Karsan (KARSN) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended 30 September 2024 was 5,848,620 TL, down from 6,557,796 TL in the same period last year, with a net loss of 862,783 TL compared to a net profit of 1,001,286 TL year-over-year.

• EBITDA fell to 195 million TL from 326 million TL year-over-year.

• Gross profit and operating profit both declined significantly compared to the same quarter last year.

• Net cash used in operating activities was (2,332,233) TL, a significant deterioration from (241,998) TL in the prior year.

Financial highlights

• Quarterly revenue dropped to 1.25 billion TL in 2024 Q3 from 1.81 billion TL in 2023 Q3.

• Gross profit turned negative at -47 million TL, down from 210 million TL year-over-year.

• Operating profit was -261 million TL, compared to 71 million TL in 2023 Q3.

• Total assets as of 30 September 2024 were 14,493,650 TL, down from 15,314,526 TL at year-end 2023.

• Cash and cash equivalents at period end were 850,062 TL, down from 1,395,397 TL at year-end 2023.

Outlook and guidance

• 2024 revenue target set at 9-10 billion TL, with an EBITDA target of 1.2 billion TL.

• Management expects revenue growth and improved operating profitability in 2024, projecting that scale effects will strengthen working capital and cash flow.

• No material going concern risk is anticipated due to expected cash inflows from revenue growth.

• Sales volume guidance for 2024 is 450-500 units.

• Net profit margin guidance provided, but actual margin not specified.