Interim / Quarterly Report • Aug 27, 2024
Interim / Quarterly Report
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD JANUARY 1 – JUNE 30, 2024 (Originally issued in Turkish)
Güney Bağımsız Denetim ve SMMM A.Ş. Maslak Mah. Eski Büyükdere Cad. Orjin Maslak İş Merkezi No: 27 Daire: 57 34485 Sarıyer İstanbul - Türkiye
We have reviewed the accompanying interim condensed consolidated statement of financial position of TAB Gıda Sanayi ve Ticaret A.Ş. ("the Company") and its subsidiaries ("the Group") as of June 30, 2024 and the interim condensed consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and the consolidated statement of cash flows for the sixmonth period then ended, and explanatory notes. Group management is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with Turkish Accounting Standard 34, Interim Financial Reporting ("TAS 34"). Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.
We conducted our review in accordance with the Standard on Review Engagements ("SRE") 2410 "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review of interim financial information is substantially less in scope than an audit conducted in accordance with Independent Auditing Standards and the objective of which is to express an opinion on the financial statements. Consequently, a review of the interim financial information does not provide assurance that the audit firm will be aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial statements are not prepared, in all material respects, in accordance with TAS 34.
Güney Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik Anonim Şirketi A member firm of Ernst & Young Global Limited
August 27, 2024 İstanbul, Türkiye
| CONTENTS | PAGE |
|---|---|
| CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1-2 |
| CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME |
3 |
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | 4 |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | 5-6 |
| NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 7-53 |
| NOTE 1 ORGANIZATION AND OPERATIONS OF THE GROUP |
7-8 |
| NOTE 2 SUMMARY OF ACCOUNTING POLICIES |
8-14 |
| NOTE 3 CASH AND CASH EQUIVALENTS |
14 |
| NOTE 4 BORROWINGS |
15 |
| NOTE 5 LEASE LIABILITIES |
16 |
| NOTE 6 TRADE RECEIVABLES AND PAYABLES 16-17 |
|
| NOTE 7 OTHER RECEIVABLES AND PAYABLES |
18 |
| NOTE 8 INVENTORIES |
18 |
| NOTE 9 PROPERTY, PLANT AND EQUIPMENT 19-22 |
|
| NOTE 10 INTANGIBLE ASSETS 22-23 | |
| NOTE 11 RIGHT OF USE ASSET 23-25 | |
| NOTE 12 PROVISIONS, CONTINGENT ASSETS AND LIABILITIES 25-27 | |
| NOTE 13 EMPLOYEE BENEFITS 27-28 | |
| NOTE 14 OTHER ASSETS AND LIABILITIES | 29 |
| NOTE 15 PREPAID EXPENSES AND CONTRACT LIABILITIES 29-30 | |
| NOTE 16 EQUITY 30-31 | |
| NOTE 17 REVENUE AND COST OF SALES 31-32 | |
| NOTE 18 MARKETING, SELLING AND DISTRIBUTION AND ADMINISTRATIVE EXPENSES 32-33 | |
| NOTE 19 EXPENSE BY NATURE | 33 |
| NOTE 20 OTHER OPERATING INCOME AND EXPENSES | 34 |
| NOTE 21 INCOME AND EXPENSES FROM INVESTING ACTIVITIES | 35 |
| NOTE 22 FINANCE INCOME AND FINANCE EXPENSES 35-36 | |
| NOTE 23 INCOME TAXES (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 36-38 | |
| NOTE 24 RELATED PARTY DISCLOSURES 39-46 | |
| NOTE 25 FINANCIAL RISK MANAGEMENT OBJECTIVE AND POLICIES 46-54 | |
| NOTE 26 SHARE BASED PAYMENTS | 54 |
| NOTE 27 EVENTS AFTER THE REPORTING PERIOD | 54 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Reviewed | Audited | ||
|---|---|---|---|
| Notes | 30 June 2024 | 31 December 2023 | |
| ASSET | |||
| Cash and cash equivalents | 3 | 4.992.427.961 | 4.920.871.036 |
| Trade receivables | |||
| Trade receivables from related parties | 6-24 | 597.310.465 | 330.498.339 |
| Trade receivables from third parties | 6 | 658.469.960 | 480.132.800 |
| Other receivables | |||
| Other receivables from third parties | 7 | 6.283.275 | 3.562.658 |
| Inventories | 8 | 373.077.382 | 351.841.801 |
| Prepaid expenses | 15 | 1.121.730.412 | 1.040.768.701 |
| Other current assets | 14 | 42.625.463 | 23.383.734 |
| Total Current Assets | 7.791.924.918 | 7.151.059.069 | |
| Other receivables | |||
| Other receivables from third parties | 7 | 28.110.070 | 33.451.514 |
| Property, plant and equipment | 9 | 7.092.926.012 | 6.519.330.427 |
| Intangible assets | 10 | 723.928.309 | 729.124.002 |
| Right of use assets | 11 | 4.996.628.672 | 4.401.319.281 |
| Prepaid expenses | 15 | 44.410.554 | 42.201.190 |
| Other non-current assets | 14 | 8.410.842 | 7.472.486 |
| Total Non-Current Assets | 12.894.414.459 | 11.732.898.900 | |
| TOTAL ASSETS | 20.686.339.377 | 18.883.957.969 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Notes | Reviewed 30 June 2024 |
Audited 31 December 2023 |
|
|---|---|---|---|
| LIABILITIES | |||
| Short-term borrowings | 4 | 28.737.214 | 70.729.017 |
| Current portion of long-term borrowings | 4 | 17.848.958 | 45.001.186 |
| Short-term lease liabilities | 5 | 1.103.453.579 | 865.840.513 |
| Trade payables | |||
| Trade payables to related parties | 6-24 | 1.511.943.461 | 1.323.323.278 |
| Trade payables to third parties | 6 | 608.814.759 | 544.542.215 |
| Other payables | |||
| Other payables to related parties | 7 | 146.500.000 | - |
| Other payables to third parties | 7 | 782.414 | 1.012.292 |
| Employee benefit payables | 13 | 565.556.948 | 398.592.737 |
| Short-term provisions | |||
| Provisions for employee benefits | 13 | 160.392.695 | 126.610.457 |
| Litigation provisions | 12 | 23.448.614 | 31.330.719 |
| Contract liabilities | 15 | 191.998.213 | 214.984.319 |
| Current tax liabilities | 23 | 63.920.806 | 186.304.464 |
| Other current liabilities | 14 | 125.380.954 | 93.832.877 |
| Total Current Liabilities | 4.548.778.615 | 3.902.104.074 | |
| Long-term lease liabilities | 5 | 1.889.943.161 | 1.674.884.639 |
| Trade payables | |||
| Trade payables to third parties | 6 | 136.397.630 | 174.893.807 |
| Provision for employee benefits | 13 | 142.722.913 | 125.055.007 |
| Contract liabilities | 15 | 167.511.202 | 228.039.388 |
| Deferred tax liabilities | 23 | 876.291.491 | 704.801.067 |
| Total Non-Current Liabilities | 3.212.866.397 | 2.907.673.908 | |
| EQUITY | |||
| Share capital | 16 | 261.292.000 | 261.292.000 |
| Adjustments to share capital | 16 | 2.232.381.788 | 2.232.381.788 |
| Share premium | 4.590.421.663 | 4.590.421.663 | |
| Restricted reserves separated from profit | 169.587.459 | - | |
| Other comprehensive expenses | |||
| to be reclassified | |||
| - Currency translation reserves |
16 | 99.509.984 | 15.350.934 |
| Other comprehensive income or expenses | |||
| not to be reclassified | |||
| - Remeasurement gains of |
|||
| defined benefit plans | 16 | 4.486.771 | 4.632.817 |
| - Revaluation of property, |
|||
| plant and equipment | 16 | 624.916.663 | 624.916.663 |
| Net profit for the period | 913.001.374 | 3.065.712.544 | |
| Retained earnings | 4.029.096.663 | 1.279.471.578 | |
| Total Equity | 12.924.694.365 | 12.074.179.987 | |
| TOTAL LIABILITIES AND EQUITY | 20.686.339.377 | 18.883.957.969 |
| Notes | 1 January - 30 June 2024 |
1 April - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|---|
| Profit or loss | |||||
| Revenue | 17 | 13.676.895.028 | 7.528.089.607 | 12.984.268.011 | 7.263.982.140 |
| Cost of sales (-) | 17 | (11.382.183.280) | (6.029.122.138) | (10.740.577.919) | (5.659.679.475) |
| Gross profit | 2.294.711.748 | 1.498.967.469 | 2.243.690.092 | 1.604.302.665 | |
| General administrative expenses (-) | 18 | (493.333.727) | (261.214.273) | (477.328.777) | (266.573.391) |
| Marketing expenses (-) | 18 | (645.299.225) | (288.793.983) | (649.446.329) | (331.329.570) |
| Other operating income | 20 | 227.801.559 | 115.883.666 | 374.801.010 | 178.681.227 |
| Other operating expenses (-) | 20 | (214.103.857) | (87.119.993) | (301.976.382) | (119.532.917) |
| Operating profit | 1.169.776.498 | 977.722.886 | 1.189.739.614 | 1.065.548.014 | |
| Income related to investing activities | 21 | 824.517.938 | 404.135.958 | 238.198.218 | 123.110.518 |
| Expense related to investing activities (-) | 21 | (25.423.651) | (18.371.842) | (60.469.768) | (19.419.666) |
| Operating profit before financial expenses | 1.968.870.785 | 1.363.487.002 | 1.367.468.064 | 1.169.238.866 | |
| Financial income | 22 | 150.496.612 | 105.504.636 | 116.465.922 | 65.822.262 |
| Financial expenses (-) | 22 | (384.834.731) | (194.519.088) | (803.374.232) | (562.876.311) |
| Monetary (loss)/gain |
(457.587.063) | (355.165.193) | 1.018.000.398 | 240.439.185 | |
| Earning before tax | 1.276.945.603 | 919.307.357 | 1.698.560.152 | 912.624.002 | |
| Tax income | |||||
| Current tax expense | 23 | (190.855.715) | (70.137.087) | (14.956.945) | (12.236.372) |
| Deferred tax income | 23 | (173.088.514) | (80.596.632) | 444.951.696 | (33.893.645) |
| Net profit for the year | 913.001.374 | 768.573.638 | 2.128.554.903 | 866.493.985 | |
| Earning per share (TL) |
3,49 | 2,94 | 9,16 | 3,73 |
| 1 January - 30 June 2024 |
1 April - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2023 |
||
|---|---|---|---|---|---|
| OTHER COMPREHENSİVE İNCOME | |||||
| Items to be reclassified subsequently to profit or loss: -Change in foreign currency translation differences |
84.159.050 | 116.388.128 | (90.915.607) | (35.370.407) | |
| Items that will not be reclassified subsequently to profit or loss |
|||||
| Income related to revaluation of defined | |||||
| benefit plans and measurement gains | 13 | (194.729) | 841.554 | 5.486.199 | (4.383.367) |
| Tax income / (expense) to revaluation of defined | |||||
| benefit plans and measurement | 23 | 48.683 | (203.456) | (1.097.240) | 1.370.152 |
| Income related to revaluation increase | |||||
| on property, plant and equipment | - | - | 5.147.778 | (412.076) | |
| TOTAL COMPREHENSIVE INCOME | 997.014.378 | 885.599.864 | 2.047.176.033 | 827.698.287 |
| Other comprehensive income / (expense) will be reclassified to profit or loss |
will not Remeasurement |
Other comprehensive income / (expense) be reclassified to profit or loss |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Notes | Share Capital |
Adjustment to share capital |
Share premium |
Restricted reserves seperated from profit |
Currency translation differences |
of defined benefit liabilities |
Revaluation of Property, Plant and Equipment |
Net Income for the period |
Retained earnings |
Total |
| Balance at 1 January 2024 16 |
261.292.000 | 2.232.381.788 | 4.590.421.663 | - | 15.350.934 | 4.632.817 | 624.916.663 | 3.065.712.544 | 1.279.471.578 | 12.074.179.987 |
| Profit for the year Other comprehensive expense |
- - |
- - |
- - |
- - |
- 84.159.050 |
- (146.046) |
- - |
913.001.374 - |
- - |
913.001.374 84.013.004 |
| Total comprehensive profit | - | - | - | - | 84.159.050 | (146.046) | - | 913.001.374 | - | 997.014.378 |
| Dividend payment Transfers |
- - |
- - |
- - |
- 169.587.459 |
- - |
- - |
- - |
- (3.065.712.544) |
(146.500.000) 2.896.125.085 |
(146.500.000) - |
| Balance at 1 June 2024 | 261.292.000 | 2.232.381.788 | 4.590.421.663 | 169.587.459 | 99.509.984 | 4.486.771 | 624.916.663 | 913.001.374 | 4.029.096.663 | 12.924.694.365 |
| Balance at 1 January 2023 16 |
232.417.000 | 2.224.185.380 | - | - | (4.860.408) | 7.644.528 | 297.411.669 | 2.311.924.920 | (1.032.453.342) | 4.036.269.747 |
| Profit for the year | - | - | - | - | - | - | - | 2.128.554.903 | - | 2.128.554.903 |
| Other comprehensive expense | - | - | - | - | (90.915.607) | 4.388.959 | 5.147.778 | - | - | (81.378.870) |
| Total comprehensive profit Transferler |
- - |
- - |
- - |
- - |
(90.915.607) - |
4.388.959 - |
5.147.778 - |
2.128.554.903 (2.311.924.920) |
- 2.311.924.920 |
2.047.176.033 - |
| Balance at 1 June 2023 | 232.417.000 | 2.224.185.380 | - | - | (95.776.015) | 12.033.487 | 302.559.447 | 2.128.554.903 | 1.279.471.578 | 6.083.445.780 |
FOR THE ACCOUNTING PERIODS 1 JANUARY - 30 JUNE 2024 AND 2023
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Notes | 1 January - 30 June 2024 |
1 January 30 June 2023 |
|
|---|---|---|---|
| Cash Flows From Operating Activities | |||
| Net profit for the period | 913.001.374 | 2.128.554.903 | |
| Adjustments related to reconciliation | |||
| of net profit for the period | 1.588.419.803 | 696.139.122 | |
| Depreciation and amortization expense | 9-10 | 675.674.370 | 637.968.193 |
| Adjustments for impairment | |||
| impairment and expenses related to closed restaurants | 21 | 22.140 | 5.560.224 |
| Adjustments for provisions | |||
| provisions related to employee benefits | 13 | 188.391.658 | 271.932.083 |
| Adjustment related to provisions | |||
| for litigation and/or penalties | 12 | 8.255.183 | 23.831.500 |
| Adjustments related to interest income and expenses | |||
| Interest income | 21-22 | (711.158.493) | (201.153.466) |
| Adjustments related to participation share | 21 | (234.258.970) | - |
| Interest expense | 22 | 4.072.034 | 221.436.009 |
| Deferred financial income | |||
| arising from forward purchases | 20 | 8.376.634 | 14.394.429 |
| Unearned finance expense | |||
| arising from credit sales | 20 | (110.191.551) | (56.673.854) |
| Depreciation and amortisation on leases | 11 | 940.368.838 | 854.451.517 |
| Interest expense on leases, net | 22-11 | 192.042.619 | 148.279.698 |
| Exchange rate difference expense related to leases | 22.038.500 | 72.698.553 | |
| Adjustments related to unrealised | |||
| foreign currency translation differences | - | 50.857.389 | |
| Insurance income | 21 | (11.925.384) | (88.885.266) |
| Adjustments related to tax (income) / expense | 23 | 363.944.229 | (429.994.751) |
| Adjustments related to gain | |||
| on disposal of property, plant and equipment | 21 | 5.296.588 | 35.599.281 |
| Monetory gain | 21 | 247.471.408 | (864.162.417) |
| Changes in Working Capital | 247.882.875 | 647.440.398 | |
| Adjustments related to (increase)/decrease in trade receivables | |||
| Increase in due from related parties | (364.908.147) | (276.330.348) | |
| Increase in trade receivables from third parties | (308.754.130) | (491.081.393) | |
| Adjustments related to (increase)/decrease | |||
| in other current and non-current assets | (28.146.167) | 5.871.204 | |
| (Increase)/decrease in inventories | (99.920.423) | (227.848.965) | |
| (Increase)/decrease in prepaid expenses | (326.733.935) | (96.390.308) | |
| Adjustments for increase in trade payables | |||
| (Increase)/decrease in due to related parties | 399.087.581 | 945.546.564 | |
| (Increase)/decrease in trade payables to third parties | 393.685.632 | 328.623.520 | |
| Other payables / liabilities (decrease)/increase | 588.753.766 | 467.712.795 | |
| Increase/(decrease) in other liabilities | (5.181.302) | (8.662.671) | |
| Cash Flows From Operations | (384.051.755) | (202.909.759) | |
| Income taxes paid | 23 | (317.803.501) | (17.564.095) |
| Employee benefits paid Litigation paid |
13 | (56.160.242) (10.088.012) |
(176.954.060) (8.391.604) |
FOR THE ACCOUNTING PERIODS 1 JANUARY - 30 JUNE 2024 AND 2023
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Notes | 1 January - 30 June 2024 |
1 January 30 June 2023 |
|
|---|---|---|---|
| Cash Flows From Investing Activities | (360.829.285) | (1.444.482.980) | |
| Cash inflows from disposal | |||
| of property, plant and equipment | 9 | - | 21.751.913 |
| Cash outflows from acquisition | |||
| of property, plant and equipment | 9 | (1.246.472.166) | (630.004.877) |
| Cash outflows from acquisition of intangible assets | 10 | (71.699.966) | (92.808.461) |
| Cash advances given to related parties | - | (1.033.460.287) | |
| Cash inflows from insurance | 11.925.384 | 88.885.266 | |
| Participation share received | 234.258.970 | -s | |
| Interest received | 21-22 | 711.158.493 | 201.153.466 |
| Cash Flows From Financing Activities | (957.068.408) | (1.193.456.405) | |
| Cash inflows from borrowings | 4 | 120.811.119 | 971.483.766 |
| Cash outflows related to loan repayments | 4 | (171.634.991) | (1.113.142.990) |
| Interest paid | 4 | (4.146.828) | (231.282.535) |
| Interest payments related to lease transactions | 5 | (192.042.619) | (148.737.315) |
| Payments for lease transactions | 5 | (710.055.089) | (671.777.331) |
| THE EFFECT OF MONETARY LOSS ON | |||
| CASH AND CASH EQUIVALENTS | (975.797.679) | (179.205.227) | |
| NET CHANGE IN | |||
| CASH AND CASH EQUIVALENTS | 71.556.925 | 452.080.052 | |
| CASH AND CASH EQUIVALENTS | |||
| AT THE BEGINNING OF THE PERIOD | 3 | 4.920.871.036 | 349.021.607 |
| CASH AND CASH EQUIVALENTS | |||
| AT THE END OF THE PERIOD | 3 | 4.992.427.961 | 801.101.659 |
indicated.)
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 30 June 2024 the average number of personnel employed during the year is 14.917 (31 December 2023: 15.454).
As of 30 June 2024, the Group has a total of 1.710 open restaurants. The number of franchise restaurants in the total number of open restaurants is 752 as of 30 June 2024. (31 December 2023: The number of Group restaurants is 1.615, of which 687 are franchise restaurants).
TFI TAB Gıda Yatırımları Anonim Şirketi is the main shareholder of the Group and the main controlling party.
As at 30 June 2024, the list of subsidiaries is as follows:
A brief description of the Company's subsidiaries is as follows:
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
As at 30 June 2024, the list of branches is as follows:
• TAB Gıda Sanayi ve Ticaret A.Ş. – Northern Cyprus Branch "KUZEY KIBRIS"
The consolidated financial statements have been approved by the Board of Directors and authorised for issue on 27 August 2024. The General Assembly and other regulatory bodies are authorised to amend and restate the financial statements.
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. The consolidated financial statements of the Group are prepared as per the CMB announcement of 4 October 2022 relating to financial statements presentations.
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.
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 2024 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 2005, were as follow:
| Year end | Index |
|---|---|
| 2021 | 686,95 |
| 2022 | 1.128,45 |
| 2023 | 1.859,38 |
| 2024/06 | 2.319,29 |
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.
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 30 June 2024, the buying exchange rates for assets are 1 Macedonian Dinar = TL 0,5718 and 1 Lari = TL 11,7096 (31 December 2023: 1 Macedonian Dinar = TL 0,5310 and 1 Lari = TL 10,9890), and the selling exchange rates for liabilities are 1 Macedonian Dinar = TL 0,5696 and 1 Lari = TL 12,0048 (31 December 2023: 1 Macedonian Dinar = TL 0,5310 and 1 Lari = TL 10,9890).
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
The details of the Company's subsidiaries as at 30 June 2024 and 31 December 2023 are as follows:
| Subsidiaries | Business Segment | Country of Origin | 30 June 2024 |
31 December 2023 |
|---|---|---|---|---|
| TAB Georgia LLC | Quick Service Restaurant |
Georgia | %100 | %100 |
| TAB Limited Makedonija Dooel Petrovec |
Quick Service Restaurant |
Macedonia | %100 | %100 |
As at 30 June 2024 and 31 December 2023, the Group's branch information is as follows:
| Branch Name | Business Segment | Country of Origin |
|---|---|---|
| TAB Gıda Sanayi ve Ticaret A.Ş. | Quick Service Restaurant | Northern Cyprus |
– Northern Cyprus Branch
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:
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:
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.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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.
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.
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.
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.
The accounting policies adopted in preparation of the consolidated financial statements as of March 31, 2024 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, 2024 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, 2024 are as follows:
In March 2020 and January 2023, POA issued amendments to TAS 1 to specify the requirements for classifying liabilities as current or non-current. According to the amendments made in January 2023 if an entity's right to defer settlement of a liability is subject to the entity complying with the required covenants at a date subsequent to the reporting period ("future covenants"), the entity has a right to defer settlement of the liability even if it does not comply with those covenants at the end of the reporting period. In addition, January 2023 amendments require an entity to provide disclosure when a liability arising from a loan agreement is classified as non-current and the entity's right to defer settlement is contingent on compliance with future covenants within twelve months. This disclosure must include information about the covenants and the related liabilities. The amendments clarify that the requirement for the right to exist at the end of the reporting period applies to covenants which the entity is required to comply with on or before the reporting date regardless of whether the lender tests for compliance at that date or at a later date. The amendments also clarified that the classification of a liability is unaffected by the likelihood that the entity will exercise its right to defer settlement of the liability for at least twelve months after the reporting period. The amendments must be applied retrospectively in accordance with TAS 8.
The amendments did not have a significant impact on the financial position or performance of the Group.
In January 2023, POA issued amendments to TFRS 16. The amendments specify the requirements that a sellerlessee uses in measuring the lease liability arising in a sale and leaseback transaction, to ensure the seller-lessee does not recognise any amount of the gain or loss that relates to the right of use it retains. In applying requirements of TFRS 16 under "Subsequent measurement of the lease liability" heading after the commencement date in a sale and leaseback transaction, the seller lessee determines 'lease payments' or 'revised lease payments' in such a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. The amendments do not prescribe specific measurement requirements for lease liabilities arising from a leaseback. The initial measurement of the lease liability arising from a leaseback may result in a sellerlessee determining 'lease payments' that are different from the general definition of lease payments in TFRS 16. The seller-lessee will need to develop and apply an accounting policy that results in information that is relevant and reliable in accordance with TAS 8. A seller-lessee applies the amendments retrospectively in accordance with TAS 8 to sale and leaseback transactions entered into after the date of initial application of TFRS 16.
The amendments did not have a significant impact on the financial position or performance of the Group.
The amendments issued by POA in September 2023 specify disclosure requirements to enhance the current requirements, which are intended to assist users of financial statements in understanding the effects of supplier finance arrangements on an entity's liabilities, cash flows and exposure to liquidity risk. Supplier finance arrangements are characterized by one or more finance providers offering to pay amounts an entity owes its suppliers and the entity agreeing to pay according to the terms and conditions of the arrangements at the same date as, or a date later than, suppliers are paid. The amendments require an entity to provide information about terms and conditions of those arrangements, quantitative information on liabilities related to those arrangements as at the beginning and end of the reporting period and the type and effect of non-cash changes in the carrying amounts of those liabilities. In the context of quantitative liquidity risk disclosures required by TFRS 7, supplier finance arrangements are also included as an example of other factors that might be relevant to disclose.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
The amendments did not have a significant impact on the financial position or performance of the Group.
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.
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.
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, 2025 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.
In September 2023, POA issued amendments to TAS 12, which introduce a mandatory exception in TAS 12 from recognizing and disclosing deferred tax assets and liabilities related to Pillar Two income taxes. The amendments clarify that TAS 12 applies to income taxes arising from tax laws enacted or substantively enacted to implement the Pillar Two Model Rules published by the Organization for Economic Cooperation and Development (OECD). The amendments also introduced targeted disclosure requirements for entities affected by the tax laws. The temporary exception from recognition and disclosure of information about deferred taxes and the requirement to disclose the application of the exception apply immediately and retrospectively upon issue of the amendments.
The amendments did not have a significant impact on the financial position or performance of the Group.
The condensed consolidated financial statements for the interim period ended March 31, 2024 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, 2023. Accordingly, the condensed consolidated financial statements should be read in conjunction with the financial statements for the year ended December 31, 2023.
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.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Cash on hand | 61.800.603 | 54.160.997 |
| Demand deposits at bank | 87.434.948 | 165.746.960 |
| Time deposits at bank | 4.786.846.112 | 4.656.253.305 |
| Other cash equivalents (*) | 56.346.298 | 44.709.774 |
| 4.992.427.961 | 4.920.871.036 |
(*) 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 | 30 June 2024 | |
| TL | %40 | July – 25 Sep 2024 | 4.786.846.112 |
| 4.786.846.112 | |||
| Currency Type | |||
| Interest Rate (%) | Maturity | 31 December 2023 | |
| TL | %40 - %47 | 2 Jan - 29 Mar 2024 | 3.968.182.852 |
| USD | %45 | 2 Jan 2024 | 688.070.453 |
| 4.656.253.305 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
The details of the Group's financial liabilities as at 30 June 2024 and 31 December 2023 are as follows:
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short term bank borrowings | 28.737.214 | 70.729.017 |
| Current portion of long-term borrowings | 17.848.958 | 45.001.186 |
| Total borrowings | 46.586.172 | 115.730.203 |
Details of the bank loans are as follows:
| Currency Type | Weighted Average Effective Interest Rate |
31 March 2024 Current |
|---|---|---|
| TL | 31,6% | 46.586.172 |
| 46.586.172 | ||
| Currency Type | Weighted Average Effective Interest Rate |
31 December 2023 Current |
| TL | %39,8 | 115.730.203 |
| 115.730.203 |
The movement of the Group's financial liabilities as at 31 March 2024 and 2023 is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance as of 1 January | 115.730.203 | 2.559.359.057 |
| Cash inflow from borrowings | 120.811.119 | 971.483.766 |
| Cash outflows from borrowings | (171.634.991) | (1.113.142.990) |
| Exchange differences | - | 285.004.196 |
| Interest payments | (4.146.828) | (231.282.535) |
| Interest expense | 4.072.034 | 224.762.615 |
| Monetary gain | (18.245.365) | (252.955.262) |
| Closing balance at 30 June | 46.586.172 | 2.443.228.847 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short-term lease liabilities | 1.103.453.579 | 865.840.513 |
| Total short-term lease liabilities | 1.103.453.579 | 865.840.513 |
| Long-term lease liabilities | 1.889.943.161 | 1.674.884.639 |
| Total long-term lease liabilities | 1.889.943.161 | 1.674.884.639 |
| Total lease liabilities | 2.993.396.740 | 2.540.725.152 |
| 30 June 2024 | 31 December 2023 | |
| To be paid within 1 year | 1.103.453.579 | 865.840.513 |
| To be paid between 1-2 years | 668.385.410 | 587.970.012 |
| To be paid between 2-3 years | 474.785.013 | 412.513.373 |
| To be paid between 3-4 years | 185.626.254 | 268.379.095 |
| To be paid after 4+ years | 561.146.484 | 406.022.159 |
| 2.993.396.740 | 2.540.725.152 |
The movement of the Group's finance lease payables as at 30 June 2024 and 2023 is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance as of 1 January | 2.540.725.152 | 2.837.947.476 |
| Purchases | 1.566.159.166 | 1.057.463.827 |
| Payments | (710.055.089) | (671.777.331) |
| Exchange differences, net | 22.038.500 | 72.698.553 |
| Interest expense | 192.042.619 | 148.737.315 |
| Monetary gain | (617.513.608) | (313.829.328) |
| Closing balance at 30 June | 2.993.396.740 | 3.131.240.512 |
| Current trade receivables | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Trade receivables | 664.445.287 | 488.568.795 |
| Notes receivable | 787.829 | - |
| Trade receivables from related parties (Note 24) | 597.310.465 | 330.498.339 |
| Impairment provision for trade receivables (-) | (6.763.156) | (8.435.995) |
| 1.255.780.425 | 810.631.139 |
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. Average maturity for trade receivables is 8 days
(31 December 2023: 9 days). The average maturity of trade receivables from related parties in 2024 is 20 days. (31 December 2023: 29 days).Trade receivables are discounted using an annual interest rate of 43,90% (2023:37,22%).
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
The impairment provision for trade receivables has been determined based on past experience of uncollectibility.
Notes receivables balance consists of post-dated cheques and notes received from franchisors within the scope of commercial works.
The movement of impairment provision for trade receivables is as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance as of 1 January | (8.435.995) | 2.336.980 |
| Monetary gain/loss | 1.672.839 | (4.288.137) |
| Closing balance at 31 March | (6.763.156) | (1.951.157) |
The nature and level of risks related to trade receivables are disclosed in Note 25.
| Short-term trade payables | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Trade payables (*) | 417.536.568 | 388.065.543 |
| Trade payables to related parties (Note 24) | 1.511.943.461 | 1.323.323.278 |
| Accrued expenses | 191.278.191 | 156.476.672 |
| 2.120.758.220 | 1.867.865.493 | |
| Long-term trade payables | ||
| Trade payables (*) | 136.397.630 | 174.893.807 |
| 136.397.630 | 174.893.807 |
On 29 March 2019, RBI and Tab Gıda signed a Second Amended and Restated Development Agreement ("MFDA") for exclusive rights and licences to operate Burger King restaurants in Turkey, effective until 1 December 2031. According to the MFDA, payments must be repaid in amounts indicating the annual franchise fees. 2019 annual franchise fees for 20 restaurants; 2020 annual franchise fees for 35 restaurants; annual franchise fees for 40 restaurants each year between 2021 and 2031. On 30 September 2020 and 14 October 2020, due to COVID-19, the development target for 2020 was set to 0 and the development calendar was extended from 2031 to 2032. Therefore, the annual franchise fees payable in 2020 for 35 restaurants became the annual franchise fee for 2021. The annual franchise fees to be paid for 40 restaurants between 2021 and 2031 will be realised between 2022 and 2032. According to this agreement, the total liability from the balance sheet date until 2032 is reflected in the financial statements and the amounts are TL 25.357.800 for short term trade payables and TL 136.397.630 for long-term trade payables.
The average maturity of trade payables is 12 days (31 December 2023: 12 days). Average maturity of trade payables to related parties is 25 days (31 December 2023: 25 days).
Trade payables are discounted using the effective interest method. The effective interest rate of 37,22% has been used to determine the value of trade payables (31 December 2023: 37,22%).
The nature and level of risks related to trade payables are disclosed in Note 25.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Short-term other receivables | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Receivables from tax office | 4.114.890 | 1.906.498 |
| Deposits and guarantees given | 2.005.825 | 1.404.555 |
| Accrued income | 162.560 | 251.605 |
| 6.283.275 | 3.562.658 | |
| Long-term other receivables | ||
| Deposits and guarantees given (*) | 23.786.096 | 28.582.598 |
| Other 4.323.974 |
4.868.916 | |
| 28.110.070 | 33.451.514 |
(*) 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.
| Short-term other payables | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Dividend payment | 146.500.000 | - |
| Deposits and guarantees received (*) | 715.337 | 885.254 |
| Other | 67.077 | 127.038 |
| 147.282.414 | 1.012.292 |
(*) Deposits and guarantees represent the deposits received from the relevant sub-franchisee companies for connection fees such as electricity, natural gas and water. Deposit amounts are returned at the end of the lease agreement.
The nature and level of risks related to other receivables and payables are disclosed in Note 25.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Raw materials | 348.255.537 | 328.183.922 |
| Other inventory | 24.821.845 | 23.657.879 |
| 373.077.382 | 351.841.801 |
| Plant | Leasehold improvements |
Construction in progress |
Total | |||
|---|---|---|---|---|---|---|
| Machinery & |
Furniture & | |||||
| Equipment | Vehicles | Fixture | ||||
| Cost: | ||||||
| Opening balance as of 1 January 2024 | 8.929.100.919 | 32.745.070 | 3.296.735.555 | 2.859.781.804 | 238.777.126 | 15.357.140.474 |
| Additions | 470.369.150 | - | 264.743.767 | 383.000.159 | 128.359.090 | 1.246.472.166 |
| Disposals | (6.058.940) | (93.130) | (3.050.325) | (118.815) | - | (9.321.210) |
| Currency translation effect | - | - | (36.077.217) | (3.492.249) | - | (39.569.466) |
| Closing balance on | ||||||
| 30 June 2024 |
9.393.411.129 | 32.651.940 | 3.522.351.780 | 3.239.170.899 | 367.136.216 | 16.554.721.964 |
| Accumulated Depreciation: | ||||||
| Opening balance as of 1 January 2024 | (5.395.110.066) | (6.783.074) | (2.039.881.527) | (1.396.035.380) | - | (8.837.810.047) |
| Charge for the period | (351.655.719) | (3.835.669) | (133.961.028) | (153.692.812) | - | (643.145.228) |
| Disposals | 3.743.936 | 87.770 | 178.072 | 14.844 | - | 4.024.622 |
| Currency translation effect | - | - | 14.968.338 | 166.363 | - | 15.134.701 |
| Closing balance on | ||||||
| 31 June 2024 |
(5.743.021.849) | (10.530.973) | (2.158.696.145) | (1.549.546.985) | - | (9.461.795.952) |
| Net Book Value | 3.650.389.280 | 22.120.967 | 1.363.655.637 | 1.689.623.914 | 367.136.216 | 7.092.926.012 |
The depreciation expenses amounting to TL 583.332.722 have been included in the cost of goods sold, and TL 59.812.506 have been included in general administrative expenses (as of June 30, 2023: TL 563.389.650 included in the cost of sales and TL 57.767.627 included in general administrative expenses).
| Plant | Leasehold | Construction in progress |
||||
|---|---|---|---|---|---|---|
| Machinery & |
Furniture & | |||||
| Equipment | Vehicles | Fixture | improvements | Total | ||
| Cost: | ||||||
| Opening balance as of 1 January 2023 |
7.759.915.160 | 19.501.390 | 2.874.621.421 | 2.319.851.679 | 147.028.244 | 13.120.917.894 |
| Additions | 151.988.879 | - | 209.462.200 | 257.150.388 | 11.403.410 | 630.004.877 |
| Disposals | (73.097.955) | (14.348.736) | (23.971.399) | (48.698.698) | - | (160.116.788) |
| Translation difference |
- | - | 108.153.510 | 7.859.275 | - | 116.012.785 |
| Closing balance on | ||||||
| 30 June 2023 |
7.838.806.084 | 5.152.654 | 3.168.265.732 | 2.536.162.644 | 158.431.654 | 13.706.818.768 |
| Accumulated Depreciation: | ||||||
| Opening balance as of 1 January 2023 |
(4.421.782.405) | (16.688.324) | (1.772.084.377) | (1.207.409.463) | - | (7.417.964.569) |
| Charge for the period | (301.819.962) | (934.717) | (189.040.147) | (129.362.451) | - | (621.157.277) |
| Disposals | 42.269.903 | 12.596.994 | 20.008.028 | 27.890.669 | - | 102.765.594 |
| Translation difference |
- | - | (33.320.351) | (567.999) | - | (33.888.350) |
| Closing balance on | ||||||
| 31 June 2023 |
(4.681.332.464) | (5.026.047) | (1.974.436.847) | (1.309.449.244) | - | (7.970.244.602) |
| Net Book Value | 3.157.473.620 | 126.607 | 1.193.828.885 | 1.226.713.400 | 158.431.654 | 5.736.574.166 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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).
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 30 June 2024, 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 | - | 3.650.389.280 | - |
| - | 3.650.389.280 | - | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 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. |
| Initial | Rights and | ||
|---|---|---|---|
| Franchise Fees | Licenses | Total | |
| Cost: | |||
| Opening balance | |||
| as of 1 January 2024 | 566.893.906 | 592.893.847 | 1.159.787.753 |
| Additions | 20.332.517 | 51.367.449 | 71.699.966 |
| Disposals | - | (308.444) | (308.444) |
| Currency translation differences | (44.063.214) | - | (44.063.214) |
| Closing balance | |||
| as of 30 June 2024 | 543.163.209 | 643.952.852 | 1.187.116.061 |
| Accumulated Amortization: | |||
| Opening balance | |||
| as of 1 January 2024 | (192.316.454) | (238.347.297) | (430.663.751) |
| Charge for period | (10.572.784) | (21.956.358) | (32.529.142) |
| Disposals | - | 5.141 | 5.141 |
| Currency translation effects | - | - | - |
| Closing balance | |||
| as of 30 June 2024 | (202.889.238) | (260.298.514) | (463.187.752) |
| Net Book Value | 340.273.971 | 383.654.338 | 723.928.309 |
The depreciation expenses of TL 29.503.932 have been included in the cost of goods sold, and TL 3.025.210 have been included in general administrative expenses (as of June 30, 2023: TL 15.247.501 included in the cost of sales and TL 1.563.415 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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Initial | Rights and | ||
|---|---|---|---|
| Franchise Fees | Licenses | Total | |
| Cost: | |||
| Opening balance | |||
| as of 1 January 2023 | 546.951.697 | 506.098.816 | 1.053.050.513 |
| Additions | 70.573.314 | 22.235.147 | 92.808.460 |
| Disposals | (1.621.264) | (110.855) | (1.732.119) |
| Currency translation effect | (44.045.737) | - | (44.045.737) |
| Closing balance | |||
| as of 30 June 2023 | 571.858.010 | 528.223.107 | 1.100.081.117 |
| Accumulated Amortization: | |||
| Opening balance | |||
| as of 1 January 2023 | (172.959.557) | (202.987.499) | (375.947.056) |
| Charge for the period | (9.302.506) | (7.508.410) | (16.810.916) |
| Disposals | 504.394 | 53.185 | 557.579 |
| Currency translation effect | (731.983) | - | (731.983) |
| Closing Balance | |||
| As of 30 June 2023 | (182.489.652) | (210.442.724) | (392.932.376) |
| Net Book Value | 389.368.358 | 317.780.383 | 707.148.741 |
| Restaurants | Property | Vehicles | Total | |
|---|---|---|---|---|
| Cost: | ||||
| Opening balance | ||||
| as of 1 January 2024 | 7.963.446.267 | 40.943.322 | 49.290.203 | 8.053.679.792 |
| Additions | 1.557.212.379 | 7.887.611 | 1.059.176 | 1.566.159.166 |
| Disposals | (144.715.548) | - | (15.135.699) | (159.851.247) |
| Currency translation effect | (8.975.233) | - | - | (8.975.233 |
| Closing balance | ||||
| as of 30 June 2024 | 9.366.967.865 | 48.830.933 | 35.213.680 | 9.451.012.478 |
| Accumulated Amortization: | ||||
| Opening balance | ||||
| as of 1 January 2024 | (3.590.342.624) | (27.347.328) | (34.670.559) | (3.652.360.511) |
| Charge for the period | (916.281.086) | (13.282.384) | (10.805.368) | (940.368.838) |
| Disposals | 124.355.640 | - | 11.217.132 | 135.572.772 |
| Currency translation effect | 2.772.771 | - | - | 2.772.771 |
| Closing balance | ||||
| as of 30 June 2024 | (4.379.495.299) | (40.629.712) | (34.258.795) | (4.454.383.806) |
| Net Book Value | 4.987.472.566 | 8.201.221 | 954.885 | 4.996.628.672 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Restaurants | Property | Vehicles | Total | |
|---|---|---|---|---|
| Cost: | ||||
| Opening balance | ||||
| as of 1 January 2023 | 6.562.024.891 | 28.968.011 | 49.753.569 | 6.640.746.471 |
| Additions | 1.260.361.176 | 4.782.462 | 8.214.162 | 1.273.357.800 |
| Disposals | (127.245.711) | - | (106.927) | (127.352.638) |
| Currency translation effect | 64.822.961 | - | - | 64.822.961 |
| Closing balance | ||||
| as of 30 June 2023 | 7.759.963.317 | 33.750.473 | 57.860.804 | 7.851.574.594 |
| Accumulated Amortization: | ||||
| Opening balance | ||||
| as of 1 January 2023 | (2.153.643.856) | (10.694.224) | (11.484.568) | (2.175.822.648) |
| Charge for the period | (834.472.915) | (8.234.155) | (11.744.447) | (854.451.517) |
| Disposals | 49.820.792 | - | 106.927 | 49.927.720 |
| Currency translation effect | (56.032.513) | - | - | (56.032.513) |
| Closing balance | ||||
| as of 30 June 2023 | (2.994.328.492) | (18.928.379) | (23.122.087) | (3.036.378.958) |
| Net Book Value | 4.765.634.825 | 14.822.094 | 34.738.717 | 4.815.195.636 |
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 - 30 June 2024 |
1 January - 30 June 2023 |
|---|---|---|
| Depreciation expense on right-of use assets | 940.368.838 | 854.451.517 |
| Interest expense on lease liabilities | 192.042.619 | 148.279.698 |
| Foreign exchange losses on lease liabilities (net) | 22.038.500 | 72.698.553 |
| Expenses related to variable lease payments | ||
| not included in the measurement of lease liabilities | 778.866.222 | 684.116.032 |
| Total | 1.933.316.179 | 1.759.545.800 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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 - 30 June 2024 |
1 January - 30 June 2023 |
|
|---|---|---|
| Fixed payments | 654.646.998 | 599.661.740 |
| Variable payments | 778.866.222 | 684.116.032 |
| Total | 1.433.513.220 | 1.283.777.772 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Litigation provisions | 23.448.614 | 31.330.719 |
| 23.448.614 | 31.330.719 | |
| The movement of provisions for litigation is as follows: | ||
| 2024 | 2023 | |
| Opening balance as of 1 January | 31.330.719 | 22.390.043 |
| Charged to expense | 8.255.183 | 23.831.500 |
| Litigation paid | (10.088.012) | (8.391.604) |
| Monetary gain | (6.049.276) | (4.826.811) |
| Closing balance as of 31 March | 23.448.614 | 33.003.128 |
There are various ongoing lawsuits in favour of and against the Group. The Group Management evaluates the possible outcomes and financial impact of these lawsuits at the end of each period and as a result of this valuation, provisions are set aside against possible gains and liabilities as deemed necessary. As of 30 June 2024, there are ongoing lawsuits against the Group amounting to TL 28.310.313 (31 December 2023: TL 35.779.644). The Group Management has provided provision amounting to TL 23.448.614 (31 December 2023: TL 31.330.719) for the lawsuits for which cash outflow is considered probable.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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 293.183.971 (31 December 2023: TL 291.109.710).
| GPMs given by the Group (Guarantees - Pledges - Mortgages) |
Total TL Equivalents |
USD | GEL | EUR | TL | |
|---|---|---|---|---|---|---|
| A. Given in the Name of Its Own | ||||||
| Legal Entity Total amount of GPMs | 406.008.540 | 1.782.442 | - | 2.373.805 | 264.052.868 | |
| - Guarantees | 406.008.540 | 1.782.442 | - | 2.373.805 | 264.052.868 | |
| - Pledges | - | - | - | - | - | |
| - 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 | 406.008.540 | 1.782.442 | - | 2.373.805 | 264.052.868 | |
| 31 December 2023 | ||||||
| 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 | 488.629.849 | 3.139.569 | - | 3.167.871 | 293.615.355 | |
| - Guarantees | 488.629.849 | 3.139.569 | - | 3.167.871 | 293.615.355 | |
| - Pledges (*) | - | - | - | - | - | |
| - 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 | ||||||
D. Total amount of other GPMs given - - - - - Total 488.629.849 3.139.569 - 3.167.871 293.615.355
ordinary commercial activities - - - - -
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
Effective from 1 January 2019, the Group has entered into a long-term contract with a vendor for the supply of beverage products in its restaurants and the Group has entered into a commitment to purchase soft drink syrup in the amount specified in the contract at the prevailing market price in the relevant years starting from 1 January 2019. This commitment volume is not subject to any time limit.
The Group has entered into various MFDA with brands in Turkey which require the Group to open and, where necessary, remodel restaurants within a predetermined development plan. Failure to comply with the development targets contained in the MFDA may result in the termination of the Group's development rights, but the Group may at any time request renegotiation of the development terms with the franchisees and sign a new agreement regarding the change.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Payables to personnel (*) | 324.914.326 | 209.816.006 |
| Social security premiums payable | 197.151.462 | 158.814.627 |
| Income tax payable | 43.491.160 | 29.962.104 |
| 565.556.948 | 398.592.737 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Unused vacation provision | 160.392.695 | 126.610.457 |
| Retirement pay provision | 142.722.913 | 125.055.007 |
| 303.115.608 | 251.665.464 |
| 2024 | 2023 | |
|---|---|---|
| Opening balance as of 1 January | 126.610.457 | 101.588.503 |
| Increase during the period | 93.992.993 | 146.552.283 |
| Paid during the period (-) | (17.026.591) | (91.516.651) |
| Monetary loss/gain | (43.184.164) | (20.800.803) |
| Closing balance at 30 June | 160.392.695 | 135.823.332 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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 June 30, 2024, is subject to a cap of TL 41.828,42 per month (December 31, 2023: TL 35.058,58).
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 30 June 2024 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 2023: 3.50%). Voluntary termination rates are also taken into consideration as 10,04% for employees with 0-15 years of service and 0% for employees with 16 or more years of service. The maximum amount of TL 35.058,58 effective from 1 April 2024 has been taken into consideration in the calculation of the Group's provision for employment termination benefits (1 April 2023: TL 19.982,83).
| 2024 | 2023 | |
|---|---|---|
| Opening balance as of 1 January | 125.055.007 | 114.028.881 |
| Service cost | 92.769.427 | 123.597.907 |
| Interest cost | 1.629.238 | 1.781.893 |
| Actuarial loss/gain | 194.729 | 5.486.199 |
| Retirements benefits paid (-) | (39.133.651) | (85.437.409) |
| Monetary loss/gain | (37.791.837) | (32.415.443) |
| Closing balance as of 30 June | 142.722.913 | 127.042.028 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Other Current Assets | 30 June 2024 | 31 December 2023 |
|---|---|---|
| VAT carried forward | 7.025.402 | 5.419.789 |
| Prepaid corporate tax | 546.576 | - |
| Other | 35.053.485 | 17.963.945 |
| 42.625.463 | 23.383.734 | |
| Other Non-Current Assets | 30 June 2024 | 31 December 2023 |
| Evacuation costs (*) | 6.501.303 | 7.472.486 |
| Rent deposits | 1.909.539 | - |
| 8.410.842 | 7.472.486 |
(*) Evacuation costs consist of premiums paid to the previoustenant to exit the property to be leased and non-refundable deposits paid to the property owners to become a tenant in the relevant property at the beginning of the lease.
| Short-Term Liabilities | 30 June 2024 | 31 December 2023 |
|---|---|---|
| VAT payable Taxes and funds payable |
114.444.182 10.936.772 |
88.492.819 5.340.058 |
| 125.380.954 | 93.832.877 |
| Short-Term Prepaid Expenses | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Advances given (*) | 1.066.133.908 | 1.029.174.501 |
| Prepaid expenses | 53.897.673 | 10.842.019 |
| Advances given | 1.698.831 | 752.181 |
| 1.121.730.412 | 1.040.768.701 |
(*) The given order advances include TL 490.540.232 to Fasdat Gıda Dağıtım San. Tic. A.Ş. for construction expenses and operational equipment purchases related to the Group's restaurants, TL 212.637.380 to Ekur İnşaat San. Tic. A.Ş., TL 292.004.144 to Mes Mutfak Ekip. San. Tic. A. Ş. (31 December 2023: TL 762.128.338 was given to Fasdat Gıda Dağıtım San. Tic. A.Ş., TL 148.206.158 was given to Ekur İnşaat San. Tic. A.Ş., TL 79.683.106 was given to Mes Mutfak Ekip. San. Tic. A. Ş. and TL 1.935.850 was given to ATP Yazılım ve Teknoloji A.Ş.).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Long Term Prepaid Expenses | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Prepaid expenses | 44.410.554 | 42.201.190 |
| 44.410.554 | 42.201.190 | |
| Short-Term Contract Liabilities | 30 June 2024 | 31 December 2023 |
| Advances received (*) | 102.596.241 | 66.594.068 |
| Advances from customers (**) | 74.108.933 | 81.009.067 |
| Non-refundable advances received (***) | 15.293.039 | 67.381.184 |
| 191.998.213 | 214.984.319 | |
| Long-Term Contract Liabilities | 30 June 2024 | 31 December 2023 |
| Advances from customers (**) | 92.221.703 | 119.899.743 |
| Non-refundable advances received (***) | 75.289.499 | 108.139.645 |
| 167.511.202 | 228.039.388 |
(*) 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.
The paid-in capital structure of the Group as of 30 June 2024 and 31 December 2023 is as follows:
| 30 June 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| 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 | 2.232.381.788 | 2.232.381.788 | ||
| Adjusted Capital | 2.493.673.788 | 2.232.381.788 |
"The Group's authorized and issued capital consists of 261.292.000 shares each with a registered nominal value of TL1."
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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.
As of 30 June 2024, 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 | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Gain on revaluation and measurement | 624.916.663 | 624.916.663 |
| Loss on remeasurement of defined benefit plans | 4.486.771 | 4.632.817 |
| 629.403.434 | 629.549.480 | |
| To be reclassified to profit or loss | 30 June 2024 | 31 December 2023 |
| Currency translation differences | 99.509.984 | 15.350.934 |
| 99.509.984 | 15.350.934 |
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.
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Restaurant sales | 12.248.328.452 | 11.649.239.682 | 6.711.886.854 | 6.482.191.370 |
| Franchise revenues | 1.255.498.022 | 1.050.946.105 | 722.828.148 | 603.152.647 |
| Sales to franchised restaurants | 252.594.418 | 339.021.321 | 134.650.595 | 211.597.091 |
| Other sales | 9.445.074 | 19.941.738 | 4.610.276 | 14.438.565 |
| Sales returns (-) | (88.970.938) | (74.880.835) | (45.886.266) | (47.397.533) |
| 13.676.895.028 | 12.984.268.011 | 7.528.089.607 | 7.263.982.140 |
The timing of the fulfilment of the performance obligation is as follows:
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
||
|---|---|---|---|---|---|
| Fulfilment at a certain time Fulfilment spread over time |
13.424.300.610 252.594.418 |
12.645.246.690 339.021.321 |
7.393.439.012 134.650.595 |
7.052.385.049 211.597.091 |
|
| 13.676.895.028 | 12.984.268.011 | 7.528.089.607 | 7.263.982.140 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Foods and materials used | (4.738.301.457) | (4.901.846.452) | (2.594.049.568) | (2.691.772.181) |
| Personnel expenses | (2.544.232.452) | (2.009.083.975) | (1.259.515.589) | (986.115.152) |
| General production cost | (1.651.810.029) | (1.595.954.300) | (853.396.633) | (773.333.731) |
| Amortization expenses related with leases |
(916.398.388) | (832.671.140) | (461.415.236) | (425.154.061) |
| Rent expenses | (752.525.499) | (664.964.602) | (454.122.705) | (413.263.071) |
| Amortization expenses | (612.836.654) | (578.637.151) | (319.159.178) | (306.302.691) |
| Cost of sales to | ||||
| Franchised restaurants | (105.144.533) | (87.143.134) | (55.691.902) | (39.360.214) |
| Cost of merchandise sold | (60.934.268) | (70.277.165) | (31.771.327) | (24.378.374) |
| (11.382.183.280) | (10.740.577.919) | (6.029.122.138) | (5.659.679.475) |
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Personnel expenses | (203.516.003) | (177.265.768) | (93.385.329) | (91.872.108) |
| Depreciation expenses (Note 9, 10) | (62.837.716) | (59.331.042) | (32.725.252) | (31.407.002) |
| Financial and legal | ||||
| consultancy expenses | (57.403.703) | (55.759.377) | (27.875.644) | (32.510.341) |
| Rent expenses | (26.340.723) | (19.151.430) | (26.340.723) | (19.151.430) |
| Office expenses | (25.574.209) | (59.665.246) | (19.699.966) | (55.481.225) |
| Maintenance and repair expenses | (23.612.272) | (13.396.120) | (11.093.329) | (7.582.031) |
| Amortization expenses related | ||||
| with leases (Note: 11) | (23.970.450) | (21.780.377) | (12.069.348) | (10.966.626) |
| Travelling expenses | (12.978.468) | (3.553.746) | (5.837.139) | (1.699.580) |
| Electricity and fuel expenses | (7.911.119) | (5.528.807) | (3.869.429) | (2.543.517) |
| Insurance expenses | (2.795.083) | (5.845.919) | (682.665) | (828.468) |
| Duties, fees and other tax expenses | (2.771.129) | (6.058.816) | (2.058.205) | (1.042.107) |
| Other | (43.622.852) | (49.992.129) | (25.577.244) | (11.488.956) |
| (493.333.727) | (477.328.777) | (261.214.273) | (266.573.391) |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Marketing and advertising | ||||
| expenses | (564.831.075) | (558.677.399) | (248.622.673) | (280.277.670) |
| Commission expenses | (73.887.498) | (87.632.886) | (36.919.551) | (49.604.981) |
| Other | (6.580.652) | (3.136.044) | (3.251.759) | (1.446.919) |
| (645.299.225) | (649.446.329) | (288.793.983) | (331.329.570) |
The details of depreciation, amortisation and depletion expenses by expense accounts are as follows:
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Cost of sales | (612.836.654) | (578.637.151) | (319.159.178) | (306.302.691) |
| General administrative expenses | (62.837.716) | (59.331.042) | (32.725.252) | (31.407.002) |
| (675.674.370) | (637.968.193) | (351.884.430) | (337.709.693) |
The breakdown of amortisation expenses related to rights of use by expense accounts is as follows:
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Cost of sales | (916.398.388) | (832.671.140) | (461.415.236) | (425.154.061) |
| General administrative expenses | (23.970.450) | (21.780.377) | (12.069.348) | (10.966.626) |
| (940.368.838) | (854.451.517) | (473.484.584) | (436.120.687) |
The details of personnel expenses by expense accounts are as follows
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Satışların maliyeti | (2.544.232.452) | (2.009.083.975) | (1.259.515.589) | (986.115.152) |
| General administrative expenses | (203.516.003) | (177.265.768) | (93.385.329) | (91.872.108) |
| (2.747.748.455) | (2.186.349.743) | (1.352.900.918) | (1.077.987.260) |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Rediscount income | 110.191.551 | 56.673.854 | 71.081.776 | 26.539.100 |
| Foreign currency gain | ||||
| on trade activities | 49.803.576 | 246.434.748 | 7.316.948 | 128.182.090 |
| Waste oil income (*) | 23.679.792 | 40.957.785 | 12.116.498 | 18.296.952 |
| Income from payroll protocol | 10.859.437 | 10.983.409 | 3.344.221 | 4.384.774 |
| Income from the maturity | ||||
| difference of trade receivables | 638.180 | 1.083.886 | 253.102 | 451.325 |
| Other | 32.629.023 | 18.667.328 | 21.771.121 | 826.986 |
| 227.801.559 | 374.801.010 | 115.883.666 | 178.681.227 |
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Pre-opening and temporary | ||||
| closure expenses (*) | (145.444.014) | (115.222.619) | (76.261.255) | (49.229.780) |
| Foreign exchange | ||||
| losses on trade payables | (18.622.540) | (101.937.347) | - | (26.998.129) |
| Litigation expenses | (10.088.012) | (8.391.603) | (5.301.996) | (4.355.670) |
| Rediscount expenses | (8.376.634) | (14.394.429) | - | (7.466.613) |
| Recovery contribution fee | (6.093.821) | (2.028.665) | (3.293.610) | (181.555) |
| Other | (25.478.835) | (60.001.719) | (2.263.131) | (31.301.170) |
| (214.103.857) | (301.976.382) | (87.119.993) | (119.532.917) |
(*) 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 pre-opening expenses. In addition, rent, electricity, water and natural gas expenses of temporarily closed restaurants are included in pre-opening expenses.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Interest income | 560.661.881 | 102.139.599 | 336.656.630 | 92.060.704 |
| Participation share income | 234.258.970 | - | 67.389.328 | - |
| Foreign exchange gains on | ||||
| investing activities | 17.469.968 | 25.081.809 | - | 24.496.713 |
| Insurance damage income | 11.925.384 | 59.256.844 | - | - |
| Insurance loss of profit income | - | 29.628.422 | - | - |
| Gain on sale of fixed assets | 201.735 | 12.693.571 | 90.000 | 2.118.312 |
| Other | - | 9.397.973 | - | 4.434.789 |
| 824.517.938 | 238.198.218 | 404.135.958 | 123.110.518 |
| 1 January - 30 June 2024 |
1 January - 1 April - 30 June 2023 30 June 2024 |
1 April - 30 June 2023 |
||
|---|---|---|---|---|
| Foreign exchange expenses related to | ||||
| investment activities | (17.929.526) | - | (16.398.180) | - |
| Loss on sale of fixed assets | (5.498.323) | (48.292.852) | - | (12.408.960) |
| Closed restaurant expenses | (22.140) | (5.560.224) | - | (394.014) |
| Other | (1.973.662) | (6.616.692) | (1.973.662) | (6.616.692) |
| (25.423.651) | (60.469.768) | (18.371.842) | (19.419.666) |
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Foreign exchange gains Interest income from |
- | 16.994.438 | - | 16.994.438 |
| payables to related parties Foreign exchange gains |
150.496.612 | 99.013.867 | 105.504.636 | 48.370.207 |
| on lease liabilities | - | 457.617 | - | 457.617 |
| 150.496.612 | 116.465.922 | 105.504.636 | 65.822.262 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
|
|---|---|---|---|---|
| Foreign exchange losses on | ||||
| financial liabilities (Note 4) | - | (276.123.181) | - | (244.106.998) |
| Interest expense (Note 4) | (4.072.034) | (221.436.009) | (3.466.152) | (139.657.817) |
| Credit card commissions | (135.309.554) | (54.829.001) | (73.335.349) | (30.964.231) |
| Interest expenses | ||||
| on lease liabilities | (192.042.619) | (148.737.315) | (93.971.108) | (69.665.140) |
| Letter of guarantee commissions | (5.188.446) | (5.721.614) | (2.167.661) | (3.786.664) |
| Foreign exchange losses | ||||
| on lease liabilities (Not 5) | (22.038.500) | (72.698.553) | (2.748.324) | (65.101.017) |
| Other | (26.183.578) | (23.828.559) | (18.830.494) | (9.594.444) |
| (384.834.731) | (803.374.232) | (194.519.088) | (562.876.311) |
| Current tax liability | 30 June 2024 | 31 December 2023 | |||
|---|---|---|---|---|---|
| Current corporate tax provision | 195.419.843 | 365.358.598 | |||
| Less: prepaid taxes and funds | (131.499.037) | (179.054.134) | |||
| 63.920.806 | 186.304.464 | ||||
| 1 January - 30 June 2024 |
1 January - 30 June 2023 |
1 April - 30 June 2024 |
1 April - 30 June 2023 |
||
| Current tax expense | (190.855.715) | (14.956.945) | (70.137.087) | (12.236.372) | |
| Deferred tax income | (173.088.514) (363.944.229) |
444.951.696 429.994.751 |
(80.596.632) (150.733.719) |
(33.893.645) (46.130.017) |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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 30 June 2024, the statutory tax rate is 25% (31 December 2023: 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% | 5% |
| Georgia | 10% | 5% |
(*) 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.
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.
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% (2023: 25%).
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
The deferred tax asset and liabilities consist of the following:
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Revaluation and revaluation | ||
| of property, plant and equipment depreciation | ||
| / amortisation of intangible assets | 1.146.533.711 | 912.378.494 |
| Social security premium cancellations | (4.629.731) | (6.834.536) |
| Lease liabilities | (38.102.138) | (32.847.749) |
| Provision for employment termination benefit (Note 13) | (35.680.728) | (31.263.752) |
| Provision for unused vacation (Note 13) | (40.098.174) | (31.652.614) |
| Contractual obligations | (15.347.325) | (21.343.947) |
| Litigation provisions (Note 12) | (5.862.153) | (7.832.680) |
| Trade receivables/payables rediscount (net) | 27.797.886 | 1.214.092 |
| Other | (158.319.857) | (77.016.241) |
| 876.291.491 | 704.801.067 |
As of 30 June 2024 and 2023, the movement of deferred tax (asset)/liability for the periods ended are as follows:
| 2024 | 2023 | |
|---|---|---|
| Opening balance as of 1 January | 704.801.067 | 644.655.435 |
| Accounted for in the income statement | 173.088.514 | (444.951.696) |
| Accounted under equity | 48.683 | (1.097.240) |
| Monetory gain/loss | (1.646.773) | (42.112.451) |
| Closing balance on 30 June | 876.291.491 | 156.494.048 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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:
Balances due from and due to related parties will be settled in cash and no collateral is received or given. No provision for doubtful receivables has been recognised in the current year for receivables from related parties. Transactions between the Company and its subsidiaries forming the Group are not disclosed in this note since they are eliminated on consolidation.
| 30 June 2024 Balances with related parties |
Trade Receivables Current |
Trade Receivables Non-Current |
Trade Payables Current |
|---|---|---|---|
| TFI TAB Gıda Yatırımları A.Ş. |
- | - | (8.170.808) |
| Fasdat Gıda Dağıtım San. ve Tic A.Ş. |
- | - | (1.350.854.967) |
| Reklam Üssü San. ve Dış Tic. A.Ş. |
5.945 | - | (71.246.298) |
| Ekur Et Entegre San. ve Tic. A.Ş. | - | - | - |
| Ekur İnşaat San.Tic.A.Ş. |
- | - | - |
| Atp Ticari Bilgi.Elk.Güç Kaynakları A.Ş. |
- | - | (75.601.925) |
| Seraş Servis Organizasyonları ve Ticaret A.Ş. |
22.402 | - | (779.424) |
| Bedela İnşaat ve Ticaret A.Ş. |
- | - | (28.697) |
| Arbeta Turizm Org.ve Tic.A.Ş. | - | - | (1.205.202) |
| Ata Express Elektronik İletişim Tanıtım Paz. |
588.688.562 | - | - |
| Ata Yatırım Menkul Kıymetler A.Ş. | 42.211 | - | - |
| Ata Yatırım Gayrimenkul Yatırım Ortaklığı A.Ş. |
7.991 | - | (1.814.229) |
| Ata Yatırım Gayrimenkul Geliştirme Yat. İnş. A.Ş. |
3.151 | - | - |
| Ata Portföy Yönetimi A.Ş. | 13.246 | - | - |
| Ata Holding A.Ş. | 146.134 | - | - |
| Beray Gıda Bilişim Otomotiv San. Ve Tic.Ltf.Şti. | 746.955 | - | |
| Tusem Gıda ve Turizm İşletmeleri Tic. Ltd. Şti. |
622.287 | - | - |
| Kınık Maden Suları A.Ş. |
6.070.478 | - | - |
| İntiba Gıda İmalat Ve Tic.Ltd.Şti. |
189.810 | - | - |
| Zenia Limited | - | - | (82.145) |
| Mapa Gıda ve Enerji İnş. Taah.San.Tic.Ltd.Şti. |
- | - | (1.239.230) |
| Other | 751.293 | - | (920.536) |
| 597.310.465 | - | (1.511.943.461) |
| 31 December 2023 |
Trade | Trade | Trade Payables |
|---|---|---|---|
| Balances with related parties |
Receivables - current |
Receivables Non-Current | Current |
| TFI TAB Gıda Yatırımları A.Ş. | - | - | (8.019.238) |
| Fasdat Gıda Dağıtım San. ve Tic A.Ş. | - | - | (1.131.076.644) |
| Reklam Üssü San. ve Dış Tic. A.Ş. | - | - | (161.372.890) |
| Ekur Et Entegre San. ve Tic. A.Ş. |
- | - | (2.761.003) |
| Ekur İnşaat San.Tic.A.Ş. | - | - | - |
| ATP Yazılım ve Teknoloji A.Ş. | - | - | (148.321) |
| Seraş Servis Organizasyonları ve Ticaret A.Ş. | - | - | (1.051.525) |
| Bedela İnşaat ve Ticaret A.Ş. | - | - | (9.925) |
| Arbeta Turizm Org.ve Tic.A.Ş. | - | - | (1.372.481) |
| Ata Express Elektronik İletişim Tanıtım Paz. | 322.636.235 | - | - |
| Atakey Patates Gıda San. ve Tic. A.Ş. | 136.500 | - | - |
| Ata Yatırım Menkul Kıymetler A.Ş. | 90.233 | - | (17.146) |
| Ata Yatırım Gayrimenkul Yatırım Ortaklığı A.Ş. | 6.159 | - | (1.126.265) |
| Ata Yatırım Gayrimenkul Geliştirme Yat. İnş. A.Ş. |
- | - | (5.510.711) |
| Ata Portföy Yönetimi A.Ş. | 15.608 | - | - |
| Ata Holding A.Ş. | 120.041 | - | - |
| Beray Gıda Bilişim Otomotiv San. Ve Tic.Ltd.Şti. | 464.172 | - | - |
| Tusem Gıda ve Turizm İşletmeleri Tic. Ltd. Şti. |
594.343 | - | - |
| Kınık Maden Suları A.Ş. |
5.656.074 | - | (5.992) |
| İntiba Gıda İmalat ve Tic.Ltd.Şti. |
177.739 | - | - |
| Zenia Limited | - | - | (9.712.595) |
| Other | 737.735 | - | (1.138.542) |
| 330.498.339 | - | (1.323.323.278) |
| 1 January - 30 June 2024 |
Commission | ||||||
|---|---|---|---|---|---|---|---|
| Transaction with related parties | Purchases | Sales | received | Rent expense | Rent income | Other income | Other expense |
| TFI TAB Gıda Yatırımları A.Ş. |
(41.010.043) | 216.155 | - | - | - | - | (7.467.424) |
| Fasdat Gıda Dağ. San.ve Tic A.Ş. | (5.170.891.476) | 8.828.425 | - | - | 111.102 | - | (3.814) |
| Ata Ekspress Elk. İlt. Tan. A.Ş. |
(57.380.621) | 3.048.831.040 | - | - | 6.435 | - | - |
| Ekur Et Entegre Sanayi ve Ticaret A.Ş. | - | 110.878 | - | - | - | - | - |
| Reklam Üssü San. ve Dış Tic. A.Ş. |
(523.453.673) | 7.217.589 | 1.370.721 | (1.758.898) | - | 9.320.438 | (73.507) |
| ATP Yazılım ve Teknoloji A.Ş. | (293.403.659) | 3.779.105 | - | - | - | - | - |
| Seraş Servis Org. ve Ticaret A.Ş. |
(7.303.279) | - | - | - | - | - | - |
| Ata Gayr. Yatırım Ortaklığı A.Ş. |
(2.857.278) | 31.127 | - | (8.429.061) | - | - | - |
| Ata Gayrimenkul Gel. Yat. Ve İnş. A.Ş. |
(60.550) | 24.174 | - | - | - | - | - |
| Ata Portföy Yönetimi A.Ş. | - | 111.707 | - | - | - | - | - |
| Ata Holding A.Ş. | (1.695.005) | 313.521 | - | - | - | - | - |
| Bedela İnşaat ve Ticaret A.Ş. |
(71.914) | - | - | (7.354.908) | - | - | - |
| Arbeta Turizm Org.ve Tic.A.Ş. | (14.996.312) | - | - | - | - | - | - |
| Ekur İnşaat Sanayi ve Tic. A.Ş. |
(460.164.956) | 2.443.628 | 3.983.211 | - | 1.501.137 | 2.607.700 | (13.497.831) |
| Tusem Gıda ve Tur. İşl. Tic. Ltd. Şti. |
(49.414) | 2.373.412 | 2.621.029 | - | - | - | - |
| Mes Mutfak Ekp. Tic. A.Ş. | (665.188.951) | 7.838.115 | - | - | (3.475.109) | - | - |
| Ertuğ Reklam San.ve Tic. A.Ş |
(1.067.812) | - | - | - | - | - | - |
| Kınık Maden Suları A.Ş. |
(1.012.548) | 5.135.018 | 8.915.412 | - | 2.352.679 | - | (158.135) |
| Beray Bil. Mar. İnş. Ltd. Şti. |
(49.164) | 1.134.907 | 1.888.629 | - | 447.771 | - | - |
| Konuk Ağırlama Teknolojileri ve Uyg. A.Ş. | (27.432) | 4.934.799 | 4.816.821 | - | 3.254.137 | - | - |
| Sedko İnşaat ve Tic. .A.Ş. |
(633.998) | - | - | (633.998) | - | - | - |
| Ata Yatırım Menkul Kıymetler A.Ş. | - | 462.580 | - | - | - | - | - |
| Fbb Gıda San.Tic.Ltd.Şti. |
(128.900) | - | - | - | - | - | - |
| Zenia Limited | (32.103.973) | - | - | - | - | - | - |
| (7.273.550.959) | 3.093.786.182 | 23.595.824 | (18.176.865) | 4.198.152 | 11.928.138 | (21.200.711) |
| 1 January - 30 June 2023 |
Commission | ||||||
|---|---|---|---|---|---|---|---|
| Transaction with related parties | Purchases | Sales | received | Rent expense | Rent income | Other income | Other expense |
| TFI TAB Gıda Yatırımları A.Ş. |
(43.508.090) | 5.136 | - | - | - | 260.900.745 | (627.237) |
| Fasdat Gıda Dağ. San.ve Tic A.Ş. | (5.649.858.789) | 412.179.680 | 2.187 | (2.692.295) | - | - | (7.993.460) |
| Ata Ekspress Elk. İlt. Tan. A.Ş. |
(2.377.364) | 2.284.238.954 | - | - | 323.738 | - | - |
| Ekur Et Entegre Sanayi ve Ticaret A.Ş. | - | 98.469 | - | - | - | - | - |
| Reklam Üssü San. ve Dış Tic. A.Ş. |
(516.002.447) | 8.855.298 | 1.910.124 | (9.719) | 43.514 | 11.826.744 | (1.534.697) |
| ATP Yazılım ve Teknoloji A.Ş. | (144.236.464) | 3.684.533 | - | - | - | 423.022 | (11.026.867) |
| Seraş Servis Org. ve Ticaret A.Ş. |
(7.154.577) | - | - | - | - | - | - |
| Ata Gayr. Yatırım Ortaklığı A.Ş. |
(21.131) | 498 | - | (5.771.707) | - | 39.926 | (1.293.770) |
| Ata Gayrimenkul Gel. Yat. Ve İnş. A.Ş. |
(43.922) | - | - | - | - | 26.375 | - |
| Ata Portföy Yönetimi A.Ş. | - | 62.176 | - | - | - | - | - |
| Ata Yatırım Menkul Kıymetler A.Ş. | - | - | - | - | - | - | - |
| Ata Holding A.Ş. | - | 26.147 | - | - | - | 212.534 | - |
| Bedela İnşaat ve Ticaret A.Ş. |
(5.865.912) | - | - | - | - | - | - |
| Arbeta Turizm Org.ve Tic.A.Ş. |
(3.120.908) | - | - | - | - | - | - |
| Ekur İnşaat Sanayi ve Tic. A.Ş. |
(315.975.659) | 5.099.659 | 4.522.749 | - | - | 1.998.589 | (495.907) |
| Tusem Gıda ve Tur. İşl. Tic. Ltd. Şti. |
(1.059) | 1.118.679 | 2.626.840 | - | 1.338.326 | - | (99.741) |
| Mes Mutfak Ekp. Tic. A.Ş. | (294.403.542) | 32.780.873 | - | (3.873.327) | - | - | (3.666.857) |
| Ertuğ Reklam San.ve Tic. A.Ş |
(1.139.644) | - | - | - | - | - | - |
| Kınık Maden Suları A.Ş. |
(1.522.021) | 2.901.951 | 9.962.038 | - | 5.725.763 | - | - |
| Beray Bil. Mar. İnş. Ltd. Şti. |
(1.274) | 1.655.588 | 1.857.046 | - | - | - | (56.918) |
| Konuk Ağırlama Teknolojileri ve Uyg. A.Ş. | - | 2.302.231 | 4.796.598 | - | 5.304.191 | - | (40.935) |
| Sedko İnşaat ve Tic. .A.Ş. |
(1.384.111) | - | - | - | - | - | - |
| (6.986.616.915) | 2.755.009.872 | 25.677.582 | (12.347.047) | 12.735.533 | 275.427.935 | (26.836.388) |
| 1 April - 30 June 2024 |
Commission | ||||||
|---|---|---|---|---|---|---|---|
| Transaction with related parties | Purchases | Sales | received | Rent expense | Rent income | Other income | Other expense |
| TFI TAB Gıda Yatırımları A.Ş. |
(16.530.099) | - | - | - | - | - | (7.467.424) |
| Fasdat Gıda Dağ. San.ve Tic A.Ş. | (2.990.028.873) | 3.419.968 | - | - | 111.102 | - | (3.814) |
| Ata Ekspress Elk. İlt. Tan. A.Ş. |
(22.137.047) | 1.721.812.347 | - | - | - | - | - |
| Ekur Et Entegre Sanayi ve Ticaret A.Ş. | - | 60.697 | - | - | - | - | - |
| Reklam Üssü San. ve Dış Tic. A.Ş. |
(225.749.443) | 6.198.469 | 712.086 | (1.084.471) | - | 2.890.983 | (73.507) |
| ATP Yazılım ve Teknoloji A.Ş. | (161.495.434) | 1.854.233 | - | - | - | - | 13.740.564 |
| Seraş Servis Org. ve Ticaret A.Ş. |
(4.080.317) | - | - | - | - | - | - |
| Ata Gayr. Yatırım Ortaklığı A.Ş. |
(315.864) | 11.493 | - | (4.757.523) | - | - | - |
| Ata Gayrimenkul Gel. Yat. Ve İnş. A.Ş. |
(60.550) | 10.370 | - | - | - | - | - |
| Ata Portföy Yönetimi A.Ş. | - | 48.737 | - | - | - | - | - |
| Ata Holding A.Ş. | - | 140.972 | - | - | - | - | - |
| Bedela İnşaat ve Ticaret A.Ş. |
(71.914) | - | - | (3.663.748) | - | - | - |
| Arbeta Turizm Org.ve Tic.A.Ş. | (8.169.592) | - | - | - | - | - | - |
| Ekur İnşaat Sanayi ve Tic. A.Ş. |
(239.513.224) | 2.131.819 | 2.192.413 | - | - | 1.401.633 | (13.497.831) |
| Tusem Gıda ve Tur. İşl. Tic. Ltd. Şti. |
(30.455) | 1.812.904 | 1.469.160 | - | (763.590) | - | - |
| Mes Mutfak Ekp. Tic. A.Ş. | (371.455.406) | 1.400.615 | - | - | (3.475.109) | - | - |
| Ertuğ Reklam San.ve Tic. A.Ş |
(850.179) | - | - | - | - | - | - |
| Kınık Maden Suları A.Ş. |
(486.614) | 4.006.507 | 4.974.170 | - | - | - | (158.135) |
| Beray Bil. Mar. İnş. Ltd. Şti. |
(26.069) | 983.423 | 1.114.369 | - | - | - | - |
| Konuk Ağırlama Teknolojileri ve Uyg. A.Ş. | (7.726) | 4.210.135 | 2.908.332 | - | - | - | - |
| Ata Yatırım Menkul Kıymetler A.Ş. | - | 191.788 | - | - | - | - | - |
| Fbb Gıda San.Tic.Ltd.Şti. | (56.648) | - | - | - | - | - | - |
| Sedko İnşaat ve Tic. .A.Ş. |
- | - | - | (633.998) | - | - | - |
| Zenia Limited | (16.190.352) | - | - | - | - | - | - |
| (4.057.255.806) | 1.748.294.477 | 13.370.530 | (10.139.740) | (4.127.597) | 4.292.616 | (7.460.146) |
| 1 April - 30 June 2023 |
Commission | ||||||
|---|---|---|---|---|---|---|---|
| Transaction with related parties | Purchases | Sales | received | Rent expense | Rent income | Other income | Other expense |
| TFI TAB Gıda Yatırımları A.Ş. |
(23.699.342) | - | - | - | - | 260.900.745 | (627.237) |
| Fasdat Gıda Dağ. San.ve Tic A.Ş. | (3.306.898.111) | 404.007.948 | 2.187 | (2.692.295) | - | - | (7.993.460) |
| Ata Ekspress Elk. İlt. Tan. A.Ş. |
- | 1.310.859.241 | - | - | 156.400 | - | - |
| Ekur Et Entegre Sanayi ve Ticaret A.Ş. | - | 63.748 | - | - | - | - | - |
| Reklam Üssü San. ve Dış Tic. A.Ş. |
(492.085.081) | - | 1.225.480 | (9.719) | - | 11.817.025 | (217.526) |
| ATP Yazılım ve Teknoloji A.Ş. | (82.137.869) | 3.684.533 | - | - | - | 341.196 | (10.094.581) |
| Seraş Servis Org. ve Ticaret A.Ş. |
(3.196.069) | - | - | - | - | - | - |
| Ata Gayr. Yatırım Ortaklığı A.Ş. |
(21.131) | 498 | - | (3.415.629) | - | 22.157 | (1.278.698) |
| Ata Gayrimenkul Gel. Yat. Ve İnş. A.Ş. |
- | - | - | - | - | 13.296 | - |
| Ata Portföy Yönetimi A.Ş. | (37.788) | 62.176 | - | - | - | - | - |
| Ata Yatırım Menkul Kıymetler A.Ş. | (188.561) | - | - | - | - | - | - |
| Ata Holding A.Ş. | - | 3.883 | - | - | - | 118.014 | - |
| Bedela İnşaat ve Ticaret A.Ş. |
(2.923.807) | - | - | - | - | - | - |
| Arbeta Turizm Org.ve Tic.A.Ş. | (1.542.299) | - | - | - | - | - | - |
| Ekur İnşaat Sanayi ve Tic. A.Ş. |
(210.214.102) | 4.412.041 | 2.562.681 | - | - | 748.838 | - |
| Tusem Gıda ve Tur. İşl. Tic. Ltd. Şti. |
(1.059) | 429.406 | 1.429.010 | - | 761.319 | - | (98.993) |
| Mes Mutfak Ekp. Tic. A.Ş. | (160.905.662) | 18.662.248 | - | (3.873.327) | 1.303.033 | - | - |
| Ertuğ Reklam San.ve Tic. A.Ş |
(472.930) | - | - | - | - | - | - |
| Kınık Maden Suları A.Ş. |
(1.359.858) | 2.901.951 | 5.661.513 | - | 3.167.204 | - | - |
| Beray Bil. Mar. İnş. Ltd. Şti. |
(95.120) | 983.009 | 1.115.261 | - | - | - | (56.918) |
| Konuk Ağırlama Teknolojileri ve Uyg. A.Ş. | 381 | 522.027 | 3.132.025 | - | 3.177.274 | - | (40.935) |
| Sedko İnşaat ve Tic. .A.Ş. |
(1.384.111) | - | - | - | - | - | - |
| (4.287.162.519) | 1.746.592.710 | 15.128.157 | (9.990.970) | 8.565.229 | 273.961.271 | (20.408.348) |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| Advances given to related parties | 30 June 2024 | 31 December 2023 |
|---|---|---|
| Fasdat Gıda Dağıtım San. Tic. A.Ş. | 490.540.232 | 762.128.338 |
| Ekur İnşaat San. Tic. A.Ş. | 212.637.380 | 148.206.158 |
| Mes Mutfak Ekip. San. Tic. A. Ş. | 292.004.144 | 79.683.106 |
| 995.181.756 | 990.017.602 |
Benefits provided to board members and senior management personnel are as follows:
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Salaries and other short-term benefits | 38.856.452 | 11.460.459 |
| 38.856.452 | 11.460.459 |
The Company consists of senior management and members of the Board of Directors. Benefits provided to senior executives include salaries, bonuses and health insurance.
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.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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:
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Total borrowings | 46.586.172 | 115.730.206 |
| Less: cash and cash equivalents | 4.992.427.961 | 4.920.871.036 |
| Net Debt | (4.945.841.789) | (4.805.140.830) |
| Total Equity | 12.924.694.365 | 12.074.179.987 |
| Rate | %38 | %40 |
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.
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.
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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 65.886.500 (31 December 2023: TL 47.455.274). The level of risks and collateral structure are constantly monitored by the Group Management.
| 30 June 2024 |
Trade Receivables Related Party |
Trade Receivables Other Party |
Other Receivables Related Party |
Other 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 |
597.310.465 | 658.469.960 | - | 34.393.345 | 4.874.281.060 | 56.346.298 |
| A. Net book value of financial assets that are neither past due or impaired |
597.310.465 | 658.469.960 | - | 34.393.345 | 4.874.281.060 | 56.346.298 |
| 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 | ||||||
| - Gross carrying amount |
- | 6.763.156 | - | - | - | - |
| - Impairment |
- | (6.763.156) | - | - | - | - |
| - The part of net value under guarantee |
||||||
| with collateral etc. | - | - | - | - | - | |
| E. Off-balance sheet items with credit risk (-) | - | - | - | - | - | - |
| Trade | Trade | Other | Other | |||
|---|---|---|---|---|---|---|
| Receivables | Receivables | Receivables | Receivables | Bank | Restricted | |
| 31 December 2023 | 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 |
330.498.339 - |
480.132.800 - |
- - |
37.014.172 - |
4.822.000.265 - |
44.709.774 - |
| A. Net book value of financial assets that | ||||||
| are neither past due or impaired | 330.498.339 | 480.132.800 | - | 37.014.172 | 4.822.000.265 | 44.709.774 |
| 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 | ||||||
| - Gross carrying amount |
- | 8.435.995 | - | - | - | - |
| - Impairment |
- | (8.435.995) | - | - | - | - |
| - The part of net value under guarantee |
||||||
| with collateral etc. | - | - | - | - | - | - |
| E. Off-balance sheet items with credit risk (-) | - | - | - | - | - | - |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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.
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.
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 | |
| 30 June 2024 | value | flows | 3 months | 3-12 months | and over |
| Bank loans | 46.586.172 | 55.816.213 | 37.967.255 | 17.848.958 | - |
| Lease liabilities | 2.993.396.740 | 4.577.965.228 | 337.592.209 | 833.361.307 | 3.407.011.712 |
| Trade payables | |||||
| (Related parties included) 2.257.155.850 | 2.374.157.243 | 2.073.146.758 | 164.612.855 | 136.397.630 | |
| 5.297.138.762 | 7.007.938.684 | 2.448.706.222 | 1.015.823.120 | 3.543.409.342 | |
| 31 December 2023 | Carrying value |
cash flows |
Less than 3 months |
Between 3-12 months |
1 year and over |
| Bank loans | 115.730.205 | 119.750.469 | 85.211.304 | 34.539.165 | - |
| Lease liabilities | 2.540.725.151 | 2.918.817.016 | 275.459.204 | 826.377.611 | 1.816.980.201 |
| Trade payables (Related parties included) 2.042.759.300 |
2.255.745.115 | 1.927.780.856 | 153.070.452 | 174.893.807 | |
| 4.699.214.656 | 5.294.312.600 | 2.288.451.364 | 1.013.987.228 | 1.991.874.008 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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:
| 30 June 2024 | ||||
|---|---|---|---|---|
| TL Equivalents | USD | EUR | ||
| 1. Trade Receivables | 787.829 | 24.000 | - | |
| 2a. Monetary Financial Assets | 51.969.430 | 112.593 | 1.333.982 | |
| 2b. Non Monetary Financial Assets | - | - | - | |
| 3. Other | - | - | - | |
| 4. Current Assets | 52.757.259 | 136.593 | 1.333.982 | |
| 5. Trade Receivables | - | - | - | |
| 6a. Monetary Financial Assets | 3.570.549 | 101.516 | 6.780 | |
| 6b. Non Monetary Financial Assets | - | - | - | |
| 7. Other | - | - | - | |
| 8. Non-Current Assets | 3.570.549 | 101.516 | 6.780 | |
| 9. Total Assets (4+8) | 56.327.808 | 238.109 | 1.340.762 | |
| 10. Trade Payables | 386.365.797 | 11.743.719 | 4.335 | |
| 11. Financial Liabilities | - | - | - | |
| 12a. Other Monetary Liabilities | 35.192 | - | 1.000 | |
| 12b. Other Non Monetary Liabilities | - | - | - | |
| 13. Short Term Liabilities | 386.400.989 | 11.743.719 | 5.335 | |
| 14. Trade Payables | - | - | - | |
| 15. Financial Liabilities | - | - | - | |
| 16a. Other Monetary Liabilities | - | - | - | |
| 16b. Other Non Monetary Liabilities | - | - | - | |
| 17. Long Term Liabilities | - | - | - | |
| 18. Total Liabilities (13+17) | 386.400.989 | 11.743.719 | 5.335 | |
| 19. Net Foreign Exchange Asset / | ||||
| Liability) Position (9-18) | (330.073.181) | 11.743.719 | 1.335.426 | |
| 20. Net Monetary Items Foreign | ||||
| Exchange Asset /(Liabilities) Position | ||||
| (1+2a+5+6a-10-11-12a-14-15-16a) | (330.073.181) | 11.743.719 | 1.335.426 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
| 31 December 2023 | ||||
|---|---|---|---|---|
| Total Equivalents | USD | EUR | ||
| 1. Trade Receivables | - | - | - | |
| 2a. Monetary Financial Assets | 60.492.571 | 1.503.220 | 122.916 | |
| 2b. Non Monetary Financial Assets | - | - | - | |
| 3. Other | - | - | - | |
| 4. Current Assets | 60.492.571 | 1.503.220 | 122.916 | |
| 5. Trade Receivables | - | - | - | |
| 6a. Monetary Financial Assets | 7.058.253 | 151.516 | 36.786 | |
| 6b. Non Monetary Financial Assets | - | - | - | |
| 7. Other | - | - | - | |
| 8. Non-Current Assets | 7.058.253 | 151.516 | 36.786 | |
| 9. Total Assets (4+8) | 67.550.824 | 1.654.735 | 159.702 | |
| 10. Trade Payables | 168.200.723 | 4.511.789 | 54.803 | |
| Financial Liabilities | - | - | - | |
| 12a. Other Monetary Liabilities | 40.704 | - | 1.247 | |
| 12b. Other Non Monetary Liabilities | - | - | - | |
| 13. Short Term Liabilities | 168.241.427 | 4.511.789 | 55.803 | |
| 14. Trade Payables | - | - | - | |
| 15. Financial Liabilities | - | - | - | |
| 16a. Other Monetary Liabilities | - | - | - | |
| 16b. Other Non Monetary Liabilities | - | - | - | |
| 17. Long Term Liabilities | - | - | - | |
| 18. Total Liabilities (13+17) | 168.241.427 | 4.511.789 | 55.803 | |
| 19. Net Foreign Exchange Asset / | ||||
| Liability) Position (9-18) | (100.690.604) | (2.857.054) | 103.899 | |
| 20. Net Monetary Items Foreign | ||||
| Exchange Asset /(Liabilities) Position | ||||
| (1+2a+5+6a-10-11-12a-14-15-16a) | (100.690.604) | (2.857.053) | 103.899 | |
| 30 June 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Foreign currency appreciation |
Foreign currency depreciation |
Foreign currency appreciation |
Foreign currency depreciation |
|
| If the USD changes by against the TL |
(37.768.549) | 37.768.549 | (10.490.993) | 10.490.993 |
| If the EUR changes by against the TL |
(4.691.139) | 4.691.139 | (422.152) | 422.152 |
| Total | (42.459.688) | 42.459.688 | (10.913.145) | 10.913.145 |
(Amounts expressed in Turkish Lira ("TL") in terms of the purchasing power of the TL at 30 June 2024, unless otherwise indicated.)
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.
The calculation of earnings per share and diluted earnings per share attributable to equity holders of the parent company are as follows:
| 2024 | 2023 | |
|---|---|---|
| Net profit/(loss) attributable to equity holders of the parent company Weighted average number of shares outstanding during the period |
913.001.374 261.292.000 |
2.128.554.903 232.417.000 |
| Earnings per share | 3,49 | 9,16 |
At the 2023 Ordinary General Assembly Meeting held on June 14, 2024, it was decided to distribute a gross of TL 146,500,000, all of which would be covered from the profit of the period, and to pay all of the profit to be distributed in cash, and dividends were distributed as of July 8, 2024.
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