9M23 Earnings Announcement
Highlights
Financial Results (mn TL)
9M23
YoY Δ
3Q23
YoY Δ
Revenues
Export Revenues (1)
Domestic Revenues
Operating Profit
EBITDA
EBITDA excluding other income/expense Profit Before Tax
Net Income
225,961
163,637
62,323
29,061
31,145
26,416
23,521
25,094
104%
86%
172%
155%
146%
121%
154%
143%
86,106
61,219
24,887
11,696
12,485
11,253
11,059
13,014
72%
52%
149%
175%
154%
132%
206%
241%
- Export revenues and volumes include exports from Ford Otosan and Ford Otosan Romania SRL
Volumes (units) | 9M23 | YoY Δ | 3Q23 | YoY Δ |
Total Wholesale | 456,047 | 40% | 143,254 | 2% |
Export | 366,231 | 35% | 112,894 | -6% |
Domestic | 89,816 | 66% | 30,360 | 52% |
Domestic Retail | 86,023 | 58% | 29,566 | 58% |
Market Share | 9.7% | -0.3 pps | 9.5% | -1.3 pps |
Production (units) (2) | 444,504 | 37% | 134,390 | 1% |
Capacity Utilization Rate | 90% | +11 pps | 81% | +7 pps |
- 141,330 units Puma production volumes are included in 9M23. Current generation Courier production ended in July 2023 in Yeniköy
Plant
In 9M23, total CUR was 90%, reaching 81%, 104% and 100% in the Gölcük, Eskişehir and Craiova Plants respectively.
Summary Income Statement, Million TL | 9M23 | 9M22 | YoY Δ | 3Q23 | 3Q22 | YoY Δ |
Revenues (3) | 225,961 | 110,857 | 104% | 86,106 | 50,127 | 72% |
Export | 163,637 | 87,962 | 86% | 61,219 | 40,144 | 52% |
Domestic | 62,323 | 22,895 | 172% | 24,887 | 9,984 | 149% |
Gross Profit | 34,642 | 14,560 | 138% | 14,697 | 5,687 | 158% |
Operating Profit | 29,061 | 11,416 | 155% | 11,696 | 4,247 | 175% |
Net Financial Income/(Expense) | -5,475 | -2,136 | 156% | -573 | -635 | -10% |
Profit Before Tax | 23,521 | 9,271 | 154% | 11,059 | 3,615 | 206% |
Net Profit (3) | 25,094 | 10,322 | 143% | 13,014 | 3,816 | 241% |
Other Financial Data | ||||||
Depreciation and Amortization | 2,085 | 1,251 | 67% | 789 | 667 | 18% |
EBITDA | 31,145 | 12,667 | 146% | 12,485 | 4,914 | 154% |
EBITDA excluding other income/expense | 26,416 | 11,973 | 121% | 11,253 | 4,853 | 132% |
Capital Expenditures | -15,843 | -8,126 | 95% | -7,561 | -2,781 | 172% |
- In 9M23, Ford Romania SRL contributed TL 49,230,871 thousand to Total Revenues and TL 12,959 thousand to Net Profit
9M23 financial results published in this earnings announcement have been prepared according to the Turkish Financial Reporting Standards (TFRS).
Herkese Açık-Public
Revenues
Turkish automotive market has had a strong performance in 9M23. The market grew by 63% and reached to 889,956 units. Improvements in vehicle availability and purchasing vehicles seen as an investment instrument in an inflationary environment have been effective in this sales pick up. In 9M23, sales increased in all segments (YoY: PC 67%, LCV 62%, MCV 50% and Heavy Trucks 30%) and PC industry share increased to 74.9% (9M22: 73.2%) while LCV&MCV industry share decreased to 21.4% (9M22: 22.2%) in 9M23. Ford Otosan continued to maintain its CV leadership with a 29.7% market share, despite 1) the extended ramp-up period for the Courier and Custom models (the production of the current-gen Courier ended in July, and the new-gen Courier and Custom models will be available in the market in the 4th quarter), and 2) the supply chain challenges at the beginning of the year. As a result, Ford Otosan continued to be #3 in the total industry with 9.7% market share (9M22: 10.0%).
The UK van market grew by 20.8% YoY in 9M23 mainly due to the easiness in supply chain, growing fleet renewal and low base impact. Ford continued to be No.1 brand with our Custom and Transit models. As the largest commercial vehicle manufacturer of Ford in Europe, Ford Otosan has continued to support Ford's market position and profitability in the market. Besides, European passenger car market went up 17.4% YoY in this period and Ford Otosan has contributed to Ford's performance in PC segment with Puma, Ford's best selling car in Europe.
Domestic Revenues increased by 172% YoY and realized as TL 62,323 million in 9M23. 66% YoY increase in sales volumes and ongoing pricing discipline were the main drivers of this performance. Export Revenues reached to TL 163,637 million, up 86% YoY in this period due to 35% YoY volume growth primarily supported by the volumes from Craiova Plant and exchange impact (average EUR/TRY up 42% YoY). Total Revenues increased by 104% YoY to TL 225,961 million and volumes were up 40% YoY. Share of exports in total revenues was 72% in 9M23 (9M22: 79%).
Profitability
Ford Otosan has continued to achieve successful financial results in 9M23. The profitability remained strong as a result of i) strong domestic performance and increasing domestic share in total sales, ii) solid export volumes supported by Romania Plant's units, iii) ongoing pricing discipline, iv) cost reduction measures and OpEx control, v) exchange impact (average EUR/TRY up 42% in 9M23 YoY).
Gross Profit rose 138% YoY to TL 34,642 million supported by increasing share of domestic sales in total sales and strong YoY growth in domestic volumes, ongoing cost reduction actions and pricing discipline. Net Other Income grew by 581% YoY to TL 4,729 million in 9M23, driven by the 443% YoY increase in Net FX Gain from Operating Activities (resulting from the currency impact). In this period, increase in Net Financial Expenses (in other operating income/expenses) slowed down and rose by 32% in 9M23 due to the 98% contraction in 3Q. As a result, Operating Profit increased 155% YoY in 9M23 to TL 29,061 million. EBITDA grew 146% YoY to TL 31,145 million while EBITDA excluding the currency impact was up 121% YoY to TL 26,416 million. EBITDA per vehicle and PBT per vehicle were EUR 2,413 and EUR 2,149 in 9M23 respectively.
Net Financial Expenses reached to TL 5,475 million in 9M23 (in 9M22: TL 2,136 million). The main reasons behind 156% YoY increase in Net Financial Expenses: i) Despite 1.7 million Net Interest Income in 3Q, Net Interest Expenses realized as TL 745 million in 9M23 and ii) Net FX Loss went up 125% YoY and reached to TL 5,180 million (balanced with export business related part of Net FX Gain from Operating Activities as part of our cash flow hedge mechanism). As a result, Profit Before Tax increased 154% YoY to TL 23,521 million. Net Profit was TL 25,094 million, up 143% YoY and higher than PBT due to Tax Income Resulting from Deferred Tax Asset.
Margins: Gross 15.3% (+2.2 pps YoY); EBITDA 13.8% (+2.4 pps YoY); EBITDA excluding other income 11.7% (+0.9 pps YoY); Operating 12.9% (+2.6 pps YoY); and Net 11.1% (+1.8 pps YoY).
Margins
9M23
9M22
YoY Δ, pps | 3Q23 |
3Q22
YoY Δ, pps
Gross Margin
EBITDA Margin
EBITDA Margin (excluding other income) Operating Margin
Net Margin
15.3%
13.8%
11.7%
12.9%
11.1%
13.1%
11.4%
10.8%
10.3%
9.3%
2.2
2.4
0.9
2.6
1.8
17.1%
14.5%
13.1%
13.6%
15.1%
11.3%
9.8%
9.7%
8.5%
7.6%
5.8
4.7
3.4
5.1
7.5
Per Vehicle (EUR) | 9M23 | 9M22 | 9M21 | 3Q23 | 3Q22 | 3Q21 |
EBITDA | 2,413 | 2,184 | 1,997 | 2,690 | 1,917 | 2,026 |
PBT | 2,149 | 1,691 | 1,836 | 2,644 | 1,428 | 1,893 |
Herkese Açık-Public
Sales Performance
Ranking #3 in the total industry in 9M23 with 9.7% share, maintained leadership in total CV with 29.7% share.
Sales Volume by Model, units | 9M23 | 9M22 | YoY Δ | 3Q23 | 3Q22 | YoY Δ |
Domestic Sales | 89,816 | 54,268 | 66% | 30,360 | 19,945 | 52% |
Puma | 3,905 | 1,055 | 270% | 1,897 | 345 | 450% |
Other | 18,533 | 4,697 | 295% | 5,999 | 1,678 | 258% |
Passenger Car | 22,438 | 5,752 | 290% | 7,896 | 2,023 | 290% |
Courier | 36,388 | 24,271 | 50% | 11,300 | 8,859 | 28% |
Connect | 438 | 241 | 82% | 184 | 24 | 667% |
Light Commercial Vehicle | 36,826 | 24,512 | 50% | 11,484 | 8,883 | 29% |
Transit | 16,928 | 13,963 | 21% | 6,674 | 5,096 | 31% |
Custom | 4,434 | 3,708 | 20% | 1,240 | 1,312 | -5% |
Ranger | 829 | 524 | 58% | 614 | 223 | 175% |
Medium Commercial Vehicle | 22,191 | 18,195 | 22% | 8,528 | 6,631 | 29% |
Truck | 8,223 | 5,563 | 48% | 2,452 | 2,302 | 7% |
Rakun(4) | 138 | 246 | -44% | 0 | 106 | N/M |
Export Sales | 366,231 | 270,998 | 35% | 112,894 | 120,022 | -6% |
Custom | 101,144 | 111,350 | -9% | 30,328 | 35,963 | -16% |
Transit | 105,703 | 86,036 | 23% | 34,118 | 27,014 | 26% |
Courier | 17,091 | 17,835 | -4% | 2,994 | 4,669 | -36% |
Truck | 5,446 | 5,594 | -3% | 1,926 | 2,199 | -12% |
Puma | 136,721 | 39,403 | 247% | 43,437 | 39,403 | 10% |
Other | 126 | 10,780 | N/M | 91 | 10,774 | N/M |
Total Wholesale Volume | 456,047 | 325,266 | 40% | 143,254 | 139,967 | 2% |
(4) Rakun production ended in 3Q23 | ||||||
Total Turkish Automotive Industry Sales | 889,956 | 545,652 | 63% | 310,282 | 172,803 | 80% |
Ford Otosan Retail Sales | 86,023 | 54,320 | 58% | 29,566 | 18,660 | 58% |
Ford Otosan Market Share | 9.7% | 10.0% | -0.3 pps | 9.5% | 10.8% | -1.3 pps |
Balance Sheet and Cash Flow
Summary Balance Sheet, Million TL
9/30/2023
12/31/2022
YoY Δ
Current Assets
Current Liabilities
Property, Plant and Equipment - Net
Total Assets
Total Liabilities
Shareholders' Equity
96,935
77,565
32,261
163,199
122,693
40,507
55,125
46,206
20,145
96,052
74,650
21,402
76%
68%
60%
70%
64%
89%
Financial Ratios | 9/30/2023 | 12/31/2022 |
Current Ratio | 1.25 | 1.19 |
Liquidity Ratio | 0.83 | 0.81 |
Net Debt / EBITDA | 0.83 | 1.32 |
Current Assets / Total Assets | 0.59 | 0.57 |
Current Liabilities / Total Liabilities | 0.63 | 0.62 |
Total Liabilities/Total Liabilities & Equity | 0.75 | 0.78 |
Return on Equity | 82.6% | 87.0% |
Summary Cash Flow Statement, Million TL | 9/30/2023 | 9/30/2022 | YoY Δ |
Beginning Balance of Cash & Equivalents | 10,110 | 14,106 | -28% |
Net Cash from Operating Activities | 33,887 | 7,914 | 328% |
Net Cash Used in Investing Activities | -15,830 | -14,933 | 6% |
Net Cash Used in Financing Activities | 2,527 | -28 | N/M |
End of Period Balance of Cash&Equivalents | 30,468 | 7,249 | 320% |
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2023 Guidance
2022A | 1st Guidance for 2023 | 2nd Guidance for 2023 | Last Guidance for 2023 (5) | |
Total Industry Volume | 822 K | 800 K- 850 K | 1,000 K- 1,100 K | 1,100 K- 1,200 K |
Ford Otosan: | ||||
Retail Sales Volume | 85 K | 90 K- 100 K | 110 K- 120 K | 110 K- 120 K |
Export Volume | 391 K | 550 K - 570 K | 550 K - 570 K | 530 K - 550 K |
Turkey | 298 K | 355 K- 365 K | 355 K- 365 K | 335 K- 345 K |
Romania | 93 K | 195 K - 205 K | 195 K - 205 K | 195 K - 205 K |
Wholesale Volume | 476 K | 640 K - 670 K | 660 K - 690 K | 640 K - 670 K |
Total Production Volume | 466 K | 630 K - 660 K | 630 K - 660 K | 610 K - 640 K |
Turkey | 374 K | 430 K- 450 K | 430 K- 450 K | 410 K- 430 K |
Romania | 92 K | 200 K- 210 K | 200 K- 210 K | 200 K- 210 K |
Capex (fixed assets) | € 818 mn | € 1,000-1,050 mn | € 1,000-1,050 mn | € 900-950 mn |
General Investments | € 52 mn | € 90-100 mn | € 90-100 mn | € 90-100 mn |
Product Related Investments | € 766 mn | € 910-950 mn | € 910-950 mn | € 810-850 mn |
- Total industry volume guidance is updated as a result of the strong demand outlook in the domestic market for the full year.
Export and production volumes are reduced due to the longer than expected ramp-up period for the next-gen Courier and Custom models.
CAPEX guidance is slightly decreased due to the budget calendar shifts for the new projects.
Contacts
Gül Ertuğ | Bahar Efeoğlu Ağar |
Chief Financial Officer | Head of Investor Relations |
Tel: +90 262 315 69 05 | Tel: +90 216 564 7859 |
gertug@ford.com.tr | bagar@ford.com.tr |
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Disclaimer
Ford Otomotiv Sanayi AS published this content on 25 October 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2023 16:24:43 UTC.