Fortune 500 Turkey 2023 Companies Near 1 Trillion Lira Net Profit

The 17th annual Fortune 500 Turkey survey, conducted by Fortune Turkey and CRIF Turkey, has revealed significant growth among Turkey's largest companies. The total net profit of the Fortune 500 Turkey 2023 companies surged to 965.8 billion lira, approaching the notable 1 trillion lira mark. The survey, which covers various aspects such as exports and employment rates, provides a comprehensive overview of the economic health of these companies.

In 2023, the net profit of the Fortune 500 Turkey 2023 companies increased by 77.2% from the previous year, reaching 965.8 billion lira. Additionally, the total net sales of the companies listed in the Fortune 500 Turkey 2023 rose by 60.6% compared to the Fortune 500 Turkey 2022 list, climbing to 12 trillion 828 billion lira. The research also highlighted changes in the companies' operating profit margins, with a 1.71-point decrease, while the other income and expenses balance increased by 3.11 points, and financing expenses rose by 1.67 points.

The companies' pre-tax profit margin fell by 0.27 points from the previous year, and a 0.97-point reduction in the tax margin contributed to the net profit margin rising to 7.53%, up from 6.83% the previous year. The Fortune 500 Turkey 2023 report indicates that despite the lowest operating profit margin in the past five years, the companies achieved the highest net profit margin.

The survey ranks Turkey's top 500 companies based on their net sales. This year, Enerji Piyasaları İşletme topped the list with a net sales revenue of 839 billion lira, followed by Tupras (Türkiye Petrol Rafineleri) with 686 billion lira in sales revenue. THY (Turk Hava Yollari) secured the third position with 504 billion lira in net sales. Other companies in the top 10 include Ahlatci Kuyumculuk Sanayi ve Ticaret, Ford Otomotiv Sanayi, Petrol Ofisi, BIM Birlesik Magazalar, Opet, Arcelik, and Shell&Turcas Petrol A.S..

The research also noted the impact of inflation accounting on the balance sheets. Companies that prepared their financial statements according to IFRS applied inflation accounting, whereas those that did not prepare their financial statements according to IFRS only adjusted relevant items for the 2023 balance sheets without making changes to other financial statements. The total net sales of companies listed in the Fortune 500 Turkey 2023 increased by 60.6%, reaching 12 trillion 828 billion lira compared to the Fortune 500 Turkey 2022 list. However, the different approaches to inflation accounting resulted in varied net sales figures. Companies that adhered to IFRS saw a real increase of 3.61%, while those that did not saw a nominal increase of 33.53%. When considering the PPI, there was a real contraction of 7.41%.

The number of companies in the Fortune 500 Turkey 2023 list with net sales exceeding 10 billion lira rose significantly to 218, up from 138 in the previous year. Companies with net sales over 25 billion lira increased to 85, from 59 the previous year, while those with net sales over 50 billion lira reached 43. Notably, the number of companies with net sales exceeding 100 billion lira increased to 24, compared to 13 in the Fortune 500 Turkey 2022 list.

The report underscores the substantial growth of these companies and their potential to enhance their influence in the global competitive landscape. In terms of exports, the total export volume of Fortune 500 Turkey companies increased by 46.4% in lira terms, reaching 3 trillion 118 billion lira in 2023. However, in dollar terms, the total exports saw a modest increase of 2.1%.

The rising number of domestic investors and the financing opportunities provided by capital markets have spurred companies' interest in public offerings. According to data from the Turkish Capital Markets Association, 52 companies went public in 2021, 40 in 2022, 54 in 2023, and 22 in the first half of 2024. This surge in public offerings increased the number of Borsa Istanbul-listed companies in the Fortune 500 Turkey ranking to 138, setting a historical record since the first Fortune 500 Turkey list in 2007.

Despite significant improvements in profitability, the employment figures among the Fortune 500 Turkey companies saw only a limited increase. The total employment of companies in the list rose by 15,200 people (1.1%), from 1.376 million in 2022 to 1.391 million in 2023.