Ülker 3Q24 Financial Results

We attended Ülker Bisküvi's analyst meeting to assess the company's 3Q24 financial results, current operations, and future outlook. In the Turkish market, revenue increased by 7%, and EBITDA grew by 5%, while export revenue saw a 12% decline and EBITDA a 28% decrease. Rising cocoa prices, a strong Turkish lira, and the end of government support in Kazakhstan, which has tightened consumption, have pressured export operations. The year-end net sales target has been revised down by 5.9% to TL80bn, with the EBITDA margin adjusted from 18.5% to 18.2%. Expected price adjustments in 2025 are anticipated to support the EBITDA margin once again by renewing terms in price contracts to address the low pricing in export markets. However, increasing competition abroad could make implementing the desired price increases challenging.