Quarterly Report • Apr 30, 2025
Quarterly Report
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ADEL KALEMCİLİK TİCARET VE SANAYİ A.Ş.
CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS AND NOTES FOR THE 31 MARCH 2025 TOGETHER WITH INDEPENDENT AUDITOR'S REPORT
(ORIGINALLY ISSUED IN TURKISH)
| CONTENTS | PAGES |
|---|---|
| STATEMENT OF FINANCIAL POSITION | 1-2 |
| STATEMENT OF PROFIT OR LOSS | 3 |
| STATEMENT OF OTHER COMPREHENSIVE INCOME |
4 |
| STATEMENT OF CHANGES IN EQUITY |
5 |
| STATEMENT OF CASH FLOWS | 6 |
| NOTES TO THE FINANCIAL STATEMENTS |
7-43 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 31 March 2025 | 31 December 2024 | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalences | 4 | 475.773 | 725.684 |
| Trade receivables | 177.273 | 144.409 | |
| - Trade receivables from related parties | 22 | 81.100 | 47.044 |
| - Trade receivables from third parties | 7 | 96.173 | 97.365 |
| Other receivables | 1.178 | 1.678 | |
| - Other receivables from third parties | 8 | 1.178 | 1.678 |
| Derivative Instruments | 24.2 | 1.766 | - |
| Inventories | 9 | 958.052 | 868.875 |
| Prepaid expenses | 14 | 74.547 | 19.947 |
| Current tax assets | 14 | 123.332 | 133.949 |
| Other current assets | 88.203 | 78.159 | |
| - Other current assets from third parties | 14 | 88.203 | 78.159 |
| Total current assets | 1.900.124 | 1.972.701 | |
| Non-current assets | |||
| Financial investments | 5 | 1.409 | 1.436 |
| Property, plant and equipment | 10 | 870.675 | 869.379 |
| Right of use assets | 6 | 198.990 | 168.535 |
| Intangible assets | 11 | 89.641 | 97.636 |
| Prepaid expenses | 14 | 14.078 | 18.229 |
| Total non-current assets | 1.174.793 | 1.155.215 | |
| Total assets | 3.074.917 | 3.127.916 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 31 March 2025 | 31 December 2024 | |
| Liabilities | |||
| Current liabilities | |||
| Current borrowings | 511.971 | 429.332 | |
| -Current borrowings from third parties | 511.971 | 429.332 | |
| - Bank loans | 6 | - | 429.332 |
| - Issued debt instruments | 6 | 511.971 | - |
| Current portion of long-term borrowings | 62.306 | 122.348 | |
| -Current portion of long-term borrowings from third parties | 6 | 62.306 | 122.348 |
| - Bank loans | 53.422 | 30.785 | |
| - Lease liabilities | 6.309 | 52.012 | |
| - Issued debt instruments | 2.575 | 39.551 | |
| Trade payables | 174.657 | 146.343 | |
| - Trade payables to related parties | 22 | 20.477 | 7.912 |
| - Trade payables to third parties | 7 | 154.180 | 138.431 |
| Employee benefit obligations | 8 | 112.888 | 119.005 |
| Other payables | 3.973 | 4.214 | |
| - Other payables to third parties | 8 | 3.973 | 4.214 |
| Derivative instruments | 24.2 | - | 617 |
| Deferred income | 14 | 156.384 | 67.197 |
| Short term provision | 32.383 | 20.929 | |
| - Provisions for employment benefits | 13 | 27.122 | 15.147 |
| - Other current provisions | 12 | 5.261 | 5.782 |
| Total current liabilities | 1.054.562 | 909.985 | |
| Non-current liabilities Non-current borrowings |
582.302 | 557.342 | |
| - Non-current borrowings from third parties | 6 | 582.302 | 557.342 |
| - Bank loans | 170.000 | 187.107 | |
| - Issued debt instruments | 250.000 | 275.158 | |
| - Lease liabilities | 162.302 | 95.077 | |
| Employee benefit obligations | 8 | 2.269 | 2.548 |
| Non-current provisions | 34.860 | 36.762 | |
| - Non-current provision for employee benefits | 13 | 34.860 | 36.762 |
| Deferred tax liabilities | 20 | 8.690 | 26.371 |
| Total non-current liabilities | 628.121 | 623.023 | |
| Equity | |||
| Paid-in share capital | 15 | 259.875 | 259.875 |
| Adjustment to share capital | 15 | 375.318 | 375.318 |
| Other comprehensive expense not to be | |||
| reclassified to profit or loss | (19.853) | (16.492) | |
| - Revaluation and measurement gains / (losses) | (19.853) | (16.492) | |
| Other comprehensive expense/(income) to be | 15.137 | 13.723 | |
| reclassified to profit or loss | |||
| - Gains/(loss) on hedge | 15.137 | 13.723 | |
| Restricted reserves appropriated from profits | 15 | 328.633 | 331.661 |
| Prior years' profits/(losses) | 15 | 633.851 | 610.303 |
| Net profit/(loss) for the period | (200.727) | 20.520 | |
| Total equity | 1.392.234 | 1.594.908 | |
| Total liabilities and equity | 3.074.917 | 3.127.916 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Unaudited | |||||
|---|---|---|---|---|---|
| 1 January - | 1 January - | ||||
| Profit or loss | Notes | 31 March 2025 | 31 March 2024 | ||
| Revenue | 16 | 277.114 | 916.286 | ||
| Cost of sales (-) | 16 | (170.368) | (389.789) | ||
| Gross profit | 106.746 | 526.497 | |||
| General administrative expenses (-) | (126.120) | (112.223) | |||
| Marketing expenses (-) | (153.832) | (169.085) | |||
| Research and development expenses (-) | (5.028) | (4.200) | |||
| Other income from operating activities | 17 | 2.904 | 14.198 | ||
| Other expenses from operating activities (-) | 17 | (4.942) | (60.861) | ||
| Operating profit / (loss) | (180.272) | 194.326 | |||
| Income from investment activities | 18 | 19 | 83 | ||
| Expens from investment activities (-) | 18 | - | (6.418) | ||
| Operating profit before finance income / (expense) | (180.253) | 187.991 | |||
| Finance income | 19 | 45.309 | 122.685 | ||
| Finance expenses (-) | 19 | (133.979) | (210.198) | ||
| Monetary gain / (loss) | 25 | 51.110 | 60.941 | ||
| Profit/(Loss) before tax from continuing operations | (217.813) | 161.419 | |||
| Tax income from continuing operations | 17.086 | (40.615) | |||
| - Taxes on expense | 20 | - | (50.286) | ||
| - Deferred tax income / (expense) | 20 | 17.086 | 9.671 | ||
| Net profit /(loss) for the year | (200.727) | 120.804 | |||
| Profit /(loss) per share (1 TRL per share) | 21 | (0,7724) | 5,1134 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Unaudited | ||||
|---|---|---|---|---|
| 1 January - | 1 January - | |||
| Notes | 31 March 2025 | 31 March 2024 | ||
| Net profit /(loss) for the year | (200.727) | 120.804 | ||
| Other comprehensive income/expense | ||||
| Other comprehensive expenses that will not be reclassified to profit or loss | (3.361) | 11.467 | ||
| - Gains (Losses) on Remeasurements Defined Benefit Plans | 13 | (4.429) | 15.288 | |
| Other comprehensive expenses that will not be reclassified to profit or loss, tax effect | 1.068 | (3.821) | ||
| - Deferred tax income / (expense) | 1.068 | (3.821) | ||
| Other comprehensive income / (expense) that will be reclassified to profit or loss | 1.414 | 2.058 | ||
| - Currency translation differences | ||||
| - Other comprehensive income / (expense) on cash flow hedge | ||||
| -Other Comprehensive income / (expense) on cash flow hedge | 1.887 | 2.744 | ||
| -Other comprehensive expenses that will be reclassified to profit or loss, tax effect | (473) | (686) | ||
| - Deferred tax income / (expense) | (473) | (686) | ||
| Other comprehensive income / (expense) | (1.947) | 13.525 | ||
| Total comprehensive income | (202.674) | 134.329 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Other comprehensive | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| income (loss) that Other comprehensive |
|||||||||
| will not be reclassified | loss/(income) that will be | ||||||||
| in profit or loss | reclassified in profit or loss | Accumulated profits | |||||||
| Inflation | Defined benefit plans | Currency | |||||||
| adjustment to | revaluation and | translation | Gains/(loss) on | Restricted | Retained | Net profit/(loss) | |||
| Share capital | share capital | measurement(losses)/gains | differences | hedge | reserves | earnings | for the period | Total equity | |
| Balances as of 1 January 2024 | 23.625 | 611.570 | (22.007) | (6.258) | 15.530 | 313.761 | 136.194 | 692.785 | 1.765.200 |
| Transfers | - | - | - | - | - | - | 692.785 | (692.785) | - |
| Liquidation effect | - | - | - | 6.258 | - | - | - | - | 6.258 |
| Total comprehensive income / (loss) | - | - | 11.467 | - | 2.058 | - | - | 120.804 | 134.329 |
| Balances as of 31 March 2024 | 23.625 | 611.570 | (10.540) | - | 17.588 | 313.761 | 828.979 | 120.804 | 1.905.787 |
| Balances as of 1 January 2025 | 259.875 | 375.318 | (16.492) | - | 13.723 | 331.661 | 610.303 | 20.520 | 1.594.908 |
| Transfers | - | - | - | - | - | (3.028) | 23.548 | (20.520) | - |
| Total comprehensive income / (loss) | - | - | (3.361) | - | 1.414 | - | - | (200.727) | (202.674) |
| Balances as of 31 March 2025 | 259.875 | 375.318 | (19.853) | - | 15.137 | 328.633 | 633.851 | (200.727) | 1.392.234 |
CASH FLOW STATEMENTS FOR THE INTERIM 31 MARCH 2025 AND 31 MARCH 2024
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Unaudited | |||
|---|---|---|---|
| 1 January - | 1 January - | ||
| Notes | 31 March 2025 | 31 March 2024 | |
| Cash flow from operating activities | (154.248) | 163.538 | |
| Net profit /(loss) for the period | (200.727) | 120.804 | |
| Adjustments to reconcile net profit /(loss) for the period | 113.232 | 198.230 | |
| Adjustments for depreciation and amortization expense | 6,10,11 | 42.212 | 48.038 |
| Adjustments for impairment loss/(reversal) | 490 | - | |
| - Adjustments for impairment / (reversal) of receivables | 7 | 490 | - |
| Adjustments for provisions | 13.622 | 22.789 | |
| - Adjustments for provisions / (reversal) for employee benefits | 13 | 13.622 | 22.789 |
| Adjustments for interest (income) / expense | 121.549 | 149.789 | |
| - Adjustments for interest income | 1 9 | (10.923) | (108.308) |
| - Adjustments for interest expense | 1 9 | 132.472 | 210.126 |
| - Rediscount on interest loss | 1 6 | - | 54.589 |
| - Rediscount on interest income | 1 6 | (6.618) | |
| Adjustments for fair value (gain) / loss | - 1.697 |
2.020 | |
| Adjustments for tax incomes | 20 | (17.086) | 40.615 |
| 6.335 | |||
| Adjustments for gain / (loss) on sale of tangible and intangible assets | (19) | ||
| Monetary gain / (loss) | (49.233) | (71.356) 150.078 |
|
| Changes in working capital | (51.808) | ||
| Adjustments for decrease/(increase) in trade receivables | (33.354) | (151.579) | |
| Adjustments for decrease/(increase) in other receivables | 501 | 9.818 | |
| Adjustments for decrease/(increase) in inventory | (89.177) | 63.955 | |
| Decrease/(increase) in prepaid expenses | (50.450) | (100.781) | |
| Adjustments for increase/(decrease) in trade payables | 28.314 | 48.570 | |
| Adjustments for increase/(decrease) in employee benefit obligations | (6.397) | (42.297) | |
| Adjustments for increase/(decrease) in other payables from operations | (241) | 7.366 | |
| Increase / (decrease) in deferred income (other than obligations | 89.187 | (72.755) | |
| arising from customer contracts) | |||
| Adjustments for other increase/(decrease) in working capital | 9.809 | 387.781 | |
| - Increase/(decrease) in other operating assets | 28.021 | 387.820 | |
| - Increase/(decrease) in other operating liabilities | (18.212) | (39) | |
| Cash flows from (used in) operating activities | (139.303) | 469.112 | |
| Payments related with provisions for employee benefits | 13 | (4.328) | (2.386) |
| Income taxes (paid) return | (10.617) | (303.188) | |
| Cash flow from investing activities | (18.541) | (19.142) | |
| Cash inflows arising from sale of tangible and intangible assets | 10 | - | (4.759) |
| Cash outflows arising from purchase of tangible and intangible assets | 10 | (18.541) | (14.383) |
| Cash flow from financing activities | (28.300) | (243.919) | |
| Proceeds from borrowings | 6 | 500.000 | 113.977 |
| Repayment of borrowings | 6 | (302.974) | (267.588) |
| Repayment of lease liabilities | (21.135) | (19.467) | |
| Interest paid | 6 | (211.397) | (253.506) |
| Interest received | 7.206 | 100.562 | |
| Other cash inflows (outflows) | - | 82.103 | |
| Monetary gain/(loss) impact on cash and cash equivalents | (52.537) | (162.865) | |
| Net increase/(decrease) in cash and cash equivalents | (253.626) | (262.388) | |
| Cash and cash equivalents at the beginning of the year | 4 | 724.782 | 1.242.733 |
| Cash and cash equivalents at the end of the year | 4 | 471.156 | 980.345 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Adel Kalemcilik Ticaret ve Sanayi A.Ş. ("Company") operates in the production of pencils, colored pencils, toys, and other stationery products; the sale and export of finished goods manufactured at its facilities; and the import, trade, and distribution of raw materials, semi-finished, and finished products.
The company was established on 17 July 1967 and registered with the Istanbul Chamber of Industry (İSO) and the istanbul chamber of commerce (İTO) on the same date with the registration number 96078.
The registered address of the company's headquarters is as follows:
Fatih Sultan Mehmet Mahallesi Balkan Caddesi No:58 Buyaka E Blok 34771 Tepeüstü, Ümraniye/İstanbul.
The Company is registered to the Capital Markets Board ("CMB") and its shares have been traded on Borsa Istanbul ("BIST") since 1996. As of 31 March 2025, the Company has 27,71% of its shares registered in the BIST. The shareholders holding the majority of the Company's shares and their share ratios are as follows:
| 31 March 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|
| % | TRL | % | TRL | ||
| AG Anadolu Grubu Holding A.Ş. | 56,89 | 147.831 | 56,89 | 147.831 | |
| Faber-Castell Aktiengesellschaft | 15,40 | 40.017 | 15,40 | 40.017 | |
| Shares publicly held | 27,71 | 72.027 | 27,71 | 72.027 | |
| 259.875 | 259.875 |
The average number of employees of the Company as at 31 March 2025 is 339 (31 December 2024: 371).
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The accompanying financial statements are prepared in accordance with the requirements of Capital Markets Board ("CMB") Communiqué Serial II, No: 14.1 "Basis of Financial Reporting in Capital Markets", which was published in the Official Gazette No:28676 on June 13, 2013. The accompanying financial statements are prepared based on the Turkish Accounting Standards and interpretations ("TAS") issued by the Public Oversight Accounting and Auditing Standards Authority ("POA") under Article 5 of the Communiqué. It is also presented in accordance with the 2024 TFRS Taxonomy updated by POA on July 3, 2024.
The financial statements have been presented in accordance with the 2024 TFRS Taxonomy, which was developed based on the financial statement templates set out in the Financial Statement Samples and User Guide published by the Public Oversight, Accounting and Auditing Standards Authority (POA) in the Official Gazette dated June 7, 2019, issue No. 30794, and updated by POA on July 3, 2024.
The Company's companies operating in Türkiye maintain their books of account and prepare their statutory financial statements in Turkish Lira in accordance with the principles and requirements issued by the Capital Markets Board ("CMB"), the Turkish Commercial Code ("TCC") and Tax Legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. Subsidiaries and joint ventures operating abroad maintain their books of account and prepare their statutory financial statements in accordance with the laws and regulations of the countries in which they operate.
The Company's financial statements as of 31 March 2025 were approved by the Company's Board of Directors on 16 April 2025. The Board is authorized to amend the financial statements.
The Company prepared its financial statements as at and for the period ended June 30, 2024 by applying TAS 29 "Financial Reporting in Hyperinflationary Economies" in accordance with the announcement made by POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies". The standard requires that financial statements prepared in the currency of a hyperinflationary economy be expressed in terms of the purchasing power of that currency at the balance sheet date and that comparative figures for prior period financial statements be expressed in terms of the measuring unit current at the end of the reporting period. Accordingly, the Company has also presented its financial statements as of 31 December 2024 in terms of the purchasing power of that currency as of 31 March 2025.
In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards will apply inflation accounting in accordance with TAS 29 standards, starting from their annual financial reports for the accounting periods ending as of 31 December 2023.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The restatements in accordance with TAS 29 have been made using the adjustment factor derived from the Consumer Price Index ("CPI") in Türkiye published by the Turkish Statistical Institute ("TSI"). As of March 31, 2025, the indexes and adjustment factors used in the restatement of the financial statements are as follows:
| Date | Index | Adjustment Coefficient |
Three-Year Compound Inflation Rate |
|---|---|---|---|
| 31 March 2025 | 2.954,69 | 1,00000 | %250 |
| 31 December 2024 | 2.684,55 | 1,10063 | %291 |
| 31 March 2024 | 2.139,47 | 1,38104 | %309 |
The main elements of the Company's adjustment for financial reporting purposes in high-inflation economies are as follows:
The Company is based on the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance of the Republic of Türkiye in keeping its accounting records and preparing its statutory financial statements. Investments valued by the equity method in foreign countries, have prepared their statutory financial statements in accordance with the laws and regulations applicable in the countries in which they operate. Financial statements of company have been prepared in Turkish lira based on historical cost, excluding financial assets and liabilities that are expressed at their fair values. The financial statements have been prepared by reflecting the necessary adjustments and classifications to make the correct presentation in accordance with TMS/TFRS to the legal records prepared on the historical cost basis.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
A partnership is a joint venture in which entities with joint control in an arrangement have rights to the equity in the joint arrangement. Joint control is based on the control contract on an economic activity.
This control is deemed to exist when the decisions of the relevant activities require the parties sharing the control to agree with the unanimity of votes.
The results and assets and liabilities of associates or joint ventures are incorporated in these financial statements using the equity accounting method, except when the investment, or a portion thereof, is classified as held for sales, in which case it is accounted for in accordance with TFRS 5. Under the equity method, an investment in associate or a joint venture is initially recognized in the financial statement of financial position at cost and adjusted thereafter to recognize the Company's share of the profit or loss and other comprehensive income of the associate or a joint venture.
When the Company's whare of losses of an associate or a joint venture exceeds the Company's interest in that associate or a joint venture (which includes any long term interests that, in substance, form part of the Company's net investment in the associate or a joint venture), the company discontinues recognizing its share of further losses. Additional losses are recognized only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or a joint venture.
Comparative figures are reclassified, where necessary, to conform to changes in presentation in the current period financial statements and significant changes are explained. The financial statements of the Company include comparative financial information to enable the determination of the trends in the financial position and performance. The Company has prepared its financial position statement as of 31 March 2025 with the financial position statement prepared as of 31 December 2024; The profit or loss statement for the period 1 January- 31 March 2025, the profit or loss statement for the 1 January- 31 March 2024 accounting period, and the other comprehensive income statement for the 1 January- 31 Match 2025 accounting period, the 1 January- 31 March 2024 accounting period, other comprehensive income statement, cash flow statement for the accounting period 1 January- 31 March 2025 and statements of changes in shareholders' equity are prepared comparatively with the related financial statements for the accounting period 1 January - 31 March 2024.
• Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Changes in accounting policies or accounting errors are applied retrospectively and the financial statements of the comparative period are restated. If estimated changes in accounting policies are for only one period, changes are applied on the current year but if the estimated changes are for the following periods, changes are applied both on the current and following years prospectively. Except for the subject mentioned in "Comparative Information and Restatement of Prior Period Financial Statements", the Company has not identified any significant accounting error or estimated changes in accounting policies in the current year.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The nature and amount of a change in the accounting estimate that has an effect on the current period's operating result or is expected to have an effect on the following periods is disclosed in the footnotes of the financial statements, unless it is not possible to estimate the effect on future periods. There has been no change or error in the accounting estimates of the financial statements for the 31 March 2025 accounting period.
The financial statements of the joint venture operating in a foreign country have been prepared in accordance with the legislation in force in the country in which it operates and have been prepared by reflecting the necessary corrections and classifications in order to comply with the "Communiqué on the Principles of Financial Reporting in the Capital Markets".
The assets and liabilities of subsidiaries and joint ventures operating in foreign countries are translated at the rate of exchange ruling at the balance sheet date and the income statements of foreign subsidiaries and joint ventures are translated at average exchange rates. Differences that occur by the usage of closing and average exchange rates are followed under currency translation differences classified under equity.
At the beginning of the year, the Company launches a sales campaign for specific products, followed by "dealer fairs" held in the first quarter to promote the sales of its manufactured and imported brands. During these campaigns and dealer fairs, customer orders are secured through checks, Direct Debit System (DDS), or credit cards. A significant portion of the orders received is shipped within the first half of the year.
Derivatives are recognized initially at fair value at the date a derivative contract is entered into and are subsequently remeasured to their fair value at each reporting date. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.
Provision for doubtful receivables is recognized using expected credit losses as defined in TFRS 9. The allowance for doubtful receivables is calculated using expected credit losses and excluding dealers subject to the Direct Debit System, taking into account the Company's estimates for the future in addition to past experience.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Government incentives are not recognized unless there is a reasonable reason to believe that the Company fulfills the requirements of these incentives and that this incentive will be received. These incentives are recognized in revenues in the period to match the costs they are expected to cover. Income from government incentives is recognized as a deduction from an appropriate expense item.
Fields of activity of the Company established in Türkiye are the production of pencils, colored pencils, toys, and other stationery equipment; the sale and export of finished products in the facilities; and the import of all kinds of raw materials, semi-finished products, and finished products for purchase and sale.
The Company's field of activity, the nature and economic characteristics of the products, the production processes, the classification according to the risks of the customers and the methods used in the distribution of the products are similar. In addition, the organizational structure of the Company has been established in such a way that a single activity is managed instead of the Company being managed in separate divisions containing different activities. For these reasons, the Company's operations are considered as a single operating segment, and the Company's operating results, the determination of the resources to be allocated to these activities, and the examination of the performances of these activities are evaluated within this framework.
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Demand deposit | 460.716 | 38.768 |
| Time deposit | 4.063 | 179 |
| Other cash equivalents | 6.377 | 685.835 |
| Cash and cash equivalents in the statement of cash flows | 471.156 | 724.782 |
| Interest income accruals | 4.617 | 902 |
| Total | 475.773 | 725.684 |
The Company has no blocked deposits as of 31 March 2025 (31 December 2024: None).
As of 31 March 2025, the Company has allocated USD 309.137 equivalent of TRL 11.675 from its bank deposits for the payments related to raw material and trade goods purchases to be made in the future periods in order to hedge against fluctuations in foreign exchange rates and the related amount has been subject to hedge accounting. (31 December 2024: USD 1.000.000 equivalent of TRL 48.644)
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 31 March 2025 | 31 December 2024 | |||
|---|---|---|---|---|
| % | TRL | % | TRL | |
| Ülkü Kırtasiye Ticaret ve Sanayi A.Ş. | 7,67 | 9 9 | 7,67 | 9 9 |
| Other long-term investments (*) | 1.310 | 1.337 | ||
| 1.409 | 1.436 |
(*) It is the amount of venture capital investment fund received by the Company on a long-term basis, equivalent to 2% of the corporate tax incentive utilized, as a result of its status as an R&D center.
| 31 March 2025 | Interest rate % | Balance |
|---|---|---|
| Short term borrowings | ||
| Debt instruments issued (*) | TLref + %1 | 511.971 |
| 511.971 |
The Company has issued debt instruments amounting to TRL 500.000 offered exclusively to qualified investors without a public offering in the domestic market. These instruments have a maturity of 364 days, bear a variable interest rate of BIST TRLREF + 100 bps, feature two coupon payments, and are set to mature on March 13, 2026.
As of 31 March 2025, the interest accrual calculated for the Company's short-term loans is classified within the relevant short-term bank loans, and the interest accrual calculated for the issued debt instruments is classified within the issued debt instruments.
| 31 March 2025 | Interest rate % | Balance |
|---|---|---|
| Short-term portions of long-term borrowings | ||
| Short-term portions of long-term finance leases | 14,00 - 45,00 | 6.309 |
| Short-term portions of long-term loans | TLref + %1 | 53.422 |
| Short-term portions of long-term issued debt instruments (*) | TLref + %1 | 2.575 |
| 62.306 |
As of 31 March 2025, the interest accrual calculated for the short-term parts of the Company's longterm borrowings is classified within the short-term parts of the relevant long-term borrowings.
| 31 March 2025 | Interest rate % | Balance |
|---|---|---|
| Long term borrowings | ||
| TRL loans | TLref + %1 | 170.000 |
| Debt instruments issued (*) | TLref + %1 | 250.000 |
| Long-term lease payables | 34,00 - 45,00 | 162.302 |
| 582.302 |
(*) The Company has issued debt instruments amounting to TRL 250.000, offered exclusively to qualified investors without a public offering in the domestic market. These instruments have a maturity of 730 days, bear a variable interest rate of BIST TRLREF + 100 bps, feature four coupon payments, and are set to mature on September 24, 2026.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The details of the Company's short and long-term borrowings as of 31 December 2024 are as follows;
| 31 December 2024 | Interest rate % | Balance |
|---|---|---|
| Short term borrowings | ||
| TRL loans | 48,00 - 54,00 | 429.332 |
| 429.332 |
As of 31 December 2024, the interest accrual calculated for the Company's short-term loans is classified within the relevant short-term bank loans.
| 31 December 2024 | Interest rate % | Balance |
|---|---|---|
| Short-term portions of long-term borrowings | ||
| Short-term portions of long-term finance leases | 8,45 | 52.012 |
| Short-term portions of long-term loans | TLref + %1 | 30.785 |
| Short-term portions of long-term issued debt instruments | TLref + %1 | 39.551 |
| 122.348 |
As of 31 December 2024, the interest accrual calculated for the short-term parts of the Company's longterm borrowings is classified within the short-term parts of the relevant long-term borrowings.
| 31 December 2024 | Interest rate % | Balance |
|---|---|---|
| Long term borrowings | ||
| TRL loans | TLref + %1 | 187.107 |
| Debt instruments issued (*) | TLref + %1 | 275.158 |
| Long-term lease payables | 14,89 - 21,10 | 95.077 |
| 557.342 |
As of 31 March 2025 and 31 December 2024, the maturity details of the Company's long-term loans and financial lease borrowings are given below:
| Total |
|---|
| liabilities |
| 582.302 |
| 582.302 |
| Total |
| liabilities |
| 557.342 |
| 557.342 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The movement of bank loans is as follows:
| 2025 | 2024 | |
|---|---|---|
| 1 January | 961.932 | 1.592.661 |
| Cash inflows from borrowing | 500.000 | 113.977 |
| Cash outflows related to debt payments | (302.974) | (267.588) |
| Interest expense | 120.381 | 203.022 |
| Interest paid | (211.397) | (253.506) |
| Monetary (gain) / loss | (79.974) | (203.680) |
| 31 March | 987.968 | 1.184.886 |
The movement table of lease liabilities is as follows:
| 2025 | 2024 | |
|---|---|---|
| 1 January | 147.089 | 175.505 |
| Cash outflows related to lease payments for the period | (21.135) | (19.467) |
| Interest expense | 12.091 | 7.104 |
| Contract amendment | 47.410 | - |
| Monetary (gain) / loss | (16.844) | (22.478) |
| 31 March | 168.611 | 140.664 |
The movement table of the right-of-use assets of the Company as of 31 March 2025 and 31 December 2024 is given below:
| Right of use assets | Vehicles | Buildings | Total |
|---|---|---|---|
| As of 1 January 2025 | 35.422 | 133.113 | 168.535 |
| Changes in contracts | - | 47.410 | 47.410 |
| Current depreciation expense (*) | (7.047) | (9.908) | (16.955) |
| As of 31 March 2025 | 28.375 | 170.615 | 198.990 |
(*) TRL 118 of depreciation expenses are included in the cost of goods sold, TRL 3.257 in general administrative expenses, and TRL 13.580 in marketing, sales and distribution expenses.
| Right of use assets | Vehicles Buildings |
Total | ||
|---|---|---|---|---|
| As of 1 January 2024 | 44.457 | 169.720 | 214.177 | |
| Disposal | (2.928) | - | (2.928) | |
| Current depreciation expense (*) | (6.567) | (13.417) | (19.984) | |
| As of 31 March 2024 | 34.962 | 156.303 | 191.265 |
(*) TRL 113 of depreciation expenses are included in the cost of goods sold, TRL 2.077 in general administrative expenses, and TRL 17.794 in marketing, sales and distribution expenses.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Trade receivables from related parties (Note 22) 81.100 47.044 Trade receivables from third parties 96.173 97.365 177.273 144.409 Trade receivables from third parties 31 March 2025 31 December 2024 Cheques and notes receivables 201 1.732 Trade receivables 103.879 103.845 Provisions for doubtful trade receivables (-) (7.907) (8.212) 96.173 97.365 2025 and 2024, the movement table for doubtful trade receivables is as follows: 2025 2024 1 January 8.212 10.136 Provision provided during the period 495 - Reversal of provision (5) - Monetary (gain) / loss (795) (1.327) 31 March 7.907 8.809 31 March 2025 31 December 2024 Trade payables Trade payables to related parties (Note 22) 20.477 7.912 Trade payables to third parties 154.180 138.431 174.657 146.343 Trade payables to third parties 31 March 2025 31 December 2024 Suppliers 154.093 131.663 Other trade payables 8 7 6.768 154.180 138.431 - Other receivables and payables Other receivables 31 March 2025 31 December 2024 Other receivables from third parties 1.178 1.678 1.178 1.678 |
Trade Receivables | 31 March 2025 | 31 December 2024 | |
|---|---|---|---|---|
| As of 31 March | ||||
| NOTE 8 | ||||
| Other receivables from third parties | 31 March 2025 31 December 2024 | |
|---|---|---|
| Receivables from employees | 702 | 1.095 |
| Deposits and guarantees given | 348 | 386 |
| Other miscellaneous receivables | 128 | 197 |
| 1.178 | 1.678 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Other payables | 31 March 2025 31 December 2024 | ||
|---|---|---|---|
| Other payables to third parties | 3.973 | 4.214 | |
| 3.973 | 4.214 | ||
| Other payables to third parties | 31 March 2025 31 December 2024 | ||
| Taxes, fees and deductions payable | 3.079 | 3.469 | |
| Other | 894 | 745 | |
| 3.973 | 4.214 | ||
| Employee benefit obligations | 31 March 2025 31 December 2024 | ||
| Payables to employees | 79.312 | 68.838 | |
| Social security premiums payable | 23.897 | 10.288 | |
| Taxes, fees and deductions payable | 9.679 | 39.879 | |
| 112.888 | 119.005 | ||
| Long-term employee benefit obligations | 31 March 2025 31 December 2024 | ||
| Payables to employees | 2.269 | 2.548 | |
| 2.269 | 2.548 |
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Raw materials | 276.012 | 231.514 |
| Semi-finished goods | 113.260 | 112.121 |
| Finished goods | 370.767 | 293.706 |
| Trade goods | 212.876 | 246.598 |
| Other inventories | 12.826 | 12.625 |
| Provision for impairment of inventories (-) (*) | (27.689) | (27.689) |
| 958.052 | 868.875 |
(*) As of 31 March 2025 and 2024, the movement table regarding the stock impairment provision allocated as a result of the evaluation regarding the recoverability of stocks is as follows:
| 2025 | 2024 | |
|---|---|---|
| 1 January | 27.689 | 25.992 |
| Provisions no longer required (-) | - | - |
| 31 March | 27.689 | 25.992 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Lands | Land improvements and buildings |
Buildings | Machinery and equipment |
Vehicles | Furniture and fixtures |
Construction in progress |
Special Cost | Total | |
|---|---|---|---|---|---|---|---|---|---|
| As of 1 January 2025, |
|||||||||
| Cost | 47.709 | 22.602 | 745.473 | 1.040.786 | 16.677 | 283.299 | 28.956 | 5.029 | 2.190.531 |
| Accumulated depreciation |
- | (20.767) | (153.683) | (873.937) | (16.649) | (252.291) | - | (3.825) | (1.321.152) |
| Net book value |
47.709 | 1.835 | 591.790 | 166.849 | 2 8 |
31.008 | 28.956 | 1.204 | 869.379 |
| Opening balance |
47.709 | 1.835 | 591.790 | 166.849 | 2 8 |
31.008 | 28.956 | 1.204 | 869.379 |
| Additions | - | - | - | 569 | - | 3.463 | 14.526 | - | 18.558 |
| Depreciation (*) |
- | (75) | (3.760) | (10.538) | (5) | (2.782) | - | (102) | (17.262) |
| Closing balance |
47.709 | 1.760 | 588.030 | 156.880 | 2 3 |
31.689 | 43.482 | 1.102 | 870.675 |
| As of 31 2025, March |
|||||||||
| Cost | 47.709 | 22.602 | 745.473 | 1.041.355 | 16.677 | 286.762 | 43.482 | 5.029 | 2.209.089 |
| Accumulated depreciation |
- | (20.842) | (157.443) | (884.475) | (16.654) | (255.073) | - | (3.927) | (1.338.414) |
| Net book value |
47.709 | 1.760 | 588.030 | 156.880 | 2 3 |
31.689 | 43.482 | 1.102 | 870.675 |
(*) TRL 13.481 of depreciation expenses are included in the cost of goods sold, TRL 612 in general administrative expenses, TRL 637 in research and development expenses and TRL 2.532 in marketing, sales and distribution expenses.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Lands | Land improvements and buildings |
Buildings | Machinery and equipment |
Vehicles | Furniture and fixtures |
Construction in progress |
Special Cost | Total |
|---|---|---|---|---|---|---|---|---|
| As of 1 2024, January |
||||||||
| Cost 47.709 |
22.602 | 743.246 | 1.028.012 | 16.677 | 278.372 | - | 5.752 | 2.142.370 |
| Accumulated depreciation |
(20.456) - |
(135.751) | (835.265) | (16.637) | (246.482) | - | (2.354) | (1.256.945) |
| 47.709 Net book value |
2.146 | 607.495 | 192.747 | 4 0 |
31.890 | - | 3.398 | 885.425 |
| Opening 47.709 balance |
2.146 | 607.495 | 192.747 | 4 0 |
31.890 | - | 3.398 | 885.425 |
| Additions | - - |
- | 3.172 | - | 3.157 | 8.053 | - | 14.382 |
| Disposal cost |
- - |
- | - | - | (3.341) | - | - | (3.341) |
| Disposal depreciation |
- - |
- | - | - | 1.799 | - | - | 1.799 |
| Depreciation (*) |
(75) - |
(3.987) | (10.375) | (14) | (3.322) | - | (97) | (17.870) |
| Closing balance 47.709 |
2.071 | 603.508 | 185.544 | 2 6 |
30.183 | 8.053 | 3.301 | 880.395 |
| As of 31 March 2024, |
||||||||
| Cost 47.709 |
22.602 | 743.246 | 1.031.184 | 16.677 | 278.188 | 8.053 | 5.752 | 2.153.411 |
| Accumulated depreciation |
(20.531) - |
(139.738) | (845.640) | (16.651) | (248.005) | - | (2.451) | (1.273.016) |
| Net book value 47.709 |
2.071 | 603.508 | 185.544 | 2 6 |
30.183 | 8.053 | 3.301 | 880.395 |
(*) TRL 13.922 of depreciation expenses is included in the cost of goods sold, 401 TRL is included in general administrative expenses, 367 TRL is included in research and development expenses, and 3.180 TRL is included in marketing, sales and distribution expenses.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Intangible assets include computer software, rights and development costs.
| License | Other intangible | Total | |||
|---|---|---|---|---|---|
| Rights | Developments | agreements | assets | ||
| As of 1 January 2025, | |||||
| Cost | 3.532 | 96.639 | 262.675 | 22.370 | 385.216 |
| Accumulated amortizations | (3.296) | (34.017) | (227.775) | (22.492) | (287.580) |
| Net book value | 236 | 62.622 | 34.900 | (122) | 97.636 |
| Opening balance | 236 | 62.622 | 34.900 | (122) | 97.636 |
| Additions | - | - | - | - | - |
| Depreciation (*) | (27) | (4.554) | (2.794) | (620) | (7.995) |
| End of the period | 209 | 58.068 | 32.106 | (742) | 89.641 |
| As of 31 March 2025, | - | ||||
| Cost | 3.532 | 96.639 | 262.675 | 22.370 | 385.216 |
| Accumulated amortizations | (3.323) - |
(38.571) - |
(230.569) - |
(23.112) - |
(295.575) - |
| Net book value | 209 | 58.068 | 32.106 | (742) | 89.641 |
(*) For the current period, amortization shares include TRL 4.584 in the cost of goods sold, TRL 666 in general administrative expenses, TRL 1.477 in research and development expenses and TRL 1.268 in marketing, sales and distribution expenses, has been made.
| Rights | Developments | License agreements |
Other intangible assets |
Total | |
|---|---|---|---|---|---|
| As of 1 January 2024, | |||||
| Cost | 3.532 | 94.837 | 252.126 | 20.832 | 371.327 |
| Accumulated amortizations | (3.106) | (15.019) | (210.574) | (17.096) | (245.795) |
| Net book value | 426 | 79.818 | 41.552 | 3.736 | 125.532 |
| Opening balance | 426 | 79.818 | 41.552 | 3.736 | 125.532 |
| Additions | - | - | - | - | - |
| Depreciation (*) | (47) | (4.575) | (5.561) | - | (10.183) |
| End of the period | 379 | 75.243 | 35.991 | 3.736 | 115.349 |
| As of 31 March 2024, | |||||
| Cost | 3.532 | 94.837 | 252.126 | 20.832 | 371.327 |
| Accumulated amortizations | (3.153) | (19.594) | (216.135) | (17.096) | (255.978) |
| Net book value | 379 | 75.243 | 35.991 | 3.736 | 115.349 |
(*) For the current period, amortization shares include TRL 3.139 in the cost of goods sold, TRL 519 in general administrative expenses, TRL 1.483 in research and development expenses, and TRL 5.043 in marketing, sales and distribution expenses, has been made.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Provisions for lawsuits | 5.261 | 5.782 |
| 5.261 | 5.782 |
15 employees of the Company have filed 15 lawsuits against the Company for the cancellation of their employment contracts, reinstatement and other compensation claims and a provision for lawsuits amounting to TRL 5.261 has been set aside as a result of the evaluations of the lawyers in relation to the related lawsuits.
| As of 31 March, | 5.261 | 258 |
|---|---|---|
| Monetary (gain) / loss | (521) | (39) |
| As of 1 January, | 5.782 | 297 |
| 2025 | 2024 |
The Company's was unable to collect its receivable of TRL 60 arising from its current account relationship with its customer. As a result, enforcement proceedings were initiated under Istanbul 18th Enforcement Directorate file numbers 2012/20785E and 2012/18797E, as well as Kartal 1st Enforcement Directorate file number 2012/6142E. The sale of the seized real estate was requested on October 7, 2013. The valuation report has been notified, and the real estate sales process is ongoing.
2014/14137E, 2014/15246E, 2014/16896E, filed under Izmir 2, 8, 10 and 14th Enforcement Directorate, as a result The Company's inability to collect its receivable of TRL 594 arising from its current account relationship with its customer and 2015/574E, enforcement proceedings were initiated against the debtor company, and a payment order notification was issued against the debtor company, by proceeding with the main proceeding through a lien specific to bills of exchange. Investigations continue for the purpose of collecting the receivable.
There are commercial lawsuits filed against The Company's by the employees of the two subcontractors, whose contracts the Company's terminated as of 31 August 2013, due to their failure to fulfill their legal obligations towards their employees, within the framework of the principles of joint and several liability. Provision has been made as of 31 March 2025. The company has objected to the enforcement proceedings in question and the proceedings are continuing.
Following the failure of The Company's to collect its receivables arising from its current account relationship with its customer, a lawsuit was filed with the file number 2016/12354 E (New Basis: 2021/14645 E.) filed within the Istanbul Anatolian 17th Enforcement Directorate. Provision has been made for the amount. Main proceedings have been initiated and the assets recorded on the debtor have been inquired about. There are no assets registered in the name of the debtor, investigations are continuing to collect the receivable.
Following the inability of The Company's to collect due to its current account relationship with its customer, a receivable was recorded in the bankruptcy estate with the file number 2017/32 at Istanbul Anadolu 3rd Bankruptcy Directorate. A provision has been made for the said amount. The aforementioned lawsuits do not have a material impact on the Company's financial position, operating results, or liquidity.
The Company's has initiated follow-up with the file number 2024/25778 E within the Gebze Enforcement Office, since the 495 TRL advance payment with its supplier could not be collected, and the corresponding amount was obtained. The main follow-up has been initiated and the assets registered under the debtor have been inquired. There are no assets registered under the debtor's name, and the investigation is ongoing for the purpose of collecting the money.
The lawsuits in question are not of a nature that could significantly affect the Company's operating results, financial position or liquidity.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Deposits and guarantees given | 31 March 2025 | 31 December 2024 |
|---|---|---|
| Letters of guarantee | 12.706 | 17.796 |
| Letter of credit commitments | 41.389 | 42.486 |
As of 31 March 2025 and 31 December 2024, the tables regarding the Company's collateral/pledge/mortgage ("CPM") position are as follows:
| Letter of guarantees, pledge and mortgages provided by the Company | TRL equivalents | EUR | TRL | |
|---|---|---|---|---|
| A. Total amount of GPMs given on behalf of the Company's legal personality | 12.706 | 2 | 12.610 | |
| B. | Total amount of GPMs given in favor of subsidiaries included in full consolidation |
- | - | - |
| Total amount of GPMs given by the Company for the liabilities of 3rd parties | ||||
| C. | in | - | - | - |
| order to run ordinary course of business | ||||
| D. Total amount of other GPM's | - | - | - | |
| i. Total amount of GPMs given in favor of the parent Company | - | - | - | |
| ii. Total amount of GPMs given in favor of other group companies not in the | ||||
| scope | - | - | - | |
| of B and C above | ||||
| iii. Total amount of GPMs given in favor of third party companies not in the | ||||
| scope of C above | - | - | - | |
| 12.706 | 2 | 12.610 |
| Letter of guarantees, pledge and mortgages provided by the Company | TRL equivalents | EUR | TRL | |
|---|---|---|---|---|
| A. Total amount of GPMs given on behalf of the Company's legal personality | 17.796 | - | 17.796 | |
| B. | Total amount of GPMs given in favor of subsidiaries included in full consolidation |
- | - | - |
| in | C. Total amount of GPMs given by the Company for the liabilities of 3rd parties | - | - | - |
| order to run ordinary course of business D. Total amount of other GPM's |
- | - | - | |
| i. Total amount of GPMs given in favor of the parent Company | - | - | - | |
| ii. Total amount of GPMs given in favor of other group companies not in the scope of B and C above |
- | - | - | |
| iii. Total amount of GPMs given in favor of third party companies not in the scope of C above |
- | - | - | |
| 17.796 | - | 17.796 |
The ratio of other CPMs given by the Company to the Company's equity capital is 0% as of 31 March 2025 (31 December 2024: 0%).
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Short term employee benefits | 31 March 2025 | 31 December 2024 |
|---|---|---|
| Premium accruals | 18.458 | 12.539 |
| Provisions for unused vacations | 8.664 | 2.608 |
| 27.122 | 15.147 | |
| Long term employee benefits | 31 March 2025 | 31 December 2024 |
| Provisons for employment termination benefits | 34.860 | 36.762 |
| 34.860 | 36.762 |
The movement table of unused vacation accruals as of 31 March 2025 and 2024 is as follows:
| 2025 | 2024 | |
|---|---|---|
| As of 1 January, | 2.608 | 4.093 |
| Addition | 8.464 | 6.244 |
| Provision for vacation used | (2.020) | (1.440) |
| Monetary (gain) / loss | (388) | (536) |
| As of 31 March | 8.664 | 8.361 |
In accordance with the provisions of the Labor Law in force, there is an obligation to pay the legal severance pay to employees whose employment contract has ended so that they are entitled to severance pay. In addition, in accordance with the legislation currently in force, there is an obligation to pay the legal severance pay to those who have the right to leave the job by receiving severance pay. As of 1 January 2025, the severance pay to be paid is subject to a monthly ceiling of full TRL 46.655,43 (1 January 2024: full TRL 35.058,58). Severance pay liability is not legally subject to any funding. Severance pay liability is calculated based on the estimation of the present value of the company's possible future liability arising from the retirement of employees. TAS 19 ("Employee Benefits") requires the company to develop its liabilities within the scope of defined monthly plans using actuarial valuation methods. Accordingly, the actuarial assumptions used in calculating total liabilities are stated below:
Severance pay liability is not legally subject to any funding. The severance pay provision is calculated by estimating the present value of the future probable obligation of the company arising from the retirement of its employees. TAS 19 ("Employee Benefits") requires the company's liabilities to be developed using actuarial valuation methods within the scope of defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of total liabilities are as follows:
The main assumption is that the maximum liability for each year of service increases in line with inflation. Therefore, the discount rate applied represents the expected real rate after adjusting for the effects of future inflation. As of 31 March 2025 and 31 December 2024, provisions in the attached financial statements are calculated by estimating the present value of the possible future liability arising from the retirement of employees.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 2025 | 2024 | |
|---|---|---|
| As of 1 January | 36.762 | 45.908 |
| Service cost | (761) | 8.901 |
| Severance pay paid | (2.308) | (946) |
| Actuarial (gain) / loss | 4.429 | (15.288) |
| Monetary (gain) / loss | (3.262) | (6.197) |
| 31 March | 34.860 | 32.378 |
| 31 March 2025 31 December 2024 | ||
| Discount rate (%) | 2,58 | 2,58 |
| Turnover rate used in retirement probability calculation (%) | 92,64 | 92,82 |
| NOTE 14 - Other assets and liabilities |
||
| Short-term prepaid expenses | 31 March 2025 | 31 December 2024 |
| Advances given | 55.682 | 14.960 |
| Prepaid expenses for the coming months | 18.865 | 4.987 |
| 74.547 | 19.947 | |
| Current tax assets | 31 March 2025 | 31 December 2024 |
| Prepaid taxes and funds | 123.332 | 133.949 |
| 123.332 | 133.949 | |
| Other current assets | 31 March 2025 | 31 December 2024 |
| Deffered VAT | 88.036 | 78.088 |
| Other miscellaneous current assets | 167 | 7 1 |
| 88.203 | 78.159 | |
| Long-term prepaid expenses | 31 March 2025 | 31 December 2024 |
| Prepaid expense for the following years | 14.078 | 18.229 |
| 14.078 | 18.229 | |
| Deffered income | 31 March 2025 | 31 December 2024 |
| Advances received | 156.384 | 67.197 |
| 156.384 | 67.197 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The shareholders of the Company and their shares in the capital are given below.
| 31 March 2025 | 31 December 2024 | |||
|---|---|---|---|---|
| % Share | Balance | % Share | Balance | |
| AG Anadolu Grubu Holding A.Ş. | 56,89 | 147.831 | 56,89 | 147.831 |
| Faber - Castell Aktiengesellschaft | 15,40 | 40.017 | 15,40 | 40.017 |
| Shares publicly held | 27,71 | 72.027 | 27,71 | 72.027 |
| Paid in capital | 100,00 | 259.875 | 100,00 | 259.875 |
| Inflation adjustment to share capital | 375.318 | 375.318 | ||
| Total capital | 635.193 | 635.193 |
Capital adjustment differences express the effect of realigning cash additions to paid-in capital with year-end purchasing power.
Number of shares, share groups and privileges:
The Company has 40.017.351 registered shares amounting to TRL 40.017 and 219.857.649 registered shares amounting to TRL 219.858 in accordance with the Foreign Capital Legislation. There are no privileges granted to shareholders in the election of the board of directors.
According to the Turkish Commercial Code, legal reserves are divided into two: first and second legal reserves. According to the Turkish Commercial Code, the first legal reserves are allocated as 5% of the legal net profit until 20% of the company's paid capital is reached. The second set of legal reserves is 10% of the distributed profit exceeding 5% of the paid capital. According to the Turkish Commercial Code, as long as legal reserves do not exceed 50% of the paid-in capital, they can only be used to offset losses and cannot be used in any other way. As a result of the sale of the company's real estate and participation shares, which are evaluated within the scope of Article 5/e of the Corporate Tax Law No. 5520, 75% of the sales profit is classified as "Profit from the sale of real estate and participation shares".
| 31 March 2025 31 December 2024 | ||
|---|---|---|
| Legal reserves | 325.291 | 325.291 |
| Gain on sale of real estate and associate shares | 1.606 | 4.633 |
| R&D investment fund | 1.736 | 1.737 |
| 328.633 | 331.661 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Publicly listed companies distribute dividends in accordance with the requirements of CMB as explained below:
| 31 March 2025 31 December 2024 | ||
|---|---|---|
| Other retained earnigs /(losses) | 416.600 | 371.188 |
| Extraordinary reserves | 217.251 | 239.115 |
| 633.851 | 610.303 |
As of 31 March 2025 and 2024, the fund items included in shareholders' equity in the financial statements prepared in accordance with the Tax Procedure Law are as follows.
| 31 March 2025 | |||
|---|---|---|---|
| Retained Earnings | CPI Adjusted Statuary Entrys |
PPI Adjusted Statuary Entrys |
Followed ammount of |
| Adjustments to share capital | 472.380 | 375.318 | 97.062 |
| Reserves on retained erning | 361.774 | 328.633 | 33.141 |
In accordance with the CMB decision numbered 7/242 dated 25 February 2005; If the profit distribution amount calculated in accordance with the CMB's regulations regarding the minimum profit distribution obligation, based on the net distributable profit found in accordance with the CMB regulations, can be fully covered from the distributable profit in the legal records, this entire amount will be distributed, and if not, the entire net distributable profit in the legal records will be distributed. If there is a period loss in the financial statements prepared in accordance with CMB regulations or in any of the legal records, no profit distribution will be made. With the decision of the CMB dated 27 January 2010, it was decided not to impose any minimum profit distribution obligation on dividend distribution for publicly held joint stock companies whose shares are traded on the stock exchange.
Capital increase, free of charge, capital inflation adjustment differences and registered values of extraordinary reserves; It can be used for cash profit distribution or loss offset. However, equity inflation adjustment differences are subject to corporate tax if used in cash profit distribution.
The company management took the profit distribution decision at the general meeting. In case of distribution of these profits, the entire profit distribution amount will be covered from the distributable profit in the legal records.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 1 January - 31 March 2025 |
1 January - 31 March 2024 |
|
|---|---|---|
| Domestic sales | 393.649 | 1.291.243 |
| Export sales | 26.300 | 51.427 |
| Sales discounts (-) | (142.835) | (426.384) |
| Net sales | 277.114 | 916.286 |
| Cost of sales (-) | (170.368) | (389.789) |
| Gross profit | 106.746 | 526.497 |
The breakdown of the cost of sales by periods is as follows:
| 1 January - 31 March 2025 |
1 January - 31 March 2024 |
|
|---|---|---|
| Direct material cost | 66.696 | 100.057 |
| Direct labour costs | 68.125 | 70.776 |
| General production expenses | 30.369 | 33.976 |
| Depreciation and amortization expenses | 18.184 | 17.174 |
| Change in semi-finished goods | (1.139) | (37.024) |
| Change in finished goods | (77.061) | 103.435 |
| Cost of products sold | 105.174 | 288.394 |
| Cost of goods sold | 65.194 | 101.395 |
| Cost of sales | 170.368 | 389.789 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 1 January - | 1 January - | |
|---|---|---|
| 31 March 2025 | 31 March 2024 | |
| Other income from operating activities | ||
| Foreign exchange gain | 2.718 | 6.047 |
| Rediscount interest income | - | 6.618 |
| Other | 186 | 1.533 |
| 2.904 | 14.198 | |
| 1 January - | 1 January - | |
| 31 March 2025 | 31 March 2024 | |
| Other expenses from operating activities | ||
| Foreign exchange losses | 3.800 | 5.598 |
| Provision for doubtful trade receivables (Note 7) | 495 | - |
| Rediscount interest expense | - | 54.589 |
| Other | 647 | 674 |
| 1 January - | 1 January - | |
|---|---|---|
| 31 March 2025 | 31 March 2024 | |
| Income from investment activities | ||
| Gain on sale of property, plant and equipment | 1 9 | 2 7 |
| Other | - | 5 6 |
| 1 9 | 8 3 | |
| 1 January - | 1 January - | |
| 31 March 2025 | 31 March 2024 | |
| Expense from investment activities | ||
| Loss on sale of property, plant and equipment | - | 165 |
| Transfer of foreign currency translation | ||
| differences previously recognized in other | ||
| comprehensive income to the statement | - | 6.253 |
| of income | ||
| - | 6.418 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| NOTE 19 - Finance income and expenses |
||
|---|---|---|
| 1 January - | 1 January - | |
| 31 March 2025 | 31 March 2024 | |
| Finance income | ||
| Income from derivative transactions | 32.924 | - |
| Interest income | 10.923 | 98.177 |
| Foreign exchange income | 1.462 | 14.377 |
| Currency-protected deposit income | - | 9.851 |
| Interest income from sublease receivables | - | 280 |
| 45.309 | 122.685 | |
| 1 January - 31 March 2025 |
1 January - 31 March 2024 |
|
| Finance expenses | ||
| Interest expenses | 132.472 | 210.126 |
| Foreign exchange losses | 1.507 | 7 2 |
| 133.979 | 210.198 |
The company is subject to taxation within the scope of the tax laws and other legislation of the countries in which it operates.
In Turkey, the corporate tax rate is 25%. The corporate tax return must be declared by the evening of the twenty-fifth day of the fourth month following period. It must be paid in one piece by the end of this month. In accordance with the tax legislation, provisional tax is calculated and paid at the corporate tax rate on the earnings generated quarterly, and the amounts paid in this way are offset from the tax calculated on annual earnings.
In accordance with the tax legislation in Turkey, financial losses can be carried forward for a maximum of five years following the year in which they occurred. In addition, tax declarations and relevant accounting records can be examined by the tax administration within five years.
| 1 January - | 1 January - | |
|---|---|---|
| 31 March 2025 | 31 March 2024 | |
| Current period statutory tax provision (-) | - | (50.286) |
| Deferred tax income/(expense) | 17.086 | 9.671 |
| Total deferred tax income, net | 17.086 | (40.615) |
| 31 March 2025 | 31 December 2024 | |
| Period income tax provision | - | - |
| Prepaid tax expenses (-) | 123.332 | 133.949 |
| Profit for the period tax (liability)/receivable, net | 123.332 | 133.949 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The profits obtained by the Company from its investments subject to incentive certificates are subject to corporate tax at reduced rates, starting from the accounting period in which the investment is partially or fully operated, until it reaches the contribution amount to the investment.
Within the scope of the Company's incentive certificates, there is no reduced corporate tax advantage used against the current period legal tax. (31 March 2024: TRL 0)
The company capitalizes its R&D expenditures within the scope of Law No. 5746 in its legal books. According to the provisions of the same law, by calculating the R&D expenditures made by the Company within the framework of the relevant legislation, it benefits from the R&D discount for the part of the R&D expenditures allowed by law.
As of March 31, 2025, the Company has not used the R&D discount advantage in return for legal tax (December 31, 2024: TRL 1.651). The tax advantage of TRL 8.638 (December 31, 2024: not available) that will be used in the future on the unused R&D discount is included in the financial statements as a deferred tax asset. There is a deferred tax expense of TRL 8.638 deducted in the profit or loss statement for the period January 1 - March 31, 2025 related to the deferred tax asset.
Deferred tax assets are recorded when it is determined that taxable income will be generated in the future years. In cases where taxable income is likely to be generated, deferred tax assets are calculated based on deductible temporary differences, tax losses and tax advantages earned due to unlimited-life investment discounts that allow for reduced corporate tax payments. In this context, the Company bases the reflection of deferred tax assets arising from investment incentives on long-term plans and evaluates the recoverability of deferred tax assets related to such investment discounts as of each balance sheet date, based on business models that include taxable profit estimates. It is anticipated that such deferred tax assets will be recovered within 5 years from the balance sheet date.
In the sensitivity analysis conducted as of March 31, 2025, there was no change in the recovery period of deferred tax assets related to investment incentives, which was foreseen as 5 years, when the inputs included in the basic macroeconomic and sectoral assumptions constituting the business plans were increased/decreased by 10%.
| Total temprorary differences | Deferred tax | |||
|---|---|---|---|---|
| 31 March 2025 31 December 2024 | 31 March 2025 31 December 2024 | |||
| Tangible and intangible assets | (8.800) | 11.414 | (2.200) | 2.853 |
| Provision for employment termination benefits | 34.700 | 34.187 | 8.675 | 8.547 |
| Turnover and dealer premium provisions | 57.444 | - | 14.361 | - |
| R&D discount | 34.552 | - | 8.638 | - |
| Inventory, provision for impairment on inventories | (173.459) | (151.618) | (43.365) | (37.904) |
| Incentive premium accrual | 20.407 | 12.591 | 5.102 | 3.148 |
| Lease services | (30.378) | (21.446) | (7.595) | (5.362) |
| Other adjustments | 30.787 | 9.385 | 7.694 | 2.347 |
| Deferred tax asset/(liability), net | (34.747) | (105.487) | (8.690) | (26.371) |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 2025 | 2024 | |
|---|---|---|
| 1 January | (26.371) | 38.298 |
| Deferred tax expense/(income) | 17.086 | 9.671 |
| Severance pay accounted under equity | 1.068 | (3.821) |
| effect of remeasurement differences | ||
| Impact of derivative financial instruments | (473) | (686) |
| 31 March | (8.690) | 43.462 |
Earnings per share is calculated by dividing the profit for the period by the weighted average number of shares of the Company during the period. The Company's earnings per share calculation is as follows.
| 1 January - | 1 January - | |
|---|---|---|
| 31 March 2025 | 31 March 2024 | |
| Profit /(loss) for the period | (200.727) | 120.804 |
| Average number of shares | ||
| (weighted average number of shares | ||
| with a nominal value of TRL 1 per share) | 259.875.000 | 23.625.000 |
| Earnings per share / (loss) (Full TRL) | (0,7724) | 5,1134 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Receivables from related parties | ||
|---|---|---|
| 31 March 2025 | 31 December 2024 | |
| Migros Ticaret A.Ş. (2) | 29.432 | 33.020 |
| A.W.Faber-Castell Vertrieb GmbH (2) | 7.382 | 3.485 |
| A.W.Faber Castell (M) (2) | 27.940 | - |
| AEP Anadolu Etap Penkon (2) | 1.620 | 716 |
| A.W.Faber Castell (1) | 2.167 | - |
| Anadolu Sağlık Merkezi Hastanesi A.Ş. (2) | - | 7.429 |
| Other | 12.559 | 2.394 |
| 81.100 | 47.044 |
| Payable to related parties | ||
|---|---|---|
| 31 March 2025 | 31 December 2024 | |
| AEH Sigorta Acentalığı A.Ş. (2) | 11.891 | 1 9 |
| AG Anadolu Grubu Holding A.Ş. (1) | 8.271 | 7.362 |
| A.W.Faber Castell Brezilya S.A. (2) | 231 | 237 |
| Other | 8 4 | 294 |
| 20.477 | 7.912 |
1) Partners
2) Related party of AG Anadolu Grubu Holding A.Ş. and Faber-Castell Aktiengesellschaft (a shareholder)
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 1 January - | 1 January - | |
|---|---|---|
| 31 March 2025 | 31 March 2024 | |
| Purchases of goods | ||
| A.W.Faber-Castell Vertrieb GmbH (2) | 1.325 | 4.072 |
| A.W.Faber Castell (M) Sdn.Bhd. (2) | 11.265 | - |
| P.T.A.W.Faber Castell Ind. (2) | 2.423 | 6.765 |
| 15.013 | 10.837 | |
| 1 January - | 1 January - | |
| 31 March 2025 | 31 March 2024 | |
| Sales of goods | ||
| Migros Ticaret A.Ş. (2) | 23.850 | 83 |
| A.W.Faber-Castell Vertrieb GmbH (2) | - | 2.036 |
| A.W.Faber Castell Brazil S.A.(2) | - | 910 |
| Other | 354 | 78 |
| 24.204 | 3.107 | |
| 1 January - | 1 January - | |
| 31 March 2025 | 31 March 2024 | |
| Services received | ||
| AG Anadolu Grubu Holding A.Ş. (1) | 18.267 | 16.251 |
| Anadolu Efes Spor Kulübü (2) | 10.242 | - |
| Diğer | 98 | 16 |
| 28.607 | 16.283 | |
| 1 January - | 1 January - | |
| 31 March 2025 | 31 March 2024 | |
| Services given | ||
| Anadolu Kafkasya Enerjı Yatırımları A.Ş. (2) | 1.050 | 1.062 |
| AEP Anadolu Etap Penkon Gıda ve Tarım Ürün San ve Tic A.Ş (2) | 4.868 | 4.249 |
| Other | 61 | 356 |
| 5.979 | 6.023 |
1) Partners
2) Related party of AG Anadolu Grubu Holding A.Ş. and Faber-Castell Aktiengesellschaft (a shareholder)
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Key management personnel consist of the Head of the Agriculture, Energy and Industry Group, the General Manager and the managers who report directly to the General Manager. Benefits for senior executives are as follows:
| 2025 | 2024 | |
|---|---|---|
| Short-term employee benefits | 39.112 | 29.169 |
| Other long-term benefits | 3.519 | 861 |
| 31 March | 47.993 | 30.030 |
The Company manages its capital to ensure that it will maintain its status as a going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance, The capital structure of the Company consists of debt, which includes the borrowings and other debts, cash and cash equivalents and equity attributable to equity holders of the parent, comprising issued capital, reserves and retained earnings.
The management of the Company considers the cost of capital and the risks associated with each class of capital. The management of the Company aims to balance its overall capital structure through the payment of dividends, new share issues and the issue of new debt or the redemption of existing debt. The Company controls its capital using the net debt / total equity ratio. This ratio is the calculated as net debt divided by total equity.
Net debt is calculated as total liability (comprises of financial liabilities, leasing and trade payables as presented in the statement of financial position) less cash and cash equivalents.
As of 31 March 2025 and 31 December 2024, net debt/(equity+net debt) ratio is as follows:
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Total borrowings | 1.156.579 | 1.109.021 |
| Less: Cash and cash equivalents | (475.773) | (725.684) |
| Net debt | 680.806 | 383.337 |
| Total equity | 1.392.234 | 1.594.908 |
| Total equity + net debt | 2.073.040 | 1.978.245 |
| Net debt / (total equity+net debt) ratio | 33% | 19% |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
Financial instruments have a counterparty risk as they may not fulfill requirements of the agreement. The Company manages credit risk by constantly evaluating the credibility of the related parties and by determining counterparty credit limits and due dates on a customer basis. Company also receives collaterals from customers as needed. Instruments that increase the credit reliability as guarantees received to determine the maximum amount of credit risk as of reporting date, are not taken into account.
Concentrations of credit risk arise when a number of counterparties are engaged in similar business activities or activities in the same geographic region, or have similar economic features that would cause their ability to meet contractual obligations to be similarly affected by changes in economic, political or other conditions. Concentrations of credit risk indicate the relative sensitivity of the Company's performance to developments affecting a particular industry or geographic location.
Transactions in foreign currency cause the exchange rate risk to occur.
The Company is exposed to exchange rate risk due to changes in the exchange rates used in the conversion of foreign currency assets and liabilities into Turkish lira. Currency risk arises due to future commercial transactions and the difference between recorded assets and liabilities.
The TRL equivalents of foreign currency assets and liabilities held by the Company are as follows:
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Assets | 103.407 | 72.661 |
| Liabilities | (62.043) | (19.772) |
| Net balance sheet foreign currency position | 41.364 | 52.889 |
The Company is exposed to currency risk mainly in US Dollar and Euro.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| Profit/Loss 31 March 2025 | Appreciation of foreign currency |
Depreciation foreign currency |
|---|---|---|
| If the US Dollar changes 20% +/- against TRL : | ||
| 1- USD net asset/liability | 7.478 | (7.478) |
| 2- Part hedged against USD risk (-) (*) | - | - |
| 3- USD net effect (1+2) | 7.478 | (7.478) |
| In case the Euro changes 20% +/- against TRL: | ||
| 4- Euro net asset/liability | 795 | (795) |
| 5- Hedged portion from Euro risk (-) | - | - |
| 6- Euro net effect (4+5) | 795 | (795) |
| On average 20% +/- change in other exchange rates against TRL: | ||
| 7- Other foreign currency net asset/liability | - | - |
| 8- Hedged portion from other exchange rate risk (-) | - | - |
| 9- Net effect on other FX assets (7+8) | - | - |
| 8.273 | (8.273) |
| Profit/Loss 31 December 2024 | Appreciation of foreign currency |
Depreciation foreign currency |
|---|---|---|
| If the US Dollar changes 20% +/- against TRL : | ||
| 1- USD net asset/liability | 10.095 | (10.095) |
| 2- Part hedged against USD risk (-) (*) | - | - |
| 3- USD net effect (1+2) | 10.095 | (10.095) |
| In case the Euro changes 20% +/- against TRL: 4- Euro net asset/liability |
483 | (483) |
| 5- Hedged portion from Euro risk (-) | - | - |
| 6- Euro net effect (4+5) | 483 | (483) |
| On average 20% +/- change in other exchange rates against TRL: | ||
| 7- Other foreign currency net asset/liability | - | - |
| 8- Hedged portion from other exchange rate risk (-) | - | - |
| 9- Net effect on other FX assets (7+8) | - | - |
| 10.578 | (10.578) |
(*) The effect of derivative instruments for hedging purposes is not taken into account.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
It summarizes the Company's foreign currency position risk. The recorded amounts of foreign currency assets and liabilities held by the Company are as follows. by foreign currency type:
| 31 March 2025 | 31 December 2024 | |||||||
|---|---|---|---|---|---|---|---|---|
| TRL equivalent | USD | Avro | Other | TRL equivalent | USD | Avro | Other | |
| 1. Trade receivables | 16.638 | 352 | 82 | - | 16.562 | 285 | 136 | - |
| 2a. Monetary financial assets | 11.675 | 278 | 29 | - | 38.767 | 1.000 | - | - |
| 2b. Non-monetary financial assets | - | - | - | - | - | - | - | - |
| 3. Other | 75.094 | 1.791 | 183 | - | 17.331 | 432 | 15 | - |
| 4. Total current assets (1+2+3) | 103.407 | 2.421 | 294 | - | 72.660 | 1.717 | 151 | - |
| 5. Trade receivables | - | - | - | - | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - | - | - | - | - |
| 6b. Non-monetary financial assets | - | - | - | - | - | - | - | - |
| 7. Other | - | - | - | - | - | - | - | - |
| 8. Total non-current assets (5+6+7) | - | - | - | - | - | - | - | - |
| 9. Total assets (4+8) | 103.407 | 2.421 | 294 | - | 72.660 | 1.717 | 151 | - |
| 10. Trade payables | 57.541 | 1.314 | 195 | - | 15.986 | 319 | 90 | - |
| 11. Financial liabilities | - | - | - | - | - | - | - | - |
| 12a. Other monetary liabilities | 4.502 | 118 | 1 | - | 3.785 | 96 | 1 | - |
| 12b. Othre non-monetary liabilities | - | - | - | - | - | - | - | - |
| 13. Total current liabilities (10+11+12) | 62.043 | 1.432 | 196 | - | 19.771 | 415 | 9 1 | - |
| 14. Trade payables | - | - | - | - | - | - | - | - |
| 15. Financial liabilities | - | - | - | - | - | - | - | - |
| 16a. Other monetary liabilities | - | - | - | - | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - | - | - | - | - |
| 17. Total non-current liabilities (14+15+16) | - | - | - | - | - | - | - | - |
| 18. Total liabilities (13+17) | 62.043 | 1.432 | 196 | - | 19.771 | 415 | 9 1 | - |
| 19. Net asset/ (liability) position of off-balance sheet derivative instruments (19a-19b) |
120.850 | 3.200 | - | - | 155.071 | 4.000 | - | - |
| 19a. Total asset amount hedged | 120.850 | 3.200 | - | - | 155.071 | 4.000 | - | - |
| 19b. Total liabilities amount hedged | - | - | - | - | - | - | - | - |
| 20. Net foreign currency asset / (liability) position (9-18+19) | 162.214 | 4.189 | 9 8 | - | 207.960 | 5.302 | 6 0 | - |
| 21. Monetary items net foreign currency asset / (liability) position (1+2a+3+5+6a-10-11-12a-14-15-16a) |
41.364 | 989 | 9 8 | - | 52.889 | 1.302 | 6 0 | - |
| 22. Total fair value of financial instruments used for currency hedge | - | - | - | - | - | - | - | - |
| 23. Exports | 26.300 | 606 | 5 9 | 1.258 | 138.667 | 2.191 | 696 | 6.680 |
| 24. Imports | 92.312 | 2.333 | 165 | - | 504.731 | 10.419 | 3.349 | 9 5 |
| % 20 increase | - | 7.478 | 795 | - | - | 9.172 | 439 | - |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
As of 31 March 2025, the Company does not have any floating rate borrowings. (31 December 2024: None).
Holding financial instruments also carries the risk that the other party will not be able to fulfill the requirements of the agreement. The Company's collection risk mainly arises from its trade receivables. Trade receivables are evaluated taking into account the Company policies and procedures and accordingly, they are shown in the balance sheet net after provision for doubtful receivables.
The majority of the Company's sales are for the domestic market and it is mainly carried out through dealers and wholesalers. About 55% of the sales are due to the sales of the manufactured products. The commercial goods sold by the Company are of foreign origin. Therefore the company's merchandise costs are sensitive to the exchange rate. The cost of raw materials depends on the general price trend in the country. Approximately 91% of the Company's net sales are domestically oriented and the fluctuations in exchange rates are taken into account when determining price levels.
The Company collects its receivables mainly through checks received from its dealers and also uses a direct debit system (DBS). Since the issuers of the checks received in general are the customers of the dealers, risk distribution is provided. Due to the fact that the Company operates in this system, there is no significant risk arising from its receivables.
The Company tries to manage its liquidity risk by regularly monitoring the cash flows and ensuring the continuation of sufficient funds and borrowing reserves by matching the maturities of financial assets and liabilities.
Prudent liquidity risk management refers to holding sufficient cash, availability of sufficient credit transactions and fund resources, and the power to close market positions.
The funding risk of current and prospective debt requirements is managed by maintaining the availability of sufficient number of high-quality lenders.
The maturity distribution of the Company's derivative and non-derivative financial liabilities in TRL terms is shown below.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
The Company considers that the recorded values of financial instruments reflect their fair values.
Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)
Level 2: Other valuation techniques including direct or indirect observable inputs Level 3: Valuation techniques not containing observable market inputs
| 31 March 2025 | Level 1 | Level 2 | Level 3 | |
|---|---|---|---|---|
| Derivative financial assets | 1.766 | - | 1.766 | - |
| 31 December 2024 | Level 1 | Level 2 | Level 3 | |
| Derivative financial assets | - | - | - | - |
| 31 March 2025 | Level 1 | Level 2 | Level 3 | |
| Derivative financial liabilities | - | - | - | - |
| 31 December 2024 | Level 1 | Level 2 | Level 3 | |
| Derivative financial liabilities | 617 | - | 617 | - |
Derivative financial instruments are initially recognized at cost, and subsequently valued at fair value on 1 October 2018.
As of 31 March 2025, Adel has a foreign exchange forward transaction with a nominal value of TRL 120.850 amounting to USD 3.200.000 (31 December 2024: Nominal value of TRL 195.579 amounting to USD 4.000.000).
As of 31 March 2025, the Company has allocated USD 309.137 equivalent of TRL 11.675 from its bank deposits for the payments related to raw material and trade goods purchases to be made in the future periods in order to hedge against fluctuations in foreign exchange rates and the related amount has been subject to hedge accounting. (31 December 2024: USD 1.000.000 equivalent of TRL 48.644)
The Company documented the relationship between hedging instruments and hedged items at the beginning of the hedge transaction and also documented risk management objectives and the strategy for performing a variety of hedging transactions. Company, both at the beginning of the process of hedging transaction and on a regular basis of the hedging transaction, documented the assessment whether instruments used in hedging transactions are effective in high-level balancing changes in values of hedged items.
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 2025 | 2024 | |||||
|---|---|---|---|---|---|---|
| Fair Values | Fair Values | |||||
| Contract Amount | Asset | Liability | Contract Amount | Asset | Liability | |
| For hedging purposes: | ||||||
| Forward transaction | 120.850 | 1.766 | - | 155.071 | - | 617 |
| 120.850 | 1.766 | - | 155.071 | - | 617 | |
| Short term | 120.850 | 1.766 | - | 155.071 | - | 617 |
| 120.850 | 1.766 | - | 155.071 | - | 617 |
The Company's finance department is responsible for ensuring regular access to financial markets and monitoring and managing the financial risks incurred in connection with the Company's activities. These risks are; It includes market risk (including currency risk, fair interest rate risk and price risk), credit risk, liquidity risk and cash flow interest rate risk. The Company does not have speculative financial instruments (including derivative financial instruments) and does not have any activity related to the purchase and sale of such instruments.
| 31 March 2025 | Notes | Fair value differences reflected in other |
Financial assets shown at amortized cost |
Financial liabilities shown at amortized |
Book value | Fair value |
|---|---|---|---|---|---|---|
| Financial assets | ||||||
| Cash and cash equivalences | 4 | - | 475.773 | - | 475.773 | 475.773 |
| Trade receivables from third parties | 7 | - | 96.173 | - | 96.173 | 96.173 |
| Receivables from related parties | 2 2 |
- | 81.100 | - | 81.100 | 81.100 |
| Other financial assets | 5 | - | 1.409 | - | 1.409 | 1.409 |
| Financial liabilities | ||||||
| Financial borrowings | 6 | - | - | 987.968 | 987.968 | 987.968 |
| Lease liabilities | 6 | - | - | 168.611 | 168.611 | 168.611 |
| Trade payables | 7 | - | - | 154.180 | 154.180 | 154.180 |
| Payables from related parties | 2 2 |
- | - | 20.477 | 20.477 | 20.477 |
| Other financial liabilities | 8 - |
- - |
- - |
3.973 - |
3.973 - |
3.973 - |
| 31 December 2024 | Notes | Fair value differences reflected in other |
Financial assets shown at amortized cost |
Financial liabilities shown at amortized |
Book value | Fair value |
|---|---|---|---|---|---|---|
| Financial assets | ||||||
| Cash and cash equivalences | 4 | - | 725.684 | - | 725.684 | 725.684 |
| Trade receivables from third parties | 7 | - | 97.365 | - | 97.365 | 97.365 |
| Receivables from related parties | 2 2 |
- | 47.044 | - | 47.044 | 47.044 |
| Other financial assets | 5 | - | 1.436 | - | 1.436 | 1.436 |
| Financial liabilities | ||||||
| Financial borrowings | 6 | - | - | 961.932 | 961.933 | 961.933 |
| Lease liabilities | 6 | - | - | 147.089 | 147.089 | 147.089 |
| Trade receivables from third parties | 7 | - | - | 138.431 | 138.431 | 138.431 |
| Payables from related parties | 2 2 |
- | - | 7.912 | 7.912 | 7.912 |
| Derivatives | 24.2 | - | - | 617 | 617 | 617 |
| Other financial liabilities | 8 | - | - | 4.214 | 4.214 | 4.214 |
(Currency expressed in Turkish Lira based on the purchasing power of Turkish Lira ("TRL") as of March 31,2025, unless otherwise stated)
| 31 March 2025 | 31 March 2024 | ||
|---|---|---|---|
| Financial Position Statement Items | |||
| Inventory | 84.001 | 137.780 | |
| Prepaid expenses | 2.380 | 3.001 | |
| Financial investments | 9 | 13 | |
| Property, plant and equipment | 79.117 | 115.587 | |
| Intangible assets | 8.838 | 15.843 | |
| Right of use assets | 19.272 | 27.475 | |
| Deferred income | (2.402) | (19.560) | |
| Adjustment to share capital | (58.074) | (83.157) | |
| Other comprehensive expenses that will not be reclassified to profit or loss | (6.869) | (7.178) | |
| - Losses on remeasurement of defined benefit obligations | (6.869) | (7.178) | |
| Other comprehensive income (expenses) that will be reclassified to profit or loss | (1.254) | (1.214) | |
| - Currency translation differences | 1 | 819 | |
| - Gains (loss) on hedge | (1.255) | (2.033) | |
| Restricted reserves | (27.753) | (41.076) | |
| Retained earnings | (60.244) | (108.526) | |
| Profit or Loss Statement Items | |||
| Revenue | (1.319) | (11.077) | |
| Cost of sales (-) | 784 | 5.443 | |
| Research and development expenses (-) | 207 | 128 | |
| General administrative expenses (-) | 3.112 | 4.067 | |
| Marketing expenses (-) | 3.392 | 5.030 | |
| Other income from operating activities | (62) | (238) | |
| Other expenses from operating activities (-) | 94 | 179 | |
| Income from investment activities | (1.056) | - | |
| Finance income | (83) | (4.405) | |
| Finance expenses (-) | 3.061 | 6.125 | |
| Taxes on expense | - | 1.643 | |
| Deferred tax income | (2.411) | 5.014 | |
| Other Comprehensive Income Statement Items | |||
| Other comprehensive income (expenses) that will not be reclassified | 8.370 | 10.044 | |
| NET MONETARY POSITION GAINS / (LOSSES) | 51.110 | 60.941 |
The Board of Directors' decision regarding the distribution of TRL 150.026 gross dividend to fully taxpayer institutions at a rate of 57,73% gross in the amount of full TRL 0,5773 for each share with a nominal value of full TRL 1 and TRL 0,490705 net in the amount of full TRL 49,07% for each share with a nominal value of full TRL 1 to other shareholders, taking into account our company's unconsolidated financial statements prepared in accordance with the capital markets legislation, VUK legal records and tax legislation, all of which will be covered from the previous year's profits (extraordinary reserves), and also the allocation of TRL 13.703 as a second series legal reserve for these dividends to be distributed, and the dividend payment date being September 26, 2025, was approved at the Ordinary General Assembly Meeting dated April 16, 2025.
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