Migros stock drops on soft underlying EBIT margins

Published 06/03/2025, 10:32
© Reuters.

Investing.com -- Shares of Migros fell by 3.5% during Istanbul’s Thursday trading session following the release of latest financial results.

Migros said it met its headline guidance for 2024, with nominal sales increasing by 78% and a slightly higher EBITDA margin at 9.2%.

Despite achieving its targeted sales growth of 76-78% and a 9% margin, the fourth quarter of 2024 saw underlying EBIT margins that were softer quarter-over-quarter and below expectations, which is likely weighing on shares.

The company’s like-for-like (LFL) sales, which had not been previously disclosed, were above the Consumer Price Index (CPI) at 58% for the fourth quarter, with traffic up by 1.8% (3% for the full year), likely surpassing that of its peers.

Looking ahead to 2025, Migros has provided guidance for 8-10% real sales growth and an EBITDA margin improvement of 0.6 percentage points to 6%, including the effects of inflation accounting.

Citi analysts commented on the report, stating: "Overall, while 4Q underlying EBIT margins proved to be on the soft side, we find 2025 guidance constructive, and also commend on expanded disclosure (LFL sales, more financial details about online and payments businesses)."

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