Selçuk Ecza reported a net loss of TRY223mn in 3Q25, higher than market estimate of TRY163mn and our estimate of TRY159mn net loss. The company posted an EBITDA of TRY1,097mn in 3Q25,
significantly higher than market estimate of TRY800mn and our estimate of TRY850mn. Despite better-than-expected operating profit, higher than expected tax expenses led to worse than expected bottom-line.
Market revenue was up by 37% y/y in 3Q25 driven by both pricing and volume growth. The reference Euro hiked to 21.6721 TL from 17.5483 TL, implying 23,5% increase in October 2024. Selçuk Ecza’s market share in volume declined by 2.3pp y/y in 3Q25.
In 3Q25, revenue increased by 7% y/y. Despite 0.7pp y/y increase in discounts/gross sales, net sales increased mainly due to pricing in 3Q25.
In 3Q25, EBITDA declined by 15% y/y. In 3Q25, EBITDA margin declined by 0.7pp y/y. In 3Q25, gross margin declined by 0.4pp y/y,
whereas OPEX margin was up by 0.3pp y/y. The Presidential Decree published in Official Gazette in 16 August clarified that the Whole Sales Price (WSP) benchmark values will also be updated in line with the reference euro exchange rate, thereby protecting Selçuk Ecza from gross margin erosion during update periods.
In 3Q25, net cash increased by 9% q/q TRY8.6bn. In 3Q25, NWC need declined by TRY1.0bn q/q. NWC/Sales declined by 0.7pp q/q.
Comment: Considering high tax expense accruals weren’t reflected on cash taxes and better than expected EBITDA, we expect
“Positive” market reaction at the opening.
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