• Revenue Growth: The company’s total revenue for 2025 increased to TRY 4,234,023,051, up from TRY 3,850,222,425 in 2024.
• Net Profit for the Period: The net profit for 2025 was recorded as TRY 151,268,877 (2024: TRY 352,726,114).
• Total Assets: As of December 31, 2025, the Group’s total assets reached TRY 5,810,098,673.
• Biological Assets: Within the scope of livestock and milk production activities, the value of biological assets increased to TRY 170,425,000.
• Number of Personnel: The number of employees in the Group rose from 2,316 in 2024 to 2,426 by the end of 2025.
• Inflation Accounting: The financial statements are expressed in terms of the purchasing power as of December 31, 2025, in accordance with the TAS 29 “Financial Reporting in Hyperinflationary Economies” standard.

More Than Just Medicine: 5 Surprising Realities Hidden in Lokman Hekim’s 2025 Financials

When you scrutinize the balance sheet of a healthcare titan, what do you expect to find? Most observers imagine a ledger dominated by the cold costs of MRI machines, surgical suites, and pharmaceutical inventories. However, the modern healthcare giant is rarely just a collection of clinics; it is an intricate, diversified ecosystem where strategy is as vital as surgery.

The 2025 consolidated financial statements for Lokman Hekim Engürüsağ Sağlık—unmasked here through the convenience translation of their reporting—reveal that staying healthy and remaining solvent in today’s market requires a strategy that extends far beyond the hospital ward. From dairy farms in rural Ankara to high-tech oncology centers in Central Asia, the following five realities expose a business model that is far more complex than a simple medical practice.

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1. The Hospital Group with a Dairy Habit

Perhaps the most startling line item in the Lokman Hekim report is the “Living Being and Milk Production” segment. While the company is famous for its clinical presence in Ankara and Van, it maintains a significant vertical integration play through its Hay Süt enterprise. The ledgers expose a healthcare provider that is literally “growing” its own quality control.

“Operating in the Haymana and Bala districts of Ankara, Hay Süt, as an enterprise with European standards and purity certificate, produces milk and livestock production… [It] was taken over as a whole with its assets and liabilities with the facilitated merger method.”

In 2025, “Livestock, milk, and feed sales” generated over 93.3 million TRY in revenue. For a strategic analyst, this isn’t a mere side-hustle; it is a sophisticated move into nutrition and dietetics. By controlling “European standard” milk production, the group secures high-quality biological assets for its supply chain, reflecting a holistic view of health where preventative medicine begins with the purity of the food source.

2. The “Inflation Illusion” – Revenue vs. Real Profit

On the surface, Lokman Hekim’s top-line growth appears robust. However, as an investigative journalist following the money, one must look through the “inflation illusion” created by TAS 29 (Financial Reporting in Hyperinflationary Economies). Under these rules, 2024 figures were restated to 2025 purchasing power to allow for a real-term comparison. When you strip away the nominal increases, the data reveals a sobering struggle to outpace currency devaluation:

• Revenue:
  • 2025: 4,234,023,051 TRY
  • 2024 (Restated): 3,850,222,425 TRY
• Net Profit:
  • 2025: 151,268,877 TRY
  • 2024 (Restated): 352,726,114 TRY

While nominal revenue grew by approximately 10%, the company’s net profit plummeted by a staggering 57.1% in real terms. This exposure highlights the immense difficulty of maintaining growth in a hyperinflationary environment; even substantial revenue gains can be swallowed whole by the eroding purchasing power of the Lira.

3. The 304-Million Lira “Intangible” Asset

In a hospital, we assume the most valuable assets are the ones we can touch—the beds and the buildings. But Note 14 of the financial report uncovers a different reality. The group carries exactly 304,524,682 TRY in “Doctor Staff and Medical License Fees” as intangible assets.

Unlike medical equipment, the company does not subject these to standard depreciation, categorizing them as assets with “indefinite useful lives.”

“Intangible assets with indefinite useful lives (doctor staff fees and hospital licenses) are not subject to amortization but are tested for impairment.”

From a strategic depth perspective, these assets are classified under Level 3 of the valuation hierarchy (Note 33), meaning they are valued based on unobservable inputs rather than market prices. In the modern healthcare market, the legal right to operate and the human capital—the doctors themselves—are more durable balance sheet pillars than the physical machinery they operate.

4. The “Medula” Maze – The Gatekeeper of Cash Flow

One of the “Key Audit Matters” flagged by independent auditors is the precarious nature of revenue recognition. Lokman Hekim is tethered to the Social Security Institution (SSI), and getting paid is an administrative gauntlet. The process relies entirely on Medula, a web-based software system used to verify patient rights and obtain provisions in real-time.

For an investigative analyst, Medula represents a massive credit risk. The SSI holds the unilateral right to deny payments or make deductions if they deem treatments are not in compliance with the “Communiqué of Health Services.” This reveals that a hospital’s financial success is determined as much by its ability to navigate a digital verification maze with the state as it is by the clinical skill of its surgeons. If the Medula system fails or the SSI disputes the data, the revenue effectively vanishes.

5. A Regional Vision – From Ankara to Bishkek

The 2025 report marks a decisive pivot in Lokman Hekim’s identity: it has transcended its roots as a local Turkish provider to become an international player. The “Scope of Organization” was notably expanded on May 23, 2025, with the 100% ownership acquisition of Lokman Hekim Medikal Center LLC in the Kyrgyz Republic.

The group’s footprint now spans several critical hubs:

1. Ankara: The domestic administrative and clinical heart.
2. Van: A vital regional provider.
3. Erbil (Iraq): An established international imaging hub.
4. Bishkek (Kyrgyzstan): The new 2025 acquisition, focused on PET/CT Imaging for early oncology diagnosis.

This expansion into Bishkek demonstrates a calculated shift toward high-margin, specialized oncology services in emerging markets, positioning the group as a regional leader in cancer diagnostics.

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Conclusion: The Future of the Healthcare Ecosystem

Lokman Hekim’s 2025 financials paint a picture of a company aggressively scaling its financial architecture. The Board has already approved an increase in the registered capital ceiling to 1 Billion TRY for the 2025–2028 period. More importantly, the company has diversified its financing by issuing 1.093 Billion TRY in Lease Certificates (Sukuk), as detailed in Note 6. This move suggests a strategic shift toward more complex, non-traditional borrowing instruments to fund its regional ambitions.

As the group navigates a landscape of digital gatekeepers and hyperinflation, it is evolving from a medical provider into a managed resource ecosystem.

Closing Thought: In an era of hyperinflation and digital complexity, is the future of healthcare found in the hospital ward, or in the strategic management of the licenses, data, and resources behind it?

Briefing Document: Consolidated Financial Performance and Operations of Lokman Hekim Group (FY 2025)

Executive Summary

This briefing document provides a comprehensive analysis of the consolidated financial statements and operational status of Lokman Hekim Engürüsağ Sağlık, Turizm, Eğitim Hizmetleri ve İnşaat Taahhüt A.Ş. (“the Group”) for the fiscal year ending December 31, 2025.

The Group reported a consolidated net profit of TRY 151,268,877 for the period, a decrease from the previous year’s inflation-adjusted profit of TRY 352,726,114. Total revenues grew to TRY 4,234,023,051, primarily driven by health income (84% of total sales). A critical factor in this year’s financial reporting is the continued application of TAS 29 (Financial Reporting in Hyperinflationary Economies), which required the restatement of financial figures based on the purchasing power of the Turkish Lira as of December 31, 2025.

Key Financial Indicators (as of Dec 31, 2025):

• Total Assets: TRY 5,810,098,673
• Total Equity: TRY 2,595,338,360
• Gross Profit: TRY 749,951,839
• Net Monetary Position Gain: TRY 173,058,532
• Earnings Per Share: TRY 0.6960

1. Corporate Profile and Scope of Organization

1.1 Field of Activity

Established in Ankara in 1996, Lokman Hekim Group has evolved from a medical equipment supplier into a diversified healthcare provider. Its operations encompass:

• Healthcare Services: Operating multiple hospitals and medical centers.
• Logistics: Laundry, cleaning, cafeteria, and catering services.
• Livestock & Agriculture: Milk and livestock production via the “Hay Süt” enterprise.
• E-Health & Digital Transformation: Through its subsidiary HYSET.
• International Operations: Imaging and diagnostic centers in Erbil (Iraq) and Bishkek (Kyrgyz Republic).

1.2 Ownership and Capital Structure

The Company is registered with the Capital Markets Board (CMB) and has been quoted on Borsa İstanbul since 2011. As of December 31, 2025, 71.53% of shares are in circulation.

Note: Group A shares are registered and hold privileges regarding the nomination of Board of Directors members.

1.3 Major Subsidiaries

The Group maintains full or controlling interests in several subsidiaries, including Lokman Hekim Van Sağlık Hizmetleri (51%), Lokman Hekim İstanbul Sağlık Yatırımları (100%), and Lokman Hekim Medikal Center LLC in Bishkek (100%, acquired May 2025).

2. Operational Infrastructure

2.1 Hospital Facilities

The Group operates a significant network of healthcare facilities, summarized below:

2.2 Human Resources

As of December 31, 2025, the Group employs a total of 2,426 personnel, an increase from 2,316 in 2024. The staff includes 278 doctors, 861 health service professionals, and 572 administrative support staff.

3. Financial Performance Analysis

3.1 Revenue Breakdown

Total revenue reached TRY 4.23 billion. While healthcare remains the core driver, the Group has diversified its income streams.

Health Revenue Institutional Distribution:

• Social Security Institution (SSI): 18% (TRY 626.5M)
• Other Persons/Organizations: 82% (TRY 2.91B)

3.2 Cost of Sales and Expenses

The cost of services sold amounted to TRY 3.43 billion. The largest expense categories were:

• Salaries and Equivalents: TRY 2.16 billion.
• Raw Materials and Materials: TRY 385.1 million.
• Depreciation and Amortization: TRY 276.6 million (excluding Right-of-Use assets).

3.3 Profitability and Monetary Position

Operating profit stood at TRY 525,693,333. Due to the high-inflation environment in Turkey, the Group recorded a Net Monetary Position Gain of TRY 173,058,532, which significantly impacted the pre-tax profit of TRY 276,307,026.

4. Financial Position and Liquidity

4.1 Assets

Total assets increased to TRY 5.81 billion.

• Current Assets (TRY 2.04B): Includes Cash and Equivalents (TRY 164.3M) and Trade Receivables (TRY 752.3M).
• Non-Current Assets (TRY 3.77B): Dominated by Tangible Assets (TRY 2.48B), including land, buildings, and medical machinery.
• Biological Assets: Livestock valued at TRY 170.4 million.

4.2 Liabilities and Debt

The Group carries significant financial liabilities, largely used to fund operations and investments.

• Financial Liabilities: Short-term portions of long-term borrowings totaled TRY 785.4 million.
• Issued Debt Instruments: The Group issued lease certificates (sukuk) totaling TRY 1,093,096,717 in 2025.
• Total Liabilities: TRY 3.21 billion.

4.3 Equity Transactions

• Share Buybacks: The Board was authorized to repurchase up to 10% of shares. As of year-end, repurchased shares are valued at TRY (265,027,052).
• Dividends: The Group paid TRY 119,266,401 in dividends during 2025.

5. Audit Findings and Key Audit Matters

Karar Bağımsız Denetim ve Danışmanlık A.Ş. provided an unqualified opinion, stating the consolidated financial statements present fairly, in all material respects, the Group’s financial position.

5.1 Key Audit Matters (KAM)

1. Revenue Recognition: The complexity of invoicing the SSI via the Medula system and the determination of revenue timing for ongoing treatments were identified as significant areas of audit focus.
2. TAS 29 Implementation: The restatement of financial statements for hyperinflation involved complex calculations, indices, and management judgments regarding non-monetary items.

6. Risk Management

6.1 Foreign Exchange Risk

The Group maintains a net foreign currency liability position of TRY (369,841,470).

• Sensitivity: A 20% depreciation of the TRY against the USD would result in a loss of approximately TRY 66.1 million.

6.2 Credit and Liquidity Risk

• Credit Risk: Primarily associated with trade receivables from the SSI (29% of total receivables).
• Liquidity Risk: The Group manages liquidity by diversifying funding sources. Contractual cash outflows for bank loans (including interest) expected within the next year exceed TRY 1.1 billion.

7. Significant Accounting Estimates

• TAS 29 Restatement: CPI index used for 31 December 2025 was 3,513.87, with an adjustment coefficient of 1.3089 compared to 2024.
• Tangible Assets: Buildings are depreciated over 50 years; medical machinery and equipment over 5–20 years.
• Intangible Assets: Includes “Doctor Staff and Medical License Fees” totaling TRY 304.5 million, which are tested for impairment rather than amortized.
• Biological Assets: Valued at fair value less estimated sales costs at the end of each reporting period.