Turkish glass and chemicals giant Şişecam has released its financial report for the second quarter of 2024, revealing a slight dip in profitability despite maintaining strong overall performance. The company posted a net profit of 2.4 billion Turkish Lira (TL) for Q2, a marginal decrease from the 2.5 billion TL reported in Q1. This brings Şişecam's total net profit for the first half of 2024 to an impressive 5 billion TL.
While facing headwinds, Şişecam demonstrated its ability to maintain healthy profit margins. The company's gross profit margin inched up to 23%, with gross profit reaching 19.8 billion TL - a 65 basis point improvement over the previous quarter. However, some pressure was evident in the EBITDA figures, with the margin contracting to 9%, down 874 basis points year-over-year and 75 basis points quarter-on-quarter. By the end of June, Şişecam had achieved an EBITDA of 7.7 billion TL.
The global economic landscape presented challenges for Şişecam's top-line growth. Consolidated net sales for H1 2024 fell by 17% compared to the same period last year, totaling 85.7 billion TL. The second quarter saw sales revenue of 41.7 billion TL, a 5% decline from Q1's 43.9 billion TL.
Despite these hurdles, Şişecam maintained robust production levels. In the first half of 2024, the company produced 2.7 million tons of glass, 2.3 million tons of soda ash, and 1.8 million tons of industrial raw materials. The company's global footprint remained strong, with international sales accounting for 61% of consolidated revenue.
Şişecam continued to invest in its future, allocating 11 billion TL towards various projects in H1 2024. The company's export performance remained solid, bringing in 492 million dollars during this period.
Görkem Elverici, Şişecam's General Manager, addressed the economic uncertainties faced in early 2024. He noted, "We've implemented cost-saving and efficiency measures in response to softening demand. Looking ahead, we anticipate that potential interest rate reductions and demand recovery could positively impact economic conditions."
In a significant financial move, Şişecam successfully executed the largest corporate bond issuance in Turkish history. The company raised 1.5 billion dollars through Eurobonds, with demand from international investors reaching nearly 5 billion dollars - a clear vote of confidence in Şişecam's stability and growth prospects.
As Şişecam navigates the complex global economic landscape, its Q2 2024 results demonstrate the company's resilience and strategic adaptability. While facing some headwinds, Şişecam continues to leverage its diverse product portfolio, international presence, and strong financial position to maintain its status as a leader in the glass and chemicals industries.