Gülant Candaş
Vice Chairman of the Board of Directors / Batı Anadolu Group
At Batı Anadolu Group, we quickly wrote a success story, after the shareholder and management change in 2021. In the last three years, we have strengthened our financial structure by reducing the indebtedness ratio of our companies. At the end of 2021, our consolidated group revenue was 217 million dollars, and by the end of 2023, it had reached 480 million dollars. In other words, we grew more than twofold in dollar terms in just two years. When we look at the distribution of our revenue, 54% of it comes from Batıçim and Batısöke Cement, the two flagship companies of our group.
Our group, particularly Batıçim and Batısöke, transitioned to a profitable structure on a consolidated basis. Batıçim Batı Anadolu Group turned a profit for the first time in 6 years at the end of 2023 and achieved a net profit of 2 billion 55 million TL. Batısöke Cement, one of our group companies, closed 2023 with a profit for the first time in 7 years, declaring a profit of 872.5 million TL. In the first three quarters of 2024, both Batıçim and Batısöke continued to report profits. Our consolidated net profit, which was around 200 million TL in the first three quarters of 2023, doubled to over 400 million TL in the same period of 2024. Our priority in 2024 was to reduce financial debt and manage cash flow more efficiently, and we successfully achieved these goals. We closed 2024 on a positive note, in line with our expectations. In summary, our balance sheet and equity have strengthened, and our total assets have increased. Likewise, our income statement has balanced out.
We focused on growing with new investments in 2025 with companies that have transitioned to a profitable and efficient structure. Our 2025 agenda includes an investment plan of over $40 million and the public offering process of Batıliman. Our investments include a waste heat-to-electricity generation facility at Batısöke Cement, the installation of refuse-derived fuel (RDF) preparation and combustion units at our two factories, and capacity expansion investments at Batıliman.
Our agenda for 2025 includes over $40 million in planned investments
Among the upcoming investment plans of our Batı Anadolu Group is the cement grinding plant project in İzmir Aliağa. The Environmental Impact Assessment (EIA) process for the cement grinding and packaging facility investment in the Aliağa region is progressing rapidly. Currently, we have a capacity of 5 million tons, and we plan to establish a 3.5 million tons/year grinding and packaging facility on land adjacent to our warehouses in the Aliağa region. We are continuing with the project work and aim to implement this investment after the permit processes are completed. Cement is more advantageous and has higher added value than clinker in exports. Therefore, we are targeting a 7-10% growth in ton-based cement sales for 2025 compared to the previous year.
In the group’s future plans, Batıliman, which we plan to publicly offer in 2025, holds a significant place.
Our port operates in bulk cargo and general cargo transportation. While we currently have no plans for container shipping, we aim to invest in the transportation of wind turbines. The Aegean Region is producing a significant number of wind turbine towers and blades. Currently, we can load the towers (the base part) of wind turbines at Batıliman. Due to the long length of the blades, trucks cannot enter our port. With this investment, we will be able to export wind turbine blades and towers. Additionally, we plan to invest in cranes and new warehouse equipment and to fill the gap between the dock and the pier. Increasing the amount of cargo handled at the port is also among our goals.
We are considering the public offering of Batıliman, located in the Nemrut Gulf in Aliağa, in 2025. We are a port in the Aegean Region with no draft issues, and our draft is approximately 40 meters. This year, we extended our quay by 100 meters, reaching a total quay length of 390 meters. With investments in the port, we aim to achieve significant cost advantages and increase our export capacity. We want to increase our export revenue, which currently constitutes approximately 90 million dollars of our total turnover, and contribute to the regional and national economy. As part of our public offering plan, we aim to complete a significant portion of our investments and increase our dollar-based revenue from the port by 10-15% this year. We aim to expedite the public offering process. This region is very valuable, and we have further investment plans for the future.
At Batıliman, we will start our public offering process in 2025, and we aim to export wind turbine blades.
Since we took over the management, one of the key topics on our agenda has been sustainability. We shared our performance for 2022 and 2023, as well as what we have been working on and achieving, in our first sustainability report in May 2024. We are also working quickly on a sustainability report for 2025, in line with the Turkish Sustainability Reporting Standard. In addition, we have established a Waste Management Directorate and joined the Global Compact (UN Global Principles Agreement).
We are continuing our efforts to reduce emissions and lower the carbon content in clinker by exploring alternative raw materials and alternative fuels. We are also taking steps toward decarbonization in the electricity and heat energy we use. We have been producing blended cement for years, and our goal is to further increase our blended cement production capacity and reduce the share of clinker. A key aspect of our sustainability activities is alternative fuels. So far, we have used about 5% alternative fuel in our Batıçim factories, but with the new restructuring, we have organized to increase the wastederived alternative fuel substitution rate from 5% to 15%. We aim to increase this rate to 30%, and then to 50%. Solar energy investments are also part of our plans.
In conclusion, we are optimistic about 2025, anticipating that financial costs will begin to decline. In 2025, we will focus on costs, prioritize increasing our gross profit and EBITDA, and continue to emphasize cash flow. We foresee positive developments for our group, especially in the second half of the year, and we are shaping our plans accordingly.
