The Holding’s gross profit in Q1 rose by 43.3% y-o-y to hit TRY 358.912 million, and its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 59.3% to TRY 244.7 million. With revenue generated from operating profit and investments, Doğan Holding's profit for the period jumped by 35.6%, climbing to TRY 416.8 million from TRY 307.4 million.
According to the financial statements submitted by Doğan Holding to the Public Disclosure Platform (KAP), the Holding’s consolidated revenues for 1Q21 totaled TRY 2.8 billion. Doğan Holding’s gross profit in 1Q21 rose by 43.6% y-o-y to hit TRY 358.912 million, and its Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) increased by 59.3% to TRY 244.7 million. Doğan Holding's profit for the period attributable to the parent increased by 28.8% y-o-y to TRY 413 million in 2021, up from TRY 320 million. Consolidated net cash recorded a 7.8% increase over the previous year’s close and reached TRY 2.6 billion.
Commenting on the Holding’s 1Q21 financial results, Doğan Holding's CEO Çağlar Göğüş stated that the increase in consolidated revenues was owed to the strong Q1 performance of all group companies in the industry and trade segment, the high demand in the automotive trade and marketing segment and the new brand additions to the portfolio as well as the added boost of increase in sales, growth in the activities of finance and investment companies and the rise in the generation capacity of the power plants within the electricity generation segment. Göğüş also added:
“The revenues of the electricity generation segment were up by 17.9% y-o-y, and the industry and trade segment by 107.5%, thanks to the strong Q1 performances of Çelik Halat, Ditaş and Sesa, and the increase in exports. Backed by high demand and new brand additions to the portfolio, the automotive trade and marketing segment revenues climbed by 62.1%, and despite DMC’s restructuring as a joint venture, the revenues of the Internet and entertainment segment grew by 34.6% in parallel to the increase in satellite and transmitter service revenues of Kanal D Romania, which are listed under advertising revenues and other revenues.
Doğan Holding’s CFO Bora Yalınay noted that the upward EBITDA trajectory of the petroleum products retail, automotive trade and marketing, industry & trade and Internet & entertainment segments played a key role in boosting the Consolidated Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) by 59.3% to TRY 244.7 million Pointing out that the measures taken in 1Q21 towards profitability, effective crisis & process management, cost savings and increase in operational efficiency helped them to achieve better results quarter-on-quarter, Yalınay said that the gross profitability of the Holding increased by 43.0% y-o-y to TRY 360 million, up from TRY 251 million, and underlined that the EBITDA margin moved up from 6.4% to 8.6%. Yalınay added, “Our consolidated net cash recorded a 7.8% increase over the previous year’s close and reached TRY 2.6 billion.”
Stressing the fact that one of the most significant developments for Doğan Holding in 2021 was the green initial public offering (a first in Turkey) of the group’s renewable energy company Galata Wind Enerji A.Ş., Çağlar Göğüş said, “Listed under Borsa Istanbul’s Corporate Governance and Sustainability indexes, Doğan Holding leverages its values and 61-year-long experience to focus on creating a positive impact by seizing all the innovative and value-centric business opportunities presented by the UN Sustainable Development Goals and commits itself to launching new investments and creating value for the society, our planet and all its stakeholders by embracing this approach.”