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SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

Earnings Release Aug 23, 2024

9026_rns_2024-08-23_ba9faf14-5c18-44cd-9803-e9132f2e1cfa.pdf

Earnings Release

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INVESTOR PRESENTATION

H1 2024

DISCLAIMER

HIGHLIGHTS

2024 H1 Highlights

Consolidated Highlights Turkiye Highlights
1.647
TRY
m
Revenue
(TRY 1.562m
pre-IAS29)
22%
Revenue Growth
(107%
pre-IAS29)
21%
Retail Revenue
Growth
(106%
pre-IAS29)
32%
Online Revenue
Growth
(126%
pre-IAS29)
376
TRY
m
EBITDA
(TRY 441m
pre-IAS29)
22,9%
EBITDA Margin
(28,2%
Pre-IAS29)
120
sqm
Average Store
Size
175
mono
brand stores in
49
cities
94
TRY
m
Net Profit
(TRY 174m of Net
Profit pre-IAS29)
89
TRY
m
Net Debt
(Excl. IFRS16
lease liabilities)
6,5
million
Visitors in stores
in H1 2024
(5.9 million in H1
2023)
1.134
TRY
Average Ticket
Size
(Grew by 91%
Y-o-Y pre-IAS29)
  • Consolidated revenue grew by 22% (Y-o-Y) after IAS29 (inflation adjustment) Growth is 107% pre-IAS29.
  • Domestic retail revenue growth realized 21% with the inflation adjustment Growth is 106% pre-IAS29
  • E-Commerce revenue growth realized 32% with the inflation adjustment Growth is 126% pre-IAS29
  • In addition to revenue growth, EBITDA margin improved by 340 bps compared to the same period in prior year and reached at 22,9%.
  • As of June 30, 2024, there is a net debt position of TRY 89m.
  • Number of stores in Turkiye reached at 175 (5 of which are operated by franchisees & the rest belong to Suwen)
  • Number of International SOS (Self-Owned-Stores) reached at 9 (7 of which are in Romania while the rest is in Cyprus).
  • Number of International FOS (Franchisee-Owned-Stores) reached at 9 in 7 different countries/ regions.

02 FINANCIAL RESULTS

CONSOLIDATED FINANCIAL RESULTS (PRE-IAS29)

1.563

Gross Profit (Million TRY)

Revenue (Million TRY) (*)

EBITDA (Million TRY)

Growth Rate

xx%

(*) In H1 2024, the concepts of 18 existing stores have been renovated while it was 12 in total during the full year of 2023. Potential turnover of these 18 stores during the period when they were closed is calculated as approximately TRY 20m. Relevant turnover loss is expected to be compensated in the rest of 2024.

CONSOLIDATED MARGINS (PRE-IAS29)

59.8%

$\longrightarrow 2024A \longrightarrow 2024B$ 2023A 61,8% 63.3% 64,0% 59.3% $62,1%$ 58,3% 60.5% 2023 H1A 2024 H1A 2024 H1B $Q1$ $Q2$ $Q3$ $Q4$

Gross Profit Margin (%)

Net Profit Margin (%) $= 2023A$ $-$ 2024A $-$ 2024B 18.4% 15,5% 18.0% 4,9% 12,8% 11,1% 7,5% 4,1% $\alpha$ 1 $O2$ $O3$ $O4$ $(1.3%$

2023 H1A 2024 H1A 2024 H1B

EBITDA Margin (%)

In H1 2024 :

  • Improvement in Gross Profit Margin due to more $\bullet$ conservative campaign/discount management and impact of 2024 summer season products (which have higher profit margins)
  • Beating budget in EBITDA and net profit margins due to good $\bullet$ management in OPEX (Note that minimum wage increases have been already considered in budget figures).
  • For the period of January 1 June 30, 2024, POS commission $\bullet$ expenses were approximately 79.2 m TL and the ratio to net sales was 4.8% (the ratio to net sales was 1.8% in the same period in 2023).
  • » In the coming period, within the framework of macroeconomic developments and interest rate movements, the Company plans to wait for the maturity date of its credit card receivables and meet the necessary working capital needs from its own resources.

CONSOLIDATED FINANCIAL RESULTS (BASED ON IAS29)

CONSOLIDATED BALANCE SHEET INDICATORS (BASED ON IAS29)

Dec 2023 Jun 2024

xx.x% Sales Rate

03 SALES AND OPERATIONAL INITIATIVES

REVENUE BY CHANNEL (BASED ON IAS29)

(*) International Retail includes net sales to international franchisees as well as retail revenue in Romania and Cyprus.

xx% Growth Rate %

Turkiye Retail Revenue (PRE-IAS29)

1.134

7,3

1.027

24

TOURIST / NET SALES RATIO

2022-2024 H1 # of Tourist Invoices

Tourist / Net Sales Ratio 2022 - 2024 (%)

xx%

In the first 6 months of 2024, there was a 33% decrease in the number of invoices issued to tourists compared to the same period in 2023. If the last year's tourist turnover rates had remained constant in 2024, +49 M TL additional turnover would have been achieved.

DOMESTIC OPERATIONAL INITIATIVES

18 stores renovated with new concept in 2024 so far

INTERNATIONAL ACTIONS

Country / Region Franchise
Agreement
# of Stores
2024 H1
5 Year Plan
(2023-27)
Azerbaijan 2 10
Qatar 1 4
Algeria 1 4
Jordan 1 5
Turkmenistan 1 3
Iraq 2 10
Moldova 1 3
Mongolia - 3
Other Countries (*) - 40+
INTERNATIONAL FOS 9 80+
Country / Region Franchise
Agreement
# of Stores
2024 H1
5 Year Plan
(2023-27)
Romania SOS 7 17
Cyprus SOS 2 3
Other Countries SOS - 5
INTERNATIONAL SOS 9 25
TOTAL INTERNATIONAL 18 105+

INTERNATIONAL RETAIL (SOS)

E-COMMERCE OPERATIONS (PRE-IAS29)

Net Sales (m TRY) 2023 H1A 2024 H1A 2024 H1B

REVENUE BY PRODUCT CATEGORY (*)

HOMEWEAR

UNDERWEAR

Bras, panties, camisoles and corsets

Pyjamas, nighties and morning gowns

9,5% BEACHWEAR

Bikinis, swimsuits, cover-ups, and beach accessories

3,6% HOSIERY

Pantyhoses, socks, tights

Bra accessories, silicone pads and garter bands

0,3%

Bodymist, soap, cologne

WE HAVE THE POWER WITHIN US

Suwen is a brand that supports women's employment and women's power. 90% of its employees are women, and 55% of them are managers.

In order to support the success of women's volleyball in Turkey, we are also the official sponsor of the Sultans of the Net between 2023 and 2026.

04 2024 MANAGEMENT GUIDANCE

2024 MANAGEMENT GUIDANCE

EXCLUDING IAS 29 INCLUDING IAS 29
Consolidated
Net Sales
TRY 4.0 Billion (± 3%)
(90+ %)
30+ % Growth (± 5%)
(2023 Growth Rate: 42%)
EBITDA Margin 30.8% - 31.5% 50-100 Bps Improvement
(2023 EBITDA Margin: 21.8%)
Net Cash / (Debt)
(Excl. IFRS16 Lease
Liabilities)
Net Cash Position Net Cash Position
Net Debt / EBITDA
(Incl. IFRS16 Lease
Liabilities)
0.10x – 0.20x
CAPEX 6%-7% of Consolidated Net
Sales

QTD 2024 Update (*) (Excluding IAS29)

TR Retail and Online revenue increased by 85% and 143%during the period between 1st of July and 18th of August, compared to the same period in prior year.

(*) QTD 2024 results are based on the figures for the period between 1st of July and 18th of August.

05 APPENDIX

IAS29 IMPACT (ON EBITDA&NET PROFIT – H1 2024

NET PROFIT (IAS 29 IMPACT) 174 54 90 (214) (8) (3) 94 Net Profit (pre-IAS29) CAPEX and Right of Use Inventories Equity Change in Deffered Tax Other Net Profit (based on …

AWARDS

EUWE.

CUMEA

CURIOS FELIS

Turkey's fastest-growing wamen's lingerie retail brand, Suwen, won the silver award in the Felis Curious category at the magnificent ceremony held on Thursday, November 10, 2022, at the Zorlu Performance Arts Center.

BRANDVERSE AWARDS

Suwen, which portrays bold and powerful women by expanding their freedom in their advertising film, won the Bronze Award in the Fresh Advertisers category at the magnificent ceremony held on Thursday, June 30th, at the Hilton Istanbul, Bomonti.

٠
2022

GOLDEN LEADER

All Bolluk, the General Manager of Suwen, Turkey's fastest-growing wamen's lingerie retail brand. was selected as Turkey's Most Admired CEO and was awarded the Golden Leader Award.

NEW ERA OF HR

We have the received the Stars of Human Resources award at the New Era of HR summit organized by Secretcv.

SLIMSTOCK & LODER

At the "Turkey's Most Effective Supply Chain Professionals" award ceremony, organized for the eighth time this year in partnership with Slimstock and the Logistics Association (LODER), Suwen become Turkey's Most Effective Supply Chain Professional and received 2 awards in the 2022 Supply Chain Most Technological Project category.

BRANDVERSE AWARDS

We won 2 Bronze awards in the Fresh Advertisers & Apparel and Accessories categories at the Brandverse Awards with our "Suwen Mode at Home" homewear advertising campaign!

RESPECT FOR HUMANITY

At the Human Resources Summit sponsored by Kariyer.net, the Respect for People Awards were given to companies that responded to candidate applications one hundred percent, employed the most, and received the most applications. As part of the Suwen family, we earned this award among over 30,000 employers.

BEST USE OF DATA

We embarked on a success story where our system and the data changed the course of our best-selling product. At the VXI. Turkey Communication Center Awards held on December 14th, we won the "Most Worthy Brand Award" in the category of "Best Use of Data".

SUMMARY CONSOLIDATED INCOME STATEMENT

Δ (%) Δ (%)
(2024-H1/ (2024-Q2/
Thousands of TL 2023-H1 2024-H1 2023-Q2 2024-Q2 2023-H1) 2023-Q2)
Revenue 1.354.633 1.646.712 801.965 977.021 21,6% 21,8%
Cost of Sales (-) (684.117) (713.762) (372.693) (395.544) 4,3% 6,1%
Gross Profit 670.516 932.950 429.272 581.477 39,1% 35,5%
Gross Profit (%) 49,5% 56,7% 53,5% 59,5%
Operating Expenses (-) (581.700) (741.692) (307.136) (391.290) 27,5% 27,4%
Other Income/(Expense) from Main Operations, net 60 9.264 7.723 (1.689) 15450,0% (121,9%)
Operating Profit 88.876 200.522 129.859 188.498 125,6% 45,2%
Operating Profit (%) 6,6% 12,2% 16,2% 19,3%
Income/(Expense) from Investing Activities, net 4.853 4.674 795 2.072 (3,7%) 160,5%
Operating Profit Before Financial Expense 93.729 205.196 130.655 190.570 118,9% 45,9%
Financial Income/(Expense), net (46.492) (155.852) (25.578) (96.966) 235,2% 279,1%
Monetary gain/(loss) 136.125 75.797 6.871 520 (44,3%) (92,4%)
Profit Before Tax from Continuing Operations 183.361 125.141 111.948 94.123 (31,8%) (15,9%)
Taxes on Income (69.519) (34.890) (63.933) (31.837) (49,8%) (50,2%)
Deferred Tax Income/(Expense) (21.340) 3.552 15.746 13.377 (116,6%) (15,0%)
Net Profit for the Year 92.502 93.803 63.760 75.663 1,4% 18,7%
Net Profit for the Year (%) 6,8% 5,7% 8,0% 7,7%
EBITDA 263.147 376.425 211.224 287.565 43,0% 36,1%
EBITDA (%) 19,4% 22,9% 26,3% 29,4%

ÖZET TFRS KONSOLİDE BİLANÇO

Thousands of TL 2023 2024-H1 Change (%)
Current Assets 1.003.006 1.353.366 34,9%
Non-current Assets 823.919 841.154 2,1%
Total Assets 1.826.925 2.194.520 20,1%
Current Liabilities 514.662 864.712 68,0%
Non-current Liabilities 278.191 270.299 $(2,8\%)$
Total Liabilities 792.853 1.135.011 43,2%
Equity 1.034.072 1.059.509 2,5%
Total Liabilities & Equity 1.826.925 2.194.520 20,1%

ŞİRKET PROFİLİ

  • Reporting Period: 01.01.2024 30.06.2024
  • Trade name: Suwen Tekstil Sanayi Pazarlama Anonim Şirketi
  • Trade registry number: 502674
  • Tax No.: 330 049 9555
  • Registered Capital Ceiling: 300.000.000 TL
  • Issued Capital: 224.000.000 TL
  • Head Office Address: Tatlısu Mahallesi Göksu Cad. No: 41/1 Ümraniye/İstanbul
  • Email: [email protected]
  • Website Address: www.suwencompany.com

THANK YOU

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