Financial Performance

FY20 gross margin, increased by 43 bps to 35.2%. Higher NSR per unit case, limited or no increase in certain raw materials, and cost efficiencies offset unfavorable package mix and change in spare parts' amortization period. Excluding the effect of cash designation, margin expansion would have been 250 bps in FY20. If the spare parts amortization is excluded, margin expansion would have been 335 bps.

FY20 gross margin of Turkey declined by 282 bps to 39.3%. Without the cash designation impact, gross margin would have increased by 169 bps. Excluding the shortening of spare parts' useful life, gross margin would have increased by 193 bps. Cost efficiencies and higher sales prices resulted in 360 bps margin expansion to 32.2% in FY20 despite challenging conditions in our markets.

EBITDA margin, increased by 282 bps to 21.8% an all-time high margin for CCI with our commitment to revenue growth management and disciplined cost control. Turkey operation's EBITDA margin, excluding the impact ofother income/(expense) decreased by 108 bps while increased by 343 bps excluding the cash designation impact. International operation's EBITDA margin excluding the impact of other income/(expense) increased by 489 bps to 24.3%.

Non-controlling interest (minority interest), was TRY 5.4 million in 4Q20 compared to TRY 11.8 million in 4Q19.

Free cash flow, was TRY 1,987 million in FY20 vs. TRY 1,081 million in FY19. Besides solid profitability and lower capital expenditure in line with our prudent spending approach during the pandemic, exceptionally tight working capital management also resulted in the solid free cash flow generation. As a percentage of net sales revenue, net working capital was negative at 0.3% in FY20, driven mainly by a solid improvement in Turkey and Pakistan. The net working capital was also positively impacted by Iraq's classification put option as short-term liability vs. long term liability in previous periods. Excluding this impact, the net working capital to NSR ratio was 1.9% in FY20 vs. 4.1% in FY19.

Net profit, was TRY 1,232.7 million in FY20 vs. TRY 965.8 million in FY19. An increase in net income was the result of strong operating profitability and lowered net financial expenses. In 4Q20, TRY (162.9) million net loss was recorded, mainly on the back of TRY 122 million non-cash spare parts amortization adjustment and TRY 127 million non-cash Iraq put option revaluation expense.