Kardemir Karabük Demir Çelik Sanayi Ve Ticaret (KRDMD) Q3 2024 earnings summary

Executive summary

• Global crude steel production fell 1.9% year-over-year to 1.39 billion tons in the first nine months of 2024, while Turkey's output rose 13.8% to 27.9 Mt, maintaining its 8th global rank.

• The company is Turkey's only rail and railway wheel producer, with a diversified product portfolio and ongoing investments in modernization and environmental projects.

• Report covers the nine-month period ended 30 September 2024, prepared in accordance with Turkish Accounting Standards and inflation-adjusted as per TAS 29.

• Main operations include iron and steel production, with subsidiaries in steel construction, casting, energy, and logistics.

• All shares are publicly traded on Borsa Istanbul.

Financial highlights

• Sales revenue for 9M24 was 41.0 billion TRY, down from 52.1 billion TRY in 9M23.

• EBITDA for 9M24 was 3.07 billion TRY, with a margin of 7.5%, slightly up from 7.0% in 9M23.

• Net loss for 9M24 was 2.96 billion TRY, compared to a net loss of 3.19 billion TRY in 9M23.

• Gross profit margin improved to 5.2% from 4.9% year-over-year.

• Operating loss for 9M24 was 1.04 billion TRY, compared to 2.71 billion TRY in 9M23.

Outlook and guidance

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

• Financial statements are prepared on a going concern basis, with no changes in consolidation scope or accounting policies from prior year.

• Deferred tax assets recognized, reflecting management's expectation of future taxable profits.