Quarterly Report • Dec 2, 2024
Quarterly Report
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Summary of Consolidated Financial Informations for the Nine-Month Interim Period Ended 30 September 2024
and Its Subsidiaries
Condensed Consolidated Interim Statement of Financial Position Condensed Consolidated Interim Statement of Profit or Loss Condensed Consolidated Interim Statement of Other Comprehensive Income Condensed Consolidated Interim Statement of Changes in Equity Condensed Consolidated Interim Statement of Cash Flows Notes to the Condensed Consolidated Interim Notes to the Financial Statements
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
| Note | Unaudited | Audited | |
|---|---|---|---|
| ASSETS | 30 September 2024 | 31 December 2023 | |
| Current Assets | |||
| Cash and cash equivalents | 4 | 140.849.252 | 402.997.856 |
| Financial investments | 5 | 902.712.351 | 693.510.603 |
| Trade receivables | |||
| -Trade receivables from related parties | 3 | 917.327.475 | 763.046.746 |
| -Trade receivables from non-related parties | 7 | 1.263.018.061 | 1.453.451.003 |
| Other receivables | |||
| - Other receivables from related parties | 3 | -- | 259.774 |
| - Other receivables from non-related parties | 8 | 12.522.723 | 5.824.516 |
| Inventories | 9 | 3.478.907.588 | 2.886.797.193 |
| Prepaid expenses | 10 | 249.060.990 | 264.039.152 |
| Assets related to current period tax | 65.279.150 | -- | |
| Other current assets | 17 | 358.336.384 | 287.690.790 |
| Total Current Assets | 7.388.013.974 | 6.757.617.633 | |
| Non-Current Assets | |||
| Other receivables | |||
| -Other receivables from non-related parties | 8 | 170.082 | 231.074 |
| Property, plant and equipment | 12 | 4.370.374.875 | 4.514.800.581 |
| Intangible assets | 13 | 202.594.219 | 118.480.605 |
| Investment property | 11 | 101.591.116 | 101.591.116 |
| Right of use assets | 14 | 50.091.737 | 60.066.048 |
| Total Non-Current Assets | 4.724.822.029 | 4.795.169.424 | |
| Total Assets | 12.112.836.003 | 11.552.787.057 |
Condensed Consolidated Interim Statement of Financial Position
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
| Note | Unaudited | Audited | |
|---|---|---|---|
| LIABILITIES | 30 September 2024 | 31 December 2023 | |
| Short Term Liabilities | |||
| Short term borrowings | 6 | 3.110.813.722 | 1.783.819.897 |
| Short term portion of long-term borrowings | 6 | 59.419.310 | 41.623.773 |
| Trade payables | |||
| - Trade payables to related parties | 3 | 38.676.930 | 29.137.441 |
| - Trade payables to non-related parties | 7 | 1.290.855.791 | 1.624.872.328 |
| Payables related to employee benefis | 16 | 47.189.298 | 53.608.643 |
| Other payables | |||
| - Other payables to non-related parties | 8 | 13.730.815 | 30.004.162 |
| Deferred income | 10 | 170.879.956 | 230.737.139 |
| Current period tax liability | -- | 112.279.531 | |
| Short term provisions | |||
| - Short term provisions for employee benefits | 16 | 16.427.451 | 16.300.698 |
| - Other short term provisions | 15 | 77.228.352 | 70.562.387 |
| Liabilities from leasing transactions | 14 | 1.923.333 | 2.393.149 |
| Total Short Term Liabilities | 4.827.144.958 | 3.995.339.148 | |
| Long term borrowings | 6 | 66.662.845 | 97.394.527 |
| Long term provisions | |||
| - Long term provisions for employee benefits | 16 | 37.762.917 | 30.394.792 |
| Liabilities from leasing transactions | 14 | 11.458.836 | 17.469.916 |
| Deferred tax liability | 23 | 827.661.008 | 816.823.555 |
| Total Long Term Liabilities | 943.545.606 | 962.082.790 | |
| Total Liabilities | 5.770.690.564 | 4.957.421.938 | |
| Equity Attributable to the Owners of the Company | |||
| Paid-in share capital | 18 | 115.000.000 | 115.000.000 |
| Capital adjustment differences | 1.463.042.979 | 1.463.042.979 | |
| Share premium | 157.829.305 | 157.829.305 | |
| Accumulated other comprehensive income | |||
| - Items will not to be reclassified in profit or loss | (27.984.238) | (20.903.439) | |
| Restricted reserves | 168.713.388 | 166.545.775 | |
| Retained earnings | 4.711.682.886 | 3.804.307.235 | |
| Net profit for the period | (246.138.881) | 909.543.264 | |
| Total Equity | 6.342.145.439 | 6.595.365.119 | |
| Total Equity and Liabilities | 12.112.836.003 | 11.552.787.057 |
Condensed Consolidated Interim Statement of Profit or Loss
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
| Note | Unaudited | Unaudited | Unaudited | Unaudited | |
|---|---|---|---|---|---|
| 1 January | 1 July | 1 January | 1 July | ||
| 30 September | 30 September | 30 September | 30 September | ||
| 2024 | 2024 | 2023 | 2023 | ||
| Revenue Cost of sales (-) |
19 19 |
4.372.644.721 (3.538.946.109) |
1.384.466.840 (1.347.177.486) |
8.015.751.444 (5.778.952.195) |
3.247.823.787 (2.214.341.333) |
| Gross profit | 833.698.612 | 37.289.354 | 2.236.799.249 | 1.033.482.454 | |
| General administrative expenses (-) | 20 | (176.503.288) | (81.108.932) | (110.551.740) | (45.447.117) |
| Marketing expenses (-) | 20 | (373.724.500) | (112.018.251) | (634.544.004) | (221.614.454) |
| Research and development expenses (-) | 20 | (55.914.246) | (9.533.590) | (78.739.072) | (26.536.084) |
| Other operating income | 77.046.898 | 31.496.153 | 147.330.418 | 67.004.900 | |
| Other operating expenses (-) | (90.254.889) | (26.910.894) | (203.486.083) | (38.738.505) | |
| Operating profit | 214.348.587 | (160.786.160) | 1.356.808.768 | 768.151.194 | |
| Incomes / (Expense) from investment | 22 | 360.768.910 | 55.785.719 | 274.425.541 | 350.345.883 |
| activities | |||||
| Operating profit before financial expenses, net |
575.117.497 | (105.000.441) | 1.631.234.309 | 1.118.497.077 | |
| Financial expenses (-) | 21 | (1.016.853.178) | (548.711.265) | (140.419.416) | (81.617.181) |
| Net monetary position gain /(loss) | 238.265.482 | 2.524.487 | 263.666.111 | 32.549.380 | |
| Profit before tax | (203.470.199) | (651.187.219) | 1.754.481.004 | 1.069.429.276 | |
| Tax expense | 23 | ||||
| - Current tax income/(expense) for the period | (29.470.962) | 72.028.964 | (350.217.634) | (176.352.520) | |
| - Deferred tax income/(expense) | (13.197.720) | 50.418.531 | (259.849.950) | (198.758.965) | |
| Profit / (loss) for the period | (246.138.881) | (528.739.724) | 1.144.413.420 | 694.317.791 | |
| Distribution of net profit for the period | |||||
| Equity holders of the Company | (246.138.881) | (528.739.724) | 1.144.413.420 | 694.317.791 | |
| Non-controlling interest | -- | -- | -- | -- | |
| Number of shares | 24 | 115.000.000 | 115.000.000 | 115.000.000 | 115.000.000 |
| Earnings per share | 24 | (2) | (5) | 10 | 6 |
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
| Unaudited | Unaudited | Unaudited | Unaudited | |
|---|---|---|---|---|
| Note | 1 January 30 September 2024 |
1 July 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2023 |
| (246.138.881) | (528.739.724) | 1.144.413.420 | 694.317.791 | |
| 16 | (9.441.066) | (9.340.320) | (17.362.076) | (369.308) |
| 23 | 2.360.267 | 2.335.080 | 3.472.415 | 73.862 |
| (7.080.799) | (7.005.240) | (13.889.661) | (295.446) | |
| (253.219.680) | (535.744.964) | 1.130.523.759 | 694.022.345 | |
| (253.219.680) | (535.744.964) | 1.130.523.759 | 694.022.345 -- |
|
| -- | -- | -- |
Condensed Consolidated Interim Statement of Change in Equity
For the Nine-Month Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated.)
| Accumulated Other Comprehensive Income and Expenses will not be Reclassified to Profit or Loss |
||||||||
|---|---|---|---|---|---|---|---|---|
| Paid-In Share Capital |
Differences in Capital Adjustment |
Share Premiums |
Accumulated Remeasurement Gains/Losses on Defined Benefit Plans |
Restricted Reserves Appropriated from Profit |
Retained Earnings |
Net Profit/Loss for the Period |
Total Equity | |
| Balance at 1 January 2023 | 115.000.000 | 1.463.042.979 | 157.829.305 | (11.334.487) | 166.545.775 | 3.278.246.877 | 526.060.358 | 5.695.390.807 |
| Transfers | -- | -- | -- | -- | -- | 526.060.358 | (526.060.358) | -- |
| Profit for the period | -- | -- | -- | -- | -- | -- | 1.144.413.420 | 1.144.413.420 |
| Other comprehensive income | -- | -- | -- | (13.889.662) | -- | -- | -- | (13.889.662) |
| Actuarial differences | -- | -- | -- | (13.889.662) | -- | -- | -- | (13.889.662) |
| Balance at 30 September 2023 |
115.000.000 | 1.463.042.979 | 157.829.305 | (25.224.149) | 166.545.775 | 3.804.307.235 | 1.144.413.420 | 6.825.914.565 |
| Balance at 1 January 2024 | 115.000.000 | 1.463.042.979 | 157.829.305 | (20.903.439) | 166.545.775 | 3.804.307.235 | 909.543.264 | 6.595.365.119 |
| Transfers | -- | -- | -- | -- | 2.167.613 | 907.375.651 | (909.543.264) | -- |
| Profit for the period | -- | -- | -- | -- | -- | -- | (246.138.881) | (246.138.881) |
| Other comprehensive income | -- | -- | -- | (7.080.799) | -- | -- | -- | (7.080.799) |
| Actuarial differences | -- | -- | -- | (7.080.799) | -- | -- | -- | (7.080.799) |
| Balance at 30 September 2024 |
115.000.000 | 1.463.042.979 | 157.829.305 | (27.984.238) | 168.713.388 | 4.711.682.886 | (246.138.881) | 6.342.145.439 |
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
| Note | Unaudited | Unaudited | |
|---|---|---|---|
| 1 January | 1 January | ||
| 30 September | 30 September | ||
| 2024 | 2023 | ||
| Net profit/(loss) for the period | (246.138.881) | 1.144.413.420 | |
| Reconciliation of net cash provided by operating activities to net profit: | |||
| Adjustment related to depreciation and amortization | 12,13,14 | 279.276.148 | 252.450.336 |
| Adjustment related to provision for severance pay | 16 | 14.096.723 | 11.689.206 |
| Adjustment related to fair value losses (gains) | |||
| -Adjustments for fair value losses (gains) on financial assets | 22 | (360.768.910) | (274.425.541) |
| Tax (income)/ losses | 23 | 42.668.682 | 610.067.584 |
| Provision of litigation and guarantee | 15 | 27.971.762 | 90.576.981 |
| Provisions for unused leave | 16 | 4.969.472 | 10.802.517 |
| Adjustment related to provision of impairment/ (cancellation) of inventory | -- | (1.554.267) | |
| Interest expenses from leases | 14 | 1.454.322 | 2.144.258 |
| Interest expense | 21 | 1.015.398.856 | 138.275.158 |
| Monetary gains and losses | (25.110.928) | 138.037.582 | |
| Net cash flow before change in assets and liabilities Changes in assets and liabilities |
|||
| Change in trade receivables and other receivables | 21.192.849 | (832.528.274) | |
| Change in inventories | (592.110.395) | (1.045.732.167) | |
| Change in prepaid expenses and other assets and liabilities | (55.667.432) | (358.813.371) | |
| Change in trade payables and other payables | (340.750.395) | 729.387.392 | |
| Change in payables related employee benefits Change in deferred income |
(6.419.345) (59.857.183) |
22.018.131 (187.279.844) |
|
| Employee severance paid | 16 | (7.421.393) | (22.164.052) |
| Cash outflows of payments from leasing agreements | 14 | (2.843.338) | (2.798.638) |
| Taxes received / (paid) | (106.954.164) | (216.352.036) | |
| Net cash generated / (used) from operations | (397.013.550) | 208.214.375 | |
| Cashoutflows from investing activities | |||
| Changes in financial investments | -- | 4.181.989 | |
| Cash inflows/outflows from the sale of shares or debt instruments | |||
| of other enterprises or funds | 151.567.162 | (32.171.542) | |
| Purchases of tangible and intangible assets | 12,13 | (210.106.919) | (377.287.634) |
| Sales of tangible assets | 12,13 | 1.117.174 | 4.220.005 |
| Net cash generated / (used) in investing activities | (57.422.583) | (401.057.182) | |
| Financing activities, Net cash | |||
| Financial borrowings, net | 1.314.057.680 | 334.289.814 | |
| Interest paid | (1.015.398.856) | (138.275.158) | |
| Net cash provided from financing activities | 298.658.824 | 196.014.656 | |
| Net increase/(decrease) in cash and cash equivalents | (155.777.309) | 3.171.849 | |
| Inflation effect on cash and cash equivalents | (106.371.295) | (289.804.803) | |
| Cash and cash equivalents at the beginning of the period | 4 | 402.997.856 | 876.632.462 |
| Cash and cash equivalents at the end of the period | 4 | 140.849.252 | 589.999.508 |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
| CONTENTS | ||
|---|---|---|
| 1 | Organization and Nature of Operation | 8 |
| 2 | Basis of Presentation of Financial Statements | 10 |
| 2.1 | Basis of Presentation | 10 |
| 2.2 | Compliance of TFRS | 14 |
| 2.3 | Changes in Accounting Policies | 14 |
| 2.4 | Changes in Accounting Estimates and Errors | 16 |
| 2.5 | Summary of Significant Accounting Policies | 16 |
| 3 | Related Party Disclosures | 17 |
| 4 | Cash and Cash Equivalent | 20 |
| 5 | Financial Investments | 20 |
| 6 | Financial Borrowings | 21 |
| 7 | Trade Receivables and Payables | 22 |
| 8 | Other Receivables and Payables | 23 |
| 9 | Inventories | 23 |
| 10 | Prepaid Expenses and Deferred Income | 24 |
| 11 | Investment Properties | 24 |
| 12 | Property, Plant and Equipment | 25 |
| 13 | Intangible Assets | 27 |
| 14 | Leasing Transactions | 27 |
| 15 | Provisions, Contingent Assets and Liabilities | 29 |
| 15 | Provisions, Contingent Assets and Liabilities (continued) | 30 |
| 16 | Employee Benefits | 31 |
| 17 | Other Assets and Liabilities |
33 |
| 18 | Capital, Reserves and Other Equity Items | 33 |
| 19 | Revenue | 34 |
| 20 | Operating Expense | 34 |
| 21 | Finance Income and Expense | 35 |
| 22 | Income and Expense from Investment Activities | 35 |
| 23 | Income Tax | 35 |
| 24 | Earning per Share | 37 |
| 25 | Financial Instruments- Risk Management and Fair Value |
37 |
| 26 | Subsequent Events | 40 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Tümosan Motor ve Traktör Sanayi A.Ş. (formerly known as Alçelik Çelik Yapı İnşaat Sanayi ve Ticaret Anonim Şirketi) ("Tümosan" or "the Company"), was established in 1975 to produce engine parts, transfer organs and similar equipment, but then concentrated its activities on diesel engine and tractor production. Tümosan, which is the first diesel engine producer of Turkey, along with providing diesel engines to tractors produced under the same brand, produced diesel engines for many years for other companies producing diesel vehicles.
The Company was taken into the scope and program of privatization on 18 August 1998 and the shares belonging to Mechanics and Chemistry Institution Corporation were transferred to Directorate of Privatization Administration and it was decided that privatization procedures shall be completed within a year.
Four companies participated in the privatization tender of the Company held on 24 April 2000 and at the end of the tender, Anadolu Joint Venture Group took the first place when Konya Selçuklu Joint Venture Group took the second place. At the end of the tender, since the sale contracts forwarded respectively to the ventures could not be signed within the specified time frame, their indemnities were recorded as revenue and the tender could not be concluded positively.
Tümosan, which continued its activities in a more limited frame after the tender, was adhered to Sümer Holding on 7 February 2003. For privatization purposes, the second tender was held in 2004 and Tümosan was acquired by Alçelik Çelik Yapı İnşaat Sanayi ve Ticaret A.Ş. through asset sale and the takeover was completed on 1 July 2004.
26% of the Company's shares were offered to public at Istanbul Stock Exchange on 5 December 2012. Since 5 December 2012, the shares of the Company are listed at Istanbul Stock Exchange.
The headquarters and factory of the Company is at the following addresses:
Headquarters:
Maltepe Mahallesi Londra Asfaltı Caddesi No:28/1 Topkapı, 34010, Zeytinburnu/İstanbul/Turkey
Factory:
Büyükkayacık Mahallesi Aksaray Çevre Yolu Caddesi No:7/1 Selçuklu/Konya/Turkey
Information regarding the Company's shareholding interests and their shares is as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Name/ Title | Shareholding Rates % |
Shareholding Rates % |
| Ereğli Tekstil Turizm Sanayi ve Ticaret A.Ş. | 60,87 | 60,87 |
| Muzaffer Albayrak | 1,74 | 1,74 |
| Ahmet Albayrak | 1,74 | 1,74 |
| Bayram Albayrak | 1,74 | 1,74 |
| Nuri Albayrak | 1,74 | 1,74 |
| Kazım Albayrak | 1,74 | 1,74 |
| Mustafa Albayrak | 1,74 | 1,74 |
| Publicly held | 28,69 | 28,69 |
| Total | 100,00 | 100,00 |
The main shareholder of the Company is Ereğli Tekstil Turizm Sanayi ve Ticaret A.Ş. ("Ereğli Tekstil") which is controlled by Albayrak Family.
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024, The Company has 637 personnel (31 December 2023: 755)
Tümosan Döküm A.Ş.: The company engages in all kinds of casting and machining operations and trading.
TTM Tümosan Teknoloji Mühendislik Sanayi ve Ticaret A.Ş.: The company engages to develop new products in defense and weapons, have R&D activities, contribute the production of existing products, and operate arms and related industry product purchases and sales. Company not actively operate as of the reporting date. (Former Title: Tümosan Savunma A.Ş.).
Tümosan Teknoloji Mühendislik Sanayi Ticaret A.Ş.: the company was established through partial demerger with the expert report dated 11 December 2021 and the registration in the trade registry by Tümosan Motor ve Traktör Sanayi A.Ş. on 5 April 2022.
Since 100% of the company's capital is owned by Tümosan Motor ve Traktör Sanayi A.Ş., the partial demerger did not have any impact on the consolidated financial statements dated 30 September, 2024.
The company's activities include conducting R&D activities in technology and engineering, developing new products, creating prototypes, providing technical consultancy, and developing software. Additionally, the company engages in other activities based on its articles of association to participate in all kinds of domestic and international tenders for the Ministry of National Defense and other public institutions.
The condensed consolidated interim financial statements as of 30 September 2024 prepared by fully consolidating the subsidiaries stated below to the Company.
| Rate of Control | ||
|---|---|---|
| Company | 30 September 2024 |
31 December 2023 |
| Tümosan Döküm A.Ş. | %100 | %100 |
| TTM Tümosan Teknoloji Mühendislik San. ve Tic. A.Ş. |
%100 | %100 |
| Tümosan Teknoloji Mühendislik San. Tic. A.Ş. |
%100 | %100 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024, the consolidated financial statements and their notes have been prepared in accordance with the Turkish Accounting Standards ("TAS"), which have been issued and enacted by the Public Oversight, Accounting and Auditing Standards Authority ("POA") in compliance with the provisions of the Capital Markets Board's ("CMB") Communiqué on Principles of Financial Reporting in Capital Markets (II-14.1) published in the Official Gazette dated 13 September 2013 and numbered 28676. TAS consists of the Turkish Accounting Standards, Turkish Financial Reporting Standards ("TFRS"), and related appendices and interpretations.
The consolidated financial statements have been presented in accordance with the formats specified in the TFRS Taxonomies published by the POA and the Financial Statement Examples and Usage Guide published by the CMB.
The consolidated financial statements have been prepared based on historical costs, excluding financial assets measured at fair value, investment properties, and tangible assets.
The financial statements and related amounts for prior periods have been restated for general changes in the purchasing power of the functional currency and consequently expressed in the measurement unit current at the end of the reporting period in accordance with TAS 29 'Financial Reporting in Hyperinflationary Economies'.
TAS 29 applies to the financial statements of any entity whose functional currency is the currency of a hyperinflationary economy, including consolidated financial statements. In the presence of high inflation in an economy, TAS 29 requires the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy to be expressed in the measurement unit current at the end of the reporting period.
According to the announcement issued by the Public Oversight, Accounting and Auditing Standards Authority (POA) on 23 November 2023 regarding the adjustment of financial statements of companies subject to independent audit for inflation, enterprises applying Turkish Financial Reporting Standards are required to present their financial statements for annual reporting periods ending on or after 31 December 2023 adjusted for inflation in accordance with TAS 29.
Under this standard, financial statements prepared using the currency of a hyperinflationary economy are stated in terms of the purchasing power of that currency at the balance sheet date, with comparative information for prior periods also presented in the current measurement unit at the end of the reporting period. Therefore, the company has presented its financial statements as of 30 September 2023 based on the purchasing power at 30 September 2024.
The Group has therefore restated the financial statements as of 30 September 2024 of group companies whose functional currency is solely Turkish Lira in accordance with the accounting principles specified in TAS 29.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Below is the table showing inflation rates calculated based on the Consumer Price Index published by the Turkish Statistical Institute ("TÜİK") for the respective years:
| Date | Index | Correction Coefficient | Cumulative Inflation Rates Over Three Years |
|---|---|---|---|
| 30.09.2024 | 2.526,16 | 1,00000 | 343% |
| 31.12.2023 | 1.859,38 | 1,35860 | 268% |
| 30.09.2023 | 1.691,04 | 1,49385 | 254% |
The main outlines of indexing operations under TAS 29 are as follows:
The impact of applying TAS 29 "Financial Reporting in Hyperinflationary Economies" can be summarized as follows:
Amounts in the statement of financial position that are not expressed in the measurement unit current at the end of the reporting period are reclassified. Therefore, monetary items are not reclassified because they are expressed in the currency current at the reporting date. However, nonmonetary items must be reclassified unless they are stated at their current amounts at the end of the reporting period.
Inclusion of gains or losses from reclassification of non-monetary items gains or losses arising from the reclassification of non-monetary items are included in profit or loss and are separately presented in the statement of profit or loss and other comprehensive income.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Reclassification of Statement of Profit or Loss
All items in the income statement are expressed in the measurement unit current at the end of the reporting period. Therefore, all amounts have been reclassified using changes in the monthly general price index.
Depreciation and amortization expenses for tangible and intangible assets have been adjusted using the reclassified balances.
All items in the cash flow statement are expressed in the measurement unit current at the end of the reporting period.
The financial statements of a subsidiary whose functional currency is the currency of a hyperinflationary economy are reclassified using the general price index before being included in the consolidated financial statements prepared by the parent entity. If such a subsidiary is a foreign subsidiary, the reclassified financial statements are translated at the closing rate. When consolidating financial statements with different reporting period ends, all monetary and nonmonetary items are reclassified according to the measurement unit current at the date of the consolidated financial statements.
The accompanying financial statements are presented in TL, the functional currency of the Group. All financial information is presented in TL, unless otherwise stated.
The attached consolidated financial statements are prepared on a comparative basis with the previous period to enable assessment of the Group's financial position, performance, and cash flow trends. Comparative information is reclassified and relevant differences are disclosed in the corresponding notes for the purpose of ensuring consistency in the presentation of current period financial statements.
Transactions in foreign currencies are translated to the functional currency of the Group at the exchange rates ruling at the date of the transactions. Monetary assets and liabilities denominated in foreign currencies at reporting date are translated to the functional currency at the exchange rate ruling at the date. Foreign currency differences arising on translation of foreign currency transactions are recognized in profit or loss.
Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Nonmonetary items in a foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the transaction.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, the consolidated financial statements include the accounts of the Company and its subsidiaries.
Subsidiaries are those entities on which the Group has the power to control. The Group controls the companies when it is incurred changeable returns due to relations of any companies or has a right to own these returns and has a power to affect these returns. The financial statements of the subsidiaries are included in the consolidated financial statements from the date on which control is transferred to the Group to the date on which control is transferred out from the Group.
The table below demonstrates the rates of the effective ownership and the voting power held in terms of percentages (%) as of 30 September 2024 and 31 December 2023 for all subsidiaries directly controlled by the Group and included in the scope of consolidation:
| Rate of Control | ||
|---|---|---|
| Company | 30 September 2024 |
31 December 2023 |
| Tümosan Döküm A.Ş. | %100 | %100 |
| TTM Tümosan Teknoloji Mühendislik San. ve Tic. A.Ş. |
%100 | %100 |
| Tümosan Teknoloji Mühendislik San. Tic. A.Ş. |
%100 | %100 |
Changes in the Group's interest in a subsidiary that do not result in a loss of control are accounted for as transactions with owners in their capacity as owners. Adjustments to non-controlling interests are based on a proportionate amount of the net assets of the subsidiary. No adjustments are made to goodwill and no gain or loss is recognized in profit or loss.
On the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any noncontrolling interests and the other components of equity related to the subsidiary. Any surplus of deficit arising on the loss of control is recognized in profit or loss. If the Group retains any interest in the previous subsidiary, then such interest is measured at fair value at the date that control is lost.
Intra-group balances and transactions, and any unrealized income and expenses arising from intragroup transactions, are eliminated in preparing the consolidated financial statements. Unrealized gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group's interest in the investee. Unrealized losses are eliminated in the same way as unrealized gains, but only to the extent that there is no evidence of impairment. Carrying value of shares owned by the Group and dividends arising from these shares has been eliminated in equity and profit or loss statements.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
The accompanying condensed consolidated interim financial statements have been prepared in accordance with TFRS, with the classification and corrections made based on the legal records of the Company and its subsidiaries, in line with the principle that the financial statements reflect the truth.
The company and its subsidiaries keep their accounting records in accordance with the Uniform Chart of Accounts, Turkish Commercial Code and Turkish Tax Laws and prepare their legal financial statements in TL accordingly.
The interim condensed consolidated financial statements have been approved by the Company's Board of Directors on 29 November 2024. The Company's General Assembly and certain regulatory bodies have the right to make amendments after the publication of the financial statements.
Accounting policy changes resulting from the initial application of a new TFRS are applied retrospectively or prospectively as required by the transitional provisions of that TFRS. Significant accounting errors identified are applied retrospectively, and previous period financial statements are restated accordingly. Changes in accounting estimates are applied prospectively if they relate to a single period, and if they affect future periods, they are applied both in the current period of the change and prospectively.
The accounting policies used in the preparation of the consolidated financial statements for the year ended 30 September, 2024 are consistent with those applied in the previous year, except for new and amended TFRS and TFRS interpretations effective as of 1 January 2024, as summarized below. The effects of these standards and interpretations on the Group's financial position and performance are disclosed in the relevant paragraphs.
TAS 7 and TFRS 7 (Amendments) Supplier Financing Arrangements
TSRS 1 General Requirements for Disclosure of Financial Information Related to Sustainability
TSRS 2 – Climate-related Disclosures
The amendments in TFRS 16 explain how a seller-lessee subsequently measures sale and leaseback transactions that qualify for recognition as a sale under TFRS 15. These changes in TFRS 16 will be applicable for annual reporting periods beginning on or after January 1, 2024, with early adoption permitted
The amendments in TAS 1 explain how changes affect the classification of a liability as a current or non-current based on conditions that an entity must fulfill within twelve months after the end of the reporting period. These changes in TAS 1 will be applicable for annual reporting periods beginning on or after January 1, 2024, with early adoption permitted.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
New and Revised Standards and Interpretations (continued)
The amendments in TFRS 7 and TFRS 7 add signposts requiring entities to provide qualitative and quantitative information on supplier financing arrangements and disclosure requirements beyond current disclosure requirements. These changes are effective for annual reporting periods beginning on or after January 1, 2024.
TSRS 1 establishes general requirements for sustainability-related financial disclosures, aiming to compel businesses to provide information that will assist primary users of general purpose financial reports in making decisions about resource allocation to the entity regarding sustainability-related risks and opportunities. The application of this standard is mandatory for entities meeting the relevant criteria as per the CMB's announcement numbered 2024-5 dated January 5, 2024, for annual reporting periods beginning on or after January 1, 2024, or for banks regardless of criteria. Other entities may voluntarily report in accordance with TSRS standards
TSRS 2 outlines requirements for identifying, assessing, and disclosing climate-related risks and opportunities that will assist primary users of general purpose financial reports in making decisions about resource allocation to the entity. The application of this standard is mandatory for entities meeting the relevant criteria as per the CMB's announcement numbered 2024-5 dated January 5, 2024, for annual reporting periods beginning on or after January 1, 2024, or for banks regardless of criteria. Other entities may voluntarily report in accordance with TSRS standards .
TFRS 17 – Insurance Contracts
TFRS 17 (Amendments) – Initial Application of TFRS 17 and TFRS 9 – Comparative Information
TFRS 17 requires the measurement of insurance liabilities at a current fulfilment value and provides a more consistent 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 and reinsurance as well as retirement companies for another year and will replace TFRS 4 Insurance Contracts as of January 1, 2025.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
2.3 Changes in Accounting Policies (continued)
New and Revised Standards and Interpretations (continued)
(b) Standards, amendments, and interpretations that have been published as of 30 September 2024, but have not yet become effective (continued)
Changes have been made to TFRS 17 to reduce implementation costs, facilitate the disclosure of results, and ease the transition.
Additionally, a change related to comparative information allows companies that adopt TFRS 7 and TFRS 9 simultaneously to present comparative information on financial assets as if the classification and measurement requirements of TFRS 9 had been applied to those financial assets previously.
These changes will be applied when TFRS 17 is first adopted.
The standard in question is being evaluated for the potential impacts of changes and improvements on the Company's consolidated financial position and performance.
Changes in accounting policies and significant accounting errors are applied retrospectively, resulting in the restatement of previous period financial statements. Changes in accounting estimates are applied prospectively: if they affect only the current period, they are applied in the current period; if they affect future periods as well, they are applied both in the current period and prospectively in future periods. The Company has not made any significant changes in accounting estimates.
The CMB has permitted publicly traded companies to apply the full set or condensed presentation of their interim financial statements in accordance with TAS 34 "Interim Financial Statements". Accordingly, the Group prepared the condensed presentation of the financial statements at the interim period ending 30 September 2024.
In accordance with the relevant regulations, the annual financial statements prepared in accordance with TFRSs should include necessary disclosures and notes as summarized or provided under TMS 34. The attached summary consolidated financial statements should be read together with the audited consolidated financial statements as of 31 December 2023 and the accompanying notes. Therefore, these interim summary consolidated financial statements should be evaluated in conjunction with the consolidated financial statements for the year ended 31 December 2023.
The Group continued to apply the accounting policies and accounting estimates as stated in the consolidated financial statements as of 31 December 2023, in the interim summary consolidated financial statements.
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
In the financial statements, shareholders, key management personnel, and board members, along with their families and the companies they control or are affiliated with, as well as associates and jointly controlled entities, are considered related parties. Various transactions have been conducted with related parties in the course of the Group's normal operations.
The details between The Group and other related parties are as follows.
The related parties shown in the related party disclosures and the nature of the relation of The Group with these parties are as follows. These companies are presented as related parties which are controlled by Albayrak Family.
| Related Party | Definition |
|---|---|
| Ereğli Tekstil Turizm San. ve Tic. A.Ş. ("Ereğli Tekstil") | Shareholder |
| Albayrak Turizm Seyahat İnşaat Tic. A.Ş. ("Albayrak İnşaat") | Related Party |
| Albil Merkezi Hizmetler ve Ticaret A.Ş. ("Albil") | Related Party |
| Albayrak Agro-Busıness-Sarlu.(" Albayrak Agro - Business – Sarlu") |
Related Party |
| Albayrak Constructıon Sarlu.(" Albayrak Constructıon Sarlu") | Related Party |
| Alport Conakry S.A.("Alport Conakry") | Related Party |
| Asist Oto Kiralama Turizm Ticaret A.Ş.("Asist Oto") | Related Party |
| Bayteks Giyim San. ve Tic. Ltd. Şti. ("Bayteks Giyim") | Related Party |
| Birlikte Dağıtım A.Ş. ("Birlikte Dağıtım") | Related Party |
| Birun Ada Otelcilik Turizm A.Ş. ("Birun Ada") | Related Party |
| Birun Otelcilik A.Ş. ("Birun Otelcilik") | Related Party |
| Bolber Tarım A.Ş. ("Bolber") | Related Party |
| Dolu Akaryakıt Pazarlama A.Ş. ("Dolu Akaryakıt") | Related Party |
| Güneş Albayrak Turizm Seyahat San. ve Tic. A.Ş. ("Güneş Turizm") |
Related Party |
| İntrotema Yayımcılık A.Ş. ("İntrotema") | Related Party |
| Kademe Atık Teknolojileri San.A.Ş. ("Kademe Atık") |
Related Party |
| Ketebe Kitap ve Dergi Yayıncılığı A.Ş. ("Ketebe Kitap") |
Related Party |
| Mezra Ziraat A.Ş. ("Mezra Ziraat") | Related Party |
| Mogadishu Alport ("Mogadishu") | Related Party |
| Nakil Lojistik A.Ş. ("Nakil Lojistik") |
Related Party |
| Piri Medya A.Ş. ("Piri Medya") | Related Party |
| Platform Tur. Taş. Gıda İnş. Tem. Hiz. San.ve Tic. A.Ş. ("Platform Turizm") | Related Party |
| Reklam Piri Medya İletişim A.Ş. ("Reklam Piri") | Related Party |
| Sukkar Şeker Üretim A.Ş. ("Sukkar") |
Related Party |
| Trabzon Liman İşletmeciliği A.Ş. ("Trabzon Liman") | Related Party |
| Transbaş Trabzon Serbest Bölge İşletmeciliği A.Ş. ("Transbaş") | Related Party |
| Varaka Kağıt Sanayi A.Ş. ("Varaka Kağıt") | Related Party |
| Yaşam Tekstil Turizm Sanayi ve Ticaret Ltd. Şti. ("Yaşam Tekstil") | Related Party |
| Yeşil Adamlar Atık Yönetimi ve Taşımacılık A.Ş. ("Yeşil Adamlar") | Related Party |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024, details regarding the related parties and significant balances are as follows:
| Receivables | Payables | |
|---|---|---|
| 30 September 2024 | Short-Term | Short-Term |
| Commercial | Commercial | |
| Kademe Atık | 576.763.113 | 3.456 |
| Albayrak İnşaat | 219.677.324 | -- |
| Albil | 76.287.207 | 17.909.742 |
| Varaka Kağıt | 25.518.624 | 10.653.584 |
| Alport Conakry | 9.762.771 | -- |
| Ereğli Tekstil | 3.797.556 | |
| Asist Oto | 1.998.574 | -- |
| Yeşil Adamlar | 717.449 | -- |
| Albayrak Constructıon Sarlu | 697.312 | -- |
| Albayrak Agro - Busıness - Sarlu | 679.874 | -- |
| Sukkar | 647.818 | -- |
| Ketebe Kitap | 502.934 | -- |
| Dolu Akaryakıt | 229.998 | -- |
| Nakil Lojistik | 38.468 | 3.516.167 |
| Transbaş | 7.875 | -- |
| Trabzon Liman | 578 | -- |
| Mezra Ziraat | -- | 1.682.772 |
| Platform Turizm | -- | 1.407.710 |
| Yaşam Tekstil | -- | 1.524.966 |
| Piri Medya | -- | 323.773 |
| Birlikte Dağıtım | -- | 1.141.878 |
| Reklam Piri | -- | 512.882 |
| Total | 917.327.475 | 38.676.930 |
As of 31 December 2023, details regarding the related parties and significant balances are as follows:
| Receivables | Payables | ||
|---|---|---|---|
| 31 December 2023 | Short-Term | Short-Term | |
| Commercial | Other | Commercial | |
| Kademe Atık | 544.886.530 | 43.379 | 264.479 |
| Albayrak İnşaat | 105.637.397 | -- | -- |
| Varaka Kağıt | 42.749.300 | -- | -- |
| Albil | 33.206.518 | -- | 16.506.580 |
| Mezra Ziraat | 11.784.526 | -- | -- |
| Platform Turizm | 7.363.760 | -- | -- |
| Alport Conakry | 7.352.187 | 216.322 | -- |
| Ereğli Tekstil | 4.455.130 | -- | -- |
| Mogadishu | 2.681.864 | -- | -- |
| Yeşil Adamlar | 923.372 | -- | -- |
| Albayrak Constructıon Sarlu | 811.708 | -- | -- |
| Sukkar | 393.137 | -- | -- |
| Albayrak Agro - Business – Sarlu | 363.610 | -- | -- |
| Ketebe Kitap | 235.764 | 73 | -- |
| Dolu Akaryakıt | 191.244 | -- | -- |
| Transbaş | 10.699 | -- | -- |
| Asist Oto | -- | -- | 109.449 |
| Birlikte Dağıtım | -- | -- | 865.868 |
| Nakil Lojistik | -- | -- | 664.710 |
| Reklam Piri | -- | -- | 10.726.355 |
| Total | 763.046.746 | 259.774 | 29.137.441 |
(*) The Group's non-commercial receivables from related parties arise from intra-group financing activities. Interest is charged on the receivable at regular intervals in accordance with prevailing market interest rates.
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
For the periods 1 January – 30 September 2024 and 1 January – 30 September 2023, purchases from the related parties are as follows:
| 1 January- 30 September 2024 | 1 January- 30 September 2023 | |||
|---|---|---|---|---|
| Purchase | Purchase of Goods and Service |
Other | Purchase of Goods and Service |
Other |
| Yaşam Tekstil | 8.691.984 | -- | 6.887.353 | -- |
| İntrotema | 785 | -- | -- | -- |
| Kademe Atık | 433.681.609 | -- | 888.586.566 | |
| Reklam Piri | 4.253.699 | -- | 847.057 | -- |
| Nakil Lojistik | 36.319.792 | -- | 56.442.209 | 6.152.867 |
| Albil | 34.869.791 | 3.559.534 | 37.434.497 | -- |
| Piri Medya | 318.646 | -- | 52.880 | -- |
| Birlikte Dağıtım | 3.605.325 | 1.656.547 | 3.912.955 | -- |
| Dolu Akaryakıt | 2.749.024 | -- | 6.013.916 | -- |
| Free Lojistik | 2.276.707 | -- | -- | -- |
| Varaka Kağıt | 19.397.258 | -- | 76.551.587 | -- |
| Bayteks Giyim | 182.869 | -- | 261.981 | -- |
| Asist Oto | 116.761 | 167.904 | 171.536 | -- |
| Albayrak İnşaat | 10.893 | -- | -- | -- |
| Mezra Ziraat | 1.888.428 | -- | -- | -- |
| Birun Ada | 1.570.659 | -- | -- | -- |
| Albayrak Holding | -- | 5.954.784 | -- | -- |
| Platform Turizm | -- | 396.311 | -- | 1.751.610 |
| Güneş Turizm | -- | -- | 439.849 | -- |
| Ketebe Kitap | -- | -- | 50.418 | -- |
| Total | 549.934.230 | 11.735.080 | 1.077.652.804 | 7.904.477 |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
3 Related Party Disclosures (continued)
For the periods 1 January – 30 September 2024 and 1 January – 30 September 2023 sales to the related parties are as follows:
| 1 January- 30 September 2024 | 1 January- 30 September 2023 | |||
|---|---|---|---|---|
| Purchase of Goods | Purchase of Goods | |||
| Sale | and Service | Other | and Service | Other |
| Kademe Atık | 188.281.015 | 5.021.000 | 116.751.230 | 1.709.817 |
| Albayrak İnşaat | 113.306.385 | -- | 24.170.091 | -- |
| Mezra Ziraat | 21.128.534 | -- | 9.370.770 | -- |
| Varaka Kağıt | 16.079.301 | -- | 1.188.084 | 123.245 |
| Ereğli Tekstil | 3.659.431 | 16.964 | 6.944.461 | -- |
| Trabzon Liman | 2.061.976 | -- | -- | -- |
| Birlikte Dağıtım | 917.597 | -- | 93.392 | -- |
| Albil | 894.826 | -- | -- | -- |
| Alport Conakry | 146.181 | 29.952 | 221.938 | -- |
| Nakil Lojistik | 114.034 | 308.985 | 3.623.825 | -- |
| Yaşam Tekstil | 47.573 | 40.289 | 19.683 | 146.068 |
| Piri Medya | 1.402 | -- | -- | -- |
| Sukkar | -- | -- | 2.219.601 | -- |
| Bolber | -- | -- | 989.534 | -- |
| Asist Oto | -- | -- | 214.043 | -- |
| Ketebe Kitap | -- | -- | -- | 326.621 |
| Total | 346.638.255 | 5.417.190 | 165.806.652 | 2.305.751 |
The total benefits provided to senior management for the year ended 30 September 2024 amounted to 9.829.441 TL (30 September 2023: 12.425.721 TL).
As of 30 September 2024 and 31 December 2023, cash and cash equivalents are as follows::
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Banks | ||
| -Demand deposit | 140.849.252 | 402.997.856 |
| Total | 140.849.252 | 402.997.856 |
As of 30 September 2024, there is no account under any blockage or pledge (31 December 2023: None).
As of 30 September 2024 and 31 December 2023, short term financial investments are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Investment Funds | 902.712.351 | 693.510.603 |
| Total | 902.712.351 | 693.510.603 |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, financial borrowings of The Group are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Short Term Financial Borrowings | ||
| Short Term Bank Loans |
3.060.457.703 | 1.783.819.897 |
| Short Term Portion of Long Term Loans |
59.419.310 | 41.623.773 |
| Liabilities from Rent Certificate | 50.356.019 | -- |
| Total | 3.170.233.032 | 1.825.443.670 |
| Long-term Financial Borrowings | ||
| Long-Term Bank Loans | 66.662.845 | 97.394.527 |
| Total | 66.662.845 | 97.394.527 |
As of 30 September 2024 and 31 December 2023, the maturity and terms of outstanding loans are as follows:
| 30 September 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| Effective Int. Rate % |
TL Equivalent | Effective Int. Rate % |
TL Equivalent |
|
| Short-Term Loans | ||||
| - Turkish Lira | 30-53% | 3.052.944.395 | 30-53% | 1.769.138.603 |
| - USD | 8-12% | 7.513.308 | Revolving Credit | 14.681.294 |
| Short-Term Portion of Long-Term Loans |
||||
| - Turkish Lira | 30-53% | 38.176.920 | 30-53% | 41.623.773 |
| - USD | 8-12% | 21.242.390 | -- | -- |
| Long-Term Loans | ||||
| - Turkish Lira | 30-53% | 45.420.455 | 30-53% | 97.394.527 |
| - USD | 8-12% | 21.242.390 | -- | -- |
| Total Loans | 3.186.539.858 | 1.922.838.197 |
As of 30 September 2024, the Group has real estate mortgages totaling 2.420.000.000 TL related to loans utilized. (31 December 2023: 2.420.000.000 TL in real estate mortgages related to loans utilized).
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, short-term trade receivables from non-related parties are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Receivables | 320.608.992 | 276.586.224 |
| Notes Receivables |
296.065.867 | 154.542.965 |
| Direct Debiting System Receivables (*) | 664.326.137 | 1.048.886.672 |
| Provision for Doubtful Receivables |
(17.982.935) | (26.564.858) |
| Total | 1.263.018.061 | 1.453.451.003 |
(*) Direct debiting system guarantees purchase and sell payments between the Company and dealers. Dealers purchase transaction according to DDS limit that is identified by the banks. At the end of maturity, dealer pays to bank as a third party and the bank pays to the Company.
As of 30 September 2024 and 31 December 2023, short-term trade payables to non-related parties are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Sellers | 654.354.683 | 1.094.581.719 |
| Notes Payables | 332.204.315 | 450.917.748 |
| Other Trade Payables |
304.296.793 | 79.372.861 |
| Total | 1.290.855.791 | 1.624.872.328 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, other short-term receivables from non-related parties are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Receivables from Personnel |
7.956.530 | 3.267.433 |
| Refundable Taxes | 3.977.496 | 1.664.031 |
| Deposits and Guarantees Given | 588.697 | 893.052 |
| Total | 12.522.723 | 5.824.516 |
As of 30 September 2024 and 31 December 2023, other long-term receivables from non-related parties are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Deposits and Guarantees Given |
170.082 | 231.074 |
| Total | 170.082 | 231.074 |
As of 30 September 2024 and 31 December 2023, other short-term payables to non-related parties are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Refundable Deposit and Guarantees | 7.171.284 | 8.379.935 |
| Payables to Tax Office | 4.904.687 | 6.840.699 |
| Installed Tax Payables | 1.488.323 | 14.521.613 |
| Others Payables | 166.521 | 261.915 |
| Total | 13.730.815 | 30.004.162 |
As of 30 September 2024 and 31 December 2023, details of inventories are as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Materials and Spare Parts | 1.689.381.594 | 2.151.822.286 |
| Semi-Finished Goods | 237.295.526 | 279.820.868 |
| Goods | 1.472.864.931 | 371.082.584 |
| Commercial Goods | 40.590.164 | 47.443.905 |
| Goods in Transit | 21.312.074 | 24.510.720 |
| Other Inventories | 17.463.299 | 12.116.830 |
| Total | 3.478.907.588 | 2.886.797.193 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, the amount of short-term prepaid expenses from unrelated parties remaining in the current assets section consists of the following items;
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Advances Given | 175.038.785 | 207.138.661 |
| Expenses for Upcoming Months |
73.040.819 | 55.728.957 |
| Business Advances | 920.151 | 1.019.051 |
| Personnel Advances | 61.235 | 152.483 |
| Total | 249.060.990 | 264.039.152 |
The details of the Group's short-term deferred income from unrelated parties as of September 30, 2024, and December 31, 2023, are as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Advances Received | 170.879.956 | 230.737.139 |
| Total | 170.879.956 | 230.737.139 |
As of 30 September 2024 and 30 September 2023, details of investment properties are as follows::
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 |
30 September 2023 |
|
| Cost Value | ||
| 1 January Opening Balance |
101.591.116 | 101.591.116 |
| 31 December Balance |
101.591.116 | 101.591.116 |
| Less: Accumulated Depreciation | -- | -- |
| 1 January Opening Balance |
-- | -- |
| Current Period Depreciation | -- | -- |
| Balances of the end of the Period | -- | -- |
| Net Book Value of Beginning of the Period | 101.591.116 | 101.591.116 |
| Net Book Value of end of the Period | 101.591.116 | 101.591.116 |
For the periods ended 30 September 2024 movement of property, plant and equipment is summarized below:
| Land | Underground, Aboveground Structures |
Buildings | Plant and Machinery |
Vehicles | Furniture and Fixtures |
Investments Under Construction |
Special Costs | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Cost Value | |||||||||
| 1 January 2024 Cost |
2.530.987.547 | 53.150.072 | 549.852.201 | 1.636.735.460 | 184.819.967 | 290.359.648 | 144.987.533 | 109.453.327 | 5.500.345.755 |
| Additions | 2.101.195 | -- | 3.756.912 | 42.298.325 | -- | 20.801.812 | 24.328.651 | 142.414 | 93.429.309 |
| Disposals | -- | -- | -- | -- | (1.826.498) | -- | -- | -- | (1.826.498) |
| 30 September 2024 Balance |
2.533.088.742 | 53.150.072 | 553.609.113 | 1.679.033.785 | 182.993.469 | 311.161.460 | 169.316.184 | 109.595.741 | 5.591.948.566 |
| Less: Accumulated Depreciation | |||||||||
| 1 January 2024 Opening |
-- | (11.728.068) | (41.008.967) | (500.403.904) | (89.840.933) | (233.942.821) | -- | (108.620.481) | (985.545.174) |
| Current Period Depreciation | -- | (2.448.161) | (7.463.334) | (192.901.227) | (18.703.718) | (14.982.229) | -- | (239.172) | (236.737.841) |
| Disposals | -- | -- | -- | -- | 709.324 | -- | -- | -- | 709.324 |
| 30 September 2024 Balance |
-- | (14.176.229) | (48.472.301) | (693.305.131) | (107.835.327) | (248.925.050) | -- | (108.859.653) | (1.221.573.691) |
| 1 January 2024 Net Book Value |
2.530.987.547 | 41.422.004 | 508.843.234 | 1.136.331.556 | 94.979.034 | 56.416.827 | 144.987.533 | 832.846 | 4.514.800.581 |
| 30 September 2024 Net Book Value |
2.533.088.742 | 38.973.843 | 505.136.812 | 985.728.654 | 75.158.142 | 62.236.410 | 169.316.184 | 736.088 | 4.370.374.875 |
The Group has mortgages totaling 4.200.000.000 TL on property, plant and equipment (31 December 2023: 2.821.967.995 TL).
For the periods ended 30 September 2023 movement of property, plant and equipment is summarized below:
| Land | Underground, Aboveground Structures |
Buildings | Plant and Machinery |
Vehicles | Furniture and Fixtures |
Investments Under Construction |
Special Costs | Total | |
|---|---|---|---|---|---|---|---|---|---|
| Cost Value | |||||||||
| 1 January 2023 Cost |
2.530.987.547 | 52.961.725 | 550.367.403 | 1.300.276.757 | 171.225.587 | 257.241.060 | 152.499.522 | 109.243.372 | 5.124.802.973 |
| Additions | -- | -- | -- | 52.874.086 | 27.668.764 | 24.678.859 | 179.294.227 | 209.956 | 284.725.892 |
| Disposals | -- | -- | (4.205.397) | -- | (14.264.543) | -- | -- | -- | (18.469.940) |
| 30 September 2023 Balance |
2.530.987.547 | 52.961.725 | 546.162.006 | 1.353.150.843 | 184.629.808 | 281.919.919 | 331.793.749 | 109.453.328 | 5.391.058.925 |
| Less: Accumulated Depreciation | |||||||||
| 1 January 2023 Opening |
-- | (8.476.186) | (31.318.698) | (237.547.344) | (81.101.465) | (216.296.194) | -- | (108.362.979) | (683.102.866) |
| Current Period Depreciation | -- | (2.438.071) | (7.412.466) | (189.127.526) | (15.059.057) | (11.630.785) | -- | (203.275) | (225.871.180) |
| Disposals | -- | -- | 154.198 | -- | 14.095.737 | -- | -- | -- | 14.249.935 |
| 30 September 2023 Balance |
-- | (10.914.257) | (38.576.966) | (426.674.870) | (82.064.785) | (227.926.979) | -- | (108.566.254) | (894.724.111) |
| 1 January 2023 Net Book Value |
2.530.987.547 | 44.485.539 | 519.048.705 | 1.062.729.413 | 90.124.122 | 40.944.866 | 152.499.522 | 880.393 | 4.441.700.107 |
| 30 September 2023 Net Book Value |
2.530.987.547 | 42.047.468 | 507.585.040 | 926.475.973 | 102.565.023 | 53.992.940 | 331.793.749 | 887.074 | 4.496.334.814 |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Intangible assets consist development costs, rights and licenses, and accumulated depreciation. For the periods ended 30 September 2024 and 30 September 2023, movement of intangible assets are as follows:
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Value of Cost | ||
| Balance at 1 January | 618.974.598 | 532.951.940 |
| Additions | 116.677.610 | 92.561.742 |
| 30 September Balance | 735.652.208 | 625.513.682 |
| Less: Accumulated Amortization | ||
| Balance at 1 January | (500.493.993) | (469.735.690) |
| Current Period Amortization | (32.563.996) | (21.381.748) |
| 30 September Balance | (533.057.989) | (491.117.438) |
| 1 January Net Book Value | 118.480.605 | 63.216.250 |
| 30 September Net Book Value | 202.594.219 | 134.396.244 |
There are no liens or mortgages on the Group's intangible assets.
The Group, in accordance with the retrospective application of TFRS 16, reflects a right-of-use asset and a lease liability in its financial statements from the date when the lease actually commences.
The right-of-use asset is initially accounted for under the cost model and includes the following:
When applying the cost model, the Group measures the right-of-use asset at its cost, adjusted for accumulated amortization and any impairment losses, and corrected for the remeasurement of the lease liability.
The Group applies the depreciation provisions stated in TAS 16 Property, Plant and Equipment when depreciating the right-of-use asset.
| 1 January 2024 | Intreperiod Increase |
30 September 2024 | |
|---|---|---|---|
| Value of Cost | |||
| Buildings | 95.055.146 | -- | 95.055.146 |
| Total | 95.055.146 | -- | 95.055.146 |
| Accumulated Depreciation | |||
| Buildings | (34.989.098) | (9.974.311) | (44.963.409) |
| Total | (34.989.098) | (9.974.311) | (44.963.409) |
| Net Carrying Value | 60.066.048 | (9.974.311) | 50.091.737 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Right of Use Assets (continued)
| 1 January 2023 | Intreperiod Increase |
30 September 2023 | |
|---|---|---|---|
| Value of Cost | |||
| Buildings | 83.251.051 | 10.824.213 | 94.075.264 |
| Total | 83.251.051 | 10.824.213 | 94.075.264 |
| Accumulated Depreciation | |||
| Buildings | (25.927.448) | (5.197.408) | (31.124.856) |
| Total | (25.927.448) | (5.197.408) | (31.124.856) |
| Net Carrying Value | 57.323.603 | 5.626.805 | 62.950.408 |
The balances of lease liabilities from leasing transactions as of 30 September, 2024, and 31 December 2023, are as follows;
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Liabilities from Leasing Transaction (Short term) |
1.923.333 | 2.393.149 |
| Liabilities from Leasing Transaction (Long term) |
11.458.836 | 17.469.916 |
| Total | 13.382.169 | 19.863.065 |
The movements of lease liabilities for the years ended 30 September 2024 and 30 September 2023 are as follows:
| 30 September 2024 |
30 September 2023 |
|
|---|---|---|
| Opening balance | 19.863.064 | 19.660.100 |
| Payments | (2.843.338) | (2.798.638) |
| Interest Expense (Note 21) |
1.454.322 | 2.144.258 |
| Intreperiod Increase/(Decrease) | -- | 10.824.213 |
| Monetary Loss/ Gain | (5.091.879) | (7.773.583) |
| Balance of end of the period | 13.382.169 | 22.056.350 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023 The Group's provisions are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Warranty Provisions (*) |
67.933.292 | 62.928.598 |
| Litigation Provision (**) |
9.295.060 | 7.633.789 |
| Short Term Provisions | 77.228.352 | 70.562.387 |
(*) The movements of the warranty provision over the periods are as follows:
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 |
30 September 2023 |
|
| 1 January Balance |
62.928.598 | 59.160.558 |
| Intreperiod Increase | 23.982.786 | 88.462.381 |
| Monetary Loss/ Gain | (18.978.092) | (35.767.422) |
| Balance of end of the period | 67.933.292 | 111.855.517 |
(**) The movements of the litigaiton provision over the periods are as follows:
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 |
30 September 2023 |
|
| 1 January Balance |
7.633.789 | 9.185.659 |
| Intreperiod Increase / (Decrease) |
3.988.976 | 2.114.600 |
| Monetary Loss/ Gain | (2.327.705) | (3.440.469) |
| Balance of end of the period | 9.295.060 | 7.859.790 |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023 The Group's guarantee/pledge/mortgage positions are as follows:
| GPM given by Group (TL Equivalents) | 30 September 2024 31 December 2023 | |
|---|---|---|
| A. The total amount of GPM given on behalf of its own legal entity. |
222.340.826 | 68.766.070 |
| B. The total amount of collaterals given favor of the companies in the scope of full consolidation. |
-- | -- |
| C. The total amount of GPM given for the purpose of providing debt to third parties in the course of ordinary business activities. (*) |
2.743.846.299 | 3.441.250.693 |
| D. The total amount of other GPM given | -- | -- |
| i. The total amount of GPM given in favor of the parent companies. |
-- | -- |
| ii. The total amount of GPM given in favor of other group companies which are not in the scope of B and C. |
-- | -- |
| iii. The total amount of GPM given in favor of third parties other than the parties stated in item C. |
-- | -- |
| Total | 2.966.187.125 | 3.510.016.763 |
As of 30 September, 2024, the monetary positions of the GPM provided by the Group are shown below;
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Turkish Lira | 2.895.109.769 | 3.474.162.990 |
| USD | 71.077.356 | 35.853.773 |
| Total | 2.966.187.125 | 3.510.016.763 |
(*) An agreement was signed between The Group and Ziraat Bankası ("the Bank") in December 2010. Within the scope of this agreement, the event that a customer who took a loan from the Bank to buy tractors sold by The Group through Tümosan tractor dealers ("Branch"), is not able to pay back this borrowing, the Bank holds the right to demand from The Group 75% of the difference between the income to be generated from the judicial sale of the tractors and the insurance fee set by the Turkish Association of Insurance and Reinsurance Companies. However, The Group reflects the difference which the Bank demands from the Company to the Dealer realizing the sale. Therefore, although the mentioned letter of guarantee is a guarantee given to the Bank by The Group, it is eventually transferred to the Customers.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, short-term payables related to the employee benefits are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Wages and Salaries Payable |
26.505.171 | 24.381.977 |
| Social Security Withholdings Payable | 14.495.631 | 21.480.245 |
| Funds and Taxes Payable |
6.188.496 | 7.746.421 |
| Total | 47.189.298 | 53.608.643 |
As of 30 September 2024 and 31 December 2023, short-term provisions related to the employee benefits are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Provision for Vacation | 16.427.451 | 16.300.698 |
| Total | 16.427.451 | 16.300.698 |
The movements of the provision for leave over the years are as follows:
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 |
30 September 2023 |
|
| Beginning of the Period | 16.300.698 | 15.481.953 |
| Provision Allocated During the Period | 4.969.472 | 10.802.517 |
| Monetary Loss/Gain | (4.842.719) | (7.114.924) |
| End of the Period | 16.427.451 | 19.169.546 |
The Group is obliged to pay its employees or their beneficiaries for the annual leave periods that employees are entitled to but have not used as of the date the employment contract ends, regardless of the reason for termination, based on the wage at the termination date. The provision for unused leave is the undiscounted total liability amount corresponding to all leave days earned but not yet taken by all employees as of the reporting date.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, long-term provisions for employee benefits are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Provision for Employment Termination | 37.762.917 | 30.394.792 |
| Total | 37.762.917 | 30.394.792 |
In accordance with the prevailing laws in Turkey, the Group is required to make severance payments to employees who have completed one year of service and whose employment has been terminated without valid reason, who are called up for military service, who pass away, who have completed the necessary service period for retirement, or who have reached the retirement age. The severance payment to be made is equivalent to one month's salary for each year of service, and this amount is capped at 41.828 TL as of 30 September 2024 and 23,490 TL as of 31 December 2023.
The severance pay liability is not subject to any funding by law. The provision for severance pay is calculated by estimating the present value of the Group's probable future liability arising from the retirement of employees. TAS 19 ("Employee Benefits") stipulates that company liabilities should be developed using actuarial valuation methods under defined benefit plans. Accordingly, the actuarial assumptions used in the calculation of total liabilities are stated below:
| Interest Rate | 30 September 2024 |
31 December 2023 |
|---|---|---|
| Interest rate | 27,05% | 27,05% |
| Expected inflation rate | 23,20% | 23,20% |
| Net discount rate | 3,12% | 3,12% |
The principal assumption is that the maximum liability for each year of service will increase parallel with the inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. Consequently, in the accompanying financial statements as at 30 September 2024, the provision is calculated by estimating the present value of the future probable obligation of The Group arising from the retirement of the employees.
Movements of employee termination benefits provisions are as follows:
| 1 January 30 September 2024 |
1 January 30 September 2023 |
|
|---|---|---|
| Balance at 1 January | 30.394.792 | 34.504.485 |
| Cost of Services | 5.501.305 | 5.185.137 |
| Interest Expense | 8.595.418 | 6.504.069 |
| Actuarial Loss /Gain |
9.441.066 | 17.362.076 |
| Payments | (7.421.393) | (22.164.052) |
| Monetary Loss /Gain |
(8.748.271) | (9.574.583) |
| Balance at 30 September | 37.762.917 | 31.817.132 |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 30 September 2024 and 31 December 2023, details of other assets and liabilities are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Deferred VAT | 358.209.005 | 287.639.861 |
| Other | 127.379 | 50.929 |
| Total | 358.336.384 | 287.690.790 |
As of 30 September 2024 and 31 December 2023, capital structure of The Group are as follows:
| 30 September 2024 |
31 December | 2023 | ||
|---|---|---|---|---|
| Share Rate % |
Share Amount (TL) |
Share Rate % |
Share Amount (TL) |
|
| Ereğli Tekstil | 60,87% | 70.000.000 | 60,87% | 70.000.000 |
| Public Held |
28,69% | 32.998.715 | 28,69% | 32.998.715 |
| Other | 10,44% | 12.001.285 | 10,44% | 12.001.285 |
| Paid in Capital | 100% | 115.000.000 | 100% | 115.000.000 |
| Differences of Capital Adjustment | 1.463.042.979 | 1.463.042.979 | ||
| Total | 1.578.042.979 | 1.578.042.979 |
All of The Group's capital has been paid in as of 30 September 2024 and comprises of 115.000.000 shares with a nominal value of TL 115.000.000 and each one worth TL 1 (31 December 2023: Capital: TL 115.000.000, each one with a value of TL 1, a total of 115.000.000 shares).
According to Article 519 of the Turkish Commercial Code ("TCC") No. 6102, companies are required to set aside 5% of their annual profits as general legal reserves until it reaches 20% of their paid-in capital. If the company has accumulated losses from previous years, these losses are deducted from the annual profit when calculating the 5%. In accordance with subparagraph (c) of Article 519 of the TCC, after distributing a 5% dividend to shareholders, 10% of the portion decided to be distributed to shareholders and other participants in the profit is also added to the general legal reserves.
As of 30 September 2024 and 31 December 2023, other comprehensive income/expense not to be reclassified to profit or loss of The Group are as follows:
| 30 September 2024 |
31 December 2023 |
|
|---|---|---|
| Defined Benefit Plans Remeasurements (Losses) Gains | (27.984.238) | (20.903.439) |
| Total | (27.984.238) | (20.903.439) |
The comparison of the relevant equity items presented on an inflation-adjusted basis in the Company's consolidated financial statements as of 30 September 2024 with the inflation-adjusted amounts in the consolidated financial statements prepared in accordance with legal regulations is as follows.
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Sales and Cost of Sales for the periods as of 1 January- 30 September 2024 and 2023 are as follows:
| 1 January 30 September |
1 April 30 September |
1 January 30 September |
1 April 30 September |
|
|---|---|---|---|---|
| 2024 | 2024 | 2023 | 2023 | |
| Domestic Sales | 4.513.904.154 | 1.422.584.329 | 7.888.503.340 | 3.214.488.993 |
| Foreign Sales | 32.327.525 | 9.297.518 | 91.106.738 | 14.840.187 |
| Other Incomes | -- | -- | 49.610.619 | 27.429.175 |
| Gross Sales | 4.546.231.679 | 1.431.881.847 | 8.029.220.697 | 3.256.758.355 |
| Sales Returns and Discounts (-) | (173.586.958) | (47.415.007) | (13.469.253) | (8.934.568) |
| Net Sales | 4.372.644.721 | 1.384.466.840 | 8.015.751.444 | 3.247.823.787 |
| Cost of Sales (-) | (3.538.946.109) | (1.347.177.486) | (5.778.952.195) | (2.214.341.333) |
| Gross Profit | 833.698.612 | 37.289.354 | 2.236.799.249 | 1.033.482.454 |
The revenue of sales on product basis are as follows:
| 1 January 30 September 2024 |
1 July 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Tractor Sales | 3.591.649.753 | 1.145.489.245 | 7.336.952.103 | 3.026.364.264 |
| Spare Part Sales | 339.303.187 | 100.481.311 | 83.513.159 | 5.862.098 |
| Engine Sales | 54.667.006 | 15.448.843 | 139.498.103 | 49.905.198 |
| Construction Equipment Sales | 17.001.585 | 9.114.477 | 46.726.000 | 7.416.048 |
| Agricultural Machinery Sales | 7.368.662 | 1.667.141 | 9.964.289 | 8.928.977 |
| Other | 362.654.528 | 112.265.823 | 399.097.790 | 149.347.202 |
| Total Revenue | 4.372.644.721 | 1.384.466.840 | 8.015.751.444 | 3.247.823.787 |
Operating expenses for the 1 January-30 September 2024 and 2023 are as follows:
| 1 January 30 September 2024 |
1 July 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Marketing, Sale and Distribution Expenses | 373.724.500 | 112.018.251 | 634.544.004 | 221.614.454 |
| General and Administrative Expenses | 176.503.288 | 81.108.932 | 110.551.740 | 45.447.117 |
| Research and Development Expenses | 55.914.246 | 9.533.590 | 78.739.072 | 26.536.084 |
| Total | 606.142.034 | 202.660.773 | 823.834.816 | 293.597.655 |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Finance expenses of the Group for the 1 January-30 September 2024 and 2023 are as follows:
| 1 January 30 September 2024 |
1 July 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Interest Expenses | 1.015.398.856 | 548.281.853 | 138.275.158 | 80.641.969 |
| Interest Expenses from Leasing Transactions (Note 14) |
1.454.322 | 429.412 | 2.144.258 | 975.212 |
| Total | 1.016.853.178 | 548.711.265 | 140.419.416 | 81.617.181 |
The Group's investment income for the years ended 1 January-30 September 2024 and 2023 is as follows:
| 1 January 30 September 2024 |
1 July 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| Earnings from Financial Investments | 360.768.910 | 55.785.719 | 274.425.541 | 350.345.883 |
| Total | 360.768.910 | 55.785.719 | 274.425.541 | 350.345.883 |
Tax income/expense for the 30 September 2024 and 2023 are as follows:
| 1 January | 1 January | |
|---|---|---|
| 30 September 2024 | 30 September 2023 | |
| Recognized in Profit or Loss | ||
| Current tax expense: | ||
| Current tax expense | (29.470.962) | (350.217.634) |
| Deferred tax income / (expense): | ||
| Arising from temporary differences | (13.197.720) | (259.849.950) |
| (42.668.682) | (610.067.584) | |
| Recognized in Comprehensive Income Statement | ||
| Deferred tax income/(expense): | ||
| Tax effects of actuarial differences | 2.360.267 | 3.472.415 |
| Total Tax Expense | (40.308.415) | (606.595.169) |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
The reported tax provision for the periods 1 January-30 September 2024 and 2023 differs from the amount calculated using the statutory tax rate on profit before tax. The relevant reconciliation is as follows:
| 1 January 30 September 2024 |
1 January 30 September 2023 |
|||
|---|---|---|---|---|
| Profit / (Loss) for the Period | (246.138.881) | 1.144.413.420 | ||
| Deduction: Current Period Tax Expense | (42.668.682) | (610.067.584) | ||
| Profit Before Tax | (203.470.199) | 1.754.481.004 | ||
| Calculated Corporate Tax Via Statutory Rate | 25% | 50.867.550 | 25% | (438.620.251) |
| Non-Deductible Expenses | (7)% | (14.494.136) | 1% | (25.891.847) |
| Exceptions and Discounts | 23% | 47.290.451 | (5)% | 89.100.997 |
| Effect of Different Tax Rates and Other | (62)% | (126.332.547) | 13% | (234.656.483) |
| Total Tax Income/(Expense) Recognized in Profit or Loss |
(21)% | (42.668.682) | 35% | (610.067.584) |
As of 30 September 2024 and 31 December 2023, the deferred tax liabilities are as follows:
| 30 September 2024 | 31 December 2023 | |
|---|---|---|
| Deferred Tax Liability | (827.661.008) | (816.823.555) |
| Total | (827.661.008) | (816.823.555) |
The movement of deferred tax liabilities are as follows:
| 1 January | 1 January | ||
|---|---|---|---|
| 30 September 2024 |
30 September 2023 | ||
| Balance at 1 January | (816.823.555) | (602.978.284) | |
| Recognized in Profit or Loss | (13.197.720) | (259.849.950) | |
| Recognized in Other Comprehensive Income | 2.360.267 | 3.472.415 | |
| 30 September Balance | (827.661.008) | (859.355.819) |
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Earnings per share are calculated by dividing the current period's net profit by the weighted average number of shares of common stock outstanding during the period. In Turkey, companies have the right to increase their capital through the distribution of bonus shares, which can be funded from the revaluation surplus or retained earnings. During the calculation of earnings per share, such increases are treated as shares distributed as dividends. Similarly, capital additions in the form of dividend distributions are also considered. Therefore, when calculating the average number of shares, it is assumed that these types of shares are in circulation throughout the entire year. Consequently, the weighted average of the number of shares used to calculate earnings per share is determined, taking into account the retroactive effects.
| 1 January 30 September 2024 |
1 July 30 September 2024 |
1 January 30 September 2023 |
1 July 30 September 2023 |
|
|---|---|---|---|---|
| The Weighted Average Number of Shares in Existence During the Period (Each 1 TL) |
115.000.000 | 115.000.000 | 115.000.000 | 115.000.000 |
| Net Profit / (Loss) for the Period | (246.138.881) | (528.739.724) | 1.144.413.420 | 694.317.791 |
| Earning Per Share (TL) | (2,14) | (4,60) | 9,95 | 6,04 |
The Group has exposure to the following risks from its use of financial instruments:
This note presents information about The Group's exposure to each of the above risks, The Group's objectives, policies and processes for measuring and managing risk, and The Group's management of capital. Further quantitative disclosures are included throughout these financial statements.
Financial risk management is implemented by each subsidiary within the Group according to policies approved by its own Board of Directors, following the general principles established by the Group.
The Group's risk management policies are established with the purpose of identifying and analyzing the risks faced by the Group, setting appropriate risk limits and controls, and monitoring compliance with those limits. Risk management policies and systems are regularly reviewed to reflect changes in the market and Group activities. The Group aims to develop a disciplined and constructive control environment where all employees understand their roles and responsibilities through the implementation of its training and management standards and procedures.
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect The Group's income or value of The Group's financial assets. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.
Notes to the Consolidated Financial Statements
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Market Risk (continued)
The Group is exposed to currency risk due to purchases made in foreign currencies and bank loans. The Group manages this currency risk by engaging in forward foreign exchange contracts and foreign currency options.
As of 30 September 2024, the foreign currency denominated assets and liabilities of monetary and non-monetary items are as follows:
| 30 September 2024 | ||||||
|---|---|---|---|---|---|---|
| TL Equivalent | US Dollar | Euro | GBP | CNY | ||
| 1. Trade receivables | 54.971.694 | 565.062 | 935.025 | -- | -- | |
| 2a. Monetary assets (Including cash on hands and banks) | 73.929 | 53 | 1.889 | -- | 3 | |
| 2b. Non-monetary financial assets | 4.944.036 | -- | 129.522 | -- | -- | |
| 3. Other | 148.068.346 | 1.576.640 | 2.459.689 | -- | 78.960 | |
| 4. Current Assets (1+2+3) | 208.058.005 | 2.141.755 | 3.526.125 | -- | 78.963 | |
| 5. Trade receivables | -- | -- | -- | -- | -- | |
| 6a. Monetary assets | -- | -- | -- | -- | -- | |
| 6b. Non-monetary financial assets | -- | -- | -- | -- | -- | |
| 7. Other | 27.708.075 | 559.408 | 225.837 | -- | -- | |
| 8. Non-Current Assets (5+6+7) | 27.708.075 | 559.408 | 225.837 | -- | ||
| 9. Total Assets (4+8) | 235.766.080 | 2.701.163 | 3.751.962 | -- | 78.963 | |
| 10. Trade payables | 132.197.187 | 1.296.148 | 2.278.239 | 10.814 | 56.123 | |
| 11. Financial liabilities | 28.755.686 | 841.240 | -- | -- | -- | |
| 12a. Other monetary financial liabilities | 6.952.862 | 3.951 | 178.289 | -- | -- | |
| 12b. Other non-monetary financial liabilities | 159.962.709 | 724.397 | 3.534.746 | 689 | -- | |
| 13. Short-Term Liabilities (10+11+12) | 327.868.444 | 2.865.736 | 5.991.274 | 11.503 | 56.123 | |
| 14. Trade payables | -- | -- | -- | -- | -- | |
| 15. Financial Liabilities | 21.242.407 | 621.441 | -- | -- | -- | |
| 16a. Other monetary financial liabilities | -- | -- | -- | -- | -- | |
| 16b. Other non-monetary financial liabilities | 3.441.618 | -- | 90.000 | -- | -- | |
| 17. Long-Term Liabilities (14+15+16) | 24.684.025 | 621.441 | 90.000 | -- | -- | |
| 18. Total Liabilities (13+17) | 352.552.469 | 3.487.177 | 6.081.274 | 11.503 | 56.123 | |
| 19. Net asset/(liability) position of derivative instruments in foreign currencies off the statement of financial position (19a-19b) |
-- | -- | -- | -- | -- | |
| 19a. The amount of foreign currency derivative instruments outside the active character financial statement |
-- | -- | -- | -- | -- | |
| 19b. The amount of foreign currency derivative instruments outside the passive character financial statement |
-- | -- | -- | -- | -- | |
| 20. Net foreign currency asset/liability position (9- 18+19) |
(116.786.389) | (786.014) | (2.329.312) | (11.503) | 22.840 | |
| 21. Net foreign currency asset/ liability position of non-monetary items (TFRS 7. B23) (=1+2a+3+5+6a 10-11-12a-14-15-16a) |
(116.786.389) | (786.014) | (2.329.312) | (11.503) | 22.840 | |
| 22. Fair value of foreign currency hedged financial assets |
-- | -- | -- | -- | -- | |
| 23. Hedged foreign currency assets | -- | -- | -- | -- | -- | |
| 24. Hedged foreign currency liabilities | -- | -- | -- | -- | -- |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
As of 31 December 2023, the items denominated in foreign currencies in terms of monetary assets and liabilities are as follows:
| 31 December 2023 | ||||
|---|---|---|---|---|
| TL Equivalent | US Dollar | Euro | GBP | |
| 1. Trade receivables | 52.177.264 | 762.083 | 490.292 | -- |
| 2a. Monetary assets (Including cash on hands and banks) | 103.611 | 2.470 | 109 | -- |
| 2b. Non-monetary financial assets | 25.151.451 | -- | 568.330 | -- |
| 3. Other | 2.683.035 | 1.962 | -- | 51.202 |
| 4. Current Assets (1+2+3) | 80.115.361 | 766.515 | 1.058.731 | 51.202 |
| 5. Trade receivables | -- | -- | -- | -- |
| 6a. Monetary assets | -- | -- | -- | -- |
| 6b. Non-monetary financial assets | -- | -- | -- | -- |
| 7. Other | -- | -- | -- | -- |
| 8. Non-Current Assets (5+6+7) | -- | -- | -- | -- |
| 9. Total Assets (4+8) | 80.115.361 | 766.515 | 1.058.731 | 51.202 |
| 10. Trade payables | 225.354.006 | 1.266.168 | 3.938.726 | -- |
| 11. Financial liabilities | 14.707.787 | 367.080 | -- | |
| 12a. Other monetary financial liabilities | 208.299.104 | 928.432 | 3.859.266 | -- |
| 12b. Other non-monetary financial liabilities | -- | -- | -- | -- |
| 13. Short-Term Liabilities (10+11+12) | 448.360.897 | 2.561.680 | 7.797.992 | -- |
| 14. Trade payables | -- | -- | -- | -- |
| 15. Financial Liabilities | -- | -- | -- | -- |
| 16a. Other monetary financial liabilities | -- | -- | -- | -- |
| 16b. Other non-monetary financial liabilities | -- | -- | -- | -- |
| 17. Long-Term Liabilities (14+15+16) | -- | -- | -- | -- |
| 18. Total Liabilities (13+17) | 448.360.897 | 2.561.680 | 7.797.992 | -- |
| 19. Net asset/(liability) position of derivative instruments in foreign currencies off the statement of financial position (19a-19b) |
-- | -- | -- | -- |
| 19a. The amount of foreign currency derivative instruments outside the active character financial statement |
-- | -- | -- | -- |
| 19b. The amount of foreign currency derivative instruments outside the passive character financial statement |
-- | -- | -- | -- |
| 20. Net foreign currency asset/liability position (9-18+19) | (368.245.536) | (1.795.165) | (6.739.261) | 51.202 |
| 21. Net foreign currency asset/ liability position of non monetary items (TFRS 7. B23) (=1+2a+3+5+6a-10-11-12a 14-15-16a) |
(368.245.536) | (1.795.165) | (6.739.261) | 51.202 |
| 22. Fair value of foreign currency hedged financial assets | -- | -- | -- | -- |
| 23. Hedged foreign currency assets | -- | -- | -- | -- |
| 24. Hedged foreign currency liabilities | -- | -- | -- | -- |
for the Nine-Month Interim Period Ended 30 September 2024
(The amounts are expressed in terms of purchasing power of Turkish Lira ('TL') as of 30 September 2024, unless otherwise stated)
Sensitivity Analysis
The impact of a 10% depreciation of the Turkish Lira against specified currencies on equity and profit/loss for the years ended 30 September 2024 and 31 December 2023 is shown below. This analysis assumes all other variables, especially interest rates, remain constant.
| 30 September 2024 | ||||
|---|---|---|---|---|
| Profit/(Loss) | ||||
| Appreciation of foreign currency |
Depreciation of foreign currency |
|||
| In the case of change of USD at 10% ratio compared to TL; | ||||
| 1- USD net asset / liability | (2.703.405) | 2.703.405 | ||
| 2- Part of hedged from USD risk (-) | -- | -- | ||
| 3- USD net effect (1+2) | (2.703.405) | 2.703.405 | ||
| In the case of change of EUR at 10% ratio compared to TL | ||||
| 4- EUR net asset / liability | (8.933.149) | 8.933.149 | ||
| 5- Part of hedged from EUR risk (-) | -- | -- | ||
| 6- EUR net effect (4+5) | (8.933.149) | 8.933.149 | ||
| In the case of change of GBP at 10% ratio compared to TL | ||||
| 7- GBP net asset / liability | (52.780) | 52.780 | ||
| 8- Part of hedged from GBP risk (-) | -- | -- | ||
| 9-GBP net effect (7+8) | (52.780) | 52.780 | ||
| In the case of change of CNY at 10% ratio compared to TL | ||||
| 10- CNY net asset / liability | 10.695 | (10.695) | ||
| 11- Part of hedged from CNY risk (-) | -- | -- | ||
| 12- CNY net effect (10+11) | 10.695 | (10.695) | ||
| TOTAL (3+6+9+12) | (11.678.639) | 11.678.639 |
| 31 December 2023 | |||
|---|---|---|---|
| Profit/(Loss) | |||
| Appreciation of foreign currency |
Depreciation of foreign currency |
||
| In the case of change of USD at 10% ratio compared to TL; | |||
| 1- USD net asset / liability | (7.198.214) | 7.198.214 | |
| 2- Part of hedged from USD risk (-) | -- | -- | |
| 3- USD net effect (1+2) | (7.198.214) | 7.198.214 | |
| In the case of change of EUR at 10% ratio compared to TL | |||
| 4- EUR net asset / liability | (29.886.795) | 29.886.795 | |
| 5- Part of hedged from EUR risk (-) | -- | -- | |
| 6- EUR net effect (4+5) | (29.886.795) | 29.886.795 | |
| In the case of change of GBP at 10% ratio compared to TL | |||
| 7- GBP net asset / liability | 260.457 | (260.457) | |
| 8- Part of hedged from GBP risk (-) | -- | -- | |
| 9-GBP net effect (7+8) | 260.457 | (260.457) | |
| TOTAL (3+6+9) | (36.824.552) | 36.824.552 |
None.
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