Net profit of 641 million TL from Kardemir in the first quarter
Kardemir announced its financial results for the first quarter of this year. In the company’s first quarter 2023 financial results; It reached a net profit of 641 million lira, above the market expectation of 575 million lira.
Kardemir’s net profit in the first quarter of 2023 decreased by 45 percent compared to the same period of the previous year. The company left behind the first quarter of 2022 with a net profit of TL 1.17 billion, and the net profit for the whole of 2022 was TL 2.174 billion.
The company’s profit before interest, depreciation and tax (EBITDA) in the first quarter stood at TL 1.08 billion, in line with the market expectation of TL 1.05 billion. Kardemir’s EBITDA in the first quarter of last year was 1.53 billion TL. The EBITDA margin, which was 25 percent in the first quarter of 2022, decreased to 12 percent in this quarter.
Kardemir’s first quarter turnover, on the other hand, was 8.85 billion TL, above the 8.42 billion TL expectation, while there was a 47 percent increase in turnover on an annual basis.
While Kardemir’s main product production on a ton basis was 537 thousand tons in the first quarter of last year, it was 586 thousand tons in this quarter. Total production was at the level of 2,140 thousand tons in the whole of 2022. The company’s liquid steel production, which was 548 thousand tons in the first quarter of last year, increased to 630 thousand tons in the first quarter of this year.
Net sales of main products increased from 535 thousand tons to 611 thousand tons in the same period. Considering the distribution of total sales by product; Billet iron sales took the first place with 218 thousand tons, and ribbed rebar with 145 thousand tons took the second place.
Although the average product prices in billet iron prices decreased compared to last year, it was observed that they started to increase in the first quarter of this year. Billet iron unit sales price, which was at the level of $703/ton in the same quarter of the previous year, increased to $791/ton in the second quarter of 2022, then decreased to $605/ton in the last quarter. The average billet iron ton price in the first quarter of this year was $645.
It was also observed that the company, which closed 2022 with a net debt of 32 million dollars, increased in the first 3 months of this year and reached a net cash figure of 149 million dollars. Kardemir, which made a total investment expenditure of 62 million dollars in 2022, spent 16 million dollars in the first quarter of this year.
