The results of the Bursa Chamber of Commerce and Industry (BTSO) Bursa 250 Largest Companies Survey 2023 have been announced. The net sales of the top 250 companies increased by 54.3% in 2023, reaching 1 trillion 25 billion Turkish Lira. The operating profit of the Bursa 250 Largest Companies also grew by 37.16% in 2023, reaching 96.74 billion Turkish Lira. Based on net sales, this year’s rankings saw a change at the top. Oyak Renault, with 119.3 billion Turkish Lira, took first place, while last year's leader, Tofaş, with 109.2 billion Turkish Lira, came second. Bosch ranked third with 42.4 billion Turkish Lira.
The Bursa 250 Largest Companies Survey 2023, which has been prepared by BTSO since 1997, is the longest-running and most comprehensive study on the Bursa economy. According to the results, the net sales of the Bursa 250 Largest Companies in 2022 were 664.71 billion Turkish Lira, and in 2023, they reached 1 trillion 25 billion Turkish Lira, marking a 54% increase compared to the previous year. This figure represents the highest annual net sales recorded in the last 10 years in dollar terms. In 2023, the net added value generated by the activities of the companies in the Bursa 250 Largest Companies increased by 102%, reaching 211.34 billion Turkish Lira, while the share of company profits in the added value decreased from 54% to 41%.
The 250 largest companies in Bursa achieved an export volume of 13.4 billion US dollars
In Bursa, the export figures of the 250 largest companies in 2023 were also negatively impacted by the slowing global demand. While exports of the Bursa 250 Largest Companies increased by 8.2% in 2022, in 2023, they experienced a decline of 1% compared to the previous year, reaching 13.4 billion dollars. As a result of developments in domestic demand and exports, employment in the 250 companies grew by 3.8% in 2023. In terms of sectoral distribution, the automotive supply industry leads with 63 companies. It is followed by textiles with 37 companies, food, agriculture, and livestock with 30 companies, and retail trade with 25 companies.
The net sales of the 250 largest companies in Bursa have surpassed 1 trillion Turkish Liras
BTSO Board of Directors Chairman İbrahim Burkay stated that 2023 was a challenging year due to price increases caused by high inflation in Turkey and around the world, as well as the slowdown in the global economy. Highlighting that tight monetary policies, geopolitical tensions, and protectionist measures were key factors suppressing growth throughout the year, Burkay added, "In our country, the earthquake disaster, which caused a loss of 104 billion dollars, the elections, and the shift to a more rational economic policy after the elections were determining factors. We prepared our Bursa 250 Largest Companies Survey with these conditions in mind. In a challenging year like this, where significant slowdowns occurred in global markets, world merchandise trade contracted, and financing costs rose due to high interest rates, our companies aimed to work with fewer stocks and keep production costs under control. The growth in net sales of the 250 Largest Companies was 54.3% in 2023, compared to 115.9% in the previous year. However, when adjusted for year-end consumer inflation, we observe a real increase of 1.56% in net sales and 0.24% in net sales from production."
Low Growth in Profitability
Evaluating the profitability levels, one of the key indicators in the study, President Burkay stated that the operating profit of the Bursa 250 Largest Companies increased by 37.16% in 2023, reaching 96.74 billion TL. Reminding that operating profits had seen significant increases of 137.8% in 2021 and 95.6% in 2022, President Burkay pointed out that profitability was relatively weak in 2023. He also mentioned that the ratio of operating profit to net sales decreased by 1.18 percentage points. “In 2023, the operating profit to net sales ratio was 9.43%. Another profitability indicator, earnings before interest, depreciation, and taxes (EBITDA), grew by 78.3%, reaching 192.45 billion TL. Given the market conditions and the global impact of inflation in 2023, we observe that profitability indicators, excluding EBITDA, increased at a very low rate in real terms,” he said.
Spatial Planning is the Key Point in Achieving Goals
Stating that the research sheds lighton the technological transformation in Bursa, President Burkay mentioned that the average increase in added value in dollars reached its highest level in the last 10 years in 2023. Burkay said, “The added value, which was 4.4 billion dollars in 2013, reached 8.9 billion dollars in 2023. In terms of net added value, there was a 41% increase in 2023. As the Bursa Chamber of Commerce and Industry, we emphasize that in order to further develop the added value created by our companies, we need to primarily increase production. In this context, based on the requests of our manufacturing companies, we need investment areas in Bursa that are suitable for economies of scale, allow capacity expansion, and are integrated with transportation networks. Spatial planning and new business models will be the key point in achieving our city's goals.”
Financing costs are increasing, the option of public offering should be considered
Stating that financing costs continue to be one of the most important determining factors in the profitability and financial structures of companies and sectors, President Burkay noted that the financing costs of the Bursa 250 Largest Companies increased by 81.41% to 48 billion TL in 2023. Reminding that financing costs amounted to 26.46 billion TL in the previous year, President Burkay emphasized that financing costs have increased in real terms, and stressed the need for financial planning that will reduce businesses' borrowing requirements, from working capital to active usage. Noting that the number of publicly traded companies in Bursa is very low, President Burkay said, "One of the most effective solutions to access qualified financing is going public. Today, out of the 678 companies listed on the stock exchange, only 15 are from Bursa. The companies in our Bursa 250 Largest Companies Research meet the necessary conditions for public offering in terms of growth, profitability, and sectoral trends. In this regard, the companies need to take good advantage of public offering opportunities as their financing needs will continue to rise in the coming years." Burkay also stated that BTSO is focusing on alternative financing models to implement large-scale projects that the city's economy requires, and that they have been conducting value-added work in sectors through venture capital investment funds (VCIF).
Our Companies Demonstrated Strong Effort
President Burkay stated that the results of the research show that the business community of Bursa has demonstrated a strong effort in line with Turkey's development goals, despite all the challenges. "On this occasion, I sincerely congratulate all our companies that add value to the economy of our city and country. As BTSO, we will continue to develop production, trade, employment, and investments, and support all our companies," he expressed.
The results of the Bursa 250 Largest Companies Research, an important reference for the Bursa economy, can also be accessed through the website www.ilk250.org.tr.
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