Quarterly Report • Nov 8, 2024
Quarterly Report
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ANATOLIA TANI VE BİYOTEKNOLOJİ ÜRÜNLERİ AR-GE SANAYİ VE TİCARET A.Ş. AND GROUP COMPANIES CONSOLIDATED FINANCIAL STATEMENTS FOR THE PERIOD ENDED 30 SEPTEMBER 2024
| 1. | GROUP'S ORGANIZATION AND NATURE OF OPERATIONS | 8 |
|---|---|---|
| 2. | BASIS OF PRESENTATION OF CONSOLIDATED FINANCIAL STATEMENTS | 9 |
| 3. | SHARES IN OTHER BUSINESS | 21 |
| 4. | CASH AND CASH EQUIVALENTS | 24 |
| 5. | FINANCIAL INVESTMENTS | 25 |
| 6. | TRADE RECEIVABLES AND PAYABLES | 25 |
| 7. | RELATED PARTIES TRANSACTION | 26 |
| 9. | INVENTORIES | 26 |
| 10. | PREPAID EXPENSES AND DEFERRED INCOME | 27 |
| 12. | PROPERTY, PLANT AND EQUIPMENTS | 28 |
| 13. | INTANGIBLE ASSETS | 30 |
| 13. | INTANGIBLE ASSETS (continued) | 31 |
| 14. | RIGHTS OF USE ASSETS | 31 |
| 14. | RIGHTS OF USE ASSETS (continued) | 32 |
| 15. | LEASE LIABILITIES | 32 |
| 16. | FINANCIAL BORROWINGS | 33 |
| 17. | EMPLOYEE BENEFITS | 34 |
| 18. | COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES | 35 |
| 19. | PAYABLES WITHIN BENEFIT TO EMPLOYEES | 36 |
| 20. | INCOME TAX | 36 |
| 21. | SHARE CAPITAL AND NON-CONTROLLING INTERESTS | 38 |
| 22. | EARNINGS PER SHARE | 39 |
| 23. | REVENUE AND COST OF SALES | 39 |
| 24. | MARKETING, SELLING AND DISTRIBUTION EXPENSES | 40 |
| 25. | GENERAL ADMINISTRATIVE EXPENSES | 40 |
| 26. | RESEARCH AND DEVELOPMENT EXPENSES | 40 |
| 27. | OTHER OPERATING INCOME AND EXPENSES | 41 |
| 28. | INCOME AND EXPENSES FROM INVESTMENT ACTIVITIES | 41 |
| 29. | FINANCIAL INCOME AND EXPENSES | 41 |
| 29. | FINANCIAL INCOME AND EXPENSES (continued) | 42 |
| 30. | FINANCIAL INSTRUMENTS | 42 |
| 31. | NATURE AND LEVEL OF RISKS ARISING FROM DERIVATIVE FINANCIAL INSTRUMENTS | 43 |
| 32. | FINANCIAL INSTRUMENTS (FAIR VALUE EXPLANATION) | 46 |
| 33. | OTHER MATTERS THAT SIGNIFICANTLY AFFECT THE FINANCIAL STATEMENTS OR SHOULD BE | |
| DISCLOSED IN ORDER TO MAKE THE FINANCIAL STATEMENTS CLEAR, INTERPRETABLE AND | ||
| UNDERSTANDABLE. | 47 | |
| 34. | SUBSEQUENT EVENTS | 47 |
Consolidated Statements of Financial Position for The Years Ended 30 September 2024 and 31 December 2023 (Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| Unaudited | Audited | ||
|---|---|---|---|
| ASSETS | Notes | 30 September 2024 |
31 December 2023 |
| Current Assets | |||
| Cash and cash equivalents | 4 | 269.464.520 | 409.934.174 |
| Financial investments | 5 | 15.762.159 | 79.302.692 |
| Trade receivables | 6 | 93.277.146 | 105.868.167 |
| - Due from third parties |
93.277.146 | 105.868.167 | |
| Other receivables | 8 | 7.896.691 | 23.975.104 |
| - Other receivables from third parties |
7.896.691 | 23.975.104 | |
| Inventories | 9 | 310.811.146 | 307.174.246 |
| Prepaid expenses | 10 | 15.813.608 | 12.673.567 |
| Current tax assets | 1.445.491 | 18.055.671 | |
| Other current assets | 11 | 40.635.921 | 34.423.591 |
| TOTAL CURRENT ASSETS | 755.106.682 | 991.407.212 | |
| Non-current Assets | |||
| Financial investments | 1.158.720 | 1.158.720 | |
| Other receivables | 8 | 983.257 | 1.246.958 |
| - Other receivables from third parties |
983.257 | 1.246.958 | |
| Right use of assets | 14 | 18.412.505 | 23.023.791 |
| Tangible assets | 12 | 580.731.247 | 604.452.010 |
| Intangible assets | 13 | 321.616.995 | 216.347.194 |
| - Other intangible assets |
321.616.995 | 216.347.194 | |
| Prepaid expenses | 10 | 1.951.554 | 738.150 |
| TOTAL NON-CURRENT ASSETS | 924.854.278 | 846.966.823 | |
| TOTAL ASSETS | 1.679.960.960 | 1.838.374.035 |
Consolidated Statements of Financial Position for The Years Ended 30 September 2024 and 31 December 2023 (Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| LIABILITIES Notes 2024 Current Liabilities Lease liabilities 5 2.221.368 |
2023 2.554.453 381.446 |
|---|---|
| Short-term borrowings 16 1.435.476 9.898.966 |
|
| Short-term portion of long-term borrowings 16 77.010 |
|
| Trade payables 6 25.943.070 14.735.118 |
|
| - Due to third parties 25.943.070 14.735.118 |
|
| Employee benefit obligations 19 18.822.120 8.554.629 |
|
| Other Payables 8 3.085.995 6.324.527 |
|
| - Due to third parties 3.085.995 6.324.527 |
|
| Deferred income 10 6.017.439 6.143.105 |
|
| Period Profit Tax Liability 134.981 |
-- |
| Provisions 5.559.770 6.718.198 |
|
| - Provisions for employee benefits 17 5.559.770 6.718.198 |
|
| Other short-term liabilities 11 9.791.518 7.843.367 |
|
| TOTAL CURRENT LIABILITIES 73.088.747 63.153.809 |
|
| Non-current liabilities | |
| Lease liabilities 15 15.567.762 20.349.415 |
|
| Deferred income 1.445.940 3.021.874 |
|
| Long-term provisions 4.541.958 3.848.903 |
|
| - Long-term provisions for employee benefits 17 4.541.958 3.848.903 |
|
| Deferred tax liabilities 20 94.747.978 99.672.959 |
|
| TOTAL NON-CURRENT LIABILITIES 116.303.638 126.893.151 |
|
| EQUITY | |
| Equity attributable to owners of the Company 1.490.568.575 1.648.327.075 |
|
| Share capital 21 220.000.000 220.000.000 |
|
| Adjustment to share capital 530.479.047 530.479.047 |
|
| Share premium 721.486.730 721.486.730 |
|
| Other accumulated comprehensive income and expense not to | |
| be reclassified to profit or loss 484.846 1.581.418 |
|
| - Gain/loss arising from defined |
|
| benefit plans 484.846 1.581.418 |
|
| Other accumulated comprehensive income and | |
| expense to be reclassified to profit or loss 104.766.272 73.543.380 |
|
| - Currency translation reserve 104.766.272 73.543.380 |
|
| Restricted reserves 213.910.472 213.910.472 |
|
| Retained earnings (112.673.972) 73.006.886 |
|
| Profit for the period (187.884.820) (185.680.858) |
|
| Non-controlling interests -- |
-- |
| TOTAL SHAREHOLDER'S EQUITY 1.490.568.575 1.648.327.075 |
|
| TOTAL LIABILITIES 1.679.960.960 1.838.374.035 |
Consolidated Statements of Financial Position and Other Comprehensive Income as of 1 January – 30 September 2024 and 2023
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| Notes | Unaudited 1 January 30 September 2024 |
Unaudited 1 January 30 September 2023 |
Unaudited 1 July 30 September 2024 |
Unaudited 1 July 30 September 2023 |
|
|---|---|---|---|---|---|
| Revenue | 22 | 379.766.093 | 245.920.624 | 137.356.137 | 102.895.349 |
| Cost of sales (-) | 22 | (130.431.090) | (78.074.869) | (50.135.596) | (24.604.132) |
| GROSS PROFIT | 249.335.003 | 167.845.755 | 87.220.541 | 78.291.217 | |
| General administrative expenses (-) | 24 | (137.053.719) | (100.531.648) | (46.218.797) | (26.329.202) |
| Marketing expenses (-) | 23 | (105.406.865) | (70.342.518) | (42.713.622) | (23.761.951) |
| Research and development | 25 | ||||
| expenses (-) | (2.772.757) | (8.075.618) | (487.365) | (5.440.400) | |
| Other income from operating activitie Other expenses from operating |
26 | 54.497.896 | 221.731.114 | 19.411.581 | 57.718.244 |
| activities (-) | 26 | (13.207.091) | (87.984.792) | (6.881.198) | (19.332.379) |
| OPERATING PROFIT | 22 | 45.392.467 | 122.642.293 | 10.331.140 | 61.145.529 |
| Other income from investing activities | 27 | 11.839.992 | 20.850.540 | 860.673 | 1.727.797 |
| Other income from investing activities | |||||
| (-) | 27 | (3.167.147) | -- | (129.306) | -- |
| OPERATING INCOME BEFORE | |||||
| FINANCIAL INCOME/(EXPENSE) | 54.065.312 | 143.492.833 | 11.062.507 | 62.873.326 | |
| Finance expenses (-) | 28 | (2.370.852) | (20.141.685) | (233.620) | (4.874.733) |
| Finance income | 28 | 26.035.076 | 145.613.823 | 7.845.117 | 30.270.767 |
| Monetary position gain/(loss) | 32 | (243.201.519) | (298.752.727) | (81.081.557) | (66.157.199) |
| PROFIT BEFORE TAX FROM | |||||
| CONTINUING OPERATIONS | (165.471.983) | (29.787.756) | (62.407.553) | 22.112.161 | |
| Tax income/(expense), continuing operations |
(22.412.837) | (151.045.350) | (8.439.212) | (73.305.583) | |
| Tax expenses | (72.385) | (22.733.081) | (67.830) | (4.652.675) | |
| Deferred tax expense / incomes | 20 | (22.340.452) | (128.312.269) | (8.371.382) | (68.652.908) |
| NET PROFIT FOR THE PERIOD | (187.884.820) | (180.833.106) | (70.846.765) | (51.193.423) | |
| Attributable to: | |||||
| Non-controlling interests | -- | -- | -- | -- | |
| Equity holders of the parent | (187.884.820) | (180.833.106) | (70.846.765) | (51.193.423) | |
| OTHER COMPREHENSIVE | |||||
| INCOME | (1.096.572) | 2.235.869 | (1.506.510) | 530.985 | |
| Not to be reclassified to profit or loss Gain/ loss arising from defined benefit |
|||||
| plans | (1.424.120) | 2.903.726 | (1.956.507) | 689.591 | |
| Not to be reclassified to profit or | |||||
| loss, tax effect | 327.548 | (667.857) | 449.997 | (158.606) | |
| -Deferred tax income/(expense) | 327.548 | (667.857) | 449.997 | (158.606) | |
| TOTAL COMPREHENSIVE | |||||
| INCOME FOR THE PERIOD | 31.222.892 | 41.699.529 | 85.924.753 | (133.942.520) | |
| Foreign Currency Translation | |||||
| Differences | 31.222.892 | 41.699.529 | 85.924.753 | (133.942.520) | |
| OTHER COMPREHENSIVE | |||||
| INCOME | 30.126.320 | 43.935.398 | 84.418.243 | (133.411.535) | |
| TOTAL COMPREHENSIVE INCOME |
(157.758.500) | (136.897.710) | 13.571.478 | (184.604.958) | |
| Attributable to | (157.758.500) | (136.897.710) | 13.571.478 | (184.604.958) | |
| Non-controlling interests | -- | -- | -- | -- | |
| Equity holders of the parent | (157.758.500) | (136.897.710) | 13.571.478 | (184.604.958) |
Consolidated Statement of Changes in Share Holder's Equity as of 1 January – 30 September 2024 and 30 September 2023 (Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| Share capital |
Share capital adjustments |
Share premium/(discount) |
Other comprehensive income not to be reclassified under profit and loss |
Other comprehensive income to be reclassified under profit and loss |
Restricted reserves |
Retained earnings |
Net income/(loss) |
Equity holders of the parent |
Total equity | |
|---|---|---|---|---|---|---|---|---|---|---|
| (Note 21) | (Note 21) | (Note 21) | (Note 21) | (Note 21) | (Note 21) | (Note 21) | (Note 21) | (Note 21) | (Note 21) | |
| Balance at January 1, 2023 | 110.000.000 | 378.098.561 | 983.867.215 | (4.708.884) | 43.733.217 | 163.374.811 | 373.973.359 | -- | 2.048.338.279 | 2.048.338.279 |
| Transfers | -- | -- | -- | -- | -- | 50.535.661 | (50.535.661) | -- | -- | -- |
| Capital increase | 110.000.000 | 152.380.485 | (262.380.485) | -- | -- | -- | -- | -- | -- | -- |
| Total comprehensive | ||||||||||
| income | -- | -- | -- | 2.235.869 | 41.699.528 | -- | -- | (180.833.107) | (136.897.710) | (136.897.710) |
| Dividends | -- | -- | -- | -- | -- | -- | (250.430.813) | -- | (250.430.813) | (250.430.813) |
| As of September 30, 2023 | 220.000.000 | 530.479.046 | 721.486.730 | (2.473.015) | 85.432.745 | 213.910.472 | 73.006.885 | (180.833.107) | 1.661.009.756 | 1.661.009.756 |
| Balance at January 1, 2024 | 220.000.000 | 530.479.047 | 721.486.730 | 1.581.418 | 73.543.380 | 213.910.472 | 73.006.886 | (185.680.858) | 1.648.327.075 | 1.648.327.075 |
| Transfers | -- | -- | -- | -- | -- | -- | (185.680.858) | 185.680.858 | -- | -- |
| Capital increase | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- |
| Total comprehensive | ||||||||||
| Income | -- | -- | (1.096.572) | 31.222.892 | -- | -- | (187.884.820) | (157.758.500) | (157.758.500) | |
| Dividends | -- | -- | -- | -- | -- | -- | -- | -- | -- | -- |
| As of September 30 , 2024 | 220.000.000 | 530.479.047 | 721.486.730 | 484.846 | 104.766.272 | 213.910.472 | (112.673.972) | (187.884.820) | 1.490.568.575 | 1.490.568.575 |
Consolidated Statements of Cash Flows For The Periods Ended at 1 January – 30 September 2024 and 30 September 2023
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| Audited | Audited | ||
|---|---|---|---|
| 1 January- | 1 January | ||
| Notes | 30 September 2024 |
30 September 2023 |
|
| A. Cash flow from Operating activities | |||
| Income for the period | (187.884.820) | (180.833.107) | |
| Adjustments to reconcile net profit (loss) for the period to cash flows from op erating activities |
|||
| Adjustments Related to Depreciation and Amortization Expenses | 12,13,14 | 67.732.563 | 60.997.089 |
| Corrections Regarding Provisions | -- | 308.408 | |
| Provision for employment termination benefit | 18 | 6.212.632 | 7.334.900 |
| Provision for unused vacation | 18 | (1.158.427) | 1.134.742 |
| Adjustments for Interest (Income) and Expenses | (2.927.039) | (19.856.616) | |
| Provision for impairment of inventories Adjustments related to unrealized foreign currency translation differences |
10 | 8.368.298 23.343.161 |
12.707.551 68.606.652 |
| Adjustments for Fair Value Losses (Gains) | (8.672.845) | (20.850.540) | |
| Adjustments Related to Tax (Income) Expense | 22.412.837 | 151.045.350 | |
| Monetary (Gain) / Loss | 109.302.003 | 283.473.201 | |
| Changes in working capital | 36.305.835 | 364.432.390 | |
| Adjustments for Decrease (Increase) in Financial Investments | 63.540.533 | 61.388.044 | |
| Adjustments for Decrease (Increase) in Trade Receivables | 12.591.021 | 14.649.290 | |
| Adjustments for Decrease (Increase) in Other Receivables Related to Operations | 16.342.114 | 4.667.778 | |
| Adjustments for Decrease (Increase) in Inventories | (3.636.900) | (118.659.942) | |
| Decrease (Increase) in Prepaid Expenses | (4.353.445) | (655.955) | |
| Adjustments related to increase (decrease) in trade payables | 11.207.952 | 14.394.996 | |
| Increase (Decrease) in Employee Benefit Payables | 10.267.491 | 12.720.677 | |
| Adjustments Related to Increase (Decrease) in Other Payables Related to Operations | (3.238.532) | 1.519.261 | |
| Change in other current and fixed assets | (4.264.182) | 11.287.965 | |
| Increase (Decrease) in Deferred Income | (1.701.599) | 3.108.647 | |
| Total Adjustments | 133.060.289 | 368.853.152 | |
| Cash Flows from Operating Activities Payments made within the scope of provisions for employee benefits |
18 | (551.279) | (1.110.652) |
| Tax Refunds (Payments) | -- | -- | |
| Total | 131.762.681 | 117.311.688 | |
| B. Cash flows used in investing activities | (156.525.557) | (51.608.006) | |
| Cash inflows from sale of property, plant and equipment and intangible assets | 19.774.979 | 23.328.265 | |
| Cash outflows from the acquisition of property, plant and equipment and intangible | 12,13,14 | ||
| assets | (176.300.536) | (74.936.271) | |
| C. Cash flows from financing activities | (8.250.970) | (233.957.947) | |
| Cash inflows and (outflows) related to debt payments, net | (8.767.926) | (1.371.328) | |
| Cash outflows related to debt payments arising from finance lease agreements | (1.663.754) | (2.012.424) | |
| Dividends Paid | -- | (250.430.813) | |
| Interests paid | (1.004.564) | (15.408.078) | |
| Interest received | 3.185.274 | 35.264.694 | |
| Net (decrease) / increase in cash and cash equivalents (A+B+C+D) | (32.267.518) | 82.176.547 | |
| D. Inflation Effect on Cash | (108.202.136) | (366.677.869) | |
| Net increase (decrease) in cash and cash equivalents (A+B+C+D) | (140.469.654) | (284.501.323) | |
| E. Cash and Cash Equivalents at the Beginning of the Period | 4 | 409.934.174 | 662.717.564 |
| Cash and cash equivalents at the end of the period (A+B+C+D) | 269.464.520 | 378.216.241 |
2024 unless otherwise indicated)
The main field of Anatolia Tanı ve Biyoteknoloji Ürünleri Araştırma Sanayi ve Ticaret A.Ş ("Company" or "Anatolia") and its subsidiaries (collectively "The Group"), is producing kits, installation of robots, developing software and designing of devices for research of real-time PCR and such as DNA sequencing and DNA/RNA Isolation techniques.
Exporting its developed products to more than 50 countries in Europe, Asia, Africa and America, the Group is the first and only Turkish manufacturer company invited by the World Health Organization to determine new global test reference standards on four different viruses ("WHO Collaborative Study").
As of the 30 September 2024 the total number of employees of the Group is 235.
The company is registered with the Capital Markets Board ("CMB") and its shares are traded on Borsa Istanbul A.Ş. ("BIST") as of 2021. As of 30 September 2024, the Company has 32,45% of shares registered in BIST (Note 21). The final control of the Group belongs to Elif Akyüz and Alper Akyüz.
The company is registered in Turkey, its registered address and R&D Departments are as follows: Hasanpaşa Mh. Beydağı Sk. No:1-9H, Sultanbeyli, İstanbul, Turkey. The Group has a free zone branch at Aydınlı SB Mahallesi, Matraş Caddesi, No:18/Z02, Tuzla / Istanbul.
The Group carries out production in its head office and free zone branches.
As of 30 September 2024, the subsidiaries subject to the consolidated financial statements, the countries in which they operate, and their fields of activity are as follows:
| Subsidiaries | Country | Main Activity |
|---|---|---|
| Trading of test kits, devices and software in the field | ||
| Alpha IVD SRL ("Alpha") | Italy | of molecular biology |
| Euronano Diagnostics (Private) Limited | Trading of test kits, devices and software in the field | |
| ("Euronano") | Pakistan | of molecular biology |
| Establishing or acquiring companies and businesses in | ||
| RhineGene B.V. ("RhineGene") () (*) | Holland | the field of molecular biology |
| Trading of test kits, devices and software in the field | ||
| RhineGene Philippines ("RhineGene PH") (**) | Philippines | of molecular biology |
| Trading of test kits, devices and software in the field | ||
| RhineGene Bulgaria ("RhineGene BG") (***) | Bulgaria | of molecular biology |
| Trading of test kits, devices and software in the field | ||
| RhineGene Poland("RhineGene PL") (****) | Poland | of molecular biology |
| RhineGene Germany ("RhineGene GE") | Trading of test kits, devices and software in the field | |
| (**) | Germany | of molecular biology |
Alpha and Euronano were founded by Anatolia, Elif Akyüz and Alper Akyüz in 2017 and 2018, respectively.
(*) Within the scope of its growth strategy in international markets, the company established and registered its RhineGene B.V subsidiary, located in the Netherlands, with a capital of 2,000,000 Euros, in which it fully participates, on 09.02.2023.
(**) 200,000 of which RhineGene B.V, which is a 100% subsidiary of the Company, has fully participated in on 10.05.2023. -USD capital, RhineGene Philippines Inc. was established.
(**) RhineGene B, which is a 100% subsidiary of the Company, has been decided to increase its capital to EUR 8,000,000 on 03.01.2024.
(****) RhineGene Poland was established on 27.09.2023, in which RhineGene B.V, a 100% subsidiary of the Company, fully participated.
(*****) RhineGene Germany was established on 03.11.2023, in which RhineGene B.V, a 100% subsidiary of the Company, fully participated.
(***) RhineGene Bulgaria was established on 26.07.2023, in which RhineGene B.V, a 100% subsidiary of the Company, fully participated.
2024 unless otherwise indicated)
The accompanying consolidated financial statements are prepared in accordance with the announcement of the Capital Markets Board ("CMB") "Communiqué on Principles Regarding Financial Reporting in the Capital Markets" ("Communiqué") No. II-14.1 published in the Official Gazette dated 13.06.2013 and numbered 28676 and Turkish Financial Reporting Standards (''TFRS'') published by Public Oversight Accounting and Auditing Standards Board ("POA").
TASs; Turkish Accounting Standards, includes Turkish Financial Reporting Standards ("TFRS") and related annexes and comments.
Consolidated financial statements are presented in accordance with the "TFRS Taxonomy" published by POA dated on 4 October 2023 and Financial Statement Examples and User Guide published by CMB.
Consolidated financial statements as of 1 January – 30 September 2024 have been approved by the Board of Directors and authorized for publication on 8 November 2024 The General Assembly of the Company and the relevant regulatory authorities have the right to request the amendment of the consolidated financial statements after the publication of the consolidated financial statements.
With the announcements made by the Public Oversight Accounting and Auditing Standards Authority (POA) on November 23, 2023, 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 September 30, 2024. TAS 29 is applied to the financial statements, including the consolidated financial statements, of any entity whose functional currency is the currency of a hyperinflationary economy.
According to the standard, financial statements prepared in the currency of a hyperinflationary economy are presented in terms of the purchasing power of that currency at the balance sheet date. Prior period financial statements are also presented in the current measurement unit at the end of the reporting period for comparative purposes. The Group has therefore presented its consolidated financial statements as of September 30, 2023, on the purchasing power basis as of September 30, 2024. Pursuant to the decision of the Capital Markets Board (SPK) dated December 28, 2023 and numbered 81/1820, it has been decided that issuers and capital market institutions subject to financial reporting regulations that apply Turkish Accounting/Financial Reporting Standards will apply inflation accounting by applying the provisions of IAS 29 starting from their annual financial reports for the periods ending on September, 2024.
The adjustments made in accordance with IAS 29 were made using the adjustment coefficient obtained from the Consumer Price Index (CPI) of Turkey published by the Turkish Statistical Institute (TÜİK). As of September 30, 2024, the indices and adjustment coefficients used in the adjustment of the consolidated financial statements are as follows:
| Year End | lndeks | Conversion Factor | Three Year Inflation Rate |
|---|---|---|---|
| 30 September 2024 | 2.526,16 | 1,0000 | 343% |
| 31 December 2023 | 1.859,38 | 1,35860 | 268% |
| 30 Septembe 2023 | 1.691,04 | 1,49385 | 254% |
The main elements of the Group's adjustment process for financial reporting in hyperinflationary economies are as follows:
2024 unless otherwise indicated)
Monetary assets and liabilities are not adjusted as they are already expressed in terms of the current purchasing power at the balance sheet date. In cases where the inflation-adjusted values of non-monetary items exceed their recoverable amount or net realizable value, the provisions of IAS 36 "Impairment of Assets" and IAS 2 "Inventories" are applied, respectively.
Non-monetary assets and liabilities and equity items that are not expressed in terms of the current purchasing power at the balance sheet date have been adjusted using the relevant adjustment coefficients.
All items in the comprehensive income statement, except for those that have an impact on the comprehensive income statement of non-monetary items on the balance sheet, have been indexed using the coefficients calculated for the periods when the income and expense accounts were first reflected in the financial statements.
The impact of inflation on the Group's net monetary asset position in the current period is recorded in the net monetary gain/(loss) account in the consolidated income statement.
The current period consolidated financial statements of the Group are prepared comparatively with the previous period in order to enable the determination of the financial position and performance trends. Comparative information is reclassified when deemed necessary in order to comply with the presentation of the current period consolidated financial statements.
The Group prepares and maintains its legal books and prepares its statutory financial statements in accordance with the Turkish Commercial Code ("TCC"), accounting principles set forth by tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance. The valid currency of the Group is Turkish Lira ("TL"). These consolidated financial statements are presented in TL, which is the valid currency of the Group.
Subsidiaries in foreign country assets and liabilities are translated into TRY from the foreign exchange rate at the reporting date and income and expenses are translated into TRY at the average foreign exchange rate. The retranslation of net assets at the beginning of the period and the exchange differences which resulting from the using of average exchange rates are followed on differences of foreign currency translation account within shareholders' equity.
Financial assets and liabilities are shown in net, if the required legal right already exists, there is an intention to pay the assets and liabilities on a net basis, or if there is an intention to realize the assets and the fulfilment of the liabilities simultaneously.
Significant changes in accounting policies are applied retrospectively and prior period consolidated financial statements are restated.
2024 unless otherwise indicated)
If changes in accounting estimates are related to only one period, they are recognised in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.
There was no significant change in accounting estimates of the Group in the current year. The detected significant accounting errors are applied retrospectively, and prior period consolidated financial statements are restated.
The consolidated financial statements prepared on a going concern basis, with the assumption that the Group will benefit from its assets and fulfil its obligations in the next year and in the natural course of its activities.
As at 30 September 2024, the accounting policies adopted in preparation of the condensed consolidated interim financial statements for the year ended 30 September 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRIC interpretations effective as of 1 January 2024.
The effects of these standards and interpretations on the financial position and performance of the Groupare disclosed in the related paragraphs.
TAS 1 (Amendments) Classification of Liabilities as Current or Non-Current IFRS 16 (Amendments) Lease Liability in a Sale and Leaseback Transaction TAS 1 (Amendments) Long-term liabilities with loan contract terms TAS 7 and TFRS 7 (Amendments) Supplier Financing Arrangements TSRS 1 General requirements for disclosure of sustainability-related financial information TSRS 2 Climate Related Disclosures
The purpose of these amendments is to ensure consistent application of the requirements of the standard by assisting entities in making decisions about whether debt and other liabilities in the statement of financial position that have no fixed maturity should be classified as current (expected to be settled within one year) or non-current.
These amendments to IAS 1 will be effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
The Group is in the process of assessing the potential impact of the standard, amendments and improvements on the consolidated financial position and performance of the Group / the Company.
These amendments to TFRS 16 clarify how a seller-lessee subsequently measures sale and leaseback transactions that meet the requirements in TFRS 15 to be recognised as sales.
These amendments to TFRS 16 are effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
The Group is in the process of assessing the potential impact of these standards, amendments and improvements on the consolidated financial position and performance of the Group
The amendments to TAS 1 clarify how conditions that an entity must meet within twelve months of the reporting period affect the classification of a liability.
The amendments to TAS 1 are effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
The Group is in the process of assessing the potential impact of these standards, amendments and improvements on the consolidated financial position and performance of the Group
The amendments to TAS 7 and TFRS 7 add guidance that requires entities to provide qualitative and quantitative information about supplier financing arrangements and disclosure requirements to existing disclosure requirements. The amendments are effective for annual periods beginning on or after 1 January 2024.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group
TSRS 1 sets out general requirements for sustainability-related financial disclosures, requiring an entity to disclose information about sustainability-related risks and opportunities that is useful for primary users of general purpose financial reports to make decisions about funding the entity. The application of this standard is mandatory for annual reporting periods beginning on or after 1 January 2024 for entities that meet the relevant criteria in the POA's announcement dated 5 January 2024 and numbered 2024-5 and for banks regardless of the criteria. Other entities may voluntarily report in accordance with TSRS.
The Group is in the process of assessing the impact of the amendment on the financial position and performance of the Group
TSRS 2 sets out the requirements for identifying, measuring and disclosing climate-related risks and opportunities that are useful to primary users of general purpose financial reports in making decisions about funding the entity. The application of this standard is mandatory for annual reporting periods beginning on or after 1 January 2024 for entities that meet the relevant criteria in the POA's announcement dated 5 January 2024 and numbered 2024- 5 and for banks regardless of the criteria. Other entities may report in accordance with TSRS on a voluntary basis.
The Group has not yet adopted the following standards, amendments and interpretations to existing standards that are not yet effective
TFRS 17 Insurance Contracts TFRS 17 (Amendments) Insurance Contracts and First-time Adoption of TFRS 17 and TFRS 9 - Comparative Information TAS 21 (Amendments) Lack of Exchangeability
IFRS 17 requires insurance liabilities to be measured at a current settlement value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts as at 1 January 2025.
The Group is in the process of assessing the potential impact of the standards, amendments and improvements on the consolidated financial position and performance of the Group
Amendments have been made to TFRS 17 to reduce implementation costs and facilitate disclosure of results and transition.
In addition, the amendment on comparative information permits entities that are first-time adopters of TFRS 7 and TFRS 9 to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had previously been applied to that financial asset.
The Group is in the process of assessing the potential impact of the standards, amendments and improvements on the consolidated financial position and performance of the Group
These amendments provide guidance on when a currency is exchangeable and how exchange rates should be determined when it is not. The amendments are effective for annual reporting periods beginning on or after January 1, 2025.
The Group / Company is in the process of assessing the potential impact of the standards, amendments and improvements on the consolidated financial position and performance of the Group
Significant accounting policies applied in the preparation of these consolidated financial statements are summarized below:
Full Consolidation:
Consolidated financial statements include the financial statements of the subsidiary managed by the Group in Note 1.
As of 30 September 2024 and 30 September 2023, the subsidiaries consolidated within the Parent Company have been consolidated using the "full consolidation method" since the control power belongs to the Group.
The applied principles of consolidation as below:
(i) The balance sheets and income statements of the subsidiaries are consolidated one by one for each item and the carried net book value of the investment, which is owned by the Parent Company, is eliminated with the related equity items. The intra-group transactions, the remaining profit margins balances in the balance sheets which between the Parent Company and its subsidiaries, are eliminated.
The following table shows the subsidiaries, total shares of owned and effective partnership ratios as of 30 September 2024 and 31 December 2023:
| Subsidiaries | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Alpha IVD SRL ("Alpha") (*) | 100,00% | 100,00% |
| Euronano Diagnostics (Private) Limited ("Euronano") | 99,99% | 99,99% |
| RhineGene B.V. ("RhineGene") | 100% | 100% |
| RhineGene Philippines ("RhineGene PH") | 100% | 100% |
| RhineGene Bulgaria ("RhineGene BG") | 100% | 100% |
| RhineGene Poland ("RhineGene PL") | 100% | 100% |
| RhineGene Germany ("RhineGene GE") | 100% | 100% |
(*) Although the ownership rate of the company is 50% or less, control power can be obtained with the remaining votes belonging to Elif Akyüz and Alper Akyüz, who are also the controlling shareholders of Anatolia. Elif Akyüz and Alper Akyüz declared that they will use their voting rights in line with Anatolia.
The company take over 100% of the company by paying 66,501,299 TL for the remaining 76.67% of Alpha shares. The transfer and delivery procedures were completed on May 25, 2023. This take over is considered as a "business combination under common control" and the difference between Alpha's net equity at the acquisition date and the purchase price is classified under "Share Premiums" under equity. (**) (Footnote 1)
To the accompanying consolidated financial statements, key personnel in management and board of directors, their family and controlled or dependent companies, participations and subsidiaries of the Group is referred to as related parties.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less (Note 5). To consolidated statements of cash flows, cash and cash equivalents includes cash and cash equivalents with original maturities less than three months, excluding the interest accruals. If any provision provided to the cash and cash equivalents because of a specific event, Group measures expected credit loss from these cash and cash equivalents by the life-time expected credit loss. The calculation of expected credit loss is performed based on the experience of the Group and its expectations for the future indications.
Trade receivables that are created by the Group by way of providing goods or services in the ordinary course of business directly to a debtor are recognized initially at fair value and subsequently measured at amortized cost, using the effective interest rate method, less provision for impairment. Short-term trade receivables with no specific interest rates are measured at original invoice amount if the effect of interest accrual is unsignificant.
IAS 39, "Financial Instruments" valid before 1 January 2018: Instead of "realised credit losses model" in Accounting and Measurement Standard, "expected credit loss model" was defined in IFRS 9 "Financial Instruments" Standard. Expected credit loss is estimated by weighting credit losses, expected to occur throughout the expected life of financial instruments, based on previous statistics. When calculating the expected credit losses, credit losses in the previous years and forecasts of the Group are considered.
Trade payables are stated at their nominal value, discounted to present value as appropriate.
Inventories are stated at the lower of cost and net realizable value. Cost is calculated using the weighted average method. Costs comprise direct materials, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. Net realizable value represents the estimated selling price less all estimated costs to completion and costs to be incurred in marketing, selling and distributed.
Property, plant, and equipment are carried at acquisition cost, less any accumulated depreciation and any impairment loss Land is not depreciated as it is deemed to have an indefinite useful life.
Depreciation is provided on the restated amounts of property, plant and equipment on a pro-rata basis. Profit and loss arising out of the sale of property, plant and equipment are included in the other income and expense accounts. Repair and maintenance expenditure related to property, plant and equipment is expensed as incurred.
Cost amounts of property, plant and equipment, other than the lands and construction in progress are subject to depreciation by using systematic pro-rata basis using the straight-line method in accordance with their expected useful life.
The depreciation and amortization periods for property, plant and equipment, which approximate the economic useful lives of such assets, are as follows:
| Year | |
|---|---|
| Buildings | 50 |
| Machinery and Equipment | 4-14 |
| Motor vehicles | 5-10 |
| Furniture and Fixtures | 4-10 |
| Leasehold improvements | 10-20 |
An intangible asset is recognized if it meets the identifiability criterion of intangibles, control exists over the asset; it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the costs can be measured reliably. Intangible assets are carried at cost less accumulated amortization and impairment. Amortization of intangible assets is allocated on a systematic pro-rata basis using the straight-line method Intangible assets including acquired rights, information systems and computer software are amortized using the straight-line.
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
Costs incurred on development projects relating to the design and testing of new or improved products are recognized as intangible assets when it is probable that the project will be a success considering its commercial and technological feasibility, and only if the cost can be measured reliably. Other research and development expenditures are recognized as an expense as incurred. Development expenditures previously recognized as an expense cannot be recognized as an asset in a subsequent period.
The useful lives of intangible assets are as follows:
| Year | |
|---|---|
| Rights | 3-5 |
| Research and development costs | 5 |
| Other intangible asset | 5-10 |
The carrying values of all tangible or intangible fixed assets, other than goodwill which is reviewed for impairment at least annually, are reviewed for impairment when events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Whenever the carrying amount of an asset exceeds its recoverable amount, an impairment loss is recognized in the income statement for items carried at cost and treated as a revaluation decrease for items carried at revalued amount to the extent that impairment loss does not exceed the amount held in the revaluation surplus. The recoverable amount of property, plant and equipment is the greater of net selling price and value in use.
The Group performs the classification process regarding its financial assets during the acquisition of the related assets and reviews them regularly.
The Group classifies its financial assets in three categories of financial assets measured at amortized cost, financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit of loss. The classification of financial assets is determined considering the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial assets. The appropriate classification of financial assets is determined at the time of the purchase.
Financial assets are not reclassified after initial recognition except when the Group's business model for managing financial assets changes; in the case of a business model change, after the amendment, the financial assets are reclassified on the first day of the following reporting period.
Financial assets measured at amortized cost, are non-derivative assets that are held within a business model whose objective is to hold assets to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. The Group's financial assets measured at amortized cost comprise "cash and cash equivalents", "trade receivables", "other receivables" and "financial investments". Financial assets carried at amortized cost are measured at their fair value at initial recognition and by effective interest rate method at subsequent measurements. Gains and losses on valuation of non-derivative financial assets measured at amortized cost are accounted for under the statement of income.
2024 unless otherwise indicated)
Financial assets measured at fair value through other comprehensive income, are non-derivative assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Gains or losses on a financial asset measured at fair value through other comprehensive income is recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses until the financial asset is derecognized or reclassified. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified to retained earnings.
In case of sale of assets, valuation differences classified to other comprehensive income are reclassified to retained earnings.
Group make a choice for the equity instruments during the initial recognition and elect profit or loss or other comprehensive income for the presentation of fair value gain and loss. If the said preference is made, dividends from related investments are recognized in the income statement.
Financial assets measured at fair value through profit or loss, are assets that are not measured at amortized cost or at fair value through other comprehensive income. Gains and losses on valuation of these financial assets are accounted for under the statement of income.
The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expires, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all the risks and rewards of ownership of the financial asset were transferred. Any interest in such transferred financial assets that was created or retained by the Company is recognized as a separate asset or liability.
Impairment of the financial and contractual assets is measured by using "Expected credit loss model" (ECL). The impairment model applies for amortized financial and contractual assets.
Provisions for losses are measured as below.
Provisions for losses are measured as below.
12- Month ECL: results from default events that are possible within 12 months after reporting date.
Lifetime ECL: results from all possible default events over the expected life of financial instrument.
Lifetime ECL measurement applies if the credit risk of a financial asset at the reporting date has increased significantly since 12-month ECL measurement if it has not.
The Group may determine that the credit risk of a financial asset has not increased significantly if the asset has low credit risk at the reporting date. However, lifetime ECL measurement (simplified approach) always apply for trade receivables and contract assets without a significant financing.
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
Financial liabilities and equity instruments issued by the Group are classified according to the substance of the contractual arrangements entered and the definitions of a financial liability and an equity instrument. An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all its liabilities. The accounting policies adopted for specific financial liabilities and equity instruments are set out below.
Financial liabilities are classified as either financial liabilities at fair value through profit and loss or other financial liabilities.
Financial liabilities are classified as at FVTPL where the financial liability is either held for trading or it is designated as at FVTPL. Financial liabilities at FVTPL are stated at fair value, with any resultant gain or loss recognized in profit or loss. The net gain or loss recognized in profit or loss incorporates any interest paid on the financial liability.
Other financial liabilities, including borrowings, are initially measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at amortized cost using the effective interest method, with interest expense recognized on an effective yield basis.
The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments through the expected fife of the financial liability, or, where appropriate, a shorter period.
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a considerable time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets is substantially ready for their intended use or sale. Investment income earned by the temporary investment of the part of the borrowing not yet used is deducted from the borrowing costs eligible for capitalization. All other borrowing costs are recognized in profit or loss in the period in which they are incurred.
Income tax expense represents the sum of the tax currently payable and deferred tax. Current tax: The tax currently payable is based on taxable profit for the year.
Deferred tax: Deferred tax is provided, using the liability method, on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.
Under the Turkish law and union agreements, severance payments are made to employees retiring or involuntarily leaving the Group. Such payments are considered as being part of defined retirement benefit plan as per International Accounting Standard No: 19 "Employee Benefits" ("IAS 19"). The retirement benefit obligation recognized in the balance sheet represents the present value of the defined benefit obligation as adjusted for unrecognized actuarial gains and losses.
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
Operating expenses are recognized in profit or loss upon utilization of the service or at the date of their origin. Expenditure for warranties is recognized and charged against the associated provision when the related revenue is recognized.
Group recognizes revenue when the goods or services is transferred to the customer and when performance obligation is fulfilled. Goods are counted to be transferred when the control belongs to the customer. Group recognizes revenue based on the following main principles:
(e) Recognition of revenue when the performance obligations are fulfilled.
Group recognizes revenue from its customers only when all the following criteria are met:
It is probable that Group will collect the consideration to which it will be entitled in exchange for the goods or services that will be transferred to the customer. In evaluating whether collectability of an amount of consideration is probable, an entity shall consider only the customer's ability and intention to pay that amount of consideration when it is due.
Rent income from operational rental transactions is accounted if it is measured reliably based on straight-line method during relevant rental agreement and if it is possible that an economic benefit related to transaction is achieved by the Group.
Provisions are recognized when, and only when the Group has a present obligation because of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are recognized by the amortized amount as of balance sheet date in case that the monetary loss is material. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Transactions that may give rise to contingencies and commitments are those where the outcome and the performance of which will be ultimately confirmed only on the occurrence or non-occurrence of certain future events unless the expected performance is remote. Accordingly, contingent losses are recognized in the financial statements if a reasonable estimate of the amount of the resulting loss can be made. Contingent gains are reflected only if it is probable that the gain will be realized.
Transactions in foreign currencies during the periods have been translated at the exchange rates prevailing at the dates of these transactions. Balance sheet items denominated in foreign currencies have been translated at the exchange rates prevailing at the balance sheet dates. The foreign exchange gains and losses are recognized in the income statement.
The periods-end rates used for USD, EURO and PKR are shown below:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| US Dollars | 34,1210 TRY | 29,4382 TRY |
| Euro | 38,0180 TRY | 32,5739 TRY |
| PKR | 0,1200 TRY | 0,1050 TRY |
| PLN (Zloti) | 8,9102 TRY | 7,5187 TRY |
| LEVA | 19,3297 TRY | 16,5611 TRY |
| PHP | 0,6083 TRY | 0,5312 TRY |
Earnings per share presented in the consolidated statements of profit or loss are determined by dividing consolidated net income attributable to that class of shares by the weighted average number of such shares outstanding during the year concerned. In Turkey, companies can increase their share capital by making a prorata distribution of shares ("bonus shares") to existing shareholders from retained earnings or inflation adjustments. To earnings per share computations, the weighted average number of shares outstanding during the year has been adjusted in respect of bonus shares issued without a corresponding change in resources by giving them retroactive effect for the year in which they were issued and for each earlier period.
Grants from the government are recognized at their fair value where there is a reasonable assurance that the grant will be received and the group will comply with all the attached conditions. Government grants relating to costs are deferred and recognized in the income statement over the period necessary to match them with the costs that they are intended to compensate. Government grants relating to property, plant and equipment are included in non-current liabilities as deferred government grants and are credited to the income statement on a straight-line basis over the expected lives of the related assets.
Cash and cash equivalents comprise of cash in hand, bank deposits and short-term investments, which can easily be converted into cash for a known amount, has high liquidity with maturities of 3 months or less.
EBITDA is defined as earnings before interest expense, income tax expense (benefit), depreciation and amortization. This information should be read with the statements of cash flows contained in the accompanying financial statements (note 3).
Provisions for doubtful trade receivables: The provision for doubtful receivables reflects the amounts that the management believes will cover the future losses of the receivables that exist as of the reporting date but have the risk of being uncollectible within the current economic conditions. While evaluating whether the receivables are impaired or not, the past performance of the debtors, their credibility in the market, their performance from the date of the consolidated financial statements until the approval date of the consolidated financial statements and the renegotiated conditions are also taken into. In addition, the "simplified approach" defined in TFRS 9 has been preferred within the scope of the impairment calculations of trade receivables that are accounted at amortized cost in the consolidated financial statements and that do not contain a significant financing component (with a maturity of less than one year). With this approach, the Group measures the provision for impairment on trade receivables at an amount equal to "lifetime expected credit losses", unless the trade receivables are impaired for certain reasons (excluding realized impairment losses).
Provision for employee benefit: Employment termination benefits pay liability is determined by actuarial calculations based on some assumptions including discount rates, future salary increases and employee turnover rates. Since these plans are long term, these assumptions contain significant uncertainties.
Lawsuit provisions: The probability of loss of ongoing lawsuits and the consequences that will be endured if they are lost are evaluated in line with the opinions of the Group's legal advisors. The Group management makes its best estimates using the data in hand and estimates the provision it deems necessary.
Deferred tax: The Group recognizes deferred tax assets and liabilities based upon temporary differences arising between their statement of financial position accounts prepared in accordance with TAS/TFRS promulgated by POA Financial Reporting Standards and their statutory financial statements. These temporary differences usually result from the recognition of revenue and expenses in different reporting periods for TAS/TFRS and Tax Laws.
Impairment of Inventory: When calculating, data on the list prices of inventories after discounting are used. In cases where the projected net realizable value is below the cost value, an inventory impairment provision is made.
The details of the Group's shares in other businesses for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Alpha IVD S.p.A | Alpha IVD S.p.A | |
| (Italy) | (Italy) | |
| Solo | Solo | |
| Current assets | 91.659.693 | 162.534.354 |
| Non-current assets | 6.134.137 | 50.438.780 |
| Total assets | 97.793.830 | 212.973.135 |
| Current liabilities | 9.844.040 | 9.485.861 |
| Non-current liabilities | 1.675.977 | 2.248.251 |
| Total debts | 11.520.017 | 11.734.112 |
| Net assets | 86.273.813 | 201.239.022 |
| Profit Loss for the period: | ||
| Revenue | 24.438.320 | 33.523.286 |
| Profit / (Loss) for the period | (31.435.467) | (32.021.645) |
| Profit Loss for the period: | (31.435.467) | (32.021.645) |
| Euronano (Pakistan) Solo |
Euronano (Pakistan) Solo |
|
|---|---|---|
| xxx | ||
| Current assets | 34.026.975 | 45.169.907 |
| Non-current assets | 6.134.137 | 7.424.553 |
| Total assets | 40.161.112 | 52.594.460 |
| Current liabilities | 92.611.043 | 109.901.786 |
| Total debts | 92.611.043 | 109.901.786 |
| Net assets | (52.449.931) | (57.307.326) |
| Profit Loss for the period: | ||
| Revenue | 6.568.514 | 6.645.454 |
| Profit / (Loss) for the period | (57.469) | (27.297.096) |
| Profit Loss for the period: | (57.469) | (27.297.096) |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| RhineGene B.V. | RhineGene B.V. | |
| (Hollanda) | (Hollanda) | |
| Solo | Solo | |
| xxx 49.529.436 |
42.657.230 | 49.529.436 |
| 115.586.766 | 21.033.903 | 115.586.766 |
| 165.116.202 | 63.691.133 | 165.116.202 |
| Current liabilities | 625.406 | 913.405 |
| Total debts | 625.406 | 913.405 |
| Net assets | 164.490.796 | 62.777.728 |
| Profit Loss for the period: | ||
| Revenue | -- | -- |
| Profit / (Loss) for the period | (1.607.338) | (6.748.407) |
| Profit Loss for the period: | (1.607.338) | (6.748.407) |
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| RhineGene | RhineGene | |
| Philippines | Philippines | |
| Solo | Solo | |
| xxx | ||
| Current assets | 1.365.173 | 2.452.945 |
| Non-current assets | 3.744.046 | 1.973.310 |
| Total assets | 5.109.219 | 4.426.255 |
| Current liabilities | 14.701.484 | 13.476.264 |
| Total debts | 14.701.484 | 13.476.264 |
| Net assets | (9.592.265) | (9.050.009) |
| Profit Loss for the period: | ||
| Revenue | -- | -- |
| Profit / (Loss) for the period | (1.821.064) | (6.406.679) |
| Profit Loss for the period: | (1.821.064) | (6.406.679) |
| 30 September 2024 | 31 December 2023 | |
| RhineGene | RhineGene | |
| Bulgaria | Bulgaria | |
| Solo | Solo | |
| Current assets | 103.491.215 | 7.846.489 |
| Non-current assets | 1.372.409 | 653.874 |
| Total assets | 104.863.624 | 8.500.363 |
| Current liabilities | 4.288.589 | 10.187.742 |
| Total debts | 4.288.589 | 10.187.742 |
| Net assets | 100.575.035 | (1.687.379) |
| Profit Loss for the period: | ||
| Revenue | 4.575.495 | 2.394.077 |
| Profit / (Loss) for the period | (4.326.247) | (5.462.044) |
| Profit Loss for the period: | (4.326.247) | (5.462.044) |
| 30 September 2024 | 31 December 2023 | |
| RhineGene | RhineGene | |
| Poland | Poland | |
| Solo | Solo | |
| Current assets | 26.137.501 | 30.306.578 |
| Non-current assets | -- | 1.819.151 |
| Total assets | 26.137.501 | 32.125.729 |
| Current liabilities | 30.212.769 | 26.760.542 |
| Total debts | 30.212.769 | 26.760.542 |
| Net assets | (4.075.268) | 5.365.187 |
| Profit Loss for the period: | ||
| Revenue | 10.772.350 | 13.215.398 |
| Profit / (Loss) for the period | (6.454.431) | (6.331.782) |
| Profit Loss for the period: | (6.454.431) | (6.331.782) |
Consolidated Statements of Cash Flows For The Periods Ended at 1 January – 30 September 2024 and 30 September 2023
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| RhineGene | RhineGene | |
| Germany | Germany | |
| Solo | Solo | |
| Current assets | 4.135.712 | 2.824.704 |
| Non-current assets | 1.900.900 | 2.763.674 |
| Total assets | 6.036.612 | 5.588.377 |
| Current liabilities | 8.989.594 | 9.607.607 |
| Non-current liabilities | 15.234.600 | -- |
| Total debts | 24.224.194 | 9.607.607 |
| Net assets | (18.187.582) | (4.019.230) |
| Profit Loss for the period: | ||
| Revenue | 6.000.250 | -- |
| Profit / (Loss) for the period | (7.032.365) | (4.014.866) |
| Profit Loss for the period: | (7.032.365) | (4.014.866) |
The details of the Group's cash and cash equivalents for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Cash in hand | -- | 2.398 |
| Cash at banks | 269.464.520 | 409.822.089 |
| - Demand deposit | 201.382.557 | 220.303.531 |
| - Time deposit less than 3 months | 68.081.963 | 189.518.558 |
| Other cash and cash equıvalents | -- | 109.687 |
| 269.464.520 | 409.934.174 | |
| Currency | Interest rate | Maturity | 30 September 2024 |
|---|---|---|---|
| TRY | %30 - %4,75 | 01.10.2024 – 01.10.2024 | 429.122 |
| USD | %4,30 - %3,75 | 31.10.2024 – 31.10.2024 | 36.097.901 |
| EUR | % 2,75 - % 3,75 | 31.10.2024 – 31.10.2024 | 31.554.940 |
68.081.963
| Currency | Interest rate | Maturity | 31 December 2023 |
|---|---|---|---|
| TRY | %29,98-%38,97 | 2.01.2024 | 8.953.091 |
| USD | 5% | 31.01.2024 | 67.906.786 |
| EUR | 2% | 31.01.2024 | 112.658.681 |
| 189.518.558 |
The details of the Group's financial investments for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Fair value through | 15.762.159 | 79.302.692 |
| 15.762.159 | 79.302.692 |
The details of the Group's trade receivables for the periods are as follows:
| Short-term trade receivables | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Trade receivables | 90.008.727 | 101.331.083 |
| - Trade receivables from third parties | 90.008.727 | 101.331.083 |
| Notes receivable | 2.776.477 | 4.537.084 |
| Income accruals | 491.942 | -- |
| Doubtful trade receivables (*) | 1.338.289 | 1.237.099 |
| Provision for doubtful trade receivables (-) | (1.338.289) | (1.237.099) |
| 93.277.146 | 105.868.167 |
As of 30 September 2024, the average maturity of the Group's trade receivables is 90 days. (30 September 2023: 90 days).
Explanations on the nature and level of risks in trade receivables are given in Note 31.
(*) The movement of the allowance for doubtful receivables is as follows:
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Balance at beginning of the period | 1.237.099 | 882.991 |
| Current year additions (Note 29) | 316.130 | 138.221 |
| Currency translation differences | 123.249 | 229.449 |
| Inflation adjustments | (338.189) | (13.562) |
| End of the period | 1.338.289 | 1.237.099 |
The details of the trade payables are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term trade payables | ||
| Trade payables | 16.888.852 | 8.147.084 |
| Expense Accruals | 4.311.394 | 3.399.499 |
| Other trade payables | 4.742.824 | 3.188.535 |
| 25.943.070 | 14.735.118 |
As of 30 September 2024, the average maturity of the Group's trade receivables is 90 days. (31December 2023: 90 day).
Explanations on the nature and level of risks in trade payables are given in Note 30.
As of 30 September 2024, there are no trade receivables from organizations (31 December 2023: None).
The total amount of wages and similar benefits provided to the Group's President and Vice President of the Board of Directors and other key executives as of 30 September 2024 is TRY 7.171.261(31 December 2023: TRY 6.626.824)
The details of the Group's other receivables and payables for the periods are as follows:
| Short term other receivables | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Deposits and guarantees given | 2.070.225 | 1.055.291 |
| Other receivables(*) | 5.826.466 | 22.919.813 |
| 7.896.691 | 23.975.104 | |
| (*) Other receivables consist of VAT receivables. | ||
| Long term other receivables | 30 September 2024 | 31 December 2023 |
| Deposits and guarantees given | 983.257 | 1.246.957 |
| 983.257 | 1.246.957 | |
| Short term other payables | 30 September 2024 | 31 December 2023 |
| Free zone overdue deferred tax liabilities | 2.347.258 | 2.169.275 |
| Other payables | 738.737 | 4.155.252 |
| 3.085.995 | 6.324.527 |
The details of the Group's inventories for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Raw materials | 128.245.971 | 125.609.727 |
| Work in Process | 141.923.856 | 151.646.425 |
| Trade goods | 40.959.019 | 28.060.693 |
| Other Inventories | 17.436.745 | 11.160.837 |
| Provision for impairment in inventory | (17.754.445) | (9.303.436) |
| 310.811.146 | 307.174.246 | |
| 30 September 2024 | 31 December 2023 | |
| Balance at beginning of the period | 9.303.436 | 4.588.855 |
| Current year additions | 8.368.298 | 12.707.551 |
| Currency translation differences | 82.711 | 458.039 |
| End of the period | 17.754.445 | 17.754.445 |
The details of short and long-term prepaid expense for the periods are as follows:
| 30 September 2024 | 31 December 2023 |
|---|---|
| 8.435.343 | |
| 3.697.409 | 4.238.224 |
| 12.673.567 | |
| 12.116.199 15.813.608 |
(*) Consists of personnel expenses in the Center and Free Zone.
(**) Order advances given consist of advances given for building modernization and investment to move the Group's headquarters and R&D center.
| Long-term prepaid expenses | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Prepaid expenses for the following years | 1.951.554 | 242.107 |
| Advances given | -- | 496.043 |
| 1.951.554 | 738.150 | |
| Deferred income-short term | 30 September 2024 | 31 December 2023 |
| Advances received (*) | 5.827.509 | 6.143.105 |
| Short-term deferred income | 189.930 | -- |
| 6.017.439 | 6.143.105 |
(*) Advances received consist of advances received by the Group from customers regarding sales.
Advances received consist of advances received by the Group from customers regarding sales.
The details of other assets and liabilities for the periods are as follows:
| Other current assets | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Deferred VAT | 38.604.576 | 32.308.025 |
| Other current assets | 2.031.351 | 2.115.566 |
| 40.635.927 | 34.423.591 | |
| Other short-term liabilities | 30 September 2024 | 31 December 2023 |
| Prepaid taxes and dues | 9.765.259 | 7.825.765 |
| Other | 26.259 | 17.602 |
| 9.791.518 | 7.843.367 | |
Movement of property, plant, and equipment for the period 01.01.-30.09.2024 is as follows:
| 1 January 2024 |
Additions | Disposals (-) | Foreign currency translation differences |
30 September 2024 |
|
|---|---|---|---|---|---|
| Cost | |||||
| Land and land | |||||
| improvements | 99.601.513 | 5.254.089 | -- | -- | 104.855.602 |
| Buildings | 271.084.015 | -- | (12.403.866) | 3.581.380 | 262.261.529 |
| Machinery and equipment | 314.231.588 | 28.266.270 | (4.102.256) | 9.036.200 | 347.431.802 |
| Vehicles | 45.751.125 | 2.870.581 | (2.377.237) | 675.775 | 46.920.244 |
| Furniture and fixtures | 78.538.538 | 18.354.879 | (678.998) | 676.533 | 96.890.952 |
| Other tangible assets | 1.639.688 | 1.427.851 | (2.156.700) | 1.062.307 | 1.973.146 |
| Leasehold improvements | 25.670.065 | -- | (43.157) | 21.577 | 25.648.485 |
| Construction in progress | 189.698 | -- | -- | 165.430 | 355.128 |
| 836.706.230 | 56.173.670 | (21.762.214) | 15.219.202 | 886.336.888 | |
| Foreign |
| 1 January 2024 |
Current year charge |
Disposals (-) | currency translation differences |
30 September 2024 |
|
|---|---|---|---|---|---|
| Accumulated | |||||
| depreciation | |||||
| Buildings | (17.576.021) | (3.592.363) | 248.076 | (1.551.597) | (22.471.905) |
| Machinery and equipment | (151.300.708) | (31.909.317) | 820.452 | (12.502.118) | (194.891.691) |
| Vehicles | (17.372.458) | (6.806.093) | 865.559 | (1.506.833) | (24.819.825) |
| Furniture and fixtures | (28.028.669) | (10.935.800) | 169.749 | (2.659.234) | (41.453.954) |
| Other tangible assets | (371.270) | (110.049) | 96.121 | -- | (385.198) |
| Leasehold improvements | (17.605.094) | (2.606.390) | 12.947 | (1.384.531) | (21.583.068) |
| (232.254.220) | (55.960.012) | 2.212.904 | (19.604.313) | (305.605.641) | |
| Net book value | 604.452.010 | 580.731.247 | |||
As of 30 September 2024, property, plant, and equipment are insured for TRY 363.250.000 and there is no mortgage on it (31.12.2023: 273.075.000 TRY ).
Movement of property, plant and equipment for the period 01.01.-30.09.2023 is as follows:
| Foreign currency |
|||||
|---|---|---|---|---|---|
| 1 January 2023 |
Additions | Disposals (-) | conversion differences |
30 September 2023 |
|
| Cost | |||||
| Land and land | |||||
| improvements | 99.601.513 | 5.947.476 | -- | -- | 105.548.989 |
| Buildings | 258.703.891 | -- | (5.978.560) | 7.394.135 | 260.119.466 |
| Machinery and equipment | 257.643.065 | 48.587.376 | (14.275.335) | 16.446.182 | 308.401.288 |
| Vehicles | 35.154.898 | 7.261.692 | (3.907.933) | 2.197.632 | 40.706.289 |
| Furniture and fixtures | 69.823.529 | 5.624.153 | (36.044) | 155.463 | 75.567.101 |
| Other tangible assets | 996.650 | 1.307.021 | (844.490) | 601.633 | 2.060.814 |
| Leasehold improvements | 24.997.569 | 614.028 | -- | 53.844 | 25.665.441 |
| Construction in progress | 645.949 | -- | -- | (503.346) | 142.603 |
| 747.567.064 | 69.341.746 | (25.042.362) | 26.345.543 | 818.211.991 |
| 1 January 2023 |
Current year charge |
Disposals (-) | Foreign currency conversion differences |
30 September 2023 |
|
|---|---|---|---|---|---|
| Accumulated depreciation | |||||
| Buildings | (9.249.999) | (3.702.410) | -- | (258.649) | (13.211.058) |
| Machinery and equipment | (109.805.506) | (26.253.001) | 1.676.852 | (2.893.054) | (137.274.709) |
| Vehicles | (12.545.181) | (6.664.109) | 36.045 | (382.874) | (19.556.119) |
| Furniture and fixtures | (18.394.159) | (10.829.230) | 1.200 | (550.576) | (29.772.765) |
| Other tangible assets | (156.095) | -- | -- | (3.117) | (159.212) |
| Leasehold improvements | (14.120.449) | (2.583.967) | -- | (333.574) | (17.037.990) |
| (164.271.389) | (50.032.717) | 1.714.097 | (4.421.844) | (217.011.853) | |
| Net book value | 583.295.675 | 601.200.138 |
Movement of intangible fixed asset for the period 01.01.-30.09.2024 is as follows:
| Foreign currency |
30 | |||||
|---|---|---|---|---|---|---|
| 1 January | Disposals | conversion | September | |||
| Cost | 2024 | Additions | (-) | Transfers | differences | 2024 |
| Rights (*) Research and |
80.523.556 | 8.744 | -- | (12.375.459) | -- | 68.156.841 |
| development costs (**) Other intangible fixed |
201.250.452 | 120.118.122 | -- | 12.375.459 | -- | 333.744.033 |
| assets | 1.019.527 | -- | (173.590) | -- | 482.300 | 1.328.237 |
| 282.793.535 | 120.126.866 | (173.590) | -- | 482.300 | 403.229.111 | |
| 1 January | Current | Disposals | Foreign currency conversion |
30 September |
||
| Accumulated depreciation |
2024 | year charge | (-) | Transfers | differences | 2024 |
| Rights | (7.056.872) | (4.788.319) | -- | -- | (648.304) | (12.493.495) |
| Research and development costs (**) |
(57.848.038) | (5.661.290) | -- | -- | (3.475.954) | (66.985.282) |
| Other intangible fixed assets |
(1.541.431) | (481.207) | (52.077) | -- | (58.624) | (2.133.339) |
| (66.446.341) | (10.930.816) | (52.077) | -- | (4.182.882) | (81.612.116) |
(*) Rights mostly consist of R&D projects of the Group that are activated by reaching the final product.
(**) Research and development costs consist of ongoing R&D projects of the Group.
The Group invested a total of TRY 107.481.186 R&D projects in the accounting period ending on 30 September 2024 (9-month period) (31 December 2023: TRY 70.119.184 TRY (12-month period))
Movement of intangible fixed assets for the period 01.01.-30.09.2023 is as follows:
| 1 January | Foreign currency conversion |
30 September | |||
|---|---|---|---|---|---|
| 2023 | Additions | Transfers | differences | 2023 | |
| Cost Rights (*) |
85.831.314 | 5.414.405 | -- | 2.038 | 91.247.757 |
| Research and development costs (**) |
111.408.527 | -- | -- | 3.805.687 | 115.214.214 |
| Other intangible fixed assets |
1.116.533 | 180.120 | -- | 461.900 | 1.758.553 |
| 198.356.374 | 5.594.525 | -- | 4.269.625 | 208.220.523 | |
| Foreign currency |
|||||
| 1 January 2023 |
Current | conversion | 30 September | ||
| Accumulated depreciation | year charge | Transfers | differences | 2023 | |
| Rights | (1.638.689) | (3.776.299) | -- | (145.223) | (5.560.211) |
| Research and development | (48.869.080) | (5.332.587) | (2.429.657) | (56.631.324) | |
| costs (**) Other intangible assets |
(1.113.013) | (250.348) | -- -- |
(172.280) | (1.535.641) |
| (51.620.782) | (9.359.234) | -- | (2.747.160) | (63.727.176) |
(*) Rights mostly consist of R&D projects of the Group that are activated by reaching the final product.
(**) Research and development costs consist of ongoing R&D projects of the Group.
Movement of rights of use assets for the period 01.01.-30.09.2024 is as follows:
| Buildings | Total | |
|---|---|---|
| 1 January 2024 | 25.069.443 | 25.069.443 |
| Additions/(Disposals) | (1.618.297) | (1.618.297) |
| 30 September 2024 | 23.451.146 | 23.451.146 |
| Buildings | Total | |
| Accumulated depreciation | ||
| 1 January 2024 | (4.196.906) | (4.196.906) |
| Period depreciation | (841.735) | (841.735) |
| 30 September 2024 | (5.038.641) | (5.038.641) |
| Net book value | ||
| 30 September 2024 | 18.412.505 | 18.412.505 |
| Buildings | Total | |
|---|---|---|
| Cost | ||
| 1 January 2023 | 28.382.041 | 28.382.041 |
| Additions/ (Disposals) | (219.578) | (219.578) |
| 30 September 2023 | 28.162.463 | 28.162.463 |
| Buildings | Total | |
| Accumulated depreciation | ||
| 1 January 2023 | (3.339.061) | (3.339.061) |
| Period depreciation | (1.605.139) | (1.605.139) |
| 30 September 2023 | (4.944.200) | (4.944.200) |
| Net book value | ||
| 30 September 2023 | 23.218.263 | 23.218.263 |
The details of lease of liabilities for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term lease liabilities | 2.221.368 | 2.554.453 |
| Long-term lease liabilities | 15.567.762 | 20.349.415 |
| 17.789.130 | 22.903.868 |
| 1 January 30 September 2024 |
1 January 30 September 2023 |
|
|---|---|---|
| Operating lease as of January 1 | 22.903.868 | 17.584.312 |
| Current operating lease liability payment | (1.663.754) | (2.012.423) |
| Current interest expense | (746.329) | (929.817) |
| Current foreign currency effects | (2.704.655) | 9.390.814 |
| Operating lease at the end of the periods | 17.789.130 | 24.032.886 |
The details of financial borrowings for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Short-term borrowings | 128.432 | 8.899.559 |
| Other financial borrowings (*) | 1.307.044 | 999.408 |
| Short-term borrowings | 1.435.476 | 9.898.966 |
| Short term portion of long term borrowings | 77.010 | 381.446 |
| Short-term portion of long-term borrowings | 77.010 | 381.446 |
| Long-term borrowings | -- | -- |
| Long-term borrowings | -- | -- |
| Total financial borrowings | 1.512.486 | 10.280.412 |
(*) Other financial borrowings consist of credit card borrowings.
The details of currency-based financial liabilities are as follows:
| Interest rate | 30 September 2024 | |
|---|---|---|
| Xxx TRY bank borrowings xxx |
%10,27 - %23,95 | 77.010 |
| Interest rate | 31 December 2023 | |
| Xxx TRY bank borrowings xxx |
%7,50 - %16,80 | 381.446 |
2024 unless otherwise indicated)
Under the Turkish Legislations, the Company and its subsidiaries which located in Turkey, is required to pay termination benefits to each employee, who has completed one year of service and whose employment is terminated without due cause, is called up for military service, dies, who retires after completing 25 years for man and 20 years for women of service and reaches the retirement age (58 for women and 60 for men). Due to the amendment of the legislation as of 8 September 1999, there are certain transitional obligations regarding the length of service due to retirement.
These payments are calculated based on the rate on the day of retirement or termination per year worked, with a maximum of TL 41.828,42 over the 30-day salary as of 30 September 2024 (31 December 2023: TL 35.058,58). The provision for severance pay is calculated on a current basis and is reflected in the Consolidated financial statements. The provision is calculated according to the severance pay ceiling announced by the Government.
Provision for termination benefits is made by calculating the present value of the possible liability to be paid in case of retirement of employees. To calculate the liabilities of the Group in accordance with TAS 19 (Employee Benefits), a calculation made with actuarial assumptions is required. Accordingly, the actuarial assumptions used in the calculation of total liabilities are given below. The basic assumption is that the maximum liability for each year of service will increase in line with inflation. Hence the discount rate applied represents the expected real interest rate after adjusting for the effects of future inflation. As a result, the liabilities in the accompanying Consolidated financial statements as of 30 September 2024 and 31 December 2023 are calculated by estimating the present value of the future probable obligation arising from the retirement of the employees.
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Discount rate | 27,05% | 27,05% |
| Estimated rate of salary increasing /inflation rate | 23,72% | 22,01% |
| The turnover ratio used to calculate the probability of | ||
| retirement | 95 % | 100% |
It is planned that the severance pay rights will be paid at the end of the concession agreement. Accordingly, the terms of the concession agreements are considered in calculating the present value of the liabilities to be paid in the future.
The details of long-term severance pay provisions for the periods are as follows:
| Long-term provisions | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Provision for employment termination benefits | 4.541.958 | 3.848.903 |
| 4.541.958 | 3.848.903 |
Movement of severance pay provisions for the periods are as follows:
| 30 September 2023 | |
|---|---|
| 3.848.903 | 3.114.605 |
| 5.250.407 | 4.935.378 |
| 962.226 | 2.399.522 |
| 1.424.120 | (869.191) |
| (551.279) | (1.110.652) |
| (6.392.419) | (4.620.759) |
| 4.541.958 | 3.848.903 |
| 30 September 2024 |
The details of short-term employee benefits provisions for the periods are as follows:
| Short-term provisions | 30 September 2024 | 31 December 2023 |
|---|---|---|
| Provision for vacation pay liability | 5.559.770 | 6.718.198 |
| 5.559.770 | 6.718.198 | |
| Movement of vacation pay provisions as follows: | ||
| Short-term provisions | 30 September 2024 | 30 September 2023 |
| Balance at January 1 | 6.718.197 | 3.749.550 |
| Current year provision expense (*) Inflation effect |
(1.897.085) 738.658 |
1.499.502 (364.760) |
(*) Leave provision expenses for the relevant periods are included in personnel expenses.
As of 30 September 2024, the Group has no guarantees received (31 December 2023: None).
Collaterals/ pledges/ mortgages/bill of guarantees ("CPMB") position of the Group as of 30 September 2024 and 31 December 2023 are as follows:
| CPMB's given by the Group | 30 September 2024 | 31 December 2023 |
|---|---|---|
| A. CPMB's given for Group's own legal personality B. CPMB's given on behalf of fully consolidated companies |
20.018.357 | 13.384.151 |
| C. CPMB's given on behalf of third parties for ordinary course of business |
-- | -- |
| D. Total amount of other CPMB's | -- | -- |
| i) Total amount of CPMB's given on behalf of the majority shareholder |
-- | -- |
| ii) Total amount of CPMB's given on behalf of other Group companies which are not in scope of B and C |
-- | -- |
| iii) Total amount of CPMB's given on behalf of third parties which are not in scope of C |
-- | -- |
As of 30 September 2023, the ratio of other CPMs given by the Group to the Group's equity is 0% (31 December 2023: 0%).
20.018.357 13.384.151
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
The details of employee benefits obligations for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Due to personnel | 13.311.633 | 832.931 |
| Social security premiums payable | 5.510.487 | 7.721.698 |
| xxx 18.822.120 |
8.554.629 | |
The details of current period tax assets for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Deferred tax assets/liabilities | (72.385) | (22.733.081) |
| Deferred tax income/(expense) | (22.340.452) | (128.312.269) |
| (22.412.837) | (151.045.350) |
As of 30 September 2023, the corporate tax rate is 25% in Turkey (31 December: 25%,). Corporation tax rate is applied to net income of the companies after adjusting for certain disallowable expenses, exempt income and allowances. With the provision added to Article 35 of the Law No. 7256 and Article 32 If more than 20 percent of its shares are offered to the public for the first time in the Borsa Istanbul market, the Group pays corporate tax with a discount of 2 points for 5 years. As of April 22, 2021, the company's corporate tax rate has been calculated 18%. Accordingly, in the Group's consolidated financial statements as of December 31, 2023, when calculating deferred tax assets and liabilities for its subsidiaries residing in Turkey, the tax rate is 23% for the parts of the temporary differences that will occur. Corporate tax losses can be carried forward for a maximum period of 5 years following the year in which the losses were incurred. The tax authorities can inspect tax returns and the related accounting records for a retrospective maximum period of five years.
10% withholding applies to dividends distributed by resident real persons, those who are not liable to income and corporation tax, non-resident real persons, non-resident corporations (excluding those that acquire dividend through a permanent establishment or permanent representative in Turkey) and non-resident corporations exempted from income and corporation tax.
Dividend distribution by resident corporations to resident corporations is not subject to a withholding tax. Furthermore, in the event the profit is not distributed or included in capital, no withholding tax shall be applicable.
To benefit from the exemption, the said income must be kept in a passive fund account and not withdrawn from the business for a period of 5 years. The sales price must be collected until the end of the second calendar year following the year of sale.
There is no practice in Turkey to reach an agreement with the tax administration regarding the taxes to be paid. Corporate tax returns are submitted within four months following the end of the period. The tax inspection authorities may examine the tax returns and the accounting records underlying them for five years following the accounting period and make a reassessment because of their findings.
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
There is a withholding tax liability on dividend distributions, and this withholding liability is accrued in the period when the dividend payment is made. Dividend payments are subject to 15% withholding tax, excluding those made to non-resident companies that generate income through a workplace or their permanent representative in Turkey, and to companies residing in Turkey. In the application of withholding tax rates for profit distributions to non-resident companies and natural persons, the withholding tax rates in the relevant Double Taxation Agreements are also considered. The addition of retained earnings to the capital is not considered as profit distribution, so it is not subject to withholding tax.
In Turkey, transfer pricing regulations are specified in Article 13 of the Corporate Tax Law, titled "Hidden income distribution through transfer pricing". The notified dated 18 November 2007 on hidden income distribution via transfer pricing regulates the details of the implementation.
If the taxpayer buys or sells goods or services with related parties at the price or price, they have determined in peer assessment, the profit is deemed to have been distributed through transfer pricing, in whole or in part. Hidden income distribution through is considered as a non-deductible expense for corporate tax.
Deferred tax liability or assets are determined by calculating the tax effects of temporary differences between the values of assets and liabilities shown in the Consolidated financial statements and the amounts considered in the legal tax base calculation. Deferred tax liability or assets are reflected in the accompanying Consolidated financial statements by considering the tax rates that are expected to be valid in the future periods when the temporary differences will disappear.
In reflecting the deferred tax asset to the consolidated financial statements, the developments in the sector in which it operates, taxable profit estimates in the future, it considers factors such as the general economic and political situation in Turkey and/or the international general economic and political situation that may affect the Group.
The Group considers factors such as developments in the sector in which it operates, taxable profit estimates in the future, general economic and political situation in Turkey and/or international general economic and political situation that may affect the Group while reflecting the deferred tax asset to the consolidated financial statements. The Group estimates that it will generate sufficient taxable profits in the future.
The details of deferred tax assets and liabilities for the periods are as follows:
| 30 September 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Cumulative temporary differences |
Deferred tax |
Cumulative temporary differences |
Deferred tax | ||
| Deferred tax assets | |||||
| Provision for employment | |||||
| termination benefits | 7.702.635 | 1.925.659 | 8.180.337 | 1.881.477 | |
| Other | 83.316.130 | 20.829.033 | (145.395) | (504.403) | |
| Financial lease liabilities | (573.505) | (143.376) | (119.357) | (27.452) | |
| Trade receivables provisions | 261.177 | 65.294 | 383.867 | 88.289 | |
| Financial investments | (48.795.753) | (12.198.938) | (81.173.374) | (18.669.876) | |
| Trade payables provisions | -- | -- | (22.211) | (5.109) | |
| Inventories | (55.402.562) | (13.850.641) | (36.984.240) | (8.506.375) | |
| Property, plant and equipment | |||||
| and intangible assets | (365.500.035) | (91.375.009) | (321.432.651) | (73.929.510) | |
| Deferred tax assets | (378.991.913) | (94.747.978) | (431.313.024) | (99.672.959) | |
| xxx Net deferred tax |
(94.747.978) | (99.672.959) |
The reconciliation of tax expense for the period to profit for the period is as follows:
The paid capital structure of the Group for the periods are as follows:
| 30 September | 31 December | |||
|---|---|---|---|---|
| 2024 | Share | 2023 | Share | |
| Shareholders | TRY | % | TRY | % |
| Alper Akyüz | 93.562.286 | 42,52 | 93.562.286 | 42,52 |
| Elif Akyüz | 45.603.000 | 20,72 | 45.603.000 | 20,72 |
| Actual Shares Outstanding (*) | 71.405.592 | 32,45 | 71.405.592 | 32,45 |
| Other | 9.429.122 | 4,28 | 9.429.122 | 4,28 |
| Total paid-in capital | 220.000.000 | 100 | 220.000.000 | 100 |
(*) The company is registered with the Capital Markets Board ("CMB") and its shares are traded on Borsa İstanbul A.Ş. ("BIST") as of 21.10.2021. As of 30 September 2024, the Company has 32,45% of shares registered in BIST.
As of 30 September 2024, the capital of the Group consists of 220.000.000 shares. (31 December 2023: TL 220.000.000). The nominal value of the shares is TL 1 per share. (31 December 2023: per share TL 1). Company shares are represented by two separate share groups as A and B group, and A group shares provide voting rights to the shareholder. The Company's shares consist of 40.000.000 Group A shares and 180.000.000 Group B shares.
| 30 September 2024 | 30 September 2023 | |
|---|---|---|
| Balance at January 1 | 1.581.418 | (4.708.884) |
| Additions | (1.424.120) | 2.903.726 |
| Deferred tax | 327.548 | (667.857) |
| 484.846 | (2.473.015) |
| Restricted Reserves | ||
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Balance at January 1 Additions |
213.910.472 | 163.374.811 |
| 213.910.472 | 163.374.811 |
As of 30 September 2024, there is no non-controlling interests (31 December 2023: there is no non-controlling interests).
Earnings per share for the periods are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Net profit for the period of the equity holders of the parent | (187.884.820) | (185.680.858) |
| Weighted average number of ordinary shares with nominal value (kurus1 per value) |
220.000.000 | 220.000.000 |
| Earnings per share (TRY) | (0,8540) | (0,8440) |
Revenue for the periods are as follows:
| 1 January | 1 January | 1 July | 1 July | |
|---|---|---|---|---|
| 30 September | 30 September | 30 September | 30 September | |
| 2024 | 2023 | 2024 | 2023 | |
| Domestic Sales | 149.868.497 | 97.330.262 | 60.497.710 | 29.195.975 |
| Export Sales | 226.692.372 | 143.073.170 | 78.160.248 | 72.514.895 |
| Other Revenue | 4.377.472 | 6.147.084 | 361.418 | 2.079.295 |
| Gross Sales | 380.938.341 | 246.550.515 | 139.019.376 | 103.790.165 |
| Sales Returns (-) | (1.034.634) | (541.026) | (1.630.002) | (870.454) |
| Sales Discount (-) | (137.614) | (88.865) | (33.236) | (24.362) |
| Net Sales | 379.766.093 | 245.920.624 | 137.356.137 | 102.895.349 |
| Cost of goods sold (-) | (85.458.761) | (37.927.989) | (32.454.028) | (23.691.869) |
| Cost of merchandise sold (-) | (44.168.343) | (38.973.660) | (17.365.469) | (173.200) |
| Cost of services sold (-) | (803.986) | (1.173.220) | (316.100) | (739.062) |
| Gross Profit | 249.335.003 | 167.845.755 | 87.220.541 | 78.291.217 |
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
The details of selling and marketing expenses for the periods are as follows:
| 1 January | 1 January 30 |
1 July 30 |
1 July 30 |
|
|---|---|---|---|---|
| 30 September 2024 |
September 2023 |
September 2024 |
September 2023 |
|
| Personnel expenses | (44.082.427) | (36.715.944) | (17.863.354) | (11.216.672) |
| Depreciation and amortization expenses | (12.564.688) | (3.165.048) | (5.091.541) | (2.340.716) |
| Benefits and services provided externally | (11.429.257) | (1.935.002) | (4.631.434) | (385.490) |
| Transportation expenses | (5.897.638) | (81.063) | (2.389.877) | (1.735.749) |
| Tax, duty and fee expenses | (5.240.397) | (5.145.934) | (2.123.546) | (227.127) |
| Export expenses | (4.138.183) | (2.635.795) | (1.676.900) | (605.844) |
| Transportation expenses | (3.862.043) | (1.354.892) | (1.565.001) | (463.787) |
| Travel expenses | (2.827.228) | (510.289) | (1.145.667) | (1.287.022) |
| Fair, exhibition expenses | (2.414.111) | (2.060.412) | (978.261) | (708.472) |
| Representation and hospitality expenses | (1.112.040) | (1.640.016) | (450.628) | (36.865) |
| Commission expenses | -- | (6.993.367) | -- | (964.437) |
| Other | (11.838.853) | (8.104.756) | (4.797.413) | (3.789.770) |
The details of general administrative expenses for the periods are as follows:
| 1 January 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Personnel expenses | (54.100.096) | (46.520.691) | (18.244.243) | (14.354.392) |
| Depreciation and amortization expenses | (38.274.767) | (13.242.324) | (12.907.447) | (1.001.552) |
| Externally provided benefits and services | (24.022.273) | (27.338.203) | (8.101.061) | (8.435.456) |
| Insurance expenses | (3.020.626) | (1.777.961) | -- | (506.666) |
| Tax, duty and duty expenses | (2.930.585) | (3.556.869) | (988.285) | (1.097.506) |
| Other | (14.705.372) | (8.095.600) | (5.977.761) | (933.630) |
| (137.053.719) | (100.531.648) | (46.218.797) | (26.329.202) |
The details of research and development expenses for the periods are as follows:
| 1 January 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Depreciation and amortization expenses | (2.772.757) | (8.075.618) | (487.365) | (5.440.400) |
| (2.772.757) | (8.075.618) | (487.365) | (5.440.400) |
The Group invested a total of TRY 107.481.186 for R&D projects in the accounting period ending on 30 September 2024 (9-month period) (31 December 2023: TRY 70.119.184 TRY (12-month period)).
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
The details of other operating income and expenses for the periods are as follows:
| 1 January 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Other operating income | ||||
| Exchange rate difference income on | 47.232.529 | 200.992.722 | 18.277.026 | 37.371.163 |
| trade receivables and payables | ||||
| Other | 7.265.367 | 20.738.392 | 1.134.555 | 20.347.081 |
| 54.497.896 | 221.731.114 | 19.411.581 | 57.718.244 | |
| 1 January | 1 January | 1 July | 1 July | |
| 30 September | 30 September | 30 September | 30 September | |
| 2024 | 2023 | 2024 | 2023 | |
| Other operating income loss | ||||
| Foreign exchange loss on trade receivables | ||||
| and payables | (5.553.117) | (27.790.109) | (1.712.413) | (3.965.896) |
| Provisions for doubtful receivables (Note 6) Other (*) |
(316.130) (7.337.844) |
(138.221) (60.056.463) |
(12.460) (5.156.326) |
(13.473) (15.353.010) |
| 1 January 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Other operating income | ||||
| Income from financial investments | 11.839.992 | 20.850.540 | 860.673 | 1.727.798 |
| 11.839.992 | 20.850.540 | 860.673 | 1.727.798 | |
| 1 January 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2024 |
1 July 30 September 2023 |
|
| Other operating expenses | ||||
| Expenses from financial investments | (3.167.147) | -- | (129.306) | -- |
| (3.167.147) | -- | (129.306) | -- |
The details of finance income and expenses for the periods are as follows:
| 1 January 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2024 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Finance income | ||||
| Foreign exchange gains | 22.849.802 | 110.349.129 | 6.477.725 | 22.939.805 |
| Interest income | 3.185.274 | 35.264.694 | 1.367.392 | 7.330.962 |
| 26.035.076 | 145.613.823 | 7.845.117 | 30.270.767 |
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
| 1 January 30 September 2024 |
1 January 30 September |
1 July 30 September |
1 July 30 September 2023 |
|---|---|---|---|
| (4.244.538) | |||
| (597.334) | |||
| (746.329) | (746.329) | (73.542) | (32.861) |
| (2.370.852) | (20.141.685) | (233.620) | (4.874.733) |
| (1.366.288) (258.235) |
2023 (3.987.278) (15.408.078) |
2024 (134.632) (25.446) |
While trying to ensure the continuity of its activities in capital management, the Group also aims to increase its profits by using the debt and equity balance in the most efficient way. The Group's capital structure consists of equity items including issued capital, reserves and retained earnings.
The gearing ratios for the periods are as follows:
| 1 January 30 September 2024 |
1 January 31 December 2023 |
|
|---|---|---|
| Total financial liabilities | 19.301.616 | 33.184.280 |
| Less: Cash and cash equivalents | (269.464.520) | (409.934.174) |
| Net debt | (250.162.904) | (376.749.894) |
| Total equity | 1.490.568.574 | 1.648.327.073 |
| Debt/equity ratio | (0,1678) | (0,2286) |
When calculating the Group's capital risk management, debts and equity items including cash and cash equivalents, paid-in capital, defined benefit plans remeasurement gains / losses, restricted reserves from profit and retained earnings / (losses) are considered, respectively.
The risks associated with each capital class, together with the group capital cost, are evaluated by the senior management. Based on senior management assessments, it is aimed to keep the capital structure in balance through the acquisition of new debt or repayment of existing debt, as well as through dividend payments.
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
The Group's activities expose it to a variety of financial risks, including the effects of changes in debt and equity market prices, foreign currency exchange rates and interest rates. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the financial performance of the Group.
Credit risk is the risk that a customer or a counterparty will not fulfil its contractual obligations and arises mainly from customer receivables.
| Receivables | ||||||
|---|---|---|---|---|---|---|
| Trade receivables | Other receivables | |||||
| Related | Related | Third | Bank | Financial | ||
| 30 September 2024 | Party | Third Party | Party | Party | deposits | Invements |
| Maximum credit risk exposed as | ||||||
| of balance sheet date, (A+B+C+D) | -- | 93.277.146 | -- | 8.879.948 | 269.464.520 | 15.762.159 |
| - Secured portion of the maximum | ||||||
| credit risk by guarantees | -- | -- | -- | -- | -- | -- |
| A. Net book value of financial assets | ||||||
| that are neither past due nor im | ||||||
| paired | -- | 93.277.146 | -- | 8.879.948 | 269.464.520 | 15.762.159 |
| B. Net book value of the impaired | ||||||
| assets | -- | -- | -- | -- | -- | -- |
| - Past due (gross carrying amount) | -- | 1.338.289 | -- | -- | -- | -- |
| - Impairment (-) | -- | (1.338.289) | -- | -- | -- | -- |
| - Secured portion of the net value | ||||||
| by guarantees, etc. | -- | -- | -- | -- | -- | -- |
| Trade receivables | Other receivables | |||||
|---|---|---|---|---|---|---|
| 31 December 2023 | Related | Related | Third | Bank | Financial | |
| Party | Third Party | Party | Party | deposits | Investments | |
| Maximum credit risk ex | ||||||
| posed as of balance sheet | ||||||
| date, (A+B+C+D) | -- | 105.868.167 | -- | 25.222.062 | 409.822.089 | 79.302.691 |
| - Secured portion of the maximum credit risk by |
||||||
| guarantees | -- | -- | ||||
| A. Net book value of fi | ||||||
| nancial assets that are nei | ||||||
| ther past due nor impaired | -- | 105.868.167 | -- | 25.222.062 | 409.822.089 | 79.302.691 |
| B. Net book value of the | ||||||
| impaired assets | -- | -- | -- | -- | -- | -- |
| - Past due (gross carrying | ||||||
| amount) | -- | 1.237.099 | -- | -- | -- | -- |
| - Impairment (-) | -- | (1.237.099) | -- | -- | -- | -- |
| - Secured portion of the | ||||||
| net value by guarantees, | ||||||
| etc. | -- | -- | -- | -- | -- | -- |
The Group monitors the collectability of its trade receivables periodically and allocates provision for doubtful receivables for possible losses that may arise from doubtful receivables based on the collection rates of previous years. Following the provision for doubtful receivables, if all or part of the doubtful receivable amount is collected, the collected amount is deducted from the doubtful receivable provision and associated with profit or loss
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
.
The Group manages liquidity risk by maintaining adequate funds and available borrowing by regularly monitoring forecast and actual cash flows and matching the maturities of financial assets and liabilities. Prudent liquidity risk management expresses the ability to keep sufficient cash, the availability of sufficient credit transactions, the availability of fund resources and the ability to close market positions.
The funding risk of current and prospective debt requirements is managed by maintaining the availability of sufficient number of high-quality lenders.
The table below shows the maturity distribution of the Group's non-derivative financial liabilities:
| 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|
| Contractual maturity | Carrying Value |
Contractual cash flows |
Up to 3 months |
3 - 12 month |
1 - 5years | More than 5 years |
|
| Non derivative financial liabilities |
54.216.713 | 54.243.925 | 21.977.569 | 1.124.015 | 6.299.657 | 5.277.692 | |
| Loans and borrowings | 10.253.200 | 10.280.412 | 638.613 | 286.085 | 294.077 | -- | |
| Trade payables | 22.903.868 | 22.903.868 | 279.310 | 837.930 | 6.005.580 | 5.277.692 | |
| Other payables | 14.735.118 | 14.735.118 | 14.735.118 | -- | -- | -- | |
| Other debts | 6.324.527 | 6.324.527 | 6.324.527 | -- | -- | -- |
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024 unless otherwise indicated)
For the periods, the Group's foreign currency position consists of foreign currency denominated assets and liabilities stated in the table below:
| 30 September 2024 | 31 December 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| TRY | TRY | |||||||
| Equivalent | USD | EUR | CHF | Equivalent | USD | EUR | ||
| 1 | Trade payables | 4.256.594 | 58.947 | 58.821 | -- | 41.772.640 | 167.573 | 1.130.954 |
| Monetary financial | ||||||||
| 2a. | assets | 149.010.333 | 1.891.883 | 2.212.583 | -- | 367.268.968 | 4.725.474 | 7.004.367 |
| Non-Monetary financial | ||||||||
| 2b. | assets | -- | -- | -- | -- | -- | -- | -- |
| 3 | Other | 1.108.161 | 17.199 | 13.657 | -- | 2.323.741 | 10.518 | 61.831 |
| 4 | Current assets (1+2+3) | 154.375.088 | 1.968.029 | 2.285.061 | -- | 411.365.348 | 4.903.565 | 8.197.153 |
| 5 | Trade receivables | -- | -- | -- | -- | -- | -- | -- |
| Monetary financial | ||||||||
| 6a. | assets | -- | -- | -- | -- | -- | -- | -- |
| Non-Monetary financial | ||||||||
| 6b. | assets | -- | -- | -- | -- | -- | -- | -- |
| 7 | Other | -- | -- | -- | -- | -- | -- | -- |
| Non- Current assets | ||||||||
| 8 | (5+6+7) | -- | -- | -- | -- | -- | -- | -- |
| 9 | Total assets (4+8) | 154.375.088 | 1.968.029 | 2.285.061 | -- | 411.365.348 | 4.903.565 | 8.197.153 |
| 10 | Trade payables | 11.268.630 | 177.463 | 135.872 | 657 | 8.845.971 | 159.601 | 127.330 |
| 11 | Financial borrowings | -- | -- | -- | -- | -- | -- | -- |
| Other Monetary | ||||||||
| 12a. | financial liabilities | -- | -- | -- | -- | -- | -- | -- |
| Other Non-Monetary | ||||||||
| 12b. | financial liabilities | -- | -- | -- | -- | -- | -- | -- |
| Current liabilities | ||||||||
| 13 | (10+11+12) | 11.268.630 | 177.463 | 135.872 | 657 | 8.845.971 | 159.601 | 127.330 |
| 14 | Trade payables | -- | -- | -- | -- | -- | -- | -- |
| 15 | Financial borrowings | -- | -- | -- | -- | -- | -- | -- |
| Other Monetary | ||||||||
| 16a. | financial liabilities | -- | -- | -- | -- | -- | -- | -- |
| Other Non-Monetary | ||||||||
| 16b. | financial liabilities | -- | -- | -- | -- | -- | -- | -- |
| Non-Current liabilities | ||||||||
| 17 | (14+15+16) | -- | -- | -- | -- | -- | -- | -- |
| 18 | Total liabilities (13+17) | 11.268.630 | 177.463 | 135.872 | 657 | 8.845.971 | 159.601 | 127.330 |
| . Net asset / liability | ||||||||
| position of | ||||||||
| off-balance sheet | ||||||||
| 19 | derivatives (19a-19b) | -- | -- | -- | -- | -- | -- | -- |
| Total amount of assets | ||||||||
| 19a. | hedged | -- | -- | -- | -- | -- | -- | -- |
| Total amount of | ||||||||
| 19b. | liabilities hedged | -- | -- | -- | -- | -- | -- | -- |
| Net foreign currency | ||||||||
| asset /(liability)position | ||||||||
| 20 | (9-18+19) | 143.106.458 | 1.790.566 | 2.149.189 | 402.519.377 | 4.743.964 | 8.069.823 | 143.106.458 |
| Net foreign currency asset / (liability) |
||||||||
| position of monetary | ||||||||
| items (1+2a+5+6a-10- | ||||||||
| 21 | 11-12a-14-15-16a) | 141.998.297 | 1.773.367 | 2.135.532 | 400.195.637 | 4.733.446 | 8.007.991 | 141.998.297 |
2024 unless otherwise indicated)
The Group's currency risk consists of the value changes of TL against Euro and USD. The basis of the sensitivity analysis to measure the currency risk is to make the total currency statement made throughout the organization. Total foreign currency position includes all foreign currency based short-term and long-term purchase agreements and all assets and liabilities.
The exchange rate sensitivity analysis for the periods are as follows:
| 2024 | 2023 | |||
|---|---|---|---|---|
| Profit / (Loss) | Profit / (Loss) | |||
| Appreciation of | Depreciation of | Appreciation of | Depreciation of | |
| foreign currency | foreign currency | foreign currency | foreign currency | |
| In case of %10 appreciation of USD against TRY | ||||
| 1- USD net asset/liability | 13.965.399 | (13.965.399) | 6.109.604 | (6.109.604) |
| 2- Amount hedged for USD risk (-) | -- | -- | -- | -- |
| 3- USD net effect (1+2) | 13.965.399 | (13.965.399) | 6.109.604 | (6.109.604) |
| In case of %10 appreciation of EUR against TRY | ||||
| 4- EUR net asset/liability | 26.286.548 | (26.286.548) | 8.203.759 | (8.203.759) |
| 5- Amount hedged for EUR risk (-) | -- | -- | -- | -- |
| 6- EUR net effect (4+5) | 26.286.548 | (26.286.548) | 8.203.759 | (8.203.759) |
| In case of %10 appreciation of CHF against TRY | ||||
| 7- CHF net asset/liability | -- | -- | (2.252) | 2.252 |
| 8- Amount hedged for CHF risk (-) | -- | -- | -- | -- |
| 9- CHF net effect (7+8) | -- | -- | (2.252) | 2.252 |
| Total net effect (3+6+9) | 40.251.946 | (40.251.946) | 14.311.111 | (14.311.111) |
For the periods, the book values and fair values of assets and liabilities are shown in the table below:
| 30 September 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Financial assets | Note | Book value | Fair value | Book value | Fair value |
| Cash and cash equivalents | 5 | 269.464.520 | 269.464.520 | 409.934.174 | 409.934.174 |
| Financial investments | 6 | 15.762.159 | 15.762.159 | 79.302.692 | 79.302.692 |
| Trade receivables | 7 | 93.277.146 | 93.277.146 | 105.868.167 | 105.868.167 |
| Other receivables | 9 | 8.879.948 | 8.879.948 | 25.222.062 | 25.222.062 |
| Total financial assets | 387.383.773 | 387.383.773 | 620.327.095 | 620.327.095 | |
| Financial liabilities | |||||
| Financial borrowings | 17 | 1.512.486 | 1.512.486 | 10.253.200 | 10.280.412 |
| Trade payables | 7 | 25.943.070 | 25.943.070 | 14.735.118 | 14.735.118 |
| Other payables | 9 | 19.029.933 | 19.029.933 | 20.311.000 | 20.311.000 |
| Payables related to employment benefits | 20 | 18.822.120 | 18.822.120 | 8.554.629 | 8.554.629 |
| Total financial liabilities | 65.307.609 | 65.307.609 | 53.853.947 | 53.881.159 | |
| Net | 322.076.164 | 322.076.164 | 566.473.148 | 566.445.936 |
The effects of the adjustments made by the Group within the scope of IAS 29 on an account group basis are as follows:
Monetary Loss/Gain
| 1 January 30 September 2024 |
1 January 30 September 2023 |
|
|---|---|---|
| Operating Profit Before Finance Expenses | 54.065.312 | 143.492.833 |
| Finance Expenses (-) | (2.370.852) | (20.141.685) |
| Finance Income (+) | 26.035.076 | 145.613.823 |
| Monetary Loss | (243.201.519) | (298.752.728) |
| Stocks | 41.778.351 | 135.962.460 |
| Financial Investments | 91.117.242 | 138.372.171 |
| Fixed Assets | 210.127.421 | 107.214.715 |
| Equity | (445.877.467) | (457.143.429) |
| Index effect on statement of profit and loss | (50.706.989) | (52.999.089) |
| Current period adjustment factor indexation effect | (89.640.077) | (170.159.556) |
| Profit Before Tax | (165.471.983) | (29.787.757) |
| Tax | (22.412.837) | (151.045.350) |
| Profit/(Loss) for the Period | (187.884.820) | (180.833.107) |
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