Koç Holding second-quarter profit climbs 7.6 percent on exports
Koç Holding, Turkey’s biggest industrial conglomerate, increased its profit by 7.6 percent in the second quarter as it cut the cost of financing and increased exports.
Net income rose to 2.29 billion liras from 2.13 billion liras in the second quarter of last year, Koç said in a statement to the Istanbul Stock Exchange on Thursday.
Revenue increased 22 percent to 40.5 billion liras. Financing costs, which include borrowing to fund operations, dropped 2.8 percent to 4.23 billion liras.
Koç Holding runs some of Turkey’s largest exporting companies including household appliance maker Arçelik, which controls brand Beko, and carmaker Tofaş. It also owns Tüpraş, the country’s largest refiner of crude oil. Much of the revenue of those firms are linked to foreign currency, offering financial protection from a currency crisis that hit the economy last year.
“We have pressed on with our investments thanks to our exports and earning foreign currency for our country,” Koç Holding CEO Levent Çakıroğlu said.
Sabancı Holding, Turkey’s second-biggest industrial group, reported a lower profit for the second quarter, partly caused by a downturn at financial subsidiary Akbank. Koç Holding doesn’t own any large financial units.
Net income at Sabancı dropped an annual 23 percent to 889.2 million liras, the company said in a statement to the Istanbul Stock Exchange on Wednesday.
Koc’s first-half profit dropped an annual 18 percent to 3.01 billion liras due to a decline in net income in the first quarter of the year.