DESA's Net Profit for the First Half of 2023 Reaches TL 230 million

DESA Leather Industry and Trade Inc., a prominent player in the global and Turkish leather sector, has announced its financial results for the first half of 2023, reflecting an impressive operational performance and substantial increase in profitability. With the marked improvement in key financial indicators such as sales, EBITDA, net profit and net cash position, DESA has once again showcased its sustainable growth to stakeholders and shareholders alike.

DESA achieves impressive financial progress with TL 859 million in revenue in the First Half of 2023

DESA's impressive performance during the first half of 2023 was marked by robust results across exports, retail, B2B and e-commerce channels. Demonstrating 86% growth in sales compared to the same period last year, DESA’s total revenues soared to TL 859 million with a 236% jump in net profit to TL 230 million during the period. In parallel with this, the company's market capitalization has climbed by 50% since the end of 2022, reaching TL 4.407 billion as of August 4.

DESA's performance in the second quarter of 2023 continued to impress, with net sales rising by a substantial 59% compared to the same period last year to reach TL 430 million. EBITDA for the same period also performed strongly, rising by 76% to TL 118 million. This increase in operational profitability was accompanied by a 2.6 percentage point improvement in the EBITDA margin compared to the same period of last year and reaching to 27.5%. Furthermore, DESA's equity-based partnership, Samsonite JV, in which DESA has a 40% stake, has recorded a 100% annual increase in profits in the second quarter; thus, providing TL 14 million income to DESA. Thanks to robust operational profitability and the contribution of financial gains, net profit increased 308% compared to the same period of last year and reached TL 192 million.

DESA's CEO Burak Çelet highlights strong financial performance and growth vision 

Reflecting on these impressive results, Burak Çelet, the CEO of DESA Leather Industry and Trade Inc., emphasized, "DESA's financial performance in the first half of 2023 has been truly impressive. The adverse impact of the devastating earthquake which struck in the first quarter on our retail sales eased in the second quarter. Our sales surged by 86% compared to the same period last year, reaching TL 859 million. Our EBITDA margin, which stood at 12.4% in the first quarter of the year, more than doubled to reach 27.5% in Q2 2023. By maintaining vigilance against potential market volatility in the second quarter, DESA improved its net cash position and strengthened its net profit through strategic financial investments. Driven by solid operational performance and the effects of exchange rate gains, DESA’s net profit increased by an impressive 236% in the first half of 2023 to reach TL 230 million. As a result, our net cash position expanded from TL 384 million at the end of March 2023, to TL 586 million by the end of June. The remarkable 50% increase in DESA's market capitalization since the end of 2022, to TL 4.408 billion as of August 4, stands as a clear reflection of the investor confidence in our financial performance and future prospects."

DESA maintains its unwavering investment momentum

Maintaining a focus on sustained growth and forward-looking strategies, DESA is dedicated to ongoing investments. Particularly noteworthy is DESA's investment in Italy, which has garnered significant attention across European media outlets. Çelet remarked, "Our investment in Italy has attracted substantial interest, particularly within the European context. In addition to our longstanding partnerships with globally renowned luxury brands, we have attracted interest from exclusive luxury brands which had not previously engaged with us. In line with this, we commenced production on our primary line in May based on orders from our esteemed customers. Our efforts are directed towards strengthening our investments in Italy and consolidating our presence in global markets. With the current workforce of 45 individ