Ulker Bisküvi Sanayi (ULKER) Q1 2025 earnings summary

Executive summary

• Welcomed new CEO Özgür Kölükfakı, emphasizing strategic vision and leadership experience across global FMCG markets.

• Achieved double-digit profit growth in 1Q'25, driven by robust revenue and volume increases despite market volatility and inflation challenges.

• Q1 2025 began with strong momentum despite inflation and market volatility, focusing on brand investment, innovation, and sustainability.

• Innovation pipeline robust: new products contributed 2% of Türkiye revenue and 12% of snacking revenues, with strong domestic and growing international traction.

• Recognized for ESG leadership, ranking first in the food sector by LSEG and among the top 3% globally in S&P Global Sustainability Index.

Financial highlights

• Q1 net revenue reached TRY 27 billion, with TRY 7.1 billion from international operations; domestic sales accounted for 74% and international 26%.

• Gross profit rose 4% year-over-year to TRY 9 billion, with gross margin improving to 33.4% from 32%.

• EBITDA for Q1 2025 was TRY 4.96 billion, with an EBITDA margin of 20.3%; net income at TRY 2.41 billion, down 19% year-over-year.

• Domestic revenue grew 7% and EBITDA increased 11% year-over-year; international revenue and EBITDA declined 17% and 24% respectively, but international EBITDA margin remained strong at 21.5%.

• Chocolate segment now contributes 60% of revenue, up from 54% last year.

Outlook and guidance

• 2025 net sales growth projected at 3% ±100 bps; EBITDA margin expected at 17.5% ±50 bps, with focus on managing input costs and scaling high-margin SKUs.

• Q2 and beyond expected to see market recovery in volumes and continued market share gains.

• New sustainability-linked loans support expansion in both domestic and international markets.