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SUWEN TEKSTİL SANAYİ PAZARLAMA A.Ş.

Earnings Release Nov 11, 2024

9026_rns_2024-11-11_658f1a77-e577-4f28-b859-a08771d32ce2.pdf

Earnings Release

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INVESTOR PRESENTATION

SEPTEMBER 2024

DISCLAIMER

2024 H1 HIGHLIGHTS 2024 9M HIGHLIGHTS

SALES AND OPERATIONAL INITIATIVES

2024 MANAGEMENT GUIDANCE

01 2024 9M HIGHLIGHTS

2024 Q3 Highlights

Consolidated Highlights Turkiye Highlights
3.067
TRY
m
Revenue
(TRY 2.802m
pre-IAS29)
21%
Revenue Growth
(97%
pre-IAS29)
19%
Retail Revenue
Growth
(94%
pre-IAS29)
40%
Online Revenue
Growth
(133%
pre-IAS29)
682
TRY
m
EBITDA
(TRY 822m
pre-IAS29)
22,2%
EBITDA Margin
(29,3%
Pre-IAS29)
121
sqm
Average Store
Size
179
mono
brand stores in
50
cities
195
TRY
m
Net Profit
(TRY 389m of Net
Profit pre-IAS29)
98
TRY
m
Net Debt
(Excl. IFRS16
lease liabilities)
11,5
million
Visitors in stores
in 9M 2024
(10.5 million in 9M
2023)
1.151
TRY
Average Ticket
Size
(Grew by 75%
Y-o-Y pre-IAS29)
  • Consolidated revenue grew by 21% (Y-o-Y) after IAS29 (inflation adjustment) Growth is 97% pre-IAS29.
  • Domestic retail revenue growth realized 19% with the inflation adjustment Growth is 94% pre-IAS29
  • E-Commerce revenue growth realized 40% with the inflation adjustment Growth is 133% pre-IAS29
  • In addition to revenue growth, EBITDA margin improved by 230 bps compared to the same period in prior year and reached at 22,2% in 9M 2024.
  • As of September 30, 2024, there is a net debt position of TRY 98m.
  • Number of stores in Turkiye reached at 179 (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)

EBITDA (Million TRY)

Net Profit (Million TRY)

$xx%$ Growth Rate

CONSOLIDATED MARGINS (PRE-IAS29)

Gross Profit Margin (%)

Net Profit Margin (%)

$\longrightarrow$ 2023A $\longrightarrow$ 2024A $\longrightarrow$ 2024B

CONSOLIDATED FINANCIAL RESULTS (BASED ON IAS29)

CONSOLIDATED BALANCE SHEET INDICATORS (BASED ON IAS29)

As a % of Net Sales $xx.x%$

03 SALES AND OPERATIONAL INITIATIVES

REVENUE BY CHANNEL (BASED ON IAS29)

Growth Rate % хх%

Turkiye Retail Revenue (PRE-IAS29)

LFL Growth Budget Variance

хх%

DOMESTIC OPERATIONAL INITIATIVES

+'\$ ++' ++% ++. +\$+

10 new stores opened in 2024 so far. '/'01'#=>\$/83#9\$':;"#7< +*.

18 stores renovated with new concept and 3 stores replaced with larger areas in 2024 so far. !%&\$ !'(\$ !)#\$ !)%\$

INTERNATIONAL ACTIONS

INTERNATIONAL FRANCHISE (FOS)
Country / Region Franchise
Agreemen
t
# of Stores
Sep 2024
5 Year Plan
(2025-29)
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 (*) ! - 5
Other Countries (*) ! - 3
Other Countries (*) ! - 40+
INTERNATIONAL FOS 9 90+
INTERNATIONAL RETAIL (SOS)
Country / Region Franchise
Agreemen
t
# of Stores
Sep 2024
5 Year Plan
(2025-29)
Romania !"! 7 17
Cyprus !"! 2 3
Other Countries !"! - 5
INTERNATIONAL SOS 9 25
TOTAL INTERNATIONAL 18 115+

(*) In addition to the regions where franchise agreements have been already made, negotiations for Gulf countries and Turkic Republics are in progress.

E-COMMERCE OPERATIONS (PRE-IAS29) E-COMMERCE OPERATIONS (PRE-IAS29)

347(6;<4@(/A(:BC0 \$'\$&(D+> \$'\$-(D+> \$'\$-(D+?

xx% LFL Growth xx% Budget Variance !!" [Y[+B,"0)C !!" O.'/*)+(,&(#H*

REVENUE BY PRODUCT CATEGORY (*)

UNDERWEAR

Bras, panties, camisoles and corsets

Pyjamas, nighties and morning gowns

13,0% BEACHWEAR

Bikinis, swimsuits, cover-ups, and beach accessories

2,7% HOSIERY

Pantyhoses, socks, tights

Bra accessories, silicone pads and garter bands

0,3% COSMETICS

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+ %)
25+ % 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)
0.50x – 0.60x
CAPEX 5%-6% of Consolidated Net
Sales

QTD 2024 Update (*) (Excluding IAS29)

TR Retail and Online revenue increased by 66% and 71%during the period between 1st of October and 10th of November, compared to the same period in prior year.

(*) QTD 2024 results are based on the figures for the period between 1st of October and 10th of November.

05 APPENDIX

IAS29 IMPACT (ON EBITDA&NET PROFIT - H1 2024

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

$\Delta$ (%) $\Delta$ (%)
(9M 2024/ (2024-03/
Thousands of TL 9M 2023 9M 2024 2023-30! 2024-30 9M 2023) $2023 - Q3$
Revenue 2.529.594 3.066.881 1.054.134 1.273.290 21,2% 20,8%
Cost of Sales (-) (1.291.613) (1.430.447) (546.476) (653.021) 10,7% 19,5%
Gross Profit 1.237.981 1.636.434 507.657 620.269 32,2% 22,2%
Gross Profit (%) 48,9% 53,4% 48,2% 48,7%
Operating Expenses (-) (1.024.314) (1.266.455) (390.729) (458.607) 23,6% 17,4%
Other Income/(Expense) from Main Operations, net 68 24.130 14.040 35375,5% 448299,4%
Operating Profit 213.735 394.110 116.931 175.702 84,4% 50,3%
Operating Profit (%) 8,4% 12,9% $11,1\%$ 13,8%
Income/(Expense) from Investing Activities, net 5.597 8.087 311 2.996 44,5% 862,2%
Operating Profit Before Financial Expense 219.331 402.196 117.243 178.698 83,4% 52,4%
Financial Income/(Expense), net (80.076) (249.219) (29.437) (79.466) 211,2% 170,0%
Monetary gain/(loss) 229.047 134.674 80.781 52.117 $(41,2\%)$ (35,5%)
Profit Before Tax from Continuing Operations 368.303 287.651 168.586 151.349 (21,9%) $(10,2\%)$
Taxes on Income (113.065) (63.261) (37.345) (25.259) $(44,0\%)$ $(32, 4\%)$
Deferred Tax Income/(Expense) (49.016) (29.102) (25.773) (32.971) (40,6% 27,9%
Net Profit for the Year 206.221 195.288 105.468 93.118 (5,3%) (11,7%)
Net Profit for the Year (%) 8,2% 6,4% 10,0% 7,3%
EBITDA 503.096 682.043 216.478 272.042 35,6% 25,7%
EBITDA (%) 19,9% 22,2% 20,5% 21,4%

SUMMARY CONSOLIDATED BALANCE SHEET

Thousands of TL 2023 9M 2024 Change (%)
Current Assets 1.092.470 1.402.569 28,4%
Non-current Assets 897.409 877.596 $(2,2\%)$
Total Assets 1.989.878 2.280.164 14,6%
Current Liabilities 560.568 743.266 32,6%
Non-current Liabilities 303.004 303.224 0,1%
Total Liabilities 863.572 1.046.490 21,2%
Equity 1.126.307 1.233.675 9,5%
Total Liabilities & Equity 1.989.878 2.280.164 14,6%

COMPANY PROFILE

  • Reporting Period: 01.01.2024 30.09.2024
  • 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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