Türkiye Sise Ve Cam Fabrikalari (SISE) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was TRY 45,464 million, with a 12% year-over-year increase reported in one source and a 19% decrease in another; gross profit was TRY 10,765 million, and EBITDA was TRY 3,910 million.

• Net income declined 45% year-over-year to TRY 1,328 million, with another source reporting net profit attributable to equity holders at TRY 1.25 billion, a 61% decrease.

• Earnings per share dropped to TRY 0.57, compared to TRY 1.2933 in Q1 2024.

• Inflation accounting (IAS/TAS 29) applied due to Türkiye's hyperinflation, impacting all reported figures.

• The company operates across six segments: architectural glass, industrial glass, glass packaging, glassware, chemicals, and energy.

Financial highlights

• Cost of goods sold increased 10% year-over-year, while operating expenses rose sharply, with general and administrative up 49% and R&D up 104%.

• EBIT/operating profit turned negative at -TRY 422 million to -TRY 487 million, compared to positive results in Q1'24.

• Net debt/EBITDA ratio surged to 7.6x from 1.6x year-over-year; net debt reached TRY 98,350 million.

• Cash and cash equivalents fell to TRY 36,126 million, down 39% from the previous year.

• Net debt/total equity ratio increased to 52% from 46% at year-end 2024.

Outlook and guidance

• Inflationary accounting expected to continue until Türkiye no longer meets IAS 29 criteria.

• Sustainability targets include 2050 carbon neutrality, 15% reduction in fresh water use, and 50% reduction in packaging waste by 2030.

• No new business combinations occurred in Q1 2025.

• The company expects to recover deferred tax assets related to investment incentives within five years.

• Ongoing collective bargaining negotiations resulted in a strike decision, but an agreement was reached in May 2025.