Key Highlights from the 2025 Financial Reports (English)
• Revenue and Gross Profit: The company’s revenue for 2025 increased to 160,698,166 TL from 102,366,459 TL in the same period of the previous year. Despite the increase in cost of sales, gross profit reached 81,301,073 TL.
• Net Profit for the Period: Net profit showed a significant increase, rising from 33,626,773 TL in 2024 to 138,147,570 TL in 2025. A major driver of this increase was the monetary gain of 130,688,521 TL.
• Asset Structure: Total assets increased to 2,530,796,351 TL. A substantial portion of these assets consists of tangible fixed assets, valued at 1,806,461,259 TL.
• Equity: Total equity reached 2,127,064,144 TL, partly due to the impact of revaluation increases in tangible fixed assets.
• Inflation Accounting: The financial statements have been restated for the changes in the general purchasing power of the Turkish Lira as of December 31, 2025, in accordance with TAS 29 “Financial Reporting in Hyperinflationary Economies”.
• Debt Status: Total financial debt rose to 162,783,253 TL, with a net debt-to-equity ratio recorded at 7.43%.

The Billion-Lira Lean Machine: 5 Surprising Takeaways from Birko’s 2025 Financial Performance

A Legacy in Motion: From Niğde Looms to Beykoz Boardrooms

Established in 1972 in the industrial heart of Niğde, Birko Birleşik Koyunlulular Mensucat has spent half a century as a cornerstone of the Turkish textile landscape. However, the 2025 consolidated financial statements signal the completion of a radical metamorphosis. The most symbolic indicator of this shift is not found in a ledger, but in an address: Birko has officially relocated its headquarters from its ancestral home in Niğde to the affluent Beykoz district of Istanbul.

This move mirrors a high-stakes financial transformation where a heritage manufacturing brand has evolved into a multi-billion lira asset powerhouse. Operating under the rigorous hyperinflationary accounting standards of TMS 29, Birko’s 2025 figures reveal a company that is decoupling its financial scale from its industrial roots, prioritizing lean operations and aggressive asset management over traditional textile production.

Takeaway 1: The Accounting Alchemy (Operational Reality vs. Net Results)

At first glance, Birko’s “Kar veya Zarar Tablosu” (Statement of Profit or Loss) suggests a period of unprecedented prosperity. While revenue grew from 102.4 million TL in 2024 to 160.7 million TL in 2025, the bottom line appears to have exploded.

2025 Net Period Profit: 138,147,570 TL Earnings Per Share (EPS): 0.987 TL

However, a senior analyst must look past the headline figure. The “profit” is almost entirely an accounting byproduct of TMS 29. A staggering 130.7 million TL of this result stems from “Parasal Kazanç” (Monetary Gain)—the result of adjusting non-monetary items for inflation. In sharp contrast, the actual textile business is under pressure: Operating Profit (Faaliyet Karı) plummeted from 67.4 million TL in 2024 to just 22.5 million TL in 2025. While the net result is healthy, the core operational engine is doing significantly less “heavy lifting” than the inflation-adjustment mechanisms.

Takeaway 2: The Skeleton Crew Managing a Billion-Lira Empire

The most striking efficiency metric in the 2025 report is the radical decoupling of human capital from asset scale. Birko’s total asset base (Toplam Varlıklar) now exceeds 2.53 billion TL. Remarkably, this massive portfolio is managed by a workforce of only 23 people (up slightly from 21 in 2024).

This lean organizational structure places Birko in a unique category. With Tangible Fixed Assets (Maddi Duran Varlıklar) alone valued at 1.8 billion TL, each employee is effectively overseeing approximately 110 million TL in corporate value. It is worth noting, however, that even with a skeleton crew, “Personele Sağlanan Menfaatler” (Personnel Benefits) rose from 321k TL to 5.4 million TL. While the head count remains low, the cost of specialized management in a high-inflation environment is clearly rising.

Takeaway 3: The Real Estate Revaluation Engine

The primary driver of Birko’s equity growth has shifted from the factory floor to the valuation office. According to the “Özkaynaklar Değişim Tablosu” and Note 11, the company engaged Bilgi Gayrimenkul Değerleme A.Ş. to revalue its property holdings, adding 680.9 million TL (net of tax) to equity in 2025.

Birko’s value is now fundamentally anchored in real estate rather than manufacturing capacity. The portfolio is bifurcated between 760 million TL in land and 1.25 billion TL in buildings. The strategic and collateral value of these holdings is highlighted by a 2.01 billion TL mortgage (ipotek) held by Tera Yatırım Bankası A.Ş. This leverage indicates that Birko is treating its Niğde and Istanbul holdings as its primary financial engine, using them to secure the capital necessary for its broader corporate evolution.

Takeaway 4: The Strategic Pivot to Commercial Trading

A quiet but profound shift in Birko’s business model is buried in Note 8 (Stoklar). For the first time, “Commercial Goods” (Ticari Mallar)—products purchased for resale rather than manufactured in-house—have appeared on the balance sheet, jumping from 0 TL in 2024 to 31.5 million TL in 2025.

This transition suggests that Birko is moving toward a trading and distribution-led model. By leveraging its established brand and logistics to sell commercial goods, the company can drive top-line revenue without the heavy overhead and shrinking margins associated with industrial wool production. This pivot perfectly complements its low personnel count and the strategic relocation to Istanbul’s commercial hub.

Takeaway 5: The High-Premium Capital Infusion

To solidify the balance sheet and clear historical liabilities, Birko executed a targeted capital increase from 120 million TL to 140 million TL. As detailed in Note 16, this was achieved through a 133.8 million TL private placement (Tahsisli) by major shareholder Nurhan Okalin.

The most telling detail for investors is the pricing: the shares were issued at 6.69 TL—a massive premium over the 1 Kuruş nominal value.

“The capital increase was carried out by restricting the pre-emptive rights of existing shareholders and allocating the shares to Nurhan Okalin for the purpose of liquidating the company’s debts to the public and third parties.”

This infusion allowed the company to liquidate debts to public and third-party entities, essentially “cleaning” the balance sheet and positioning the company for its next phase of growth.

Conclusion: Forward Momentum and Strategic Sovereignty

As Birko enters 2026, it does so as a highly solvent, asset-rich entity. The company’s Net Debt/Equity ratio of 7.43% reveals a remarkably under-leveraged balance sheet relative to its 2.5 billion TL asset base. Birko has successfully navigated the complexities of hyperinflationary accounting to report record profits, but it has emerged as a different species of company.

The 2025 performance poses a provocative question for the Turkish industrial sector: In an era of volatile inflation and shifting trade dynamics, can traditional manufacturers survive by making products, or is the ultimate path to sustainability to evolve into real estate and asset management entities? For Birko, the 2025 numbers suggest that the transition from a textile loom to a billion-lira lean machine is not just a strategy—it is a survival necessity.

Consolidated Financial Briefing: Birko Birleşik Koyunlulular Mensucat Ticaret ve Sanayi A.Ş. (2025)

Executive Summary

The consolidated financial statements for Birko Birleşik Koyunlulular Mensucat Ticaret ve Sanayi A.Ş. (“Birko” or “the Group”) for the period ending December 31, 2025, reveal a year characterized by significant capital restructuring, asset revaluation, and the substantial impact of inflation accounting (TMS 29).

The Group reported a net period profit of 138,147,570 TL, a marked increase from the 33,626,773 TL reported in 2024. However, an incisive analysis shows this profit was primarily driven by a parasal kazanç (monetary gain) of 130,688,521 TL resulting from inflation adjustments, rather than purely operational growth. While revenue increased by approximately 57% to 160.7 million TL, operating profit fell from 67.5 million TL in 2024 to 22.6 million TL in 2025, largely due to a spike in general administrative expenses and other operating losses.

Key strategic developments include a capital increase via a private placement to Nurhan Okalin, raising 133.8 million TL, and the execution of a 2.01 billion TL mortgage in favor of Tera Yatırım Bankası A.Ş. on the Group’s real estate assets.

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Organizational Structure and Governance

Corporate Profile

Birko was established in 1972 in Niğde. Over the decades, it integrated various wool and carpet manufacturing operations, centralizing its headquarters in Beykoz, Istanbul, while maintaining an organized industrial zone branch in Niğde.

Subsidiaries and Personnel

As of December 31, 2025, the Group employed 23 persons (up from 21 in 2024). The consolidated entity includes the following 100% owned subsidiaries:

• Koyunlu Tekstil San. ve Tic. A.Ş.: Marketing arm for the Group’s carpet products.
• Birko Enerji Elektrik Üretimi San. ve Tic. A.Ş.: Originally established for energy production; currently inactive due to historical issues regarding the transfer of incentives and collateral.

Leadership

The Board of Directors is led by İzzet Okalin (Chairman) and Tuncay Okalin (Vice Chairman), with terms extending until July 2027.

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Financial Performance Analysis

Income Statement Highlights (2025 vs. 2024)

All amounts are expressed in Turkish Lira (TL) adjusted for purchasing power as of December 31, 2025.

Revenue and Costs

The Group’s revenue is entirely domestic for the 2025 period, as export sales dropped to zero from 18.3 million TL in the previous year. The cost of sales increased disproportionately to revenue, leading to a narrower gross profit margin.

Operating Expenses

Operating expenses grew significantly to 26.1 million TL. This was driven primarily by General Administrative Expenses (25.98 million TL), which included:

• Consultancy fees: 6.3 million TL.
• Vehicle rental expenses: 4.1 million TL.
• Personnel benefits: 5.4 million TL.

Other operating expenses saw a massive surge to 34.1 million TL, primarily due to “Non-deductible expenses” (Kanunen Kabul Edilmeyen Giderler) totaling 34.05 million TL.

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Financial Position and Asset Base

Asset Composition

The Group’s total assets reached 2.53 billion TL. This is dominated by Tangible Fixed Assets (Maddi Duran Varlıklar), valued at 1.81 billion TL following significant revaluations.

• Real Estate: Land and buildings were revalued based on reports by Bilgi Gayrimenkul Değerleme A.Ş. The valuation used a “cost approach.”
• Investment Properties: The Group holds properties for rental income valued at 28.6 million TL.
• Mortgages: A total mortgage of 2.01 billion TL (760 million TL on land and 1.25 billion TL on buildings) has been issued in favor of Tera Yatırım Bankası A.Ş.

Equity and Capital Structure

Total equity stands at 2.13 billion TL.

• Capital Increase: The paid-in capital was increased by 20 million TL (nominal) to 140 million TL. This was a private placement to Nurhan Okalin at a price of 6.69 TL per share, resulting in a share premium (Hisse Senedi İhraç Primi) of 113.8 million TL.
• Inflation Adjustment: The “Sermaye Enflasyon Düzeltmesi Farkı” (Capital Inflation Adjustment Difference) remains a massive component of equity at 3.6 billion TL.
• Accumulated Deficit: The Group continues to carry substantial prior-year losses totaling 3.33 billion TL.

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Debt and Liquidity Profile

Borrowings

The Group’s financial debt increased significantly in 2025:

• Short-term Borrowings: 67.5 million TL.
• Long-term Borrowings: 95.3 million TL.
• Total Financial Debt: 162.8 million TL (up from 19.7 million TL in 2024).

Liquidity and Risk

• Net Debt: 158.1 million TL.
• Net Debt/Equity Ratio: Increased to 7.43% in 2025 from 0.95% in 2024.
• Cash and Equivalents: Ended the year at 4.7 million TL, consisting of cash, checks, and demand deposits.

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Significant Accounting Notes and Risks

Inflation Accounting (TMS 29)

In accordance with the Turkish Accounting Standards, the Group applied inflation accounting for the 2025 period. This adjustment is mandatory as the cumulative three-year inflation rate (CPI) exceeded 100%. This application fundamentally altered the profit/loss profile, contributing the bulk of the reported net income through “monetary gain.”

Related Party Transactions

The Group maintains significant balances with related parties:

• Commercial Receivables from Related Parties: 97.9 million TL (including 64.1 million TL from Gusion Tekstil Ticaret A.Ş.).
• Other Receivables from Related Parties: 89.9 million TL.

Risk Management

The Group is exposed to standard market risks (currency, interest, and credit). Notably:

• Credit Risk: The Group claims high collectability due to contract-based operations and advance payments. However, it holds 10.8 million TL in doubtful trade receivables, fully covered by provisions.
• Liquidity Risk: Management monitors cash flows to match maturities of assets and liabilities. The Group currently lacks an “Early Detection of Risk Committee.”
• Legal/Tax Risk: Due to the existing legal disputes and credit losses, the Group has not recognized deferred tax assets for its 3.33 billion TL in prior-year losses, as it is not deemed probable that sufficient taxable profit will be available to utilize these losses.

Post-Balance Sheet Events

The financial statements were authorized for issue by the Board of Directors on February 10, 2026. The General Assembly retains the power to amend these statements.