Good afternoon, ladies and gentlemen, and welcome to Doğuş Otomotiv's third quarter 2023 earnings conference call. At this time, all participants are in a listen-only mode. Please note also that this call is being recorded. Following the presentation, there will be a question and answer session. I will now hand over to the Doğuş Otomotiv team to begin the presentation.
Thank you very much, team. Thanks for starting the conference. I am Kerem Talih, the CFO of Doğuş Otomotiv, and I am here with my colleagues of investor relations and financial controlling. We are all welcoming you to the third quarter of financial operational results of Doğuş Otomotiv that we have recently published yesterday. We will be providing you the preliminary details beneath this financial and operational performance.
As I have always been doing so, I will do my best to keep the presentation as brief and simple as possible, considering that it has been revealed beforehand, for you to be able to put your questions, if you have any, at the end of the presentation. This time, we have just made an update in our flow of the presentation and would like to inform you relating to the new developments in Doğuş Otomotiv Group.
Starting from the distributorship of trailers, namely Wielton. Wielton is a well-known trailer company. Maybe some of you might have recalled that a couple of years ago, we had been the distributor of Krone brand for many years in Turkey, and afterwards we have made a joint venture agreement with the company and set up a factory in İzmir region. But in the crisis times of 2018 and 2019, we have separated our roads.
We have separated our roads with them, and for the last five to six years, we were not selling the complementary product of trailers as an additional product cycle to Scania brand. We have signed a new agreement with Wielton. The letter of intent has been signed, and we are proceeding the rest of the process, and we are planning to start the sales process in the beginning of next year.
On a yearly basis, of course, it will be a kind of ramp-up period, but on a yearly basis, we will be selling 500 to 600 units of trailers as a complementary product to Scania trucks. The second new development, or the new news is the license from the Energy Market Regulatory Authority to Doğuş Şarj Sistemleri. Namely, the trademark is D-Charge here. As you know, we set up the company recently in the beginning of this year, which is a kind of new initiative in Doğuş Otomotiv Group, that will, on a consolidated basis, will coordinate the electric, or that will control and manage the investment and maintenance and management phases of charging stations for electric vehicles in one hand.
We believe that this consolidated structure will definitely help us not only to sell, but also to maintain the process of electrical vehicle sales of Volkswagen Group in Turkey. Just to inform you by some figures, for the moment, we have almost 300 charging stations. Next year, we are going to add 400 more, and at the end of next year, we are going to reach a level of 700 EV charging stations in Turkey.
Considering that the project or the company is in ramping phase, next year, it will also be creating profitable results in the consolidated financial framework of Doğuş Otomotiv Group. Finally, as we have recently announced, in line with our dividend strategy, by the help of Extraordinary General Assembly meeting, which will be held at the 20th of November, we will be distributing an additional TRY 1.2 billion dividends to our shareholders.
By the addition of this figure, the total dividends which would have been paid will reach a level of TRY. 5.7 billion As a glance of the key takeaways, as you can see, the total sales performance of Volkswagen Group in Turkey, together with Škoda, has reached a level of 126,000 units with an expansion of 7%. This sales performance has brought us to a historical highest level of net profitability, which is above TRY 15 billion . Among this figure, the strategic part of our associates is strictly important. As you can see in the presentation, with an expansion to a level of almost 350%, this income level from associates has almost reached a level of TRY 2.4 billion .
As a reflection of these financial and operational outcomes, our stock return on a yearly basis has reached a level of 215%. Earnings per share in terms of Turkish lira has expanded almost 160% and reached a level of almost TRY 72 . Within that, we are still continuing. We are not only performing our sales activities, but we are also performing our capital expenditures, which is still continuing, mainly consists of some infrastructural developments, IT infrastructure, and also the new test cars, which are bought by Doğuş Otomotiv itself. Not only we made a successful job in the sales of volume brands, but also in our premium segments like Audi and Porsche, our sales performance has almost doubled itself. Knowing that the October market information has been revealed, I will just go very quickly in this part.
At the end of September, the total market has reached a level of 885%. As you can see, the expansion, both in the market and also in the Doğuş Otomotiv performance in the retail area, is 63%. You can follow the segment pages' details respectively. Within that, our volume brand is definitely, and as always, is Volkswagen passenger cars with a market share of 7.8%. In the premium segment, Audi is again ranked as the third line with a share of 26%. Our light commercial vehicle segment, we are just following the Stellantis, Ford, and Renault Group with a market share of 6.4% respectively. Coming to the performance of the recent market information in October. I'm just going to the related page.
Okay, as you can see, in our previous meetings, as you can recall, we were saying that we are expecting the total market size to reach to a level of 1 million. At the end of October, as you can see, we have almost touched to a level of 1 million. So at the end of this information, we can easily say that the total size of the market is almost going to reach to a level of 1.2 million units. Among which our sales performance, which is almost 60% better than the previous year, has reached to a level of 133,000 units together with Škoda.
When we just consider the brand-based performance, as you can see, Volkswagen passenger cars is the leading one, almost reached to a level of 60,000 units, which is followed by Škoda and Audi with an expansion of more than 80% and 90% respectively. In light commercial vehicles and sales, as you can see, the expansion is just following with the rates of more than 75%. But as important as those, as you can see, the performance in both Porsche and Scania and Cupra brands are really worth appreciation. Scania is really performing so well. So at the end of the year, we are hoping to reach to a level of more than 2,500 units. The new brand in Volkswagen family, Cupra, is started to be top in the market with a comprehensive sales performance, more than 8,000 units, respectively.
So at the end of these sales figures, we are still keeping our third position among the competition with a market share of 13.7%. This picture is almost the same for many years, that we are just following the Stellantis Group and the Renault Group, respectively. Coming to the financial area. These market and operational performance has just brought us a revenue level of more than TRY 82 billion , with a net profit of TRY 15.2 billion , which is the highest profit level in the history of Doğuş Otomotiv.
While doing so, the total assets has reached to a level of 46 billion, and the working capital has reached to a level of almost TRY 30 billion . As you can see, the expansion in the working capital and the assets are in line with the expansion of our increase in total revenue and also net profitability. Coming to margins. As we all know, and I'm totally aware that you also have questions in your minds relating to the sustainability of gross profitability, not only for Doğuş Otomotiv, but also for the whole Turkish automotive market.
But at the end of the third quarter, we have proven that we are still keen on and successful to be able to maintain this profitability level, which is computed by the sales of our new cars, plus spare parts and other activities, to a level of more than 23%, which is definitely a very successful and sustainable level. Our OpEx over sales is historically at the lowest level in history, with a level of 2.5%, considering that the revenue has expanded too much and despite the adverse effects of inflation and evaluation on our operating activities.
Considering that our sales performance and total revenue is expanding more than that, our OpEx over sales ratio is also at a very low level at the end of third quarter. Our EBITDA and EBIT margins are more than 21%, and our net profit margin has also reached a historical highest level of 18.5% in an area that we have almost touched a sales performance of more than 100,000 units. This is excluding Škoda because this is fully consolidated. I am sorry, this is an equity pick-up company, which is the sales units and sales revenue is not consolidated in our financial statements. There are talks in the market relating to the size of the automotive market and also the sustainability of margins.
Knowing that we are at the 10th of November, I can say that in overall, our sales performance, and also the gross profitability is tracked on a sustainable level. There has been a kind of normalization process that you can easily follow in the media and as per the explanations or declarations of the players in the automotive market. There has been a kind of normalization process, which is a natural output of some actions taken by the fiscal authority. Also an increase in the interest rates has led the citizens to be more keen on some investment, sorry, in some saving instruments more than buying a car. But I can definitely and easily say that the current market conditions are totally normal market conditions.
What has happened in the first three quarters itself was, as I was trying to explain in our previous meetings, was not an issue or an output or in brackets, a problem of supply, but it was a kind of uncontrolled demand issue. Normally, for the moment, I can say that the market conditions are somehow normalized in a quiet manner. For used car sales, we are all aware and seeing in the market that the prices have decreased almost to a level of 20%, which is normal, considering that the availability of new cars are definitely plenty in the market. But which, at the moment, does not create any inventory burden for us. But we are taking the related measures and actions to a degree that the competition standards require.
In this page, after this preliminary information relating to the recent structure of the market, we can have a glance at the allocation of revenue and margins. In fact, as compared to the performance of previous year, at the end of third quarter, our revenue is mainly stemming from passenger car segment, and at a level of 76%, and gross profitability is stemming from passenger segment to a level of 67%.
And gross profitability in terms of segment is 22% for passenger car segment, 26% for commercial segment, and 32% in other segments. At this point, I must note that in other segments, our spare part sales are an important component in the computation of this information. When we have a look at the quarterly performance of our P&L. Just a second, please. I just would like to turn off my WhatsApp. I am sorry for the inconvenience.
Okay, now I am back. On a quarterly basis, as we had been generating TRY 5.1 billion net profit, which is stemming from a sales performance of 35,000 units, has now turned out to be a performance of almost 38,000 units sales performance, which is 7% higher than the previous quarter, with a revenue of more than TRY 36 billion. As you can see, the performance of gross profitability, in an area that we have almost sold the same amount of cars, which is like 2,500 more. We have kept the gross profit margin again, almost to a level of 23%, within which the total operational expenditures seem to be doubled itself. But when you consider the one-time effects like the income from the sale of our Doğuş Oto Bursa agency to a current dealer in the network.
When we eliminate the sales return out of this sales transaction, the total increase in operational expenditures are in line with the increase in inflation. Here, the income from associates are an important component of our P&L, and there is an expansion of 40%, which has almost touched the level of more than TRY 900 million in the last quarter. The variance that I would like to note is the income from investing activities. It seems to be decreasing from TRY 700 million to TRY 100 million. Again, the explanation is when we eliminate the sales income of our Bursa plant, the income from investing activities is only consist of the income from Koruman Mezat transactions. After the taxation effect, we have reached one of the historical highest level of quarterly performance of TRY 6.2 billion.
In fact, the previous page was comparing on a quarterly basis, this is the yearly performance comparison. In terms of revenue, we have reached a level of consolidated TRY 82.6 billion. The consolidated gross profit margin is definitely higher than the performance of the previous year, to a level of 23.5%. We have almost touched a level of TRY 20 billion gross profitability. Our operational expenditures are at a level of TRY 2 billion. But in an area that the inflation is more than 65%-70% and the exchange rate has almost doubled itself, and in line with the increase in the employee costs and operational marketing expenditures, this is a natural output, I can say.
More important than that, I just would like to put your attention to the income from associates, that I will put it in the detail in the following pages, that our associates are really performing very well, both in terms of operational and financial perspective. As you can see, out of this profitability performance of more than TRY 50 billion, 2.3% is really a very successful output for us as well. Our financial income and costs as a net has reached a level of TRY 1.9 billion. In the next page, we will come to the details of it. I will put the preliminary information relating to it. Coming to the breakdown of the performance of our associates. The leading one is the Yüce Auto, which as you know, is the distributor of Škoda brand.
This performance has reached a level of TRY 1.1 billion . As of now, the sales performance of Škoda, both in terms of sales volume and profitability, is still on the same and right track. At the end of the year, we will be seeing very satisfactory results out of the performance of Škoda, I must say. The second leading one is VDF Servis, which is a consolidation of VDF Consumer Finance, Factoring, Insurance Brokerage, and Lease Services. This subsidiary has also assigned a very significant growth, and also in terms of profitability. The major income, which is definitely more than 900% better than the previous year, is coming mainly from the remarketing activities of the operational rental activities in financing business, but also in factoring business as well.
Just to remind, they are also performing the dealer risk and limit management of all the turnover of Doğuş Otomotiv Group in line with our dealers. TÜVTÜRK and other subsidiaries are also following respectively. When you have a look at the balance sheet, the size of the balance sheet, as compared to the end of the year, we have reached a level of more than TRY 46 billion . The increase in working capital components, namely inventories, trade receivables, and cash and cash equivalents, the expansion in those three components are in line with the increase in our sales performance, I must say. In terms of inventories, which used to be almost 9,000 units at the end of 2022, now has reached a level of 15,000 units.
If you just consider the sales performance, I can say it is even less than a required figure. In line with it, our financing, the inventory is also at a level of 12.2%, which is driving out of the 15,500 units. In the other components, the increase in financial liabilities from TRY 2.5 billion to TRY 6.7 billion is the new EUR 50 million , which was utilized for us to be able to buy the shares of Doğuş Gayrimenkul Yatırım Ortaklığı company. Respectively, the increase in the trade payables are in line with the increase in our volume, which is mainly computed by the unpaid inventory that we are keeping in the bounded area in our backyards.
As an output of the total increase in the profitability, and also knowing that the value of the sold stocks of owner's equity to a level of TRY 4 billion is also included. I'm sorry, this is just after. It was in October, not at the end of. At this point, I just would like to get support from my colleagues. Sorry. Okay. Sorry for the hesitation. By the contribution of the almost, after taxation effect, almost TRY 3 billion is also included in our equity as the total collection from the sale of our shares of 7%. Our total equity has reached a level of TRY 25 billion . Next page. As the detail of the financing costs, which has increased to a level of TRY 1.9 billion , the important component here, the exchange losses on borrowings.
This TRY 1.4 billion foreign currency loss is coming from the valuation effect of this EUR 150 million borrowing for the acquisition of Doğuş Gayrimenkul Yatırım Ortaklığı. The other important point which is worth noting is the interest expense on borrowings, which has increased 54%. I can say there is almost, in line with the Central Bank of the Republic of Türkiye policy, the average exchange interest rates, I am sorry, had created the adverse effects, even though in terms of working capital, we are carrying the same almost volume of borrowings, which is on average to a level of TRY 2.5 billion, which is almost 100% nominated by Turkish lira-based borrowings to Turkish banks in the market.
As you can see, in line with the surplus of liquidity, we are also taking the advantage of interest revenue among the liquidity that we are keeping in-house. Just having a glance at the financial performance in terms of working capital and net cash position, those expansion is totally in line with the market developments which is already being supported by the explanations I have tried to make.
We are still keeping almost the same level of turnover, but our inventory turnover is slightly, only 10 days increased as compared to the end of the year, which I can say, which is a kind of normalization process. As I have said in the beginning, the TRY 700 million worth of capital expenditures are mainly used to maintain some purchase of new test cars, IT infrastructure expenditures, and maintenance activities, respectively. Next page. Sorry. At the end, we just would like to inform you relating to the expectations.
As I just tried to explain, the total size of the market, considering that at the end of October, we have almost reached a level of 1 million. We can say that at the end of the year, it will be around 1.2 million units, and our sales performance without Škoda is expected to reach to a level of 120,000 units. For the moment, I can say it is almost more than 110,000 units. So which for the moment seems is a kind of very achievable target. When we add Škoda to a level of 30,000 to 35,000 units, total Volkswagen Group sales performance is expected to reach more than 150,000 units.
Investment expenditures will continue in the remaining last quarter of the year, that many new test cars will be renewed and there will be some infrastructural investments, mainly in the form of construction in process for our new Gebze Scania facility, plus some infrastructure investments, both for electric vehicle charging stations and information technology digitalization, and also in the form of machinery and equipment. I think I have completed the presentation on a quick manner. I hope it would be satisfactory for you. But please let us know if you have any questions. Thank you.
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 the web, you can type your question in the box provided or request to ask a voice question. We will just wait a moment or two for the questions to come in. Just a quick reminder, if you have a question, please press star two or type it in the box provided if you are connected by webcast. Thank you. I am not seeing any questions. Perhaps I can hand back for closing comments and last chance. If you have any questions, let us know.
I think that the presentation was satisfactory enough. Knowing that, I can see the list of all the participants, so I would like to thank them one by one again, once more, for their time, that they have enabled us to be able to put some supplementary information relating to the performance of our company on a consolidated manner. Thank you for listening to us and for your time. If you have any further questions, you are always please feel free to call us, myself, or Arda, our investor relations specialist, and Mr. Yetkilisi , our manager in our investor relations and myself as well. We are always more than happy to be able to help you if you have any questions. Thank you very much and have a nice weekend.
Thank you. That concludes the call for today. Thank you and have a nice day.
Bye.