Tat Gıda's Consolidated Revenue Reaches TRY 745 Million in First Half of 2020

Tat Gıda reached TRY 745 million in consolidated revenue in the first half of 2020, a 40% increase year-on-year. Revenue from tomato paste and canned products rose 55%, while dairy and dairy products revenue increased 26%. Tat Gıda disclosed its second-quarter 2020 financial results to the Public Disclosure Platform (KAP). In the second quarter of the year, the company reported net profit of TRY 32.1 million, up 64.6% year-on-year, while sales revenue reached TRY 368 million, up 35.7% year-on-year. EBITDA in the second quarter of the year reached TRY 45.3 million, up 99.3% year-on-year. Export sales at Tat Gıda rose 67% to TRY 67 million in the first half of the year. Gross profit increased 45% to TRY 165 million, while operating profit rose 89% to TRY 96 million. Operating profit margin expanded to 12.9%, up 3.3 percentage points from the same period last year.

EBITDA in the first half of the year reached TRY 94 million, up 106%. EBITDA margin stood at 12.6%, up 4 percentage points from the same period last year. Net financial debt was managed effectively, declining from TRY 194 million in December 2019 to TRY 108 million in June 2020.

Tat, the market leader brand in Turkey when it comes to tomato paste, tomato products, canned goods and ketchup, posted revenue of TRY 394 million, up 55%, while SEK, the innovative leader brand in dairy and dairy products, achieved 22% branded growth in the first half of 2020 following 31% branded growth in the first half of 2019. Based on first-half 2020 results, total revenue for the SEK brand reached TRY 352 million, up 26%. Both brands' products experienced strong growth due to the impact of Covid-19 worldwide and the quarantine spent at home. In particular, serious demand increases were seen in categories such as long-shelf-life canned goods, ready meals and tomato products, while out-of-home consumption channels saw significant sales declines in March, April and May. As of early June, service resumed to out-of-home consumption venues such as restaurants and cafes that reopened during the "normalization" transition process. Arzu Aslan Kesimer, Member of the Board of Directors and General Manager of Tat Gıda, commented on the first half of the year as follows: "As with the rest of the world, our role in this challenging period facing our country is to produce food and deliver what we produce to our people. While continuing our efforts for the continuity of agricultural production, we provided financial support to our farmers, our most important business partners who have touched family life across generations and shared the tables of everyone, carrying the Tat brand to these points. During the tomato season, we worked and developed projects for the health and safety of seasonal agricultural workers assisting contracted farmers in agricultural activities. We continued our work in the Digital Agriculture field without slowing down and adding innovations. We held the 3rd Digital Field day with our farmers. On the export side, we concluded new agreements in the Iraqi and European markets. At TAT and SEK production facilities, as Tat Gıda, which produces without compromising occupational health and safety, quality and hygiene standards, we became the first company in our sector entitled to receive the "Covid-19 Safe Production Certificate" granted by Turkish Standards Institute (TSE) experts to companies that have passed inspection regarding measures to be taken in industrial facilities. I can say this work of ours, our effort, is a reward... We are Turkey's market leader brand and in addition to guiding companies in combating the pandemic, we continue to be among the pioneers of a rapidly changing world and business environment, which is needed in the post-pandemic period, monitoring companies' compliance with reliable and hygienic production standards."