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

Executive summary

• Q1 2025 revenue was TRY 45,464 million, up 12% YoY by one measure but down 19% by another, with gross profit at TRY 10,765 million and EBITDA at TRY 3,910 million, both declining YoY.

• Net income dropped to TRY 1,328 million, down 45% to 61% YoY, and EPS fell 56%.

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

• Şişecam maintained stable production and capacity utilization, accelerating efficiency and digitalization projects.

• Geographic diversity and multi-market production helped mitigate risk amid global trade tensions.

Financial highlights

• Cost of goods sold increased 10% YoY; operating expenses rose sharply, with general/admin up 49% and R&D up 104%.

• EBIT turned negative at -TRY 422 million, compared to TRY 1,320 million in Q1'24.

• Net debt/EBITDA surged to 7.6x; net debt reached TRY 98.4 billion.

• Cash and cash equivalents fell to TRY 36,126–38,800 million, down sharply from 2024-end.

• Capex was TRY 7,701 million (17% of sales), focused on greenfield investments and cold repairs.

Outlook and guidance

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

• Management expects continued volatility from global trade tensions and macroeconomic uncertainty.

• Focus remains on cost management, operational efficiency, and prudent capital allocation.

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