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- Double digit calculations
Double digit calculations
Almost one half of the 500 giant companies closed 2012 with double digit growth.
This positive picture will continue in 2013.65.5 percent of the 198 CEOs who participated in our survey were preparing to close this year with double digit growth. Increases in profitability and the number of customers will be the locomotive for this growth. No significant acceleration is expected in exports. There are no plans for acquisitions or entering new business fields. Most are planning to grow by an annual average of 15-20 percent over the next five years. If their calculations are correct, many companies will double their current volumes over the next 3-5 years.The Turkish economy grew by 3 percent in the first quarter of this year, The forecast for the year as a whole is 4 percent. All of the economic discussions are focused on whether or not this forecast will be realized. In such an environment, what kind of year the giant companies had, how they closed it and their projections for the next five years provide important clues to understanding the economy and the direction in which it is heading.
Click image to see the table.
As we leave behind the first seven months of the year, we conducted a 2013 Growth Survey of 198 CEOs. This survey produced some important messages. 65.5 percent of the 198 CEOs who participated in our survey were dreaming of closing this year with double digit growth. Half of these CEOs expect growth of 10-20 percent. 18 percent predict that they will close the year with 0-5 percent growth.
It was striking that the CEOS who were expecting growth of up to 20 percent were executives with companies that are active in the automotives, logistics, fuel and technology sectors. For example, boosted by the launch of new models during 2013, Toyota expects growth of 45 percent this year. Starpet, one of the younger players in fuels, is planning 25 percent growth by the end of the year. The company’s Board Chair Mahfuz Okalin says that at this pace they will increase their market share from 1 percent to 1.5 percent. “In addition, we are aiming to add 200 new employees to our family by the end of 2013,” he says.
WHERE IS THE GROWTH COMING FROM?
Where did growth come from during the first six months of the year and where will it come from during the second half? 30 percent of the participants in the survey said that 18 percent of the increase in turnover during the first six months of the year came from the number of customers and 14.4 percent from profitability. The comments we received from the companies that grew during the first half of the year supported the results of the survey.
Index Group CEO Erol Bilecik says that their targets for the first six months of the year were mainly related to growth in turnover, “I am happy to say that a significant proportion of our growth was turnover-based,” he says. Atlastjet CEO Sami Alan says that their growth during the first half of the year came from turnover, profitability, the number of customers, new products, new services, the number of employees and production capacity. iDO General Manager Ahmet Paksoy says that the 10 percent growth that the company achieved during the first six months of 2012 came from turnover. “This growth in turnover was the result of an increase in passenger and vehicle numbers. We secured a 5.4 percent increase in the number of passengers and a 3.9 percent rise in automobiles,” he says.~
It can be seen that some companies have achieved growth through new products and ınvestments. Yıldız Entegre Board Member Hakkı Yıldız explains that they grew during the first half of the year through new plants that came into operation. He notes that these investments resulted in an increase in production capacity, the number of employees and turnover.
NOT CLOSE TO ACQUISITION
Even though it is clear that companies have an appetite for growth this year, they do not have a similar appetite for acquisitions and mergers. 87.5 percent of the participants in the survey said that they made no move whatsoever in terms in terms of mergers or acquisitions during the first half of the year. Not does there appear to be any likelihood of movement in mergers and acquisitions during the rest of the year. 89 percent of the participants in the survey said that they had no plans in this regard.
Kütahya Porselen Companies Group President Nafi Güral explained why they currently have no plans for mergers and acquisitions as follows: “We are watching companies in Europe. But their factories are old and their brand values have been damaged. Instead of buying a company abroad and modernizing it, we prefer to produce in our own new factories and raise the value of our own brands.” If there is a possibility of an acquisition, companies’ eyes are turning to the domestic market rather than foreign ones. 73.9 percent of those who said that they would consider mergers and acquisitions said that they would look at domestic opportunities.
FIVE-YEAR GROWTH RHYTHM
The CEOs who are planning double digit growth have no intention of slowing up over the next five years. 30 percent of those who participated in the survey announced that they were targeting annual growth of 15-20 percent over the next five years, while 28 percent said that they would grow by 10-15 percent.
Coming to the companies’ individual growth targets: Ceva is planning to grow organically by an average of 20 percent over the next five years. If the economic stability continues, Numil is looking at an average annual growth rate of 20-25 percent. DYO is planning an average annual growth of 15-20 percent. Hilal Suerdem, the CEO of Kigili, which is one of the fastest players in clothing, says that they are progressing towards becoming a global brand and are planning to grow by an annual rate of 18 percent over the next five years.
Click image to see the table.
As we leave behind the first seven months of the year, we conducted a 2013 Growth Survey of 198 CEOs. This survey produced some important messages. 65.5 percent of the 198 CEOs who participated in our survey were dreaming of closing this year with double digit growth. Half of these CEOs expect growth of 10-20 percent. 18 percent predict that they will close the year with 0-5 percent growth.It was striking that the CEOS who were expecting growth of up to 20 percent were executives with companies that are active in the automotives, logistics, fuel and technology sectors. For example, boosted by the launch of new models during 2013, Toyota expects growth of 45 percent this year. Starpet, one of the younger players in fuels, is planning 25 percent growth by the end of the year. The company’s Board Chair Mahfuz Okalin says that at this pace they will increase their market share from 1 percent to 1.5 percent. “In addition, we are aiming to add 200 new employees to our family by the end of 2013,” he says.
WHERE IS THE GROWTH COMING FROM?
Where did growth come from during the first six months of the year and where will it come from during the second half? 30 percent of the participants in the survey said that 18 percent of the increase in turnover during the first six months of the year came from the number of customers and 14.4 percent from profitability. The comments we received from the companies that grew during the first half of the year supported the results of the survey.
Index Group CEO Erol Bilecik says that their targets for the first six months of the year were mainly related to growth in turnover, “I am happy to say that a significant proportion of our growth was turnover-based,” he says. Atlastjet CEO Sami Alan says that their growth during the first half of the year came from turnover, profitability, the number of customers, new products, new services, the number of employees and production capacity. iDO General Manager Ahmet Paksoy says that the 10 percent growth that the company achieved during the first six months of 2012 came from turnover. “This growth in turnover was the result of an increase in passenger and vehicle numbers. We secured a 5.4 percent increase in the number of passengers and a 3.9 percent rise in automobiles,” he says.~
It can be seen that some companies have achieved growth through new products and ınvestments. Yıldız Entegre Board Member Hakkı Yıldız explains that they grew during the first half of the year through new plants that came into operation. He notes that these investments resulted in an increase in production capacity, the number of employees and turnover.
NOT CLOSE TO ACQUISITION
Even though it is clear that companies have an appetite for growth this year, they do not have a similar appetite for acquisitions and mergers. 87.5 percent of the participants in the survey said that they made no move whatsoever in terms in terms of mergers or acquisitions during the first half of the year. Not does there appear to be any likelihood of movement in mergers and acquisitions during the rest of the year. 89 percent of the participants in the survey said that they had no plans in this regard.
Kütahya Porselen Companies Group President Nafi Güral explained why they currently have no plans for mergers and acquisitions as follows: “We are watching companies in Europe. But their factories are old and their brand values have been damaged. Instead of buying a company abroad and modernizing it, we prefer to produce in our own new factories and raise the value of our own brands.” If there is a possibility of an acquisition, companies’ eyes are turning to the domestic market rather than foreign ones. 73.9 percent of those who said that they would consider mergers and acquisitions said that they would look at domestic opportunities.
FIVE-YEAR GROWTH RHYTHM
The CEOs who are planning double digit growth have no intention of slowing up over the next five years. 30 percent of those who participated in the survey announced that they were targeting annual growth of 15-20 percent over the next five years, while 28 percent said that they would grow by 10-15 percent.
Coming to the companies’ individual growth targets: Ceva is planning to grow organically by an average of 20 percent over the next five years. If the economic stability continues, Numil is looking at an average annual growth rate of 20-25 percent. DYO is planning an average annual growth of 15-20 percent. Hilal Suerdem, the CEO of Kigili, which is one of the fastest players in clothing, says that they are progressing towards becoming a global brand and are planning to grow by an annual rate of 18 percent over the next five years.
