Bizim Toptan Reports Fourth Quarter and Full Year 2011 Results for the Period Ended December 31, 2011

ISTANBUL, March 5, 2012 /PRNewswire/ -- Bizim Toptan Satis Magazalari A.S. (ISE: BIZIM.TI) ("Bizim Toptan"), a leading cash and carry wholesaler with a national footprint of 124 stores throughout Turkey, reported its results for its fourth-quarter and full year 2011 period, ended December 31, 2011. 

Fourth-Quarter 2011 Highlights:

• Revenues were TL 446.8 million;
• Gross profits were TL 41.3 million;
• Adjusted EBITDA was TL 18.7 million;
• Operating income was TL 16.2 million; and
• Net income was TL 10.4 million.

Full Year Months 2011 Highlights

• Revenues were TL 1,733.0 million,
• Gross profits were TL 147.5 million;
• Adjusted EBITDA was TL 62.7 million;
• Operating income was TL 50.6 million; and
• Net income was TL 29.9 million.

Fourth Quarter of 2011 Results
Total revenues in the fourth quarter of 2011 was TL 446.8 million, an increase of TL 59.1 million from TL 387.7 million in the same period of 2010.  Overall top-line growth was 15.2% on a year-on-year basis, with 19.6% growth in main categories and 5.4% in tobacco sales. Like-for-like growth on a year-on-year basis was 8.0% with 12.0% in main categories and 1.0% in tobacco sales.

Gross profit in the fourth quarter 2011 was TL 41.3 million compared to TL 32.6 million in the same period of 2010.  Gross margin for the fourth quarter 2011 was 9.2% compared to 8.4% in the same quarter of 2010.

Adjusted EBITDA for the fourth quarter was TL 18.7 million compared to the TL 13.3 million of Adjusted EBITDA recorded in the same quarter of 2010.  Adjusted EBITDA margin was 4.2% compared to 3.4% in the same period of last year.

The Company's operating income during the fourth quarter of 2011 was TL 16.2 million compared to TL 10.9 million recorded during the same quarter of 2010. Operating margin was 3.6% for the fourth quarter of 2011 compared to 2.8% in the same quarter in 2010.

Net income for the fourth quarter of 2011 was TL 10.4 million, or TL 0.26 per share compared to net income of TL 6.9 million, or TL 0.17 per share in the same quarter of 2010.

Improvements in fourth quarter profitability indicators were mainly driven by two factors, the favorable product mix effect due to seasonality and the tobacco price increase in October of 2011, which resulted in revenue gain from tobacco inventory.

Due to the seasonality of the business, the first and fourth quarter results were impressively higher versus the second and third quarter performances, as customers typically purchase more of the higher margin confectionary and basic food categories in the winter seasons and more beverages and tobacco in summer months.

The Company continues its solid cash generation in the fourth quarter of 2011, ending it with a net cash position of TL 20.1 million compared to TL 9.3 million as of September 30, 2011.

During the fourth quarter of 2011, the Company opened two additional stores, increasing the total number of stores to 124 as of the end of 2011.  With a presence in 60 out of 81 major cities throughout Turkey, Bizim Toptan reconfirms its strategy to open stores within regions with the high-growth potential.

Twelve Months 2011 Results
Total revenue for the full year of 2011 was TL 1,733 million, an increase of TL 281.1 million from TL 1,452 million in the year-earlier period.  The Company's top-line growth on a year-on-year basis was 19.4% with 23.7% in main categories and 8.8% in tobacco sales.  The Company's strong top-line growth recorded during this period was driven by growth in existing stores and the opening of 15 new stores.  Like-for-like growth on a year-on-year basis was 13.0% with 16.0% in main categories and 6.0% in tobacco sales. The Company finished 2011 with remarkable performances in its top line and like-for-like growth in main category sales.

Mr. Recep Ozalp, chief executive officer of Bizim Toptan stated, "Our overall business is strong as demonstrated by our solid performance in 2011, as we ended the year with 19.4% growth which continues to be much higher than the overall sector averages. In addition to the organic growth experienced in our existing stores, the 15 new stores opened during the year significantly contributed towards this growth. Our decision to accelerate new store opening targets in 2011 was based on the strong demands that we were seeing in our markets.  We will continue to look for and capitalize on new opportunities as they arise to fuel our growth.  In our first year as a publicly-listed company, Bizim Toptan has achieved a great deal and we will endeavor to build upon these achievements in the years to come.  The markets in which we operate continue to be attractive and we believe they still offer exceptional growth prospects.  We have established a strong foundation and will continue to strive to be the market leader in our category and to flawlessly execute our business model in order to maximize shareholder return."

Gross profit in the full year of 2011 increased by TL 22.1 million, or by 17.7% to TL 147.5 million compared to the TL 125.4 million recorded in the same period of 2010.  Gross margin was 8.5% for the full year of 2011 when compared to 8.6% recorded in for 2010. Adjusting the gross margins for the tobacco inventory gain in both periods, the adjusted gross margins were stable at 8.4%.  

Adjusted EBITDA for 2011 was TL 62.7 million compared to TL 54.6 million recorded in 2010. Adjusted EBITDA margin was 3.6% in 2011 compared to 3.8% in the same period a year ago. Excluding the one-off items of tobacco price increases in 2010 and 2011, Adjusted EBITDA margin would be relatively flat at 3.5% as in the same period of last year.

Operating income for the full year of 2011 was TL 50.6 million compared to TL 46.0 million recorded in 2010.  Operating margin was 2.9% compared to 3.2% in the same period last year. Excluding the one-off items of tobacco price increase in 2010, the IPO and consultancy costs in 2011, operating income margins, on an adjusted basis, would have been almost flat at 2.9% in 2011 versus 3.0% in 2010.

Net income for 2011 was TL 29.9 million, or TL 0.75 per share, compared to net income of TL 28.3 million, or TL 0.71 per share, in 2010. Net income margin was 1.7% in 2011 compared to 2.0% in 2010. Excluding the one-off items of tobacco price increase in 2010, the IPO and consultancy costs in 2011, the adjusted net income margins would have been almost flat at 1.7% in 2011 versus 1.8% in 2010.

In conjunction with the earnings results, Bizim Toptan will host a conference call which will take place at 10:00 am (Eastern) / 5:00 pm (Istanbul) on Tuesday, March 6, 2012.

Interested parties may participate in the conference call by dialing the following numbers listed below:
U.S. or International Participants: +1 (877) 407-8033 (toll-free) or + 1 (201) 689-8033
UK Participants: 00-800-4626-6666

About Bizim Toptan
Incorporated in 2001 and headquartered in Istanbul, Bizim Toptan Satis Magazalari A.S. (Bizim Toptan) is a leading cash and carry wholesaler in Turkey. Bizim Toptan operates one of the largest networks with a national footprint of 124 stores, located in 60 out of 81 major cities throughout Turkey.  The Company sells branded food products, non‑alcoholic beverages, tobacco, household chemicals and personal hygiene products to a diverse mix of customers which include: wholesalers, traders/distributor wholesalers, "bakkals," local markets, supermarkets, specialized retailers, corporate institutions, and HORECA (hotels, restaurants and cafes) customers among others.  The Company's product offering consists of approximately, 2,900 products or stock keeping units ("SKUs"), nationwide and can be grouped as branded products and private label products.  Bizim Toptan is traded on the Istanbul Stock Exchange under the ticker BIZIM TI (Bloomberg) and BIZIM.IS (Reuters).  For more information on Bizim Toptan, please visit us at www.bizimtoptan.com

Forward Looking Statements
Any statements set forth herein that are not historical facts are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements.

Forward-looking statements can be recognized by the use of words such as "expects," "plans," "will," "could",  "estimates," "projects," "intends," or words of similar meaning. Such forward-looking statements speak only as of the date of this press release, and are not guarantees of future performance.  Such forward-looking statements involve risks and uncertainties that may cause actual results, performance or financial condition to materially differ from those expressed or implied in the forward-looking statements as a result of various factors and assumptions. 

The Company undertakes no obligation to revise forward-looking statements to reflect events or circumstances after the date of this press release. Potential risks and uncertainties including changes in applicable regulations, and other information detailed from time to time in the Company's filings and future filings with the Istanbul Stock Exchange or the Turkish Capital Markets Board. Accordingly, although the Company believes that the expectations reflected in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct.

SOURCE Bizim Toptan Satis Magazalari A.S.