Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q3 2024 Earnings Presentation
39 slides from Migros Ticaret A.s's earnings presentation, 2024
Slide 1: Company Presentation 3Q 2024
Omni-channel retailer, evolving beyond trade Company Presentation 3Q 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: Market Share Evolution
Market Share Evolution Migros FMCG Market Share* Growth Focus (%) Omni channel & Multi format +60 bps 16.3 16.9 Further +40 bps penetration in rural 9.4 9.8 Market districts Share Gain Price Investments 9M 2023 9M 2024 9M 2023 9M 2024 Total FMCG Modern FMCG Source: Nielsen 4 Note: FMCG: Fast Moving
Slide 5: Expansion
Expansion # of Stores Sales Area # of Online Service Stores (thousand sqm) 345 236 1,289 3,550 5.7% 3,205 1,897 2,005 1,053 271 196 new new stores stores 9M 2023 9M 2024 9M 2023 9M 2024 9M 2023 9M 2024 5
Slide 6: CAPEX (TL million)
CAPEX (TL million) 8% CAPEX Breakdown 6,072 9M 2024 5,596 with IAS 29 2.9% inflation 3.0% accounting New Stores 19% New DCs 33% 4% Subsidiaries 9M 2023 9M 2024 18% 75% 5,273 26% without IAS 29 inflation accounting 2.8% 3,014 Refurbishment of IT, R&D, Energy Stores & DCs 3.0% 9M 2023 9M 2024 6
Slide 7: Expanding Logistics Capacity
Expanding Logistics Capacity 9 new DCs YTD reaching a total of 65 DCs 17% space growth in DCs capacity in 9 months Multi format (19) Meat (8) E-commerce Fulfillment (2) Wholesale (15) Hub (7) Seafood (2) Fruits & Vegetables (9) Frozen (2) Non-food (1) (White Goods) 7
Slide 8: Consolidated Sales (TL million)
Consolidated Sales (TL million) 12% 12% 74,487 206,300 66,322 184,998 with IAS 29 inflation accounting 3Q 2023 3Q 2024 9M 2023 9M 2024 73% 82% 72,232 185,668 without IAS 29 inflation accounting 41,688 101,775 3Q 2023 3Q 2024 9M 2023 9M 2024 8
Slide 9: Gross Profit (TL million)
Gross Profit (TL million) 53% 32% 17,963 46,501 24.1% 35,357 22.5% 11,739 with IAS 29 19.1% inflation accounting 17.7% 3Q 2023 3Q 2024 9M 2023 9M 2024 Imputed Interest Rate Impact 210 bps 500 bps 160 bps 480 bps Inventory inflation adj. Impact -620 bps -300 bps -450 bps -420 bps Gross Profit Margin
Slide 10: OPEX Evolution in 3Q
OPEX Evolution in 3Q 5 bps -30 bps 3 bps -20 bps -33 bps 0 bps 14,542 29 bps 13,257 Margin Margin 19.5% 20.0% 3Q 2023 Personnel Rent & Energy Porterage, Advertising Depreciation & IT 3Q 2024 Opex expenses Common expenses cleaning & expenses Amortisation maintenance Opex area security expenses & Othe
Slide 11: Consolidated EBITDA (TL million)
Consolidated EBITDA (TL million) 693% 133% 5,685 10,081 with IAS 29 7.6% inflation accounting 4.9% 717 4,323 1.1% 2.3% 3Q 2023 3Q 2024 9M 2023 9M 2024 153% 143% 16,878 7,630 without IAS 29 inflation accounting 9.1% 3,015 10.6% 6,940 7.2% 6.8% 3Q 2023 3Q 2024 9M 2023 9M 2024 Imputed Interest Rate Imp
Slide 12: Net Income (TL million)
Net Income (TL million) 5,060 -35% -50% 7.6% 3,308 10,953 450 bps less with IAS 29 Monetary gain impact in inflation accounting 3Q24 [200 bps] vs 4.4% 5.9% 3Q23 [650 bps] 5,464 230 bps less 2.6% Monetary gain impact in 9M24 [220 bps] vs 9M23 [450 bps] 3Q 2023 3Q 2024 9M 2023 9M 2024 52% 3,322 15% 4,
Slide 13: Total Equity & Total Financial Debt (TL million)
Total Equity & Total Financial Debt (TL million) Total Equity Total Financial Debt* 15% 54,435 4,015 -61% 47,307 with IAS 29 inflation accounting 1,585 9M 2023 9M 2024 9M 2023 9M 2024 *w/o IFRS 16 107% 2,707 -41% 16,955 without IAS 29 1,585 inflation accounting 8,206 9M 2023 9M 2024 9M 2023 9M 2024
Slide 14: Net Cash (TL million)
Net Cash (TL million) Net Cash* Cash Conversion Cycle in Days with IAS 29 18% -37.9 inflation -36.3 21,325 accounting 18,084 *w/o IFRS 16 9M 2023 9M 2024 9M 2023 9M 2024 14
Slide 15: Free Cash Flow (TL million)
Free Cash Flow (TL million) 48% 6,612 -1% 13,337 13,173 4,480 with IAS 29 inflation accounting 3Q 2023 3Q 2024 9M 2023 9M 2024 62% 138% 6,384 12,408 without IAS 29 7,645 2,682 inflation accounting 3Q 2023 3Q 2024 9M 2023 9M 2024 15
Slide 16: Strategy Update
Online Operations & Strategy Update Strategy Update
Slide 17: Migros One
Online Business Share Migros One in Sales in 1Q 2024 (w/o tobacco & alcohol) without IAS 29 inflation accounting 19.5% 31.3 TL billion 63.3 million Online business share GMV # of orders 18.2% exc. tobacco & alcohol +110% +36% 9M y-o-y growth (3Q’23: 16.4%) 9M y-o-y growth Quarterly active customers
Slide 18: Moneypay
Online Business Share Moneypay in Sales in 1Q 2024 (w/o tobacco & alcohol) without IAS 29 inflation accounting 19.5% 12.4 TL billion 29.2 million TPV # of transaction 3.2 million +322% +321% # of registered users 9M y-o-y growth 9M y-o-y growth Money Loyalty Buy Now Pay Later App Rating Program Pay
Slide 19: 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) 3.0 3.0 3.0 21.0 21.0 21.3 11.6 10.3 2.7 18.8 9.3
Slide 20: Summary & Guidance
Online Operations & Summary & Guidance Strategy Update
Slide 21: 9M 2024 Underlying Performance
9M 2024 Underlying Performance with IAS 29 inflation accounting without IAS 29 inflation accounting Net Sales Sales Growth Net Sales Sales Growth EBITDA EBITDA Margin Net Profit Margin Net Profit 21
Slide 22: 2024 Guidance Updated
2024 Guidance Updated Sales Growth EBITDA Margin Expansion Target 2024E 2024E 2024E with IAS 29 inflation accounting New stores 10-12% ~5.0% ~350 from ~10% from 4.5-5.0% maintained without IAS 29 inflation accounting CAPEX 76-78% ~9.0% TL ~8.0 billion from ~75% from 8.0-8.5% maintained 22
Slide 23: Appendix
Online Operations & Appendix Strategy Update
Slide 24: Migros at a Glance
Migros at a Glance TL 206.3 bn Sales 9M 2024 53,952 employees 3,550 stores as of 9M 2024 +2,000 suppliers In BIST Sustainability Index for 10 years in a row 49.18% free float Included in BIST Corporate Governance Index since 2015 Subsidiaries Money Card 12.2 mn households 22.5 mn active cards 24
Slide 25: Migros' Subsidiaries
Migros’ Subsidiaries 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 ▪ 6,700+ riders ▪ E-wallet, BNPL, B2C, ▪ Rea
Slide 26: Migros One
Online Business Share Migros One in Sales in 1Q 2024 (w/o tobacco & alcohol) without IAS 29 inflation accounting 19.5% Leader in the Turkish e-grocery market Gross Merchandise Value (TL billion) 31.3 110% Fastest growing player in meal verticals Scheduled delivery: Targeting to match the Group avera
Slide 27: MoneyPay
MoneyPay without IAS 29 inflation accounting Consumer (B2C) Total Payment Volume Pay with e-wallet, (TL billion) Pay with QR & Card 12.4 at all Migros online & stores 322% Money Loyalty Program Integrated Payment Solutions in one App Buy Now Pay Later Pay with integrated Bank Credit 2.9 Value Added
Slide 28: Store Portfolio: Physical & Online Network – 9M 2024
Store Portfolio: Physical & Online Network – 9M 2024 Supermarkets Hypermarkets Macrocenter Wholesale Online 3,186 54 186 30 1,289 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 2,010 1,398 (M, MM, MMM) Mi
Slide 29: IAS 29 Consolidated Income Statement Summary – 9M 2024
IAS 29 Consolidated Income Statement Summary – 9M 2024 (TL million) 9M 2023 9M 2024 Net Sales 184,998 206,300 Cost of Sales -149,641 -159,798 Gross Profit 35,357 46,501 Operating Expenses -37,036 -43,047 Other Operating Expense -2,805 -10,172 Operating Loss -4,484 -6,717 Income / Expense from Invest
Slide 30: IAS 29 Consolidated Balance Sheet Summary – 9M 2024
IAS 29 Consolidated Balance Sheet Summary – 9M 2024 (TL million) 2023 9M 2024 Current Assets 51,458 51,809 Non-current Assets 73,709 83,364 Total Assets 125,167 135,173 Current Liabilities 60,995 61,696 Non-current Liabilities 14,917 19,042 Total Liabilities 75,912 80,738 Equity 49,255 54,435 Total
Slide 31: IAS 29 Cash Flow - 9M 2024
IAS 29 Cash Flow- 9M 2024 (TL million) 9M 2023 9M 2024 Net profit 10,953 5,464 Adjustments related to reconciliation of net profit for the period 12,651 16,543 Changes in net working capital 1,428 7,366 Cash flows from operating activities 25,032 29,374 Net cash provided by operating activities 18,2
Slide 32: IAS 29 Impact on Financials
IAS 29 Impact on Financials with IAS 29 without IAS 29 inflation accounting inflation accounting (TL million) 9M 2023 9M 2024 9M 2023 9M 2024 Selected Balance Sheet Items Total Assets 123,835 135,173 56,330 93,308 Total Liabilities 76,528 80,738 48,124 76,355 Total Equity 47,307 54,435 8,206 12,302
Slide 33: Inflation-accounting impact on EBITDA & Net Income in 3Q
Inflation-accounting impact on EBITDA & Net Income in 3Q 7,630 229 -2,174 1,924 -3,295 5,685 -2,263 2,174 -351 bps 165 bps 211 -1,128 -549 bps 3,308 Margin Margin 10.6% -315 bps 351 bps 7.6% Margin 4.4% -86 bps Inventory 3Q 2024 Depreciation Inventory Asset & Due date Financial 3Q 2024 3Q 2024 P&L T
Slide 34: 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 35: Sustainability
Online Operations & Sustainability Strategy Update
Slide 36: 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 Management Water Consumption by 2030 year-end (base year 202
Slide 37: Energy Sustainability Investments
Energy Sustainability Investments Rooftop solar panels installations y Sustainability Hedging volatile rg I e nv En energy cost in Opex est via greenfield ments investments 1/3 of total energy consumption is expected to be generated from Izmir MİGET meat production facility Migros’ owned solar plant
Slide 38: 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 39: Waste Management & Biodiversity Conservation
Waste Management & Biodiversity Conservation Preventing Food Waste* Reducing Plastic Waste* Prevented food loss with Expiry Date discounts: 8,565 tons of food Business Plastic Initiative (IPG) 512 tons less plastic Food Donation: 11 million meals Good Agricultural Practices (GAP) GAP certified F&V: