Earning ₺1.5 billion sales revenue last year, Arzum’s operating profit reached ₺158.5 million with an increase of 68.4%.
Arzum Electrical Home Appliances achieved a net profit of ₺40.6 million at the end of 2022.
Arzum Electrical Home Appliances announced its financial results for 2022.
Accordingly, Arzum’s operating profit, which achieved a sales revenue of ₺1.5 billion throughout the year, increased by 68.4% and reached ₺158.5 million.
With an EBITDA (earnings before interest, depreciation and tax) of ₺170.9 million, Arzum’s shareholders’ equity exceeded ₺200 million.
Arda Altinok, Chairman of the Executive Board of Arzum, whose views were included in the statement, said, “In 2022, when the effects of the pandemic decreased, our world had to struggle with many political, military, production, raw material and energy crises. While the Ukraine-Russia war was reshaping the balances between countries, rising prices as a result of the energy, supply, raw material and chip crisis subjected all economies and sectors to a new and equally challenging test. While these developments were taking place in the world, manufacturers entered into a difficult struggle with increasing inflation, exchange rates, raw material prices and labor costs in our country.”
Altinok stated that the small household appliances sector has managed to maintain its stability and power as it is among the compulsory sectors for the continuity of life. “In this period when access to finance has become difficult, we have successfully completed the challenging year experienced in Turkiye and around the world, with our deep-rooted history of more than 55 years, our agile structure and our ability to produce alternative ways to access financing with bond permits and our effective risk management capabilities. In 2022, we continued our path with determination and maintained our real growth. We have achieved the sustainable growth that we have built on the basis of our strategy in 2022 and increased our net sales.’
‘We have reached very strong sales figures in the domestic market’
Arda Altinok stated that they reached very strong sales figures in the domestic market in 2022 and said:
“We have become the second brand with a share of 10,8% by increasing our sales in the domestic market, where many domestic and global players are involved with tough competition conditions. In terms of turnover, we were among the top 6 brands with the highest market share. Our success in domestic sales lies in the fact that we read the trends of the day very well and respond to user needs and expectations with new technologies, services and products. In this direction, we introduced 71 new products to our users in 2022. We accompanied the hot air fryer trend that gave a new direction to the sector in 2022 with our new products Arzum Airtasty hot air fryers. The hot air fryer was a real opportunity for both the industry and Arzum, and we achieved very strong sales figures of approximately 20 thousand units. Airtasty became one of our best-selling products in 2022.”
‘We will take firm steps towards becoming a global brand’
Stating that they get about 11% of their sales from foreign sales, Altinok said, “We reach millions of people around the world with our technological products, which we have developed by focusing on design and innovation, with 650 products in 6 product categories: food preparation, cooking and frying, hot drink preparation, cleaning, personal care and ironing. As Arzum, we continued our overseas focus in 2022. In the coming years, we will continue to take firm steps towards becoming a global brand and take steps that will enable us to appeal to consumers in different geographies with our product range.”
Altinok stated that they have taken serious steps in line with the global strategies they determined 6 years ago and that they have gained significant momentum especially in target markets.
Stating that they quickly completed the feasibility studies in order to accelerate their global targets and to further expand their current operations in the US market, Altinok noted that they established a company in the USA as of November 2022 and that they will carry the business model they have successfully carried out in Turkiye with this company, which has 100% subsidiaries, abroad.
‘2023 will be a period in which we manage financing costs even more successfully with the focus on profitability and efficiency’
Arzum Chief Executive Officer Altinok emphasized that 2022 is a strong investment year for Arzum in terms of human resources as well, and made the following assessments:
‘In line with our global goals and growth strategies, we have made a new and strong restructuring of our management team. We switched to the CO-CEO system, which has many successful examples in the world. With this system, 3 senior executives of Arzum will each assume the chairmanship of the executive board at intervals of one year. We believe that the new system will contribute greatly to Arzum’s globalization and sustainable growth targets. We continued our human resource investments in all positions of our company. We focused on women in human resources and increased our female employee rate to 45% in Arzum. However, I would like to proudly say that the rate of women on the board of directors at Arzum is 33%. As Arzum, we were included in the ‘Women Friendly Companies Equity Index’, which is calculated as a result of the analyzes made by Borsa Istanbul Inc. in cooperation with Is Portfolio and Koc University Gender and Women’s Studies Research and Application Center (KOC-KAM) and includes companies that attach importance to gender equality. We also shared with the public, confirming at the board of directors that our Diversity and Inclusion Policy will not fall below 30% by 2030, and that our target is always to increase this rate to 50%.
In the coming years, we aim to increase our share in this big cake by placing stable and sustainable real growth at the center of our goals. In 2023, we aim to maintain our growth in global sales, maintain our R&D, design and innovation focus, continue our e-commerce and digitalization investments, and further strengthen the bond between us and our consumers. We will continue to maintain our durable business model, which consists of more than 55 years of experience, balanced product portfolio in different categories, multiple and widespread sales channels, strong innovation culture, agile product development and R&D activities, and stable financial performance in different market conditions. We will continue to make a difference in the sector with our innovative applications and products. It is one of our most important goals to maintain our leadership in small household appliances in terms of quantity. 2023 will be a period in which we manage financing costs even more successfully, with a focus on profitability and efficiency. We will continue to seize opportunities by developing new products in line with the expectations and needs of our users, and to lead the sector with the innovations and differences we offer. In order to achieve success in all our goals, our digitalization journey will continue at full speed. We will accelerate our 2023 digital transformation investments with the SAP–ERP transition.’
Source: AA / Prepared by Irem Yildiz