Dogus Otomotiv Servis ve Ticaret (DOAS) Q1 2024 earnings summary

Executive summary

• Expanded D-Marin business with a new service station in Turgutreis, Bodrum, and secured a distributorship agreement for Wielton brand spare parts and services.

• Paid a total dividend of TRY 11.5 billion based on 2023 performance, with TRY 9 billion distributed in April 2024.

• Celebrated 30th anniversary as VW Group distributor in Turkey.

• Represents 13 international brands and 14 product groups, offering a wide portfolio in automotive and related sectors.

• Operates the largest authorized dealer and service network in Turkey, with over 680 customer service points.

Financial highlights

• Q1 2024 net profit reached TRY 3 billion, down 48% year-over-year after inflation accounting.

• Revenue for Q1 2024 was TRY 34.1 billion, up 2% year-over-year.

• EBITDA declined 29%-30% year-over-year; net profit margin dropped from 17.1% to 8.8%.

• Earnings per share at TRY 13.84; yearly stock return exceeded 183%.

• Gross profit margin normalized to 17.8% from over 22% in prior years.

Outlook and guidance

• Updated 2024 total market expectation to 900,000 units.

• Company targets over 105,000 unit sales (excluding Skoda) for 2024; Volkswagen brand expected to reach 150,000 units.

• Planned investment expenditure for 2024 is TRY 4.7 billion, focusing on digitalization, renewable energy, and EV charging infrastructure.

• Profitability for the remainder of 2024 expected to remain above historical averages despite normalization.