Beyond the Olive Branch: 5 Impactful Takeaways from Cem Zeytin’s 2025 Annual Report

The olive branch has long stood as a global emblem of peace and Mediterranean tradition, evoking a pastoral image of sun-drenched groves and artisanal harvesting. However, the 2025 annual report from Cem Zeytin A.Ş. tells a far more industrial and high-stakes story. Behind the simple jars of olives found on breakfast tables lies a complex corporate machine navigating the volatile currents of Turkish finance, massive industrial expansion, and the technical rigors of inflation accounting.

As one of Turkey’s top three olive producers, Cem Zeytin’s year-end results for 2025 reveal a company in the midst of a transformative leap. It was a year characterized by aggressive infrastructure scaling, balanced against significant financial headwinds. By distilling the 31.12.2025 activity report, we uncover five strategic insights that define the company’s current trajectory.

1. The Financial Paradox: Operating Strength vs. Monetary Loss

To the casual observer, Cem Zeytin’s fiscal 2025 performance presents a stark contradiction. According to the “ÖZET KAR ZARAR TABLOSU,” the company achieved a robust 2.8 billion TL in revenue. Yet, the bottom line tells a different story: a net loss of 497.1 million TL for 2025, a dramatic reversal from the 119.2 million TL profit reported in 2024.

For an investment analyst, the “why” is found deep within the technicalities of TMS 29 (Inflation Accounting). While Cem Zeytin delivered a healthy Operating Profit (Esas Faaliyet Karı) of 594.8 million TL, this operational success was eclipsed by a massive Net Monetary Position Loss (Net Parasal Pozisyon Kaybı) of 618.5 million TL. Essentially, the company’s internal productivity was fighting against the erosive power of hyperinflation. Despite these complex non-cash adjustments, the reliability of the data remains firm, as noted by the independent auditor:

“In our opinion, the financial information in the annual report of the board of directors… is consistent with the audited full set of financial statements and reflects the truth.”

2. The “Asset-Light” Producer: Scaling Without Farming

One of the most striking strategic revelations in the “HAKKIMIZDA” section is that one of Turkey’s largest olive producers is not an agriculturalist. Cem Zeytin does not own or manage olive groves; instead, it operates a sophisticated “asset-light” industrial model.

The company sources 100% of its raw materials from domestic traders in the key regions of Balıkesir (Edremit), Manisa (Akhisar), and Mersin (Mut). By bypassing the cultivation phase, Cem Zeytin avoids the capital-heavy lag and seasonal risks associated with farming, such as weather volatility and fluctuating crop yields. This focus on processing, “fason” (contract manufacturing), and packaging allows for rapid scalability—enabling the company to expand its output volume significantly without the decade-long wait required for new olive trees to mature.

3. The 780 Million TL Expansion: Betting Big on Mersin Mut

The 2025 report makes it clear that Cem Zeytin is betting its future on the southern corridor. While the company maintains its foundational Edremit facility, the scale of investment in the new Mersin Mut site underscores a massive shift in production capacity. This new facility commenced operations in June 2024, marking a pivotal moment in the company’s industrial lifecycle.

The differences in investment scale and government support between the two sites are substantial:

With a staggering investment value of 780.8 million TL for the Mersin facility—compared to roughly 68.3 million TL for the Edremit revisions—Cem Zeytin is aggressively positioning itself to dominate the regional market through sheer industrial force and state-backed financing.

4. Market Confidence and the 500 Million TL Signal

In February 2025, Cem Zeytin’s Board of Directors took a decisive “put your money where your mouth is” approach to its stock price. Citing price inconsistencies that did not reflect the company’s underlying performance, the board authorized a 500 million TL fund for a Share Buyback Program.

Completed in August 2025, the program resulted in the company acquiring 29.8 million nominal shares, which now represent 7.41% of its total capital. For a company to hold such a significant portion of its own equity during a year of reported net loss is a profound signal of internal confidence. It suggests that the Board views the current inflationary “loss” as a temporary accounting hurdle rather than a reflection of the company’s long-term intrinsic value.

5. Modern Governance: Beyond a Family Business

The 2025 report documents the final stages of Cem Zeytin’s evolution from a private family firm—founded in 1994 as Okullu Gıda—to a modern, transparent, publicly traded corporation (following its September 2024 IPO). This transition is punctuated by several key leadership moves.

On December 23, 2025, the company appointed Volkan Okullu as General Manager, signaling a fresh executive direction for 2026. Equally important is the role of independent oversight. Board member Gül Sağır Aydın serves as a vital bridge to institutional maturity, holding active roles across the Audit, Corporate Governance, and Sustainability committees. This multi-committee presence ensures that independent voices are directly involved in the company’s ESG and transparency mandates.

This commitment to modern corporate standards is encapsulated in their mission:

“Our mission as Cem Zeytin is to continue the production of high-quality products… while adding value to both the development of our sector and the national economy.”

Conclusion: Sustainability in a Volatile Market

For Cem Zeytin, 2025 was a year of “infrastructure maturity.” By choosing to absorb the heavy costs of expansion and the harsh realities of inflation accounting, the company has built a formidable industrial base. Their “field-to-table” sustainability approach, coupled with an asset-light sourcing model, provides a unique competitive edge in a traditional industry.

However, a strategic question looms over the next fiscal cycle: Can a traditional industry like olive production find a stable path to profitability in a high-inflation economy through modern industrial scaling and aggressive investment?

The answer likely lies in how efficiently the company can leverage its new 780 million TL Mersin facility to convert its strong operating margins into net profits, proving that even a Mediterranean staple can be a modern industrial powerhouse.

Cem Zeytin A.Ş. 2025 Annual Briefing Document

Executive Summary

This briefing document synthesizes the operational and financial performance of Cem Zeytin A.Ş. for the fiscal year ending December 31, 2025. Despite maintaining its position as one of Turkey’s top three olive producers and achieving a gross profit of 650.7 million TL, the company reported a net loss of 497.1 million TL for the period. This loss is primarily attributed to significant financial expenses and net monetary position losses resulting from inflation accounting (TMS 29).

Operational highlights include the full integration of the new Mersin Mut production facility, which commenced production in June 2024, and the execution of a strategic share buyback program that resulted in the company holding 7.41% of its own shares by year-end. Independent auditors from Deneyim Bağımsız Denetim ve Danışmanlık A.Ş. provided an unqualified (“positive”) opinion on the company’s financial statements and activity report, confirming their consistency with Turkish Financial Reporting Standards (TFRS).

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1. Corporate Profile and Strategic Mission

1.1 Company Overview

Founded in 1994 as Okullu Gıda Maddeleri Sanayi Limited Şirketi, the company transitioned to a joint-stock structure in 2016 and adopted the name Cem Zeytin A.Ş. in 2021. The company specializes in the processing, packaging, and marketing of table olives.

• Core Products: Table green and black olives (whole, crushed, scratched, stuffed, sliced, and pitted).
• Brands: “Cem Zeytin” and “Cem,” alongside private label (fason) production for corporate clients.
• Strategic Positioning: The company is ranked as one of the three largest olive producers in Turkey by production capacity and product variety.

1.2 Mission and Vision

• Mission: To continue high-quality production with a customer-satisfaction focus while adding value to the national economy and sector development.
• Vision: To achieve sustainable growth by increasing market share in domestic and international markets and spreading environmental awareness across all points of communication.

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2. Operational Infrastructure and Production

2.1 Facilities and Supply Chain

The company operates through two primary production hubs:

• Edremit Facility (Balıkesir): A 53,000 m² site (18,000 m² closed area) for processing and packaging.
• Mersin Mut Facility: This new site became operational in June 2024.
• Sourcing: Cem Zeytin does not engage in olive cultivation. Instead, it sources 100% of its raw materials domestically from traders in Balıkesir (Edremit), Manisa (Akhisar), and Mersin (Mut).

2.2 Production and Sales Volumes (2025)

The company processed and sold a significant volume of products across several categories:

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3. Financial Performance Analysis

All 2025 figures are presented in Turkish Lira (TL) adjusted for the purchasing power as of December 31, 2025, in accordance with TMS 29 (High Inflation Accounting).

3.1 Condensed Income Statement

3.2 Balance Sheet Summary

3.3 Key Financial Ratios

• Current Ratio: Increased to 3.78 (from 3.46 in 2024).
• Acid-Test Ratio: Increased to 1.42 (from 1.16 in 2024).
• Net Debt/Total Capital Ratio: 21% (up from 15% in 2024).

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4. Governance, Personnel, and Risk Management

4.1 Board of Directors and Committees

The Board consists of five members, including two independent directors.

• Chairman: Cem Okullu
• Vice Chairman: Cengiz Okullu
• Member/General Manager: Volkan Okullu (Appointed GM on 23.12.2025)
• Independent Members: Serdar Muharrem Bayraktutan and Gül Sağır Aydın.

The Board is supported by four active committees:

1. Audit Committee: Met 4 times in 2025.
2. Corporate Governance Committee: Met 2 times in 2025.
3. Early Detection of Risk Committee: Met 6 times in 2025.
4. Sustainability Committee: Met 2 times in 2025.

4.2 Personnel and Social Responsibility

• Headcount: The average number of employees in 2025 was 267, up from 237 in 2024.
• Training: Extensive training was provided in 2025, covering hygiene, health, first aid, FSSC 22000 Food Safety, and Occupational Health and Safety.
• Donations: The company made total donations of 2,750 TL to various institutions during the period.

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5. Capital Structure and Shareholder Information

5.1 Equity Distribution

The company’s issued capital is 402,000,000 TL, divided into:

• Group A (Nama): 60,400,000 shares (Privileged: 5 votes per share and rights to nominate board members).
• Group B (Hamiline): 341,600,000 shares (No privileges).

5.2 Share Buyback Program

In response to price volatility and to support healthy price formation, the company launched a buyback program on February 17, 2025.

• Execution: Between May 9 and August 1, 2025, the company purchased 7,550,000 TL nominal value shares at an average price of 14.8044 TL.
• Final Position: At year-end, the company held 29,800,000 TL nominal value of its own shares (CEMZY), representing 7.41294% of the paid-in capital.

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6. Audit and External Evaluation

6.1 Auditor’s Opinion

Deneyim Bağımsız Denetim ve Danışmanlık A.Ş. conducted the audit and issued a positive opinion. They concluded that the financial information in the management report is consistent with the audited full-set financial tables.

6.2 Key Audit Matters

• Revenue Recognition: Auditors verified the timing and accuracy of revenue from olive sales, focusing on domestic and limited international transactions.
• Fair Value of Tangible Assets: Significant attention was paid to the valuation of land and buildings, which are recorded at fair value. Independent valuation was performed by Invest Gayrimenkul Değerleme ve Danışmanlık A.Ş.

6.3 Investment Incentives

The company benefits from substantial government support via Investment Incentive Certificates:

• Edremit Facility: Total investment of 68.3 million TL (VAT exemption, 5-year insurance support, 60% tax reduction).
• Mersin Mut Facility: Total investment of 780.8 million TL (VAT exemption, 10-year Halkbank interest support, 7-year insurance support, 80% tax reduction, and customs duty exemption).

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7. Significant Post-Period Events

The company reported that no significant events affecting the financial status occurred between the end of the activity period and the report date of January 30, 2026. There are no lawsuits against the company that could significantly impact its financial standing.