Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2025 Earnings Presentation
34 slides from Migros Ticaret A.s's earnings presentation, 2025
Slide 1: Company Presentation 1Q 2025
Omni-channel, multi format retailer Company Presentation 1Q 2025
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 Summary & Guidance Appendix 3
Slide 4: Improving Market Share
Improving Market Share Migros FMCG Market Share Omni channel & (%) Multi format +50 bps +20 bps 15.6 15.8 16.3 Expanding +10 bps +70 bps footprint 9.4 9.5 10.2 Market penetration Share Gain Providing the best 1Q 1Q 1Q 1Q 1Q 1Q value to 2023 2024 2025 2023 2024 2025 customers Total FMCG Modern FMCG S
Slide 5: 5% Sales Area Expansion
5% Sales Area Expansion # of Stores Sales Area # of Online Service Stores* (thousand sqm) 256 315 1,452 3,642 5.0% 2,043 3,386 1,946 1,137 56 new stores 1Q 2024 1Q 2025 1Q 2024 1Q 2025 1Q 2024 1Q 2025 11 stores were closed in İstanbul region due to earthquake concerns *Indicates physical stores out
Slide 6: Strong L-f-L Sales Growth
Strong L-f-L Sales Growth without IAS 29 inflation accounting L-f-L Sales Growth (%) 76.4 79.6 48,1%* 63.8 57.6 46.4 Average Food Inflation 1Q 2024 2Q 2024 3Q 2024 4Q 2024 1Q 2025 (Turkish Statistical Institute) L-f-L Basket L-f-L Customer 1Q 2025 37.9 Size Growth (%) Traffic Growth (%) 67.5 71.0 5.
Slide 7: Migros' Online Grocery, Reaching out More Customers
Migros’ Online Grocery, Reaching out More Customers Inflation (CPI) adjusted Grocery GMV Grocery Merchandise # of Orders (TL billion) (million) 16% 14.0 New vertical: Petimo, 7% 18.0 online channel for pet 16.8 12.1 food and accessories, ~2,000 SKUs 250 bps increase in online grocery operating profi
Slide 8: Online Meal Business, a Gateway to Younger Demographic
Online Meal Business, a Gateway to Younger Demographic Inflation (CPI) adjusted in 81 cities Meal Business Meal Business Gross Merchandise Value # of Orders (TL billion) (million) Around 1/3 of 4.2 59% 1.8 shoppers of Migros 17% meal customers are 3.6 the first time visitors of the Migros app 1.1 1Q
Slide 9: Strong Growth in Moneypay Supporting Migros Ecosystem
Strong Growth in Moneypay Supporting Migros Ecosystem Inflation (CPI) adjusted Total Payment Volume Revenue (TL billion) (TL million) 11.4 264.6 186% 161% 3.7 million # of users 4.0 101.4 1Q 2024 1Q 2025 1Q 2024 1Q 2025 Total Payment Volume Breakdown # of Transaction (million) 191% 20.4 POS 5.1 bn 6
Slide 10: Capex Balances Growth and Efficiency Gains (TL million)
Capex Balances Growth and Efficiency Gains (TL million) 2,438 -35% with IAS 29 inflation 3.4% accounting 1,587 CAPEX Breakdown 2.0% New New 30 bps efficiency gain, Stores DCs [annualized] driven by following investments 15% 14% Solar 1% Self check-outs: 1Q 2024 1Q 2025 Energy 7% Subsidiaries 2024 :
Slide 11: Consolidated Sales & Gross Profit (TL million)
Consolidated Sales & Gross Profit (TL million) Sales Gross Profit 8.5% 19,017 78,437 30% 72,318 with IAS 29 14,629 24.2% inflation accounting 20.2% 1Q 2024 1Q 2025 1Q 2024 1Q 2025 Imputed Interest Rate Impact 390 bps 470 bps Calendar-adjusted yearly growth rate of 9.7% excluding 1 additional day in
Slide 12: Employee Cost Putting Pressure on Opex in 1Q 2025
Employee Cost Putting Pressure on Opex in 1Q 2025 with IAS 29 inflation accounting 53 bps 43 bps 1 bps 1 bps -13 bps 19 bps 18,484 16,293 Margin Margin 23.6% Increase in depreciation is driven 22.5% by rental contracts (IFRS 16) & increase in CAPEX in FY2024 Inflationary pressure on opex is expected
Slide 13: Consolidated EBITDA & Net Profit (TL million)
Consolidated EBITDA & Net Profit (TL million) EBITDA Net Profit with IAS 29 327% 3,687 inflation accounting 1,748 -41% 4.7% 2.4% 1,032 864 1.3% 1.2% 1Q 2024 1Q 2025 1Q 2024 1Q 2025 60 bps decrease in EBITDA exc. IAS 29 impact 50 bps increase in depreciation exp. 55% -86% 5,777 597 without IAS 29 inf
Slide 14: Net Cash & Free Cash Flow (TL million)
Net Cash & Free Cash Flow (TL million) with IAS 29 inflation accounting Net Cash* Free Cash Flow Cash Conversion Cycle in Days -36.0 6% 18,383 2 days 17,285 2,714 -34.2 1Q 2025 1Q 2024 -3,225 1Q 2024 1Q 2025 1Q 2024 1Q 2025 *w/o IFRS 16 Decrease in FCF driven by; . Calendar impact of VAT receivables
Slide 15: Summary & Guidance
Online Operations & Summary & Guidance Strategy Update
Slide 16: 1Q 2025 Underlying Performance, Consolidated
1Q 2025 Underlying Performance, Consolidated with IAS 29 inflation accounting Net Sales Sales Growth EBITDA Margin Net Profit TL 78,437 8.5% 4.7% TL 1,032 in mn in mn 16
Slide 17: 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% 17
Slide 18: Appendix
Online Operations & Appendix Strategy Update
Slide 19: Migros at a Glance
Migros at a Glance TL 78.4 bn in Sales 1Q 2025 53,748 employees 3,642 stores as of 1Q 2025 +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 13.1 mn households 24.8 mn active cards 19
Slide 20: Store Portfolio: Physical & Online Network – 1Q 2025
Store Portfolio: Physical & Online Network – 1Q 2025 Supermarkets Hypermarkets Macrocenter Wholesale Online* 3,252 54 205 29 1,452 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 2,076 1,427 (M, MM, MMM) M
Slide 21: Initiatives Supporting Growth in Migros Ecosystem
Initiatives Supporting Growth in Migros Ecosystem 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
Slide 22: 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) 15.4 22.2 12.9 3.7 11.5 3.5 11.2 3.2 21.5 10.2 3.2
Slide 23: Inflation-accounting impact on EBITDA & Net Income in 1Q
Inflation-accounting impact on EBITDA & Net Income in 1Q 3,687 -3,574 118 -2,208 5,777 280 470 460 bps bps bps 3,687 -3,153 Margin 2,208 -802 7.5% 400 Margin 100 bps -1,021 bps 280 4.7% bps 130 bps 1,032 1.3% Inventory 1Q 2025 Depreciation Inventory Asset & Due date Financial 1Q 2025 1Q 2025 P&L Tax
Slide 24: Total Equity & Total Financial Debt (TL million)
Total Equity & Total Financial Debt (TL million) Total Equity Total Financial Debt* 9% 64,443 2,182 -51% 59,121 with IAS 29 inflation accounting 1,071 1Q 2024 1Q 2025 1Q 2024 1Q 2025 *w/o IFRS 16 53% 18,881 -32% 1,580 12,315 without IAS 29 1,071 inflation accounting 1Q 2024 1Q 2025 1Q 2024 1Q 2025 *
Slide 25: Sustainable Energy Investments
Sustainable Energy Investments Kırşehir Solar Plant in Anatolia with around 4 years payback expectation, effective as of March 2025 New solar plants are in the pipeline this year y Sustainability rg I e nv En est ments Migros generates 34.4 %10 of its total MWp energy consumption from company-owned
Slide 26: IAS 29 Consolidated Income Statement Summary –1Q 2025
IAS 29 Consolidated Income Statement Summary –1Q 2025 (TL million) 1Q 2024 1Q 2025 Net Sales 72,318 78,437 Cost of Sales -57,689 -59,419 Gross Profit 14,629 19,017 Operating Expenses -16,293 -18,484 Other Operating Expense -2,867 -3,566 Operating Loss -4,530 -3,033 Income / Expense from Investment A
Slide 27: IAS 29 Consolidated Balance Sheet Summary – 1Q 2025
IAS 29 Consolidated Balance Sheet Summary – 1Q 2025 (TL million) 2024 1Q 2025 Current Assets 63,500 57,114 Non-current Assets 101,660 105,291 Total Assets 165,159 162,405 Current Liabilities 78,160 71,665 Non-current Liabilities 23,513 26,297 Total Liabilities 101,673 97,962 Equity 63,487 64,443 Tot
Slide 28: IAS 29 Cash Flow - 1Q 2025
IAS 29 Cash Flow- 1Q 2025 (TL million) 1Q 2024 1Q 2025 Net profit 1,748 1,032 Adjustments related to reconciliation of net profit for the period 6,299 8,376 Changes in net working capital 2,458 -5,450 Cash flows from operating activities 10,506 3,957 Net cash provided by operating activities 6,575 -
Slide 29: IAS 29 Impact on Financials
IAS 29 Impact on Financials with IAS 29 without IAS 29 inflation accounting inflation accounting (TL million) 1Q 2024 1Q 2025 1Q 2024 1Q 2025 Selected Balance Sheet Items Total Assets 145,692 162,405 71,818 112,216 Total Liabilities 86,571 97,962 59,504 93,335 Total Equity 59,121 64,443 12,315 18,88
Slide 30: 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 31: Sustainability
Online Operations & Sustainability Strategy Update
Slide 32: 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 33: Migros Better Future Plan
Migros Better Future Plan ECOSYSTEM SUSTAINABILITY THROUGH TRANSPARENT, RESPONSIBLE, ETHICAL GOVERNANCE A Better Future A Better Future through Transformative A Better Future for Our Customers A Better Future for for Our Planet A and Stakeholders Our Employees - Innovation EXTENSIVE Goop AND COMBAT
Slide 34: 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