BGC Partners: Adel Kalemcilik slightly negative.
Adel Kalemcilik reported a net loss of TL22.3mn in 4Q18 (4Q17: -TL16.2mn, BGC: -TL14.4mn), slightly negative... We think that soaring financing costs has put some pressure on the bottom line as the company manages a sizeable working capital during the year. There is no market consensus for Adel. 1Qs and 2Qs are seasonally strongest quarters for Adel where revenues and EBITDA are the highest, while 3Q is weaker and 4Q is the weakest (in 4Qs, EBITDA and bottom line are generally negative). Note that it is also difficult to estimate Adel's quarterly figures given seasonality and shifts in quarterly demands due to macro conditions. In 4Q18, top line growth of 24.4% was slightly above our 14.0% estimate; Adel recorded TL31.2mn revenues in the quarter (BGC: TL28.6mn). The company posted an EBITDA of -TL11.5mn in 4Q18 vs. 4Q17’s -TL14.0mn and in line with our estimate of -TL12.8mn. As a result of the seasonality, working capital requirements recovered sharply by TL196mn to TL212mn (3Q18: TL408mn, 4Q17: TL162mn), slightly worse than our 2018-end estimate of TL194mn working capital requirements. Accordingly Adel’s net debt declined to TL161mn in 4Q18 from TL312mn in 3Q18 (2017-end: TL81.4mn). Note that working capital requirements rise in 1Q, 2Q and 3Qs (max level), but 4Qs are collection periods where we observe a significant drop in the requirements. Adel has TL9.4mn long FX position in 4Q18 (3Q18: TL17.7mn long FX position, 2017-end: TL18.8mn). We think that 4Q18 results are slightly negative. (Matriks, BGC Partners)Adel Kalemcilik Ticaret ve Sanayi AS (Adel Kalemcilik) is a Turkey-based company engaged in the production of stationary supplies, including wood-cased black-lead, color and copying pencils, ballpoint pens, fiber pens, oil pastels, watercolors and erasers. The Company's product range also includes mechanical pencils, foil covered black-lead pencils, offset printed black-lead pencils, fiber pens, glue sticks, textile marking pencils, modeling clay, wax crayons and finger paint. It has two production facilities in Istanbul and Giresun. Adel Kalemcilik was established as a result of the partnership between Anadolu Endustri Holding AS and German Faber-Castell AG. The Company offers Adel, Faber Castell, Graf von Faber-Castell, Eberhard Faber and Atlas branded products. It exports its products to 54 countries worldwide. It has investments in Anelsan Anadolu Elektronik Sanayi ve Ticaret A.S. and Ulku Kirtasiye Tic. ve San. A.S.
BGC has been one of the major market players in Turkish OTC debt, FX and swaps markets since 1998.
We started offering corporate finance and investment banking services to our clients in 2013. We offer a complete range of financial services to help our clients achieve their goals. Our main areas of activity within investment banking are as follows:
- Mergers & Acquisitions
- Equity Capital Markets
- Debt Finance & Advisory
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