Haci Ömer Sabanci Holding (SAHOL) Q3 2024 earnings summary

Executive summary

• Non-bank business achieved break-even bottom line in Q3 2024, with improved margins and positive momentum compared to earlier in the year, despite inflation and challenging market conditions.

• Strategic investments included Çimsa's acquisition of Mannok in Ireland and increased stake in Bulutistan, supporting digital and international expansion.

• Secured major project financings for renewable energy, including $1 billion for YEKA-2 Wind Projects and completed tax equity financing for the Oriana Solar Project in the U.S.

• Achieved globally recognized ESG milestones, including EFQM award, launch of Sustainability Academy, and publication of the 2023 Sustainability Report.

• Net asset value increased 6% to USD 9.4 billion as of October, with a five-year plan to double NAV focusing on energy, climate, digital, and material technologies.

Financial highlights

• Combined revenue rose 5% year-over-year to TL 859.2bn for 9M 2024; Q3 revenue was TL 304.2bn, flat year-over-year.

• Combined EBITDA fell 46% year-over-year to TL 92.4bn for 9M 2024; Q3 EBITDA down 55% to TL 25.1bn, with non-bank EBITDA margin improving by 120 bps.

• Consolidated net loss was TL 3 billion in Q3 2024, a significant improvement from TL 11 billion net loss in Q3 2023; 9M 2024 net income was TL -11.1bn.

• Non-bank operational cash flow reached TL 39-40 billion in Q3, with holding-only net cash at TL 12.2 billion.

• CapEx to net sales in non-bank segments rose to 12.6% in 9M 2024.

Outlook and guidance

• Five-year roadmap targets doubling NAV by 2029, with increased focus on energy, climate, digital, and mobility solutions.

• Medium-term targets unveiled through 2029, aiming for 7% USD NAV growth and maintaining a 45% NAV discount.

• Enerjisa Üretim's EBITDA guidance for 2024 remains close to $500 million, with a possible low single-digit percentage shortfall due to economic deceleration and low electricity prices.

• 2025 outlook is more positive, contingent on easing interest rates and macroprudential measures.