The consolidated sales of Sabancı Holding amounted to 9 billion 100 million TL in the first quarter
The consolidated sales of Sabancı Holding amounted to 9.1 billion TL with a 9.5% increase in the first three months of 2017 in comparison with the same period of the previous year. The consolidated net profit of Sabancı Holding in the first three months of the year, was 669 million TL. Total assets of Sabancı Holding increased to 317.385 billion TL whereas its total consolidated parent company equity increased to 23.634 billion TL as at 31.03.2017.
Mr. Mehmet Göçmen, the CEO of Sabancı Holding, reported the following in his statement, “We carried out many successful operations in the first three months of 2017, particularly in the business lines of Retail, Insurance and Energy. As Sabancı Holding, our objective is to continue to create more value for our stakeholders in all industries we are engaged in, just as we have always done. As a holding, we maintain our investments as we planned. We will keep working for our country and create more value hereinafter just as we have done so far.”
“AKBANK HAS BEEN THE MOST VALUABLE BANK BRAND FOR THE LAST 6 YEARS.”
Making explanations about the banking activities of the Holding as well, Mr. Göçmen noted that Akbank had continued to contribute to the Turkish economy with its activities since its foundation. Mr. Göçmen asserted that the support provided by Akbank with its loans exceeded 230 billion TL with a 5% growth in total, about 186 billion TL of which was cash and continued his statement as follows, “Our general deposits reached 179 billion TL in this period thanks to Akbank. Our rate of non-performing loans is 2.4%, which is one of the lowest rate of non-performing loans in the industry. Akbank has been named “The Most Valuable Bank Brand of Turkey” for 6 successive times and also been awarded the title of “The Best Bank of Central and Eastern Europe” by Euromoney, the famous worldwide finance magazine. It is pleasing to witness that these types of efforts give results in parallel with the confidence of our customers and all other stakeholders in our bank.”
“ENERJİSA CONTINUES TO CREATE VALUE WITH A FOCUS ON EFFICIENCY, COMPETITIVENESS AND OPERATIONAL EXCELLENCE.”
Stating that they continue to create value with a focus on efficiency and operational excellence in Enerjisa, which provides access to electricity for 1 person out of every 4 in Turkey, and is the leading company of the growing and developing Turkish electricity market, Mr. Mehmet Göçmen continued his statement as follows, “Despite the fact that the first quarter of this year involved serious difficulties in all business lines of generation, distribution and sales within the framework of both the market conditions and various regulations, we increased our sales at the rate of 6% and our operating profit at the rate of 7%, excluding one-time incomes and expenses as Enerjisa. We also continued to substantially improve our service quality in the field of electricity distribution and sales in this period. We created value thanks to our well-balanced generation portfolio, effective optimisation of our generation units and our commercial activities, which developed in parallel with the free market, despite the challenging market conditions resulting from the ongoing excess supply in generation, periodic natural gas cuts and the decrease in rainfall in comparison with the previous year. Additionally, we commissioned our hydroelectricity power plant in Doğançay with 62 MW of installed power in this period and we completed our production investments in construction and enhanced our contribution to the utilisation of renewable sources of energy in our country. We continuously maintain our investments in the distribution area where we are providing service in a quite wide geographic area. Furthermore, we are now undergoing a strategic transformation in Enerjisa. We have decided to restructure Enerjisa and its affiliates with our partner E.ON and within this framework, separately manage our electricity distribution and retail sale operations, and the energy production and trade operations, which have different dynamics as two separate companies. In this way, we intend to create two strong companies which can completely focus on the needs of the market and customers.
“WE NEED TO WORK MORE FOR THE IMPROVEMENT OF ENERGY EFFICIENCY AND FOR A PREDICTABLE MARKET.”
Pointing out the fact that he found it very important to identify the three main components of the National Energy Policy, setting forth the strategies for the growth and development of the Turkish energy industry, as energy safety, localisation and a predictable market, Mr. Göçmen noted that he believed that the inclusion of the sources of energy in our country in the economy at increasing rates would make a great contribution in such areas as energy safety, employment, current account balance etc. Addressing the importance of the acceleration currently achieved with solar, wind and lignite projects, Mr. Göçmen asserted that Turkey must simultaneously accelerate its steps for decreasing the energy density and expressed, “Besides the demand or production side and the growth in energy, I consider that we also need to focus on consumption. We must necessarily maintain the steps taken for such energy markets that are free, whose predictability has been reinforced, function on the basis of competition and have sufficient depth.”
“WE CARRIED OUT SUCCESSFUL WORK IN OUR INDUSTRY COMPANIES.”
Referring to the activities of the Industry Group of Sabancı Holding as well, Mr. Göçmen reported, “Our Industry Group carried out successful work in the first three months. The investments made in the previous periods, with a market and customer-oriented activities and operational efficiency approach, reflected positively on the financial indicators in our Kordsa company where we set out under the vision of ‘We Are Strengthening the Life’. We increased our operational profitability at the rate of 50% and our net profit amounted to 74.3 million TL with a 31% increase in comparison with the same period of the previous year.”
“Today, we are exporting buses to a number of countries of the world through our Temsa company. We continue to make a difference with our buses, which are developed with the use of high technology.”
“We displayed a superior performance than the market particularly in England, France, Serbia, Greece, Portugal, Czech Republic, Lithuania, Latvia and Poland with our Lassa brand in the European automobile tyre market, which has grown at the rate of 4% together with our Brisa company.”
“OUR CEMENT COMPANIES ARE PROTECTING THEIR LEADER POSITIONS IN THE INDUSTRY.”
Also mentioning the activities of the cement companies, Mr. Göçmen continued his speech as follows, “We maintained our leadership position in the industry with our cement companies Akçansa and Çimsa. We are developing, producing and marketing the products demanded by our customers with the market and customer-oriented marketing understanding adopted by our Akçansa company. Based on this understanding, we are acting as a business partner in the most important projects of Turkey. Besides this, we opened the door of the low alkali cement market thanks to the low alkali cement product developed by us for the USA. Today, we are the most important cement brand preferred by the USA.”
“ÇİMSA IS BREAKING NEW GROUND IN ITS INDUSTRY IN THE FIELD OF SUSTAINABILITY.”
“The amount of investment we made with our Çimsa company in 2016 was 196 million USD whereas our exports amounted to 110 million USD. We produce 5.6 million tons of cement per year with Çimsa and export the same to 65 different countries. The Çimsa Afyon Factory has been commissioned this year with a 165 million USD investment.
Also, carrying out successful works in the fields of sustainability and environment, our Çimsa company continues to be a model both to its country and industry with the publication of the first Integrated Activity Report in 2017. This is another step on its journey which started with the publication of the first Sustainability Report in the industry in 2010. It was deemed worthy of the Turkish Climate Leaders’ Award by getting an A- score and broke new ground in the cement industry thanks to the success of the company in the reporting period of 2016 of CDP Turkey. Now, Çimsa has 33% of its energy coming from alternative fuels in the 2nd Plant of Eskişehir Factory, which is a substantial rate.”
“IN CARREFOURSA, WE FOCUS ON THE REFLECTION OF GROWTH TO PROFITABILITY.”
Mr. Göçmen noted, “As the Sabancı Group, we worked with all our strength during 2016 for innovations to be introduced at the beginning of 2017 through our CarrefourSA company, our leading brand in the field of food retailing. We focused on operational excellence in order to provide our consumers with diverse products, quality and precise prices in our journey started with the motto of ‘Customer First’, and we are making progress by improving all processes in multi-formats from our warehouses to sections, from product procurement to presentation and by reorganising our Hyper, Super, Mini and Gurme stores and focusing on well-balanced growth and profitability.”
“Our Teknosa brand is protecting its leadership position in the industry. We entered the year of 2017 more readily, in parallel with the changing needs of our customers, and achieved the targeted growth and profitability in the first quarter. We have a rising graphic in the electronic retailing industry in the first three months despite the industry generally being depressed.”
“WE MAINTAINED THE INDUSTRIAL LEADERSHIP OF AVİVASA WITH 12.7 BILLION TL TOTAL NET ASSET VALUE OF FUNDS.”
Addressing the activities of the insurance companies as well, Mr. Göçmen noted that the net profit of the companies based on the combined International Financial Reporting Standards (IFRS) increased at the rate of 48% in the first quarter of 2017 in comparison with the same period of the previous year. Mr. Göçmen also reported, “Our insurance companies protected their positions in their fields in the first quarter of 2017. We maintained our leadership in the total net asset value of funds forming individual pension with our AvivaSA company. The total net asset value of funds, including the state contribution, reached 12.7 billion TL with a 28% increase in the first quarter of 2017 in comparison with the same period of the previous year. We achieved 5% growth in the number of participants in the same period.
Our Aksigorta company, on the other hand, produced 615 million TL of premiums in the first quarter of the year. In the first quarter of 2017, the non-life insurance industry grew at the rate of 14% in comparison with the same period of the previous year and Aksigorta displayed an outstanding performance by increasing its premium production at the rate of 23%. Our IFRS based net profit reached 33.3 million TL. We will continue to create a well-balanced portfolio with Aksigorta and invest in digital transformation and innovation in line with our customer-oriented service understanding in the upcoming period.”