While consolidated net sales totalled 8.8 billion TRY in January – 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 this period.
Prof. Ahmet Kırman, Vice Chairman and CEO, disclosed the financial results for January – June 2020 and stated that Şişecam Group continued to create value for all its stakeholders in the first half of 2020 when the extraordinary conditions of the global pandemic affected all spheres.
“With consolidated net sales totalling 8.8 billion TRY 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,” Kırman said.
“Our performance in June has signalled a very positive outlook for the rest of the year”
In his statement, Kırman underlined 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. He continued, “Our chemicals and glass packaging business lines, which provide input for critical sectors, particularly food and pharmaceuticals, have displayed remarkable resilience. Meanwhile, 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. Exports have also picked up thanks to easing of quarantine measures in international markets and re-opening of national borders. June has signalled 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% in the January – June 2020 period.
Kırman said, “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. Our consolidated EBITDA amounted to 2.3 billion TRY 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 USD in Eurobonds, which had become due, and distributed dividend payments amounting to some 470 million TRY 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 totalling 625 million TRY.”
“We have broken new ground in Turkey and worldwide while supporting the battle against the pandemic”
In the disclosure, Kırman emphasized that Şişecam acts with the responsibility of being a global player in the glass industry as well as the chemicals sector with its soda and chromium operations. The Group remains committed to fulfil its duties to safeguard the health and well-being of its employees, business partners and customers without interrupting production and services related to the primary needs of the public during the pandemic.
Kırman added, “With the preventative steps we take, Şişecam Group supports a large ecosystem comprising our employees, customers, suppliers, business partners and all parties we are in contact with during this period. We do not limit our efforts related to the battle against the pandemic to the actions within Şişecam.
“We take responsibility by also supporting broader public health efforts. We offered our support to supply critical equipment and materials required by public hospitals when the pandemic first broke out in Turkey. In line with our social responsibility approach, we contributed to our stakeholders in other countries – including Italy, Bulgaria, Bosnia-Herzegovina and Georgia – to the extent that priority requirements and means permitted.”
Kırman stated that Şişecam – a global player operating in 14 countries across four continents with 22,000 employees – continued to break new ground in Turkey and worldwide during the pandemic, “We have broken significant new ground in glassware to support the battle against the pandemic. By combining our superior R&D capabilities with our production strength, we rapidly developed Antimicrobial V-Block Technology, which neutralizes viruses and bacteria on glass surfaces. We also plan to apply this revolutionary technology to glass packaging, architectural glass and home appliances glass in the future.
“Şişecam was also the first glass producer to receive the TSE COVID-19 Secure Production Certificate. This certification indicates the exceptional measures and practices that Şişecam Group has implemented to protect the health and well-being of all its employees, business partners and customers since the start of the pandemic. We also continued to pioneer with our competences in areas outside of our core operations, such as treasury management. In line with our ‘End-to-End Digital Treasury Management’ objective, Şişecam became the first company in Turkey to conduct model practices such as executing foreign trade transactions via blockchain technology and deploying a Digital Fraud Detection and Control System.”
Şişecam merges all its business operations under a single umbrella during its 85th year
With a reminder that Şişecam set out to merge all its business activities under a single umbrella at the start of the year, Kırman continued, “2020 holds special significance for us here at Şişecam Group. This is the year when we celebrate the 85th anniversary of Şişecam and consolidate all our operations under a single umbrella. Our application to the Capital Markets Board for the merger transaction was approved. The General Assembly meetings related to the merger – which will further bolster Şişecam in terms of global competition – will be held in August. We expect the merger transaction to be completed in September in accordance with the provisions of the relevant legislation.
“Thanks to this merger, Şişecam Group will benefit from new synergies in various fields in the post-pandemic new world order when agile and fast-moving companies will have a competitive edge. We also aim to establish a more suitable legal and administrative infrastructure to have the upper hand in global competition. With all these efforts, Şişecam remains committed to creating further value for all its stakeholders in line with its sustainable growth strategy.”