Sabancı Holding had a Consolidated Sales of TRY 6.4 Billion in the First Quarter of 2014, increasing by 20 Percent Compared to the Same Term in 2013

12.05.2014

SABANCI HOLDING HAD A CONSOLIDATED NET PROFIT OF TRY 403 MILLION IN THE FIRST QUARTER OF 2014.

Sabancı Holding had a consolidated revenue of TRY 6 billion and 366 million in the first quarter of 2014, increasing by 20 percent compared to the same term in the previous year.

Sabancı Holding's consolidated net profit in the first quarter of 2014 was TRY 403 million.  In the same term, Sabancı Holding's non-bank consolidated operating profit was TRY 206 million, increasing by 35 percent compared to the same term last year.

As of 31 March 2014, Sabancı Holding had total assets of almost TRY 212 billion. Total consolidated capital, on the other hand, exceeded TRY 17 billion.

Reviewing the 2014 first quarter results, Sabancı Holding CEO Zafer Kurtul stated:

-“WITH LOANS EXCEEDING TRY 77 MILLION, AKBANK FUNDS THE GROWTH OF REAL ECONOMY.”

“With assets going over TRY 200 billion at the end of the first quarter, Akbank's cash and non-cash loans increased to more than TRY 150 billion. Our funding for the real economy exceeded TRY 77 billion.”

-“ENERJİSA ENGAGED KAVŞAKBENDİ HYDROELECTRIC POWER PLANT AND COMPLETED THE CONSTRUCTION PHASE FOR ARKUN HYDROELECTRIC POWER PLANT.”

Kurtul continued: “Enerjisa engaged Kavşakbendi Hydroelectric Power Plant with 186 megawatts of installed power capacity in its production portfolio, and completed the construction phase of Arkun Hydroelectric Power Plant with 237 megawatts of installed power capacity. With these, we have completed the construction of eight hydroelectric power plants in the last 12 months. By the end of 2014, Enerjisa will have a total installed power capacity of 3000 megawatts.

One of the largest companies in Turkey with 20 percent market share in distribution, Enerjisa focuses on operational efficiency and profitability, and maintains its activities to increase the quality of service.”

-“THE RESTRUCTURING FOR CARREFOURSA HAS BEEN SUCCESSFULLY UNDERWAY.”

Stating that Carrefoursa had significant improvements since Sabancı Holding took over, Kurtul added: “With an increase of 17 percent in sales in the first quarter of 2014 compared to the same term of the previous year, the company moved into profit for the first time after four years, achieving a net profit of TRY 3.7 million in the first quarter of 2014. The company had double-digit growth rates in the same stores within the first quarter of 2014.

On the other hand, through the newly launched Mini and Gourmet stores, Carrefoursa is now closer to the customer, and offers better and distinguished service.”

-“IN THE FIRST QUARTER OF 2014, OUR INSURANCE COMPANIES SUSTAINED THEIR SUCCESSFUL PERFORMANCE FROM THE LAST YEAR.”

Kurtul also touched upon their activities in the insurance sector: “Achieving significant success both in premium generation and in profitability in the first quarter of the year, Aksigorta increased its premium generation by 16 percent, and its net profit by 78 percent compared to the same term of the previous year.

Among the leading companies of Individual Pensions sector, Avivasa increased its net contribution by 22 percent, and fund size by 25 percent in the first quarter of 2014, compared to the same term in the previous year. The Avivasa-Akbank cooperation in the bancassurance area yields successful results. In the first quarter of the year, one out of 10 people participating in the Individual Pension System participated through Akbank.”

-“OUR CEMENT COMPANIES HAVE INCREASED PROFITABILITY.”

Regarding their activities in the cement sector, Kurtul stated: “Our cement companies Akçansa and Çimsa displayed a high level of performance, in line with the increasing domestic demand. Compared to the same time in the previous year, our cement companies increased their combined sales by 30 percent and their combined net profits to TRY 86 million in the first quarter of 2014.”

-“OUR INDUSTRIAL COMPANIES ACQUIRED HIGH PROFITABILITY THROUGH EXPORTS AND OPERATIONAL EFFICIENCY.”

Kurtul continued: “The increasing exchange rates in Turkey since December 2013 has proved beneficial for our exporting companies, increasing our competitive advantage in the foreign markets.

Through increased exports and active price management, Brisa reached a net profit of TRY 50 million in the first quarter of the year, 92 percent higher compared to the same term in the previous year. Through active cost control and the positive effect of the increase in the exchange rates, Kordsa Global reached a net profit of TRY 31 million in the first quarter of the year. Yünsa increased its amount of sales to the A segment by 23 percent in the first quarter of the year, compared to the same term the previous year.  Yünsa's net profit this year is TRY 6.4 million, compared to TRY 2.5 million in the same term last year.

Temsa Bus expanded its range of exports, adding North American markets to already-present European markets. Temsa Bus makes 90 percent of its exports to Western Europe and Americas. Not present in its total turnover 5 years ago, the Americas now constitute 20% of Temsa Bus total turnover. Temsa Bus aims to perform a total export of USD 120 million in 2014. Improving its performance also on the domestic side with new products, dealership structuring and cost leadership, Temsa Bus increased its sales in the first quarter of the year by 69 percent compared to the previous year.

In order to seize growth opportunities, Temsa Construction Machinery went into a partnership with Marubeni, headquartered in Japan.

Thanks to successful marketing activities, operational efficiency, high exchange rates, low raw material prices and recovery in developed countries, our industry companies increased their net profit by 144 percent compared to the same term in the previous year.

I would like to extend my gratitude to our employees, customers and shareholders for contributing to our results.”