We have made a public announcement on 24 October 2007 that a non-binding letter of intent had been signed between Vestel Elektronik Sanayi ve Ticaret A.Ş., the majority shareholder of Vestel White Goods, and Whirlpool Europe srl for commencing exclusive negotiations to establish a joint venture company in equal proportion (50%-50%) and to transfer the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.S. in Vestel White Goods to the joint venture company to be established for the purpose of strengthening commercial activities in foreign and domestic white goods markets and developing cooperation in this respect.
The talks between Vestel Elektronik and Whirlpool Europe still continue. Meanwhile, Vestel Elektronik and Whirlpool further signed a confidentiality agreement on 11 June 2008 to start the due diligence process with regards to the transfer of the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.S. in Vestel CIS (100% owned by Vestel Elektronik) to the joint venture company to be established between the parties in equal proportion (50%-50%).
Vestel CIS is a wholly-owned Russian subsidiary of Vestel Elektronik. The Company manufactures refrigerators and washing machines for the Russian and CIS markets in facilities with 85,000m2 of enclosed space. The refrigerator and washing machine plants, which went into production in 2006, have annual production capacities of 500,000 units each.
Vestel White Goods announced total revenues of Euro 132.9mn (9.3% YoY increase) and net income of Euro 1.7mn in 1Q08. Unit sales grew by 12% YoY to 1,096,846 units. Domestic unit sales grew by 18% YoY to 153,000 units from last years low base, while exports rose by 11% YoY to 943,000 units, in line with the Company targets.
Please note that in line with the change in accounting practice, all FX gains/losses on trade receivables are now reported under financial income /expense item. Nevertheless, EBITDA margin was still inflated in 1Q08 in line with the depreciation of YTL due to TL-based weighted average inventory cost accounting.
Higher FX losses (on short-FX position) caused by the depreciation of YTL depressed the bottom-line in 1Q08. While short FX position of the Company is reported as approx. US$70mn in financials, the Company did have a long FX position in fact, taking into account the FX denominated nature of the major portion of the inventories.
The significant rise in raw material prices so far this year have not been reflected in 1Q08 financials as the Company was able to set purchase prices for the major cost items for the upcoming two quarters at the beginning of the year. Nevertheless, strong Euro/$ parity (as the Company is long in Euros) and the extent to a which the Company can reflect these raw material price increases to its final product prices should alleviate the negative impact on margins in the coming periods.
On the balance sheet side, gross debt stood at US$82mn at the end of 1Q08, indicating a gross debt to shareholders equity ratio of 21%. Please note that net debt declined to US$2.5mn from US$10mn at year-end in line with continuing improvement on the working capital side.
The Company realized total investments of US$6.87mn in 1Q08.
Click here for 1Q08 CMB financials.
The Board of Directors of Vestel White Goods decided to propose 0.2711 YTL gross dividend per share to the General Assembly to be distributed on the date set by the General Assembly (to be held on 28 May 2008). The total amount to be distributed comes up to US$40.9mn, indicating a dividend yield of 6.8%.
Vestel White Goods reported total revenues of US$906mn and net income of US$57mn in FY07. As being the exclusive OEM/ODM only white goods manufacturer, Vestel White Goods continues to increase its market share in the European market by capitalising on its low cost, highly efficient manufacturing capabilities that also enables the Company to provide differentiated products to its diverse customer base. Accordingly, despite the continuing appreciation of TL, and a contracting white goods market at home, total unit sales still increased by 12% YoY while revenues recorded a 6% growth in Euro terms in 2007.
Click here for FY07 update.
Vestel White Goods announced total revenues of US$679mn and net income of US$51.5mn in 9-mth07. Strong export demand arising from A-Brand Manufacturers and retailers from Europe compensated for the sluggish demand at home. Accordingly, total unit sales increased by 17% YoY while revenues recorded a 10% growth in Euro terms in 9mth-07.
Click here for 9mth-07 update.
A non-binding letter of intent has been signed on 23.10.2007 between Vestel Elektronik Sanayi ve Ticaret A.Ş., the majority shareholder of Vestel White Goods, and Whirlpool Europe srl for commencing exclusive negotiations to establish a joint venture company in equal proportion (50%-50%) and to transfer the entire shares owned by Vestel Elektronik Sanayi ve Ticaret A.S. in Vestel White Goods to the joint venture company to be established for the purpose of strengthening commercial activities in foreign and domestic white goods markets and developing cooperation in this respect.
If the deal goes through, Vestel Elektronik and Whirlpool SRL will together establish a joint-venture company in equal proportion (50%-50%). Accordingly, both parties will inject capital (in cash), proportional to their respective stakes to this newly established company. This new company will then purchase Vestel Elektronik's 72.6% stake in Vestel White Goods by paying cash.
If as a result of negotiations agreement should be reached for such cooperation, the parties will inform the public of the further developments in accordance with the applicable legislation.
Vestel White Goods announced total revenues of US$408mn and net income of US$33mn in 1H07. Strong export demand (48% YoY unit growth) arising from A-Brand Manufacturers and retailers from Europe compensated for the sluggish demand at home (negatively affected from high level of interest rates and political uncertainty). Accordingly, total unit sales and revenues increased by 29% and 15% (US$) YoY, respectively, in 1H07.
Click here for 1H07 update.
The Board of Directors of Vestel White Goods decided to propose 0.16177 YTL gross dividend per share (50% of its distributable net income) to the General Assembly to be distributed as of 21 May 2007. The total amount to be distributed comes up to US$22.1mn, indicating a dividend yield of 6.9%.
Vestel White Goods announced unconsolidated IFRS results for the quarter ended March 31, 2007. The Company announced total revenues of US$158.4mn and net income of US$16.2mn in 1Q07. Total unit sales and revenues increased by 46% and 31% YoY, respectively, in 1Q07. Meanwhile, the share of exports in total revenues reached 73% vs. 58% in 1Q06.
Click here for 1Q07 update.
Click here for FY06 update