Business

Ulker: We have an $11 billion sales target and Eastern Europe is on our radar regarding investments

Murat Ulker, Chairman of the Board of Pladis, where GODIVA, DeMet’s, United Biscuits and Ulker brands are gathered, said that they have a budget for new investments and acquisitions and that they are looking for investments. Explaining that Turkey’s investments in Turkey have reached ₺3.9 billion in five years, Ulker said, “Since 2018, we have fulfilled our obligations by paying a total of $4.3 billion to all creditor banks.” Murat Ulker, who held a meeting with the press with Ulker CEO Mete Buyurgan, explained that Yildiz Holding sells companies that are not related to its main business, and said, “We sold 22 factories in different countries in 3-4 years. There are 58 left. Factories continue, and brands too.”

FACTORIES ARE NOT ENOUGH

Regarding whether they will make new purchases in 2022, Ulker said: “We have a budget. But this is an opportunity. For example, about Godiva, you asked me ‘Why did you buy Godiva’? It was being sold, we bought it from them. We have a capacity problem in Egypt and Arabia. We can’t make enough goods. Those factories are not enough. Either we go and buy a factory or we buy machinery and add it, we have to find a way to grow. There are always these opportunities. We make a budget for these, but we also have a financial budget.” Ulker CEO Mete Buyurgan also said that Eastern Europe is on their radar.

SALES DOWN WHEN THERE IS A PRICE INCREASE

Recently, exorbitant price increases in chain markets are not on the agenda. Murat Ulker said that there is no price flexibility in his own branded products and that they do not make a high price increase because they are sold for a penny when the price increases. Ulker said, “You can’t make ₺1 lira for 110 kurus. You are making ₺1.25. The man says a 25% increase, and the sales instantly drop to half.” Ulker CEO Buyurgan also stated that the drought has increased food prices, and there has been an increase in paper, plastic raw materials and container prices, and said, “These have a serious impact on the price.”

₺11 BILLION SALES TARGET

ULKER CEO Buyurgan stated that they have 9,145 direct employees and that 61% of Ulker’s total net sales come from Turkey and 39% from overseas operations and exports, and said: “The profitability of our operations in Turkey and abroad is almost equal. We plan to close 2021 with a turnover of ₺11 billion. It seems that we will meet our target in the remaining three months. As Ulker Biskuvi, we will close the year with an export of approximately $260 million. We export to more than 100 countries, mainly in the Middle East, North Africa, Iraq and Central Asia. America is around $40-45 million.” Stating that they invested $377 million in factories between 2015 and 2021, Buyurgan said, “We have purchased our most important supplier.”

Source: Sabah / Translated by Irem Yildiz

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