Union Coop — Interim / Quarterly Report 2024

Nov 5, 2024

Condensed interim financial statements
for the nine month period ended 30 September 2024

Review report and condensed interim financial statements
for the nine month period ended 30 September 2024

Table of contents	Pages
Independent auditors' report on review of condensed interim financial statements	$1 - 2$
Condensed statement of financial position	3
Condensed statement of profit or loss and other comprehensive income	$\overline{4}$
Condensed statement of changes in equity	5
Condensed statement of cash flows	6
Notes to the condensed interim financial statements	$7 - 17$

KPMG Lower Gulf Limited The Offices 5 at One Central Level 4, Office No: 04.01 Sheikh Zayed Road, P.O. Box 3800 Dubai. United Arab Emirates Tel. +971 (4) 4030300, www.kpmg.com/ae

Independent Auditors' Report on Review of Condensed Interim Financial Statements

To the Board of Directors of Union Coop

Introduction

We have reviewed the accompanying 30 September 2024 condensed interim financial statements of Union Coop ("the Society"), which comprises:

• the condensed statement of financial position as at 30 September 2024;
• the condensed statements of profit or loss and other comprehensive income for the threemonth and nine-month periods ended 30 September 2024;
• the condensed statements of changes in equity for the nine month period ended 30 September 2024;
• the condensed statements of cash flows for the nine month period ended 30 September, 2024: and
• notes to the condensed interim financial statements.

Management is responsible for the preparation and presentation of these condensed interim financial statements in accordance with IAS 34, 'Interim Financial Reporting'. Our responsibility is to express a conclusion on these condensed interim financial statements based on our review.

Scope of Review

We conducted our review in accordance with the International Standard on Review Engagements 2410. "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

1

KPMG Lower Gulf Limited, licensed in the United Arab Emirates, and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by

Union Coop Independent Auditors' Report on Review of Condensed Interim Financial Statements 30 September 2024

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying 30 September 2024 condensed interim financial statements are not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'.

Other Matter - Comparative Information

The condensed interim statements of profit or loss and other comprehensive income for the three and nine month periods ended 30 September 2023, condensed interim statements of changes in equity, cash flows for the nine month period then ended and notes for three and nine month periods then ended were not reviewed.

Report on Other Legal and Regulatory Requirements

Based on the information that has been made available to us, except for the fact the Society has not complied with a number of clauses in the UAE Federal Law No. (6) of 2022 pertaining to co-operative societies and/or its articles of associations, relating to percentage of dividend declared, sufficiency of legal reserve and updation of articles of association, nothing else has come to our attention which causes us to believe that the Society has contravened during the nine month period ended 30 September 2024 any of the applicable provisions of the UAE Federal Law No. (6) of 2022 pertaining to co-operative societies or its Articles of Association, which would materially affect its activities or its financial position as at 30 Scotember 2024.

KPMG Lower Gulf Limited

Fawzi AbuRass Registration No.: 968 Dubai, United Arab Emirates

Date: 5 November 2024

KPMG Lower Gulf Limited, licensed in the United Arab Emirates, and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by

Condensed statement of financial position

as at

יאי	Note	30 September 2024 31 December 2023
		AED	AED
		(unaudited)	(audited)
ASSETS			2,034,869,295
Property and equipment	4	2,034,428,555	426,032,389
Investment properties		473,729,520 1,822,702	4,871,333
Intangible assets		432,693,711	440,971,538
Right of use assets		18,684,605	17,096,822
Capital advances		6,145,588	6,145,588
Investment in associate		______	-----------------
Non-current assets		2,967,504,681	2,929,986,965 ----------------
Inventories	5	320,098,751	285,420,170
Trade and other receivables	6	62,008,275	74,771,750
Short-term deposits	7	10,023,035	70,000,000
Cash and cash equivalents	7	58,667,874 -----------------	84,668,150 ---------------
Current assets		450,797,935	514,860,070
Total assets		, __ 3,418,302,616 _	3,444,847,035 $- - - - - - - - - -$
EQUITY AND LIABILITIES
Equity		1,764,138,140	1,764,138,140
Share capital	8	882,069,070	882,069,070
Legal reserve		(223, 368)	(223, 368)
Defined benefit obligations reserve		7,106,015	23,363,323
Community responsibility reserve			$(95,527,209)$ $(95,527,209)$
Treasury stock		(90, 470, 474)	(22, 569, 572)
Accumulated losses		------------------	----------------
Total equity		2,467,092,174	2,551,250,384
Liabilities		53,284,441	69,726,574
Employees' end of service benefits Lease liability		432,930,998	433,136,700
Non-current liabilities		----------------- 486,215,439	----------------- 502,863,274
	10	444,997,316	---------------- 371,572,927
Trade and other payables Lease liability		19,997,687 -----------------	19,160,450 __
Current liabilities		464,995,003 -----------------	390,733,377 -------------
Total liabilities		951,210,442 ---------------	893,596,651 ___
Total equity and liabilities		3,418,302,616	3,444,847,035 ===========
		___

To the best of our knowledge, the condensed interim financial statements for the nine month period ended 30 September 2024 are prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting'. The condensed interim financial statements were authorised for issue by the Society's board of directors on 5 November

1. Chairman

$CEO$

The independent auditors' report on review of condensed interim financial statements is set out on pages 1 and 2. The notes on pages 7 to 17 are an integral part of these condensed interim financial statements.

Condensed statement of profit or loss and other comprehensive income For the nine month and three month periods ended 30 September 2024

		Nine month period ended		Three month period ended
		30 September	30 September	30 September	30 September
		2024	2023	2024	2023
	Note	AED	AED	AED	AED
		(unaudited)	(unaudited)	(unaudited)	(unaudited)
Income from sale of goods	12	1,392,344,080	1,326,625,807	430,015,694	411,612,811
Income from other operating
activities		457,842,906	439,913,273	145,357,494	136,438,966
Other income		7,270,174	4,951,667	1,086,397	1,729,796
Finance income		1,489,078	868,384	69,065	52,925
Cost of goods		(1, 191, 932, 291)	(1,130,628,916)	(374, 506, 682)	(354, 394, 605)
Staff costs		(164, 287, 430)	(228, 584, 051)	(53,084,640)	(73, 406, 423)
Depreciation and
amortization expenses		(70, 019, 849)	(66, 195, 841)	(23, 834, 199)	(23, 162, 379)
Utilities expenses		(57, 598, 725)	(58, 329, 624)	(25,668,197)	(26, 159, 117)
Marketing expenses		(23,910,423)	(20, 159, 754)	(8,422,670)	(6, 549, 159)
Finance costs		(22, 458, 477)	(21, 012, 487)	(7,749,410)	(7,669,175)
Repair and maintenance
expenses		(9,391,126)	(11,514,219)	(3,555,168)	(3,890,009)
Impairment loss on trade and
other receivables		(4,843,211)	(2,783,508)	976,450
Other expenses		(54, 943, 872)	(36,965,850)	(21, 488, 758)	(9,860,347)
Profit before tax, directors'
remuneration and community responsibility
expenses		259,560,834	196,184,881	59,195,376	44,743,284
Directors' remuneration
expense		(6,750,000)	(6,750,000)
Community responsibility
expenses		(16, 257, 308)	(11, 727, 409)	(4,380,235)	(2,360,186)
Profit before tax and after directors' remuneration
and community
responsibility expenses		236,553,526	177,707,472	54,815,141	42,383,098
Taxation	15	(23, 849, 580)		(5,251,590)
Profit after tax		212,703,946	177,707,472	49,563,551	42,383,098
Earnings per share - Basic	9	0.12	0.10	0.03	0.02
Earnings per share - Diluted	9	0.12	0.10	0.03	0.02

The independent auditors' report on review of condensed interim financial statements is set out on pages 1 and 2.

The notes on pages 7 to 17 are an integral part of these condensed interim financial statements.

ì
٦ ì

Condensed statement of changes in equity
for the nine month period ended 30 September 2024

	Share capital AED	reserve AED $\mathbf{Legal}$	reserve responsibility Community AED	reserve obligations benefit Defined AED	Retained (Accumulated losses) AED earnings/	stock Treasury AED	Total AED
Total comprehensive income for the At 1 January 2023	1,764,138,140	97,074 946,4	8,619,749		56,692,546	(95, 527, 209)	2,680,420,300
Profit for the period (unaudited) period					177,707,472		177,707,472
Total comprehensive income for the period	Ţ				177,707,472		177,707,472
Transactions with shareholders Dividend paid					(425,808,712)		(425,808,712)
Jtilization of reserve against spending Transfer from legal reserve		(64, 428, 004)	(8, 619, 749)		8,619,749 64.428.004
At 30 September 2023 (unaudited)	1,764,138,140	69,070 882,0			(118,360,941)	(95,527,209)	2,432,319,060
Total comprehensive income for the At 1 January 2024	1,764,138,140	69,070 882,0	23,363,323	(223, 368)	(22, 569, 572)	(95, 527, 209)	2,551,250,384
Profit for the period (unaudited) period					212,703,946		212,703,946
Total comprehensive income for the period					212,703,946		212,703,946
Transactions with shareholders Dividend paid			(16,257,308)		16.257.308 (296, 862, 156)		(296, 862, 156)
Utilization of reserve against spending At 30 September 2024 (unaudited)	1,764,138,140	169,070 882,0	7,106,015	(223, 368)	(90,470,474)	(95, 527, 209)	2,467,092,174

The notes on pages 7 to 17 are an integral part of these condensed interim financial statements.

Condensed statement of cash flows

for the nine month period ended 30 September

	Note	2024 (unaudited) AED	2023 (unaudited) AED
Cash flows from operating activities
Profit before tax for the period Adjustments for:		236,553,526	177,707,472
Adjustment of right of use and lease liability - net			(1, 284, 764)
Impact of lease liability modification		(208, 651)
Depreciation and amortization		70,019,849	66,195,841
Loss/ (gain) on disposal of property and equipment and
investment properties		123,269	(96, 383)
Provision for employee benefits		3,075,510	6,667,761
Impairment loss of trade and other receivables		4,843,211	2,783,508
Provision for slow moving inventories		644,231	548,396
Finance income		(1,489,078)	(868, 384)
Finance costs – interest on lease liability		10,751,001 324,312,868	10,921,975 262,575,422
Change in:
Inventories	5	(35,322,812)	(8,169,547)
Trade and other receivables	6	7,920,264	(15,917,588)
Trade and other payables	10	49,574,809	31,644,798
Cash generated from operating activities		346,485,129	270,133,085
Payment of employees' end of service benefits		(19,517,643)	(7,806,945)
Net cash from operating activities		326,967,486	262,326,140
Cash flows from investing activities
Interest received		1,489,078	868,384
Acquisition of property and equipment		(94,008,191)	(168, 695, 193)
Acquisition of investment properties			(192, 808)
Acquisition of intangible assets		(398, 025)	(2,370,110)
Proceeds from sale of property and equipment		180,445	172,251
Cash used in investing activities		(92, 736, 693)	(170, 217, 476)
Change in: Short-term deposits		59,976,965	211,000,000
Capital advances		(1,587,783)	75,058,440
Net cash (used in)/ from investing activities		(34, 347, 511)	115,840,964
Cash flows from financing activities Dividend paid
Payment of lease liability		(296, 862, 156) (21,758,095)	(425,808,712) (21, 811, 727)
Cash used in financing activities		(318, 620, 251)	(447, 620, 439)
Net decrease in cash and cash equivalents		(26,000,276)	(69, 453, 335)
Cash and cash equivalents at 1 January		84,668,150	182,594,227
Cash and cash equivalents at 30 September	7	58,667,874	113,140,892

The independent auditors' report on review of condensed interim financial statements is set out on pages 1 and 2.

The notes on pages 7 to 17 are an integral part of these condensed interim financial statements.

Notes to the condensed interim financial statements for the nine month period ended 30 September 2024

$\mathbf{1}$ . Legal status and activities

Union Coop ("the Society") is registered as a Co-Operative Society in the Emirate of Dubai via a ministerial decree No. 31/2, dated 24 May 1982, issued by the Ministry of Social Affairs and is registered with the Federal Authority under No. 12 in the Co-operative management records. The registered office address of the Society is P.O. Box 3861, Dubai, United Arab Emirates. The Society changed its name from Union Cooperative Society to Union Coop on 1 August 2016. In August 2022 the Federal Decree- Law No. 6 of 2022 on cooperatives was released to govern the cooperatives in the United Arab Emirates, the law came into effect in December 2022.

The principal activity of the Society is establishing and managing hypermarkets in the United Arab Emirates ("UAE"). The purpose of incorporation of the Society is to improve the social and economic affairs of its members and to serve the society by following the co-operative principles documented in the Society's Memorandum of Association and the UAE Federal Law No. 6 of 2022 pertaining to co-operative societies.

On 18 July 2022, the Society listed 100% ordinary shares on the Dubai Financial Market ("DFM" or the "Exchange"). The share capital of the Society comprises of undividable shares of AED 1 each payable in full on application to be a member of the Society. Each member is entitled to a share in the Society's share capital up to a maximum of 10%.

For each member one vote is allowed in the general assembly, regardless of the number of shares owned by a particular member.

$2.$ Basis of preparation

Statement of compliance

These condensed interim financial statements for the nine month period ended 30 September 2024 have been prepared in accordance with International Accounting Standard ("IAS") 34 "Interim Financial Reporting" and the requirements of UAE Federal Decree Law No. (6) of 2022 on cooperatives issued on 17 August 2022 and came into effect on 1 December 2022 ("the new law") which repealed UAE Federal Law No. 13 of 1976 on co-operative societies ("the old law").

The Society has adopted the new law whereas they are still in the process of updating their articles of associations.

Basis of accounting

The condensed interim financial statements have been prepared on the historical cost basis.

The accounting policies used in the preparation of these condensed interim financial statements are consistent with those used in the audited financial statements for the year ended 31 December 2023.

These condensed interim financial statements do not contain all information and disclosures required for full financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and should be read in conjunction with the Society's last annual financial statements for the year ended 31 December 2023. However, selected explanatory notes are included to explain events and transactions that are significant to an understanding of the changes in the Society's financial position and performance since the last annual financial statements. In addition, results for the nine month period ended 30 September 2024 are not necessarily indicative of the results that may be expected for the full financial year ending 31 December 2024.

These condensed interim financial statements have been prepared in United Arab Emirates Dirhams (AED). which is the Society's functional and presentation currency.

Use of judgements and estimates

In preparing these condensed interim financial statements, significant judgments made by the management in applying the Society's accounting policies and the key sources of estimation were the same as those that were applied to the financial statements as at and for the year ended 31 December 2023.

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

$2.$ Basis of preparation (continued)

Financial risk management

The Society's activities potentially expose it to a variety of financial risks as follows:

• Market risk (including currency risk, price risk, cash flow);
• Credit risk; and
• Liquidity risk

The condensed interim financial statements do not include all financial risk management information and disclosures required in the annual financial statement, and should be read in conjunction with the Society's annual financial statements as at 31 December 2023. The Society's financial risk management objectives and policies are consistent with those disclosed in the financial statements as at and for the year ended 31 December 2023.

Seasonality of operations

The Society does not experience material seasonality in operations and revenue and profits are expected to be consistent throughout the period.

3. Operating segments

Basis for segmentation A.

IFRS 8 requires operating segments to be identified on the basis of internal reports about components of the Society that are regularly reviewed by the Board of Directors in order to allocate resources to the segment and to assess its performance.

Information reported to the Society's Board of Directors for the purposes of resource allocation and assessment of segment performance is specifically focused on the type of business activities undertaken as a Society. For operating purposes, the Society is organized into three major business segments:

• Retail: business from operations in relation to the sale of goods at hypermarkets; $(i)$
• E-commerce: business from the online shopping platforms of the Society; and $(ii)$
• $(iii)$ Investment: rental business from shopping centers.

The following table presents information regarding the Society's operating segments for the nine month and three month periods ended 30 September 2024 and 30 September 2023 (The disclosures in the tables below have been prepared using the same accounting policies as those applied to prepare the financial statements):

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

Operating segments (continued) $3.$

Information about reportable segments B.

	Retail Segment	E-commerce Segment	Investment Segment	Total
For the nine month period ended 30 September 2024	AED' 000	AED' 000	AED' 000	AED' 000
Income from sale of goods	1,296,498	95,846		1,392,344
Income from other operating activities	330,505	7,304	120,033	457,842
Other income	6,636	54	580	7,270
Finance income	1,362		127	1,489
Cost of goods	(1, 111, 582)	(80, 350)		(1, 191, 932)
Staff costs	(141, 168)	(4,277)	(18, 843)	(164, 288)
Depreciation and amortization expenses	(54,056)	(86)	(15, 877)	(70, 019)
Utilities expenses	(43, 496)	$\overline{a}$	(14, 103)	(57, 599)
Marketing expenses	(18, 041)	(5,557)	(312)	(23,910)
Finance costs	(19,786)	(772)	(1,900)	(22, 458)
Repair and maintenance expenses	(6,979)	(63)	(2,349)	(9,391)
Impairment loss on trade and other
receivables	(4, 416)		(427)	(4, 843)
Other expenses	(22, 843)	(1, 467)	(30, 634)	(54, 944)
Profit before tax, directors' remuneration and community responsibility expenses	212,634	10,632	36,295	259,561
	Retail	E-commerce	Investment	Total
	segment	Segment	Segment
For the nine month period ended 30 September 2023	AED' 000	AED' 000	AED' 000	AED' 000
Income from sale of goods	1,256,334	70,292		1,326,626
Income from other operating activities	324,829	4,882	110,202	439,913
Other income	4,614		338	4,952
Finance income	789		79	868
Cost of goods	(1,069,150)	(61, 479)		(1, 130, 629)
Staff costs	(209,778)	(5,203)	(13,603)	(228, 584)
Depreciation and amortization expenses	(50, 858)	(84)	(15,254)	(66, 196)
Utilities expenses	(44, 286)		(14, 044)	(58, 330)
Marketing expenses	(14,200)	(4, 815)	(1, 145)	(20, 160)
Finance costs	(20, 290)	(501)	(221)	(21, 012)
Repair and maintenance expenses	(8, 331)		(3, 183)	(11, 514)

r mance costs	(ZV.ZYU)	. JU L J	(22 L J	(L1.012)
Repair and maintenance expenses	(8,331)	$\blacksquare$	(3,183)	(11,514)
Impairment loss on trade and other
receivables	(2,530)	$\overline{\phantom{0}}$	(253)	(2,783)
Other expenses	(6.963)	70I)	(29.902)	(36.966)
Profit before tax, directors' remuneration and	160.180	2.991	33,014	196.185
community responsibility expenses

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

3. Operating segments (continued)

B. Information about reportable segments (continued)

	Retail Segment	E-commerce Segment	Investment Segment	Total
For the three month period ended 30 September 2024	AED' 000	AED' 000	AED' 000	AED' 000
Income from sale of goods	398,145	31,871		430,016
Income from other operating activities	100,621	3,327	41,409	145,357
Other income	965	51	70	1.086
Finance income	54		15	69
Cost of goods	(348, 499)	(26,008)		(374, 507)
Staff costs	(45, 828)	(1, 546)	(5,711)	(53,085)
Depreciation and amortization expenses	(13, 937)	(29)	(9,868)	(23, 834)
Utilities expenses	(19, 429)		(6,239)	(25,668)
Marketing expenses	(6, 455)	(1,979)	11	(8, 423)
Finance costs	(6, 838)	(277)	(634)	(7,749)
Repair and maintenance expenses Impairment loss on trade and other	(2,822)	(25)	(708)	(3, 555)
receivables	1,403		(427)	976
Other expenses	6,685	(911)	(27, 262)	(21, 488)
Profit before tax, directors' remuneration and community responsibility expenses	64,065	4,474	(9, 344)	59,195
	Retail	E-commerce	Investment	Total
	segment	Segment	Segment
For the three month period ended	AED' 000	AED' 000	AED' 000	AED' 000
30 September 2023
Income from sale of goods	386,895	24,718		411,613
Income from other operating activities	96,108	1,523	38,808	136,439
Other income	1,617		113	1,730
Finance income	22		31	53.
Cost of goods	(332, 935)	(21, 460)		(354, 395)
Staff costs	(64, 790)	(1,716)	(6,900)	(73, 406)
Depreciation and amortization expenses	(17, 723)	(27)	(5, 412)	(23, 162)
Utilities expenses	(19, 286)		(6, 873)	(26, 159)
Marketing expenses	(4, 362)	(1, 878)	(309)	(6, 549)
Finance costs	(7, 408)	(185)	(76)	(7,669)
Repair and maintenance expenses	(3,075)		(815)	(3,890)
Impairment loss on trade and other			(254)
receivables	254	(45)		(9, 862)
Other expenses	14,177		(23, 994)
Profit before tax, directors' remuneration and community responsibility expenses	49,494	930	(5,681)	44,743

There were no inter-segment sales during the period. All Revenue are earned in the United Arab Emirates. Allocation of expenses are determined by management for resource allocation purpose. The accounting policies of the reportable segments are the same as the Society's accounting policies used in the audited financial statements for the year ended 31 December 2023.

For the purposes of monitoring segment performance and allocating resources between segments, all assets and liabilities are common within the operating segments and mainly relate to retail segment with exception to investment properties that relate to investment segment.

7

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

Property and equipment नं

	Land AED	Buildings AED	hardware AED Computer	vehicles AED Motor	Furniture and fixtures AED	and tools Equipment AED	AED in progress Capital work	AED Total
Cosis
At 1 January 2023	1,183,956,098	971,941,951	29,965,473	16.912.021	35,121,750	197,246,741	209,043,373	2,644,187,407
Additions	78,334,921	2,180,779	2,272,346		4,557,246	18,209,358	104,057,503	209,612,153
Transfers		190,778,379	732,136		714,813	2,322,497	(194, 547, 825)
Transfers to intangible assets							(19, 917)	(19.917)
Transfer to investment properties		(113,332,081)						(113,332,081)
Disposals		(6,300)	(222, 498)		258,369)	(3,001,829)		(3,488,996)
At 1 January 2024	1,262,291,019	1,051,562,728	32,747,457	16,912,02	40.135,440	214,776,767	118,533.134	2,736,958,566
Additions		24,710,059	899.346		2,585,590	8,231,558	60.815.348	97,241,901
Transfers		129,626,376	272,398		157,798	1,110,356	(131, 166, 928)
Transfers to intangible assets							(3,518)	(3,518)
Transfer to investment properties		(58,219,679)						(58,219,679)
Disposals			(526.809)		(277.817)	(3.566.700)	(22.610)	(4.393.936)
At 30 September 2024	1,262,291,019	1,147,679,484	33,392,392	16.912.021	42,601,011	220,551,981	48,155,426	2,771,583,334
Accumulated depreciation and
impairment losses At 1 January 2023	234,007,351	244,284,571	23,530,084	11,838,950	23,088,630	127, 104, 445	14.984.975	678,839,006
Net impairment or reversal of
impairment during the year	(21, 588, 473)	8,536,927						(13,051,546)
Transfer to investment properties		(11, 563, 438)						(11, 563, 438)
Charge for the year		25,012,739	2,635,253	1,175,646	5,422,102	17,007,263		51,253,003
On disposals		(5.55)	(221.442)		(248.222)	(2.912, 535)		(3.387,754)
At 1 January 2024	212,418,878	266,265,244	25.943.895	13.014.596	28.262.510	141.199.173	14,984,975	702,089,271
Charge for the period		29,134,526	2,044,725	790,145	4,616,423	13,069,849		49,655,668
Transfer to investment properties		(10, 522, 548)						(10, 522, 548)
On disposals			(525, 855)		(269.995)	(3,271,762)		(4,067,612)
At 30 September 2024	212,418,878	284,877,222	27,462,765	13,804,741	32,608,938	150,997,260	14,984,975	737,154,779
At 31 December 2023 Net carrying amount	1,049,872,141	785,297,484	6,803,562	3,897,425	11,872,930	73,577,594	103,548,159	2,034,869,295
At 30 September 2024	1,049,872,141	862,802,262	5,929,627	3,107,280	9,992,073	69,554,721	33,170451	2,034,428,555

$\overline{1}$

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

Property and equipment (continued) $\overline{4}$ .

a) Certain buildings of the Society are constructed on plots of land granted by H.H. Ruler of Dubai. These plots of land are recorded in the Society's books at nominal value of AED 1.

b) Capital work in progress primarily represents the costs incurred by the Society for construction of new shopping centers in Khawaneej and Nad Al Sheeba (completion expected in 2025-2026). Included in capital work in progress an amount of capitalised finance costs related to leased lands and buildings amounting to AED 1,616,846.

5. Inventories

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Goods for resale	309,291,385	275,190,679
Imported goods for sale	8,388,525	5,534,770
Less: provision for slow moving imported inventories	(4,089,901)	(3,445,670)
	313,590,009	277, 279, 779
Consumables	6,508,742	7,069,911
Goods in transit		1,070,480
	320,098,751	285,420,170

The movement in the provision for slow moving imported inventories is as follows:

	30 September 2024	31 December 2023
	AED	AED
	(unaudited)	(audited)
At the beginning of the period/year	3,445,670	3,318,348
Additions for the period/year	1,000,000	127,322
Write back for the period/year (net)	(355,769)
At the ending of the period/year	4,089,901	3,445,670

The Society has the right to return or substitute the expired or slow moving good purchased from local suppliers, therefore the local inventory is not subject to impairment as per the agreements with the suppliers. However, imported goods are subject to inventory losses and accordingly are measured at lower of cost or net realizable value.

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

6. Trade and other receivables

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Trade receivables	22,817,790	21,812,999
Rent receivables	22,348,888	28,027,156
Accrued income on short-term deposits	11,576	584,762
Due from a related party	9,053,465	5,410,084
Prepaid expenses	14,036,979	6,693,891
Advance to suppliers	2,168,410	12,846,489
Other receivables	34,484,583	37,531,272
	104,921,691	112,906,653
Less: provision for impairment loss	(42, 913, 416)	(38, 134, 903)
	62,008,275	74,771,750

Movement in the provision for impairment loss of trade and other receivables is as follows:

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Opening balance	38,134,903	23,455,021
Written-off	(64, 698)	(5,824,917)
Charge for the period/ year	4.843,211	20,504,799
Closing balance	42,913,416	38,134,903
Cash and cash equivalents
	30 September	31 December

	2024	2023
	AED	AED
	(unaudited)	(audited)
Cash at bank	56,765,618	82,210,398
Cash on hand	1,902,256	2,457,752
	58,667,874	84,668,150

As at 30 September 2024, the short-term deposits with banks were AED 10,023,035 (31 December 2023: AED 70,000,000)

8. Legal reserve

In accordance to article 44 (a) of the Society's Memorandum of Association and the requirements of UAE Federal Law No. 13 of 1976 pertaining to co-operative societies, a minimum of 20% of the net profit is allocated to a legal reserve. Such allocation may be ceased when the legal reserve equals to two times the paid-up share capital of the Society.

In accordance with the new issued Federal Decree-Law No. 6 of 2022 on cooperative ("the new law"). 10% of the profit for the year is transferred to a legal reserve, which is not distributable. Transfers to this reserve are required to be made until such time as it equals at least 50% of the paid-up share capital. Transfers to the legal reserve have not been made during the current period as a result of reaching the 50% capital rule. The Society has adopted the new law before updating its Articles of Associations.

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

9. Earnings per share

Earnings per share is calculated by dividing the profit for the period attributable to the shareholders of the Society, amounting to AED 213 million (2023: AED 178 million) by the weighted average number of shares outstanding during the period excluding treasury shares, of 1,745,570,120 (2023: 1,745,570,120).

The Society has not issued any instruments which would have a dilutive impact on earnings per share when exercised.

10. Trade and other payables

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Trade payables	241,397,067	188,819,302
Provision for staff expenses	31,464,651	25,839,331
Retentions payable	19,525,706	31,858,156
Due to a related party	1,131,002	1,769,725
Accruals	18,593,009	10,771,115
Tax payable	23,849,580
Unearned income	30,159,755	29,559,301
Other payables	78,876,546	82,955,997
	444,997,316	371,572,927

11. Related party transactions and balances

The Society, in the normal course of business, carries out transactions with other business entities that fall within the definition of a related party as per IAS 24. Related parties comprise the Society's directors, associates and other businesses over which the members have the ability to control or exercise significant influence over their financial and operating decisions and key management personnel.

$(a)$ Related party transactions

During the period, the following significant transactions were carried out with related parties:

	Nine month period ended	Nine month period ended	Three month period ended	Three month period ended
	30 September	30 September	30 September	30 September
	2024	2023	2024	2023
	AED	AED	AED	AED
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Purchases of goods from Consumer
Co-operative Union-(associate)	11,592,054	14,290,212	3,186,339	3,520,200
Payment to Consumer Co-
operative Union-(associate)	11,105,606	16,757,910	3,318,658	3,210,000
Sales to Umm Al Quwain Co- operative-(affiliate)	4,142,347	1,884,635	1,639,076	260,188
Net payments on behalf of Umm Al Quwain Co-operative	4,300,000		300,000

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

11. Related party transactions and balances (continued)

$(b)$ Key management remuneration excluding Board of Directors

	Nine month period ended	Nine month period ended	Three month period ended	Three month period ended
	30 September	30 September	30 September	30 September
	2024	2023	2024	2023
	AED	AED	AED	AED
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Salaries and short term benefits Provision for end of service	11,823,748	11,282,973	6,224,820	3,173,812
benefits	193,694	156,854	132,048	800,292
Contribution paid to social security
scheme	337,500	400,000	162,500	175,000

Compensation to the Board of Directors $(c)$

	Nine month period ended 30 September	Nine month period ended	Three month period ended 30 September 30 September	Three month period ended 30 September
	2024 AED (unaudited)	2023 AED (unaudited)	2024 AED (unaudited)	2023 AED (unaudited)
Board of Directors' remuneration	6,750,000	6,750,000	-

Related party balances $\overline{a}$

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Due to a related party
Consumer Co-operative Union (associate)	1,131,002	1,769,725
Due from a related party
Umm Al Quwain Co-operative (affiliate)	9,053,465	5,410,084

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

Income from sale of goods 12.

	Nine month	Nine month	Three month	Three month
	period ended	period ended	period ended	period ended
	30 September	30 September	30 September	30 September
	2024	2023	2024	2023
	AED	AED	AED	AED
	(unaudited)	(unaudited)	(unaudited)	(unaudited)
Sale of goods - Retail	1,390,364,315	1,326,953,503	429,573,103	413,573,771
Discounts - Retail	(93, 865, 753)	(70,619,732)	(31, 427, 842)	(26, 678, 652)
	1.296,498,562	1,256,333,771	398,145,261	386,895,119
Sale of goods - E-commerce	103,093,826	72,858,587	35,338,487	27,066,113
Discounts - E-commerce	(7,248,308)	(2, 566, 551)	(3,468,054)	(2,348,421)
	95,845,518	70,292,036	31,870,433	24,717,692
Total sales of goods (refer to (i)
below)	1.392,344,080	1,326,625,807	430,015,694	411,612,811

(i) This income relates to sales of goods to customers in the supermarkets and through e-commerce. Products sold are transferred at a point in time.

13. Commitments and contingencies

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Capital commitments	62,644,888	91,025,625
Letters of credit		2,964,912
Letters of guarantee	2,034,958	2,034,958
Liens		5,865,525

14. Financial instruments by category

	30 September	31 December
	2024	2023
	AED	AED
	(unaudited)	(audited)
Financial assets - amortised costs
Trade receivables and other receivables
(excluding prepayments and advance to suppliers)	88,716,302	93,366,273
Short-term deposits	10,023,035	70,000,000
Cash at bank	56,765,618	82,210,398
	155,504,955	245,576,671
Financial liabilities - other financial liabilities
Lease liabilities	452,928,687	452,297,150
Trade and other payables (excluding unearned income and tax
payable )	390,987,981	342,013,626
	843,916,668	794,310,776

Due to the short-term nature of the financial assets and liabilities, their carrying amount is considered to be the same as their fair value.

Notes to the condensed interim financial statements (continued) for the nine month period ended 30 September 2024

15. Corporate tax

On 9 December 2022, the UAE Ministry of Finance released Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses ("UAE CT Law" or the "Law") to enact a Federal corporate tax ("CT") regime in the UAE. Current taxes shall be accounted for as appropriate in the financial statements for the period beginning on 1 January 2024.

The taxable income of the entities that are in scope for UAE CT purposes will be subject to the rate of 9% corporate tax.

The Society's effective tax rate in respect of continuing operations for the nine month period ended 30 September 2024 was 10.08% (nine month ended 30 September 2023: Nil) since the new CT Law has become effective for accounting periods beginning on or after 1 June 2023. The income tax expense recognised in each interim period is based on the best estimate of the weighted-average annual income tax rate expected for the full year applied to the pre-tax income of the interim period.

The major components of income tax expense for the nine month and three month periods ended 30 September 2024 and 30 September 2023 are:

	Nine month period ended 30 September 2024 AED (unaudited)	Nine month period ended 30 September 2023 AED (unaudited)	Three month period ended 30 September 2024 AED (unaudited)	Three month period ended 30 September 2023 AED (unaudited)
Condensed interim statement of profit or loss
Current tax (charge) / income: - Current tax charge	(23, 849, 580)		(5,251,590)
Deferred tax (charge) / income - Relating to origination and
reversal of temporary differences - Relating to enactment of UAE corporate income tax
Tax expense for the period reported in the condensed statement of profit
or loss	(23,849,580)		(5,251,590)

16. Subsequent events

No subsequent events are known that might have a material influence on the assets, liabilities, financial position and profit or loss of the Society.