512 million EBITDAR in 2Q 2018 on consolidated basis. On the other hand, appreciation of Euro in 2Q 2018 undermined strong operational performance through FX losses resulting in a consolidated net loss of TL 291 million in 2Q 2018.
CMB approved the simplified merger application of Migros & Kipa on July 19, 2018 as communicated to the public before. The merger is expected to be effective by the end of August 2018.
Migros made its debut in debt capital markets with issuance of TL 150 million bond to qualified investors including EBRD (The European Bank for Reconstruction and Development) in July 2018. Migros national rating is published by Fitch Ratings AA- (Stable) prior to the launch.
Migros opened 134 new stores in 1H 2018. Furthermore, the Company added 41 new stores to its store portfolio in July. The number of stores reached 2,052 as of July 31, 2018.
Consolidated sales growth guidance is revised upwards from 15-18% to ~20% for 2018 FY. The guidance for store expansion is also upped from 120-150 stores to 200+ stores. Expected capital expenditures in 2018 is revised as TL 440 million on a consolidated level. Migros maintains its EBITDA margin guidance between 5.5 and 6.0%.
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Migros Ticaret A.Ş.