DESA Posts TRY 374 Million Net Profit in First 9 Months of 2025

With over half a century of experience in manufacturing, retail and export, Turkey's leading leather brand DESA has shared its financial results for the first nine months of 2025 with the public. Maintaining strong financial performance in the first nine months of the year, DESA reached revenues of TRY 2.8 billion and net profit margin increased by 0.2 percentage points compared to the second quarter to 13.4 percent despite challenging market conditions.

Strong Profitability and Solid Balance Sheet
Turkey's leading leather and leather goods retailer DESA maintained profitability in the third quarter of 2025 with its strong financial structure, continuing to create value for its investors.

DESA, which maintained strong financial performance in the first nine months of the year, reached revenues of TRY 2.8 billion, while gross profit margin was realized at 56.3 percent. Continuing stable growth in sales volume, DESA grew by 13.5 percent in the retail channel compared to the same period last year, increasing its market share contrary to the contracting market. With communication and advertising investments made in the first nine months of 2025 and a 12.3 percent increase in store traffic compared to the same period last year, DESA increased its sales performance in digital channels thanks to its renewed e-commerce infrastructure. Despite growth in foreign demand and exports being held back as a result of contraction experienced by the world's most important luxury brands during the first 9 months of the year, DESA increased its workforce at its production facilities compared to the previous quarter due to positive signals from the market regarding the last quarter of the year.

DESA demonstrated performance parallel to the first half of the year by focusing on efficiency in the third quarter of 2025 and achieved TRY 885 million EBITDA in the first 9 months of 2025. Despite deteriorating market conditions and cost pressures, DESA continued to differentiate itself in the market with its multi-market, multi-channel, broad product portfolio and vertically integrated business model. EBITDA margin was realized at 31.7 percent with an increase of 0.8 basis points compared to the same period last year.

While DESA's solid balance sheet structure continued to strengthen during this period, the Net Cash Position, which was USD 39.5 million at the end of 2024, increased to USD 42.2 million (TRY 1,751 million) at the end of the third quarter of the year through the company's strong income statement and effective cash management.

Within Its Sustainability Vision, DESA is Evaluating Alternative Technologies That Could Impact the Leather Sector
Within the scope of DESA's sustainability vision and to strengthen its pioneering position in the sector in fashion and technology, the company is entering into a partnership with Gozen, which operates in the biotechnology field and is a pioneer in this area. In this direction, DESA has begun negotiations with Gozen to sign a letter of intent regarding the establishment of a joint venture for the development, production and commercialization of next-generation materials as finished products in domestic and international markets. To manage the work to be conducted and to conduct negotiations, the Board of Directors unanimously authorized DESA CEO Burak Çelet on 21.10.2025.

DESA Continues Growth in International Markets
1972 DESA, which represents DESA's global vision, held a fashion show once more in September during Milan Fashion Week, showcasing its collection. The Spring/Summer 26-27 collection titled "Tulips of Hope," prepared by DESA's international creative team, drew inspiration from Istanbul's multi-layered cultural heritage and transformed it into timeless, modern and sustainable designs presented to the appreciation of world fashion. DESA CEO Burak Çelet emphasized that being the only Turkish brand to hold a fashion show during Milan Fashion Week is a matter of pride for both the brand and Turkey, saying "As DESA, we are pleased to bring the quality of Turkish leather and our design strength to the world stage. The invitation of our 1972 DESA brand to Milan Fashion Week is a great achievement for our country and our sector."

First Two Installments of TRY 100 Million Dividend from 2024 Net Profit Distributed
At the 2024 Ordinary General Assembly, shareholders approved the distribution of TRY 100 million in total as dividend to partners in three installments from the company's 2024 net distributable period profit of TRY 327,726,027, with net TRY 30 million on 25 September 2025, net TRY 35 million on 30 October 2025, and net TRY 35 million on 27 November 2025. Dividend payments for September and October were distributed to investors.

Export and Global Growth Strategy
DESA CEO Burak Çelet, in his assessment regarding the financial results, stated: "The stable strong financial performance we continued in the third quarter of 2025 is an important result proving the continuity of our strategic investments and operational efficiency. The fact that we maintained our net profit margin according to contracting market conditions compared to the same period last year is the result of effective strategies we apply in both domestic and international markets."

Noting that the production facility in Italy has made an important contribution to deepening cooperation with brands in the global luxury segment and increasing DESA's value-added exports, Çelet reiterated that they are proud that DESA alone implements more than half of Turkey's leather goods exports to Italy.

Stating that the steps taken to strengthen DESA's capital structure and sustainability-focused investments play a critical role in achieving DESA's long-term growth targets, Çelet said: "In the remainder of 2025, we will continue to strengthen our leading position in the sector with our high-quality products, innovative designs and customer-focused approach."