PodcastTurkish top supermarket chain at loss of 500k TL in 2019, forex rates to blame
One of Turkey's largest supermarket chains has closed the 2019 fiscal year at a loss of 492,112 Turkish Lira (over $75,000), an independent audit revealed to the Public Disclosure Platform (KAP). A company balance sheet revealed half of the company's total liabilities to be in foreign currencies, indicating the 2019 losses for Migros could have been triggered by the fluctuations in foreign currency exchange rates.
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One of Turkey's largest supermarket chains, Migros closed out its 2019 fiscal year at a loss of 492,112 Turkish Lira (over $75,000), their independent audit presented to the Public Disclosure Platform (KAP) revealed.
The audit presented to KAP revealed a total liability of 14.138 billion TL, about half of which is constituted of short-term loans, mostly in foreign currencies.
The Migros balance sheet revealed a direct hit to the company from the fluctuating foreign currency exchange rates of the previous year.
The company has been at a loss every year since 2015 except for 2017.
Asset, revenue increase
The company's total assets were revealed to be 14.460 billion TL (about $2.2 billion), 9.2 billion TL in fixed assets and 5.2 billion in current assets.
The company's revenue increased by 24 percent, reaching 23.2 billion TL (about $3.7 billion) in 2019.
In 2019 Migros's financing expenses were 1.26 billion TL (about $200 million).
Migros set its expectation for growth in 2020 at 16 to 18 percent with 120 new stores opening and some 400 million TL in investment.
Migros bears the name Ramstore internationally and operates over 2,000 stores worldwide.