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 second quarter and the six
months ended June 30, 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 and six months ended June 30, 2024,
including figures corresponding to the same periods 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 June 30, 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 June 30,
2024 are as follows:
|
Date |
Index |
Conversion Factor |
|
30 June 2024 |
2,319.3 |
1.00 |
|
31 December 2023 |
1,859.4 |
1.25 |
|
30 June 2023 |
1,351.6 |
1.72 |
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.
Second Quarter 2024 Financial and Operational
Highlights
(All financial figures are restated
pursuant to IAS 29 unless otherwise indicated)
- Gross
merchandise value (GMV) increased by 3.9% to TRY 33.8
billion compared to TRY 32.5 billion in Q2 2023.
- IAS 29-Unadjusted
GMV increased by 79.2% to TRY 33.1 billion compared to Q2
2023.
-
Revenue was nearly flat at TRY 10,112.9 million
compared to TRY 10,113.3 million in Q2 2023.
- Number of
orders increased by 33.3% to 36.7 million compared to 27.5
million orders in Q2 2023.
- Active
Customers increased by 0.5% to 12.1 million compared to
12.0 million as of June 30, 2023.
- (Order)
Frequency increased by 23.2% to 10.6 compared to 8.61 as
of June 30, 2023.
- Active
Merchant base decreased by 0.3% to 100.9 thousand compared
to 101.3 thousand as of June 30, 2023.
- Number of
SKUs increased by 35.6% to 264.0 million compared to 194.7
million as of June 30, 2023.
- Share of
Marketplace GMV was 71.1% compared to 67.1% in Q2
2023.
-
EBITDA increased by 45.7% to TRY 386.6 million
compared to TRY 265.3 million in Q2 2023. Accordingly, EBITDA as a
percentage of GMV was at 1.1%, a 0.3 percentage point improvement
compared to 0.8% in Q2 2023.
- IAS 29-Unadjusted
EBITDA increased by 110.5% to TRY 787.4 million compared to TRY
374.0 million in Q2 2023. IAS 29-Unadjusted EBITDA as a percentage
of GMV in Q2 2024 improved by 0.4 percentage points to 2.4%
compared to 2.0% in Q2 2023.
-
Loss for the period was TRY 384.5
million compared to income of TRY 1,511.9 million for Q2 2023.
-
Free cash flow was negative TRY 644.5 million
compared to negative TRY 1,041.8 million in Q2 2023.
First Half 2024 Financial and Operational
Highlights
(All financial figures are restated
pursuant to IAS 29 unless otherwise indicated)
- Gross
merchandise value (GMV) increased by 21.6% to TRY 73.1
billion compared to TRY 60.1 billion in H1 2023.
- IAS 29-Unadjusted
GMV increased by 105.3% to TRY 68.3 billion compared to H1
2023.
-
Revenue increased by 20.5% to TRY 22,373.1 million
compared to TRY 18,569.3 million in H1 2023.
- Number of
orders increased by 27.9% to 66.0 million compared to 51.6
million orders in H1 2023.
- Active
Customers increased by 0.5% to 12.1 million compared to
12.0 million as of June 30, 2023.
- (Order)
Frequency increased by 23.2% to 10.6 compared to 8.61 as
of June 30, 2023.
- Active
Merchant base decreased by 0.3% to 100.9 thousand compared
to 101.3 thousand as of June 30, 2023.
- Number of
SKUs increased by 35.6% to 264.0 million compared to 194.7
million as of June 30, 2023.
- Share of
Marketplace GMV was 69.6% compared to 67.7% in H1
2023.
-
EBITDA increased by 151.4% to TRY 700.3 million
compared to TRY 278.6 million in H1 2023. Accordingly, EBITDA as a
percentage of GMV was at 1.0%, a 0.5 percentage point improvement
compared to 0.5% in H1 2023.
- IAS 29-Unadjusted
EBITDA increased by 195.1% to TRY 1,622.7 million compared to TRY
549.8 million in H1 2023. IAS 29-Unadjusted EBITDA as a percentage
of GMV in H1 2024 improved by 0.7 percentage points to 2.4%
compared to 1.7% in H1 2023.
-
Loss for the period was TRY 526.3
million compared to income of TRY 1,159.7 million for H1 2023.
-
Free cash flow was positive TRY 471.6 million
compared to negative TRY 1,322.9 million in H1 2023.
Commenting on the results, Nilhan Onal
Gökçetekin, CEO of Hepsiburada said:
“Our second quarter performance confirms our
continued relevance for consumers as their trusted household brand.
We remain in a challenging macroeconomic conjecture, where consumer
purchasing power is under pressure. Ever customer-centric, with our
meticulous execution of strategic priorities and compelling value
proposition, we have delivered another solid set of results in Q2
2024, exceeding our guidance. Overall, in the first half of the
year, our GMV doubled compared to the first half of the previous
year and our EBITDA reached 2.4% of GMV, in each case unadjusted
for inflation.
With our exceptional customer experience,
top-notch logistics services and diverse affordability solutions,
our NPS metrics yet again confirmed that we are Türkiye’s most
recommended e-commerce brand. Our loyalty program, Hepsiburada
Premium, had reached a new milestone of 3 million members by
mid-August, right after its second anniversary. With the upcoming
conversion from local to global streaming content under Warner
Bros. Discovery, the exclusive experience enjoyed by these members
scales a new height.
Meanwhile, our logistics excellence led to
increased preference among our merchants and other retailers. In
the second quarter of 2024, HepsiJet delivered 73% of total parcels
on our platform, up by a remarkable 6.8 percentage points
year-on-year. Its off-platform expansion also accelerated, doubling
its volume from external customers in the second quarter of 2024.
HepsiJet, being a new generation logistics company committed to
sustainable practices, added 21 electric vans to its fleet in a
pilot project in the second quarter of 2024.
On the fintech front, Hepsipay’s comprehensive
suite of affordability solutions and lending services gained
further traction in an ongoing tight liquidity environment.
Including loans from partner banks, our affordability solutions
penetration rose to 8.1% of GMV. Meanwhile, the total lending
volume through our platform, including those issued through partner
banks, reached TRY 11.2 billion over the last twelve months by the
end of the second quarter of 2024, up from TRY 8.1 billion in the
first quarter of 2024. On the payments front, Hepsipay further
enhanced customer experience with the recently launched auto top-up
feature in the wallet. With 16.7 million wallet customers,
Hepsipay’s one-click checkout solution, Pay with Hepsipay, was
already integrated at the checkout of 50 leading retailers as of
the end of August 2024, almost tripling its total payment volume
during the second quarter of 2024 compared to the first quarter of
2024.
As we enter the second half of the year, we
remain cautiously optimistic about market conditions and we are
confident in our ability to execute on our strategic initiatives
for the period ahead. Accordingly, in the third quarter, we expect
continued GMV growth within the range of 70% - 75% year-on-year
compared to the same quarter of last year, unadjusted for
inflation. We also expect to achieve an EBITDA around 2.2% of GMV,
unadjusted for inflation in the third quarter. We remain committed
to delivering sustainable and profitable growth underpinned by our
customer centricity, while preserving prudent capital management.
We thank our shareholders, our loyal customers, our partners, and
our dedicated team for their continued support.”
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 June 30, 2024 and June 30, 2023, and the six
months ended June 30, 2024 and June 30, 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 June 30, |
Six months ended June 30, |
|
unaudited |
unaudited |
|
2024 |
2023 |
y/y % |
2024 |
2023 |
y/y % |
|
GMV (TRY in billion) |
33.8 |
32.5 |
3.9% |
73.1 |
60.1 |
21.6% |
|
Marketplace GMV (TRY in billion) |
24.0 |
21.8 |
10.0% |
50.9 |
40.7 |
25.2% |
|
Share of Marketplace GMV (%) |
71.1% |
67.1% |
4.0pp |
69.6% |
67.7% |
1.9pp |
|
Number of orders (million) |
36.7 |
27.5 |
33.3% |
66.0 |
51.6 |
27.9% |
|
Active Customer (million) |
12.1 |
12.0 |
0.5% |
12.1 |
12.0 |
0.5% |
|
Revenue |
10,112.9 |
10,113.3 |
(0.0%) |
22,373.1 |
18,569.3 |
20.5% |
|
Gross contribution |
4,048.9 |
3,036.0 |
33.4% |
8,172.6 |
5,609.9 |
45.7% |
|
Gross contribution margin (%) |
12.0% |
9.3% |
2.6pp |
11.2% |
9.3% |
1.8pp |
|
Income/(loss) for the period |
(384.5) |
1,511.9 |
(125.4%) |
(526.3) |
1,159.7 |
(145.4%) |
|
EBITDA |
386.6 |
265.3 |
45.7% |
700.3 |
278.6 |
151.4% |
|
EBITDA as a percentage of GMV (%) |
1.1% |
0.8% |
0.3pp |
1.0% |
0.5% |
0.5pp |
| Net cash
(used in)/provided by operating activities |
(237.6) |
(740.6) |
(67.9%) |
1,340.5 |
(630.7) |
n.m. |
|
Free Cash Flow |
(644.5) |
(1,041.8) |
(38.1%) |
471.6 |
(1,322.9) |
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.
Q3 2024 Outlook
The below forward-looking statements reflect
Hepsiburada’s expectations as of September 11, 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 third quarter of 2024, we expect to
deliver IAS 29-Unadjusted GMV growth within the range of 70% to 75%
compared to the third quarter of 2023 and IAS 29-Unadjusted EBITDA
as a percentage of GMV around 2.2%.
In 2024, we remain committed to delivering
sustainable and profitable growth underpinned by our customer
centricity, while preserving prudent capital management.
Business and Strategy Highlights
As of June 30, 2024, the annual inflation rate
published by TurkStat was 71.6%, up from 38.2% as of June 30, 2023,
and 68.5% as of March 31, 2024. The monthly inflation rates during
the second quarter of 2024 were 3.2%, 3.4% and 1.6% in April, May
and June, respectively. The Consumer Confidence Index fell by
nearly 6.8 points on a yearly basis to 78.3 as of June 30,
2024.
In Q2 2024, IAS 29-Unadjusted GMV increased by
79.2% to TRY 33.1 billion compared to TRY 18.5 billion in Q2 2023,
exceeding our guidance of approximately 75% by nearly 4.2
percentage points. Adjusted for inflation, GMV increased by 3.9% to
TRY 33.8 billion in Q2 2024 compared to TRY 32.5 billion in Q2
2023. GMV growth was attributable mainly to the 6.0% order growth
(excluding that of digital products). Higher VAT rates following
the increase introduced in July 2023 also contributed to this
growth. These factors were partially offset by the 2.0% decline in
average order value.
We experienced order growth of 33.3% compared to
Q2 2023, resulting from the continued rise in order frequency
during the second quarter of 2024. Our order frequency (LTM) grew
by 23.2% to 10.6, up from 8.62 as of June 30, 2023. A strong
customer demand for our digital products (which mainly include
sweepstakes and gamified lotteries as well as the first monthly
payment of Hepsiburada Premium membership subscription) contributed
to the rise in order frequency. Excluding the orders of digital
products, order frequency would have been 6.7 as of June 30, 2024
compared to 5.9 as of June 30, 2023, corresponding to 14.0% growth.
Accordingly, order growth excluding that of digital products was
6.0% in Q2 2024 compared to Q2 2023. While these digital products
only generated around 0.5% of our GMV in Q2 2024, we value the
repeat interaction they enable with the participating customer
segments.
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 75 in Q2 2024 compared to 73 in Q1
2024 (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.
We remain committed to executing our strategic
priorities that include: a) nurturing loyalty, b) capitalizing on
our clear differentiation of superior delivery services, c)
capitalizing on our clear differentiation through 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 Q2 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, continues to
play 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 more than doubled, reaching 2.6 million
by the end of Q2 2024 compared to 1.2 million by the end of Q2
2023. The number of Hepsiburada Premium members reached a milestone
of 3 million by August 12, 2024.
-
Hepsiburada Premium members continue to generate higher order
frequency than non-members. In Q2 2024, the monthly order frequency
for members was 36% higher than before joining the program,
mirroring the Q1 2024 level in percentage terms.
-
The NPS for Hepsiburada Premium members was 84 in Q2 2024,
according to the results of market research conducted by the
research company FutureBright on behalf of Hepsiburada, up from 81
in Q1 2024. This score remains higher than the Company’s overall
NPS, which we believe signifies a strong satisfaction level among
members.
-
Further enriching the program’s customer benefits, in July 2024, we
partnered with Warner Bros. Discovery to extend the offering of a
BluTV subscription, a Türkiye-based subscription video-on-demand
service, as a privilege for Hepsiburada Premium members. BluTV,
which was fully acquired by Warner Bros. Discovery in December
2023, features an ever-expanding collection of Turkish content and
a broad range of the best international series and shows from
Warner Bros. Discovery.
b) Capitalizing on our clear differentiation of
superior delivery services
-
In Q2 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 Q2 2024, HepsiJet delivered 82% of the orders
placed through our retail arm (1P) within the next day (compared to
83% in Q2 2023).
-
HepsiJet is also a key component of our value proposition for our
merchants. In Q2 2024, HepsiJet delivered approximately 73% of our
total parcels (compared to 66% in Q2 2023).
-
The NPS for HepsiJet was 89 in Q2 2024, 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 68%
of oversized parcels ordered through our platform in Q2 2024, up
from 59% in Q2 2023.
c) Capitalizing on our clear differentiation
through 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.
- Our total financed transaction
volume (including BNPL, shopping loans, general purpose loans and
consumer finance loans) had reached TRY 11.2 billion over the last
twelve months by the end of Q2 2024. 48% of this amount was issued
through partner banks in the form of shopping loans and general
purpose loans, while 52% was issued by Hepsiburada group companies
(up from 36% in Q2 2023) in the form of our BNPL solution and
consumer finance loans.
- As of June 30,
2024, our BNPL solution had been used by over 404 thousand
customers.
- Approximately
1.3 million orders were processed through our non-card
affordability solutions (including BNPL and shopping loans) over
the past 12 months.
- In Q2 2024,
orders made through our BNPL solution, shopping loans and consumer
finance loans accounted for 6.1% of total GMV for the period, up
from 4.9% in Q1 2024.
- The consumer
tendency to use general purpose loans for shopping on our platform
has also increased. As such, including the impact of general
purpose loans spent on the platform, GMV penetration of all
affordability solutions rose to 8.1% in Q2 2024 from 5.8% in Q1
2024.
- By August 31,
2024, our wholly-owned subsidiary, Hepsifinans, had provided over
TRY 813 million in consumer finance loans since its launch in
January 2024.
- We diligently
manage credit risk in our BNPL, with a CoR3 of around 2.6% as of
August 31, 2024, while remaining focused on growth
optimization.
- Shopping related
credit receivables create limited balance sheet load with average
durations of around 3.7 and 4.2 months for BNPL and consumer
finance loans solutions, respectively.
-
As of June 30, 2024, our wallet and payment gateway solution,
Hepsipay, registered approximately 16.1 million Hepsipay wallet
customers (representing users who have opened their wallet account
by giving the required consent to Hepsipay), up from 12.5 million
as of June 30, 2023. As of the end of August, the number of
Hepsipay wallet customers had reached 16.7 million. Additionally,
19.5 million cards are stored in the wallets of Hepsipay
customers.
- As of
June 30, 2024, 1.6 million Hepsipay prepaid cards had been issued
through the Hepsiburada mobile app. The Hepsipay prepaid card can
be used online at any e-commerce site and is linked to the QR
payment feature which allows customers to use it at any off-line
retailer that accepts QR payments. As of the end of August, the
number of Hepsipay cards issued exceeded 1.7 million. The option
for Hepsipay prepaid card holders to top up their e-wallets by way
of general purpose loans is now available at nine leading banks in
Türkiye. In April 2024, the automatic top-up feature went live in
the digital wallet. This convenient feature enables customers to
automatically top up their wallet with any saved card when their
wallets lack sufficient credit and pay at off-line retailers by
scanning QR.
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 approximately 2,300 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 35.9% in Q2 2024, up from 24.8% in Q2 2023. The total
parcel volume of third parties delivered in Q2 2024 doubled
compared to Q2 2023.
-
As of June 30, 2024, Hepsipay’s one-click check-out (“Pay with
Hepsipay”) offering was successfully integrated into the online
checkout of 40 retailers, reaching 50 retailers by the end of
August. Total payment volume through “Pay with Hepsipay” almost
tripled compared to Q1 2024. By enabling payment with cards stored
on the Hepsipay wallet, Hepsipay has gained a share of these
retailers’ online sales.
ESG Actions
-
In Q2 2024, Hepsiburada continued its support in social, commercial
and economic areas.
-
Our “Trade and Technology Empowerment for the Earthquake Region”
program, launched in March 2023 a month after the earthquake,
reached approximately 18,100 merchants, with over 4,500 new
businesses now selling their products online through Hepsiburada.
Active sellers have generated a trade volume exceeding TRY 6.5
billion since its launch. Our E-Commerce Specialization Centers in
Adana, Hatay and Kahramanmaraş 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.
-
Further, Hepsiburada distributed storybooks to thousands of
children in the earthquake-affected region as part of our ongoing
“A Smile is Enough” project.
-
The “Technology Empowerment for Women Entrepreneurs” (“TEWE”)
program reached an additional 2,149 women. To date, the TEWE
program has supported approximately 55 thousand women
entrepreneurs. Furthermore, as of June 30, 2024, the number of
women’s cooperatives on our platform had reached 274.
-
As part of the TEWE program, various NGO collaborations have been
established to provide sustainable support to the earthquake zone.
As of June 30, 2024, the number of women entrepreneurs and women’s
cooperatives in the impacted region had reached 3,579 and 42,
respectively.
-
Hepsiburada’s last-mile delivery service, HepsiJet, has launched
cargo distribution in select regions of Türkiye with 21 electric
vans in a pilot project. The electric vans offer high energy
conversion efficiency, contributing to sustainability by reducing
carbon emissions.
Subsequent Events
Hepsifinans’ bond issuance
approved
The Capital Markets Board approved the issuance
of bonds or bills by Hepsifinans with a total aggregate principal
amount of up to TRY 1,050,000,000 with its decision dated August 1,
2024. This issuance will be carried out in one or more tranches
within one year, targeting domestic qualified investors through
sales or private placement methods, without a public offering.
Hepsifinans will use the funds raised to sustainably grow its
consumer finance business. The amount and timing of the issuance
have yet to be determined based on market conditions.
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 June 30, 2024 (in accordance with IAS 29)
unless otherwise indicated.
|
(in TRY million unless otherwise
indicated) |
Three months ended June 30, |
Six months ended June 30, |
|
unaudited |
unaudited |
|
2024 |
2023 |
y/y % |
2024 |
2023 |
y/y % |
|
GMV (TRY in billion) |
33.8 |
32.5 |
3.9% |
73.1 |
60.1 |
21.6% |
| Marketplace GMV (TRY in
billion) |
24.0 |
21.8 |
10.0% |
50.9 |
40.7 |
25.2% |
| Share of Marketplace GMV
(%) |
71.1% |
67.1% |
4.0pp |
69.6% |
67.7% |
1.9pp |
| Revenue |
10,112.9 |
10,113.3 |
(0.0%) |
22,373.1 |
18,569.3 |
20.5% |
| Gross
contribution |
4,048.9 |
3,036.0 |
33.4% |
8,172.6 |
5,609.9 |
45.7% |
| Gross contribution margin
(%) |
12.0% |
9.3% |
2.6pp |
11.2% |
9.3% |
1.8pp |
| Income/(loss) for the
period |
(384.5) |
1,511.9 |
(125.4%) |
(526.3) |
1,159.7 |
(145.4%) |
| EBITDA |
386.6 |
265.3 |
45.7% |
700.3 |
278.6 |
151.4% |
| EBITDA as a percentage of
GMV (%) |
1.1% |
0.8% |
0.3pp |
1.0% |
0.5% |
0.5pp |
| Net cash provided
by/(used in) operating activities |
(237.6) |
(740.6) |
(67.9%) |
1,340.5 |
(630.7) |
n.m. |
|
Free Cash Flow |
(644.5) |
(1,041.8) |
(38.1%) |
471.6 |
(1,322.9) |
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 June 30, |
Six months ended June 30, |
|
2024 |
2023 |
y/y % |
2024 |
2023 |
y/y % |
|
Sale of goods1 (1P) |
6,580.8 |
7,530.7 |
(12.6%) |
15,053.3 |
13,684.2 |
10.0% |
|
Marketplace revenue2 (3P) |
1,302.8 |
1,341.1 |
(2.9%) |
2,896.9 |
2,552.2 |
13.5% |
|
Delivery service revenue |
1,553.1 |
927.2 |
67.5% |
3,290.1 |
1,818.2 |
81.0% |
|
Other |
676.1 |
314.3 |
115.1% |
1,132.8 |
514.7 |
120.1% |
|
Revenue |
10,112.9 |
10,113.3 |
(0.0%) |
22,373.1 |
18,569.3 |
20.5% |
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 in Q2 2024 was nearly flat amounting
to TRY 10,112.9 million compared to TRY 10,113.3 million in Q2
2023. This was due to a 12.6% decrease in our (1P) revenue
(comprising 65.1% of total revenue) and a 2.9% decrease in our (3P)
revenue (comprising of 12.9% total revenue) compared to Q2 2023
which were partially offset by 67.5% increase in delivery service
revenue (comprising 15.4% of total revenue) and a 115.1% increase
in other revenue. The 12.6% decline in 1P revenue was mainly due to
4.0 percentage point (pp) shift in GMV mix towards 3P
(Marketplace).
The 67.5% increase in delivery service revenue
compared to Q2 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
surpassing inflation, and iii) an increase in the number of parcels
delivered.
The rise in other revenue was mainly
attributable to a 73.4% growth in our advertising services
(HepsiAd) and a 3.5x growth in our Hepsiburada Premium subscription
revenues and a 76.2% increase in our fulfillment service
revenues.
While GMV increased by 3.9% in Q2 2024 compared
to Q2 2023, total 1P and 3P revenue decreased during this period by
11.1%. The gap in these rates was mainly due to a) a 4.0pp shift in
the GMV mix towards 3P (Marketplace) and b) the increase in VAT
across all goods and services in early July 2023, resulting in an
increase in average selling prices throughout the platform. A
slight increase in returns, cancellation, as well as customer
discounts in Q2 2024, in each case compared to Q2 2023, also had an
impact.
Gross Contribution
|
(in TRY million unless indicated otherwise,
unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
2024 |
2023 |
y/y % |
2024 |
2023 |
y/y % |
|
Revenue |
10,112.9 |
10,113.3 |
(0.0%) |
22,373.1 |
18,569.3 |
20.5% |
|
Cost of inventory sold |
(6,064.0) |
(7,077.2) |
(14.3%) |
(14,200.5) |
(12,959.5) |
9.6% |
|
Gross Contribution |
4,048.9 |
3,036.0 |
33.4% |
8,172.6 |
5,609.9 |
45.7% |
|
Gross contribution margin (% of GMV) |
12.0% |
9.3% |
2.6pp |
11.2% |
9.3% |
1.8pp |
The Gross Contribution margin improved by 2.6pp
to 12.0% in Q2 2024 compared to 9.3% in Q2 2023. This margin
improvement was mainly attributable to a 1.7pp increase in delivery
service revenue from off-platform customers, a 1.0pp improvement
derived from higher other revenue and a 0.1pp increase in 1P margin
primarily due to the impact of higher discounts on cost of
inventory sold due to purchases on credit, partially offset by a
0.3pp decline in 3P margin.
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% |
3% |
3% |
2% |
- |
- |
- |
- |
- |
- |
|
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 and six months ended June 30, 2024 and 2023 in
absolute terms and as a percentage of GMV:
|
(in TRY million unless indicated otherwise,
unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
2024 |
2023 |
y/y% |
2024 |
2023 |
y/y% |
|
Cost of inventory sold |
(6,064.0) |
(7,077.2) |
(14.3%) |
(14,200.5) |
(12,959.5) |
9.6% |
|
% of GMV |
(17.9%) |
(21.8%) |
3.8pp |
(19.4%) |
(21.6%) |
2.1pp |
|
Shipping and packaging expenses |
(1,226.9) |
(883.7) |
38.8% |
(2,556.9) |
(1,689.6) |
51.3% |
|
% of GMV |
(3.6%) |
(2.7%) |
(0.9pp) |
(3.5%) |
(2.8%) |
(0.7pp) |
|
Payroll and outsource staff expenses |
(1,204.8) |
(1,039.7) |
15.9% |
(2,502.6) |
(1,933.0) |
29.5% |
|
% of GMV |
(3.6%) |
(3.2%) |
(0.4pp) |
(3.4%) |
(3.2%) |
(0.2pp) |
|
Advertising expenses |
(835.2) |
(648.4) |
28.8% |
(1,610.0) |
(1,165.3) |
38.2% |
|
% of GMV |
(2.5%) |
(2.0%) |
(0.5pp) |
(2.2%) |
(1.9%) |
(0.3pp) |
|
Technology expenses |
(152.1) |
(116.7) |
30.3% |
(293.5) |
(226.1) |
29.8% |
|
% of GMV |
(0.5%) |
(0.4%) |
(0.1pp) |
(0.4%) |
(0.4%) |
0.0pp |
|
Depreciation and amortization |
(418.9) |
(351.7) |
19.1% |
(838.7) |
(676.6) |
24.0% |
|
% of GMV |
(1.2%) |
(1.1%) |
(0.2pp) |
(1.1%) |
(1.1%) |
0.0pp |
|
Other operating expenses, net |
(243.4) |
(82.2) |
196.0% |
(509.2) |
(317.4) |
60.5% |
|
% of GMV |
(0.7%) |
(0.3%) |
(0.4pp) |
(0.7%) |
(0.5%) |
(0.2pp) |
|
Net operating expenses |
(10,145.2) |
(10,199.6) |
(0.5%) |
(22,511.4) |
(18,967.4) |
18.7% |
|
Net operating expenses as a % of GMV |
(30.0%) |
(31.4%) |
1.3pp |
(30.8%) |
(31.5%) |
0.8pp |
Net operating expenses decreased by 0.5% to TRY
10,145.2 million in Q2 2024 compared to TRY 10,199.6 million in Q2
2023. As a percentage of GMV, our net operating expenses declined
1.3pp mainly due to a 3.8pp decrease in cost of inventory sold as a
percentage of GMV. This was partially offset by a 0.9pp increase in
shipping and packaging expenses, a 0.5pp rise in advertising
expenses, a 0.4pp rise in payroll and outsource staff expenses, a
0.1pp rise in technology expenses, a 0.2pp rise in depreciation and
amortization and a 0.4pp rise in other operating expenses, net, in
each case as a percentage of GMV.
The 3.8pp decrease in cost of inventory sold as
a percentage of GMV was mainly due to a 4.0pp shift in GMV mix
towards Marketplace sales and the positive impact on cost of
inventory sold from purchases on credit as a result of increased
interest rates in Türkiye.
The 0.9pp increase in shipping and packaging
expenses as a percentage of GMV was mainly driven by the 6%
increase in the number of orders excluding digital products, the
higher volume of HepsiJet’s third-party services and a rise in
delivery fees per unit (applied by our delivery partners due to
increases in fuel prices and annual minimum wages), outpacing the
average inflation in Q2 2024 compared to Q2 2023.
The 0.5pp increase in advertising expenses as a
percentage of GMV was mainly due to continued investment in some of
our profitability drivers including growing the sale of
non-electronic categories and scaling our strategic business pillar
Hepsiburada Premium program.
The 0.4pp increase in payroll and outsource
staff expenses as a percentage of GMV was mainly due to the rise in
the number of full-time and outsourced employees in line with our
plans on talent onboarding for our subsidiaries.
The 0.4pp increase in other operating expenses,
net was mainly due to the reversal of TRY 180.3 million provision
expense recorded for the Competition Board investigation in Q2 2023
that was disclosed in greater detail in our Form 6-K furnished to
the U.S. Securities and Exchange Commission on August 24, 2023.
This reversal resulted in a 0.5pp improvement in net operating
expenses as a percentage of GMV in Q2 2023.
Financial Income
|
(in TRY million, unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
2024 |
2023 |
y/y % |
2024 |
2023 |
y/y % |
|
Interest income on credit sales |
250.7 |
89.2 |
181.1% |
558.7 |
158.1 |
253.4% |
| Interest
income on time deposits |
226.4 |
146.4 |
54.6% |
384.5 |
229.8 |
67.3% |
| Fair
value gains on financial assets measured at fair value |
66.3 |
245.5 |
(73.0%) |
109.0 |
247.2 |
(55.9%) |
| Foreign
currency exchange gains |
38.7 |
1,946.5 |
(98.0%) |
409.4 |
2,064.6 |
(80.2%) |
|
Other |
18.2 |
48.9 |
(62.8%) |
25.9 |
71.9 |
(64.0%) |
| Interest
income on financial instruments |
0.5 |
- |
n.m. |
1.2 |
- |
n.m. |
|
Financial income |
600.8 |
2,476.5 |
(75.7%) |
1,488.7 |
2,771.6 |
(46.3%) |
Our financial income decreased by 75.7%, to TRY
600.8 million in Q2 2024 compared to TRY 2,476.5 million in Q2
2023. The TRY 1,875.7 million decrease in financial income was
mainly driven by a TRY 1,907.8 million decrease in foreign exchange
gains from our U.S. dollar denominated bank deposits and financial
investments due to the lower U.S. dollar/TRY appreciation during Q2
2024 compared to Q2 2023. The TRY currency depreciation was by 1.7%
in Q2 2024 compared to 34.9% in Q2 2023. The decrease in financial
income was partially offset by the increase in interest income on
credit sales and time deposits as a result of higher annual
interest rates.
Financial Expenses
|
(in TRY million, unaudited) |
Three months ended June 30, |
Six months ended June 30, |
|
2024 |
2023 |
y/y % |
2024 |
2023 |
y/y% |
|
Commission expenses due to early collection of credit card
receivables |
(810.1) |
(436.9) |
85.4% |
(1,595.8) |
(785.1) |
103.3% |
|
Interest expenses on purchases |
(494.6) |
(143.1) |
245.6% |
(890.0) |
(202.2) |
340.2% |
|
Interest expenses on bank borrowings and lease liabilities |
(31.6) |
(50.4) |
(37.3%) |
(139.0) |
(117.3) |
18.5% |
|
Foreign currency exchange losses |
(14.4) |
(590.8) |
(97.6%) |
(177.7) |
(685.7) |
(74.1%) |
|
Other |
(4.6) |
(5.3) |
(13.2%) |
(9.2) |
(6.1) |
50.8% |
|
Financial expenses |
(1,355.3) |
(1,226.5) |
10.5% |
(2,811.7) |
(1,796.4) |
56.5% |
Our financial expenses increased by 10.5% to TRY
1,355.3 million in Q2 2024 compared to TRY 1,226.5 million in Q2
2023. This TRY 128.8 million increase was primarily attributable to
a TRY 373.2 million increase in commission expenses due to early
collection of credit card receivables and a TRY 351.5 million
increase in interest expenses on purchases as a result of an
increase in annual effective interest rates and an increase in
purchased goods during Q2 2024, each compared to Q2 2023, which
were partially offset by a TRY 576.4 million decrease in foreign
currency exchange losses from our U.S. dollar denominated trade
payables as a result of lower U.S. dollar/TRY appreciation during
Q2 2024 compared to Q2 2023.
Income/(Loss) for the
Period
Loss for the period was TRY 384.5 million in Q2
2024, down from an income of TRY 1,511.9 million in Q2 2023. This
was mainly due to a TRY 2,004.4 million increase in net financial
expenses (net of financial income) and TRY 67.2 million increase in
depreciation and amortization, partially offset by TRY 121.3
million improvements in EBITDA and TRY 53.9 million in monetary
gain.
EBITDA
EBITDA increased by 45.7%, or TRY 121.3 million,
to TRY 386.6 million in Q2 2024 compared to TRY 265.3 million in Q2
2023, corresponding to 1.1% EBITDA as a percentage of GMV in Q2
2024. This corresponded to a 0.8pp improvement in EBITDA as a
percentage of GMV in Q2 2024 compared to Q2 2023. This improvement
was driven by a 2.6pp rise in Gross Contribution margin, partially
offset by a 0.9pp rise in shipping and packaging expenses and a
0.5pp rise in advertising expenses, a 0.4pp rise in other operating
expenses, net, a 0.4pp rise in payroll and outsource staff expenses
and a 0.1pp rise in technology expenses, in each case as a
percentage of GMV.
Capital Expenditures
Capital expenditures increased by 35.1%, or TRY
105.7 million, to TRY 406.9 million in Q2 2024 compared to TRY
301.2 million in Q2 2023. This increase was mainly due to increase
in the costs of employees, who are employed for the development of
the website and mobile platforms for both core and strategic
assets, and whose costs are capitalized. The cost of these
employees comprises around 75% of total capital expenditures in Q2
2024, compared to around 74% in Q2 2023. The remaining capital
expenditures in each of Q2 2024 and Q2 2023 mainly comprised the
purchase of property and equipment as well as software and
rights.
Net Working Capital
Net working capital was negative TRY 5,676.4
million as of June 30, 2024 compared to negative TRY 7,367.5
million as of December 31, 2023. The TRY 1,691.2 million change in
negative net working capital was mainly driven by a TRY 840.2
million decrease in trade payables and payables to merchants, a TRY
662.1 million increase in inventories and a TRY 255.9 million
increase in loan receivables. The decrease in trade payables and
payables to merchants resulted primarily from a shift in the GMV
mix towards 3P with shorter payments. The increase in inventories
was due to longer inventory turnover days as of June 30, 2024
compared to December 31, 2023. The increase in loan receivables was
mainly due to an increase in our in-house consumer finance loan
facility that was launched in January 2024.
Cash Flow from Operating Activities
Our net cash used in operating activities in Q2
2024 comprised a TRY 384.5 million loss (Q2 2023: income of TRY
1,511.9 million), a negative TRY 1,662.0 million change in net
working capital (Q2 2023: negative TRY 1,555.1 million) and a TRY
1,808.9 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) (Q2 2023: negative TRY 697.4 million).
The change in net working capital is further disclosed in the “Net
Working Capital” section above.
Net cash used in operating activities rose by
TRY 503.0 million to TRY 237.6 million in Q2 2024 compared to
net cash used in operating activities in Q2 2023 of TRY 740.6
million. This was mainly due to an EBITDA improvement of TRY 121.3
million, a decrease in change in net working capital of TRY 106.8
million and a decrease in realized foreign exchange losses of TRY
447.7 million.
Free Cash Flow
Our free cash flow was negative TRY 644.5
million in Q2 2024 compared to negative TRY 1,041.8 million in Q2
2023. This improvement was mainly due to the decrease in net cash
used in operating activities, partially offset by a TRY 105.7
million increase in capital expenditures.
Total Cash and Financial
Investments
Total cash and cash equivalents was TRY 3,680.1
million as of June 30, 2024 compared to TRY 6,860.4 million as of
December 31, 2023. The TRY 3,180.3 million decrease was mainly due
to slower appreciation of the USD/TRY exchange rate against the
six-month inflation as well as higher cash used in financing
activities and purchases of financial investments.
Total financial investments as of June 30, 2024
amounted to TRY 3,184.3 million compared to TRY 2,148.9 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.
We held around 53.4% of our total cash, cash
equivalents and financial investments in U.S. dollars as of June
30, 2024.
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 473.2
million as of June 30, 2024, from TRY 228.9 million as of December
31, 2023. Our short-term borrowings also included issued
asset-backed securities amounting to TRY 150.0 million. As of June
30, 2024, supplier and merchant financing loans corresponded to TRY
149.5 million of the short-term bank borrowings compared to TRY
22.1 million as of December 31, 2023.
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, Wednesday, September 11, 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/hepsiburada240911.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 September
11, 2024.
Replay: Following the call, a
replay will be available on the Hepsiburada Investor Relations
website https://investors.hepsiburada.com
D-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 30 June 2024
unless otherwise indicated.)
|
|
30 June 2024 (unaudited) |
31 December 2023 (unaudited) |
|
|
|
|
|
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
3,680,062 |
6,860,403 |
|
Restricted cash |
111,257 |
208,696 |
|
Financial investments |
3,184,332 |
2,148,857 |
|
Trade receivables |
2,779,751 |
2,960,295 |
|
Due from related parties |
21,718 |
11,454 |
|
Loan receivables |
255,893 |
- |
|
Inventories |
5,607,842 |
4,945,711 |
|
Contract assets |
29,652 |
27,979 |
|
Other current assets |
866,786 |
1,078,098 |
|
|
|
|
|
Total current assets |
16,537,293 |
18,241,493 |
|
|
|
|
|
Non-current assets: |
|
|
|
Property and equipment |
693,150 |
627,094 |
|
Intangible assets |
2,497,668 |
2,312,063 |
|
Right of use assets |
761,190 |
705,403 |
|
Loan receivables |
41,799 |
997 |
|
Other non-current assets |
27,425 |
42,061 |
|
|
|
|
|
Total non-current assets |
4,021,232 |
3,687,618 |
|
|
|
|
|
Total assets |
20,558,525 |
21,929,111 |
|
LIABILITIES AND EQUITY |
|
|
|
Current liabilities: |
|
|
|
Bank borrowings |
473,202 |
228,853 |
|
Lease liabilities |
120,233 |
192,806 |
|
Wallet deposits |
174,666 |
235,015 |
|
Trade payables and payables to merchants |
12,335,542 |
13,175,714 |
|
Due to related parties |
5,650 |
5,786 |
|
Provisions |
78,957 |
101,943 |
|
Employee benefit obligations |
272,695 |
360,995 |
|
Contract liabilities and merchant advances |
1,544,682 |
1,776,803 |
|
Other current liabilities |
937,046 |
943,479 |
|
|
|
|
|
Total current liabilities |
15,942,673 |
17,021,394 |
|
|
|
|
|
Non-current assets: |
|
|
|
Bank borrowings |
- |
3,504 |
|
Lease liabilities |
331,073 |
151,952 |
|
Employee benefit obligations |
120,406 |
130,078 |
|
Other non-current liabilities |
529,400 |
502,474 |
|
|
|
|
|
Total non-current liabilities |
980,879 |
788,008 |
|
Equity: |
|
|
|
Share capital |
622,003 |
622,003 |
|
Other capital reserves |
837,043 |
795,480 |
|
Share premiums |
18,065,770 |
18,065,770 |
|
Treasury shares |
(211,853) |
(211,853) |
|
Accumulated deficit |
(15,677,990) |
(15,151,691) |
|
|
|
|
|
Total equity |
3,634,973 |
4,119,709 |
|
Total equity and liabilities |
20,558,525 |
21,929,111 |
D-MARKET Electronic Services &
Trading
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
(Amounts expressed in thousands of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 30 June 2024
unless otherwise indicated. Unaudited.)
|
|
Six Months Ended |
Three Months Ended |
|
|
30 June 2024 |
30 June 2023 |
30 June 2024 |
30 June 2023 |
|
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
|
|
Revenues |
22,373,083 |
18,569,346 |
10,112,888 |
10,113,255 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Cost of inventory sold |
(14,200,451) |
(12,959,466) |
(6,064,025) |
(7,077,212) |
|
Shipping and packaging expenses |
(2,556,940) |
(1,689,553) |
(1,226,864) |
(883,737) |
|
Payroll and outsource staff expenses |
(2,502,631) |
(1,932,999) |
(1,204,787) |
(1,039,697) |
|
Advertising expenses |
(1,610,028) |
(1,165,274) |
(835,167) |
(648,416) |
|
Technology expenses |
(293,515) |
(226,128) |
(152,055) |
(116,664) |
|
Depreciation and amortization |
(838,659) |
(676,603) |
(418,935) |
(351,685) |
|
Other operating expenses |
(647,194) |
(609,506) |
(315,260) |
(326,600) |
|
Other operating income |
137,975 |
292,143 |
71,898 |
244,380 |
|
|
|
|
|
|
|
Operating loss |
(138,360) |
(398,040) |
(32,307) |
(86,376) |
|
|
|
|
|
|
|
Financial income |
1,488,699 |
2,771,593 |
600,763 |
2,476,419 |
|
Financial expenses |
(2,811,682) |
(1,796,375) |
(1,355,294) |
(1,226,520) |
|
Monetary gains |
935,076 |
582,527 |
402,293 |
348,409 |
|
|
|
|
|
|
|
Income/(loss) before income taxes |
(526,267) |
1,159,705 |
(384,545) |
1,511,932 |
|
|
|
|
|
|
|
Taxation on income |
- |
- |
- |
- |
|
|
|
|
|
|
|
Income/(loss) for the period |
(526,267) |
1,159,705 |
(384,545) |
1,511,932 |
|
|
|
|
|
|
|
Basic and diluted loss per share |
(1.64) |
3.56 |
(1.20) |
4.64 |
|
|
|
|
|
|
|
Other comprehensive loss:Items that will
not be reclassified to |
|
|
|
|
|
profit or loss in subsequent period: |
|
|
|
|
|
Actuarial losses arising on remeasurement of |
|
|
|
|
|
post-employment benefits |
(33) |
(84,297) |
- |
(58,756) |
|
|
|
|
|
|
|
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 income/(loss) for the
period |
(526,300) |
1,075,408 |
(384,545) |
1,453,176 |
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 30 June 2024 unless
otherwise indicated. Unaudited.)
|
|
1 January – |
1 January – |
|
30 June 2024 |
30 June 2023 |
|
|
(unaudited) |
(unaudited) |
|
Income/(loss) before income taxes |
(526,267) |
1,159,705 |
|
Adjustments to reconcile income/(loss) before income taxes
to cash flows from operating activities: |
4,008,961 |
1,088,276 |
|
Interest and commission expenses |
2,624,808 |
1,104,612 |
|
Depreciation and amortization |
838,659 |
676,603 |
|
Interest income on time deposits |
(384,467) |
(229,796) |
|
Interest income on financial instruments |
(379) |
- |
|
Interest income on credit sales |
(558,746) |
(158,103) |
|
Provision for unused vacation liability |
47,446 |
36,996 |
|
Provision for personnel bonus |
154,175 |
138,261 |
|
Provision for legal cases |
3,037 |
12,355 |
|
Provision for doubtful receivables |
84,926 |
25,498 |
|
Provision for impairment of trade goods, net |
44,166 |
78,285 |
|
Provision for post-employment benefits |
31,164 |
39,556 |
|
Provision for share based payment |
41,563 |
62,599 |
|
Adjustment for impairment loss of financial investments |
(109,025) |
(247,183) |
|
Provision competition board penalty |
- |
(157,900) |
|
Provision for Settlement of Legal Proceedings |
- |
21,042 |
|
Provision for Turkish Capital Markets Board fee |
(422) |
34,213 |
|
Net foreign exchange differences |
(298,778) |
(1,970,215) |
|
Change in provisions due to inflation |
(119,273) |
(183,822) |
|
Monetary effect on non-operating activities |
1,610,107 |
1,805,275 |
|
Changes in net working capital |
|
|
|
Change in trade payables and payables to merchants |
(802,010) |
(1,185,121) |
|
Change in inventories |
(935,356) |
(931,203) |
|
Change in trade receivables |
126,945 |
318,509 |
|
Change in contract liabilities and merchant advances |
(248,314) |
81,711 |
|
Change in contract assets |
(1,673) |
(62,121) |
|
Change in other liabilities |
(39,855) |
(464,403) |
|
Change in other assets and receivables |
26,693 |
112,475 |
|
Change in due from related parties |
(10,264) |
(13,197) |
|
Change in due to related parties |
(136) |
(3,650) |
|
Post-employment benefits paid |
(13,779) |
(17,970) |
|
Payments for concluded litigation |
(5,589) |
(488,920) |
|
Payments for personnel bonus |
(235,612) |
(219,156) |
|
Payments for unused vacation liabilities |
(3,284) |
(4,054) |
|
Collections of doubtful receivables |
- |
(1,534) |
|
Net cash provided by/ (used in) operating
activities |
1,340,460 |
(630,653) |
|
Investing activities: |
|
|
|
Purchases of property and equipment and intangible assets |
(874,209) |
(694,287) |
|
Proceeds from sale of property and equipment |
5,362 |
1,990 |
|
Purchase of financial instruments |
(7,553,998) |
(694,282) |
|
Proceeds from sale of financial investment |
6,273,722 |
33,666 |
|
Interest received on credit sales |
564,757 |
158,103 |
| Interest
income on time deposits and financial instruments |
372,957 |
215,112 |
|
Net cash used in investing activities |
(1,211,409) |
(979,698) |
|
Financing activities: |
|
|
|
Proceeds from borrowings |
766,285 |
339,461 |
|
Repayment of borrowings |
(480,575) |
(233,543) |
|
Interest and commission paid |
(2,361,222) |
(1,048,790) |
|
Lease payments |
(156,021) |
(180,564) |
|
Net cash used in financing activities |
(2,231,533) |
(1,123,436) |
|
|
|
|
|
Net decrease in cash and cash equivalents |
(2,102,482) |
(2,733,787) |
|
|
|
|
|
Cash and cash equivalents at 1 January |
6,859,360 |
10,810,406 |
|
Inflation effect on cash and cash equivalents |
(1,122,406) |
(1,721,555) |
|
Effects of exchange rate changes on cash and cash equivalents and
restricted cash |
33,038 |
1,970,217 |
|
Cash and cash equivalents at 30 June |
3,667,510 |
8,325,281 |
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 profit (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 income/(loss) for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 30 June 2024.
Unaudited.
|
(in TRY million) |
Three months ended June 30, |
Six months ended June 30, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Income/(loss) for the period |
(384.5) |
1,511.9 |
(526.3) |
1,159.7 |
| Taxation
on income |
- |
- |
- |
- |
| Financial
income |
600.8 |
2,476.4 |
1,488.7 |
2,771.6 |
| Financial
expenses |
(1,355.3) |
(1,226.5) |
(2,811.7) |
(1,796.4) |
|
Depreciation and amortization |
(418.9) |
(351.7) |
(838.7) |
(676.6) |
| Monetary
gains |
402.3 |
348.4 |
935.1 |
582.5 |
|
EBITDA |
386.6 |
265.3 |
700.3 |
278.6 |
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 30 June 2024.
Unaudited.
|
|
Three months ended June 30, |
Six months ended June 30, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Revenue |
10,112.9 |
10,113.3 |
22,373.1 |
18,569.3 |
|
Cost of inventory sold |
(6,064.0) |
(7,077.2) |
(14,200.5) |
(12,959.5) |
|
Gross Contribution |
4,048.9 |
3,036.0 |
8,172.6 |
5,609.9 |
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 June 30, |
Six months ended June 30, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Revenue |
10,112.9 |
10,113.3 |
22,373.1 |
18,569.3 |
|
Reversal of IAS 29 adjustment |
228.7 |
4,367.3 |
1,576.3 |
8,289.7 |
|
IAS 29-Unadjusted Revenue |
9,884.2 |
5,746.0 |
20,796.8 |
10,279.6 |
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 June 30, |
Six months ended June 30, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Revenue |
10,112.9 |
10,113.3 |
22,373.1 |
18,569.3 |
|
Cost of inventory sold |
(6,064.0) |
(7,077.2) |
(14,200.5) |
(12,959.5) |
|
Gross Contribution |
4,048.9 |
3,036.0 |
8,172.6 |
5,609.9 |
|
Reversal of IAS 29 adjustment |
(315.8) |
1,108.6 |
(417.0) |
2,130.9 |
|
IAS 29 - Unadjusted Gross Contribution |
4,364.7 |
1,927.4 |
8,589.6 |
3,479.0 |
The following tables show the reconciliation of
IAS 29-Unadjusted EBITDA to income/(loss) for the periods
presented.
Amounts expressed in millions of Turkish lira
(TRY). Unaudited.
|
|
Three months ended |
|
|
30 June2024 |
Reversal of IAS 29Adjustment |
IAS 29-Unadjusted30 June
2024 |
30 June2023 |
Reversal of IAS 29Adjustment |
IAS 29-Unadjusted30
June2023 |
|
Income/(loss) for the period |
(384.5) |
(213.4) |
(171.2) |
1,511.9 |
530.6 |
981.3 |
| Taxation on income |
- |
- |
- |
- |
- |
- |
| Financial income |
600.8 |
8.2 |
592.6 |
2,476.4 |
1,052.2 |
1,424.2 |
| Financial expenses |
(1,355.3) |
(15.6) |
(1,339.7) |
(1,226.5) |
(521.9) |
(704.6) |
| Depreciation and
amortization |
(418.9) |
(207.4) |
(211.5) |
(351.7) |
(239.5) |
(112.2) |
| Monetary gains |
402.3 |
402.3 |
- |
348.4 |
348.4 |
- |
|
IAS 29-Unadjusted EBITDA |
386.6 |
(400.9) |
787.4 |
265.3 |
(108.7) |
374.0 |
Amounts expressed in millions of Turkish lira
(TRY). Unaudited.
|
|
Six months ended |
|
|
30 June 2024 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted30 June
2024 |
30 June 2023 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted30 June
2023 |
|
Income/(loss) for the period |
(526.3) |
(458.5) |
(67.8) |
1,159.7 |
258.4 |
901.3 |
| Taxation on income |
- |
- |
- |
- |
- |
- |
| Financial income |
1,488.7 |
108.6 |
1,380.1 |
2,771.6 |
1,188.6 |
1,583.0 |
| Financial expenses |
(2,811.7) |
(144.0) |
(2,667.7) |
(1,796.4) |
(781.2) |
(1,015.1) |
| Depreciation and
amortization |
(838.7) |
(435.8) |
(402.9) |
(676.6) |
(460.2) |
(216.4) |
| Monetary gains |
935.1 |
935.1 |
- |
582.5 |
582.5 |
- |
|
IAS 29-Unadjusted EBITDA |
700.3 |
(922.4) |
1,622.7 |
278.6 |
(271.3) |
549.8 |
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/(used 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 30 June 2024.
Unaudited.
|
(in TRY million) |
Three months ended June 30, |
Six months ended June 30, |
|
|
2024 |
2023 |
2024 |
2023 |
|
Net cash provided by/(used in) operating activities |
(237.6) |
(740.6) |
1,340.5 |
(630.7) |
|
Capital expenditures |
(409.1) |
(301.4) |
(874.2) |
(694.3) |
| Proceeds from the sale of
property and equipment |
2.2 |
0.2 |
5.4 |
2.0 |
|
Free Cash Flow |
(644.5) |
(1,041.8) |
471.6 |
(1,322.9) |
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 30 June 2024.
Unaudited.
|
|
As of June 30, 2024 |
As of December 31, 2023 |
| Current assets |
16,537.3 |
18,241.5 |
| Cash and cash equivalents |
(3,680.1) |
(6,860.4) |
| Financial investments |
(3,184.3) |
(2,148.9) |
| Current liabilities |
(15,942.7) |
(17,021.4) |
| Bank borrowings, current |
473.2 |
228.9 |
| Lease liabilities, current |
120.2 |
192.8 |
|
Net Working Capital |
(5,676.4) |
(7,367.5) |
BREAKDOWN OF THE COMPARATIVE FIGURES
RESTATED BY INFLATIONCONSOLIDATED BALANCE
SHEETS(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 30 June 2024.)
|
|
Restatement Method |
UnauditedUnadjusted30
June2024 |
IAS 29Adjustment |
UnauditedAdjusted30 June2024 |
UnauditedUnadjusted31 Dec
2023 |
IAS 29Adjustment |
UnauditedAdjusted31 Dec
2023 |
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
1 |
3,680,062 |
- |
3,680,062 |
5,500,000 |
1,360,403 |
6,860,403 |
|
Restricted cash |
1 |
111,257 |
- |
111,257 |
167,312 |
41,384 |
208,696 |
|
Financial investments |
1 |
3,184,332 |
- |
3,184,332 |
1,722,744 |
426,113 |
2,148,857 |
|
Trade receivables |
1 |
2,779,751 |
- |
2,779,751 |
2,373,275 |
587,020 |
2,960,295 |
|
Due from related parties |
1 |
21,718 |
- |
21,718 |
9,182 |
2,272 |
11,454 |
|
Loan receivables |
1 |
255,893 |
- |
255,893 |
- |
- |
- |
|
Inventories |
2 |
5,368,834 |
239,008 |
5,607,842 |
3,795,869 |
1,149,842 |
4,945,711 |
|
Contract assets |
1 |
29,652 |
- |
29,652 |
22,431 |
5,548 |
27,979 |
|
Other current assets |
3 |
798,451 |
68,335 |
866,786 |
828,078 |
250,020 |
1,078,098 |
|
Total current assets |
|
16,229,950 |
307,343 |
16,537,293 |
14,418,891 |
3,822,602 |
18,241,493 |
|
Non-current assets: |
|
|
|
|
|
|
|
|
Property and equipment |
2 |
394,030 |
299,120 |
693,150 |
256,788 |
370,306 |
627,094 |
|
Intangible assets |
2 |
1,599,538 |
898,130 |
2,497,668 |
1,220,910 |
1,091,153 |
2,312,063 |
|
Right of use assets |
2 |
455,989 |
305,201 |
761,190 |
290,952 |
414,451 |
705,403 |
|
Loan receivables |
1 |
41,799 |
- |
41,799 |
799 |
198 |
997 |
|
Other non-current assets |
3 |
19,440 |
7,985 |
27,425 |
22,706 |
19,355 |
42,061 |
|
Total non-current assets |
|
2,510,796 |
1,510,436 |
4,021,232 |
1,792,155 |
1,895,463 |
3,687,618 |
|
Total assets |
|
18,740,746 |
1,817,779 |
20,558,525 |
16,211,046 |
5,718,065 |
21,929,111 |
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Bank borrowings |
1 |
473,202 |
- |
473,202 |
183,472 |
45,381 |
228,853 |
|
Lease liabilities |
1 |
120,233 |
- |
120,233 |
154,573 |
38,233 |
192,806 |
|
Wallet deposits |
1 |
174,666 |
- |
174,666 |
188,412 |
46,603 |
235,015 |
|
Trade payables and payables to merchants |
1 |
12,335,542 |
- |
12,335,542 |
10,562,999 |
2,612,715 |
13,175,714 |
|
Due to related parties |
1 |
5,650 |
- |
5,650 |
4,638 |
1,148 |
5,786 |
|
Provisions |
1 |
78,957 |
- |
78,957 |
81,728 |
20,215 |
101,943 |
|
Employee benefit obligations |
1 |
272,695 |
- |
272,695 |
289,410 |
71,585 |
360,995 |
|
Contract liabilities and merchant advances |
1 |
1,544,682 |
- |
1,544,682 |
1,424,467 |
352,336 |
1,776,803 |
|
Other current liabilities |
3 |
842,451 |
94,595 |
937,046 |
698,322 |
245,157 |
943,479 |
|
Total current liabilities |
|
15,848,078 |
94,595 |
15,942,673 |
13,588,021 |
3,433,373 |
17,021,394 |
|
Non-current liabilities: |
|
|
|
|
|
|
|
|
Bank borrowings |
1 |
- |
- |
- |
2,809 |
695 |
3,504 |
|
Lease liabilities |
1 |
331,073 |
- |
331,073 |
121,820 |
30,132 |
151,952 |
|
Employee benefit obligations |
1 |
120,406 |
- |
120,406 |
104,284 |
25,794 |
130,078 |
|
Other non-current liabilities |
2 |
308,204 |
221,196 |
529,400 |
231,270 |
271,204 |
502,474 |
|
Total non-current liabilities |
|
759,683 |
221,196 |
980,879 |
460,183 |
327,825 |
788,008 |
|
Equity: |
|
|
|
|
|
|
|
|
Share capital |
4 |
65,200 |
556,803 |
622,003 |
65,200 |
556,803 |
622,003 |
|
Treasury shares |
4 |
(159,770) |
996,813 |
837,043 |
(159,770) |
955,250 |
795,480 |
|
Other capital reserves |
4 |
335,650 |
17,730,120 |
18,065,770 |
297,799 |
17,767,971 |
18,065,770 |
|
Share premiums |
4 |
4,260,737 |
(4,472,590) |
(211,853) |
4,260,737 |
(4,472,590) |
(211,853) |
|
Accumulated deficit |
5 |
(2,368,832) |
(13,309,158) |
(15,677,990) |
(2,301,124) |
(12,850,567) |
(15,151,691) |
|
Total equity |
|
2,132,985 |
1,501,988 |
3,634,973 |
2,162,842 |
1,956,867 |
4,119,709 |
|
Total equity and liabilities |
|
18,740,746 |
1,817,779 |
20,558,525 |
16,211,046 |
5,718,065 |
21,929,111 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 30 June 2024. Unaudited.)
|
|
|
Three Months Ended |
|
|
Restatement Method |
UnauditedUnadjusted30 June
2024 |
IAS 29Adjustment |
UnauditedAdjusted30
June2024 |
UnauditedUnadjusted30 June
2023 |
IAS 29Adjustment |
UnauditedAdjusted30 June
2023 |
|
|
|
|
|
|
|
|
|
|
Sale of goods (1P) |
6 |
6,427,437 |
153,386 |
6,580,823 |
4,280,296 |
3,250,380 |
7,530,676 |
|
Marketplace revenue (3P) |
6 |
1,277,668 |
25,177 |
1,302,845 |
761,220 |
579,865 |
1,341,085 |
|
Delivery service revenue |
6 |
1,519,850 |
33,298 |
1,553,148 |
526,118 |
401,073 |
927,191 |
|
Other |
6 |
659,223 |
16,849 |
676,072 |
178,428 |
135,875 |
314,303 |
|
Revenues |
|
9,884,178 |
228,710 |
10,112,888 |
5,746,062 |
4,367,193 |
10,113,255 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of inventory sold |
7 |
(5,519,527) |
(544,498) |
(6,064,025) |
(3,818,634) |
(3,258,578) |
(7,077,212) |
|
Shipping and packaging expenses |
6 |
(1,200,066) |
(26,798) |
(1,226,864) |
(501,790) |
(381,947) |
(883,737) |
|
Payroll and outsource staff expenses |
6 |
(1,172,057) |
(32,730) |
(1,204,787) |
(585,190) |
(454,507) |
(1,039,697) |
|
Advertising expenses |
6 |
(811,935) |
(23,232) |
(835,167) |
(359,347) |
(289,069) |
(648,416) |
|
Technology expenses |
9 |
(136,131) |
(15,924) |
(152,055) |
(63,779) |
(52,885) |
(116,664) |
|
Depreciation and amortization |
8 |
(211,470) |
(207,465) |
(418,935) |
(112,208) |
(239,477) |
(351,685) |
|
Other operating expenses |
9 |
(301,854) |
(13,406) |
(315,260) |
(179,385) |
(147,215) |
(326,600) |
|
Other operating income |
9 |
44,815 |
27,083 |
71,898 |
136,069 |
108,311 |
244,380 |
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
575,953 |
(608,260) |
(32,307) |
261,798 |
(348,174) |
(86,376) |
|
|
|
|
|
|
|
|
|
|
Financial income |
6 |
592,550 |
8,213 |
600,763 |
1,424,171 |
1,052,248 |
2,476,419 |
|
Financial expenses |
6 |
(1,339,663) |
(15,631) |
(1,355,294) |
(704,639) |
(521,881) |
(1,226,520) |
|
Monetary gains |
10 |
- |
402,293 |
402,293 |
- |
348,409 |
348,409 |
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
(171,160) |
(213,385) |
(384,545) |
981,330 |
530,602 |
1,511,932 |
|
|
|
|
|
|
|
|
|
|
Taxation on income |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Income/(loss) for the period |
|
(171,160) |
(213,385) |
(384,545) |
981,330 |
530,602 |
1,511,932 |
|
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
INCOME/(LOSS)
(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 30 June 2024. Unaudited.)
|
|
|
Six Months Ended |
|
|
Restatement Method |
UnauditedUnadjusted30 June
2024 |
IAS 29Adjustment |
UnauditedAdjusted30
June2024 |
UnauditedUnadjusted30 June
2023 |
IAS 29Adjustment |
UnauditedAdjusted30 June
2023 |
|
|
|
|
|
|
|
|
|
|
Sale of goods (1P) |
6 |
13,957,207 |
1,096,076 |
15,053,283 |
7,582,984 |
6,101,177 |
13,684,161 |
|
Marketplace revenue (3P) |
6 |
2,699,141 |
197,744 |
2,896,885 |
1,408,347 |
1,143,883 |
2,552,230 |
|
Delivery service revenue |
6 |
3,069,872 |
220,240 |
3,290,112 |
1,002,232 |
815,980 |
1,818,212 |
|
Other |
6 |
1,070,539 |
62,264 |
1,132,803 |
286,035 |
228,708 |
514,743 |
|
Revenues |
|
20,796,759 |
1,576,324 |
22,373,083 |
10,279,598 |
8,289,748 |
18,569,346 |
|
|
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of inventory sold |
7 |
(12,207,112) |
(1,993,339) |
(14,200,451) |
(6,800,554) |
(6,158,912) |
(12,959,466) |
|
Shipping and packaging expenses |
6 |
(2,388,215) |
(168,725) |
(2,556,940) |
(933,058) |
(756,495) |
(1,689,553) |
|
Payroll and outsource staff expenses |
6 |
(2,324,052) |
(178,579) |
(2,502,631) |
(1,065,229) |
(867,770) |
(1,932,999) |
|
Advertising expenses |
6 |
(1,492,376) |
(117,652) |
(1,610,028) |
(636,639) |
(528,635) |
(1,165,274) |
|
Technology expenses |
9 |
(251,598) |
(41,917) |
(293,515) |
(122,221) |
(103,907) |
(226,128) |
|
Depreciation and amortization |
8 |
(402,867) |
(435,792) |
(838,659) |
(216,433) |
(460,170) |
(676,603) |
|
Other operating expenses |
9 |
(593,725) |
(53,469) |
(647,194) |
(329,990) |
(279,516) |
(609,506) |
|
Other operating income |
9 |
83,012 |
54,963 |
137,975 |
157,962 |
134,181 |
292,143 |
|
|
|
|
|
|
|
|
|
|
Operating income/(loss) |
|
1,219,826 |
(1,358,186) |
(138,360) |
333,436 |
(731,476) |
(398,040) |
|
|
|
|
|
|
|
|
|
|
Financial income |
6 |
1,380,059 |
108,640 |
1,488,699 |
1,582,952 |
1,188,641 |
2,771,593 |
|
Financial expenses |
6 |
(2,667,673) |
(144,009) |
(2,811,682) |
(1,015,133) |
(781,242) |
(1,796,375) |
|
Monetary gains |
10 |
- |
935,076 |
935,076 |
- |
582,527 |
582,527 |
|
|
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
(67,788) |
(458,479) |
(526,267) |
901,255 |
258,450 |
1,159,705 |
|
|
|
|
|
|
|
|
|
|
Taxation on income |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
|
|
Income/(loss) for the period |
|
(67,788) |
(458,479) |
(526,267) |
901,255 |
258,450 |
1,159,705 |
|
|
|
|
|
|
|
|
|
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 30 June 2024. Unaudited.)
|
|
Unaudited |
|
Unaudited |
Unaudited |
|
Unaudited |
|
|
Unadjusted |
|
Adjusted |
Unadjusted |
|
Adjusted |
|
|
1 Jan- 30 June 2024 |
IAS 29 adjustment |
1 Jan- 30 June 2024 |
1 Jan- 30 June 2023 |
IAS 29 adjustment |
1 Jan- 30 June 2023 |
|
Income/(loss) before income taxes |
(67,788) |
(458,479) |
(526,267) |
901,255 |
258,450 |
1,159,705 |
|
Adjustments to reconcile income/(loss) before income taxes
to cash flows from operating activities: |
2,009,274 |
1,999,687 |
4,008,961 |
(502,654) |
1,590,930 |
1,088,276 |
|
Interest and commission expenses |
2,497,480 |
127,328 |
2,624,808 |
619,650 |
484,962 |
1,104,612 |
|
Depreciation and amortization |
402,867 |
435,792 |
838,659 |
216,433 |
460,170 |
676,603 |
|
Interest income on time deposits |
(363,830) |
(20,637) |
(384,467) |
(127,423) |
(102,373) |
(229,796) |
|
Interest income on financial investment |
(1,188) |
809 |
(379) |
- |
- |
- |
|
Interest income on credit sales |
(520,437) |
(38,309) |
(558,746) |
(87,494) |
(70,609) |
(158,103) |
|
Provision for unused vacation liability |
44,215 |
3,231 |
47,446 |
20,355 |
16,641 |
36,996 |
|
Provision for personnel bonus |
143,677 |
10,498 |
154,175 |
76,069 |
62,192 |
138,261 |
|
Provision for legal cases |
2,830 |
207 |
3,037 |
6,798 |
5,557 |
12,355 |
|
Provision for doubtful receivables |
79,143 |
5,783 |
84,926 |
14,873 |
10,625 |
25,498 |
|
Provision for impairment of trade goods, net |
33,153 |
11,013 |
44,166 |
24,234 |
54,051 |
78,285 |
|
Provision for post-employment benefits |
29,042 |
2,122 |
31,164 |
21,763 |
17,793 |
39,556 |
|
Provision for share based payment |
37,851 |
3,712 |
41,563 |
33,816 |
28,783 |
62,599 |
|
Adjustment for impairment loss of financial investments |
(103,698) |
(5,327) |
(109,025) |
(135,967) |
(111,216) |
(247,183) |
|
Provision competition board penalty |
- |
- |
- |
(92,018) |
(65,882) |
(157,900) |
|
Provision for Settlement of Legal Proceedings |
- |
- |
- |
11,577 |
9,465 |
21,042 |
|
Provision for Turkish Capital Markets Board fee |
(394) |
(28) |
(422) |
19,938 |
14,275 |
34,213 |
|
Net foreign exchange differences |
(271,437) |
(27,341) |
(298,778) |
(1,125,257) |
(844,958) |
(1,970,215) |
|
Change in provisions due to inflation |
- |
(119,273) |
(119,273) |
- |
(183,822) |
(183,822) |
|
Monetary effect on non-operating activities |
- |
1,610,107 |
1,610,107 |
- |
1,805,275 |
1,805,275 |
|
Changes in net working capital |
|
|
|
|
|
|
|
Change in trade payables and payables to merchants |
1,810,088 |
(2,612,098) |
(802,010) |
473,364 |
(1,658,485) |
(1,185,121) |
|
Change in inventories |
(1,869,264) |
933,908 |
(935,356) |
(867,264) |
(63,939) |
(931,203) |
|
Change in trade receivables |
(476,131) |
603,076 |
126,945 |
46,623 |
271,886 |
318,509 |
|
Change in contract liabilities and merchant advances |
105,125 |
(353,439) |
(248,314) |
173,886 |
(92,175) |
81,711 |
|
Change in contract assets |
(7,222) |
5,549 |
(1,673) |
(39,237) |
(22,884) |
(62,121) |
|
Change in other liabilities |
213,226 |
(253,081) |
(39,855) |
(81,676) |
(382,727) |
(464,403) |
|
Change in other assets and receivables |
(207,942) |
234,635 |
26,693 |
(63,392) |
175,867 |
112,475 |
|
Change in due from related parties |
(12,535) |
2,271 |
(10,264) |
(8,030) |
(5,167) |
(13,197) |
|
Change in due to related parties |
1,011 |
(1,147) |
(136) |
(1,024) |
(2,626) |
(3,650) |
|
Post-employment benefits paid |
(12,841) |
(938) |
(13,779) |
(9,887) |
(8,083) |
(17,970) |
|
Payments for concluded litigation |
(5,208) |
(381) |
(5,589) |
(274,132) |
(214,788) |
(488,920) |
|
Payments for personnel bonus |
(201,552) |
(34,060) |
(235,612) |
(119,982) |
(99,174) |
(219,156) |
|
Payments for unused vacation liabilities |
(3,055) |
(229) |
(3,284) |
(2,218) |
(1,836) |
(4,054) |
|
Collections of doubtful receivables |
- |
- |
- |
844 |
(2,378) |
(1,534) |
|
Net cash provided by/ (used in) operating
activities |
1,275,186 |
65,274 |
1,340,460 |
(373,524) |
(257,129) |
(630,653) |
|
Investing activities: |
|
|
|
|
|
|
|
Purchases of property and equipment and intangible assets |
(821,389) |
(52,820) |
(874,209) |
(365,054) |
(329,233) |
(694,287) |
|
Proceeds from sale of property and equipment |
1,517 |
3,845 |
5,362 |
856 |
1,134 |
1,990 |
|
Purchase of financial instruments |
(6,978,358) |
(575,640) |
(7,553,998) |
(389,252) |
(305,030) |
(694,282) |
|
Proceeds from sale of financial investment |
5,862,155 |
411,567 |
6,273,722 |
18,431 |
15,235 |
33,666 |
| Interest received on time
deposits |
352,949 |
211,808 |
564,757 |
117,639 |
40,464 |
158,103 |
| Interest received on credit
sales |
526,039 |
(153,082) |
372,957 |
87,494 |
127,618 |
215,112 |
|
Net cash used in investing activities |
(1,057,087) |
(154,322) |
(1,211,409) |
(529,886) |
(449,812) |
(979,698) |
|
Financing activities: |
|
|
|
|
|
|
|
Proceeds from borrowings |
714,106 |
52,179 |
766,285 |
186,768 |
152,693 |
339,461 |
|
Repayment of borrowings |
(447,850) |
(32,725) |
(480,575) |
(128,493) |
(105,050) |
(233,543) |
|
Interest and commission paid |
(2,200,717) |
(160,505) |
(2,361,222) |
(588,937) |
(459,853) |
(1,048,790) |
|
Lease payments |
(145,397) |
(10,624) |
(156,021) |
(99,344) |
(81,220) |
(180,564) |
|
Net cash used in financing activities |
(2,079,858) |
(151,675) |
(2,231,533) |
(630,006) |
(493,430) |
(1,123,436) |
|
Net decrease in cash and cash equivalents |
(1,861,759) |
(240,723) |
(2,102,482) |
(1,533,416) |
(1,200,371) |
(2,733,787) |
|
Cash and cash equivalents at 1 January |
5,499,165 |
1,360,195 |
6,859,360 |
5,259,801 |
5,550,605 |
10,810,406 |
|
Effects of inflation on cash and cash equivalents |
- |
(1,122,406) |
(1,122,406) |
- |
(1,721,555) |
(1,721,555) |
| Effects of exchange rate
changes on cash and cash equivalents and restricted cash |
30,104 |
2,934 |
33,038 |
1,125,258 |
844,959 |
1,970,217 |
|
Cash and cash equivalents at 30 June |
3,667,510 |
- |
3,667,510 |
4,851,643 |
3,473,638 |
8,325,281 |
| |
|
|
|
|
|
|
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 Income/(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.
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 66 million members with over
264 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 101 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 55 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 financial
information as of and for the three months and six months ended
June 30, 2024, and 2023 and as of 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.
1 Due to a clerical error, (Order) Frequency as
of June 30, 2023 was reported incorrectly as 8.1 in the Company’s
earnings release for the second quarter of 2023 published on August
24, 2023.2 Due to a clerical error, (Order) Frequency as of June
30, 2023 was reported incorrectly as 8.1 in the Company’s earnings
release for the second quarter of 2023 published on August 24,
2023. 3 Cost of risk ratio represents the expenses or potential
losses due to defaults, non-performing loans or other
credit-related risks within the underwritten volume.
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