Haci Ömer Sabanci Holding (SAHOL) Q2 2024 earnings summary

Executive summary

• Delivered resilient performance in H1 and Q2 2024 despite macroeconomic volatility, high inflation, and challenging price/demand dynamics, with continued execution of strategic initiatives and investments in sustainability and digitalization.

• Completed key acquisitions: 65% of Bulutistan (cloud tech) and 94.7%–95% of Mannok (building materials), strengthening digital and material technologies portfolios.

• Maintained high liquidity and financial flexibility, with holding-only cash at TL 12 billion and net debt/EBITDA at 1.3x.

• Recognized for ESG achievements, including EFQM Outstanding Achievement Award and progress on SDG commitments.

• Restructured industrial operations into Material Technologies and Mobility Solutions for focused growth.

Financial highlights

• Combined H1 2024 revenue up 8% year-on-year to TL 509.6 billion; banking revenue up 45%–50%, non-bank revenue down 17%.

• Combined EBITDA down 41% to TL 61.8 billion; non-bank EBITDA down 28%, bank EBITDA down 48%.

• Consolidated net income turned to a loss of TL 7.6 billion, compared to TL 10.8 billion profit in H1 2023, driven by non-bank losses and inflationary accounting.

• NAV up 23% in USD terms to $10.8 billion, with a more balanced portfolio composition and a 41% discount to market cap.

• Net cash position up 166% nominally and 55% in real terms year-on-year.

Outlook and guidance

• Expect stronger performance in H2 2024, especially in energy generation due to higher price caps and demand.

• 2024 EBITDA guidance for energy generation segment confirmed at over $500 million, with trading income expected at one-third of 2023 levels.

• CapEx in energy retail and digital to accelerate in H2; management focused on disciplined cost management and maintaining liquidity.

• Monitoring inflation, FX, interest rate trends, and regulatory changes.