Is Yatirim’s profitability report smiles on leather producers. But other sectors suffer
Is Yatirim analyzed profitability in Borsa Istanbul by sectors. This year, the sector whose profit increased the most profit was leather clothing. Led by Derimod, Borsa Istanbul’s leather apparel producers increased their profits by approximately 6.5 times over the first 9 months of the year and 15 times in the third quarter.
According to the sectoral profitability tables prepared by Is Yatirim, EBITDA increased exponentially in leather clothing among non-finance companies in the nine-month period of the year while agricultural chemicals increased by two times and the cable sector by 1.3 times. The media, electrical machinery and animal husbandry sectors, meanwhile, have suffered write-offs in their main activities. Total EBITDA of non-financial companies increased by 52 percent but their total net profits dropped by 16 percent. The increase in the total financial debts of industry reached 63 percent. The net profit increase in Borsa Istanbul’s banks remained at 12 percent.
Looking at Is Investment’s cumulative quarterly EBITDA analysis, non-finance companies posted TRY 95.81 billion EBIDTA for the 9 months. Announcing TRY 63.20 billion in profits last year, the industry has increased its total EBITDA by 52 percent. Net profits decreased for industrial companies, which increased their total financial debts by 63 percent, from TRY 229.11 billion to TRY 373.83 billion. In the 9 months of the year, net profit decreased to TRY 26.78 billion from TRY 31.85 billion profit compared to the same period last year. The sectors, which had TRY 26.3 billion in financial expenses last year, recorded TRY 86.5 billion financial expenses this year. Sales volumes, on the other hand, increased in the industry. The industrial companies on Borsa Istanbul broke through the TRY 500 billion barrier in sales this year. Industries, which had TRY 447.95 billion in revenues, increased this figure to TRY 581.53 billion, a 30 percent expansion this year.
When we look at the 9-month EBITDA growth rate, leather clothing ranks first, with Desa and Derimod leading the way. EBITDA growth in the leather apparel sector was 648 percent. This was followed by agricultural chemicals, including Bagfas, Hektas, Gubre Fabrikalari and Ege Gubre, with an EBITDA increase of 203 percent. The cable sector (Gersan Electricity and Prysmian Cable) ranked third with a 132 percent EBITDA increase.
The Is Yatirim analysis stated that the sharp decline in the TRY in the third quarter led to a rise in interest expenses of foreign exchange borrowing companies. “The sharp increase in currencies have had a positive effect on turnover and operating profitability of the companies that have foreign income and sell in foreign exchange. Due to raw materials and intermediate products in stocks calculated at low exchange rates and price increases, the positive effects were observed in the profit margin of the industrial companies. The balance sheet effects of the contraction in domestic demand will be seen more in the last quarter,” it said.