Haci Ömer Sabanci Holding (SAHOL) Q4 2024 earnings summary

Executive summary

• Achieved 6% year-over-year topline growth in 2024, with major overseas acquisitions including Mannok in Ireland and Bulutistan in Türkiye, and early launch of a 272 MW U.S. solar project, supporting global expansion and sustainability strategies.

• Recognized for ESG leadership, achieving a 20% reduction in Scope 1 and 2 emissions since 2021, with progress toward a 42% reduction target by 2030 and global sustainability accolades.

• Merged financial services and banking segments to enhance efficiency and growth opportunities.

• Q4 2024 marked the strongest non-bank EBITDA margin of the year, led by energy and financial services, despite monetary losses at banking and holding levels.

• Maintained a 23-year streak of uninterrupted dividends, with a proposed TL3 per share for 2024.

Financial highlights

• Combined revenues grew 6% year-over-year in 2024 to TL1,243.5bn, with Q4 revenue up 9% year-over-year; combined EBITDA reached TL129.0bn, up 10.6%.

• EBITDA margin for non-bank segments improved to 11.5% in 2024, with Q4 non-bank EBITDA margin reaching 13%, the highest of the year.

• Consolidated net income turned to a net loss, mainly due to inflation accounting, monetary losses, and TL1.4bn in impairments.

• Operational cash flow (excluding banking) was TL58bn in 2024, up from TL10bn in H1, but down from TL73bn in 2023.

• Capex to sales ratio reached 13.5%, more than doubling over five years.

Outlook and guidance

• Five-year roadmap for 2024-2029 focuses on medium-term targets, global expansion, and continued investment in renewables, digital, and material technologies.

• Committed to a USD5 billion SDG-linked investment by 2027 and net zero target by 2050.

• Monitoring inflation, FX, and regulatory environment as key factors for 2025, with full-year impact of Mannok acquisition and new U.S. solar projects to be reflected in 2025 results.