Haci Ömer Sabanci Holding (SAHOL) Q1 2024 earnings summary

Executive summary

• Q1 2024 results were shaped by inflation accounting, leading to high monetary losses and a consolidated net loss of TRY 5.4 billion, but operational performance remained resilient with strong banking revenue growth and a robust balance sheet.

• Standalone net cash position doubled to TL14.4 billion, supporting future growth and investment opportunities.

• Strategic agenda advanced with early launch of Cutlass II Solar, financing for Oriana Solar, and restructuring into Material Technologies and Mobility Solutions.

• Sustainability initiatives progressed, including a circular economy framework and the launch of the Sustainability Academy.

• NAV grew 28% in USD terms, with a 43% discount to NAV.

Financial highlights

• Combined revenue rose 6% year-over-year to TL234.8 billion, with banking revenue up 39.7% and energy revenue down 35–48%.

• Combined EBITDA fell 17% to TL33.3 billion; consolidated net income dropped to -TL5.4 billion due to inflation accounting.

• Non-bank revenue declined 15%, but non-bank EBITDA margin improved year-over-year.

• Consolidated ROE was 5.9% in Q1 2024, down from 19.8% a year ago; non-bank ROE at 1.7–9.4%.

• CapEx to sales increased to 11.3%, aligning with long-term targets.

Outlook and guidance

• Focus on new economy investments, green transformation, and expansion in energy, mobility, and digital sectors.

• Generation asset-based EBITDA expected around $500 million, with lower trading income due to reduced market volatility.

• Ongoing commitment to sustainability, with targets for circular procurement and net-zero emissions by 2050.

• Aim for more balanced NAV contribution across business units in 3–5 years.

• No specific timeline for Enerjisa IPO; will depend on market conditions.