Türkiye Sise Ve Cam Fabrikalari (SISE) Q3 2024 earnings summary

Executive summary

• Revenue for 9M'24 was TRY 136.3 billion, down from TRY 159.0 billion year-over-year, with net income at TRY 6.16 billion, a 50% decline from 9M'23.

• EBITDA dropped 64% to TRY 11.8 billion, and EBIT fell 96% to TRY 980 million compared to 9M'23.

• Results reflect the application of IAS 29 inflation accounting due to Turkey's hyperinflationary environment.

• Şişecam maintains a diversified revenue base across glass, chemicals, and energy segments, with operations in 14 countries.

• Total assets stood at TRY 391.5 billion, with equity attributable to parent at TRY 178.5 billion.

Financial highlights

• Gross profit decreased 31% to TRY 31.6 billion; gross margin compressed to 23.2% year-over-year.

• Net debt rose to TRY 73.5 billion, with a net debt/EBITDA ratio of 3.3x at 9M'24.

• Cash and cash equivalents increased 21% to TRY 62.3 billion; total assets slightly decreased to TRY 391.5 billion.

• Free cash flow was negative at TRY -30.3 billion, with capex at TRY 18.6 billion for 9M'24.

• Earnings per share declined to TRY 2.18 from TRY 3.78 year-over-year.

Outlook and guidance

• Inflation accounting under IAS 29 will continue until Turkey's economic conditions change.

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

• No business combinations occurred in 2024; focus remains on organic growth and capital efficiency.

• Sustainability targets include 2050 carbon neutrality, 15% water use reduction, and increased use of recycled materials by 2030.