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Kardemir posted a profit of 641 million TL in the first quarter

Kardemir announced its financial results for the first quarter of the year. According to the announcements, the company achieved a net profit of 641 million TL, despite market expectations of 575 million TL expected to be reached in the first quarter of the year.

Kardemir posted a profit of 641 million TL in the first quarter

Kardemir's net profit in the first quarter of 2023 decreased by 45 percent compared to the same period last year. The company left the 1st quarter of 2022 with a net profit of 1.17 billion TL, and the net profit for the whole year of 2022 was 2.174 billion TL.

The company's earnings before interest, tax, depreciation and amortisation (EBITDA) in the first quarter was 1.08 billion TL, in line with the market expectation of 1.05 billion TL. In the first quarter of last year, Kardemir's EBITDA was 1.53 billion TL. EBITDA margin, which was 25 percent in the first quarter of 2022, declined to 12 percent in this quarter.

Kardemir's first quarter turnover was realised at 8.85 billion TL, above the expectation of 8.42 billion TL, while turnover increased by 47 percent on an annual basis.

Kardemir's production on a tonne basis was 537 thousand tonnes in the first quarter of last year, while production was 586 thousand tonnes in this quarter. Total production was 2,140 thousand tonnes in 2022. The company's liquid steel production, which was 548 thousand tonnes in the first quarter of last year, increased to 630 thousand tonnes in the first quarter of this year.

Net sales of main products increased from 535 thousand tonnes to 611 thousand tonnes in the same period. Looking at the distribution of total sales on product basis, billet iron sales ranked first with 218 thousand tonnes and ribbed rebar sales ranked second with 145 thousand tonnes.

Although the average product prices of billet iron decreased compared to last year, it was also observed that they started to increase in the first quarter of this year. The unit sales price of billet iron, which was $703/tonne in the same quarter of last year, increased to $791/tonne in the second quarter of 2022 and then decreased to $605/tonne in the last quarter. In the first quarter of this year, the average billet iron tonne price was $645.

Closing the year 2022 with a net debt of $ 32 million, it was also seen that the company reached a net cash figure of $ 149 million in the first 3 months of this year. Kardemir, which made a total investment expenditure of 62 million dollars in 2022, made a total investment expenditure of 16 million dollars in the first quarter of this year.

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