AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

MİGROS TİCARET A.Ş.

Quarterly Report May 7, 2025

5940_rns_2025-05-07_f9c5ecff-807d-4880-8ce0-2f91860764d5.pdf

Quarterly Report

Open in Viewer

Opens in native device viewer

MİGROS TİCARET A.Ş.

CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(ORIGINALLY ISSUED IN TURKISH)

MİGROS TİCARET A.Ş.

INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AS OF 31 MARCH 2025

INTERIM CONSOLIDATED BALANCE SHEETS
1-3
INTERIM CONSOLIDATED STATEMENTS
OF PROFIT OR LOSS
4
INTERIM CONSOLIDATED
STATEMENTS
OF
OTHER COMPREHENSIVE INCOME
5
INTERIM CONSOLIDATED STATEMENTS
OF CHANGES IN EQUITY
6
INTERIM CONSOLIDATED STATEMENTS
OF CASH FLOWS
7-8
NOTES TO THE INTERIM CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS 9-43
NOTE 1 ORGANISATION AND NATURE OF OPERATIONS 9-10
NOTE 2 BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS 10-15
NOTE 3 PROPERTY, PLANT AND EQUIPMENT 16-17
NOTE 4 INTANGIBLE ASSETS 18
NOTE 5 RIGHT OF USE ASSETS 19
NOTE 6 INVENTORIES 20
NOTE 7 BORROWINGS 21-24
NOTE 8 PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES 24-26
NOTE 9 EMPLOYEE BENEFITS 26-27
NOTE 10 REVENUE 28
NOTE 11 EXPENSES BY NATURE 28-29
NOTE 12 OTHER OPERATING INCOME AND EXPENSES 30
NOTE 13 INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES 30
NOTE 14 FINANCIAL INCOME 31
NOTE 15 FINANCIAL EXPENSES 31
NOTE 16 TAX ASSET AND LIABILITIES 31-34
NOTE 17 CAPITAL, RESERVES AND OTHER EQUITY ITEMS 35
NOTE 18 RELATED PARTY DISCLOSURES 36-37
NOTE 19 EARNINGS PER SHARE 38
NOTE 20 EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION 38-41
NOTE 21 FINANCIAL INSTRUMENTS 41
NOTE 22 EXPLANATIONS REGARDING NET MONETARY POSITIONGAINS/(LOSSES) 42
NOTE 22 SUBSEQUENT EVENTS 42
APPENDIX - 1 EBITDA 43

MİGROS TİCARET A.Ş.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
31 March 2025
Audited
31 December 2024
ASSETS
Current assets:
Cash and cash equivalents 19,432,912 24,790,967
Financial investments 21,540 23,690
Trade receivables 1,686,882 1,538,755
-Trade receivables from related parties 18 12,722 69,435
-Trade receivables from third parties 1,674,160 1,469,320
Other receivables 1,584,892 1,198,628
-Other receivables from third parties 1,584,892 1,198,628
Inventories 6 32,188,032 34,286,991
Prepaid expenses 1,760,646 1,427,782
Current income tax assets 340,070 169,289
Other current assets 16 99,096 63,644
Total current assets 57,114,070 63,499,746
Non-current assets:
Financial investments 3,694,270 3,744,983
Other receivables 28,035 38,433
-Other receivables from third parties 28,035 38,433
Property, plant and equipment 3 35,760,193 35,575,974
Right of use assets 5 39,615,202 36,134,982
Intangible assets 24,356,098 24,360,182
-Goodwill 22,087,444 22,087,444
-Other intangible assets 4 2,268,654 2,272,738
Prepaid expenses 1,837,358 1,805,009
Total non-current assets 105,291,156 101,659,563
Total assets 162,405,226 165,159,309

MİGROS TİCARET A.Ş.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Unaudited Audited
Notes 31 March 2025 31 December 2024
LIABILITIES
Current liabilities:
Short-term borrowings 494,195 710,778
-Bank loans 7 494,195 710,778
Short-term portion of long-term
borrowings
4,708,503 4,598,056
-Bank loans 7 352,726 383,454
-Lease liabilities 4,355,777 4,214,602
Trade payables 57,251,705 63,515,858
-Trade payables to related parties 18 2,279,390 2,202,377
-Trade payables to third parties 54,972,315 61,313,481
Payables related to employee benefits 9 4,050,000 2,563,974
Other payables 1,286,109 2,828,759
-Other payables to third parties 1,286,109 2,828,759
Deferred income 2,047,335 1,915,024
Short-term provisions 1,826,762 2,027,241
-Short-term provisions for
employee benefits 9 1,460,007 1,489,468
-Other short-term
provisions
8 366,755 537,773
Total current liabilities 71,664,609 78,159,690
Non-current liabilities:
Long-term borrowings 20,153,266 17,909,661
-Bank loans 7 224,103 235,737
-Lease liabilities 19,929,163 17,673,924
Other payables 32,422 28,677
-Other payables to third parties 32,422 28,677
Deferred income 97,254 232,948
Long-term provisions 1,252,296 1,525,224
-Long-term provisions for
employee benefits 9 1,252,296 1,525,224
Deferrex tax liabilities 16 4,762,247 3,816,352
Total non-current liabilities 26,297,485 23,512,862
Total liabilities 97,962,094 101,672,552

MİGROS TİCARET A.Ş.

INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS AS OF 31 MARCH 2025 AND 31 DECEMBER 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
31 March 2025
Audited
31 December 2024
EQUITY
Attributable to equity holders of parent 63,982,246 63,076,314
Share capital 17 181,054 181,054
Share
capital adjustment differences
17 3,715,782 3,715,782
Treasury shares 17 (948,272) (948,272)
Other comprehensive income/(expense)
not to be classified to profit or loss (572,386) (549,892)
-Defined benefit plans
re-measurement (losses) (3,162,007) (3,162,007)
-Revaluation fund of property, plant and eqiupment 2,589,621 2,612,115
Other accumulated comprehensive income
to be classified to profit or loss 2,263,094 2,344,875
-Gains on financial assets measured
at fair value through other compherensive income 2,263,094 2,344,875
Dividend advances paid (568,725) (568,725)
Other reserves 1,935,690 1,904,666
Retained earnings 56,994,846 50,019,115
Net income
for the period
981,163 6,977,711
Non-controlling interests 460,886 410,443
Total equity 64,443,132 63,486,757
Total liabilities and equity 162,405,226 165,159,309

MİGROS TİCARET A.Ş.

CONDENSED CONSOLIDATED STATEMENTS OF PROFIT OR LOSS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
1 January -
31 March 2025
Unaudited
1 January -
31 March 2024
Revenue 10 78,436,533 72,318,474
Cost of sales (-) 10 (59,419,358) (57,688,995)
Gross profit 19,017,175 14,629,479
General administrative expenses (-) 11 (1,619,694) (1,528,723)
Marketing expenses (-) 11 (16,864,055) (14,763,807)
Other operating income 12 678,809 612,903
Other operating expenses
(-)
12 (4,245,291) (3,479,678)
Operating loss (3,033,056) (4,529,826)
Income from investment activities 13 - 2,577
Expenses from investment activities
(-)
13 (7,314) (8,335)
Operating loss
before financial expense
(3,040,370) (4,535,584)
Financial income 14 1,644,056 980,954
Financial expense
(-)
15 (2,445,806) (1,886,611)
Monetary gains 5,895,116 7,995,019
Net profit
before tax from continuing operations
2,052,996 2,553,778
Tax expense from continuing operations (1,021,390) (848,304)
Income tax expense (-) 16 (54,513) (66,465)
Deferred tax expense
(-)
16 (966,877) (781,839)
Profit from continuing activities 1,031,606 1,705,474
Profit from discontinued operations - 42,971
Net profit
for the period
1,031,606 1,748,445
Net
profit
attributable to:
-
Non-controlling interest
50,443 33,800
-
Equity holders of parent
19 981,163 1,714,645
Earnings per share ("TRY") from contiuning operations
Earnings per share ("TRY") from discounted operations
19 5.70
-
9.42
0.24

MİGROS TİCARET A.Ş.

CONDENSED CONSOLIDATED STATEMENTS OF OTHER COMPREHENSIVE INCOME FOR THE INTERIM PERIOD ENDED 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Unaudited
1 January -
31 March 2025
Unaudited
1 January -
31 March 2024
Net profit
for the period
1,031,606 1,748,445
Items that not to be reclassified
to profit or loss
- -
-Revaluation of fund of
property, plant and equipment
- -
Tax effect of items not to be reclassified
to profit or loss
6,550 6,842
-Revaluation of fund of
property, plant and equipment
(tax effect)
6,550 6,842
Items to be reclassified to profit or loss (96,213) (297,903)
at fair value through other comprehensive income
-Currency translation differences
(96,213)
-
(78,921)
(218,982)
Tax effect of items to be reclassified
-
Tax effect other comprehensive expense
on financial assets
23,677
23,677
Other comprehensive expense, after tax (75,231) (267,384)
Total comprehensive income 956,375 1,481,061
Total comprehensive income attributable to 956,375 1,481,061
-Non-controlling interests 50,443 33,800
-
Other comprehensive expense
on financial assets
to profit or loss
at fair value through other comprehensive income
-Equity holders of parent
14,432
14,432
905,932
1,447,261

MİGROS TİCARET A.Ş.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE INTERIM PERIOD ENDED 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Share capital
adjustment
differences
Other comprehensive
income and expenses
not to be reclassified
to profit or loss
Other comprehensive
income and expenses to be reclassified
to profit or loss
Retained earnings
Share
capital
Other
reserves
Treasury
shares
Defined benefit plans
revaluation and
measurement
losses
Increase of
revaluation fund
of property plant
and equipment
Gains on financial assets
at fair value
through other
comprehensive income
Currency
translation
differences
Dividend
advances
paid
earnings Net
Retained profit for the
period
Attributable
to equity
holders of
the parents
Non
controlling
interests
Balances as of 1 January 2024 181,054 3,715,782 1,576,166 (948,272) (2,610,102) 2,925,131 1,028,310 486,953 36,860,995 14,029,503 57,245,520 365,201 57,610,721
Transfers - - 397,869 - - (28,546) - - - 13,660,180 (14,029,503) - - -
Total comprehensive income - - - - - 6,842 (55,244) (218,982) - - 1,714,645 1,447,261 33,800 1,481,061
Net income for the period
Foreign currency translation differences
Revaluation and measurement losses/(gains)
Gain on revaluation and measurement
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(55,244)
-
(218,982)
-
-
-
-
-
-
-
1,714,645
-
-
1,714,645
(218,982)
(55,244)
33,800
-
-
1,748,445
(218,982)
(55,244)
property, plant and equipment - - - - - 6,842 - - - - - 6,842 - 6,842
Balances as of 31 March 2024 181,054 3,715,782 1,974,035 (948,272) (2,610,102) 2,903,427 973,066 267,971 - 50,521,175 1,714,645 58,692,781 399,001 59,091,782
Balances as of 1 January 2025 181,054 3,715,782 1,904,666 (948,272) (3,162,007) 2,612,115 2,344,875 - (568,725) 50,019,115 6,977,711 63,076,314 410,443 63,486,757
Transfers - - 31,024 - - (29,044) - - - 6,975,731 (6,977,711) - - -
Total comprehensive income - - - - - 6,550 (81,781) - - - 981,163 905,932 50,443 956,375
Net income for the period
Gain on revaluation and measurement
Revaluation fund of
-
-
-
-
-
-
-
-
-
-
-
-
-
(81,781)
-
-
-
-
-
-
981,163
-
981,163
(81,781)
50,443
-
1,031,606
(81,781)
property, plant and equipment - - - - - 6,550 - - - - - 6,550 - 6,550
Balances as of 31 March 2025 181,054 3,715,782 1,935,690 (948,272) (3,162,007) 2,589,621 2,263,094 - (568,725) 56,994,846 981,163 63,982,246 460,886 64,443,132

MİGROS TİCARET A.Ş.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE INTERIM PERIOD ENDED 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
1 January -
31 March 2025
Unaudited
1 January -
31 March 2024
Cash flows from operating activities:
Net profit for the period 1,031,606 1,748,445
Profit from continuing activities
Profit from discontinued operations
1,031,606
-
1,705,474
42,971
Adjustments related to reconciliation of
net profit for the period 8,375,521 6,298,850
Adjustments for depreciation and amortisation expenses 11 3,153,255 2,527,233
Adjustments for impairment on receivables 12 17,854 5,542
Adjustments for inventory provisions 6 48,338 (20,856)
Adjustments for impairment on property, plant and equipment 3,13 7,314 8,335
Adjustments for provision for employee benefits 9 259,329 203,421
Adjustments for provision for litigation 8 39,772 46,099
Adjustments for other provisions (136,310) (71,684)
Adjustments for interest income 14 (1,561,277) (787,221)
Adjustments for interest expense 15 2,362,288 1,770,645
Adjustments for deferred financing
due to forward purchases expenses 12 4,122,914 3,396,147
Adjustments for unearned finance income
from sales 12 (435,852) (561,228)
Adjustments for unrealized foreign exchange differences 7 - 13,360
Adjustments for fair value losses
arising from derivatives 15 - 19,362
Adjustments for income tax expense 16 1,021,390 848,304
Gains on sale of
property plant and equipment 13 - (2,577)
Adjustments for monetary gain (523,494) (1,096,032)
Changes in net working capital (5,449,905) 2,458,351
Adjustments for (decrease) in trade receivables (121,103) (955,334)
Adjustments for decrease in inventories 2,050,621 3,568,399
Adjustments for (increase) in other receivables
related with operations (839,712) (506,619)
Adjustments for decrease in trade payables (6,415,342) (4,356,531)
Adjustments for decrease in other payables
related with operations (124,369) 4,708,436
Cash flows from operating activities 3,957,222 10,505,646
Employee benefits paid 9 (285,291) (470,375)
Interest received 410,268 562,107
Interest paid (3,971,725) (3,895,084)
Taxes paid (274,657) (47,412)
Other provisions paid (4,960) (80,119)
Net cash provided by operating activities (169,143) 6,574,763

MİGROS TİCARET A.Ş.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE INTERIM PERIOD ENDED 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

Notes Unaudited
1 January -
31 March 2025
Unaudited
1 January -
31 March 2024
Investing activities
Cash outflows from the purchase of
tangible and intangible assets 3, 4 (1,587,009) (2,437,976)
Cash inflows from the sale of
tangible and intangible assets
Cash inflows from disposal of subsidiaries - 10,238
Obtaining control of subsidiaries
cash outflows for purchases (45,500) -
Cash flows from investing activities (1,632,509) (2,427,738)
Financing activities
Cash outflows from repayments of borrowings 7 (152,288) (705,441)
Interest received 14 1,561,277 787,221
Interest paid (1,382,538) (1,107,031)
Cash outflows from payments
of rent agreements (1,607,916) (1,031,593)
Cash flows from financing activities (1,581,465) (2,056,844)
Monetary loss on cash and cash equivalents (1,980,603) (2,263,486)
Effect of foreign currency translation
differences on cash and cash equivalents 5,665 (82,067)
Net decrease in cash and cash equivalents (5,358,055) (255,372)
Cash and cash equivalents at the begining of the period 24,790,967 19,632,844
Cash and cash equivalents at the end of the period 19,432,912 19,377,472

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 1 - ORGANISATION AND NATURE OF OPERATIONS

Migros Ticaret A.Ş., (collectively referred to as "Migros" or the "Company"), was established on 19 March 2008 and is registered in Istanbul, Turkey under the Turkish Commercial Code. (Migros Türk Ticaret Anonim Şirketi, which was established in 1954, merged with its parent company Moonlight Perakendecilik ve Ticaret Anonim Şirketi ("Moonlight Perakendecilik") on 30 April 2009 and the trade name of Moonlight Retailing was changed as Migros Ticaret A.Ş.)

The Company and its subsidiaries together will be referred as "the Group".

The company is controlled by AG Anadolu Grubu Holding A.Ş., its parent company. AG Anadolu Grubu Holding A.Ş. is controlled by AG Sınai Yatırım ve Yönetim A.Ş., and AG Sınai Yatırım ve Yönetim A.Ş. is a management company that ultimately manages, with equal representation of and by way of equal management by the Süleyman Kamil Yazıcı family and the Özilhan family, the affiliates of AG Anadolu Grubu Holding A.Ş. AG Anadolu Grubu Holding A.Ş. holds a 50% indirect share.

The Group is mainly engaged in retail sales in food & beverages, consumer goods and wholesale. Other than that the Group is also engaged in online food retailing, takeout food, payment and e-money services, logistic (motorcycle courier) services, media (marketing of media assets) and shopping mall management.

As of 31 March 2025, the Group has a total sales area of 2,043,272 m2 (31 December 2024: 2,031,904 m2) with a retail store area of 2,020,699 m2 and a wholesale store area of 22,573 m2, 3,613 retail stores and 29 wholesale stores, operates in a total of 3,642 (31 December 2024: 3,621) stores. As of the end of the period as of 31 March 2025, the total number of employees of the Group is 53,748. (31 December 2024: 53,328). Retailing is the Group's core business, accounting for approximately 97% (31 December 2024: 97%) of gross sales.

The address of the registered office is as follows:

Migros Ticaret A.Ş. Atatürk Mah., Turgut Özal Blv. No: 7 Ataşehir İstanbul

These interim condensed consolidated financial statements have been approved for issue by the Board of Directors ("BOD") on 7 May 2025 and signed by Ö. Özgür Tort, General Manager, and Ferit Cem Doğan, Assistant General Manager, on behalf of the BoD. The owners of the Company and regulatories have the power to amend the consolidated financial statements after the issue in the General Assembly meeting of the Company.

Subsidiaries:

The Company has the following subsidiaries (the "Subsidiaries"). The nature of the business of the Subsidiaries and for the purpose of the consolidated financial statements, their respective geographical segments are as follows:

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 1 - ORGANISATION AND NATURE OF OPERATIONS (Continued)

Subsidiaries incorporation Country of Geographical
segment
Nature of
business
31 March
2025 (%)
31 December
2024 (%)
Moneypay Finansal Teknoloji ve
Yapay Zeka A.Ş. (**)
Turkey Turkey Corporate
payment
service
63.0 -
Mimeda Medya Platform A.Ş. Turkey Turkey Media 100.0 100.0
Moneypay Ödeme ve
Elektronik Para Hizmetleri
A.Ş.
Turkey Turkey Services limited
by e-money
legislation
80.0 80.0
Paket Lojistik ve Teknoloji
A.Ş.
Turkey Turkey Logistics 98.7 98.7
Dijital Platform Gıda
Hizmetleri A.Ş.
Turkey Turkey Online
food retaling
93.0 93.0
Migen Enerji ve Elektrikli
Şarj Hizmetleri A.Ş. (*)
Turkey Turkey Charging
service
100.0 100.0
CRC Danışmanlık ve
Organizasyon A.Ş.
Turkey Turkey Packaged
food production
48.6 48.6

(*) Considering the concept of monetary significance, it has not been included in the scope of consolidation.

(**) In March 2025, a new subsidiary titled "Moneypay Finansal Teknoloji ve Yapay Zeka A.Ş." was established to operate in the field of corporate payment services including third party distributor payment, supplier financing, etc. Migros and Moneypay own 55% and 10% of the new subsidiary, respectively.

NOTE 2 - BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

2.1 Basis of Presentation

2.1.1 Basis of preperation and presentation of financial statements

The companies of the Group operating in Turkey keep their accounting records and legal financial statements in accordance with the accounting and financial reporting standards ("CMB Financial Reporting Standards") accepted by the Capital Markets Board ("CMB"), Turkish Commercial Code ("TTK") and in Turkish Lira in accordance with the provisions of the Tax Legislation and the requirements of the Uniform Chart of Accounts published by the Ministry of Finance. The subsidiary operating abroad, on the other hand, prepares its accounting records and statutory financial statements in accordance with the laws and regulations of the country in which it operates.

The interim condensed consolidated financial statements are based on the statutory financial statements of the Group's subsidiaries and presented in Turkish Lira in accordance with the CMB financial reporting standards with certain adjustments and reclassifications for the purpose of fair presentation. Such adjustments are primarily related to application of consolidation accounting, accounting for deferred taxes on temporary differences, accounting for employment termination benefits on an actuarial basis and accruals for various expenses. Except for the financial assets carried from their fair values and assets and liabilities, financial statements are prepared on historical cost basis.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1 Basis of Presentation (Continued)

The interim condensed consolidated financial statements have been prepared in accordance with the provisions of the Capital Markets Board's Communiqué Series II, No. 14.1 "Principles of Financial Reporting in the Capital Markets" ("Communiqué") published in the Official Gazette dated 13 June 2013 and numbered 28676. Pursuant to Article 5, the Turkish Financial Reporting Standards, which were put into effect by the Public Oversight, Accounting and Auditing Standards Authority, and their annexes and comments are taken as basis.

In the scope of the CMB's "Communiqué on Financial Reporting in Capital Market" Numbered II- 14.1 (Communiqué), the Group has prepared condensed consolidated interim financial statements in accordance with TAS 34 "Interim Financial Reporting". The financial statements and explanatory notes are presented using the compulsory standard formats as published by the Communiqué. In accordance with the TAS, the entities are allowed to prepare a complete set of interim financial statements in accordance with TAS 34, "Interim Financial Reporting". In this respect the Group has preferred to prepare condensed consolidated financial statements in the interim periods and prepared the aforementioned condensed consolidated financial statements in compliance with CMB Financial Reporting Standards.

Furthermore in accordance with the Communiqué and announcements regarding the explanations of the Communiqué, guarantee pledge, mortgage table, foreign currency position table, total export and total import amounts and hedging amount of total foreign currency liabilities are presented in the interim condensed consolidated financial statements disclosures (Note 8, 20).

2.1.2 Comparative information and restatement of prior period financial statements

The consolidated financial statements of the Group are prepared comparatively with the previous period in order to enable the determination of financial position and performance trends. In order to comply with the presentation of the current period interim consolidated financial statements, comparative information is reclassified when deemed necessary and significant differences are disclosed.

2.1.3 Changes in the accounting policies, estimates and errors

In case of changes and errors in accounting policies and accounting estimates, significant changes made, and significant accounting errors identified are applied retrospectively and prior period financial statements are restated. Changes in accounting estimates are applied in the current period when the change is made if they are related to only one period, and if they are related to future periods, they are applied both in the period when the change is made and prospectively.

2.1.4 Functional and reporting currency

Items included in the financial statements of each of the Group's entities are measured using the currency of the primary economic environment in which the entity operates ("the functional currency"). The consolidated financial statements are presented in TRY, which is the functional currency of Migros Ticaret A.Ş. and the reporting currency of the Group.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.1 Basis of Presentation (Continued)

Group companies

The results and financial position of foreign operations (none of which has the currency of a hyperinflationary economy) that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • Assets and liabilities for each balance sheet presented are translated at the closing rate at the date of that balance sheet,
  • Income and expenses for each statement of profit or loss and statement of comprehensive income are translated at average exchange rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction dates, in which case income and expenses are translated at the dates of the transactions),
  • All resulting exchange differences are recognised in other comprehensive income.

2.2 Financial reporting in hyperinflationary economy

With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2024, entities applying TFRSs have started to apply inflation accounting in accordance with TAS 29 Financial Reporting in Hyperinflation Economies as of financial statements for the interim reporting period ending on or after 31 March 2025. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy. According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of 31 March 2024 and 31 December 2024, on the purchasing power basis as of 31 March 2025.

Pursuant to the decision of the Capital Markets Board (SPK) dated 28 December 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29 starting from their annual financial reports for the periods ending on 31 December 2023.

The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute ("TÜİK"). As of 31 March 2025, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:

Date Index Coefficient Three year compound
interest rate
31.03.2025 2,954.69 1.00000 250%
31.12.2024 2,684.55 1.10063 291%
31.03.2024 2,139.47 1.38104 309%

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.2 Financial reporting in hyperinflationary economy (Continued)

The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows:

  • Current period consolidated financial statements prepared in TRY are expressed in terms of the purchasing power at the balance sheet date, and amounts from previous reporting periods are also adjusted and expressed in terms of the purchasing power at the end of the reporting period.
  • Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed their recoverable amount or net realizable value, the provisions of TAS 36 "Impairment of Assets" and TAS 2 "Inventories" are applied, respectively.
  • Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
  • All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements.
  • The impact of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary gains/(loss) account in the consolidated income statement.

The outline of the TAS 29 indexing operations is as follows:

  • All items other than those shown with current purchasing power as of the balance sheet date are indexed using the relevant price index coefficients. Amounts from previous years are also indexed in the same way.
  • Monetary asset and liability items are not subject to indexation because they are expressed in purchasing power at the current balance sheet date. Monetary items are cash and items to be received or paid in cash.
  • 2.3 New and Amended Turkish Financial Reporting Standards

a) Standards, amendments, and interpretations applicable as of 31 March 2025:

Amendments to IAS 21 - Lack of Exchangeability; effective from annual periods beginning on or after 1 January 2025. An entity is impacted by the amendments when it has a transaction or an operation in a foreign currency that is not exchangeable into another currency at a measurement date for a specified purpose. A currency is exchangeable when there is an ability to obtain the other currency (with a normal administrative delay), and the transaction would take place through a market or exchange mechanism that creates enforceable rights and obligations.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

  • 2.3 New and Amended Turkish Financial Reporting Standards (Continued)
  • b) Standards, amendments, and interpretations that are issued but not effective as of 31 March 2025:
  • Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments:
    • clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
    • clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
    • add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
    • make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).
  • Annual improvements to IFRS – Volume 11; effective from annual periods beginning on or after 1 January 2026 (earlier application permitted). Annual improvements are limited to changes that either clarify the wording in an Accounting Standard or correct relatively minor unintended consequences, oversights or conflicts between the requirements in the Accounting Standards. The 2024 amendments are to the following standards:
    • IFRS 1 First-time Adoption of International Financial Reporting Standards;
    • IFRS 7 Financial Instruments: Disclosures and its accompanying Guidance on implementing IFRS 7;
    • IFRS 9 Financial Instruments;
    • IFRS 10 Consolidated Financial Statements; and
    • IAS 7 Statement of Cash Flows.
  • Amendment to IFRS 9 and IFRS 7 - Contracts Referencing Nature-dependent Electricity; effective from annual periods beginning on or after 1 January 2026 but can be early adopted subject to local endorsement where required. These amendments change the 'own use' and hedge accounting requirements of IFRS 9 and include targeted disclosure requirements to IFRS 7. These amendments apply only to contracts that expose an entity to variability in the underlying amount of electricity because the source of its generation depends on uncontrollable natural conditions (such as the weather). These are described as 'contracts referencing nature-dependent electricity'.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.3 New and Amended Turkish Financial Reporting Standards (Continued)

  • IFRS 18 Presentation and Disclosure in Financial Statements; effective from annual periods beginning on or after 1 January 2027. This is the new standard on presentation and disclosure in financial statements, with a focus on updates to the statement of profit or loss. The key new concepts introduced in IFRS 18 relate to:
    • the structure of the statement of profit or loss;
    • required disclosures in the financial statements for certain profit or loss performance measures that are reported outside an entity's financial statements (that is, managementdefined performance measures); and
    • enhanced principles on aggregation and disaggregation which apply to the primary financial statements and notes in general.
  • IFRS 19 Subsidiaries without Public Accountability: Disclosures; effective from annual periods beginning on or after 1 January 2027. This new standard works alongside other IFRS Accounting Standards. An eligible subsidiary applies the requirements in other IFRS Accounting Standards except for the disclosure requirements and instead applies the reduced disclosure requirements in IFRS 19. IFRS 19's reduced disclosure requirements balance the information needs of the users of eligible subsidiaries' financial statements with cost savings for preparers. IFRS 19 is a voluntary standard for eligible subsidiaries. A subsidiary is eligible if:
    • it does not have public accountability; and
    • it has an ultimate or intermediate parent that produces consolidated financial statements available for public use that comply with IFRS Accounting Standards.

These changes are not expected to have a significant impact on the financial status and performance of the Group.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 3 - PROPERTY, PLANT AND EQUIPMENT

Movement of property, plant and equipments period ended on 31 March 2025 is as follows;

1 January
2025
Additions Disposals Impairment loss
(*)
Transfers 31 March
2025
Cost
Land 2,344,378 - - - - 2,344,378
Buildings 5,101,760 1,874 - - - 5,103,634
Leasehold improvements 19,906,269 104,238 - (8,835) 23,914 20,025,586
Machinery and equipments 26,516,544 342,728 - - 54,643 26,913,915
Motor vehicles 945,286 9,078 - - - 954,364
Furniture and fixtures 12,516,045 467,201 - - 701,064 13,684,310
Construction in progress 2,301,931 530,102 - - (779,621) 2,052,412
69,632,213 1,455,221 - (8,835) - 71,078,599
Accumulated depreciation
Buildings (498,112) (37,023) - - - (535,135)
Leasehold improvements (13,318,073) (441,746) - 1,521 - (13,758,298)
Machinery and equipments (13,212,120) (538,342) - - - (13,750,462)
Motor vehicles (368,604) (24,863) - - - (393,467)
Furniture and fixture (6,659,330) (221,714) - - - (6,881,044)
(34,056,239) (1,263,688) - 1,521 - (35,318,406)
Net book value 35,575,974 35,760,193

(*) Impairment loss amounting to TRY 7,314 consists of leasehold improvements of the stores closed in 2025 (Note 13).

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 3 - PROPERTY, PLANT AND EQUIPMENT (Continued)

Movement of property, plant and equipments period ended on 31 March 2024 is as follows:

Consolidation Currency
1 January for the Impairment translation 31 March
2024 Additions first time Disposals(-) loss(*) Transfers differences 2024
Cost
Lands 3,031,638 - - - - - (34,903) 2,996,735
Buildings 5,950,614 24,976 - - - - (29,931) 5,945,659
Leasehold improvements 17,736,264 254,150 1,382 - (15,720) - - 17,976,076
Machinery and equipments 23,184,300 963,268 116,232 - - - (6,918) 24,256,882
Motor vehicles 945,245 8,328 2,896 - - - - 956,469
Furniture and fixtures 10,746,390 297,968 11,041 (4,160) - - (1,895) 11,049,344
Construction in progress 1,517,530 719,199 26,723 - - - - 2,263,452
63,111,981 2,267,889 158,274 (4,160) (15,720) - (73,647) 65,444,617
Accumulated depreciation
Buildings (456,017) (43,369) - - - - (121,728) (621,114)
Leasehold improvements (11,928,511) (348,202) (1,189) - 7,385 - - (12,270,517)
Machinery and equipments (12,113,806) (466,630) (49,882) - - - 5,813 (12,624,505)
Motor vehicles (261,558) (25,457) (3,160) - - - - (290,175)
Furniture and fixture (6,102,443) (191,945) (7,032) 2,103 - - 1,844 (6,297,473)
(30,862,335) (1,075,603) (61,263) 2,103 7,385 - (114,071) (32,103,784)
Net book value 32,249,646 33,340,833

(*) Impairment loss amounting to TRY 8,335 consists of leasehold improvements of the stores closed in 2024 (Note:13).

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 4 - INTANGIBLE ASSETS

Movement of intangible assets period ended on 31 March 2025 and 2024 are as follows;

1 January
2025
Additions Consolidation
for the
first time
Disposals (-) Currency
translation
differences
31 March
2025
Cost
Trademark
Rent agreements
11,988
168,308
-
-
-
-
-
-
-
-
11,988
168,308
Rights
Other intangible
5,593,465 89,697 - - - 5,683,162
assets 2,409,646 42,091 - - - 2,451,737
8,183,407 131,788 - - - 8,315,195
Accumulated amortisation
Rent agreements
Rights
Other intangible
(168,308)
(3,826,787)
-
(131,638)
-
-
-
-
-
-
(168,308)
(3,958,425)
assets (1,915,574) (4,234) - - - (1,919,808)
(5,910,669) (135,872) - - - (6,046,541)
Net book value 2,272,738 2,268,654
1 January
2024
Additions Consolidation
for the
first time
Disposals (-) Currency
translation
differences
31 March
2024
Cost
Trademark
Rent agreements
Rights
Other intangible
11,987
168,309
4,454,880
-
-
60,528
-
-
2,374
-
-
-
-
-
-
11,987
168,309
4,517,782
assets 2,323,766 109,559 21 (20,314) 9,164 2,422,196
6,958,942 170,087 2,395 (20,314) 9,164 7,120,274
Accumulated amortisation
Rent agreements
Rights
Other intangible
(168,308)
(3,160,270)
-
(28,375)
-
(1,663)
-
-
-
-
(168,308)
(3,190,308)
assets (1,916,268) (59,697) (20) 16,339 (4,940) (1,964,586)
(5,244,846) (88,072) (1,683) 16,339 (4,940) (5,323,202)
Net book value 1,714,096 1,797,072

Amortisation expenses related to intangible assets have been accounted under marketing expenses.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 5 - RIGHT OF USE ASSETS

For 31 March 2025 and 2024, movement on right of use assets is as follows;

Cost 1 January
2025
Additions Disposals 31 March
2025
Buildings 60,611,823 5,374,100 (248,701) 65,737,222
60,611,823 5,374,100 (248,701) 65,737,222
Accumulated amortisation
Buildings (24,476,841) (1,753,695) 108,516 (26,122,020)
(24,476,841) (1,753,695) 108,516 (26,122,020)
Net book value 36,134,982 39,615,202
Cost 1 January
2024
Additions Disposals 31 March
2024
Buildings 45,177,781 4,880,809 (326,557) 49,732,033
45,177,781 4,880,809 (326,557) 49,732,033
Accumulated amortisation
Buildings (19,393,311) (1,369,019) 166,744 (20,595,586)
(19,393,311) (1,369,019) 166,744 (20,595,586)
Net book value 25,784,470 29,136,447

Amortisation expenses related to right of use asset have been accounted under marketing expenses.

The Group earned revenue of TRY65,030 (2024: TRY48,688) from sub-leasing transactions.

Short-term lease liabilities
31 March
2025
31 December 2024
Lease liabilities 4,355,777 4,214,602
4,355,777 4,214,602
Long-term lease liabilities
31 March 2025 31 December 2024
Lease liabilities 19,929,163 17,673,924
19,929,163 17,673,924

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 6 - INVENTORIES

31 March 2025 31 December 2024
Finished goods and commodities 31,564,993 33,822,723
Work in progress 685,994 617,799
Raw materials 467,078 326,530
Other 91,443 93,077
Less: Provision for net realiazable value (621,476) (573,138)
32,188,032 34,286,991

Movement of impairment on inventory is as follows:

2025 2024
Beginning of the period, 1 January 573,138 724,444
Charge for the period 182,485 189,088
Provisions released (-) (134,147) (209,944)
End of the period, 31 March 621,476 703,588

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 7 - BORROWINGS

31 March 2025
Effective In original Total TRY
interest rate
(%)
currency equivalent
Short-term borrowings
Fixed interest rate -
TRY
31.77 494,195 494,195
Total short-term borrowings 494,195
Current portion of
long-term borrowings
Floating
interest rate -
TRY
53.54 352,726 352,726
Total current portion of
long-term borrowings
352,726
Total short-term borrowings 846,921
Long-term
borrowings
Floating
interest rate -
TRY
53.54 224,103 224,103
Total long-term
borrowings
224,103
Total financial liabilities 1,071,024

The redemption schedule of borrowings with effective interest rate on 31 March 2025 is as follows:

TRY Loan Total
TRY equivalent
1 April 2025 - 31 March 2026 846,921 846,921
1 April 2026 - 14 December 2026 224,103 224,103
1,071,024 1,071,024

The fair value of borrowings on 31 March 2025 is TRY895,690.

The redemption schedule of principal amounts of borrowings on 31 March 2025 is as follows:

TRY Loan Total
TRY equivalent
1 April 2025 - 31 March 2026 671,705 671,705
1 April 2026 – 14 December 2026 235,408 235,408
907,113 907,113

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 7 - BORROWINGS (Continued)

The redemption schedule of contractual cash outflows, which consists of principal and interest, of borrowings on 31 March 2025 is as follows:

Total
TRY Loan TRY equivalent
1 April 2025 -
31 March 2026
1,155,235 1,155,235
1 April 2026 –
14 December
2026
362,846 362,846
1,518,081 1,518,081

The Group has the obligation to comply with the various credit commitments in the loan agreement in the interest of the said bank credits. The financial ratios calculated on the financial statements as of 31 March 2025 are in line with the provisions of the bank loan agreement.

The movement schedule of borrowings as of 31 March 2025 and 2024 are as follows;

2025 2024
Beginning of the period, 1 January 1,329,969 3,208,623
Payments (-) (152,288) (705,441)
Foreign exchange losses - 13,360
Changes
in interest accrual
(45,320) 66,171
Monetary gain (61,337) (400,541)
End of the period, 31 March 1,071,024 2,182,172

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 7 - BORROWINGS (Continued)

31 December 2024
Effective In original
currency
Total TRY
equivalent
interest rate
(%)
Short-term borrowings
Fixed interest rate -
TRY
27.49 710,778 710,778
Total short-term borrowings 710,778
Current portion of
long-term borrowings
Floating
interest rate -
TRY
60.07 383,454 383,454
Total current portion of
long-term borrowings
383,454
Total short-term borrowings 1,094,232
Long-term
borrowings
Floating
interest rate -
TRY
60.07 235,737 235,737
Total long-term
borrowings
235,737
Total financial liabilities 1,329,969

The redemption schedule of borrowings with effective interest rate on 31 December 2024 is as follows:

TRY Loan Total
TRY equivalent
1 January
2025
-
31 December
2025
1,094,232 1,094,232
1 January
2026

14 December
2026
235,737 235,737
1,329,969 1,329,969

The fair value of borrowings on 31 December 2024 is TRY1,099,046.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 7 - BORROWINGS (Continued)

The redemption schedule of principal amounts of borrowings on 31 December 2024 is as follows:

TRY Loan Total
TRY equivalent
1 January
2025
-
31 December
2025
905,729 905,729
1 January
2026
-
14
December
2026
259,098 259,098
1,164,827 1,164,827

The redemption schedule of contractual cash outflows, which consists of principal and interest, of borrowings on 31 December 2024 is as follows:

TRY Loan Total
TRY equivalent
1 January
2025
-
31 December
2025
1,302,281 1,302,281
1 January
2026
-
14
December
2026
416,468 416,468
1,718,749 1,718,749

NOTE 8 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES

Short-term provisions 31 March
2025
31 December
2024
Provision for litigation 330,715 340,820
Provision for customer loyalty programs 36,040 14,375
Provision for invoice - 182,578
366,755 537,773

There are various lawsuits filed against or in favour of the Group, receivables, rent, or labour disputes constitute the majority of these lawsuits. The Group management estimates the outcomes of these lawsuits and estimates their financial impact according to which the necessary provisions are accounted.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 8 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES (Continued)

Movements in the provision for litigation during the period are as follows:

2025 2024
Beginning of the period, 1 January 340,820 230,098
Increase during period 39,772 46,099
Payments (-) (24,551) (21,032)
Monetary gain (25,326) (38,182)
End of the period, 31 March 330,715 216,983

Collaterals, Pledges, Mortgages

31 March 2025:

Total
TRY
equivalent
TRY USD EUR
A,
CPM given on behalf of the Company's
legal personality
B,
CPM given on behalf of fully consolidated
subsidiaries
3,434,261
-
3,411,308
-
542
-
60
-
Total collaterals, pledges and mortgages 3,434,261 3,411,308 542 60
31 December 2024:
Total
TRY equivalent TRY USD EUR
A,
CPM given on behalf of the Company's
legal personality 3,669,782 3,658,002 310 22
B,
CPM given on behalf of fully consolidated
subsidiaries - - - -
Total collaterals, pledges and mortgages 3,669,782 3,658,002 310 22

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 8 - PROVISIONS, COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES (Continued)

Contingent assets and liabilities

Guarantees given on 31 March 2025 and 31 December 2024 are as follows:

31 March
2025
31 December
2024
Letter of guarantees given 3,434,261 3,669,782
3,434,261 3,669,782

Guarantees received on 31 March 2025 and 31 December 2024 are as follows:

31 March
2025
31 December
2024
Guarantees obtained from customers 2,992,891 2,347,246
Mortgages obtained from customers 366,094 359,905
3,358,985 2,707,151
NOTE
9
-
EMPLOYEE BENEFITS
31 March 31 December
2025 2024
Payables to personnel 2,087,697 1,703,432
Social security payables 1,962,303 860,542
4,050,000 2,563,974
31 March 31 December
2025 2024
Provision for unused vacation 1,460,007 1,489,468
Provision for employment termination benefits 1,252,296 1,525,224
2,712,303 3,014,692

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 9 - EMPLOYEE BENEFITS (Continued)

Movement of provision for unused vacation for the periods ended on 31 March 2025 and 2024 is as follows:

2025 2024
1,490,156
Beginning of the period,
1 January
1,489,468
Increase during period 165,788 106,721
Used in period(-) (56,989) (104,931)
Monetary gain (138,260) (195,855)
End of the period, 31 March 1,460,007 1,296,091

Movement of provision for employee termination benefits for the periods ended on 31 March 2025 and 2024 is as follows:

2025 2024
Beginning of the period, 1 January 1,525,224 1,899,500
Service cost 34,742 41,333
Interest cost 58,799 55,367
Payments (-) (228,302) (365,444)
Monetary gain (138,167) (232,670)
End of the period, 31 March 1,252,296 1,398,086

Provision for employment termination benefits

Under the Turkish Labour Law, the Company is required to pay termination benefits to each employee who has completed one year of service and who reaches the retirement age, whose employment is terminated without due cause, is enlisted for military service, or passed away. The termination benefit to be paid is one month wage per a service year up to the maximum employment termination benefit.

In the interim condensed consolidated financial statements as of 31 March 2025 and consolidated financial statements as of 31 December 2024, the Group reflected a liability calculated using the projected unit credit method and based upon factors derived using their experience of personnel terminating their services and being eligible to receive retirement pay and discounted by using the current market yield at the balance sheet date on government bonds.

The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. As the maximum liability is revised once every six months, the maximum amount of TRY 46,655.43 effective from 1 January 2025 has been taken into consideration in calculating the reserve for employment termination benefit of the Group.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 10 - REVENUE

1 January -
31 March 2025
1 January -
31 March 2024
Domestic sales 79,604,611 73,312,649
Other sales 167,324 129,403
Gross sales 79,771,935 73,442,052
Discounts and returns (-) (1,335,402) (1,123,578)
Sales revenue, net 78,436,533 72,318,474
Cost of sales
(-)
(59,419,358) (57,688,995)
Gross profit 19,017,175 14,629,479

Details of domestic and foreign sales before other sales, discounts and returns are as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Retail sales 77,542,240 70,303,665
Wholesale sales 1,752,599 2,677,932
Rent income 309,772 331,052
79,604,611 73,312,649

NOTE 11 - EXPENSES BY NATURE

1 January - 1 January -
31 March 2025 31 March 2024
Personnel expenses 9,494,550 8,487,550
Depreciation and amortisation expenses 3,153,255 2,527,233
Rent and common area
expenses
(*)
2,024,360 1,860,024
Energy
expenses
692,157 729,558
Information technology maintenance
expenses
671,535 520,859
Porterage and cleaning expenses 628,723 560,858
Advertising
expenses
610,722 425,387
Security
expenses
223,651 183,320
Repair and maintanence
expenses
165,415 150,308
Taxes and other fee
expenses
73,147 72,743
Communication
expenses
72,342 112,890
Other 673,892 661,800
18,483,749 16,292,530

(*) 1,586 million TRY of rent expenses in 2025 is related to variable leases, 175 million TRY is related to short-term leases, 173 million TRY is related to low value leases and 173 million TRY is related to common area expenses.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 11 - EXPENSES BY NATURE (Continued)

Marketing expenses 1 January - 1 January -
31 March 2025 31 March 2024
Personnel expenses 8,340,563 7,266,325
Depreciation and amortisation expenses 3,153,255 2,527,233
Rent and common area
expenses
1,968,974 1,842,170
Energy
expenses
685,609 720,874
Advertising
expenses
610,721 425,387
Porterage and cleaning expenses 610,324 543,717
Information technology maintenance expenses 476,522 488,452
Security
expenses
213,758 175,784
Repair and maintenance expenses 162,169 147,139
Communication
expenses
67,776 108,990
Taxes and other fee
expenses
58,302 61,478
Other 516,082 456,258
16,864,055 14,763,807
General administrative expenses 1 January - 1 January -
31 March 2025 31 March 2024
Personnel expenses 1,153,987 1,221,225
Other 465,707 307,498
1,619,694 1,528,723

Expenses by nature in cost of sales for the periods 1 January - 31 March 2025 and 2024 are as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Cost of goods sold 59,013,417 57,408,518
Cost of service rendered 405,941 280,477
59,419,358 57,688,995

Cost of trade goods include discounts, incentives and volume rebates obtained from suppliers. Service costs comprise energy, advertising, cleaning, security and administrative expenses incurred in the Group's shopping malls.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 12 - OTHER OPERATING INCOME AND EXPENSES

Other operating income 1 January -
31 March 2025
1 January -
31 March 2024
Interest income on term sales 435,852 561,228
Other 242,957 51,675
678,809 612,903
Other operating expenses 1 January -
31 March 2025
1 January -
31 March 2024
Interest expense on term purchases (*) 4,122,914 3,396,147
Litigation provision 39,772 46,099
Bad debt provision expense 17,854 5,542
Other 64,751 31,890
4,245,291 3,479,678

(*) Forward purchases are discounted to the assumed cash value with relevant GDS interest rates separately for each month, and as a result, forward purchase interest expenses are calculated. Average interest rate in 2025 is 43.9% (2024 45.5%)

NOTE 13 - INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES

Income from investing activities 1 January -
31 March 2025
1 January -
31 March 2024
Gain on sale of property, plant, and equipment - 2,577
- 2,577
Expense from investing activities 1 January -
31 March 2025
1 January -
31 March 2024
Losses from leasehold improvements
of closed stores (Note 3)
7,314 8,335
7,314 8,335

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 14 - FINANCIAL INCOME

1 January -
31 March 2025
1 January -
31 March 2024
Interest income on bank deposits 1,561,277 787,221
Foreign exchange gains 82,779 193,733
1,644,056 980,954

NOTE 15 - FINANCIAL EXPENSE

1 January -
31 March 2025
1 January -
31 March 2024
Credit card commision expense 1,277,784 960,018
Interest expense on lease liabilities 1,025,070 608,985
Interest expense on bank borrowings 59,434 201,642
Interest expense on provision for
employment termination benefits 58,799 55,367
Foreign exchange losses 10,371 24,467
Financial expense on derivatives - 19,362
Other 14,348 16,770
2,445,806 1,886,611

NOTE 16 - TAX ASSETS AND LIABILITIES

31 March 2025 31 December 2024
Corporate and income taxes payable 264,129 519,066
Less: Prepaid current income taxes (604,199) (688,355)
Current tax liabilities (340,070) (169,289)

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 16 - TAX ASSETS AND LIABILITIES (Continued)

31 March 2025 31 December 2024
Deferred tax assets 1,898,547 2,538,055
Deferred tax liabilities (6,660,794) (6,354,407)
Deferred tax liabilities, net (4,762,247) (3,816,352)

General Information

The Group is subject to taxation in accordance with the tax regulations and the legislation effective in the countries in which the Group companies operate. In Turkey, the tax legislation does not permit a parent company and its subsidiaries to file a consolidated tax return. Therefore, provision for taxes, as reflected in the consolidated financial statements, has been calculated on a separate-entity basis.

In Turkey, corporate tax rate is 25% (31 December 2024: 25%).

The Group calculates deferred income tax assets and liabilities based on the temporary difference between the financial statements prepared in accordance with TFRS and the financial statements prepared in accordance with TFRS. Future periods to deferred tax assets and liabilities are calculated based on the liability method on temporary differences for the rates used as of 31 March 2025 25% (2024: 25%).

Tax Advantages Obtained Under the Investment Incentive System

Earnings from the Group's investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or completely until the investment contribution amount is reached. In this context, as of 31 March 2025, the Group has recognized deferred tax assets amounting to TRY 39,296 (31 December 2024: TRY 31,950) which will be utilized in the foreseeable future. As a result of the recognition of the tax advantage as of 31 March 2025, deferred tax income amounting to TRY 7,346 has been recognized in the statement of profit or loss for the period 1 January - 31 March 2025.

Within the scope of the incentive certificates summarized above, a reduced corporate tax advantage has not been used in the current period statutory tax provision (31 December 2024: None).

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 16 - TAX ASSETS AND LIABILITIES (Continued)

Tax Advantages Obtained Under the Investment Incentive System (Continued)

R&D Incentives

The Group capitalizes R&D expenditures in its statutory books within the scope of Law No. 5746. In accordance with the provisions of the same law, the Group uses R&D discount exemption for the portion of the expenditures allowed by the law by calculating the R&D expenditures made by the Group within the framework of the relevant legislation.

As of 31 March 2025, the Group has not used R&D discount exemption (31 December 2024: None) against statutory tax.

R&D Incentives

The Group capitalizes R&D expenditures in its statutory books within the scope of Law No, 5746, In accordance with the provisions of the same law, the Group uses R&D discount exemption for the portion of the expenditures allowed by the law by calculating the R&D expenditures made by the Group within the framework of the relevant legislation.

As of 31 March 2025, the Group has used the R&D discount exemption of TRY 41,698 (31 March 2024: TRY 43,897) in return for legal tax, and the tax advantage of TRY 9,599 that the Group will benefit from in the foreseeable future has been reflected in the financial statements as a deferred tax asset (31 December 2024: None).

The details of taxation on income for the periods ended 31 March 2025 and 2024 are as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Current period income tax expense
(-)
(54,513) (66,465)
Deferred tax expense
(-)
(966,877) (781,839)
Current period tax expense
(-)
(1,021,390) (848,304)

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 16 - TAX ASSETS AND LIABILITIES (Continued)

The composition of cumulative temporary differences and the related deferred income tax assets and liabilities in respect of items for which deferred income tax has been provided as of 31 March 2025 and 31 December 2024 using the currently enacted tax rates, is as follows:

Cumulative
temporary differences
Deferred tax
assets/liabilities
31 March 2025 31 December 2024 31 March 2025 31 December 2024
Deferred tax assets:
Inventories 2,875,748 4,693,980 718,937 1,173,495
Short-term provisions 1,822,966 2,048,407 455,740 512,102
Provision for employee
termination benefits 2,295,408 2,569,993 573,852 642,498
Finance income not accrued from
future sales 4,880 30,464 1,220 7,616
Other 595,188 812,679 148,798 202,344
Deferred tax assets 1,898,547 2,538,055
Deferred tax liabilities:
TFRS 16 effect (15,451,042) (14,471,430) (3,862,760) (3,617,858)
Property, plant and equipment (6,909,452) (9,510,136) (1,727,363) (1,623,688)
Finance expense not accrued from
future sales (2,648,119) (2,799,308) (662,030) (699,827)
Fair value changes of
Financial investments (2,724,273) (2,759,064) (408,641) (413,034)
Deferred tax liabilities (6,660,794) (6,354,407)
Total deferred tax liabilities, net (4,762,247) (3,816,352)
Movements of deferred tax assets and liabilities are as follows:
2025 2024
Beginning of the period, 1 January (3,816,352) (3,295,242)
Deferred tax expense from continuing operations (-) (966,877) (781,839)
Recognized on other comprehensive income 20,982 30,519
Property plant and equipment revaluation increases
-
6,550 6,842
Financial investment fair value difference
-
14,432 23,677
End of the period, 31 March (4,762,247) (4,046,562)

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 17 - CAPITAL, RESERVES AND OTHER EQUITY ITEMS

The Group applies the registered capital system granted to companies registered in the CMB and has set a ceiling for its registered capital representing registered shares with a nominal value of 1 Kr. The Group's registered capital and issued capital are as follows:

31 March
2025
31 December 2024
------------------ ------------------
Common shares 1 Kr par value
-
Registered capital ceiling
500,000 500,000
-
Issued capital
181,054 181,054

The shareholders of the Company and their shareholdings stated at historical amounts at 31 March 2025 and 31 December 2024 are stated below:

31 March 2025 31 December 2024
TRY Share TRY Share
MH Perakendecilik ve Ticaret A.Ş. 89,046 49.18 89,046 49.18
Migros Ticaret A.Ş. 2,962 1.64 2,962 1.64
Other 89,046 49.18 89,046 49.18
Nominal paid capital 181,054 100,00 181,054 100,00
Share capital adjustment differences (*) 3,715,782 3,715,782
Adjusted share capital 3,896,836 3,896,836
Treasury shares (948,272) (948,272)

(*) Share capital adjustment differences refer to the difference between the total amounts of cash and cash equivalent additions to capital adjusted in accordance with TFRS published by the KGK and their preadjustment amounts. Capital adjustment differences have no use other than being added to capital.

As of 31 March 2025 breakdown of the equity in the financial statements prepared in accordance with the Tax Procedure Law are as follows.

31 March
2025
PPI Indexed
Legal Records
CPI Indexed
Records
Amounts followed in
Accumulated Profit/
Loss
Share capital adjustment differences 4,694,609 3,715,782 (978,827)
Other reserves 3,258,643 1,935,690 (1,322,953)

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 18 – RELATED PARTY DISCLOSURES

a) Balances with related parties

As of 31 March 2025, and 31 December 2024, due from and due to related parties are as follows:

Trade receivables from related parties 31 March
2025
31 December
2024
Coca Cola İçecek A.Ş. 7,695 41,763
Anadolu Isuzu Otomotiv Sanayi ve Tic. A.Ş. 1,752 6
Anadolu Sağlık Merkezi İktisadi İşletmesi (ASM) 1,253 181
Anadolu Etap Penkon Gıda ve İçecek Ürünleri San.
ve Tic.
A.Ş.
955 175
Colendi Yapay Zeka ve Büyük Veri Teknolojileri Hizmet A.Ş - 22,325
Other 1,067 4,985
12,722 69,435
Trade payables to related parties 31 March
2025
31 December
2024
Anadolu Efes Pazarlama ve Dağıtım Ticaret A.Ş. 1,082,003 1,262,737
Coca Cola Satış ve Dağıtım A.Ş. 989,325 849,215
AEH Sigorta Acenteliği A.Ş. 140,095 95
Adel Kalemcilik Ticaret ve San, A.Ş. 29,962 32,879
AEP
Anadolu Etap Penkon Gıda ve
Tarım Ürünleri San.
ve Tic.
A.Ş.
- 25,557
AG Anadolu Grubu Holding A.Ş. 2,601 23,225
Other 35,404 8,669
2,279,390 2,202,377

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 18 – RELATED PARTY DISCLOSURES (Continued)

b) Transactions with related parties

Significant transactions regarding purchases and sales with related parties for the periods ending on 31 March 2025 and 2024 are as follows:

1 January- 1 January
Inventory purchases 31 March
2025
31 March
2024
Coca Cola Satış ve Dağıtım A.Ş. 1,021,390 951,987
Anadolu Efes Paz,
ve Dağıtım Ticaret A.Ş.
893,733 818,538
AEP
Anadolu Etap Penkon Gıda ve
Tarım Ürünleri San.
ve Tic.
A.Ş.
105,764 51,125
Adel Kalemcilik Ticaret ve San.
A.Ş.
23,861 91
2,044,748 1,821,741
1 January-
31 March
1 January
31 March
Other transactions 2025 2024
Rent expense (9,031) -
Other income - (9,658)
Other transactions, net (9,031) (9,658)

Key management compensation

The Group has determined key management personnel as chairman, members of board of directors, general manager, and vice general managers.

Total compensation provided to key management personnel by Group for the period ended 31 March 2025 and 2024 is as follows:

1 January-
31 March
2025
1 January
31 March
2024
Short-term benefits
150,740
184,735
150,740 184,735

Key management compensation paid or payable consists of benefits, salaries, premiums, individual pension premiums, vehicle rents and SSI and employer shares.

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY - 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 19 - EARNINGS PER SHARE

Basic earnings per share is calculated by dividing net income for the period by the weighted average number of ordinary shares outstanding during the related period. The Company has no diluted instruments.

1 January -
31 March
2025
1 January -
31 March
2024
Net profit
attributable to shareholders
981,163 1,714,645
Weighted average number of shares with
Kr1 face value each
('000)
18,105,233 18,105,233
Earnings
per share
("TRY")
5.42 9.47

There is no difference between basic and diluted earnings per share for any of the periods.

NOTE 20 - EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION

The Group is exposed to foreign exchange risk primarily arising from the borrowings denominated in foreign currencies. Aforementioned foreign exchange risk is monitored and limited with derivative instruments. On 31 March 2025, if Euro, US dollar had appreciated against TRY by 20% and all other variables had remained constant, the profit for the period before tax as a result of foreign exchange rate difference arising out of assets and liabilities denominated in Euro, US Dollar would have been high in the amount of TRY 141,344 (31 December 2024: TRY 139,908).

The profit before tax effect can be broken down in terms of currencies in such a way that that the change amounting to TRY 7,782 is due to the change in Euro, the change amounting to TRY 133,562 is due to US dollar. (31 December 2024: The effect of the change in the Euro isTRY 86,042 the effect of the change in the US Dollar is TRY 53,866).

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 20 - EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION (Continued)

FOREIGN CURRENCY POSITION
31 March 2025 31 December 2024
Total TRY
equivalent
USD EUR Other TRY
equivalent
Total TRY
equivalent
USD EUR Other TRY
equivalent
Monetary financial assets 714,077 17,692 956 7,017 737,520 6,945 10,640 37,635
Current assets 714,077 17,692 956 7,017 737,520 6,945 10,640 37,635
Total assets 714,077 17,692 956 7,017 737,520 6,945 10,640 37,635
Trade payables 340 9 - - 350 9 - -
Current liabilities 340 9 - - 350 9 - -
Non-monetary other liabilities - - - - - - - -
Non-current liabilities - - - - - - - -
Total liabilities 340 9 - - 350 9 - -

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 20 - EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION (Continued)

FOREIGN CURRENCY POSITION
31 March 2025 31 December 2024
Total TRY Other TRY Total TRY Other TRY
equivalent USD EUR equivalent equivalent USD EUR equivalent
Net asset/(liability) position of
off-balance sheet derivatives (A-B) - - - - - - - -
A.
Total amount of off-balance sheet
derivative financial assets - - - - - - -
B.
Total amount of off-balance sheet
derivative financial liabilities - - - - - - - -
Net foreign
currency asset/(liability)
position 713,737 17,683 956 7,017 737,170 6,936 10,640 37,635
Net foreign currency asset/(liability)
position
of monetary items
713,737 17,683 956 7,017 737,170 6,936 10,640 37,635
Fair value hedge funds of
foreign currency - - - - - - - -
Hedge amount of foreign currency assets - - - - - - - -
Hedge amount of foreign currency liabilities
Import 93,628 2,417 - - 827,319 19,941 - -

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 20 - EXCHANGE RATE RISK AND FOREIGN CURRENCY POSITION (Continued)

Foreign currency sensitivity analysis as of 31 March 2025 and 31 December 2024 is as follows:

31 March 2025

Gain/Loss
Foreign
exchange
appreciation
Foreign
exchange
depreciation
20%
change in Euro exchange rate
Euro net asset/liability
7,782 (7,782)
20%
change in USD
exchange rate
USD
net asset/liability
133,562 (133,562)
Net effect 141,344 (141,344)

31 December 2024

Gain/Loss
Foreign
exchange
appreciation
Foreign
exchange
depreciation
20%
change in Euro exchange rate
Euro net asset/liability
86,042 (86,042)
20%
change in USD
exchange rate
USD
net asset/liability
53,866 (53,866)
Net effect 139,908 (139,908)

NOTE 21 - FINANCIAL INSTRUMENTS

Fair value estimation

Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists.

  • Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1).
  • Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2).
  • Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3).

MİGROS TİCARET A.Ş.

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 31 MARCH 2025

(Amounts expressed in thousands of TRY based on the purchasing power of Turkish Lira ("TRY") unless otherwise indicated.)

NOTE 22 – EXPLANATIONS REGARDING NET MONETARY POSITIONGAINS/(LOSSES)

Non-monetary Items 31 March 2025

Statement of financial position items 3,684,738
Inventories 385,436
Prepaid expenses 189,288
Property, plant and equipment
and intangible assets
5,505,925
Right of use assets 3,424,483
Financial investments 342,402
Deferred income 3,326
Deferred tax liability (360,648)
Share capital (356,286)
Treasury shares 86,699
Other capital reserves (175,528)
Other comprehensive income/expenses not to be classified to profit or loss (164,114)
Dividend advances paid 51,998
Retained earnings (5,238,616)
Non-controlling interests (9,627)
Profit or loss statement items 2,210,378
Revenue (1,863,063)
Cost of sales(-) 3,580,153
General administrative expenses(-) 35,591
Marketing expenses(-) 337,078
Other operating income/expenses 91,045
Income/expense from investment activities 148
Financial income/expense 16,271
Income tax expense 13,155
Net monatary position gains 5,895,116

NOTE 22 - SUBSEQUENT EVENTS

None.

MİGROS TİCARET A.Ş.

APPENDIX 1 - EBITDA

The Group calculates the EBITDA by deducting general administrative expenses and selling, marketing and distribution expenses and adding depreciation expenses, unused vacation liability paid in current period, employee termination benefit provision expense, unusued vacation liability expense on gross profit amount in consolidated statements of income.

TFRS 16 TFRS 16 Before Before
2025 2024 2025 2024 2025 TFRS 16
2024
72,318,474
(59,419,358) (57,688,995) 426,524 150,124 (59,845,882) (57,839,119)
19,017,175 14,629,479 426,524 150,124 18,590,651 14,479,355
(1,528,723)
(14,276,257)
1,158,214
(167,411)
benefit and unused vacation
(69,673)
(103,615) - - (69,673) (103,615)
(271,026)
78,436,533
(1,619,694)
(16,864,055)
3,153,255
3,686,681
3,617,008
72,318,474
(1,528,723)
(14,763,807)
2,527,233
864,182
760,567
Effect
-
-
(572,303)
1,753,695
1,607,916
1,607,916
Effect
-
-
(487,550)
1,369,019
1,031,593
1,031,593
TFRS 16
78,436,533
(1,619,694)
(16,291,752)
1,399,560
2,078,765
2,009,092

Talk to a Data Expert

Have a question? We'll get back to you promptly.