Koç Holding (KCHOL) Q4 2024 earnings summary

Executive summary

• 2024 financials apply IAS 29 inflation accounting, affecting year-over-year comparability.

• Diversified portfolio across auto, finance, energy and consumer durables; 90% of NAV from listed assets and 49% of revenue international.

• Navigated global and domestic uncertainty with a prudent risk stance and dynamic portfolio management.

Financial highlights

• Combined revenues fell 3% year-over-year to TL 3,625,717 million; combined operating profit fell 72% to TL 109,428 million.

• Combined profit before tax was TRY 59.6 billion and combined net income TRY 26.2 billion; consolidated net income after non-controlling interests fell 99% to TL 1,306 million.

• Year-end net cash rose to USD 911 million from USD 795 million in 2023; gross cash was USD 1.68 billion.

• 80% of gross cash was held in hard currency.

• Dividend income reached TL 38.5 billion and TL 20.3 billion was distributed to shareholders.

Outlook and guidance

• Exporters face margin pressure from real lira appreciation and high labor costs; domestic demand and growth are expected below 10-year averages.

• Combined net revenue is expected to be flat in 2025, with oil prices a key variable; dividend payout likely to be lower than in 2024.

• Tüpraş guides to 2025 refining margins of $5.0–6.0/bbl and capacity utilization of 90–95%.

• Automotive guidance points to lower domestic sales and stable or slightly higher exports; Arçelik expects flat domestic revenue, ~15% international growth in FX terms and 7–8% EBITDA margin.

• Yapı Kredi targets mid-teens loan growth and improved NIM and ROTE; M&A opportunities are being pursued, especially in developed markets outside Turkey.