Dogus Otomotiv Servis ve Ticaret (DOAS) Q2 2024 earnings summary

Executive summary

• H1 2024 sales volume exceeded 83,000 units, up 4% year-over-year, with commercial vehicle sales rising over 40%.

• Net profit for H1 2024 was TRY 5.26 billion, down 58% year-over-year, mainly due to inflation accounting and normalization of gross profitability.

• Revenue for H1 2024 was TRY 75.9 billion, down 10% year-over-year.

• Market share maintained at third position with 13.7%–14.7% in passenger vehicles and 9.8% in light commercial vehicles.

• Significant sustainability achievements include a 28.5%–30% reduction in Scope 2 emissions and a 91%+ waste recycling rate.

Financial highlights

• EBITDA for H1 2024 was TRY 10.4–18.2 billion, down 43% year-over-year.

• Gross profit margin declined to 14%–18.5% from over 22%–23% year-over-year.

• Net profit margin stood at 6.9%, down from 14.8% year-over-year.

• Capital expenditures reached TRY 1.3 billion in H1, up 70% year-over-year.

• Financial liabilities as a share of equity at 23%, with net debt position rising 74% to TRY 6.8 billion.

Outlook and guidance

• Full-year 2024 market expected to reach 1 million units, with company sales target raised to 110,000 units (excluding Skoda).

• Investment expenditures projected at TRY 4.7–5 billion for the year, focusing on digitalization, electrification, and sustainability.

• Normalized EBITDA margin expected around 8% under typical market conditions.