Koç Holding's net profit exceeds expectations

Koç Holding's second quarter net profit was realized as TL 20.60 billion, above expectations of TL 18.24 billion. Koç Holding's net profit in the second quarter of the year increased by 33 percent annually to TL 20.60 billion. The holding's net profit was recorded as TL 15.45 billion in the same period of the previous year. Total net profit was TL 37.4 billion in the first half of this year. The holding's combined revenues in the same period increased by 26 percent annually to TL 438.83 billion. TL 159.9 billion of Koç Holding's revenues came from the energy sector, TL 133.8 billion from the automotive sector, TL 68.4 billion from the finance sector, and TL 56.2 billion from the durable consumer goods sector. The holding, which generated $ 24.9 billion in consolidated revenues, made a combined investment of $ 1.6 billion in the same period. Thus, the company's investments in the last 5 years reached $ 10 billion. In the first six months of this year, the share of foreign revenues in the holding's total combined revenues was realized as 30 percent as in the first half of the previous year, while when Tüpraş's foreign currency-indexed revenues are included, the share of foreign revenues is calculated as 50 percent. Dividend revenues increased by 138 percent annually In the first 6 months of 2023, the holding's dividend revenues increased by 138 percent annually to 14.36 billion TL. The holding's dividend income had been 6.04 billion TL in all of 2022. The vast majority of dividend income was obtained from companies with foreign currency or foreign currency-indexed revenues. While Tüpraş, one of the companies affiliated with the holding, started paying dividends after 3 years, dividend payment at Yapı Kredi was made according to the BRSA's 15 percent dividend distribution rate. A 10 percent dividend payment was made at the bank in the previous 2 years. While the holding company has a solo net cash position of $395 million, it was announced that the consolidated net foreign exchange position after hedging was $628 million as of the end of June. It was announced that the holding company's Net Asset Value discount has reached historically low levels, and the main reasons for this are the sales in Turkish stocks, indicator position, Turkey's risk premium and the high correlation between Koç Holding stock and foreign share in the stock. "We will continue our work with the goal of creating long-term value" On the other hand, Koç Holding CEO Levent Çakıroğlu, who made an assessment on the subject in the statement made by Koç Holding, said, "Despite global uncertainties and difficult market conditions, we closed the first half of the year with a successful performance in line with our goal of creating long-term value. We continue our investments with determination with our belief in the future of our country." Drawing attention to the transactions that Koç Holding has recently carried out within the framework of portfolio management, Levent Çakıroğlu said, "As the Koç Group, our main shareholding in Yapı Kredi will continue with our 61.17 percent partnership share with our belief in Yapı Kredi, the banking sector, and our country's potential." Stating that they have initiated a study in order to evaluate strategic alternatives including the sale of Tat Gıda shares, Çakıroğlu said, "We have appointed financial consultancy on the subject. We will continue our work with the aim of creating long-term value for all of our stakeholders in the coming period with our further strengthened liquidity." "Our exports constitute 7 percent of the country's exports" Stating that they attach importance to their export performance especially in terms of the value they add to the Turkish economy, Levent Çakıroğlu said, "As the Koç Group, our exports constitute approximately 7 percent of our country's total exports. As a reflection of this, we are proud that 4 of the top 10 companies exporting goods among the top 1000 exporters in Turkey are Group companies in the research conducted by the Turkish Exporters Assembly. According to the research, Ford Otosan became the export champion, Tüpraş ranked second, Arçelik seventh and Tofaş ninth.”