D-MARKET Electronic Services & Trading (d/b/a “Hepsiburada”)
(NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to
herein as “Hepsiburada” or the “Company”), today announces its
unaudited financial results for the fourth quarter and full year
ended December 31, 2023.
Restatement of financial
information: Pursuant to the International Accounting
Standard 29, Financial Reporting in Hyperinflationary Economies
(“IAS 29”), the financial statements of entities whose functional
currency is that of a hyperinflationary economy must be adjusted
for the effects of changes in a general price index. Turkish
companies reporting under International Financial Reporting
Standards (“IFRS”), including the Company, have been required to
apply IAS 29 to their financial statements for periods ended on and
after June 30, 2022.
The Company’s consolidated financial statements
as of and for the year ended December 31, 2023, including figures
corresponding to the same period of the prior year, reflect a
restatement pursuant to IAS 29. Under IAS 29, the Company’s
financial statements are presented in terms of the measuring unit
current as of December 31, 2023. All the amounts included in the
financial statements which are not stated in terms of the measuring
unit current as of the date of the reporting period, are restated
applying the general price index. Adjustment for inflation has been
calculated considering the price indices published by the Turkish
Statistical Institute (TurkStat). Such indices used to restate the
financial statements as at December 31, 2023 are as follows:
Date |
Index |
Conversion Factor |
31 December 2023 |
1,859.4 |
1.00 |
31 December 2022 |
1,128.5 |
1.65 |
Figures unadjusted for inflation in accordance
with IAS 29, denoted as “IAS 29-unadjusted”, “unadjusted for IAS
29”, “unadjusted”, “unadjusted for inflation”, or “without
adjusting for inflation”, are also included in the summary tables
of the consolidated financial statements and under the “Highlights”
section and explanatory notes as relevant. The press release also
includes tables that show the IAS 29 adjustment impact on the
consolidated financial statements for the periods under discussion.
Figures unadjusted for IAS 29 constitute non-IFRS financial
measures. We believe that their inclusion facilitates the
understanding of the restated financial statements in accordance
with IAS 29 and our year on year growth and profitability guidance.
Please see the “Presentation of Financial and Other Information”
section of this press release for a definition of such non-IFRS
measures, a discussion of the limitations on their use, and
reconciliations of the non-IFRS measures to the most directly
comparable IFRS measures.
Fourth Quarter 2023 Financial and Operational
Highlights
(All financial figures are restated
pursuant to IAS 29 unless otherwise indicated)
- Gross
merchandise value (GMV) increased by 25.4% to TRY 40.1
billion compared to TRY 32.0 billion in Q4 2022.
- IAS 29-Unadjusted
GMV increased by 103.9% to TRY 39.0 billion compared to Q4
2022.
-
Revenue increased by 29.5% to TRY 11,811.9 million
compared to TRY 9,120.5 million in Q4 2022.
- Number of
orders increased by 1.7% to 34.4 million compared to 33.9
million orders in Q4 2022.
- Active
Customers was at 11.9 million compared to 12.2 million as
of December 31, 2022.
- (Order)
Frequency increased by 43.7% to 9.5 compared to 6.6 as of
December 31, 2022.
- Active
Merchant base increased by 1.8% to 101.5 thousand compared
to 99.7 thousand as of December 31, 2022.
- Number of
SKUs increased by 40.8% to 230.4 million compared to 163.6
million as of December 31, 2022.
- Share of
Marketplace GMV was 66.8% compared to 68.1% in Q4
2022.
-
EBITDA improved to positive TRY 129.1 million
compared to negative TRY 415.1 million in Q4 2022. Accordingly,
EBITDA as a percentage of GMV was at 0.3%, a 1.6 percentage points
improvement compared to negative 1.3% in Q4 2022.
- IAS 29-Unadjusted
EBITDA improved to positive TRY 555.7 million compared to negative
TRY 15.0 million in Q4 2022. IAS 29-Unadjusted EBITDA as a
percentage of GMV in Q4 2023 improved 1.5 percentage points to 1.4%
compared to negative 0.04% in Q4 2022.
- Net
loss for the period was TRY 644.1 million
compared to a net loss of TRY 912.4 million for Q4 2022.
-
Free cash flow was positive TRY 2,849.7 million
compared to positive TRY 1,745.9 million in Q4 2022.
Full Year 2023 Financial and Operational
Highlights(All financial figures are restated
pursuant to IAS 29 unless otherwise indicated)
- Gross
merchandise value (GMV) increased by 31.1% to TRY 116.5
billion compared to TRY 88.9 billion in 2022.
- IAS 29-Unadjusted
GMV increased by 103.8% to TRY 96.5 billion compared to 2022.
-
Revenue increased by 34.3% to TRY 35,558.5 million
compared to TRY 26,478.0 million in 2022.
- Number of
orders increased by 40.6% to 113.0 million compared to
80.4 million orders in 2022.
- Active
Customers was at 11.9 million compared to 12.2 million as
of December 31, 2022.
- (Order)
Frequency increased by 43.7% to 9.5 compared to 6.6 as of
December 31, 2022.
- Active
Merchant base increased by 1.8% to 101.5 thousand compared
to 99.7 thousand as of December 31, 2022.
- Number of
SKUs increased by 40.8% to 230.4 million compared to 163.6
million as of December 31, 2022.
- Share of
Marketplace GMV was 66.9% compared to 66.7% in 2022.
-
EBITDA improved to positive TRY 449.2 million
compared to negative TRY 4,267.9 million in 2022. Accordingly,
EBITDA as a percentage of GMV was at 0.4% on a 5.2 percentage
points improvement compared to negative 4.8% in 2022.
- IAS 29-Unadjusted
EBITDA improved to positive TRY 1,749.5 million compared to
negative TRY 1,014.6 million in 2022. IAS 29-Unadjusted EBITDA as a
percentage of GMV in 2023 improved 4.0 percentage points to 1.8%
compared to negative 2.1% in 2022.
- Net
income for the period increased to TRY
75.5 million compared to a net loss of TRY 4,790.7 million for
2022.
-
Free cash flow was positive TRY 3,873.0 million
compared to negative TRY 685.5 million in 2022.
Commenting on the results, Nilhan Onal
Gökçetekin, CEO of Hepsiburada said:
“I am extremely proud of our team’s execution on
our strategic priorities throughout 2023. The tangible results of
our hard work amidst a high-inflationary environment is clearly
reflected in our financial results. Our robust year-on-year GMV
growth of 103.8% in the fourth quarter, typically a high shopping
season, significantly contributed to our full-year results on an
unadjusted basis. In 2023, we recorded 1.8% EBITDA as a percentage
of GMV, reflecting a notable c.400 basis point year-on-year
improvement in 2023, on an unadjusted basis. This turnaround in
profitability resulted from our focus on monetizing our core
operations, leveraging our key strengths for both on-platform and
off platform operations, and our prudent cost management. With
strong cash generation from our operations and optimized
investments, we generated around TRY 3.9 billion free cash flow in
2023.
Our loyalty program, Hepsiburada Premium, more
than tripled in size to 2.2 million members in 2023, reaffirming
its value and appeal. Our relentless focus on operational
excellence and customer satisfaction propelled us forward to
confirm our NPS leadership in the Turkish e-commerce market for the
second consecutive year.
We have expanded our product selection by
onboarding various global brands onto our platform, while also
strengthening our partnerships with our suppliers. Our merchants
benefit from intuitive self-service tools and access to our
fulfillment, logistics and fintech services with welcomed
flexibility. Our advertising offering, HepsiAd, has undergone a
successful relaunch, empowering merchants with tailored advertising
solutions. These valuable solutions are proven to drive mutual
growth.
In 2023, our fintech asset Hepsipay recorded
14.3 million wallet users with over 1.2 million Hepsipay prepaid
cards issued. Our customers have enjoyed the convenience and
optionality of our affordability solutions which include our “Buy
Now Pay Later” (“BNPL”) solutions, as well as shopping or general
purpose loans from intermediary banks. In 2023, the total financed
transaction volume on our platform reached TRY 6.1 billion. Going
forward, we will solidify our position as an e-commerce player
providing the widest affordability solutions.
A key strategic pillar for us has been to offer
our B2B clients a comprehensive suite of e-commerce solutions,
leveraging our key strengths. In 2023, our last-mile delivery
services provider HepsiJet, nearly doubled its external client base
with a consequent c.60% rise in external delivery volume
year-on-year. We believe HepsiJet’s robust NPS confirms its
superlative service quality. On the fintech front, we continued the
expansion of Hepsipay’s one-click check-out solution, an integral
component of our strategy, which is now used by ten retailers. This
take-up aligns with our vision of becoming one of the leading
fintech companies in Türkiye.
To ensure solid growth and a higher
profitability margin in 2024, we seek to execute on our strategic
priorities and build on our success with customer-centric focus. We
believe we will achieve this by scaling our loyalty program,
differentiating our offerings with our fintech and logistics
operations and achieving further penetration of these services in
their respective markets. Additionally, we will continue focusing
on incremental revenue avenues including our advertising
solutions.
I extend my heartfelt gratitude to our
exceptional team for their dedication, our loyal customers for
their continued support, our partners for their collaboration, and
our shareholders for their trust in our vision. Together, we will
continue to push boundaries, and shape the future of e-commerce in
Türkiye and beyond.”
Summary: Key Operational and Financial
Metrics
The following table sets forth a summary of the
key unaudited operating and unaudited financial data as of and for
the three months ended December 31, 2023 and December 31, 2022 and
the twelve months ended December 31, 2023 and December 31, 2022
prepared in accordance with IFRS. Unless indicated otherwise, all
financial figures in the tables provided are inflation-adjusted (in
accordance with IAS 29).
(in TRY million unless otherwise
indicated) |
Three months ended December 31, |
Twelve months ended Dec 31, |
unaudited |
unaudited |
2023 |
2022 |
y/y % |
2023 |
2022 |
y/y % |
GMV (TRY in billion) |
40.1 |
32.0 |
25.4% |
116.5 |
88.9 |
31.1% |
Marketplace GMV (TRY in billion) |
26.8 |
21.8 |
23.0% |
77.9 |
59.3 |
31.4% |
Share of Marketplace GMV (%) |
66.8% |
68.1% |
(1.3pp) |
66.9% |
66.7% |
0.2 pp |
Number of orders (million) |
34.4 |
33.9 |
1.7% |
113.0 |
80.4 |
40.6% |
Active Customer (million) |
11.9 |
12.2 |
(2.1%) |
11.9 |
12.2 |
(2.1%) |
Revenue |
11,811.9 |
9,120.5 |
29.5% |
35,558.5 |
26,478.0 |
34.3% |
Gross Contribution |
3,617.0 |
2,506.8 |
44.3% |
10,769.8 |
5,754.0 |
87.2% |
Gross Contribution margin (%) |
9.0% |
7.8% |
1.2pp |
9.2% |
6.5% |
2.7pp |
Net income/(loss) for the period |
(644.1) |
(912.4) |
(29.4%) |
75.5 |
(4,790.7) |
n.m. |
EBITDA |
129.1 |
(415.1) |
n.m. |
449.2 |
(4,267.9) |
n.m. |
EBITDA as a percentage of GMV (%) |
0.3% |
(1.3%) |
1.6pp |
0.4% |
(4.8%) |
5.2pp |
Net cash
provided by operating activities |
3,183.6 |
2,130.9 |
49.4% |
5,019.1 |
706.8 |
610.1% |
Free Cash Flow |
2,849.7 |
1,745.9 |
63.2% |
3,873.0 |
(685.5) |
n.m. |
Note: The abbreviation “n.m.” stands for not
meaningful throughout the press release.
Note that Gross Contribution, EBITDA and Free
Cash Flow are non-IFRS financial measures. See the “Presentation of
Financial and Other Information” section of this press release for
a definition of such non-IFRS measures, a discussion of the
limitations on their use, and reconciliations of non-IFRS measures
to the most directly comparable IFRS measures. See the definitions
of metrics such as GMV, Marketplace GMV, share of Marketplace GMV,
Gross Contribution margin, EBITDA as a percentage of GMV, number of
orders and Active Customer in the “Certain Definitions” section of
this press release.
Q1 2024 Outlook
The below forward-looking statements reflect
Hepsiburada’s expectations as of March 25, 2024, considering year
to date trends which could be subject to change, and involve
inherent risks which we are unable to control or foresee. The
financial outlook is based on management’s current views and
estimates with respect to existing market conditions. However,
there are several uncertainties including the inflationary
environment both in Türkiye and globally, local currency
volatility, further tightening in monetary policy, low consumer
confidence, pressure on purchasing power, regional geopolitical
headwinds, the new regulatory environment for our activities in
Türkiye and the evolving competitive landscape. Management’s views
and estimates are subject to change without notice. See also the
“Forward Looking Statements” section at the end of this press
release.
For the first quarter of 2024, we expect to
deliver IAS 29-Unadjusted GMV growth of around 120% compared to the
same period of 2023 and IAS 29-Unadjusted EBITDA as a percentage of
GMV of around 2%.
In 2024, we intend to remain focused on
sustainable and profitable growth with a prudent approach to
capital allocation.
Business and Strategy Highlights
As of December 31, 2023, the annual inflation
rate published by TurkStat remained largely flat at 64.8%, compared
to 64.3% as of December 31, 2022. Yearly average inflation rate
published by TurkStat in 2023 was 53.9%, compared to 72.3% in
2022.The monthly inflation rates during the fourth quarter of 2023
were 3.4%, 3.3% and 2.9% in October, November and December,
respectively. The Consumer Confidence Index increased to 77.4 as of
December 31, 2023 compared to 71.5 as of September 30, 2023.
In Q4 2023, IAS 29-Unadjusted GMV increased by
104% to TRY 39.0 billion compared to TRY 19.1 billion in Q4 2022,
exceeding the high end of our guidance range of 93% to 95% by 9
percentage points. Adjusted for inflation, GMV increased by 25.4%
to TRY 40.1 billion in Q4 2023 compared to TRY 32.0 billion in Q4
2022. The month of November is typically one of the peak months of
the year during which we traditionally hold numerous campaigns with
participating merchants. In November 2023, the number of orders
(excluding digital products) was 2.0 times that of the monthly
average of the prior months of 2023. Our platform attracted almost
500 million visits and sold over 30 million pieces in November.
In 2023, IAS 29-Unadjusted GMV increased by
103.8% to TRY 96.5 billion compared to TRY 47.3 billion in 2022,
exceeding our guidance range of around 100% by 4 percentage points.
Adjusted for inflation, GMV increased by 31.1% to TRY 116.5 billion
in 2023 compared to TRY 88.9 billion in 2022.
For Hepsiburada, GMV growth is a function of the
growth in number of orders and average order value. We experienced
order growth of 1.7% in Q4 2023 compared to Q4 2022, whereas in
2023, order growth was 40.6% compared to 2022. Order growth
resulted from the continued rise in order frequency. Order
frequency grew by 43.7% to 9.5 as of December 31, 2023, up from 6.6
in 2022. Strong digital products orders continued to fuel the rise
in order frequency. Order frequency (excluding digital products
orders) was 6.3 in 2023 compared to 5.4 in 2022, corresponding to
16.1% growth. Meanwhile, order growth (excluding digital products)
was 8.4% in Q4 2023 compared to Q4 2022 and 13.7% in 2023 compared
to 2022. While digital products only generated around 0.6% of our
GMV in 2023, we value the repeat interaction they enable with the
participating customer segments.
Meanwhile, average order value grew by 100.5% in
Q4 2023, and 45.0% in full year 2023 compared to the corresponding
periods in 2022. The average order value (excluding digital
products) grew by 79.2%, outpacing the average inflation of 53.9%
in full year 2023. The faster average order value growth (excluding
digital products) is attributable mainly to faster-than-inflation
rise in average selling prices and higher share of large-ticket
items in electronics, both in Q4 2023 and for the full year
2023.
Our Active Customer base was 11.9 million in
2023, a decrease of 2.1% compared to 2022.
Overall, our performance was also supported by
the appeal of our Hepsiburada Premium loyalty program, attractive
affordability solutions and data-driven marketing campaigns.
The discussion below elaborates on our progress
in Q4 2023 and full year 2023, as relevant, within each of our
strategic priorities:
a) Nurturing loyalty
-
Central to our strategy is prioritizing customer loyalty and
retention. Our loyalty program, Hepsiburada Premium, has played a
key role in achieving this. Meanwhile, focusing on retention has
helped us to reduce and optimize our marketing and advertising
spend.
-
Hepsiburada Premium members enjoy access to a wide range of
benefits that include free delivery and 3% cashback subject to
certain conditions, plus free access to an on-demand streaming
service, and discounted services, among others, for a monthly
subscription fee of TRY 29.9 as at the date of this press release.
Members more than tripled in 2023 to 2.2 million compared to 615
thousand in 2022. By mid-March 2024, the number of members had
reached 2.4 million.
-
Hepsiburada Premium members continue to generate higher order
frequency than non-members. In Q4 2023, the monthly order frequency
for members was 40% higher than the order frequency generated
before joining the program.
-
Based on the results of market research conducted by FutureBright
(a local research company), Hepsiburada Premium members’ Net
Promoter Score (“NPS”) was 80 in Q4 2023. This score remains higher
than the Company’s overall NPS, which we believe signifies a strong
satisfaction level among members.
-
In 2023, on our Marketplace, we enhanced end-to-end solutions
offerings for our merchants such as our fulfillment, logistics,
two-man handling, fintech and advertising solutions. To facilitate
higher conversion to sales for our merchants, new tools and
features such as self-service campaign management, coupon creation
and tailored advertising solutions are now available on our
merchant app. With our 101.5 thousand Active Merchant base, our
total SKU count has increased to over 230 million in 2023. In 2023,
we expanded our selection of non-electronic categories on our
Marketplace, particularly within fashion and beauty. We on-boarded
a total of 38 thousand new brands on the platform, including a
number of key global brands, with around 50% of these was within
the fashion and beauty categories. Meanwhile, we have deepened our
long-lasting partnerships with Hepsiburada’s well-established
suppliers in retail operations.
-
Our advertising business, HepsiAd, offers variety of advertisement
options which boost the visibility of participating merchants.
Through these ads, merchants are better able to reach their target
audience and increase their sales, while benefiting from actionable
consumer analytics. In 2023, around 18 thousand merchants used our
advertising solutions.
- In 2024,
we remain dedicated to growing the Hepsiburada Premium member base.
One key initiative that we believe will support the program was the
launch of a co-branded credit card with Yapı Kredi Bank, which
offers its users attractive benefits. Following the launch, our
focus is on increasing the Hepsiburada Premium credit card user
base which we believe will, in turn, contribute to our overall
growth. On our Marketplace, we plan to focus on expanding our
merchant base, while encouraging merchants to utilise of our set of
solutions. Particularly in advertising services, we believe there
is potential to scale our performance levels going forward. Key
focus areas in 2024 include increasing the adoption of HepsiAd’s
solutions by our merchants and increasing such revenues per
merchant.
b) Capitalizing on our clear differentiation
with affordability and lending solutions as well as high service
levels on the platform and superior delivery services
-
We are focused on using our sustainable differentiators to provide
our customers with best value through our affordability solutions
(through Hepsipay) and superior delivery services (through
HepsiJet). We believe that our solutions set us apart from the
competition through our commitment to customer satisfaction.
-
In 2023, we had an overall NPS of 72 compared to 74 in 2022
(according to the results of market research conducted by
FutureBright on behalf of Hepsiburada). This score positioned us as
the leading platform in terms of NPS for the second consecutive
year. We believe that our fast delivery services, wide range of
affordability solutions and the depth and breadth of our selection
were instrumental in earning customer appreciation and trust.
- In 2024,
we aim to continue leveraging our core strengths and prioritizing
customer satisfaction.
i) Hepsipay
-
Leveraging our e-money and payment services licenses, we offer a
comprehensive suite of payment and affordability solutions on the
Hepsiburada platform as well as externally to other partner
retailers.
-
As of December 31, 2023, our wallet and payment gateway solution,
Hepsipay, registered approximately 14.3 million Hepsipay wallet
customers (representing users who have opened their wallet account
by giving the required consent to Hepsipay), up from 11.0 million
in 2022. As of mid-March 2024, the number of Hepsipay wallet
customers reached 15 million.
-
We remain the only e-retailer with licenses in payments and
consumer finance, and were the first in the market to launch a BNPL
solution. As of December 31, 2023, our BNPL solution had been used
by over 328 thousand customers with approximately 978 thousand
orders processed through our non-card affordability solutions
(including BNPL and shopping loans). Meanwhile, our total financed
transaction volume (including general purpose loans) reached TRY
6.1 billion, with 57% of this volume generated through our BNPL
solution in 2023 compared to 26% in 2022. In Q4 2023, orders made
through non-card affordability solutions corresponded to a 5.6%
share of total GMV, compared to 3.9% in Q4 2022. We diligently
manage credit risk in our BNPL solution, while maintaining our
focus on growth optimization.
- As of
December 2023, following the launch of the service in May 2023,
around 1 million Hepsipay prepaid cards had been issued through the
Hepsiburada mobile app. The Hepsipay prepaid card is linked to the
QR payment feature allowing customers to use it at any off-line
retailer that accepts QR payments. By mid-March 2024, Hepsipay
cards issued exceeded 1.2 million. The option for Hepsipay prepaid
card holders to top up their e-wallets by way of general purpose
loans is now available from six leading banks in Türkiye.
- In 2024,
Hepsipay is working to become Türkiye’s most used digital wallet
solution in physical and online retail. Hepsipay also aims to win
additional key accounts and launching a product solution targeted
at SMEs. We believe this could ultimately position Hepsipay as
Türkiye’s leading fintech company.
ii) HepsiJet
-
In 2023, HepsiJet continued offering competitive services,
including our oversized delivery services that differentiate us in
the market. We believe swift delivery is a core customer
expectation and, in 2023, HepsiJet delivered 82% of orders placed
through our retail arm (1P) within the next day (compared to 83% in
full year 2022).
-
HepsiJet is also a key component of our value proposition for our
merchants. In 2023, HepsiJet delivered around 67% of our total
parcels (compared to 65% in 2022).
-
In 2023, HepsiJet had an NPS of 87 according to our internal survey
results, underscoring its service excellence. Through HepsiJet, our
customers enjoy flexible delivery options and value added services
which we expanded during the year. HepsiJet serves in all 81 cities
in Türkiye with over 3 thousand carriers.
-
Our oversized package delivery service (HepsiJet XL) delivered 59%
of oversized parcels ordered through our platform in 2023, up from
47% in 2022.
- In
2024, we expect to build on HepsiJet‘s integral role in our
logistics ecosystem and excel in speed of delivery and customer
experience.
c) Pursuing profitability by focusing on core
operations, growth in non-electronics and step change in opex
-
Continuing the trend from previous quarters in 2023, we delivered a
positive IAS 29-Unadjusted EBITDA of TRY 555.7 million in Q4 2023.
This was achieved mainly through a stronger Gross Contribution,
optimized marketing spending and a prudent approach to operational
expenses. EBITDA was also positive at TRY 129.1 million in Q4 2023
compared to negative TRY 415.1 million in Q4 2022.
d) Offering payment, lending and last-mile
delivery services to third parties
-
Our strategy to extend our services and solutions beyond our
platform by offering them to other retailers benefits both retail
partners and customers. We see great potential for Hepsipay and
HepsiJet to use their assets and increase their revenue
contribution to our Company.
-
HepsiJet today serves over two thousand external customers
including household-name retailers, nearly doubling last year’s
figure. We believe HepsiJet is best positioned to build on this
momentum and grow its share in the logistics market.
-
The share of external customer volume in HepsiJet’s operations
increased to 24.9% in 2023, up from 19.6% in 2022. Total parcel
volume of third parties delivered in 2023 increased by 59% compared
to 2022.
-
As of December 31, 2023, following the product launch in July 2023,
Hepsipay’s one-click check-out (Pay with Hepsipay) offering was
successfully integrated into the online check out of ten retailers.
Through this offering, Hepsipay has gained a share of these
retailers’ online sales by enabling payment with cards stored on
the Hepsipay wallet. We believe that the envisaged growth in
one-click check-out integrations will become instrumental in
Hepsipay’s off-platform expansion.
-
Hepsipay's solid wallet base, diverse affordability solutions, own
loyalty program (Hepsipara Program) and fast and reliable check-out
attest to its competitive advantage.
In 2024, we aim to continue executing on four
strategic priorities including nurturing loyalty, capitalizing on
our differentiation in last-mile delivery, capitalizing on our
differentiation in affordability & lending solutions and
offering payment, lending as well as last-mile delivery services to
third parties.
ESG Actions
-
As part of our efforts to integrate sustainability goals into our
business processes, Hepsiburada was the first e-commerce company
worldwide to commit to the United Nations Global Compact's "Moving
Forward Faster" initiative. The initiative aims to accelerate the
achievement of the UN Sustainable Development Goals by 2030.
-
In 2023, Hepsiburada launched the Promise for Tomorrow program to
provide new opportunities for young people, support their personal
and social development, and help them realize their potential. The
program offers young people with e-commerce, entrepreneurship, and
marketing training.
-
As part of our social responsibility projects, Hepsiburada has
continued to provide food, medical supplies, and logistics support
to animal associations.
-
Hepsiburada's ongoing "A Smile is Enough" project has reached 36
thousand children since its inception.
-
In Q4 2023, the "Technology Empowerment for Women Entrepreneurs"
("TEWE") program, launched in 2017 to develop women's role in the
Turkish digital economy, reached an additional 2,904 women. To
date, the TEWE program has supported around 50 thousand women
entrepreneurs. Furthermore, as of December 31, 2023, the number of
women's cooperatives on our platform reached 250.
-
Following the earthquakes that struck the southeastern region of
Türkiye in February 2023, in March 2023, the Company launched the
"Trade and Technology Empowerment for the Earthquake Region"
program. Since the program's launch, the total number of active
merchants operating in the earthquake region has reached
approximately 16,400, with over 2,800 new businesses selling their
products online through Hepsiburada. Active sellers in the
earthquake region have sold a total of 6.9 million products through
4.4 million orders, generating a trade volume exceeding TRY 3.5
billion. In addition to its E-Commerce Specialization Centers in
Adana and Hatay, Hepsiburada plans to open its third center in the
first half of 2024. Through the E-Commerce Specialization Centers,
Hepsiburada supports existing merchants and organizes training
courses and programs for those new to the e-commerce market. Over a
thousand merchants from the region have benefitted from such
training courses.
-
As a part of the TEWE program, various NGO collaborations have been
established to provide sustainable support to the impacted region.
As of December 31, 2023, the number of women entrepreneurs and
women's cooperatives in the earthquake zone had reached 3,207 and
38, respectively.
Subsequent Events
Update on Hepsiburada Seyahat operations
With effect from the close of business on March
31, 2024, Hepsiburada has made the commercial decision to
discontinue its complementary business Hepsiburada Seyahat, which
conducts airline and bus ticketing operations under a travel agency
license granted in February 2021. The contribution of the
Hepsiburada Seyahat business to the Company’s GMV was not material
for the year ended December 31, 2023. Any tickets sold prior
to the discontinuance will remain valid and Hepsiburada will remain
at the service of such ticketholders.
Capital Markets Board approval to participate in an asset-backed
security issuance
On March 21, 2024, the Capital Markets Board of
Türkiye granted approval to Pasha Yatırım Bank Hepsiburada Varlık
Finansmanı Fonu for the issuance of asset-backed securities in a
structure where Hepsiburada participates as the originating entity
with respect to its BNPL receivables. The approval is granted for
up to TRY 2 billion and will be valid for one year from the date of
approval. Hepsiburada intends to use its BNPL receivables in this
structure to be able to sustainably grow its BNPL business and
reduce its impact on working capital. As of the date of this
earnings release, the terms of the issuance (including the amount
and the timing of issuance) have not been agreed among the
participants. These will be determined based on market conditions
and, for Hepsiburada, will require a board of directors
approval.
Hepsiburada Financial
Review
Restatement of financial
information: Pursuant to IAS 29, the financial statements
of an entity whose functional currency is that of a
hyperinflationary economy is reported in terms of the measuring
unit current as of the reporting date of the financial statements.
All amounts included in the financial statements which are not
stated in terms of the measuring unit current as of the date of the
reporting period are restated applying the general price index. In
summary:
(i) Non-monetary items are restated
from the date of acquisition to the end of the reporting
period.(ii) Monetary items that are already expressed in
terms of the monetary unit current at the end of the reporting
period are not restated.(iii) Comparative periods are stated in
terms of measuring unit current at the end of the reporting period.
(iv) All items in the statement of comprehensive income/(loss) are
stated in terms of the measuring unit current as of the date of the
financial statements, applying the relevant (monthly) conversion
factors.(v) The gain or loss on the net monetary position is
included in the statement of comprehensive loss and separately
disclosed.
Note: All financial figures in
the tables provided are expressed in terms of the purchasing power
of the Turkish Lira at December 31, 2023 (in accordance with IAS
29) unless otherwise indicated.
(in TRY million unless otherwise
indicated) |
Three months ended Dec 31, |
Twelve months ended Dec 31, |
unaudited |
unaudited |
2023 |
2022 |
y/y % |
2023 |
2022 |
y/y % |
GMV (TRY in billion) |
40.1 |
32.0 |
25.4% |
116.5 |
88.9 |
31.1% |
Marketplace
GMV (TRY in billion) |
26.8 |
21.8 |
23.0% |
77.9 |
59.3 |
31.4% |
Share of
Marketplace GMV (%) |
66.8% |
68.1% |
(1.3pp) |
66.9% |
66.7% |
0.2pp |
Revenue |
11,811.9 |
9,120.5 |
29.5% |
35,558.5 |
26,478.0 |
34.3% |
Gross
Contribution |
3,617.0 |
2,506.8 |
44.3% |
10,769.8 |
5,754.0 |
87.2% |
Gross
Contribution margin (%) |
9.0% |
7.8% |
1.2pp |
9.2% |
6.5% |
2.7pp |
Net
income/(loss) for the period |
(644.1) |
(912.4) |
(29.4%) |
75.5 |
(4,790.7) |
n.m. |
EBITDA |
129.1 |
(415.1) |
n.m. |
449.2 |
(4,267.9) |
n.m. |
EBITDA as a
percentage of GMV (%) |
0.3% |
(1.3%) |
1.6pp |
0.4% |
(4.8%) |
5.2pp |
Net cash
provided by operating activities |
3,183.6 |
2,130.9 |
49.4% |
5,019.1 |
706.8 |
610.1% |
Free Cash Flow |
2,849.7 |
1,745.9 |
63.2% |
3,873.0 |
(685.5) |
n.m. |
Note: Unless otherwise
indicated, all discussions and analysis provided in this section
are based on inflation-adjusted IFRS figures and non-IFRS
measures.
Revenue
(in TRY million, unaudited) |
Three months ended Dec 31, |
Twelve months ended Dec 31, |
2023 |
2022 |
y/y % |
2023 |
2022 |
y/y % |
Sale of goods1 (1P) |
8,877.8 |
7,113.4 |
24.8% |
26,353.5 |
20,735.5 |
27.1% |
Marketplace revenue2 (3P) |
1,282.2 |
942.5 |
36.0% |
4,486.4 |
2,804.9 |
59.9% |
Delivery service revenue |
1,270.3 |
860.3 |
47.7% |
3,622.4 |
2,450.3 |
47.8% |
Other |
381.6 |
204.3 |
86.8% |
1,096.2 |
487.3 |
125.0% |
Revenue |
11,811.9 |
9,120.5 |
29.5% |
35,558.5 |
26,478.0 |
34.3% |
1: In 1P direct sales model, we act as a
principal and initially recognize revenue from the sales of goods
on a gross basis at the time of delivery of the goods to our
customers.2: In the 3P marketplace model, revenues are recorded on
a net basis, mainly consisting of marketplace commission,
transaction fees and other contractual charges to the
merchants.
Fourth quarter 2023
Our revenue increased by 29.5% to TRY 11,811.9
million in Q4 2023 compared to TRY 9,120.5 million in Q4 2022. This
was mainly due to a 24.8% increase in sale of goods (1P) revenue
(comprising 75.2% of total revenue) and a 36.0% increase in
Marketplace revenue (3P) (comprising 10.9% of total revenue),
compared to Q4 2022. Our delivery service revenue, comprising 10.8%
of total revenue, rose by 47.7% compared to Q4 2022. Meanwhile, the
86.8% growth in other revenue was mainly driven by 77.5% growth in
our advertising services revenues (including our HepsiAd services
and co-marketing revenues) and 5.6x growth in Hepsiburada Premium
subscription revenues compared to Q4 2022.
While GMV increased by 25.4% in Q4 2023 compared
to Q4 2022, total 1P and 3P revenue growth during this period was
26.1%. Faster revenue growth compared to GMV growth was mainly due
to a 1.3 percentage point (pp) shift in GMV composition towards 1P
and a shift in the Marketplace GMV mix towards higher margin
categories.
The 47.7% increase in delivery service revenue
compared to Q4 2022 was mainly due to (i) an annual and mid-year
rise in unit delivery service charges, (ii) an increase in delivery
service revenue from off-platform customers of HepsiJet and (iii)
an increase in the number of parcels delivered.
Full year 2023
In 2023, our revenue increased by 34.3% to TRY
35,558.5 million compared to TRY 26,478.0 million in 2022. This was
mainly due to 27.1% growth in 1P revenue and 59.9% increase in
Marketplace revenue (3P), comprising 86.7% of total revenue.
Meanwhile, the 125.0% growth in other revenue was mainly driven by
95.3% growth in our advertising services revenues (including our
HepsiAd services and co-marketing revenues) and 9.2x growth in
Hepsiburada Premium subscription revenues compared to 2022. HepsiAd
services revenue as a percentage of GMV was around 0.2% in
2023.
In 2023, the total 1P and 3P revenue growth
compared to 2022 was 31.0% while the GMV growth was 31.1%.
The 47.8% increase in delivery service revenue
compared to 2022 was mainly due to (i) an annual and mid-year rise
in unit delivery service charges, (ii) an increase in delivery
service revenue from off-platform customers of HepsiJet and iii) an
increase in the number of parcels delivered.
Gross Contribution
(in TRY million unless indicated otherwise,
unaudited) |
Three months ended Dec 31, |
Twelve months ended Dec 31, |
2023 |
2022 |
y/y % |
2023 |
2022 |
y/y % |
Revenue |
11,811.9 |
9,120.5 |
29.5% |
35,558.5 |
26,478.0 |
34.3% |
Cost of inventory sold |
(8,194.9) |
(6,613.7) |
23.9% |
(24,788.7) |
(20,724.0) |
19.6% |
Gross Contribution |
3,617.0 |
2,506.8 |
44.3% |
10,769.8 |
5,754.0 |
87.2% |
Gross Contribution margin (% of GMV) |
9.0% |
7.8% |
1.2pp |
9.2% |
6.5% |
2.7pp |
Fourth quarter 2023
Gross Contribution margin improved by 1.2pp to
9.0% in Q4 2023 compared to 7.8% in Q4 2022. This margin
improvement was mainly attributable to (i) a 0.5pp increase due to
delivery service revenue, (ii) a 0.3pp improvement derived from
higher other revenue, (iii) a 0.2pp improvement in 3P margin due to
the change in the 3P GMV category mix towards higher margin
categories and (iv) a 0.1pp rise in 1P margin primarily due to a
higher discount impact on cost of inventory sold due to purchases
on credit.
Full year 2023
Gross Contribution margin improved by 2.7pp to
9.2% in 2023 compared to 6.5% in 2022. While the 3P margin
increased by 0.7pp, the 1P margin rose by 1.3pp due to a relatively
lower inflation impact on cost of inventory sold during 2023 and
shorter inventory turnover days in 2023. Additionally, the 0.4pp
increase in Gross Contribution generated through other revenues and
0.3pp increase in delivery service revenue had a positive impact on
overall margin increase.
The table below shows the monthly inflation
rates in 2023 and 2022.
Consumer inflation Monthly
(2003=100) |
Jan |
Feb |
Mar |
Apr |
May |
Jun |
Jul |
Aug |
Sep |
Oct |
Nov |
Dec |
2023 |
7% |
3% |
2% |
2% |
0% |
4% |
9% |
9% |
5% |
3% |
3% |
3% |
2022 |
11% |
5% |
5% |
7% |
3% |
5% |
2% |
1% |
3% |
4% |
3% |
1% |
Source: Data as announced by TurkStat
Operating Expenses
The table below shows our operating expenses for
the three months and twelve months ended December 31, 2023 and 2022
in absolute terms and as a percentage of GMV:
(in TRY million unless indicated otherwise,
unaudited) |
Three months ended Dec 31, |
Twelve months ended Dec 31, |
2023 |
2022 |
y/y% |
2023 |
2022 |
y/y% |
Cost of inventory sold |
(8,194.9) |
(6,613.7) |
23.9% |
(24,788.7) |
(20,724.0) |
19.6% |
% of GMV |
(20.4%) |
(20.7%) |
0.3pp |
(21.3%) |
(23.3%) |
2.0pp |
Shipping and packaging expenses |
(1,124.9) |
(817.1) |
37.7% |
(3,323.9) |
(2,629.3) |
26.4% |
% of GMV |
(2.8%) |
(2.6%) |
(0.3pp) |
(2.9%) |
(3.0%) |
0.1pp |
Payroll and outsource staff expenses |
(1,062.1) |
(943.8) |
12.5% |
(3,504.0) |
(2,949.6) |
18.8% |
% of GMV |
(2.6%) |
(3.0%) |
0.3pp |
(3.0%) |
(3.3%) |
0.3pp |
Advertising expenses |
(857.5) |
(845.6) |
1.4% |
(2,427.8) |
(2,908.7) |
(16.5%) |
% of GMV |
(2.1%) |
(2.6%) |
0.5pp |
(2.1%) |
(3.3%) |
1.2pp |
Technology expenses |
(130.1) |
(80.8) |
61.0% |
(412.2) |
(302.2) |
36.4% |
% of GMV |
(0.3%) |
(0.3%) |
0.0pp |
(0.4%) |
(0.3%) |
0.0pp |
Depreciation and amortization |
(354.6) |
(294.3) |
20.5% |
(1,174.1) |
(844.9) |
39.0% |
% of GMV |
(0.9%) |
(0.9%) |
0.0pp |
(1.0%) |
(1.0%) |
(0.1pp) |
Other operating expenses, net |
(313.2) |
(234.5) |
33.6% |
(652.8) |
(1,232.0) |
(47.0%) |
% of GMV |
(0.8%) |
(0.7%) |
(0.1pp) |
(0.6%) |
(1.4%) |
0.8pp |
Net operating expenses |
(12,037.3) |
(9,829.8) |
22.5% |
(36,283.5) |
(31,590.7) |
14.9% |
Net operating expenses as a % of GMV |
(30.0%) |
(30.8%) |
0.7pp |
(31.1%) |
(35.5%) |
4.4pp |
Fourth quarter 2023
Net operating expenses increased by 22.5% to TRY
12,037.3 million in Q4 2023 compared to TRY 9,829.8 million in Q4
2022. As a percentage of GMV, our net operating expenses declined
0.7pp mainly due to a 0.5pp decrease in advertising expenses, a
0.3pp decrease in payroll and outsource staff expenses, and a 0.3pp
decrease in cost of inventory sold, in each case as a percentage of
GMV. This was partially offset by a 0.3pp rise in shipping and
packaging expenses and 0.1pp rise in other operating expenses, net
as a percentage of GMV.
The 0.5pp decline in advertising expenses as a
percentage of GMV resulted from our continued efficiency in
marketing spend. In this regard, we have focused more on 1-1
marketing and increased personalization at all layers, supported by
prior investments in data-driven marketing tools which contribute
to sales conversion. Also, our loyalty program has contributed to
customer engagement.
The 0.3pp decline in payroll and outsource staff
expenses as a percentage of GMV resulted from a decline in the
total number of employees and a lower share-based payment provision
in Q4 2023 compared to the same period last year.
Full year 2023
Net operating expenses increased by 14.9% to TRY
36,283.5 million in 2023 compared to TRY 31,590.7 million in 2022.
As a percentage of GMV, our net operating expenses declined 4.4pp
mainly due to a 2.0pp decrease in cost of inventory sold, 1.2pp
decrease in advertising expenses, 0.8pp decrease in other operating
expenses, net, a 0.3pp decrease in payroll and outsource staff
expenses and a 0.1pp decrease in shipping and packaging expenses,
in each case as a percentage of GMV. This was partially offset by a
0.1pp rise in depreciation and amortization as a percentage of
GMV.
The 1.2pp decline in advertising expenses as a
percentage of GMV resulted from our continued efficiency in
marketing spend. In this regard, we have deepened our customer
engagement through better personalized customer journeys and our
loyalty program. Additionally, our co-marketing agreements and
partnership programs have contributed to this performance.
The 0.8pp decline in other operating expenses,
net, as a percentage of GMV, was mainly due to the reversal of TRY
144.6 million of the provision expense regarding an investigation
initiated by the Competition Board (as disclosed in greater detail
in our Form 6-K furnished to the U.S. Securities and Exchange
Commission on August 24, 2023), the settlement of the USD 3,975
thousand (equivalent to TRY 121.8 million) contribution amount owed
by TurkCommerce B.V. to Hepsiburada under the term sheet entered
into between the parties (as disclosed in greater detail in our
Form 6-K furnished to the U.S. Securities and Exchange Commission
on September 28, 2023) and the provision expense of USD 13.9
million (TRY 462.5 million) that impacted 2022, as disclosed in
greater detail in our Form 6-K furnished to the U.S. Securities and
Exchange Commission on December 6, 2022.
The 0.3pp decline in payroll and outsource staff
expenses as a percentage of GMV resulted from decline in number of
employees and lower share-based payment provision in 2023 compared
to 2022.
Financial Income
(in TRY million, unaudited) |
Three months ended Dec 31, |
Twelve months ended Dec 31, |
2023 |
2022 |
y/y % |
2023 |
2022 |
y/y % |
Foreign currency exchange gains |
471.7 |
58.6 |
704.9% |
2,413.0 |
2,492.8 |
(3.2%) |
Interest income on time deposits |
171.1 |
148.1 |
15.5% |
504.1 |
331.4 |
52.1% |
Interest income on credit sales |
94.2 |
78.0 |
20.8% |
372.3 |
206.9 |
79.9% |
Interest income on financial instruments |
1.2 |
- |
n.m. |
1.2 |
- |
n.m. |
Fair value gains on financial assets measured at fair
value |
19.2 |
39.9 |
(51.9%) |
237.5 |
84.4 |
181.4% |
Other |
6.6 |
15.2 |
(56.6%) |
11.6 |
37.6 |
(69.1%) |
Financial income |
764.0 |
339.8 |
124.8% |
3,539.7 |
3,153.2 |
12.3% |
Fourth quarter 2023
Our financial income increased by 124.8%, or TRY
424.2 million, to TRY 764.0 million in Q4 2023 compared to TRY
339.8 million in Q4 2022. This was mainly driven by a TRY 413.1
million increase in foreign currency exchange gains from our U.S.
dollar denominated bank deposits due to the higher U.S. dollar/TRY
appreciation during Q4 2023 compared to Q4 2022. The increase in
interest income on time deposits and interest income on credit
sales as a result of higher annual interest rates also contributed
to the rise in financial income.
Full year 2023
In 2023, our financial income increased by
12.3%, or TRY 386.6 million, to TRY 3,539.7 million in 2023
compared to TRY 3,153.2 million in 2022. This was mainly driven by
a TRY 172.7 million increase in interest income on time deposits
due to higher annual interest rates and TRY 165.4 million increase
in interest income on credit sales due to higher annual interest
rates and higher GMV. The increase in our financial income was also
due to TRY 153.1 million increase in fair value gains on financial
investments.
Financial Expenses
(in TRY million, unaudited) |
Three months ended Dec 31, |
Twelve months ended Dec 31, |
2023 |
2022 |
y/y % |
2023 |
2022 |
y/y% |
Commission expenses due to early collection of credit card
receivables |
(867.4) |
(452.0) |
91.9% |
(1,826.3) |
(1,320.9) |
38.3% |
Foreign currency exchange losses |
(143.4) |
(65.7) |
118.3% |
(794.1) |
(774.7) |
2.5% |
Interest expenses on bank borrowings and lease
liabilities |
(42.8) |
(92.6) |
(53.8%) |
(298.2) |
(227.1) |
31.3% |
Interest expenses on purchases |
(522.0) |
(129.5) |
303.1% |
(1,079.5) |
(333.4) |
223.8% |
Fair value losses on financial assets measured at fair
value |
- |
(32.4) |
n.m. |
- |
(159.3) |
n.m. |
Other |
(3.3) |
(0.5) |
560.0% |
(12.0) |
(2.3) |
421.7% |
Financial expenses |
(1,578.9) |
(772.7) |
104.3% |
(4,010.1) |
(2,817.7) |
42.3% |
Fourth quarter 2023
Our financial expenses increased by 104.3%, or
TRY 806.2 million, to TRY 1,578.9 million in Q4 2023 compared to
TRY 772.7 million in Q4 2022, primarily attributable to a TRY 415.4
million increase in commission expenses due to early collection of
credit card receivables and a TRY 392.5 million increase in
interest expenses on purchases as a result of an increase in annual
effective interest rates and an increase in inventory procurement
during Q4 2023, each compared to Q4 2022.
Full year 2023
Our financial expenses increased by 42.3%, or
TRY 1,192.4 million, to TRY 4,010.1 million in 2023 compared to
2022, primarily attributable to a TRY 746.1 million increase in
interest expenses on purchases and a TRY 505.4 million increase in
commission expenses due to early collection of credit card
receivables as a result of an increase in annual effective interest
rates and an increase in inventory procurement during 2023, each
compared to 2022.
Net Income / (Loss)
Net loss for the period was TRY 644.1 million in
Q4 2023 down from a net loss of TRY 912.4 million in Q4 2022. This
TRY 268.3 million improvement resulted from the TRY 483.9 million
improvement in operating loss and a TRY 166.5 million increase in
monetary gain in Q4 2023 partially offset by a TRY 382.1 million
increase in net financial expense (net of financial income).
Net income for the year was TRY 75.5 million in
2023, up from a net loss of TRY 4,790.7 million in 2022. This TRY
4,866.2 million improvement resulted from the TRY 4,387.8 million
improvement in operating loss and a TRY 1,284.4 million increase in
monetary gain in 2023 partially offset by a TRY 805.9 million
decrease in net financial expense position (compared to a net
financial income position in 2022).
EBITDA
EBITDA was TRY 129.1 million in Q4 2023 compared
to negative TRY 415.1 million in Q4 2022, corresponding to 0.3%
EBITDA as a percentage of GMV in Q4 2023. This corresponded to a
1.6pp improvement in EBITDA as a percentage of GMV in Q4 2023
compared to Q4 2022. This improvement was driven by a 1.2pp rise in
Gross Contribution margin, a 0.5pp decline in advertising expenses
and a 0.3pp decline in payroll and outsource staff expenses as a
percentage of GMV, partially offset by a 0.3pp rise in shipping and
packaging expenses and a 0.1pp rise in other operating expenses,
net, in each case as a percentage of GMV.
EBITDA was TRY 449.2 million in 2023 compared to
negative TRY 4,267.9 million in 2022, corresponding to 0.4% EBITDA
as a percentage of GMV in 2023. This corresponded to a 5.2pp
improvement in EBITDA as a percentage of GMV in 2023 compared to
2022. This improvement was driven by a 2.7pp rise in Gross
Contribution margin, a 1.2pp decline in advertising expenses, a
0.3pp decline in payroll and outsource staff expenses, a 0.1pp
decline in shipping and packaging expenses and a 0.8pp decline in
other operating expenses, net, in each case as a percentage of
GMV.
Capex
Capex was TRY 333.9 million in Q4 2023 compared
to TRY 385.0 million in Q4 2022. In Q4 2023, around 75% of total
capex consisted of the costs of employees who are employed for the
development of the website and mobile platforms for both core and
strategic assets, and whose costs are capitalized, compared to
around 73% in Q4 2022. Remaining capex mainly comprised the
purchase of property and equipment as well as software and
rights.
Capex was TRY 1,146.2 million in 2023 compared
to TRY 1,392.3 million in 2022. In 2023, around 79% of total capex
consisted of the costs of employees who are employed for the
development of website and mobile platforms for both core and
strategic assets, and whose costs are capitalized, compared to
around 68% in 2022. Remaining capex mainly consisted of the
purchase of property and equipment and software and rights. As a
percentage of GMV, capex was around 1.0% in 2023 compared to 1.6%
in 2022.
Net Working Capital
Net working capital was negative TRY 5,906.5
million as of December 31, 2023 compared to negative TRY 7,383.0
million as of December 31, 2022. The TRY 1,476.5 million change in
negative net working capital was mainly driven by a TRY 1,278.8
million increase in trade receivables, and a TRY 1,018.4 million
increase in inventories, partially offset by a TRY 863.6 million
increase in trade payables and payables to merchants. The increase
in trade receivables was mainly due to a higher BNPL receivables
balance. While the average inventory days in 2023 was lower than
the average for 2022, the increase in inventories was due to longer
inventory turnover days as at December 31, 2023 compared to
December 31, 2022. Meanwhile, payable turnover days on a
year-on-year basis declined as at December 31, 2023 compared to
December 31, 2022.
Cash Flow from Operating Activities
Our net cash provided by operating activities in
Q4 2023 comprised a TRY 644.1 million net loss (Q4 2022: net loss
of TRY 912.4 million), a TRY 973.8 million change in net working
capital (Q4 2022: TRY 2,290.5 million) and a TRY 2,853.9 million
change in other items (comprising non-cash items such as provisions
and depreciation expenses as well as certain non-operating items
such as financial income & expense, non-operating monetary
gains & losses and unrealized foreign exchange differences) (Q4
2022: TRY 752.8 million). The change in net working capital is
further disclosed in the ‘’Net Working Capital’’ section.
Net cash provided by operating activities
increased by TRY 1,052.7 million to TRY 3,183.6 million in Q4 2023
compared to net cash provided by operating activities in Q4 2022 of
TRY 2,130.9 million for the reasons described under the ‘Free Cash
Flow’ section below.
Our net cash provided by operating activities in
2023 comprised a TRY 75.5 million net income (2022: net loss of TRY
4,790.7 million), a negative TRY 1,533.7 million change in net
working capital (2022: TRY 829.7 million) and a TRY 6,477.3 million
change in other items (comprising non-cash items such as provision
and depreciation expenses as well as certain non-operating items
such as financial income & expenses, non-operating monetary
gains & losses and unrealized foreign exchange differences)
(2022: TRY 4,667.8 million). The change in net working capital is
further disclosed in the ‘’Net Working Capital’’ section.
Net cash provided by operating activities
increased by TRY 4,312.3 million to TRY 5,019.1 million in 2023
compared to net cash provided by operating activities in 2022 of
TRY 706.8 million for the reasons described under the ‘Free Cash
Flow’ section below.
Free Cash Flow
Our free cash flow increased to TRY 2,849.7
million in Q4 2023 from TRY 1,745.9 million in Q4 2022. This
increase was mainly driven by the increase in cash flows generated
from operating activities due to the increase in change in net
working capital of TRY 973.8 million as a result of increased 3P
payables due to the seasonality in December and lower amount of
inventory, the strong EBITDA performance of TRY 129.1 million and
the impact of the realized foreign exchange of TRY 1,244.6
million.
Our free cash flow increased to TRY 3,873.0
million in 2023 from negative TRY 685.5 million in 2022. This
increase was mainly driven by the rise in cash flow provided by
operating activities, which is as a result of a significant
improvement in EBITDA as well as working capital help gained due to
the seasonality of our 3P operations in December, along with the
impact of realized foreign exchange differences in the amount of
TRY 2,085.7 million. The decrease in capex in 2023 also contributed
positively to the free cash flow performance.
Total Cash and Financial
Investments
Total cash and cash equivalents was at TRY
5,500.0 million as of December 31, 2023 compared to TRY 8,677.0
million as of December 31, 2022. The TRY 3,177.0 million decrease
was mainly due to slower appreciation of the U.S. dollar against
the Turkish Lira and lower time deposit interest rates compared to
the twelve-month inflation as well as higher cash used in financing
activities and purchases of financial investments.
Total financial investments as of December 31,
2023 amounts to TRY 1,722.7 million. Our financial investments
consist of a financial asset measured at fair value through profit
or loss and financial assets carried at amortized costs, including
investment funds and Eurobonds.
We held around 79.2% of our total cash, cash
equivalents and financial investments in U.S. dollars as of
December 31, 2023.
Bank Borrowings
Our short-term bank borrowings are utilized to
facilitate supplier and merchant financing as well as for our
short-term liquidity needs in the ordinary course of our
operations. Our short-term borrowings increased to TRY 183.5
million as of December 31, 2023, from TRY 21.5 million as of
December 31, 2022. As of December 31, 2023, supplier and merchant
financing loans corresponded to TRY 17.7 million of the short-term
bank borrowings compared to TRY 1.3 million as of December 31,
2022. Our long-term borrowings decreased from TRY 18.0 million as
of December 31, 2022 to TRY 2.8 million as of December 31,
2023.
All of our bank borrowings are denominated in
Turkish Lira. As of December 31, 2023, the average annual effective
interest rate for bank borrowings (excluding those non-interest
bearing loans) was 20.2% compared to 21.3% as of December 31,
2022.
Conference Call Details
The Company’s management will host an analyst
and investor conference call and live webcast to discuss its
unaudited financial results today, Monday, March 25, 2024 at 4.00
p.m. Istanbul time / 1.00 p.m. London / 9.00 a.m. New York
time.
The live webcast can be accessed via
https://87399.themediaframe.eu/links/hepsiburada240325.html
Telephone Participation Dial in
Details:
|
+ 90 212 900 3719 |
|
+ 44 (0) 203 059 5872 |
|
+ 1 516 447 5632 |
Participants may choose any of the above numbers
to participate should they wish to ask questions.
The Company’s results
presentation will be available at the Hepsiburada Investor
Relations website https://investors.hepsiburada.com on March
25, 2024.
Replay: Following the call, a
replay will be available on the Hepsiburada Investor Relations
website https://investors.hepsiburada.com. D-MARKET
Electronic Services & Trading
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023 unless otherwise indicated.)
|
31 December 2023 (unaudited) |
31 December 2022(unaudited) |
|
|
|
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
5,500,000 |
8,676,955 |
Restricted cash |
167,312 |
177,011 |
Financial investments |
1,722,744 |
28,929 |
Trade receivables |
2,373,275 |
1,094,456 |
Due from related parties |
9,182 |
2,830 |
Loan receivables |
0 |
5,790 |
Inventories |
3,964,987 |
2,946,547 |
Contract assets |
22,431 |
25,290 |
Other current assets |
864,313 |
847,114 |
|
|
|
Total current assets |
14,624,244 |
13,804,922 |
|
|
|
Non-current assets: |
|
|
Property and equipment |
502,743 |
556,917 |
Intangible assets |
1,853,586 |
1,393,672 |
Right of use assets |
565,523 |
722,599 |
Loan receivables |
799 |
6,356 |
Other non-current assets |
33,720 |
103,837 |
|
|
|
Total non-current assets |
2,956,371 |
2,783,381 |
|
|
|
Total assets |
17,580,615 |
16,588,303 |
LIABILITIES AND EQUITY |
|
|
Current liabilities: |
|
|
Bank borrowings |
183,472 |
21,501 |
Lease liabilities |
154,573 |
259,375 |
Wallet deposits |
188,412 |
187,006 |
Trade payables and payables to merchants |
10,562,999 |
9,699,421 |
Due to related parties |
4,638 |
9,192 |
Provisions |
81,728 |
650,895 |
Employee benefit obligations |
289,410 |
257,159 |
Contract liabilities and merchant advances |
1,424,467 |
1,052,167 |
Other current liabilities |
756,389 |
626,186 |
|
|
|
Total current liabilities |
13,646,088 |
12,762,902 |
|
|
|
Non-current assets: |
|
|
Bank borrowings |
2,809 |
18,000 |
Lease liabilities |
121,820 |
172,934 |
Employee benefit obligations |
104,284 |
27,117 |
Other non-current liabilities |
402,835 |
241,552 |
|
|
|
Total non-current liabilities |
631,748 |
459,603 |
Equity: |
|
|
Share capital |
498,661 |
498,661 |
Treasury shares |
(169,843) |
- |
Other capital reserves |
637,738 |
531,337 |
Share premiums |
14,483,368 |
14,483,368 |
Accumulated deficit |
(12,147,145) |
(12,147,568) |
|
|
|
Total equity |
3,302,779 |
3,365,798 |
Total equity and liabilities |
17,580,615 |
16,588,303 |
D-MARKET Electronic Services &
Trading
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(Amounts expressed in thousands of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023 unless otherwise indicated. Unaudited.)
|
Twelve Months Ended |
Three Months Ended |
|
31 December 2023 |
31 December 2022 |
31 December 2023 |
31 December 2022 |
|
(unaudited) |
(unaudited) |
(unaudited) |
(unaudited) |
|
|
|
|
|
Revenues |
35,558,521 |
26,478,009 |
11,811,921 |
9,120,471 |
|
|
|
|
|
Operating expenses |
|
|
|
|
Cost of inventory sold |
(24,788,674) |
(20,723,995) |
(8,194,917) |
(6,613,734) |
Shipping and packaging expenses |
(3,323,926) |
(2,629,327) |
(1,124,936) |
(817,111) |
Payroll and outsource staff expenses |
(3,504,010) |
(2,949,586) |
(1,062,107) |
(943,830) |
Advertising expenses |
(2,427,752) |
(2,908,700) |
(857,527) |
(845,579) |
Technology expenses |
(412,177) |
(302,220) |
(130,111) |
(80,801) |
Depreciation and amortization |
(1,174,133) |
(844,891) |
(354,624) |
(294,265) |
Other operating expenses |
(1,131,805) |
(1,361,640) |
(386,002) |
(273,365) |
Other operating income |
478,979 |
129,600 |
72,814 |
38,837 |
|
|
|
|
|
Operating loss |
(724,977) |
(5,112,750) |
(225,489) |
(709,377) |
|
|
|
|
|
Financial income |
3,539,610 |
3,153,151 |
763,898 |
339,763 |
Financial expenses |
(4,010,055) |
(2,817,667) |
(1,578,895) |
(772,657) |
Monetary gains/ (losses) |
1,270,956 |
(13,421) |
396,399 |
229,861 |
|
|
|
|
|
Income/(loss) before income taxes |
75,534 |
(4,790,687) |
(644,087) |
(912,410) |
|
|
|
|
|
Taxation on income |
- |
- |
- |
- |
|
|
|
|
|
Income/(loss) for the period |
75,534 |
(4,790,687) |
(644,087) |
(912,410) |
|
|
|
|
|
Basic and diluted income/(loss) per share |
0.23 |
(14.70) |
(1.98) |
(2.80) |
|
|
|
|
|
Other comprehensive loss:Items that will
not be reclassified to |
|
|
|
|
profit or loss in subsequent period: |
|
|
|
|
Actuarial gains/(losses) arising on remeasurement of |
|
|
|
|
post-employment benefits |
(75,111) |
(23,041) |
(8,945) |
1,986 |
|
|
|
|
|
Items that will be reclassified to |
|
|
|
|
profit or loss in subsequent period: |
|
|
|
|
Changes in the fair value of debt instruments at fair value through
other comprehensive income |
- |
- |
- |
4,704 |
|
|
|
|
|
Total comprehensive income/(loss) for the
period |
424 |
(4,813,727) |
(653,032) |
(905,720) |
D-MARKET Electronic Services &
Trading
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts expressed in thousands of Turkish lira (TRY)
in terms of the purchasing power of the TRY at 31 December 2023
unless otherwise indicated. Unaudited.)
|
1 January – |
1 January – |
31 December 2023 |
31 December2022 |
|
(unaudited) |
(unaudited) |
Income/(loss) before income taxes |
75,534 |
(4,790,687) |
Adjustments to reconcile income before income taxes to cash
flows from operating activities: |
6,477,307 |
4,667,832 |
Interest and commission expenses |
3,203,949 |
1,881,386 |
Depreciation and amortization |
1,174,133 |
844,891 |
Interest income on time deposits |
(504,054) |
(331,436) |
Interest income on financial instruments |
(1,184) |
- |
Interest income on credit sales |
(372,293) |
(206,913) |
Provision for unused vacation liability |
78,731 |
40,304 |
Provision for personnel bonus |
234,176 |
210,382 |
Provision for legal cases |
18,604 |
22,312 |
Provision for doubtful receivables |
49,046 |
32,084 |
Provision for impairment of trade goods, net |
34,832 |
(17,416) |
Provision for post-employment benefits |
57,644 |
6,661 |
Provision for share based payment |
106,402 |
250,623 |
Adjustment for impairment loss of financial investments |
(237,515) |
74,982 |
Provision for the Competition Board penalty |
(126,589) |
(9,556) |
Provision for Settlement of Legal Proceedings |
- |
462,451 |
Provision for Turkish Capital Markets Board fee |
24,028 |
39,125 |
Contribution income for settlement |
(121,820) |
- |
Non-cash charges |
- |
- |
Net foreign exchange differences |
(285,785) |
(2,346,840) |
Change in provisions due to inflation |
(295,992) |
(281,487) |
Monetary effect on non-operating activities |
3,440,994 |
3,996,279 |
Changes in net working capital |
|
|
Change in trade payables and payables to merchants |
1,044,052 |
(1,296,827) |
Change in inventories |
(1,174,588) |
1,810,144 |
Change in trade receivables |
(1,448,682) |
(469,931) |
Change in contract liabilities and merchant advances |
290,783 |
458,745 |
Change in contract assets |
2,859 |
(5,392) |
Change in other liabilities |
292,892 |
212,391 |
Change in other assets and receivables |
73,962 |
340,991 |
Change in due from related parties |
(6,352) |
3,082 |
Change in due to related parties |
(8,594) |
(41,879) |
Post-employment benefits paid |
(20,725) |
(8,087) |
Payments for concluded litigation |
(394,783) |
(45,688) |
Payments for personnel bonus |
(175,698) |
(123,261) |
Payments for unused vacation liabilities |
(11,236) |
(4,617) |
Collections of doubtful receivables |
2,388 |
- |
Net cash provided by operating activities |
5,019,119 |
706,816 |
Investing activities: |
|
|
Purchases of property and equipment and intangible assets |
(1,153,718) |
(1,393,082) |
Proceeds from sale of property and equipment |
7,558 |
822 |
Purchase of financial instruments |
(5,072,151) |
(2,589,242) |
Proceeds from sale of financial investment |
3,427,578 |
5,264,726 |
Interest received on credit sales |
598,998 |
206,913 |
Interest income on time
deposits and financial instruments |
513,446 |
323,143 |
Payment for acquired businesses, net of cash acquired |
- |
(7,579) |
Net cash (used in)/provided by investing
activities |
(1,678,289) |
1,805,701 |
Financing activities: |
|
|
Proceeds from borrowings |
577,338 |
1,556,602 |
Repayment of borrowings |
(379,753) |
(1,925,096) |
Interest and commission paid |
(3,172,108) |
(1,730,000) |
Lease payments |
(307,475) |
(330,946) |
Cash outflows from purchase of treasury shares |
(48,023) |
- |
Net cash used in financing activities |
(3,330,021) |
(2,429,440) |
|
|
|
Net increase in cash and cash equivalents |
10,809 |
83,077 |
|
|
|
Cash and cash equivalents at 1 January |
8,666,727 |
10,319,646 |
Inflation effect on cash and
cash equivalents |
(3,352,795) |
(3,343,308) |
Effects
of exchange rate changes on cash and cash equivalents and
restricted cash |
174,424 |
1,607,312 |
Cash and cash equivalents at 31 December |
5,499,165 |
8,666,727 |
Presentation of Financial and Other
Information
Use of Non-IFRS Financial
Measures
Certain parts of this press release contain
non-IFRS financial measures which are unaudited supplementary
measures and are not required by, or presented in accordance with,
IFRS or any other generally accepted accounting principles. Such
measures are IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross
Contribution, IAS 29-Unadjusted EBITDA, EBITDA, Gross Contribution,
Free Cash Flow and Net Working Capital. We define:
- IAS 29-Unadjusted
Revenue as revenue presented on an unadjusted for
inflation basis;
- IAS 29-Unadjusted Gross
Contribution as Gross Contribution presented on an
unadjusted for inflation basis;
- IAS 29-Unadjusted
EBITDA as EBITDA presented on an unadjusted for inflation
basis;
- EBITDA as profit
or loss for the period plus taxation on income less financial
income plus financial expenses, plus depreciation and amortization,
plus monetary gains/(losses);
- Gross Contribution
as revenues less cost of inventory sold;
- Free Cash Flow as
net cash provided by operating activities less capital expenditures
plus proceeds from sale of property and equipment; and
- Net
Working Capital as current assets (excluding cash, cash
equivalents and financial investments) minus current liabilities
(excluding current bank borrowings and current lease
liabilities).
You should not consider them as: (a) an
alternative to operating profit or net profit (net income) as
determined in accordance with IFRS or other generally accepted
accounting principles, or as measures of operating performance; (b)
an alternative to cash flows from operating, investing or financing
activities, as determined in accordance with IFRS or other
generally accepted accounting principles, or as a measure of our
ability to meet liquidity needs; or (c) an alternative to any other
measures of performance under IFRS or other generally accepted
accounting principles.
These measures are used by our management to
monitor the underlying performance of the business and our
operations. However, not all companies calculate these measures in
an identical manner and, therefore, our presentation may not be
comparable with similar measures used by other companies. As a
result, prospective investors should not place undue reliance on
this data.
This section includes a reconciliation of
certain of these non-IFRS measures to the closest IFRS measure.
EBITDA is a supplemental non-IFRS financial
measure that is not required by, or presented in accordance with,
IFRS. We have included EBITDA in this press release because it is a
key measure used by our management and board of directors to
evaluate our operating performance, generate future operating plans
and make strategic decisions regarding the allocation of capital.
In particular, the exclusion of certain expenses and, from the date
of applicability of IAS 29, related monetary gains/(losses), in
calculating EBITDA facilitates operating performance comparability
across reporting periods by removing the effect of non-cash
expenses (including monetary gains/(losses)) and non-operating
expense/(income). One of the objectives of IAS 29 is to account for
the financial gain or loss that arises from holding monetary assets
or liabilities during a reporting period (i.e. the monetary
gains/(losses)). Therefore, the monetary gains/(losses) are
excluded from EBITDA for a proper comparison of the operational
performance of the Company. Accordingly, we believe that EBITDA
provides useful information to investors in understanding and
evaluating our operating results in the same manner as our
management and board of directors.
Management uses EBITDA:
- as a measurement
of operating performance because it assists us in comparing our
operating performance on a consistent basis, as it removes the
impact of non-cash and non-operating items;
- for planning
purposes, including the preparation of our internal annual
operating budget and financial projections; and
- to evaluate the
performance and effectiveness of our strategic initiatives.
EBITDA has limitations as a financial measure,
including that other companies may calculate EBITDA differently,
which reduces its usefulness as a comparative measure and you
should not consider it in isolation or as a substitute for
profit/(loss) for the period, as a profit measure or other analysis
of our results as reported under IFRS.
The following table shows the reconciliation of
EBITDA to net income/(loss) for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023. Unaudited.
(in TRY million) |
Three months ended December 31
, |
Twelve months ended December
31, |
|
2023 |
2022 |
2023 |
2022 |
Net income/(loss) for the period |
(644.1) |
(912.4) |
75.5 |
(4,790.7) |
Taxation on income |
0.0 |
0.0 |
0.0 |
0.0 |
Financial income |
763.9 |
339.8 |
3,539.6 |
3,153.2 |
Financial expenses |
(1,578.9) |
(772.7) |
(4,010.1) |
(2,817.7) |
Depreciation and amortization |
(354.6) |
(294.3) |
(1,174.1) |
(844.9) |
Monetary gains/(losses) |
396.4 |
229.9 |
1,270.9 |
(13.4) |
EBITDA |
129.1 |
(415.1) |
449.2 |
(4,267.9) |
Gross contribution is a supplemental non-IFRS
financial measure that is not required by, or presented in
accordance with, IFRS. We have included gross contribution in this
press release because it is a key measure used by our management
and board of directors to evaluate our operational profitability as
it reflects direct costs of products sold to our buyers.
Accordingly, we believe that gross contribution provides useful
information to investors in understanding and evaluating our
operating results in the same manner as our management and board of
directors.
Gross contribution has limitations as a
financial measure, including that other companies may calculate
gross contribution differently, which reduces its usefulness as a
comparative measure and you should not consider it in isolation or
as a substitute for profit/(loss) for the period, as a profit
measure or other analysis of our results as reported under
IFRS.
The following table shows the reconciliation of
gross contribution to revenue for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023. Unaudited.
|
Three months ended December
31, |
Twelve months ended December
31, |
|
2023 |
2022 |
2023 |
2022 |
Revenue |
11,811.9 |
9,120.5 |
35,558.5 |
26,478.0 |
Cost of inventory sold |
(8,194.9) |
(6,613.7) |
(24,788.7) |
(20,724.0) |
Gross Contribution |
3,617.0 |
2,506.8 |
10,769.8 |
5,754.0 |
IAS 29-Unadjusted Revenue, IAS 29-Unadjusted
Gross Contribution and IAS 29-Unadjusted EBITDA are supplemental
non-IFRS financial measures that are not required by, or presented
in accordance with, IFRS. We have included IAS 29-Unadjusted
Revenue, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted
EBITDA in this press release because we believe their inclusion
facilitates the understanding of Revenue, Gross Contribution and
EBITDA restated in accordance with IAS 29 as well as our year on
year GMV growth and profitability guidance.
IAS 29-Unadjusted Revenue, IAS 29-Unadjusted
Gross Contribution and IAS 29-Unadjusted EBITDA have limitations as
financial measures, including that other companies may calculate
IAS 29-Unadjusted Revenue, IAS 29-Unadjusted Gross Contribution and
IAS 29-Unadjusted EBITDA differently, which reduces their
usefulness as a comparative measure and you should not consider
them in isolation or as substitutes for revenue or profit/(loss)
for the period, as revenue or profit measures or other analysis of
our results as reported under IFRS.
The following table shows the reconciliation of
IAS 29-Unadjusted Revenue to revenue for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023. Unaudited.
|
Three months ended December
31, |
Twelve months ended December
31, |
|
2023 |
2022 |
2023 |
2022 |
Revenue |
11,811.9 |
9,120.5 |
35,558.5 |
26,478.0 |
Reversal of IAS 29 adjustment |
406.1 |
3,673.7 |
6,265.6 |
12,435.8 |
IAS 29-Unadjusted Revenue |
11,405.8 |
5,446.8 |
29,292.9 |
14,042.2 |
The following table shows the reconciliation of
IAS 29-Unadjusted Gross Contribution to revenue for the periods
presented.
Amounts expressed in millions of Turkish lira
(TRY); IFRS figures (adjusted for IAS 29) in terms of the
purchasing power of the TRY at 31 December 2023. Unaudited.
|
Three months ended December 31, |
Twelve months ended December 31, |
|
2023 |
2022 |
2023 |
2022 |
Revenue |
11,811.9 |
9,120.5 |
35,558.5 |
26,478.0 |
Cost of inventory sold |
(8,194.9) |
(6,613.7) |
(24,788.7) |
(20,724.0) |
Gross Contribution |
3,617.0 |
2,506.8 |
10,769.8 |
5,754.0 |
Reversal of IAS 29 adjustment |
(312.3) |
753.0 |
544.8 |
1,491.7 |
IAS 29 - Unadjusted Gross Contribution |
3,929.3 |
1,753.8 |
10,225.0 |
4,262.3 |
The following tables show the reconciliation of
IAS 29-Unadjusted EBITDA to net income/(loss) for the periods
presented.
Amounts expressed in millions of Turkish lira
(TRY); IFRS figures (adjusted for IAS 29) in terms of the
purchasing power of the TRY at 31 December 2023. Unaudited.
|
Three months ended |
|
31 December 2023 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted31 December
2023 |
31 December 2022 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted31 December
2022 |
Net
income/(loss) for the period |
(644.1) |
(312.7) |
(331.4) |
(912.4) |
(558.8) |
(353.6) |
Taxation on income |
- |
- |
- |
- |
- |
- |
Financial income |
763.9 |
19.2 |
744.7 |
339.8 |
136.0 |
203.8 |
Financial expenses |
(1,578.9) |
(123.4) |
(1,455.5) |
(772.7) |
(313.4) |
(459.3) |
Depreciation and
amortization |
(354.6) |
(178.3) |
(176.3) |
(294.3) |
(211.2) |
(83.1) |
Monetary gains |
396.4 |
396.4 |
- |
229.9 |
229.9 |
- |
IAS 29-Unadjusted EBITDA |
|
|
555.7 |
|
|
(15.0) |
Amounts expressed in millions of Turkish lira
(TRY); IFRS figures (adjusted for IAS 29) in terms of the
purchasing power of the TRY at 31 December 2023. Unaudited.
|
Twelve months ended |
|
31 December 2023 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted31 December
2023 |
31 December 2022 |
Reversal of IAS 29 Adjustment |
IAS 29-Unadjusted31 December
2022 |
Net
income/(loss) for the period |
75.5 |
(653.6) |
729.1 |
(4,790.7) |
(3,566.1) |
(1,224.6) |
Taxation on income |
- |
- |
- |
- |
- |
- |
Financial income |
3,539.6 |
732.2 |
2,807.4 |
3,153.2 |
1,615.1 |
1,538.1 |
Financial expenses |
(4,010.1) |
(697.8) |
(3,312.3) |
(2,817.7) |
(1,353.3) |
(1,464.4) |
Depreciation and
amortization |
(1,174.1) |
(658.6) |
(515.5) |
(844.9) |
(561.2) |
(283.7) |
Monetary gains/(losses) |
1,271.0 |
1,271.0 |
- |
(13.4) |
(13.4) |
- |
IAS 29-Unadjusted EBITDA |
|
|
1,749.5 |
|
|
(1,014.6) |
Free Cash Flow is a supplemental non-IFRS
financial measure that is not required by, or presented in
accordance with, IFRS. We have included Free Cash Flow in this
press release because it is an important indicator of our liquidity
as it measures the amount of cash we generate/(use) and provides
additional perspective on whether we have sufficient cash after
funding our operations and capital expenditures. Accordingly, we
believe that Free Cash Flow provides useful information to
investors in understanding and evaluating our operating results in
the same manner as our management and board of directors.
Free Cash Flow has limitations as a financial
measure, and you should not consider it in isolation or as
substitutes for net cash used in operating activities as a measure
of our liquidity or other analysis of our results as reported under
IFRS. There are limitations to using non-IFRS financial measures,
including that other companies may calculate Free Cash Flow
differently. Because of these limitations, you should consider Free
Cash Flow alongside other financial performance measures, including
net cash used in operating activities, capital expenditures and our
other IFRS results.
The following table shows the reconciliation of
Free Cash Flow to net cash provided by/used in operating activities
for the periods presented.
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023. Unaudited.
(in TRY million) |
Three months ended December
31, |
Twelve months ended December
31, |
|
2023 |
2022 |
2023 |
2022 |
Net
cash provided by/(used in) operating activities |
3,183.6 |
2,130.9 |
5,019.1 |
706.8 |
Capital expenditures |
(328.0) |
(385.3) |
(1,153.7) |
(1,393.1) |
Proceeds from the sale of
property and equipment |
(5.9) |
0.3 |
7.6 |
0.8 |
Free Cash Flow |
2,849.7 |
1,745.9 |
3,873.0 |
(685.5) |
Net Working Capital is a supplemental non-IFRS
financial measure that is not required by, or presented in
accordance with, IFRS. Starting from Q4 2021, we have revised the
definition of Net Working Capital to include the “financial
investments” balance on our balance sheet as at December 31, 2021.
As we believe financial investments are cash-like item by nature,
we deducted from current assets along with cash and cash
equivalents.
We have included Net Working Capital in this
press release because it is used to measure the short-term
liquidity of a business, and can also be used to obtain a general
impression of the ability of company management to utilize assets
in an efficient manner. Net Working Capital is critical since it is
used to keep our business operating smoothly and meet all our
financial obligations in the short-term. Accordingly, we believe
that Net Working Capital provides useful information to investors
in understanding and evaluating how we manage our short-term
liabilities.
The following table shows the reconciliation of
Net Working Capital to current assets and current liabilities as of
the dates indicated:
Amounts expressed in millions of Turkish lira
(TRY) in terms of the purchasing power of the TRY at 31 December
2023. Unaudited.
|
As of December 31, 2023 |
As of December 31, 2022 |
Current assets |
14,624.2 |
13,804.9 |
Cash and cash equivalents |
(5,500.0) |
(8,677.0) |
Financial investments |
(1,722.7) |
(28.9) |
Current liabilities |
(13,646.1) |
(12,762.9) |
Bank borrowings, current |
183.5 |
21.5 |
Lease liabilities, current |
154.6 |
259.4 |
Net Working Capital |
(5,906.5) |
(7,383.0) |
BREAKDOWN OF THE COMPARATIVE FIGURES
RESTATED BY INFLATIONCONSOLIDATED BALANCE
SHEETS (Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 December 2023.)
|
Restatement Method |
Unaudited Unadjusted31 Dec
2023 |
IAS 29Adjustment |
Unaudited Adjusted31 Dec
2023 |
Unaudited Unadjusted31 Dec
2022 |
IAS 29Adjustment |
Unaudited Adjusted31 Dec
2022 |
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
1 |
5,500,000 |
- |
5,500,000 |
5,266,008 |
3,410,947 |
8,676,955 |
Restricted cash |
1 |
167,312 |
- |
167,312 |
107,427 |
69,584 |
177,011 |
Financial investments |
1 |
1,722,744 |
- |
1,722,744 |
17,557 |
11,372 |
28,929 |
Trade receivables |
1 |
2,373,275 |
- |
2,373,275 |
664,221 |
430,235 |
1,094,456 |
Due from related parties |
1 |
9,182 |
- |
9,182 |
1,718 |
1,112 |
2,830 |
Loan receivables |
1 |
- |
- |
- |
3,514 |
2,276 |
5,790 |
Inventories |
2 |
3,795,869 |
169,118 |
3,964,987 |
1,724,330 |
1,222,217 |
2,946,547 |
Contract assets |
1 |
22,431 |
- |
22,431 |
15,348 |
9,942 |
25,290 |
Other current assets |
3 |
828,078 |
36,236 |
864,314 |
506,890 |
340,224 |
847,114 |
Total current assets |
|
14,418,891 |
205,354 |
14,624,245 |
8,307,013 |
5,497,909 |
13,804,922 |
Non-current assets: |
|
|
|
|
|
|
|
Property and equipment |
2 |
256,788 |
245,955 |
502,743 |
221,626 |
335,291 |
556,917 |
Intangible assets |
2 |
1,220,910 |
632,676 |
1,853,586 |
655,891 |
737,781 |
1,393,672 |
Right of use assets |
2 |
290,952 |
274,571 |
565,523 |
261,091 |
461,508 |
722,599 |
Loan receivables |
1 |
799 |
- |
799 |
3,858 |
2,498 |
6,356 |
Other non-current assets |
3 |
22,706 |
11,014 |
33,720 |
62,700 |
41,135 |
103,835 |
Total non-current assets |
|
1,792,155 |
1,164,216 |
2,956,371 |
1,205,166 |
1,578,213 |
2,783,379 |
Total assets |
|
16,211,046 |
1,369,570 |
17,580,616 |
9,512,179 |
7,076,122 |
16,588,301 |
LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Bank borrowings |
1 |
183,472 |
- |
183,472 |
13,049 |
8,452 |
21,501 |
Lease liabilities |
1 |
154,573 |
- |
154,573 |
157,414 |
101,961 |
259,375 |
Wallet deposits |
1 |
188,412 |
- |
188,412 |
113,493 |
73,513 |
187,006 |
Trade payables and payables to merchants |
1 |
10,562,999 |
- |
10,562,999 |
5,886,538 |
3,812,883 |
9,699,421 |
Due to related parties |
1 |
4,638 |
- |
4,638 |
5,579 |
3,613 |
9,192 |
Provisions |
1 |
81,728 |
- |
81,728 |
395,025 |
255,870 |
650,895 |
Employee benefit obligations |
1 |
289,410 |
- |
289,410 |
156,069 |
101,090 |
257,159 |
Contract liabilities and merchant advances |
1 |
1,424,467 |
- |
1,424,467 |
638,556 |
413,611 |
1,052,167 |
Other current liabilities |
3 |
698,322 |
58,067 |
756,389 |
367,091 |
259,095 |
626,186 |
Total current liabilities |
|
13,588,021 |
58,067 |
13,646,088 |
7,732,814 |
5,030,088 |
12,762,902 |
Non-current liabilities: |
|
|
|
|
|
|
|
Bank borrowings |
1 |
2,809 |
- |
2,809 |
10,924 |
7,076 |
18,000 |
Lease liabilities |
1 |
121,820 |
- |
121,820 |
104,953 |
67,981 |
172,934 |
Employee benefit obligations |
1 |
104,284 |
- |
104,284 |
16,457 |
10,660 |
27,117 |
Other non-current liabilities |
2 |
231,270 |
171,565 |
402,835 |
77,076 |
164,474 |
241,550 |
Total non-current liabilities |
|
460,183 |
171,565 |
631,748 |
209,410 |
250,191 |
459,601 |
Equity: |
|
|
|
|
|
|
|
Share capital |
4 |
65,200 |
433,461 |
498,661 |
65,200 |
433,461 |
498,661 |
Treasury shares |
4 |
(159,770) |
(10,073) |
(169,843) |
- |
- |
- |
Other capital reserves |
4 |
297,799 |
339,939 |
637,738 |
215,245 |
316,092 |
531,337 |
Share premiums |
4 |
4,260,737 |
10,222,631 |
14,483,368 |
4,260,737 |
10,222,631 |
14,483,368 |
Accumulated deficit |
5 |
(2,301,124) |
(9,846,020) |
(12,147,144) |
(2,971,227) |
(9,176,341) |
(12,147,568) |
Total equity |
|
2,162,842 |
1,139,938 |
3,302,780 |
1,569,955 |
1,795,843 |
3,365,798 |
Total equity and liabilities |
|
16,211,046 |
1,369,570 |
17,580,616 |
9,512,179 |
7,076,122 |
16,588,301 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 December 2023. Unaudited.)
|
|
Three Months Ended |
|
Restatement Method |
Unaudited Unadjusted31 Dec
2023 |
IAS 29Adjustment |
Unaudited Adjusted31 Dec
2023 |
Unaudited Unadjusted31
Dec2022 |
IAS 29Adjustment |
Unaudited Adjusted31
Dec2022 |
|
|
|
|
|
|
|
|
Sale of goods (1P) |
6 |
8,532,614 |
345,194 |
8,877,808 |
4,248,464 |
2,864,931 |
7,113,395 |
Marketplace revenue (3P) |
6 |
1,250,810 |
31,394 |
1,282,204 |
562,775 |
379,750 |
942,525 |
Delivery service revenue |
6 |
1,235,726 |
34,575 |
1,270,301 |
513,560 |
346,725 |
860,285 |
Other |
6 |
386,721 |
(5,113) |
381,608 |
121,915 |
82,351 |
204,266 |
Revenues |
|
11,405,871 |
406,050 |
11,811,921 |
5,446,714 |
3,673,757 |
9,120,471 |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Cost of inventory sold |
7 |
(7,476,521) |
(718,396) |
(8,194,917) |
(3,693,034) |
(2,920,700) |
(6,613,734) |
Shipping and packaging expenses |
6 |
(1,093,087) |
(31,849) |
(1,124,936) |
(488,015) |
(329,096) |
(817,111) |
Payroll and outsource staff expenses |
6 |
(1,023,673) |
(38,434) |
(1,062,107) |
(566,657) |
(377,173) |
(943,830) |
Advertising expenses |
6 |
(834,545) |
(22,982) |
(857,527) |
(507,901) |
(337,678) |
(845,579) |
Technology expenses |
9 |
(100,262) |
(29,849) |
(130,111) |
(46,865) |
(33,936) |
(80,801) |
Depreciation and amortization |
8 |
(176,286) |
(178,338) |
(354,624) |
(83,162) |
(211,103) |
(294,265) |
Other operating expenses |
9 |
(374,141) |
(11,861) |
(386,002) |
(178,809) |
(94,556) |
(273,365) |
Other operating income |
9 |
52,069 |
20,745 |
72,814 |
19,654 |
19,183 |
38,837 |
|
|
|
|
|
|
|
|
Operating Income/(loss) |
|
379,425 |
(604,914) |
(225,489) |
(98,075) |
(611,302) |
(709,377) |
|
|
|
|
|
|
|
|
Financial income |
6 |
744,747 |
19,151 |
763,898 |
203,765 |
135,999 |
339,764 |
Financial expenses |
6 |
(1,455,530) |
(123,365) |
(1,578,895) |
(459,291) |
(313,366) |
(772,657) |
Monetary gains |
10 |
- |
396,399 |
396,399 |
- |
229,861 |
229,861 |
|
|
|
|
|
|
|
|
Loss before income taxes |
|
(331,358) |
(312,729) |
(644,087) |
(353,601) |
(558,808) |
(912,409) |
|
|
|
|
|
|
|
|
Taxation on income |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Loss for the period |
|
(331,358) |
(312,729) |
(644,087) |
(353,601) |
(558,808) |
(912,409) |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE
LOSS
(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 December 2023. Unaudited.)
|
|
Twelve Months Ended |
|
Restatement Method |
Unaudited Unadjusted31 Dec
2023 |
IAS 29Adjustment |
Unaudited Adjusted31 Dec
2023 |
Unaudited Unadjusted31 Dec
2022 |
IAS 29Adjustment |
Unaudited Adjusted31 Dec
2022 |
|
|
|
|
|
|
|
|
Sale of goods (1P) |
6 |
21,709,907 |
4,643,599 |
26,353,506 |
10,974,778 |
9,760,745 |
20,735,523 |
Marketplace revenue (3P) |
6 |
3,646,859 |
839,543 |
4,486,402 |
1,495,318 |
1,309,563 |
2,804,881 |
Delivery service revenue |
6 |
3,004,154 |
618,259 |
3,622,413 |
1,306,660 |
1,143,661 |
2,450,321 |
Other |
6 |
931,971 |
164,229 |
1,096,200 |
265,453 |
221,831 |
487,284 |
Revenues |
|
29,292,891 |
6,265,630 |
35,558,521 |
14,042,209 |
12,435,800 |
26,478,009 |
|
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
|
|
Cost of inventory sold |
7 |
(19,067,923) |
(5,720,751) |
(24,788,674) |
(9,779,890) |
(10,944,105) |
(20,723,995) |
Shipping and packaging expenses |
6 |
(2,751,873) |
(572,053) |
(3,323,926) |
(1,380,357) |
(1,248,970) |
(2,629,327) |
Payroll and outsource staff expenses |
6 |
(2,838,425) |
(665,585) |
(3,504,010) |
(1,554,517) |
(1,395,069) |
(2,949,586) |
Advertising expenses |
6 |
(2,029,835) |
(397,917) |
(2,427,752) |
(1,515,965) |
(1,392,735) |
(2,908,700) |
Technology expenses |
9 |
(297,945) |
(114,232) |
(412,177) |
(147,925) |
(154,295) |
(302,220) |
Depreciation and amortization |
8 |
(515,470) |
(658,663) |
(1,174,133) |
(283,726) |
(561,165) |
(844,891) |
Other operating expenses |
9 |
(916,911) |
(214,894) |
(1,131,805) |
(735,796) |
(625,844) |
(1,361,640) |
Other operating income |
9 |
359,506 |
119,473 |
478,979 |
57,652 |
71,948 |
129,600 |
|
|
|
|
|
|
|
|
Operating Income/(loss) |
|
1,234,015 |
(1,958,992) |
(724,977) |
(1,298,315) |
(3,814,435) |
(5,112,750) |
|
|
|
|
|
|
|
|
Financial income |
6 |
2,807,388 |
732,221 |
3,539,609 |
1,538,076 |
1,615,075 |
3,153,151 |
Financial expenses |
6 |
(3,312,349) |
(697,706) |
(4,010,055) |
(1,464,353) |
(1,353,314) |
(2,817,667) |
Monetary gains/(losses) |
10 |
- |
1,270,958 |
1,270,958 |
- |
(13,420) |
(13,420) |
|
|
|
|
|
|
|
|
Income/(loss) before income taxes |
|
729,054 |
(653,519) |
75,535 |
(1,224,592) |
(3,566,094) |
(4,790,686) |
|
|
|
|
|
|
|
|
Taxation on income |
- |
- |
- |
- |
- |
- |
- |
|
|
|
|
|
|
|
|
Income/(loss) for the period |
|
729,054 |
(653,519) |
75,535 |
(1,224,592) |
(3,566,094) |
(4,790,686) |
CONSOLIDATED STATEMENTS OF CASH
FLOWS(Amounts expressed in thousands of Turkish lira
(TRY); adjusted figures in terms of the purchasing power of the TRY
at 31 December 2023. Unaudited.)
|
Unaudited |
|
Unaudited |
Unaudited |
|
Unaudited |
|
Unadjusted |
|
Adjusted |
Unadjusted |
|
Adjusted |
|
1 Jan- 31 Dec 2023 |
IAS 29 adjustment |
1 Jan- 31 Dec 2023 |
1 Jan- 31 Dec 2022 |
IAS 29 adjustment |
1 Jan- 31 Dec 2022 |
Income/(loss) before income taxes |
729,055 |
(653,521) |
75,534 |
(1,224,592) |
(3,566,098) |
(4,790,690) |
Adjustments to reconcile income/(loss) before income taxes
to cash flows from operating activities: |
2,239,746 |
4,237,561 |
6,477,307 |
408,094 |
4,259,738 |
4,667,832 |
Interest and commission expenses |
2,685,875 |
518,074 |
3,203,949 |
1,002,410 |
878,976 |
1,881,386 |
Depreciation and amortization |
515,470 |
658,663 |
1,174,133 |
283,726 |
561,165 |
844,891 |
Interest income on time deposits |
(413,900) |
(90,154) |
(504,054) |
(182,905) |
(148,531) |
(331,436) |
Interest income on credit sales |
(326,169) |
(46,124) |
(372,293) |
(111,650) |
(95,263) |
(206,913) |
Interest income on financial investment |
(1,184) |
- |
(1,184) |
- |
- |
- |
Provision for unused vacation liability |
61,577 |
17,154 |
78,731 |
20,659 |
19,645 |
40,304 |
Provision for personnel bonus |
131,671 |
102,505 |
234,176 |
91,849 |
118,533 |
210,382 |
Provision for legal cases |
14,550 |
4,054 |
18,604 |
11,437 |
10,875 |
22,312 |
Provision for doubtful receivables |
38,360 |
10,686 |
49,046 |
16,445 |
15,639 |
32,084 |
Provision for impairment of trade goods, net |
31,966 |
2,866 |
34,832 |
16,934 |
(34,350) |
(17,416) |
Provision for post-employment benefits |
45,084 |
12,560 |
57,644 |
3,414 |
3,247 |
6,661 |
Provision for share based payment |
82,554 |
23,848 |
106,402 |
129,975 |
120,648 |
250,623 |
Adjustment for impairment loss of financial investments |
(171,924) |
(65,591) |
(237,515) |
30,403 |
44,579 |
74,982 |
Provision competition board penalty |
(92,018) |
(34,571) |
(126,589) |
(5,732) |
(3,824) |
(9,556) |
Provision for Settlement of Legal Proceedings |
- |
- |
- |
260,375 |
202,076 |
462,451 |
Provision for Turkish Capital Markets Board fee |
18,792 |
5,236 |
24,028 |
23,745 |
15,380 |
39,125 |
Contribution income for settlement |
(110,791) |
(11,029) |
(121,820) |
- |
- |
- |
Net foreign exchange differences |
(270,167) |
(15,618) |
(285,785) |
(1,182,991) |
(1,163,848) |
(2,346,839) |
Non cash charges |
- |
- |
- |
- |
- |
- |
Change in provisions due to inflation |
- |
(295,992) |
(295,992) |
- |
(281,487) |
(281,487) |
Monetary effect on non-operating activities |
- |
3,440,994 |
3,440,994 |
- |
3,996,278 |
3,996,278 |
Changes in net working capital |
|
|
|
|
|
|
Change in trade payables and payables to merchants |
4,851,802 |
(3,807,750) |
1,044,052 |
1,823,865 |
(3,120,692) |
(1,296,827) |
Change in inventories |
(2,247,322) |
1,072,734 |
(1,174,588) |
(101,785) |
1,911,929 |
1,810,144 |
Change in trade receivables |
(1,862,836) |
414,154 |
(1,448,682) |
(440,670) |
(29,261) |
(469,931) |
Change in contract liabilities and merchant advances |
707,410 |
(416,627) |
290,783 |
419,315 |
39,430 |
458,745 |
Change in contract assets |
(7,082) |
9,941 |
2,859 |
(7,997) |
2,605 |
(5,392) |
Change in other liabilities |
560,947 |
(268,055) |
292,892 |
261,209 |
(48,817) |
212,392 |
Change in other assets and receivables |
(334,507) |
408,469 |
73,962 |
(146,198) |
487,189 |
340,991 |
Change in due from related parties |
(7,465) |
1,113 |
(6,352) |
467 |
2,615 |
3,082 |
Change in due to related parties |
(4,100) |
(4,494) |
(8,594) |
(15,530) |
(26,349) |
(41,879) |
Post-employment benefits paid |
(16,209) |
(4,516) |
(20,725) |
(4,145) |
(3,942) |
(8,087) |
Payments for concluded litigation |
(276,638) |
(118,145) |
(394,783) |
(27,221) |
(18,467) |
(45,688) |
Payments for personnel bonus |
(119,982) |
(55,716) |
(175,698) |
(53,028) |
(70,233) |
(123,261) |
Payments for unused vacation liabilities |
(9,805) |
(1,431) |
(11,236) |
(2,433) |
(2,184) |
(4,617) |
Collections of doubtful receivables |
1,867 |
521 |
2,388 |
- |
- |
- |
Net cash provided by/(used in) operating
activities |
4,204,881 |
814,238 |
5,019,119 |
889,351 |
(182,537) |
706,814 |
Investing activities: |
|
|
|
|
|
|
Purchases of property and equipment and intangible assets |
(882,699) |
(271,019) |
(1,153,718) |
(735,770) |
(657,312) |
(1,393,082) |
Proceeds from sale of property and equipment |
3,101 |
4,457 |
7,558 |
(1,911) |
2,733 |
822 |
Purchase of financial instruments |
(4,685,094) |
(387,057) |
(5,072,151) |
(1,331,031) |
(1,258,211) |
(2,589,242) |
Proceeds from sale of financial investment |
3,282,194 |
145,384 |
3,427,578 |
2,820,394 |
2,444,332 |
5,264,726 |
Interest received on time
deposits and financial instruments |
419,271 |
94,175 |
513,446 |
177,355 |
145,788 |
323,143 |
Interest received on credit
sales |
518,224 |
80,774 |
598,998 |
111,650 |
95,263 |
206,913 |
Payment for acquired businesses, net of cash acquired |
- |
- |
- |
(3,439) |
(4,140) |
(7,579) |
Net cash provided by/(used in) investing
activities |
(1,345,003) |
(333,286) |
(1,678,289) |
1,037,248 |
768,453 |
1,805,701 |
Financing activities: |
|
|
|
|
|
|
Proceeds from borrowings |
451,546 |
125,792 |
577,338 |
797,877 |
758,725 |
1,556,602 |
Repayment of borrowings |
(297,011) |
(82,742) |
(379,753) |
(986,758) |
(938,338) |
(1,925,096) |
Interest and commission paid |
(2,648,592) |
(523,516) |
(3,172,108) |
(924,813) |
(805,187) |
(1,730,000) |
Lease payments |
(240,482) |
(66,993) |
(307,475) |
(169,635) |
(161,311) |
(330,946) |
Cash outflows from purchase of treasury shares |
(48,979) |
956 |
(48,023) |
- |
- |
- |
Net cash used in financing activities |
(2,783,518) |
(546,503) |
(3,330,021) |
(1,283,329) |
(1,146,111) |
(2,429,440) |
Net (decrease)/increase in cash and cash
equivalents |
76,360 |
(65,551) |
10,809 |
643,270 |
(560,195) |
83,075 |
Cash and cash equivalents at 1 January |
5,259,801 |
3,406,926 |
8,666,727 |
3,812,605 |
6,507,041 |
10,319,646 |
Inflation effect on cash and
cash equivalents |
- |
(3,352,794) |
(3,352,794) |
803,926 |
803,388 |
1,607,314 |
Effects of exchange rate
changes on cash and cash equivalents and restricted cash |
163,004 |
11,419 |
174,423 |
- |
(3,343,308) |
(3,343,308) |
Cash and cash equivalents at 31 December |
5,499,165 |
- |
5,499,165 |
5,259,801 |
3,406,926 |
8,666,727 |
Restatement Methods for Consolidated Balance
Sheets
(1) Monetary items do not need to be restated,
because they represent money held, to be received or to be paid.
Monetary items are therefore already expressed in current
purchasing power at the reporting date.
(2) Non-monetary assets and liabilities are
restated in terms of the measuring unit current at the end of the
reporting period. We used the increase in the general price index
from the transaction date when they were first recognized to the
end of the reporting period.
(3) Other current assets and other current
liabilities consist of monetary and non-monetary items.
(4) The components of shareholders’ equity,
excluding retained earnings, are restated by applying a general
price index from the dates on which the items were contributed or
otherwise arose.
(5) Retained earnings are restated for the
balancing figure derived from the other amounts in the restated
opening balance sheet.
Restatement Methods for Consolidated
Statements of Comprehensive Loss
(6) All items except cost of inventory sold,
depreciation and amortization expenses and monetary gains or losses
in the consolidated statement of comprehensive loss for the current
year are restated by applying the change in the general price index
from the dates when the items of income and expense were originally
recorded.
(7) Cost of inventory sold is restated by using
restated inventories balance.
(8) Depreciation and amortization expenses is
restated by using restated property and equipment, intangible
assets and right of use assets balances.
(9) Technology expenses, other operating
expenses and income includes prepaid expenses and deferred income
which are considered as non-monetary items and restated by using
restated balances of those items.
(10) The monetary gains or losses is calculated
as the difference between the historical cost amounts and the
result from the restatement of non-monetary items, shareholders’
equity, items in the consolidated statement of comprehensive loss.
The monetary gain or loss is reported as a separate item in the
restated consolidated statement of comprehensive loss.
Restatement Methods for Consolidated
Statements of Cash Flows
All items in the consolidated statements of cash
flows are expressed in a measuring unit current at the balance
sheet date; they are therefore restated by applying the relevant
conversion factors from the date on which the transaction
originated.
Net income / loss before tax is adjusted for the
monetary gain or loss for the period.
The monetary loss on cash and cash equivalents
is presented separately.
Inflation effect on non-operating activities is
presented separately. It is calculated as the difference between
the restated openings and closing balances of cash and cash
equivalents, borrowings and financial investments.
Inflation effect on operating activities is
presented separately. It is calculated as the difference between
the restated openings and closing balances of provisions and
considered as a reconciling item in the cash flow statement, as
this is a non-cash item not shown as a change in working
capital.
Certain Definitions
We provide a number of key operating performance
indicators used by our management and often used by competitors in
our industry. We define certain terms used in this press release as
follows:
-
GMV as gross merchandise value which refers to the
total value of orders/products sold through our platform over a
given period of time (including value added tax (“VAT”) without
deducting returns and cancellations), including cargo income
(shipping fees related to the products sold through our platform)
and excluding other service revenues and transaction fees charged
to our merchants;
- IAS
29-Unadjusted GMV as GMV presented on an unadjusted for
inflation basis;
-
Marketplace GMV as total value of orders/products
sold through our Marketplace over a given period of time (including
VAT without deducting returns and cancellations), including cargo
income (shipping fees related to the products sold through our
platform) and excluding other service revenues and transaction fees
charged to our merchants;
- Share of
Marketplace GMV as the portion of GMV sold through our
Marketplace represented as a percentage of our total GMV;
- IAS
29-Unadjusted Revenue as Revenue presented on an
unadjusted for inflation basis;
- IAS
29-Unadjusted Gross Contribution as Gross Contribution
presented on an unadjusted for inflation basis;
- Gross
Contribution margin as Gross Contribution represented as a
percentage of GMV;
- IAS
29-Unadjusted EBITDA as EBITDA presented on an unadjusted
for inflation basis;
- EBITDA
as a percentage of GMV as EBITDA represented as a
percentage of GMV;
- IAS
29-Unadjusted EBITDA as a percentage of GMV as IAS
29-Unadjusted EBITDA represented as a percentage of IAS
29-Unadjusted GMV;
- Number
of orders as the number of orders we received through our
platform including returns and cancellations;
-
Frequency as the average number of orders per
Active Customer over a 12-month period preceding the relevant
date;
- Active
Merchant as merchants who sold at least one item within
the 12-month period preceding the relevant date, including returns
and cancellations;
- Active
Customer are users (both unregistered users and members)
who have purchased at least one item listed on our platform within
the 12-month period preceding the relevant date, including returns
and cancellations; and
- Digital
products are non-cash games on our platform, such as
sweepstakes and gamified lotteries, game pins and codes, gift
vouchers, and the first monthly payment of Hepsiburada Premium
membership subscription.
DISCLAIMER: Due to rounding, numbers presented
throughout this press release may not add up precisely to the
totals provided and percentages may not precisely reflect the
absolute figures.
About Hepsiburada
Hepsiburada is a leading e-commerce technology
platform in Türkiye, connecting over 63 million members with
approximately 230 million stock keeping units across over 30
product categories. Hepsiburada provides goods and services through
its hybrid model combining first-party direct sales (1P model) and
a third-party marketplace (3P model) with over 101 thousand
merchants.
With its vision of leading the digitalization of
commerce, Hepsiburada acts as a reliable, innovative and
purpose-led companion in consumers’ daily lives. Hepsiburada’s
e-commerce platform provides a broad ecosystem of capabilities for
merchants and consumers including: last-mile delivery and
fulfilment services, advertising services, on-demand grocery
delivery services, and payment solutions offered through Hepsipay,
Hepsiburada’s payment companion and BNPL solutions provider.
HepsiGlobal offers a selection from international merchants through
its inbound arm while outbound operations aim to enable merchants
in Türkiye to make cross-border sales.
Since its founding in 2000, Hepsiburada has been
purpose-led, leveraging its digital capabilities to develop the
role of women in the Turkish economy. Hepsiburada started the
‘Technology Empowerment for Women Entrepreneurs’ programme in 2017,
which has supported over 50.5 thousand female entrepreneurs
throughout Türkiye to reach millions of customers with their
products.
Investor Relations Contact
ir@hepsiburada.com
Media Contact
corporatecommunications@hepsiburada.com
Forward Looking Statements This
press release, the conference call webcast, presentation and
related communications include forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, Section 21E of the Securities Exchange Act of 1934, as
amended and the Safe Harbor provisions of the US Private Securities
Litigation Reform Act of 1995, and encompasses all statements,
other than statements of historical fact contained in these
communications, including but not limited to statements regarding
(a) our future financial performance, including our revenue,
operating expenses and our ability to achieve and maintain
profitability; (b) our expectations regarding current and future
GMV and EBITDA; (c) potential disruptions to our operations and
supply chain that may result from (i) epidemics or natural
disasters; (ii) global supply challenges; (iii) the ongoing
conflict in Ukraine; (iv) changes in the competitive landscape in
the industry in which the Company operates; (v) the rising
inflationary environment and/or (vi) currency devaluation; (d) the
anticipated launch of new initiatives, businesses or any other
strategic projects; (e) our expectations and plans for short- and
long-term strategy, including our anticipated areas of focus and
investment, market expansion, product and technology focus, and
projected growth and profitability; (f) our ability to respond to
the ever-changing competitive landscape in the industry in which we
operate; (g) our liquidity, substantial indebtedness, and ability
to obtain additional financing; (h) our strategic goals and plans,
including our relationships with existing customers, suppliers,
merchants and partners, and our ability to achieve and maintain
them; (i) our ability to improve our technology platform, customer
experience and product offerings to attract and retain merchants
and customers; (j) our ability to expand our base of Hepsiburada
Premium members, and grow and externalize the services of our
strategic assets; and (k) regulatory changes in the e-commerce law.
These forward-looking statements can be identified by terminology
such as “may,” “could,” “will,” “seek,” “expects,” “anticipates,”
“aims,” “future,” “intends,” “plans,” “believes,” “estimates,”
“targets,” “likely to” and similar statements. Among other things,
quotations from management in this announcement, as well as our
outlook and guidance, strategic and operational plans, contain
forward-looking statements.
These forward-looking statements are based on
management’s current expectations. However, it is not possible for
our management to predict all risks, nor can we assess the impact
of all factors on our business or the extent to which any factor,
or combination of factors, may cause actual results to differ
materially from those contained in any forward-looking statements
we may make. These statements are neither promises nor guarantees
but involve known and unknown risks, uncertainties and other
important factors and circumstances that may cause Hepsiburada’s
actual results, performance or achievements to be materially
different from its expectations expressed or implied by the
forward-looking statements, including conditions in the U.S.
capital markets, negative global economic conditions, potential
negative developments resulting from epidemics or natural
disasters, other negative developments in Hepsiburada’s business or
unfavorable legislative or regulatory developments. We caution you
therefore against relying on these forward-looking statements, and
we qualify all of our forward-looking statements by these
cautionary statements. For a discussion of additional factors that
may affect the outcome of such forward looking statements, see our
2022 annual report filed with the SEC on Form 20-F (File No.
001-40553), and in particular the “Risk Factors” section, as well
as the other documents filed with or furnished to the SEC by the
Company from time to time. Copies of these filings are available
online from the SEC at www.sec.gov, or on the SEC Filings section
of our Investor Relations website at
https://investors.hepsiburada.com. These and other important
factors could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. Any such forward-looking statements represent management’s
estimates as of the date of this press release. These
forward-looking statements should not be relied upon as
representing the Company’s views as of any date subsequent to the
date of this press release. All forward-looking statements in this
press release are based on information currently available to the
Company, and the Company and its authorized representatives assume
no obligation to update these forward-looking statements in light
of new information or future events. Accordingly, undue reliance
should not be placed upon the forward-looking statements.
Non-IFRS Financial MeasuresThis
press release includes certain non-IFRS financial measures,
including but not limited to, Gross Contribution, IAS 29-Unadjusted
Gross Contribution, IAS 29-Unadjusted Revenue, EBITDA, IAS
29-Unadjusted EBITDA, Free Cash Flow and Net Working Capital. These
financial measures are not measures of financial performance in
accordance with IFRS and may exclude items that are significant in
understanding and assessing our financial results. Therefore, these
measures should not be considered in isolation or as an alternative
to profit/loss for the period or other measures of profitability,
liquidity or performance under IFRS. You should be aware that the
Company’s presentation of these measures may not be comparable to
similarly titled measures used by other companies, which may be
defined and calculated differently. See “Presentation of Financial
and Other Information” in this press release for a reconciliation
of certain of these non-IFRS measures to the most directly
comparable IFRS measure.
Statement Regarding Unaudited Financial
InformationThis press release includes unaudited quarterly
financial information as of and for the three months ended December
31, 2023 and 2022 and unaudited annual financial information as of
and for the year ended December 31, 2023 and 2022. The quarterly
and yearly information has not been audited or reviewed by the
Company’s auditors. The unaudited information for the year ended
December 31, 2023 is preliminary, based on the information
available at this time and subject to changes in connection with
the completion of the audit of the Company’s financial statements.
As such, the Company’s actual results and financial condition as
reflected in the financial statements that will be included in the
Company’s Annual Report on Form 20-F for the year ended December
31, 2023 may be adjusted or presented differently from the
financial information herein and the variations could be material.
The unaudited consolidated financial statements include the
accounts of the Company and its subsidiaries. All periods presented
have been accounted for in conformity with International Financial
Reporting Standards (“IFRS”) and pursuant to the regulations of the
SEC.
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