DIGITALIZATION IS A KEY CONTRIBUTOR IN Q1
Sabancı Holding has released its Q1 2020 financial results. Sabancı Group’s consolidated sales reached 13.6 billion TRY. Sabancı Group increased its bottom line by 13 percent year-over-year and recorded a consolidated net profit of 1.19 billion TRY.
Sabancı Holding’s CEO, Cenk Alper, stated that Q1 financial results were achieved during the global pandemic fight. Alper also underlined the successful performance of the Turkish health system during this challenging struggle and emphasized that the Group continued to effectively manage this process by taking all the necessary health measures in a rapid manner.
“In Q1 2020, we had a great start of the year, with the help of strong operating performance, solid balance sheet driven by lower leverage and focus on sustainability strategies” said Cenk Alper.
“Pandemic is a solid evidence of growing concerns on sustainability, environment and climate change, which is core to our long term strategy.
Mr. Alper stated that the Group has taken key steps in all its sectors, but particularly in the energy, banking, industry and retail sectors and continued: “The world is fighting one of the most challenging battles in the history of humanity. The pandemic has restructured conventional business models and stands to be an inflection point by itself. Sabancı Group started this unique period with over 60,000 employees, a balanced and resilient set of businesses, strong balance sheet, low debt and advanced IT infrastructure. We have been following the process very carefully, and taking all strategic and operational precautions to overcome this unprecedented challenge”.
WE ARE SUCCESSFULLY MANAGING THE COVID-19 PERIOD
Alper stressed the continued focus on investing in digital was a cornerstone of business continuity.
“Our banking, food retailing and energy businesses Have been critical in serving the general public. Nowadays, we say, ‘Stay Home’ and, once again, we can see the importance of digitalization and our ongoing technology investments for the long-term,” added Cenk Alper.
Alper underlined the importance of maintaining value chains vigorous in this period and continued: “As a part of our ecosystem approach, we guide and support our suppliers, dealers and business partners”. He also noted that the Sabancı Group always prioritizes corporate citizenship with its support particularly focusing on science and technology, and that the Group has donated nearly 30 million TRY so far.
MOVING FORWARD WITH PLANS OF FURTHER INVESTMENTS
Alper continued, “We have been experiencing a number of challenges because of the Covid-19 outbreak but we have not postponed our plans for the future. The Capital Markets Board approved the establishment of our Corporate Venture Capital fund. We are going to use this 200-million TRY fund particularly for ventures focusing on technology. Currently, we are interviewing 25 start-ups as the first step. We are going to progress rapidly on Corporate Venture Capital. Therefore, we are moving forward without giving up on our long-term roadmap”.
“The Covid-19 outbreak has been affecting the entire world, including our country, and we started this period with a strong balance sheet and a low leverage. Our goal in Q2 is to prioritize cash flows and business continuity in order to create value for our stakeholders. As ‘Sabancı of Next Generation, we will continue to work and produce so that our initiatives focusing on advanced technology and sustainability can offer the maximum value to all our stakeholders for the upcoming period”.