Migros Ticaret A.s. · BIST:MGROS
Migros Ticaret A.s — Q1 2024 Earnings Presentation
32 slides from Migros Ticaret A.s's earnings presentation, 2024
Slide 1: Company Presentation 1Q 2024
Omni-channel retailer, evolving beyond trade Company Presentation 1Q 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 Growth Focus Market Share* (%) Omni channel & Multi format 15.7 15.7 Further +10 bps penetration 9.4 9.5 in rural Market districts Share Gain Price 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Investments Total FMCG Modern FMCG *Note: Migros’ market share is maintained in organ
Slide 5: Physical & Online Expansion
Physical & Online Expansion # of Stores Sales Area Online Service Stores (k sqm) 396 6.8% 169 3,387 1,946 2,991 1,137 1,822 73 new 968 44 new stores stores 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 5
Slide 6: CAPEX (TL million)
CAPEX (TL million) % of Sales 1.8% 3.4% 107% with IAS 29 1,765 inflation accounting Increase in CAPEX is mainly 853 due to DC investments 1Q 2023 1Q 2024 1.8% 3.3% 253% 1,711 without IAS 29 inflation accounting 485 6 1Q 2023 1Q 2024
Slide 7: Consolidated Sales & Gross Profit (TL million)
Consolidated Sales & Gross Profit (TL million) Sales 19.8% Gross Profit 20.4% 12% 15% 52,406 9,302 10,665 with IAS 29 inflation accounting 46,976 1Q 2023 1Q 2024 1Q 2023 1Q 2024 Imputed Interest Rate Impact 130 bps 390 bps Inventory inflation adj. Impact -430 bps -610 bps without IAS 29 24.1% 26.3%
Slide 8: Consolidated EBITDA & Net Income (TL million)
Consolidated EBITDA & Net Income (TL million) 2.2% EBITDA 1.2% 5.1% Net Income 2.4% 190 bps hit due to ~100% -37% (nominal) increase of min. 2,410 -47% wage y-o-y with IAS 29 1,035 inflation accounting 653 80 bps favorable impact 1,266 (net of + imputed interest rate impact - IAS 29) 1Q 2023 1Q 2024
Slide 9: Inflation-accounting impact on EBITDA & Net Income
Inflation-accounting impact on EBITDA & Net Income 2,576 -2,080 3,764 103 -3,213 490 bps -400 bps -610 bps -648 3,213 -120 bps -614 Margin -120 bps 7.3% 1,266 653 -1,834 Margin 610 bps Margin 2.4% 1.2% -350 bps Inventory 1Q 2024 Depreciation Inventory Asset & Due date Financial Tax Net Income 1Q 202
Slide 10: Total Equity & Total Financial Debt (TL million)
Total Equity & Total Financial Debt (TL million) Total Equity Total Financial Debt* 26% -62% 42,809 4,178 with IAS 29 34,042 inflation accounting 1,580 1Q 2023 1Q 2024 1Q 2023 1Q 2024 *w/o IFRS 16 160% 2,480 -36% 12,315 1,580 without IAS 29 4,742 inflation accounting 1Q 2023 1Q 2024 1Q 2023 1Q 2024
Slide 11: Net Cash & Free Cash Flow (TL million)
Net Cash & Free Cash Flow (TL million) Net Cash* Free Cash Flow 31% 68% 12,516 2,290 VAT impact of TL 1.7 bn in 1Q 2024 with IAS 29 9,583 inflation accounting 1,363 107% real increase in CAPEX in 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 *w/o IFRS 16 120% 196% 12,516 2,477 5,687 without IAS 29 836 inf
Slide 12: Strategy Update
Online Operations & Strategy Update Strategy Update
Slide 13: 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 ▪ 6,200+ riders ▪ E-wallet, BNPL, B2C, ▪ Rea
Slide 14: Migros One
Online Business Share Migros One in Sales in 1Q 2024 (w/o tobacco & alcohol) without IAS 29 inflation accounting 19.5% Product type Gross Merchandise Value (TL billion) Ready meals / no 124% 9.3 cooking 4.2 Groceries & NF/ home cooking +Next day Same day Same hour Delivery Ultra fast Genel Time 1Q 2
Slide 15: MoneyPay
MoneyPay without IAS 29 inflation accounting Consumer (B2C) Total Payment Volume Pay with e-wallet, (TL billion) Pay with QR & Card 235% at all Migros online & stores 2.8 Money Loyalty Program Integrated Payment Solutions in one App 0.8 Buy Now Pay Later Pay with integrated Bank Credit Value Added S
Slide 16: KPIs of Migros Digital Ecosystem
KPIs of Migros Digital Ecosystem without IAS 29 inflation accounting Gross Merchandise # of registered Total Payment # of active users # of orders # of transactions Volume Value (million) (million) (TL billion) users (million) (million) (TL billion) 21.0 9.3 3.0 2.7 18.8 7.3 2.3 2.4 17.1 7.9 2.8 2.2
Slide 17: Summary & Guidance
Online Operations & Summary & Guidance Strategy Update
Slide 18: 1Q 2024 Underlying Performance
1Q 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 18
Slide 19: 2024 Guidance Maintained
2024 Guidance Maintained Sales Growth EBITDA Margin 2024E 2024E with IAS 29 Expansion Target inflation accounting 2024E High Margin single digit improvement New CAPEX stores 2023: 29% 2023: 1.8% 250+ TL ~8.5 billion without IAS 29 inflation accounting 250+ new stores Upside potential +70%* 7.5-8.0%*
Slide 20: Appendix
Online Operations & Appendix Strategy Update
Slide 21: Migros at a Glance
Migros at a Glance TL 52.4 bn Sales 1Q 2024 52,108 employees 3,387 stores as of 1Q 2024 +2,000 suppliers In BIST Sustainability Index for 10 years in a row %49.18 free float Included BIST Corporate Governance Index since 2015 Subsidiaries Money Card 11.7 mn households 18.9 mn active cards 21
Slide 22: Store Portfolio: Physical & Online Network – 1Q 2024
Store Portfolio: Physical & Online Network – 1Q 2024 Supermarkets Hypermarkets Macrocenter Wholesale Online 3,064 55 162 29 1,137 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 (th sqm) stores Migros 1,913 1,353 (M, MM,MMM) Mig
Slide 23: IAS 29 Consolidated Income Statement Summary – 1Q 2024
IAS 29 Consolidated Income Statement Summary – 1Q 2024 (TL million) 1Q 2024 1Q 2023 Net Sales 52,406 46,976 Cost of Sales -41,742 -37,674 Gross Profit 10,665 9,302 Operating Expenses -11,845 -9,806 Other Operating Expense -2,076 -689 Operating Loss -3,256 -1,193 Income / Expense from Investment Acti
Slide 24: IAS 29 Consolidated Balance Sheet Summary – 1Q 2024
IAS 29 Consolidated Balance Sheet Summary – 1Q 2024 (TL million) 1Q 2024 2023 Current Assets 40,035 43,581 Non-current Assets 65,459 62,426 Total Assets 105,495 106,008 Current Liabilities 48,768 51,659 Non-current Liabilities 13,918 12,634 Total Liabilities 62,686 64,292 Equity 42,809 41,715 Total
Slide 25: IAS 29 Cash Flow - 1Q 2024
IAS 29 Cash Flow- 1Q 2024 (TL million) 1Q 2024 1Q 2023 Net profit 1,266 2,410 Adjustments related to reconciliation of net profit for the period 3,850 2,866 Changes in net working capital 1,780 -2,199 Cash flows from operating activities 6,896 3,077 Net cash provided by operating activities 4,049 2,
Slide 26: 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 2023 1Q 2024 1Q 2023 Selected Balance Sheet Items Total Assets 105,495 97,607 71,818 40,344 Total Liabilities 62,686 63,565 59,504 35,602 Total Equity 42,809 34,042 12,315 4,742 S
Slide 27: 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 28: Sustainability
Online Operations & Sustainability Strategy Update
Slide 29: Sustainability Targets
Sustainability Targets Reducing Greenhouse Gas Emission 42% 50% Reducing Food Waste by 2030 (base year 2020) by 2030 (base year 2018) by 2026 (base year 2018) Increasing 27-33% 10% Reducing Women Participation in Management Water Consumption by 2030 (base year 2023) 29
Slide 30: Energy Sustainability Investments
Energy Sustainability Investments Rooftop solar panels installed at 4 DC’s 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 from Migros’ Izmir MİGET meat production facility owned solar plants in
Slide 31: 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 32: 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: