Kalekim Closes 2024 with Net Profit of TRY 990 Million

Kalekim, a leading brand in Turkey's construction chemicals sector, closed 2024 with strong financial performance. The company strengthened its production capacity through new investments and carried forward the stable growth performance of the first three quarters into the final quarter, completing the year in line with targets.

Kalekim closed the final quarter of 2024 with a profit of TRY 367 million, and its annual net profit increased by 51% to TRY 990 million. Kalekim increased domestic sales by 7% and exports by 13% compared to the previous year, with total net sales for year-end 2024 reaching TRY 7.5 billion, up 11%.

"We will continue our journey as a global brand with stronger steps in 2025"
Haluk Alperat, CFO of Kale Holding, noted that Kalekim demonstrated significant financial success in a challenging year and stated the following:

"As Kalekim, in 2024 despite the difficulties faced in domestic and global markets, we continued our investments without deviating from our targets. With this approach, we implemented significant investments both domestically and internationally. Through these investments, which we place great importance on for our global brand journey, we not only advanced our production capacity further but also strengthened our leading position in the sector. With the contributions of the investments and developments we made in 2024, we completed the year in line with our expectations.

We carried forward our consistent success of the first three quarters of the year into the fourth quarter, demonstrating significant financial performance throughout the year. With the TRY 367 million profit we achieved in the final quarter, our net profit for 2024 increased by 51% compared to the previous year, reaching TRY 990 million. During this period, our domestic sales increased by 7% and exports by 13% compared to the previous year. At year-end, our net sales reached TRY 7.5 billion with an increase of 11%. Following a year we completed in line with our targets, we will continue our path in 2025 with stronger steps, together with our Iraq investment, which we plan to begin production shortly."

"We have started production in Istanbul, and we are in the final stages for Iraq"
Soner Çetinkaya, General Manager of Kalekim, emphasized that they had a successful year and noted:

"2024 was a year in which we further developed our production capacity through investments. During the year, we are now in the final stages of production for our TUSD 10 million investment in Iraq, our largest export market. At our new facility built on 27,000 square meters in Duhok with a capacity of 100,000 tons of dry mortar, 5,000 tons of paints and liquid construction chemicals annually, we will begin production shortly. Again, as part of our foreign investments, we are exploring local investment opportunities through our Kalekim Romania company, which we established with a local partner in a 50-50 partnership in Romania at the beginning of 2023. Our work continues at full pace for our Lyksor Romania branch, which we plan to open in Romania to further strengthen our activities in Eastern Europe. We believe our new branch will not only provide strength to our activities and presence in Romania and Europe but also make a significant contribution to our effectiveness and recognition in these regions.

In parallel with these investment activities abroad, we have also taken important steps domestically during this period. In particular, in line with our national market targets, we started serial production at the new facility of Kalekim Lyksor Kimya Sanayi A.Ş, our subsidiary, in Istanbul Tuzla. With this investment, which we view as an important milestone for our growth targets in the concrete and cement chemicals market, we aim to increase our effectiveness in the regional market and strengthen our leading position in the sector by offering innovative solutions to our customers. Our new facility, implemented with approximately TUSD 1.9 million investment, has an annual production capacity of 150,000 tons in the field of concrete and cement chemicals. With this investment, we have increased the total capacity of Kalekim Lyksor to 370,000 tons.

"As Kalekim, we have taken our place in the BIST Sustainability Index"
During 2024, we also achieved significant successes through our work in sustainability. As Kalekim, we qualified to enter the BIST Sustainability Index with our performance in environmental, social and governance (ESG) areas. As a result of the evaluation conducted by Refinitiv, we scored 80 points and ranked 20th among 477 chemical companies evaluated worldwide.

As a result of our long-term efforts carried out in line with our environmental and social responsibilities, being certified as the leader of Turkey's construction chemicals sector will be an important source of motivation for us in the coming period. In 2024, we also took a further step forward in our strong commitment to sustainability and became a signatory of UN Global Compact, the world's largest corporate sustainability initiative.

"In 2025, we will continue our journey of being a brand that sets direction in the sector with our innovations"
Furthermore, one of our investments to which we attach great importance in line with our sustainable future goals—our solar power plants—have started operating at 100% capacity. With our solar power project, which we implemented with a USD 6.3 million investment in Yerköy, Yozgat, we initially meet our group's energy needs. In the coming period, we aim to expand these investments further on the path to a better world.

However, following a year we have successfully completed, we aim to strengthen our leading role in 2025, especially in the areas of sustainability, innovative product development and digitalization. Within this scope, while increasing our successes on a local and global scale, we will continue our journey of being a brand that sets direction in the sector by further developing our environmentally friendly and sustainable production models and our customer satisfaction-based service approach."