D-Market Elektronik Hizmetler ve Ticaret A.S. (HEPS) 13 Jun 242024 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. I'm Costantino, your Chorus Call operator. Welcome, and thank you for joining the Hepsiburada conference call and live webcast to present and discuss the first quarter 2024 financial results. [Operator Instructions]. The conference is being recorded. Instructions]. [Operator

Relations I Onal turn Koseoglu, Gokcetekin, Ms. Celikbilek, time, to conference CFO; like Celikbilek, Helin Nilhan Helin Ms. CEO; Investor would this now the to over and you At may Ms. proceed. Director. Mr. Seckin

risk press to of factors with the on described in and presentation results today's a we of Slide April that certain XX-F statements. Also, for you press by on from Thank statements. Please could XX, undertake actual today as us the only, other your the IFRS deck and will the Onal factors CFO, law. and our as our of Earnings release, release directly obligation X. our cause CEO, joining Quarter date today's non-IFRS filed SEC revise these from joined and today's the information XXXX materially slide on refer Form Seckin for to or relevant as made supplemental our discussion, to forward-looking today's our I'm filings may Nilhan questions, pleased slide well to for views forward-looking be for this X-K, refer First including statements except Koseoglu. The we non-IFRS SEC most call differ the the safe call. to XXXX as by no required harbor today's Today's IFRS measures operator. reference to during Thanks, Please supplemental results appendix Hepsiburada's to statements, forward-looking materially Call. actual reconciliation. today's management's call responses as and following today measure the well release earnings update reflects are on information Gokcetekin; differ of comparable as Certain these

this I CEO, of be over Relations And Investor website. hand a on will will our Nilhan. with As a that, available our replay it call reminder, to

to we to year be Notably, I'm with execution, accelerated you quarter everyone, base for the all has start results. tragic present year-on-year on Thank our first solid reflected GMV for It you year and GMV results. the growth beat Welcome, quarter. last due effect joining our for to as thank strong drove the you, today earthquake delighted favorable XX%. us. a was over inflation, Helin. a to and growth. Adjusted guidance GMV Good XXX% EBITDA by our of been a

since Our margin gross by ever contribution XX%, XXX points highest marking basis improved to the IPO.

EBITDA basis. EBITDA sign rising to clear points inflation, for up our basis continued percentage results These of points of GMV by improved Adjusted trend, basis XXX as year-on-year an on our winning a X.X% strategy. to its are a unadjusted Our GMV of X.X%. year-on-year off XX

at a an once e-commerce of great a is Now with look of a source most operational XX Being again few metrics. Turkey's brand recommended of let's have our pride. NPS

We the level. are to committed advancing next this performance to

customer XX.X million additional active was base XXX,XXX Our customers. on an

during program, are by We million the see We XX.X growth quarter. X.X with orders appealing in scaled to million our of interest to recorded May. which loyalty members the growing has XX% end delighted

is year-over-year, to XX% Our selection last XXX order almost active XX% X.X%. SKUs. with nearly the reached frequency million over our by we XXX,XXX, This months XX expanded an base of merchant up

of snapshot Now let X me strategic top provide progress priorities. a our quarterly on

with significantly The by frequency higher Premium. Also, premium program First, base our evidenced growing NPS. This Hepsiburada loyalty to program's our strong satisfaction program, also is our is customer overall proposition. signals contributes customer growth. numbers

is superior the transition which on with second delivery to services. priority, Moving

our total this brings X.X HepsiJet also of quarter. parcels XX. It's delivered [ points confirms orders is HepsiJet of percentage by superior with risen delivery Our our score Merchant This our services year-on-year. ] XX% best, ecosystem. is our delivery the satisfaction in-house services platform. customers. has from company reliable customer retail and for realized Hepsiburada next-day ratio in HepsiJet. service to XX% preference strong Jet high-quality integral in reflects wider among satisfaction its significantly It's role

differentiator scaling services. Fourth its customers. third with -- is its offering muscles payments and to our strongest suite comprehensive of our to addition is Hepsipay. Our strongest offering It's lending muscle off-platform already

Let its is me year-on-year XX% HepsiJet, than volume total Accordingly, more in off-platform start QX. nearly parcels the million which doubled QX. of to with has its volume X.X corresponded delivered

its old next the on On I'll elaborate platform slide, including Hepsipay, performance.

to alternatives into In advantage. current of providing are these how of huge with rates, solutions economic we the offer able cutting-edge Let dive is Hepsipay. suite a me a interest being climate high

Turkey's e-commerce capacity, $XX manner to we well loans through over and grow X.X volume year, lending million. shopping a to million last partner orders the months. On to in compared XX last step January, roughly platform equivalent BNPL the sizable reached nonbank Hepsipay BNPL billion USD as over our is consumer XXX -- solution it our over our those billion. XX finance Meanwhile, took a as loan of a aims in take in Overall, to line last share X.X business market. business. in were go leverage our debt. over this period and scale, to solutions profitable In and TRY to loans to solution Hepsipay banks further this the the grow our will largest market. consumer we the of broader same our continue months, total of utilized including BNPL tripled That's In this

million business. financial aspects, the payments wallet store affordably our with million In the market retail, from also offline cards. covering its XX.X lease Hepsipay encompasses Aside services base XX

as launch. within also to a just capture with share Pay year guidance. retailers accounts is solution, in live Hepsipay as substantial with at now part check-out a with in well both one-click [indiscernible] my key of than I'll aims less XX key our add is Turkey Hepsipay Our e-market. And

preserves place, as household yet Accordingly, relevance year-on-year through GMV the observed conjecture, within trusted XX% year-on-year. With extent quarter, platform expected around our With we demand 'XX. is As that X.X% an EBITDA consumer growth continuation to in management certain prudent the we challenging expect double foresee our GMV. macroeconomic purchases deliver in consumer calling QX lead we in a range brand. of we of first second of growth cost the half for X% to of to and the continued the to

QX our last was reminder, GMV a As X.X%. in year

So to to to figures, CFO, listening very we the expect for inflation. With in deliver and to referred you adjusted are these improvement I provide our for thank a in further profitability leave much performance. our dear QX, and floor Seckin, year-over-year financial to insights this, I our

and performance year everyone. GMV by that XX% inflation, Thank order share all glad through you, in I'm start with a Adjusted had a grew for across in metrics. growth was quarter to solid we value total X. increase and XX% robust GMV welcome, average to Nilhan, orders. the XX% growth Strong

this tragic a the February base on positive resulted last disciplined impact million Higher last margin low improvement coupled earthquake XXX performance. Gross in year year's of XX.X%. continued our business, also X.X% TRY EBITDA margins, Given and reached management, its trend has OpEx in contribution inevitable its impact growth with GMV. on and at

next color on on to the slide. each For of let's these, move more

by XX% X. through XX% Last First, of quarter GMV XX.X increased order in orders performance. also frequency to XX-month came million X.X million. growth GMV our

was quarter line 'XX within year. our GMV towards business to nearly around percentage of quarter, level in in quarter strategy. with X, non-electronics same shift the marketplace at X.X of this Our operations X, There our XX% point corresponded last

coupled us service through doubled at quarter with growth let dynamic. revenues, year-on-year. unit revenues, growth. Let's mainly marketplace momentum total nearly to growth look our first revenue above to This in retail of service rises and corresponds annual XX% in which was solid XX% Delivery the XX% revenue mainly off-platform the achieved revenue due our delivery business, charges XX% was inflation. operations in

fulfillment this quarter subscription grew revenues service XXXX. by during doubled other such period advertising in XXX%, well. Meanwhile, was and lines growth mainly revenues services compared to revenues loyalty through as X, Our performance fourfold revenue higher

On adjusted higher was as gross mainly XX.X%. as to X.X for we recorded margin, off-platform in from delivery reaching revenues. service Margin contribution advertising the attributable of points contribution margin improvement percentage the well side, rise revenues inflation,

in operating packaging 'XX EBITDA, on the million next in million due EBITDA monitoring the increase ] XXX slide. accounts to flow The increase. year half other percentage TRY next billion margin, X.X% by a in contribution XXX million X.X offset TRY rise on million EBITDA a X, X, slide. TRY increase gross gain, on the recorded look move TRY rise XX XXXX. million mainly operations in X, yearly improvement realized change TRY We more was Others performance increase TRY to This XX TRY points of include percentage in working EBIT XXX in cash ago, generated XXX improvement in change let's our quarter up of than and point X now with basis. XXX items year-on-year the a free Let's at million in from in as partially GMV gains. TRY expenses. And was in shipping cash TRY million capital XXX for was the quarter X.X% With 'XX, noncash [ in around CapEx, in flow basis in in dynamics and from our net cash quarter increased billion our X.X

today's to on our like look presentation. you with slide, would a takeaways. take and next to leave the move from Let's following key We let's at the

GMV our growth guidance. first Adjusted Our a year-on-year on robust basis. top XX.X% for line inflation, the growth recorded exceeded we in quarter

Our EBITDA, free by to billion. TRY XX.X%. a improve performance, of flow a gross million margin X.X generated EBITDA cash a percentage rise of this We strong as and corresponding reached recorded TRY to we X XXX GMV. With contribution in continued points X.XX% percentage

Our confirms cultivating expanding sustainable services for e-com winning and as partner our BXB our merchants. solution this turnkey on a solid sharp loyalty, overall differentiators our performance focus

on going start a growing to reflect profitable sustainable they forward. we XXXX, As and on manner good are the committed

for can line listening. you the open questions. Thank We for now

Muharrem question Capital. Gulserver first [Operator The comes from Instructions] Kona with

be view? in XQ second My Holiday year. quarter for Eid that's would the the on this impact Q regarding the question in will second What moving GMV your from to the be

we impact X Holidays which Holiday X line both you in in our guidance. incorporated of the We quarter is X actually The our already Eid Eid top guidance. as incorporated are -- quarter of in know, had

that. But the GMV quarter? understand growth be this I third What in the would if my Eid would is, the stay Holiday quarter? for question

sales impacted. go typically impact off-line and our This during online business sales holidays, are up

have least in upwards would we July in growth at was X X% if the X% or trajectory. probably, So

no [Operator Instructions] at Ladies time. audio questions are there this gentlemen, further and

questions with We from will participants. our now webcast proceed the written

retailing performance is in is from Turkey?" versus quote, the Turkey, question strong who How The market. online first the a market our Sattar [ and I in the webcast we in in Amazon private our category in investor share ], is Asif in comes competition operate "what

thank you question. Asif, much your so Dear for

conclusive a So But how Turkey, we ] comment. give their number share [ as for not for Amazon, growth. are a very electronic, usage, like QX, seeing results is public able into in they we are customer significant be that small to FNA they we staying win. data not active we publishing still That's from segments the are will one. Number that to player is Obviously, looking GSK different one had we are have number had Turkey. in right we two data

of already of On top gained around this, categories. our key are XX%. We all we share in

into data other look we categories. is Nielsen The for non-electronic stores

As segment households, [indiscernible] the that. right females, we needs of very guys to you the us, for critical win have

there. share are winning We

For rating -- are also sources, there share are gaining trying, significant and we data are we well. we seeing products as that home home products, other different

quarter. strong So a overall, had we

in not we the able beating are because but competitors with to our it's online share. share We clearly exact not share are Turkey reported,

see next from from down starting slowdown I trading or and Citi comes decreasing consumers second do quarter what quote, The with see you question XXXX? Nekrasov categories you Maksim Do higher webcast frequency?" "in

thank Maksim, so much. you

started. So slowdown, computer. can if is in is I The we And #X generally, category, dive call value would deeper, part endurables. the out say endurables, critical

discretionary and demand, deferral As there the of demand. more some you know, is computer delayed is

significantly one trend is other has with demand our Maksim. been deferral a down seeing online the frequency Euro and which well. The we trading than in The demand expecting as you, Thank recovery categories, rather are Cup shopping. of TV we decreasing among are Olympics QX some of and

follow-up is Maksim I question tax expect from a do "when expenses?" booking question and webcast quote, you to next start The Nekrasov

to tax R&D typically Sure. And will without in pay most tax start do I'll XXXX are center constraints. likely, in take taxes not XXXX. as we -- these expect this paying question. incentives corporate any incentives taxes our and time we have We

for question the on on expected follow-up investor, EBITDA what Our a forecasted next who basis webcast quote, Sattar, and question a quarter? again is I is next "what GAAP U.S. from U.S. basis our is is in EBITDA Asif quarter?" GAAP this private And margin

We do U.S. not report our GAAP basis. financials in

grow question including quote, "any from to North Generation Corporation, services developed The next I is and America?" plans webcast Shamim with in Badar markets, PMCA

at We very North from America. started different expand to the of don't do tests that, collections in We integrations -- Turkish launch is very, world. plans exports marketplaces Having have to Hepsiburada further other moment and the with doing in some Turkey. said parts popular facilitate micro to

So label with to go sold to can will Walmart we versus expand if you our integration smart in and see cross-border private those you this for investments continue today, being Jumia market. services already our large new stores,

I follow-up The in year?" this due incremental webcast quote a question and next "what is expected question partnership GMV Asif the is increase to from Sattar, Jumia

very, Look, Jumia very Asif, are we about excited partnership.

region Turkish the collections. First, MENA let tell me for that is

building exportable. And with in this has are in We in a home potential small Turkey, partnership are category that us. huge Jumia been appliances winning domestic

phase. in come Asif, most next are entering, the building am -- Jumia. are impact of starting We because to year, fulfilled the expecting come I still by we to

It the some So inbound. we are doing first for product take to time this will shipment. be

We are very very, with cost efficient, in Jumia to relevant and win better customers. selecting

the improvements year nothing our for next but space different of their partners. definitely integration existing traffic this complete leverage we and So significant year, watch as

], The in a considering quote, investor I Grant equity webcast you local comes question listing Felgenhauer next from [ Turkey?" a who's private "are and

the options that in of best determine recognize list exploring we for So action I actively we potential [indiscernible] the are do stakeholders. benefit code our and to various

any in In as ideal point, this we meantime, are in concrete keep the of listing part decision regarding haven't market conditions appreciate involved listing. At informed regulatory we and well as we evaluating As requirements support. Borsa make will we a process, definitive we a potential made Istanbul, market your as but decision. the continued this progress

to webcast quote, that from market?" share Investors, cross-border with as and Sinan it grow Amber confidence I the question The Turkish continue e-commerce drives platforms comes Xin management's Road "what entering global next will consider

Thank you, Sinan.

a us Number despite couple one, platforms. I share and think has we are very, competitive that that sustain will there very supplier confidence cross-border grow base. give of continue to Turkey things global a

fashion playbooks, into Absolutely, had like global economical. As success they stories. you very, they Turkish and have cross-border competition this don't but look home, strong very

a is Turkey. solution affordability Second, for critical

mobile are online We the do in has phone. which installments only the cosmetics, payment can which license, company, like FMCG, categories

you driver shopping. this our online metric #X [ of purchasing winning ]. is know, with seller Turkey, are we quality Third, quality metrics. all still Turkish In sense for And as

NPS are in We year-over-year Turkey. champion

continue we We are of So helping customers. the are We the is which to competition. Turkish up we appreciate it. And building us. raise for capabilities, for strong rights new entrants cross-border that finally, had will bar also

So some signed a in business with we we just in together. [indiscernible] product build partnership third launched environment test Jumia to our

as we grow will So our grow we business also business as Turkish our well. cross-border

may and of quote, your initiatives larger The next the which James Hayes I webcast competitor regulatory update the it's constrain question on is with Capital, the in and Lucerna questions, market. series from "Can please Global provide an of you various a activities

which the in is, kicked full this which effect additional final and free or any the flow have the quite Can quarter is, in the free question generation later XXXX, are of take question around XXXX?" flow thoughts year only capacity regulations are early cash finally, for there medium-term was to Third any year? provide items you cash impressive. Second and

question. good Very James. you, Thank

larger will things; constrain Turkey. competitor licensee number be that there of will is in [indiscernible] in So is the one various Multiple kicking initiatives activities regulatory the Turkey.

significant to there to So fee will amount -- the as online make government. of largest player, share big for the has proportion payment which large be license

stronghold label, Turkey in private as is is, secondary a which you of banned. Alibaba The was know,

continued of continued there 'XX. that impact expecting will an advertising The also reductions of be promotion We impact will impact. as have are

small, I X, more Seckin. your floor So related continue these impact environment are large in that enterprises democratic much market. And an the the the cash the turn in I say supporting on to for Turkey, would a with could to to is questions. that make want competitor medium-sized

for question. you much so Thank the

working there for the the As is management. and free capital One net other flow components generation. EBITDA one are you know, cash X is

year-over-year continue our will on well. basis year full grow to We a as EBITDA

key So for flow on be the definitely, the year. will of pillars we improving full cash the

what On and impact will bigger government actions in to can with the negative working looking net be a working I interest we that take working companies the always business. into a inflation to the side, the capital rates net but continue capital say to increased the has All higher focus, the requirements market. minimize be will started capital

the as be cash grow increase this in free to flow. key line, business the So our and also our top layer continues second the will to

impact So our will free But there on full from position continue flow to to seasonality can a another. year some we basis, in one quarter cash be XXXX. improve

disconnect has a you telephone. may Ladies for Have and calling. Thank you the gentlemen, concluded, and now conference afternoon. your good