Arçelik (ARCLK) investor relations material

Executive summary

• Consolidated revenue for Q2 2025 was TRY 121.4 billion, down 11.5% year-on-year in real terms, but up 5% sequentially from Q1, mainly due to weak international demand and unfavorable product mix/pricing in Turkey.

• Gross margin improved to 28.4% in Q2, supported by lower raw material costs, favorable euro-dollar parity, and production footprint optimization.

• Adjusted EBITDA margin rose to 5.9% in Q2, with a 7% margin excluding inflation accounting impacts.

• Net loss before minority was TRY 3 billion in Q2, with a negative 2.4% net margin.

• Significant business combinations included the acquisition of Whirlpool's European and MENA subsidiaries, resulting in a substantial bargain purchase gain.

Financial highlights

• Operating expenses decreased by 11.2% year-on-year, reflecting restructuring efforts.

• Net financial expenses increased 3% year-on-year due to higher debt and Turkish interest rates.

• Net working capital to sales ratio was 20.9% as of June, stable year-to-date.

• CapEx to sales ratio was 3% in H1, down year-on-year due to completed investments.

• Free cash flow was negative TRY 23.8 billion in H1, mainly due to increased trade receivables and restructuring outflows.

Outlook and guidance

• 2025 guidance maintained: flattish domestic sales in real terms, 15% international revenue growth in euro terms, 6.5% EBITDA margin, and EUR 300 million CapEx.

• Further improvement in leverage and working capital expected in H2, with positive impacts from new product launches and cost synergies.

• Ongoing sale of assets held for sale in Poland is expected to complete within twelve months as part of production optimization.