Mavi Giyim Sanayi ve Ticaret (MAVI) Q2 2025 earnings summary

Executive summary

• Consolidated revenue grew 6% year-over-year to TRY 16.4 billion in H1 2024, with EBITDA up 14% to TRY 3.37 billion and net income rising 30% to TRY 1.52 billion, reflecting strong operational performance despite macroeconomic headwinds.

• Gross margin improved by 200 basis points year-over-year in Q2 and reached 51.8% in H1 2024, with EBITDA margin at 20.6%.

• Operational cash flow exceeded TRY 3.4 billion in H1 2024, supported by optimal inventory and effective working capital management.

• Turkiye retail sales grew 10-11% and online sales 10% in H1 2024, while international sales declined 7.5% in constant currency and 17% in inflation-adjusted TRY.

• Net cash position at period end was TRY 4.86-4.9 billion, with a 99% cash conversion rate.

Financial highlights

• H1 2024 sales reached TRY 16.4 billion, up 6% year-over-year; Turkey retail sales grew 11%, online sales 10%.

• H1 EBITDA was TRY 3.37 billion with a 20.6% margin; net income grew 30% to TRY 1.52 billion, with a 9.3% margin.

• Gross profit grew 16% to TRY 8.5 billion, with gross margin improving from 47.5% to 51.8%.

• Operating profit increased 26% to TRY 2.48 billion; operating margin improved to 15.2%.

• CapEx in H1 was TRY 507 million (3.1% of sales), focused on store expansion, digital, and R&D.

Outlook and guidance

• Macroeconomic pressures are expected to persist into H2 2024, but management aims to remain within initial guidance.

• FY2024 guidance (excluding IAS 29): consolidated sales growth of 70% ±5%, EBITDA margin of 20% ±0.5% (exc. IFRS16), net 15 new store openings and 10 expansions in Türkiye, and capex/sales ratio of 5%.

• Early Q3 showed variable demand, with August and September retail and online sales in Türkiye up over 50% and 60% respectively (nominal, IAS 29 excluded).

• Management remains committed to sustaining profitable growth and will update guidance if needed in Q3.