Key Highlights from the 2025 Financial Reports
• Revenue and Operating Profit: Orçay recorded a total revenue of 661,593,082 TL for the 2025 fiscal year, up from 579,373,414 TL in 2024. The company achieved a gross profit of 145,264,804 TL and an operating profit of 105,238,100 TL.
• Net Loss for the Period: Despite the operating profit, the company reported a net loss of 161,395,845 TL for the year ending December 31, 2025. Management attributed the failure to meet targeted goals to the prevailing economic conjuncture.
• Major Asset Acquisition: In a significant strategic move, the Board decided to purchase land, buildings, and machinery from Of Çaysan Tarım Ürünleri Entegre Tesisleri A.Ş. for a total of 880,100,000 TL. Uniquely, this payment will be made in-kind using tea (totaling 4,000 tons) delivered between 2026 and 2028.
• Capital Structure: The company’s paid-in capital increased to 240,000,000 TL in 2025, up from 80,000,000 TL the previous year. Total equity stood at 712,390,143 TL at year-end.
• Dividend Policy: Due to the net loss incurred in the 2025 period, the company has decided not to distribute dividends.
• Financial Health Ratios: As of year-end, the company’s current ratio was 0.9245 and its debt-to-equity ratio was 2.2185. Management is actively working to reduce financial indebtedness and improve working capital by optimizing payment and collection terms.

The Future of the Brew: 5 Surprising Takeaways from Orçay’s 2025 Strategic Evolution

1. Introduction: More Than Just a Cup of Tea

In Turkey, tea is far more than a beverage; it is a foundational social ritual and a primary pillar of national identity. For the Rize region, it serves as the absolute lifeblood of the local economy. While the average consumer may only notice the steam rising from their daily glass, a massive, highly specialized industrial complex operates behind the scenes to sustain this national habit. Orçay (Ortaköy Çay Sanayi ve Ticaret A.Ş.) stands as a pivotal player in this landscape. Their 2025 strategic evolution reveals a company skillfully navigating the transition from a traditional regional manufacturer to a sophisticated, asset-rich entity ready for the global stage.

2. The Heart of a Global Powerhouse: Rize’s Industrial Density

The Turkish tea sector is defined by an extraordinary level of regional concentration. Out of the 183 tea factories operating nationwide, a staggering 141 are located within Rize. Orçay’s facility in Güneysu, Rize, is not merely a geographic choice but a strategic anchor within a global production hub.

As a leader in the private sector, Orçay competes in a space where the state-owned giant ÇAYKUR processes 42.21% of the nation’s tea, leaving the remaining 57.79% private sector slice as a fiercely competitive arena. Orçay has successfully navigated this competition by focusing on its mission to be the definitive regional brand:

“To constantly develop product and service quality… and to work towards becoming the preferred brand of Rize Tea.”

3. The 6x Capacity Surge: Industrializing the Ortaköy Legacy

Orçay’s trajectory since its founding in 1986 in the village of Ortaköy is a study in vertical integration and industrial scaling. Starting with a modest daily processing capacity of 30 tons, the company underwent a massive technical transformation between 2011 and 2014. Investments in vertical filling machines, advanced drying ovens, and automated shrink-wrapping technologies have since propelled their capacity to 180 tons per day.

Today, the facility produces 3,000 tons of dry tea annually with a packaging capacity of 10,000 tons. This scaling was accompanied by a necessary pivot toward product diversification. Recognizing that modern agricultural survival requires more than “classic tea,” Orçay invested in green and white tea facilities in 2014, expanding a portfolio that now features flagship brands such as Orçay, Orijinal Çay, Ortea, Tazeveren, Tazedem, and Hasret.

4. Contract Manufacturing and the KEIFI Ecosystem

One of the most innovative aspects of Orçay’s model is its role as the “Intel Inside” of the Turkish tea market. Beyond its own labels, the company operates as a major contract manufacturer (fason üretim) for other brands, proving itself to be the industrial backbone of the sector.

Furthermore, Orçay has transitioned from a simple supplier to a high-level consultant through its involvement with the “KEIFI Çay” and “1001 Keyfi” tea house chains. By providing these entities with ARGE (R&D) and “know-how” support, Orçay is selling expertise rather than just raw materials. This ecosystem ensures that their collection of over 60 tea varieties is presented as a high-end retail experience, securing the company’s influence across the entire value chain.

5. Asset-Rich Resilience: Deciphering the 2.29 Billion TL Balance Sheet

Orçay’s 2025 financial position presents a fascinating paradox that requires an analyst’s lens to fully appreciate. The company reported a total asset base of 2.29 Billion TL, a dramatic jump from approximately 1.28 Billion TL in 2024. This “explosion” in the balance sheet is primarily driven by “Yeniden Değerleme” (Revaluation), specifically a 191.7 million TL upward adjustment in the value of land, buildings, and machinery.

While the report notes a net loss of 161.3 million TL, this figure is heavily influenced by a high-interest environment, as evidenced by 238.8 million TL in finance expenses. However, the “Toplam Kapsamlı Gelir” (Total Comprehensive Income) remained positive at 10.5 million TL due to revaluation gains. To manage this landscape, Orçay is employing an asset-rich strategy characterized by:

• Maintaining a Current Ratio (Cari Oran) of 0.9245 to navigate short-term liquidity.
• Extending debt maturity and shortening receivable cycles to lower financial pressure.
• Withholding dividends to reinforce internal capital structures.

6. Governance and the Power of the “A” Group

The governance of Orçay ensures stable, visionary leadership through a specific tiered share structure. The company is led by a 5-member Board of Directors, with the Erdoğan family (including Chairman Mehmet Erdoğan and Vice Chairman Hızır Erdoğan) at the helm.

This stability is protected by Group A shares, which carry a significant voting privilege—5 votes per share compared to just 1 vote for Group B. Critically, the company’s articles of association mandate that two of the five board members must be candidates nominated by Group A. This ensures that even as a publicly-traded entity, the core strategic vision remains insulated from market volatility.

7. Conclusion: The Steep Ahead

As Orçay moves deeper into 2025, its focus has shifted toward institutionalizing its internal culture. By adopting a strict “Right Person for the Right Job” HR policy and committing to sustainability and transparency principles, the company is positioning itself as a modern corporate citizen.

The evolution of Orçay raises a compelling question for the global agri-food sector: Can a regional producer maintain its traditional soul while scaling into the high-stakes world of asset-rich financial markets? For Orçay, the 2025 data suggests that the answer lies in leveraging the physical heritage of Rize through the sophisticated tools of modern finance.

ORÇAY Ortaköy Çay Sanayi ve Ticaret A.Ş. 2025 Annual Performance Briefing

Executive Summary

This briefing document synthesizes the operational and financial performance of ORÇAY Ortaköy Çay Sanayi ve Ticaret A.Ş. (ORÇAY) for the fiscal year ending December 31, 2025.

The reporting period was characterized by significant asset growth through revaluation and capital expansion, alongside operational challenges resulting in a net loss. ORÇAY maintains a strong presence in the Turkish tea sector, operating from its Rize-based facilities with a processing capacity of 180 tons per day. While revenues reached 661.6 million TL, the company recorded a net loss of 161.4 million TL, primarily driven by high financing expenses and monetary position losses. Consequently, the Board of Directors has recommended no dividend distribution for the 2025 period.

Key takeaways include:

• Asset Revaluation: A massive increase in total assets to 2.29 billion TL, largely driven by the revaluation of tangible fixed assets (land and buildings).
• Capital Increase: Paid-in capital was increased from 80 million TL to 240 million TL during the year.
• Financial Health: Liquidity ratios remain tight (Current Ratio: 0.92), with management focusing on reducing financial debt and extending payment terms to improve working capital.
• Market Position: ORÇAY remains a key private sector player in a market where 135 private factories compete with the state-owned ÇAYKUR.

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1. Corporate Profile and History

1.1 Organizational Origins

Founded in 1986 in the Ortaköy district of Güneysu, Rize, ORÇAY began operations with a daily processing capacity of 30 tons. Through strategic investments between 2011 and 2014—including new factory buildings, drying furnaces, vertical filling lines, and packaging machinery—the company significantly scaled its operations.

1.2 Current Operational Capacity

The company now operates a diverse production ecosystem:

• Processing Capacity: 180 tons of fresh tea per day.
• Production Volume: 3,000 tons of dry tea per year.
• Packaging Capacity: 10,000 tons of tea per year.
• Product Portfolio: Includes black tea, green tea, white tea (added in 2014), and herbal blends.
• Brands: Orçay, Orijinal Çay, Ortea, Tazeveren, Tazedem, and Hasret.
• R&D Support: Provides know-how and R&D for tea house chains “KEIFI Çay” and “1001 Keyfi.”

1.3 Human Resources

As of December 31, 2025, the company employs 72 personnel. The HR policy emphasizes “equal pay for equal work” and maintains a strict anti-discrimination framework regardless of religion, language, or race.

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2. Sector Analysis and Market Position

2.1 The Turkish Tea Industry

Tea cultivation in Turkey is concentrated in the Eastern Black Sea region (Rize, Ordu, Giresun, Trabzon, and Artvin). According to the Rize Commodity Exchange 2024 report:

• Total Cultivation Area: 791,287 decares.
• Producers: Approximately 205,118.
• 2023 Fresh Tea Harvest: Over 1.35 million tons, yielding 270,000 tons of dry tea.
• Market Share: Private sector processed 57.79% of the harvest, while ÇAYKUR processed 42.21%.

2.2 Competitive Landscape

ORÇAY competes with major entities including Çaykur, Doğuş, Lipton, Ofçay, and Karali. The company distributes products via a branch network and targets the out-of-home (Horeca) sector, gross markets, and retail points. Approximately 35-40% of production is sold as semi-finished (bulk) tea, while 60-65% is sold under company brands.

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3. Governance and Capital Structure

3.1 Capital and Ownership

The company’s registered capital is 240,000,000 TL. The ownership structure as of the reporting date is:

3.2 Share Classes and Privileges

• Group A (Privileged): Group A shareholders have the right to nominate two of the five Board members. In General Assembly meetings, Group A shares carry 5 votes per share.
• Group B: These shares carry 1 vote per share and have no special privileges regarding Board nominations.

3.3 Board of Directors and Committees

The Board consists of 5 members, elected for a maximum term of 3 years:

1. Mehmet ERDOĞAN: Chairman
2. Hızır ERDOĞAN: Vice Chairman
3. İrfan GÜVENDİ: Board Member
4. Adnan YANKIN: Independent Member
5. Kenan KANBUR: Independent Member

Committees:

• Audit Committee: Chaired by Adnan Yankın; oversees accounting, financial disclosure, and internal controls.
• Early Risk Detection Committee: Chaired by Adnan Yankın; identifies and manages threats to company continuity.
• Corporate Governance Committee: Chaired by Adnan Yankın; also performs the duties of the Nomination and Remuneration Committees.

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4. Financial Performance Analysis

4.1 Income Statement Highlights

Despite a 14.2% increase in revenue compared to the previous year, the company remained in a loss position.

4.2 Balance Sheet and Liquidity

The balance sheet grew significantly due to the revaluation of land and buildings, which increased the value of Tangible Fixed Assets from 387 million TL to 1.48 billion TL.

• Total Assets: 2,292,860,309 TL
• Total Equity: 712,390,143 TL
• Current Ratio: 0.9245
• Acid Test Ratio: 0.4723
• Debt/Equity Ratio: 2.2185

4.3 Financial Strategy and Dividends

Management is actively pursuing measures to improve the financial structure, including:

• Reducing financial indebtedness to lower interest expenses.
• Developing new business models to increase profitability.
• Decreasing collection periods for receivables while extending payment terms for liabilities.

Dividend Policy: Due to the net period loss calculated under TFRS (Turkish Financial Reporting Standards), the company will not distribute dividends for 2025.

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5. Risks, Pledges, and Guarantees

5.1 Guarantees, Pledges, and Mortgages (TRİK)

ORÇAY has significant exposure to third-party guarantees. Total TRİK given as of 31.12.2025 amounted to 7.78 billion TL, a massive increase from 177.7 million TL in 2024.

• Total given for 3rd parties (excluding group companies): 7.517 billion TL.
• Mortgages on company assets: 112 million TL.
• Checks given as collateral: 124.5 million TL.

5.2 Related Party Transactions

Significant receivables exist from related parties, notably:

• Aden Pellet Yenilenebilir Enerji: 84.46 million TL (non-trade).
• Pasifik Perakende: 349,770 TL (trade).
• Pasifik Gayrimenkul Yatırım: 64,586 TL (trade).

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6. Sustainability and Transparency

ORÇAY has adopted the Sustainability Principles Compliance Framework as mandated by the Capital Markets Board (SPK) since October 2020. The company publishes Corporate Governance Compliance Reports and maintains a transparent Information Policy, disclosing all non-confidential performance data and future expectations via its website and the Public Disclosure Platform (KAP).