Turkey's Arcelik slides after it swings to Q3 loss, cuts outlook

Arcelik

28/10/2024 08:00

** Shares in Arcelik  ARCLK.IS  fall 5.8% after the Turkish
household appliances manufacturer cut its annual EBITDA margin
outlook and reported a bigger-than-expected loss for Q3
    ** It sees 2024 EBITDA margin of 5.8% to 6.0%, vs previous
forecast of around 6.5%
    ** It reports Q3 net loss of 5 billion lira ($145.9 million)
vs profit of 1.24 billion lira a year ago, missing a consensus
estimate for a loss of 2 billion lira
    ** "The deviation was due to the company recording net
financial expenses above our expectations during this period,"
brokerage Halk Yatirim writes
    ** J.P.Morgan says rising interest costs, cash burn and
one-off transaction costs of about 947 million lira hurt
earnings in Q3, and expects shares to underperform after the
outlook cut
    ** JPM adds that while the management is hopeful about
improving margins and reducing capex, it doubts these efforts
will lead to a positive bottom line this year
    ** The Arcelik stock is the worst performer on Turkey's BIST
100 index  .XU100  which is slightly up

($1 = 34.2742 liras)

 (Reporting by Canan Sevgili)
 ((canan.sevgili@thomsonreuters.com))