Tarım Kredi Market Reports Billion Lira Loss in First Half of the Year
· GıdaTarım
Preparing for its IPO, Tarım Kredi KOOP Market reported a loss of 1 billion 91 million lira in the first six months of the year, closing 30 stores and parting ways with 1808 employees as part of operational downsizing.
Financial Loss and Expense Pressure
Tarım Kredi KOOP Market has shared its financial results for the January-June period with the public. The retail chain, which plans to go public on the stock exchange next year, announced a net loss of 1 billion 91 million lira in the first half of the year. Following the 2 billion lira loss reported in the same period last year, the deficit in the financial statements continued. Although the company's revenue increased by 13% to 43 billion lira, the cost of sales rose by 9.5% to exceed 35 billion lira. According to Tarım Kredi KOOP Market's financial report, marketing expenses of 8 billion lira and interest expenses of 2.7 billion lira directly impacted the balance sheet negatively.
Store Closures and Employment Loss
Following the incurred financial deficit, the company decided to downsize and reduce its operational network. According to the activity report data, 30 sales points were closed in the last 6 months, bringing the total number of stores down to 2,338. The contraction in metropolitan areas was notable, with a decrease of 18 stores in Istanbul and 5 in Ankara. In addition to store closures, significant cuts were made in employment, with a total of 1808 employees laid off in the last year. These developments led to approximately one in every seven employees losing their jobs.