Dogan Sirketler Grubu : Doğan Holding posts TRY 6.7 billion in profit in 1H23, with 186% growth in revenues

Doğan Holding announced its financial results for the first half of 2023. In the first six months of the year, during which Doğan Holding made steady progress towards its strategic targets, the Holding's consolidated revenues grew 186% year-over-year to hit TRY 15.3 billion. With a growth rate similar to that of sales, gross profit surged by 169% year-over-year to TRY 4.5 billion, while the growth in earnings before interest, taxes, depreciation, and amortization (EBITDA) surpassed sales with a 191% growth to hit TRY 3.6 billion. The leading factors in the robust operational performance were Hepiyi Sigorta, which makes a difference in the insurance industry with its innovation capability, the consistently strong contribution of Karel, one of Türkiye's leading electronics companies, and the ongoing high demand for the brands in Doğan Trend Otomotiv's portfolio. Doğan Holding's net profit for the period was TRY 6.7, up 125%, driven by the strong operational performance, growing financial revenues, and the profit obtained from the sale of Aytemiz shares.

According to the consolidated financial statements Doğan Holding submitted to the Public Disclosure Platform (KAP), the Holding recorded TRY 15.3 billion in consolidated revenues in first-half 2023. The Holding's gross profit for the first six months climbed 169% year-over-year to TRY 4.5 billion, while its earnings before interest, taxes, depreciation, and amortization (EBITDA) reached TRY 3.6 billion, up by 191% year-over-year. Doğan Holding's net profit for the period surged 125% year-over-year to reach TRY 6.7 billion.

"Automotive, insurance, investment banking, and electronics were the key drivers of the robust growth performance"

Çağlar Göğüş, CEO of Doğan Holding, attributed the 191% growth in the EBITDA, which reached TRY 3.6 billion, to the strong operational performances of the automotive trade and marketing segments, industry and trade, and finance and investment segments. Göğüş elaborated as follows:

"We have achieved highly successful results in our strategic segments in line with our goals. In the Automotive Trade and Marketing segment, our revenues recorded a remarkable 266% increase due to the performance of Doğan Trend Otomotiv. MG managed to achieve market leadership in electric vehicle sales in the first seven months of the year. Revenues in the Industry and Trade segment grew by 118%, driven by the impact of Karel Elektronik, which we acquired in the second half of 2022. The increasing revenue contribution of Daiichi, a subsidiary of Karel that operates in automotive electronics, strengthened our expectations for the upcoming periods. Sesa Ambalaj continued to strengthen its financial results through growing exports. Focusing on digital competencies, Hepiyi Sigorta and D-Investment Bank quickly rose to prominence in their respective fields, leading to a massive 1,049% increase in Finance and Investment segment revenues compared to 1H22. As our domestic companies continue to make steady progress, Kanal D Romania, a leading media and internet player in Romania, continued to make a remarkable contribution to our international revenues through increased revenues."

Göğüş emphasized that profitability has remained positive due to the Holding's balanced and diversified business portfolio despite rising production costs and various macro challenges, noting that Doğan Holding's net profit increased by 125% year-over-year, rising from TRY 2.5 billion to TRY 6.7 billion.

Göğüş remarked that a total dividend payment of TRY 675 million was made in 1H23, and concluded:

"We are a responsible investment holding driven by a legacy of trust, stability, and reputation built over 63 years, as well as a philosophy of sustainable value creation. We identify our growth ideas guided by sustainability as our compass and innovative solutions and future-ready businesses as our key focus. Accordingly, we continue to achieve successful results in strategic sectors such as renewable energy, industry, electronics, automotive, insurance, and investment banking through organic investments, and we conduct our mergers and acquisitions in a swift and effective manner. The basis of the financial results we achieve today lies in the decisions we make as a responsible investment holding focused on creating sustainable value. Through the Doğan Impact Plan, we are transforming the structure of our group. We will sustain our growth by adding value to our investors, customers, employees, and, most importantly, our country."

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