Ahmed Sherif
Research expert covering IT services and gaming hardware
Arcelik - statistics & facts
In the heart of Turkey’s industrious legacy, Arcelik, one of the leading household appliance manufacturers worldwide, emerged within the formidable Koc Holdings - Turkey’s largest industrial conglomerate. Although it consistently ranks as one of Turkey’s most valuable brands, Arcelik’s global footprint spans over 53 countries, operating through subsidiaries and employing over 41 thousand employees. Moreover, the company also boasts 33 production facilities across nine countries. Arcelik’s impressive portfolio holds multiple brands, including household names such as Beko and Grundig.
Overall, although Arcelik’s revenues have shown strong growth, the depreciation of the Turkish lira has cast its shadow over the company’s financial landscape. Although the company’s revenues appear robust when reported in euros, the underlying cost structure remains anchored in lira. Raw materials, labor, and operational expenses are priced in the local currency. As the lira weakens, these costs inflate, squeezing the company’s net profit margins.
Arcelik’s revenue soars but profit declines
Over the past few years, the company’s financial performance has consistently shown upward momentum. In 2022, Arcelik reported over 7.7 billion euros in revenue, marking a remarkable increase from the preceding year. Nonetheless, despite Arcelik’s increasing revenues, the company’s net income declined by 39 million euros in 2022 compared to the previous year. Arcelik's largest regional market is Europe, where it generated some 2.72 billion euros in revenues in 2022, while its home market of Turkey remains the company’s largest single-country market in terms of revenue. Although the company produces consumer electronics along with its home appliance offerings, it is no surprise that large home appliances are Arcelik’s most significant segment.Arcelik’s governance figures remain robust
The company’s commitment to sustainability has also been apparent in its decreased greenhouse gas (GHG) emissions and generated waste. In 2022, Arcelik saw a significant decrease in its scope 1 GHG emissions, which fell to nearly 70 thousand metric tons of carbon dioxide equivalent (mtCO2e) from 84 mtCO2e in 2021. Arcelik’s industrial waste generation across its global operations also declined in 2022, decreasing by nearly 22 thousand metric tons compared to the previous year. In terms of energy consumption, Arcelik consumed around 612 thousand megawatt hours (MWhs) globally in 2022, a notable decrease from the previous year’s peak of 668 thousand MWhs. Interestingly, renewable energy made up over 41 percent of Arcelik’s total energy consumption in 2022, a significant increase compared to only about 35 percent in 2019. Despite the notable advancements in Arcelik’s sustainability metrics in 2022, there was a significant uptick in water consumption. Arcelik’s total water consumption worldwide saw a significant increase to over 1.49 million cubic meters in 2022.Overall, although Arcelik’s revenues have shown strong growth, the depreciation of the Turkish lira has cast its shadow over the company’s financial landscape. Although the company’s revenues appear robust when reported in euros, the underlying cost structure remains anchored in lira. Raw materials, labor, and operational expenses are priced in the local currency. As the lira weakens, these costs inflate, squeezing the company’s net profit margins.
