Martı GYO: Revenue Increasing While Profit Dramatically Decreases! What Is Happening?

Martı GYO Reports a 44% Increase in Revenue

Martı GYO’s latest financial data indicates a 44% increase in revenue, while net profit experienced a significant drop of 98%. The company's revenue performance reached 200 million TL, while operating profit dramatically decreased by 76%, falling to 280 million TL. This scenario raises concerns among investors.

Reasons for Profit Decline

In the nine-month balance sheet of the previous year, Martı GYO recorded a high operating profit of 1.17 billion TL, but in the same period this year, it could only achieve 27.9 million TL in profit. A large portion of the profit from the previous year came from non-operational real estate valuation. This year, however, the actual operational performance is drawing attention in the markets. The focus is not on the revenue growth but rather on the decline in profit quality.

High Debt, Low Confidence

The stock's price-to-book (P/B) ratio is set at 0.26, and trading below this level is attributed to high debt levels. The company's Net Debt/EBITDA ratio has reached a notably high level of 7.02; this means that Martı GYO can only pay off its current operational profit and debt within 7 years. This high leverage indicates that the market is avoiding this company.

Yayla Gıda and Investment Strategy

On the other hand, Yayla Gıda has taken a loan of 60 million euros from the European Bank for Reconstruction and Development (EBRD) to increase the capacity of its factory in Niğde. Both the increase in sales volume and the decline in profit are evaluated as effects of macroeconomic conditions. The company increased its sales by 30% during the nine-month period, while its operating profit grew by 17%.

Conclusion and Investor Note

Investors should pay attention to sales volume and EBITDA growth before focusing on profit loss. If investments continue and efficiency indicators improve, profitability in the future for Martı GYO and Yayla Gıda seems likely.