The Bitter and the Sweet: 5 Surprising Realities Behind Bor Şeker’s Latest Financials

How can a company that dominates a kitchen staple as essential as sugar find itself navigating a complex financial labyrinth? Sugar is a commodity of predictable, almost inelastic demand, yet for Bor Şeker, the journey from the beet field to the balance sheet is anything but linear.

Since its listing on the Borsa İstanbul on February 15, 2024, Bor Şeker has operated as a recently privatized giant attempting to fortify its position within Turkey’s volatile, hyperinflationary landscape. While the factory chimneys in Niğde continue to billow, the company’s latest financial statements reveal a story of rapid industrial evolution struggling against the gravity of accounting mandates and regulatory caps.

This briefing distills the most impactful takeaways from Bor Şeker’s interim financial results for the nine-month period ending December 31, 2025. Behind the standard rows of figures lie surprising shifts in capital structure, an aggressive diversification gambit, and a workforce surging to meet new contract demands.

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1. The Paradox of Profitability: An Accounting Squeeze

In the world of pure operations, Bor Şeker had a productive year. Between April and December 2025, the company generated a robust revenue of 3,831,327,576 TL. However, the bottom line tells a paradoxical tale, ending the period with a net loss of 128,548,594 TL.

To a casual observer, this looks like a reversal of the 466 million TL profit seen in the previous period. However, a deeper audit reveals that the business is operationally healthy, posting a Faaliyet Karı (Operating Profit) of 419.6 million TL. The net loss is essentially a “paper squeeze” caused by two massive factors:

• Inflation Accounting (TMS 29): The Turkish standard for hyperinflationary reporting forced a “Net Parasal Pozisyon Kaybı” (Net Monetary Position Loss) of 308,702,462 TL, reflecting the eroding purchasing power of the Lira.
• The Tax Blade: The company was further hit by a staggering 257.1 million TL tax expense, largely driven by deferred tax charges.

“Despite a healthy gross operating profit of 579.4 million TL, the transition to a net loss of 128.5 million TL reflects the ‘scissors effect’ of high-inflation accounting and non-cash tax liabilities.” — Analysis of the 31.12.2025 Management Assessment.

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2. The Massive 720 Million TL Capital Reset

While the net loss captures the headlines, the company’s internal restructuring signals a significant move toward “balance sheet fortification.” On December 4, 2025, the Capital Markets Board (SPK) approved a massive 300% internal capital increase.

By utilizing “Hisse senedi ihraç primleri” (Share Premiums) — the surplus cash generated during its February IPO — the company quadrupled its issued capital. This “bedelsiz” (bonus) issue moves internal reserves into permanent, paid-in capital, signaling a transition from a high-growth newcomer to a mature industrial pillar.

Capital Restructuring Figures:

• Initial Paid-in Capital: 240,000,000 TL
• Post-Reset Paid-in Capital: 960,000,000 TL

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3. The Ethyl Alcohol Gambit: Hedging the Quota

Perhaps the most strategic “pivot” in the 2025 report is Bor Şeker’s move to diversify away from being a pure-play sugar producer. In a deal approved by the Competition Board (Rekabet Kurulu) on January 9, 2025, the company moved into the high-margin industrial chemical space.

Bor Şeker committed $7,200,000 USD (plus VAT) to acquire specialized machinery from Redoks Analitik Cihazlar A.Ş. for the production of ethyl alcohol. This isn’t just an equipment upgrade; it is a hedge. By entering the medical, cosmetic, and cleaning sectors, Bor Şeker is creating a revenue stream that is not bound by the rigid production limits that govern the sugar market.

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4. A Growing Empire: The Amasya Connection

Industrial modernization usually implies a leaner workforce, yet Bor Şeker is bucking the trend with a staggering 60% surge in personnel in just nine months.

• March 31, 2025: 408 employees
• December 31, 2025: 652 employees

This staffing spike is not a symptom of inefficiency but a response to massive operational scaling. On December 17, 2025, the company signed a “fason” (contract) production deal with Amasya Şeker Fabrikası to process 150,000 tons of sugar beets. To manage this influx, alongside the deployment of 50% of its IPO proceeds into modernization and solar energy (GES) projects, the company had to rapidly scale its “human engine.” This investment is visible on the balance sheet, where Tangible Assets (Maddi Duran Varlıklar) climbed from 3.8 billion to 4.68 billion TL.

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5. The Regulatory Ceiling: The Quota Game

For most industrial giants, the limit to growth is market demand. For Bor Şeker, the limit is the President’s desk. The company operates under a rigid “A Quota” system that acts as both a “security shield” and a “growth ceiling.”

For the 2025/2026 marketing year, Bor Şeker was assigned an “A Quota” of 71,290 tons. This represents a consistent ~2.5% share of Turkey’s total sugar production. While the “B Quota” (3,564 tons) provides a mandated security buffer, the company cannot simply choose to produce more sugar to increase market share. This regulatory rigidity explains why the company is so focused on efficiency and diversification; when your primary output is legally capped, you must find value in the margins.

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Conclusion: Looking Ahead

Bor Şeker has evolved from a privatized factory in 2018 into a sophisticated industrial entity. The path forward is increasingly defined by the lab, not just the field. The company is currently funneling 5% of its IPO proceeds into specialized R&D, focusing on two pivotal projects: Acetic Acid production from molasses and the Unslaked Lime and CO2 Gas Project.

These initiatives suggest a future where Bor Şeker is as much a chemical company as it is a sugar producer. By turning industrial waste into high-value chemicals and energy-efficient inputs, the company is attempting to outpace the Lira’s inflation through technical sophistication.

The Final Thought: In an economy defined by triple-digit inflation and rigid production quotas, can industrial diversification be the ultimate sweetener for investors?

Bor Şeker A.Ş. Interim Briefing Document: Financial and Operational Analysis (31 December 2025)

Executive Summary

This briefing document provides a comprehensive analysis of Bor Şeker Anonim Şirketi’s financial standing and operational performance for the interim period between April 1, 2025, and December 31, 2025.

As of December 31, 2025, Bor Şeker reported total assets of 9.78 billion TL and total equity of 7.05 billion TL. While the company achieved a revenue of 3.83 billion TL (a 7.28% increase compared to the same period in the previous year) and an operating profit of 419.63 million TL, it recorded a net loss for the period of 128.55 million TL. This loss is primarily attributed to significant deferred tax expenses and a net monetary position loss of 308.70 million TL resulting from mandatory inflation accounting (TMS 29) adjustments.

Strategically, the company has completed 100% of its planned IPO-funded investments in modernization and solar energy (GES). It is also diversifying its revenue streams through the acquisition of ethanol production machinery and fason (contract) production agreements. Despite the recorded net loss, the company maintains a strong equity position and fulfills the capital adequacy requirements of the Turkish Commercial Code.

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1. Corporate Profile and Organizational Structure

1.1 Company Overview

Bor Şeker, established in 2016 and privatized in 2018, operates a major sugar production facility in Bor, Niğde. The company’s primary mission is the production of sugar and the commercialization of its various by-products to meet both domestic and international market demands. Bor Şeker is listed on Borsa İstanbul (BIST) under the ticker “BORSK.”

1.2 Ownership and Capital Structure

As of December 31, 2025, the company has a registered capital ceiling of 1,000,000,000 TL. Following a 300% bonus share issuance approved in December 2025, the issued capital stands at 960,000,000 TL.

Current Shareholding Table: | Shareholder | Share Percentage | Share Amount (TL) | | :— | :— | :— | | Arz Portföy Second Venture Capital Investment Fund | 35.42% | 340,000,000 | | Emir Haktan Dişli (A-Group) | 4.58% | 44,000,000 | | Sadık Enes Dişli (A-Group) | 10.83% | 104,000,000 | | Handan Dişli (A-Group) | 9.17% | 88,000,000 | | Eren Ali Dişli (A-Group) | 10.83% | 104,000,000 | | Publicly Traded (C-Group) | 29.17% | 280,000,000 | | Total | 100% | 960,000,000 |

Note: A and B group shares hold voting privileges (5 votes per share) and the right to nominate board members.

1.3 Governance and Human Resources

The Board of Directors is chaired by Davut Dişli. The executive leadership includes General Manager Emir Haktan Dişli. As of December 31, 2025, the company employs 652 personnel, up from 408 in March 2025.

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2. Financial Performance Analysis

2.1 Summary of Financial Position

The company’s balance sheet reflects the impact of high inflation adjustments required under TMS 29. All figures are expressed in the purchasing power of the Turkish Lira as of December 31, 2025.

2.2 Income Statement Highlights (April 1 – Dec 31, 2025)

• Revenue: 3,831,327,576 TL.
• Gross Profit: 579,414,097 TL (Gross Margin: 15.1%).
• Operating Profit: 419,627,830 TL.
• Net Loss: (128,548,594) TL.
• EBITDA Margin: 16.30%.

Key Financial Commentary:

• Inflation Impact: The company recorded a 308.7 million TL net monetary position loss, significantly impacting the bottom line.
• Taxation: A heavy tax expense of 257.15 million TL (primarily deferred tax) further contributed to the net loss.
• Revenue Mix: Sugar sales remain the primary revenue driver (2.96 billion TL), followed by molasses (387.5 million TL) and agricultural products (354.4 million TL).

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3. Operational Activities and Market Position

3.1 Sugar Production and Quotas

Bor Şeker operates within Turkey’s regulated sugar market, where production is managed via a quota system. For the 2025/2026 marketing year, Bor Şeker’s allocated quotas are:

• A Quota (Domestic Market): 71,290 tons.
• B Quota (Security Reserve): 3,564 tons. The company’s share of Turkey’s total A Quota has remained stable at approximately 2.5%.

3.2 Product Portfolio

Beyond crystal and cube sugar, the company produces:

• Molasses: Used in yeast, alcohol, and fertilizer sectors.
• Pulp (Küspe): Primarily sold as animal feed.
• Liquid Fertilizer: Produced at a 20 ton/day capacity facility added in 2022.

3.3 Significant Operational Developments

• Fason Production: On December 17, 2025, Bor Şeker signed a contract to process 150,000 tons of sugar beet for Amasya Şeker Fabrikası A.Ş.
• Ethanol Expansion: The company agreed to purchase machinery for an ethyl alcohol production plant from Redoks Analitik Cihazlar A.Ş. for USD 7.2 million + VAT. Regulatory approval from the Competition Board was received in early January 2026.
• Share Buybacks: The company repurchased 226,257 shares during the reporting period (0.0943% of capital) for a total of 5.45 million TL.

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4. Investment and Research (R&D)

4.1 IPO Revenue Utilization

Bor Şeker has utilized 100% of the funds allocated for GES (Solar Energy), integration, modernization, and fertilizer plant investments as of December 31, 2025.

4.2 Future Projects

The company plans to allocate 5% of IPO revenues to R&D. Key upcoming projects include:

• Lime and CO2 Gas Project: Focused on industrial byproduct optimization.
• Acetic Acid Production from Molasses: Aiming for high-value chemical production.
• Infrastructure: Construction of a dedicated R&D building is planned.

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5. Risk Assessment

The Board of Directors has identified several critical risks that could impact future performance:

• Raw Material Supply: Reliance on third-party farmers for sugar beet. Price fluctuations and the ability to pass costs to consumers are significant variables.
• Climate and Environment: Agricultural yield is highly sensitive to drought, floods, and other extreme weather events.
• Operational Risks: Unexpected technical failures or delays in spare part procurement could interrupt the production cycle.
• Regulatory Risks: The sugar sector is subject to strict quotas and Turkish Food Codex regulations. Changes in government policy regarding sugar imports (e.g., zero-tariff quotas) could lower domestic prices.
• Financial Risks: High working capital requirements necessitate significant short-term financing, exposing the company to interest rate volatility.

6. Important Quotes and Directives

“The company’s financial statements are prepared under the assumption of ‘Going Concern,’ expecting to benefit from assets and fulfill obligations in the natural course of business for at least the next year.”

“Bor Şeker possesses 71,290 tons of A quota and 3,564 tons of B quota sugar production rights as of 31 December 2025.”

“Total investments in modernization and integration reached 640.86 million TL by the end of the 2025 period, funded by internal resources and long-term loans.”