Erdemir Performed Above Expectations

Erdemir performed above expectations. The company's 2020 financial results were strong.

Erdemir, whose 2020 performance exceeds the expectations of economists, made a statement to the Public Disclosure Platform (KAP). According to the financial results announced by the company to the Public Disclosure Platform, the net profit in 2020 was 3.31 billion TL. The expectation of analysts who participated in the Bloomberg survey was $ 2.90 billion. On the other hand, the company's sales for 2020 were below expectations. Considering the announced financial results, it was seen that the sales of the company were 32.05 billion TL for the whole of 2020. Analysts' expectation was that the company would generate a sales revenue of 32.17 billion TL in 2020. On the other hand, Erdemir's figures for the fourth quarter also revealed its strong performance. Erdemir announced a net profit of 1.86 billion TL against the 228 million TL net profit announced in the same period last year. The announced figure came above the market expectation of 1.59 billion TL.   The Source of Positive Results Operational Performance Impact According to analysts, the source of the company's positive results in 2020 was its operational performance. According to the analysis of Yapı Kredi Invest, better than expected operational performance and lower tax expense were considered as the main reasons for the results to exceed analyst expectations. Garanti Yatırım also touched upon raw material prices in its analysis. In the evaluation of the institution, following was stated, "When we look at the raw material costs, iron ore prices were at the level of 130 dollars on average. After the strong tonnage and high product prices, Erdemir recorded a gross profit margin of 24.1 percent. This indicated a 15 point increase on a quarterly basis and an annual increase of 6 points."     Source: Bloomberg HT