“In the first quarter of 2025, despite the dollar-based price decreases in global steel markets, we increased our net profit after inflation adjustment by 106% compared to the same period of the previous year to TRY 273 million thanks to our value-added product strategy and operational efficiency increases,” stated Hakan Kocaer, Chairman of the Board of Directors of Kocaer Çelik.
Kocaer Çelik, one of the leading companies that carries out steel profile production, manufacturing operations with its service center and galvanized coating processes in an integrated structure when we look at Türkiye, Europe and many countries of the world, announced its first quarter financial results for 2025. The company, which has managed to differentiate positively from its sector by increasing its sales volume for the last four years in a row, made a strong entry into the first quarter of 2025 and increased its net sales volume by 20.5% compared to the same period last year. Kocaer Çelik, which realized 77% of its total sales abroad, generated net revenues of TRY 4 billion 523 million between January 1 and March 31, 2025.
Despite Challenging Conditions, Value Added Products and Efficiency Strengthened Gross Profitability
Product sales prices declined due to the dollar-denominated price declines in global steel markets, resulting in a y/y decrease in sales revenues. On the other hand, the increase in the share of high value-added products in total sales had a positive impact on gross profit margin, while operational efficiency and production increases achieved as a result of the revisions and new machinery-equipment investments completed in production facilities also contributed positively to profitability. In 1Q2025, gross margin increased by 310 bps y/y to 21.3% and the company posted a gross profit of TRY 964 million in this period. In parallel with the completion of investments in value-added products and the addition of new products to the portfolio, this segment is expected to maintain its strong course in the total portfolio for the remainder of 2025.
EBITDA of TRY 653 Million in the first quarter following the strong course of operational profitability
Hakan Kocaer: ''Despite the pressure on exporters due to the fluctuations in global steel markets and economic conditions; the limited depreciation of the Turkish Lira, but the pressure of Turkish Lira-denominated costs, especially labor costs, which increased due to high inflation, on exporters, our profitability strengthened with high value-added products, and we achieved significant increases in our profit margins compared to the previous year.''
Net Profit Increased 106% in Real Terms as Indebtedness Decreased
Following the completion of overhaul and new machinery and equipment investments in two of the company's three steel profile plants in Aliağa in the last two years, our investment requirement in the steel profile segment has decreased. Accordingly, in the first quarter of 2025, capital expenditures excluding the energy segment decreased by more than half compared to the same period of the previous year and amounted to TRY 72.8 million. As a result of reduced capex and disciplined working capital management, total financial debt decreased by 4% compared to 2024 year-end, while net financial debt to EBITDA ratio was kept at 1x, maintaining a strong financial structure. On the other hand, despite the increase in financing expenses and monetary losses recorded due to inflation accounting practices, Kocaer Çelik maintained its strong operating performance in the first quarter of 2025, increasing its net profit after inflation adjustment by 106% in real terms compared to the same period last year to TRY 273 million.
2030 Growth Vision focuses on High Value Added Steel and Energy
The 2030 growth strategy of the company, which shared its medium-long term growth vision and targets with the public, was determined as increasing the production of high value-added steel profile products and reaching 250 MW of installed power generated from renewable energy sources, equivalent to 900 MW of solar energy. Kocaer Çelik Chairman of the Board Hakan Kocaer; '' We want to focus on the production of high value-added special steel profile products, which are difficult and limited to produce in the world and provide import substitution in Türkiye. We are planning to invest in a green steel mill with an environmentally friendly advanced technology with a capacity of 1 million tons to supply the raw material resources required for high quality steel profiles and a new steel profile factory with a capacity of 500 thousand tons that can also produce large section structural steels. We will also increase our global penetration with new distribution channels and steel service centers in different countries”. After these investments, the company aims to become one of the world's leading solution partners in steel profiles, which stands out with its green and environmentally friendly production, and to become an important player in renewable energy production.
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