Arçelik A.Ş., celebrating its 55th anniversary this year, announced that despite the negative economic conditions ongoing in the global market since the end of 2008, it increased its market share in countries where it is making business and that it had a net consolidated period profit of TL 503 million (and that the net income attributable to the equity holders of the parent was TL 458.4 million) and its consolidated turnover was about TL 6.6 billion. At the press conference held in Istanbul, Arçelik A.Ş. General Manager Levent Çakıroğlu commented on the performance of Arçelik, the leader of the consumer durables sector, in 2009 and announced the targets for the year 2010 and also announced the new vision of Arçelik as, ‘Respects the Globe, Respected Globally’.
Efficiency activities boosted profit
According to the financial results of 2009, Arçelik A.Ş. had a net consolidated profit of TL 503 million. Çakıroğlu stated that the most important factor in the company’s profit increase in 2009 was the increase in productivity in all processes especially in production process and that Arçelik has gained the ability to work in various geographies with its products, staff and organizational structure. “We commenced projects to develop our supply chain processes throughout 2009. We achieved improvement in the processes from raw material procurement to the delivery of the product to the end user,” said Çakıroğlu and also stated that during the process they managed to create cash generation potential thanks to their effective working capital management ability.
Çakıroğlu emphasized that the net financial liability has decreased over 60% and he added “Along with those activities that affect the profit, we have also been able to utilize the developments abroad. We have been able to utilize management skills to gain maximum benefit out of rapidly decreasing raw material costs and decreasing financing costs.”
Arçelik has increased its share in a shrinking market
Levent Çakıroğlu, stating that the negative economic developments experienced in global market has also affected household appliances sectors, explained that the demand in the global household appliances market worth 138 billion dollars decreased about 3% in 2009 compared to the previous year. Levent Çakıroğlu said that in Western Europe, one of the main markets of Arçelik, white goods sales decreased about 4% and this rate increased up to 25% during the January-October 2009 period in Eastern Europe. “Despite the negative developments experienced in global market, Our Company continued to increase its market share in 2009 in countries where we make business. We increased our market share in Western and Eastern Europe, both of which are our main markets and constitute 40% of the global household appliances market,” said Çakıroğlu and pointed out that despite the decrease in general demand; Arçelik did not experience any significant decrease in turnover in 2009 thanks to the increase in market share in their main markets, especially in Western Europe. Çakıroğlu said, “I am proud to say that we worked really hard during the harsh economic situation and that proved Arçelik to be the most remarkable company of the year 2009.”
Beko has been the brand that increased its market share most in Western Europe
It has been announced that Arçelik gained 52 percent of its consolidated turnover from international sales while approximately 80 percent of its international sales turnover was gained from the sales of the branded products in 2009. Çakıroğlu emphasized that Beko brand within the body of Arçelik A.Ş. has been the brand that realized the highest market share in Western Europe and that Beko is the leading company in terms of refrigerator, freezer and cooking appliances in the UK market. Çakıroğlu stated that Beko has increased its share in the same market about twofold and reached to the level of 16.9 percent in washing machine and said that “We achieved to increase our market share in France, Germany, Belgium, Russia, Poland, Lithuania, Croatia, and Spain with Beko brand in this severe recession period.” Çakıroğlu shared his opinion on the results of Turkey’s household appliances sector for 2009 in the conference and added that sector recessed at a rate of 4.5 percent in 2009 compared to the previous year. Çakıroğlu reminded that at the beginning of the previous year the reduction in Special Consumption Tax invigorated the sector, and stated that the growth rate of LCD and Plasma TV market, both of which are currently new in the market, has been increasing on double digit numbers and the growth rate has increased up to 30%.
“We owe our strength to our technology, and geographical and cultural diversities”
Levent Çakıroğlu stated that there are 11 manufacturing plants of Arçelik in Turkey, Romania, Russia, and China and with numerous sales companies and marketing companies that Arçelik operates, Arçelik serves more than 100 countries with a staff of around 17,000 employees; and he also added that “We owe our strength to our technology, and geographical and cultural diversities.” Levent Çakıroğlu stated that in Arçelik A.Ş. offices, 11 different languages were spoken and 14 different monetary units were used in business and with the flexibility of a multicultural workplace, they were capable of understanding the consumers worldwide and of acting according to their needs.
Arçelik A.Ş. targets 10 percent growth in 2010
Çakıroğlu emphasized that 2009 was a year of success in which the targets were achieved for Arçelik and Arçelik is still the leading company in household appliances, TV and air-conditioner markets. Çakıroğlu stated that they target a growth of 10 percent in total sales and said: “I regard 2010 as a year of optimistic outcomes and new opportunities both for the world and our country. We plan to invest about TL 800 million in our plants in Turkey within four years.” Çakıroğlu pointed out that the economic balance of the world has been formed by the developing countries and added that “Our long term strategy concentrates on markets in the developing countries.” Telling that Arçelik A.Ş. shall take a larger part in those markets through both organic growth and purchases, Çakıroğlu gave the following information about the issue: “Within the forthcoming period we will both preserve our leadership in Turkey market and also continue to increase our market share in European markets, which we think will have a slower growth. We will continue to increase our market share in Middle East and Africa region and; Asia Pacific Region with our China operation that we made improvements
after the purchasing we realized.”
New vision of Arçelik A.Ş.: “Respects the Globe, Respected Globally”
Çakıroğlu announced the new vision of Arçelik to the press members in the press conference. Having stated that Arçelik achieved its aim ‘become one of the top 10 most preferred brands in its sector in 2010’ with the BEKO brand two years ago, Çakıroğlu pointed out that Arçelik is a leading company not only in Turkey but also in global household appliances sector. Çakıroğlu stated that “Our next aim is to lead our Company to bigger aims with our new vision.” and commented on ‘Respects the Globe, Respected Globally' vision: “Within the process of rapidly changing and evolving political and economic balances, we focus on strategy and business models that will ensure our company to become one of the leading companies of the world.
Within this frame, we defined our vision, which will carry us to the future as “Respects the Globe, Respected Globally”. Our new vision is constituted by our past achievements. Our achievements in the past carried us through the esteemed place we stand now. With this confidence, we set new ambitious goals to become more successful. Within the next period, our aim is to go beyond ourselves...”
Çakıroğlu explained that ‘Respects the Globe’ means that Arçelik values people and environment and has a sense of responsibility and also stated that: “The most important factor in our vision is human. For this reason, we always give maximum importance to our costumers and stakeholders. On the other hand, as a result of the R&D studies, which have been ongoing since 1990s, Arçelik focuses on manufacturing products that are environmentally-friendly, innovative and provide higher standards of life. We, as Arçelik, believe in the importance of manufacturing environmentally-friendly products and technologies. Promotion of those kinds of products would not only be beneficial to the environment, sector and consumer but also would be beneficial to the national economy.”
Çakıroğlu pointed out that Arçelik anticipated the need for the products ensuring energy efficiency, got prepared for it and produced and placed on the market the products that have the least energy and water consumption in the world, and stated that: “The expression ‘Respects the Globe’ indicates that our activities on this area will continue assertively. Along with its magnitude in its sector, Arçelik performs many civil society initiatives - from sports to culture and art, from education to environment- which will contribute to the society not only in Turkey but also in other countries where it makes business.” Levent Çakıroğlu also mentioned the meaning of the expression ‘Respected Globally’ in the Arçelik's new vision. “Respected Globally”, because we always go beyond ourselves and aim the top. To achieve this, we will carry our esteemed place to the top; with assertive aims, innovative products and services, we will increase the reliability of our brands and we will increase our global market share.”
“We are aware of our social responsibilities”
Çakıroğlu pointed out that with its support on various areas from education to sports, from culture and art to the environment, Arçelik achieved its social responsibilities and also added that The “Standing United for Education with Arçelik” Program has helped 130 thousand children in the region in 216 public boarding elementary schools in 50 cities since 2004. Çakıroğlu stated that as a company, with their staff, authorized dealers and services they support the projects named ‘For My Country’ and ‘Vocational High Schools – Vocational Education: A Crucial Matter for the Nation’ conducted by Koç Group, and he also mentioned about the resources that Arçelik saves for sports: “We are carrying on our sponsorship in basketball with Beko brand since 2006. Beko, the main sponsor of Turkey Basketball League, is also active in abroad on this area. We were main sponsors of China FIBA Asian Basketball Championship and Poland FIBA European Basketball Championship in 2009. Our Beko brand has become the main sponsor of the World Basketball Championship, which will be held in Turkey this year, and thus has given maximum support on this area. Finally, we have undertaken the main sponsorship of the German Basketball League ‘Basketball Bundesliga’, which is one of the most important leagues in the world.