Arcelik (ARCLK TI) - EBITDA margin recovers q-q: Maintain Buy
Arcelik posted TRY177m net income in 1Q18, broadly in-line with both our estimate of TRY172m and market survey consensus of TRY179m. Although the operating performance was slightly better than estimates, higher financial expenses eliminated the positive impact at the bottom-line.
After a dismal EBITDA margin in 4Q17, there was a strong q-q improvement in EBITDA margin in 1Q18.
It seems that the worst has passed for the profitability of Arcelik. Thus, we reiterate our BUY rating for the stock.
Arcelik is engaged in the commercial and industrial activities in respect of the production, sales and marketing, customer services after sales, exportation and importation of consumer durable goods and consumer electronics. Co. has two segments: white goods reportable segment, which comprises washing machines, dryers, dish washers, refrigerators, ovens, cookers and the services provided for these products; and the consumer goods reportable segment, which comprises televisions primarily with flat screens, computers, cash registers, other electronic devices and the services provided to consumers for these products.
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