Diversified international glassmaker records strong performance
Sisecam’s first quarter results show that 33% of revenues were generated from flat glass, 24% from glass packaging, 22% from chemicals, 16% from (household) glassware and the remaining 6% from other operations. Total revenue increased by 18% compared to the same period in 2019 to TRY4.6 billion, while gross profit was up by 16% at TRY 1.5 billion, with a margin of 32%.
Total flat glass revenues fell by 1%, due mainly to lower sales volumes and pricing, although operations in Turkey remained relatively strong. In comparison, revenue and profitability in Europe fell due to a continuing downward trend in flat glass prices, reduced architectural glass sales volumes and a decrease in encapsulation revenue.
Higher sales volumes were recorded in Russia, while the top line contribution of Sisecam’s Indian operation was the same as Q1 2019. Manufacturing activities for architectural glass unit have been adapted as a result of the current Covid-19 crisis and necessary adjustments have been made.
Sisecam’s glass packaging division recorded a 43% revenue improvement to TRY 1.1 billion, with Turkish sales increasing by 36% thanks to higher output and improved export performance.
Sales of household glassware increased by 8% to TRY 721 million year on year, thanks largely to higher sales volumes and pricing in the domestic Turkish market, together positive international sales performance at 65% of the total. Lower gas prices at Sisecam’s Bulgarian
plant, a better product mix in Russia and Turkey and depreciation of the Turkish Lira was supportive throughout the first quarter. Capacity utilisation and inventory optimisation plans have been initiated because of changing market conditions due to Covid-19 and some lines have been stopped, especially in Europe.