Kardemir Karabük Demir Çelik Sanayi Ve Ticaret (KRDMD) Q1 2025 earnings summary

Executive summary

• Revenue for Q1 2025 was TL 14.41 billion, down from TL 16.86 billion in Q1 2024, reflecting a contraction in sales volume and/or pricing pressure.

• The period ended with a net loss of TL 1.48 billion, compared to a net loss of TL 1.15 billion in the same quarter last year, indicating continued operational and financial challenges.

• Gross profit dropped to TL 715.9 million from TL 1.62 billion year-over-year, with a significant decline in operating profit and margin.

Financial highlights

• Cost of sales was TL 13.70 billion, representing 95% of revenue, up from 90% in Q1 2024, compressing gross margin.

• Operating loss was TL 515.4 million, a deterioration from a loss of TL 34.8 million in Q1 2024.

• Net finance expenses increased, with finance costs of TL 427.6 million and finance income of TL 284.8 million.

• Cash and cash equivalents at period end were TL 2.60 billion, down from TL 3.08 billion at year-end 2024.

• Total assets decreased to TL 88.29 billion from TL 90.17 billion at year-end 2024.

Outlook and guidance

• Management continues to prepare financials on a going concern basis, with no explicit forward guidance provided.