Ulker Bisküvi Sanayi (ULKER) Q2 2024 earnings summary

Executive summary

• Maintained leading market share in all operating regions and main snacking categories, with recent gains in domestic market share and strengthened leadership position.

• Consistent operational performance and profitability, supported by effective supply chain management despite macroeconomic headwinds.

• Strong focus on sustainability, including zero waste to landfill certification, regenerative agriculture initiatives, and multiple sustainability awards.

• Innovation contributed 10% of total revenues in H1 2024 through new product launches.

• Revenue for H1 2024 reached TL 36.56 billion, with net profit of TL 4.02 billion, a significant increase from the prior year.

Financial highlights

• Q2'24 revenue reached TRY 16.4 billion, up 1% year-over-year; gross profit rose 3% to TRY 4.7 billion.

• Q2'24 EBITDA margin at 17.5%, up from 16.4% in Q2'23; net income increased to TRY 2.9 billion from a net loss of TRY 2.5 billion.

• H1'24 total revenue grew 4% year-over-year to TRY 36.6 billion; net income more than doubled to TRY 7.3 billion.

• Operating profit for 1H 2024 was TL 7.11 billion; EBITDA margin at 20.0%.

• Cash and cash equivalents increased to TL 16.72 billion as of 30 June 2024.

Outlook and guidance

• Year-end guidance maintained: TRY 85 billion net sales and 18.5% EBITDA margin.

• Management anticipates inflation moderation to support input costs and expects volume recovery as pricing stabilizes.

• The Group is evaluating the impact of new tax regulations and global minimum tax applications on its future financials.