Karsan (KARSN) Q4 2024 earnings summary

Executive summary

• Financial statement amounts are TRY thousand, restated to Dec 31, 2024 purchasing power; revenue and gross profit rose YoY, while operating profit and net income declined.

• Cash from operations fell to 546,438 from 3,061,125; net debt-to-capital increased to 46.67% from 43.41%.

• The auditor issued an unmodified opinion; key audit matters included development costs, property revaluations and TAS 29 inflation accounting.

Financial highlights

• Revenue reached 10,867,324 vs 10,717,162; cost of sales was 8,686,735 vs 8,873,309, lifting gross profit to 2,180,589 from 1,843,853.

• Operating profit was 1,016,011 vs 1,615,191; financial expenses were 1,996,781 vs 3,032,757.

• Pre-tax profit was 295,190 vs a loss of 386,586; net profit was 78,369 vs 532,002, including tax expense of 216,821 vs tax income of 918,588.

• Net profit attributable to parent equity holders was 55,484 vs 556,164; total comprehensive income was 330,011 vs 449,191.

• Operating cash flow was 546,438 vs 3,061,125; cash and cash equivalents ended at 1,178,181 vs 1,482,888.

Outlook and guidance

• Management forecast revenue growth and higher operating profitability from increased scale, expecting cash inflows to address the 113,495 working-capital shortfall of current assets versus current liabilities.

• After year-end, the HOSAB factory shifted LFF (Renault Megane) production lines from two shifts to three, in line with the production plan.