Şişecam reported investments of TRY 838 million in the first half of 2021

Görkem Elverici
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Date: 10 August 2021

Şişecam’s net sales reached TRY 13 billion in the first half of the year

A global player in the glass and chemicals industries with production activities spanning 14 countries in four continents and with sales to more than 150 countries, Şişecam reported consolidated net sales of TRY 13 billion for the six months ended June 2021. International sales accounted for 64% of Şişecam’s total sales during this period. Capital expenditures were recorded at TRY 838 million and exports reached to USD 327 million in the first half of the year.

Şişecam CEO Görkem Elverici commented on the Company’s results: "Despite the climate of uncertainty caused by the pandemic, Şişecam delivered a strong financial performance in the first half of the year, exceeding its performance in the same period of the previous year. Şişecam continued to create value for its stakeholders with its proactive decisions and practices that generate value for its entire ecosystem. In the coming period, we aim to continue moving forward toward our global goals. We plan to take the next steps on our sustainable growth journey with our transformation projects that will render Şişecam future-ready, our investment plans, and our robust governance capabilities."

Şişecam’s 2021 first half-year consolidated net sales totaled TRY 13 billion and international sales of the Company – comprised of exports from Turkey and sales from non-Turkey facilities – accounted for 64% of total revenue. In the first half of the year, Şişecam produced 2.7 million tons of glass, 1.2 million tons of soda, and 2.5 million tons of industrial raw materials.

During this period, thanks to its proactive decisions and practices that generate value for its entire ecosystem, Şişecam achieved a strong half-year financial performance exceeding the same period of the previous year, the era just prior to and at the start of the pandemic. As evidenced by the solid results it recorded in the first half of the year, Şişecam once again demonstrated its strong corporate governance capabilities by achieving a financial performance that also exceeded the same period of 2019, the pre-pandemic period.

Despite the climate of uncertainty caused by the pandemic, we delivered a strong financial performance.

In his statement on the financial results, Şişecam CEO Görkem Elverici indicated that Şişecam created sustainable value for its entire ecosystem in the first half of 2021, a time when global pandemic-rooted extraordinary conditions sustained and in a climate marked by ongoing uncertainty.

He added: "With consolidated net sales totaling TRY 13 billion in the first half of the year, we further contributed to the macro economy and the growth of anchor industries to which we provide input with our products, investments, and employment opportunities. Şişecam successfully reached its ambitious targets in the first half of the year thanks to its robust corporate governance capabilities and agile practices. Moreover, it delivered a strong financial performance, exceeding that of the previous year which coincided with the pre-pandemic period. Şişecam recorded financial success that surpassed not only the same period of the previous year but also the half-year results of 2019, which refers prior to the outbreak of the pandemic. We will continue to conduct our business activities by leveraging our robust competencies and agility. At Şişecam, we aim to create value for all our stakeholders by modifying our business processes and plans as needed in the coming period, for which the extent of the impact of the global pandemic remains uncertain.”

Thanks to our function-based governance model, we will more effectively manage our business operations across four continents.

In its 85th anniversary year, Şişecam made one of the most important decisions in its history: To merge all of its business activities under a single roof. Görkem Elverici stated the following about the transformation initiatives that Şişecam has designed to better prepare itself for the future: "We have successfully completed the merger process. This large-scale consolidation was a crucial turning point in terms of our long-term strategies and competitive targets in global markets. Immediately afterwards, we focused on implementing transformation projects aimed at creating a more integrated, digital, optimized, operationally efficient organizational structure and building Şişecam of the future. To this end, we made a strategic decision to introduce significant changes to our governance model. At Şişecam, different business fields – such as glass packaging, glassware and chemicals – were formerly managed independently within a field of activity-based organizational structure. Now, we have a function-based organization and management approach. As a result, we no longer manage our business processes on a business line-basis, but rather based on functions, such as Sales-Marketing or Production. I firmly believe that our new organizational structure will ensure more effective and agile management across our region of operation spanning four continents in various lines of business. The experience and competencies we have gained with a focus on product groups will further expand Şişecam domain of influence."

We are reaping the rewards of our strategic decisions and best practices.

Elverici stated that Şişecam is currently reaping the rewards of its transformation efforts, digitalization practices, and strategic decisions during a time when business models have changed profoundly due to the global pandemic.

He elaborated: "As a result of the challenges accompanying it, the global pandemic offered organizations an opportunity to test their decisions and practices and revamp their structure to align with the new market conditions. During this period, Şişecam also had the opportunity to test once again its readiness for the unanticipated developments, its ability to make fast decisions, and adaptability skills. The successful projects and competencies we developed on our digitalization journey played a critical role in managing this process effectively. In addition, our strategic positioning with respect to our production activities spread across 14 countries on four continents enabled us to navigate the negative effects of the disrupted global supply chain much more easily. In the coming period, we plan to further boost the economic value we generate and our global competitive edge with investments and projects that will prepare Şişecam for the future."

We are creating value for all our stakeholders with our new investments.

Şişecam, the founder of the Turkish glass industry and a global pioneer, remains committed to making uninterrupted investments that will create value for all of its stakeholders and supporting the growth of the industries to which it provides input.

Elverici added: "Despite the climate of uncertainty and extraordinary conditions created by the global pandemic, we continued our investments without interruption in line with our priority to meet our customers’ glass demand and to create value for the economies. In the coming period, we aim to create sustainable value for our stakeholders while expanding Şişecam's global footprint with strategic moves we will make in the right areas by continuing our investments with the same approach. As part of these efforts, we announced that start of our first European facility investment in glass packaging industry, in Hungary. We expect this greenfield facility investment with a capacity of 330,000 tons to be online 2023 and to reach its full capacity by the year-end 2025. Capital expenditures focusing on increasing our existing 2 million ton flat glass production capacity in Turkey by 25 percent are also underway. We expect to achieve this goal by both improving our existing lines and investing in two new float lines."

600450 Şişecam reported investments of TRY 838 million in the first half of 2021 glassonweb.com

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