ISTANBUL - D-MARKET Electronic Services & Trading (NASDAQ:HEPS), commonly known as Hepsiburada, a prominent Turkish e-commerce platform, has announced recent changes to its Board of Directors' committees following the appointments made by the General Assembly of Shareholders on September 12, 2024. The company revealed that the composition of its Audit, Risk, and Corporate Governance Committees has been updated, with new assignments and additional functions to its Risk Committee, effective September 21, 2024.
The Audit Committee now includes Mr. Tayfun Bayazıt, Mr. Ahmet Ashaboğlu, and Mr. Stefan Gross-Selbeck. The Risk Committee, which will transition to an Early Detection of Risk Committee at the beginning of 2025, is composed of Mr. Ashaboğlu, Mr. Bayazıt, and Mr. Tolga Babalı. The Corporate Governance Committee welcomes Mr. Hikmet Ersek as a new member, replacing Mr. Bayazıt, who retains his roles on the Board, Audit, and Risk Committees.
The Board has confirmed that all members of the Audit Committee meet the independence and financial expertise requirements as stipulated by the U.S. Securities and Exchange Commission and Nasdaq's listing rules. The Board also classified Messrs. Ersek, Bayazıt, Ashaboğlu, and Gross-Selbeck as independent directors.
In its enhanced capacity, the Early Detection of Risk Committee is expected to meet six times annually, starting in 2025, to proactively identify and report potential risks to the Board every two months. This move signifies Hepsiburada's commitment to robust corporate governance and risk management practices.
Hepsiburada, established in 2000, has grown to become a leading e-commerce technology platform in Türkiye, boasting over 66 million members and offering a vast array of products across numerous categories. The company operates a hybrid model, facilitating both direct sales and a marketplace for approximately 101 thousand merchants. Their ecosystem includes last-mile delivery, advertising services, on-demand grocery delivery, and payment solutions, including a buy now, pay later (BNPL) service through Hepsipay.
The company has also been at the forefront of empowering female entrepreneurs in Türkiye through its 'Technology Empowerment for Women Entrepreneurs' program since 2017, assisting around 55 thousand women in reaching a broader customer base.
This article is based on a press release statement and aims to provide an objective update on Hepsiburada's corporate developments without any endorsement of the company's claims.
In other recent news, Turkish e-commerce giant Hepsiburada reported impressive Q2 2024 results despite economic challenges. The company experienced substantial growth in order volume, Gross Merchandise Volume (GMV), and customer metrics, with GMV doubling compared to the first half of 2023. Active customers increased to 12.1 million, and Hepsiburada Premium subscribers reached 3 million. The company's operational efficiency was also highlighted, with HepsiJet delivering 73% of total parcels.
Notably, Hepsiburada's Q2 2024 order volume grew by 33% year-on-year, reaching 36.7 million. The company also reported improved cash flow dynamics and the highest first half free cash flow since its IPO. However, the company used TRY503 million less cash in operations year-on-year but reported a negative free cash flow of TRY645 million for Q2.
Looking ahead, Hepsiburada expects strong Q3 results, forecasting GMV growth between 70% and 75% year-on-year, and an EBITDA margin of approximately 2.2% of GMV. These recent developments underscore the company's resilience and adaptability in a challenging economic landscape.
InvestingPro Insights
As Hepsiburada (NASDAQ:HEPS) continues to evolve its corporate structure and governance, investors are keeping a close eye on the company's financial metrics and market performance. According to InvestingPro data, Hepsiburada holds a market capitalization of $719.9 million USD. This valuation comes at a time when the company's net income is expected to grow, as per one of the InvestingPro Tips, which could indicate a potential increase in shareholder value.
The company's Price to Earnings (P/E) Ratio stands at -15.9, reflecting market sentiments about its future earnings potential. Adjusted for the last twelve months as of Q2 2024, the P/E Ratio is slightly improved at -13.57. This change suggests a nuanced investor perspective on the company's profitability trajectory. Additionally, Hepsiburada's Price / Book ratio is 6.71, which may imply a premium valuation compared to its book value of assets.
Investors may also note that Hepsiburada's stock has experienced significant price volatility, with a 6-month price total return of 38.36% and a 1-year price total return of 62.96%. This aligns with another InvestingPro Tip highlighting the stock's high price volatility. The company's share price has also seen a considerable uptick over the last six months, which could be of interest to investors looking for growth potential in the e-commerce sector.
For those seeking a deeper dive into Hepsiburada's financials and market performance, InvestingPro offers a range of additional tips, with 14 more available on the platform that can provide further insights into investment decisions.
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