PRN: Bizim Toptan Reports First Quarter 2012 Results for the Period Ended March 31, 2012
Bizim Toptan Reports First Quarter 2012 Results for the Period Ended March 31, 2012
- Company Kicks-off 2012 with Main Categories Growth of 15.8%
ISTANBUL, April 25, 2012 /PRNewswire/ --Â Bizim Toptan Satis Magazalari A.S. (ISE: BIZIM.TI) ("Bizim Toptan"), a leading cash and carry wholesaler with a national footprint of 124 stores throughout Turkey, reported its results for the first quarter 2012 period, ended March 31, 2012.Â
First Quarter 2012 Highlights:
First Quarter 2012 Results
The Company achieved its budgeted sales revenue for the first quarter of 2012, despite severe weather conditions which had a heavy impact on the business at the start of the first quarter of 2012. Sales revenue significantly rebounded in March and continued to improve into April.
Gross profit in the first quarter 2012 increased by TL 5.3 million, or 16.0% to TL 38.7 million compared to TL 33.4 million in the same period of 2011.Â Gross margin for the quarter was 9.0% compared to 8.7% in the same quarter of 2011.Â Gross margin improvement was mainly attributed to the declining share of tobacco from 24.5% to 22.0%.
First quarter 2012 EBITDA was TL 15.3 million compared to the TL 14.5 million recorded in the same quarter of 2011.Â EBITDA margin was 3.6% compared to 3.8% in the same period of last year. Â EBITDA margin was heavily affected by the limited utilization of operating leverage. Operating expenses as a percentage of sales increased compared to the first quarter 2011 due to a relatively slow start, as result of weather conditions. The Company expects to return to full utilization of its operating leverage in the coming quarters.
First quarter 2012 EBITDA margin performance was 3.6%, in comparison to adjusted margin of 3.5% excluding one-off effect of tobacco inventory gain recorded in the last quarter of 2011, which is quite encouraging for the Company's margin improvement target for the full year of 2012.
The Company's operating income during the first quarter of 2012 was TL 12.7 million compared to TL 10.9 million recorded in the same quarter of 2011. Â Operating margin was 3.0% for the quarter compared to 2.8% in the same quarter in 2011.
Net income for the first quarter of 2012 was TL 7.0 million compared to net income of TL 5.9 million reported in the same quarter of 2011.
The Company's operating income and net income during the first quarter of 2012 showed relatively stable performance in absolute terms, compared to the same quarter of 2011 if one-off expense related to theÂ Initial Public Offering were excluded.
Due to harsh weather conditions, the Company decided to postpone opening new store to take place in the upcoming quarters. Instead, the Company relocated a store in Kucukyali-Istanbul, changing its format type from B into a larger type A format and made it more focused on the needs of hotels, restaurants and cafes, or HORECA-centric. Â The Company's decision to transform the existing store to the new HORECA format resulted in a significant increase in sales per square meter. The Company will continue to transform some existing stores into the HORECA format, especially in metropolitan cities and touristic areas. Â Despite not opening a store this quarter, the Company remains focused on opening stores within regions with high-growth potential and continues to be on track to open a total of 16 stores in 2012.
Mr. Recep Ozalp, chief executive officer of Bizim Toptan stated, "Our Company achieved main category growth of 15.8%, despite severe weather conditions experienced during the first quarter. We saw a rebound towards the end of the first quarter which continues in April, following a relatively slow start in January and February. As expected, our gross margins performance was strong. In the following quarters, we expect our business, especially our HORECA stores, will generate strong revenues and as a result, we will have full utilization of our operating leverage. We believe that further improvement in our profitability, will come from our commercial action plans in the customer and product sides, such as new channel based customer management; stronger penetration in the HORECA and corporate segment by introducing more fresh produce and meat into product offerings, as well as the declining share of tobacco by reconsidering the customer por! tfolio from the strategic and profitability perspective and a strict cost control strategy.Â We continue to see strong demand from our customers, which validates our ambitious 2012 new store opening and store transformation strategies.Â As the market leader in our category, we are firm in our aim to reach in excess of TL 2 billion in total revenue for FY 2012 and will continue to execute our business model in order to maximize shareholder return."
In conjunction with the earnings results, Bizim Toptan will host a conference call which will take place at 10:00 am (Eastern) / 5:00 pm (Istanbul) on Thursday, April 26, 2012.
Interested parties may participate in the conference call by dialing the following numbers listed below:
About Bizim Toptan
Forward Looking Statements
Forward-looking statements can be recognized by the use of words such as "expects," "plans," "will," "could",Â "estimates," "projects," "intends," or words of similar meaning. Such forward-looking statements speak only as of the date of this press release, and are not guarantees of future performance.Â Such forward-looking statements involve risks and uncertainties that may cause actual results, performance or financial condition to materially differ from those expressed or implied in the forward-looking statements as a result of various factors and assumptions.Â
The Company undertakes no obligation to revise forward-looking statements to reflect events or circumstances after the date of this press release. Potential risks and uncertainties including changes in applicable regulations, and other information detailed from time to time in the Company's filings and future filings with the Istanbul Stock Exchange or the Turkish Capital Markets Board. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Company Codes: Istanbul:BIZIM