Quarterly Report • Apr 30, 2025
Quarterly Report
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CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 31 MARCH 2025
(ORIGINALLY ISSUED IN TURKISH)
| STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) | 1-4 |
|---|---|
| STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 5-6 |
| STATEMENTS OF CHANGES IN EQUITY | 7 |
| STATEMENTS OF CASH FLOWS | 8-10 |
| NOTE 1 | COMPANY'S ORGANISATION AND NATURE OF OPERATIONS | 11 |
|---|---|---|
| NOTE 2 | BASIS OF PRESENTATION OF FINANCIAL STATEMENTS | 12-18 |
| NOTE 3 | SEGMENT REPORTING | 19 |
| NOTE 4 | CASH AND CASH EQUIVALENTS | 20 |
| NOTE 5 | FINANCIAL LIABILITIES | 21-23 |
| NOTE 6 | RELATED PARTY DISCLOSURES 24-27 | |
| NOTE 7 | TRADE RECEIVABLES AND PAYABLES | 28 |
| NOTE 8 | OTHER RECEIVABLES AND PAYABLES | 29 |
| NOTE 9 | INVENTORIES | 30 |
| NOTE 10 | PREPAID EXPENSES | 30 |
| NOTE 11 | PROPERTY, PLANT AND EQUIPMENT | 31-32 |
| NOTE 12 | RIGHT OF USE ASSETS | 33 |
| NOTE 13 | INTANGIBLE ASSETS | 34 |
| NOTE 14 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 35-36 | |
| NOTE 15 | COMMITMENTS | 37 |
| NOTE 16 | EMPLOYEE BENEFITS 37-39 | |
| NOTE 17 | OTHER ASSETS AND LIABILITIES | 39 |
| NOTE 18 | CAPITAL, RESERVES AND OTHER EQUITY ITEMS 40-42 | |
| NOTE 19 | SALES | 42 |
| NOTE 20 | OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES | 42-43 |
| NOTE 21 | FINANCIAL INCOME AND FINANCIAL EXPENSE | 43 |
| NOTE 22 | MONETARY GAIN/LOSS ………………………………………………………………………………………… | 44 |
| NOTE 23 | TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 44-49 | |
| NOTE 24 | LOSSES PER SHARE | 49 |
| NOTE 25 | DERIVATIVE INSTRUMENTS | 49 |
| NOTE 26 | FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 49-53 | |
| NOTE 27 | FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) 53-54 | |
| NOTE 28 | OTHER FINANCIAL LIABILITIES | 54 |
| NOTE 29 | SUBSEQUENT EVENT | 55 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 31 March 2025 | 31 December 2024 | |
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash and Cash Equivalents | 4 | 587.421 | 1.202.038 |
| Financial Assets | 24.331 | 26.780 | |
| Trade Receivables | 12.655.857 | 16.013.961 | |
| Trade Receivables Due from Related Parties | 6 | 11.941.934 | 15.437.635 |
| Trade Receivables Due from Third Parties | 7 | 713.923 | 576.326 |
| Other Receivables | 7.363.757 | 5.310.066 | |
| Other Receivables Due from Related Parties | 6 | 6.251.249 | 4.194.032 |
| Other Receivables Due from Third Parties | 8 | 1.112.508 | 1.116.034 |
| Derivative Financial Instruments | 25 | 161.780 | 378.029 |
| Inventories | 9 | 11.720.744 | 10.846.205 |
| Prepaid Expenses | 1.294.697 | 679.271 | |
| Prepayments to Related Parties | 6 | 640.621 | 395.291 |
| Prepayments to Third Parties | 10 | 654.076 | 283.980 |
| Current Tax Assets | 23 | 11.290 | 11.241 |
| Other Current Assets | 41.306 | 106.311 | |
| Other Current Assets Due from Third Parties | 17 | 41.306 | 106.311 |
| TOTAL CURRENT ASSETS | 33.861.183 | 34.573.902 | |
| NON-CURRENT ASSETS | |||
| Other Receivables | 11.767 | 14.089 | |
| Other Receivables Due from Third Parties | 11.767 | 14.089 | |
| Property, Plant and Equipment | 11 | 39.938.451 | 39.797.957 |
| Right of Use Assets | 12 | 1.027.140 | 793.165 |
| Intangible Assets | 13 | 2.790.053 | 2.658.589 |
| Prepaid Expenses | 880.952 | 936.003 | |
| Prepaid Expenses to Related Parties | 6 | 472.665 | 506.118 |
| Prepayments to Third Parties | 10 | 408.287 | 429.885 |
| TOTAL NON-CURRENT ASSETS | 44.648.363 | 44.199.803 | |
| TOTAL ASSETS | 78.509.546 | 78.773.705 |
The accompanying notes are an integral part of these financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 31 March 2025 | 31 December 2024 | |
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Short Term Borrowings | 12.535.323 | 10.843.765 | |
| Short Term Borrowings from Related Parties | 6.477 | 4.675 | |
| Lease Liabilities | 5,6 | 6.477 | 4.675 |
| Short Term Borrowings from Third Parties | 12.528.846 | 10.839.090 | |
| Bank Loans | 5 | 10.592.314 | 8.200.590 |
| Lease Liabilities | 5 | 181.979 | 4.727 |
| Issued Debt Instruments | 5 | 1.754.553 | 2.633.773 |
| Current Portion of Long Term Borrowings | 1.372.952 | 456.195 | |
| Current Portion of Long Term Borrowings from Third Parties | 1.372.952 | 456.195 | |
| Bank Loans | 5 | 436.743 | 456.195 |
| Issued Debt Instruments | 5 | 936.209 | - |
| Other Financial Liabilities | 69.993 | 70.977 | |
| Trade Payables | 20.787.644 | 23.060.766 | |
| Trade Payables to Related Parties | 6 | 1.407.268 | 1.969.771 |
| Trade Payables to Third Parties | 7 | 19.380.376 | 21.090.995 |
| Payables Related to Employee Benefits | 16 | 550.477 | 433.717 |
| Other Payables | - | 103.648 | |
| Other Payables to Related Parties | 6 | - | 103.648 |
| Derivative Financial Liabilities | 25 | 209.958 | 33.224 |
| Deferred Revenue | 316.219 | 88.706 | |
| Deferred Revenues from Related Parties | 6 | 223.160 | 86.630 |
| Deferred Revenue from Third Parties | 8 | 93.059 | 2.076 |
| Current Provisions | 35.940 | 29.680 | |
| Other Current Provisions | 14 | 35.940 | 29.680 |
| Other Current Liabilities | 216.455 | 209.905 | |
| Other Current Liabilities to Third Parties | 17 | 216.455 | 209.905 |
| TOTAL CURRENT LIABILITIES | 36.094.961 | 35.330.583 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 31 March 2025 | 31 December 2024 | |
| NON-CURRENT LIABILITIES | |||
| Long Term Borrowings | 1.442.260 | 1.348.971 | |
| Long Term Borrowings from Related Parties | 200.663 | 150.563 | |
| Lease Liabilities | 5,6 | 200.663 | 150.563 |
| Long Term Borrowings from Third Parties | 1.241.597 | 1.198.408 | |
| Bank Loans | 5 | 1.045.226 | 1.191.768 |
| Lease Liabilities | 5 | 196.371 | 6.640 |
| Other Financial Liabilities | 200.791 | 225.599 | |
| Trade Payables | 138.977 | 135.318 | |
| Trade Payables to Third Parties | 7 | 138.977 | 135.318 |
| Non-current Provisions | 985.263 | 1.019.163 | |
| Non-current Provisions for Employee Benefits | 16 | 985.263 | 1.019.163 |
| Deferred Tax Liabilities | 23 | 3.633.481 | 3.452.404 |
| Other Non-current Liabilities | 3.400 | 11.324 | |
| Other Non-current Liabilities to Third Parties | 3.400 | 11.324 | |
| TOTAL NON-CURRENT LIABILITIES | 6.404.172 | 6.192.779 | |
| TOTAL LIABILITIES | 42.499.133 | 41.523.362 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Audited | ||
|---|---|---|---|
| Notes | 31 March 2025 | 31 December 2024 | |
| EQUITY | |||
| Equity Attributable to Owners of Parent | 36.010.413 | 37.250.343 | |
| Issued Capital | 18 | 1.600.000 | 1.600.000 |
| Adjustments on Capital | 18 | 10.844.163 | 10.844.163 |
| Other Accumulated Comprehensive Income (Loss) that will not be | |||
| Reclassified to Profit or Loss | 9.104.449 | 9.114.492 | |
| Gains (Losses) on Revaluation and Remeasurement | 9.104.449 | 9.114.492 | |
| Increases on Revaluation of Property, Plant and Equipment | 10.176.574 | 10.178.093 | |
| Losses on Remeasurement of Defined Benefit Plans | (1.072.125) | (1.063.601) | |
| Other Accumulated Comprehensive Income (Loss) that will be Reclassified to | |||
| Profit or (Loss) | (45.242) | 172.155 | |
| Profit or (Losses) on Hedge | (45.242) | 172.155 | |
| Profit or (Losses) on Cash Flow Hedges | (45.242) | 172.155 | |
| Restricted Reserves | 2.253.772 | 2.253.772 | |
| Legal Reserves | 18 | 2.253.772 | 2.253.772 |
| Prior Years' Profits | 13.267.280 | 12.973.183 | |
| Current Period Net Profit or Loss | (1.014.009) | 292.578 | |
| TOTAL EQUITY | 36.010.413 | 37.250.343 | |
| TOTAL LIABILITIES AND EQUITY | 78.509.546 | 78.773.705 |
Financial statements for the period 1 January – 31 March 2025 were approved by the Board of Directors of Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. on 30 April 2025. General Assembly and specified regulatory bodies have the right to make amendments to statutory financial statements after issue.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Unaudited | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| 31 March | 31 March | ||
| Notes | 2025 | 2024 | |
| PROFIT OR LOSS | |||
| Revenue | 19 | 15.891.253 | 19.297.992 |
| Cost of Sales | 19 | (14.643.253) | (16.346.458) |
| GROSS PROFIT | 1.248.000 | 2.951.534 | |
| General Administrative Expenses | (345.094) | (229.828) | |
| Marketing Expenses | (772.110) | (879.538) | |
| Research and Development Expense | (240.965) | (259.434) | |
| Other Income from Operating Activities | 20 | 1.082.107 | 976.478 |
| Other Expenses from Operating Activities | 20 | (1.653.969) | (1.910.684) |
| PROFIT/(LOSS) FROM OPERATING ACTIVITIES | (682.031) | 648.528 | |
| PROFIT/(LOSS) BEFORE FINANCING INCOME | (682.031) | 648.528 | |
| Finance Income | 21 | 988.908 | 589.982 |
| Finance Expense | 21 | (2.210.730) | (1.764.029) |
| Monetary Gain | 22 | 1.146.229 | 1.326.235 |
| PROFIT/(LOSS) FROM CONTINUING OPERATIONS, BEFORE TAX | (757.624) | 800.716 | |
| Tax (Expense) Income, Continuing Operations | (256.385) | 50.851 | |
| Current Tax Expense | 23 | - | (2.926) |
| Deferred Tax Income/(Loss) | 23 | (256.385) | 53.777 |
| PROFIT//LOSS) FOR THE PERIOD | (1.014.009) | 851.567 | |
| Earnings per 100 share with a Kr 1 of Par Value (TL) | 24 | (0,63) | 0,53 |
The accompanying notes are an integral part of these financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Unaudited | |
|---|---|---|
| 1 January - | 1 January - | |
| 31 March | 31 March | |
| 2025 | 2024 | |
| PROFIT/(LOSS) FOR THE PERIOD OTHER COMPREHENSIVE INCOME | (1.014.009) | 851.567 |
| Other Comprehensive Income that will | ||
| not be Reclassified to Profit or Loss | (8.524) | (6.433) |
| Gains (Losses) on Remeasurements of Defined Benefit Plans | (11.366) | (8.578) |
| Taxes Relating to Components of Other Comprehensive Income | 2.842 | 2.145 |
| Taxes Relating to Remeasurements of Defined Benefit Plans | 2.842 | 2.145 |
| Other Comprehensive Income that will | ||
| be Reclassified to Profit or Loss | (217.397) | 272.815 |
| Other Comprehensive Income (Loss) Related with Cash Flow Hedges | (289.863) | 363.754 |
| Taxes Relating to Components of Other Comprehensive Income | 72.466 | (90.939) |
| Taxes Relating to Cash Flow Hedges | 72.466 | (90.939) |
| OTHER COMPREHENSIVE INCOME/(LOSS) | (225.921) | 266.382 |
| TOTAL COMPREHENSIVE INCOME/(LOSS) | (1.239.930) | 1.117.949 |
The accompanying notes are an integral part of these financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Other Increases Accumulated Other (Decreases) on Comprehensive Accumulated Revaluation of Gains (Losses) on Income That Will Reserve Of Comprehensive Restricted Equity Property, Remeasurement of Inflation Gains (Losses) Not Be Gains or Income That Will Reserves Prior Years' attributable to Plant and Defined Benefit Cash Flow Issued Adjustments Revaluations and Reclassified To Losses on Be Reclassified Appropriated Profits or Net Profit or Retained owners of Equipment Plans Hedges Capital on Capital Remeasurements Profit Or Loss Hedge To Profit Or Loss From Profits Losses Loss Earnings parent Previous Period 1 January -31 March 2024 Beginning of Period 1.600.000 10.844.163 6.421.939 (920.945) 5.500.994 5.500.994 (296.175) (296.175) (296.175) 1.904.214 7.247.033 7.507.498 14.754.531 34.307.727 34.307.727 - - (18.042) - (18.042) (18.042) - - - - 7.525.540 (7.507.498) 18.042 - Transfers Total Comprehensive Income (Loss) - - - (6.433) (6.433) (6.433) 272.815 272.815 272.815 - - 851.567 851.567 1.117.949 Profit for the period (Loss) - - - - - - - - - - - 851.567 851.567 851.567 - - - (6.433) (6.433) (6.433) 272.815 272.815 272.815 - - - - 266.382 Other Comprehensive Income (Loss) 1.600.000 10.844.163 6.403.897 (927.378) 5.476.519 5.476.519 (23.360) (23.360) (23.360) 1.904.214 14.772.573 851.567 15.624.140 35.425.676 35.425.676 End of Period Current Period 1 January -31 March 2025 1.600.000 10.844.163 10.178.093 (1.063.601) 9.114.492 9.114.492 172.155 172.155 172.155 2.253.772 12.973.183 292.578 13.265.761 37.250.343 37.250.343 Beginning of Period - - (1.519) - (1.519) (1.519) - - - - 294.097 (292.578) 1.519 - Transfers - - - (8.524) (8.524) (8.524) (217.397) (217.397) (217.397) - - (1.014.009) (1.014.009) (1.239.930) Total Comprehensive Income (Loss) (1.014.009) (1.014.009) |
||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity | ||||||||||||
| - | ||||||||||||
| 1.117.949 | ||||||||||||
| 851.567 | ||||||||||||
| 266.382 | ||||||||||||
| - | ||||||||||||
| (1.239.930) | ||||||||||||
| - - Profit for the period (Loss) |
- | - - |
- | - | - | - | - | - | (1.014.009) | (1.014.009) | ||
| Other Comprehensive Income (Loss) - - - (8.524) (8.524) (8.524) (217.397) (217.397) (217.397) - - - - (225.921) |
(225.921) | |||||||||||
| 1.600.000 10.844.163 10.176.574 (1.072.125) 9.104.449 9.104.449 (45.242) (45.242) (45.242) 2.253.772 13.267.280 (1.014.009) 12.253.271 36.010.413 End of Period |
36.010.413 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Unaudited | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| 31 March | 31 March | ||
| Notes | 2025 | 2024 | |
| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 519.207 | 1.702.964 | |
| Profit (Loss) for the Period | (1.014.009) | 851.567 | |
| Profit (Loss) from Continuing Operations | (1.014.009) | 851.567 | |
| Adjustments to Reconcile Profit | 1.039.037 | (45.151) | |
| Adjustments for Depreciation and Amortisation Expense | 11,12,13 | 810.805 | 951.214 |
| Adjustments for Impairment Loss (Reversal of Impairment Loss) | 50.186 | 1.696 | |
| Adjustments for Impairement Loss | |||
| (Reversal of Impairment Loss) of Receivables | (4.792) | (290) | |
| Adjustments for Impairment Loss | |||
| (Reversal of Impairment Loss) of Inventories | 9 | 54.978 | 1.986 |
| Adjustments for Provisions | 107.805 | 40.738 | |
| Adjustments for (Reversal of) Provisions Related with | |||
| Employee Benefits | 101.545 | 39.183 | |
| Adjustments for (Reversal of) Lawsuit and/or | |||
| Penalty Provisions | 14 | 6.260 | (1.399) |
| Adjustments for (Reversal of) Other Provisions | - | 2.954 | |
| Adjustments for Interest (Income) Expenses | 1.217.185 | 937.278 | |
| Adjustments for Interest Income | 21 | (328.968) | (87.385) |
| Adjustments for Interest Expense | 21 | 1.546.153 | 1.024.663 |
| Adjustments for Unrealised Foreign | |||
| Exchange Losses (Gains) | (174.516) | (195.715) | |
| Adjustments for Fair Value Losses (Gains) | 103.120 | (125.227) | |
| Adjustments for Fair Value (Gains) Losses on | |||
| Derivative Financial Instruments | 103.120 | (125.227) | |
| Adjustments for Tax (Income) Expenses | 23 | 256.385 | (50.850) |
| Adjustments for Losses (Gains) on Disposal of | |||
| Non-Current Assets | (1.768) | (152) | |
| Adjustments for Losses (Gains) Arised from | |||
| Sale of Tangible Assets | (1.768) | (152) | |
| Other Adjustments to Reconcile Profit (Loss) | 4 | 2 | 4 |
| Monetary Loss/Gain | (1.330.167) | (1.604.137) |
The accompanying notes are an integral part of these financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Unaudited | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| 31 March | 31 March | ||
| Notes | 2025 | 2024 | |
| Changes in Working Capital | 546.701 | 934.496 | |
| Adjustments for Decrease (Increase) in Trade Accounts Receivable | 1.944.546 | (63.217) | |
| Decrease (Increase) in Trade Accounts Receivables from Related Parties | 6 | 2.134.641 | 42.513 |
| Decrease (Increase) in Trade Accounts Receivables from Third Parties | 7 | (190.095) | (105.730) |
| Adjustments for Decrease (Increase) in Other Receivables Related with Operations | (99.832) | 15.365 | |
| Decrease (Increase) in Other Third Party Receivables Related with Operations | 8 | (99.832) | 15.365 |
| Adjustments for Decrease (Increase) in Inventories | 9 | (929.517) | (1.776.975) |
| Decrease (Increase) in Prepaid Expenses | 10 | (693.902) | (491.323) |
| Adjustments for Increase (Decrease) in Trade Accounts Payable | (150.941) | 3.074.248 | |
| Increase (Decrease) in Trade Accounts Payables to Related Parties | 6 | (391.654) | 874.688 |
| Increase (Decrease) in Trade Accounts Payables to Third Parties | 240.713 | 2.199.560 | |
| Increase (Decrease) in Employee Benefit Liabilities | 16 | 160.194 | 179.537 |
| Increase (Decrease) in Deferred Revenues | 241.317 | (116.698) | |
| Other Adjustments for Other Increase (Decrease) in Working Capital | 74.836 | 113.559 | |
| Decrease (Increase) in Other Assets Related with Operations | 17 | 55.522 | 103.796 |
| Increase (Decrease) in Other Payables Related with Operations | 17 | 19.314 | 9.763 |
| Cash Flows from (used in) Operations | 571.729 | 1.740.912 | |
| Payments Related with Provisions for Employee Benefits | 16 | (52.473) | (67.125) |
| Income Taxes Refund (Paid) | 23 | (49) | 29.177 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Unaudited | Unaudited | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| 31 March | 31 March | ||
| Notes | 2025 | 2024 | |
| CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | (3.008.005) | (2.397.407) | |
| Proceeds from Sales of Property, Plant, Equipment and Intangible Assets | 2.295 | 9.862 | |
| Proceeds from Sales of Property, Plant and Equipment | 2.295 | 9.862 | |
| Purchase of Property, Plant, Equipment and Intangible Assets | (1.046.847) | (1.249.149) | |
| Purchase of Property, Plant and Equipment | 11 | (823.527) | (948.324) |
| Purchase of Intangible Assets | 13 | (223.320) | (300.825) |
| Cash Advances and Loans Made to Other Parties | (1.965.902) | (1.157.007) | |
| Cash Advances and Loans Made to Related Parties | (1.947.769) | (963.171) | |
| Cash Advances and Loans Made to Third Parties | (18.133) | (193.836) | |
| Other Cash Inflows (Outflows) | 2.449 | (1.113) | |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | 1.984.082 | (175.378) | |
| Proceeds from Borrowings | 5 | 7.661.657 | 3.188.286 |
| Proceeds from Loans | 6.426.657 | 2.257.702 | |
| Proceeds from Other Financial Borrowings | 1.235.000 | 930.584 | |
| Repayments of Borrowings | 5 | (4.450.098) | (2.203.207) |
| Loan Repayments | (3.450.098) | (1.644.857) | |
| Issued bonds repayments | (1.000.000) | (558.350) | |
| Increase in Other Payables to Related Parties | (103.648) | (294.888) | |
| Payments of Lease Liabilities | (56.755) | 76.032 | |
| Interest Paid | (1.077.368) | (952.910) | |
| Interest Received | 10.294 | 11.309 | |
| INFLATION EFFECT ON CASH AND CASH EQUIVALENTS | (119.380) | (155.356) | |
| NET INCREASE (DECREASE) IN CASH AND CASH | |||
| EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES | (624.096) | (1.025.177) | |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 9.481 | 3.586 | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (614.615) | (1.021.591) | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 4 | 1.202.014 | 1.159.257 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 587.399 | 137.666 |
The accompanying notes are an integral part of these financial statements.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. (the "Company" or "Vestel Beyaz Eşya") was incorporated in 1997 under the Turkish Commercial Code and its head office is located at Levent 199, Büyükdere Caddesi No: 199, 34394 Şişli / İstanbul.
The Company started its operations in 1999 and produces refrigerators, room air conditioning units, washing machines, drying machines, cookers, dishwashers and water heaters. The Company's production facilities occupy 641 square meters of enclosed area located in Manisa Organized Industrial Zone on total area of 763 square meters.
The Company is a member of Vestel Group of Companies which are under the control of Zorlu Family. The Company performs its export sales and domestic sales via Vestel Ticaret A.Ş. which is also a member of Vestel Group of Companies.
The Company is registered to Capital Market Board and its shares have been quoted to Borsa Istanbul ("BİST") since 21 April 2006.
As of 31 March 2025, the number of personnel employed was 9.478 (31 December 2024: 9.628).
As of balance sheet dates, the shareholders of the Company and their percentage shareholdings were as follows:
| Shareholding % | |
|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. | 77,33 |
| Other shareholders | 22,67 |
As of 31 March 2025 Company have been quoted at the Borsa Istanbul 31,47% of its share capital (31 December 2024: 31,47%).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The accompanying financial statements are prepared in accordance with the Communiqué Serial II, No: 14.1, "Principals of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. According to the article 5 of the Communiqué, financial statements are prepared in accordance with Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS" / "TFRS") and its addendum and interpretations ("IFRIC") issued by the Public Oversight Accounting and Auditing Standards Authority ("POAASA") Turkish Accounting Standards Board.
Financial statements are presented in accordance with the formats determined in the "Announcement on TFRS Taxonomy" published by the POA on 3 July 2024 and in the Financial Statement Samples and User Guide published by the CMB.
The Company bases its accounting records and preparation of its legal financial statements on the Turkish Commercial Code ("TCC"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance of the Republic of Türkiye. The financial statements have been prepared in Turkish Lira on the basis of historical cost, except for land, buildings and land improvements from the tangible assets group shown at their fair value, and financial assets and liabilities shown at their fair value.
Financial statements have been prepared by reflecting the necessary corrections and classifications in order to ensure accurate presentation in accordance with TFRS, on the legal records prepared on the historical cost basis except for derivative instruments shown at their fair value and revaluations arising from fixed assets.
The Company has prepared its financial statements for the year dated 31 December 2023 and ending on the same date, by applying TAS 29 "Financial Reporting in High Inflation Economies" Standard, based on the announcement made by the POA on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published. In accordance with the said standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date, and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for the purpose of comparison in the financial statements of the previous period.For this reason, the company has presented its financial statements as of 31 December 2024 and 31 March 2024 on the basis of purchasing power as of 31 March 2025.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial
Reporting Standards shall comply with the provisions of TAS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2023. It was decided to apply inflation accounting by applying.
Rearrangements made in accordance with TAS 29 were made using the correction coefficient obtained from the Consumer Price Index in Türkiye ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"). As of 31 March 2025, the indices and correction coefficients used in the correction of financial statements are as follows:
| Three-Year | |||
|---|---|---|---|
| Correction | Compound | ||
| Date | Index | Coeffection | Inflation Rate |
| 31 March 2025 | 2.954,69 | 1 | %250 |
| 31 December 2024 | 2.684,55 | 1,1006 | %291 |
| 31 March 2024 | 2.139,47 | 1,3810 | %309 |
The main elements of the Company's adjustment for financial reporting purposes in high-inflation economies are as follows:
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Financial statements of the Company have been prepared comparatively with the preceding financial period, in order to enable determination of trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to changes in presentation in the financial statements.
Comparative figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the currency in effect at the end of the reporting period. Information disclosed for previous periods is also expressed in the currency valid at the end of the reporting period.
Except for the changes mentioned in the paragraph below, consistent accounting policies have been applied in the financial statements for the periods presented and there are no significant changes in accounting policies and estimates in the current period.
In accordance with the "Implementation Guidance on Financial Reporting in Hyperinflationary Economies" published by POA, monetary position gains and losses on cash and cash equivalents are presented in the statement of cash flows, and in accordance with the 3rd approach in the implementation guidance, the effect of inflation on cash flows from operating, investing and financing activities is attributed to the relevant class of activity and the inflation effect on cash and cash equivalents is presented separately. In the 31 March 2024 Statement of Cash Flows, TL 661.710 has been reclassified between "Changes in Working Capital" and "Adjustments Related to Reconciliation of Net Profit for the Period" and the related reclassifications have been brought to 2025 purchasing power. There has been no change in "Cash Flows from Operating Activities".
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Major changes in accounting policies are applied retrospectively and any major accounting errors that have been detected are corrected and the financial statements of the previous period are restated. Changes in accounting policies resulting from the initial implementation of a new standard, if any, are implemented retrospectively or prospectively in accordance with the transition provisions. If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.
The accounting policies used in the preparation of financial statements for the accounting period ending 31 March 2025 are consistent with those used in the previous year, except for the new and amended Turkish Accounting Standards ("TAS")/TFRS and TAS/TFRS interpretations valid as of 1 January 2025, summarized below, has been implemented. The effects of these standards and interpretations on the financial position and performance of the Company are explained in the relevant paragraphs.
Amendment 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.
Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:
• clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
• make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).
Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025 (Cont'd):
IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
• the structure of the statement of profit or loss;
• required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, management-defined performance measures); and
• enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:
• it does not have public accountability; and
• it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.
Summary financial statements for the interim period ending on 31 March 2025 have been prepared in accordance with the TAS 34 standard for the preparation of interim financial statements.
The significant accounting policies used in preparing the summary financial statements are consistent with the accounting policies explained in detail in the financial statements dated 31 December 2024. Therefore, interim financial statements should be evaluated together with the financial statements for the year ending 31 December 2024.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The frequency of revaluations is determined to ensure that the carrying amounts of the revalued items of property, plant and equipment are not materially different from their fair values at the end of the reporting period.
The frequency of revaluations depends on the change in the fair value of the items of property, plant and equipment. Where the fair value of a revalued asset is considered to be materially different from its carrying amount, the revaluation is required to be repeated and this is done for the entire asset class in which the revalued asset is included as of the same date.
On the other hand, it is not considered necessary to repeat the revaluation of property, plant and equipment 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 2024 will converge to their respective fair values as of 31 March 2025 after deducting current period depreciation and the CPI change in the related interim period.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Operating segments are identified on the same basis as financial information is reported internally to the Company's chief operating decision maker. The Company's Board of Directors has been identified as the Company's chief operating decision maker who is responsible for allocating resources between segments and assessing their performance. The Company management determines operating segments by reference to the reports reviewed by the Board of Directors to make strategic decisions.
The Management believes that the Company operates in a single industry sector as the risks and returns for the activities do not show any material difference because the scope of activity covers only the production of white goods and the production processes and classes of customers are similar. As a result, all information related to the industrial segment has been fully presented in the attached financial statements.
The Management has decided to use geographical segments for segment reporting considering the fact that risks and returns are affected by the differences in geographical regions.
| 1 January - | 1 January - | ||
|---|---|---|---|
| 31 March | 31 March | ||
| Segment revenue | 2025 | 2024 | |
| Türkiye | 4.756.427 | 7.394.220 | |
| Europe | 7.162.544 | 8.062.712 | |
| Other | 4.028.931 | 3.939.084 | |
| Gross segment sales | 15.947.902 | 19.396.016 | |
| Discounts (-) | (56.649) | (98.024) | |
| Net sales | 15.891.253 | 19.297.992 |
The amount of export is TL 11.191.475 for the period ended 31 March 2025 (1 January-31 March 2024: TL 12.001.796). 82% of the export amount was realized in EUR, 13% in USD and 5% in other foreign currencies. Segment assets are not shown separately because a significant portion of the segment assets and the significant portion of the costs incurred to acquire the segment assets are incurred in Türkiye. (As of 31 March 2024, 88% of the export amount was realized in EUR, 9% in USD and 3% in other foreign currencies.)
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Cash | 2.411 | 2.480 |
| Bank deposits | ||
| - Demand deposits | 328.730 | 926.242 |
| - Time deposits | 256.258 | 273.292 |
| 587.399 | 1.202.014 | |
| Blocked deposits | 22 | 24 |
| Cash and cash equivalents | 587.421 | 1.202.038 |
The effective interest rates for time deposits are as below:
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| TL | 45,00% | 45,00% |
As of 31 March 2025 and 31 December 2024, the average maturity of the Group's time deposits is less than 3 months.
Based on the independent data with respect to the credit risk assessment of the banks, at which the Company has deposits, the credit quality of the banks is sufficient. The market values of cash and cash equivalents approximate carrying values, including accrued income at the respective balance sheet date.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Short term financial liabilities | ||
| Short term bank loans | 10.592.314 | 8.200.590 |
| Short term portion of long term bank loans | 436.743 | 456.195 |
| Short term lease liabilities | 188.456 | 9.402 |
| Short term issued bonds | 1.754.553 | 2.633.773 |
| Short term portion of long term issued bonds | 936.209 | - |
| 13.908.275 | 11.299.960 | |
| Long term financial liabilities | ||
| Long term bank loans | 1.045.226 | 1.191.768 |
| Long term lease liabilities | 397.034 | 157.203 |
| 1.442.260 | 1.348.971 |
* The maturity date of the bond with the ISIN code TRFVEST82517, amounting to TL 350.000, with a maturity of 170 days, a single coupon payment, issued to qualified investors on 12 February 2025 is 1 August 2025 and the annual simple interest rate of the coupon has been determined as 43,5%.
* The maturity date of the bond with the ISIN code TRSVEST32614, amounting to TL 885.000, with a maturity of 399 days, every 3 months coupon payment, issued to qualified investors on 12 February 2025 is 18 March 2026 and the annual simple interest rate of the coupon has been determined as 44%.
* The maturity date of the bond with the ISIN code TRFVEST42511, amounting to TL 395.000, with a maturity of 175 days, a single coupon payment, issued to qualified investors on 1 November 2024 is 25 April 2025 and the annual simple interest rate of the coupon has been determined as 51%.
* The maturity date of the bond with the ISIN code TRFVEST62519, amounting to TL 800.000, with a maturity of 181 days, a single coupon payment, issued to qualified investors on 27 December 2024 is 26 June 2025 and the annual simple interest rate of the coupon has been determined as 51%.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Details of the Company's short term bank loans are given below:
| 31 March 2025 | 31 December 2024 | |||||
|---|---|---|---|---|---|---|
| Weighted average of |
Weighted average of |
|||||
| effective | Original | effective | Original | |||
| Currency | interest rates | currency | TL Equivalent | interest rates | currency | TL Equivalent |
| - USD | 8,74% | 19.277 | 729.320 | 8,59% | 22.239 | 865.105 |
| - EUR | 8,60% | 16.577 | 675.932 | 8,47% | 16.303 | 660.366 |
| - TL | 35,87% | 9.187.062 | 9.187.062 | 34,28% | 6.675.119 | 6.675.119 |
| 10.592.314 | 8.200.590 |
Details of the Company's long term bank loans are given below:
| 31 March 2025 | 31 December 2024 | |||||
|---|---|---|---|---|---|---|
| Weighted average of |
Weighted average of |
|||||
| effective | Original | effective | Original | |||
| Currency | interest rates | currency | TL Equivalent | interest rates | currency | TL Equivalent |
| - TL | 20,65% | 436.743 | 436.743 | 20,65% | 456.195 | 456.195 |
| Short term portion | 436.743 | 456.195 | ||||
| - TL | 20,65% | 1.045.226 | 1.045.226 | 20,65% | 1.191.768 | 1.191.768 |
| Long term portion | 1.045.226 | 1.191.768 | ||||
| 1.481.969 | 1.647.963 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The redemption schedule of the Company's long term bank loans is given below:
| Uzun vadeli finansal borçların ödeme planı | 31 March 2025 | 31 December 2024 |
|---|---|---|
| One to two years | 313.768 | 353.469 |
| Two to three years | 227.988 | 256.698 |
| Three to four years | 166.937 | 188.250 |
| Over five years | 336.533 | 393.351 |
| 1.045.226 | 1.191.768 |
Fair value of short term bank borrowings are considered to approximate their carrying values due to immateriality of discounting. Fair values are determined using average effective annual interest rates.
Guarantees given for the bank loans obtained are disclosed in note 14.
As of 31 March 2025 and 2024, reconciliation of net financial debt is as below:
| 31 March 2025 | 31 March 2024 | |
|---|---|---|
| Net financial debt as of 1 January | 11.446.916 | 6.133.221 |
| Cash inflows from loans and issued bonds | 7.661.657 | 3.188.286 |
| Cash outflows from loan and bonds payments | (4.450.098) | (2.203.206) |
| Payments of lease liabilities | (56.755) | 76.032 |
| Unrealized exchange | 112.992 | 141.777 |
| Accrued interest | 367.314 | 93.034 |
| Change in cash and cash equivalents | 614.615 | 1.021.591 |
| Monetary gain / (loss) | (933.505) | (996.259) |
| Net financial debt at the end of the period | 14.763.136 | 7.454.476 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Vestel Ticaret A.Ş. (1) | 11.941.700 | 15.437.382 |
| Other related parties | 234 | 253 |
| 11.941.934 | 15.437.635 |
The receivables result from the Company's foreign and domestic sales performed via Vestel Ticaret A.Ş which is also a member of Vestel Group Companies.
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 466.561 | 1.478.550 |
| Vestel Ticaret A.Ş. (1) | 344.665 | 465.049 |
| Vestel Holland B.V. (1) | 464.532 | 3.984 |
| Other related parties | 153.291 | 35.255 |
| 1.429.049 | 1.982.838 | |
| Deferred finance income (-) | (21.781) | (13.067) |
| 1.407.268 | 1.969.771 |
The short term payables to related parties consist of goods and service purchases.
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 6.251.249 | 4.194.032 |
| 6.251.249 | 4.194.032 |
As of 31 March 2025, the Company's interest rate of other short-term receivables in TL %47,5 USD 9% and in EUR 7,5% ( As of 31 December 2024 the Company's interest rate of other short-term receivables in USD 9% and in EUR 7,5% ).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | - | 103.648 |
| - | 103.648 |
As of 31 December 2024, Company's interest rate of short-term other payables denominated in TL is 50%
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 207.140 | 155.238 |
| 207.140 | 155.238 |
As of 31 March 2025, the Company's short term lease liabilities to Vestel Elektronik Sanayi ve Ticaret A.Ş. are amounted to TL 6.477 and long-term lease liabilities are amounted to TL 200.663 (31 December 2024: short term TL 4.675 and long term TL 150.563)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Vestel Ticaret A.Ş. (1) | 223.160 | 86.630 |
| 223.160 | 86.630 |
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Zorlu Yenilenebilir Enerji A.Ş. (3) | 209.240 | 307.783 |
| Vestel Holland B.V. (1) | 425.913 | 83.220 |
| Other related parties | 5.468 | 4.288 |
| 640.621 | 395.291 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Zorlu Yenilenebilir Enerji A.Ş. (3) | 471.268 | 465.213 |
| Other related parties | 1.397 | 40.905 |
| 472.665 | 506.118 |
Rotor Elektrik Üretim A.Ş. was transferred to Zorlu Yenilenebilir Enerji A.Ş. with all its assets and liabilities on 24.02.2025. All short and long-term prepaid expenses from Rotor Elektrik Üretim A.Ş. were transferred to Zorlu Yenilenebilir Enerji A.Ş.
| 1 January - | 1 January - 31 March 2024 |
||
|---|---|---|---|
| 31 March | |||
| 2025 | |||
| Sales | |||
| Vestel Ticaret A.Ş. (1) | 14.900.922 | 18.915.447 | |
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 132.601 | 145.610 | |
| Other related parties | - | 33.851 | |
| 15.033.523 | 19.094.908 | ||
| Operating expenses | |||
| Vestel Holland B.V. (1) | 1.065.260 | 1.163.587 | |
| Vestel Ticaret A.Ş. (1) | 348.128 | 491.541 | |
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 647.903 | 1.098.670 | |
| Other related parties | 173.631 | 207.531 | |
| 2.234.922 | 2.961.329 |
The Company's transactions to related parties consist of goods and service purchases.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January - | 1 January - 31 March 2024 |
||
|---|---|---|---|
| 31 March | |||
| 2025 | |||
| Other income from operating activities | |||
| Vestel Ticaret A.Ş. (1) | 903.355 | 689.254 | |
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | - | 1.178 | |
| Other related parties | 98.158 | 181.734 | |
| 1.001.513 | 872.166 | ||
| Other expense from operating activities | |||
| Vestel Ticaret A.Ş. (1) | 53.248 | 93.391 | |
| Vestel Holland B.V. (1) | 20.586 | 67.442 | |
| Other related parties | 28.833 | 54.780 | |
| 102.667 | 215.613 | ||
| Financial income | |||
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 564.799 | 471.504 | |
| Other related parties | 311 | - | |
| 565.110 | 471.504 | ||
| Financial expense | |||
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | - | 560.776 | |
| - | 560.776 |
Compensation paid to key management for the three months period ended 31 March 2025 is TL 22.108 (1 January -31 March 2024: TL 16.829).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Short term trade receivables | ||
| Trade receivables | ||
| - Related parties (note 6) | 11.941.934 | 15.437.635 |
| - Other parties | 763.689 | 630.884 |
| 12.705.623 | 16.068.519 | |
| Allowance for doubtful receivables (-) | (49.766) | (54.558) |
| Total short term trade receivables | 12.655.857 | 16.013.961 |
The Company has made a provision considering its past experience in collecting its trade receivables.
The Company has made a provision considering its past experience in collecting its trade receivables. Hence, the Company management made a provision assessment according to the expected credit losses model within the scope of TFRS 9 and as of 31 March 2025, no additional doubtful trade receivables risk was detected.
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Short term trade payables | ||
| Trade payables | ||
| - Related parties (Note 6) | 1.429.049 | 1.982.838 |
| - Other parties | 19.553.882 | 21.271.440 |
| 20.982.931 | 23.254.278 | |
| Unearned interest income (-) | ||
| - Related parties (Note 6) | (21.781) | (13.067) |
| - Other parties | (173.506) | (180.445) |
| Total short term trade payables | 20.787.644 | 23.060.766 |
| Long term trade payables | ||
| - Other parties | 138.977 | 135.318 |
| Total long term trade payables | 138.977 | 135.318 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Other short-term receivables from third parties | ||
| Receivables from public institutions | 1.069.821 | 1.076.293 |
| Deposits and guarantees given | 12.749 | 21.454 |
| Other | 29.938 | 18.287 |
| Total short term other receivables | 1.112.508 | 1.116.034 |
| 31 March 2025 | 31 December 2024 | |
| Long term other receivables | ||
| Deposits and guarantees given | 11.767 | 14.089 |
| 11.767 | 14.089 | |
| 31 March 2025 | 31 December 2024 | |
| Short term other payables | ||
| Related parties (Note 6) | - | 103.648 |
| - | 103.648 | |
| 31 March 2025 | 31 December 2024 | |
| Deferred revenue | ||
| Related parties (Note 6) | 223.160 | 86.630 |
| Other parties | 93.059 | 2.076 |
| 316.219 | 88.706 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Raw materials | 6.771.975 | 7.020.148 |
| Work in process | 229.652 | 186.605 |
| Finished goods | 4.812.509 | 3.677.587 |
| Merchandise | - | 279 |
| 11.814.136 | 10.884.619 | |
| Provision for impairment on inventories (-) | (93.392) | (38.414) |
| 11.720.744 | 10.846.205 |
As of 31 March 2025, the Company does not have inventories pledged as security for liabilities (31 December 2024: None).
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Short-term prepaid expenses to third parties | ||
| Order advances given | 281.662 | 73.940 |
| Prepaid expenses | 372.414 | 210.040 |
| 654.076 | 283.980 | |
| 31 March 2025 | 31 December 2024 | |
| Long-term prepaid expenses to third parties | ||
| Advences given for purchase of fixed assets | 402.217 | 424.415 |
| Prepaid expenses | 6.070 | 5.470 |
| 408.287 | 429.885 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January | 31 March | ||||
|---|---|---|---|---|---|
| 2025 | Additions | Disposals | Transfer | 2025 | |
| Cost or revaluation | |||||
| Land | 16.317.428 | - | - | - | 16.317.428 |
| Land improvements | 305.923 | - | - | - | 305.923 |
| Buildings | 12.078.014 | 4.987 | - | 177 | 12.083.178 |
| Leasehold improvements | 5.229 | - | - | - | 5.229 |
| Plants, machinery and equipment | 34.805.656 | 544.156 | (34.778) | 46.264 | 35.361.298 |
| Motor vehicles | 11.579 | - | (191) | - | 11.388 |
| Furniture and fixtures | 1.716.202 | 6.024 | - | 3.068 | 1.725.294 |
| Construction in progress (*) | 421.580 | 268.360 | - | (49.509) | 640.431 |
| 65.661.611 | 823.527 | (34.969) | - | 66.450.169 | |
| Accumulated depreciation | |||||
| Land improvements | - | 2.823 | - | - | 2.823 |
| Buildings | - | 123.073 | - | - | 123.073 |
| Leasehold improvements | 3.951 | 77 | - | - | 4.028 |
| Plants, machinery and equipment | 24.590.055 | 527.044 | (34.251) | - | 25.082.848 |
| Motor vehicles | 8.662 | 303 | (191) | - | 8.774 |
| Furniture and fixtures | 1.260.986 | 29.186 | - | - | 1.290.172 |
| 25.863.654 | 682.506 | (34.442) | - | 26.511.718 | |
| Net book value | 39.797.957 | 39.938.451 |
(*) A significant part of the investments being made are related to ongoing machinery investments.
There is no mortgage on property, plant and equipment as of 31 March 2025 (31 December 2024:None).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January | 31 March | ||||
|---|---|---|---|---|---|
| 2024 | Additions | Disposals | Transfer | 2024 | |
| Cost or revaluation | |||||
| Land | 11.262.166 | - | - | - | 11.262.166 |
| Land improvements | 252.614 | - | - | - | 252.614 |
| Buildings | 8.838.804 | 3.222 | - | 164 | 8.842.190 |
| Leasehold improvements | 4.064 | 175 | - | - | 4.239 |
| Plants, machinery and equipment | 33.616.607 | 287.056 | (111.625) | 54.673 | 33.846.711 |
| Motor vehicles | 11.580 | - | - | - | 11.580 |
| Furniture and fixtures | 1.534.248 | 16.721 | (1.463) | 7.810 | 1.557.316 |
| Construction in progress | 2.776.724 | 641.148 | - | (62.647) | 3.355.225 |
| 58.296.807 | 948.322 | (113.088) | - | 59.132.041 | |
| Accumulated depreciation | |||||
| Land improvements | - | 3.977 | - | - | 3.977 |
| Buildings | - | 238.135 | - | - | 238.135 |
| Leasehold improvements | 3.679 | 40 | - | - | 3.719 |
| Plants, machinery and equipment | 22.832.626 | 557.611 | (101.922) | - | 23.288.315 |
| Motor vehicles | 7.300 | 345 | - | - | 7.645 |
| Furniture and fixtures | 1.159.665 | 26.720 | (1.456) | - | 1.184.929 |
| 24.003.270 | 826.828 | (103.378) | - | 24.726.720 | |
| Net book value | 34.293.537 | 34.405.321 |
Allocation of period depreciation and amortization expenses is as follows:
| 1 January - | 1 January - 31 March |
||
|---|---|---|---|
| 31 March | |||
| 2025 | 2024 | ||
| Cost of sales | 603.733 | 777.810 | |
| Research and development expenses | 147.739 | 163.343 | |
| Marketing, selling and distribution expenses | 55.553 | 2.953 | |
| General administrative expenses | 3.780 | 7.108 | |
| 810.805 | 951.214 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January | 31 March | |||
|---|---|---|---|---|
| 2025 | Additions | Disposals | 2025 | |
| Cost | ||||
| Land and buildings | 1.531.176 | 128.929 | - | 1.660.105 |
| Motor vehicles and machinery | 342.303 | 141.489 | - | 483.792 |
| 1.873.479 | 270.418 | - | 2.143.897 | |
| Accumulated amortization | ||||
| Land and buildings | 827.337 | 16.484 | - | 843.821 |
| Motor vehicles and machinery | 252.977 | 19.959 | - | 272.936 |
| 1.080.314 | 36.443 | - | 1.116.757 | |
| Net book value | 793.165 | 1.027.140 | ||
| 1 January | 31 March | |||
| 2024 | Additions | Disposals | 2024 | |
| Cost | ||||
| Land and buildings | 1.538.641 | 64.095 | - | 1.602.736 |
| Motor vehicles and machinery | 339.136 | - | (3.493) | 335.643 |
| 1.877.777 | 64.095 | (3.493) | 1.938.379 | |
| Accumulated amortization | ||||
| Land and buildings | 564.483 | 42.000 | - | 606.483 |
| Motor vehicles and machinery | 246.764 | 5.009 | (3.493) | 248.280 |
| 811.247 | 47.009 | (3.493) | 854.763 | |
| Net book value | 1.066.530 | 1.083.616 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January | 31 March | ||
|---|---|---|---|
| 2025 | Additions | 2025 | |
| Cost | |||
| Rights | 166.340 | - | 166.340 |
| Development cost | 5.661.966 | 210.830 | 5.872.796 |
| Other intangible assets | 441.628 | 12.490 | 454.118 |
| 6.269.934 | 223.320 | 6.493.254 | |
| Accumulated amortization | |||
| Rights | 165.678 | 38 | 165.716 |
| Development cost | 3.200.842 | 82.716 | 3.283.558 |
| Other intangible assets | 244.825 | 9.102 | 253.927 |
| 3.611.345 | 91.856 | 3.703.201 | |
| Net book value | 2.658.589 | 2.790.053 | |
| 1 January | 31 March | ||
| 2024 | Additions | 2024 | |
| Cost | |||
| Rights | 166.339 | - | 166.339 |
| Development cost | 4.872.031 | 299.952 | 5.171.983 |
| Other intangible assets | 386.966 | 873 | 387.839 |
| 5.425.336 | 300.825 | 5.726.161 | |
| Accumulated amortization | |||
| Rights | 165.511 | 168 | 165.679 |
| Development cost | 2.859.213 | 68.044 | 2.927.257 |
| Other intangible assets | 208.114 | 9.165 | 217.279 |
| 3.232.838 | 77.377 | 3.310.215 | |
Development costs, incurred by the Company on development projects relating to refrigerators, split air conditioners, washing machines, cookers and dish washers are capitalized as intangible assets since it is highly probable that it will derive economic benefit from these projects and the economic benefits and expenditures made during the development process can be reliably measured.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Short term provisions | ||
| Provision for lawsuit risks | 35.940 | 29.680 |
| 35.940 | 29.680 |
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Guarantee letters | 463.485 | 453.795 |
| Cheques and notes | 650 | 715 |
| Collaterals and pledges | 62.022.318 | 49.844.433 |
| 62.486.453 | 50.298.943 |
Vestel Elektronik Sanayi ve Ticaret A.Ş., Vestel Mobilite Sanayi ve Ticaret A.Ş. and Vestel Ticaret A.Ş. has given guarantees to various banks on behalf of the Company for its forward contracts and bank borrowings.
| USD | EUR | |||
|---|---|---|---|---|
| CPMB's given by the Group | ('000) | ('000) | TL | TL Equivalent |
| 31 March 2025 | ||||
| A. CPMB's given on behalf of its own legal entity | - | 2.000 | 8.261.501 | 8.343.052 |
| B. CPMB's given on behalf of fully consolidated | ||||
| subsidiaries | - | - | - | - |
| C. CPMB's given on behalf of third parties for ordinary | ||||
| course of business | - | - | - | - |
| D. Total amount of other CPMB's given | 500.742 | - | 277.439 | 19.222.362 |
| i. Total amount of CPMB's given on behalf of the parent | ||||
| company | 380.820 | - | 155.076 | 14.562.906 |
| ii. Total amount of CPMB's given to on behalf of other | ||||
| group companies which are not in scope of B and C. | 119.922 | - | 122.363 | 4.659.456 |
| iii.Total amount of CPMB's given on behalf of third | ||||
| parties which are not in scope of C. | - | - | - | - |
| Total | 500.742 | 2.000 | 8.538.940 | 27.565.414 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The Company has given guarantees to various banks on behalf of Vestel Elektronik Sanayi ve Ticaret A.Ş. and Vestel Ticaret A.Ş. for the purpose of carrying out its usual commercial activities.
| USD | EUR | |||
|---|---|---|---|---|
| CPMB's given by the Group | ('000) | ('000) | TL | TL Equivalent |
| 31 December 2024 | ||||
| A. CPMB's given on behalf of its own legal entity | - | 2.000 | 5.946.318 | 6.027.330 |
| B. CPMB's given on behalf of fully consolidated | ||||
| subsidiaries | - | - | - | - |
| C. CPMB's given on behalf of third parties for ordinary | ||||
| course of business | - | - | - | - |
| D. Total amount of other CPMB's given | 500.742 | - | 305.357 | 19.784.403 |
| i. Total amount of CPMB's given on behalf of the parent | ||||
| company | 380.820 | - | 170.681 | 14.984.718 |
| ii. Total amount of CPMB's given to on behalf of other | ||||
| group companies which are not in scope of B and C. | 119.922 | - | 134.676 | 4.799.685 |
| iii.Total amount of CPMB's given on behalf of third | ||||
| parties which are not in scope of C. | - | - | - | - |
| Total | 500.742 | 2.000 | 6.251.675 | 25.811.733 |
Proportion of other CPMB's given by the Company to its equity 53% as of 31 March 2025 (31 December 2024: 53%).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
As of the balance sheet date the Company has committed to realize exports amounting to USD 1.262.939 thousand (31 December 2024: USD 1.119.701 thousand) due to the export and investment incentive certificates obtained.
As of 31 March 2025 the Company has forward foreign currency purchase contract that amounts to EUR 20.732 thousand, PLN 2.335 thousand, GBP 728 thousand, USD 540.936 thousand, SEK 57.084 thousand and TL 5.984.000 and against forward foreign currency sales contract that amounts to EUR 496.115 thousand, GBP 9.177 thousand, PLN 8.770 thousand, USD 150.523 thousand and SEK 186.744 thousand (31 December 2024 : The Company has forward foreign currency purchase contract of EUR 95.197 thousand, PLN 11.401 thousand, GBP 2.272 thousand, USD 383.643 thousand, SEK 96.848 thousand and TL 2.135.768 against forward foreign currency sales contract that amounts to EUR 351.173 thousand, GBP 10.584 thousand, PLN 17.853 thousand, USD 136.707 thousand and SEK 177.648 thousand).
| 31 March 2025 | ||
|---|---|---|
| Due to personnel | 363.609 | 287.317 |
| Social security payables | 186.868 | 146.400 |
| 550.477 | 433.717 |
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Provision for employment termination benefits | 985.263 | 1.019.163 |
| 985.263 | 1.019.163 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Under Turkish law, the Company is required to pay employment termination benefits to each employee whose employment is terminated without due cause. In addition, under the existing Social Security Law No. 506, clause No. 60, amended by the Labor Laws dated 6 March 1981, No. 2422 and 25 August 1999, No. 4447, the Company is also required to pay termination benefits to each employee who has earned the right to retire by receiving termination indemnities.
The amount payable is the equivalent of one month's gross salary for each year of service and is limited to a maximum of TL 46.655,43 / year as of 31 March 2025 (31 December 2024: TL 41.828,42 /year - at 31 December 2024 purchasing power).
The provision for employee termination benefits is not funded.
The provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. Turkish Accounting Standards No: 19 ("Employee Benefits") requires actuarial valuation methods to be developed to estimate the enterprise's obligation under defined employee plans. Accordingly actuarial assumptions were used in the calculation of the total liability which is described below:
The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. An expected inflation rate and appropriate discount rate should both be determined, the net of these being real discount rate. Consequently, in the accompanying financial statements as of 31 December 2024 the provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. As of 31 March 2025, provision is calculated based on real discount rate of 11,54% assuming 26,71% annual inflation rate and 2,47% discount rate. (31 December 2024: 26,71% inflation rate, 11,54% real discount rate, 2,47% discount rate)
The main assumption is that the seniority ceiling for each year of service increases in line with inflation. Thus, the discount rate applied represents the actual rate adjusted for the expected effects of inflation. The maximum liability is revised every six months, the maximum amount of TL 46.655,43 effective from 1 January 2025 has been taken into consideration in the calculation of provision for employment termination benefits as of 31 December 2024 and 31 March 2025.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The movements in the provision for employment termination benefit are as follows:
| 1 January - | 1 January - | |
|---|---|---|
| 31 March 2025 | 31 March 2024 | |
| Balance at 1 January | 1.019.163 | 1.075.232 |
| Increase during the year | 40.769 | 39.183 |
| Payments during the year | (52.473) | (67.125) |
| Actuarial (gain) /loss | 11.366 | 8.578 |
| Interest expense | 60.776 | 52.305 |
| Monetary gain/ (loss) | (94.338) | (141.768) |
| Balance at 31 March | 985.263 | 966.405 |
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Other current assets | ||
| VAT carried forward | 4.391 | 4.023 |
| Revenue and discount accruals | 36.915 | 102.288 |
| 41.306 | 106.311 | |
| Other current liabilities | ||
| Tax payables | 200.277 | 197.376 |
| Other | 16.178 | 12.529 |
| 216.455 | 209.905 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Shares of par value Kr 1 each | ||
| issued share capital | 1.600.000 | 1.600.000 |
As of 31 March 2025 and 31 December 2024, the shareholding structure is as follows:
| Shareholding | Amount | |||
|---|---|---|---|---|
| 31 March | 31 December | 31 March | 31 December | |
| 2025 | 2024 | 2025 | 2024 | |
| Vestel Elektronik Sanayi ve Ticaret AŞ | 77,33% | 77,33% | 1.237.302 | 1.237.302 |
| Stocks traded on BIST | 22,67% | 22,67% | 362.698 | 362.698 |
| 100% | 100% | 1.600.000 | 1.600.000 |
Adjustment to share capital is the difference between the share capital recalculated to adjust the effects of inflation and historical share capital.
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Adjustments to share capital | 10.844.163 | 10.844.163 |
The legal reserves consist of first and second legal reserves appropriated in accordance with the Turkish Commercial Code ("TCC"). The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the Company's share 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. Under TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid in share capital.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Legal reserves | 2.253.772 | 2.253.772 |
The differences arising as a result of converting the following inflation-adjusted amounts in the company's legal records into CPI-adjusted amounts within the scope of TAS 29 are accounted under the Retained Earnings item.
| Differences Tracked in | ||||
|---|---|---|---|---|
| PPI-Indexed Legal Records |
CPI Indexed Amounts |
Past Years Profits/Losses |
||
| Capital Adjustment Gains/Losses | 11.830.091 | 10.844.163 | 985.928 | |
| Appropriated Retained Earnings | 2.984.214 | 2.253.772 | 730.442 |
For quoted companies dividends are distributed in accordance with the Communiqué Serial II -19.1 on "Principals Regarding Distribution of Interim Dividends" issued by the CMB effective from 1 February 2014. Companies distribute dividends in accordance with their dividend payment policies settled and dividend payment decision taken in general assembly and in conformity with relevant legislations. The communiqué does not state a minimum dividend rate.
Companies distribute dividends in accordance with the method defined in their dividend policy or articles of association. Additionally, dividend can be distributed in fixed or variable installments and dividend advances can be paid over the profit on financial statements.
Unless the general reserves that has to be appropriated in accordance with TCC or the dividend to shareholders as determined in the articles of association or dividend policy are set aside; no decision can be taken to set aside other reserves, to transfer reserves to the subsequent year or to distribute dividends to holders of redeemed shares right certificates, to board of directors members or to employees; and no dividend can be distributed to those unless the determined dividend to shareholders is paid in cash.
On the other hand, in accordance with the Articles of Association of the Company, up to 5% of retained earnings after dividend distribution could be allocated to the Board of Directors or used for certain reasons designated by the Board of Directors when necessary.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January - | 1 January - 31 March 2024 |
|
|---|---|---|
| 31 March | ||
| 2025 | ||
| Domestic sales | 4.756.427 | 7.394.220 |
| Overseas sales | 11.191.475 | 12.001.796 |
| Gross sales | 15.947.902 | 19.396.016 |
| Sales discounts (-) | (56.649) | (98.024) |
| Net sales | 15.891.253 | 19.297.992 |
| Cost of sales | (14.643.253) | (16.346.458) |
| Gross profit | 1.248.000 | 2.951.534 |
| 1 January - 31 March 2025 |
1 January - 31 March 2024 |
|
|---|---|---|
| Credit finance gains arising from trading activities | 36.461 | 136.273 |
| Foreign exchange gains arising from trading activities | 1.035.702 | 837.518 |
| Other income | 9.944 | 2.687 |
| 1.082.107 | 976.478 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| 1 January - 31 March 2025 |
1 January - 31 March 2024 |
|
|---|---|---|
| Debit finance charges and interest income arising from | ||
| trading activities | 350 | 701 |
| Foreign exchange expenses arising from trading activities | 1.596.785 | 1.884.096 |
| Other expenses | 56.834 | 25.887 |
| 1.653.969 | 1.910.684 |
| 1 January - | 1 January - 31 March 2024 |
|
|---|---|---|
| 31 March | ||
| 2025 | ||
| Foreign exchange gains | 257.063 | 394.782 |
| Gains on derivative financial instruments | 402.877 | 107.814 |
| Interest income | 328.968 | 87.386 |
| 988.908 | 589.982 |
| 1 January - 31 March 2025 |
1 January - 31 March 2024 |
|
|---|---|---|
| Foreign exchange losses | 148.583 | 230.459 |
| Losses on derivative financial instruments | 312.611 | 310.973 |
| Interest expense | 1.546.153 | 1.024.663 |
| 203.383 Commission and other finance expenses 2.210.730 |
197.934 | |
| 1.764.029 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Non-monetary items | 31 March 2025 |
|---|---|
| Balance sheet items | 461.058 |
| Inventories | 1.434.487 |
| Prepaid expenses | 11.431 |
| Tangible and intangible assets | 3.480.462 |
| Right of use assets | 75.199 |
| Inflation adjustments on capital | (1.137.739) |
| Other comprehensive income (expenses) that will not be reclassified to profit/(losses) | (1.190.452) |
| Other comprehensive income (expenses) that will be reclassified to profit/(losses) | (15.739) |
| Restricted reserves | (206.057) |
| Prior years' profits or loss | (1.990.534) |
| Profit and loss items | 685.171 |
| Sales | (369.275) |
| Cost of sales | 854.382 |
| General administration expenses | 10.468 |
| Marketing expenses | 53.930 |
| Research and development expenses | 87.242 |
| Other income from operating activities | (25.146) |
| Other expenses from operating activities | 45.178 |
| Financial income | (22.980) |
| Financial expense | 51.372 |
| Net monetary position gains/(losses) | 1.146.229 |
| 31 March 2025 | 31 December 2024 | |
|---|---|---|
| Prepaid taxes (-) | (11.290) | (11.241) |
| Current income tax liabilities - net | (11.290) | (11.241) |
| Deferred tax liabilities - net | (3.633.481) | (3.452.404) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Pursuant to paragraph 1 of Article 6 of the Corporate Tax Law No. 5520, corporate tax is calculated on the net corporate income of the taxpayers for an accounting period. Pursuant to paragraph 2 of the same article, by taking into account the provisions of Income Tax Law No. 193 on commercial income, pure corporate income is calculated by adding legally unacceptable expenses to the commercial income and deducting the exempt earnings and discounts from the commercial income.
With the amendment made to Article 32 of the Corporate Tax Law No. 5520 with Article 21 of the Law No. 7456, corporate taxpayers other than banks, companies within the scope of the Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies are subject to corporate tax at the rate of 25% on their net corporate earnings.
In addition to the corporate tax levied on corporate income, withholding income/corporate tax burden may arise if all or part of the profits of corporations are subject to profit distribution. By full taxpayer corporations;
In Türkiye, the Domestic Minimum Corporate Tax has entered into force with the laws published in the Official Gazette dated 2 August 2024. The regulation will be applied to corporate earnings for the taxation period of 2025. Within this scope, a regulation has been made stating that the corporate tax calculated cannot be less than 10% of the corporate earnings before deductions and exemptions. Since the application will start on the earnings of the corporations as of 1 January 2025, it will not have an impact on the current period tax expense in the financials dated 31 December 2024. On the other hand, the effects of the International Tax Reform - Second Pillar Model Rules on the financial position and performance of the Company have been evaluated and it has been determined that it does not have a significant impact.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
In case of dividend distribution, 10% withholding income/corporate tax is payable. According to the Turkish tax legislation, capitalization of profit is not considered as dividend distribution.
Corporations are required to calculate advance tax on their quarterly earnings for the first 3 months of their accounting periods in accordance with the principles set out in the Income Tax Law No. 193 and at the corporate tax rate and declare it until the 17th day of the second month following that period and pay it until the evening of the 17th day. Advance tax paid during the year belongs to that year and is deducted from the corporate tax to be calculatedon the corporate tax return to be submitted in the following year.
Corporations are exempt from corporate tax on 75% of the gains arising from the sale of participation shares included in their assets for at least two full years and 25% of the gains arising from the sale of immovables included in their assets on 15 July 2023 for the same period. As of 15 July 2023, corporate tax exemption is not applied to the gains arising from the sale of immovables taken into assets.
Under Turkish tax legislation, tax losses carried forward can be carried forward to offset against future taxable income for up to 5 years. However, tax losses cannot be offset against retained earnings.
In Türkiye, there is no such practice as reconciliation with the tax authority on taxes payable. Corporate tax returns are required to be filed with the tax office by the 30th of the fourth month following the close of the accounting period and corporate tax is payable within the same period.
However, tax authorities may examine the accounting records within five years and the amount of tax payable may change if incorrect transactions are detected.
Earnings from the Company's investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or completely until the investment contribution amount is reached.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized in respect of deductible temporary differences, tax losses and tax advantages arising from investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
For the periods 31 March 2025 and 2024, tax expenses recognized in the statement of comprehensive income are as follows;
| 1 January - | 1 January - | ||
|---|---|---|---|
| 31 March 2025 | 31 March 2024 | ||
| Current period tax expense | - | (2.926) | |
| Deferred tax benefit/(expense) | (256.385) | 53.777 | |
| Total tax benefit/(expense) | (256.385) | 50.851 |
Due to modernization, plant extension and investments incentive documents in Manisa Organized Industrial Zone, the Company has reduced rate of corporate tax advantage.
The breakdown of cumulative temporary differences and the resulting deferred tax assets and liabilities provided using principal tax rate as of the balance sheet dates is as follows:
| Cumulative temporary | ||||
|---|---|---|---|---|
| differences | Deferred tax | |||
| 31 March 2025 |
31 December | 31 March 2025 |
31 December 2024 |
|
| 2024 | ||||
| Deferred tax assets/(liabilities) | ||||
| Employment termination benefits | (985.263) | (1.019.163) | 246.316 | 254.791 |
| Invesment incentive | - | - | 910.936 | 1.322.952 |
| Deferred tax calculated on financial period loss | - | - | 478.939 | 192.448 |
| Net difference between recorded values and tax bases of tangible and | ||||
| intangible assets | 23.133.169 | 22.852.540 | (4.763.453) | (4.693.295) |
| Net difference between registered values of stocks and tax bases | 2.423.900 | 2.366.226 | (605.975) | (591.557) |
| Derivative financial instruments | (284.346) | 344.805 | 71.087 | (86.200) |
| Other | (114.675) | (593.828) | 28.669 | 148.457 |
| (3.633.481) | (3.452.404) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The Company's earnings from investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or fully until the investment contribution amount is reached.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized for deductible temporary differences, tax losses and investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.
Furthermore, financial statements consist of the deferred tax effect of the temporary differences accounted by the adjustments made regarding inflation accounting together with the notification of the Corporate Tax Law dated 30 December 2023 and numbered 32415.
As of 31 March 2025, the tax advantage amounting to TL 910.936 that the Company will benefit from in the foreseeable future is reflected in the financial statements as deferred tax asset. In line with the precautionary principle of accounting and in line with the budget made by the Company, the tax advantage arising from the investment incentives that the Company expects to benefit from in the coming years has been recognized as deferred tax asset in the financial statements.However, the tax advantage amounting to TL 4.902.055 that the Company is entitled to use has not been recognized in deferred tax assets in accordance with the precautionary principle of accounting.
The Company assesses the recoverability of deferred tax assets related to investment incentives based on business models that include estimates of taxable profit. These business models include forward-looking management estimates such as sales volumes, selling prices and exchange rate expectations.
As a result of the sensitivity analyses on the forward-looking use of investment incentives, it has been concluded that a 10% increase/decrease in the related estimates has no an important impact on the recoverability of the related deferred tax assets.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
The movement of net deferred tax assets and liabilities is as follows:
| 1 January - | 1 January - | ||
|---|---|---|---|
| 31 March 2025 | 31 March 2024 | ||
| Opening balance, 1 January | (3.452.404) | (2.613.649) | |
| Tax benefit recognized in income statement | (256.385) | 53.777 | |
| Recognized in shareholders' equity | 75.308 | (88.794) | |
| Deferred tax liabilities at the end of the period, net | (3.633.481) | (2.648.666) |
| 1 January - | 1 January - 31 March 2024 |
||
|---|---|---|---|
| 31 March | |||
| 2025 | |||
| Net income / (loss) attributable to equity holders of the parent | (1.014.009) | 851.567 | |
| Weighted number of ordinary shares with a Kr 1 of par value (hundred shares) | 1.600.000.000 | 1.600.000.000 | |
| Losses per share | (0,63) | 0,53 |
| 31 March 2025 | 31 December 2024 | ||||
|---|---|---|---|---|---|
| Fair Value | Fair Value | ||||
| Contract | Assets / | Contract | Assets / | ||
| amount | (Liabilities) | amount | (Liabilities) | ||
| Derivative financial instruments: | |||||
| Held for trading | |||||
| Forward foreign currency transactions | 2.155.479 | 51.533 | 4.092.779 | 24.125 | |
| Cash flow hedge | |||||
| Forward foreign currency transactions | 12.935.397 | 110.247 | 10.937.542 | 353.904 | |
| Derivative financial liabilities: | |||||
| Held for trading | |||||
| Forward foreign currency transactions | 6.662.888 | (128.406) | 6.075.957 | (29.242) | |
| Cash flow hedge | |||||
| Forward foreign currency transactions | 5.774.918 | (81.552) | 311.221 | (3.982) | |
| 27.528.682 | (48.178) | 21.417.499 | 344.805 |
The Company is exposed to exchange rate risk due to its foreign currency denominated transactions. The main principle of foreign currency risk management is to maintain foreign exchange position at the level that minimizes the impact of foreign exchange fluctuations.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Derivative instruments are used in foreign currency risk management where necessary. In this respect the Company mainly prefers using foreign exchange forward contracts.
| USD | EUR | Other (TL | ||
|---|---|---|---|---|
| 31 March 2025 | (Thousand) | (Thousand) | Equivalent) TL Equivalent | |
| 1. Trade receivables | 29.129 | 188.856 | 452.812 | 9.239.684 |
| 2a. Monetary financial assets (including | ||||
| cash and cash equivalents) | 3.340 | 250 | 1.036 | 137.349 |
| 2b. Non-monetary financial assets | - | - | - | - |
| 3. Other | 81.227 | 7.995 | - | 3.392.998 |
| 4. Current assets (1+2+3) | 113.696 | 197.101 | 453.848 | 12.770.031 |
| 5. Trade receivables | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - |
| 6b. Non-monetary financial assets | - | - | - | - |
| 7. Other | 14.403 | 7.689 | - | 856.895 |
| 8. Non-current assets (5+6+7) | 14.403 | 7.689 | - | 856.895 |
| 9. Total assets (4+8) | 128.099 | 204.790 | 453.848 | 13.626.926 |
| 10. Trade payables | 262.687 | 179.116 | 66.632 | 17.308.562 |
| 11. Financial liabilities | 19.277 | 18.293 | - | 1.475.223 |
| 12a. Other monetary liabilities | - | - | - | - |
| 12b. Other non-monetary liabilities | - | - | - | - |
| 13. Current liabilities (10+11+12) | 281.964 | 197.409 | 66.632 | 18.783.785 |
| 14. Trade payables | - | 3.408 | - | 138.962 |
| 15. Financial liabilities | - | 4.924 | - | 200.778 |
| 16a. Other monetary liabilities | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - |
| 17. Non-current liabilities (14+15+16) | - | 8.332 | - | 339.740 |
| 18. Total liabilities (13+17) | 281.964 | 205.741 | 66.632 | 19.123.524 |
| 19. Off-balance sheet derivative instruments | ||||
| net asset / (liability) position (19a+19b)(*) | 390.413 | (475.383) | (960.511) | (5.611.979) |
| 19a. Hedged total assets | 540.936 | 20.732 | 272.071 | 21.544.683 |
| 19b. Hedged total liabilities | (150.523) | (496.115) | (1.232.582) (27.156.662) | |
| 20. Net foreign currency asset/ (liability) | ||||
| position (9-18+19) | 236.548 | (476.334) | (573.295) | (11.108.577) |
| 21. Net foreign currency monetary asset/ | ||||
| (liability) position | ||||
| (=1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (153.865) | (951) | 387.216 | (5.496.598) |
| 22. Fair value of financial instruments used | ||||
| in foreign currency hedging | - | - | - | (48.178) |
| 23. Export | 36.188 | 222.702 | 421.983 | 11.191.475 |
| 24. Import | 126.224 | 29.891 | 13.186 | 5.712.578 |
(*) Consists of net asset/(liability) positions of off-balance sheet derivative instruments denominated in foreign currencies.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| USD | EUR | Other (TL | ||
|---|---|---|---|---|
| 31 December 2024 | (Thousand) | (Thousand) | Equivalent) TL Equivalent | |
| 1. Trade receivables | 43.277 | 214.998 | 377.588 | 10.789.038 |
| 2a. Monetary financial assets (including | ||||
| cash and cash equivalents) | 11.204 | 11.313 | 1.325 | 893.932 |
| 2b. Non-monetary financial assets | - | - | - | - |
| 3. Other | 70.925 | 1.330 | - | 2.807.827 |
| 4. Current assets (1+2+3) | 125.406 | 227.641 | 378.913 | 14.490.797 |
| 5. Trade receivables | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - |
| 6b. Non-monetary financial assets | - | - | - | - |
| 7. Other | 14.113 | 8.875 | - | 906.857 |
| 8. Non-current assets (5+6+7) | 14.113 | 8.875 | - | 906.857 |
| 9. Total assets (4+8) | 139.519 | 236.516 | 378.913 | 15.397.653 |
| 10. Trade payables | 259.615 | 208.998 | 34.926 | 18.603.177 |
| 11. Financial liabilities | 22.239 | 18.055 | - | 1.596.436 |
| 12a. Other monetary liabilities | - | - | 20 | 22 |
| 12b. Other non-monetary liabilities | - | - | - | - |
| 13. Current liabilities (10+11+12) | 281.854 | 227.053 | 34.946 | 20.199.635 |
| 14. Trade payables | - | 3.341 | - | 135.330 |
| 15. Financial liabilities | - | 5.570 | - | 225.599 |
| 16a. Other monetary liabilities | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - |
| 17. Non-current liabilities (14+15+16) | - | 8.911 | - | 360.929 |
| 18. Total liabilities (13+17) | 281.854 | 235.964 | 34.946 | 20.560.564 |
| 19. Off-balance sheet derivative instruments | ||||
| net asset / (liability) position (19a+19b) | 246.936 | (255.976) | (681.221) | (1.528.351) |
| 19a. Hedged total assets | 383.643 | 95.197 | 507.874 | 19.281.732 |
| 19b. Hedged total liabilities | (136.707) | (351.173) | (1.189.095) (20.810.083) | |
| 20. Net foreign currency asset/ (liability) | ||||
| position (9-18+19) | 104.601 | (255.424) | (337.254) | (6.691.262) |
| 21. Net foreign currency monetary asset/ | ||||
| (liability) position | ||||
| (=1+2a+5+6a-10-11-12a-14-15-16a) | (142.335) | 552 | 343.967 | (5.162.911) |
| 22. Fair value of financial instruments used | ||||
| in foreign currency hedging | - | - | - | 344.805 |
| 23. Export | 152.583 | 1.091.070 | 1.411.440 | 56.699.276 |
| 24. Import | 514.039 | 152.022 | 44.418 | 24.445.045 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
As of 31 March 2025 and 31 December 2024, sensitivity analysis of foreign exchange rate tables is presented below, secured portions include impact of derivative instruments.
| Gain / Loss | Equity | |||
|---|---|---|---|---|
| Foreign | Foreign | Foreign | Foreign | |
| 31 March 2025 | exchange | exchange | exchange appreciation |
exchange depreciation |
| appreciation | depreciation | |||
| +/- 10% fluctuation of USD rate: | ||||
| USD net asset / liability | (583.001) | 583.001 | (583.001) | 583.001 |
| Secured portion from USD risk (-) | (328.883) | 328.883 | 1.489.350 | (1.489.350) |
| USD net effect | (911.884) | 911.884 | 906.349 | (906.349) |
| +/- 10% fluctuation of EUR rate: | ||||
| EUR net asset / liability | (4.993) | 4.993 | (4.993) | 4.993 |
| Secured portion from EUR risk (-) | (131.569) | 131.569 | (1.963.807) | 1.963.807 |
| EUR net effect | (136.562) | 136.562 | (1.968.800) | 1.968.800 |
| +/- 10% fluctuation of other currency rates: | ||||
| Other currencies net asset / liability | 38.722 | (38.722) | 38.722 | (38.722) |
| Secured portion from other currency risk | (70.891) | 70.891 | (53.902) | 53.902 |
| Other currency net effect | (32.169) | 32.169 | (15.180) | 15.180 |
| Total | (1.080.615) | 1.080.615 | (1.077.631) | 1.077.631 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
| Gain / Loss | Equity | |||
|---|---|---|---|---|
| Foreign | Foreign | Foreign | Foreign | |
| exchange | exchange | exchange | exchange | |
| 31 December 2024 | appreciation | depreciation | appreciation | depreciation |
| +/- 10% fluctuation of USD rate: | ||||
| USD net asset / liability | (555.539) | 555.539 | (555.539) | 555.539 |
| Secured portion from USD risk (-) | (116.626) | 116.626 | 963.722 | (963.722) |
| USD net effect | (672.165) | 672.165 | 408.183 | (408.183) |
| +/- 10% fluctuation of EUR rate: | ||||
| EUR net asset / liability | (988) | 988 | (988) | 988 |
| Secured portion from EUR risk (-) | (6.433) | 6.433 | (1.082.298) | 1.082.298 |
| EUR net effect | (7.421) | 7.421 | (1.083.286) | 1.083.286 |
| +/- 10% fluctuation of other currency rates: | ||||
| Other currencies net asset / liability | 37.858 | (37.858) | 37.858 | (37.858) |
| Secured portion from other currency risk | (50.556) | 50.556 | (19.219) | 19.219 |
| Other currency net effect | (12.698) | 12.698 | 18.639 | (18.639) |
| Total | (692.284) | 692.284 | (656.464) | 656.464 |
The Company classifies the fair value measurement of each class of financial instruments according to the source, using the three-level hierarchy, as follows:
Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)
Level 2: Other valuation techniques include direct or indirect observable inputs
Level 3: Valuation techniques do not contain observable market inputs
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Fair value hierarchy tables as of 31 March 2025 and 31 December 2024 are as follows:
| 31 March 2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets/liabilities | ||||
| Derivative financial instruments | - | (48.178) | - | (48.178) |
| 31 December 2024 | Level 1 | Level 2 | Level 3 | Total |
| Financial assets/liabilities | ||||
| Derivative financial instruments | - | 344.805 | - | 344.805 |
The Company's non-financial assets, calculated at fair value as of 31 March 2025 and 31 December 2024 are as follows:
| 31 March 2025 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Tangible Assets | ||||
| Lands | - | 16.317.428 | - | 16.317.428 |
| Buildings and land improvements | - | 12.263.205 | - | 12.263.205 |
| 31 December 2024 | Level 1 | Level 2 | Level 3 | Total |
| Tangible Assets | ||||
| Lands | - | 16.317.428 | - | 16.317.428 |
The maturity of other financial liabilities is 30 July 2030 and the interest rate is EURIBOR+2,5.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 31 March 2025 unless otherwise stated.)
Taking into consideration the provisions of the Company's Articles of Association and the Profit Distribution Policy, from the net distributable profit for the period — including the donations calculated in accordance with CMB regulations — a dividend in the amount of TL 70.238 corresponding to 25%, shall be allocated to the shares representing the issued capital; the dividend (corresponding to a gross TL 0,0439 and net TL 0,03731 per share with a nominal value of TL 1,00) shall be paid in cash to the shareholders on 24 July 2025; the dividend distribution shall be covered from the extraordinary reserves stated in the financial statements prepared in accordance with TPL (Tax Procedure Law) regulations; and these matters shall be submitted to the approval of the shareholders at the 2024 Ordinary General Assembly Meeting.This resolution has been adopted unanimously by the members of the Board of Directors present at the meeting.
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