While consolidated net sales totaled $1.26 billion* from January to June 2020, international sales—comprising the total of exports made from Turkey and sales from overseas production—accounted for 60% of consolidated sales during this six-month period. Şişecam Group produced 2.3 million tons of glass, 1.1 million tons of soda and 2 million tons of industrial raw material in the first half of 2020.
“With consolidated net sales totaling $1.26 billion in the first half of the year, Şişecam Group continued to contribute to the economies of the countries where it operates. Our sales, after contracting globally in April due to the impact of the pandemic, started to rise in May thanks to our rapid decision-making and effective managerial actions. Since June especially, our sales performance has demonstrated a strong comeback with the easing of quarantine measures and steps taken towards normalization, primarily in Turkey and also in many of the regions where we operate,” said Ahmet Kırman, vice chairperson and CEO in a statement.
He emphasized that Şişecam Group obtained results in line with its expectations and targets in the first quarter of the year while the impacts of the pandemic started to be registered during second quarter.
“…Our flat glass business line, which provides input for flagship sectors, such as automotive, home appliances and construction, and our glassware line, which is directly affected by the tourism sector and household consumption, have contracted significantly in terms of demand. However, we saw some dynamism in demand subsequent to steps taken toward normalization in May. In June, domestic demand started to rebound due to increasing normalization,” said Kırman. “Exports have also picked up thanks to easing of quarantine measures in international markets and re-opening of national borders. June has signaled a very positive outlook for the rest of the year. Our performance caused us to revise upward our forecasts on a year-on-year basis with regards to the entire year. As always, we will closely follow emerging developments and modify our business processes and plans in the future as conditions dictate. At this point, uncertainty surrounds the exact impact of the global pandemic.”
The group’s EBITDA margin, which was 32% in the first quarter of the year, came in at 27% for the first half of the year.
“We rapidly implemented cost saving measures from the very start of the global pandemic. Şişecam Group is required to conduct uninterrupted production in its current business lines, which depend on melting technologies, compared to other industrial business lines. As a result, we rapidly updated our production plans and business processes given emerging developments in industries that we provide input,” says Kırman. “Our consolidated EBITDA amounted to $330 million in the first half of the year thanks to our optimization efforts and the actions we implemented. During this six-month period, we repaid $300 million in Eurobonds, which had become due, and distributed dividend payments amounting to some $67.5 million thanks to our strong liquidity position. Our sound financial structure also enabled us to continue investments necessary for our operations. In the first half of the year, Şişecam Group recorded investments totaling $89.7 million.”
*The currency in the financial statement was converted from Turkish liras to U.S. dollars on August 4, 2020.