Haci Ömer Sabanci Holding (SAHOL) Q1 2024 earnings summary

Executive summary

• Q1 2024 results were shaped by inflation accounting, leading to high monetary losses, mainly in banking, but operational performance remained resilient with a strong balance sheet and continued investments.

• Strategic progress included early launch of Cutlass II Solar, financing for Oriana Solar, and Çimsa becoming the third-largest global CAC producer.

• Restructuring advanced towards Material Technologies and Mobility Solutions, with a strong ESG and sustainability focus, including the launch of the Sustainability Academy.

• Standalone net cash position doubled to TL14.4 billion, supporting future growth and investment opportunities.

• NAV grew 28% in USD terms, with the discount to NAV narrowing to 43%.

Financial highlights

• Combined revenue rose 6% year-over-year to TL235 billion, with banking up 39.7% and non-bank revenue down 15%.

• Combined EBITDA fell 17% to TL33.3 billion; consolidated net income turned negative due to inflation accounting and high monetary assets.

• Non-bank EBITDA margin improved year-over-year despite top-line contraction.

• Consolidated ROE dropped to 5.9%; non-bank ROE at 1.7%; bank ROE at 24.9%.

• CapEx to sales increased to 11.3% in Q1 2024, aligning with a long-term 14% target.

Outlook and guidance

• Focus remains on investments in the new economy, green transformation, and expansion in energy, mobility, and digital sectors.

• Monitoring global/domestic inflation, monetary policy, and regulatory environment.

• Ongoing commitment to sustainability, with targets for circular procurement and net-zero emissions by 2050.

• Expectation for generation asset-based EBITDA to remain around $500 million, with trading income lower due to reduced market volatility.

• Aim for more balanced NAV contribution across business units in 3–5 years.