02.03.2020About the Collective Labor Agreement
The Collective Labor Agreement negotiations between our company and the Öz-Ağaç Labor Union have come to a successful conclusion. A 24-month Collective Labor Agreement was signed and it entered into force as of January 1, 2020.
Consequently, the wages and social rights of the employees under the Collective Labor Agreement have been improved on the following matters:
a) 16% improvement in wages and other benefits, effective as of January 1, 2020,
b) 1/4 bonus increase effective as of July 1, 2020,
c) Increase in wages in parallel with minimum wage raises (not to exceed CPI +4 points), effective as of January 1, 2021
d) 1/4 bonus increase effective as of July 1, 2021.
02.03.2020About the Negotiations of New Business Contracts
For the projects built as part of the 2022 World Cup preparations in Qatar, our Company has made a proposal of $2,500,000 (approximately 15,398,000 Turkish lira) for the supply of free-standing furniture for the first phase of the residential project in Qatar, and submitted a proposal of $570,000 (approximately 3,510,000 Turkish lira) for the supply of free-standing furniture for the first phase of the hotel project in Saudi Arabia.
The results of the proposal will be known within 60 days and the public will be informed about the developments.
11.02.2020About the Investment Incentive Certificate
Our company has applied for an Investment Incentive Certificate to the General Directorate of Incentive Implementation and Foreign Investment of the Ministry of Economy to increase its capacity and stimulate technology investments. Upon the assessment of the Ministry, our Company has been found eligible to receive the Investment Incentive Certificate.
Investment Incentive Certificate No. 508540 obtained for the Çanakkale Biga Production Facility covers an investment of 10,291,619 Turkish lira for machinery investment, building construction and other expenses.
Investment Incentive Certificate No. 508366 obtained for the Düzce Production Facility covers an investment of 5,918,597 Turkish lira for machinery investment, building construction and other expenses.
These Incentive Certificates provide the Company with:
- Support for Employer Share of Insurance Premiums,
- Support for Interest Payments,
- Tax Discount,
- VAT Exemptions,
- Customs Duty Exemptions.
04.02.2020Revision to Business Outlook
Pursuant to Article 10 of the Communiqué on Material Events Disclosure (15.1), our Company announced its expectations for the 2020 financial year with a PDP statement dated November 29, 2019.
On January 2, 2020, the VAT rate in the furniture industry was reduced from 18 percent to 8 percent by the Presidential Decree No. 1994. We evaluated the impact of the VAT reduction on our company and decided to revise our 2020 expectations. Accordingly, the estimated increase in the demand will be met by improving factory capacity, without constructing any additional buildings. Additionally, the Company posted 150 job openings.
Our Company’s 2020 expectations have been revised as follows:
- 37% - 40% growth in consolidated sales revenues,
- 13% - 15% growth in sales channels,
- 13% - 15% consolidated EBITDA margin.
03.02.2020About the Signing of a New Contract.
Our company and Tahincioğlu Gayrimenkul İnşaat ve Tur. A.Ş. have signed a contract for the manufacturing of bathroom cabinets for the Nida Park Küçükyalı Project being built in Istanbul, for an amount of 896,000 Turkish lira excluding VAT. Contractual work will be completed in three months.
16.01.2020About the Design Center Certificate
Our company has applied to the Ministry of Industry and Technology to obtain a design center certificate for the production facilities of the Kelebek brand located at Doğanlı Village, which is 9 km from Düzce. Accordingly, the Assessment and Audit Commission of the Ministry has granted a design center certificate to Kelebek.