1Q20 Earnings Announcement
Highlights
Financial Results | Million TL | YoY Change | |
Revenues | 9.367 | 1% | |
Export Revenues | 7.504 | -8% | |
Domestic Revenues | 1.862 | 63% | |
Operating Profit | 794 | 32% | |
EBITDA | 1.012 | 30% | |
EBITDA excluding other income/expense | 896 | 15% | |
Profit Before Tax | 612 | 28% | |
Net Income | 629 | 32% |
Volumes | Units | YoY Change | ||
Total Wholesale Volume | 81.508 | -18% | ||
Export Volume | 66.540 | -25% | ||
Domestic Wholesale Volume | 14.968 | 43% | ||
Domestic Retail Volume | 13.625 | 30% | ||
Market Share | 10,7% | -0.9 pps | ||
Production | 80.352 | -18% | ||
Capacity Utilization Rate | 71% | -16 pps |
1Q20 financial results published in this earnings announcement have been prepared according to the International Financial Reporting Standards (IFRS).
1Q20 Earnings Announcement
Summary Income Statement, Million TL | 31.03.2020 | 31.03.2019 | % Change |
Revenues | 9.367 | 9.284 | 1% |
Export | 7.504 | 8.141 | -8% |
Domestic | 1.862 | 1.143 | 63% |
Gross Profit | 1.072 | 944 | 14% |
Operating Profit | 794 | 603 | 32% |
Financial Income/(Expense) | -183 | -126 | 45% |
Profit Before Tax | 612 | 477 | 28% |
Net Income | 629 | 478 | 32% |
Other Financial Data | |||
Depreciation and Amortization | 219 | 178 | 23% |
EBITDA | 1.012 | 781 | 30% |
EBITDA excluding other income/expense | 896 | 781 | 15% |
Capital Expenditures | -156 | -261 | -40% |
Revenues
Turkish auto industry grew by 41% in 1Q20 to 127,137 units. Sales rose across all segments YoY: PC +45%, LCV +41%, MCV +12% and Heavy Trucks
+68%. PC industry share was 78.4% (1Q19: 76.4%). LCV industry share was unchanged at 10.5%. Ford Otosan maintained its CV leadership with 36.1% market share. Total industry ranking was #4 with 10.7% market share and 13,625 unit retail sales.
Demand in the domestic market was very strong until mid March, driven by the low base year and ongoing campaigns. Starting from the second half of March, the market slowed down considerably due to Covid-19.
As our main export destination, Europe, became the center of the epidemic we have seen closure of border crossings, restrictions in ports, and a sharp decline in demand. Taking into consideration Ford of Europe's decisions to temporarily suspend operations due to the disruption in trade and problems in the supply chain, Ford Otosan decided to suspend manufacturing activities temporarily from March 20. Production was resumed gradually on April 27 and May 4.
Domestic Revenues were TL 1,862 million in 1Q20, up 63% as a result of 43% YoY growth in volumes and ongoing pricing discipline.
Export revenues came in at TL 7,504 million. The YoY decrease in export revenues was limited to 8% due to strong € against TL despite 25% decline in export volume.
Total Revenues were up 1% YoY to TL 9,367 million driven by the strong domestic sales performance. Share of exports in total revenues was 80% in 1Q20 (1Q19: 88%).
Profitability
Profitability was strong in 1Q20 due to i- rising domestic sales units, ii- robust after sales and spare part business, iii- pricing discipline and iii- cost reduction actions and OpEx control.
Gross Profit rose 14% YoY to TL 1,072 million as a result of higher contribution of the domestic market, declining cost of raw materials and cost reduction actions. EBITDA grew 30% YoY to TL 1,012 million while EBITDA per vehicle reached a record high of EUR 1,657. EBITDA excluding the currency impact was up 15% YoY to TL 896 million. Operating Profit was up by 32% YoY mainly explained by TL 116 million increase in Net Other Income due to 1) declining non-cash financial expenses on trade payables of material purchases driven by lower interest rates (reported under Unearned Financial Expense), 2) higher FX gains related to trade receivables driven by TL depreciation.
Net Financial Expenses increased by 45% YoY driven by 56% higher Net FX Loss. Profit Before Tax increased 28% YoY to TL 612 million. Net Income was TL 629 million, up 32% and higher than PBT due to Tax Income Resulting from Deferred Tax Asset.
Margins: Gross 11.4% (+1.2 pps YoY); EBITDA 10.8% (+2.4 pps YoY); EBITDA excluding other income 9.6% (+1.2 pps YoY); Operating 8.5% (+2.0 pps YoY); and Net 6.7% (+1.6 pps YoY).
1Q20 Earnings Announcement
Sales Volume by Model, units | 31.03.2020 | 31.03.2019 | % Change | ||||||
Domestic Sales | 14.968 | 10.441 | 43% | ||||||
Passenger Car | 3.538 | 2.045 | 73% | ||||||
Transit Courier | 4.774 | 3.266 | 46% | ||||||
Transit Connect | 144 | 88 | 64% | ||||||
Light Commercial Vehicle | 4.918 | 3.354 | 47% | ||||||
Transit | 4.650 | 3.130 | 49% | ||||||
Transit Custom | 1.158 | 1.236 | -6% | ||||||
Ranger | 95 | 236 | -60% | ||||||
Medium Commercial Vehicle | 5.903 | 4.602 | 28% | ||||||
Truck | 609 | 440 | 38% | ||||||
Total Domestic | 10.441 | 19.162 | -46% | ||||||
Export Sales | 66.540 | 89.193 | -25% | ||||||
Transit Custom | 37.456 | 46.392 | -19% | ||||||
Transit | 21.515 | 32.521 | -34% | ||||||
Transit Courier | 7.175 | 9.715 | -26% | ||||||
Truck | 393 | 543 | -28% | ||||||
Other | 1 | 22 | -95% | ||||||
Total Exports | 89.193 | 83.068 | |||||||
Total Wholesale Volume | 81.508 | 99.634 | -18% | ||||||
Total Domestic Automotive Industry | 127.137 | 90.068 | 41% | ||||||
Ford Otosan Retail Sales | 13.625 | 10.466 | 30% | ||||||
Ford Otosan Market Share | 10,7% | 11,6% | -0.9 pps | ||||||
Summary Balance Sheet, Million TL | 31.03.2020 | 31.12.2019 | % Change | ||||||
Current Assets | 10.353 | 10.157 | 2% | ||||||
Current Liabilities | 9.151 | 8.645 | 6% | ||||||
Property, Plant and Equipment - Net | 4.386 | 4.437 | -1% | ||||||
Total Assets | 16.599 | 16.406 | 1% | ||||||
Total Liabilities | 12.582 | 11.741 | 7% | ||||||
Shareholders' Equity | 4.017 | 4.665 | -14% |
1Q20 Earnings Announcement
Financial Ratios | 31.03.2020 | 31.12.2019 | ||||
Current Ratio (Current Ass./Current Liab) | 1,13 | 1,17 | ||||
Liquidity Ratio ((Cur. Ass. - Stock)/Cur. Liab.) | 0,80 | 0,87 | ||||
Net Debt / Tangible Equity | 1,27 | 0,78 | ||||
Net Debt / EBITDA | 1,18 | 0,94 | ||||
Current Assets / Total Assets | 0,62 | 0,62 | ||||
Current Liabilities / Total Liabilities | 0,73 | 0,74 | ||||
Total Liabilities / Total Liabilities and Equity | 0,76 | 0,72 | ||||
Return on Equity (Net Profit/Av. Shareh. Equity) | 62,7% | 42,0% | ||||
31.03.2020 | 31.03.2019 | |||||
Gross Margin | 11,4% | 10,2% | ||||
EBITDA Margin | 10,8% | 8,4% | ||||
EBITDA Margin excluding other income/expense | 9,6% | 8,4% | ||||
Operating Margin | 8,5% | 6,5% | ||||
Net Income Margin | 6,7% | 5,1% | ||||
Summary Cash Flow Statement, Million TL | 31.03.2020 | 31.03.2019 | % Change | |||
Beginning Balance of Cash & Equivalents | 3.200 | 1.391 | 130% | |||
Net Cash Generated from Operating Activities | 702 | 437 | 61% | |||
Net Cash Used in Investing Activities | -153 | -260 | -41% | |||
Net Cash Used in Financing Activities | -78 | 533 | -115% | |||
End of Period Balance of Cash & Equivalents | 3.672 | 2.101 | 75% | |||
2020 Guidance* | Contacts | |||||
Total Industry Volume | 520 K - 570 K | Oğuz Toprakoğlu | ||||
Chief Financial Officer | ||||||
Ford Otosan: | ||||||
Retail Sales Volume | 55 K - 65 K | otoprako@ford.com.tr | ||||
Export Volume | 225 K - 235 K | |||||
Wholesale Volume | 280 K - 300 K | Aslı Selçuk | ||||
Production Volume | 270 K - 280 K | Investor Relations Manager | ||||
Capex (fixed assets) | €130 -150 million | |||||
aselcuk@ford.com.tr | ||||||
- Guidance is based on the assumption that the impact of Covid-19 on production, domestic sales and exports will start to fade gradually in June and economic activity will normalize as of August.
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Disclaimer
Ford Otomotiv Sanayi AS published this content on 04 May 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2020 16:03:11 UTC