EUR 80.04 For Business Accounts Only

BGC Partners: Selcuk Ecza <SELEC TI> reported a net income of TL98.5mn in 4Q18 (+72.9%, y/y), better (consensus: TL68.0mn, BGC: TL68.9mn)…

Revenues of TL3,575mn in 4Q18 (+26.2%, y/y) were in line with estimates (consensus: TL3,532mn, BGC: TL3,542mn), thanks both to volume growth and 15% rise in pharmaceuticals prices (EUR adjustment) in February 2018. Recall that the positive inventory impact of price increase on the margins was only seen in 1Q18. In 4Q18, Selcuk Ecza benefited from positive seasonality together with bonuses, free of charge goods and discounts from manufacturers, in our view. The company reported TL102.0mn EBITDA in the quarter at a strong 2.9% margin, above consensus estimate of TL72.2mn (2.0% margin) and BGC estimate of TL77.8mn (2.2% margin). Opex/revenues was stable at 4.8% in 4Q18 vs. 4.8% in 3Q18 (4Q17: 5.0%). As another positive note, working capital requirements declined by TL165mn in 4Q18 to TL1,723mn, and the company turned into a net “cash” position of TL83mn in 4Q18 from TL139mn net debt in 3Q18.