EUR 103.41 For Business Accounts Only

BIM 4Q18 Earnings Review - BETTER

BIM reported 4Q18 net profit of LT359mn (+62% y/y), beating consensus by 19% and our estimate by 29%. BIM not only delivered a stronger top-line growth than we predicted in 4Q18 (+38% y/y, thanks to a LFL revenue growth of 27.2% on company calculation) but also a better EBITDA margin at 5.6%, thanks to a lower cash opex/sales ratio than we expected. There was a surprise TL13mn provision reversal, as well as a higher investment income than we predicted in 4Q18, giving further boost to the bottom line. The company simultaneously declared cash dividends of TL2.4/sh (yield: 2.8%) in line with expectations and a 100% bonus issue to raise its paid-in-capital from TL303.6mn to TL607.2mn. We maintain BUY rating with 12-mth TP of TL96.2/sh. BIM will hold a conference call later today, with details at the end of this message.