Turkey - ULKER Analyst Meeting Notes, 15th February 2022
Ulker held an analyst meeting on Friday. Main highlight are as follows;• Ulker announced a loss of TRY1.1 billion in 4Q21 due to its net FX position and financial expenses. The Company completed the year with a TRY464 mln loss.
• The management shared that one of their main targets in 2022 is to increase its profitability. While the Company did not share 2022 guidance, it is stated that January and February 2022 figures were off the charts compared to both 4Q21 and 1Q21.
• The Company expects consumer behaviour and supply chain factors to return to pre-pandemic state in the coming period. It was stated that with the assumption that there will be no problem in the supply chain, this may affect operational margins positively.
• Ulker stated that it is protected against volatile commodity prices and that it has sufficient stocks to last until the end of 2022 for most of the main raw material items and until the end of 2023 for cocoa. Accordingly, the Company anticipates that it will not experience any problems in the supply of raw materials.
• The management stated that the EBITDA margin of 18% is sustainable and the leverage ratio will be around 3.5 in 2022 (2021-end EBITDA margin: 18.6%, Net debt/EBITDA: 3.8x). Along with this, since the Company is the market leader it is able to maintain its margins thanks to its competitive advantage.
• The Company stated that it has started the financing process for the syndicated loan with a maturity of April 2023 and will be meeting with the banks for financing.
• The stock is trading with a 50% discount compared to its global peers, and the steps to be taken to have a more transparent structure may reduce the discount in the coming period. The addition of new independent members to the board and the acquisition of Onem Gıda can be mentioned as steps taken in this direction in the previous period.
Ulker Biskuvi Sanayi is a manufacturer and marketer of biscuit, chocolate coated biscuit, wafer, cake and chocolate. Co.'s brands include Potibor, Cizi, Krispi, Haylayf, Mavi YePil, HanYmeller, Bebe BiskUvisi, Biskrem, Krim Kraker, Probis, Cokoprens, As Kraker, Bathak, Ykram, Canpare, Rondo, Altinbasak, Kat Tat, Halley, Kat Kat Tat, Cubuk Kraker, Alpella Ring, Hasat, Bolero, Saklykoy, Dore and Haylayf.
The Institutional Equity Research team of Raiffeisen Bank International AG covers 85 stocks from Austria, Central & Eastern Europe with sell-side research and thus levers our local broker status with excellent company relationships. For corporates in Austria, CEE and Western Europe, we offer co-sponsored research, which includes research coverage and marketing activities to investors. Additionally, through our Spotlight Research product we also shed light on leading European small and micro-caps, seeking greater visibility with investors.
The Institutional Equity Research team consists of roughly 15 analysts, both in Vienna and the CEE countries. Our analysts provide long-standing sector expertise in tandem with profound local market know how and a sectoral approach across the entire region.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.