Koton (KOTON) 3Q26 Financial Results
Tacirler Investment
Detailed PDF - 321 KBKoton reported revenue of TL9.3bn, EBITDA of TL1.6bn and a net loss of TL604mn in 3Q26. Revenue and the net loss were close to expectations, while EBITDA exceeded our estimate by 8% and the market forecast by 9%. Weak domestic demand weighed on operating margins. Although financing costs declined from TL1.0bn a year earlier to TL791mn, lower monetary gains weighed on net earnings. Management lowered its full-year real sales outlook from flat or low-single-digit growth to a low-single-digit decline. It also cut gross margin guidance from around 54% to 52% and EBITDA margin guidance, based on its own calculation, from 24% to 21%. The net financial debt/EBITDA target excluding lease liabilities was raised from 0.5x to 0.6x, while investment spending guidance as a share of sales was lowered from 3.5% to 3.0%. The target for net new store openings remained unchanged at 5+. Accordingly, we lower our full-year EBITDA forecast from TL8.1bn to TL7.2bn and our 12-month target price from TL24.00 to TL21.00. We maintain our BUY recommendation, with our target price implying 143% upside from yesterday’s close.