Ulker Bisküvi Sanayi (ULKER) Q2 2025 earnings summary

Executive summary

• Achieved strong volume growth and maintained market leadership in key regions despite macroeconomic headwinds, including high inflation and raw material volatility.

• Launched several new products and impactful marketing campaigns, contributing 4% to Q2 net revenue and supporting topline growth.

• Advanced sustainability initiatives, including 100% recyclable packaging, biofortified products, and received multiple awards for employer excellence and corporate reputation.

• Completed major restructuring, merging domestic subsidiaries for efficiency and operational improvement.

• Distributed a gross cash dividend of 2,980 million TL in June 2025, funded from 2024 profits.

Financial highlights

• Q2 revenue grew by 11.5% year-over-year to TRY 23,058M; volume up 5.5%; gross profit margin at 27.2%.

• Q2 EBITDA margin at 14.6%; H1 EBITDA margin at 17.8%; net income for Q2 at TRY 1,702M, down 57.6% year-over-year.

• H1 revenue reached TRY 51,640M, up 4.6% year-over-year; net profit declined 35.8% to 3,490M TL.

• Gross margin at 30.7% (down from 31.4%); net margin (equity holders) decreased to 6.4% from 9.9%.

• Net financial debt increased 49.6% to 33,652.8 million TL as of June 30, 2025.

Outlook and guidance

• 2025 guidance: 3% ±1% net sales growth and 17.5% ±0.5% EBITDA margin.

• Strategic focus on long-term sustainable growth, cost efficiency, and maintaining profitability.

• Expect gross margins in H2 to be in line with H1, with normalization in working capital and inventory levels.

• Inflation for H2 estimated at 30%, down from 35% in H1.