In BIM’s 3Q25 financials including TAS29 (inflation accounting) impact,
consolidated revenues became TL179.7bn (+7% y/y), EBITDA was TL13.2bn (+83% y/y) and net income materialized at TL5.3bn (-9% y/y).
Top-line was in line with consensus whereas EBITDA beat consensus by 19%
with actual EBITDA margin of 7.4% (3Q24: 4.3%) versus expected 6.2%. With stronger than expected operational profitability, NI surpassed consensus by 16% despite 32% y/y decline in net monetary gain and 76% y/y jump in taxes due to high effective tax rate related to reporting standard gaps.
We attended its results call held yesterday and key highlights with guidance can be found on the next page. We are maintaining our Outperform rating for the stock with a revised target price of TL815/share
(previous TL718).
BIM’s reported 3Q25 EBITDA margin became 7.4% up by 305bps y/y and was above the 233bps y/y improvement in gross margin. In 3Q25, opex
/sales receded to 16.4% from 3Q24’s 16.6%. Clearer performance is visible when D&A is excluded from opex and its ratio to topline was down to 12.7%
from 13.4% with major y/y improvements in personnel and utility expenses/sales. 3Q25 EBIT was TL6.5bn (3Q24’s weak base of TL1.8bn). In y/y terms substantial progress in EBIT was not reflected to PBT (mainly due to lower net monetary gains apart from lower net investment income and higher net financial expenses) PBT rose by 19% y/y to TL10.1bn. Effective tax rate was 46% compared to 31% in 3Q24. All in all, 3Q25 reported NI declined by 9% y/y with net margin of 2.9% with annual decline of 52bps despite 256bps improvement in EBIT margin.
BIM’s 3Q25 results presentation included pre-TAS29 highlights which is also essential for meaningful analysis of the results. Pre-TAS29 figures implied 3Q25 revenues of TL176.0bn (+42% y/y), EBITDA of TL15.1bn (+64%,
with 8.6% margin vs 3Q24’s 7.5%) and NI of TL8.0bn (+48% y/y with 4.6%
margin vs 3Q24’s 4.4%). In 3Q25, BIMflation was 29% (2Q25: 31%). 3Q25 pre-TAS29 LFL sales was 32.0% (2Q25: 28.2%) with respective basket growth and traffic decline of 35.0% (2Q25: 34.1%) and 2.2% (2Q25: 4.4% decline).
Though business models, methodology and product mix are not exactly comparable 3Q25 LFL traffic performances of competitors were on the positive territory: SOKM +1.9%, MGROS +0.8%.
3Q25 capex was TL4.8bn implying capex/sales of 2.7% and is below 3Q24’s 3.5%. Net quarterly store addition was 156 (3Q24: 253) and total number of stores reached 14,231 up by 6% y/y. It is noteworthy that quarterly store opening pace implied slowdown since 1Q25 and 2Q25’s respective figures were 226 and 266 versus 3Q25’s 156.
With respect to format and geography based pre-TAS29 3Q25 revenue breakdown, BIM Turkiye, File, BIM Morocco and BIM Egypt had shares of 85%, 10%, 5% and 1%, respectively. BIM Turkiye’s PL share receded to 54%
from 3Q24’s 58%. Branded share became 36% versus 32%. Spot and exclusive segments’ shares were maintained at 9% and 1%. During recent quarterly calls, it was shared that in Turkiye, BIM’s PL share declined mainly due to dilution effect of relatively lower inflation in basic categories where BIM has higher PL ratio. In addition, number of SKU also increased to 1,000 versus 900 before. New SKUs are mostly branded products, which dilutes the share of private label products. The management had reemphasized that its PL strategy remains intact.
BIM’s quarterly pre-TAS29 cash flow bridge shows end-3Q25 cash position including short term financial assets was TL19.0bn versus end-
2Q25’s TL13.6bn with funds from operations’ TL14.6bn and other’s TL2.1bn contribution reduced by TL5.5bn capex, TL2.9bn lease payment, 2.4bn dividend distribution and TL609mn change in NWC. As per reported and restated financials, BIM’s net debt inc IFRS16 was TL30bn down by 16% q/
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