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

Executive summary

• Revenue declined 15% year-over-year to TRY 185.6 billion, with net profit at TRY 5.0 billion, reflecting an 80% decrease from 2023 due to inflation accounting and margin pressure.

• EBITDA dropped to TRY 13.9 billion (7% margin under IAS/TAS 29), down from TRY 45.2 billion in 2023, with operating profit turning negative.

• Inflation accounting (IAS/TAS/TMS 29) significantly impacted reported results, with a net monetary position gain of TRY 15.9 billion.

• The Group completed the full acquisition of Pacific Soda LLC, increasing its stake to 100% and recognizing a bargain purchase gain.

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

Financial highlights

• Gross profit margin declined to 23% (IAS/TAS 29), down from 28% YoY; 29% excluding inflation accounting.

• Net debt stood at TRY 72.1 billion ($2 billion), with net leverage at 5.2x (IAS/TAS 29) or 2.8x (non-IAS 29).

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

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

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

Outlook and guidance

• CapEx for 2025 will be capped at EBITDA generation, prioritizing ongoing greenfield projects.

• Management targets net leverage below 3.5x, focusing on working capital improvements and margin recovery.

• Margins in major business lines 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.

• Positive EBIT impact of EUR 8-10 million expected from operational adjustments in Europe in 2025.