Turkish retailer Migros Ticaret has booked an increase in first-half profits after "strong" same-store sales.
In the six months to the end of June, EBITDA totalled TRY196m (US$107.1m), a 10% increase on the prior-year period. Gross profit amounted to TRY799m, a 15.2% increase on last year.
Migros grew net sales by 13.9% to TRY3.01bn. Top-line growth was buoyed by "strong" same store sales, the retailer said, and 108 new store openings, Migros said.
"The group remains committed to delivering double-digit turnover growth and stable operating profitability going forward," the company said. "The combination of the accelerated store opening programme, Migros' strong brand and the group's focus on increasing market share through catalysts such as investment in private label pricing, is expected to continue to drive sales performance."
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Sales
Q2 2012 : TL 1,552 million (+13.4% on Q2 2011)
H1 2012 : TL 3,007 million (+13.9% on H1 2011)
Gross Profit
Q2 2012 : TL 414 million (+15.9% on Q2 2011)
H1 2012 : TL 799 million (+15.2% on H1 2011)
EBITDA
Q2 2012 : TL 97 million (+9.1% on Q2 2011)
H1 2012 : TL 196 million (+10.0% on H1 2011)
Focus remains on growing Migros' core Supermarket business
Total store numbers increased by 108 to 840 in 1H2012
Group sales grew by 13.9% to TL 3 billion in the first half of 2012. Top line growth was buoyed by strong same store sales and the new store openings, 108 stores were opened during the period including 105 supermarkets, 2 hypermarkets and 1 Ramstore. Sales in International Operations increased by 20.8% to TL 189 million.
Gross profit in the first half of the year increased by 15.2% to TL 799 million, representing a gross margin of 26.6% (26.3% in H1 2011). The improved gross margin was achieved despite Migros' continued focus on investing in private labels and fresh products pricing, which is reaping benefits in terms of driving top line growth.
EBITDA in H1 2012 increased by 10.0% year-on-year to TL 196 million, representing an EBITDA margin of 6.5%.
Migros' strategy remains firmly focused on driving growth through new store openings, particularly in the Group's core supermarket business, which accounts for 86% of the Group's domestic sales area. Significant scope exists to leverage the strong Migros brand and drive market share gains through increased penetration of existing locations combined with expansion into new cities. At the end of the first half of 2012, Migros was ahead of its store opening plan with the result that it has revisited this programme and increased the targeted full year number of store openings from 100 to 150.
The Group remains committed to delivering double digit turnover growth and stable operating profitability going forward. The combination of the accelerated store opening programme, Migros' strong brand and the Group's focus on increasing market share through catalysts such as investment in private label pricing, is expected to continue to drive sales performance.
Migros Ticaret A.S.
Original source: Migros Turk
