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.

#şişecam #SISE #BIST100 #BorsaIstanbul #Turkey

BIST 100, Turkey's leading index, started the day with a new record in the evening hours after the interest rate decision announced by the Federal Reserve (FED). Investors observed with satisfaction that FED's interest rate hike, which happened as expected, did not have a negative impact on the Turkish stock market. Despite a slight decline due to profit-taking on Tuesday, the index quickly recovered and reached new heights on Thursday, starting the day above the psychological resistance level of 6,800 points. However, maintaining sustainability above certain levels is crucial for the index to continue its upward trend.

Impact of the Interest Rate Decision on BIST 100:

The Federal Reserve (FED) raised its target interest rate by 25 basis points, reaching a record of 5.25% - 5.50%, the highest in 22 years. However, this interest rate hike by the FED did not have a negative effect on the Turkish stock market, and BIST 100 continued its strong performance.

Strong-Performing Sectors:

Technology, finance, and energy sectors are showing robust performances in BIST 100 recently. Technology companies stand out with their digital transformation and innovation efforts, while the finance sector is supported by the economic recovery and increased demand for credit. The energy sector, on the other hand, benefits positively from the rise in global energy prices.

Key Points for Investors:

Despite the rise in BIST 100, careful portfolio management and sectoral diversification are important for investors. Given the constant volatility of markets, conducting thorough research and analysis, seeking expert opinions, and staying updated with current developments are among the factors that contribute to successful investment decisions. #interestrate #turkey

In Summary:

BIST 100, Turkey's leading index, continues its strong performance following the interest rate decision announced by the Federal Reserve (FED). The strong performances in the technology, finance, and energy sectors are noteworthy, and careful portfolio management and sectoral diversification are essential strategies for investors. Considering market volatility, conducting thorough research and analysis, following expert opinions, and staying updated with current developments play a critical role in achieving investment success. #feds #BIST100