2023FY Earnings Announcement
Highlights
Volumes (units) | 2023 | 2022 | YoY Δ | 4Q23 | 4Q22 | YoY Δ |
Total Wholesale | 609,664 | 475,721 | 28% | 153,617 | 150,455 | 2% |
Export | 492,082 | 390,811 | 26% | 125,851 | 119,813 | 5% |
Domestic | 117,582 | 84,910 | 38% | 27,766 | 30,642 | -9% |
Domestic Retail | 114,039 | 86,401 | 32% | 28,016 | 32,081 | -13% |
Market Share | 8.9% | 10.5% | -1.6 pps | 9.0% | 11.6% | -2.6 pps |
Production (units) (1) | 589,758 | 465,855 | 27% | 145,254 | 141,532 | 3% |
Capacity Utilization Rate | 81% | 79% | +2 pps | 78% | 78% | 0 pps |
- Current generation Courier production ended in July 2023 in Yeniköy Plant and new generaton Courier production started in 4Q23 in Craiova Plant. Additionally, current generation Custom production ended in 3Q23 in Gölcük Plant and new generation Custom production started in 4Q23 in Yeniköy Plant.
Summary Income Statement, Million TL | 2023 | 2022 | YoY Δ |
Revenues (2) | 411,906 | 322,556 | 28% |
Export | 301,628 | 251,011 | 20% |
Domestic | 110,278 | 71,545 | 54% |
Gross Profit | 55,248 | 36,599 | 51% |
Operating Profit | 44,017 | 27,271 | 61% |
Net Financial Expense | -14,947 | -8,102 | 84% |
Profit Before Tax | 47,428 | 25,447 | 86% |
Net Profit (2) | 49,056 | 27,730 | 77% |
Other Financial Data | |||
Depreciation and Amortization | 6,713 | 7,359 | -9% |
EBITDA (3) | 50,730 | 34,630 | 46% |
EBITDA excluding other income/expense | 43,359 | 32,145 | 35% |
Capital Expenditures | -32,897 | -21,043 | 56% |
- In 2023, Ford Otosan Romania SRL solo financials include TL 84,610,971 thousand Total Revenues, TL 1,412,012 thousand EBITDA and TL (566,707) thousand Net Loss (mainly stemming from 1) tax penalty accrual which is offset in consolidated financials and 2) lower than expected new Courier sales in 4Q.)
- Straightline expenses related with embedded lease is adjusted in EBITDA.
In 2023, total CUR was 81%, reaching 88%, 93%, 98% and 75% in the Gölcük, Yeniköy, Eskişehir and Craiova Plants respectively.
Margins
2023
2022
YoY Δ, pps
Gross Margin
EBITDA Margin
EBITDA Margin (excluding other income) Operating Margin
Net Margin
13.4%
12.3%
10.5%
10.7%
11.9%
11.3%
10.7%
10.0%
8.5%
8.6%
+2.1 pps
+1.6 pps
+0.5 pps
+2.2 pps
+3.3 pps
Per Vehicle (EUR)
EBITDA
PBT
2023 | 2022 | YoY Δ |
2,183 | ||
2,057 | 6% | |
2,388 | 1,628 | 47% |
2022 and 2023 financial results published in this earnings announcement have been prepared according to the Turkish Financial Reporting Standards (TFRS) and IAS 29 "Financial Reporting in Hyperinflationary Economies", upon announcement and publication of "Implementation Guide on Financial Reporting in Hyperinflationary Economies" by Public Oversight Authority (KGK).
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Revenues
Turkish automotive market has had a strong performance in 2023 with 56% YoY growth and reached to a historical high level of 1,277,849 units. The main drivers of this performance were improvements in vehicle availability and purchasing vehicles seen as an investment instrument in an inflationary environment. In 2023, sales increased in all segments (YoY: PC 63%, LCV 33%, MCV 50% and Heavy Trucks 19%) and PC industry share increased to 75.7% (2022: 72.1%) while LCV&MCV industry share decreased to 20.8% (2022: 23.2%) in 2023. Ford Otosan remained as the market leader in CV segment with a 27.3% 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 were 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 sustained its 3rd position in the total industry with 8.9% market share (2022: 10.5%).
In 2023, the European van market experienced a 15.7% YoY growth, which was primarily driven by the easiness in supply chain, increase in fleet renewals, and low base impact. In the meantime, European passenger car market went up by 15.3% YoY. In this context, Ford remained as the No.1 CV 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 as 70% of Ford's CV sales are produced by Ford Otosan. Additionally, as Ford Otosan took up on the production responsibility of Puma, Ford's best-selling car in Europe, Ford Otosan solidified its position as the main supporter of Ford's performance in Europe by producing 33% of Ford's PC sales.
Domestic Revenues rose by 54% YoY and realized as TL 110,278 million in 2023. 38% YoY increase in sales volumes and ongoing pricing discipline were the main drivers of this performance. Export Revenues reached to TL 301,628 million, up 20% YoY in this period due to 26% YoY volume growth primarily supported by the volumes from Craiova Plant and exchange impact (average EUR/TRY up 48% YoY). Total Revenues increased by 28% YoY to TL 411,906 million and volumes were up 28% YoY. Share of exports in total revenues was 73% in 2023 (2022: 78%).
Profitability
In 2023, Ford Otosan continued to deliver solid financial results. The profitability remained strong as a result of i) robust domestic performance, ii) ongoing pricing discipline, iii) cost reduction measures and OpEx control, iv) exchange impact (average EUR/TRY up 48% in 2023 YoY).
Gross Profit rose by 51% YoY to TL 55,248 million supported by increasing share of domestic revenues in total revenues and strong YoY growth in domestic volumes, ongoing cost reduction actions and pricing discipline. In this period, Net Other Income increased by 197% YoY to TL 7,371 million in 2023, due to the 162% YoY increase in Net FX Gain from Operating Activities (resulting from the currency impact). As a result, Operating Profit went up 61% YoY in 2023 to TL 44,017 million. In 2023, straightline expenses related with embedded lease is adjusted in EBITDA which grew by 46% YoY to TL 50,730 million while EBITDA excluding the currency impact was up 35% YoY to TL 43,359 million. EBITDA per vehicle and PBT per vehicle were EUR 2,183 and EUR 2,388 in 2023 respectively.
Net Financial Expenses reached to TL 14,947 million in 2023. The main reasons behind 84% YoY increase in Net Financial Expenses: i) %228 YoY increase in Net Interest Expenses realized as TL 2,364 million, ii) Net FX Loss went up 58% YoY and reached to TL 12,149 million. In this period, Profit Before Tax realized as TL 47,428 million, up by 86% YoY and was mainly supported by the TL 15,559 million monetary gain in 2023 (TL 6,308 million in 2022) due to high monetary liability position. Net Profit was TL 49,056 million, up 77% YoY and impacted by «Tax Income Resulting from Deferred Tax Asset in 2023» on Net Income which was partially offset by «additional tax related to earthquake».
Margins: Gross 13.4% (+2.1 pps YoY); EBITDA 12.3% (+1.6 pps YoY); EBITDA excluding other income 10.5% (+0.5 pps YoY); Operating 10.7% (+2.2pps YoY) and Net 11.9% (+3.3 pps YoY).
Balance Sheet and Cash Flow
Summary Balance Sheet, Million TL | 12/31/2023 | 12/31/2022 | YoY Δ |
Current Assets | 102,969 | 91,321 | 13% |
Current Liabilities | 94,134 | 76,203 | 24% |
Property, Plant and Equipment - Net | 57,197 | 47,915 | 19% |
Total Assets | 217,007 | 174,307 | 24% |
Total Liabilities | 143,999 | 123,165 | 17% |
Shareholders' Equity | 73,008 | 51,142 | 43% |
Financial Ratios | 12/31/2023 | 12/31/2022 |
Current Ratio | 1.09 | 1.20 |
Liquidity Ratio | 0.68 | 0.81 |
Net Debt / EBITDA | 1.19 | 1.32 |
Current Assets / Total Assets | 0.47 | 0.52 |
Current Liabilities / Total Liabilities | 0.65 | 0.62 |
Total Liabilities/Total Liabilities & Equity | 0.66 | 0.71 |
Return on Equity | 67.2% | 54.2% |
Summary Cash Flow Statement, Million TL | 12/31/2023 | 12/31/2022 | YoY Δ |
Beginning Balance of Cash & Equivalents | 16,658 | 38,182 | -56% |
Net Cash from Operating Activities | 50,573 | 34,249 | 48% |
Net Cash Used in Investing Activities | -32,072 | -34,199 | -6% |
Net Cash Used in Financing Activities | -8,571 | -6,343 | 35% |
Monetary Gain/(Loss) on Cash&Equivalents | -11,895 | -15,272 | -22% |
End of Period Balance of Cash&Equivalents | 15,194 | 16,658 | -9% |
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Sales Performance
Ranking #3 in the total industry in 2023 with 8.9% share, maintained leadership in total CV with 27.3% share.
Sales Volume by Model, units | 2023 | 2022 | YoY Δ | 4Q23 | 4Q22 | YoY Δ |
Domestic Sales | 117,582 | 84,910 | 38% | 27,766 | 30,642 | -9% |
Puma | 6,760 | 1,583 | 327% | 2,855 | 528 | 441% |
Other | 25,256 | 6,622 | 281% | 6,723 | 1,925 | 249% |
Passenger Car | 32,016 | 8,205 | 290% | 9,578 | 2,453 | 290% |
Courier | 36,502 | 39,403 | -7% | 114 | 15,132 | -99% |
Connect | 561 | 372 | 51% | 123 | 131 | -6% |
Light Commercial Vehicle | 37,063 | 39,775 | -7% | 237 | 15,263 | -98% |
Transit | 29,034 | 21,395 | 36% | 12,106 | 7,432 | 63% |
Custom | 5,902 | 5,354 | 10% | 1,468 | 1,646 | -11% |
Ranger | 1,744 | 956 | 82% | 915 | 432 | 112% |
Medium Commercial Vehicle | 36,680 | 27,705 | 32% | 14,489 | 9,510 | 52% |
Truck | 11,699 | 8,957 | 31% | 3,476 | 3,394 | 2% |
Rakun(4) | 124 | 268 | -54% | 0 | 22 | N/M |
Export Sales | 492,082 | 390,811 | 26% | 125,851 | 119,813 | 5% |
Custom | 139,353 | 149,319 | -7% | 38,209 | 37,969 | 1% |
Transit | 148,445 | 116,068 | 28% | 42,742 | 30,032 | 42% |
Courier | 19,884 | 24,476 | -19% | 2,793 | 6,641 | -58% |
Truck | 7,384 | 7,585 | -3% | 1,938 | 1,991 | -3% |
Puma | 176,890 | 74,241 | 138% | 40,169 | 34,838 | 15% |
Other | 126 | 19,122 | N/M | 0 | 8,342 | N/M |
Total Wholesale Volume
609,664
475,721
28%
153,617
150,455
2%
- Rakun production ended in 3Q23
Total Turkish Automotive Industry Sales
Ford Otosan Retail Sales
Ford Otosan Market Share
1,277,849
114,039
8.9%
821,664
86,401
10.5%
56%
32%
-1.6 pps
310,282
28,016
9.0%
276,235
32,081
11.6%
12% -13%
-2.6 pps
2024 Guidance
2023A | 2024 Guidance | ||
Total Industry Volume | 1,278 K | 800K - 900K | |
Ford Otosan: | |||
Retail Sales Volume | 114 K | 100K - 110K | |
Export Volume | 492 K | 560K - 610K | |
Turkey | 312K | 350K - 380K | |
Romania | 180K | 210K - 230K | |
Wholesale Volume | 610 K | 660K -720K | |
Total Production Volume | 590 K | 650K - 700K | |
Turkey | 399 K | 400K - 430K | |
Romania | 191 K | 250K - 270K | |
Capex (fixed assets) | € 900 mn | € 900 - 1,000 mn | |
General Investments | € 96 mn | € 170 - 190 mn | |
Product Related Investments | € 804 mn | € 730 - 810 mn |
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 05 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 March 2024 17:33:13 UTC.