Kalekim Reports TRY 344 Million Profit

Kalekim increased its net profit for the first 6 months of the year by 86% compared to the same period of the previous year, raising its net profit from TRY 185.1 million in the first half of 2022 to TRY 343.7 million in the same period of 2023. Kalekim announced its financial results for the first period of 2023. The company, which made a strong start to the year with first-quarter figures, maintained this performance in the second quarter as well. The company's domestic sales during this period increased by 85% compared to the same period of the previous year, while foreign sales increased by 39%. Net sales in the first 6 months of the year reached TRY 1.45 billion with a 69% increase.

Haluk Alperat, CFO of Kale Holding, emphasizing that Kalekim sustained its successful performance from the first quarter of 2023 into the second quarter of the year, stated:

"We continue to strengthen our leading brand position in Turkey's building chemicals sector with new achievements in our 50th year. The steps we have taken in line with the targets we set, particularly following the public offering process, have had very positive reflections on both our production capacity and financial figures. After closing last year with success that exceeded our targets, we also made a strong financial start to this year. With the contribution of our investments and collaborations, we sustained the success we achieved in the first quarter of the year into the second quarter as well. We increased our net profit from TRY 185.1 million in the first 6 months of 2022 to TRY 343.7 million in the same period of 2023, an increase of 86%. Similarly, we increased our domestic sales by 85% and foreign sales by 39% compared to the same period of the previous year. Our EBITDA margin in the first half of the year improved by 20 basis points compared to the same period in 2022, reaching 22.9%. Our gross profit margin also improved by 40 basis points, reaching the 39% level. In addition to all this, our net sales in the first 6 months of the year reached TRY 1.45 billion with a 69% increase. In this way, we have carried our strong growth from the first quarter into the second quarter of the year." [caption id="attachment_155718" align="aligncenter"] Haluk Alperat - Timur Karaoğlu[/caption]

"With our solar energy investment, we will reduce our energy costs and further reduce our carbon footprint"

Timur Karaoğlu, General Manager of Kalekim, noting that Kalekim is moving forward with new achievements drawing on its more than half-century of experience in Turkey's building chemicals sector, stated: "As a company, we are leaving behind half a century on the path we started in 1973. In this half-century, we have accomplished many firsts and successes in our sector. Now we are taking new steps towards new firsts. Leading these efforts is our investment in clean energy for a better world and a sustainable future. We have decided to establish a solar power plant (SPP) to reduce energy costs, which have reached record prices in our country due to the pandemic and the Russia-Ukraine war, along with the effects of domestic dynamics. With the solar power plant investment we will build at the Kaleseramik Special Industrial Zone in Yerköy, Yozgat, with a total capacity of 7.19 mWp, we aim to reduce our energy costs and further reduce our carbon footprint. For the solar power plant investment, which we plan to implement first to meet the group's internal needs, we have signed a turnkey contract worth USD 6.05 million, including electrical, construction, and mechanical works. With the environmental impact assessment suitability application completed and operations planned to begin in early 2024, we will finance 70% of our solar power plant investment from long-term investment loans and 30% from our own equity. When our solar power plant comes into operation, we plan to meet approximately 50% of our branches' electricity consumption with the electricity it generates and to supply the remaining 50% to the grid. We believe that this investment, to which we attach great importance for both reducing energy costs and achieving our sustainability goals, will also be a pioneering investment in our country's green transformation in the sector. Additionally, our work on foreign investments is proceeding at full speed. With our branch in Duhok, Iraq, our country's largest export market, where establishment and registration procedures have been completed, we aim to increase our effectiveness in both the Iraq market and the Middle East market."