Istanbul Chamber of Industry (ISO) Chairman Erdal Bahçıvan, “Türkiye’s 500 largest industrial organizations 2024” research in three basic data faced with the negative results of the historical negative results, “data is in the danger of entering into a cycle away from production. he said.
Erdal Bahçıvan, who shared the results of the “Türkiye’s 500 Large Industrial Establishment 2024” research, said that the first of the research was prepared in 1968 to cover 100 companies and announced that they have announced 500 major industrial organizations since 1981.
Talking about the negativities in global economy and trade, the low growth rates in developed and developing countries, Bahçıvan drew attention to the weakening of the manufacturing sector.
Stating that global manufacturing pMI data confirmed the stagnation in the global economy, Bahçıvan said, “In September 2024, the global manufacturing, which saw the historical bottom levels with 48.7, pointed to a stagnant course throughout the year.” he said.
Bahçıvan noted that one of the most important handicaps created by the global economy last year for Turkey was slow growth in the main export markets, especially the EU, and that the tendency of normalization in commodity prices came to the forefront as a supportive factor for the economy and the increasing tightening in the disinfiation program was seriously pressing the industry.
“We are faced with historical negative results in three basic data”
When the results of the 2024 results of the ISO 500, Erdal Bahçıvan stated that they face historical negative results in three basic data and continued:
“First, the net sales of the ISO 500 has been stretched in a consecutive year for three years. Second, as we have expressed at our ISO 500 meeting for years, the fact that the industrialist has to divide a significant portion of the profit from the financing expenses has come to a much higher point this year. They had to devote almost all of them to financing expenses.
Thirdly, I would like to continue with two more data showing that profitability ratios in 2024 were far below the last 10 years average. While the profitability of the ISO 500 is at the level of 10.4 percent in the period of 2014-2023, it declined to 6.2 percent in 2024. Similarly, while sales profitability is at a level of 7.1 percent in the last 10 years, the decrease in 2.6 percent in 2024 is among the data that should be evaluated carefully last year. “
“We trust and believe in the MTP goals”
ISO Chairman of the Board of Directors Bahçıvan, the data he mentioned in the industry shows the heavy conditions of activity clearly showing, “the economy away from rational policies, while the first decisions taken, the results of this will be away from financial stability and high inflation will be warned. he said.
For this reason, Bahçıvan said that they showed the greatest patience and support for the successful Middle Term Program (MTP) to be successful and that the conditions of activity of the industry are heavier and that the ISO 500 report is an indicator of this.
“Net sales from production has been in real regret for three consecutive years”
Erdal Bahçıvan stated that the net sales of the 500 largest industrial organizations have declined in a consecutive year in a row for three years and continued as follows:
“The performance of the ISO 500 in 2024, which increases net sales from production to 8.7 trillion pounds, is less than the previous three years. When compared with the increases of the previous three years, the performance in production weakened is very clear. In the domestic and more extensive implementation of the domestic and more extension of the domestic demand has been limited to the weak performance.
Bahçıvan, the first 10 companies in the weighing of 25 percent of the weight of the ISO 500, “the first 50 organizations for a long time in the 50 percent band in 2024 in 2024. This situation reveals the importance of the scale economy. When we look at the export performance of Türkiye in the total exports of Turkey. he said.
“There is a negative picture in all profitability indicators of ISO 500”
ISO Chairman of the Board of Directors Bahçıvan, ISO 500’s share in industrial exports of 38.3 percent to 40 percent of the band, he said.
Bahçıvan said that the data in the industrial sector has fallen clearly, “Bahçıvan said,” Here, due to the weak performance in sales due to the stagnation in internal and external demand, it is necessary to emphasize that the rising costs affect the profitability of the operating profitability. İso 500 decreased to 641 billion pounds in 2024. ” he said.
Bahçıvan pointed out the decrease in the profitability of activity, the total of profits and damages before tax and the profitability of EBITDA.
“In 2024, there is a negative picture in all the profitability indicators of the ISO 500. In 2024, the number of organizations damaged according to the period of profit/loss pre -tax increased from 96 to 152 with a significant increase. It is seen that the number of revenues of the other revenues in 2024, except for the accuracy of the network, due to inflation accounting.
“Industrialists should dip the sack on qualified financing”
Erdal Bahçıvan stated that in 2024, the financing expenses of ISO 500 increased by 16 percent to 619 billion pounds below inflation and made the following statements:
“On the other hand, with the effect of weak course and rising costs in sales, the activity profit is stretched to 641 billion pounds with a harsh decline of 31.6 percent. As a result, the ratio of financing expenses to the operating profit increases from 56.9 percent to 96.6 percent. Although it reminds the problems that have been going on for years in financing issues, but as industrialists, I think that we should sink our sack to ourselves.
Because this year, the main activity profit is low, even if this ratio is higher, even if the 10 -year average is over 60 percent in the face of admit: as industrialists as we do as the most prominent issue of finance. We are distant to the financial instruments used by the whole world. We do not use tools to minimize our risks. We should open our door to different instruments used by the world by putting our hat in front of us, we will expect external support and incentives. “
“Circuming VAT Problem Continues”
Erdal Bahçıvan stated that the total debt increased by 59.8 percent in 2023 in 2023 in 2023 said that the increase in financial debts remained at a level of 38.6 percent, and that 51.5 percent growth in other debts took place.
Bahçıvan stated that the growth in the use of loans in the use of loans in the increase in loan interest rates and tightening in access to loan is slowed down, and that industrial organizations meet the net working capital needs of more with other debts.
Bahçıvan noted that the transferred VAT problem continues and made the following evaluations:
“In 2024, the VAT load of the ISO 500 has increased by 26.9 percent and approached 85 billion pounds. The increase in the increase in inflation, but we have presented a little more positive picture than in the past years, but we have defined this cycle for a long time as the industrial organizations to the state as a highly high -time. it becomes a more important burden in terms of. “
The highest share received “main metals and machinery manufacturing industry”
Bahçıvan, Chairman of the Board of Directors of the Board of Directors, stated that the sector with 20.7 percent of the sector with the highest share compared to sales in 2024 was “main metals and machinery manufacturing industry”, while it was “chemical products, plastic and rubber products” sector with 17.6 percent.
Underlining that ISO 500 data clearly shows the fact that Türkiye is in danger of entering into a cycle that moves away from production, and made the following statements:
“Breaking this, reverse. This task should be the duty of not only industrialists but everyone. Because the industrial sector and production, global tensions and protectionism rise to our country in this period. Let us not forget that a developed industrial infrastructure in this geography, where tensions are surrounded by all of us, is also vital for the defense of our country. “
