Koç Holding (KCHOL) H2 2024 earnings summary

Executive summary

• Navigated a challenging year with prudent risk management amid global and domestic uncertainties, applying inflation accounting (IAS 29/TAS 29) that impacted comparability with prior years.

• Portfolio remains well-diversified across auto, finance, energy, and consumer durables, with 90% of NAV from listed assets and 49% of revenues from international operations.

• Major business combination: Arçelik merged its European operations with Whirlpool, forming Beko Europe B.V. with a 75% controlling interest.

• Continued investments and growth initiatives, including a 40-year concession for Fenerbahçe-Kalamış Yat Limanı and international expansion in renewables and healthcare.

• Consolidated financial statements were audited with an unqualified opinion, reflecting the Group's financial position as of 31 December 2024.

Financial highlights

• Registered TRY 59.6 billion profit before tax and TRY 26.2 billion net income on a combined basis; consolidated net profit attributable to equity holders was TL1,306 million, all inflation-adjusted.

• Total consolidated revenue for 2024 was TL2,317,907 million, nearly flat year-over-year; combined revenues fell 3% to TL3,625,717 million.

• Net cash position improved to USD 911 million at year-end 2024, up from USD 795 million in 2023.

• Dividend income reached TL 38.5 billion; TL 27,236 million paid out in dividends and profit shares.

• 80% of $1.7 billion gross cash held in hard currency.

Outlook and guidance

• Exporters face margin pressure in 2025 due to real appreciation of the Turkish lira and subdued domestic demand.

• Combined net revenue expected to be flat in 2025, with oil prices as a key variable; Tüpraş expects refining margins of $5.0–6.0/bbl and 90–95% utilization.

• Automotive sector anticipates lower domestic sales but stable or slightly higher exports; Arçelik projects flat domestic revenue and ~15% international growth in FX terms.

• Dividend payout likely to be lower than 2024, reflecting a more challenging environment; flexibility in dividend payments maintained.

• Actively seeking M&A opportunities, especially outside Turkey in developed markets, and focusing on international expansion and synergies.