BGC Partners: SODA 1Q19 Earnings Review - Slightly better
Soda Sanayi reported a net profit of TL285mn (+19% YoY) in 1Q19, slightly better than market consensus of TL259mn and BGC estimate of TL262mn. Lower than expected effective tax rate was the reason behind the slight deviation of net profit from BGC estimate. EBITDA came in at TL200mn (+8% YoY) in 1Q19, broadly in line with market consensus (TL193mn) and BGC estimate (TL191mn). EBITDA margin declined by 5.3pps YoY to 21.1% in 1Q19 on the back of dilutive impact of glass fibre plant due to the ramp up period, 94% increase in natural gas tariff, higher royalty payments to Sisecam, higher unit costs in chromium chemicals segment, planned maintenance in Soda Lukavac and chromium plant in Turkey. We expect the earnings announcement to have a neutral impact on the stock.Soda Sanayii is engaged in establishing and acquiring manufacturing facilities to manufacture light soda ash, dense soda ash, sodium bicarbonate, sodium bichromate, sodium sulphur, sodium sulfate, basic chromium sulfate (Tankrom AB, Tankrom SB, Tankrom OBM, Tankrom F24, Tankrom FS, Tankrom OB, Tankrom FO, Resintan M), chromic acid and derivatives of soda and other products derived from soda, and importing and exporting the production of these products and construction of industrial machinery.
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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