Yasar Holding
Yasar Holding Rejects Talking With Restructuring Advisors About Potential Debt Workout; Reports 4.8x Leverage on Sept. 30 Ahead of 2020 Bond Maturity
Thu 01/03/2019 12:39 PM
Relevant Documents:
Yasar Holdings Q3 Report
Q3 Presentation
Yasar Holding is not consulting advisors about a potential debt restructuring, the company’s investor relations officer told Reorg today. Legal and financial advisors have been circling the Turkish foods and paints producer since the company’s unsecured $250 million 8.875% 2020 bond dropped to the 60s in August, sources close said.
The company plans to release an action plan outlining how it intends to meet its financing needs at the end of the first quarter or early in the second quarter, the spokesperson said. With 250 million Turkish lire ($45.5 million) of cash on balance sheet as of Sept. 30, the company is unable to repay the bond using cash only.
Yasar's companies operate across a variety of sectors and provide products including food and beverages, paint and tissues.
Turkish corporates and eurobond issuers came under pressure in August when geopolitical tensions with the U.S. and unchecked inflation triggered a substantial decline in the value of the lira. The fall in the lira increased the negative foreign exchange impact on Yasar Holding which is 53% funded by U.S. dollars and 5% in euros, while receiving a majority of its revenue in lira.
The group booked a TRY 764 million foreign exchange loss in the third quarter, bringing net financial income and expenses to negative TRY 1 billion compared with negative TRY 280 million in the corresponding period of 2017.
The stronger dollar also impacts Yasar on the production cost side. Its paint brand DYO uses materials that are valued in dollars. The price of solvents has risen by 22% year over year, monomer is up 12% and Titanium is 23% higher.
Most other Turkish corporates, however, have recovered since the lira stabilized at below TRY 5.5 per $1 in October. Turkish household appliances group Arcelik’s unsecured $500 million 5% 2023 notes are at 92, up from 84.5/85.5 on Aug. 13.
In its third-quarter presentation, Yasar said its net leverage as of Sept. 30 was 4.8x, up from 4.6x in 2017.
Q3 Earnings
Revenue for the first nine months rose by 23.4% year over year to TRY 3.7 billion, while EBITDA increased by 49% year over year to TRY 464.7 million. Yasar managed to limit the booming cost of sales to a 20% increase in the nine-month period, resulting in gross profit of TRY 1.05 billion. EBITDA margin improved over the period to 12.5% from 10.4%.
Cash and cash equivalents at Sept. 30 amounted to TRY 249.6 million from TRY 128.6 million on June 30.
In the nine-month period to Sept. 30, net cash generated from operating activities rose by 101.3% year over year to TRY 259.4 million. Net cash used in investing increased 12.4% year over year to TRY 169.2 million and net cash from financing activities fell by 72% year over year to TRY 8.1 million.
Yasar’s total debt amounted to TRY 2.9 billion at Sept. 30 and cash was at TRY 250 million.
Yasar Holdings Q3 Report
Q3 Presentation
Yasar Holding is not consulting advisors about a potential debt restructuring, the company’s investor relations officer told Reorg today. Legal and financial advisors have been circling the Turkish foods and paints producer since the company’s unsecured $250 million 8.875% 2020 bond dropped to the 60s in August, sources close said.
The company plans to release an action plan outlining how it intends to meet its financing needs at the end of the first quarter or early in the second quarter, the spokesperson said. With 250 million Turkish lire ($45.5 million) of cash on balance sheet as of Sept. 30, the company is unable to repay the bond using cash only.
Yasar's companies operate across a variety of sectors and provide products including food and beverages, paint and tissues.
Turkish corporates and eurobond issuers came under pressure in August when geopolitical tensions with the U.S. and unchecked inflation triggered a substantial decline in the value of the lira. The fall in the lira increased the negative foreign exchange impact on Yasar Holding which is 53% funded by U.S. dollars and 5% in euros, while receiving a majority of its revenue in lira.
The group booked a TRY 764 million foreign exchange loss in the third quarter, bringing net financial income and expenses to negative TRY 1 billion compared with negative TRY 280 million in the corresponding period of 2017.
The stronger dollar also impacts Yasar on the production cost side. Its paint brand DYO uses materials that are valued in dollars. The price of solvents has risen by 22% year over year, monomer is up 12% and Titanium is 23% higher.
Most other Turkish corporates, however, have recovered since the lira stabilized at below TRY 5.5 per $1 in October. Turkish household appliances group Arcelik’s unsecured $500 million 5% 2023 notes are at 92, up from 84.5/85.5 on Aug. 13.
In its third-quarter presentation, Yasar said its net leverage as of Sept. 30 was 4.8x, up from 4.6x in 2017.
Q3 Earnings
Revenue for the first nine months rose by 23.4% year over year to TRY 3.7 billion, while EBITDA increased by 49% year over year to TRY 464.7 million. Yasar managed to limit the booming cost of sales to a 20% increase in the nine-month period, resulting in gross profit of TRY 1.05 billion. EBITDA margin improved over the period to 12.5% from 10.4%.
Cash and cash equivalents at Sept. 30 amounted to TRY 249.6 million from TRY 128.6 million on June 30.
In the nine-month period to Sept. 30, net cash generated from operating activities rose by 101.3% year over year to TRY 259.4 million. Net cash used in investing increased 12.4% year over year to TRY 169.2 million and net cash from financing activities fell by 72% year over year to TRY 8.1 million.
Yasar’s total debt amounted to TRY 2.9 billion at Sept. 30 and cash was at TRY 250 million.
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