Shares in Arcelik are down 3.54% after Turkish household appliances manufacturer reported Q2 loss
Arcelik reports Q2 net loss of 432.4 million lira ($13.04 million) compared to profit of 1.61 billion lira year ago
Tag Archives: Arçelik
Arçelik publishes its Sustainability Report
Arçelik’s commitment to sustainability is evident under the leadership of CEO Hakan Bulgurlu, a prominent figure in the global climate change dialogue. The group’s newly released Sustainability Report reflects this dedication, especially following the strategic acquisition of Beko Europe, which has positioned Arçelik as Europe’s leading brand.
The company’s “In Touch with Technology” approach is built on three foundational pillars: In Touch with the Planet, In Touch with People, and In Touch with Business. Arçelik pledges to uphold high reporting standards and maintain open and honest communication with stakeholders annually.
The 2023 Sustainability Report showcases Arçelik’s achievements throughout the year and outlines the roadmap for reaching its objectives and adding value for its stakeholders. The report provides a comprehensive overview of the company’s sustainability agenda, targets, and advancements, along with other key ESG metrics. The data and insights presented pertain to the operational period from January 1, 2023, to December 31, 2023, unless stated otherwise.https://www.bekocorporate.com/en/sustainability-report-2023/overview/
Arçelik renames its global operations under one corporate brand “Beko
Arçelik, the world’s leading manufacturer of household appliances, announced today it will rename its global operations under one international corporate brand “Beko”. Beko will remain owned by Arçelik and serve as the umbrella brand for its 22 well-known consumer brands worldwide such as Beko, Grundig, Indesit, Hotpoint, Arctic and Defy.Beko’s growth has been propelled by acquisitions and ground-breaking partnerships with leading businesses such as Singer in Bangladesh, Dawlance in Pakistan, Hitachi in Asia and Defy in South Africa. The recent creation of Beko Europe and acquisition of Whirlpool’s MENA business marked yet another pivotal milestone. With the recent closing of transactions, Beko became Number 1 home appliance business in Europe in terms of volume and operates across 45 production facilities with 55.000.Hakan Bulgurlu, CEO of Beko, comments: “The past decade has been about setting ambitious targets and taking action. We’ve focused on growth, industry transformation, and delivering value across the board – to our consumers, customers, employees, and shareholders
Arçelik increased profits by 20% in 2003
Arçelik managed to counteract the weakness of exports thanks to a boom in sales on the domestic market. The result was a stable turnover of 257 billion Turkish liras (7.3 billion euros).
The strength of internal demand (also stimulated by inflation which suggested consumers to ‘invest’ in household appliances and probably also the decline in the Turkish lira, which fell from 5 to 3 euro cents during the year, made it possible to increase margins. The result is a 20% increase in net profits from 7 to 8.4 billion Turkish lira (240 million euros at the current exchange rate).
Commenting on the results obtained in Europe, Hakan Bulgurlu , CEO of what today with the acquisition of Whirlpool EMEA is the world’s second largest appliance manufacturer by volume, claims to have strengthened its presence in European built-in appliances
Arçelik Completes Acquisition of Whirlpool’s Moroccan and UAE Subsidiaries
Arçelik, consumer brand Beko’s parent company, completes acquisition of Whirlpool’s MENA operations, marking a significant milestone in its growth strategyThrough this transaction, Arçelik now owns Whirlpool’s UAE and Morocco entities and manages Whirlpool’s MDA business operations in the MENA region
By combining its deep industry expertise with Whirlpool’s invaluable know-how, regional infrastructure and market presence, Arçelik will work to solidify and expand its footprint in the region
The brands we will offer in the MENA market through such acquisition are Whirlpool, Ariston, Indesit, Hotpoint, Hotpoint-Ariston, Bauknecht, Privileg and Ignis
Whirlpool Corporation Completes Major Milestone
Whirlpool Corporation today announced the completion of its transaction with Arçelik A.Ş (“Arcelik”). This marks a significant step in Whirlpool’s portfolio transformation and is expected to provide considerable opportunities to maximize value.
The transaction creates a new European appliance company by combining Whirlpool Corporation’s European major domestic appliance business with Arcelik’s major domestic appliance, consumer electronics, air conditioning, and small domestic appliance businesses. Whirlpool Corporation now owns 25 percent of this new entity, called Beko Europe B.V., and Arcelik owns 75 percent¹. Whirlpool Corporation is retaining ownership of InSinkErator and its EMEA KitchenAid small and major domestic appliance business. Separately, Whirlpool also completed its previously announced sale of Whirlpool’s Middle East and Africa business to Arçelik A.Ş.Beko Europe B.V. will have combined revenue of approximately €5.5² billion based on 2023 results. The company will be well-positioned to deliver value to consumers through attractive brands, sustainable manufacturing, product innovation and consumer services.
The transaction is expected to deliver more than $750 million in net present value of future cash flow value, in addition to unlocking $200-$300 million of incremental free cash flow in 2025. Additionally, Holger Gottstein and Gilles Morel, two members of Whirlpool Corporation’s Executive Committee, will be appointed to the board of directors of Beko Europe B.V.
Whirlpool Corporation will focus on its strong positions in the Americas and India, with its No. 1 share position in the major domestic appliance businesses for both North and South America. Additionally, new products, including those from the higher-margin KitchenAid small domestic appliance business, are expected to continue to be a key driver for share and profit growth
Hitachi Home Appliances relaunched in the Philippines
Beko Philippines is excited to announce that it will now oversee the distribution and after-sales services for Hitachi branded home appliances in the Philippine market. Beko Philippines will directly coordinate with Arçelik Hitachi Home Appliances, a joint venture between Arçelik and Hitachi Global Life Solutions, Inc., established in July 2021, responsible for manufacturing, selling, and servicing Hitachi branded home appliances worldwide (excluding Japan). This transition aims to ensure uninterrupted supply and enhanced services of Hitachi branded Home Appliances products for customers in the Philippines.
Domestic appliances deal cleared by the CMA
Following a provisional clearance in February, the CMA is now allowing the proposed deal between Arçelik and Whirlpool to go ahead.Arçelik and Whirlpool are two of the largest suppliers of major domestic appliances (MDAs) in the UK, including washing machines, tumble dryers, dishwashers and cooking appliances. Arçelik supplies MDAs primarily under the Beko, Blomberg and Grundig brands, and Whirlpool supplies MDAs primarily under the Indesit and Hotpoint brands.
The Competition and Markets Authority (CMA) referred the deal to a Phase 2 review after initially identifying concerns which warranted further investigation during its Phase 1 investigation.
Since then, an independent CMA panel has gathered and analysed a wide range of evidence – including seeking views from businesses and customers – in order to assess the potential impact of this deal.
The panel reviewed evidence which showed that while Arçelik and Whirlpool both have strong market positions, they will continue to face significant competition from other suppliers. This includes well known suppliers and brands such as BSH (including its Bosch and Neff brands), Haier Group (including its Hoover and Candy brands), Samsung and LG; retailers’ ‘private label’ brands such as Logik and Bush (Currys and Argos); and more recent entrants such as Hisense.
The evidence also showed that the competitive landscape has changed considerably in recent years and continues to do so. Whirlpool’s market position in MDAs has significantly declined over the last decade, and it is likely that its European MDA business will be fundamentally different in the future. At the same time, suppliers such as Haier Group and Hisense have gained market share, and it is likely that they will continue to expand. These market dynamics are supported by a range of evidence, including from internal documents, financial analysis and third parties.Arçelik will set up a new standalone business, Beko Europe B.V., to which Arçelik will contribute its European MDA and small domestic appliances businesses and Whirlpool will contribute its EMEA MDA business. On completion of the deal, Arçelik will hold c.75%, and Whirlpool will hold c.25%, of the shares in Beko Europe.
Maurizio Sberna leaves Whirlpool
Maurizio David Sberna leaves the role of Senior Director Communications, CSR & Government Relations for Europe, Middle East, Africa of Whirlpool Corporation. With the de facto green light from the English Antitrust, Sberna’s work, which arrived in Whirlpool EMEA three years ago, has come to an end: the sale of Whirlpool’s European activities to the new majority-owned company of Arçelik no longer fears obstacles.
UK competition watchdog clears Arcelik’s European deal with Whirlpool
Britain’s antitrust regulator provisionally cleared Turkish domestic appliances maker Arcelik’s opens new tab proposed purchase of Whirlpool’s opens new tab appliances business in Europe on Thursday.
The Competition and Markets Authority (CMA) said the deal was unlikely to reduce competition in the market for domestic appliances including washing machines, dishwashers and cooking appliances.
The deal, which would see Whirlpool and Arcelik’s European businesses fold into a new company, was approved by EU antitrust regulators in October.
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