Interim / Quarterly Report • Aug 5, 2025
Interim / Quarterly Report
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(ORIGINALLY ISSUED IN TURKISH)
| TABLE OF CONTENTS | PAGE |
|---|---|
| STATEMENT OF FINANCIAL POSITION | 1-2 |
| STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
3 |
| STATEMENT OF CHANGES IN EQUITY |
4 |
| STATEMENT OF CASH FLOWS | 5 |
| NOTES TO THE FINANCIAL STATEMENTS |
6-48 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated.)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Reviewed | Audited | ||
|---|---|---|---|
| Notes | 30 June 2025 |
31 December 2024 | |
| ASSETS | |||
| Current Assets | |||
| Cash and cash equivalents | 3 | 6,388,292,415 | 6,182,363,496 |
| Trade receivables | 2,327,544,716 | 2,715,259,196 | |
| -Related parties | 5 | 119,135,232 | 168,379,319 |
| -Other parties | 6 | 2,208,409,484 | 2,546,879,877 |
| Other receivables | 307,569,914 | 190,506,211 | |
| -Other parties | 307,569,914 | 190,506,211 | |
| Inventories | 7 | 2,109,835,249 | 1,967,460,464 |
| Biological assets | 8 | 1,954,067,004 | 1,911,179,059 |
| Prepaid expense | 10 | 609,405,815 | 279,207,689 |
| Other current assets | 11 | 1,306,757,724 | 1,510,675,322 |
| Total Current Assets | 15,003,472,837 | 14,756,651,437 | |
| Non-Current Assets | |||
| Other receivables | 809,509 | 944,486 | |
| -Other parties | 809,509 | 944,486 | |
| Property, plant and equipment | 12 | 6,636,522,621 | 6,849,385,435 |
| Right of use of assets | 231,544,073 | 288,710,602 | |
| Intangible assets | 13 | 35,276,830 | 49,784,688 |
| -Other intangible assets | 35,276,830 | 49,784,688 | |
| Prepaid expenses | 62,489 | 316,434 | |
| Total Non-current Assets | 6,904,215,522 | 7,189,141,645 | |
| Total Assets | 21,907,688,359 | 21,945,793,082 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated.)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Notes | Reviewed 30 June 2025 |
Audited 31 December 2024 |
|
|---|---|---|---|
| LIABILITIES | |||
| Short-term Liabilities | |||
| Short-term borrowings | 4 | 2,668,999,995 | 2,098,844,880 |
| Short-term lease liabilities | 4 | 76,679,379 | 83,435,637 |
| -Lease liabilities to other parties | 76,679,379 | 83,435,637 | |
| Short-term portions of long-term borrowings | 4 | 46,873,348 | 57,778,771 |
| Other financial liabilities | 24,431,887 | 71,588,832 | |
| Trade payables | 6 | 5,690,941,976 | 5,435,452,079 |
| -Related parties | -- | 344,521,821 | |
| -Other parties | 5,690,941,976 | 5,090,930,258 | |
| Liabilities related to the employee benefits | 375,187,579 | 289,851,624 | |
| Other payables | 24,206,109 | 144,522,264 | |
| -Related parties | 5 | 18,948,736 | 21,771,001 |
| -Other parties | 5,257,373 | 122,751,263 | |
| Deferred revenue | 200,257,867 | 345,507,319 | |
| - Tax provisions | 16 | 86,677,608 | 196,390,012 |
| Short-term provisions | 391,357,455 | 338,223,860 | |
| -Provisions related to the employee benefits | 200,150,251 | 304,058,317 | |
| -Other | 191,207,204 | 34,165,543 | |
| Other short-term liabilities | 488,536 | -- | |
| Total Short-term Liabilities | 9,586,101,739 | 9,061,595,278 | |
| Long-term Liabilities | |||
| Long-term borrowings | 4 | 36,056,578 | 63,057,606 |
| Long-term lease liabilities | 4 | 61,335,806 | 111,586,695 |
| -Lease liabilities to other parties | 61,335,806 | 111,586,695 | |
| Deferred revenue | 9,884,259 | 11,532,353 | |
| Long-term provisions | 648,379,048 | 702,089,949 | |
| -Provisions related to the employee benefits | 648,379,048 | 702,089,949 | |
| Deferred tax liability | 16 | 171,076,907 | 323,712,015 |
| Total Long-term Liabilities | 926,732,598 | 1,211,978,618 | |
| Total Liabilities | 10,512,834,337 | 10,273,573,896 | |
| EQUITY | |||
| Paid-in share capital | 14 | 100,023,579 | 100,023,579 |
| Inflation adjustment of capital | 14 | 2,347,403,249 | 2,347,403,249 |
| Accumulated other comprehensive expense | |||
| that will not be reclassified through profit or loss | (349,094,727) | (340,814,684) | |
| -Remeasurement of the defined benefit liability | (965,167,732) | (965,167,732) | |
| -Fixed assets revaluation | 14 | 616,073,005 | 624,353,048 |
| Restricted reserves | 14 | 290,556,645 | 284,012,238 |
| Other reserves | 14 | 96,383,408 | 96,383,408 |
| Accumulated gains/(losses) | 14 | 9,186,947,032 | 4,986,025,018 |
| Profit/(Loss) for the period | (277,365,164) | 4,199,186,378 | |
| Total Equity | 11,394,854,022 | 11,672,219,186 | |
| Total Equity and Liabilities | 21,907,688,359 | 21,945,793,082 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Notes | Reviewed 1 January - 30 June 2025 |
Not reviewed 1 April - 30 June 2025 |
Reviewed 1 January - 30 June 2024 |
Not reviewed 1 April - 30 June 2024 |
|
|---|---|---|---|---|---|
| PROFIT OR LOSS | |||||
| Revenue | 15 | 15,465,429,522 | 7,333,194,864 | 18,760,672,688 | 9,521,351,129 |
| Cost of Sales (-) | 15 | (14,480,813,167) | (7,305,809,799) | (14,043,751,492) | (6,721,251,419) |
| Gross Profit from Business | |||||
| Operations | 984,616,355 | 27,385,065 | 4,716,921,196 | 2,800,099,710 | |
| General administrative expenses (-) Selling, marketing and distribution |
(549,246,060) | (270,230,792) | (432,217,236) | (182,057,039) | |
| expenses (-) | (1,039,601,054) | (527,673,813) | (1,046,003,737) | (500,387,983) | |
| Research and development expenses (-) | (248,458) | (178,199) | (554,322) | (230,374) | |
| Other income from operating activities | 18 | 546,589,707 | 279,010,163 | 501,552,451 | 236,676,962 |
| Other expenses from operating | |||||
| activities (-) | 18 | (438,048,685) | (196,842,295) | (331,257,853) | (72,809,493) |
| Profit/(Loss) from Operating Activities |
(495,938,195) | (688,529,871) | 3,408,440,499 | 2,281,291,783 | |
| Income from investing activities | 5,453,336 | 35,893 | -- | -- | |
| Loss from investing activities (-) | -- | -- | (541,163) | -- | |
| Profit/(Loss) from Operating Activities Before Financial Expense |
(490,484,859) | (688,493,978) | 3,407,899,336 | 2,281,291,783 | |
| Finance income | 19 | 1,097,464,235 | 624,685,061 | 367,747,348 | 290,435,445 |
| Finance expenses (-) Monetary gain/loss (-) |
19 20 |
(563,872,164) (244,528,023) |
(156,148,972) (106,214,741) |
(748,214,598) 729,900,598 |
(442,905,138) 241,199,469 |
| Profit/(Loss) Before Tax | (201,420,811) | (326,172,630) | 3,757,332,684 | 2,370,021,559 | |
| Tax Expense | |||||
| -Current tax (expense)/ income | 16 | (228,579,461) | 63,748,533 | (1,162,394,898) | (688,506,744) |
| -Deferred tax income | 16 | 152,635,108 | 67,432 | (10,118,042) | (72,443,640) |
| Profit/(Loss) for the Period from Continuing Operations |
(277,365,164) | (262,356,665) | 2,584,819,744 | 1,609,071,175 | |
| Distribution of Net Loss | |||||
| -Parent company | 17 | (277,365,164) | (262,356,665) | 2,584,819,744 | 1,609,071,175 |
| Profit/(Loss) per share | |||||
| Profit/(Loss) per share from continuing operations |
17 | (2.7730) | (2.6229) | 25.8421 | 16.0869 |
| OTHER COMPREHENSIVE | |||||
| INCOME | |||||
| That will not be reclassified | |||||
| through profit or loss | -- | -- | (7,712,850) | -- | |
| -Re-measurement of the defined | |||||
| benefit liability | -- | -- | (7,712,850) | -- | |
| Total Other Comprehensive Income | -- | -- | (7,712,850) | -- | |
| Total Comprehensive Income for the Period |
(277,365,164) | (262,356,665) | 2,577,106,894 | 1,609,071,175 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated.)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Other accumulated comprehensive income and expenses not to be reclassified in profit or loss |
Other accumulated comprehensive income and expenses to be reclassified in profit or loss |
Retained Earnings |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Paid-in capital |
Capital adjustment differences |
Re-measurement of the defined benefit liability |
Revaluation funds |
Change in foreign exchange differences |
Other reserves |
Restricted profit reserves |
Retained earnings |
Net profit/ (loss) for the period |
Total equity |
|
| Balance as at 1 January 2025 | 100,023,579 | 2,347,403,249 | (965,167,732) | 624,353,048 | -- | 96,383,408 | 284,012,238 | 4,986,025,018 | 4,199,186,378 | 11,672,219,186 |
| Transfers | -- | -- | -- | (8,280,043) | -- | -- | 6,544,407 | 4,200,922,014 | (4,199,186,378) | -- |
| Total comprehensive income | -- | -- | -- | -- | -- | -- | -- | -- | (277,365,164) | (277,365,164) |
| Balance as at 30 June 2025 | 100,023,579 | 2,347,403,249 | (965,167,732) | 616,073,005 | -- | 96,383,408 | 290,556,645 | 9,186,947,032 | (277,365,164) | 11,394,854,022 |
| Balance as at 1 January 2024 | 100,023,579 | 2,347,403,249 | (1,241,838,095) | 638,116,454 | 1,033,702,981 | 96,383,408 | 284,012,238 | 2,553,036,106 | 1,603,608,764 | 7,414,448,684 |
| Transfers | -- | -- | -- | (8,788,823) | (815,616,744) | -- | -- | 2,428,014,331 | (1,603,608,764) | -- |
| Total comprehensive income | -- | -- | -- | -- | (7,712,850) | -- | -- | -- | 2,584,819,744 | 2,577,106,894 |
| Balance as at 30 June 2024 | 100,023,579 | 2,347,403,249 | (1,241,838,095) | 629,327,631 | 210,373,387 | 96,383,408 | 284,012,238 | 4,981,050,437 | 2,584,819,744 | 9,991,555,578 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Note | Reviewed 1 January - 30 June 2025 |
Reviewed 1 January - 30 June 2024 |
|
|---|---|---|---|
| CASH FLOWS ARISING FROM OPERATING ACTIVITIES | |||
| Profit/(Loss) for the Period Profit/(Loss) for the Period from Continuing Operations |
(277,365,164) (277,365,164) |
2,584,819,744 2,584,819,744 |
|
| Adjustments Regarding Net Profit/(Loss) Reconciliation for the Period: | 785,135,862 | 1,555,083,404 | |
| Adjustment of Depreciation and Amortization | 839,863,873 | 929,557,482 | |
| Adjustment of Decrease in Value of Trade Receivables | 6 | 3,707,052 | (1,606,100) |
| Adjustments for Fair Value (Gains)/Losses of Derivative Financial Instruments | -- | (2,446,223) | |
| Adjustment of Decrease in Value in Inventories | 7 | 6,715,924 | (17,799,670) |
| Adjustment of Provisions for Employee Benefits | 249,325,037 | (49,302,074) | |
| Adjustments for Provisions Adjustments for Tax Expense |
16 | 170,020,665 75,944,353 |
(3,305,313) 1,172,512,943 |
| Interest Paid | 333,721,833 | 365,912,704 | |
| Interest Income | (1,097,464,235) | (278,321,306) | |
| Inflation Impact on Operating Activities | 203,301,360 | (560,119,039) | |
| Changes in Working Capital | 236,046,917 | 865,313,958 | |
| Change in Trade Receivables | (340,816) | (717,025,127) | |
| Change in Inventories | (149,090,709) | 1,001,544,030 | |
| Change in Trade Payables | 1,049,416,716 | 887,976,858 | |
| Change in Employee Benefits | 133,096,875 | 58,138,880 | |
| Change in Other Assets Regarding Operating Activities | (552,681,362) | (390,563,616) | |
| Change in Other Liabilities Regarding Operating Activities | (244,353,787) | 25,242,933 | |
| Net Cash Provided from Operating Activities | 743,817,615 | 5,005,217,106 | |
| Taxes Paid | (337,306,903) | (798,814,984) | |
| Payments Made within the Scope of Provisions for Employment Benefits | (263,846,351) | (59,093,739) | |
| Net Cash Provided From Operating Activities | 142,664,361 | 4,147,308,383 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Proceeds From Sale of Property, Plant, Equipment and Intangible Assets Acquisition Of Property, Plant, Equipment, and Intangible Assets |
30,392,456 (53,644,942) |
6,733,927 (25,970,822) |
|
| Proceeds From Sale of Biological Assets | 8 | 9,488,861,486 | 9,723,535,821 |
| Acquisition and Physical Change on Biological Assets | 8 | (10,058,917,404) | (11,000,490,370) |
| Cash Advances Given and Payables | 253,944 | 24,279,153 | |
| Net Cash Flows provided from/(Used in) Investing Activities | (593,054,460) | (1,271,912,291) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Proceeds from Loans | 4 | 2,118,299,757 | 1,227,960,607 |
| Repayment of Borrowings | 4 | (1,154,922,501) | (1,291,740,405) |
| Repayment of Lease Liabilities | 4 | (35,499,472) | (50,537,721) |
| Net Proceeds from Other Financial Borrowings | 4 | (38,772,497) | (9,473,734) |
| Interest Received | 1,097,464,235 | 278,321,306 | |
| Interest Paid | (349,148,932) | (63,779,798) | |
| Cash Flows Provided From Financing Activities | 1,637,420,590 | 90,750,255 | |
| NET/INCREASE IN CASH AND CASH EQUIVALENTS BEFORE THE EFFECT OF TRANSLATION DIFFERENCE |
1,187,030,491 | 2,966,146,347 | |
| EFFECT OF TRANSLATION DIFFERENCE ON CASH AND CASH EQUIVALENTS |
-- | (7,712,850) | |
| NET INCREASE (DECREASE) OF CASH AND CASH EQUIVALENTS | 1,187,030,491 | 2,958,433,497 | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE | |||
| PERIOD | 6,120,428,692 | 2,014,603,506 | |
| EFFECTS OF INFLATION ON CASH | (942,689,772) | (730,434,244) | |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3 | 6,364,769,411 | 4,242,602,759 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Banvit Bandırma Vitaminli Yem Sanayi Anonim Şirketi ("the Company" or "Banvit") was established in 1968 in Bandırma, Turkey. 8.29% of Banvit's shares (December 31, 2024: 8.29%) are publicly traded on Borsa İstanbul Anonim Şirketi ("ISE")
The Company's principal activities include the production, processing, sales, and marketing of feed, breeder eggs, day-old broiler chicks, live broilers, broiler meat, and further processed products.
As of June 30, 2025 and December 31, 2024 the shareholders and shareholding structure of the Company are as follows:
| 30 June 2025 |
31 December 2024 |
|
|---|---|---|
| TBQ Foods GmbH | 91,71% | 91,71% |
| Other (Publicly Traded Portion) | 8,29% | 8,29% |
| Total | 100% | 100% |
As of June 30, 2025, the Company's ultimate parent is Marfrig Global Foods S.A., which holds a 58.87% stake in BRF S.A.
As of 30 June 2025 and 31 December 2024, the number of personnel by category is as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Blue collar | 4,291 | 4,464 |
| White collar | 685 | 670 |
| Total number of employees | 4,976 | 5,134 |
The address of the registered office and headquarters of the Company is as follows:
Ömerli Mahallesi, Ömerli Sokak, No: 208 10202 Bandırma - Balıkesir/ Turkey Website:http://www.banvit.com/
The accompanying condensed financial statements have been prepared in accordance with the provisions of the Capital Markets Board of Turkey ("CMB") Communiqué No. II-14.1 on Principles of Financial Reporting in Capital Markets, published in the Official Gazette No. 28676 dated June 13, 2013. In accordance with Article 5 of the Communiqué, Turkish Financial Reporting Standards ("TFRS"), as promulgated by the Public Oversight Accounting and Auditing Standards Authority ("POA"), along with additional standards and interpretations, have been applied. TFRS is updated through communiqués to ensure compliance with amendments in International Financial Reporting Standards.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The financial statements have been presented in accordance with the formats specified in the Announcement on TFRS Taxonomy published by POA on July 3, 2024, and the Financial Statement Examples and User Guide issued by CMB.
The Company has prepared its summary financial statements for the interim period ending June 30, 2025 in accordance with IAS 34 Interim Financial Reporting. The interim summary financial statements do not contain all the information required to be included in the annual financial statements and should be read in conjunction with the Company's annual financial statements prepared as of December 31, 2024.
The interim financial statements for the accounting period of January 1 to June 30, 2025, were approved by the Board of Directors of Banvit Bandırma Vitaminli Yem ve Sanayi A.Ş. on August 5, 2025.
These financial statements have been presented in Turkish Lira ("TL"), which is the functional currency of the Company. Unless otherwise stated, all financial information presented in TL is expressed in TL.
Company prepared its financial statements as at and for the period ended June 30, 2025, by applying TAS 29 "Financial Reporting in Hyperinflationary Economies" in accordance with the announcement made by the Public Oversight Accounting and Auditing Standards Authority ("POA") on November 23, 2024, and the "Implementation Guide on Financial Reporting in Hyperinflationary Economies." The standard requires that financial statements prepared in the currency of a hyperinflationary economy be stated 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. Therefore, the Company has presented its financial statements as of December 31, 2024, on the purchasing power basis as of June 30, 2025.
In accordance with the CMB's decision dated December 28, 2024 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 to their annual financial statements for the accounting periods ending on December 31, 2023.
The restatements in accordance with TAS 29 have been made using the adjustment factor derived from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute. As of June 30, 2025, the indexes and adjustment factors used in the restatement of the financial statements are as follows:
| Adjustment | |||
|---|---|---|---|
| Dates | Index | Coefficent | Three-Year Compound Inflation Rate |
| 30 June 2025 | 3,132.17 | 1.00 | 220% |
| 31 December 2024 | 2,684.55 | 1.17 | 291% |
| 30 June 2024 | 2,319.29 | 1.35 | 324% |
| 31 December 2023 | 1,859.38 | 1.68 | 268% |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The main components of Company's restatement for the purpose of financial reporting in hyperinflationary economies are as follows:
Transactions in foreign currencies are translated to TL at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are measured at fair value in a foreign currency are translated into the functional currency at the exchange rate when the fair value was determined. Foreign currency differences are generally recognized in profit or loss. Non-monetary items that are measured based on historical cost in a foreign currency are not translated.
The closing exchange rates for the periods are as follows:
| 30 June | 2025 | 31 December 2024 | ||
|---|---|---|---|---|
| Period | Period | |||
| End | Average | End | Average | |
| Euro ("EUR")/TL | 46.6074 | 41.0181 | 36.7362 | 35.4893 |
| United States Dollars ("USD")/TL | 39.7408 | 37.4504 | 35.2803 | 32.7984 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The Company has prepared its financial statements in accordance with the going concern principle.
In order to identify trends in financial position and performance, the Company's financial statements are prepared on a comparative basis with the previous period. When necessary to ensure consistency with the presentation of current period financial statements, comparative information is reclassified, and significant differences are disclosed.
The preparation of the company financial statements require Company Management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Those estimates are reviewed periodically, and as adjustments become necessary, they are reported in statements of income in the periods they become known.
Significant estimates used in the preparation of these financial statements and the significant judgments with the most significant effect on amounts recognized in the company financial statements are as follows:
Termination indemnity liability is determined by using actuarial assumptions as discount rates, future salary increases and employee turnover rates by the Company.
Provision for doubtful receivables is an estimated amount that Company Management believes to reflect for possible future losses on existing receivables that have collection risk due to current economic conditions.
The useful economic lifetime of Company's assets are determined by Company Management at acquisition date of asset and they are revised regularly. Company determines the useful lifetime of an asset by considering the assets' approximate benefit. This assessment based on the experience of used similar assets. The Company considers the situation that will become unusable in terms of technical or commercial values, as a result of changes or progression in the market when determine the useful lifetime of an asset.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The frequency of revaluation studies is determined to ensure that the carried values of the tangible fixed assets and investment properties are not significantly different from their fair values as of the end of the relevant reporting period. The frequency of the revaluation studies depends on the change in the fair value of the tangible assets. In cases where the fair value of a revalued asset is considered to be significantly different from its carrying value, the revaluation study needs to be repeated, and this study is carried out for the entire class of assets with the revaluated asset as of the same date.
On the other hand, it is not necessary to repeat the revaluation studies every year for the tangible fixed assets whose fair value changes are insignificant.
In this context, as a result of the assessments made by the Company management, it is assumed that the fair values of land, buildings and land improvements determined in the valuation studies performed as of 31 December 2022 will converge to their respective fair values as of 30 June 2025 after deducting current period depreciation and the CPI change in the related interim period.
Deferred tax liability and asset estimation is a part of the financial statement preparation process, requiring the Company to estimate income tax for each country in which it operates. This process involves assessing current tax expenses, evaluating temporary timing differences arising from deferred income and adjustments made for reporting purposes, and estimating deferred tax assets or liabilities. The Company management recognizes deferred tax assets when it is probable that they can be recovered or deducted from future taxable income. Deferred tax assets are recognized in cases where it is likely that tax benefits will be realized in future periods. Therefore, the recognition of deferred tax assets depends on the estimation of the Company's financial performance in future periods.
In calculating impairment, the physical status and aging of inventories are reviewed taking into consideration the technical personnel's opinion; and provision is made for items assumed unserviceable. In determining the net realizable value of inventories, inventory price lists and average discount rates of the year are used and assumptions are made in relation to sales expenses to be incurred in the future.
When recognizing litigation provisions, the probability of losing the relevant lawsuits and the potential consequences in case of an unfavorable outcome are assessed based on the opinions of the Company's legal counsel. The Company's management makes its best estimates using the available data and allocates provisions as deemed necessary. In the event of any dispute with tax authorities, the calculation of tax expenses for items where the tax assessment method cannot be fully determined requires estimations and evaluations until a decision is received from the relevant authorities or the legal process is concluded.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The preparation of the accompanying financial statements in conformity with Turkish Accounting Standards requires management to make estimates and assumptions regarding the carrying amounts of certain assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Actual amounts may differ from the estimates. These estimates are reviewed periodically and reported in the statement of profit or loss in the periods in which they become known.
Cash and cash equivalents in the statement of cash flows comprise cash, credit card receivables, banks and short term investments of short maturity (up to 3 months) and high liquidity which are easily convertible to specific amounts of cash and maturing in a maximum of 3 months.
Inventories are stated at the lower of cost or net realizable value. The cost of inventories comprise all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present state and condition. The costs of inventories are determined by weighted average cost method. Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs necessary to make the sale.
Biological assets are measured at fair value less costs to sell, with any changes in fair value recognized in profit or loss. If fair value cannot be reliably determined, they are measured at cost less accumulated depreciation and accumulated impairment losses.
Breeding chickens, laying hens, and broiler chickens are classified under biological assets in the financial statements. Laying hens and breeding chickens are amortized based on their economic life according to their laying periods. Since these biological assets do not have an active market, they are reflected in the financial statements at cost, less accumulated depreciation and impairment losses, if any. Broiler chickens are recorded at production cost following the end of their useful life and slaughter periods. The Company's biological assets do not have quoted market prices, and the Company has explicitly determined that alternative fair value measurements would not be reliable.
Therefore, biological assets are measured at cost, less any accumulated depreciation and accumulated impairment losses. The Company's management determines the useful lives of biological assets by calculating the potential number of eggs they can lay under normal conditions.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
If one of the below listed criteria exists the party is regarded as related with the Company:
The party has a post-employment benefit plan for the benefit of employees of the Company, or of an entity that is a related party of the Company.
All tangible assets are initially recognized at cost. Land, buildings and machinery-equipment are stated at fair value less depreciation after the fair value of land and buildings is determined by appraisal undertaken by professionally qualified valuation specialists. All other tangible assets are stated at cost less accumulated depreciation and provision for impairment, if any. When a tangible asset is sold, income after deduction of relevant cost and accumulated depreciation is stated in the statement of income and profit or loss. When a revalued asset is sold, the relevant revaluation funds are transferred to retained earnings.
The cost of a tangible asset includes the purchase price, import duties and non-refundable purchase taxes, and the costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating. Expenses incurred after the asset is started to be used, i.e., maintenance and repair expenditures are recognized in profit or loss in the period in which they are incurred. If the expenditures made increase an asset's economic usefulness in the future, they are added to the cost of the asset.
The increase in the carrying value of the tangible assets arising from revaluation are initially credited after deduction of deferred tax effect to the tangible assets value increase fund account under equity. The accumulated depreciation corresponding to the revaluation fund of the tangible assets accounted for by revaluation method is recognized as an expense in the relevant period.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The ranges of useful lives applied to the assets previous and current periods are as follows:
| Buildings | 15 - 50 years |
|---|---|
| Land Improvements | 15 - 25 years |
| Plant, machinery and equipment | 2 - 15 years |
| Motor vehicles | 4 - 5 years |
| Furniture and fixtures | 3 - 15 years |
| Leasehold improvements | 5 - 15 years |
Intangible assets have finite useful lives and mainly comprise rights and IT software. These assets are carried at cost less accumulated amortization and impairment losses, if any. These assets are amortized on a straight-line basis over an average period of five years from the date of acquisition. Repair and maintenance costs of computer software programs are expensed as incurred.
Gains or losses on disposals of intangible assets or impairment losses on the indexed values of such assets are recognized in the related income and expense accounts. The scrap value of intangible assets is estimated to be not material. Intangible assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
At the inception date of the contract, the Company evaluates whether the contract is or contains a lease. If the contract transfers the right to control the use of the identified asset for a specified period of time, the contract is or includes a lease. To assess whether a contract provides the right to control the use of an identified asset, the Company uses the definition of a lease in TFRS 16.
The Company recognises a right-of-use asset and a lease liability at the lease commencement date. At the commencement date or when there is a modification in a contract that includes a lease component, the Company allocates the consideration in the contract to each lease component based on its relative stand-alone price and the aggregate stand-alone price of non-lease components. The Company has elected not to separate non-lease components from lease components but instead accounts for each lease component and the associated non-lease components as a single lease component.
At the lease commencement date, the Company recognises a right-of-use asset and a lease liability in its financial statements. The cost of the right-of-use asset consists of the initial measurement of the lease liability, lease payments made before or at the commencement date less any lease incentives received, any initial direct costs incurred, and estimated costs to dismantle, remove, or restore the underlying asset or the site where it is located.
If the lease transfers ownership of the underlying asset to the lessee at the end of the lease term, or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the right-of-use asset is depreciated from the commencement date to the end of the useful life of the underlying asset. Otherwise, it is depreciated over the shorter of the asset's useful life or the lease term. Additionally, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for remeasurements of the lease liability.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Incremental costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity. Income tax relating to transaction costs of an equity transaction is accounted for in accordance with TAS 12.
Income tax expense comprises the total amount of current and deferred tax. Income tax is recognized in profit or loss, except when it relates to business combinations or items recognized directly in equity or other comprehensive income.
In Turkey, the corporate tax rate is 25% as of June 30, 2025 (December 31, 2024: 25%). Corporate tax is calculated based on taxable profit after adjusting for non-deductible expenses and applying exemptions and deductions specified in tax laws.
The Company recognizes deferred tax assets and liabilities based upon temporary differences arising between its financial statements as reported for TAS/TFRS purposes issued by POA and its statutory financial statements. These temporary differences usually result in the recognition of revenue and expenses in different reporting periods for TAS/TFRS and tax purposes.
All government grants including the nonmonetary incentives that are carried at fair value are recognized in the financial statements provided that the Company fulfils the necessary requirements to receive such incentives.
The government grants related assets, recognized in financial statements as deferred income. In case of that government incentives are presented as deferred income, they are systematically and reasonably associated with in the profit or loss and other comprehensive income statement throughout the useful life of the asset.
Government assistance that is provided in the form of benefits that are available in determining taxable profit or tax loss, or are determined or limited on the basis of income tax liability are recognized as the deferred tax income.
Severance pay according to the current laws and collective bargaining agreements in Turkey, is paid in case of retirement or dismissal. In accordance with TAS 19 Employee Benefits Standard ("TAS 19"), such payments are classified as defined retirement benefit plans. The retirement pay liability recognized in the balance sheet has been calculated based on the net present value of all employees' expected future salary amounts due to their retirement and reflected in the financial statements. All actuarial gains and losses are accounted for as other comprehensive income.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Provisions are recognized if, and only if, there is a present obligation (legal or constructive) which has arisen as a result of a past event, it is likely that the resources providing economic benefit to the company flow from the company due to such obligation, and the potential liability can be estimated reliably. If the effect of the time value of money becomes material, the provisions are stated at the expected future cash outflows discounted at the reporting date. Provisions are reviewed at each reporting date and adjustments are made so as to reflect the best estimates of the Company Management.
Contingent assets are subject to continuous evaluation in order to maintain correct recognition of relevant events. When the inflow of economic benefits is virtually certain, then the related contingent asset and the relevant income are recognized in the financial statements. When the inflow of economic benefits is probable, then the subject contingent asset is recognized in the notes to the company financial statements.
The Company considers evidence of impairment for these assets at both an individual asset and a collective level. All individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually identified. Assets that are not individually significant are collectively assessed for impairment. Collective assessment is carried out by Companying together assets with similar risk characteristics.
In assessing collective impairment, the Company uses historical information on the timing of recoveries and the amount of loss incurred, and makes an adjustment if current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends.
An impairment loss is calculated as the difference between an asset's carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. Losses are recognised in profit or loss and reflected in an allowance account. When the Company considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit or loss.
The Company recognizes revenue in accordance with EFRS 15 "Revenue from contracts with customers" standard when the goods or services is transferred to the customer and when performance obligation is fulfilled based on the following main principles:
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The Company recognises revenue when the entity satisfies a performance obligation by transferring a promised good or sen-ice to the customer. An asset is transferred when the customer obtains control of that asset or service.
The Company recognized revenue from its customers only when all of the following criteria are met:
At the beginning of the contract, the Company evaluates the goods or services it has committed in the contract with the customer and defines each commitment to transfer to the customer as a separate performance obligation. The Company also determines at contract inception whether it has fulfilled each performance obligation over time or at a point in time.
When a third party is involved in to sales transaction in order to provide of goods or services to the customer, the Company determines that the nature of its commitment is performed as a principal or agent by the Company. It is principal if the Company controls the specified goods or services before transferring those goods or services to the customer. In that case, when (or as long as) it fulfills its performance obligation, it includes the revenue in the company financial statements equal to the gross amount of the price it expects to be entitled in return for the transferred goods or services. If the Company acts as an intermediary in the supply of goods or services for which a performance obligation has been determined by another party, it is in the position of an agent and does not reflect the revenue for the said performance obligation in the financial statements.
The Company does not adjust the promised amount of consideration for the effects of a significant financing component since the Company expects, at contract inception, that the period between when the entity transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. If the financing component is significant in revenue, future collections are discounted by the interest rate in financing component. The difference is recognised as income from operatmg activities in current period.
The Company's performance obligations consist of the sale of consumer products that it produces. The customer consumes the benefit obtained by the Company from the performance simultaneously. The sales transaction is recognized at the time of delivery of the manufactured products. The Company transfers control of the goods or services sold to the customer at the same time and the revenue is recognized when the performance obligation is fulfilled.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Dividend income from equity investments is accounted for when shareholders are entitled to receive dividends (as long as it is economically beneficial and income can be measured reliably). Interest income from financial assets is recognized in the records as long as it is economically beneficial and the income can be reliably measured.
The Company's finance income include interest income and foreign currency gain on financial assets and liabilities (other than trade receivables and payables).
Finance expense comprises interest expense on borrowings, interest expense of long term provisions andforeign currency losses arising from financial assets and liabilities (excluding trade receivables andpayables). Borrowing costs that are not directly attributable to acquisition, construction or production ofqualifying assets are recognized in profit or loss.
The foreign currency gain or losses and discount income and expenses on trade receivables and trade payables are presented under other income/expense on operating activities. Interest income or expense is recognised using the effective interest method. Dividend income isrecognised in profit or loss on the date on which the Company's right to receive payment is established.
The income and expenses of foreign operations are translated into TL at the exchange rates at the dates of the transactions. Foreign currency denominated balances are translated into Turkish Lira with the rates at the balance sheet date. Foreign currency denominated balances are translated into Turkish Lira with the rates at the balance sheet date. The fair values of balances denominated in foreign currencies, which are translated at period end exchange rates, are considered to approximate their carrying values.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are translated into the currency of the date on which the fair value was determined. Non-monetary items measured at historical cost in foreign currencies are translated from the date on which the transaction is made.
Exchange differences are recognized in profit or loss in the period in which they are incurred, except in the following cases:
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Earnings/(loss) per share is calculated by dividing the net profit or loss and other comprehensive income for the period by the weighted average number of ordinary shares outstanding during the period.
Under TFRS 9, on initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI - debt investment; FVOCI - equity investment; or FVTPL. The classification of financial assets under TFRS 9 is generally based on the business model in which a financial asset is managed and its contractual cash flow characteristics. Derivatives embedded in contracts where the host is a financial asset in the scope of the standard are never separated. Instead, the hybrid financial instrument as a whole is assessed for classification.
A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL:
A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:
On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment's fair value in OCI. This election is made on an investment-by-investment basis. All financial assets not classified as measured at amortised for the FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised for the at FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.
A financial asset (unless it is a trade receivable without a significant financing component that is initially measured at the transaction price) is initially measured at fair value plus, for an item not at FVTPL, transaction costs that are directly attributable to its acquisition.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
With the implementation of TFRS 9, the "Expected Credit Loss" (ECL) model has replaced the "Incurred Loss" model under TMS 39. The new impairment model applies to financial assets measured at amortized cost, contract assets, and debt instruments measured at fair value through other comprehensive income (FVOCI) but does not apply to investments in equity instruments. Under TFRS 9, credit losses are recognized earlier compared to TMS 39. Financial assets measured at amortized cost consist of trade receivables and cash and cash equivalents.
Financial assets measured at amortized cost consist of trade receivables and cash and cash equivalents.
Under TFRS 9, loss allowances are measured based on either of the following approaches:
The Company measures loss allowances at an amount equal to lifetime ECLs, except for the following instruments, which are measured at 12-month ECLs:
The Company has elected to measure impairment for trade receivables and contract assets using the lifetime ECL approach.
To determine whether the credit risk of a financial asset has significantly increased since initial recognition and to estimate ECLs, the Company considers reasonable and supportable information that can be obtained without excessive cost or effort, including the effects of expected early repayments.
This information includes:
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The Company considers a financial asset to be in default in the following cases:
• The borrower fails to fully meet its credit obligation without the Company resorting to actions such as enforcing collateral (if applicable).
To determine whether a financial instrument has low credit risk, the Company may use internal credit risk ratings or other methodologies aligned with a globally accepted definition of low credit risk, considering the type and risk characteristics of the assessed financial instruments.
The maximum period for measuring ECLs is the maximum contractual period during which the Company is exposed to credit risk.
The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.
The Company considers a financial asset to be in default when:
• The borrower is unlikely to pay its credit obligations to the Company in full, without recourse by the Company to actions such as realising security (if any is held).
The Company considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of 'investment grade'.
The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.
● 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.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
In preparing the financial statements, management has made judgments, estimates and assumptions that affect the application of the Company's accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual amounts may differ from estimated amounts.
Estimates and related assumptions are reviewed on an ongoing basis. Changes to estimates are recognized prospectively
As of 30 June 2025 and 31 December 2024, cash and cash equivalents comprised the following:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Cash | 1,140,421 | 1,128,543 |
| Banks | 6,363,628,990 | 6,119,300,149 |
| - Time deposits |
1,509,800,979 | 1,264,726,289 |
| - Demand deposits |
4,853,828,011 | 4,854,573,860 |
| Cash at blockage (*) |
23,523,004 | 61,934,804 |
| Total | 6,388,292,415 | 6,182,363,496 |
(*) As at 30 June 2025, TL 23,523,004 of cash blockage amount mainly comprised of the credit card receivables with a maturity less than 3 months (2024: TL 61,934,804).
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Cash and cash equivalents included in the statement of cash flows for the six month period ended 30 June are comprised the followings:
| 30 June 2025 |
30 June 2024 |
|
|---|---|---|
| Cash and cash equivalents | 6,388,292,415 | 4,294,242,364 |
| Less: Blockage | (23,523,004) | (51,639,605) |
| Total | 6,364,769,411 | 4,242,602,759 |
As of 30 June 2025 and 31 December 2024, maturity details of time and demand deposits of the Company are as follows:
| Time Deposit | Demand Deposit | ||||
|---|---|---|---|---|---|
| 30 June | 31 December | 30 June | 31 December | ||
| 2025 | 2024 | 2025 | 2024 | ||
| USD | -- | -- | 1,484,972,604 | 1,221,374,057 | |
| EUR | -- | -- | 1,316,662 | 1,210,445 | |
| TL | 4,853,828,011 | 4,854,573,860 | 23,511,713 | 42,141,787 | |
| 4,853,828,011 | 4,854,573,860 | 1,509,800,979 | 1,264,726,289 |
As at 30 June 2025 and 31 December 2024, financial borrowings comprised the following:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Short term borrowings | 2,668,999,995 | 2,098,844,880 |
| Short term portions of long term loans | 46,873,348 | 57,778,771 |
| Other financial liabilities (*) | 24,431,887 | 71,588,832 |
| Lease liabilities | 76,679,379 | 83,435,637 |
| Short term financial borrowings | 2,816,984,609 | 2,311,648,120 |
| Long term borrowings | 36,056,578 | 63,057,606 |
| Lease liabilities | 61,335,806 | 111,586,695 |
| Long term financial borrowings | 97,392,384 | 174,644,301 |
| Total financial borrowings | 2,914,376,993 | 2,486,292,421 |
(*) The related amounts are composed of the financial liabilities related to the supplier financing activities.
The Company has no pledges or mortgages on its financial liabilities (31 December 2024: None).
The Company's loans have fixed interest rates.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
As of 30 June 2025 and 31 December 2024, the maturities of the Company's loan liabilities are as following:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Less than one year | 2,715,873,343 | 2,156,623,651 |
| Between one and two year | 36,056,578 | 44,771,369 |
| Between one and five years | -- | 18,286,237 |
| 2,751,929,921 | 2,219,681,257 |
As of 30 June 2025, the details of loans are as follows:
| 30 June 2025 |
|||
|---|---|---|---|
| Currency | TL Amount | Int. Rate % |
|
| Short term bank loans | TL | 2,668,999,995 | 22,09% - 26,93% |
| Short term portions of long term bank loans | TL | 46,873,348 | 13,75% |
| Total | 2,715,873,343 | ||
| Long Term Bank Loans | TL | 36,056,578 | 13,75% |
| Total | 2,751,929,921 |
As of 31 December 2024, the details of loans are as follows:
| 31 December 2024 | |||
|---|---|---|---|
| Currency | TL Amount | Int. Rate % |
|
| Short term bank loans | TL | 2,098,844,880 | 23,03% - 48,50% |
| Short term portions of long term bank loans | TL | 57,778,771 | 13,75% |
| Total | 2,156,623,651 | ||
| Long term bank loans | TL | 63,057,606 | 13,75% |
| Total | 2,219,681,257 |
As at 30 June 2025 and 2024, cash flows from financial operations comprised the followings:
| 1 January 2025 |
Usage | Payment | Non-cash transactions (*) |
Monetary gain/loss |
30 June 2025 |
|
|---|---|---|---|---|---|---|
| Financial liabilities Other financial |
2,219,681,257 | 2,118,299,757 | (1,154,922,501) | (71,438,675) | (359,689,917) | 2,751,929,921 |
| liabilities | 71,588,832 | 133,321,809 | (172,094,306) | -- | (8,384,448) | 24,431,887 |
| 2,291,270,089 | 2,251,621,566 | (1,327,016,807) | (71,438,675) | (368,074,365) | 2,776,361,808 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| 1 January 2024 |
Cash flows | Payment | Non-cash transactions (*) |
Monetary gain/loss |
30 June 2024 |
|
|---|---|---|---|---|---|---|
| Financial liabilities Other financial |
2,258,848,862 | 1,227,960,607 | (1,291,740,405) | (8,474,067) | (447,347,626) | 1,739,247,371 |
| liabilities | 2,159,712 | 9,473,734 | -- | -- | (1,073,370) | 10,560,076 |
| 2,261,008,574 | 1,237,434,341 | (1,291,740,405) | (8,474,067) | (448,420,996) | 1,749,807,447 |
(*) As at 30 June non-cash transactions consist of interest accrued.
For the purpose of this report, the shareholders and key management personnel of the Company of companies, the ultimate shareholders of the Company and the companies controlled by/associated with them are referred to as related parties. A number of transactions are entered into with the related parties in the normal course of business.
For the 30 June 2025, the executive members of the Company's management received aggregate compensation in amount of TL 97,000,031 (30 June 2024: TL 41,852,393).
As at 30 June 2025 and 31 December 2024, due from related parties and due to related parties are as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Federal Foods LLC(1) | 46,122,411 | 58,901,142 |
| Al Wafi Product Factory LLC(1) | 32,407,429 | 29,046,526 |
| AL Khan Foodstuff LLC(1) | 18,647,891 | 12,509,153 |
| Federal Foods (Qatar) LLC (1) | 18,326,130 | 44,922,361 |
| BRF Global GMBH(1) | 3,631,371 | -- |
| BRF Kuwait Food Management Co(1) | -- | 23,000,137 |
| Total | 119,135,232 | 168,379,319 |
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| BRF S.A(1) | -- | 178,262,663 |
| BRF Foods LLC(1) | -- | 135,309,120 |
| One Foods Holdıngs(1) | -- | 29,478,126 |
| BRF Global GmbH(1) | -- | 1,309,787 |
| Federal Foods (Qatar) LLC(1) | -- | 162,125 |
| Total | -- | 344,521,821 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| (1) BRF S.A. |
11,215,402 | 1,692,628 |
| BRF Global GmbH(1) | 4,960,489 | -- |
| Federal Foods (Qatar) LLC(1) | 1,981,261 | 17,418,997 |
| BRF GmbH(1) | 454,391 | 469,872 |
| Federal Foods LLC(1) | 337,193 | 2,189,504 |
| Total | 18,948,736 | 21,771,001 |
(1) Brasil Foods S.A. Grup Companies
There were no purchases of goods from related parties between the periods of January 1, 2025 - June 30, 2025, and January 1, 2024 - June 31, 2024.
| Total | 168,928,341 | 8,203,111 |
|---|---|---|
| BRF GmbH (**) | 542,374 | 1,411,418 |
| BRF S.A. (*) | 168,385,967 | 6,791,693 |
| 30 June 2025 |
30 June 2024 |
(*) BRF S.A. has provided information technology services amounting to 5,415,120 TL and management consulting services amounting to 162,970,847 TL.
(**) BRF GmbH has provided information technology services amounting to 542,374 TL.
Trade receivables of Company as of 30 June 2025 and 31 December 2024 are as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Trade receivables from other parties | 2,208,409,484 | 2,546,879,877 |
| Trade receivables from related parties (Note 5) | 119,135,232 | 168,379,319 |
| Total | 2,327,544,716 | 2,715,259,196 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Details of trade receivables as of 30 June 2025 and 31 December 2024 are as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Trade receivables | 2,285,499,449 | 2,626,628,695 |
| Trade receivables from related parties (Note 5) | 119,135,232 | 168,379,319 |
| Provisions for doubtful receivables | (9,162,999) | (6,571,632) |
| Rediscount expense | (67,926,966) | (73,177,186) |
| Total | 2,327,544,716 | 2,715,259,196 |
Provisions for doubtful receivables as at 1 January - 30 June 2025 and 1 January - 30 June 2024 were as follows:
| 30 June 2025 |
30 June 2024 |
|
|---|---|---|
| Beginning balance | (6,571,632) | (14,536,030) |
| Increase during the period | (10,337,889) | (1,877,452) |
| Monetary (gain)/loss | 6,630,837 | 3,483,552 |
| Reversal of bad-debt provision | 1,115,685 | 2,773,096 |
| Ending Balance | (9,162,999) | (10,156,834) |
The Company's exposure to currency and credit risk and impairment for current trade receivables are disclosed in Note 22.
As of 30 June 2025 and 31 December 2024, the nature and amount of commitments obtained against notes and trade receivables are as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Letters of guarantee | 1,007,452,000 | 1,122,612,057 |
| Total | 1,007,452,000 | 1,122,612,057 |
Trade payables of the Company as of 30 June 2025 and 31 December 2024 are as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Trade payables to other parties | 5,772,582,851 | 5,148,968,252 |
| Trade payables to related parties (Note 5) |
-- | 344,521,821 |
| Discount income | (81,640,875) | (58,037,994) |
| Total | 5,690,941,976 | 5,435,452,079 |
The Company's exposure to foreign currency risks for short term trade payables are disclosed in Note 22.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
At 30 June 2025 and 31 December 2024, inventories comprised the following:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Finished goods | 579,065,594 | 517,432,616 |
| Semi-finished goods | 468,784,063 | 427,059,450 |
| Raw materials | 1,095,649,078 | 1,046,877,165 |
| Goods in transit | 8,179,302 | 11,218,097 |
| Provision for inventories | (41,842,788) | (35,126,864) |
| Total | 2,109,835,249 | 1,967,460,464 |
Movements of allowance for impairment on inventories for the period ended 30 June 2025 and 2024 are as follows:
| 30 June 2025 |
30 June 2024 |
|
|---|---|---|
| Balance as at 1 January | 35,126,864 | 51,289,053 |
| (Reversal)/provision for the period, net | 6,715,924 | (17,799,670) |
| Total | 41,842,788 | 33,489,383 |
Breeder chickens those have useful life of 1 year, broiler daily chickens and breeder pullets are classified as biological assets as of 30 June 2025 and 31 December 2024.
Movements of biological assets at 30 June 2025 and 31 December 2024 are as follows:
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| Broiler daily chickens | 1,175,849,431 | 1,234,813,006 |
| Breeder chickens | 529,842,771 | 440,257,129 |
| Breeder pullets | 248,374,802 | 236,108,924 |
| Total | 1,954,067,004 | 1,911,179,059 |
Movements of broiler daily chickens at 30 June 2025 and 30 June 2024 are as follows:
| Broiler daily chickens | 30 June 2025 |
30 June 2024 |
|---|---|---|
| Beginning balance | 1,234,813,006 | 1,251,638,070 |
| Additions | 1,585,888,880 | 1,433,274,966 |
| Effect of physical changes (*) | 7,844,009,031 | 8,197,305,747 |
| Disposal (-) | (9,488,861,486) | (9,723,535,821) |
| Ending balance | 1,175,849,431 | 1,158,682,962 |
(*) Effect of physical changes mainly composed of feed consumptions, raiser costs, medicine and care costs.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Movements of breeder chickens at 30 June 2025 as follows:
| Cost | Accumulated depreciation |
Net carrying amount |
|
|---|---|---|---|
| 1 January 2025 | 833,747,435 | (393,490,306) | 440,257,129 |
| Additions | -- | (527,167,973) | (527,167,973) |
| Transfer | 616,753,615 | -- | 616,753,615 |
| Disposals | (578,134,919) | 578,134,919 | -- |
| 30 June 2025 |
872,366,131 | (342,523,360) | 529,842,771 |
Movements of breeder chickens at 30 June 2024 as follows:
| Cost | Accumulated depreciation |
Net carrying amount |
|
|---|---|---|---|
| 1 January 2024 | 764,787,411 | (372,573,632) | 392,213,779 |
| Additions | -- | (586,450,203) | (586,450,203) |
| Transfer | 719,551,491 | -- | 719,551,491 |
| Disposals | (615,030,159) | 615,030,159 | -- |
| 30 June 2024 |
869,308,743 | (343,993,676) | 525,315,067 |
As at 30 June 2025, total insurance on biological assets is TL 6,756,208 (31 December 2024: TL 6,986,389).
Movements of breeder pullets at 30 June 2025 and 30 June 2024 are as follows:
| Breeder pullet | 30 June 2025 |
30 June 2024 |
|---|---|---|
| Beginning balance | 236,108,924 | 326,539,322 |
| Additions | 238,020,880 | 225,442,557 |
| Effect of physical changes (*) | 390,998,613 | 424,915,607 |
| Transfer (-) | (616,753,615) | (719,551,491) |
| Ending balance | 248,374,802 | 257,345,995 |
(*) Effect of physical changes mainly composed of feed consumptions, raiser costs, medicine, and care costs.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| 30 June 2025 | 31 December 2024 | |||||
|---|---|---|---|---|---|---|
| Amount of Foreign |
Amount of Foreign |
|||||
| Currency | Currency | Amount of TL | Currency | Amount of TL | ||
| A. CPM given | ||||||
| in the name of | ||||||
| own legal | ||||||
| Entity | TL | -- | 1,636,192,582 | -- | 1,395,806,226 | |
| B. CPM given | ||||||
| to guarantee | ||||||
| the debts of | ||||||
| third parties to | ||||||
| continue their | ||||||
| operations | TL | -- | -- | -- | -- | |
| C. Other CPM | TL | -- | -- | -- | -- | |
| Total | -- | 1,636,192,582 | -- | 1,395,806,226 |
All CPMs given by the Company consist of guarantees.
At 30 June 2025 and 31 December 2024, current prepaid expenses comprised the following:
| 30 June 2025 |
31 December 2024 |
|
|---|---|---|
| Prepaid expenses for future months | 254,209,721 | 79,799,137 |
| Advances given to suppliers | 196,055,283 | 71,528,351 |
| Advances given to breeders | 156,778,376 | 126,245,737 |
| Advances given to personnel | 2,362,435 | 1,634,464 |
| 609,405,815 | 279,207,689 |
At 30 June 2025 and 31 December 2024, non current prepaid expenses comprised the following:
| Advances given to suppliers | 30 Haziran 2025 62,489 |
31 Aralık 2024 72,908 |
|---|---|---|
| Prepaid expenses for future years | -- | 243,526 |
| 62,489 | 316,434 |
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
As of 30 June 2025 and 31 December 2024, other current assets are as follows:
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Deferred Value Added Taxes ("VAT") Other |
1,306,269,188 488,536 |
1,510,675,322 -- |
| 1,306,757,724 | 1,510,675,322 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Movements of tangible assets at 30 June 2025 are as follows:
| 1 January 2025 | Additions | Disposals (-) |
Transfers | 30 June 2025 |
|
|---|---|---|---|---|---|
| Cost | |||||
| Land, Building and Land Improvements | 2,858,829,073 | -- | -- | 12,701,934 | 2,871,531,007 |
| Machinery, Plant and Equipment | 4,197,818,754 | -- | (33,896,021) | 47,631,810 | 4,211,554,543 |
| Motor Vehicles | 9,215,941 | -- | (34,866) | -- | 9,181,075 |
| Furniture and Fixture | 497,565,597 | -- | (5,048,862) | 3,849,717 | 496,366,452 |
| Construction in Progress | 62,816,978 | 53,644,942 | -- | (80,475,999) | 35,985,921 |
| Leasehold Improvements | 391,914,903 | -- | (98,357) | -- | 391,816,546 |
| Total | 8,018,161,246 | 53,644,942 | (39,078,106) | (16,292,538) | 8,016,435,544 |
| Accumulated Depreciation | |||||
| Land, Building and Land Improvements | (95,148,441) | (25,593,217) | -- | -- | (120,741,658) |
| Machinery, Plant and Equipment | (669,643,071) | (167,489,865) | 6,047,975 | -- | (831,084,961) |
| Motor Vehicles | (8,821,540) | (76,311) | 20,754 | -- | (8,877,097) |
| Furniture and Fixture | (129,960,566) | (16,554,117) | 2,555,440 | -- | (143,959,243) |
| Leasehold Improvements | (265,202,193) | (10,146,128) | 98,357 | -- | (275,249,964) |
| Total | (1,168,775,811) | (219,859,638) | 8,722,526 | -- | (1,379,912,923) |
| Net Book Value | 6,849,385,435 | 6,636,522,621 |
As at 30 June 2025 there are no mortgage or pledge on property, plant and equipment.
As at 30 June 2025, property, plant and equipment are insured against the earthquake, fire, flood and similar disasters amounting to TL 5,660,139,730.
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Movements of tangible assets at 30 June 2024 are as follows:
| 1 January 2024 | Additions | Disposals (-) | Transfers | 30 June 2024 |
|
|---|---|---|---|---|---|
| Cost | |||||
| Land, Building and Land Improvements | 2,817,015,669 | -- | (2,910) | 31,859,116 | 2,848,871,875 |
| Machinery, Plant and Equipment | 4,165,966,670 | -- | (3,406,053) | 21,242,873 | 4,183,803,490 |
| Motor Vehicles | 10,173,398 | -- | (906,849) | -- | 9,266,549 |
| Furniture and Fixture | 491,052,199 | -- | (4,984,759) | 4,714,074 | 490,781,514 |
| Construction in Progress | 84,706,165 | 25,970,822 | -- | (60,232,632) | 50,444,355 |
| Leasehold Improvements | 507,737,876 | -- | (115,828,598) | 151,374 | 392,060,652 |
| Total | 8,076,651,977 | 25,970,822 | (125,129,169) | (2,265,195) | 7,975,228,435 |
| Accumulated Depreciation | |||||
| Land, Building and Land Improvements | (45,271,674) | (24,789,647) | 50 | -- | (70,061,271) |
| Machinery, Plant and Equipment | (334,258,764) | (170,473,814) | 79,441 | -- | (504,653,137) |
| Motor Vehicles | (9,012,528) | (581,312) | 828,591 | -- | (8,765,249) |
| Furniture and Fixture | (99,076,097) | (16,434,366) | 1,829,893 | -- | (113,680,570) |
| Leasehold Improvements | (337,492,232) | (27,664,655) | 115,657,267 | -- | (249,499,620) |
| Total | (825,111,295) | (239,943,794) | 118,395,242 | -- | (946,659,847) |
| Net Book Value | 7,251,540,682 | 7,028,568,588 |
As at 30 June 2024 there are no mortgage or pledge on property, plant and equipment.
As at 30 June 2024, property, plant and equipment are insured against the earthquake, fire, flood and similar disasters amounting to TL 4,731,259,661.
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Movement of intangible assets for the interim period dated 30 June 2025 is as follows:
| Cost | 1 January 2025 | Additions | Disposals (-) | Transfers | 30 June 2025 |
|---|---|---|---|---|---|
| Software | 292,296,024 | -- | (1,186,507) | 16,292,538 | 307,402,055 |
| Licence | 20,870,977 | -- | (62,035) | -- | 20,808,942 |
| Total | 313,167,001 | -- | (1,248,542) | 16,292,538 | 328,210,997 |
| Accumulated Depreciation | |||||
| Software | (247,875,965) | (30,483,509) | 1,186,507 | -- | (277,172,967) |
| Licence | (15,506,348) | (280,011) | 25,159 | -- | (15,761,200) |
| Total | (263,382,313) | (30,763,520) | 1,211,666 | -- | (292,934,167) |
| Net book value | 49,784,688 | 35,276,830 |
Movement of intangible assets for the interim period dated 30 June 2024 is as follows:
| Cost | 1 January 2024 | Additions | Disposals (-) | Transfers | 30 June 2024 |
|---|---|---|---|---|---|
| Software | 359,893,491 | -- | -- | 2,265,195 | 362,158,686 |
| Licence | 20,941,135 | -- | -- | -- | 20,941,135 |
| Total | 380,834,626 | -- | -- | 2,265,195 | 383,099,821 |
| Accumulated Depreciation | |||||
| Software | (224,115,920) | (46,748,428) | -- | -- | (270,864,348) |
| Licence | (14,960,905) | (284,416) | -- | -- | (15,245,321) |
| Total | (239,076,825) | (47,032,844) | -- | -- | (286,109,669) |
| Net book value | 141,757,801 | 96,990,152 |
For the periods ended 30 June 2025 and 2024, amortization expenses for the current period are included in cost of sales, general administrative expenses, marketing expenses and research and development expenses.
As of 30 June 2025, the Company has no internally created intangible assets (30 June 2024: None).
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
As at 30 June 2025, the paid-in capital of the Company comprises of 100,023,579 shares issued (31 December 2024: 100,023,579 shares) of TL 1 each (31 December 2024: TL 1). There are no privileges rights provided to different shareholder Companys or individuals. The shareholder structure of the Company is as follows:
| 30 June 2025 |
31 December 2024 | ||||
|---|---|---|---|---|---|
| Ownership | Ownership | ||||
| Class | Interest | Shares (%) | Interest | Shares (%) | |
| Shareholders | |||||
| TBQ Foods GmbH | A | 91,727,012 | %91.71 | 91,727,012 | %91.71 |
| Publicly traded | A | 8,296,567 | %8.29 | 8,296,567 | %8.29 |
| Total | 100,023,579 | 100,023,579 |
The Company acknowledged registered capital system under the provisions of Law No, 6362 and adopted the system with the permit of CMB dated 24 February 2011 numbered 6/181, The authorized capital limit is TL 8,000,000,000 and the authority to increase the capital up to the registered capital limit is given to the board of directors until 2026.
As of June 30, 2025, capital adjustment differences amounting to TL 2,347,403,249 consist of capital adjustment differences arising from the adjustment of the Company's paid-in capital amount according to inflation and not offset against previous years' losses or added to the capital (31 December 2024: TL 2,347,403,249).
Consists of actuarial gains and losses recognized as other comprehensive income as a result of the adoption of TAS 19 (2011).
The properties revaluation fund arises on the revaluation of land. When revalued land is disposed, the portion of the properties revaluation reserves that relates to that asset is transferred directly to retained earnings.
| 30 June 2025 |
30 June 2024 |
|
|---|---|---|
| Balance as at 1 January | 624,353,048 | 638,116,454 |
| Fair value increase arising from sale of tangible assets (-) |
(8,280,043) | (8,788,823) |
| Total | 616,073,005 | 629,327,631 |
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Foreign currency translation differences arise from the translation of equity items of foreign subsidiaries into Turkish Lira prior to December 31, 2024. As of December 31, 2024, the Company has no foreign subsidiaries.
The legal reserves consist of the first and second reserves in accordance with the Turkish Commercial Code, The first legal reserve is appropriated out of the statutory profit at the rate of 5% until the total reserve reaches a maximum of 20% of the Company's paid-in capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the Company's share capital. The first and second legal reserves are not available for distribution unless they exceed 50% of the share capital, however, they can be used to offset losses if there are no retained earnings. In May 23, 2025, the Company has transferred TL 6,544,407 to legal reserves (31 December 2024: None.).
| 30 June 2025 |
31 December 2024 | |
|---|---|---|
| First legal reserve | 221,032,128 | 214,487,721 |
| Second legal reserve | 69,524,517 | 69,524,517 |
| Total | 290,556,645 | 284,012,238 |
The historical values and inflation adjustment effects of the following accounts under the Company's equity are as follows as of June 30, 2024, in accordance with the CMB and TCC financial statements:
| Inflation | |||
|---|---|---|---|
| 30 June 2025 (CMB) |
Historical | Effect | Inflated |
| Paid-in share capital | 100,023,579 | -- | 100,023,579 |
| Inflation adjustment of capital | 6,348,821 | 2,341,054,428 | 2,347,403,249 |
| Restricted reserves | 20,004,716 | 270,551,929 | 290,556,645 |
| Other reserves | 5,611,290 | 90,772,118 | 96,383,408 |
| Accumulated gains/(losses) | 6,484,568,557 | 2,702,378,475 | 9,186,947,032 |
| Total | 6,616,556,963 | 5,404,756,950 | 12,021,313,913 |
| 30 June 2025 (Local book) |
Historical | Inflation Effect |
Inflated |
| Paid-in share capital | 100,023,579 | -- | 100,023,579 |
| Inflation adjustment of capital | 1,654,695 | 3,487,778,580 | 3,489,433,275 |
| Restricted reserves | 20,004,716 | 366,918,884 | 386,923,600 |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The immovables and all Banvit shares held by Yumtaş, a subsidiary of Banvit, were transferred to the Company prior to the bankruptcy of the subsidiary. In the financial statements as of 31 December 2009, these shares are followed as the company's own shares at an nominal cost of TL 22,511,632. On October 25, 2010, the company sold 4,750,293 shares of Banvit in its treasury to foreign investors at a price of 5.95 TL per share as a block.
The accumulated profits other than the net profit for the period is presented in retained earnings. The extraordinary reserves which are accumulated profits are also presented in retained earnings.
| 30 June 2025 |
31 December 2024 |
|
|---|---|---|
| Accumulated gains/profit | 9,186,947,032 | 4,986,025,018 |
| Total | 9,186,947,032 | 4,986,025,018 |
For the periods 1 January – 30 June 2025 and 2024, gross profit as a result of revenues and cost of sales related operating are as follows:
| 1 January - 30 June 2025 |
1 April - 30 June 2025 |
1 January - 30 June 2024 |
1 April - 30 June 2024 |
|
|---|---|---|---|---|
| Domestic sales | 19,666,504,994 | 9,372,733,130 | 22,451,802,790 | 11,881,908,464 |
| Export | 1,207,598,818 | 597,384,083 | 2,223,536,624 | 815,249,683 |
| Other sales | -- | -- | 62,537 | 1,333 |
| Gross sales | 20,874,103,812 | 9,970,117,213 | 24,675,401,951 | 12,697,159,480 |
| Returns and discounts (-) | (5,408,674,290) | (2,636,922,349) | (5,914,729,263) | (3,175,808,351) |
| Net sales | 15,465,429,522 | 7,333,194,864 | 18,760,672,688 | 9,521,351,129 |
| Cost of sales (-) | (14,480,813,167) | (7,305,809,799) | (14,043,751,492) | (6,721,251,419) |
| Gross profit | 984,616,355 | 27,385,065 | 4,716,921,196 | 2,800,099,710 |
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Total income tax benefit recognized in profit or loss for the period ended 30 June 2025 and 2024 are as follows:
| 1 January - 30 June 2025 |
1 April - 30 June 2025 |
1 January - 30 June 2024 |
1 April - 30 June 2024 |
|
|---|---|---|---|---|
| Current period tax expense Deferred tax income |
(228,579,461) 152,635,108 |
63,748,533 67,432 |
(1,162,394,898) (10,118,042) |
(688,506,744) (72,443,640) |
| Tax benefit | (75,944,353) | 63,815,965 | (1,172,512,940) | (760,950,384) |
As at 30 June 2024,31 December 2023 total current tax liability comprised the following:
| 30 July 2024 | 31 December2023 | |
|---|---|---|
| Corporate tax provision | (227,594,499) | (1,460,205,442) |
| Prepaid taxes | 140,916,891 | 1,263,815,430 |
| Total current tax liability / (assets) | (86,677,608) | (196,390,012) |
The details of deferred tax assets and liabilities as of June 30, 2025 are as follows:
| 30 June 2025 Asset/(Liability) |
31 December 2024 Asset/(Liability) |
|
|---|---|---|
| Tangible & Intangible assets | (788,769,418) | (811,162,235) |
| Right of use assets and lease liabilities | (23,382,222) | (23,422,067) |
| Other short-term provisions | 47,801,801 | 8,541,386 |
| Inventory | 78,064,210 | (19,253,313) |
| Trade Receivables | 16,346,397 | 23,600,462 |
| Trade and Other Payables | 36,673,715 | (5,806,069) |
| Prepaid expenses and biological assets | 62,270,344 | 32,751,351 |
| Payables within the scope of | ||
| employee benefits | 58,868,718 | 23,693,508 |
| Government Incentives | 62,331,208 | 73,352,843 |
| Short-term provisions for employee benefits | 50,037,563 | 76,014,579 |
| Provisions from employee benefits | 162,094,762 | 175,522,487 |
| Other | 66,586,015 | 122,455,053 |
| Deferred tax asset/(liability), net | (171,076,907) | (323,712,015) |
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Earnings/ (losses) per share for the 6-month period ended 30 June 2025 amounting to TL (2,7730) (30 June 2024: TL 25,8421). Earnings/ (losses) per share is computed by dividing the net profit/ (losses) for the 6-months periods ended to the weighted average of the shares during these periods.
| 1 January - 30 June 2025 |
1 April - 30 June 2025 |
1 January - 30 June 2024 |
1 April - 30 June 2024 |
|
|---|---|---|---|---|
| Earnings/ (Losses) per share |
||||
| Net profit/ (loss) Number of weighted average of ordinary |
(277,365,164) | (262,356,665) | 2,584,819,744 | 1,609,071,175 |
| shares | 100,023,579 | 100,023,579 | 100,023,579 | 100,023,579 |
| Earnings/ (Losses) per share (TL) |
(2.7730) | (2.6229) | 25.8421 | 16.0869 |
For the six-month period ended 30 June, other operating income comprised the following:
| 1 January - 30 June 2025 |
1 April - 30 June 2025 |
1 January - 30 June 2024 |
1 April - 30 June 2024 |
|
|---|---|---|---|---|
| Rediscount income, net | 304,754,142 | 140,904,927 | 419,869,577 | 253,161,644 |
| Foreign exchange gains | 184,330,762 | 88,594,949 | 67,777,958 | (18,024,634) |
| Scrap sales revenues | 10,528,684 | 5,151,329 | 11,313,387 | 5,204,810 |
| Other | -- | -- | 1,606,100 | 716,243 |
| Provisions no longer required | 46,976,119 | 44,358,958 | 985,429 | (4,381,101) |
| Other operating income | 546,589,707 | 279,010,163 | 501,552,451 | 236,676,962 |
For the six-month period ended 30 June, other operating expenses comprised the following:
| 1 January - | |||||
|---|---|---|---|---|---|
| 1 January - | 1 April - | 30 June | 1 April - | ||
| 30 June 2025 |
30 June 2025 |
2024 | 30 June 2024 | ||
| Foreign exchange losses | (409,698,293) | (175,624,686) | (308,087,358) | (54,045,939) | |
| Impairment loss on trade | |||||
| receivables | (3,707,052) | 227,849 | -- | -- | |
| Other | (24,643,340) | (21,445,458) | (23,170,495) | (18,763,554) | |
| Other operating expenses | (438,048,685) | (196,842,295) | (331,257,853) | (72,809,493) |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
For the six-month period ended 30 June, financial income comprised the following:
| 1 January - 30 June 2025 |
1 April - 30 June 2025 |
1 January - 30 June 2024 |
1 April - 30 June 2024 |
|
|---|---|---|---|---|
| Interest Income | 1,097,464,235 | 624,685,061 | 278,321,306 | 243,981,855 |
| Foreign Currency Exchange Gain | -- | -- | 89,426,042 | 46,453,590 |
| Financial Income | 1,097,464,235 | 624,685,061 | 367,747,348 | 290,435,445 |
For the six-month period ended 30 June, financial expenses comprised the following:
| 1 January - 30 June 2025 |
1 April - 30 June 2025 |
1 January - 30 June 2024 |
1 April - 30 June 2024 |
|
|---|---|---|---|---|
| Interest Expense | (324,001,156) | (40,763,644) | (349,929,848) | (188,244,580) |
| Commissions and Other Expenses | (165,062,400) | (79,066,355) | (217,206,204) | (139,948,780) |
| Interest Cost on Employee Benefits | 64,413,159) | (31,166,603) | (110,704,643) | (52,736,031) |
| Interest Expense on Lease Liabilities | (9,720,677) | (4,477,597) | (15,982,856) | (7,584,699) |
| Foreign Exchange Losses | (674,772) | (674,773) | (54,391,047) | (54,391,048) |
| Financial Expenses | (563,872,164) | (156,148,972) | (748,214,598) | (442,905,138) |
Net Monetary Gain Loss Position reported in the statement of profit or loss arise from the following monetary financial statement items:
| 30 June 2025 |
|
|---|---|
| Monetary Asset Items | |
| Cash and cash equivalents | (942,689,772) |
| Trade receivables | (431,626,449) |
| Other receivables | (37,231,754) |
| Current income tax assets | (165,521,840) |
| Other current assets | (281,784,385) |
| Monetary Liability Items | |
| Borrowings | 340,152,307 |
| Lease Liabilities | 25,723,383 |
| Trade Payables | 826,285,850 |
| Other Payables | 10,638,548 |
| Deferred Income | 23,667,525 |
| Long-term Provisions for Employee Benefits | 23,661,541 |
| Provisions | 145,727,931 |
| Current Tax Liability | 218,469,092 |
| Net Monetary Loss Position |
(244,528,023) |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The Company has exposure to the following risks from its operations:
This note informs about, Company's exposures towards risks mentioned above, Company's goals, policies and processes for measuring and managing risks and capital management policy of the Company.
The Board of Directors has overall responsibility for the establishment and oversight of the Company's risk management framework. The board of directors has established the risk management committee, which is responsible for developing and monitoring the Company's risk management policies. The committee reports regularly to the board of directors on its activities.
The Company's risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company's activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
The Company audit committee oversees how management monitors compliance with the Company's risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company audit committee is assisted in its oversight role by internal audit, Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.
Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company's receivables from customers and investments in debt securities. The carrying amounts of financial assets and contract assets represents the maximum credit exposure. Financial instruments that could cause the Company to considerably increase credit risk are mainly cash and commercial receivables. The Company has cash and cash equivalents in various financial institutions. The Company manages this risk by limiting transactions with financial institutions and by constantly evaluating the reliability of such institutions. Credit risk that may arise from trade receivables is limited by the fact that the Company management limits the amount of credit applied to customers. Trade receivables are assessed by considering their past experiences and current economic situation in the Company management and are presented as net in the balance sheet after the provision for doubtful receivables is settled (Note 6).
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
Market risk is the risk that changes in market prices, interest rates and equity prices will affect the Company's income or the value of its holdings of financial instruments. The Company is subject to the risk of interest rate fluctuations to the extent that interest-earning assets and interest-bearing liabilities mature or reprise at different times or in differing amounts.
The Company is exposed to currency risk due to its sales, import transactions and borrowings in foreign currency. These transactions are held mostly in USD and Euro.
Operational risk is the direct or indirect loss arising from a wide variety of factors related to the Company's processes, employees, technology and infrastructure, and external factors such as legal and regulatory requirements outside the credit risk, market risk and liquidity risk, and generally accepted standards for legal entity Risk. Operational risks arise from all Company activities.
The Company's objective is to manage operational risk so as to balance the avoidance of financial losses. In this context, the following company procedures and internal control issues have been identified:
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Receivables | |||||
|---|---|---|---|---|---|
| Trade receivables | Other receivables | ||||
| 30 June 2025 |
Related party | Other | Related party | Other | Deposits on banks |
| Exposure to maximum credit risk as at reporting date (A | |||||
| +B+C+D+E) | 119,135,232 | 2,208,409,484 | -- | 308,379,423 | 6,363,628,990 |
| - The part of maximum risk under guarantee with collateral | -- | (1,007,452,000) | -- | -- | -- |
| A. Net carrying value of financial assets which are neither impaired nor |
|||||
| overdue | 119,135,232 | 2,137,683,513 | -- | 308,379,423 | 6,363,628,990 |
| B. Net carrying value of financial assets that are restructured, otherwise |
|||||
| which will be regarded as overdue or impaired | -- | -- | -- | -- | -- |
| C. Net carrying value of financial assets which are overdue but not |
|||||
| impaired | -- | 70,725,971 | -- | -- | -- |
| Covered portion of net book value (with letter of guarantee etc.) | -- | -- | -- | -- | -- |
| D. Net carrying value of financial assets which are impaired |
-- | -- | -- | -- | -- |
| - Past due (gross book value) |
-- | 9,162,999 | -- | -- | -- |
| - Impairment (-) |
-- | (9,162,999) | -- | -- | -- |
| - Covered portion of net book value (with letter of guarantee etc.) |
-- | -- | -- | -- | -- |
| Impairment (-) | -- | -- | -- | -- | -- |
| E. Off balance sheet items with credit risks |
-- | -- | -- | -- | -- |
| 30 June 2025 |
Receivables | |
|---|---|---|
| Trade receivables | Other receivables | |
| Past due 1 - 30 days |
61,541,578 | -- |
| Past due 1 - 3 months |
2,846,837 | -- |
| Past due 3 - 12 months |
1,428,775 | -- |
| More than 1 - 5 years |
4,908,781 | -- |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Receivables | |||||
|---|---|---|---|---|---|
| Trade receivables | Other receivables | ||||
| 30 June 2024 |
Related party | Other | Related party | Other | Deposits on banks |
| Exposure to maximum credit risk as at reporting date (A +B+C+D+E) | 168,379,319 | 2,546,879,877 | -- | 191,450,697 | 6,119,300,149 |
| - The part of maximum risk under guarantee with collateral | -- | (1,122,612,057) | -- | -- | -- |
| A. Net carrying value of financial assets which are neither impaired nor |
|||||
| overdue | 168,379,319 | 2,509,233,696 | -- | 191,450,697 | 6,119,300,149 |
| B. Net carrying value of financial assets that are restructured, otherwise |
|||||
| which will be regarded as overdue or impaired | -- | -- | -- | -- | -- |
| C. Net carrying value of financial assets which are overdue but not impaired |
-- | 37,646,181 | -- | -- | -- |
| Covered portion of net book value (with letter of guarantee etc.) | -- | -- | -- | -- | -- |
| D. Net carrying value of financial assets which are impaired |
-- | -- | -- | -- | -- |
| - Past due (gross book value) |
-- | 6,571,632 | -- | -- | -- |
| - Impairment (-) |
-- | (6,571,632) | -- | -- | -- |
| - Covered portion of net book value (with letter of guarantee etc.) |
-- | -- | -- | -- | -- |
| Impairment (-) | -- | (6,571,632) | -- | -- | -- |
| E. Off balance sheet items with credit risks |
-- | -- | -- | -- | -- |
| 30 June 2024 |
Receivables | |
|---|---|---|
| Trade receivables | Other receivables | |
| Past due 1 - 30 days |
37,646,181 | -- |
| Past due 1 - 3 months |
-- | -- |
| Past due 3 - 12 months |
-- | -- |
| More than 1 - 5 years |
-- | -- |
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
The Company works with most of its customers since its foundation and there has not been any loss due to receivables from these customers. In order to monitor credit risks, customers are reCompanyed according to their credit character and customer types. Most of the accounts receivable consist of the receivables from store chains.
As of 30 June 2025, the maximum credit limit granted by the Company to the branches is TL 10,000 and each credit limit offer above TL 10,000 is evaluated according to the processes determined in the Company CRM policies.
As of 30 June 2025, the Company enters its customers within the scope of the commercial credit insurance with a limit of TL 10,000-250,000 in order to secure their receivables. For the limits demanded above these limits, commercial credit insurance is applied to the processes determined in the Company's CRM policies.
Company obtains a letter of bank guarantee from its customers to avoid exposure of the collection risk or ensures that it is included in the DBS system.
Transactions in foreign currency cause the risk of exchange. The exchange rate risk is managed by forward foreign exchange purchase/sale contracts based on approved policies.
Assets and liabilities in foreign currencies of the Company as of 30 June 2025 and 31 December 2024 are as follows:
| 30 June 2025 | ||||
|---|---|---|---|---|
| TRY | ||||
| Equivalent | USD | EUR | ||
| 1. Trade Receivables | 203,872,502 | 3,703,313 | 1,217,847 | |
| 2. Cash and Cash Equivalents | 1,486,289,266 | 37,364,945 | 28,283 | |
| 3. Other | -- | -- | -- | |
| 4. Current Assets (1+2+3) | 1,690,161,768 | 41,068,258 | 1,246,130 | |
| 5. Total Assets (4) | 1,690,161,768 | 41,068,258 | 1,246,130 | |
| 6. Trade Payables | (2,485,141,822) | (49,547,684) | (10,988,205) | |
| 7. Financial Liabilities | -- | -- | -- | |
| 8. Short-Term Liabilities (6+7) | (2,485,141,822) | (49,547,684) | (10,988,205) | |
| 9. Financial Liabilities | -- | -- | -- | |
| 10. Long-Term Liabilities (9) | -- | -- | -- | |
| 11. Total Liabilities (8+10) | (2,485,141,822) | (49,547,684) | (10,988,205) | |
| Total (4+11) | (794,980,054) | (8,479,426) | (9,742,075) |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| 31 December 2024 | |||||
|---|---|---|---|---|---|
| TRY | |||||
| Equivalent | USD | EUR | GBP | ||
| 1. Trade Receivables | 278,459,239 | 3,135,314 | 2,241,255 | -- | |
| 2. Cash and Cash Equivalents | 1,337,542,754 | 23,491,169 | 3,146,094 | -- | |
| 3. Other | -- | -- | -- | -- | |
| 4. Current Assets (1+2+3) | 1,616,001,993 | 26,626,483 | 5,387,349 | -- | |
| 5. Total Assets (4) | 1,616,001,993 | 26,626,483 | 5,387,349 | -- | |
| 6. Trade Payables | (2,513,074,096) | (39,357,132) | (10,147,951) | (350) | |
| 7. Financial Liabilities | -- | -- | -- | -- | |
| 8. Short-Term Liabilities | |||||
| (6+7) | (2,513,074,096) | (39,357,132) | (10,147,951) | (350) | |
| 9. Financial Liabilities | -- | -- | -- | -- | |
| 10. Long-Term Liabilities (9) | -- | -- | -- | -- | |
| 11. Total Liabilities (8+10) | (2,513,074,096) | (39,357,132) | (10,147,951) | (350) | |
| Total (4+11) | (897,072,103) | (12,730,649) | (4,760,602) | (350) |
| Profit/(Loss) | Equities | ||||
|---|---|---|---|---|---|
| Appreciation Depreciation of |
Appreciatio | Depreciation | |||
| of foreign | foreign | n of foreign | of foreign | ||
| currency | currency | currency | currency | ||
| 10% appreciation/depreciation of USD against TL | |||||
| 1-USD net asset/liability | (33,759,987) | 33,759,987 | -- | -- | |
| 2-Portion of hedged for USD (-) | -- | -- | -- | -- | |
| 3-Net effect of USD (1+2) | (33,759,987) | 33,759,987 | -- | -- | |
| 10% appreciation/depreciation of EUR against TL | |||||
| 4- EUR net asset/liability | (45,351,892) | 45,351,892 | -- | -- | |
| 5- Portion of hedged for EUR (-) | -- | -- | -- | -- | |
| 6- Net effect of EUR (4+5) | (45,351,892) | 45,351,892 | -- | -- | |
| 10% appreciation/depreciation of other currencies against TL | |||||
| 7- Other currencies net asset/liability | -- | -- | -- | -- | |
| 8- Portion of hedged for other | |||||
| currencies (-) | -- | -- | -- | -- | |
| 9- Net effect of other currencies | |||||
| (7+8) | -- | -- | -- | -- | |
| Total (3+6+9) | (79,111,879) | 79,111,879 | -- | -- |
(Amounts expressed in full of Turkish Lira ("TRY") unless otherwise stated) (The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
| Exchange Rate Sensitivity Analysis | ||||
|---|---|---|---|---|
| 31 December 2024 | ||||
| Profit/(Loss) | Equities | |||
| Appreciation | Depreciation of | Appreciatio | Depreciation | |
| of foreign | foreign | n of foreign | of foreign | |
| currency | currency | currency | currency | |
| 10% appreciation/depreciation of USD against TL | ||||
| 1-USD net asset/liability | (50,685,806) | 50,685,806 | -- | -- |
| 2-Portion of hedged for USD (-) | -- | -- | -- | -- |
| 3-Net effect of USD (1+2) | (50,685,806) | 50,685,806 | -- | -- |
| 10% appreciation/depreciation of EUR against TL | ||||
| 4- EUR net asset/liability | (22,161,840) | 22,161,840 | -- | -- |
| 5- Portion of hedged for EUR (-) | -- | -- | -- | -- |
| 6- Net effect of EUR (4+5) | (22,161,840) | 22,161,840 | -- | -- |
| 10% appreciation/depreciation of other currencies against TL | ||||
| 7- Other currencies net asset/liability | (1,908) | 1,908 | -- | -- |
| 8- Portion of hedged for other | ||||
| currencies (-) | -- | -- | -- | -- |
| 9- Net effect of other currencies | ||||
| (7+8) | (1,908) | 1,908 | -- | -- |
| Total (3+6+9) | (72,849,554) | 72,849,554 | -- | -- |
On January 19, 2024, the Competition Authority launched an official investigation into certain white meat producers, including Banvit, to determine whether they had violated Article 4 of the Law on the Protection of Competition, and requested a defense statement from Banvit. At this stage, it is not possible to make any predictions regarding the decision to be made or the exact effects of any potential administrative fines or other financial obligations that may arise as part of the investigation process.
An internal corporate restructuring process was initiated on May 15, 2025, whereby all minority shareholders of BRF S.A., the indirect parent company of the Company, will exchange their shares in BRF S.A. for shares to be issued by Marfrig Global Foods S.A., the current controlling shareholder of BRF S.A. As a result, Marfrig Global Foods S.A. will achieve full control over BRF S.A. without any change in control. This transaction will not lead to a change in the ultimate control structure of Marfrig Global Foods S.A., BRF S.A., or the Company.
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2025.)
As at 30 June 2025, net cash used from operating activities of the Company is TL 743,817,615 (30 June 2024: TL 5,005,217,106), net cash used in investing activities is TL (593,054,460) (30 June 2024: TL (1,271,912,291)), net cash provided from financing activities is TL 1,637,420,590 (30 June 2024: TL 90,750,255).
The equity of the Company consist the equity Parent company in amount of TL 11,394,854,022 as of 30 June 2025 (30 June 2024: TL 9,991,555,578).
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