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

Konfrut Agriculture's Performance in 2025

In the nine-month period of 2025, Konfrut Agriculture experienced a flat sales trend, while a significant increase of 32% in gross profit was observed. However, the operating loss grew by 19%, raising questions about the factors that could strengthen the company's chances of turning a profit. The net monetary position loss reached 148 million TL.

Increasing Sales Volume and Challenges

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

Developments in Çemtaş's GES Project

Investors are focusing on Çemtaş's solar power plant projects comprising three plants with a total capacity of 37 MWe in Mardin Derik. The company initiated the EIA 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 if successfully completed, it is expected to significantly cover the company's electricity consumption, thereby improving its cost structure. However, this process may take time due to the need for obtaining technical and administrative permits.

Is a Return to Profit Possible?

According to current data, for Konfrut Agriculture to return to profitability by the end of the year, the gross margin needs to strengthen and the expense structure must be kept under control. Otherwise, despite revenue growth, continuing losses are likely. Particularly, the impact of inflation accounting should not be overlooked. In short, with the ongoing losses and negative EBITDA, the likelihood of a transition to profitability appears weak. However, potential consolidations and the effects of economies of scale in 2026 may lead to a recovery process.