Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — FY2024 Earnings Presentation
44 slides from Migros Ticaret A.s's earnings presentation, 2025
Slide 1: Company Presentation
Omni-channel, multi format retailer Company Presentation 2024
Slide 2: Disclaimer
Disclaimer In accordance with the decision of the Capital Markets Board (CMB) dated 28.12.2023 and numbered 81/1820, it has been decided that issuers and capital market institutions, which apply Turkish Accounting/Financial Reporting Standards and are subject to the financial reporting regulations o
Slide 3: Contents
Contents Operational & Financial Overview Strategy Update Summary & Guidance Appendix 3
Slide 4: Migros Market Share Evolution
Migros Market Share Evolution Migros FMCG Market Share Growth Focus (%) Omni channel & Multi format +80 bps +120 bps 17.0 16.2 15.0 Further +40 bps penetration +60 bps in rural 8.8 9.4 9.8 Market districts Share Gain Price Investments 2022 2023 2024 2022 2023 2024 Total FMCG Modern FMCG +200 bps mar
Slide 5: Expansion
Expansion # of Stores Sales Area # of Online Service Stores* (thousand sqm) 258 3,621 5.3% 329 1,422 3,363 1,930 2,032 1,093 356 new stores 2023 2024 2023 2024 2023 2024 *Indicates physical stores out of which online operations are carried out 5
Slide 6: CAPEX (TL million)
CAPEX (TL million) 7% CAPEX Breakdown 9,904 2024 9,252 with IAS 29 3.4% inflation 3.5% New accounting DCs New 16% Stores 24% 3% Subsidiaries 2023 2024 8% Solar 28% Energy 21% without IAS 29 63% 8,942 inflation Refurbishment of accounting 3.5% Stores & DCs 5,486 3.8% IT, R&D 2023 2024 6
Slide 7: Expanding Logistics Capacity
Expanding Logistics Capacity 16 new DCs reaching a total of 73 23% DCs space growth in 2024 30% efficiency increase 2024 in new DCs coverage area via route optimization Multi format (20) Meat (10) E-commerce Fulfillment (3) Wholesale (16) Hub (7) Seafood (2) Fruits & Vegetables (9) Frozen (5) Non-fo
Slide 8: Sustainable Energy Investments
Sustainable Energy Investments Kırşehir Solar Plant in Anatolia effective as of March 2025 y Sustainability rg I e nv Migros generates %10 of its En est total energy consumption ments from company-owned solar 34.4 plants MWp 1/3 of total energy consumption is expected to be generated from Migros’ ow
Slide 9: Consolidated Sales (TL million)
Consolidated Sales (TL million) 13.7% 12.1% 74,545 293,780 262,132 65,535 with IAS 29 inflation accounting 4Q 2023 4Q 2024 2023 2024 66.4% 77.6% 73,075 258,743 without IAS 29 inflation accounting 43,919 145,694 4Q 2023 4Q 2024 2023 2024 9
Slide 10: Migros L-f-L Growth Dynamics
Migros L-f-L Growth Dynamics without IAS 29 inflation accounting L-f-L Sales Growth (%) 85.8 70.9 67.9 57.6 Average Food Inflation (Turkish Statistical Institute) 2023 65.8 2024 56.9 4Q 2023 4Q 2024 2023 2024 L-f-L Basket L-f-L Customer Average Food Inflation (Turkish Statistical Institute) Size Gro
Slide 11: Gross Profit (TL million)
Gross Profit (TL million) 63% 39% 18,587 68,004 24.9% 23.1% 11,389 48,962 with IAS 29 inflation accounting 18.7% 17.4% 4Q 2023 4Q 2024 2023 2024 Imputed Interest Rate Impact 360 bps 570 bps 210 bps 510 bps Inventory inflation adj. Impact -650 bps -280 bps -500 bps -380 bps Gross Profit Margin exc. I
Slide 12: OPEX Evolution in 2024
OPEX Evolution in 2024 with IAS 29 inflation accounting 102 bps -1 bps 31 bps -43 bps -9 bps 1 bps 62,185 53,359 Margin Margin 21.2% 20.4% Rent & Depreciation & 2024 Opex 2023 Opex Staff Cost IT Energy Advertising Common Amortisation maintenance expenses expenses Personnel expenses, area expenses Po
Slide 13: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) 248% 15,796 5,082 with IAS 29 5.4% inflation accounting 6.8% 4Q 2023 4,537 -0.1% 4Q 2024 1.7% -58 2023 2024 151% 6,939 145% 23,817 without IAS 29 9.2% 9.5% inflation accounting 2,765 9,705 6.3% 6.7% 4Q 2023 4Q 2024 2023 2024 Imputed Interest Rate Impact 360 bps 570 b
Slide 14: Net Income (TL million)
Net Income (TL million) 12,858 -49% -37% with IAS 29 1,218 4.9% inflation accounting 1.9% 6,574 767 2.2% 1.0% 4Q 2023 4Q 2024 2023 2024 •170 bps less deferred tax income •70 bps more Monetary gain impact in 150 bps less Monetary gain impact in 4Q24 [240 bps] vs 4Q23 [170 bps] 2024 [230 bps] vs 2023
Slide 15: Net Cash (TL million)
Net Cash (TL million) Net Cash* Cash Conversion Cycle in Days 3.5 days with IAS 29 inflation 37% -40.5 21,337 -37.0 accounting Strong increase in 15,590 Net Cash position *w/o IFRS 16 Substantial decrease in inventory days focusing on supply chain efficiencies 2023 2024 2023 2024 15
Slide 16: Free Cash Flow (TL million)
Free Cash Flow (TL million) 23% 14,275 11,598 1,072 with IAS 29 inflation accounting 4Q 2023 4Q 2024 2023 2024 -2,576 418 121% 12,836 4Q 2023 without IAS 29 4Q 2024 inflation 5,801 accounting -1,844 2023 2024 16
Slide 17: Strategy Update
Online Operations & Strategy Update Strategy Update
Slide 18: Focus on core business
Focus on core business Supply Chain & Specialized Expansion Efficiency through Merchandising categories & tech & AI formats • Market share gain, • Stock days • Investing in self • 200 bps improved by 4 • Personal care check-outs, increase in days, stores 100 Mion, • 2024A: 376 stores modern FMCG • F
Slide 19: Migros One, online operations
Migros One, online operations without IAS 29 inflation accounting Gross Merchandise Value # of Orders (TL billion) (million) 85.3 99% 44.3 31% 65.2 22.2 2023 2024 2023 2024 19
Slide 20: Migros' Online Grocery
Migros’ Online Grocery without IAS 29 inflation accounting 19.5% Grocery GMV Grocery Merchandise # of Orders (TL billion) (million) 1,422 Online 90% service stores 23% 70.2 39.6 57.3 20.8 110 bps increase in operating profitability y-o-y 2023 2024 2023 2024 Migros Grocery Sales Online Grocery Sales
Slide 21: Migros Online Meal Business
Migros Online Meal Business without IAS 29 inflation accounting in 81 cities Meal Business Meal Business 36% (quarterly) Gross Merchandise Value # of Orders of Migros meal (TL billion) customers are the (million) first time visitors of 15.1 243% 93% the Migros grocery app 4.8 7.9 Breakeven before ma
Slide 22: Moneypay
Moneypay without IAS 29 inflation accounting Total Payment Volume Revenue (TL billion) (TL million) 464.3 324% 20.4 458% 4.8 83.2 2023 2024 2023 2024 Total Payment Volume Breakdown # of Transaction (million) 46.2 TL 20.4 bn 264% POS 5.4 bn Positive 14.3 bn Wallet (Card & QR) Net Income 0.7 bn 12.7 L
Slide 23: KPIs of Migros Digital Ecosystem
KPIs of Migros Digital Ecosystem without IAS 29 inflation accounting # of active users # of orders Gross Merchandise # of registered users # of transactions Total Payment (million) (million) Value (million) (million) Volume (TL billion) (TL billion) 13.1 22.0 11.6 3.1 10.3 3.5 17.0 3.0 3.0 3.0 21.0
Slide 24: Summary & Guidance
Online Operations & Summary & Guidance Strategy Update
Slide 25: 2024 Underlying Performance, Consolidated
2024 Underlying Performance,Consolidated with IAS 29 inflation accounting Net Sales Sales Growth EBITDA Margin Net Profit TL 293,780 12.1% 5.4% TL 6,574 in mn in mn without IAS 29 inflation accounting Net Sales Sales Growth EBITDA Margin Net Profit TL 258,743 78% 9.2% TL 5,908 in mn in mn 25
Slide 26: Subsidiaries in 2025E
Subsidiaries in 2025E without IAS 29 inflation accounting GMV Growth Meal Business GMV Growth TPV Growth 2025E 2025E 2025E x1.6 x2 x3.4 2024: x2 2024: x3.4 2024: x4.2 26
Slide 27: 2025 Migros Guidance, consolidated
2025 Migros Guidance, consolidated with IAS 29 inflation accounting Sales Growth EBITDA Margin Expansion Target Capex/Sales 2025E 2025E 2025E 2025E 8-10% ~6.0% ~250 2.5-3.0% new stores 2024: 12% 2024: 5.4% 2024: 356 2024: 3.4% 27
Slide 28: Appendix
Online Operations & Appendix Strategy Update
Slide 29: Migros at a Glance
Migros at a Glance TL 293.8 bn in Sales 2024 53,328 employees 3,621 stores as of 2024 +2,000 suppliers In BIST Sustainability Index for 11 years in a row 49.18% free float Included in BIST Corporate Governance Index since 2015 Subsidiaries Money Card 12.7 mn households 23.9 mn active cards 29
Slide 30: Store Portfolio: Physical & Online Network – 2024
Store Portfolio: Physical & Online Network –2024 Supermarkets Hypermarkets Macrocenter Wholesale Online* 3,239 54 199 29 1,422 40 sqm - 3,500 sqm 3,500 sqm – 8,500 sqm 250 sqm – 2,000 sqm 200 sqm – 1,600 sqm 2,000 SKU – 40,000 SKU # of Sales area stores (th sqm) Migros 2,053 1,417 (M, MM, MMM) Migro
Slide 31: Initiatives supporting Migros' Core Business
Initiatives supporting Migros' Core Business Online grocery Last-mile Fintech Packed Migros’ offline Charging & meal delivery financial ready-to-eat & online retail services for business solution solutions meal production media assets electric vehicles ▪ Active in 81 cities with ▪ 7,500+ riders ▪ E-
Slide 32: OPEX Evolution in 4Q
OPEX Evolution in 4Q with IAS 29 inflation accounting 60 bps -8 bps -22 bps -12 bps 47 bps 4 bps 16,440 14,000 Margin Margin 22.1% 21.4% 4Q 2023 Staff Cost Depreciation & IT Rent & Energy Advertising 4Q 2024 Opex Personnel expenses, Amortisation maintenance Common expenses expenses Opex Porterage, c
Slide 33: Inflation-accounting impact on EBITDA & Net Income in 2024
Inflation-accounting impact on EBITDA & Net Income in 2024 2,909 -10,931 99 bps 23,817 7,912 -14,989 380 bps 269 bps 510 10,931 bps 15,796 -9,978 340 380 Margin bps Margin bps 9.2% -1,695 5.4% 58 bps -1,403 48 bps 6,574 Margin 2.2% Inventory 2024 Depreciation Inventory Asset & Due date Financial 202
Slide 34: Inflation-accounting impact on EBITDA & Net Income in 4Q
Inflation-accounting impact on EBITDA & Net Income in 4Q -1,974 1,175 158 6,939 bps 265 bps 5,082 -2,935 1,407 -4,830 -351 bps 189 1,974 bps 394 bps 648 Margin 265 Margin bps bps 9.5% 6.8% Margin 4.4% -487 557 767 65 bps 75 bps 1.0% Inventory 4Q 2024 Depreciation Inventory Asset & Due date Financial
Slide 35: Total Equity & Total Financial Debt (TL million)
Total Equity & Total Financial Debt (TL million) Total Equity Total Financial Debt* 10% 2,915 -59% 57,682 52,343 with IAS 29 inflation accounting 1,208 2023 2024 2023 2024 *w/o IFRS 16 60% 18,580 2,019 -40% 11,632 without IAS 29 1,208 inflation accounting 2023 2024 2023 2024 *w/o IFRS 16 35
Slide 36: IAS 29 Consolidated Income Statement Summary – 2024
IAS 29 Consolidated Income Statement Summary –2024 (TL million) 2023 2024 Net Sales 262,132 293,780 Cost of Sales -213,170 -225,581 Gross Profit 48,962 68,004 Operating Expenses -53,359 -62,185 Other Operating Expense -5,241 -15,294 Operating Loss -9,638 -9,475 Income / Expense from Investment Activ
Slide 37: IAS 29 Consolidated Balance Sheet Summary – 2024
IAS 29 Consolidated Balance Sheet Summary – 2024 (TL million) 2023 2024 Current Assets 54,685 57,694 Non-current Assets 78,331 92,365 Total Assets 133,016 150,059 Current Liabilities 64,820 71,014 Non-current Liabilities 15,853 21,363 Total Liabilities 80,672 92,377 Equity 52,343 57,682 Total Liabil
Slide 38: IAS 29 Cash Flow - 2024
IAS 29 Cash Flow- 2024 (TL million) 2023 2024 Net profit 12,858 6,574 Adjustments related to reconciliation of net profit for the period 19,635 29,433 Changes in net working capital 391 8,719 Cash flows from operating activities 32,884 44,726 Net cash provided by operating activities 22,187 27,044 C
Slide 39: IAS 29 Impact on Financials
IAS 29 Impact on Financials with IAS 29 without IAS 29 inflation accounting inflation accounting (TL million) 2023 2024 2023 2024 Selected Balance Sheet Items Total Assets 133,016 150,059 65,267 107,585 Total Liabilities 80,672 92,377 53,635 89,004 Total Equity 52,343 57,682 11,632 18,580 Selected I
Slide 40: Ownership Structure
Ownership Structure Direct Shareholding Structure Indirect Shareholding Structure AG Anadolu Grubu AG Anadolu Grubu Free Float Holding A.Ş. Holding A.Ş. 50.00% 100.00% 50.00% MH Perakendecilik ve Free Float Migros Ticaret A.Ş.* Migros Ticaret A.Ş. Ticaret A.Ş. 49.18% 1.64% 49.18% Migros Ticaret A.Ş.
Slide 41: Sustainability
Online Operations & Sustainability Strategy Update
Slide 42: Sustainability Targets
Sustainability Targets Reducing Greenhouse Gas Emission 42% 50% Reducing Food Waste by 2030 year-end (base year 2020) by 2030 year-end (base year 2018) by 2026 year-end (base year 2018) Increasing 27-33% 10% Reducing Women Participation in Top Management Water Consumption by 2030 year-end (base year
Slide 43: Migros Better Future Plan
Migros Better Future Plan ECOSYSTEM SUSTAINABILITY THROUGH TRANSPARENT, RESPONSIBLE, ETHICAL GOVERNANCE To adopt the governance practices that are rightful for all stakeholders through our value-focused business model and integrated thinking system. To create shared value for all by integrating our
Slide 44: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Preventing Food Waste Reducing Plastic Waste Prevented food loss with Expiry Date discounts* Bag-Free Shopping Movement* 16,643 tons of food 2,018,247 eco friendly reusable bags Food Donation 24,265 tons of food Good Agricultural Practices (GAP) GAP certi