Q2 2026 Ulker Biskuvi Sanayi AS Earnings Call Transcript
Key Points
- Consolidated volume grew 1.3% year-on-year to 163,000 tons, with international operations leading at 6% growth, demonstrating resilient consumer demand.
- Net income surged 45.5% year-on-year to TRY1.4 billion, with net income margin improving to 5.1% from 3.1%.
- Ulker Biskuvi maintained its number one market position with a 34% share in Turkey despite intense promotional activity.
- International volume growth was robust across regions: Turkey exports up 11.4%, Central Asia up 5.6%, Middle East up 4.6%, and North Africa up 4.4%.
- New products contributed approximately 9% of total snacking revenue in Q2, with 10% in Turkey and 6% internationally, supporting portfolio evolution.
- Balance sheet remains robust with covenant-based net debt/EBITDA at 1.17 times, providing financial flexibility for growth investments.
- The company is maintaining its EBITDA margin guidance of 13.5% plus/minus 1.5 percentage points, reflecting confidence in cost control and productivity actions.
- Reported revenue declined 11.4% year-on-year to TRY27 billion, impacted by IAS 29 inflation accounting and softer value growth in Turkey.
- Gross margin contracted to 24.6% from 27.2% in Q2, and EBITDA margin fell to 10.4% from 14.6% year-on-year.
- Turkey domestic volumes declined 1.7% year-on-year, with the market remaining highly promotion-driven and affordability sensitive.
- International operations experienced profitability pressure, with EBITDA margin dropping to 5.2% in Q2 due to competitive intensity in Central Asia and geopolitical impacts in the Middle East.
- The company revised its 2026 net sales outlook from flat to a low single-digit decline due to increased inflation expectations and geopolitical uncertainty.
- Cocoa cost increases and high promotional intensity negatively impacted margins, with the benefit of lower cocoa prices expected to be gradual due to inventory cycles.
- Working capital metrics showed inventory days rising to 123 days, reflecting supply timing pressures.
Beste, please go ahead, ma'am.
Hello, everybody. Welcome to Ulker Biskuvi's second quarter operational and financial webcast. Here with me in the room are CEO, Mr. Ozgur Kolukfaki; and our CFO, Mrs. Fulya Banu Surucu. Now I leave the ground to our CEO for the opening remarks and operational performance. Ozgur Bey?
Yes. Thanks, Beste. Good afternoon, good morning and good evening, everyone, and thank you for joining Ulker Biskuvi's second quarter 2026 earnings webcast. The first half of the year was characterized by a demanding consumer environment, increased promotions, elevated promotional activity and continued geopolitical volatility in some of our international markets.
Against this backdrop, our key priorities remain consistent: Protecting the strength of our brands, maintaining consumer affordability, preserving market
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