Aselsan Increases Its Turnover by 44% in 2019

Date: Issue 98 - April 2020

The announcement of Aselsan’s 2019 financial results were made on February 11, 2020. The growth trend in the company's turnover continued to rise in 2019. Aselsan's turnover grew by 44% compared to the previous year, exceeding TL 13 billion. The amount of export delivery increased by 50% compared to the previous year and was recorded as US$ 330 million, reaching its historical peak.

In 2019, the advancement in Aselsan's profitability indicators exceeded the growth in turnover. Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) increased by 51% compared to the previous year and reached TL 2.9 billion. The EBITDA margin exceeded the 19-21% range, which the company shared for year end, reaching 21.9%. The net profit of the company was recorded as TL 3.4 billion with an increase of 45% compared to the previous year.

Strong Cash Position

Aselsan closed the year with a net cash position of TL 1.3 billion, due to the effective cash and receivable management maintained throughout 2019. The company's year-end cash also broke a historical record, reaching TL 3.5 billion. Aselsan continued to add new products to its product range in 2019 and received new orders accordingly. The volume of orders received in 2019 totalled US$ 3 billion and the total backlog was US$ 9.7 billion.

Aselsan Chairman and CEO Prof. Haluk GÖRGÜN said the following in his evaluation of the company's 2019 year-end financial results:

“We left behind a year in which we concentrated on deliveries and collections during the last months and we achieved success both in operational and financial terms. Aselsan achieved historical turnover and profitability figures as a result of its efforts both within the country and abroad. Our equities, reaching TL 13.5 billion as of the end of 2019, constituted 53% of our balance sheet and appeared as the main indicator of our sound financial structure. 2019 was also a year in which Aselsan's exports reached its peak. Aselsan, which has maximized its efficiency in international markets, is taking firm steps on its path to become a global defense industry company with 26 subsidiaries and branches, 11 of which are abroad. We have confidence that the growth trend of our country's economy will accelerate in 2020, and we anticipate that the turnover of Aselsan will increase by 40-50% next year. We believe the positive impact of both our organizational efforts and efficiency practices on profitability will noticeably be observed in 2020 and we increase our EBITDA margin guidance to 20-22%.”

Aselsan is Growing Together with its Business Partners

“We continue our activities without slowing down with the goal of meeting the needs of our security forces with national resources and becoming a reliable business partner on a global level. Aselsan continues its nationalization activities, not limited to defense but also in non-defense areas such as transportation, security, energy and healthcare. Aselsan’s most effectual power in a wide array of activities is the competent human assets that we have achieved in 45 years and our supplier companies exceeding 5,000. In 2019, we continued to support all of our small and large-scale subcontractors that we worked with, and we shared our financial means and R&D capacity with our suppliers. I am fully confident that we will achieve new successes in 2020 with the continuous efforts of our stakeholders.”