Çemtaş Reports Financial Loss in 2024 Amid Declining Revenues and Mixed Output Results
Çemtaş Çelik Makina Sanayi ve Ticaret A.Ş., a leading Turkish steelmaker based in Bursa, has revealed its financial and operational performance for the year 2024, with disappointing results in key financial areas. Despite a strong performance in exports, the company faced a significant downturn in overall profitability, facing both lower revenues and a net loss for the year.
Net Loss and Declining Revenues
Çemtaş reported a net loss of TRY 29.83 million ($821,300) in 2024, a stark contrast to the net profit of TRY 119.27 million in 2023. This loss highlights the challenges faced by the company in an increasingly competitive market environment. The sales revenue also declined sharply by 19.9% year-on-year, amounting to TRY 5.77 billion ($158.87 million). This decrease in revenue was attributed to a drop in steel production and a reduction in domestic market sales.
The company also experienced a decline in operating profit, which dropped to TRY 576.56 million ($15.87 million) from TRY 1.34 billion in the previous year, representing a sharp 58% decline. These results suggest the company was heavily impacted by market conditions, including rising raw material costs and demand fluctuations.
Steel Output Declines Across Key Products
Çemtaş also faced a reduction in its steel production volumes in 2024, which contributed to its financial challenges. The company’s steel billet output for the year totaled 150,157 metric tons, marking a 3% decrease compared to the previous year. Similarly, rolled steel production saw a 5% decrease, dropping to 134,859 metric tons. These reductions in production volumes reflect a slower demand for Çemtaş’ products, impacting overall profitability.
Export Sales Surge
Despite the overall financial difficulties, Çemtaş found some relief in export sales, which grew by 21% year-on-year. The company’s exports reached 42,289 metric tons, up from the previous year, signaling strong demand in international markets for Çemtaş’ products. This growth in export sales is crucial for the company’s strategy of expanding its presence in global markets.
Domestic Market Challenges
On the other hand, domestic sales faced significant challenges, as Çemtaş registered a 7% decline in sales to the domestic market, totaling 95,286 metric tons. This decrease in domestic demand for steel highlights broader economic challenges in Turkey, including slowdowns in key sectors such as construction, which often drives steel consumption.
Company Outlook and Strategic Focus
Despite these challenges, Çemtaş remains committed to expanding its global footprint. The strong performance in exports is expected to be a key area of focus for the company moving forward. Additionally, the company continues to explore new technologies and operational improvements to bolster its productivity and cost management in the coming year.
Key Takeaways:
• Çemtaş reported a net loss of TRY 29.83 million ($821,300) in 2024, compared to a net profit of TRY 119.27 million in 2023.
• The company’s sales revenue declined by 19.9%, totaling TRY 5.77 billion ($158.87 million).
• Operating profit dropped by 58%, from TRY 1.34 billion in 2023 to TRY 576.56 million ($15.87 million).
• Steel billet output decreased by 3%, reaching 150,157 metric tons in 2024.
• Rolled steel production fell by 5%, amounting to 134,859 metric tons.
• Domestic sales fell by 7%, totaling 95,286 metric tons.
• Export sales increased by 21%, totaling 42,289 metric tons.
