Will Konfrut Agriculture Be Able to Turn a Profit by the End of the Year?

Konfrut Agriculture's 2025 Performance

In the first nine months of 2025, Konfrut Agriculture experienced flat sales, while a significant increase of %32 was observed in its gross profit. However, operating losses grew by %19, raising questions about the factors that could strengthen the company’s likelihood of returning to profitability. The net monetary position loss reached 148 million TL.

Increased Sales Volume and Challenges

The company aims for a revenue target of 602 million TL by increasing its fresh product volume by %22 during the year. However, this increase may only reflect in the last quarter, creating a challenging scenario to offset the 313 million TL loss accumulated throughout the year. An increase in sales volume alone does not guarantee a return to profitability.

Çemtaş's Developments in the GES Project

Investors are focusing on Çemtaş’s land-based GES projects in Mardin Derik with a total capacity of 37 MWe comprising three plants. The company initiated the Environmental Impact Assessment (ÇED) process in September and plans to apply for an Investment Incentive Certificate after obtaining the necessary permits.

Project Goals and Expectations

The project is targeted to be operational in the fourth quarter of 2026, and upon successful completion, it is expected to substantially meet the company's electricity consumption and improve its cost structure. However, this process may take time due to the acquisition of technical and administrative permits.

Is a Return to Profitability Possible?

According to current data, Konfrut Agriculture will need to strengthen its gross margin and maintain control over its expenditure structure to return to profitability by year-end. Otherwise, despite revenue growth, continued losses are likely. Particularly, the impact of inflation accounting should not be overlooked. In summary, the likelihood of shifting to profitability appears weak with ongoing losses and negative EBITDA. However, a recovery process may be possible due to potential consolidations and the effects of economies of scale expected in 2026.