Discount retailer BİM posts 1.35 billion liras net profit

Discount retailer BİM posts 1.35 billion liras net profit

Discount retailer BİM posts 1.35 billion liras net profit

Turkish discount retailer BİM has reported a net income of 1.35 billion Turkish Liras for the first quarter of 2023, slightly higher than the 1.34 billion liras of profit the company posted in the same period of 2022.

Net sales grew 88 percent in the January-March period from a year ago to 51.34 billion liras, while gross profit increased by 82 percent to 9.22 billion liras.

Like-for-like sales per store/per day rose by 79 percent to 52,548 liras. Like-for-like-basket per visit was 96.02 liras, up from 51.72 liras.

The company’s investments amounted to 1.6 billion liras, around 3.2 percent of its sales. In the previous quarter investments stood at 1.86 billion or 4.1 percent of sales. Investments included a new warehouse and for a biscuits and chocolate production facility.

BİM had a total of 11,525 stores as of end-March versus 10,788 outlets a year ago. In the first quarter the retailer added 207 new stores to its network, but 225 stores closed due to the earthquakes which hit 11 provinces in Türkiye’s south in early February.

BİM reported a 57 bp one-off negative impact of the earthquakes on the gross margin, another 67 bp one-off impact on its net margin.

The company’s financials showed that Morocco operations accounted for 4.1 percent of BİM’s revenues, while Egypt’s share was 1 percent.

In Morocco, BİM operated 641 stores and three logistics centers, while in Egypt it had 321 stores and two logistics centers as of end-March.

It expanded operations in Morocco by opening 14 new stores in the first quarter. In Egypt it opened 10 new outlets.

Private label and branded products accounted for 64.4 percent and 28.2 percent of revenues, respectively.