Türkiye Sise Ve Cam Fabrikalari (SISE) Q4 2024 earnings summary

Executive summary

• Consolidated revenue reached TRY 185.6 billion, down 15% year-over-year, with strong performance in Architectural Glass and Glass Packaging, while Chemicals remained stable and Glassware and Industrial Glass declined due to cyclical and seasonal factors.

• Inflation accounting (IAS 29/TMS-29) significantly impacted reported results, with a 15% decline in consolidated revenue and an 80% decrease in net income to 5.2 billion TL.

• EBITDA was TRY 13.9 billion (7% margin) under IAS 29, down 69%, and operating profit turned negative at -1.2 billion TL.

• International sales comprised 59% of consolidated revenue, with Europe accounting for 29% and the US 12%.

• All financials are reported under inflation accounting, significantly impacting comparability.

Financial highlights

• Gross profit margin was 23% (down 500 bps YoY), but 29% excluding IAS 29.

• Net debt stood at 72.1 billion TL ($2 billion), with a net leverage ratio of 5.2x (IAS 29/TMS-29) or 2.8x (non-IAS 29), and net debt/equity at 0.35x.

• Free cash flow was negative at -30.9 billion TL, reflecting lower profitability and high investment spending.

• CapEx totaled TRY 30.1 billion, focused on flat glass, glass packaging, and greenfield projects.

• Cash and cash equivalents were $1.7 billion; gross debt $3.7 billion.

Outlook and guidance

• CapEx for 2025 will be strictly limited to EBITDA generation, with prioritization of ongoing greenfield projects.

• Management aims to keep net leverage around 3.5x, focusing on working capital improvements and margin recovery.

• Margins in major business lines (chemicals, flat glass, glass packaging) expected to be stable or improve versus Q4 2024; mild demand recovery anticipated in Europe mid-year.

• No immediate plans to issue new debt in international markets.