Ladies and gentlemen, thank you for standing by. Good day, and welcome to Doğuş Otomotiv's first quarter 2024 earnings conference call on the 4th of June . Please note that today's call is being recorded. After the presentation, there will be a chance to ask questions. At this time, I would like to hand the call over to Mr. Kerem Talih. Please go ahead, sir.
Thank you very much, Tim. Dear guests, welcome to the first quarter presentation of Doğuş Otomotiv. I am Kerem Talih. I am here with my colleagues, İbrahim, Arda, and Damla, who are supporting me during the presentation process and also during the phase that you will be asking questions if you have any. It was the time that we were presenting the year-end results of 2023, that I was trying to give some insights of what is happening in the first three months of the year. We are here with the actual performance. Starting with what is new from Doğuş Otomotiv side. Initially, I am happy to be able to announce that we are enlarging our D-Marin business. Like four years ago, the business field that we have started to our operations in Göcek, in the Aegean coast of Turkey.
Last year expanded to Didim, and recently, we have officially launched and opened the third service station in Turgutreis, Bodrum. The second heading is relating to the realized dividend payment amounting to a total TRY 11.5 billion, as an output of the yearly performance of year 2023. Finally, as we have already announced to public in the disclosure platform, we got the distributorship agreement for the spare parts and services of the Wielton brand, which is a trailer brand that we have already acquired the distributorship of it.
Coming to the performance of the first quarter, there were always question marks or hesitations in the mind of everybody who is focused on Turkish automotive market, whether the performance of the year 2023 is going to be sustained or not, which was a year of an historically highest level of total market performance amounting to 1.2 million units sold. Within which, Doğuş Otomotiv, as a representative of all Volkswagen Group of brands in Turkey, has reached a level of sales performance amounting to almost 175,000 units, which was a very successful year, both in terms of sales performance and also profitability as well. At the end of first quarter, we are still ahead of our targets, in which our total sales, together with Škoda, our whole sales performance is 6% better than the previous year and has reached to a level of almost 39,000 units.
Within this, the performance of our commercial vehicle sales is really going so strong. We have expanded our yearly performance almost 50% and has almost touched a level of 9,000 units. As being the distributor of VW Group till year 1994. By the way, this year, we will be celebrating our 30th year anniversary. Without Škoda, our vehicle park has reached to a level of 2.3 million units, which is 6% compared to the previous year. I will come the influence of inflation accounting and the reconciliation of previous year's historic performance result as compared to inflation effects. Our net profit has reached a level of TRY 3 billion after tax, which is almost 50% lower than the previous year after the inflation accounting has been implemented.
Also, our income from associates, that I will come in the following pages of the presentation, is relatively lower than the previous years. In line with the decrease in profitability, our earnings per share is TRY 13.8. As I have already said, our total gross distributed dividend is TRY 11.5 billion, and our yearly stock return is more than 183%. At the end of first quarter, I can say that the market is performing much beyond expectations. As you can see in the presentation, the total performance of the market is 24% better than the previous year.
Our performance is almost kept almost at the same level, which is quite lower than the performance of the market at a level of 3%. I should double underline the fact that our strategy, as it has never been, never only or standalone market share oriented, but also profitability oriented as well. At the end of first quarter, at the end of March, as you can see, as compared to the year- end and as compared to the March 2022 figures, there has been a slight market share loss around 1.2% to 2.7%. We ended up again at the third position with a market share of 12.5%. Knowing that the presentation has been revealed beforehand, I am going to skip the detailed information relating to segment basis. Then we have a look at the brand basis allocation.
As you can see, Volkswagen passenger cars, Škoda, and our light commercial vehicle segment are the volume and the leading brands within VW family. The total of which has reached to a level of almost 40,000 units, which is 6% better than the previous year. This is the first days of June, so in a couple of days, the cumulative May market performance will be announced within this week. For the moment, we also have the statistical information of the performance of the first four months, namely April. As you can see, the total market expansion has reached to a level of 382,000 units. Our sales performance is relatively to a level of 4% lower than the previous year, amounting to almost 49,000 units.
As I tried to note, we are still, and we will be keen on sustaining our profitability, which results some loss in our market share that we are aware of this situation. Coming to the allocation on brand basis, as you can see, again, the passenger cars, for the light commercial vehicles, are still performing so strong. You can see the other brands allocation, as compared to the previous year, in the details. At the end of April, we are again, and still keeping our third position, in passenger car segment. We are following Stellantis Group and Renault Group, respectively, to a level of 13.6%. In light commercial vehicle, we are always at the third or the fourth level. This time we are following Stellantis and Ford Motor Company, respectively.
At the end, we are still keeping our market share at a level of almost 13% at the end of April this year. Coming to financial performance, our three months' revenue is, b y the way, all the figures that you are seeing reflects inflation accounting figures, both in terms of P&L and both in terms of balance sheet magnitudes. Which means all the balances, either coming from the year end or either coming from March 2023, is being indexed to the purchasing power parity as of March 2024. In that respect, our sales performance is 2% better than the previous year's first quarter. Our EBITDA is 30% lower than the previous year. In the coming pages, I will try to explain you the reconciliation between the figures of the previous year without inflation accounting and with inflation accounting.
In terms of making some comparison, we believe it will be easier for you to understand. I hope this presentation will help for your better understanding. At this point, we should also explain that following the unfortunate earthquake in the southern part of Turkey in February, in Kahramanmaraş region and in Hatay. As one of the leading automotive groups in Turkey, we have also taken the related responsibility. As they have already been publicly announced in the first platform, we are going to carry some charity expenditures. One of which is the reconstruction of the historical three buildings in Hatay province amounting to TRY 500 million , which computes somehow to 2% of our EBIT. In that respect, the balances of the first quarter of this year carries a one-time effect of such a charity expenditure, I must say.
In that respect, our net profit is 48% lower than the previous year. In the coming pages, you will see the influence of inflation accounting, respectively, but not only the inflation accounting influences, but also you are in line with the normalization in the automotive market. Gross profit margins are normalizing. Expense patterns are in line with the unfortunate adverse effects of inflation and, to a certain extent, under the influence of devaluation, respectively, I must say. Our CapEx expenditures are at the level of more than TRY 450 million . Together with the consolidation of Doğuş Real Estate, investment company, our total assets has increased 5% and has reached a level of almost TRY 82 billion , within which our working capital is also an important component of it.
In this chart, there is the reconciliation of historical nominal net profit of the previous quarter, which is carried forward to the financial net profit figures of the first quarter of this year. When you just traced the audit report or the annual report at the end of first quarter last year, our net profit was TRY 3.9 billion. In the bridge presentation, the blue ones are the increases and the yellow one is the decrease effects of the figures. The inflation coefficient from March to March is 68%. All the performance is indexed and has contributed to an expansion in profitability amounting to TRY 2.6 billion. At the end of March last year, the 95% shares of Doğuş Real Estate investment trust company has been bought, but their privileged shares had not been acquired yet. In that respect, the consolidation was not made.
But knowing that at the last quarter of, s orry, in the beginning of, when was it?
Last quarter of 2023.
Yeah. In the last quarter of 2023, the privileged shares have been acquired. In that respect, in the consolidated financial statements, TRY 311 billion profit, positive profit contribution is stemming from the consolidation of Doğuş Real Estate company. Finally, TRY -1.1 billion is a negative influence stemming from inflation accountings because, as you may know, in terms of balance sheets, in companies with a strong shareholding structure, indexation of the retained earnings and accumulated gain and loss and capital, so on and so forth, is generating, unfortunately, inflation loss. Indexation of asset values, both in terms of inventory, fixed assets, and subsidiaries and associates, the indexation is generating income output.
We have a strong balance sheet in terms of assets, but considering that the stock turnover in the name of inventories is quite high, that is why our inventories are not generating sufficient income coming from inflation accounting that would be enough to eliminate the adverse effects of inflation accounting effects stemming from the indexation of equity. In that respect, the net influence of it is TRY 1.1 billion. At the end, if I am clear enough in explaining this a bit complex structure, our historical performance, which used to be TRY 3.9 billion, is now in our comparative financial statements, TRY 5.7 billion. In this page, the opening balance is again the same: TRY 5.7 billion in the total of the first two charts in the presentation or columns is TRY 5.7 billion.
When we just follow respectively, our gross profitability in terms of nominal values is decreasing TRY 1.5 billion because the gross profit, as a result of the normalization conditions in profitability in the automotive sector, which is not only valid for Doğuş Otomotiv, but valid for the whole sector, is decreasing from 22% to 17%. There is a negative effect of TRY 1.5 million. Also, increase in total operational expenditures amounting to almost TRY 500 million is stemming from this charity expense, mainly. Change arising from investment activities, which is not material. But change in the contribution of affiliated businesses and partnerships is at a level of TRY 1.3 billion, which is an output of the normalization. Also, our associates and equity pickup subsidiaries are also having the adverse effects of the normalization in the automotive market.
For instance, Škoda is a good example of it. They are also having some decrease in their gross profitability. Also in vdf Group of companies, since they do also have a strong capital structure, inflation accounting is also serving to the disadvantage of their financial performance. TRY 500 additional million is net of in the changes in the monetary gain and loss. After taxation, our quarter- end financial performance is almost TRY 3 billion. Coming to margins, which is that we believe one of the most important aspects and part of our presentation relating to the sustainability of margins.
As we have always been trying to explain it, year 2023 and also year 2022 was totally exceptional years within which there is pent-up demand, but also lack of supply, which has created a market condition in Turkey in which the value of used cars are sometimes, from time to time, higher than the sales prices of new cars. Those more than 22% gross profitability is under, I would name, perfect storm conditions. But if you just consider the 10 years average of the gross profitability, we can say that it is around 10%-12%. Having a performance at a level of almost 18% at the end of first quarter of this year is a period that the market, as I was saying, is normalizing.
OpEx over sales figure has increased 3.8% to 5.2%, but only 2% of it is coming from this donation after the earthquake. EBITDA margin also should be considered, is decreasing from 19.8% to, when we eliminate this 2%, to 15.8%. Also, the influence of gross profit margin is taking role in the reconciliation of EBITDA. Our net profit margin, both in terms of the difference or the gap coming from inflation accounting as compared to the previous year, has brought us to a level of 17.1% to 8.8%. Also, we should be aware that financial expenditures are also going up in line with the increased interest rate levels in the market. Having a look at the income statement. In fact, within the presentations, I have almost explained all the important and the relevant parts as compared to the previous year.
In that respect, I am not going to add any further detail. I must relating to the financing cost, which has decreased from TRY 600 million to TRY 400 million. The average cost of financing has increased from 20% to 47%, respectively. In the next page, you can see the breakdown of our income and loss from associates. Yüce Auto, our Škoda subsidiary, is also having the adverse effects or the normalization effects of the gross profitability. As some of you may be aware, the Superb model, which was a leading model for Škoda brand not only for Turkey, but in the rest of the world, has recently been launched at the end of April, so they were not able to sell this leading model. In that respect, they have some decrease in their profitability, both in terms of margin and also the influence of inflation accounting is also there.
In vdf Servis, knowing that in their consumer finance company, the credit penetration is quite low, or to be more open, at one of the lowest levels as compared to previous periods. Also their remarketing income in vdf Fleet in this operational rental company. The used car sales revenue is below expectations, and also their strong equity position is serving for some inflation loss, which is quite important in their profitability as well. Coming to the balance sheet. At this point, I would like to emphasize that the size of the balance sheet has reached a level of TRY 81 billion, under which Doğuş Otomotiv Hizmet, our retail organization, and Doğuş Real Estate company is fully consolidated within that.
Among financial liabilities, which has decreased from TRY 12.4 billion to almost TRY 11 billion, we have paid back the first installment of the EUR 150 million worth of borrowing from three banks, amounting to almost EUR 13 million in terms of capital. That is why the total borrowing is 12% lower than the previous year. At this point, I should also note the level of inventory. At this point, I can give you the information that the average inventory level in the automotive sector is almost equal to the two months' sales performance. Having an inventory level of 11,600 units and at the end of first quarter, 15,200 units, is totally in line with our budget and expectations, which is very normal inventory level, I must say.
As you can see, in terms of financing costs, knowing that financial income from interest revenue is increasing, the net of financing cost is decreasing. Our financial expense, mainly stemming from interest expenses borrowings, has increased 30%, which is a natural output of the increase in the interest levels in terms of Turkish lira in Turkey. Our working capital is almost at the same level. At the end of March, our net cash position has turned to positive, knowing that the cumulative liquidity that is used to pay the dividend of the previous year has been disbursed in April. Receivable turnover is quite 36% better than the previous year, and inventory turnover has slightly increased to five days, and payable turnover is in line with the developments in the market conditions.
Relating to our strategy on sustainability management, I am going to skip those pages knowing that, as compared to the explanations we have made in the last meeting, there is no significant changes and not much to add in that respect. I can only say that our corporate sustainability rating score at the end of May this year is 83.6, that you can see the details within the body of our presentation. Coming to the expectations of this year. We were saying that we were planning to see the performance of the first quarter and more than that, of the first five months of the year. After knowing that the performance of the market at the end of May will be quite satisfactory, we have updated and increased our total market expectation to a level of 900,000 units.
The sales performance of Doğuş Otomotiv will be around 110,000 units, and Škoda is planning to sell 45,000 units. Total yearly performance of Volkswagen brand is expected to be or forecasted to be 150,000 units. This is the end of my presentation. Thanks for your time, for listening us. I am more than be happy to reply to your questions if you have any. Thank you very much.
Thank you. We will now move to the question and answer section. If you would like to ask a question, please press star two on your phone and wait to be prompted. If you are dialed in by web, please click ask via audio. We will give it a moment or two for the questions to come in. Just a reminder, if you have a question, please press star two on your phone. No questions at this point, maybe I will. Sorry, we have one question. No, sorry. We have a question from Okan Aydoğdu from İstanbul Portföy. Please go ahead.
Yeah. Hi. Thank you for the presentation. My only question is about the margins. It came as surprise that numbers of sales are not decreasing currently, given the fact that May numbers already published. How do you see the competition in the market for following months, given the fact you mentioned the 10 years averages around more than 10%? Would you expect to get closer to that line or not? Thank you.
You are welcome. Thank you very much for this important question. I presume that you are aware, both seeing the advertisements in television and in written media or in the digital platforms, that most of the brands in Turkey have started campaigns. As I have recently repeated once more, and as we have always been trying to emphasize, our strategy is not only based on profitability, but also based on our market share as well. We definitely have no pressure of stocks. For the moment, our current inventory level is, let's say, equals to the sales performance of one and a half months, respectively.
In that respect, knowing that the last 10 years average is 10%-12%, and at the end of first quarter, having reached to a level of 17%, we are always saying and forecasting that the normalization in the market will continue, but the profitability performance in the remaining six months of the year is expected to be again higher than the historical average profitability performance for Doğuş Otomotiv. Knowing that most of the competitors have imposed plenty of campaigns, which means, decrease in their profitability. We have just applied a couple of competitions for competition requirements. But we are totally not in need of some heavy campaign needs. Therefore, we are planning to sustain our profitability definitely beyond the performance of the historical averages. Can you hear me? Okay.
Okay. Yes, thanks. I am not seeing any more questions. Maybe I can just give it a few more seconds just to see if there is any more questions. If not, perhaps I can hand over. We will just give it maybe another five, 10 seconds.
Okay. We are happy to have questions, but we are, again, conscious enough that all the questions have already been fulfilled, hopefully.
Yes. Good job, Kerem. Perhaps I can hand over to you for closing remarks.
Okay. Thank you very much again. In the name of my team, thanks for listening to us, and hope to see you again, with the outputs of the semi-annual performance of Doğuş Otomotiv Group. We wish you a pleasant day. Thanks for listening to us, and bye-bye.
That concludes the call for today. Thank you and have a nice day.