Turkish steel manufacturer Kocaer Celik reported a sharp decline in net profit for 2024. In a stock exchange filing, the company announced a net profit of TRY 83.12 mln (USD 2.26 mln), a significant drop from TRY 1.7 bln in 2023.
Sales revenue fell 13.4pct YoY to TRY 19.23 bln (USD 524 mln), primarily due to lower steel prices, despite a 3.4pct increase in sales volume to 580,443 tons.
However, the company saw an improvement in its product mix, with value-added products accounting for 42pct of total sales in 2024, up from 39pct the previous year.
Kocaer Celik attributed the decline in Turkish Lira-based sales revenue to falling product prices, limited exchange rate gains, and inflation-driven accounting adjustments in line with global USD-based steel price decreases. Additionally, challenging economic conditions for exporters in 2024 pressured profit margins. Despite only moderate depreciation in the Turkish currency, rising costs, particularly labor expenses driven by high inflation, further squeezed gross profit margins for export-focused businesses.
Kocaer Celik’s annual production capacity of steel profiles is 800,000 tons per annum The company have 3 steel profile factories, a 100,000 tons per year galvanizing factory, and a 180,000 tons per annum service center in Turkey.
1 USD / 36.6 TRY