Tofas Türk Otomobil Fabrikasi Anonim Sirketi (TOASO) H2 2024 earnings summary

Executive summary

• Fiat brand maintained domestic market leadership for the sixth consecutive year in 2024 with an 11.2% share, though market share declined by 4.5pp year-over-year due to high competition, increased imports, and the discontinuation of Fiorino production.

• Egea remained the best-selling vehicle for nine years, but Fiat's PC market share dropped below 9%.

• Export volumes dropped by approximately 45% year-over-year due to model transitions, with recovery expected in 2025 from the ramp-up of the new K0 commercial vehicle.

• Constructive dialogue continues with the competition authority regarding the consolidation of Stellantis commercial activities in Turkey, with the acquisition of Stellantis Otomotiv shares nearing completion.

• The phase-out of Fiorino and ongoing evaluation of the future model pipeline after Egea's phase-out present uncertainties.

Financial highlights

• Shipments declined 33% to 174,000 units, with revenue down 35% to TRY 120 billion year-over-year.

• EBITDA dropped 67% to TRY 9.5 billion, and PBT fell 80% to TRY 4.9 billion, mainly due to lower volumes, inflationary accounting, and high net monetary losses.

• Net profit decreased 76% to TRY 5.2 billion, with a net margin of 4.3%.

• Gross margin decreased by 7pp to 11.1%; EBITDA margin fell 7.5pp to 7.9%.

• Robust cash position of TRY 20 billion at year-end, after distributing TRY 10 billion in dividends.

Outlook and guidance

• Domestic shipment guidance for 2025 is 110,000–130,000 units (approx. 12% market share), with export shipments expected to more than double to 70,000–90,000 units.

• Production volumes projected to increase 6%–20% to 150,000–170,000 units in 2025.

• CapEx planned at EUR 150 million, mainly for K0 investments.

• Profit before tax margin targeted above 5% for 2025.

• Domestic light vehicle market expected at 0.9–1.1 million units in 2025, down from 1.24 million in 2024.