Net Profit Of Fortune 500 Companies At 1 Trillion

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TURKEY - The Fortune 500 Turkey 2023 survey, conducted in cooperation with Fortune Turkey and CRIF Turkey, revealed that despite these conditions, companies were able to increase their net profits significantly.

The total net profit of Fortune 500 Turkey 2023 companies increased by 77.16 per cent compared to 2022 and reached 965.8 billion TL. Thus, the net profit of Fortune 500 companies approached the 1 trillion mark.

The research results reveal that the operating profit margin of Fortune 500 companies decreased by 1.71 points in 2023 compared to the previous year, while other income and expense balance increased by 3.11 points and financing expenses by 1.67 points.

While the pre-tax profit margin of the companies decreased by 0.27 points compared to the previous year, the net profit margin of the companies, which was 6.83 percent in the previous year, increased to 7.53 percent with the effect of the 0.97 point decrease in the tax margin. Fortune 500 Turkey 2023 research reveals that while the lowest operating profit margin of the last five years was realised in 2023, the highest net profit margin was achieved.

The Fortune 500 Turkey 2023 survey clearly revealed that a differentiated balance sheet structure emerged with the introduction of inflation accounting. As a matter of fact, companies that participated in the survey and prepared their financial statements in accordance with IFRS applied inflation accounting, while companies that did not prepare their financial statements in accordance with IFRS adjusted only the relevant items of their 2023 balance sheets and did not make any adjustments in their other financial statements. The total net sales of the companies on the Fortune 500 Turkey 2023 List increased by 60.6 per cent compared to the Fortune 500 Turkey 2022 List, reaching TL 12 trillion 828 billion. However, the different application of inflation accounting brought about a differentiation in the net sales of companies. While the total net sales of Fortune 500 companies that prepared their financial statements in accordance with IFRS increased by 3.61 percent in real terms, the total net sales of companies that did not prepare their financial statements in accordance with IFRS increased by 33.53 percent in nominal terms, but contracted by 7.41 percent in real terms considering the PPI.

The 17th Fortune 500 Turkey 2023 survey, organised by Fortune Turkey and CRIF Turkey this year, ranks Turkey's 500 largest companies according to their net sales. Within the scope of the research, companies are also ranked according to their exports, profit/loss before interest and tax, total assets and shareholders' equity. In addition to the sectoral and provincial distribution, Fortune 500 Turkey 2023, which also includes the financial performance of listed companies in detail, also includes various sub-lists created according to different criteria.

In the Fortune 500 Turkey 2023 ranking, Energy Markets Management ranked first again this year with a net sales revenue of TL 839 billion. Tüpraş (Turkish Petroleum Refineries) entered the list in second place with a sales revenue of TL 686 billion. With 504 billion TL net sales revenue, THY (Turkish Airlines) entered the list in third place, and the companies in the other top ten of the list are listed as follows: Ahlatcı Jewellery Industry and Trade, Ford Automotive Industry, Petrol Ofisi, BİM Birleşik Mağazalar, Opet, Arçelik and Shell&Turcas Petrol A.Ş.

Among the companies on the Fortune 500 Turkey 2023 List, there is a significant increase in the number of companies with net sales revenues above 10 billion TL. The number of companies with net sales over 10 billion TL increased by 80 in 2023 compared to 2022 and reached 218. Last year, the sales revenue of 138 companies exceeded the 10 billion TL limit. This figure was 65 in the previous year. The number of companies with net sales above 25 billion TL increased by 26 in 2023 compared to 2022 and reached 85. This figure remained at 59 last year. While the number of companies with net sales revenues over 50 billion TL increased to 43, the number of companies with net sales revenues over 100 billion TL reached 24. In the Fortune 500 Turkey-2022 list, the number of companies with net sales revenues over 100 billion TL was 13.

The lower limit of turnover increased by 62.7 per cent compared to 2022 and reached 3 billion 621 million TL. The net sales of the 500th company, the last in the list, was 3 billion 621 million TL. In the previous year, this figure was 2 billion 225 million TL. The figure in question was 629 million TL in 2020 and only 230 million TL in 2013, 10 years ago. The Fortune 500 Turkey 2023 survey shows that companies have reached significant sizes and that they can increase their impact in the global competitive system with these scales.

In 2023, in parallel with the weakening of global trade, Turkey's total exports remained stagnant. Although it is a slightly better situation, it is seen that Fortune 500 Turkey companies are affected by this situation. As a matter of fact, the total exports of Fortune 500 companies in Turkey increased by 46.4 per cent in TL terms compared to 2022 and reached 3 trillion 118 billion TL. In dollar terms, it is seen that the total exports of Fortune 500 companies in 2023 showed a low performance with a rate of 2.1 per cent.

In addition to the increasing number of domestic investors, the financing opportunities offered by capital markets have led to an increase in companies' interest in capital markets. According to the data of the Capital Markets Association of Turkey, 52, 40, 54, 54 and 22 companies went public in 2021, 2022, 2023 and 2024, respectively. With the effect of these public offerings, the number of companies traded on Borsa Istanbul in the Fortune 500 Turkey company ranking has also increased in recent years. The number of companies in the Fortune 500 Turkey-2021 list increased to 107, 126 in the 2022 list and 138 in the 2023 list.
Thus, a historical record was broken with the highest number of BIST companies in the 17-year period since the Fortune 500 Turkey 2007 list, the first year of the Fortune 500 Turkey survey.

Despite significant improvements and increases in profitability, the employment of Fortune 500 companies in Turkey saw a limited increase last year, as in previous years. The employment of Fortune 500 companies in Turkey increased by 15.2 thousand people (1.1 per cent) from 1 million 376 thousand in 2022 to 1 million 391 thousand in 2023.

Contact: Tülay Genç | [email protected] | +31 30 799 6022

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