Strong performance of Sabancı Holding in the challenging year
MR. MEHMET GÖÇMEN, THE CEO OF SABANCI HOLDING: “WE GREW AT A RATE OF 34% IN 2018.”
Sabancı Holding announced its financial results for 2018. Accordingly, the net combined sales of Sabancı Holding in 2018 amounted to 88.08 Billion TL with a 34 percent increase, whereas its consolidated net profit amounted to 3.83 Billion TL with a 10 percent increase.
Mr. Mehmet Göçmen, the CEO of Sabancı Holding, asserted that they showed a strong performance in 2018 and stated, “We foresaw the risks. As the Sabancı Group, we grew at the rate of 34% in 2018.”
Sabancı Holding announced its financial results in 2018. According to the disclosure provided to the Public Disclosure Platform (KAP) by Sabancı Holding, the net combined sales of Sabancı Holding in 2018 amounted to 88.08 Billion TL with a 34 percent increase, whereas its consolidated net profit amounted to 3.83 Billion TL with a 10 percent increase.
We effectively managed the supply chain
Mr. Mehmet Göçmen, the CEO of Sabancı Holding, noted, “What distinguished us in 2018 was the fact that we set accurate targets in the light of good foresight and took effective steps at the right time. As usual, we regarded cash management as our main priority at the beginning of the year. We attached importance to risk management, being one of the most important factors of corporate governance and minimised our balance sheet risks. We accurately managed our value chain and the dealer, supply and procurement processes. We placed digitalisation at the centre of our business model.”
Mr Göçmen continued, “We successfully performed the public offering of Enerjisa Enerji with a record five-times greater demand. Besides the public offering of Enerjisa Enerji, the syndication of Akbank and the capital increase were the exemplary achievements, which guided the markets in 2018, reassured our national economy and were intended for attracting foreign capital. This is the indicator of the domestic and foreign confidence in the Sabancı Group.”
Expressing that balancing has started in economy, Mr. Mehmet Göçmen underlined that they expect reforms with a longer time period after the election. Mr. Göçmen continued his speech as follows, “As the Sabancı Group, we have taken our precautions; we are maintaining production and investment. We maximised exports and cost discipline in our budget for 2019. We will also sustain the achievement in cash flow management from 2018 in this year. We will manage the debt-equity balance in accordance with the current conditions.
We will maintain our high performance, accelerated by the public offering in Enerjisa Enerji in 2019. We will create a strong cash flow, particularly in Enerjisa Üretim. We have achieved a risk-free structure in terms of exchange rates. Thanks to the operational improvements and rapidly decreasing indebtedness level, we are maintaining our activities for making Enerjisa Üretim available for a public offering.
Technology and digitalisation will continue to be our main focus. We will expand and carry our businesses into the future with the opportunities provided by technology. SabancıDx will lead the digital transformation of our companies. The cultural transformation of our Group will be sustained concurrently with the digital transformation.”
Stating that they will keep investments as Sabancı Holding within the frame of the “dynamic portfolio management” approach, Mr. Mehmet Göçmen concluded, “We will continue to produce, invest and improve our businesses with technology and create value for all our stakeholders.”
Successful results in business lines
Mr. Mehmet Göçmen also reported the following about the results of Sabancı Holding in the different business lines, “Akbank was selected as “The Best Bank of Turkey” in 2018 as a result of an assessment by five different international organisations particularly the Banker, being the finance magazine of the Financial Times group. The support provided by Akbank to the economy in 2018 reached to 267 billion TL in total, of which 214 billion was in cash. General deposits of the Bank reached 209 billion TL whereas its assets reached 355 billion TL. The support provided to the real economy through SME credits and corporate credits amounted to 226 billion. Akbank reserved a 1.427 billion TL provision for tax and achieved 5.709 billion TL consolidated net profit.
We displayed an outstanding performance also in our non-bank businesses. The combined net sales of our non-bank transactions reached to 50 billion TL with a 31% increase from the contribution of energy, insurance and industry segments in particular. The profitability of the non-bank businesses, increased beyond their high growth; our net profit in non-bank transactions was 1.561 billion TL with an 86% increase. In particular, our energy and insurance businesses contributed to these positive results with the concurrent achievement of high growth and profitability increases, despite the challenging market conditions.”