Migros results for 4Q 2013 and for full year 2013
4Q 2013: TL 1,815m +10.0% (4Q 2012 TL 1,650m)
FY 2013: TL 7,127m +9.9% (FY 2012 TL 6,482m)
- Gross Profit
4Q 2013: TL 494m +12.8% (4Q 2012 TL 438m)
FY 2013: TL 1,895m +11.2% (FY 2012 TL 1,705m)
4Q 2013: TL 127m +15.4% (4Q 2012 TL 110m)
FY 2013: TL 469m + 9.1% (FY 2012 TL 430m)
4Q 2013: TL 217m +14.3% (4Q 2012 TL 190m)
FY 2013: TL 813m +10.5% (FY 2012 TL 736m)
- Store Network
4Q 2013: + 23 new stores
FY 2013 : + 165 new stores in 2013, total of 1,004 stores in 70 cities
Consolidated sales turnover of Migros reached TL 7,127m in 2013, recording a calendar adjusted growth rate of 10.2%. Sales grew by 10.0% in the final quarter of 2013. Migros’s FMCG market share in modern grocery channels improved by 60 bps to 14.2% during the course of last year. Furthermore, Migros maintained its operational profitability margin in both 4Q 2013 and FY 2013.
Gross profit for 2013 increased by 11.2% to TL 1,895m, representing a gross margin of 26.6% (2012: 26,3%). EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) increased by 9.1% to TL 469m in 2013, representing an EBITDA margin of 6.6% (2012: 6.6%). The Company had an EBITDA margin of 7.0% in 4Q 2013.
The Company exceeded its store roll-out target in 2013. The supermarket segment remained the focus of growth. 165 new stores opened during 2013 comprising 154 supermarkets, 3 hypermarkets and 8 Ramstores (7 in Macedonia and 1 in Kazakhstan). The Company’s high-end format Macrocenter penetrated into three more cities: Ankara, Muğla and İzmir. The total number of Group stores increased to 1,004 at the end of 2013. Furthermore, space optimisation projects for hypermarkets increased their operational efficiency.
In addition to being the fastest growing national supermarket operator, Migros clearly differentiated itself from its national competitors through its increased emphasis on fresh produce assortment, aggressive everyday low price policy on private label products, the quality of its service level and competitive promotions. To further capitalize on these strengths, the Company introduced concept changes in selected large supermarkets with a specific focus on the fresh categories and FMCG products.
Migros also moved its meat plant (“Miget”) to Torbalı, İzmir city doubling its meat production capacity. Miget is the biggest meat plant in Turkey with an indoor area of 12,000 sqm and a meat processing capacity of 50,000 tons. With this strategic move, the Company has full control and product traceability over its fresh meat supply chain.
Strategies and trading update
Migros is also supporting its emphasis on fresh categories by streamlining its supply chain. Shelf life and freshness in fruits and vegetables category increased significantly by delivering products from farms to store shelves in a much shorter time frame.
Over the past 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 together with vigilance over costs and working capital management have enabled Migros to deliver a stable operational margin.
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