Karsan (KARSN) Q1 2024 earnings summary

Executive summary

• Focus on sustainable growth in Europe and North America, emphasizing operational excellence and leadership in mobility technology.

• Expansion into new markets with right-hand drive vehicles and autonomous projects in Europe and America.

• Over 1,100 electric vehicles operating in 23 countries, with significant export share from Turkey to Europe.

• Revenue for Q1 2024 was TRY 1,755.8 million, down from TRY 2,023.3 million year-over-year.

• Main business lines include branded vehicles, industrial and spare parts, and contract manufacturing.

Financial highlights

• Q1 2024 revenue at 1,756 mn TL, down from 2,023 mn TL in Q1 2023.

• Gross profit decreased to 249 mn TL from 314 mn TL year-over-year.

• Operating profit rose to 302 mn TL from 225 mn TL year-over-year.

• Net income for Q1 2024 was 11 mn TL, down from 25 mn TL in Q1 2023.

• EBITDA increased to 408 mn TL from 286 mn TL year-over-year.

Outlook and guidance

• 2024 targets: revenue of €350–360M, net profit margin of 6–7%, EBITDA of €75–85M, and 550–650 units sold.

• Management expects increased operating profitability in 2024, driven by revenue growth and scale.

• No dividend will be distributed for 2023 due to lack of distributable profit.