Arcelik A S Unsp/Adr (ACKAY) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Ladies and gentlemen, thank you for standing by. I am Geli, your chorus call operator. Welcome and thank you for joining the Archelik conference call and live webcast to present and discuss the second quarter 2025 financial results. At this time, I would like to turn the conference over to Mr. Baris Alparslan, Chief Financial Officer, Ms. Minesh Shuleyazgan, Finance and ERM Executive Director, Ms. Delal Alver, Capital Market Compliance Senior Lead, and Mr. Sezer Ercan, Investor Relations Senior Lead. Mr. Alparslan, you may now proceed. Thank you. Good morning and good afternoon, ladies and gentlemen. Welcome to our second quarter 2025 financial results webcast. This presentation contains the company's financial information prepared according to TFRS by the application of IS-29 inflation accounting provisions. Here are the highlights of the first quarter. We generated 121.4 billion TL revenues with a gross margin of 28.4% in the second quarter, reflecting an 11.5% decline in sales year-on-year in real terms, mostly due to weak international demand and performance in Europe. In Turkey, domestic demand was steady, whereas we have seen a nominal growth but a real decline due to relatively unfavorable product mix and pricing. International demand remained weak except in Africa and Middle East region and Pakistan market. Demand for MDA6 improved in the second quarter where we managed to gain market share despite the challenging environment. Our OPEX sales ratio remained at 27% in the second quarter. Lower sales eased the impact of the savings in operating expenses as part of our restructuring efforts after Europe and MENA transactions. However, OPEX figure itself reflects an 11.2% decrease compared to the same period of last year. We recorded a significant recovery in EBIT...