BLOOMBERG HT- RESEARCH
Arçelik reported its consolidated balance sheet for the fourth quarter of 2022 to the Public Disclosure Platform (KAP).
In the fourth quarter of 2022, the company achieved a net turnover profit of TL 2.66 billion, exceeding the market expectations. Accordingly, Arçelik’s profit increased by 198 percent compared to the same period of the previous year. Thus, the company’s total net profit in 2022 increased by 45 percent compared to 2021, amounting to 4 billion 723 million TL.
The company’s fourth quarter net sales were 39.2 billion TL
Arçelik’s net sales in the fourth quarter of the year amounted to TL 39 billion 192 million. The company’s total sales in the previous quarter were 34 billion 255 million TL. EBITDA was 3 billion 582 million TL in the last quarter.
In the last quarter, strong annual revenue growth of 74 percent was seen due to the price increases, high sales figures in Turkey and the depreciation of the TL. Organically, annual growth was 67 percent, quarterly revenue growth was 14 percent, and organic growth was 11 percent.
Turkey’s share in total sales rose to 32 percent from 26 percent last year. The share was 30 percent in the whole of 2022.
While sales were strong in Turkey, the contraction in consumer demand accelerated in Western and Eastern Europe. Reduced costs, price increases and an even better OP/Sales ratio contributed 42 basis points to the EBITDA margin in the last quarter.
Revenues expected to grow by 45 percent
Further slowdown in consumer demand in the Western European market in October and November led to high single digit contraction in 2022 on an annual basis. With demand shrinking, the UK was the worst performing country amid Western European countries. Despite the contraction in terms of units, the market remained flat in 2022 on a price basis due to price increases and the increasing share of premium segment sales.
Arçelik’s gross profit margin was 29% in the last quarter, supported by the reduction in raw material costs and the appreciation of euro margins against the dollar.
Looking at the 2023 expectations of the company, it is seen that a growth of more than 45 percent in TL terms is expected in its consolidated revenues. In its breakdown, Turkey’s turnover growth is expected to be over 45 percent, and it is expected to be over 6 percent in foreign currency turnover. On the other hand, the company predicts an EBITDA margin of approximately 10 percent, the ratio of working capital to sales of 23-25 percent, and investment expenditures of approximately 300 million euros.
