Page 96 - TURKRptOct19

● Migros
Migros’ net loss declined by 49% y/y to TRY151mn in Q2 while revenues rose by 28% y/y to TRY5.8bn. In H1, the company posted a turnover of TRY10.7bn and a net loss of TRY381mn. Migros’ gross debt stood at €460mn at end-July and FX-denominated debt is the main reason behind net losses.
Migros revised up its turnover growth target for 2019 to 23-25% from a previous 20% and its EBITDA margin target to 6-6.5% from a previous 6%. The company targets to open 100 new stores in total this year.
● Others
German consumer electronics retailer MediaMkt on August 30 opened two new stores in Istanbul. It now has 23 outlets in Turkey’s biggest and wealthiest city.
The retailer overall operates a network of 76 stores across 27 provinces.
Since 2018, MediaMarkt has opened 23 new stores in Turkey to reach 180,000 square metres of floor space.
More than 150mn Turkish shoppers visit the company’s stores each year.
In an interview in April this year, Yenal Gokyildirim, chairman of MediaMarkt Turkey’s executive board, said the company was targeting 80 stores by the end of 2019.
He also noted that the Turkish consumer electronics market grew 16% from the previous year to reach a size of Turkish lira (TRY) 54bn in 2018.
“We expect the industry’s turnover to remain almost unchanged [in 2019]. Unit sales will decline around 15% but because of inflation the size of the market will be around TRY54bn this year,” he noted.
DP Eurasia, which runs Domino’s Pizza brand in Turkey and Russia, posted a 15.1% gain in first-half core profit. However, the company noted that slower like-for-like sales growth in Russia and rising competition in Moscow dented margins.
Domino’s is the largest pizza delivery chain in Turkey and the third largest in Russia. The DP Eurasia share price nosedived last year on concerns about economic challenges in its main markets. The price is down around 9% so far this year.
96 TURKEY Country Report October 2019 www.intellinews.com