Migros Ticaret (MGROS) Q2 2026 earnings summary

Executive summary

• Net sales grew 2.7% year-over-year in Q2 2026, reaching TRY 124.4 billion, with H1 2026 sales at TRY 241.3 billion under inflation accounting.

• Online operations delivered 21% real growth, reaching 327,000 orders per day, and 900,000 new digital shoppers were added, bringing the total to 6.6 million unique online customers over 12 months.

• Store network expanded by 64 in Q2 (115 in H1), totaling 3,830 stores, with a focus on larger formats and digital integration; net store openings were lower due to closures of underperforming locations.

• EBITDA margin (IAS 29) was 4.3% in Q2 2026, with H1 EBITDA at TRY 11.0 billion and margin at 4.5%; net profit for H1 was TRY 1.1 billion, despite a Q2 net loss.

• Free cash flow reached TRY 5.8 billion in H1, with a net cash position of TRY 31.8 billion as of June 2026.

Financial highlights

• Q2 net sales up 2.7% year-over-year; H1 net sales up 4.5% to TRY 241.3 billion.

• Gross margin (IAS 29) declined to 23.6% in Q2 2026, mainly due to increased promotional activity and warehousing costs.

• OPEX/Sales ratio improved to 22.1% in Q2 2026, with underlying efficiencies offsetting wage increases.

• EBITDA for H1 was TRY 11.0 billion; underlying EBITDA margin was flat at 3% versus 3.1% last year.

• Net profit for H1 was TRY 1.1 billion, with a Q2 net loss driven by gross margin pressure and lower net financial income.

Outlook and guidance

• Full-year sales growth guidance maintained at 5%-7%, with expectations to land at the lower end due to inflation trends.

• EBITDA margin guidance unchanged: 4%-5% (IAS 29) and 3% excluding inflation impacts.

• CapEx guidance remains at 2.5%-3% of sales, prioritizing digitalization and automation.

• Management expects margin improvement in H2, supported by seasonality, operational efficiencies, and stable cost base.

• Expansion target for 2026 is 180–200 new stores; 115 opened in H1 2026.