Şişecam Boosts Sales Performance
With production operations spanning 14 countries across four continents and sales reaching more than 150 countries, Şişecam, a global player, achieved consolidated net sales of TRY 14.6 billion in the January-September 2020 period.
During this period, international sales accounted for 60% of total sales at Şişecam. The company's total investments over the nine months of the year reached approximately TRY 1.1 billion, and exports amounted to approximately USD 500 million.
Şişecam Board Vice Chair and Chief Executive Officer Prof. Dr. Ahmet Kırman stated that the company continued to create value for all stakeholders during the nine-month period of 2020, when the effects of the global pandemic were felt across all sectors and extraordinary conditions prevailed. He said, "Our sales, which experienced a global downturn in April due to the pandemic, began to rise in May thanks to the swift decisions we took and our effective management actions.
Particularly from June onwards, as quarantine measures were eased and normalization processes began in many geographies where we operate, especially in our country, our sales performance showed a strong recovery.
The June-September period sent a positive signal for the last quarter of the year. As the extent of the global pandemic's impact remains uncertain, we will continue to closely monitor all developments and make necessary updates to our business processes and plans."
[caption id="attachment_107099" align="aligncenter"] Prof. Dr. Ahmet Kırman[/caption]
Şişecam, a global player in all major glass fields including flat glass, household glassware, glass packaging and glass fiber, as well as in soda and chromium compounds, achieved consolidated net sales of TRY 14.6 billion in the January-September 2020 period, while international sales—comprising exports from Turkey and sales from foreign production—accounted for 60% of consolidated sales.
Şişecam, which produces 3.5 million tons of glass at its domestic and foreign facilities, generated 1.7 million tons of soda and 3 million tons of industrial raw material production during this period.
In his statement on the January-September 2020 financial results, Şişecam Board Vice Chair and Chief Executive Officer Prof. Dr. Ahmet Kırman noted that the company continued to create value for all stakeholders during the nine-month period of 2020, when the effects of the global pandemic were felt across all sectors and extraordinary conditions prevailed. He said, "During the January-September period, our consolidated net sales reached TRY 14.6 billion, and with export revenue of USD 500 million, we continued to contribute to the country's economy. Our sales, which experienced a global downturn in April due to the pandemic, began to rise in May thanks to the swift decisions we took and our effective management actions. Particularly from June onwards, as quarantine measures were eased and normalization processes began in many geographies where we operate, especially in our country, our sales performance showed a strong recovery during the June-September period.""Performance in the June-September period provided a positive signal for the last quarter of the year"
Kırman noted that results aligned with expectations and targets in the first quarter of the year, and that the effects of the global pandemic became evident in the second quarter. He continued: "During this process, our chemical and glass packaging business lines, which supply inputs to critical sectors including food and pharmaceuticals, demonstrated resilient performance. However, in flat glass, which supplies inputs to locomotive sectors such as automotive, white goods and construction, as well as in our household glassware business, which is directly affected by the tourism sector and household consumption, we experienced significant contraction in demand. However, with steps being taken from May onwards towards normalization, we began to see movement in demand. In June, with the acceleration of normalization processes, domestic demand recovered, and as quarantine measures were eased and borders reopened in international markets, export recovery gained momentum.The June-September period, during which we demonstrated performance that improved our projections compared to the previous year for the full year, provided a positive signal for the last quarter of the year.
As the extent of the global pandemic's impact remains uncertain, we will continue to closely monitor all developments and make necessary updates to our business processes and plans." Pointing out that the EBITDA margin for the January-September 2020 period was at 30%, Kırman said: "From the beginning of the global pandemic, we rapidly implemented measures aimed at cost savings. Unlike other industrial sectors, given the necessity of continuous production in our current business lines based on melting technology, we rapidly updated our production plans and business processes, taking into account developments in the sectors where we provide inputs. As a result of our optimization efforts and actions taken, our consolidated EBITDA volume reached TRY 4.4 billion during the nine-month period of the year. Additionally, our strong financial position enabled us to continue making necessary investments for our operations without interruption, increase employment, and make a total of approximately TRY 1.1 billion in investments during the nine-month period." Emphasizing that despite the uncertainty created by the global pandemic, the company continued to create value for the country's economy, Kırman said, "Particularly in response to the need to increase our production capacity in line with domestic market demand, we commissioned a new furnace that we built through a TRY 1 billion investment made during the 2018-2020 period at our flat glass production facility in Polatlı, Ankara, on 2 October 2020. Starting from 26 October 2020, glass pulling began from the new furnace, which has an annual capacity of 240,000 tons. With our new investment, we are pleased to have made our Polatlı facility, with annual production capacity reaching 540,000 tons, one of Europe's largest flat glass production bases."Şişecam unified all operations under one roof in its 85th year
Kırman also recalled that they embarked on the path to unify all of Şişecam's operations under one roof at the beginning of this year, saying, "2020, the year we celebrated Şişecam's 85th anniversary and unified all our operations under one roof, holds special significance for us. Following approval of our merger application to the Capital Markets Board in July, we also held General Assembly meetings regarding the merger, which will strengthen Şişecam's global competitiveness, in August. The merger process was completed and registered by the end of September in accordance with applicable legal provisions. Through this merger, we foresee gaining the opportunity to create synergies in many areas in the new world order after the global pandemic, where agile and fast-moving organizations will have the advantage. We aim to create and maintain a more suitable legal and administrative infrastructure from the perspective of global competition and to create more value for all our stakeholders in line with our sustainable growth strategy."Advertisement
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