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TAB GIDA SANAYİ VE TİCARET A.Ş.

Annual / Quarterly Financial Statement Apr 29, 2025

8887_rns_2025-04-29_0623d32f-fe84-446d-922b-e1ba1d44a494.pdf

Annual / Quarterly Financial Statement

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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD JANUARY 1 – MARCH 31, 2025 (Originally issued in Turkish)

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

CONTENTS PAGE
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION 1-2
CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME 3-4
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 5
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS 6-7
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 8-54
NOTE 1
ORGANIZATION AND OPERATIONS OF THE GROUP
8
NOTE 2
BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS
9-15
NOTE 3
CASH AND CASH EQUIVALENTS
16
NOTE 4
BORROWINGS
17
NOTE 5
LEASE LIABILITIES
18
NOTE 6
TRADE RECEIVABLES AND PAYABLES
19
NOTE 7
OTHER RECEIVABLES AND PAYABLES
20
NOTE 8
INVENTORIES
20
NOTE 9
PROPERTY, PLANT AND EQUIPMENT
21-23
NOTE 10 INTANGIBLE ASSETS 24-25
NOTE 11 RIGHT OF USE ASSET 25-27
NOTE 12 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 27-28
NOTE 13 EMPLOYEE BENEFITS 29-30
NOTE 14 OTHER ASSETS AND LIABILITIES 31
NOTE 15 PREPAID EXPENSES AND CONTRACT LIABILITIES 31-32
NOTE 16 EQUITY 32-33
NOTE 17 REVENUE AND COST OF SALES 33-34
NOTE 18 MARKETING, SELLING AND DISTRIBUTION AND ADMINISTRATIVE EXPENSES 34-35
NOTE 19 EXPENSE BY NATURE 35
NOTE 20 OTHER OPERATING INCOME AND EXPENSES 36
NOTE 21 INCOME AND EXPENSES FROM INVESTING ACTIVITIES 37
NOTE 22 FINANCE INCOME AND FINANCE EXPENSES 37-38
NOTE 23 INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 38-40
NOTE 24 RELATED PARTY DISCLOSURES 40-45
NOTE 25 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES 45-53
NOTE 26 NET MONETARY POSITION GAINS/(LOSSES) DISCLOSURES 54
NOTE 27 SHARE BASED PAYMENTS 54

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

Notes Reviewed
Current Year
31 March 2025
Audited
Prior Year
31 December 2024
ASSETS
Cash and cash equivalents 3 6.977.959.360 6.640.397.221
Trade receivables
Trade receivables from related parties 6-24 814.719.131 806.268.457
Trade receivables from third parties 6 1.020.199.797 717.687.507
Other receivables
Other receivables from third parties 7 1.961.390 2.884.219
Inventories 8 499.138.920 433.060.271
Prepaid expenses 15 1.285.592.687 1.087.499.166
Other current assets 14 74.086.343 41.549.502
Total Current Assets 10.673.657.628 9.729.346.343
Other receivables
Other receivables from third parties 7 33.646.734 36.293.658
Property, plant and equipment 9 9.439.557.223 9.576.065.143
Intangible assets 10 1.030.959.893 1.050.902.032
Right of use assets 11 6.530.448.520 6.355.335.567
Prepaid expenses 15 50.254.760 51.888.409
Other non-current assets 14 6.395.498 7.024.468
Total Non-Current Assets 17.091.262.628 17.077.509.277
TOTAL ASSETS 27.764.920.256 26.806.855.620

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

Notes Reviewed
Current Year
31 March 2025
Audited
Prior Year
31 December 2024
LIABILITIES
Short-term borrowings 4 33.775.897 23.763.150
Current portion of long-term borrowings
Short-term lease liabilities 5 1.572.160.708 1.523.211.620
Trade payables
Trade payables to related parties 6-24 1.757.258.516 1.501.195.570
Trade payables to third parties 6 615.942.907 659.444.508
Other payables
Other payables to third parties 7 36.743 46.701
Employee benefit payables 13 777.571.138 584.617.495
Short-term provisions
Provisions for employee benefits 13 271.049.678 182.438.215
Other short-term provisions 12 64.078.274 55.070.919
Contract liabilities 15 411.083.772 293.194.766
Current tax liabilities 23 308.004.096 324.300.724
Other current liabilities 14 104.222.203 94.454.136
Total Current Liabilities 5.915.183.932 5.241.737.804
Long-term lease liabilities 5 2.389.374.999 2.490.748.763
Trade payables
Trade payables to third parties 6 136.821.873 166.987.650
Provision for employee benefits 13 199.977.234 178.886.387
Contract liabilities 15 136.940.907 138.778.502
Deferred tax liabilities 23 1.236.748.429 1.152.579.494
Total Non-Current Liabilities 4.099.863.442 4.127.980.796
EQUITY
Share capital 16 261.292.000 261.292.000
Adjustments to share capital 16 2.915.556.520 2.915.556.520
Share premium 5.848.028.053 5.848.028.053
Restricted reserves separated from profit (28.965.381) (28.965.381)
Other comprehensive expenses 216.048.173 216.048.173
to be reclassified
- Currency translation reserves 16 186.515.908 186.970.756
Other comprehensive income or expenses
not to be reclassified
- Remeasurement gains of
defined benefit plans 16 8.269.511 5.131.406
- Revaluation of property,
plant and equipment 16 796.120.802 796.120.802
Net profit for the period 310.052.605 2.104.034.002
Retained earnings 7.236.954.691 5.132.920.689
Total Equity 17.749.872.882 17.437.137.020
TOTAL LIABILITIES AND EQUITY 27.764.920.256 26.806.855.620

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

Notes 1 January -
31 March 2025
1 January -
31 March 2024
Profit or loss
Revenue 17 8.714.121.740 7.833.351.539
Cost of sales (-) 17 (7.561.158.569) (6.819.602.649)
Gross profit 1.152.963.171 1.013.748.890
General administrative expenses (-) 18 (392.594.432) (295.711.632)
Marketing expenses (-) 18 (437.352.201) (454.174.541)
Other operating income 20 163.732.755 142.579.273
Other operating expenses (-) 20 (179.439.398) (161.772.764)
Operating profit 307.309.895 244.669.226
Income related to investing activities 21 379.085.191 535.551.153
Expense related to investing activities (-) 21 (23.327.820) (8.983.745)
Operating profit before financial expenses 663.067.266 771.236.634
Financial income 22 214.638.992 57.318.119
Financial expenses (-) 22 (271.453.891) (242.455.116)
Monetary loss (164.236.182) (130.481.689)
Earning before tax 442.016.185 455.617.948
Tax income
Current tax expense 23 (47.859.038) (153.791.083)
Deferred tax expense 23 (84.104.542) (117.831.249)
Net profit for the year 310.052.605 183.995.616
Earning per share (TL) 1,19 0,70
OTHER COMPREHENSİVE İNCOME
Items to be reclassified subsequently to profit or loss:
Change in foreign currency translation differences (454.848) (41.058.658)
Items that will not be reclassified subsequently to profit or loss:
Income related to revaluation of defined
benefit plans and measurement gains 13 4.184.139 (1.320.187)
Tax income / (expense) to revaluation of defined
benefit plans and measurement 23 (1.046.034) 321.215
TOTAL COMPREHENSIVE INCOME 312.735.862 141.937.986

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIODS 1 JANUARY – 31 MARCH 2025 AND 2024 (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

Other
compherensive
income / (expense
will be reclassified to
profit or loss
Other
compherensive
income / (expense
will be reclassified to
profit or loss
Share
capital
Adjustment
to share
capital
Share based
benefits
Repurchased
Shares
Restricted
reserves
from
benefits
Currency
transition
differences
Remeasurement
of defined
benefit
obligation
Revaluation
of Property,
Plant and
equipment
Net income
for the
period(loss)
Accumulated
losses
Total
Balance at 1 January 2025
Profit for the year
Other comprehensive expense
261.292.000
-
-
2.915.556.520
-
-
5.848.028.053
-
-
-
-
-
-
-
-
19.556.524
-
(41.058.658)
5.902.038
-
(998.972)
796.120.802
-
-
3.905.604.817
183.995.616
-
1.629.999.645
-
-
15.382.060.399
183.995.616
(42.057.630)
Total comprehensive profit
Transfers
-
-
-
-
-
-
-
-
-
-
(41.058.658)
-
(998.972)
-
-
-
183.995.616
(3.905.604.817)
-
3.905.604.817
141.937.986
-
Balance at
31 March 2025
261.292.000 2.915.556.520 5.848.028.053 - - (21.502.134) 4.903.066 796.120.802 183.995.616 5.535.604.462 15.523.998.385
Balance at 1 January 2025
Profit for the year
Other comprehensive expense
261.292.000
-
-
2.915.556.520
-
-
5.848.028.053
-
-
(28.965.381)
-
-
216.048.173
-
186.970.756
-
(454.848)
5.131.406
-
3.138.105
796.120.802
-
-
2.104.034.002
310.052.605
-
5.132.920.689
-
-
17.437.137.020
310.052.605
2.683.257
Total comprehensive profit
Transfers
-
-
-
-
-
-
-
-
(454.848)
-
3.138.105 - 310.052.605
(2.104.034.002)
-
2.104.034.002
312.735.862
-
Balance at
31 March 2025
261.292.000 2.915.556.520 5.848.028.053 (28.965.381) 216.048.173 186.515.908 8.269.511 796.120.802 310.052.605 7.236.954.691 17.749.872.882

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE ACCOUNTING PERIODS 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

Notes 1 January -
31 March 2025
1 January -
31 March 2024
Cash Flows from Operating Activities
Net profit for the period 310.052.605 183.995.616
Adjustments related to reconciliation
of net profit for the period 1.703.432.569 1.410.111.925
Depreciation and amortization expense 9-10 456.730.160 412.496.453
Adjustments for impairment
impairment and expenses related to closed restaurants 21 1.821.106 28.205
Adjustments for provisions
provisions related to employee benefits 13 205.381.787 174.450.328
Adjustment related to provisions
for litigation and/or penalties 12 22.218.033 934.832
Adjustments related to interest income and expenses
Interest income 21-22 (576.377.532) (555.278.330)
Interest expense 22 79.756 771.872
Deferred financial income
arising from forward purchases 20 (15.176.937) (49.824.412)
Unearned finance expense
arising from credit sales 20 46.576.601 20.196.840
Depreciation and amortisation on leases 11 671.606.549 594.793.337
Interest expense on leases
Exchange rate difference expense related to leases
22-11
22
154.162.426
22.016.718
124.939.491
24.574.973
Insurance income 21 (8.430.821) (15.192.500)
Adjustments related to tax (income) / expense 23 131.963.580 271.622.332
Adjustments related to gain
on disposal of property, plant and equipment 21 21.035.611 6.862.314
Monetary gain/(loss) 569.825.532 398.736.190
Changes in Working Capital (539.242.009) (10.469.491)
Adjustments related to (increase)/decrease in trade receivables
Increase in due from related parties (96.182.484) (277.049.041)
Increase in trade receivables from third parties (483.305.816) (150.547.203)
Adjustments related to (increase)/decrease
in other current and non-current assets (41.901.708) (12.592.563)
(Increase)/decrease in inventories (123.698.931) (29.823.906)
(Increase)/decrease in prepaid expenses (360.718.558) (424.013.041)
Adjustments for increase in trade payables
(Increase)/decrease in due to related parties 344.945.907 326.743.473
(Increase)/decrease in trade payables to third parties 134.744.276 285.606.548
Other payables / liabilities (decrease)/increase 86.889.566 282.352.615
Increase/(decrease) in other liabilities (14.261) (11.146.373
Cash Flows From Operations (92.487.816) (50.712.550)
Employee benefits paid 13 (52.270.557) (45.853.339)
Income taxes paid (32.649.333) -
Litigation paid (7.567.926) (4.859.211)

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE ACCOUNTING PERIODS 1 JANUARY - 31 MARCH 2025 AND 2024

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

Notes 1 January -
31 March 2025
1 January -
31 March 2024
Cash Flows from Investing Activities 249.814.513 (220.806.594)
Cash inflows from disposal
of property, plant and equipment 18.958.178 2.320.862
Cash outflows from acquisition
of property, plant and equipment 9 (311.964.995) (760.306.372)
Cash outflows from acquisition of intangible assets 10 (41.987.023) (39.294.812)
Cash advances given to related parties - 6.002.898
Cash inflows from insurance 8.430.821 15.192.500
Interest received 576.377.532 555.278.330
Cash Flows from Financing Activities (686.892.626) (625.673.489)
Cash inflows from borrowings 4 110.478.954 52.349.139
Cash outflows related to loan repayments 4 (97.846.156) (93.521.400)
Interest payments related to lease transactions
Payments for lease transactions
5 (154.162.426)
(545.362.998)
(124.939.491
(459.561.737)
THE EFFECT OF MONETARY LOSS ON
CASH AND CASH EQUIVALENTS (607.115.097) (1.204.271.052)
NET CHANGE IN
CASH AND CASH EQUIVALENTS
337.562.139 (517.825.635)
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD
3 6.640.397.221 6.553.849.602
CASH AND CASH EQUIVALENTS
AT THE END OF THE PERIOD 3 6.977.959.360 6.036.023.967

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 1 - ORGANIZATION AND OPERATIONS OF THE GROUP

TAB Gıda Sanayi ve Ticaret A.Ş. ("the Company") was established on 4 August 1994. The principal activities of the Company and its subsidiaries ("the Group") are sub-letting brands and operating fast food hamburger, chicken and pizza restaurants under the Burger King, Popeyes, Sbarro, Arby's, Subway, Usta Dönerci and Usta Pideci brands. The Company operates the largest fast food hamburger restaurant chain in Turkey in terms of number of restaurants.

The Group operates and franchises Burger King, Popeyes, Sbarro and Arby's-branded restaurants under exclusive development and master franchise agreements and the owner of Usta Dönerci and Usta Pideci brands. Burger King and Popeyes brands are both owned by Restaurant Brands International Inc ("RBI"). The expiry dates of the master franchise and exclusivity rights under the Master Franchise Development Agreement ("MFDA") are as follows:

Brand Expiration Dates
Burger King— Quick Service Restaurant Business Türkiye 1 December 2032
Popeyes— Quick Service Restaurant Business Türkiye 31 December 2026
Sbarro— Quick Service Restaurant Business Türkiye 31 December 2027
Arby's— Quick Service Restaurant Business Türkiye 31 December 2027
Subway— Quick Service Restaurant Business Türkiye 31 December 2029

The address of the Company is Dikilitaş Mahallesi Emirhan Caddesi No: 109 Beşiktaş, İstanbul.

As at 31 March 2025 the average number of personnel employed during the year is 16.653 (31 December 2024: 16.092).

As of 31 March 2025, the Group has a total of 1.854 open restaurants. The number of franchise restaurants in the total number of open restaurants is 845 as of 31 March 2025. (31 December 2024: The number of Group restaurants is 1.830, of which 820 are franchise restaurants).

TFI TAB Gıda Yatırımları Anonim Şirketi is the main shareholder of the Group and the main controlling party.

As at 31 March 2025, the list of subsidiaries is as follows:

  • TAB Georgia LLC. "GÜRCİSTAN"
  • TAB Limited Makedonija Dooel Petrovec "MAKEDONYA"

A brief description of the Company's subsidiaries is as follows:

  • TAB Georgia LLC. was established on 26 December 2006 in Georgia. TAB Georgia operates fast food restaurants. As of 31 March 2025, the total number of open restaurants is 9 and the number of franchise restaurants is 1 (31 December 2024: Total number of open restaurants is 9, 1 of which belongs to franchise restaurants).
  • TAB Limited Makedonija Dooel Petrovec was established in Macedonia on 13 June 2011. TAB Macedonia operates fast food restaurants. As of 31 March 2025, the total number of open restaurants is 15, all of which are operated by the Group. (31 December 2024: Total number of open restaurants is 15, all of which are operated by the Group).

As at 31 March 2025, the list of branches is as follows:

• TAB Gıda Sanayi ve Ticaret A.Ş. – Northern Cyprus Branch "KUZEY KIBRIS"

Approval of the consolidated financial statements

The consolidated financial statements have been approved by the Board of Directors and authorised for issue on 29 April 2025. The General Assembly and other regulatory bodies are authorised to amend and restate the financial statements.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS

2.1 Basic Principles of Presentation

Implemented Financial Reporting Standards

The accompanying consolidated financial statements are prepared in accordance with the Communiqué Serial II, No:14.1, "Principles of Financial Reporting in Capital Markets" ("the Communiqué") published in the Official Gazette numbered 28676 on 13 June 2013. According to the article 5 of the Communiqué, consolidated financial statements are prepared in accordance with Turkish Financial Reporting Standards ("TFRS") and its addendum and interpretations ("IFRIC") issued by Public Oversight Accounting and Auditing Standards Authority ("POA") Turkish Accounting Standards Boards. It has also been presented in accordance with the TMS taxonomy published by the Public Oversight Authority (POA) on July 3, 2024.

The Company and its subsidiaries operating in Turkey, maintains its accounting records and prepares its statutory financial statements in accordance with the Turkish Commercial Code (the "TCC"), tax legislation and the uniform chart of accounts issued by the Ministry of Finance. These consolidated financial statements are based on the statutory records, with the required adjustments and reclassifications including those related to changes in purchasing power reflected for the purpose of fair presentation in accordance with the TFRS.

Financial Reporting In Hyperinflationary Economy

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 annual reporting period ending on or after 31 March 2024 with the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on 23 November 2023. 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.

The accompanying financial statements are prepared on a historical cost basis, except for financial investments measured at fair value and investment properties measured at revalued amounts.

Financial statements and corresponding figures for previous periods have been restated for the changes in the general purchasing power of Turkish lira and, as a result, are expressed in terms of purchasing power of Turkish lira as of 31 March 2025 as per TAS 29.

On the application of TAS 29, the entity used the conversion coefficient derived from the Customer Price Indexes (CPI) published by Turkey Statistical Institute according to directions given by POA. The CPI for current and previous year periods and corresponding conversion factors since the time when the Turkish lira previously ceased to be considered currency of hyperinflationary economy, i.e., since 1 January 2021, were as follow:

Year end Index
2021 686,95
2022 1.128,45
2023 1.859,38
2024 2.684,55
2025/3 2.954,69

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (CONT'D)

2.1 Basic Principles of Presentation (Cont'd)

Financial Reporting under Hyperinflation

In accordance with TMS 29, necessary adjustments to the financial statements have been made, with assets and liabilities initially separated into monetary and non-monetary categories. Non-monetary assets and liabilities are further subdivided into those measured at fair value and those measured at cost. Monetary items (excluding those linked to an index) and non-monetary items measured at fair value as of the reporting period-end (31 March 2025) are already expressed in the current measurement unit and have not been adjusted for inflation. Non-monetary items not expressed in the current measurement unit as of 31 March 2025 have been adjusted for inflation using the relevant coefficient.

In cases where the inflation-adjusted value of non-monetary items exceeds their recoverable amount or net realizable value, the carrying amount has been reduced in accordance with the relevant IFRS (International Financial Reporting Standards). Furthermore, inflation adjustments have been made for equity elements and all items in the statement of profit or loss and other comprehensive income. For non-monetary items acquired or assumed before 1 January 2005, as well as equity elements established before that date, the adjustment has been made according to the change in the Consumer Price Index (CPI) from 1 January 2005 to 31 March 2025.

The application of TAS 29 results in an adjustment for the loss of purchasing power of the Turkish lira presented in Net Monetary Position Gains (Losses) item in the profit or loss section of the statement of profit or loss and comprehensive income. In a period of inflation, an entity holding an excess of monetary assets over monetary liabilities loses purchasing power and an entity with an excess of monetary liabilities over monetary assets gains purchasing power to the extent the assets and liabilities are not linked to a price level. This gain or loss on the net monetary position is derived as the difference resulting from the restatement of non-monetary items, owners' equity and items in the statement of profit or loss and other comprehensive income and the adjustment of index linked assets and liabilities.

Functional and Reporting Currency

The individual financial statements of each Group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). The consolidated financial statements of the Group are presented in Turkish Lira ("TL"), which is the functional currency of the Group and the presentation currency of the Group's consolidated financial statements.

In preparing the consolidated financial statements of the Group, balance sheet items of companies whose functional currency is different from TL are translated into TL at the exchange rate ruling at the balance sheet date and income, expenses and cash flows are translated into TL at the exchange rate ruling at the date of the transactions (historical exchange rate) or, if the date cannot be determined, at the annual average exchange rate. The resulting translation difference is recognised in the foreign currency translation reserve under equity.

The functional currencies of the Company's subsidiaries in Georgia and Macedonia are Georgian Lari and Macedonian Dinar, respectively.

As at 31 March 2025, the buying exchange rates for assets are 1 Macedonian Dinar = TL 0, 6632 and 1 Lari = TL 13,7362 (31 December 2024: 1 Macedonian Dinar = TL 0,5974 and 1 Lari = TL 12,5628), and the selling exchange rates for liabilities are 1 Macedonian Dinar = TL 0, 6632 and 1 Lari = TL 13,7362 (31 December 2024: 1 Macedonian Dinar = TL 0,5974 and 1 Lari = TL 12,5628).

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

2.1 Basic Principles of Presentation (cont'd)

Basis Of Consolidation

The details of the Company's subsidiaries as at 31 March 2025 and 31 December 2024 are as follows:

31 March 31 December
Subsidiaries Business Segment Country of Origin 2025 2024
TAB Georgia LLC Quick Service
Restaurant
Georgia %100 %100
TAB Limited Makedonija
Dooel Petrovec
Quick Service
Restaurant
Macedonia %100 %100

As at 31 March 2025 and 31 December 2024, the Group's branch information is as follows:

Branch Name Business Segment Country of Origin
TAB Gıda Sanayi ve Ticaret A.Ş.
– Northern Cyprus Branch
Quick Service Restaurant Northern Cyprus

The consolidated financial statements include the financial statements of the Company and entities controlled by the Company and its subsidiaries. Control is achieved when the Company fulfils the following conditions:

  • has power over the invested company/asset
  • is entitled or open to variable returns from the invested company/asset
  • has the ability to affect those returns through its power to direct the activities of the entity

If a situation or event occurs that could lead to a change in at least one condition stated above, Company shall reassess whether it has control over its investment.

In cases where the Company does not have the majority voting right over the invested company/asset, if it has sufficient voting rights to direct/manage the activities of the relevant investment alone, it has control over the invested company/asset. The Company considers all relevant events and conditions in assessing whether the majority of the votes in the relevant investment is sufficient to gain control, including the following:

  • Comparing the voting rights of the Company with the other shareholders,
  • Potential voting rights of the Company and other shareholders have,
  • Rights arising from other contractual agreements,
  • Other events and conditions that can show whether the Company has power in managing the relevant activities (including the votes at the general assembly meetings in previous periods) in cases where a decision needs to be made.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (Cont'd)

2.1 Basic Principles of Presentation (cont'd)

Subsidiaries are fully consolidated from the date on which control is transferred to the Company. They are deconsolidated from the date that control ceases. The income and expenses of subsidiaries acquired or sold during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date of purchase to the date of sell out.

Each item of the profit or loss and other comprehensive income belongs to the parent shareholders and noncontrolling interests. Even if the non-controlling interests result in negative balance, the total comprehensive income of the subsidiaries is transferred to the parent company shareholders and non-controlling interests.

If necessary, adjustments regarding to the accounting policies have been made in the financial statements of the subsidiaries in order to be the in line with the accounting policies followed by the Group.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

Offsetting

.

Financial assets and liabilities are offset and the net amount reported in the consolidated balance sheet when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously.

2.2 Changes in Accounting Policies

Significant changes in accounting policies are applied retrospectively and prior period financial statements are restated. The Group has not made any changes in accounting policies in the current year.

2.3 Changes and Errors in Accounting Estimates

If the changes in accounting estimates and errors are for only one period, they are applied in the period in which the change is made and if they are for future periods, they are applied both in the period in which the change is made and prospectively in future periods. The Group has not changed any accounting estimates and no significant accounting policy errors have been identified in the current year.

2.4 New and Revised Turkish Accounting Standards

The accounting policies adopted in preparation of the consolidated financial statements as of March 31, 2025 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRS interpretations effective as of January 1, 2025 and thereafter. The effects of these standards and interpretations on the Group's financial position and performance have been disclosed in the related paragraphs.

i) The new standards, amendments and interpretations which are effective as of January 1, 2025 are as follows:

Amendments to TFRS 21- Lack of Exchangeability

In May 2024, POA issued amendments to TAS 21. The amendments specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. When an entity estimates a spot exchange rate because a currency is not exchangeable into another currency, it discloses information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the entity's financial performance, financial position and cash flows. The amendments will be effective for annual reporting periods beginning on or after 1 January 2025. Early adoption is permitted but will need to be disclosed. When applying the amendments, an entity cannot restate comparative information.

The Group will wait until the final amendment to assess the impacts of the changes.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.4 New and Revised Turkish Accounting Standards (cont'd)

ii) Standards issued but not yet effective and not early adopted

Standards, interpretations and amendments to existing standards that are issued but not yet effective up to the date of issuance of the consolidated financial statements are as follows. The Group will make the necessary changes if not indicated otherwise, which will be affecting the consolidated financial statements and disclosures, when the new standards and interpretations become effective.

Amendments to TFRS 10 and TAS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

In December 2017, POA postponed the effective date of this amendment indefinitely pending the outcome of its research project on the equity method of accounting. Early application of the amendments is still permitted.

The Group will wait until the final amendment to assess the impacts of the changes.

TFRS 17 - The new Standard for insurance contracts

POA issued TFRS 17 in February 2019, a comprehensive new accounting standard for insurance contracts covering recognition and measurement, presentation and disclosure. TFRS 17 model combines a current balance sheet measurement of insurance contract liabilities with the recognition of profit over the period that services are provided. The mandatory effective date of the Standard postponed to accounting periods beginning on or after January 1, 2026 with the announcement made by the POA.

The standard is not applicable for the Group and will not have an impact on the financial position or performance of the Group.

iii) Amendments issued by the International Accounting Standards Board (IASB) that have not yet been published by the Public Oversight Accounting and Auditing Standards Authority (POA).

Two amendments to IFRS 9 and IFRS 7, the Annual Improvements to IFRS Accounting Standards, as well as IFRS 18 and IFRS 19, have been issued by the International Accounting Standards Board (IASB) but have not yet been endorsed/published by the Public Oversight Accounting and Auditing Standards Authority (POA) for application under Turkish Financial Reporting Standards (TFRS). Therefore, these standards and amendments are not yet part of TFRS. The Group will make the necessary changes in its consolidated financial statements and disclosures once these standards and amendments become effective under TFRS.

Amendments to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments

In May 2024, the IASB issued amendments related to the classification and measurement of financial instruments (affecting IFRS 9 and IFRS 7). The amendments clarify that financial liabilities are to be derecognized on the "settlement date." Additionally, under certain conditions, the amendments introduce an accounting policy choice that allows financial liabilities settled via an electronic payment system to be derecognized prior to the settlement date. The amendments also provide clarification on how to assess the contractual cash flow characteristics of financial assets that include Environmental, Social, and Governance (ESG)-linked or similar contingent features, and introduce guidance on non-recourse assets and contractually linked financial instruments. Moreover, IFRS 7 has been updated to include additional disclosure requirements for financial assets and liabilities that contain contractual terms referencing contingent events (including ESG-related terms) as well as for equity instruments measured at fair value through other comprehensive income.

The Group will assess the potential impacts of these amendments once they are finalized and adopted under the applicable reporting framework.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.4 New and Revised Turkish Accounting Standards (cont'd)

iii)Amendments issued by the International Accounting Standards Board (IASB) that have not yet been published by the Public Oversight Accounting and Auditing Standards Authority (POA) (cont'd)

Annual Improvements to IFRS Accounting Standards – 11th Amendment

In July 2024, the IASB issued the "Annual Improvements to IFRS Accounting Standards – 2022–2024 Cycle (11th Amendment)," which includes the following amendments:

  • IFRS 1 First-time Adoption of International Financial Reporting Standards Hedge accounting by a firsttime adopter: The amendment was made to eliminate potential confusion arising from inconsistencies between the wording in IFRS 1 and the hedge accounting requirements in IFRS 9.
  • IFRS 7 Financial Instruments: Disclosures Gains or losses on derecognition: IFRS 7 was amended to revise the expression of unobservable inputs and to include a reference to IFRS 13.
  • IFRS 9 Financial Instruments Derecognition of lease liabilities by a lessee and transaction price: The amendment clarifies that when a lessee's lease liability is extinguished, the lessee should apply the derecognition requirements of IFRS 9, and the resulting gain or loss should be recognized in profit or loss. Additionally, the amendment removes the reference to "transaction price" in IFRS 9.
  • IFRS 10 Consolidated Financial Statements Determining a "de facto agent": The amendment resolves inconsistencies in the paragraphs of IFRS 10 related to the assessment of whether an entity is a de facto agent.
  • IAS 7 Statement of Cash Flows Cost method: Following previous amendments that removed the reference to the "cost method," the same reference has now been deleted from IAS 7.

The Group will assess the impact of these amendments after they are finalized and adopted within the applicable financial reporting framework.

IFRS 9 and IFRS 7 Amendments – Contracts Involving Electricity Produced from Natural Resources

In December 2024, the IASB published an amendment titled "Contracts Involving Electricity Produced from Natural Resources" (related to IFRS 9 and IFRS 7). The amendment clarifies the application of provisions regarding the "own use" exemption and permits hedge accounting when such contracts are used as a hedging instrument. The amendment also introduces new disclosure requirements to ensure that the effects of these contracts on the entity's financial performance and cash flows are clearly understood by investors.

The Group will assess the impact of these amendments once the mentioned standards are finalized.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 2 - BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS (cont'd)

2.5 New and Revised Turkish Accounting Standards (cont'd)

iii)Amendments issued by the International Accounting Standards Board (IASB) that have not yet been published by the Public Oversight Accounting and Auditing Standards Authority (POA) (cont'd)

IFRS 18 – New Presentation and Disclosure Standard for Financial Statements

In April 2024, the IASB published IFRS 18, which replaces IAS 1. IFRS 18 introduces new provisions regarding the presentation of the income statement, including the presentation of certain totals and subtotals. IFRS 18 requires businesses to present all income and expenses in the income statement under one of five categories: operating activities, investing activities, financing activities, income taxes, and discontinued operations. The standard also requires the disclosure of performance measures determined by management, and it introduces new provisions for the aggregation or disaggregation of financial information in accordance with the roles defined for primary financial statements and notes. With the publication of IFRS 18, certain changes were made to other financial reporting standards, such as IAS 7, IAS 8, and IAS 34.

The Group will assess the impact of these changes once the mentioned standards are finalized.

IFRS 19 – New Standard for Disclosures for Subsidiaries Without Public Accountability

In May 2024, the IASB published IFRS 19, offering certain businesses the option of reduced disclosures when applying the recognition, measurement, and presentation provisions in IFRSs for their financial statements. Unless otherwise specified, businesses that choose to apply IFRS 19 will not be required to follow the disclosure requirements in other IFRSs. A business that prepares consolidated financial statements in accordance with IFRSs, where the parent is not publicly accountable and is available for public use, may choose to apply IFRS 19, provided that it is a subsidiary of such a parent company (whether intermediate or ultimate).

The Group will assess the impact of these changes once the mentioned standards are finalized.

2.5 Significant accounting policies

The condensed consolidated financial statements for the interim period ended March 31, 2025 have been prepared in accordance with TAS 34 Interim Financial Reporting. The significant accounting policies applied in the preparation of the condensed consolidated financial statements are consistent with those described in detail in the consolidated financial statements for December 31, 2024. Accordingly, the condensed consolidated financial statements should be read in conjunction with the financial statements for the year ended December 31, 2024.

2.6 Going Concern Assumption

The consolidated financial statements have been prepared on a going concern basis, which assumes that the Group will be able to realise the benefits from its assets and settle its liabilities within the next year and in the normal course of business.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 3 - CASH AND CASH EQUIVALENTS

31 March 2025 31 December 2024
Cash on hand 143.350.399 27.288.359
Demand deposits at bank 2.947.846.441 37.224.311
Time deposits at bank 3.763.915.715 6.529.410.682
Other cash equivalents (*) 122.846.805 46.473.869
6.977.959.360 6.640.397.221

(*) Other cash and cash equivalents consist of receivables from credit card sales which are realised in cash within 1 day on average. The Group pays commission to banks for the collection of credit card receivables before the original maturity date. The remaining balance consists of receivables from internet payment platforms with an average maturity of 7 days.

The details of time deposits at the bank are as follows:

Currency Type Interest Rate (%) Maturity 31 March 2025
TL %44 - %45 2 April - 5 May 2026 3.763.915.715
3.763.915.715
Currency Type Interest Rate (%) Maturity 31 December 2024
TL 47% – 51% 2 Jan - 31 Jan 2025 6.529.410.682
6.529.410.682

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 4 - BORROWINGS

The details of the Group's financial liabilities as at 31 March 2025 and 31 December 2024 are as follows:

31 March 2025 31 December 2024
33.775.897 23.763.150
33.775.897 23.763.150

Details of the bank loans are as follows:

Weighted Average
Currency Type Effective Interest Rate 31 March 2025
TL - 33.775.897
33.775.897
Weighted Average
Currency Type Effective Interest Rate 31 December 2024
TL - 23.763.150
23.763.150

The movement of the Group's financial liabilities as at 31 March 2025 and 2024 is as follows:

2025 2024
Opening balance as of 1 January 23.763.150 147.436.016
Cash inflow from borrowings 110.478.954 52.349.139
Cash outflows from borrowings (97.846.156) (93.521.400)
Interest expense (Note 22) 79.756 771.872
Monetary gain/(loss) (2.699.807) (16.828.146)
Closing balance at 31 March 33.775.897 90.207.481

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 5 - LEASE LIABILITIES

31 March 2025 31 December 2024
Short-term lease liabilities 1.572.160.708 1.523.211.620
Total short-term lease liabilities 1.572.160.708 1.523.211.620
Long-term lease liabilities 2.389.374.999 2.490.748.763
Total long-term lease liabilities 2.389.374.999 2.490.748.763
Total lease liabilities 3.961.535.707 4.013.960.383
31 March 2025 31 December 2024
To be paid within 1 year 1.572.160.708 1.523.211.620
To be paid between 1-2 years 923.467.042 929.699.200
To be paid between 2-3 years 569.669.741 617.927.862
To be paid between 3-4 years 213.445.997 231.977.368
To be paid after 4+ years 682.792.219 711.144.333
3.961.535.707 4.013.960.383

The movement of the Group's finance lease payables as at 31 March 2025 and 2024 is as follows:

2025 2024
Opening balance as of 1 January 4.013.960.383 3.236.790.223
Purchases 860.667.935 1.892.842.264
Payments (545.362.998) (459.561.737)
Exchange differences, net (Note 22) 22.016.718 24.574.973
Interest expense (Note 22) 154.162.426 124.939.491
Monetary gain/(loss) (543.908.757) (910.876.382)
Closing balance at 31 March 3.961.535.707 3.908.708.832

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 6 - TRADE RECEIVABLES AND PAYABLES

a) Trade Receivables and Notes Receivable

Current trade receivables 31 March 2025 31 December 2024
Trade receivables 1.033.179.233 731.973.033
Trade receivables from related parties (Not 24) 814.719.131 806.268.457
Impairment provision for trade receivables (-) (12.979.436) (14.285.526)
1.834.918.928 1.523.955.964

The majority of the Group's sales consist of cash sales. Trade receivables consist of sales to sub-franchise companies and receivables from food voucher companies. Trade receivables are discounted using an annual interest rate of 40% (31 December 2024:40%).

The impairment provision for trade receivables has been determined based on past experience of uncollectibility.

The movement of impairment provision for trade receivables is as follows:

Closing balance at 31 March (12.979.436) (9.340.177)
Opening balance as of 1 January
Monetary gain/(loss)
(14.285.526)
1.306.090
(10.747.146)
1.406.969
2025 2024

The nature and level of risks related to trade receivables are disclosed in Note 25.

b) Trade Payables

Short-term trade payables 31 March 2025 31 December 2024
Trade payables 615.942.907 659.444.508
Trade payables to related parties (Note 24) 1.757.258.516 1.501.195.570
2.373.201.423 2.160.640.078
Long-term trade payables
Trade payables 136.821.873 166.987.650
136.821.873 166.987.650

Trade payables are discounted using the effective interest method. The effective interest rate of 40% has been used to determine the value of trade payables (31 December 2024: 40%).

The nature and level of risks related to trade payables are disclosed in Note 25.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 7 - OTHER RECEIVABLES AND PAYABLES

a) Other Receivables

Short-term other receivables 31 March 2025 31 December 2024
Receivables from tax office - 1.990.797
Other 1.961.390 893.422
1.961.390 2.884.219
Long-term other receivables
Deposits and guarantees given (*) 31.711.507 33.054.326
Other 1.935.227 3.239.332
33.646.734 36.293.658

(*) Deposits and guarantees represent deposits given to the relevant administrative units for rents and connection fees such as electricity, natural gas and water. Deposit amounts are returned at the end of the lease agreement.

b) Other Payables

Short-term other payables 31 March 2025 31 December 2024
Deposits and guarantees received 36.743 40.440
Other - 6.260
36.743 46.700

The nature and level of risks related to other receivables and payables are disclosed in Note 25.

NOTE 8 - INVENTORIES

31 March 2025 31 December 2024
Raw materials 464.974.339 403.447.745
Other inventory 34.164.581 29.612.526
499.138.920 433.060.271

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 9 - PROPERTY, PLANT AND EQUIPMENT

Plant Leasehold Construction
Machinery & Furniture &
Equipment Vehicles Fixture improvements in progress Total
Cost:
Opening balance as of 1 January 2024 12.291.637.021 41.542.703 4.326.823.230 4.727.270.683 595.771.030 21.983.044.667
Additions 74.048.587 1.307.607 127.658.717 108.950.084 - 311.964.995
Disposals (14.916.964) - (27.312.509) (11.891.964) (1.793.290) (55.914.727)
Currency translation effect - - 28.671.187 - - 28.671.187
Closing balance on
31 March 2025 12.350.768.644 42.850.310 4.455.840.625 4.824.328.803 593.977.740 22.267.766.122
Accumulated Depreciation:
Opening balance as of 1 January 2024 (7.751.950.778) (18.645.886) (2.479.416.016) (2.156.966.844) - (12.406.979.524)
Charge for the period (211.615.923) (2.571.465) (92.303.280) (123.721.099) - (430.211.767)
Disposals 6.733.811 - 2.967.736 6.219.391 - 15.920.938
Currency translation effect - - (6.938.546) - - (6.938.546)
Closing balance on
31 March 2025 (7.956.832.890) (21.217.351) (2.575.690.106) (2.274.468.552) - (12.828.208.899)
Net Book Value 4.393.935.754 21.632.959 1.880.150.519 2.549.860.251 593.977.740 9.439.557.223

The depreciation expenses amounting to TL 390.202.073 have been included in the cost of goods sold, and TL 40.009.694 have been included in general administrative expenses (as of March 31, 2024: TL 355.805.728 included in the cost of sales and TL 36.482.837 included in general administrative expenses).

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 9 - PROPERTY, PLANT AND EQUIPMENT (cont'd)

Plant Furniture & Leasehold Construction
Machinery &
Equipment Vehicles Fixture improvements in progress Total
Cost:
Opening balance as of 1 January 2024 11.375.345.554 41.716.013 4.199.919.621 3.643.256.644 304.193.261 19.564.431.093
Additions 279.348.219 - 179.229.326 223.756.152 77.972.675 760.306.372
Disposals (4.150.285) (54.624) (1.002.135) (6.858.532) - (12.065.576)
Translation difference - - (20.323.582) (2.683.473) - (23.007.055)
Closing balance on
30 March
2024
11.650.543.488 41.661.389 4.357.823.230 3.857.470.791 382.165.936 20.289.664.834
Accumulated Depreciation:
Opening balance as of 1 January 2024 (6.873.171.427) (8.641.387) (2.598.733.901) (1.778.497.634) - (11.259.044.349)
Charge for the period (219.940.796) (2.444.584) (81.807.937) (88.095.248) - (392.288.565)
Disposals 2.507.671 54.624 196.273 123.832 - 2.882.400
Translation difference - - 6.054.487 198.523 - 6.253.010
Closing balance on
30 March
2024
(7.090.604.552) (11.031.347) (2.674.291.078) (1.866.270.527) - (11.642.197.504)
Net Book Value 4.559.938.936 30.630.042 1.683.532.152 1.991.200.264 382.165.936 8.647.467.330

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 9 - PROPERTY, PLANT AND EQUIPMENT (cont'd)

The depreciation periods for property, plant and equipment are as follows:

Useful Life
Machinery and equipment 5-25 years
Vehicles 4-5 years
Fixtures and furniture 3-10 years
Leasehold improvements 2-20 years

The Group has assessed each restaurant as a cash-generating unit (CGU) and performed an impairment test for each CGU and analysed the recoverable amount of the fixed assets of the restaurants. This impairment test was applied for leasehold improvements, machinery and equipment and fixtures and fittings. The recoverable amount of cash generating units is determined using cash flow projections extended from 5 years to 10 years.

For each CGU, the Group has recognised impairment only for leasehold improvements since the average useful life of leasehold improvements is approximately 10 years and other assets in restaurants can be transferred in case of closure of a restaurant. Therefore, the restaurant impairment analysis is based on 10-year cash flow projections and no terminal value is assumed. Impairment test is performed for the restaurants, each of which is a separate cash-generating units (NÜB), for which there is an indication of impairment.

Impairment and reversals are included in income and expenses from investing activities in the income statement (Note 21).

Fair value measurement of the Group's freehold land, buildings and machinery & equipment

As of December 31, 2023, the fair value measurements of the plants, machinery, and equipment owned by the Group has been performed by Kale Taşınmaz Değerleme ve Danışmanlık A.Ş., an independent valuation company. The relevant valuation firm is authorized by the CMB and provides plant, machinery, and equipment valuation services in accordance with capital market regulations and possesses the necessary experience and qualifications to measure the fair value of the related machinery.

The fair value of plant, machinery and equipment is determined as replacement cost by multiplying the initial purchase cost by the average increase in foreign currency and inflation index for the period between the acquisition date and the valuation date and then adjusted for accumulated depreciation, impairment and impairment, if any, based on the experience of the valuation experts.

As at 31 March 2025, information on the Group's plant, machinery and equipment and the fair value hierarchy of these assets are shown in the table below:

Level 1 Level 2 Level 3
Machinery and Equipment - 4.393.935.754 -
- 4.393.935.754 -
Tangible Valuation Significant Sensitivity
Fixed Assets Techniques unobservable input(s)
Plant,
machinery and
equipment
Cost
Approach
Valuation expert's
estimations and
depreciation rates used
in the valuation.
Valuation expert's judgement based on experience
impacts the fair value of machinery and equipment. A
change in ratio of foreign currencies and inflation
index would result in an increase in fair value, and vice
versa.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise

indicated.)

NOTE 10 - INTANGIBLE ASSETS

Initial Rights and
Franchise Fees Licenses Total
Cost:
Opening balance
as of 1 January 2025 733.844.183 958.763.066 1.692.607.249
Additions 9.977.066 32.009.957 41.987.023
Disposals - (820.291) (820.291)
Currency translation differences - (34.749.979) (34.749.979)
Closing balance
as of 31 March 2025 743.821.249 955.202.753 1.699.024.002
Accumulated Amortization:
Opening balance
as of 1 January 2025 (272.279.773) (369.425.444) (641.705.217)
Charge for period (7.116.807) (19.401.586) (26.518.393)
Disposals - 159.501 159.501
Closing balance
as of 31 March 2025 (279.396.580) (388.667.529) (668.064.109)
Net Book Value 464.424.669 566.535.224 1.030.959.893

The depreciation expenses of TL 24.052.182 have been included in the cost of goods sold, and TL 2.466.211 have been included in general administrative expenses (as of March 31, 2024: TL 18.328.553 included in the cost of sales and TL 1.879.334 included in general administrative expenses).

The Group's intangible assets consist of franchise opening fees paid for new restaurants, rights and licences. The amortisation period is 20 years for franchise opening fees and 2-20 years for licences.

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

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise

indicated.)

NOTE 10 - INTANGIBLE ASSETS (cont'd)

Franchise Fees Licenses Total
1.477.526.862
39.294.812
(44.619.379)
(1.437.623) (517.820) (1.955.443)
692.606.303 777.640.549 1.470.246.852
(548.649.749)
(20.207.888)
177.400
- 12.621 12.621
(251.690.032) (316.977.584) (568.667.616)
440.916.271 460.662.965 901.579.236
Initial
722.201.947
16.035.600
(44.193.621)
(245.004.076)
(6.685.956)
-
Rights and
755.324.915
23.259.212
(425.758)
(303.645.673)
(13.521.932)
177.400
Restaurants Property Vehicles Total
Cost:
Opening balance
as of 1 January 2025 13.000.200.072 218.243.822 148.408.506 13.366.852.400
Additions 828.322.365 18.776.898 13.568.672 860.667.935
Çıkışlar (50.028.662) - (11.832) (50.040.494)
Closing balance
as of 31 March 2025 13.778.493.775 237.020.720 161.965.346 14.177.479.841
Accumulated Amortization:
Opening balance
as of 1 January 2025 (6.939.967.004) (67.015.443) (4.534.386) (7.011.516.833)
Charge for the period (651.368.731) (7.129.758) (13.108.060) (671.606.549)
Disposals 36.092.061 - - 36.092.061
Closing balance
as of 31 March 2025
(7.555.243.674) (74.145.201) (17.642.446) (7.647.031.321)
Net Book Value 6.223.250.101 162.875.519 144.322.900 6.530.448.520

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

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 11 - RIGHT OF USE ASSETS (cont'd)

Restaurants Property Vehicles Total
Cost:
Opening balance
as of 1 January 2024 10.145.137.112 52.160.283 62.793.901 10.260.091.296
Additions 1.888.658.555 4.183.709 - 1.892.842.264
Disposals (366.454.574) - (2.560.833) (369.015.407)
Closing balance
as of 31 March 2024 11.667.341.093 56.343.992 60.233.068 11.783.918.153
Accumulated Amortization:
Opening balance
as of 1 January 2024 (4.573.964.207) (34.839.488) (44.169.014) (4.652.972.709)
Charge for the period (587.906.633) (4.065.451) (2.821.253) (594.793.337)
Disposals 15.661.295 - 2.560.833 18.222.128
Closing balance
as of 31 March 2024
(5.146.209.545) (38.904.939) (44.429.434) (5.229.543.918)
Net Book Value 6.521.131.548 17.439.053 15.803.634 6.554.374.235

The Group's right of use assets consist of restaurants, buildings and vehicles. Average lease agreements are 6 years for restaurants, 3 years for buildings and 3 years for vehicles.

Accounted for in profit or loss 1 January -
31 March 2025
1 January -
31 March 2024
Depreciation expense on right-of use assets 671.606.549 594.793.337
Interest expense on lease liabilities 154.162.426 124.939.491
Foreign exchange losses on lease liabilities (net) 22.016.718 24.574.973
Expenses related to variable lease payments
not included in the measurement of lease liabilities 469.331.962 380.154.164
Total 1.317.117.655 1.124.461.965

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 11 - RIGHT OF USE ASSETS (cont'd)

Some of the restaurant leases in which the Group is a lessee contain variable lease payment terms that depend on the sales generated from the leased stores. Variable payment terms are used to link lease payments to maintain cash flows and reduce fixed costs. The breakdown of lease payments for these stores is as follows:

1 January -
31 March 2025
1 January -
30 March 2024
Fixed payments 545.362.998 459.561.737
Variable payments 469.331.962 380.154.164
Total 1.014.694.960 839.715.901

NOTE 12 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES

a) Litigation provisions:

31 March 2025 31 December 2024
Litigation provisions 64.078.274 55.070.919
64.078.274 55.070.919
The movement of provisions for litigation is as follows:
2025 2024
Opening balance as of 1 January 55.070.919 31.809.873
Charged to expense
Litigation paid
22.218.033
(7.567.926)
934.832
(4.859.211)

Closing balance as of 31 March 64.078.274 23.961.133

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

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 12 - PROVISIONS, CONTINGENT ASSETS AND LIABILITIES (cont'd)

b) Guarantees, pledges and mortgages:

The guarantees mainly consist of letters of guarantee given to restaurant owners as rent deposits, for electricity, natural gas and water connections, and to public authorities as deposits. The majority of the balance consists of letters of guarantee given as rent deposits for restaurants and letters of guarantee given to tax authorities for a VAT refund. The number of letters of guarantee given as a rent deposit is TL 280.651.472 (31 December 2024: TL 398.351.886).

31 March 2025

GPMs given by the Group Total TL
(Guarantees - Pledges - Mortgages) Equivalents USD GEL EUR TL
A. Given in the Name of Its Own
Legal Entity Total amount of GPMs 486.770.401 1.076.939 - 2.004.128 371.825.750
- Guarantees 486.770.401 1.076.939 - 2.004.128 371.825.750
- Mortgages - - - - -
B. Included in the scope of full consolidation
Given in favour of included companies
GPM's given Total Amount - - - - -
C. Total amount of GPMs given in order to
ensure the debts of other third parties
for the purpose of carrying out
ordinary commercial activities - - - - -
D. Total amount of other GPMs given - - - - -
Total 486.770.401 1.076.939 - 2.004.128 371.825.750
31 December 2024
GPMs given by the Group Total TL
(Guarantees - Pledges - Mortgages) Equivalents USD GEL EUR TL
A. Given in the Name of Its Own
Legal Entity Total amount of GPMs 494.631.861 1.444.012 - 2.478.814 359.782.952
- Guarantees 494.631.861 1.444.012 - 2.478.814 359.782.952
- Mortgages - - - - -
B. Included in the scope of full consolidation
Given in favour of included companies
GPM's given Total Amount - - - - -
C. Total amount of GPMs given in order to
ensure the debts of other third parties
for the purpose of carrying out
ordinary commercial activities - - - - -
D. Total amount of other GPMs given - - - - -

Total 494.631.861 1.444.012 - 2.478.814 359.782.952

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 13 - EMPLOYEE BENEFITS

31 March 2025 31 December 2024
Payables to personnel (*) 436.006.086 403.442.387
Social security premiums payable 273.259.148 110.841.258
Income tax payable 68.305.904 70.333.850
777.571.138 584.617.495

(*) Amount due to personnel represents salaries and wages accrued in the last month.

b) Provisions:

31 March 2025 31 December 2024
Unused vacation provision 271.049.678 182.438.215
Retirement pay provision 199.977.234 178.886.387
471.026.912 361.324.602
c)
Unused vacation provision:
2025 2024
Opening balance as of 1 January 182.438.215 128.546.764
Increase during the period 133.589.943 91.298.648
Paid during the period (-) (23.741.595) (8.784.127)
Monetary gain/(loss) (21.236.885) (36.209.494)
Closing balance at 31 March 271.049.678 174.851.791

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 13 - EMPLOYEE BENEFITS (cont'd)

d) Retirement pay provision:

Under the Turkish Labour Law, the Group is required to pay termination benefits to each employee who has completed at least one year of service and whose employment is terminated without due cause, is called up for military service, dies or retires after completing 25 years of service and achieves the retirement age (58 for women and 60 for men). Certain transitional provisions related to the pre-retirement service period have been excluded from the law due to the change in the related law as of 23 May 2002. Accordingly, the Group is required to make lump-sum termination indemnities to each employee who retired or terminated at the date of retirement. The payment depends on the number of years the individual has been employed by the Group.

The severance pay to be paid as of March 31, 2025, is subject to a cap of TL 46.655,43 per month (December 31, 2024: TL 46.655,43).

Employment termination benefits are not legally subject to any funding. Provision for employment termination benefits is calculated by estimating the present value of the future probable obligation of the Company arising from the retirement of the employees. TAS 19 Employee Benefits requires actuarial valuation methods to be developed to estimate the enterprise's obligation under defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of total liabilities are as follows:

The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Accordingly, the discount rate applied represents the expected real rate after adjusting for the effects of future inflation. Therefore, provisions in the accompanying financial statements as at 31 March 2025 are calculated by estimating the present value of the future probable obligation of the Group arising from the retirement of the employees. The provisions at the respective reporting dates have been calculated assuming an annual inflation rate of 20,82% and an interest rate of 25,05%, resulting in a real discount rate of approximately 3.50% (31 December 2024: 3.50%). Voluntary termination rates are also taken into consideration as 11,66% for employees with 0-15 years of service and 0% for employees with 16 or more years of service.

2025 2024
Opening balance as of 1 January 178.886.387 126.967.526
Service cost 68.062.586 81.892.833
Interest cost 3.729.258 1.258.847
Actuarial loss/gain 4.184.139 1.052.132
Retirements benefits paid (-) (28.528.962) (37.069.212)
Monetary gain/(loss) (26.356.174) (27.473.870)
Closing balance as of 31 March 199.977.234 146.628.256

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 14 - OTHER ASSETS AND LIABILITIES

Other Current Assets 31 March 2025 31 December 2024
VAT carried forward 14.814.665 14.448.125
Litigation receivables 47.291.562 -
Other 11.980.116 27.101.377
74.086.343 41.549.502
Other Non-Current Assets 31 March 2025 31 December 2024
Evacuation costs 6.395.498 7.024.468
6.395.498 7.024.468
Short-Term Liabilities 31 March 2025 31 December 2024
VAT payable 93.603.518 89.981.437
Taxes and funds payable 10.618.685 4.472.699
104.222.203 94.454.136

NOTE 15 - PREPAID EXPENSES AND CONTRACT LIABILITIES

Short-Term Prepaid Expenses 31 March 2025 31 December 2024
Advances given (*) 1.236.328.710 1.059.440.417
Prepaid expenses 47.977.300 24.816.968
Advances given 1.286.677 3.241.781
1.285.592.687 1.087.499.166

(*) The given order advances include TL 638.780.845 to Fasdat Gıda Dağıtım San. Tic. A.Ş. for construction expenses and operational equipment purchases and raw material purchases related to the Group's restaurants, TL 212.982.086 to Ekur İnşaat San. Tic. A.Ş., 290.976.926 to Mes Mutfak Ekip. San. Tic. A. Ş. To 35.827.483 TL'si ATP Yazılım ve Teknoloji A.Ş. (31 December 2024: TL 617.730.516 was given to Fasdat Gıda Dağıtım San. Tic. A.Ş., TL 69.415.275 was given to Ekur İnşaat San. Tic. A.Ş., TL 316.105.326 was given to Mes Mutfak Ekip. San. Tic. A. Ş. and TL 33.880.884 was given to ATP Yazılım ve Teknoloji A.Ş.).

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 15 - PREPAID EXPENSES AND CONTRACT LIABILITIES (cont'd)

Long Term Prepaid Expenses 31 March 2025 31 December 2024
Prepaid expenses 50.254.760 51.888.409
50.254.760 51.888.409
Short-Term Contract Liabilities 31 March 2025 31 December 2024
Advances received (*) 133.075.816 150.409.126
Advances from customers (**) 139.010.406 128.535.171
Non-refundable advances received (***) 138.997.550 14.250.469
411.083.772 293.194.766
Long-Term Contract Liabilities 31 March 2025 31 December 2024
Advances from customers (**) 136.737.364 131.456.742
Non-refundable advances received (***) 203.543 7.321.760
136.940.907 138.778.502

(*) Advances received mainly consist of advances received from franchises.

(**) Advances received from customers consist of contractual liabilities according to IFRS 15.

(***) The Group receives incentives from its suppliers for purchasing contracts entered by the Group with the supplier. Incentives received in advance are initially recognized as advances in the consolidated statement of financial position and deducted from the cost of purchase of inventories in the related period in which the related inventory is purchased from the supplier.

NOTE 16 - EQUITY

a) Equity:

The paid-in capital structure of the Group as of 31 March 2025 and 31 December 2024 is as follows:

31 March 2025 31 December 2024
Share (%) TL Share (%) TL
TFI TAB Gıda Yatırımları A.Ş. 79,9 208.792.000 79,9 208.792.000
Other 20,1 52.500.000 20,1 52.500.000
Nominal Capital 100 261.292.000 100 261.292.000
Inflation adjustment 2.915.556.520 2.915.556.520
Adjusted Capital 3.176.848.520 3.176.848.520

The Group's authorized and issued capital consists of 261.292.000 shares each with a registered nominal value of TL1.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 16 – EQUITY (cont'd)

b) Legal Reserves

The legal reserves represent restricted reserves appropriated from profit. The legal reserves consist of the first and second legal reserves appropriated in accordance with the Turkish Commercial Code. The first legal reserve is appropriated out of historical statutory profits at the rate of 5% per annum until the total reserve reaches 20% of historical paid-in share capital. The second legal reserve is appropriated after the first legal reserve and dividends, at the rate of 10% per annum of all cash dividend distributions.

c) Analyses of Other Comprehensive Income Items

As of 31 March 2025, revaluation measurement gains in accordance with TAS 16 and all actuarial gains and losses calculated in accordance with TAS 19, which are recognised in other comprehensive income, net of deferred tax effect are as follows:

Not to be reclassified to profit or loss 31 March 2025 31 December 2024
Gain on revaluation and measurement 796.120.802 796.120.802
Loss on remeasurement of defined benefit plans 8.269.511 5.131.406
804.390.313 801.252.208
To be reclassified to profit or loss 31 March 2025 31 December 2024
Currency translation differences 186.515.908 186.970.756
186.515.908 186.970.756

Foreign currency translation differences represent the translation differences arising on the settlement and translation at each reporting date of the entities' functional currencies other than TL.

d) Treasury Shares

In accordance with the resolution of the Company's Board of Directors dated 7 October 2024, a total of 192.845 shares were repurchased during the last three months of 2024 for an amount of TL 25.477.603. As of 31 March 2025, the total cost of repurchased shares, carried at acquisition cost, amounts to TL 28.965.381. These 192.845 shares represent 0.0738% of the Company's share capital. The share buybacks were financed through the Company's internal resources. As of the reporting date, no repurchased shares have been resold.

NOTE 17 – REVENUE AND COST OF SALES

1 January -
31 March 2025
1 January -
31 March 2024
Restaurant sales 7.647.401.304 7.053.222.592
Franchise revenues 915.209.610 678.601.792
Sales to franchised restaurants 190.314.515 150.256.084
Other sales 9.687.518 6.159.355
Sales returns (-) (48.491.207) (54.888.284)
8.714.121.740 7.833.351.539

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 17 – REVENUE AND COST OF SALES (Cont'd)

The timing of the fulfilment of the performance obligation is as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Fulfilment at a certain time 8.523.807.225 7.683.095.455
Fulfilment spread over time 190.314.515 150.256.084
8.714.121.740 7.833.351.539

b) Cost of Sales

1 January -
31 March 2025
1 January -
31 March 2024
Foods and materials used (2.917.877.572) (2.731.697.897)
Personnel expenses (1.869.156.795) (1.636.681.945)
General production cost (1.120.610.629) (1.017.149.247)
Amortization expenses related with leases (652.300.457) (579.631.771)
Rent expenses (469.331.962) (380.154.164)
Amortization expenses (414.254.255) (374.134.283)
Cost of sales to franchised restaurants (81.634.838) (63.000.829)
Cost of merchandise sold (35.992.061) (37.152.513)
(7.561.158.569) (6.819.602.649)

NOT 18 – MARKETING, SELLING AND DISTRIBUTION AND ADMINISTRATIVE EXPENSES

a) General Administrative Expenses

1 January -
31 March 2025
1 January -
31 March 2024
Personnel expenses (193.819.566) (140.302.420)
Depreciation expenses (Note 9, 10) (42.475.905) (38.362.170)
Financial and legal consultancy expenses (58.914.892) (37.617.659)
Rent expenses (19.306.092) (15.161.566)
Maintenance and repair expenses (17.616.606) (15.948.672)
Office expenses (6.401.608) (7.483.569)
Travelling expenses (6.825.667) (9.097.790)
Electricity and fuel expenses (4.669.385) (5.148.964)
Duties, fees and other tax expenses (1.439.691) (908.238)
Other (41.125.020) (25.680.584)
(392.594.432) (295.711.632)

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOT 18 – MARKETING, SELLING AND DISTRIBUTION AND ADMINISTRATIVE EXPENSES (Cont'd)

1 January -
31 March 2025
1 January -
31 March 2024
Marketing and advertising expenses (397.438.306) (402.837.853)
Commission expenses (36.110.664) (47.095.802)
Other (3.803.231) (4.240.886)
(437.352.201) (454.174.541)

NOTE 19 – EXPENSE BY NATURE

The details of depreciation, amortisation and depletion expenses by expense accounts are as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Cost of sales (414.254.255) (374.134.283)
General administrative expenses (42.475.905) (38.362.169)
(456.730.160) (412.496.452)

The breakdown of amortisation expenses related to rights of use by expense accounts is as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Cost of sales (652.300.457) (579.631.771)
General administrative expenses (19.306.092) (15.161.566)
(671.606.549) (594.793.337)

The details of personnel expenses by expense accounts are as follows:

1 January -
31 March 2025
1 January -
31 March 2024
Cost of sales (1.869.156.795) (1.636.681.945)
General administrative expenses (193.819.566) (140.302.421)
(2.062.976.361) (1.776.984.366)

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 20 – OTHER OPERATING INCOME AND EXPENSES

a) Other Operating Income

1 January -
31 March 2025
1 January -
31 March 2024
Foreign currency gain on trade activities 64.648.189 54.126.399
Litigation Income 47.291.562 -
Waste oil income (*) 16.125.473 14.731.211
Rediscount income 15.176.937 49.824.412
Interest Income on Trade Receivables 1.080.375 -
Other 19.410.219 23.897.251
163.732.755 142.579.273

(*) Revenues from waste oils sold domestically.

b) Other Operating Expense

1 January -
31 March 2025
1 January -
31 March 2024
Pre-opening and temporary closure expenses (*) (49.127.097) (88.136.285)
Rediscount expenses (46.576.601) (20.196.840)
Foreign exchange losses on trade payables (12.152.697) (29.586.733)
Recovery contribution fee (4.542.452) (3.567.366)
Other (67.040.551) (20.285.540)
(179.439.398) (161.772.764)

(*) Pre-opening restaurant expenses directly consist of pre-opening costs for new restaurants. There is construction process to prepare the restaurant for operation. During this process, the Group has to pay rent for the restaurant, employ the personnel to work in the restaurant and provide training to these personnel. Rent expenses, personnel expenses and personnel training expenses are recognised in preopening expenses. In addition, rent, electricity, water and natural gas expenses of temporarily closed restaurants are included in pre-opening expenses.

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOT 21 – INCOME AND EXPENSES FROM INVESTING ACTIVITIES

a) Income from investing activities

1 January -
31 March 2025
1 January -
31 March 2024
Interest income 361.738.540 497.960.211
Foreign exchange gains on investing activities 8.915.830 22.256.095
Insurance damage income 8.430.821 15.192.500
Gain on sale of fixed assets - 142.347
379.085.191 535.551.153

b) Expense from investing activities

1 January -
31 March 2025
1 January -
31 March 2024
Loss on sale of fixed assets (21.035.611) (7.004.660)
Closed restaurant expenses (1.821.106) (28.205)
Other (471.103) (1.950.879)
(23.327.820) (8.983.745)

NOT 22 – FINANCE INCOME AND FINANCE EXPENSES

a) Finance income

1 January -
31 March 2025
1 January -
31 March 2024
Foreign exchange gains
Interest income from related parties 214.638.992 57.318.119
214.638.992 57.318.119

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 22 – FINANCE INCOME AND FINANCE EXPENSES (cont'd)

b) Finance expense

1 January -
31 March 2025
1 January -
31 March 2024
Interest expenses on lease liabilities (Note 5) (154.162.426) (124.939.491)
Credit card commissions (86.865.616) (78.952.853)
Foreign exchange losses on lease liabilities (Note 5) (22.016.718) (24.574.973)
Letter of guarantee commissions (Note 4) (1.445.268) (3.848.368)
Interest expense (Note 4) (79.756) (771.872)
Other (6.884.107) (9.367.559)
(271.453.891) (242.455.116)

NOTE 23 – INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES)

Current tax liability 31 March 2025 31 December 2024
Current corporate tax provision 730.247.324 722.411.829
Less: prepaid taxes and funds (422.243.228) (398.111.105)
308.004.096 324.300.724
1 January -
31 March 2025
1 January -
31 March 2024
Current tax expense
(47.859.038)
Deferred tax income
(84.104.542)
(153.791.083)
(117.831.249)
(131.963.580) (271.622.332)

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 23 – INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont'd)

Corporate tax

.

The Group is subject to corporate tax in Turkey. Provision is made in the accompanying consolidated financial statements for the estimated charge based on the Group's results for the current period.

Corporate tax is payable on taxable corporate income, which is calculated by adding back non-deductible expenses to the tax base and deducting dividends received from resident companies, income not subject to tax and investment incentives used.

As of 31 March 2025, the statutory tax rate is 25% (31 December 2024: 25%).

In Turkey, advance tax is payable on a quarterly basis. Taxes are payable at the statutory corporate tax rate.

Losses can be carried forward for a maximum of 5 years to be deducted from future taxable income.

In Turkey, there is no definite and definitive reconciliation procedure for tax assessments. Companies file their tax returns between 1-25 April of the year following the close of the accounting period of the relevant year (between 1-25 of the fourth month following the close of the period for those with special accounting periods). These tax returns and the underlying accounting records can be reviewed and amended by the tax office within 5 years.

In addition to the tax liabilities of companies in Turkey, foreign subsidiaries and operations are also subject to corporate tax in their respective countries. This tax is recognised separately in current tax expense. The statutory tax rates applicable in the countries in which the Group operates are summarised below:

Countries Corporate tax rate Prepaid tax rate (%)
Turkish Republic of Northern Cyprus (TRNC) (*) 10% 15%
Macedonia 10% 10%
Georgia 15% 10%

(*) According to the corporate tax law in force in the TRNC, 10% corporate tax is paid on pre-tax income and 15% income tax withholding is levied on the remaining amount, whether or not the profit is distributed.

Income withholding tax

In addition to corporate income tax, companies should also calculate income withholding tax on dividends distributed, except for companies receiving dividends and declaring such dividends as part of their corporate income, and branches of foreign companies in Turkey. In Turkey, income tax withholding tax was applied as 10% for all companies between 24 April 2003 and 22 July 2006 and then increased to 15%. Dividends that are not distributed but capitalised are not subject to withholding tax.

Deferred tax

The Group recognises deferred tax assets and liabilities based upon temporary differences arising between its financial statements as reported under POA Financial Reporting Standards and its statutory tax financial statements.

The tax rate used in the calculation of deferred tax assets and liabilities is 25% (2024: 25%).

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025

NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 23 – INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) (cont'd)

The deferred tax asset and liabilities consist of the following:

31 March 2025 31 December 2024
Revaluation and revaluation
of property, plant and equipment depreciation
/ amortisation of intangible assets 1.720.214.377 1.515.159.427
Social security premium cancellations (15.705.712) (8.853.787)
Lease liabilities (61.168.330) (60.515.568)
Provision for employment termination benefit (Note 13) (49.994.309) (44.721.597)
Provision for unused vacation (Note 13) (67.762.419) (45.609.554)
Contractual obligations (28.749.742) (23.385.230)
Litigation provisions (Note 12) (16.019.569) (13.767.729)
Other (244.065.867) (165.726.468)
1.236.748.429 1.152.579.494

As of 31 March 2025 and 2024, the movement of deferred tax (asset)/liability for the periods ended are as follows:

2025 2024
Opening balance as of 1 January 1.152.579.494 897.890.588
Accounted for in the income statement 84.104.542 257.005.764
Accounted under equity (1.046.034) 256.878
Monetary gain/(loss) 1.110.427 (2.573.736)
Closing balance on 31 March 1.236.748.429 1.152.579.494

NOTE 24 – RELATED PARTY DISCLOSURES

The Group enters into various transactions with related parties in the ordinary course of business. The Group has a number of operational and financial relationships with its shareholders and companies owned by its shareholders. Receivables and payables from related parties arising from operational activities generally arise from the ordinary course of business. These transactions are as follows:

  • (1) Purchases from related parties: TAB Gıda supplies meat, bread, fresh vegetables and other fast food products for its restaurants through Fasdat Gıda. It purchases machinery and equipment from MES Mutfak. Ekur provides construction, renovation, refurbishment and project drawing services for TAB Gıda restaurants before restaurant openings. Marketing, promotion and advertising activities of TAB Gıda products are carried out by Reklam Üssü.
  • (2) Commissions received from related parties: TAB Gıda receives royalties on the turnover of related party franchise restaurants at a predetermined fixed rate.
  • (3) Other significant transactions with related parties: TAB Gıda receives information technology services related to cash registers in restaurants. In addition, information technology services and IT based operations of the Group are provided by ATP Yazılım ve Teknoloji A.Ş. TAB Gıda's takeaway service is provided by Ata Express Elektronik İletişim Tanıtım Pazarlama Dağıtım San. ve Tic. A.Ş.

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

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

31 March 2025 Trade Receivables Trade Receivables Trade Payables
Balances with related parties Current Non-Current Current
Shareholder
TFI TAB Gıda Yatırımları A.Ş. - - (37.894.921)
Other companies controlled by the parent company - - -
Fasdat Gıda Dağıtım San. ve Tic A.Ş. - - (1.566.125.617)
Reklam Üssü San. ve Dış Tic. A.Ş. - - (147.218.086)
Ekur Et Entegre San. ve Tic. A.Ş. - - (1.007.075)
Atp Ticari Bilgi.Elk.Güç Kaynakları A.Ş. - - (30.180)
Seraş Servis Organizasyonları ve Ticaret A.Ş. - - (1.056.769)
Arbeta Turizm Org.ve Tic.A.Ş. - - (921.173)
Ata Express Elektronik İletişim Tanıtım Paz. 802.107.138 - -
Ata Yatırım Menkul Kıymetler A.Ş. - - (234.332)
Ata Yatırım Gayrimenkul Yatırım Ortaklığı A.Ş. - - (2.316.032)
Ata Yatırım Gayrimenkul Geliştirme Yat. İnş. A.Ş. - - (16.169)
Other related parties - - -
Beray Gıda Bilişim Otomotiv San. Ve Tic.Ltf.Şti. 596.474 - -
Tusem Gıda ve Turizm İşletmeleri Tic. Ltd. Şti. 869.964 - -
Kınık Maden Suları A.Ş. 9.510.359 - -
İntiba Gıda İmalat Ve Tic.Ltd.Şti. 316.423 - -
Other 1.318.773 - (438.162)
814.719.131 - (1.757.258.516)

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

31 December 2024 Trade Trade Trade Payables
Balances with related parties Receivables -
current
Receivables Non-Current Current
Shareholder
TFI TAB Gıda Yatırımları A.Ş. - - (13.014.501)
Ana ortak tarafından yönetilen diğer şirketler
Fasdat Gıda Dağıtım San. ve Tic A.Ş. - - (1.404.941.098)
Atakey Patates Gıda San. ve Tic. A.Ş. 8.858 - -
Reklam Üssü San. ve Dış Tic. A.Ş. - - (73.096.574)
Ekur Et Entegre San. ve Tic. A.Ş. - - (1.153.023)
ATP Yazılım ve Teknoloji A.Ş. - - (33.217)
Seraş Servis Organizasyonları ve Ticaret A.Ş. - - (1.002.293)
Bedela İnşaat ve Ticaret A.Ş. - - (31.964)
Arbeta Turizm Org.ve Tic.A.Ş. - - (3.376.490)
Ata Express Elektronik İletişim Tanıtım Paz. 792.219.607 - -
Ata Yatırım Menkul Kıymetler A.Ş. - - (290.816)
Ata Yatırım Gayrimenkul Yatırım Ortaklığı A.Ş. - - (2.197.332)
Ata Yatırım Gayrimenkul Geliştirme Yat. İnş. A.Ş. - - (90.101)
Other related parties
Beray Gıda Bilişim Otomotiv San. Ve Tic.Ltd.Şti. 702.552 - -
Tusem Gıda ve Turizm İşletmeleri Tic. Ltd. Şti. 948.700 - -
Kınık Maden Suları A.Ş. 10.819.490 -
İntiba Gıda İmalat ve Tic.Ltd.Şti. 285.050 - -
Zenia Limited - - (1.165.253)
Other 1.284.200 - (802.908)
806.268.457 - (1.501.195.570)

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

1 January
-
31
March
2025
Commission
Transaction with related parties Purchases Sales received Rent expense Rent income Other income Other income
Shareholder
TFI TAB Gıda Yatırımları A.Ş. (55.837.903) 29.643 - - - - -
Other companies controlled by the parent company
Fasdat Gıda Dağ. San.ve Tic A.Ş. (3.268.713.445) 349.714.089 - - - - -
Ata Ekspress Elk. İlt. Tan. A.Ş. - 1.683.758.301 - - - - -
Ekur Et Entegre Sanayi ve Ticaret A.Ş. - 25.667 - - - - -
Reklam Üssü San. ve Dış Tic. A.Ş. (375.241.310) 12.622.851 2.775.491 (1.262.304) - - -
ATP Yazılım ve Teknoloji A.Ş. (90.003.279) 1.357.345 - - - - -
Seraş Servis Org. ve Ticaret A.Ş. (3.178.998) - - - - - -
Ata Gayr. Yatırım Ortaklığı A.Ş. (621.592) - - (6.432.048) - - -
Bedela İnşaat ve Ticaret A.Ş. (90.455) - - (4.873.762) - - -
Arbeta Turizm Org.ve Tic.A.Ş. (10.799.224) - - - - - -
Ekur İnşaat Sanayi ve Tic. A.Ş. (97.325.353) 2.870.253 2.866.363 - 2.345.795 - -
Other related parties
Tusem Gıda ve Tur. İşl. Tic. Ltd. Şti. (26.310) 1.026.329 1.853.567 - 1.237.369 - -
Mes Mutfak Ekp. Tic. A.Ş. (304.327.635) 34.028.146 - - - - -
Ertuğ Reklam San.ve Tic. A.Ş (695.851) - - - - - -
Kınık Maden Suları A.Ş. (579.118) 1.509.606 5.350.912 - 3.607.565 - -
Beray Bil. Mar. İnş. Ltd. Şti. (2.570) 173.724 1.041.103 - 611.010 - -
Konuk Ağırlama Teknolojileri ve Uyg. A.Ş. - 910.272 2.570.155 - 5.613.514 - -
Ata Yatırım Menkul Kıymetler A.Ş. - 27.386 - - - - -
Zenia Limited (21.836.407) - - - - - -
(4.229.306.836) 2.088.053.612 16.457.591 (12.568.114) 13.415.253 - -

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY – 31 MARCH 2025 NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

1 January-
31 March 2024
Commission
Transaction with related parties Purchases Sales received Rent expense Rent income Other income Other expense
Shareholder
TFI TAB Gıda Yatırımları
A.Ş.
(30.791.243) 271.884 - - - - -
Other companies controlled by the parent company
Fasdat Gıda Dağ. San.ve Tic A.Ş. (2.743.121.923) 6.802.840 - - - - -
Ata Ekspress Elk. İlt. Tan. A.Ş. (44.292.522) 1.672.432.676 - - 19.004 - -
Ekur Et Entegre Sanayi ve Ticaret A.Ş. - 63.119 - - - - -
Reklam Üssü San. ve Dış
Tic. A.Ş.
(374.456.876) 1.281.865 828.441 (848.304) - 8.087.065 -
Atp Ticari Bilgi.Elk.Güç Kaynakları
A.Ş.
(165.916.158) 2.421.133 - - - - (17.283.089)
Seraş
Servis Org. ve Ticaret A.Ş.
(4.053.890) - - - - - -
Ata Gayr. Yatırım Ortaklığı
A.Ş.
(3.196.629) 24.696 - (4.618.116) - - -
Ata Gayrimenkul Gel. Yat. Ve İnş. A.Ş. - 17.362 - - - - -
Ata Portföy Yönetimi A.Ş. - 79.205 - - - - -
Ata Holding A.Ş. (2.132.003) 217.034 - - - - -
Bedela İnşaat ve Ticaret A.Ş. - - - (4.642.797) - - -
Arbeta Turizm Org.ve Tic.A.Ş. (8.586.752) - - - - - -
Ekur İnşaat Sanayi ve Tic. A.Ş. (277.539.081) 392.198 2.252.493 - 1.888.153 1.517.008 -
Other related parties
Tusem Gıda ve Tur. İşl. Tic. Ltd. Şti. (23.848) 705.015 1.448.838 - 960.456 - -
Mes Mutfak Ekp. Tic. A.Ş. (369.462.489) 8.097.185 - - - - -
Ertuğ
Reklam San.ve Tic. A.Ş
(273.741) - - - - - -
Kınık Maden Suları
A.Ş.
(661.527) 1.419.459 4.957.354 - 2.959.235 - -
Beray Bil. Mar. İnş. Ltd. Şti. (29.050) 190.538 973.876 - 563.214 - -
Konuk Ağırlama Teknolojileri ve Uyg. A.Ş. (24.787) 911.494 2.400.526 - 4.093.103 - -
Sedko İnşaat ve Tic. .A.Ş. (888.334) - - - - - -
Ata Yatırım Menkul Kıymetler A.Ş. - 340.607 - - - - -
Atakey Patates Gıda Sanayi ve Tic. A.Ş. - - - - - - -
Zenia Limited (59.092.152) - - - - - -
4.084.543.004 1.695.668.309 12.861.528 10.109.217 10.483.165 9.604.073 17.283.089

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 24 – RELATED PARTY DISCLOSURES (cont'd)

Advances given to related parties 31 March 2025 31 December 2024
Fasdat Gıda Dağıtım San. Tic. A.Ş. 638.780.845 617.730.516
Ekur İnşaat San. Tic. A.Ş. 212.982.086 69.415.275
Mes Mutfak Ekip. San. Tic. A. Ş. 290.976.926 316.105.326
ATP Yazılım ve Teknoloji A.Ş. 35.827.483 33.880.884
1.178.567.340 1.037.132.001

Benefits provided to board members and senior management personnel are as follows:

31 March 2025 31 March 2024
Salaries and other short-term benefits 50.990.779 32.288.880
50.990.779 32.288.880

The Company consists of senior management and members of the Board of Directors. Benefits provided to senior executives include salaries, bonuses and health insurance.

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES

Financial risk management is carried out within the framework of policies approved by the Board of Directors of the Group. The majority of the members of the Group's Board of Directors consists of members from Kurdoğlu family. The Group's financial operations and risk assessment policies are managed centrally. Subsidiaries are administered as if they have a holding structure and risk assessment policies and procedures are centrally managed. The risk management policies of all these companies are disclosed as if they were within the Group holding structure.

In the normal course of business operations, the Group is exposed to various market risks such as fluctuations in exchange rates, interest rates, and raw material prices for products that are beyond its control, and these fluctuations may have a negative impact on financial assets and liabilities, future cash flows and profit. The Group's risk management program generally aims to minimize the effects of the financial market's uncertainty on the Group's financial performance.

The Group's main financial instruments are bank loans, leases, debt given to related parties, cash and short term deposits. The main purpose of these financial instruments is to generate financing for the Group's activities. The Group also has other various financial instruments resulting from its direct operations, such as trade payables and trade receivables.

The main risks arising from the Group's financial instruments are interest rate risk, foreign exchange risk, credit risk, and liquidity risk. The management develops and approves implementation policies to manage these risks.

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

a) Capital Risk Management

In capital management, the Group aims to increase its profit by using the debt and equity balance in the most efficient way while trying to ensure the continuity of its operations.

The Group's capital structure includes debts, including loans described in Note 4, and equity items, including cash and cash equivalents described in Note 3, issued capital described in Note 16, reserves and retained earnings from the previous year.

The Group evaluates the risks associated with each capital class with the capital cost by upper management. The Group aims to keep the capital structure balanced through new debt acquisition or repayment of existing debt, as well as through dividend payments, new shares issuance, and share repurchases, based on the upper management's suggestions.

The Group's net debt and capital position is as follows:

31 March 2025 31 December 2024
Total borrowings 33.775.897 23.763.150
Less: cash and cash equivalents 6.977.959.360 6.640.397.221
Net Debt (6.944.183.463) (6.616.634.071)
Total Equity 17.749.872.882 17.437.137.020

b) Financial Risk Factors

The risk management program is generally focused on minimizing the potential adverse effects of financial market uncertainty on the Group's financial performance.

The Group's risk management is carried out by a central finance department in line with policies approved by the Board of Directors. While providing services related to commercial activities, the Group's finance department is also responsible for ensuring regular access to domestic and foreign financial markets and monitoring the level and magnitude of financial risks related to the Group's activities.

b.1) Credit Risk Management

The risk of a financial loss to the Group due to a party to a financial instrument failing to meet its contractual obligations is defined as credit risk. The Group tries to reduce the credit risk by only conducting transactions with creditworthy parties and trying to obtain adequate collateral when possible. The credit risks that the Group is exposed to and the customers' credit ratings are continuously monitored.

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

b.1) Credit Risk Management (cont'd)

A large part of trade receivables are receivables from sub-franchisee companies. The credibility of sub-franchisee companies is determined by the analyses carried out on the financial structure by the franchise department and the credibility of the sub-franchisee company shareholders. In addition, during the sub-franchise agreement process, the Group requests the establishment of a credit limit with an intermediary financial institution for sub-franchisees. The credit limit is determined according to the commercial transaction volume of the sub-franchisee. According to these credit limit agreements, the Group can directly collect from financial institutions in case the receivable's due date is passed. The limit and collection risk are continuously reviewed by the Group's finance department. Also, the Group continuously conducts credit assessments about the financial status of sub-franchisees.

The total amount of credit limits opened as receivable collateral for sub-franchisees is TL 61.458.627 (31 March 2024: TL 87.110.828). The level of risks and collateral structure are constantly monitored by the Group Management.

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

Trade
Receivables
Trade
Receivables
Other
Receivables
Receivables Other Bank
Restricted
31 March 2025 Related Party Other Party Related Party Other Party Deposits
Cash
Maximum credit risk exposed (A+B+C+D+E)
-
The part of maximum risk under
guarantee with collateral
814.719.131 1.020.199.797 - 35.608.124 6.711.762.156 122.846.805
A. Net book value of financial assets that
are neither past due or impaired
B. Net book value of financial assets
that are renegotiated 814.719.131 1.020.199.797 - 35.608.124 6.711.762.156 122.846.805
C. Carrying value of financial assets
that past due but not impaired
-
The part of net value under guarantee
with collateral etc. - - - - - -
D. Net book value of impaired assets 12.979.436
-
Gross carrying amount
(12.979.436) -
-
Impairment
- - - - -
-
The part of net value under guarantee
with collateral etc. - - - - - -
E. Off-balance sheet items with credit risk (-) - - - - - -

TAB GIDA SANAYİ VE TİCARET A.Ş. AND ITS SUBSIDIARIES

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

Trade Trade Other Other
31 December 2024 Receivables
Related Party
Receivables
Other Party
Receivables
Related Party
Receivables
Other Party
Bank
Deposits
Restricted
Cash
Maximum credit risk exposed (A+B+C+D+E)
-
The part of maximum risk under
guarantee with collateral 806.268.457 717.687.507 - 39.177.877 6.566.634.993 46.473.869
A. Net book value of financial assets that
are neither past due or impaired
806.268.457 717.687.507 - 39.177.877 6.566.634.993 46.473.869
B. Net book value of financial assets
that are renegotiated - - - - - -
C. Carrying value of financial assets
that past due but not impaired - - - - - -
-
The part of net value under guarantee
with collateral etc. - - - - - -
D. Net book value of impaired assets - 14.285.526
-
Gross carrying amount
- (14.285.526) - - - -
-
Impairment
- - - - -
-
The part of net value under guarantee
with collateral etc. - - - - - -
E. Off-balance sheet items with credit risk (-) - - - - - -

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

b.2) Market risk management

The Group's activities expose it to financial risks associated with changes in foreign exchange rates (b.3.1), interest rates (b.3.2) and commodity price risk (b.3.3).

The Group's policy for these market risks is to assess potential losses and their consolidated impact and to minimise the Group's exposure to market risks. The Group's overall risk management plan focuses on the uncertainty of financial markets and seeks to minimise the potential adverse effects on the Group's financial performance. The Group management continuously assesses fluctuations in foreign currency exchange rates, interest rates and commodity prices.

b.3) Liquidity risk management

The Group manages liquidity risk by regularly monitoring forecast and actual cash flows with the treasury department and ensuring that sufficient funds and borrowing reserves are maintained by matching the maturities of financial assets and liabilities. To eliminate the risk of fund requirements, the Group has various credit lines with the most reputable financial institutions in Turkey. The Group currently has adequate credit lines and expects to keep these available credit lines available for utilisation and to renew existing credit balances as they fall due. The Group management believes that it will be able to obtain short-term financing as and when required. In addition, the Group has improved its credit lines and extended the terms of its trade payables.

Liquidity Risk Statement

The following table summarises the maturity profile of the Group's non-derivative financial liabilities. The table includes interest and principal amounts payable on the liabilities:

Contractual
Carrying cash Less than Between 1 year
31 March 2025 value flows 3 months 3-12 months and over
Bank loans 33.775.897 33.775.897 33.775.897 - -
Lease liabilities 3.961.535.707 5.794.914.899 496.996.247 1.191.804.060 4.106.114.592
Trade payables
(Related parties included) 2.510.023.296 2.625.341.692 2.305.460.677 183.059.142 136.821.873
6.505.334.900 8.454.032.488 2.836.232.821 1.374.863.202 4.242.936.465
Contractual
Carrying cash Less than Between 1 year
31 December 2024 value flows 3 months 3-12 months and over
Bank loans 23.763.150 23.763.150 23.763.150 - -
Lease liabilities 4.013.960.383 5.863.708.832 574.315.620 1.128.686.924 4.160.706.288
Trade payables
(Related parties included) 2.327.627.728 2.454.550.348 2.119.286.251 168.276.443 166.987.654
6.365.351.261 8.342.022.330 2.717.365.021 1.296.963.367 4.327.693.942

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

b.4) Foreign currency risk management

The Group is exposed to foreign exchange risk mainly due to fluctuations in US Dollar and Euro exchange rates. Foreign exchange risk is primarily related to bank borrowings and foreign currency-denominated receivables and payables. While the majority of the Group's long-term debt is denominated in USD, the Group generates its revenues and cash from operations in TL.

The Group Management periodically assesses market conditions and formulates a foreign currency strategy based on exchange rate expectations. The Group utilises TL and foreign currency-denominated borrowings and determines the rate based on the overall foreign currency strategy. Foreign currency-denominated assets and liabilities of monetary and non-monetary items are as follows:

31 March 2025
TL Equivalents USD EUR
1. Trade Receivables - - -
2a. Monetary Financial Assets 167.041.761 4.214.301 159.018
2b. Non Monetary Financial Assets - - -
3. Other - - -
4. Current Assets 167.041.761 4.214.301 159.018
5. Trade Receivables - - -
6a. Monetary Financial Assets 4.109.765 101.516 6.780
6b. Non Monetary Financial Assets - - -
7. Other - - -
8. Non-Current Assets 4.109.765 101.516 6.780
9. Total Assets (4+8) 171.151.526 4.315.817 165.798
10. Trade Payables 300.536.460 7.891.400 15.560
11. Financial Liabilities - - -
12a. Other Monetary Liabilities 40.948 - 1.000
12b. Other Non Monetary Liabilities - - -
13. Short Term Liabilities 300.577.408 7.891.400 16.560
14. Trade Payables - - -
15. Financial Liabilities - - -
16a. Other Monetary Liabilities - - -
16b. Other Non Monetary Liabilities - - -
17. Long Term Liabilities
18. Total Liabilities (13+17) 300.577.408 7.891.400 16.560
19. Derivative Instruments - - -
20. Net Foreign Exchange Asset / - - -
Liability) Position (9-18) (129.425.882) (3.575.583) 149.238
21. Net Monetary Items Foreign
Exchange Asset /(Liabilities) Position
(1+2a+5+6a-10-11-12a-14-15-16a) (129.425.882) (3.575.583) 149.238

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

31 December 2024
Total Equivalents USD EUR
1. Trade Receivables
2a. Monetary Financial Assets
-
19.737.111
-
151.813
-
177.703
2b. Non Monetary Financial Assets - - -
3. Other - - -
4. Current Assets 19.737.111 151.813 177.703
5. Trade Receivables - - -
6a. Monetary Financial Assets 6.087.070 101.516 6.780
6b. Non Monetary Financial Assets - - -
7. Other - - -
8. Non-Current Assets 6.087.070 101.516 6.780
9. Total Assets (4+8) 25.824.181 253.329 184.483
10. Trade Payables 223.213.693 3.961.014 12.281
11. Financial Liabilities - - -
12a. Other Monetary Liabilities 58.482 - 1.000
12b. Other Non Monetary Liabilities - - -
13. Short Term Liabilities 223.272.175 3.961.014 13.281
14. Trade Payables - - -
15. Financial Liabilities - - -
16a. Other Monetary Liabilities - - -
16b. Other Non Monetary Liabilities - - -
17. Long Term Liabilities - - -
18. Total Liabilities (13+17) 223.272.175 3.961.014 13.281
19. Net Foreign Exchange Asset /
Liability) Position (9-18) (197.447.994) (3.707.685) 171.202
20. Net Monetary Items Foreign
Exchange Asset /(Liabilities) Position
(1+2a+5+6a-10-11-12a-14-15-16a) (197.447.994) (3.707.685) 171.202
31 March 2025 31 December 2024
Foreign Foreign Foreign Foreign
currency currency currency currency
appreciation depreciation appreciation depreciation
If the USD changes by
against the TL 10% (13.503.404) 13.503.404 (14.397.117) 14.397.117
If the EUR changes by
against the TL 10% (607.426) 607.426 (692.220) 692.220
Total (14.110.830) 14.110.830 (15.089.337) 15.089.337

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 25 – FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES (cont'd)

Sensitivity to currency risk

The above table details the Group's sensitivity to a 10% (December 31, 2024: 10%) increase and decrease in USD and EUR exchange rates. 10% (December 31, 2024: 10%) is the sensitivity rate used when reporting foreign currency risk to key management personnel and represents management's assessment of the possible change in foreign exchange rates. The sensitivity analysis includes only outstanding monetary items denominated in foreign currencies at year-end and adjusts their translation at year-end for a 10% (December 31, 2024: 10%) change in foreign exchange rates. A negative value represents the decrease in income before tax arising from a 10% (December 31, 2024: 10%) increase in USD and EUR against TL.

b.5) Interest rate risk management

The Group's borrowings at variable interest rates expose the Group to potential interest rate risk. The Group generally enters into fixed rate interest rate contracts to hedge its exposure to interest rate risk arising from changes in interest rates. Risk management strategies are regularly evaluated based on market conditions and interest rate expectations. The risk management strategy aims to develop the most appropriate interest rate risk management for the balance sheet position and interest expense.

b.6) Commodity price risk

The Group is exposed to price risk due to fluctuations in food prices. The Group purchases large quantities of food and supplies. Weather fluctuations alter supply and demand trends, and economic conditions can adversely affect the cost, condition and quality of critical products such as meat. Failure to obtain high-quality ingredients in the required quantities may adversely affect the Group's ability to provide menus and the Group may not be able to pass on rising costs to its customers due to the highly competitive nature of the industry.

The Group supplies foodstuffs to Fasdat Gıda Dağıtım San. Tic. A.Ş. ("Fasdat"), a related party. Fasdat purchases large quantities of meat for its operations. The meat sector is subject to significant price fluctuations due to seasonal changes, government regulations, demand in the sector and other factors. The Group manages the price risk arising from foodstuffs through agreements with Fasdat that fix the price for certain products. Fasdat can fix prices for meat, chicken, potatoes and soft drinks for up to one year through purchase contracts. This allows the Group to avoid the costs of using derivative instruments, which it cannot pass on to its customers due to the competitive nature of the Quick Service Restaurants (QSR) industry while ensuring cost predictability.

FOR THE ACCOUNTING PERIOD 1 JANUARY - 31 MARCH 2025

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 31 March 2025, unless otherwise indicated.)

NOTE 26 – NET MONETARY GAIN/LOSS MOVEMENT

(99.490.308)
5.904.848
405.163.895
641.806.427
60.988.052
32.215.420
(67.453.936)
(26.293.204)
(359.793.149)
232.684
(214.823.270)
(577.438.075)
(64.745.872)
(339.294.542)
254.987.537
17.181.205
11.357.436
(4.070.160)
6.389.856
(14.633.331)
224.382
(8.440.806)
9.670.466
1.882.085

Net monetary loss (164.236.180)

NOTE 27 – SHARE BASED PAYMENTS

The calculation of earnings per share and diluted earnings per share attributable to equity holders of the parent company are as follows:

31 March 2025 31 March 2024
Net profit/(loss) attributable to equity holders of the parent company
Weighted average number of shares outstanding during the period
310.052.605
261.292.000
183.995.616
261.292.000
Earnings per share 1,19 0,70

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