Migros results for 3Q 2013

11-11-2013

Migros maintained its operational profitability margin and double digit growth pace also in 3Q 2013. Sales reached TL 5,312m in the first 9 months of the year recording a calendar adjusted growth rate of 10.2%. In addition, Migros continued to gain market share within the national chains in 2013.

  • Sales

    3Q 2013: TL 2,001m +9.6% (3Q 2012 TL 1,825m)
    9M 2013: TL 5,312m +9.9% (9M 2012 TL 4,833m)
     
  • Gross Profit

    3Q 2013: TL 523m +11.8% (3Q 2012 TL 468m)
    9M 2013: TL 1,401m +10.6% (9M 2012 TL 1,267m)
     
  • EBITDA

    3Q 2013: TL 137m +10.3% (3Q 2012 TL 124m)
    9M 2013: TL 342m + 6.9% (9M 2012 TL 320m)
     
  • Ahead of Original Store Expansion Plan

    + 142 new stores in 9M 2013, reaching 995 stores
     

Migros maintained its operational profitability margin and double digit growth pace also in 3Q 2013. Sales reached TL 5,312m in the first 9 months of the year recording a calendar adjusted growth rate of 10.2%. In addition, Migros continued to gain market share within the national chains in 2013.

The Company is ahead of its existing store expansion programme by the end of the third quarter in 2013. The focus of growth has been in the Group’s core supermarket space. 142 new stores were opened during the first nine months of the year including 135 supermarkets, 2 hypermarkets and 5 Ramstores (4 in Macedonia and 1 in Kazakhstan). The total number of Group stores increased to 995 at the end of September 2013.

Gross profit for 9M 2103 increased by 10.6% to TL 1,401m, representing a gross margin of 26.4% (9M 2012: 26.2%). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) in 9M 2013 increased by 6.9% to TL 342m, representing an EBITDA margin of 6.4% (9M 2012: 6.6%). The Company recorded 6.8% EBITDA margin in 3Q 2013. EBITDAR (EBITDA before rent expenses) margin also improved from 11.2% in 3Q 2012 to 11.4% in 3Q 2013.

Apart from store openings, Migros clearly differentiated itself from the national competition through its increased emphasis on fresh produce assortment and pricing, the quality of its service level, competitive promotions and everyday low price policy on private label products. To capitalize further on these strengths, the Company introduced fresh category centred concept changes in selected large supermarkets.

In addition, the Company continued to re-configure its hypermarkets and big supermarkets to optimize their sizes achieving a more efficient space allocation. Migros is also supporting its emphasis on fresh categories by streamlining its supply chain. Significant improvements are achieved on purchasing and supply chain on perishable goods.

Over the last few years, Migros’s 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 have been combined with vigilance over costs and working capital management, which have enabled Migros to deliver a stable operational margin.

Migros is on target to deliver a double digit sales growth for the full year of 2013.

Migros Ticaret A.Ş.