İŞ INVESTMENT – Ulker Biskuvi ULKER TI Company Report 2Q16 – 17.08.2016
Price (TL) : 21.34 – T.P.(TL) : 22.5 – Mcap.mn.(TL) : 7298 – 3M ADV(mn$) : 6.04
ULKER TI Equity- Rec.:OUTPERFORM Upside%: 5.44 Analyst: [email protected]
ULKER 2Q16: Strong set of results
Better than both our house call of TL75mn and consensus of TL84mn, Ulker disclosed TL87mn net income in 2Q16, up 22% YoY. The bottom-line growth was driven by both operational improvement and lower financial expenses related to f-x losses.
On a like for like basis, the revenue growth was 9.1% in 2Q16. Consolidated confectionery sales volume increased by 3.6% in 2Q16 which lead to 4.2% YoY top-line growth in 2Q16. Turkey sales revenues increased by 10.7% in 2Q16 thanks to price adjustments and mix impact. On the other hand, international revenues declined 8.9% YoY after the divestiture of dairy operations (exports of Ak Gıda through Istanbul Gıda), which lowered other exports. However, on l-f-l basis, the confectionery revenues increased by 9.3% and total sales grew 9.1% in 2Q16.
Consolidated EBITDA margin improved by 0.8pp YoY to 13.7% in 2Q16. The margin improvement was primarily driven by price increases. Hence, EBITDA recorded at TL134mn in 2Q16 which was slightly better than our estimate of TL124mn and consensus of TL130mn.
All in all, the consolidated results including S.Arabia and Egypt operations came slightly better than estimates. Therefore, we might see a slight positive reaction to the results. We may revisit our estimates following the conference call which will be held today.