What should take priority, growth in turnover or growth in profits? There is no doubt that both are very important. But, according to the prevailing circumstances, companies target prioritizing one over the other. In recent years, "profit" has clearly taken precedence. But 2013 has been characterized by targets based on growth in turnover. A total of 30 out of 42 major groups and companies have announced that they are prioritizing growth in turnover in 2013. These companies are focusing on turnover for reasons such as benefiting from economies of scale, increasing their influence on the markets and preserving market share. They believe that growth in turnover will bring profits in its wake.
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IN 2012 almost half of the 500 largest companies in Turkey closed the year with double digit growth. This picture continued in 2012. 2013 has been a year in which companies have concentrated on growth in turnover. The research we conducted has made this very clear. A total of 30 of the 42 groups and companies that participated in our survey said that they were prioritizing growth in turnover in 2013. Only 12 companies said that they were focusing on profit. So, are those who focus on turnover able to achieve their targets? Why do they focus on turnover? Is profit enough on its own for those who focus on it? Is this a periodic strategy? We sought the answers to these questions from the companies. Here are the results:
WHY DO THEY SAY TURNOVER?
The 30 companies which are focusing on turnover in 2013 include giants such as Boyner Holding, JTI, Hayat Kimya and Assan Aluminium. For these companies, increasing their turnover takes precedence over profit and other performance indicators. İmam Altınbaş, the board chair of Altınbaş, which is one of the companies which are focusing on turnover in 2013, says that they are reducing the time between purchases and sales of gold and have focused on increasing turnover in order to minimize losses resulting from changes in the gold exchange rate. JTI General Manager Bilgehan Anlaş says that turnover growth is more of a long-term
strategy. “We know that profitability will result from volume growth at the right time and economic conjuncture,” continues Anlaş. “As a result, it is important for us to monitor the optimal balance between profit and turnover.”