Turkish retailer BIM targets 25% 2010 sales growth

18th March 2010

Istanbul - Turkish discount retailer BIM (BIMAS.IS) is targeting a 25 percent increase in sales and a smaller rise in net profit this year as it cuts prices and opens hundreds of stores to expand its customer base.

BIM, often dubbed the Turkish Aldi after the German grocer, announced on Wednesday its net profit jumped 86 percent to 213 million lira ($141 million) last year, beating forecasts as it attracted price-conscious shoppers during a recession.

It is expecting net profit of 220-230 million lira for 2010. Sales climbed 25 percent in 2009 to 5.32 billion lira.

This year the retailer aims to invest around 130 million lira and open more than 300 shops, increasing its workforce by some 1,500, it said on Thursday.

The company has also launched operations in Morocco and will open 40 new stores in that country this year, it said.

Board member Haluk Dortluoglu told Thursday's news conference that while the company aimed to increase net profit this year its profit margin would be lower because of a price-cutting policy.

It is targeting an EBITDA margin of 5 percent this year, down from 5.9 percent last year, he said.

Shares in BIM rose 4.8 percent to 77 lira, extending a 5 percent rally a day earlier and outperforming the main Istanbul index, which was down 1.5 percent.

Around half of BIM is publicly owned and it has attracted interest among foreign institutional shareholders. Of 14 recommendations on the stock, four are "buy" or "strong buy", nine are "hold" and one "underperforms".

At end-2009, BIM had 2,628 stores and a workforce of just under 15,000. (Reporting by Ceyda Caglayan, writing by Daren Butler, editing by Will Waterman)

Source :- reuters.com