D-MARKET Electronic Services & Trading (d/b/a “Hepsiburada”)
(NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to
herein as “Hepsiburada” or the “Company”), today announces its
unaudited financial results for the first quarter ended March 31,
2024.
Restatement of financial
information: Pursuant to the International Accounting
Standard 29, Financial Reporting in Hyperinflationary Economies
(“IAS 29”), the financial statements of entities whose functional
currency is that of a hyperinflationary economy must be adjusted
for the effects of changes in a general price index. Turkish
companies reporting under International Financial Reporting
Standards (“IFRS”), including the Company, have been required to
apply IAS 29 to their financial statements for periods ended on and
after June 30, 2022.
The Company’s consolidated financial statements
as of and for the three months ended March 31, 2024, including
figures corresponding to the same period of the prior year, reflect
a restatement pursuant to IAS 29. Under IAS 29, the Company’s
financial statements are presented in terms of the measuring unit
current as of March 31, 2024. All the amounts included in the
financial statements which are not stated in terms of the measuring
unit current as of the date of the reporting period, are restated
applying the general price index. Adjustment for inflation has been
calculated considering the price indices published by the Turkish
Statistical Institute (TurkStat). Such indices used to restate the
financial statements as at March 31, 2024 are as follows:
|
Date |
Index |
Conversion Factor |
|
31 March 2024 |
2,139.5 |
1.00 |
|
31 December 2023 |
1,859.4 |
1.15 |
|
31 March 2023 |
1,269.8 |
1.68 |
Figures unadjusted for inflation in accordance
with IAS 29, denoted as “IAS 29-unadjusted”, “unadjusted for IAS
29”, “unadjusted”, “unadjusted for inflation”, or “without
adjusting for inflation”, are also included in the summary tables
of the consolidated financial statements and under the “Highlights”
section and explanatory notes as relevant. The press release also
includes tables that show the IAS 29 adjustment impact on the
consolidated financial statements for the periods under discussion.
Figures unadjusted for IAS 29 constitute non-IFRS financial
measures. We believe that their inclusion facilitates the
understanding of the restated financial statements in accordance
with IAS 29 and our year-on-year growth and profitability guidance.
Please see the “Presentation of Financial and Other Information”
section of this press release for a definition of such non-IFRS
measures, a discussion of the limitations on their use, and
reconciliations of the non-IFRS measures to the most directly
comparable IFRS measures.
First Quarter 2024 Financial and Operational
Highlights
(All financial figures are restated
pursuant to IAS 29 unless otherwise indicated)
- Gross
merchandise value (GMV) increased by 42.5% to TRY 36.3
billion compared to TRY 25.5 billion in Q1 2023.
- IAS 29-Unadjusted
GMV increased by 137.8% to TRY 35.2 billion compared to Q1
2023.
-
Revenue increased by 45.0% to TRY 11,309.6 million
compared to TRY 7,800.5 million in Q1 2023.
- Number of
orders increased by 21.7% to 29.3 million compared to 24.1
million orders in Q1 2023.
- Active
Customers increased by 1.4% to 12.1 million compared to
11.9 million as of March 31, 2023.
- (Order)
Frequency increased by 30.3% to 9.8 compared to 7.5 as of
March 31, 2023.
- Active
Merchant base increased by 1.2% to 101.9 thousand compared
to 100.7 thousand as of March 31, 2023.
- Number of
SKUs increased by 37.9% to 248.2 million compared to 180.0
million as of March 31, 2023.
- Share of
Marketplace GMV was 68.4% compared to 68.2% in Q1
2023.
-
EBITDA improved to TRY 289.4 million compared to
TRY 12.2 million in Q1 2023. Accordingly, EBITDA as a percentage of
GMV was at 0.8%, a 0.7 percentage point improvement compared to
0.05% in Q1 2023.
- IAS 29-Unadjusted
EBITDA improved to TRY 835.3 million compared to TRY 175.9 million
in Q1 2023. IAS 29-Unadjusted EBITDA as a percentage of GMV in Q1
2024 improved by 1.2 percentage points to 2.4% compared to 1.2% in
Q1 2023.
- Net
loss for the period was TRY 130.7 million
compared to a net loss of TRY 324.9 million for Q1 2023.
-
Free cash flow was positive TRY 1,029.6 million
compared to negative TRY 259.3 million in Q1 2023.
Commenting on the results, Nilhan Onal
Gökçetekin, CEO of Hepsiburada said:
“We are glad to have had a robust start to the
year across the business, following a year of turnaround in
profitability in 2023. In the first quarter, we continued to
execute on our strategic priorities with a focus on strengthening
our core operations, leveraging our key strengths for on-platform
and off-platform operations and prudent cost management. Our
efforts, accelerated by the base effect of last year due to the
tragic earthquake, drove a 137.8% year-on-year GMV growth on an
unadjusted basis. Meanwhile, we recorded 2.4% EBITDA as a
percentage of GMV representing a 1.2 percentage point yearly rise
on an unadjusted basis, a clear sign that our strategy is
working.
During the quarter, we continued our initiatives
to improve user experience by leveraging advancing technology and
strengthening our appealing value proposition through diverse
affordability and lending solutions. These have resulted in
competitive NPS metrics, marking Hepsiburada as the most
recommended e-commerce brand in Türkiye once again. Our appeal is
also evidenced by a 30% year-on-year rise in order frequency and
firm traction with Hepsiburada Premium program enrollment,
exceeding 2.6 million members by the end of May 2024.
Merchants’ preference for our last-mile delivery
services has sustained its uptrend, whereby HepsiJet delivered 68%
of total parcels on our platform, up by 5.1 percentage points
year-on-year. With its fast and reliable service quality, HepsiJet
also more than doubled its external delivery volume year-on-year,
corresponding to a third of its total volume.
On the fintech front, we cemented our pioneering
credentials in the market by expanding the suite of affordability
and lending solutions that our customers have come to rely on in
today’s economic landscape. January marked a milestone for our
Company as we launched our in-house consumer finance loan facility.
Including financing from partner banks, the total financed
transaction volume through our platform reached TRY 8.1 billion by
the end of the first quarter. On the payments front, with Hepsipay,
online shopping becomes a seamless one-click process. We believe
Hepsipay is on the right path to becoming Türkiye’s leading digital
wallet with its 15.7 million Hepsipay wallet customers and 18.3
million stored cards, already integrated into the check-out of 28
retailers.
It is important to note that we are in a
challenging macroeconomic conjuncture with certain repercussions
for consumers. And yet, our platform preserves our relevance for
consumers’ purchases as their trusted household brand. Our
well-defined strategic priorities built on solid fundamentals allow
us to pursue sustainable and profitable growth. As we continue to
execute along these lines, we anticipate delivering GMV growth of
around 75% in Q2 2024 compared to the same quarter of last year, on
an unadjusted basis. With continued strict cost management in
place, we expect an EBITDA within the range of 1.8% to 2.0% of GMV
on an unadjusted basis in Q2 2024.
I thank our formidable team for their
dedication, our loyal customers for their trust in our brand, our
partners for their collaboration and support, and our shareholders
for their belief in our vision.”
Summary: Key Operational and Financial
Metrics
The following table sets forth a summary of the
key unaudited operating and unaudited financial data as of and for
the three months ended March 31, 2024 and March 31, 2023 prepared
in accordance with IFRS. Unless indicated otherwise, all financial
figures in the tables provided are inflation-adjusted (in
accordance with IAS 29).
|
(in TRY million unless otherwise
indicated) |
Three months ended March 31, |
|
unaudited |
|
2024 |
2023 |
y/y % |
|
GMV (TRY in billion) |
36.3 |
25.5 |
42.5% |
|
Marketplace GMV (TRY in billion) |
24.8 |
17.4 |
42.8% |
|
Share of Marketplace GMV (%) |
68.4% |
68.2% |
0.2pp |
|
Number of orders (million) |
29.3 |
24.1 |
21.7% |
|
Active Customers (million) |
12.1 |
11.9 |
1.4% |
|
Revenue |
11,309.6 |
7,800.5 |
45.0% |
|
Gross Contribution |
3,804.0 |
2,374.3 |
60.2% |
|
Gross Contribution margin (%) |
10.5% |
9.3% |
1.2pp |
|
Net loss for the period |
(130.7) |
(324.9) |
(59.8%) |
|
EBITDA |
289.4 |
12.2 |
2,272.1% |
|
EBITDA as a percentage of GMV (%) |
0.8% |
0.0% |
0.7pp |
| Net cash provided by
operating activities |
1,455.7 |
101.5 |
1,334.2% |
|
Free Cash Flow |
1,029.6 |
(259.3) |
n.m. |
Note: The abbreviation “n.m.” stands for not
meaningful throughout the press release.
Note that Gross Contribution, EBITDA and Free
Cash Flow are non-IFRS financial measures. See the “Presentation of
Financial and Other Information” section of this press release for
a definition of such non-IFRS measures, a discussion of the
limitations on their use, and reconciliations of non-IFRS measures
to the most directly comparable IFRS measures. See the definitions
of metrics such as GMV, Marketplace GMV, share of Marketplace GMV,
Gross Contribution margin, EBITDA as a percentage of GMV, number of
orders and Active Customer in the “Certain Definitions” section of
this press release.
Q2 2024 Outlook
The below forward-looking statements reflect
Hepsiburada’s expectations as of June 13, 2024, considering
year-to-date trends that could be subject to change, and involve
inherent risks which we are unable to control or foresee. The
financial outlook is based on management’s current views and
estimates with respect to existing market conditions. However,
there are several factors which may impact the current outlook,
including the inflationary environment both in Türkiye and
globally, local currency volatility, further tightening in monetary
policy, low consumer confidence, pressure on purchasing power,
regional geopolitical headwinds, the regulatory environment for our
activities in Türkiye and the evolving competitive landscape.
Management’s views and estimates are subject to change without
notice. See also the “Forward Looking Statements” section at the
end of this press release.
For the second quarter of 2024, we expect to
deliver IAS 29-Unadjusted GMV growth of around 75% compared to the
second quarter of 2023 and IAS 29-Unadjusted EBITDA as a percentage
of GMV within the range of 1.8% to 2.0%.
In 2024, we intend to remain focused on
sustainable and profitable growth with a prudent approach to
capital allocation.
Business and Strategy Highlights
As of March 31, 2024, the annual inflation rate
published by TurkStat was 68.5%, up from 50.5% as of March 31,
2023, and 64.8% as of the end of 2023. The monthly inflation rates
during the first quarter of 2024 were 6.7%, 4.5% and 3.2% in
January, February and March, respectively. The Consumer Confidence
Index fell by nearly 0.7 points on a yearly basis to 79.4 as of
March 31, 2024.
In Q1 2024, IAS 29-Unadjusted GMV increased by
137.8% to TRY 35.2 billion compared to TRY 14.8 billion in Q1 2023,
exceeding our guidance of approximately 120% by nearly 18
percentage points. Adjusted for inflation, GMV increased by 42.5%
to TRY 36.3 billion in Q1 2024 compared to TRY 25.5 billion in Q1
2023. The earthquake in Q1 2023 acted as a favorable comparable
base for Q1 2024.
For Hepsiburada, GMV growth is a function of the
growth in the number of orders and average order value. In Q1 2024,
we experienced order growth of 21.7% compared to Q1 2023, resulting
from the continued rise in order frequency and number of Active
Customers. Meanwhile, average order value grew by 95.4% in Q1 2024
compared to Q1 2023, outpacing average inflation of 68.5% as of
March 31, 2024. The faster average order value growth is
attributable mainly to the faster-than-inflation rise in average
selling prices in Q1 2024, partially boosted by the VAT increase in
2023.
Overall, our performance was also supported by
the appeal of our Hepsiburada Premium loyalty program, attractive
affordability solutions and data-driven marketing campaigns. Our
Net Promoter Score (“NPS”) of 73 in Q1 2024 compared to 70 in Q4
2023 (according to the results of market research conducted by
FutureBright on behalf of Hepsiburada) positioned us, once again,
as the number one most recommended e-commerce platform in
Türkiye.
In 2024, we remain committed to executing our
strategic priorities set in 2023 with minor adjustments to enhance
our approach. Currently, our strategic priorities include: a)
nurturing loyalty, b) capitalizing on our clear differentiation of
superior delivery services, c) capitalizing on our clear
differentiation with affordability and lending solutions and d)
offering our payment, lending and last-mile services to third
parties.
The discussion below elaborates on our progress
in Q1 2024 within each of our strategic priorities:
a) Nurturing loyalty
-
Central to our strategy is prioritizing customer loyalty and
retention. Our loyalty program, Hepsiburada Premium, has played a
key role in achieving this. Meanwhile, focusing on retention has
helped us to reduce and optimize our marketing and advertising
spend.
-
Hepsiburada Premium members almost tripled, reaching 2.5 million by
the end of Q1 2024 compared to 915 thousand by the end of Q1 2023.
By the end of May 2024, the total number of members had reached 2.6
million.
-
Hepsiburada Premium members continue to generate higher order
frequency than non-members. In Q1 2024, the monthly order frequency
for members was 36% higher than the order frequency generated
before joining the program.
-
Hepsiburada Premium members’ NPS was 81 in Q1 2024, according to
the results of market research conducted by the research company
FutureBright on behalf of Hepsiburada. This score remains higher
than the Company’s overall NPS, which we believe signifies a strong
satisfaction level among members.
b) Capitalizing on our clear differentiation
with superior delivery services
-
In Q1 2024, HepsiJet continued offering competitive services,
including our oversized delivery services that differentiate us in
the market. We believe that swift delivery is a core customer
expectation and, in Q1 2024, HepsiJet delivered 82% of the orders
placed through our retail arm (1P) within the next day (compared to
84% in Q1 2023).
-
HepsiJet is also a key component of our value proposition for our
merchants. In Q1 2024, HepsiJet delivered approximately 68% of our
total parcels (compared to 63% in Q1 2023).
-
In Q1 2024, HepsiJet had a customer satisfaction score of 87
according to our internal survey results, underscoring its service
excellence. Through HepsiJet, our customers enjoy flexible delivery
options and value added services including return from doorstep for
all purchases on our platform.
-
Our oversized package delivery service (HepsiJet XL) delivered 63%
of oversized parcels ordered through our platform in Q1 2024, up
from 60% in Q1 2023.
c) Capitalizing on our clear differentiation
with affordability and lending solutions
-
Leveraging our e-money and payment services licenses, we offer a
comprehensive suite of payment and affordability solutions on the
Hepsiburada platform as well as externally to other partner
retailers.
-
In January 2024, we took a further step to include our in-house
consumer finance loans in our affordability solutions offering. By
May 31, 2024, our wholly-owned subsidiary, Hepsifinans, had
provided over TRY 280 million in loans since its launch.
-
As of March 31, 2024, our BNPL solution had been used by over 365
thousand customers. Approximately 1.1 million orders have been
processed through our non-card affordability solutions (including
BNPL and shopping loans) over the past 12 months. Meanwhile, our
total financed transaction volume (including general purpose loans
and consumer finance loans) reached TRY 8.1 billion, with 55% of
this volume generated through our BNPL solution in Q1 2024 compared
to 30% in Q1 2023. In Q1 2024, orders made through our BNPL
solution and shopping loans accounted for 4.9% of total GMV in the
period, down from 5.6% in Q4 2023. This was mainly due to lower
lending willingness among banks combined with higher card-based
campaigns in number throughout February and March with the
expectation of a potential tightening of credit card solutions
following the Turkish elections in March 2024. We diligently manage
credit risk in our BNPL solution, while maintaining our focus on
growth optimization.
-
As of March 31, 2024, our wallet and payment gateway solution,
Hepsipay, registered approximately 15.3 million Hepsipay wallet
customers (representing users who have opened their wallet account
by giving the required consent to Hepsipay), up from 14.3 million
as of March 31, 2023. As of May 31, 2024, the number of Hepsipay
wallet customers had reached 15.7 million. Additionally, 18.3
million cards are stored in the wallets of Hepsipay customers.
- As of
March 31, 2024, 1.3 million Hepsipay prepaid cards had been issued
through the Hepsiburada mobile app. The Hepsipay prepaid card is
linked to the QR payment feature which allows customers to use it
at any off-line retailer that accepts QR payments. As of May 31,
2024, the number of Hepsipay cards issued exceeded 1.4 million. The
option for Hepsipay prepaid card holders to top up their e-wallets
by way of general purpose loans is available from six leading banks
in Türkiye. In April 2024, the automatic top-up feature went live
in the digital wallet.
d) Offering payment, lending and last-mile
delivery services to third parties
-
We believe that our strategy to extend our services and solutions
beyond our platform by offering them to other retailers benefits
both retail partners and customers. We see great potential for both
Hepsipay and HepsiJet to leverage their own assets and increase
their revenue contribution to our company.
-
HepsiJet today serves over two thousand external customers,
including household-name retailers. We believe HepsiJet is best
positioned to build on this momentum and grow its share in the
logistics market.
-
The share of external customer volume in HepsiJet’s operations
increased to 32.6% in Q1 2024, up from 22.1% in Q1 2023. The total
parcel volume of third parties delivered in Q1 2024 is 2.3 times
the volume in Q1 2023.
-
As of March 31, 2024, following the product launch in July 2023,
Hepsipay’s one-click check-out (“Pay with Hepsipay”) offering was
successfully integrated into the online checkout of 28 retailers.
By enabling payment with cards stored on the Hepsipay wallet,
Hepsipay has gained a share of these retailers’ online sales. We
believe that the envisaged growth in one-click checkout
integrations will become instrumental in Hepsipay’s off-platform
expansion.
ESG Actions
-
In Q1 2024, Hepsiburada continued to provide support in social,
commercial and economic areas.
-
Our “Trade and Technology Empowerment for the Earthquake Region”
program, launched in March 2023 following the earthquake, reached
approximately 17,340 merchants, with over 3,775 new businesses now
selling their products online through Hepsiburada. Active sellers
generated a trade volume exceeding TRY 5.2 billion. Our E-Commerce
Specialization Centers in Adana and Hatay support existing
merchants and organize training courses and programs for those new
to the e-commerce market, benefiting over a thousand merchants from
the region.
-
In February 2024, to commemorate the first anniversary of the
earthquake, Hepsiburada launched a campaign as part of our “A Smile
is Enough” project pledging to donate toys and books to children
for every order placed by customers on its platform regardless of
the order value. Through our “A Smile is Enough” project,
Hepsiburada has reached 235,500 children living in the affected
region. Further, Hepsiburada celebrated February 11, the
International Day of Women and Girls in Science, with high school
students at Ahbap Association’s science trucks in the earthquake
region, organizing various trainings.
-
The “Technology Empowerment for Women Entrepreneurs” (“TEWE”)
program reached an additional 2,506 women. To date, the TEWE
program has supported approximately 53 thousand women
entrepreneurs. Furthermore, as of March 31, 2024, the number of
women’s cooperatives on our platform has reached 267.
-
As part of the TEWE program, various NGO collaborations have been
established to provide sustainable support to the earthquake zone.
As of March 31, 2024, the number of women entrepreneurs and women’s
cooperatives in the impacted region had reached 3,419 and 40,
respectively.
-
As part of our ongoing social responsibility projects, Hepsiburada
has continued to provide food, medical supplies, and logistics
support to animal welfare associations.
Subsequent Events
Hepsiburada issued asset-backed
securities amounting to TRY 150 million
The first issuance of asset-backed securities
amounting to TRY 150 million, within the scope of the TRY
2 billion limit given by the Capital Markets Board to Pasha
Yatırım Bank Hepsiburada Varlık Finansmanı Fonu, settled on June 5,
2024. In this structure, Hepsiburada participated as the
originating entity with respect to its BNPL receivables. The issue
consists of four tranches with a maximum maturity of 147 days and
at an annual interest rate varying between 54% to 57% depending on
the maturity. Hepsiburada intends to use the funds raised through
this issue to sustainably grow its BNPL business and reduce its
impact on working capital.
Hepsiburada and Jumia join forces to
unlock broader product selection for African and Turkish
consumers
In June 2024, Hepsiburada entered into a
commercial partnership with Jumia Technologies AG (NYSE: JMIA)
(“Jumia”) pursuant to which Hepsiburada will facilitate access to
the Turkish market for merchants based in Africa by giving such
merchants the opportunity to sell their products via Hepsiburada’s
e-commerce platform to customers in Türkiye. Further, the
partnership allows Hepsiburada to sell its private label products
together with a selection of other Turkish brands on Jumia’s
platform in certain countries in the African region in which Jumia
operates.
Hepsiburada Financial
Review
Restatement of financial
information: Pursuant to IAS 29, the financial statements
of an entity whose functional currency is that of a
hyperinflationary economy are reported in terms of the measuring
unit current as of the reporting date of the financial statements.
All amounts included in the financial statements which are not
stated in terms of the measuring unit current as of the date of the
reporting period are restated applying the general price index. In
summary:
|
(i) |
Non-monetary items are restated from the date of acquisition to the
end of the reporting period. |
|
(ii) |
Monetary items that are already
expressed in terms of the monetary unit current at the end of the
reporting period are not restated. |
|
(iii) |
Comparative periods are stated in
terms of measuring unit current at the end of the reporting
period. |
|
(iv) |
All items in the statement of
comprehensive income/(loss) are stated in terms of the measuring
unit current as of the date of the financial statements, applying
the relevant (monthly) conversion factors. |
|
(v) |
The gain or loss on the net
monetary position is included in the statement of comprehensive
loss and separately disclosed. |
Note: All financial figures in
the tables provided are expressed in terms of the purchasing power
of the Turkish Lira on March 31, 2024 (in accordance with IAS 29)
unless otherwise indicated.
|
(in TRY million unless otherwise
indicated) |
Three months ended March 31, |
|
unaudited |
|
|
2024 |
2023 |
y/y % |
|
GMV (TRY in billion) |
36.3 |
25.5 |
42.5% |
| Marketplace
GMV (TRY in billion) |
24.8 |
17.4 |
42.8% |
| Share of
Marketplace GMV (%) |
68.4% |
68.2% |
0.2pp |
|
Revenue |
11,309.6 |
7,800.5 |
45.0% |
| Gross
Contribution |
3,804.0 |
2,374.3 |
60.2% |
| Gross
Contribution margin (%) |
10.5% |
9.3% |
1.2pp |
| Net loss for
the period |
(130.7) |
(324.9) |
(59.8%) |
|
EBITDA |
289.4 |
12.2 |
2,272.1% |
| EBITDA as a
percentage of GMV (%) |
0.8% |
0.0% |
0.7pp |
| Net cash
provided by operating activities |
1,455.7 |
101.5 |
1,334.2% |
|
Free Cash Flow |
1,029.6 |
(259.3) |
n.m. |
Note: Unless otherwise
indicated, all discussions and analysis provided in this section
are based on inflation-adjusted IFRS figures and non-IFRS
measures.
Revenue
|
(in TRY million, unaudited) |
Three months ended March 31, |
|
2024 |
2023 |
y/y % |
|
Sale of goods1 (1P) |
7,815.6 |
5,676.4 |
37.7% |
|
Marketplace revenue2 (3P) |
1,470.5 |
1,117.2 |
31.6% |
|
Delivery service revenue |
1,602.3 |
821.9 |
95.0% |
|
Other |
421.3 |
185.0 |
127.7% |
|
Revenue |
11,309.6 |
7,800.5 |
45.0% |
1: In 1P direct sales model, we act as a
principal and initially recognize revenue from the sales of goods
on a gross basis at the time of delivery of the goods to our
customers.2: In the 3P marketplace model, revenues are recorded on
a net basis, mainly consisting of marketplace commission,
transaction fees and other contractual charges to the
merchants.
Our revenue increased by 45.0% to TRY 11,309.6
million in Q1 2024 compared to TRY 7,800.5 million in Q1 2023. This
was mainly due to a 37.7% increase in our (1P) revenue (comprising
69.1% of total revenue) and a 31.6% increase in Marketplace revenue
(3P) (comprising 13.0% of total revenue), compared to Q1 2023. Our
delivery service revenue, comprising 14.2% of total revenue, rose
by 95.0% compared to Q1 2023. Meanwhile, other revenue increased by
127.7% compared to Q1 2023 primarily as a result of a 102.3% growth
in our advertising services (HepsiAd) and a 4.1x growth in our
Hepsiburada Premium subscription revenues in addition to the rise
in our fulfillment service revenues.
While GMV increased by 42.5% in Q1 2024 compared
to Q1 2023, the 1P and 3P revenue growth during this period was
36.7%. Faster GMV growth compared to revenue growth was due mainly
to the increase in VAT across all goods and services in early July
2023, resulting in an increase in average selling prices throughout
the platform.
The 95.0% increase in delivery service revenue
compared to Q1 2023 was mainly due to i) a significant increase in
delivery service revenue from the off-platform customers of
Hepsijet, ii) annual rises in unit delivery service charges to our
merchants (surpassing inflation), and iii) an increase in the
number of parcels delivered.
Gross Contribution
|
(in TRY million unless indicated otherwise,
unaudited) |
Three months ended March 31, |
|
2024 |
2023 |
y/y % |
|
Revenue |
11,309.6 |
7,800.5 |
45.0% |
|
Cost of inventory sold |
(7,505.6) |
(5,426.2) |
38.3% |
|
Gross Contribution |
3,804.0 |
2,374.3 |
60.2% |
|
Gross Contribution margin (% of GMV) |
10.5% |
9.3% |
1.2pp |
The Gross Contribution margin improved by 1.2pp
to 10.5% in Q1 2024 compared to 9.3% in Q1 2023. This margin
improvement was mainly attributable to a 1.2pp increase in delivery
service revenue from off-platform customers and a 0.4pp improvement
derived from higher other revenue, partially offset by a 0.3pp
decline in the 3P margin (due to lower promotional activity in Q1
2023 after the earthquake in February) and a 0.1pp decline in the
1P margin mainly due to the impact of higher inflation on
inventories.
The table below shows the monthly inflation
rates in 2024 and 2023.
|
Consumer inflation Monthly
(2003=100) |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
|
2024 |
7% |
5% |
3% |
- |
- |
- |
- |
- |
- |
- |
- |
- |
|
2023 |
7% |
3% |
2% |
2% |
0% |
4% |
9% |
9% |
5% |
3% |
3% |
3% |
Source: Data as announced by TurkStat
Operating Expenses
The table below shows our operating expenses for
the three months ended March 31, 2024 and 2023 in absolute terms
and as a percentage of GMV:
|
(in TRY million unless indicated otherwise,
unaudited) |
Three months ended March 31, |
|
2024 |
2023 |
y/y% |
|
Cost of inventory sold |
(7,505.6) |
(5,426.2) |
38.3% |
| % of
GMV |
(20.7%) |
(21.3%) |
0.6pp |
|
Shipping and packaging expenses |
(1,227.0) |
(743.3) |
65.1% |
| % of
GMV |
(3.4%) |
(2.9%) |
(0.5pp) |
|
Payroll and outsource staff expenses |
(1,197.2) |
(824.0) |
45.3% |
| % of
GMV |
(3.3%) |
(3.2%) |
(0.1pp) |
|
Advertising expenses |
(714.8) |
(476.8) |
49.9% |
| % of
GMV |
(2.0%) |
(1.9%) |
(0.1pp) |
|
Technology expenses |
(130.5) |
(101.0) |
29.2% |
| % of
GMV |
(0.4%) |
(0.4%) |
0.0pp |
|
Depreciation and amortization |
(387.2) |
(299.7) |
29.2% |
| % of
GMV |
(1.1%) |
(1.2%) |
0.1pp |
|
Other operating expenses, net |
(245.2) |
(216.9) |
13.0% |
| % of
GMV |
(0.7%) |
(0.9%) |
0.2pp |
|
Net operating expenses |
(11,407.5) |
(8,087.9) |
41.0% |
|
Net operating expenses as a % of GMV |
(31.4%) |
(31.8%) |
0.3pp |
Net operating expenses increased by 41.0% to TRY
11,407.5 million in Q1 2024 compared to TRY 8,087.9 million in Q1
2023. As a percentage of GMV, our net operating expenses declined
0.3pp mainly due to a 0.6pp decrease in cost of inventory sold, a
0.2pp decrease in other operating expenses, net, and a 0.1pp
decrease in depreciation and amortization, in each case as a
percentage of GMV. This was partially offset by a 0.5pp rise in
shipping and packaging expenses, a 0.1pp rise in advertising
expenses and a 0.1pp rise in payroll and outsource staff expenses,
in each case as a percentage of GMV.
The 0.6pp decrease in cost of inventory sold as
a percentage of GMV was mainly due to i) a 0.2pp shift in GMV mix
towards Marketplace, and ii) the increase in VAT across all goods
and services in early July 2023.
The 0.5pp increase in shipping and packaging
expenses as a percentage of GMV was mainly driven by the increase
in the number of parcels delivered (including those of HepsiJet’s
off-platform customers) and a rise in delivery fees per unit,
outpacing the average inflation in Q1 2024 compared to Q1 2023.
Financial Income
|
(in TRY million, unaudited) |
Three months ended March 31, |
|
2024 |
2023 |
y/y % |
|
Foreign currency exchange gains |
342.0 |
109.0 |
213.8% |
|
Interest income on credit sales |
284.2 |
63.6 |
346.9% |
|
Interest income on time deposits |
145.8 |
77.0 |
89.4% |
|
Fair value gains on financial assets measured at fair value |
39.4 |
1.5 |
2,493.6% |
|
Interest income on financial investments |
0.7 |
0.0 |
n.m. |
|
Other |
7.0 |
21.3 |
(66.7%) |
|
Financial income |
819.1 |
272.4 |
200.7% |
Our financial income increased by 200.7%, or TRY
546.7 million, to TRY 819.1 million in Q1 2024 compared to TRY
272.4 million in Q1 2023. The rise in financial income was mainly
driven by the increase in interest income on credit sales and time
deposits as a result of higher annual interest rates. The TRY 233.0
million increase in foreign currency exchange gains from our U.S.
dollar denominated bank deposits and financial investments due to
the higher U.S. dollar/TRY appreciation during Q1 2024 compared to
Q1 2023 also contributed to the increase in interest income.
Financial Expenses
|
(in TRY million, unaudited) |
Three months ended March 31, |
|
2024 |
2023 |
y/y % |
|
Commission expenses due to early collection of credit card
receivables |
(724.7) |
(321.2) |
125.6% |
|
Interest expenses on purchases |
(364.8) |
(54.5) |
569.4% |
|
Foreign currency exchange losses |
(150.7) |
(87.6) |
72.0% |
|
Interest expenses on bank borrowings and lease liabilities |
(99.1) |
(61.7) |
60.6% |
|
Other |
(4.2) |
(0.7) |
500.0% |
|
Financial expenses |
(1,343.5) |
(525.7) |
155.6% |
Our financial expenses increased by 155.6%, or
TRY 817.8 million, to TRY 1,343.5 million in Q1 2024 compared to
TRY 525.7 million in Q1 2023, primarily attributable to a TRY 403.5
million increase in commission expenses due to early collection of
credit card receivables and a TRY 310.3 million increase in
interest expenses on purchases as a result of a rise in annual
effective interest rates and an increase in purchased goods during
Q1 2024, each compared to Q1 2023.
Net Loss for the Period
Net loss for the period was TRY 130.7 million in
Q1 2024, down from a net loss of TRY 324.9 million in Q1 2023. This
was mainly attributable to TRY 277.1 million improvement in EBITDA
and TRY 275.5 million in monetary gain against TRY 271.0 million
increase in net financial expenses (net of financial income) and
TRY 87.5 million increase in depreciation and amortization.
EBITDA
EBITDA was TRY 289.4 million in Q1 2024 compared
to TRY 12.2 million in Q1 2023, corresponding to 0.8% EBITDA as a
percentage of GMV in Q1 2024. This corresponded to a 0.7pp
improvement in EBITDA as a percentage of GMV in Q1 2024 compared to
Q1 2023. This improvement was driven by a 1.2pp rise in Gross
Contribution margin and a 0.2pp decline in other operating
expenses, net as a percentage of GMV, partially offset by a 0.5pp
rise in shipping and packaging expenses and a 0.1pp rise in
advertising expenses and a 0.1pp rise in payroll and outsource
staff expenses, in each cases a percentage of GMV.
Net Working Capital
Net working capital was negative TRY 6,465.1
million as of March 31, 2024 compared to negative TRY 6,796.3
million as of December 31, 2023. The TRY 331.2 million change in
negative net working capital was mainly driven by a TRY 231.3
million increase in trade receivables, a TRY 271.0 million increase
in inventories and a TRY 189.5 million decrease in trade payables
and payables to merchants; partially offset by a TRY 197.5 million
increase in contract liabilities and merchant advances and TRY
128.0 million increase in wallet deposits. The increase in trade
receivables was mainly due to a higher BNPL and credit card
receivables balance. The increase in inventories was due to longer
inventory turnover days as of March 31, 2024 compared to December
31, 2023. The increase in contract liabilities and merchant
advances was mainly due to undelivered orders as of March 31, 2024
as a result of high number of orders in the last week of March,
while the decrease in trade payables resulted primarily from a
shift in the 1P GMV mix towards categories with shorter payment
terms.
Cash Flow from Operating Activities
Our net cash provided by operating activities in
Q1 2024 at TRY 1,455.7 million comprised a TRY 130.7 million net
loss (Q1 2023: net loss of TRY 324.9 million), a negative TRY 443.0
million change in negative net working capital (Q1 2023: negative
TRY 1,220.9 million) and a TRY 2,029.5 million change in other
items (comprising non-cash items such as provisions and
depreciation expenses as well as certain non-operating items such
as financial income & expenses, non-operating monetary gains
& losses and unrealized foreign exchange differences) (Q1 2023:
TRY 1,647.2 million). The change in net working capital is
further disclosed in the “Net Working Capital” section.
Net cash provided by operating activities rose
by TRY 1,354.3 million to TRY 1,455.7 million in Q1 2024
compared to net cash provided by operating activities in Q1 2023 of
TRY 101.5 million. This was mainly due to a strong EBITDA
performance of TRY 277.1 million and increase in change in net
working capital of TRY 777.8 million.
Free Cash Flow
Our free cash flow increased to TRY 1,029.6
million in Q1 2024 from negative TRY 259.3 million in Q1 2023. The
TRY 1,288.9 million improvement was mainly due to the increase in
cash flows generated from operating activities offset by TRY 65.4
million increase in capex.
Total Cash and Financial
Investments
Total cash and cash equivalents was at TRY
3,562.9 million as of March 31, 2024 compared to TRY 6,328.5
million as of December 31, 2023. The TRY 2,765.6 million decrease
was mainly due to higher cash used in financing activities and
purchases of financial investments and slower appreciation of the
USD/TRY exchange rate against the three-month inflation.
Total financial investments as of March 31, 2024
amounted to TRY 4,402.9 million compared to TRY 1,982.3 million as
of December 31, 2023. Our financial investments consist of a
financial asset measured at fair value through profit or loss and
financial assets carried at amortized costs, including investment
funds and Eurobonds.
Bank Borrowings
Our short-term bank borrowings are utilized to
facilitate supplier and merchant financing as well as for our
short-term liquidity needs in the ordinary course of our
operations. Our short-term borrowings increased to TRY 313.5
million as of March 31, 2024, from TRY 211.1 million as of December
31, 2023. As of March 31, 2024, supplier and merchant financing
loans corresponded to TRY 53.4 million of the short-term bank
borrowings compared to TRY 20.4 million as of December 31, 2023.
Our long-term borrowings decreased from TRY 3.2 million as of
December 31, 2023 to TRY 1.2 million as of March 31, 2024.
Conference Call Details
The Company’s management will host an analyst
and investor conference call and live webcast to discuss its
unaudited financial results today, Thursday, June 13, 2024 at 4.00
p.m. Istanbul time / 2.00 p.m. London / 9.00 a.m. New York
time.
The live webcast can be accessed via
https://87399.themediaframe.eu/links/hepsiburada240613.html
Telephone Participation Dial in
Details:
|
•Türkiye: |
+ 90 212 900
3719 |
| •UK &
International: |
+ 44 (0) 203 059 5872 |
| •USA: |
+ 1 516 447 5632 |
Participants may choose any of the above numbers
to participate should they wish to ask questions.
The Company’s results
presentation will be available at the Hepsiburada Investor
Relations website https://investors.hepsiburada.com on June 13,
2024.
Replay: Following the call, a
replay will be available on the Hepsiburada Investor Relations
website https://investors.hepsiburada.comD-MARKET
Electronic Services & Trading
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 March 2024
unless otherwise indicated.)
|
|
31 March
2024 (unaudited) |
31 December
2023 (unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
| Cash and
cash equivalents |
3,562,870 |
6,328,500 |
|
Restricted cash |
102,642 |
192,516 |
| Financial
investments |
4,402,874 |
1,982,251 |
| Trade
receivables |
2,962,044 |
2,730,777 |
| Due from
related parties |
10,004 |
10,566 |
| Loan
receivables |
46,866 |
- |
|
Inventories |
4,833,247 |
4,562,258 |
| Contract
assets |
34,036 |
25,810 |
| Other
current assets |
891,832 |
994,510 |
|
|
|
|
|
Total current assets |
16,846,415 |
16,827,188 |
| |
|
|
|
Non-current assets: |
|
|
| Property
and equipment |
575,595 |
578,474 |
|
Intangible assets |
2,220,409 |
2,132,803 |
| Right of
use assets |
629,783 |
650,712 |
| Loan
receivables |
10,853 |
920 |
| Other
non-current assets |
35,569 |
38,800 |
|
|
|
|
|
Total non-current assets |
3,472,209 |
3,401,709 |
|
|
|
|
|
Total assets |
20,318,624 |
20,228,897 |
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
| Bank
borrowings |
313,479 |
211,109 |
| Lease
liabilities |
128,595 |
177,858 |
| Wallet
deposits |
344,816 |
216,794 |
| Trade
payables and payables to merchants |
11,964,643 |
12,154,170 |
| Due to
related parties |
6,690 |
5,337 |
|
Provisions |
83,413 |
94,039 |
| Employee
benefit obligations |
190,998 |
333,006 |
| Contract
liabilities and merchant advances |
1,836,561 |
1,639,043 |
| Other
current liabilities |
918,558 |
870,329 |
|
|
|
|
|
Total current liabilities |
15,787,753 |
15,701,685 |
| |
|
|
|
Non-current assets: |
|
|
|
Bank borrowings |
1,151 |
3,232 |
| Lease
liabilities |
182,454 |
140,170 |
| Employee
benefit obligations |
111,222 |
119,992 |
|
Other non-current liabilities |
541,415 |
463,520 |
|
|
|
|
|
Total non-current liabilities |
836,242 |
726,914 |
|
Equity: |
|
|
| Share
capital |
573,777 |
573,777 |
| Other
capital reserves |
758,899 |
733,805 |
| Share
premiums |
16,665,088 |
16,665,088 |
|
Treasury shares |
(195,427) |
(195,427) |
|
Accumulated deficit |
(14,107,708) |
(13,976,945) |
|
|
|
|
|
Total equity |
3,694,629 |
3,800,298 |
|
Total equity and liabilities |
20,318,624 |
20,228,897 |
D-MARKET Electronic Services &
Trading
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(Amounts expressed in thousands of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 March 2024
unless otherwise indicated. Unaudited.)
|
|
Three months ended |
|
|
31 March 2024 |
31 March 2023 |
|
|
(unaudited) |
(unaudited) |
| |
|
|
|
Revenues |
11,309,633 |
7,800,470 |
| |
|
|
|
Operating expenses |
|
|
| Cost of
inventory sold |
(7,505,589) |
(5,426,189) |
| Shipping
and packaging expenses |
(1,226,951) |
(743,339) |
| Payroll
and outsource staff expenses |
(1,197,219) |
(824,043) |
|
Advertising expenses |
(714,785) |
(476,785) |
|
Technology expenses |
(130,492) |
(100,977) |
|
Depreciation and amortization |
(387,182) |
(299,726) |
| Other
operating expenses |
(306,199) |
(260,971) |
| Other
operating income |
60,953 |
44,060 |
|
|
|
|
|
Operating loss |
(97,831) |
(287,500) |
| |
|
|
| Financial
income |
819,093 |
272,288 |
| Financial
expenses |
(1,343,470) |
(525,672) |
| Monetary
gains |
491,474 |
215,966 |
|
|
|
|
|
Loss before income taxes |
(130,734) |
(324,918) |
|
|
|
|
| Taxation
on income |
- |
- |
|
|
|
|
|
Loss for the period |
(130,734) |
(324,918) |
| |
|
|
|
Basic and diluted income/(loss) per share |
(0.40) |
(1.00) |
| |
|
|
|
Other comprehensive loss:Items that will
not be reclassified to |
|
|
|
profit or loss in subsequent
period: |
|
|
|
Actuarial gains/(losses) arising on remeasurement of |
|
|
|
post-employment benefits |
(30) |
(23,561) |
|
|
|
|
|
Items that will be reclassified to |
|
|
|
profit or loss in subsequent
period: |
|
|
|
Changes in the fair value of debt instruments at fair value through
other comprehensive income |
- |
- |
|
|
|
|
|
Total comprehensive loss for the period |
(130,764) |
(348,479) |
D-MARKET Electronic Services &
Trading
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts expressed in thousands of Turkish lira (TRY)
in terms of the purchasing power of the TRY at 31 March 2024 unless
otherwise indicated. Unaudited.)
|
|
1 January – |
1 January – |
| 31
March 2024 |
31
March2023 |
|
|
(unaudited) |
(unaudited) |
| Loss
before income taxes |
(130,734) |
(324,918) |
|
Adjustments to reconcile income before income taxes to cash
flows from operating activities: |
2,029,501 |
1,647,247 |
| Interest
and commission expenses |
1,188,599 |
497,067 |
|
Depreciation and amortization |
387,182 |
299,726 |
| Interest
income on time deposits |
(145,783) |
(76,967) |
| Interest
income on financial investments |
(657) |
- |
| Interest
income on credit sales |
(284,188) |
(63,585) |
| Provision
for unused vacation liability |
34,061 |
(3,229) |
| Provision
for personnel bonus |
138,731 |
57,627 |
| Provision
for legal cases |
536 |
2,444 |
| Provision
for doubtful receivables |
30,503 |
12,563 |
| Provision
for impairment of trade goods, net |
21,201 |
18,791 |
| Provision
for post-employment benefits |
15,053 |
3,267 |
| Provision
for share based payment |
25,094 |
38,601 |
| Fair
value gains of financial investments |
(39,371) |
(1,518) |
| Provision
for Turkish Capital Markets Board fee |
734 |
- |
| Net
foreign exchange differences |
(236,928) |
(110,728) |
| Monetary
gains on provisions |
(70,474) |
(126,906) |
| Monetary
losses on non-operating activities |
965,208 |
1,100,094 |
|
Changes in net working capital |
|
|
| Change in
trade payables and payables to merchants |
(108,311) |
(1,394,014) |
| Change in
inventories |
(463,305) |
63,986 |
| Change in
trade receivables |
(215,143) |
338,979 |
| Change in
contract liabilities and merchant advances |
188,629 |
(145,116) |
| Change in
contract assets |
(8,226) |
(6,444) |
| Change in
other liabilities |
254,150 |
(80,942) |
| Change in
other assets and receivables |
138,983 |
211,315 |
| Change in
due from related parties |
561 |
(320) |
| Change in
due to related parties |
1,353 |
10,784 |
|
Post-employment benefits paid |
(7,779) |
(12,664) |
| Payments
for concluded litigation |
(4,993) |
(2,078) |
| Payments
for personnel bonus |
(217,344) |
(202,164) |
| Payments
for unused vacation liabilities |
(1,605) |
(2,193) |
|
Net cash provided by operating activities |
1,455,737 |
101,458 |
|
Investing activities: |
|
|
| Purchases
of property and equipment and intangible assets |
(429,051) |
(362,437) |
| Proceeds
from sale of property and equipment |
2,892 |
1,649 |
| Purchase
of financial investments |
(5,033,121) |
- |
| Proceeds
from sale of financial investments |
2,588,076 |
31,056 |
| Interest
received on credit sales |
256,884 |
63,585 |
| Interest income on time deposits and financial investments |
141,210 |
84,968 |
|
Net cash used in by investing activities |
(2,473,110) |
(181,179) |
|
Financing activities: |
|
|
| Proceeds
from borrowings |
249,703 |
27,553 |
| Repayment
of borrowings |
(121,355) |
(12,092) |
| Interest
and commission paid |
(1,072,612) |
(470,449) |
| Lease
payments |
(76,362) |
(87,487) |
|
Net cash used in financing activities |
(1,020,626) |
(542,475) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
(2,037,999) |
(622,196) |
|
|
|
|
|
Cash and cash equivalents at 1 January |
6,327,538 |
9,972,250 |
| Effects of inflation on cash
and cash equivalents |
(757,313) |
(1,098,328) |
| Effects
of exchange rate changes on cash and cash equivalents and
restricted cash |
25,109 |
121,678 |
|
Cash and cash equivalents at 31 March |
3,557,335 |
8,373,404 |
Presentation of Financial and Other
Information
Use of Non-IFRS Financial
Measures
Certain parts of this press release contain
non-IFRS financial measures which are unaudited supplementary
measures and are not required by, or presented in accordance with,
IFRS or any other generally accepted accounting principles. Such
measures are IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross
Contribution, IAS 29-Unadjusted EBITDA, EBITDA, Gross Contribution,
Free Cash Flow and Net Working Capital. We define:
- IAS 29-Unadjusted
Revenue as revenue presented on an unadjusted for
inflation basis;
- IAS 29-Unadjusted Gross
Contribution as Gross Contribution presented on an
unadjusted for inflation basis;
- IAS 29-Unadjusted
EBITDA as EBITDA presented on an unadjusted for inflation
basis;
- EBITDA as profit
or loss for the period plus taxation on income less financial
income plus financial expenses, plus depreciation and amortization,
plus monetary gains/(losses);
- Gross Contribution
as revenues less cost of inventory sold;
- Free Cash Flow as
net cash provided by operating activities less capital expenditures
plus proceeds from sale of property and equipment; and
- Net
Working Capital as current assets (excluding cash, cash
equivalents and financial investments) minus current liabilities
(excluding current bank borrowings and current lease
liabilities).
You should not consider them as: (a) an
alternative to operating profit or net profit (net income) as
determined in accordance with IFRS or other generally accepted
accounting principles, or as measures of operating performance; (b)
an alternative to cash flows from operating, investing or financing
activities, as determined in accordance with IFRS or other
generally accepted accounting principles, or as a measure of our
ability to meet liquidity needs; or (c) an alternative to any other
measures of performance under IFRS or other generally accepted
accounting principles.
These measures are used by our management to
monitor the underlying performance of the business and our
operations. However, not all companies calculate these measures in
an identical manner and, therefore, our presentation may not be
comparable with similar measures used by other companies. As a
result, prospective investors should not place undue reliance on
this data.
This section includes a reconciliation of
certain of these non-IFRS measures to the closest IFRS measure.
EBITDA is a supplemental non-IFRS financial
measure that is not required by, or presented in accordance with,
IFRS. We have included EBITDA in this press release because it is a
key measure used by our management and board of directors to
evaluate our operating performance, generate future operating plans
and make strategic decisions regarding the allocation of capital.
In particular, the exclusion of certain expenses and, from the date
of applicability of IAS 29, related monetary gains/(losses), in
calculating EBITDA facilitates operating performance comparability
across reporting periods by removing the effect of non-cash
expenses (including monetary gains/(losses)) and non-operating
expense/(income). One of the objectives of IAS 29 is to account for
the financial gain or loss that arises from holding monetary assets
or liabilities during a reporting period (i.e. the monetary
gains/(losses)). Therefore, the monetary gains/(losses) are
excluded from EBITDA for a proper comparison of the operational
performance of the Company. Accordingly, we believe that EBITDA
provides useful information to investors in understanding and
evaluating our operating results in the same manner as our
management and board of directors.
Management uses EBITDA:
- as a measurement
of operating performance because it assists us in comparing our
operating performance on a consistent basis, as it removes the
impact of non-cash and non-operating items;
- for planning
purposes, including the preparation of our internal annual
operating budget and financial projections; and
- to evaluate the
performance and effectiveness of our strategic initiatives.
EBITDA has limitations as a financial measure,
including that other companies may calculate EBITDA differently,
which reduces its usefulness as a comparative measure and you
should not consider it in isolation or as a substitute for
profit/(loss) for the period, as a profit measure or other analysis
of our results as reported under IFRS.
The following table shows the reconciliation of
EBITDA to net loss for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 March 2024.
Unaudited.
|
|
Three months ended March 31, |
|
|
2024 |
2023 |
|
Net loss for the period |
(130.7) |
(324.9) |
|
Taxation on income |
- |
- |
|
Financial income |
819.1 |
272.3 |
|
Financial expenses |
(1,343.5) |
(525.7) |
|
Depreciation and amortization |
(387.2) |
(299.7) |
|
Monetary gains |
491.5 |
216.0 |
|
EBITDA |
289.4 |
12.2 |
Gross contribution is a supplemental non-IFRS
financial measure that is not required by, or presented in
accordance with, IFRS. We have included gross contribution in this
press release because it is a key measure used by our management
and board of directors to evaluate our operational profitability as
it reflects direct costs of products sold to our buyers.
Accordingly, we believe that gross contribution provides useful
information to investors in understanding and evaluating our
operating results in the same manner as our management and board of
directors.
Gross contribution has limitations as a
financial measure, including that other companies may calculate
gross contribution differently, which reduces its usefulness as a
comparative measure and you should not consider it in isolation or
as a substitute for profit/(loss) for the period, as a profit
measure or other analysis of our results as reported under
IFRS.
The following table shows the reconciliation of
gross contribution to revenue for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 March 2024.
Unaudited.
|
|
Three months ended March 31, |
|
|
2024 |
2023 |
|
Revenue |
11,309.6 |
7,800.5 |
| Cost of
inventory sold |
(7,505.6) |
(5,426.2) |
|
Gross Contribution |
3,804.0 |
2,374.3 |
IAS 29-Unadjusted Revenue, IAS 29-Unadjusted
Gross Contribution and IAS 29-Unadjusted EBITDA are supplemental
non-IFRS financial measures that are not required by, or presented
in accordance with, IFRS. We have included IAS 29-Unadjusted
Revenue, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted
EBITDA in this press release because we believe their inclusion
facilitates the understanding of Revenue, Gross Contribution and
EBITDA restated in accordance with IAS 29 as well as our year on
year GMV growth and profitability guidance.
IAS 29-Unadjusted Revenue, IAS 29-Unadjusted
Gross Contribution and IAS 29-Unadjusted EBITDA have limitations as
financial measures, including that other companies may calculate
IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution and
IAS 29-Unadjusted EBITDA differently, which reduces their
usefulness as a comparative measure and you should not consider
them in isolation or as substitutes for revenue or profit/(loss)
for the period, as revenue or profit measures or other analysis of
our results as reported under IFRS.
The following table shows the reconciliation of
IAS 29-Unadjusted Revenue to revenue for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY). Unaudited.
|
|
Three months ended March 31, |
|
|
2024 |
2023 |
|
Revenue |
11,309.6 |
7,800.5 |
| Reversal
of IAS 29 adjustment |
397.0 |
3,267.0 |
|
IAS 29-Unadjusted Revenue |
10,912.6 |
4,533.5 |
The following table shows the reconciliation of
IAS 29-Unadjusted Gross Contribution to revenue for the periods
presented.
Amounts expressed in millions of Turkish lira
(TRY). Unaudited.
|
|
Three months ended March 31, |
|
|
2024 |
2023 |
|
Revenue |
11,309.6 |
7,800.5 |
| Cost of
inventory sold |
(7,505.6) |
(5,426.2) |
|
Gross Contribution |
3,804.0 |
2,374.3 |
| Reversal
of IAS 29 adjustment |
(421.0) |
822.7 |
| IAS 29 -
Unadjusted Gross Contribution |
4,225.0 |
1,551.6 |
The following tables show the reconciliation of
IAS 29-Unadjusted EBITDA to net loss for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY). Unaudited.
|
|
Three months ended |
|
|
31 March 2024 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted31 March
2024 |
31 March 2023 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted31 March
2023 |
| Net income/ (loss) for the
period |
(130.7) |
(234.1) |
103.4 |
(324.9) |
(244.8) |
(80.1) |
| Taxation on income |
- |
- |
- |
- |
- |
- |
| Financial income |
819.1 |
31.6 |
787.5 |
272.3 |
113.5 |
158.8 |
| Financial expenses |
(1,343.5) |
(15.5) |
(1,328.0) |
(525.7) |
(215.2) |
(310.5) |
| Depreciation and
amortization |
(387.2) |
(195.8) |
(191.4) |
(299.7) |
(195.4) |
(104.3) |
| Monetary gains |
491.5 |
491.5 |
0.0 |
216.0 |
216.0 |
0.0 |
|
IAS 29-Unadjusted EBITDA |
289.4 |
(545.9) |
835.3 |
12.2 |
(163.7) |
175.9 |
Free Cash Flow is a supplemental non-IFRS
financial measure that is not required by, or presented in
accordance with, IFRS. We have included Free Cash Flow in this
press release because it is an important indicator of our liquidity
as it measures the amount of cash we generate/(use) and provides
additional perspective on whether we have sufficient cash after
funding our operations and capital expenditures. Accordingly, we
believe that Free Cash Flow provides useful information to
investors in understanding and evaluating our operating results in
the same manner as our management and board of directors.
Free Cash Flow has limitations as a financial
measure, and you should not consider it in isolation or as
substitutes for net cash used in operating activities as a measure
of our liquidity or other analysis of our results as reported under
IFRS. There are limitations to using non-IFRS financial measures,
including that other companies may calculate Free Cash Flow
differently. Because of these limitations, you should consider Free
Cash Flow alongside other financial performance measures, including
net cash used in operating activities, capital expenditures and our
other IFRS results.
The following table shows the reconciliation of
Free Cash Flow to net cash provided by in operating activities for
the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 March 2024.
Unaudited.
|
|
Three months ended March 31, |
|
|
2024 |
2023 |
| Net cash provided by operating
activities |
1,455.7 |
101.5 |
|
Capital expenditures |
(429.1) |
(362.4) |
| Proceeds from the sale of
property and equipment |
3.0 |
1.6 |
|
Free Cash Flow |
1,029.6 |
(259.3) |
Net Working Capital is a supplemental non-IFRS
financial measure that is not required by, or presented in
accordance with, IFRS. Starting from Q4 2021, we have revised the
definition of Net Working Capital to include the “financial
investments” balance on our balance sheet as at December 31,
2021. As we believe financial investments are cash-like item
by nature, we deducted from current assets along with cash and cash
equivalents.
We have included Net Working Capital in this
press release because it is used to measure the short-term
liquidity of a business, and can also be used to obtain a general
impression of the ability of company management to utilize assets
in an efficient manner. Net Working Capital is critical since it is
used to keep our business operating smoothly and meet all our
financial obligations in the short-term. Accordingly, we believe
that Net Working Capital provides useful information to investors
in understanding and evaluating how we manage our short-term
liabilities.
The following table shows the reconciliation of
Net Working Capital to current assets and current liabilities as of
the dates indicated:
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 March 2024.
Unaudited.
|
|
As of March 31, 2024 |
As of December 31, 2023 |
| Current assets |
16,846.4 |
16,827.2 |
| Cash and cash equivalents |
(3,562.9) |
(6,328.5) |
| Financial investments |
(4,402.9) |
(1,982.3) |
| Current liabilities |
(15,787.8) |
(15,701.7) |
| Bank borrowings, current |
313.5 |
211.1 |
| Lease liabilities, current |
128.6 |
177.9 |
|
Net Working Capital |
(6,465.1) |
(6,796.3) |
BREAKDOWN OF THE COMPARATIVE FIGURES
RESTATED BY INFLATION CONSOLIDATED BALANCE
SHEETS(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 March 2024.)
|
|
Restatement Method |
Unaudited Unadjusted31 March
2024 |
IAS 29Adjustment |
Unaudited Adjusted31 March
2024 |
Unaudited Unadjusted31 Dec
2023 |
IAS 29Adjustment |
Unaudited Adjusted31 Dec
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
| Cash and cash
equivalents |
1 |
3,562,870 |
- |
3,562,870 |
5,500,000 |
828,500 |
6,328,500 |
| Restricted
cash |
1 |
102,642 |
- |
102,642 |
167,312 |
25,204 |
192,516 |
| Financial
investments |
1 |
4,402,874 |
- |
4,402,874 |
1,722,744 |
259,507 |
1,982,251 |
| Trade
receivables |
1 |
2,962,044 |
- |
2,962,044 |
2,373,275 |
357,502 |
2,730,777 |
| Due from related
parties |
1 |
10,004 |
- |
10,004 |
9,182 |
1,384 |
10,566 |
| Loan
receivables |
1 |
46,866 |
- |
46,866 |
- |
- |
- |
| Inventories |
2 |
4,626,765 |
206,482 |
4,833,247 |
3,795,869 |
766,389 |
4,562,258 |
| Contract
assets |
1 |
34,036 |
- |
34,036 |
22,431 |
3,379 |
25,810 |
| Other current
assets |
3 |
825,628 |
66,204 |
891,832 |
828,078 |
166,432 |
994,510 |
|
Total current assets |
|
16,573,729 |
272,686 |
16,846,415 |
14,418,891 |
2,408,297 |
16,827,188 |
|
Non-current assets: |
|
|
|
|
|
|
|
| Property and
equipment |
2 |
288,872 |
286,723 |
575,595 |
256,788 |
321,686 |
578,474 |
| Intangible
assets |
2 |
1,402,204 |
818,205 |
2,220,409 |
1,220,910 |
911,893 |
2,132,803 |
| Right of use
assets |
2 |
325,198 |
304,585 |
629,783 |
290,952 |
359,760 |
650,712 |
| Loan
receivables |
1 |
10,853 |
- |
10,853 |
799 |
121 |
920 |
|
Other non-current assets |
3 |
22,440 |
13,129 |
35,569 |
22,706 |
16,094 |
38,800 |
|
Total non-current assets |
|
2,049,567 |
1,422,642 |
3,472,209 |
1,792,155 |
1,609,554 |
3,401,709 |
|
Total assets |
|
18,623,296 |
1,695,328 |
20,318,624 |
16,211,046 |
4,017,851 |
20,228,897 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
| Bank
borrowings |
1 |
313,479 |
- |
313,479 |
183,472 |
27,637 |
211,109 |
| Lease
liabilities |
1 |
128,595 |
- |
128,595 |
154,573 |
23,285 |
177,858 |
| Wallet
deposits |
1 |
344,816 |
- |
344,816 |
188,412 |
28,382 |
216,794 |
| Trade payables and
payables to merchants |
1 |
11,964,643 |
- |
11,964,643 |
10,562,999 |
1,591,171 |
12,154,170 |
| Due to related
parties |
1 |
6,690 |
- |
6,690 |
4,638 |
699 |
5,337 |
| Provisions |
1 |
83,413 |
- |
83,413 |
81,728 |
12,311 |
94,039 |
| Employee benefit
obligations |
1 |
190,998 |
- |
190,998 |
289,410 |
43,596 |
333,006 |
| Contract
liabilities and merchant advances |
1 |
1,836,561 |
- |
1,836,561 |
1,424,467 |
214,576 |
1,639,043 |
|
Other current liabilities |
3 |
838,223 |
80,335 |
918,558 |
698,322 |
172,007 |
870,329 |
|
Total current liabilities |
|
15,707,418 |
80,335 |
15,787,753 |
13,588,021 |
2,113,664 |
15,701,685 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Bank borrowings |
1 |
1,151 |
- |
1,151 |
2,809 |
423 |
3,232 |
| Lease
liabilities |
1 |
182,454 |
- |
182,454 |
121,820 |
18,350 |
140,170 |
| Employee benefit
obligations |
1 |
111,222 |
- |
111,222 |
104,284 |
15,708 |
119,992 |
|
Other non-current liabilities |
2 |
330,964 |
210,451 |
541,415 |
231,270 |
232,250 |
463,520 |
|
Total non-current liabilities |
|
625,791 |
210,451 |
836,242 |
460,183 |
266,731 |
726,914 |
|
Equity: |
|
|
|
|
|
|
|
| Share capital |
4 |
65,200 |
508,577 |
573,777 |
65,200 |
508,577 |
573,777 |
| Treasury
shares |
4 |
(159,770) |
(35,657) |
(195,427) |
(159,770) |
893,575 |
733,805 |
| Other capital
reserves |
4 |
321,592 |
437,307 |
758,899 |
297,799 |
16,367,289 |
16,665,088 |
| Share premiums |
4 |
4,260,737 |
12,404,351 |
16,665,088 |
4,260,737 |
(4,456,164) |
(195,427) |
| Accumulated
deficit |
5 |
(2,197,672) |
(11,910,036) |
(14,107,708) |
(2,301,124) |
(11,675,821) |
(13,976,945) |
|
Total equity |
|
2,290,087 |
1,404,542 |
3,694,629 |
2,162,842 |
1,637,456 |
3,800,298 |
|
Total equity and liabilities |
|
18,623,296 |
1,695,328 |
20,318,624 |
16,211,046 |
4,017,851 |
20,228,897 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 March 2024. Unaudited.)
|
|
|
Three Months Ended |
|
|
Restatement Method |
Unaudited Unadjusted31 March
2024 |
IAS 29Adjustment |
Unaudited Adjusted31 March
2024 |
Unaudited Unadjusted31 March
2023 |
IAS 29Adjustment |
Unaudited Adjusted31 March
2023 |
| |
|
|
|
|
|
|
|
|
Sale of goods (1P) |
6 |
7,529,770 |
285,800 |
7,815,570 |
3,302,687 |
2,373,704 |
5,676,391 |
|
Marketplace revenue (3P) |
6 |
1,421,473 |
48,977 |
1,470,450 |
647,127 |
470,115 |
1,117,242 |
|
Delivery service revenue |
6 |
1,550,021 |
52,272 |
1,602,293 |
476,113 |
345,825 |
821,938 |
|
Other |
6 |
411,317 |
10,003 |
421,320 |
107,609 |
77,290 |
184,899 |
|
Revenues |
|
10,912,581 |
397,052 |
11,309,633 |
4,533,536 |
3,266,934 |
7,800,470 |
| |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
| Cost of
inventory sold |
7 |
(6,687,586) |
(818,003) |
(7,505,589) |
(2,981,920) |
(2,444,269) |
(5,426,189) |
| Shipping
and packaging expenses |
6 |
(1,188,150) |
(38,801) |
(1,226,951) |
(431,267) |
(312,072) |
(743,339) |
| Payroll
and outsource staff expenses |
6 |
(1,151,995) |
(45,224) |
(1,197,219) |
(480,039) |
(344,004) |
(824,043) |
|
Advertising expenses |
6 |
(680,441) |
(34,344) |
(714,785) |
(277,292) |
(199,493) |
(476,785) |
|
Technology expenses |
9 |
(115,467) |
(15,025) |
(130,492) |
(58,442) |
(42,535) |
(100,977) |
|
Depreciation and amortization |
8 |
(191,398) |
(195,784) |
(387,182) |
(104,225) |
(195,501) |
(299,726) |
| Other
operating expenses |
9 |
(291,871) |
(14,328) |
(306,199) |
(150,605) |
(110,366) |
(260,971) |
| Other
operating income |
9 |
38,198 |
22,755 |
60,953 |
21,893 |
22,167 |
44,060 |
|
|
|
|
|
|
|
|
|
|
Operating Income/(loss) |
|
643,871 |
(741,702) |
(97,831) |
71,639 |
(359,139) |
(287,500) |
| |
|
|
|
|
|
|
|
| Financial
income |
6 |
787,510 |
31,583 |
819,093 |
158,780 |
113,508 |
272,288 |
| Financial
expenses |
6 |
(1,328,008) |
(15,462) |
(1,343,470) |
(310,494) |
(215,178) |
(525,672) |
| Monetary
gains |
10 |
- |
491,474 |
491,474 |
- |
215,966 |
215,966 |
|
|
|
|
|
|
|
|
|
|
Income/(Loss) before income taxes |
|
103,373 |
(234,107) |
(130,734) |
(80,075) |
(244,843) |
(324,918) |
|
|
|
|
|
|
|
|
|
| Taxation
on income |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Income/(Loss) for the period |
|
103,373 |
(234,107) |
(130,734) |
(80,075) |
(244,843) |
(324,918) |
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 March 2024. Unaudited.)
|
|
Unaudited |
|
Unaudited |
Unaudited |
|
Unaudited |
|
|
Unadjusted |
|
Adjusted |
Unadjusted |
|
Adjusted |
|
|
1 Jan- 31 March 2024 |
IAS 29 adjustment |
1 Jan- 31 March 2024 |
1 Jan- 31 March 2023 |
IAS 29 adjustment |
1 Jan- 31 March 2023 |
|
Income/(loss) before income taxes |
103,373 |
(234,107) |
(130,734) |
(80,075) |
(244,843) |
(324,918) |
|
Adjustments to reconcile income/(loss) before income taxes
to cash flows from operating activities: |
887,669 |
1,141,832 |
2,029,501 |
300,830 |
1,346,417 |
1,647,247 |
|
Interest and commission expenses |
1,177,130 |
11,469 |
1,188,599 |
288,340 |
208,727 |
497,067 |
|
Depreciation and amortization |
191,398 |
195,784 |
387,182 |
104,225 |
195,501 |
299,726 |
|
Interest income on time deposits |
(141,225) |
(4,558) |
(145,783) |
(44,609) |
(32,358) |
(76,967) |
|
Interest income on credit sales |
(273,733) |
(10,455) |
(284,188) |
(36,898) |
(26,687) |
(63,585) |
|
Interest income on financial investment |
(633) |
(24) |
(657) |
- |
- |
- |
|
Provision for unused vacation liability |
32,856 |
1,205 |
34,061 |
(1,868) |
(1,361) |
(3,229) |
|
Provision for personnel bonus |
71,839 |
66,892 |
138,731 |
33,335 |
24,292 |
57,627 |
|
Provision for legal cases |
517 |
19 |
536 |
1,414 |
1,030 |
2,444 |
|
Provision for doubtful receivables |
29,425 |
1,078 |
30,503 |
7,267 |
5,296 |
12,563 |
|
Provision for impairment of trade goods, net |
26,477 |
(5,276) |
21,201 |
(8,603) |
27,394 |
18,791 |
|
Provision for post-employment benefits |
14,521 |
532 |
15,053 |
1,890 |
1,377 |
3,267 |
|
Provision for share based payment |
23,793 |
1,301 |
25,094 |
22,034 |
16,567 |
38,601 |
|
Fair value gains of financial investments |
(38,454) |
(917) |
(39,371) |
(875) |
(643) |
(1,518) |
|
Provision for Turkish Capital Markets Board fee |
709 |
25 |
734 |
- |
- |
- |
|
Net foreign exchange differences |
(226,951) |
(9,977) |
(236,928) |
(64,822) |
(45,906) |
(110,728) |
|
Monetary gains on provisions |
- |
(70,474) |
(70,474) |
- |
(126,906) |
(126,906) |
| Monetary
losses on non-operating activities |
- |
965,208 |
965,208 |
- |
1,100,094 |
1,100,094 |
|
Changes in net working capital |
|
|
|
|
|
|
|
Change in trade payables and payables to merchants |
1,480,370 |
(1,588,681) |
(108,311) |
(90,242) |
(1,303,772) |
(1,394,014) |
|
Change in inventories |
(1,048,651) |
585,346 |
(463,305) |
(156,688) |
220,674 |
63,986 |
|
Change in trade receivables |
(583,280) |
368,137 |
(215,143) |
114,588 |
224,391 |
338,979 |
|
Change in contract liabilities and merchant advances |
403,520 |
(214,891) |
188,629 |
(6,167) |
(138,949) |
(145,116) |
|
Change in contract assets |
(11,605) |
3,379 |
(8,226) |
(5,746) |
(698) |
(6,444) |
|
Change in other liabilities |
396,029 |
(141,879) |
254,150 |
54,058 |
(135,000) |
(80,942) |
|
Change in other assets and receivables |
10,467 |
128,516 |
138,983 |
43,727 |
167,588 |
211,315 |
|
Change in due from related parties |
(822) |
1,383 |
561 |
(405) |
85 |
(320) |
|
Change in due to related parties |
2,051 |
(698) |
1,353 |
7,098 |
3,686 |
10,784 |
|
Post-employment benefits paid |
(7,504) |
(275) |
(7,779) |
(7,326) |
(5,338) |
(12,664) |
|
Payments for concluded litigation |
(4,817) |
(176) |
(4,993) |
(1,202) |
(876) |
(2,078) |
|
Payments for personnel bonus |
(201,552) |
(15,792) |
(217,344) |
(119,982) |
(82,182) |
(202,164) |
|
Payments for unused vacation liabilities |
(1,555) |
(50) |
(1,605) |
(1,272) |
(921) |
(2,193) |
|
Collections of doubtful receivables |
- |
- |
- |
219 |
(219) |
- |
|
Net cash provided by operating activities |
1,423,693 |
32,044 |
1,455,737 |
51,415 |
50,043 |
101,458 |
|
Investing activities: |
|
|
|
|
|
|
| Purchases
of property and equipment and intangible assets |
(355,729) |
(73,322) |
(429,051) |
(202,620) |
(159,817) |
(362,437) |
| Proceeds
from sale of property and equipment |
907 |
1,985 |
2,892 |
423 |
1,226 |
1,649 |
| Purchase
of financial investments |
(4,907,474) |
(125,647) |
(5,033,121) |
- |
- |
- |
| Proceeds
from sale of financial investments |
2,477,905 |
110,171 |
2,588,076 |
18,431 |
12,625 |
31,056 |
| Interest received on time deposits and financial
investments |
136,526 |
4,684 |
141,210 |
48,580 |
36,388 |
84,968 |
| Interest received on credit sales |
247,394 |
9,490 |
256,884 |
36,898 |
26,687 |
63,585 |
|
Net cash used in investing activities |
(2,400,471) |
(72,639) |
(2,473,110) |
(98,288) |
(82,891) |
(181,179) |
|
Financing activities: |
|
|
|
|
|
|
| Proceeds
from borrowings |
240,873 |
8,830 |
249,703 |
15,938 |
11,615 |
27,553 |
| Repayment
of borrowings |
(117,063) |
(4,292) |
(121,355) |
(6,995) |
(5,097) |
(12,092) |
| Interest
and commission paid |
(1,035,951) |
(36,661) |
(1,072,612) |
(272,906) |
(197,543) |
(470,449) |
| Lease
payments |
(73,662) |
(2,700) |
(76,362) |
(50,607) |
(36,880) |
(87,487) |
|
Net cash used in financing activities |
(985,803) |
(34,823) |
(1,020,626) |
(314,570) |
(227,905) |
(542,475) |
|
Net decrease in cash and cash equivalents |
(1,962,581) |
(75,418) |
(2,037,999) |
(361,443) |
(260,753) |
(622,196) |
|
Cash and cash equivalents at 1 January |
5,499,165 |
828,373 |
6,327,538 |
5,259,801 |
4,712,449 |
9,972,250 |
| Effects of inflation on cash
and cash equivalents |
- |
(757,313) |
(757,313) |
- |
(1,098,328) |
(1,098,328) |
| Effects of exchange rate
changes on cash and cash equivalents and restricted cash |
20,751 |
4,358 |
25,109 |
71,158 |
50,520 |
121,678 |
|
Cash and cash equivalents at 31 March |
3,557,335 |
- |
3,557,335 |
4,969,516 |
3,403,888 |
8,373,404 |
Restatement Methods for Consolidated Balance
Sheets
(1) Monetary items do not need to be restated,
because they represent money held, to be received or to be paid.
Monetary items are therefore already expressed in current
purchasing power at the reporting date.
(2) Non-monetary assets and liabilities are
restated in terms of the measuring unit current at the end of the
reporting period. We used the increase in the general price index
from the transaction date when they were first recognized to the
end of the reporting period.
(3) Other current assets and other current
liabilities consist of monetary and non-monetary items.
(4) The components of shareholders’ equity,
excluding retained earnings, are restated by applying a general
price index from the dates on which the items were contributed or
otherwise arose.
(5) Retained earnings are restated for the
balancing figure derived from the other amounts in the restated
opening balance sheet.
Restatement Methods for Consolidated
Statements of Comprehensive Loss
(6) All items except cost of inventory sold,
depreciation and amortization expenses and monetary gains or losses
in the consolidated statement of comprehensive loss for the current
year are restated by applying the change in the general price index
from the dates when the items of income and expense were originally
recorded.
(7) Cost of inventory sold is restated by using
restated inventories balance.
(8) Depreciation and amortization expenses is
restated by using restated property and equipment, intangible
assets and right of use assets balances.
(9) Technology expenses, other operating
expenses and income includes prepaid expenses and deferred income
which are considered as non-monetary items and restated by using
restated balances of those items.
(10) The monetary gains or losses is calculated
as the difference between the historical cost amounts and the
result from the restatement of non-monetary items, shareholders’
equity, items in the consolidated statement of comprehensive loss.
The monetary gain or loss is reported as a separate item in the
restated consolidated statement of comprehensive loss.
Restatement Methods for Consolidated Statements of Cash
Flows
All items in the consolidated statements of cash
flows are expressed in a measuring unit current at the balance
sheet date; they are therefore restated by applying the relevant
conversion factors from the date on which the transaction
originated.
Net income / loss before tax is adjusted for the
monetary gain or loss for the period.
The monetary loss on cash and cash equivalents
is presented separately.
Inflation effect on non-operating activities is
presented separately. It is calculated as the difference between
the restated openings and closing balances of cash and cash
equivalents, borrowings and financial investments.
Inflation effect on operating activities is
presented separately. It is calculated as the difference between
the restated openings and closing balances of provisions and
considered as a reconciling item in the cash flow statement, as
this is a non-cash item not shown as a change in working
capital.
Certain Definitions
We provide a number of key operating performance
indicators used by our management and often used by competitors in
our industry. We define certain terms used in this press release as
follows:
-
GMV as gross merchandise value which refers to the
total value of orders/products sold through our platform over a
given period of time (including value added tax (“VAT”) without
deducting returns and cancellations), including cargo income
(shipping fees related to the products sold through our platform)
and excluding other service revenues and transaction fees charged
to our merchants;
- IAS
29-Unadjusted GMV as GMV presented on an unadjusted for
inflation basis;
-
Marketplace GMV as total value of orders/products
sold through our Marketplace over a given period of time (including
VAT without deducting returns and cancellations), including cargo
income (shipping fees related to the products sold through our
platform) and excluding other service revenues and transaction fees
charged to our merchants;
- Share of
Marketplace GMV as the portion of GMV sold through our
Marketplace represented as a percentage of our total GMV;
- IAS
29-Unadjusted Revenue as Revenue presented on an
unadjusted for inflation basis;
- IAS
29-Unadjusted Gross Contribution as Gross Contribution
presented on an unadjusted for inflation basis;
- Gross
Contribution margin as Gross Contribution represented as a
percentage of GMV;
- IAS
29-Unadjusted EBITDA as EBITDA presented on an unadjusted
for inflation basis;
- EBITDA
as a percentage of GMV as EBITDA represented as a
percentage of GMV;
- IAS
29-Unadjusted EBITDA as a percentage of GMV as IAS
29-Unadjusted EBITDA represented as a percentage of IAS
29-Unadjusted GMV;
- Number
of orders as the number of orders we received through our
platform including returns and cancellations;
-
Frequency as the average number of orders per
Active Customer over a 12-month period preceding the relevant
date;
- Active
Merchant as merchants who sold at least one item within
the 12-month period preceding the relevant date, including returns
and cancellations;
- Active
Customer are users (both unregistered users and members)
who have purchased at least one item listed on our platform within
the 12-month period preceding the relevant date, including returns
and cancellations; and
- Digital
products are non-cash games on our platform, such as
sweepstakes and gamified lotteries, game pins and codes, gift
vouchers, and the first monthly payment of Hepsiburada Premium
membership subscription.
DISCLAIMER: Due to rounding, numbers presented
throughout this press release may not add up precisely to the
totals provided and percentages may not precisely reflect the
absolute figures.
About Hepsiburada
Hepsiburada is a leading e-commerce technology
platform in Türkiye, connecting over 64 million members with over
248 million stock keeping units across over 30 product categories.
Hepsiburada provides goods and services through its hybrid model
combining first-party direct sales (1P model) and a third-party
marketplace (3P model) with approximately 102 thousand
merchants.
With its vision of leading the digitalization of
commerce, Hepsiburada acts as a reliable, innovative and
purpose-led companion in consumers’ daily lives. Hepsiburada’s
e-commerce platform provides a broad ecosystem of capabilities for
merchants and consumers including: last-mile delivery and
fulfilment services, advertising services, on-demand grocery
delivery services, and payment solutions offered through Hepsipay,
Hepsiburada’s payment companion and BNPL solutions provider.
HepsiGlobal offers a selection from international merchants through
its inbound arm while outbound operations aim to enable merchants
in Türkiye to make cross-border sales.
Since its founding in 2000, Hepsiburada has been
purpose-led, leveraging its digital capabilities to develop the
role of women in the Turkish economy. Hepsiburada started the
‘Technology Empowerment for Women Entrepreneurs’ programme in 2017,
which has supported approximately 53 thousand female entrepreneurs
throughout Türkiye to reach millions of customers with their
products.
Investor Relations
Contactir@hepsiburada.com
Media
Contactcorporatecommunications@hepsiburada.com
Forward Looking Statements This
press release, the conference call webcast, presentation and
related communications include forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Safe Harbor provisions of the US Private Securities
Litigation Reform Act of 1995, and encompasses all statements,
other than statements of historical fact contained in these
communications, including but not limited to statements regarding
(a) our future financial performance, including our revenue,
operating expenses and our ability to achieve and maintain
profitability; (b) our expectations regarding current and future
GMV and EBITDA; (c) potential disruptions to our operations and
supply chain that may result from (i) epidemics or natural
disasters; (ii) global supply challenges; (iii) the ongoing
conflict in Ukraine; (iv) changes in the competitive landscape in
the industry in which the Company operates; (v) the rising
inflationary environment and/or (vi) currency devaluation; (d) the
anticipated launch of new initiatives, businesses or any other
strategic projects and partnerships; (e) our expectations and plans
for short- and long-term strategy, including our anticipated areas
of focus and investment, market expansion, product and technology
focus, and projected growth and profitability; (f) our ability to
respond to the ever-changing competitive landscape in the industry
in which we operate; (g) our liquidity, substantial indebtedness,
and ability to obtain additional financing; (h) our strategic goals
and plans, including our relationships with existing customers,
suppliers, merchants and partners, and our ability to achieve and
maintain them; (i) our ability to improve our technology platform,
customer experience and product offerings to attract and retain
merchants and customers; (j) our ability to expand our base of
Hepsiburada Premium members, and grow and externalize the services
of our strategic assets; and (k) regulatory changes in the
e-commerce law. These forward-looking statements can be identified
by terminology such as “may”, “could”, “will,” “seek,” “expects,”
“anticipates,” “aims,” “future,” “intends,” “plans,” “believes,”
“estimates,” “targets”, “likely to” and similar statements. Among
other things, quotations from management in this announcement, as
well as our outlook and guidance, strategic and operational plans,
contain forward-looking statements.
These forward-looking statements are based on
management’s current expectations. However, it is not possible for
our management to predict all risks, nor can we assess the impact
of all factors on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. These statements are neither promises nor guarantees
but involve known and unknown risks, uncertainties and other
important factors and circumstances that may cause Hepsiburada’s
actual results, performance or achievements to be materially
different from its expectations expressed or implied by the
forward-looking statements, including conditions in the U.S.
capital markets, negative global economic conditions, potential
negative developments resulting from epidemics or natural
disasters, other negative developments in Hepsiburada’s business or
unfavorable legislative or regulatory developments. We caution you
therefore against relying on these forward-looking statements, and
we qualify all of our forward-looking statements by these
cautionary statements. For a discussion of additional factors that
may affect the outcome of such forward looking statements, see our
2023 annual report filed with the SEC on Form 20-F (File No.
001-40553), and in particular the “Risk Factors” section, as well
as the other documents filed with or furnished to the SEC by the
Company from time to time. Copies of these filings are available
online from the SEC at www.sec.gov, or on the SEC Filings section
of our Investor Relations website at
https://investors.hepsiburada.com. These and other important
factors could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. Any such forward-looking statements represent management’s
estimates as of the date of this press release. These
forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the
date of this press release. All forward-looking statements in this
press release are based on information currently available to the
Company, and the Company and its authorized representatives assume
no obligation to update these forward-looking statements in light
of new information or future events. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
Non-IFRS Financial MeasuresThis
press release includes certain non-IFRS financial measures,
including but not limited to, Gross Contribution, IAS 29-Unadjusted
Gross Contribution, IAS 29-Unadjusted Revenue, EBITDA, IAS
29-Unadjusted EBITDA, Free Cash Flow and Net Working Capital. These
financial measures are not measures of financial performance in
accordance with IFRS and may exclude items that are significant in
understanding and assessing our financial results. Therefore, these
measures should not be considered in isolation or as an alternative
to profit/loss for the period or other measures of profitability,
liquidity or performance under IFRS. You should be aware that the
Company’s presentation of these measures may not be comparable to
similarly titled measures used by other companies, which may be
defined and calculated differently. See “Presentation of Financial
and Other Information” in this press release for a reconciliation
of certain of these non-IFRS measures to the most directly
comparable IFRS measure.
Statement Regarding Unaudited Financial
InformationThis press release includes unaudited quarterly
financial information as of and for the three months ended March
31, 2024, for the three months ended March 31, 2023 and as of and
for the year ended December 31, 2023. The quarterly and yearly
financial information has not been audited or reviewed by the
Company’s auditors. The unaudited consolidated financial statements
include the accounts of the Company and its subsidiaries. All
periods presented have been accounted for in conformity with IFRS
and pursuant to the regulations of the SEC.
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