Click here for the minutes of AGM.
Vestel White Goods announced total revenues of US$136mn (Euro 104mn) and net income of US$6.9mn (Euro 5.3mn) in 1Q09.
Click here for 1Q09 CMB based unconsolidated financials.
The Board of Directors of Vestel Beyaz Eşya took the below mentioned decisions at its Board Meeting:
2008 Net Income: TL 30,816,495
Statutory Reserves (5%): TL 1,838,180
Distributable net income: TL 30,816,495
Distribution of TL 5,798,470 of the distributable net income will be proposed to the General Assembly.
Although our Company's dividend distribution policy indicates dividend distribution of 25% of its distributable net income, due to the ongoing global crisis, we will propose the minimum distribution amount (20% of distributable net income of 2008) which was set by Capital Markets Board.
Dividend distribution date will be set by the General Assembly.
Vestel White Goods announced total revenues of US$618mn (Euro 453mn) and net income of US$59.3mn (Euro 43.5mn) in 9mth-09.
Click here for the agenda.
Vestel White Goods announced total revenues of US$974mn (Euro 664mn) and net income of US$24mn (Euro 16mn) in FY08.
Click here for FY08 CMB based unconsolidated financials.
With regards to the ongoing talks between Vestel Elektronik and Whirpool Europe, due to the global economic downturn and financial crisis, both parties have agreed to pause the talks until the conditions improve. However the parties believe that the strategic reasoning behind the deal are still valid.
Vestel White Goods announced total revenues of US$788mn (Euro 517mn) and net income of US$37mn (Euro 24.5mn) in 9mth-08. Unit sales grew by 4% YoY to 3,747,000 units, slightly lower than the Company targets despite deteriorating market conditions both at home and abroad. While domestic sales increased by 14% YoY to 716,700 units, exports rose by 2% YoY to 3,030,000 units.
In 9-mth 08, despite increased Chinese competition in the table-top refrigerator segment (mainly as a result of strong Euro/$ parity), white goods exports remained on track thanks to increased sales to A-brands mainly in all other segments in line with widening product portfolio. Accordingly, washing machine exports were up by 29% YoY. In terms of total unit sales, the highest growth was achieved in oven and dishwasher segments. While oven sales recorded 42% YoY growth (strong export growth), dishwasher sales (a new product) reached 131,000 units up from a low base of 32,000 units in 9mth-07.
EBITDA margin was up to 10.9% in 9mth-08 vs 6.7% in 9mth-07 (strong Euro effect (both against US$ and YTL) coupled with efficiency gains).Nevertheless, net income was down to US$37.3mn in 9mth-08 from US$51.3mn in 9mth-07 due to FX losses (vs. fx gains in 9mth-07) and lower interest income on a YoY basis.
On a QoQ basis, EBITDA margin came down to 7.6% level in line with relatively higher raw material costs (which could not be fully reflected on product prices due to tough market conditions) and the downward trend observed in Euro/$ parity in 3Q08. However, the trend reversal in raw material prices which started to be materialized in global markets in 4Q08 should contribute positively to EBITDA levels in the coming periods if remains sustainable.
On the balance sheet side, gross debt stood at US$65mn at the end of 9mth-08, indicating a gross debt to shareholders' equity ratio of 16%. Meanwhile, net debt reached US$46mn at the end of 9mth-08, up from US$10mn at year-end 2007. Please note that the Company realized total dividend payment of approx. US$42.5mn at the end of May 2008.
While short FX position of the Company is reported as approx. US$126mn in financials, the Company's actual short FX position is limited with US$34mn, taking into account the FX denominated nature of the major portion of the inventories. As previously explained in our 1H08 earnings review, due to nature of the operations, the Company has been carrying a long position in Euro (against US$), the major portion of which was closed through forward contracts (at the amount of Euro 17mn) in early July 2008. Accordingly, the Company reported financial income of US$1.9mn through this action in 3Q08 in line with the downward trend in Euro/$ parity.
Vestel White Goods realized total investments of US$19.7mn in 9-mth08
Click here for 9-mth08 CMB financials.
As we mentioned before in our public announcement on 11.06.2008, the talks between our main shareholder Vestel Elektronik and Whirlpool Europe SRL regarding to the establishment of a partnership in white goods segment still continue.
Vestel White Goods announced total revenues of Euro 325.5mn (5% YoY increase) and net income of Euro 17.5mn in 1H08. Unit sales grew by 7% YoY to 2,452,000 units. Domestic sales increased by 16% YoY to 410,000 units, while exports rose by 6% YoY to 2,042,000 units, in line with the Company targets.
In terms of unit sales, the highest growth was achieved in oven and dishwasher segments. While oven sales recorded 50% YoY growth (strong export growth), dishwasher sales (a new product) reached 76,000 units up from a low base of 6,000 units in 1H08. Meanwhile, refrigerator sales declined by 13% YoY mainly due to weaker export performance on the back of stiff competition from Far-Eastern producers in table-top segment with further strengthening of Euro against US$. Nevertheless, washing machines, recorded 15% YoY growth despite weak domestic sales thanks to increasing sales volumes to A-brands on the export side.
On a YoY basis, EBITDA margin was up to 12.8% in 1H08 vs 6.8% in 1H07, mainly due to: 1) inventory impact: EBITDA margin is inflated (depressed last year) in line with the depreciation of YTL (appreciation of YTL last year) due to TL-based weighted average inventory cost accounting. 2) positive impact of strong Euro against $ and YTL as Europe being the major export market (approx. 90% of export revenues in Euros), the Company benefits from strong Euro against $ and YTL considering also the significant share of YTL and $ denominated production and operating costs. 3) Continuing efficiency gains.
Nevertheless, net income was down to 17.5mn Euros in 1H08 from 24.8mn Euros in 1H07 due to FX losses (vs. fx gains in 1H07) and lower interest income on a YoY basis.
Compared to weak 1Q season, revenues increased by 43% QoQ to Euro 190mn in 2Q08. Accordingly, higher efficiency coupled with the continuing strong Euro trend brought the bottom-line up to Euro 15.2mn in 2Q08 vs. Euro 1.7mn in 1Q08.
Please note that the significant rise in raw material prices so far this year have not been reflected in 1H08 financials as the Company was able to set purchase prices for the major cost items for the upcoming two quarters at the beginning of the year. Nevertheless, the extent to which the Company can reflect these raw material price increases to its final product prices should set the level of the negative impact of higher raw material prices on margins in 2H08.
While short FX position of the Company is reported as approx. US$103mn in financials, the Company's actual short FX position is limited with US$5mn, taking into account the FX denominated nature of the major portion of the inventories. Nevertheless, as explained above, due to nature of the operations, the Company had been carrying a long position in Euro (against US$) and so far benefited from strong Euro trend. However, in order to limit the downside risk, the Company closed almost 70% of this long position through forward contracts in July 2008.
On the balance sheet side, gross debt stood at US$70mn at the end of 1H08, indicating a gross debt to shareholders' equity ratio of 18%. Please note that net debt reached US$49mn at end of 1H08, up from US$2.5mn at the end of 1Q08, mainly due to cash dividend payment of approx. US$42.5mn at the end of May 2008.
The Company realized total investments of US$16.4mn in 1H08.
Click here for 1H08 CMB financials.
Vestel Dis Ticaret A.Ş., a subsidiary of Vestel Elektronik (the majority shareholder of Vestel White Goods) acquired "Vestfrost" brand which has a strong positioning and recognition in Northern European Market and Russia. The Company plans to expand "Vestfrost" brand to overall European Market and to all its product range (refrigerators, washing machines, dishwashers, ACs and ovens) as "Vestfrost" has been solely refrigerator and freezer brand.
Vestfrost was established in 1963 in Denmark. The Company entered into strategic partnership with Vestel in household appliances (white goods) in 2006. With the sale of "Vestfrost" brand to Vestel on the household appliance side, the Company continues its operations solely in the commercial freezer area.
Please note that Vestel White Goods is not directly involved in the acquisition of "Vestfrost" brand. The acquirer of the brand, Vestel Foreign Trade, a sister company, undertakes Vestel White Goods international sales. In line with further strengthening of Vestel Foreign Trade's position in the export markets through "Vestfrost" brand, Vestel White Goods revenue generation and profitability is expected to be positively affected.