4Q22 Financial Results
January 25, 2023
4Q22
HIGHLIGHTS
TRY39.2bn
Revenue
9.1%
EBITDA Margin
22.2%
OPEX / Sales
21.0%
NWC / Sales
2.26x
Leverage
Solid revenue growth momentum on track as further eased material costs contributed margin expansion..
Robust revenue growth of 74% y/y driven by price increases, higher units sold in Turkey and TRY depreciation. Organically, annual growth was 67%. On a quarterly basis, the revenue growth was 14% while organic growth were stood at 11%.
Sell-out and sell-in were positive in Turkey mainly thanks to pull forward demand, while contraction in consumer demand continued in both West & East Europe.
Eased costs, price increases and further improved OPEX/Sales ratio resulted in 42 bps q/q EBITDA margin expansion.
Net Working Capital/Sales was 21.0% thanks to decreasing inventories and strong collection.
Leverage was 2.26x, down by 0.42x compared to 3Q22 thanks to strong cash generation in the quarter.
A new business partnership with Whirlpool in Europe and acquisition of Whirlpool's MENA subsidiaries has been announced.
2
Overview of recent corporate actions; | 4Q22 | Financial Results |
Beko Europe & acquisition of Whirlpool's MENA subsidiaries | ||
75%* | The NEWCO | 25%* |
Stake | 'Beko Europe' | Stake |
• | A new company (NEWCO) named 'Beko Europe' has been established. |
• 24 million annual production capacity in total for European business. | |
• | Arçelik will have the control of the NEWCO and fully consolidate. |
25 European Subsidiaries / Country Offices
~ 6,000 Employees
2 Factories in Romania
Brands to be owned by the NEWCO;
Grundig, Arctic, Elektrabregenz, Flavel and Leisure
Brands to be licensed to the NEWCO; Beko, Altus, Blomberg
38 European Subsidiaries / Country Offices
~ 14,400 Employees
14 Factories in Italy, Poland, Slovakia and
The UK
Brands to be owned by the NEWCO;
Hotpoint, Indesit, Bauknecht, Privileg and Ignis
Brands to be licensed to the NEWCO; Whirlpool
• Around EUR6bn and EUR4.3bn combined revenues as of FY21 and 9M22, |
respectively. |
• Over EUR200mn cost synergies expected from footprint optimization, |
procurement and logistics. |
• Apart from the NEWCO for European business, Arçelik will acquire |
Whirlpool's MENA subsidiaries at an EV amount of EUR20mn subject to |
net working capital and net debt adjustment at closing date. |
• Around EUR182mn revenue of Whirlpool's MENA subsidiaries, as of FY21. |
• Conditions: Subject to approval from regulatory authorities |
• Expected closing: Second half of 2023. |
*The final ownership ratio will be determined by taking into account the EBITDA and net fixed asset value in the FY22 | 3 |
financials and based on net debt and net working capital after the closing financial statements are prepared. |
Key Factors Sales / Margins | 4Q22 | Financial Results |
REVENUE GROWTH
74%*
Price increases on both quarterly & yearly basis
Significant TRY depreciation on a yearly basis Increased unit sales in Turkey on a yearly basis
39,192 | ||
34,255 | ||
22,519 | ||
TRYmn | ||
4Q21 | 3Q22 | 4Q22 |
GROSS MARGIN
29.0%
Eased raw material costs
Appreciated EUR against USD
Lower capacity utilisation on both quarterly & yearly basis
28.8% 28.8% 29.0%
4Q21 3Q22 4Q22
EBITDA MARGIN
9.1%
Lower OPEX/Sales on a quarterly basis thanks to lower marketing and logistics expenses
9.4% | 8.7% | 9.1% |
4Q21 3Q22 4Q22
*Includes inorganic revenue contribution of Indesit International JSC and Whirlpool RUS LLC acquisition. Organically, annual and quarterly revenue growth was 67% and 11% in 4Q22, respectively.
4
Operational Performance
4Q22 Financial Results
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Arcelik AS published this content on 25 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 January 2023 17:20:16 UTC.