Profitable growth with robust earnings quality
Following a successful first quarter, Sabancı Group posted faster growth across all key business units in the second quarter of 2022. This stronger performance in Q2 brought combined revenue* growth to 165% y/y in the first half owing to successful revenue growth management, and more than tripling EBITDA* driven by effective cost management amid high inflationary pressures. Consolidated net income* and ROE* reached TL13.6 billion and 33.6%, respectively, with larger contribution from the banking business. Balance sheet remained healthy as net debt to EBITDA* dropped to 1.3 times accompanied by a strong holding only net cash position standing at TL5.5 billion.
Delivering on Our Strategic Initiatives
Despite local and global challenges, Sabancı Group remained on course in achieving its strategic objectives and continued to invest in its core businesses as well as in new economy initiatives in the second quarter. There were capacity increases in building materials and tire reinforcement businesses, followed by new investments in start-ups that can provide value add to Sabancı ecosystem. On the other hand, the Group successfully completed the acquisitions of two digital companies in cyber security and digital marketing at USD45.3 million with an ambition to create a new global digital business vertical. Moreover, acquisition of European Microtex Composites, an important supplier in the automotive and motorsport industries, with a total value of EUR24.6 million enabled the tire reinforcement business to further diversify its product range and geographical exposure.
With a commitment of Net Zero Emission by 2050, the Group's continued efforts are recognized globally as Refinitiv, the solution partner of Borsa Istanbul Sustainability Index, placed the Sabancı Holding at the top of 60 global investment holding companies assessed by the rating agency.
Sabancı Holding CEO Cenk Alper said:
"I am very happy to report another successful quarter with robust financial performance, despite significant global macro volatilities, evidencing our focus on operational excellence at times of uncertainty. Moreover, we furthered our initiatives in transforming our portfolio with new economy investments in the quarter. In particular, we finalized important investments in digital technologies, an indispensable element of our new economy-oriented growth strategies. Following our investment in Radiflow, one of the world's leading startups in cyber security especially in the field of operational technologies, we also acquired SEM, a data-driven digital
marketing business. Likewise, we contributed to the development of the startup ecosystem, while pioneering the transformation of innovative ideas and practices into global value as evidenced by our investments in Bulutistan, Zack.ai and Albert Health. Among other things, we finalized the acquisition of Microtex that will further diversify our geographical and industry footprint in composites. Finally, our balance sheet remains healthy and our liquidity ample, important factors to take us through these testing times and capitalize on growth opportunities."
- a share sale and purchase agreement has been signed with regard to the acquisition of 100% of the shares in Radiflow Ltd., a global cyber security company operating in the Middle East, USA, European and Asian markets. 51% of the shares in Radiflow was acquired in consideration for a total of USD30.5 million.
SABANCI HOLDING COMBINED SEGMENT RESULTS
NET INCOME -excluding one offs
SABANCI HOLDING CONSOLIDATED SEGMENT RESULTS
SABANCI HOLDİNG CONSOLIDATED RESULTS
NET INCOME -excluding one offs
*Combined revenue excludes holding dividend income. Combined EBITDA and consolidated net income excludes non-operational and nonrecurring one off items & IFRS16 impact in retail. Operational cash flow and net debt figures exclude banking, financial services and other segment.Consolidated ROE excludes non-operational and non-recurring oneoff items.
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Haci Ömer Sabanci Holding AS published this content on 11 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 11 August 2022 16:56:05 UTC.