MIGROS TICARET A.S. FINANCIAL RESULTS FOR 2011 ANNOUNCED

10-04-2012

MIGROS TICARET A.S. FINANCIAL RESULTS FOR 2011 ANNOUNCED... TURNOVER REACHED TL 5,75 BILLION WITH AN INCREASE BY 11,5%, AND EBITDA REACHED TL 386 MILLION WITH AN INCREASE BY 11,1%.

Mr. TORT: “OUR SUPERMARKET FOCUSED APPROACH BROUGHT GROWTH IN DOUBLE DIGIT IN BOTH TURNOVER AND OPERATIONAL PROFITABILITY”

The financial results for 2011 of Migros Ticaret A.S. that re-set the expansion, efficiency and profitability targets according to the “supermarket focused growth strategy” announced in September 2011 were announced. The turnover of Migros Ticaret A.S. that left out of the discounted shopping segment and continued with its growth strategy focused on supermarket in 2011 was recorded as TL 5,8 Billion with an increase by 11,5% in comparison with the previous year. Mr. Özgür Tort, the General Manager of Migros Ticaret A.S., who stated that they increased the number of stores by 10% in comparison with the previous year by putting 77 new supermarkets and hypermarkets into service in 2011, said, “We had told in September 2011 that our growth would be in double digit and our profitability would increase. Besides increasing our sales by 11,5% in 2011, we also increased our EBITDA value in double digit by 11,1% in comparison with the previous year and elevated it to TL 386 Million. We are observing the results of our supermarket focused growth approach.

The financial results for 2011 of Migros Group were announced. According to the results announced to the stock exchange by Migros Ticaret A.S., the turnover and EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) figures of Migros grew in double digit in 2011. The turnover by the end of 2011 of Migros Ticaret A.S., which had declared that it would focus on supermarket in September 2011, rose from TL 5,16 Billion to TL 5,75 Billion with an increase by 11,5%. In the same period, EBITDA of Migros Ticaret A.S. grew in double digit with an increase by 11,1% in comparison with the previous year and elevated it to TL 386 Million.

Mr. Özgür Tort: “We focused on supermarket, and grew in double digit in both turnover and EBITDA”

Mr. Özgür Tort, the General Manager of Migros Ticaret A.S., who commented on the financial results for 2011, stated that the growth in double digit achieved in both the turnover and EBITDA was a result of supermarket focused approach. Mr. Tort told that they, as Migros Ticaret, could very well observe the change and evolution in the world of retail sale business with the experience and accumulation of knowledge for 58 years in the retail sale business and said, “We had declared in September last year that we deemed supermarket as the main branch of development in the food retail sale business and that we established our growth strategy with a focus on supermarkets. We trace our operational profitability over EBITDA. Since net profit is associated with the macro economic data such as the fluctuations in foreign exchange rates, it reflects the instant picture of the foreign exchange rate at the respective date. We see at this point today that our sales increased by 11,5% and EBITDA increased by 11,1%. The growth in double digit in both fields demonstrates the success of our strategy with a focus on supermarkets. In this sense, we are collecting the fruits of our supermarket focused growth approach.”

“The growth in our turnover in the last quarter of 2011 went above the average value with 14,4%”

Mr. Özgür Tort stressed that the decision to focus on supermarket had positive contribution to the financial results for 2011 of Migros Ticaret A.S. and said, “The first explicit reflection of this strategy appeared in the figures for the last quarter of 2011. While the annual increase rate in turnover was 11,5%, our sales increased over the average value for the year in the last quarter of 2011 and increased by 14,4% in comparison with the last quarter of 2010. Likewise, we expect a similar increase in sales in the first quarter of 2012”. Mr. Tort expressed that, besides the new stores opened with supermarket focused approach, the increased sales of the existing stores in comparison with the previous year contributed to this increase in the turnover. Mr. Özgür Tort continued his words as follows: “Our growth in double digit accelerated with our focus on supermarket; we confirmed this fact in the last quarter of 2011, our growth increased to around 14%. The sales are increasing similarly in the first quarter of 2012 as well.”

Mr. Özgür Tort declared that they had a historic growth and access rate in the brand of Migros in 2011 and added that they rushed to their target as a national brand spread to 66 cities in total in Anatolia starting from Istanbul. Mr. Tort continued his words as follows: “We gained the confidence of our customers within the framework of our strategy to focus on Aegean and Mediterranean Regions with Tansas. We became much more warm-hearted, proactive and closer, and reached 188 as the number of stores for Tansas at present. In respect of Macrocenter that offered an entirely different shopping experience in supermarket, we stepped out of Istanbul for the first time and put Antalya Macrocenter into service in 2011. We will continue to fortify our exclusive position in this course with the new stores to be opened. We have recently inaugurated our second 5M in Izmir and we have spread to 10 cities including the 5 biggest metropolitan cities in Turkey with 17 hypermarkets and we have new routes on our way. Migros Virtual Market, the first player of virtual shopping in the retail sale business, grew by 39% in 2011 and demonstrated once again that it was a strong brand alone. On the other hand, our operations abroad are continuing rapidly and profitably. In our operations abroad, for instance in Kazakhstan, we had an increase in the sales by 39%. Furthermore, our operations abroad reach the profitability margins beyond those in Turkey.”



“We have increased the number of stores by 10%, we will put minimum 100 new supermarkets into service in 2012, we inaugurated 36 stores in the 1st quarter”
Mr. Özgür Tort stated that Migros Ticaret A.S. put 77 new stores into service in 2011 and increased the number of stores by 10% in comparison with the previous year and expressed that the total number of stores reached 717 in the country by the end of 2011 with 5 hypermarkets inaugurated within the year, and it reached 745 in total including the stores abroad, and added that 81% of the store sales areas belonged to supermarkets, 12% belonged to hypermarkets and 7% belonged to the stores abroad in 2011. Mr. Tort said that they aimed at inaugurating 2 stores every week and 100 new supermarkets in total within 2012 and added, “We have put 35 new supermarkets and 1 hypermarket into service in 14 weeks that have elapsed since the beginning of 2012. Our total sales area has exceeded 750 thousand square meters in the country. We will reach 850 stores in the supermarket and hypermarket format until the end of the year as we have targeted.”

“Both the average of basket size and customers increased in the first quarter, our target for turnover by the end of year is TL 6.4 Billion”

Mr. Özgür Tort informed that the sales performance in the first quarter of 2012 went beyond their targets and said that the inflation rate applied in Migros Group stores was always 3-4% lower than the consumer inflation rate. Mr. Özgür Tort, the General Manager of Migros Ticaret A.S., continued his words as follows: “This is an essential factor that contributes to both the number of customers and average number of baskets regularly. These positive results achieved in the first quarter of the year encourage us to reach the target of turnover at the value of TL 6,4 Billion and growth in double digit that we have set to be reached by the end of the year. While our sales figures grow in double digit, we also aim at keeping on increase in our profitability.”