Kardemir Karabük Demir Çelik Sanayi Ve Ticaret (KRDMD) Q2 2024 earnings summary

Executive summary

• Global crude steel production in 1H24 was flat at 955 million tons, while Türkiye's output rose 16.9% to 18.6 million tons, moving it to 8th globally.

• The company is the only rail and railway wheel producer in Türkiye and ranks 26th among Turkish industrial enterprises.

• The company operates in steel, coke, energy, and related sectors, with all shares publicly traded on Borsa Istanbul.

• Interim period ended 30 June 2024 showed a net loss of TL 1.83 billion, compared to a net loss of TL 1.59 billion in the same period last year.

Financial highlights

• 1H24 revenue was 24.3 billion TRY, down from 31.4 billion TRY in 1H23.

• Gross profit fell to 1.48 billion TRY (6.1% margin) from 2.23 billion TRY (7.1% margin) year-over-year.

• Operating profit turned negative at -253.5 million TRY (vs. 436.8 million TRY in 1H23), with a -1.0% margin.

• Net loss widened to -1.83 billion TRY from -1.59 billion TRY in 1H23.

• Total assets decreased to TL 71.90 billion from TL 74.80 billion at year-end 2023.

Outlook and guidance

• Ongoing investments include vacuum degassing, a new continuous casting machine, environmental upgrades, and R&D projects.

• The company is evaluating the impact of new tax laws and global minimum tax regulations enacted after the reporting period.