Key Highlights from the 2025 Financial Report (English Translation)
1. Revenue and Profitability: 2025 sales revenue increased by 57% compared to the previous year, reaching 160,698,166 TL. The company’s net profit for the period was recorded as 138,147,570 TL.
2. Strengthening Financial Structure: Past liabilities were liquidated using a loan of approximately 200 million TL. In this context, the debt to ODEA Bank was fully closed (21.9 million TL), and approximately 70 million TL in tax and SGK debts were paid.
3. Resolution of Legal Processes: Approximately 105 enforcement and legal files related to past periods were finalized with a total payment of 42 million TL, making the company’s financial structure more predictable.
4. Real Estate Valuation: The total current market value of the real estate in the company’s assets was estimated at 1,826,000,000 TL (excluding VAT) as of December 31, 2025.
5. Brand Transformation: The logo of the half-century-old “Koyunlu” brand was renewed with a modern design language that preserves its heritage. A historical emphasis was made in the color choice, switching to the “Edirne Red” tone.
6. Future Goals: For 2026, the company aims to reach an annual sales volume of 600,000 m² and to expand its dealer and store network across all 81 provinces of Turkey.
From Village Savings to Industrial Giant: 5 Surprising Takeaways from Birko’s 2025 Transformation
Can the collective pennies of a single village build a national industrial powerhouse? In the windswept “bozkır” (steppe) between Niğde and Bor, a unique experiment in social capitalism has spent half a century answering that question. Birko (Birleşik Koyunlulular Mensucat Ticaret ve Sanayi A.Ş.) was born in 1972 not from a venture capital firm, but from the pooled savings of the people of Koyunlu. Today, as the company undergoes a radical 2025 resurgence, it is proving that its “village-to-factory” DNA might be exactly what is needed to survive the modern market.
As an industrial analyst looking at the 2025 data, here are the five most surprising takeaways from Birko’s high-stakes transformation.
1. The Power of Collective Capital: A Village’s “Success Story”
The origins of Birko are the stuff of industrial legend. In 1972, the residents of Koyunlu village—both local and expatriate—organized a movement to change their regional fate. By pooling “hundreds of small savings,” they turned traditional hand-weaving into a modernized industrial force, effectively halting regional migration by providing jobs for over 1,700 people at its historical peak.
“A village’s people’s success story… small savings turning into a giant industrial facility.”
From a strategic perspective, the “Birko Model” represents a masterclass in community-based industrialization. However, the 2025 analyst view reveals a striking pivot: while the company once employed thousands, it currently operates with a lean core team of just 27 employees. This indicates a transition into a highly efficient brand and asset management entity, currently focused on scaling its massive infrastructure back to its former glory.
2. The 200 Million TL Clean Slate: A Fight for Market Survival
To understand the magnitude of Birko’s 2025 financial restructuring, one must look at the stakes: the company has been navigating Borsa Istanbul’s “Yakın İzleme Pazarı” (Watchlist), a position that signals a fight for survival. To exit this zone, leadership executed a radical “reset” of the balance sheet, securing a 200 million TL credit facility.
What stands out to any analyst is the “skin in the game.” This financing was backed by the personal guarantees of Board Chairman İzzet Okalin and shareholder Nurhan Okalin. This capital was deployed with surgical precision to clear legacy burdens:
- 21.9 million TL to ODEA Bank (finalizing a structured 33.6M TL agreement) to completely close the account.
- 70 million TL to clear the slate of tax and SGK (Social Security) arrears.
- 42 million TL to resolve 105 legal and labor-related files, including long-standing severance claims.
By clearing these hurdles, Birko has transitioned from defensive debt management to aggressive operational growth.
3. Premium Positioning: The War Against Polyester
In an era where the market is flooded with cheap, synthetic floor coverings, Birko’s product strategy is a deliberate act of defiance. The company has declared a “war against polyester,” strictly refusing to use synthetic materials. Instead, it focuses on 100% natural wool, viscose, and elyaf (fiber).
Strategically, this positions the “Koyunlu Halı” brand in the premium segment, catering to an eco-conscious and health-centric global consumer base. Key technical differentiators include:
- Doğal Kök Boya (Natural Root Dyes): Utilizing traditional methods to achieve a color depth and permanence that synthetics cannot replicate.
- High Knot Density: Engineering “High-Density” groups that offer superior durability and structural integrity for high-traffic environments.
4. The “Edirne Red” Rebrand: Bridging Fifty Years of Memory
For the first time since 1970, Birko has updated its kurumsal kimlik (corporate identity). This is a significant move for a brand that relies heavily on “heritage equity.” The 2025 rebranding effort was not a radical departure, but a bridge.
The most notable change is the adoption of “Edirne Red”—a legendary, once-lost Ottoman hue. By using this specific red, the company honors its roots in the Niğde landscape while signaling a younger, more dynamic vision. It is a psychological masterstroke: maintaining the “brand memory” of the village elders while appealing to a modern, design-focused audience.
5. Hidden Assets: The 1.8 Billion TL Real Estate Safety Net
Perhaps the most staggering figure in Birko’s 2025 valuation reports is the sheer value of its “passive” assets. While its weaving machines are the heart of the business, its land holdings in the Niğde/Koyunlu region are its fortress.
The total legal market value (Yasal pazar değeri) of the factory and surrounding lands is approximately 1.8 billion TL.
From an industrial analyst’s viewpoint, this provides a massive margin of safety. This asset base covers the company’s recent 200 million TL debt nearly nine times over. Furthermore, the company’s recent “İmar revize” (zoning revision) application to the Niğde Provincial Special Administration suggests that this 1.8 billion TL is just the baseline; the potential for future development could further transform the company’s balance sheet from industrial to a mixed-use powerhouse.
Conclusion: The Road to 2026
Birko is currently pivoting from stabilization to an aggressive nationwide expansion. The roadmap for 2026 is clear: achieving 600,000 m² in sales and establishing a dealer network across all 81 provinces, with a strategic focus on the Güneydoğu and Doğu Anadolu regions.
As Birko sheds its legacy debts and polishes its premium brand, it leaves us with a provocative question: In an age of volatile global markets, could “Village Capital”—the collective commitment of a community—be a more sustainable and resilient alternative to traditional Venture Capital? Birko’s 2025 resurgence suggests the answer is a resounding yes.
Birko Birleşik Koyunlulular Mensucat Ticaret ve Sanayi A.Ş. 2025 Activity Briefing
Executive Summary
The 2025 fiscal year represents a pivotal period of financial restructuring, brand modernization, and operational stabilization for Birko Birleşik Koyunlulular Mensucat Ticaret ve Sanayi A.Ş. Following a period of significant legacy debt and legal challenges, the company has successfully transitioned toward a more liquid and growth-oriented posture. Key performance indicators show a substantial increase in both revenue and net profit compared to the previous year.
Critical Takeaways:
- Financial Growth: Revenue reached 160.7 million TL in 2025, a significant increase from 102.4 million TL in 2024. Net profit surged to 138.1 million TL.
- Debt Liquidation: The company utilized a 150 million TL credit facility from Tera Yatırım Bankası and a 200 million TL credit line (personally guaranteed by leadership) to settle major tax, social security (SGK), and employee-related liabilities.
- Asset Strength: Real estate valuations conducted at the end of 2025 place the company’s property assets at a market value of approximately 1.826 billion TL.
- Brand Evolution: The “Koyunlu Halı” brand underwent its first kurumsal (corporate) identity refresh since 1970, introducing “Edirne Red” as a symbolic color bridging tradition and modern aesthetics.
- Strategic Shift: The company achieved its 2025 targets and is shifting its 2026 strategy toward aggressive domestic expansion, aiming for a presence in all 81 Turkish provinces.
Corporate Profile and Heritage
Birko A.Ş. was established in 1972 as a unique industrial model in Turkey, founded by the collective small investments of the residents of Koyunlu village. This “success story” of local participation transformed into a major industrial entity, culminating in the establishment of the “Koyunlu Halı” factory in 1981.
- Manufacturing Focus: Based in Niğde, the company moved traditional hand-weaving skills to modern looms, significantly reducing regional emigration by providing employment (historically reaching over 1,700 employees).
- Current Human Resources: As of December 31, 2025, the company maintains an average staff of 27 personnel, operating under a professional management structure led by Chairman İzzet Okalin and Vice Chairman Tuncay Okalin.
Financial Performance Analysis (2025)
The company’s financial health improved markedly during the reporting period, characterized by asset growth and increased profitability.
Key Financial Indicators (Comparative)
| Indicator | 2024 (TL) | 2025 (TL) |
| Sales Revenue (Hasılat) | 102,366,459 | 160,698,166 |
| Gross Profit | 77,069,344 | 81,301,073 |
| Net Period Profit | 33,626,773 | 138,147,570 |
| Total Assets | 2,137,016,041 | 2,530,796,351 |
| Total Equity | 1,975,314,000 | 2,127,064,144 |
Capital Structure
- Paid-in Capital: 140,000,000 TL.
- Ownership: Nurhan Okalin holds 13.90% of the shares; 86.10% are held by other investors. The company’s shares are traded on the Borsa İstanbul (BIST) “Close Watch Market” (Yakın İzleme Pazarı).
Operational and Product Strategy
The “Koyunlu Halı” brand distinguishes itself through a commitment to natural materials and premium positioning, explicitly eschewing polyester-based production.
Product Portfolio
- 100% Natural Wool Group: Focuses on eco-friendly production, offering superior thermal and acoustic insulation.
- Natural Root Dye Collection: Uses traditional dyeing methods for high color permanence and aesthetic depth, blending craftsmanship with modern quality control.
- High-Density Durable Group: Designed for high-traffic commercial and residential areas, emphasizing structural integrity and longevity.
Sales and Branding
- Controlled Distribution: The company currently avoids direct retail chains or a broad dealership model, opting instead for selective partnerships and project-based collaborations to protect brand value and operational efficiency.
- Identity Refresh: The 2025 logo revision maintains the brand’s 50-year heritage while modernizing the design. The integration of “Edirne Red” serves as a historical reference to Ottoman aesthetics while appealing to contemporary tastes.
Strategic Debt Liquidation and Financial Restructuring
A central theme of the 2025 report is the aggressive resolution of legacy financial and legal burdens.
- Credit Utilization: Approximately 200 million TL in credit was secured to liquidate old liabilities. Chairman İzzet Okalin and shareholder Nurhan Okalin provided personal guarantees for this financing.
- Major Settlements:
- ODEA Bank: A debt of 60 million TL was restructured and settled for a total payment of approximately 33.6 million TL (including legal fees).
- Public Debts: Approximately 70 million TL was paid toward outstanding tax and SGK obligations.
- Employee Claims: 105 legal files regarding severance and labor claims from previous periods were settled with payments totaling 42 million TL.
- Tera Yatırım Bankası Agreement: A 150 million TL credit agreement was signed specifically to clear the remaining past-due public and third-party debts, ensuring the company can continue operations without the burden of overdue liabilities.
Asset Valuation and Real Estate
The company holds significant real estate assets in Niğde, which have been revalued to reflect current market conditions.
2025 Real Estate Valuations (Excluding VAT)
- Factory Building and Land (Koyunlu Village): Current market value of 501.9 million TL.
- Various Parcels (458 Ada 2-7): Current market value of 1.324 billion TL.
- Total Real Estate Portfolio: Appraised at approximately 1.826 billion TL.
The company has applied for zoning revisions (imar revize plan değişikliği) for several of these parcels to further enhance their value.
Strategic Outlook for 2026
The company has outlined a clear expansionist roadmap for the upcoming year, focusing on organizational strengthening and market penetration.
- Dealer Network Expansion: The primary goal for 2026 is to establish a presence in all 81 provinces of Turkey through a strengthened regional dealership system.
- Volume Targets: The company aims to reach an annual sales volume of 600,000 m².
- Infrastructure: Plans include establishing a regional warehouse infrastructure to support the sub-dealer network and improve logistical efficiency.
- Real Estate Development: The management intends to continue pursuing “value-adding projects” for its real estate holdings, ensuring these assets provide long-term contributions to the balance sheet.
