Sabancı Holding announced the results of the third quarter
SABANCI HOLDING REACHED CONSOLIDATED SALES OF 10.534 BILLION TL WITH A 25 INCREASE IN THE THIRD QUARTER OF 2017 IN COMPARISON WITH THE SAME PERIOD OF THE PREVIOUS YEAR.
The consolidated sales of Sabancı Holding amounted to 10.534 Billion TL with 25% increase in the third quarter of 2017 in comparison with the same period of the previous year. The operating profit, reached to 2.354 Billion TL with a 50% increase in the third quarter of 2017 in comparison with the same period of the previous year. The consolidated net parent company profit of Sabancı Holding was 881 Million TL with a 64% increase in the third quarter of 2017 in comparison with the same period of the previous year.
Mr. Mehmet Göçmen, the CEO of Sabancı Holding, stated in his explanation, “We are continuing to work at full speed based on the experience gained from our background of over 90 years. Along with our strength and qualified human resources resulting from our ongoing transformation, we will keep creating value for our business partners and stakeholders. We carried out very successful activities in the first 9 months of 2017 particularly in the business lines of Industry, Insurance and Energy. We are in a transformation process with the purpose of creating a dynamic and well-balanced portfolio beyond financial statements. Our driving force is to take the required leading steps in accordance with the needs of our country under the developing human profile and developing global competition conditions. We are reconstructing the Sabancı Group in the light of this perspective and vision.”
“WE INCREASED THE SUPPORT PROVIDED TO REAL SECTORS AND INDIVIDUALS THROUGH AKBANK TO 245 BILLION TL.”
Making explanations also about the banking activities of the Holding, Mr. Göçmen remarked that Akbank had a banking understanding that meant it stood by its customers all the time and continued, “We expanded the support provided to our economy at the rate of 12% in this period, in comparison with the last year-end, and increased our credits to 245 Billion TL in total, of which 195 Billion TL was in cash. Our assets exceeded 315 Billion TL with a growth of 7.1% in the first 9 months of 2017.”
“WE EFFECTIVELY STRUCTURED OUR BUSINESS LINE OF ENERGY ACCORDING TO THE MARKET DYNAMICS AND TRANSFORMED IT AS TWO STRONG COMPANIES.”
Addressing the activities of the Energy Group as well, Mr. Mehmet Göçmen specified, “We have successfully completed the separation process by business lines, which was started for the purpose of managing Enerjisa into business lines with different dynamics, with a focus on the market and customers in a simpler and more effective manner. In this new period for energy, we will carry out our distribution and sales operations through “Enerjisa Enerji” and our electricity generation, trade and natural gas activities through “Enerjisa Üretim”.
Enerjisa Enerji achieved one fourth of the non-finance exports in Turkey by issuing 1.2 billion TL bonds in total since 2016. We increased our distribution investments at the approximate rate of 50% with 1.1 billion TL distribution investment in the first 9 months of this year, in comparison with the same period of the previous year. We identified digitalisation as one of our most important priorities in order to provide the best solutions to our 9 million customers. In retail, we are undergoing a period where the tariff and cost balance has deteriorated. I think it is highly important for this balance to be healthier and more sustainable. Within this framework, it will be of utmost importance to accelerate the steps which reflect the costs and prioritise energy efficiency in consumption.
As the largest private industry electricity generation company of Turkey with its 3,600 MW balanced and efficient generation portfolio, Enerjisa Üretim has taken the first step to supporting its portfolio with solar energy by means of commissioning a 2 MW solar power plant in Bandırma and a 7 MW solar power plant in Karabük in the 3rd quarter of this year. At this point, I find these efforts quite valuable, as the predictability is strengthened and they reflect the supply and demand equilibriums and costs accurately. It will effectively make use of the high energy efficiency potential of our country and we intend further development of the market structures based on competition.”
“WE ARE CONTINUING TO MAKE A DIFFERENCE IN R&D AND INNOVATION THROUGH OUR INDUSTRIAL COMPANIES.”
Also mentioning the performance of the Industry Group in the first nine months, Mr. Göçmen stated that they were preparing to celebrate the 30th anniversary of the partnership of Brisa and Bridgestone Corporation and continued his statement as follows, “We are expanding Brisa in this geography with our R&D Centre in İzmit, with a focus on the development of innovative products, and our second factory in Aksaray equipped with high technology.”
“With our Kordsa company, we are the technology leader in the tyre, composite and construction reinforcement market. We achieved innovation that left its mark on the tyre industry, thanks to the sustainable formula developed jointly with Continental, besides the financial success of the first nine months of 2017.”
“WE ARE THE LEADER OF TURKEY IN CEMENT AND WE WILL GROW WITH NEW INVESTMENTS.”
“As Sabancı Holding, we are in a leader position in the Turkish cement industry with our 14 million tons production per year. Along with the growth of the infrastructure investments in Turkey, we are continuing to grow as well. Today, we are exporting to over 65 countries of the world thanks to the 350 Million USD investment made by our Çimsa company over the last five years. We will further strengthen our global white cement producer identity with our investments and entry to new markets. R&D and innovation are among the essential priorities with our Akçansa company. Our market and customer-oriented approach directs us to these areas. Our purpose is to develop products and services in accordance with the expectations and needs of our customers and offer the same, at affordable prices, based on our efficiency-oriented investments.”
“WE ARE ALL OVER TURKEY WITH OUR BRANDS IN THE RETAIL INDUSTRY.”
Also asserting that the first nine months of 2017 were very successful for the retail companies of Sabancı Holding, Mr. Göçmen added, “Technology retailing has been undergoing a new process in Turkey just as all over the world. As Teknosa, we are focusing on delivering an uninterrupted shopping experience to our customers by way of making critical investments in multiple channel strategy. With our CarrefourSA company, we are an important player in the Turkish food retailing industry. With our 630 stores across Turkey, we aspire to provide the best service to our customers with the best use of digitalisation.”
“OUR INSURANCE GROUP INCREASED ITS PROFIT AT THE RATE OF 77% IN THE FIRST NINE MONTHS.”
Referring to the activities of the insurance companies, Mr. Göçmen noted that they increased their total net asset value of funds by a factor of 12 in the Individual Pension System (BES) with AvivaSA. Mr. Mehmet Göçmen, the CEO of Sabancı Holding, continued, “We are maintaining our leadership in the industry with the total net asset value of funds achieved in 2015. We have increased the number of customers fivefold in our 10 years of operation with AvivaSA. According to the financial statements prepared on the basis of the International Financial Reporting Standards (IFRS), we increased our return on equity to 30 percent in the first 9 months. The future will be determined by ‘loyalty’ and ‘digitalisation’ phenomena.”
“As one of the leading players in the non-life insurance industry, our Aksigorta company achieved a strong return on equity, at the level of 24 percent, thanks to its strong financial performance in the first 9 months. According to the financial statements prepared on the basis of the International Financial Reporting Standards (IFRS), the net profit of Aksigorta was 99 million TL with an 82% increase in comparison with the same period of the previous year. As a result, the net profit of the Insurance Group of Sabancı Holding increased at the rate of 7% in the first nine months of 2017 in comparison with the same period of the previous year (on the basis of the IFRS).”