Arcelik AS

RCAA

Equity

ISIN US03937X1090 / Valor 4775968

Deutsche Boerse AG (2024-09-18)

EUR 16.00+3.23%

Arcelik AS
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About company

Arçelik AŞ is a global household appliance manufacturer with a significant footprint in the industry, boasting a workforce of 55,000 employees worldwide. The company's operations span across 58 countries, with 45 production facilities located in 13 countries, underscoring its extensive manufacturing capabilities. Arçelik's brand portfolio is diverse, including 22 brands such as Arçelik, Beko, Grundig, and Hotpoint among others, some of which are operated under licensing agreements indicated by asterisks (e.g., Whirlpool, Ariston, Hitachi, and Singer). This wide array of brands allows Arçelik to cater to a broad spectrum of consumer needs and preferences across different regions. The company's product range is comprehensive, covering various categories of household appliances, which likely includes refrigerators, washing machines, cookers, and smaller domestic gadgets, although specific product offerings are not detailed in the source. Arçelik's global presence and extensive brand and product portfolio position it as a key player in the household appliance industry, serving millions of homes worldwide.

Summarized from source with an LLMView SourceSector: Consumer Cyclicals

Revenue and Profit Growth

In the first quarter of 2024, Arcelik AS reported a significant revenue increase, reaching TRY72.3 billion, which represents a 4.8% growth year-over-year in real terms. The company also saw an improvement in profitability, with EBITDA margins expanding to 8.0%, up by 64 basis points compared to the same period last year, primarily due to decreased raw material costs.

Operational Efficiency

Arcelik AS demonstrated enhanced operational efficiency in 1Q24, with a notable reduction in operating expenses to sales ratio, which stood at 25.3%. This improvement is attributed to strategic cost management and more efficient production processes, aligning with eased costs and resilient demand in both domestic and international markets.

Market Expansion

During the first quarter of 2024, Arcelik AS completed a significant transaction with Whirlpool, acquiring MENA companies and expanding its market presence in Europe. This strategic move is expected to strengthen Arcelik's market position and enhance its revenue streams from these new geographies going forward.

Dividend and Shareholder Value

Arcelik AS continues to prioritize shareholder value, maintaining a healthy dividend payout in the first quarter of 2024. The company's commitment to returning value to its shareholders is evident from its consistent dividend policy, supported by strong financial performance and a stable outlook for the future.

Future Outlook

Looking ahead, Arcelik AS remains optimistic about its performance for the remaining year of 2024. The company expects continued growth in revenue and profitability, driven by ongoing demand recovery in international markets and robust sales in the domestic market. Arcelik AS is also focused on leveraging its recent acquisitions to enhance its global footprint and operational efficiencies.

Summarized from source with an LLMView Source

Key figures

-42.9%1Y

-4.19%3Y

%5Y

Performance

192%1Y

181%3Y

180%5Y

Volatility