Sabancı Holding - Strong Start to Challenging Period Thanks to Balanced Portfolio and Sound Finances in 1st Quarter
THE POWER OF DIGITALIZATION REFLECTED IN THE FIRST QUARTER BALANCES OF SABANCI HOLDING
Sabancı Holding, has announced its financial results for the first quarter of 2020. Based on these results, the consolidated sales of the Sabancı Group reached 13.6 billion TL. Having increased its net profits by 13% in the same period in 2019, the Sabancı Group recorded a consolidated net profit of 1 billion 193 million 206 thousand TL for the three-month period.
Commenting on the financial results of the first quarter, Sabancı Holding CEO Cenk Alper highlighted that these results also include the period when the Covid-19 pandemic conditions began to impact the entire world. Alper also emphasized the successful performance shown by the Turkish healthcare system, mentioning that the Group continued to manage the process effectively, having taken timely health precautions.
Cenk Alper stated, “The first quarter of 2020 has been recorded as a period of successful financial management results. The fall in our indebtedness rates and increase in operation profits ensured that we closed the first quarter with a successful financial performance. We have begun to reap the fruits of our sustainability oriented strategy in particular. Thus, we completed the first quarter of 2020 with healthy financial results”.
As a Group, always keeping in mind environment and climate change concerns, which are both included in our long-term strategy, we had promised to fulfill our sustainability related responsibilities in all of our operations. The pandemic has shown us just how vital this is. As we have until now, we will continue to maintain this issue among our top priorities.”
Stating that they took important strides in all areas of operation with energy, banking, industry and retail in particular, Cenk Alper underlined these points: “All of humanity is up against an unprecedented challenge. The pandemic has upended how business is done and has marked a breaking point. As the Sabancı Group, we are harnessing the power of our nearly 70 thousand employees, balanced and resilient portfolio structure, strong balance sheet, low indebtedness rate and our strong IT infrastructure to monitor the conditions closely and overcome this extraordinary period, and with all strategic and operational measures in place.”
MANAGING THE COVID-19 PERIOD SUCCESSFULLY
Taking the opportunity to stress technological infrastructure and digitalization, Alper stated, “I can confidently say that the Sabancı Group has been managing this period quite well, at a time when digital working models are more important than ever before. Our companies, as a result of the concerted effort we have put towards our technological infrastructure and digitalization, are continuing their activities to develop and grow their businesses. This has enabled us to continue our operations even during the pandemic without any disruptions”.
Cenk Alper said, “We have continued our banking, food retail and energy related public services without disruptions. At a time when we are encouraging everyone to “Stay home”, we were clearly spot on with our digitalization and the technological investments we have been making for a while”.
Moreover, Alper highlighted the importance of maintaining the wellbeing of value chains at this time and said, “Within the framework of our ecosystem approach, we are offering guidance to our suppliers, dealers and business partners and supporting them”. He also mentioned that the Sabancı Group views corporate citizenship as a top priority, and has focused their support on science and technology, with donations reaching 30 million TL so far.
NO CANCELLED PLANS
Alper went on by saying, “Despite the myriad challenges due to Covid-19, we did not postpone any of our plans. Our Corporate Venture Capital fund was approved by the Capital Markets Board. We will be putting this 200 million TL fund towards technology focused ventures in particular. In this initial stage, we are continuing negotiations with 25 start-ups. We will be moving quickly on this. In short, we are going ahead with our long-term road map without compromise.
We began the pandemic, which has impacted our country as well as the entire world, with a healthy balance sheet and indebtedness rate. We intend to maintain our priority of cash management and oprational continuity through the second quarter as well to create value for our stakeholders. Taking steps focused on advanced technology and sustainability, we will keep working and producing with all of our power in the coming term to ensure the greatest value possible for all of our stakeholders as Turkey’s Sabancı”.