Orzax Channels Financial Structure Strengthened by IPO into Growth

Orzax, one of Türkiye’s leading dietary supplement brands, is focusing on its growth targets with a financial structure strengthened following its IPO. The company aims to achieve TRY 14.3 billion in revenue and TRY 4.5 billion in EBITDA by 2027. Orzax CFO Yüksel Akarsu stated that through the Esenyurt Factory-3 investment, they plan to increase domestic production capacity, reduce dependency on imports, and secure a cost advantage.

Operating with a distribution network reaching approximately 30 thousand pharmacies, Orzax is prioritizing cash flow and operational efficiency alongside its production investments. The company is using the proceeds from its IPO, carried out in July 2026, to strengthen working capital and reduce financial debt.

With the completion of the Esenyurt Factory-3 investment, the ratio of capital expenditures to sales is projected to decline from approximately 12.1 percent in 2026 to 1 percent by 2027. Going forward, capital expenditures are planned to be directed mainly toward routine maintenance and repair activities, the development of digital infrastructure, and the completion of the regional production facility in Kazakhstan.

Domestic Production and Cost Advantage with Factory-3

Esenyurt Factory-3, which has received its building occupancy permit, is targeted to be gradually brought online by the end of 2026 following validation and licensing processes. With the facility becoming operational, it is aimed to increase domestic production of probiotic microorganism strains and biotechnological active ingredients, thereby reducing dependency on imports. This step is expected to provide the company with a cost advantage against exchange rate fluctuations and potential supply chain disruptions.

Orzax CFO Yüksel Akarsu stated that they expect unit costs to decrease and the gross profit margin, currently in the range of 60-65 percent, to rise through vertical integration investments. Akarsu noted that they aim to reach a sustainable EBITDA margin above 30 percent in the medium to long term, adding that the decline in capital expenditures, the advantage in raw material costs, and increasing operating profitability will strengthen free cash flow.

Net Working Capital Exceeded TRY 3.2 Billion

Orzax’s net working capital exceeded TRY 3.2 billion in the first half of 2026, while its current ratio stood at 1.56. In the same period, the average supplier payment term was 58 days, and the collection period was 117 days. The company aims to increase working capital efficiency in the second half of the year through the contribution of IPO proceeds and the normalization of collection periods.

Liquidity management also holds an important place in Orzax’s financial strategy. Yüksel Akarsu stated that they aim to balance growth, investment, cash management, and risks during periods of heightened uncertainty, explaining the company’s approach as follows:

“In a period of high uncertainty, we achieve the balance between growth, investment, cash management, and risks through our principle of ‘Operational Agility and Dynamic Liquidity Management.’ Rather than proceeding with a single plan, we keep our liquidity buffers continuously up to date through multiple scenario modeling.”

Noting that they rapidly reduced net debt by easing short-term borrowing pressure during a period marked by high interest rates and tight financing conditions, Akarsu stated that they are focused on preserving a strong EBITDA margin and operational cash generation capacity. Akarsu also stated that while strengthening the portion of investments financed through equity, they will continue to direct their resources toward increasing production capacity, dermocosmetic activities, and vertical integration investments.

Orzax plans to use its financial structure, strengthened after the IPO, to develop production capacity, increase operational efficiency, and invest in new growth areas. Among the company’s 2027 targets, alongside revenue and EBITDA growth, increasing domestic production, reducing dependency on imports, and supporting sustainable cash flow stand out.