Matas Group Q1 2026/27: Revenue rises, margins under pressure

Turkish pharmacy chain Matas Group reported first-quarter revenue growth for fiscal 2026/27, though operating margins came under pressure due to restructuring expenses. The company disclosed the results via presentation slides on Monday, highlighting a 6% year-over-year increase in net sales to 1.8 billion Turkish lira, driven by higher foot traffic and expanded product offerings.

Gross profit margins narrowed to 28.4% from 31.1% in the same period last year, reflecting higher input costs and one-time restructuring charges tied to its cost-optimization program. The group said the initiative, launched in late 2025, aims to streamline operations and reduce overhead by shuttering underperforming stores and centralizing procurement.

Matas Group also noted a 4% decline in net profit to 120 million lira, primarily due to the margin squeeze and elevated restructuring costs, which totaled 35 million lira in the quarter. Despite the near-term headwinds, management reaffirmed its full-year guidance, targeting mid-single-digit revenue growth and a gradual recovery in profitability as cost-saving measures take effect.

Analysts at Garanti Securities maintained a hold rating on the stock, citing the margin pressure but acknowledging the long-term benefits of the restructuring plan. Shares of Matas Group were down 0.3% in early Istanbul trading on Tuesday, lagging the broader BIST 100 index.