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TURPAS becomes the biggest company of ‘Turkey’s Top 500 Biggest Industry Enterprises’

Erdal Bahçıvan, the board chairman of Istanbul Chamber of Industry (ISO) presented the results of ‘’Turkey’s Top 500 Biggest Industry Enterprises (ISO 500)’’ in his press conference. Turkish Petroleum Refineries Corp. (TUPRAS) is placed on top of this list with it’s contract manufacturing sale worth 87 billion 949 million liras; Ford is placed as 2nd with 37 billion 71 million liras of sale, Toyota is placed as 3rd with 25 billion 851 million liras of sale and Oyak Renault is placed as 4th with 24 billion 635 million liras of contract manufacturing sale.  The first 4 corporation in this list have been the same since 2018.  Star Refinery participated in the ISO 500 research for the first time and is placed as 5th with 20 billion 831 million liras of contract manufacturing sale.

The total manufacturing contract sale value of 2018 ISO 500 was 878 billion liras and it increased by 16,4 percent and became 1 trillion liras in 2019; we can say that the lowest increase in the last 3 years was in 2019, when we compare  increase percentage of 2019 with 33,2 and 34,5 increase percentages of 2017 and 2018.

The exports value of ISO 500 is also increased by 2,4 percent and has become 73,5 billion dollars. There were only 409 firms exporting in the list of 30 years ago; yet, the number of firms exporting is now more than 450. The share of ISO 500 in Turkey’s industry exports has become 42 percent.

Business profit has decreased by 2,8 points

According to the research, the production share that the first 50 establishments of the list get, has maintained it’s ratio as 50 percent. Key indicators show that the business profit of 2019 ISO 500 was decreased by 2,8 points and became 8,1 percent; hence the 2018 total business profit value was 108 billion liras and it decreased to 92 billion liras in 2019.  Industry establishments could not reflect the increasing costs on the prices due to narrowing domestic demand and difficult circumstances of foreign demand; hence the prices were cut and that is the reason why there was a profit value decrease in 2019.

Earnings before Interest Taxes Depreciation and Amortization (EBITDA) has been increasing since 2013 when it was measured for the first time; yet, it was decreased to 129 billion liras in 2019.

Financing expenses decreased by 33,4 percent

The total of other ordinary income and profit value of ISO 500 is 154 billion liras while other ordinary expenses and losses are valued at 117 billion liras, hence 37 billion liras of unrelated net business income is obtained. Financing expenses’ share out of business profit decreased to 64 billion dollars with 33,4 percent of decrease. Industry establishments allocated nearly all the profit money to finance expenses in 2018, yet the pressure of finance expenses on business profit decreased in 2019.

ISO 500 share of total debt increased to 60 percent in 2015 and it has had a propensity for increase in the following years according to the source structure that reflects the borrowing and equity distribution; as a matter of fact, share of total debt increased by 1,4 point compared to 2018 and became 68,4 percent in 2019. Financial debts also increased by 23,7 percent and became 406 billion liras.

Even though the acceleration rate of financial debts decreased compared to 2019; in real terms, it’s propensity for increase is still maintained. The positive development about financial debts is the recovery of maturity structure. The short-term financial debt share out of the total debt share decreased to 41,4 percent in 2019; this share was 41,9 in 2017 and 45,3 in 2018. The funded financial debts share also increased to 58,6 percent; since many short-term financial debts was converted to funded loans with the 2019 debt configurations.

Deferred value added tax has increased by 1,9 percent

The value added tax incidence of ISO 500 has a restricted increase this year even though it has had high ratio increases for many years. The value added tax incidence increased by 1,9 compared to 2019 and has become 10,8 billion liras. The share of fixed assets out of active assets increased to 46,3 percent in 2015 and started to decrease in following years; this share decreased to 38,8 percent in 2018 and increased to 39,1 in 2019.

The number of the ISO 500 establishments that have profits increased to 411 and the number of establishments obtaining EBITDA became 483 in 2019.

High tech industries’ share in value added tax increases from 5,3 to 6,9 percent

The low tech industries covered the biggest share of 2019 added value with 40 percent according to the added value distribution based on tech intensities; the share of medium and low tech industries decreased by 5,4 point and became 29,6 while the share of medium and high tech industries has increased to 23,5.

The number of establishments operating R&D studies decreased to 276 while R&D expenses increased greatly; ISO 500 R&D expenses increased by more than 150 percent and became 9,7 billion liras in 2019.  

The employment rate of ISO 500 increased by nearly 1 percent in 2019 and the increase in the wages was 20,5 percent; this fact shows us that ISO 500 continues contributing on employment. The number of the establishments with foreign capitals was 117 and the number of public corporation was 66 in 2019.

source: AA / translated by Bazaar Team

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