Haci Ömer Sabanci Holding (SAHOL) Q3 2024 earnings summary

Executive summary

• Non-bank business achieved break-even bottom line in Q3 2024, with improved margins and positive momentum, despite challenging macroeconomic conditions and high inflation.

• Strategic investments included Çimsa's acquisition of Mannok in Ireland and increased stake in Bulutistan, supporting digital and international expansion.

• Major renewable energy project financings were secured, including $1 billion for YEKA-2 Wind Projects and tax equity financing for the Oriana Solar Project in the U.S.

• Net asset value increased 6% to USD 9.4 billion as of October, with a five-year plan to double NAV focusing on energy, climate, digital, and material technologies.

• The period was marked by high inflation, with financial statements adjusted for purchasing power as per hyperinflationary accounting standards.

Financial highlights

• Combined revenue for the first nine months of 2024 grew 5% year-over-year, reaching TL 859.2 billion; Q3 revenue was flat at TL 304.2 billion.

• Combined EBITDA contracted 46% year-over-year to TL 92.4 billion for 9M 2024; Q3 EBITDA margin improved by 120 bps.

• Consolidated net loss for 9M 2024 was TL 22.99 billion, with Q3 net loss narrowing to TL 2.8–3 billion.

• Non-bank operational cash flow reached TL 39–40 billion in Q3, with holding-only net cash at TL 12.2 billion.

• CapEx to net sales in non-bank segments rose to 12.6% in 9M 2024.

Outlook and guidance

• Second half of 2024 expected to outperform the first half, with positive momentum in non-bank business and a five-year roadmap targeting doubling NAV by 2029.

• Enerjisa Üretim's EBITDA guidance for 2024 remains close to $500 million, with a possible low single-digit percentage shortfall.

• Medium-term targets unveiled through 2029, aiming for 7% USD NAV growth and maintaining a 45% NAV discount.

• 2025 outlook is more positive, contingent on easing interest rates and macroprudential measures.