Quarterly Report • Aug 16, 2024
Quarterly Report
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CONVENIENCE TRANSLATION INTO ENGLISH OF CONDENSED FINANCIAL STATEMENTS FOR THE INTERIM PERIOD 1 JANUARY – 30 JUNE 2024
(ORIGINALLY ISSUED IN TURKISH)
| STATEMENT OF FINANCIAL POSITION (BALANCE SHEET) | 1-4 |
|---|---|
| STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 5-6 |
| STATEMENTS OF CHANGES IN EQUITY | 7 |
| STATEMENTS OF CASH FLOWS | 8-10 |
| NOTE 1 | COMPANY'S ORGANISATION AND NATURE OF OPERATIONS | 11 |
|---|---|---|
| NOTE 2 | BASIS OF PRESENTATION OF FINANCIAL STATEMENTS | 12-18 |
| NOTE 3 | SEGMENT REPORTING | 19 |
| NOTE 4 | CASH AND CASH EQUIVALENTS | 20 |
| NOTE 5 | FINANCIAL LIABILITIES 20-22 | |
| NOTE 6 | RELATED PARTY DISCLOSURES 23-26 | |
| NOTE 7 | TRADE RECEIVABLES AND PAYABLES | 27 |
| NOTE 8 | OTHER RECEIVABLES AND PAYABLES | 28 |
| NOTE 9 | INVENTORIES | 29 |
| NOTE 10 | PREPAID EXPENSES | 29 |
| NOTE 11 | PROPERTY, PLANT AND EQUIPMENT | 30-31 |
| NOTE 12 | RIGHT OF USE ASSETS | 32 |
| NOTE 13 | INTANGIBLE ASSETS | 33 |
| NOTE 14 | PROVISIONS, CONTINGENT ASSETS AND LIABILITIES | 34-36 |
| NOTE 15 | COMMITMENTS | 37 |
| NOTE 16 | EMPLOYEE BENEFITS 37-39 | |
| NOTE 17 | OTHER ASSETS AND LIABILITIES | 40 |
| NOTE 18 | CAPITAL, RESERVES AND OTHER EQUITY ITEMS | 40-41 |
| NOTE 19 | SALES | 42 |
| NOTE 20 | OTHER INCOME AND EXPENSE FROM OPERATING ACTIVITIES | 42 |
| NOTE 21 | FINANCIAL INCOME AND FINANCIAL EXPENSE | 43 |
| NOTE 22 | TAXES ON INCOME (INCLUDING DEFERRED TAX ASSETS AND LIABILITIES) 43-47 | |
| NOTE 23 | EARNINGS PER SHARE | 48 |
| NOTE 24 | DERIVATIVE INSTRUMENTS | 48 |
| NOTE 25 | FINANCIAL INSTRUMENTS AND FINANCIAL RISK MANAGEMENT 48-52 | |
| NOTE 26 | FINANCIAL INSTRUMENTS (FAIR VALUE AND HEDGE ACCOUNTING DISCLOSURES) | 53 |
| NOTE 27 | SUBSEQUENT EVENTS | 54 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Audited | ||
|---|---|---|---|
| Notes | 30 June 2024 | 31 December 2023 | |
| ASSETS | |||
| CURRENT ASSETS | |||
| Cash and Cash Equivalents | 4 | 127.667 | 909.989 |
| Financial Assets | 12.242 | 11.187 | |
| Trade Receivables | 15.498.980 | 17.327.992 | |
| Trade Receivables Due from Related Parties | 6 | 14.897.079 | 16.688.642 |
| Trade Receivables Due from Third Parties | 7 | 601.901 | 639.350 |
| Other Receivables | 1.805.681 | 4.508.744 | |
| Other Receivables Due from Related Parties | 6 | 814.621 | 3.273.369 |
| Other Receivables Due from Third Parties | 8 | 991.060 | 1.235.375 |
| Derivative Financial Instruments | 24 | 254.865 | 43.752 |
| Inventories | 9 | 11.399.165 | 9.025.011 |
| Prepaid Expenses | 1.132.173 | 1.095.747 | |
| Prepayments to Related Parties | 6 | 616.385 | 423.633 |
| Prepayments to Third Parties | 10 | 515.788 | 672.114 |
| Current Tax Assets | 22 | 107 | 20.575 |
| Other Current Assets | 130.794 | 105.869 | |
| Other Current Assets Due from Third Parties | 17 | 130.794 | 105.869 |
| TOTAL CURRENT ASSETS | 30.361.674 | 33.048.866 | |
| NON-CURRENT ASSETS | |||
| Other Receivables | 6.633 | 7.493 | |
| Other Receivables Due from Third Parties | 6.633 | 7.493 | |
| Property, Plant and Equipment | 11 | 27.033.749 | 26.918.783 |
| Right of Use Assets | 12 | 885.549 | 837.175 |
| Intangible Assets | 13 | 2.051.814 | 1.721.005 |
| Prepaid Expenses | 1.270.442 | 974.079 | |
| Prepaid Expenses to Related Parties | 6 | 820.060 | 703.286 |
| Prepayments to Third Parties | 10 | 450.382 | 270.793 |
| TOTAL NON-CURRENT ASSETS | 31.248.187 | 30.458.535 | |
| TOTAL ASSETS | 61.609.861 | 63.507.401 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Audited | ||
|---|---|---|---|
| Notes | 30 June 2024 | 31 December 2023 | |
| LIABILITIES | |||
| CURRENT LIABILITIES | |||
| Short Term Borrowings | 3.144.900 | 2.697.335 | |
| Short Term Borrowings from Related Parties | 5.670 | 4.434 | |
| Lease Liabilities | 5,6 | 5.670 | 4.434 |
| Short Term Borrowings from Third Parties | 3.139.230 | 2.692.901 | |
| Bank Loans | 5 | 3.119.405 | 2.684.732 |
| Lease Liabilities | 5 | 19.825 | 8.169 |
| Current Portion of Long Term Borrowings | 1.366.607 | 1.349.476 | |
| Current Portion of Long Term Borrowings from | |||
| Third Parties | 1.366.607 | 1.349.476 | |
| Bank Loans | 5 | 338.965 | 390.382 |
| Issued Debt Instruments | 5 | 1.027.642 | 959.094 |
| Other Financial Liabilities | 62.574 | 72.210 | |
| Trade Payables | 20.791.335 | 21.358.916 | |
| Trade Payables to Related Parties | 6 | 1.680.925 | 1.687.177 |
| Trade Payables to Third Parties | 7 | 19.110.410 | 19.671.739 |
| Payables Related to Employee Benefits | 16 | 407.057 | 361.726 |
| Other Payables | 3.462.054 | 4.259.599 | |
| Other Payables to Related Parties | 6 | 3.198.756 | 4.259.599 |
| Other Payables to Third Parties | 8 | 263.298 | - |
| Derivative Financial Liabilities | 24 | 235.528 | 481.637 |
| Deferred Revenue | 446.109 | 595.944 | |
| Deferred Revenues from Related Parties | 6 | 445.284 | 595.505 |
| Deferred Revenue from Third Parties | 8 | 825 | 439 |
| Current Tax Liabilities | 22 | - | 12.685 |
| Current Provisions | 19.563 | 18.016 | |
| Other Current Provisions | 14 | 19.563 | 18.016 |
| Other Current Liabilities | 216.513 | 239.960 | |
| Other Current Liabilities to Third Parties | 17 | 216.513 | 239.960 |
| TOTAL CURRENT LIABILITIES | 30.152.240 | 31.447.504 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Audited | ||
|---|---|---|---|
| Notes | 30 June 2024 | 31 December 2023 | |
| NON-CURRENT LIABILITIES | |||
| Long Term Borrowings | 1.357.346 | 1.677.433 | |
| Long Term Borrowings from Related Parties | 197.146 | 166.287 | |
| Lease Liabilities | 5,6 | 197.146 | 166.287 |
| Long Term Borrowings from Third Parties | 1.160.200 | 1.511.146 | |
| Bank Loans | 5 | 1.155.376 | 1.503.090 |
| Lease Liabilities | 5 | 4.824 | 8.056 |
| Other Financial Liabilities | 255.755 | 320.587 | |
| Trade Payables | 160.608 | 222.245 | |
| Trade Payables to Third Parties | 7 | 160.608 | 222.245 |
| Non-current Provisions | 730.870 | 844.005 | |
| Non-current Provisions for Employee Benefits | 16 | 730.870 | 844.005 |
| Deferred Tax Liabilities | 22 | 2.161.409 | 2.051.590 |
| Other Non-current Liabilities | 11.020 | 14.116 | |
| Other Non-current Liabilities to Third Parties | 11.020 | 14.116 | |
| TOTAL NON-CURRENT LIABILITIES | 4.677.008 | 5.129.976 | |
| TOTAL LIABILITIES | 34.829.248 | 36.577.480 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Audited | ||
|---|---|---|---|
| Notes | 30 June 2024 | 31 December 2023 | |
| EQUITY | |||
| Equity Attributable to Owners of Parent | 26.780.613 | 26.929.921 | |
| Issued Capital | 18 | 1.600.000 | 1.600.000 |
| Adjustments on Capital | 18 | 8.168.071 | 8.168.071 |
| Other Accumulated Comprehensive Income (Loss) that will not be | |||
| Reclassified to Profit or Loss | 4.281.872 | 4.318.016 | |
| Gains (Losses) on Revaluation and Remeasurement | 4.281.872 | 4.318.016 | |
| Increases on Revaluation of | |||
| Property, Plant and Equipment | 5.012.589 | 5.040.914 | |
| Losses on Remeasurement of Defined Benefit Plans | (730.717) | (722.898) | |
| Other Accumulated Comprehensive Income (Loss) that will be | |||
| Reclassified to Profit or Loss | 137.519 | (232.483) | |
| Losses on Hedge | 137.519 | (232.483) | |
| Losses on Cash Flow Hedges | 137.519 | (232.483) | |
| Restricted Reserves | 1.769.103 | 1.494.717 | |
| Legal Reserves | 18 | 1.769.103 | 1.494.717 |
| Prior Years' Profits | 10.154.999 | 5.688.574 | |
| Current Period Net Profit | 669.049 | 5.893.026 | |
| TOTAL EQUITY | 26.780.613 | 26.929.921 | |
| TOTAL LIABILITIES AND EQUITY | 61.609.861 | 63.507.401 |
Financial statements for the period 1 January – 30 June 2024 were approved by the Board of Directors of Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. on 16 August 2024.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Reviewed | ||||
|---|---|---|---|---|---|
| 1 January - 30 June |
1 January - 30 June |
1 April - 30 June |
1 April - 30 June |
||
| Notes | 2024 | 2023 | 2024 | 2023 | |
| PROFIT OR LOSS | |||||
| Revenue | 19 | 31.939.613 | 38.393.846 | 16.791.614 | 20.061.782 |
| Cost of Sales | 19 | (27.930.485) | (33.635.410) (15.099.299) (17.059.768) | ||
| GROSS PROFIT | 4.009.128 | 4.758.436 | 1.692.315 | 3.002.014 | |
| General Administrative Expenses | (335.629) | (336.827) | (155.225) | (134.128) | |
| Marketing Expenses | (1.374.650) | (1.986.768) | (684.255) | (932.783) | |
| Research and Development Expense | (372.418) | (369.759) | (168.774) | (173.582) | |
| Other Income from Operating Activities | 20 | 1.352.169 | 4.737.437 | 585.680 | 4.061.496 |
| Other Expenses from Operating Activities | 20 | (2.141.441) | (6.513.575) | (641.646) | (5.669.854) |
| PROFIT/(LOSS) FROM OPERATING ACTIVITIES | 1.137.159 | 288.944 | 628.095 | 153.163 | |
| PROFIT/(LOSS) BEFORE FINANCING INCOME | 1.137.159 | 288.944 | 628.095 | 153.163 | |
| Finance Income | 21 | 621.190 | 2.543.352 | 158.082 | 1.834.821 |
| Finance Costs | 21 | (3.096.306) | (3.511.325) | (1.711.628) | (2.471.125) |
| Monetary Gain | 1.998.201 | 2.271.218 | 957.169 | 740.668 | |
| PROFIT FROM CONTINUING OPERATIONS, BEFORE TAX | 660.244 | 1.592.189 | 31.718 | 257.527 | |
| Tax (Expense) Income, Continuing Operations | 8.805 | 251.838 | (31.109) | 378.993 | |
| Current Tax Expense | 22 | (2.104) | (185.209) | 193 | (2.557) |
| Deferred Tax Income | 22 | 10.909 | 437.047 | (31.302) | 381.550 |
| PROFIT FOR THE PERIOD | 669.049 | 1.844.027 | 609 | 636.520 | |
| Earnings per 100 share with a Kr 1 of Par Value (TL) | 23 | 0,42 | 1,15 | 0,00 | 0,40 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Reviewed | |||
|---|---|---|---|---|
| 1 January - | 1 January - | 1 April - | 1 April - | |
| 30 June | 30 June | 30 June | 30 June | |
| 2024 | 2023 | 2024 | 2023 | |
| PROFIT FOR THE PERIOD OTHER COMPREHENSIVE INCOME | 669.049 | 1.844.027 | 609 | 636.520 |
| Other Comprehensive Income that will | ||||
| not be Reclassified to Profit or Loss | (7.819) | (144.162) | (2.769) | (89.013) |
| Gains (Losses) on Remeasurements of Defined Benefit Plans | (10.425) | (180.203) | (3.692) | (111.266) |
| Taxes Relating to Components of Other Comprehensive Income | 2.606 | 36.041 | 923 | 22.253 |
| Taxes Relating to Remeasurements of Defined Benefit Plans | 2.606 | 36.041 | 923 | 22.253 |
| Other Comprehensive Income that will | ||||
| be Reclassified to Profit or Loss | 370.002 | 287.440 | 155.854 | 98.142 |
| Other Comprehensive Income (Loss) Related with Cash Flow Hedges | 493.336 | 359.300 | 207.806 | 122.677 |
| Taxes Relating to Components of Other Comprehensive Income | (123.334) | (71.860) | (51.952) | (24.535) |
| Taxes Relating to Cash Flow Hedges | (123.334) | (71.860) | (51.952) | (24.535) |
| OTHER COMPREHENSIVE INCOME | 362.183 | 143.278 | 153.085 | 9.129 |
| TOTAL COMPREHENSIVE INCOME | 1.031.232 | 1.987.305 | 153.694 | 645.649 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Other | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Increases | Accumulated | Other | |||||||||||||
| (Decreases) on Revaluation of |
Gains (Losses) on | Comprehensive | Accumulated | ||||||||||||
| Inflation | Property, | Remeasurement of | Gains (Losses) | Income That Will Not Be |
Reserve Of Gains or |
Comprehensive Income That Will |
Restricted Reserves |
Prior Years' | Equity attributable to |
||||||
| Issued | Adjustments | Plant and | Defined Benefit | Revaluations and | Reclassified To | Cash Flow | Losses on | Be Reclassified | Appropriated | Profits or | Net Profit or | Retained | owners of | ||
| Capital | on Capital | Equipment | Plans | Remeasurements | Profit Or Loss | Hedges | Hedge | To Profit Or Loss | From Profits | Losses | Loss | Earnings | parent | Equity | |
| Previous Period | |||||||||||||||
| 1 January -30 June 2023 | |||||||||||||||
| Beginning of Period | 1.600.000 8.168.071 | 51.505 | (546.554) | (495.049) | (495.049) (226.297) (226.297) | (226.297) | 1.545.886 6.050.289 | 264.170 6.314.459 16.907.070 16.907.070 | |||||||
| Transfers | - | - | (27.080) | - | (27.080) | (27.080) | - | - | - | - | 291.250 | (264.170) | 27.080 | - | - |
| Total Comprehensive Income (Loss) | - | - | - | (144.162) | (144.162) | (144.162) 287.440 287.440 | 287.440 | - | - | 1.844.027 1.844.027 | 1.987.305 | 1.987.305 | |||
| Profit for the period (Losses) | - | - | - | - | - | - | - | - | - | - | - | 1.844.027 1.844.027 | 1.844.027 | 1.844.027 | |
| Other Comprehensive Income (Loss) | - | - | - | (144.162) | (144.162) | (144.162) 287.440 287.440 | 287.440 | - | - | - | - | 143.278 | 143.278 | ||
| Dividends Paid | - | - | - | - | - | - | - | - | - | 48.653 | (677.831) | - | (677.831) | (629.178) | (629.178) |
| End of Period | 1.600.000 8.168.071 | 24.425 | (690.716) | (666.291) | (666.291) | 61.143 | 61.143 | 61.143 | 1.594.539 5.663.708 1.844.027 7.507.735 | 18.265.197 | 18.265.197 | ||||
| Current Period 1 January -30 June 2024 |
|||||||||||||||
| Beginning of Period | 1.600.000 8.168.071 5.040.914 | (722.898) | 4.318.016 | 4.318.016 (232.483) (232.483) | (232.483) | 1.494.717 5.688.574 5.893.026 11.581.600 26.929.921 26.929.921 | |||||||||
| Transfers | - | - | (28.325) | - | (28.325) | (28.325) | - | - | - | - | 5.921.351 (5.893.026) | 28.325 | - | - | |
| Total Comprehensive Income (Loss) | - | - | - | (7.819) | (7.819) | (7.819) 370.002 370.002 | 370.002 | - | - | 669.049 | 669.049 | 1.031.232 | 1.031.232 | ||
| Profit for the period (Losses) | - | - | - | - | - | - | - | - | - | - | - | 669.049 | 669.049 | 669.049 | 669.049 |
| Other Comprehensive Income (Loss) | - | - | - | (7.819) | (7.819) | (7.819) 370.002 370.002 | 370.002 | - | - | - | - | 362.183 | 362.183 | ||
| - | - | - | - | - | - | - | - | - | 274.386 (1.454.926) | - | (1.454.926) | (1.180.540) | (1.180.540) | ||
| Dividends Paid | 4.281.872 | 4.281.872 137.519 137.519 | 137.519 | 1.769.103 10.154.999 | 669.049 10.824.048 26.780.613 26.780.613 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed 1 January - |
Reviewed 1 January - |
||
|---|---|---|---|
| 30 June | 30 June | ||
| Notes | 2024 | 2023 | |
| CASH FLOWS FROM (USED IN) OPERATING ACTIVITIES | 950.166 | 2.993.666 | |
| Profit (Loss) for the Period | 669.049 | 1.844.027 | |
| Profit (Loss) from Continuing Operations | 669.049 | 1.844.027 | |
| Adjustments to Reconcile Profit | 2.340.876 | 146.504 | |
| Adjustments for Depreciation and Amortisation Expense | 11,12,13 | 1.327.292 | 1.452.321 |
| Adjustments for Impairment Loss | |||
| (Reversal of Impairment Loss) | 47.229 | (46.510) | |
| Adjustments for Impairement Loss | |||
| (Reversal of Impairment Loss) of Receivables | (724) | 166 | |
| Adjustments for Impairment Loss | |||
| (Reversal of Impairment Loss) of Inventories | 9 | 47.953 | (46.676) |
| Adjustments for Provisions | 139.735 | 170.762 | |
| Adjustments for (Reversal of) Provisions Related with | |||
| Employee Benefits | 138.188 | 166.867 | |
| Adjustments for (Reversal of) Lawsuit and/or | |||
| Penalty Provisions | 14 | 1.547 | 3.895 |
| Adjustments for Interest (Income) Expenses | 1.775.336 | 884.506 | |
| Adjustments for Interest Income | 21 | (107.092) | (190.739) |
| Adjustments for Interest Expense | 21 | 1.882.428 | 1.075.245 |
| Adjustments for Unrealised Foreign | |||
| Exchange Losses (Gains) | (247.717) | (451.049) | |
| Adjustments for Fair Value Losses (Gains) | 36.114 | (307.080) | |
| Adjustments for Fair Value (Gains) Losses on | |||
| Derivative Financial Instruments | 36.114 | (307.080) | |
| Adjustments for Tax (Income) Expenses | 22 | (8.805) | (251.838) |
| Adjustments for Losses (Gains) on Disposal of | |||
| Non-Current Assets | (2.047) | 5.265 | |
| Adjustments for Losses (Gains) Arised from | |||
| Sale of Tangible Assets | (2.047) | 5.265 | |
| Other Adjustments to Reconcile Profit (Loss) | 4 | 5 | 7 |
| Monetary Loss/Gain | (726.266) | (1.309.880) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Reviewed | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| 30 June | 30 June | ||
| Notes | 2024 | 2023 | |
| Changes in Working Capital | (1.976.359) | 1.298.174 | |
| Adjustments for Decrease (Increase) in Trade Accounts Receivable | (1.723.795) | (7.845.587) | |
| Decrease (Increase) in Trade Accounts Receivables from Related Parties | 6 | (1.628.659) | (7.270.456) |
| Decrease (Increase) in Trade Accounts Receivables from Third Parties | 7 | (95.136) | (575.131) |
| Adjustments for Decrease (Increase) in Other Receivables Related with Operations | 246.551 | 339.874 | |
| Decrease (Increase) in Other Third Party Receivables Related with Operations | 8 | 246.551 | 339.874 |
| Adjustments for Decrease (Increase) in Inventories | 9 | (4.515.993) | (2.255.276) |
| Decrease (Increase) in Prepaid Expenses | 6, 10 | (272.248) | (103.152) |
| Adjustments for Increase (Decrease) in Trade Accounts Payable | 3.920.675 | 10.670.841 | |
| Increase (Decrease) in Trade Accounts Payables to Related Parties | 6 | 352.302 | 817.618 |
| Increase (Decrease) in Trade Accounts Payables to Third Parties | 3.568.373 | 9.853.223 | |
| Increase (Decrease) in Employee Benefit Liabilities | 16 | 125.615 | 350.313 |
| Adjustments for Increase (Decrease) in Other | |||
| Operating Payables | 282.537 | 131.814 | |
| Increase (Decrease) in Other Operating Payables to Third Parties | 282.537 | 131.814 | |
| Increase (Decrease) in Deferred Revenues | (33.597) | 17.937 | |
| Other Adjustments for Other Increase (Decrease) in Working Capital | (6.104) | (8.590) | |
| Decrease (Increase) in Other Assets Related with Operations | 17, 22 | (31.688) | (68.795) |
| Increase (Decrease) in Other Payables Related with Operations | 17 | 25.584 | 60.205 |
| Cash Flows from (used in) Operations | 1.033.566 | 3.288.705 | |
| Payments Related with Provisions for Employee Benefits | 16 | (91.183) | (212.168) |
| Income Taxes Refund (Paid) | 22 | 7.783 | (82.871) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Reviewed | Reviewed | ||
|---|---|---|---|
| 1 January - | 1 January - | ||
| 30 June | 30 June | ||
| Notes | 2024 | 2023 | |
| CASH FLOWS FROM (USED IN) INVESTING ACTIVITIES | 376.489 | (2.324.176) | |
| Proceeds from Sales of Property, Plant, Equipment and Intangible Assets | 10.252 | (3.883) | |
| Proceeds from Sales of Property, Plant and Equipment | 10.252 | (3.883) | |
| Purchase of Property, Plant, Equipment and Intangible Assets | (1.735.421) | (1.963.145) | |
| Purchase of Property, Plant and Equipment | 11 | (1.265.264) | (1.764.386) |
| Purchase of Intangible Assets | 13 | (470.157) | (198.759) |
| Cash Advances and Loans Made to Other Parties | 2.102.713 | (395.404) | |
| Cash Advances and Loans Made to Related Parties | 2.353.046 | (728.741) | |
| Cash Advances and Loans Made to Third Parties | (250.333) | 333.337 | |
| Other Cash Inflows (Outflows) | (1.055) | 38.256 | |
| CASH FLOWS FROM (USED IN) FINANCING ACTIVITIES | (1.928.523) | (1.237.842) | |
| Proceeds from Borrowings | 5 | 4.364.331 | 4.540.203 |
| Proceeds from Loans | 3.666.836 | 3.893.153 | |
| Proceeds from Other Financial Borrowings | 697.495 | 647.050 | |
| Repayments of Borrowings | 5 | (2.902.892) | (4.528.651) |
| Loan Repayments | (2.484.395) | (3.330.881) | |
| Issued bonds repayments | (418.497) | (1.197.770) | |
| Increase in Other Payables to Related Parties | (1.498.771) | (496.358) | |
| Payments of Lease Liabilities | 40.519 | 114.737 | |
| Interest Paid | (1.838.254) | (1.058.512) | |
| Interest Received | (93.456) | 190.739 | |
| INFLATION EFFECT ON CASH AND CASH EQUIVALENTS | (191.335) | (203.320) | |
| NET INCREASE (DECREASE) IN CASH AND CASH | |||
| EQUIVALENTS BEFORE EFFECT OF EXCHANGE RATE CHANGES | (793.203) | (771.672) | |
| Effect of Exchange Rate Changes on Cash and Cash Equivalents | 10.886 | 6.932 | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (782.317) | (764.740) | |
| CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD | 4 | 909.962 | 1.189.505 |
| CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 127.645 | 424.765 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Vestel Beyaz Eşya Sanayi ve Ticaret A.Ş. (the "Company" or "Vestel Beyaz Eşya") was incorporated in 1997 under the Turkish Commercial Code and its head office is located at Levent 199, Büyükdere Caddesi No: 199, 34394 Şişli / İstanbul.
The Company started its operations in 1999 and produces refrigerators, room air conditioning units, washing machines, cookers, dishwashers and water heaters. The Company's production facilities occupy 507 square meters of enclosed area located in Manisa Organized Industrial Zone on total area of 657 square meters.
The Company is a member of Vestel Group of Companies which are under the control of Zorlu Family. The Company performs its export sales and domestic sales via Vestel Ticaret A.Ş. which is also a member of Vestel Group of Companies.
The Company is registered to Capital Market Board and its shares have been quoted to Borsa Istanbul ("BİST") since 21 April 2006.
As of 30 June 2024, the number of personnel employed was 9.574 (31 December 2023: 9.171).
As of balance sheet dates, the shareholders of the Company and their percentage shareholdings were as follows:
| Shareholding % | |
|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. | 77,33 |
| Other shareholders | 22,67 |
As of 30 June 2024 Company have been quoted at the Borsa Istanbul (31,47% of its share capital; 31 December 2023: 31,47%).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The accompanying interim condensed financial statements are prepared in accordance with the Communiqué Serial II, No: 14.1, "Principals of Financial Reporting in Capital Markets" published in the Official Gazette numbered 28676 on 13 June 2013. According to the article 5 of the Communiqué, financial statements are prepared in accordance with Turkish Accounting Standards / Turkish Financial Reporting Standards ("TAS" / "TFRS") and its addendum and interpretations ("IFRIC") issued by the Public Oversight Accounting and Auditing Standards Authority ("POAASA") Turkish Accounting Standards Board.
Financial statements are presented in accordance with the formats determined in the "Announcement on TFRS Taxonomy" published by the POA and in the Financial Statement Samples and User Guide published by the CMB.
The Company has prepared its condensed financial statements for the interim period ended 30 June 2024 in accordance with TAS 34 Interim Period Financial Reporting Standard. The condensed interim financial statements do not include all the information required in the annual financial statements and should be read in conjunction with the Company's annual financial statements as of 31 December 2023.
The Company bases its accounting records and preparation of its legal financial statements on the Turkish Commercial Code ("TTK"), tax legislation and the Uniform Chart of Accounts issued by the Ministry of Finance of the Republic of Turkey. The financial statements have been prepared in Turkish Lira on the basis of historical cost, except for land, buildings and land improvements from the tangible assets group shown at their fair value, and financial assets and liabilities shown at their fair value.
Financial statements have been prepared by reflecting the necessary corrections and classifications in order to ensure accurate presentation in accordance with TFRS, on the legal records prepared on the historical cost basis.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The Company has prepared its financial statements for the year dated 31 December 2023 and ending on the same date, by applying TMS 29 "Financial Reporting in High Inflation Economies" Standard, based on the announcement made by the KGK on 23 November 2023 and the "Implementation Guide on Financial Reporting in High Inflation Economies" published. In accordance with the said standard, financial statements prepared based on the currency of a hyperinflationary economy are prepared in the purchasing power of this currency at the balance sheet date, and comparative information is expressed in terms of the current measurement unit at the end of the reporting period for the purpose of comparison in the financial statements of the previous period.
For this reason, the company has presented its financial statements as of 30 June 2023 and 31 December 2023, on the basis of purchasing power as of 30 June 2024.
In accordance with the CMB's decision dated 28 December 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards shall comply with the provisions of TMS 29, starting from their annual financial reports for the accounting periods ending as of 31 December 2023. It was decided to apply inflation accounting by applying.
Rearrangements made in accordance with TMS 29 were made using the correction coefficient obtained from the Consumer Price Index in Turkey ("CPI") published by the Turkish Statistical Institute ("TURKSTAT"). As of 30 June 2024, the indices and correction coefficients used in the correction of financial statements are as follows:
| Date | Index | Correction Coefficient | Three-Year Compound |
|---|---|---|---|
| Inflation Rate | |||
| 30 June 2024 |
2.319,29 | 1 | 324% |
| 31 December 2023 | 1.859,38 | 1,2473 | 268% |
| 30 June 2023 |
1.351,59 | 1,7160 | 190% |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The main elements of the Company's adjustment for financial reporting purposes in high-inflation economies are as follows:
The Company measures its lands, land improvements and buildings at fair value by way of revaluation policy. As part of transition provisions in IAS 29 associated revaluation funds recognised under equity was reclassified to the retained earnings as of 1 January 2022.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Financial statements of the Company have been prepared comparatively with the preceding financial period, in order to enable determination of trends in financial position and performance. Comparative figures are reclassified, where necessary, to conform to changes in presentation in the financial statements.
Comparative figures for the previous reporting period are restated by applying the general price index so that the comparative financial statements are presented in the currency in effect at the end of the reporting period. Information disclosed for previous periods is also expressed in the currency valid at the end of the reporting period.
Major changes in accounting policies are applied retrospectively and any major accounting errors that have been detected are corrected and the financial statements of the previous period are restated. Changes in accounting policies resulting from the initial implementation of a new standard, if any, are implemented retrospectively or prospectively in accordance with the transition provisions. If changes in accounting estimates are related to only one period, they are recognized in the period when changes are applied; if changes in estimates are related to future periods, they are recognized both in the period where the change is applied and future periods prospectively.
The accounting policies used in the preparation of financial statements for the accounting period ending 30 June 2024 are consistent with those used in the previous year, except for the new and amended Turkish Accounting Standards ("TMS")/TFRS and TMS/TFRS interpretations valid as of 1 January 2024, summarized below. has been implemented. The effects of these standards and interpretations on the financial position and performance of the Company are explained in the relevant paragraphs.
Amendment to IFRS 16 – Leases on sale and leaseback; effective from annual periods beginning on or after 1 January 2024. These amendments include requirements for sale and leaseback transactions in IFRS 16 to explain how an entity accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or rate are most likely to be impacted. The impact of this amendment on the Company's financial position and performance is being assessed.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Amendment to IAS 1 – Noncurrent liabilities with covenants; It is valid for annual reporting periods beginning on or after 1 January 2024. These changes clarify how the requirements that an entity must comply with within twelve months after the reporting period affect the classification of a liability. The changes also aim to improve the information the entity provides regarding obligations subject to these conditions. The impact of this amendment on the Company's financial position and performance is being assessed. The impact of this amendment on the Company's financial position and performance is being assessed.
Amendments to IAS 7 and IFRS 7 on Supplier finance arrangements; effective from annual periods beginning on or after 1 January 2024. These amendments require disclosures to enhance the transparency of supplier finance arrangements and their effects on a company's liabilities, cash flows and exposure to liquidity risk. The disclosure requirements are the IASB's response to investors' concerns that some companies' supplier finance arrangements are not sufficiently visible, hindering investors' analysis. The impact of this amendment on the Company's financial position and performance is being assessed.
IFRS S1, 'General requirements for disclosure of sustainability-related financial information; effective from annual periods beginning on or after 1 January 2024.This standard includes the core framework for the disclosure of material information about sustainability-related risks and opportunities across an entity's value chain.
IFRS S2, 'Climate-related disclosures'; effective from annual periods beginning on or after 1 January 2024. This is the first thematic standard issued that sets out requirements for entities to disclose information about climate-related risks and opportunities.
On 29 December 2023, the Public Oversight Authority (KGK) published a Board Decision in the Official Gazette, announcing that certain businesses will be subject to mandatory sustainability reporting starting from 1 January 2024. The companies included in the scope of the sustainability application are determined in order to identify the businesses that will be subject to sustainability reporting within the scope of the "Board Decision on the Determination of Businesses Subject to Sustainability Reporting Within the Scope of the Application of Turkey Sustainability Reporting Standards (TSRS)" dated 5 January 2024.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
IAS 21 Lack of convertibility; effective from annual periods beginning on or after 1 January 2025. An entity is affected when it has a transaction or activity in a foreign currency that is not convertible into another currency at a particular measurement date for a particular purpose. A currency can be exchanged when the ability to obtain another currency is available (with a normal administrative delay) and the transaction occurs through a market or clearing mechanism that creates enforceable rights and obligations.
Amendment to IFRS 9 and IFRS 7 - Classification and Measurement of Financial Instruments; effective from annual reporting periods beginning on or after 1 January 2026 (early adoption is available). These amendments;
• clarify the requirements for the timing of recognition and derecognition of some financial assets and liabilities, with a new exception for some financial liabilities settled through an electronic cash transfer system;
• clarify and add further guidance for assessing whether a financial asset meets the solely payments of principal and interest (SPPI) criterion;
• add new disclosures for certain instruments with contractual terms that can change cash flows (such as some instruments with features linked to the achievement of environment, social and governance (ESG) targets); and
• make updates to the disclosures for equity instruments designated at Fair Value through Other Comprehensive Income (FVOCI).
Summary financial statements for the interim period ending on 30 June 2024 have been prepared in accordance with the TMS 34 standard for the preparation of interim financial statements. The significant accounting policies used in preparing the summary financial statements are consistent with the accounting policies explained in detail in the financial statements dated 31 December 2023.Therefore, interim financial statements should be evaluated together with the financial statements for the year ending 31 December 2023.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The frequency of revaluations is determined to ensure that the carrying amounts of the revalued items of property, plant and equipment are not materially different from their fair values at the end of the reporting period. The frequency of revaluations depends on the change in the fair value of the items of property, plant and equipment. Where the fair value of a revalued asset is considered to be materially different from its carrying amount, the revaluation is required to be repeated and this is done for the entire asset class in which the revalued asset is included as of the same date. On the other hand, it is not considered necessary to repeat the revaluation of property, plant and equipment whose fair value changes are insignificant.
In this context, as a result of the assessments made by the Company management, it is assumed that the fair values of land, buildings and land improvements determined in the valuation studies performed as of 31 December 2023 will converge to their respective fair values as of 30 June 2024 after deducting current period depreciation and the CPI change in the related interim period.
The Company management takes into consideration the guarantees received from customers, past collection performances, maturity analysis, disputes or lawsuits regarding receivables while evaluating the recoverability of trade receivables. As a result of all these evaluations, the determination of doubtful receivables and the determination of the amount of provisions allocated for these receivables also includes the assumptions and estimates of the management.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Operating segments are identified on the same basis as financial information is reported internally to the Company's chief operating decision maker. The Company's Board of Directors has been identified as the Company's chief operating decision maker who is responsible for allocating resources between segments and assessing their performance. The Company management determines operating segments by reference to the reports reviewed by the Board of Directors to make strategic decisions.
The Management believes that the Company operates in a single industry sector as the risks and returns for the activities do not show any material difference because the scope of activity covers only the production of white goods and the production processes and classes of customers are similar. As a result, all information related to the industrial segment has been fully presented in the attached financial statements.
The Management has decided to use geographical segments for segment reporting considering the fact that risks and returns are affected by the differences in geographical regions.
| 1 January - | 1 January - | 1 April - | 1 April - | |
|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | |
| Segment revenue | 2024 | 2023 | 2024 | 2023 |
| Turkey | 11.623.815 | 11.515.231 | 5.819.707 | 6.437.922 |
| Europe | 14.134.663 | 18.440.872 | 7.805.821 | 9.506.238 |
| Other | 6.290.177 | 8.555.150 | 3.198.185 | 4.186.480 |
| Gross segment sales | 32.048.655 | 38.511.253 | 16.823.713 | 20.130.640 |
| Discounts (-) | (109.042) | (117.407) | (32.099) | (68.858) |
| Net sales | 31.939.613 | 38.393.846 | 16.791.614 | 20.061.782 |
Other segment sales mainly comprise of sales to Asian and African countries.
The amount of exports is TL 20.424.840 for the period ended 30 June 2024. (1 January-30 June 2023: TL 26.996.022). 87,2% of the export amount was realized in EUR, 9,3% in USD (1 January-30 June 2023: 90% EUR, 8,3% USD).
Segment assets are not shown separately because a significant portion of the segment assets and the significant portion of the costs incurred to acquire the segment assets are incurred in Turkey.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Cash | 2.068 | 1.543 |
| Bank deposits | ||
| - Demand deposits | 125.572 | 837.409 |
| - Time deposits | 5 | 71.010 |
| 127.645 | 909.962 | |
| Blocked deposits | 22 | 27 |
| Cash and cash equivalents | 127.667 | 909.989 |
The effective interest rates for time deposits are as below:
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| TL | 35,00% | 34,74% |
As of 30 June 2024, the Company has time deposits in the amount of TL 5 (31 December 2023: TL 71.010). The average maturity of the Company's time deposits is less than 1 month (31 December 2023: less than 1 month).
Based on the independent data with respect to the credit risk assessment of the banks, at which the Company has deposits, the credit quality of the banks is sufficient. The market values of cash and cash equivalents approximate carrying values, including accrued income at the respective balance sheet date.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short term financial liabilities | ||
| Short term bank loans | 3.119.405 | 2.684.732 |
| Short term portion of long term bank loans | 338.965 | 390.382 |
| Short-term lease liabilities | 25.495 | 12.603 |
| Short term issued bonds | 1.027.642 | 959.094 |
| 4.511.507 | 4.046.811 | |
| Long term financial liabilities | ||
| Long term bank loans | 1.155.376 | 1.503.090 |
| Long term lease liabilities | 201.970 | 174.343 |
| 1.357.346 | 1.677.433 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Details of the Company's short term bank loans are given below:
| 30 June 2024 | 31 December 2023 | |||||
|---|---|---|---|---|---|---|
| Weighted average of |
Weighted average of |
|||||
| effective | Original | effective | Original | |||
| Currency | interest | currency | TL Equivalent | interest | currency | TL Equivalent |
| - USD | 9,22% | 27.719 | 911.548 | 10,65% | 31.573 | 1.161.450 |
| - EUR | 8,82% | 14.996 | 527.735 | 11,09% | 10.683 | 434.860 |
| - TL | 33,51% | 1.680.122 | 1.680.122 | 38,97% | 1.088.422 | 1.088.422 |
| 3.119.405 | 2.684.732 |
Details of the Company's long term bank loans are given below:
| 30 June 2024 | 31 December 2023 | |||||
|---|---|---|---|---|---|---|
| Weighted average of |
Weighted average of |
|||||
| effective | Original | effective | Original | |||
| Currency | interest | currency | TL Equivalent | interest | currency | TL Equivalent |
| - TL | 21,17% | 338.965 | 338.965 | 23,14% | 390.382 | 390.382 |
| Short term portion | 338.965 | 390.382 | ||||
| - TL | 20,65% | 1.155.376 | 1.155.376 | 20,65% | 1.503.090 | 1.503.090 |
| Long term portion | 1.155.376 | 1.503.090 | ||||
| 1.494.341 | 1.893.472 |
A significant portion of long-term loans consists of loans used within the approval of the Investment Committed Advance Loan (YTAK) with a fixed interest rate of 1.5 billion TL, originating from the Central Bank, with a total maturity of 10 years, including a grace period of 2 years for principal repayment.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The redemption schedule of the Company's long term bank loans are given below:
| Uzun vadeli finansal borçların ödeme planı | 30 June 2024 | 31 December 2023 |
|---|---|---|
| One to two years | 333.856 | 402.487 |
| Two to three years | 243.536 | 316.981 |
| Three to four years | 179.146 | 233.822 |
| Over five years | 398.838 | 549.800 |
| 1.155.376 | 1.503.090 |
Fair value of short term bank borrowings are considered to approximate their carrying values due to immateriality of discounting. Fair values are determined using average effective annual interest rates.
Guarantees given for the bank loans obtained are disclosed in note 14.
As of 30 June 2024 and 30 June 2023, reconciliation of net financial debt is as below:
| 30 June 2024 | 30 June 2023 | |
|---|---|---|
| Net financial debt as of 1 January | 4.814.285 | 18.642.414 |
| Cash inflows from loans and issued bonds | 4.364.331 | 4.540.203 |
| Cash outflows from loan and bonds payments | (2.902.892) | (4.528.651) |
| Payments of lease liabilities | 40.519 | 114.737 |
| Unrealized exchange | 99.097 | 923.970 |
| Accrued interest | 78.260 | 34.086 |
| Change in cash and cash equivalents | 782.317 | 761.344 |
| Monetary gain / (loss) | (1.534.709) | (9.190.951) |
| Net financial debt at the end of the period | 5.741.208 | 11.297.152 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Vestel Ticaret A.Ş. (1) | 14.897.048 | 16.688.434 |
| Other related parties | 31 | 208 |
| 14.897.079 | 16.688.642 |
The receivables result from the Company's foreign and domestic sales performed via Vestel Ticaret A.Ş. which is also a member of Vestel Group Companies.
| 30 June 2024 31 December 2023 |
|||
|---|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 537.220 | 580.142 | |
| Vestel Ticaret A.Ş. (1) | 451.371 | 542.942 | |
| Vestel Holland B.V. (1) | 628.992 | 514.353 | |
| Other related parties | 66.542 | 52.944 | |
| 1.684.125 | 1.690.381 | ||
| Deferred finance income (-) | (3.200) | (3.204) | |
| 1.680.925 | 1.687.177 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 814.621 | 3.273.369 |
| 814.621 | 3.273.369 |
As of 30 June 2024, the Company's interest rate of other short-term receivables in EUR 7,5% and in USD 9%
( As of 31 December 2023 the Company's interest rate of other receivables in EUR 7% and in USD 8% ).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 3.198.756 | 4.259.599 |
| 3.198.756 | 4.259.599 |
As of 30 June 2024, the Company's short-term other payables to related parties consist of non-trade payables amounting to TL 2.300.566 to Vestel Elektronik Sanayi ve Ticaret A.Ş. and the rest of balance consists of dividend payables. The interest rate of short-term other payables denominated in TL is 55% (31 December 2023 : TL 50%)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Vestel Holland B.V. (1) | 612.550 | 418.565 |
| Other related parties | 3.835 | 5.068 |
| 616.385 | 423.633 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Zorlu Enerji Elektrik Üretim A.Ş. (3) | 712.605 | 703.286 |
| Other related parties | 107.455 | - |
| 820.060 | 703.286 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Vestel Ticaret A.Ş. (1) | 445.284 | 590.489 |
| Other related parties | - | 5.016 |
| 445.284 | 595.505 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 202.816 | 170.721 |
| 202.816 | 170.721 |
The Company's short term lease liabilities to Vestel Elektronik Sanayi ve Ticaret A.Ş. are amounted to TL 5.670 and long term lease liabilities are amounted to TL 197.146 (31 December 2023: short term TL 4.434 and long term TL 166.287)
| 1 January - | 1 January - | 1 April - | 1 April - | ||
|---|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | ||
| 2024 | 2023 | 2024 | 2023 | ||
| Sales | |||||
| Vestel Ticaret A.Ş. (1) | 30.192.279 | 37.556.110 | 15.344.560 | 19.726.229 | |
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 221.817 | 332.076 | 107.520 | 155.426 | |
| Other related parties | 547.658 | 1.081 | 521.087 | 729 | |
| 30.961.754 | 37.889.267 | 15.973.167 | 19.882.384 | ||
| Operating expenses | |||||
| Vestel Holland B.V. (1) | 1.754.492 | 1.721.924 | 841.132 | 768.334 | |
| Vestel Ticaret A.Ş. (1) | 744.964 | 844.583 | 359.128 | 438.135 | |
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 1.624.856 | 1.943.741 | 762.453 | 1.002.469 | |
| Other related parties | 224.877 | 348.858 | 61.975 | 292.293 | |
| 4.349.189 | 4.859.106 | 2.024.688 | 2.501.231 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January - 30 June |
1 January - | 1 April - | 1 April - | ||
|---|---|---|---|---|---|
| 30 June | 30 June | 30 June | |||
| 2024 | 2023 | 2024 | 2023 | ||
| Other income from operating activities | |||||
| Vestel Ticaret A.Ş. (1) | 986.853 | 4.144.203 | 445.822 | 3.569.354 | |
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 1.357 | 135.287 | 432 | 135.158 | |
| Other related parties | 210.986 | 34.478 | 68.334 | 16.321 | |
| 1.199.196 | 4.313.968 | 514.588 | 3.720.833 | ||
| Other expense from operating activities | |||||
| Vestel Ticaret A.Ş. (1) | 426.838 | 271.753 | 353.530 | 71.503 | |
| Vestel Holland B.V. (1) | 68.695 | 79.869 | 15.757 | 65.884 | |
| Other related parties | 67.892 | 51.697 | 24.892 | 43.349 | |
| 563.425 | 403.319 | 394.179 | 180.736 | ||
| Financial income | |||||
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 418.358 | 1.870.596 | 48.250 | 1.648.469 | |
| 418.358 | 1.870.596 | 48.250 | 1.648.469 | ||
| Financial expense | |||||
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 945.555 | 85.134 | 505.373 | 58.144 | |
| 945.555 | 85.134 | 505.373 | 58.144 | ||
| Dividend payment to non-controlling interests | |||||
| Vestel Elektronik Sanayi ve Ticaret A.Ş. (2) | 912.912 | 486.543 | 912.912 | 486.543 | |
| 912.912 | 486.543 | 912.912 | 486.543 | ||
The total dividend payables restated to 30 June 2024 purchasing power amounting to 1.180.540 TL consists of 912.912 TL payable to Vestel Elektronik Sanayi ve Ticaret A.Ş., and 267.628 TL payable to the publicly traded portion.
Guarantees received from and given to related parties are disclosed in note 14.
Compensation paid to key management for the six months period ended 30 June 2024 is TL 32.544 (1 January -30 June 2023: TL 29.146).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short term trade receivables | ||
| Trade receivables | ||
| - Related parties (note 6) | 14.897.079 | 16.688.642 |
| - Other parties | 604.301 | 642.474 |
| 15.501.380 | 17.331.116 | |
| Allowance for doubtful receivables (-) | (2.400) | (3.124) |
| Total short term trade receivables | 15.498.980 | 17.327.992 |
The Company has made a provision considering its past experience in collecting its trade receivables.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short term trade payables | ||
| Trade payables | ||
| - Related parties (note 6) | 1.684.125 | 1.690.381 |
| - Other parties | 19.162.527 | 19.727.163 |
| 20.846.652 | 21.417.544 | |
| Unearned interest income (-) | ||
| - Related parties (note 6) | (3.200) | (3.204) |
| - Other parties | (52.117) | (55.424) |
| Total short term trade payables | 20.791.335 | 21.358.916 |
| Long term trade payables | ||
| - Other parties | 160.608 | 222.245 |
| Total long term trade payables | 160.608 | 222.245 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Other short-term receivables from third parties | ||
| Receivables from public institutions | 955.810 | 1.189.759 |
| Deposits and guarantees given | 21.533 | 34.036 |
| Other | 13.717 | 11.580 |
| Total short term other receivables | 991.060 | 1.235.375 |
| 30 June 2024 | 31 December 2023 | |
| Short term other payables | ||
| Related parties (Note 6) | 3.198.756 | 4.259.599 |
| Other payables | 263.298 | - |
| 3.462.054 | 4.259.599 | |
| 30 June 2024 | 31 December 2023 | |
| Deferred revenue | ||
| Related parties (Note 6) | 445.284 | 595.505 |
| Other parties | 825 | 439 |
| 446.109 | 595.944 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Raw materials | 7.657.024 | 5.662.201 |
| Work in process | 412.264 | 227.997 |
| Finished goods | 3.396.223 | 3.137.105 |
| Merchandise | 598 | 16.699 |
| 11.466.109 | 9.044.002 | |
| Provision for impairment on inventories (-) | (66.944) | (18.991) |
| 11.399.165 | 9.025.011 |
As of 30 June 2024, the Company does not have inventories pledged as security for liabilities (31 December 2023: None). Cost of the inventory included in the cost of sales for the current period amounts to TL 23.068.290 (1 January – 30 June 2023: TL 29.094.844).
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short-term prepaid expenses to third parties | ||
| Order advances given | 389.313 | 588.334 |
| Prepaid expenses | 126.475 | 83.780 |
| 515.788 | 672.114 | |
| 30 June 2024 | 31 December 2023 | |
| Long-term prepaid expenses to third parties | ||
| Advences given for purchase of fixed assets | 445.655 | 269.712 |
| Prepaid expenses | 4.727 | 1.081 |
| 450.382 | 270.793 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January | 30 June | ||||
|---|---|---|---|---|---|
| 2024 | Additions | Disposals | Transfer | 2024 | |
| Cost or revaluation | |||||
| Land | 8.840.260 | - | - | - | 8.840.260 |
| Land improvements | 198.290 | - | - | - | 198.290 |
| Buildings | 6.938.037 | 9.789 | - | 4.770 | 6.952.596 |
| Leasehold improvements | 3.190 | 915 | - | - | 4.105 |
| Plants, machinery and equipment | 26.387.425 | 398.323 | (119.453) | 178.411 | 26.844.706 |
| Motor vehicles | 9.090 | - | - | - | 9.090 |
| Furniture and fixtures | 1.204.311 | 23.353 | (2.379) | 12.626 | 1.237.911 |
| Construction in progress (*) | 2.179.596 | 832.884 | - | (195.807) | 2.816.673 |
| 45.760.199 | 1.265.264 | (121.832) | - | 46.903.631 | |
| Accumulated depreciation | |||||
| Land improvements | - | 4.657 | - | - | 4.657 |
| Buildings | - | 228.874 | - | - | 228.874 |
| Leasehold improvements | 2.888 | 81 | - | - | 2.969 |
| Plants, machinery and equipment | 17.922.517 | 866.199 | (111.272) | - | 18.677.444 |
| Motor vehicles | 5.730 | 541 | - | - | 6.271 |
| Furniture and fixtures | 910.281 | 41.741 | (2.355) | - | 949.667 |
| 18.841.416 | 1.142.093 | (113.627) | - | 19.869.882 | |
| Net book value | 26.918.783 | 27.033.749 |
(*) A significant part of the investments being made are related to ongoing building investments.
Mortgages on property, plant and equipment are disclosed in Note 14.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January | 30 June | ||||
|---|---|---|---|---|---|
| 2023 | Additions | Disposals | Transfer | 2023 | |
| Cost or revaluation | |||||
| Land | 3.700.239 | - | - | - | 3.700.239 |
| Land improvements | 196.209 | - | - | - | 196.209 |
| Buildings | 4.603.509 | 36.873 | - | 28.525 | 4.668.907 |
| Leasehold improvements | 2.906 | - | - | - | 2.906 |
| Plants, machinery and equipment | 23.268.330 | 640.531 | (130.652) | 162.703 | 23.940.912 |
| Motor vehicles | 7.135 | - | - | - | 7.135 |
| Furniture and fixtures | 1.095.230 | 24.180 | (3.933) | 26.400 | 1.141.877 |
| Construction in progress | 4.089.740 | 1.062.802 | - | (217.628) | 4.934.914 |
| 36.963.298 | 1.764.386 | (134.585) | - | 38.593.099 | |
| Accumulated depreciation | |||||
| Land improvements | - | 6.601 | - | - | 6.601 |
| Buildings | - | 155.218 | - | - | 155.218 |
| Leasehold improvements | 2.729 | 100 | - | - | 2.829 |
| Plants, machinery and equipment | 16.381.125 | 1.005.810 | (129.436) | - | 17.257.499 |
| Motor vehicles | 5.370 | 304 | - | - | 5.674 |
| Furniture and fixtures | 833.115 | 44.147 | (3.767) | - | 873.495 |
| 17.222.339 | 1.212.180 | (133.203) | - | 18.301.316 | |
| Net book value | 19.740.959 | 20.291.783 |
Allocation of period depreciation and amortization expenses is as follows:
| 1 January - | 1 January - 30 June |
||
|---|---|---|---|
| 30 June | |||
| 2024 | 2023 | ||
| Cost of sales | 1.090.911 | 1.236.905 | |
| Research and development expenses | 223.369 | 203.721 | |
| Marketing, selling and distribution expenses | 3.877 | 4.524 | |
| General administrative expenses | 9.135 | 7.171 | |
| 1.327.292 | 1.452.321 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January | 30 June | ||
|---|---|---|---|
| 2024 | Additions | 2024 | |
| Cost | |||
| Land and buildings | 1.207.759 | 94.225 | 1.301.984 |
| Motor vehicles | 266.206 | - | 266.206 |
| 1.473.965 | 94.225 | 1.568.190 | |
| Accumulated amortization | |||
| Land and buildings | 443.092 | 43.471 | 486.563 |
| Motor vehicles | 193.698 | 2.380 | 196.078 |
| 636.790 | 45.851 | 682.641 | |
| Net book value | 837.175 | 885.549 |
| 1 January | 30 June | ||
|---|---|---|---|
| 2023 | Additions | 2023 | |
| Cost | |||
| Land and buildings | 735.668 | 275.038 | 1.010.706 |
| Motor vehicles | 263.113 | 4.108 | 267.221 |
| 998.781 | 279.146 | 1.277.927 | |
| Accumulated amortization | |||
| Land and buildings | 326.453 | 75.599 | 402.052 |
| Motor vehicles | 179.331 | 9.337 | 188.668 |
| 505.784 | 84.936 | 590.720 | |
| Net book value | 492.997 | 687.207 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January | 30 June | |||
|---|---|---|---|---|
| 2024 | Additions | Transfer | 2024 | |
| Cost | ||||
| Rights | 130.569 | - | - | 130.569 |
| Development cost | 3.824.311 | 448.617 | - | 4.272.928 |
| Other intangible assets | 303.750 | 21.540 | - | 325.290 |
| 4.258.630 | 470.157 | - | 4.728.787 | |
| Accumulated amortization | ||||
| Rights | 129.918 | 67 | - | 129.985 |
| Development cost | 2.244.345 | 124.892 | - | 2.369.237 |
| Other intangible assets | 163.362 | 14.389 | - | 177.751 |
| 2.537.625 | 139.348 | - | 2.676.973 | |
| Net book value | 1.721.005 | 2.051.814 | ||
| 1 January | 30 June | |||
| 2023 | Additions | Transfer | 2023 | |
| Cost | ||||
| Rights | 130.568 | - | - | 130.568 |
| Development cost | 3.259.400 | 189.128 | - | 3.448.528 |
| Other intangible assets | 290.047 | 9.631 | - | 299.678 |
| 3.680.015 | 198.759 | - | 3.878.774 | |
| Accumulated amortization | ||||
| Rights | 129.786 | 134 | - | 129.920 |
| Development cost | 2.108.377 | 143.617 | - | 2.251.994 |
| Other intangible assets | 137.810 | 11.454 | - | 149.264 |
| 2.375.973 | 155.205 | - | 2.531.178 |
Development costs, incurred by the Company on development projects relating to refrigerators, split air conditioners, washing machines, cookers and dish washers are capitalized as intangible assets since it is highly probable that it will derive economic benefit from these projects and the economic benefits and expenditures made during the development process can be reliably measured.
Net book value 1.304.042 1.347.596
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Short term provisions | ||
| Provision for lawsuit risks | 19.563 | 18.016 |
| 19.563 | 18.016 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Guarantee letters | 476.297 | 259.790 |
| Cheques and notes | 650 | 20.272 |
| Collaterals and pledges | 42.951.525 | 50.536.262 |
| 43.428.472 | 50.816.324 |
Vestel Elektronik Sanayi ve Ticaret A.Ş., Vestel Mobilite Sanayi ve Ticaret A.Ş. and Vestel Ticaret A.Ş. has given guarantees to various banks on behalf of the Company for its forward contracts and bank borrowings.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| USD | EUR | |||
|---|---|---|---|---|
| CPMB's given by the Group | ('000) | ('000) | TL | TL Equivalent |
| 30 June 2024 | ||||
| A. CPMB's given on behalf of its own legal entity | 15.750 | 8.900 | 2.570.531 | 3.401.681 |
| B. CPMB's given on behalf of fully consolidated | ||||
| subsidiaries | - | - | - | - |
| C. CPMB's given on behalf of third parties for ordinary course of business |
- | - | - | - |
| D. Total amount of other CPMB's given | 500.742 | - | 277.439 | 16.744.490 |
| i. Total amount of CPMB's given on behalf of the | ||||
| parent company | 380.820 | - | 155.076 | 12.678.456 |
| ii. Total amount of CPMB's given to on behalf of | ||||
| other group companies which are not in scope of | ||||
| B and C. | 119.922 | - | 122.363 | 4.066.034 |
| iii.Total amount of CPMB's given on behalf of | ||||
| third parties which are not in scope of C. | - | - | - | - |
| Total | 516.492 | 8.900 | 2.847.970 | 20.146.171 |
The table above has been prepared based on the lower of the limits used or the amounts of guarantees received regarding the guarantees given by the Company.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| USD | EUR | |||
|---|---|---|---|---|
| CPMB's given by the Group | ('000) | ('000) | TL | TL Equivalent |
| 31 December 2023 | ||||
| A. CPMB's given on behalf of its own legal entity | 15.800 | 13.895 | 779.846 | 1.926.647 |
| B. CPMB's given on behalf of fully consolidated subsidiaries |
- | - | - | - |
| C. CPMB's given on behalf of third parties for ordinary course of business |
- | - | - | - |
| D. Total amount of other CPMB's given | 501.042 | - | 625.827 | 19.057.084 |
| i. Total amount of CPMB's given on behalf of the parent company ii. Total amount of CPMB's given to on behalf of |
380.820 | - | 469.456 | 14.478.244 |
| other group companies which are not in scope of B and C. |
120.222 | - | 156.371 | 4.578.840 |
| iii.Total amount of CPMB's given on behalf of third parties which are not in scope of C. |
- | - | - | - |
| Total | 516.842 | 13.895 | 1.405.673 | 20.983.731 |
The Company has given collaterals to various banks on behalf of Vestel Elektronik Sanayi and Ticaret A.Ş. and Vestel Ticaret A.Ş. for their forward contracts and bank loans obtained.
Proportion of other CPMB's given by the Company to its equity 63% as of 30 June 2024. (31 December 2023: 71%).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
As of the balance sheet date the Company has committed to realize exports amounting to USD 1.306.312 thousand (31 December 2023: USD 1.093.911 thousand) due to the export and investment incentive certificates obtained.
As of 30 June 2024 the Company has forward foreign currency purchase contract that amounts to EUR 84.927 thousand, PLN 12.953 thousand ,GBP 2.414 thousand and USD 466.443 thousand against forward foreign currency sales contract that amounts to EUR 341.799 thousand, GBP 15.567 thousand, PLN 32.388 thousand, USD 74.691 thousand and TL 3.234.008 (31 December 2023 : The Company has forward foreign currency sales contract of EUR 23.517 thousand, PLN 6.895 thousand, GBP 10.794 thousand and USD 675.619 thousand against forward foreign currency sales contract that amounts to EUR 548.376 thousand, GBP 18.642 thousand, PLN 20.350 thousand, USD 12.352 thousand and TL 3.171.658).
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Due to personnel | 283.051 | 241.237 |
| Social security payables | 124.006 | 120.489 |
| 407.057 | 361.726 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Provision for employment termination benefits | 730.870 | 844.005 |
| 730.870 | 844.005 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Under Turkish law, the Company is required to pay employment termination benefits to each employee whose employment is terminated without due cause. In addition, under the existing Social Security Law No. 506, clause No. 60, amended by the Labor Laws dated 6 March 1981, No. 2422 and 25 August 1999, No. 4447, the Company is also required to pay termination benefits to each employee who has earned the right to retire by receiving termination indemnities.
The amount payable is the equivalent of one month's gross salary for each year of service and is limited to a maximum of TL 35.058,58 / year as of 30 June 2024 (31 December 2023: TL 23.489,83/year - at 31 December 2023 purchasing power).
The provision for employee termination benefits is not funded.
The provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. Turkish Accounting Standards No: 19 ("Employee Benefits") requires actuarial valuation methods to be developed to estimate the enterprise's obligation under defined employee plans. Accordingly actuarial assumptions were used in the calculation of the total liability which is described below:
The principal assumption is that the maximum liability for each year of service will increase in line with inflation. Thus, the discount rate applied represents the expected real rate after adjusting for the anticipated effects of future inflation. An expected inflation rate and appropriate discount rate should both be determined, the net of these being real discount rate. Consequently, in the accompanying financial statements as of 30 June 2024 the provision is calculated by estimating the present value of the future obligation of the company arising from retirement of employees. As of 30 June 2024, provision is calculated based on real discount rate of 3,72% assuming 23,60% annual inflation rate and 49,25% discount rate. (31 December 2023: 23,60% inflation rate, 49,25% real discount rate, 3,72% discount rate)
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The main assumption is that the seniority ceiling for each year of service increases in line with inflation. Thus, the discount rate applied represents the actual rate adjusted for the expected effects of inflation. The maximum liability is revised every six months, the maximum amount of TL 41.828,42 effective from 1 July 2024 has been taken into consideration in the calculation of provision for employment termination benefits as of 31 December 2023 and 30 June 2024.
The movements in the provision for employment termination benefit are as follows:
| 1 January - | 1 January - | |
|---|---|---|
| 30 June 2024 | 30 June 2023 | |
| Balance at 1 January | 844.005 | 1.066.201 |
| Increase during the year | 60.031 | 124.785 |
| Payments during the year | (91.183) | (212.168) |
| Actuarial (gain) /loss | 10.425 | 180.203 |
| Interest expense | 78.157 | 42.082 |
| Monetary gain/ (loss) | (170.565) | (173.490) |
| Balance at 30 June | 730.870 | 1.027.613 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Other current assets | ||
| VAT carried forward | 2.200 | 1.657 |
| Revenue and Discount Accruals | 128.594 | 104.212 |
| 130.794 | 105.869 | |
| Other current liabilities | ||
| Tax payables | 205.335 | 229.627 |
| Other | 11.178 | 10.333 |
| 216.513 | 239.960 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Shares of par value Kr 1 each | ||
| Issued share capital | 1.600.000 | 1.600.000 |
As of 30 June 2024 and 31 December 2023, the shareholding structure is as follows:
| Shareholding | Amount | |||
|---|---|---|---|---|
| 30 June | 31 December | 30 June | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| Vestel Elektronik Sanayi ve Ticaret AŞ | 77,33% | 77,33% | 1.237.302 | 1.237.302 |
| Stocks traded on BIST | 22,67% | 22,67% | 362.698 | 362.698 |
| 100% | 100% | 1.600.000 | 1.600.000 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Adjustment to share capital is the difference between the share capital recalculated to adjust the effects of inflation and historical share capital.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Adjustments to share capital | 8.168.071 | 8.168.071 |
The legal reserves consist of first and second legal reserves appropriated in accordance with the Turkish Commercial Code ("TCC"). The first legal reserve is appropriated out of the statutory profits at the rate of 5%, until the total reserve reaches a maximum of 20% of the Company's share capital. The second legal reserve is appropriated at the rate of 10% of all distributions in excess of 5% of the Company's share capital. Under TCC, the legal reserves can only be used to offset losses and are not available for any other usage unless they exceed 50% of paid in share capital.
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Legal reserves | 1.769.103 | 1.494.717 |
The differences arising as a result of converting the following inflation-adjusted amounts in the company's legal records into CPI-adjusted amounts within the scope of TAS 29 are accounted under the Retained Earnings item.
| Differences Tracked in | |||
|---|---|---|---|
| PPI-Indexed Legal | CPI Indexed | Past Years | |
| Records | Amounts | Profits/Losses | |
| Capital Adjustment Gains/Losses | 10.049.529 | 8.168.071 | 1.881.458 |
| Appropriated Retained Earnings | 2.317.533 | 1.769.103 | 548.430 |
In accordance with the provisions of the Turkish Commercial Code and the Tax Procedure Law, the Company paid TL 1.161.482 to the shareholders in cash as dividend for the 2023 accounting period in 25 July 2024 (gross TL 0,7259, net TL 0,6533 for each share with a nominal value of TL 1,00).
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January - | 1 January - | 1 April - | 1 April - | |
|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | |
| 2024 | 2023 | 2024 | 2023 | |
| Domestic sales | 11.623.815 | 11.515.231 | 5.819.707 | 6.437.922 |
| Overseas sales | 20.424.840 | 26.996.022 | 11.004.006 | 13.692.718 |
| Gross sales | 32.048.655 | 38.511.253 | 16.823.713 | 20.130.640 |
| Sales discounts (-) | (109.042) | (117.407) | (32.099) | (68.858) |
| Net sales | 31.939.613 | 38.393.846 | 16.791.614 | 20.061.782 |
| Cost of sales | (27.930.485) (33.635.410) (15.099.299) (17.059.768) | |||
| Gross profit | 4.009.128 | 4.758.436 | 1.692.315 | 3.002.014 |
| 1 January - | 1 January - | 1 April - | 1 April - | |
|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | |
| 2024 | 2023 | 2024 | 2023 | |
| Credit finance gains arising from trading activities | 194.647 | 162.451 | 87.680 | 109.686 |
| Foreign exchange gains arising from trading activities | 1.152.312 | 4.568.428 | 494.900 | 3.946.805 |
| Other income | 5.210 | 6.558 | 3.100 | 5.005 |
| 1.352.169 | 4.737.437 | 585.680 | 4.061.496 |
| 1 January - | 1 January - | 1 April - | 1 April - | ||
|---|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | ||
| 2024 | 2023 | 2024 | 2023 | ||
| Debit finance charges and interest income arising from trading activities | 904 | 1.268 | 354 | 1.123 | |
| Foreign exchange expenses arising from trading activities | 2.091.016 | 6.334.726 | 612.090 | 5.587.675 | |
| Other expenses | 49.521 | 177.581 | 29.202 | 81.056 | |
| 2.141.441 | 6.513.575 | 641.646 | 5.669.854 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January - | 1 January - | 1 April - | 1 April - | ||
|---|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | ||
| 2024 | 2023 | 2024 | 2023 | ||
| Foreign exchange gains | 324.913 | 1.731.984 | 15.028 | 1.594.906 | |
| Gains on derivative financial instruments | 189.185 | 620.629 | 104.555 | 138.992 | |
| Interest income | 107.092 | 190.739 | 38.499 | 100.923 | |
| 621.190 | 2.543.352 | 158.082 | 1.834.821 |
| 1 January - | 1 January - | 1 April - | 1 April - | ||
|---|---|---|---|---|---|
| 30 June | 30 June | 30 June | 30 June | ||
| 2024 | 2023 | 2024 | 2023 | ||
| Foreign exchange losses | 223.279 | 1.067.362 | 42.379 | 1.008.587 | |
| Losses on derivative financial instruments | 708.513 | 994.675 | 464.414 | 496.223 | |
| Interest expense | 1.882.428 | 1.075.245 | 1.078.117 | 706.738 | |
| Commission and other finance expenses | 282.086 | 374.043 | 126.718 | 259.577 | |
| 3.096.306 | 3.511.325 | 1.711.628 | 2.471.125 |
| 30 June 2024 | 31 December 2023 | |
|---|---|---|
| Corporation and income taxes | - | 161.356 |
| Prepaid taxes (-) | (107) | (169.246) |
| Current income tax liabilities - net | (107) | (7.890) |
| Deferred tax liabilities - net | (2.161.409) | (2.051.590) |
Pursuant to paragraph 1 of Article 6 of the Corporate Tax Law No. 5520, corporate tax is calculated on the net corporate income of the taxpayers for an accounting period. Pursuant to paragraph 2 of the same article, by taking into account the provisions of Income Tax Law No. 193 on commercial income, pure corporate income is calculated by adding legally unacceptable expenses to the commercial income and deducting the exempt earnings and discounts from the commercial income.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
With the amendment made to Article 32 of the Corporate Tax Law No. 5520 with Article 21 of the Law No. 7456, corporate taxpayers other than banks, companies within the scope of the Law No. 6361, electronic payment and money institutions, authorized foreign exchange institutions, asset management companies, capital market institutions, insurance and reinsurance companies and pension companies are subject to corporate tax at the rate of 25% on their net corporate earnings in 2024 and the following taxation periods.
In addition to the corporate tax levied on corporate income, withholding income/corporate tax burden may arise if all or part of the profits of corporations are subject to profit distribution. By full taxpayer corporations;
In case of dividend distribution, 10% withholding income/corporate tax is payable. According to the Turkish tax legislation, capitalization of profit is not considered as dividend distribution.
Corporations are exempt from corporate tax on 75% of the gains arising from the sale of participation shares included in their assets for at least two full years and 25% of the gains arising from the sale of immovables included in their assets on 15 July 2023 for the same period. As of 15 July 2023, corporate tax exemption is not applied to the gains arising from the sale of immovables taken into assets.
Under Turkish tax legislation, tax losses carried forward can be carried forward to offset against future taxable income for up to 5 years. However, tax losses cannot be offset against retained earnings.
However, tax authorities may examine the accounting records within five years and the amount of tax payable may change if incorrect transactions are detected.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
Earnings from the Company's investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or completely until the investment contribution amount is reached.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized in respect of deductible temporary differences, tax losses and tax advantages arising from investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.
For the periods 30 June 2024 and 30 June 2023, tax expenses recognized in the statement of comprehensive income are as follows;
| 1 January - | 1 January - | |
|---|---|---|
| 30 June 2024 | 30 June 2023 | |
| Current period tax expense | (2.104) | (185.209) |
| Deferred tax benefit | 10.909 | 437.047 |
| Total tax benefit | 8.805 | 251.838 |
Due to modernization, plant extension and investments incentive documents in Manisa Organized Industrial Zone, the Company has reduced rate of corporate tax advantage.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The breakdown of cumulative temporary differences and the resulting deferred tax assets and liabilities provided using principal tax rate as of the balance sheet dates is as follows:
| Cumulative temporary | ||||
|---|---|---|---|---|
| differences | Deferred tax | |||
| 30 June | 31 December | 30 June | 31 December | |
| 2024 | 2023 | 2024 | 2023 | |
| Deferred tax assets/(liabilities) | ||||
| Employment termination benefits | (730.870) | (844.005) | 182.718 | 211.001 |
| Invesment incentive | - | - | 823.000 | 925.258 |
| Net difference between recorded values and tax bases of tangible and | ||||
| intangible assets | 13.265.469 | 15.392.836 | (2.763.851) | (3.289.046) |
| Net difference between registered values of stocks and tax bases | 1.281.886 | 480.802 | (320.472) | (120.200) |
| Derivative financial instruments | 19.337 | (437.885) | (4.834) | 109.472 |
| Other | 311.880 | (447.702) | (77.970) | 111.925 |
| (2.161.409) (2.051.590) |
The Company's earnings from investments subject to incentive certificates are subject to corporate tax at reduced rates from the accounting period in which the investment starts to be operated partially or fully until the investment contribution amount is reached.
Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which they can be utilized. Where it is probable that taxable income will be available, deferred tax assets are recognized for deductible temporary differences, tax losses and investment incentives with indefinite useful lives that allow for the payment of reduced corporate income tax.
Furthermore, financial statements consist of the deferred tax effect of the temporary differences accounted by the adjustments made regarding inflation accounting together with the notification of the Corporate Tax Law dated 30 December 2023 and numbered 32415.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
As of 30 June 2024, the tax advantage amounting to TL 823.000 that the Company will benefit from in the foreseeable future is reflected in the financial statements as deferred tax asset. In line with the precautionary principle of accounting and in line with the budget made by the Company, the tax advantage arising from the investment incentives that the Company expects to benefit from in the coming year has been recognized as deferred tax asset in the financial statements.However, the tax advantage amounting to TL 3.476.712 that the Company is entitled to use has not been recognized in deferred tax assets in accordance with the precautionary principle of accounting.
Total tax advantage arising from investment incentive certificate used in the current period is TL 24.965.
The Company assesses the recoverability of deferred tax assets related to investment incentives based on business models that include estimates of taxable profit. These business models include forward-looking management estimates such as sales volumes, selling prices and exchange rate expectations. As a result of the sensitivity analyses on the forward-looking use of investment incentives, it has been concluded that a 10% increase/decrease in the related estimates has no impact on the recoverability of the related deferred tax assets.
The movement of net deferred tax assets and liabilities is as follows:
| 1 January - | 1 January - | |
|---|---|---|
| 30 June 2024 | 30 June 2023 | |
| Opening balance, 1 January | (2.051.590) | (725.436) |
| Tax benefit recognized in income statement | 10.909 | 437.047 |
| Recognized in shareholders' equity | (120.728) | (35.819) |
| Deferred tax assets at the end of the period, net | (2.161.409) | (324.208) |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| 1 January - | 1 January - | ||
|---|---|---|---|
| 30 June | 30 June | ||
| 2024 | 2023 | ||
| Net income / (loss) attributable to equity holders of the parent | 669.049 | 1.844.027 | |
| Weighted number of ordinary shares with a Kr 1 of par value (hundred shares) | 1.600.000.000 | 1.600.000.000 | |
| Earnings per share | 0,42 | 1,15 |
| 30 June 2024 | 31 December 2023 | ||||
|---|---|---|---|---|---|
| Fair Value | Fair Value | ||||
| Contract | Assets / | Contract | Assets / | ||
| amount | (Liabilities) | amount | (Liabilities) | ||
| Derivative financial instruments: | |||||
| Held for trading | |||||
| Forward foreign currency transactions | 3.899.837 | 40.649 | 579.538 | 3.962 | |
| Cash flow hedge | |||||
| Forward foreign currency transactions | 8.735.380 | 214.216 | 6.880.139 | 39.790 | |
| Derivative financial liabilities: | |||||
| Held for trading | |||||
| Forward foreign currency transactions | 5.126.468 | (200.569) | 4.012.445 | (70.712) | |
| Cash flow hedge | |||||
| Forward foreign currency transactions | 738.839 | (34.959) | 14.860.614 | (410.925) | |
| 18.500.524 | 19.337 | 26.332.736 | (437.885) |
The Company is exposed to exchange rate risk due to its foreign currency denominated transactions. The main principle of foreign currency risk management is to maintain foreign exchange position at the level that minimizes the impact of foreign exchange fluctuations. Derivative instruments are used in foreign currency risk management where necessary. In this respect the Company mainly prefers using foreign exchange forward contracts.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| USD | EUR | Other (TL | ||
|---|---|---|---|---|
| 30 June 2024 | (Thousand) | (Thousand) | Equivalent) TL Equivalent | |
| 1. Trade receivables | 24.195 | 204.772 | 132.833 | 8.120.376 |
| 2a. Monetary financial assets (including | ||||
| cash and cash equivalents) | 2.542 | 890 | 1.013 | 115.721 |
| 2b. Non-monetary financial assets | - | - | - | - |
| 3. Other | 8.056 | 5.043 | 373.016 | 814.616 |
| 4. Current assets (1+2+3) | 34.793 | 210.705 | 506.862 | 9.050.713 |
| 5. Trade receivables | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - |
| 6b. Non-monetary financial assets | - | - | - | - |
| 7. Other | - | - | - | - |
| 8. Non-current assets (5+6+7) | - | - | - | - |
| 9. Total assets (4+8) | 34.793 | 210.705 | 506.862 | 9.050.713 |
| 10. Trade payables | 278.085 | 221.332 | 206.598 | 17.140.556 |
| 11. Financial liabilities | 27.719 | 16.774 | - | 1.501.853 |
| 12a. Other monetary liabilities | 102 | 2 | 187 | 3.612 |
| 12b. Other non-monetary liabilities | - | - | - | - |
| 13. Current liabilities (10+11+12) | 305.906 | 238.108 | 206.785 | 18.646.021 |
| 14. Trade payables | - | 4.564 | - | 160.615 |
| 15. Financial liabilities | - | 7.267 | - | 255.738 |
| 16a. Other monetary liabilities | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - |
| 17. Non-current liabilities (14+15+16) | - | 11.831 | - | 416.353 |
| 18. Total liabilities (13+17) | 305.906 | 249.939 | 206.785 | 19.062.374 |
| 19. Off-balance sheet derivative instruments | ||||
| net asset / (liability) position (19a+19b)(*) | 391.752 | (256.872) | (703.527) | 3.106.650 |
| 19a. Hedged total assets | 466.443 | 84.927 | 205.650 | 18.500.551 |
| 19b. Hedged total liabilities | (74.691) | (341.799) | (909.177) | (15.393.901) |
| 20. Net foreign currency asset/ (liability) | ||||
| position (9-18+19) | 120.639 | (296.106) | (403.450) | (6.905.011) |
| 21. Net foreign currency monetary asset/ | ||||
| (liability) position | ||||
| (=1+2a+3+5+6a+7-10-11-12a-14-15-16a) | (271.113) | (39.234) | 300.077 | (10.011.661) |
| 22. Fair value of financial instruments used | ||||
| in foreign currency hedging | - | - | - | 19.337 |
| 23. Export | 60.965 | 524.710 | 646.532 | 20.424.840 |
| 24. Import | 266.526 | 84.464 | 23.059 | 11.345.571 |
(*) Consists of net asset/(liability) positions of off-balance sheet derivative instruments denominated in foreign currencies.
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| USD | EUR | Other (TL | ||
|---|---|---|---|---|
| 31 December 2023 | (Thousand) | (Thousand) | Equivalent) TL Equivalent | |
| 1. Trade receivables | 16.067 | 182.605 | 198.433 | 8.256.898 |
| 2a. Monetary financial assets (including | ||||
| cash and cash equivalents) | 18.739 | 2.341 | 590 | 783.942 |
| 2b. Non-monetary financial assets | - | - | - | - |
| 3. Other | 52.992 | 47.760 | 2 | 3.886.382 |
| 4. Current assets (1+2+3) | 87.798 | 232.706 | 199.025 | 12.927.222 |
| 5. Trade receivables | - | - | - | - |
| 6a. Monetary financial assets | - | - | - | - |
| 6b. Non-monetary financial assets | 6.636 | 2.017 | - | 325.624 |
| 7. Other | - | - | - | - |
| 8. Non-current assets (5+6+7) | 6.636 | 2.017 | - | 325.624 |
| 9. Total assets (4+8) | 94.434 | 234.723 | 199.025 | 13.252.846 |
| 10. Trade payables | 245.638 | 193.029 | 87.968 | 17.002.809 |
| 11. Financial liabilities | 31.573 | 12.461 | - | 1.668.654 |
| 12a. Other monetary liabilities | - | - | 19.675 | 24.542 |
| 12b. Other non-monetary liabilities | - | - | - | - |
| 13. Current liabilities (10+11+12) | 277.211 | 205.490 | 107.643 | 18.696.005 |
| 14. Trade payables | - | 5.460 | - | 222.245 |
| 15. Financial liabilities | - | 7.890 | - | 321.155 |
| 16a. Other monetary liabilities | - | - | - | - |
| 16b. Other non-monetary liabilities | - | - | - | - |
| 17. Non-current liabilities (14+15+16) | - | 13.350 | - | 543.400 |
| 18. Total liabilities (13+17) | 277.211 | 218.840 | 107.643 | 19.239.405 |
| 19. Off-balance sheet derivative instruments | ||||
| net asset / (liability) position (19a+19b) | 663.267 | (524.859) | (398.637) | 2.491.169 |
| 19a. Hedged total assets | 675.619 | 23.517 | 455.990 | 26.332.737 |
| 19b. Hedged total liabilities | (12.352) | (548.376) | (854.627) | (23.841.567) |
| 20. Net foreign currency asset/ (liability) | ||||
| position (9-18+19) | 480.490 | (508.976) | (307.255) | (3.495.389) |
| 21. Net foreign currency monetary asset/ | ||||
| (liability) position | ||||
| (=1+2a+5+6a-10-11-12a-14-15-16a) | (189.413) | 13.866 | 91.382 | (6.312.183) |
| 22. Fair value of financial instruments used | ||||
| in foreign currency hedging | - | - | - | (437.886) |
| 23. Export | 132.539 | 1.231.812 | 753.533 | 53.770.331 |
| 24. Import | 526.414 | 192.062 | 28.675 | 21.348.769 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
As of 30 June 2024 and 31 December 2023, sensitivity analysis of foreign exchange rate tables is presented below, secured portions include impact of derivative instruments.
| Gain / Loss | Equity | ||||
|---|---|---|---|---|---|
| Foreign | Foreign | Foreign | Foreign | ||
| exchange | exchange | exchange | exchange | ||
| 30 June 2024 | appreciation | depreciation | appreciation | depreciation | |
| +/- 10% fluctuation of USD rate: | |||||
| USD net asset / liability | (893.651) | 893.651 | (893.651) | 893.651 | |
| Secured portion from USD risk (-) | 375.358 | (375.358) | 1.231.143 | (1.231.143) | |
| USD net effect | (518.293) | 518.293 | 337.492 | (337.492) | |
| +/- 10% fluctuation of EUR rate: | |||||
| EUR net asset / liability | (141.662) | 141.662 | (141.662) | 141.662 | |
| Secured portion from EUR risk (-) | (81.341) | 81.341 | (953.457) | 953.457 | |
| EUR net effect | (223.003) | 223.003 | (1.095.119) | 1.095.119 | |
| +/- 10% fluctuation of other currency rates: | |||||
| Other currencies net asset / liability | 30.008 | (30.008) | 30.008 | (30.008) | |
| Secured portion from other currency risk (-) | (43.557) | 43.557 | (4.606) | 4.606 | |
| Other currency net effect | (13.549) | 13.549 | 25.402 | (25.402) | |
| Total | (754.845) | 754.845 | (732.225) | 732.225 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
| Gain / Loss | Equity | |||
|---|---|---|---|---|
| Foreign | Foreign | Foreign | Foreign | |
| 31 December 2023 | exchange | exchange | exchange | exchange |
| appreciation | depreciation | appreciation | depreciation | |
| +/- 10% fluctuation of USD rate: | ||||
| USD net asset / liability | (672.987) | 672.987 | (672.987) | 672.987 |
| Secured portion from USD risk (-) | 503.610 | (503.610) | 2.397.587 | (2.397.587) |
| USD net effect | (169.377) | 169.377 | 1.724.600 | (1.724.600) |
| +/- 10% fluctuation of EUR rate: | ||||
| EUR net asset / liability | 62.932 | (62.932) | 62.932 | (62.932) |
| Secured portion from EUR risk (-) | (214.747) | 214.747 | (2.201.161) | 2.201.161 |
| EUR net effect | (151.815) | 151.815 | (2.138.229) | 2.138.229 |
| +/- 10% fluctuation of other currency rates: | ||||
| Other currencies net asset / liability | 11.398 | (11.398) | 11.398 | (11.398) |
| Secured portion from other currency risk (-) | 7.074 | (7.074) | 54.247 | (54.247) |
| Other currency net effect | 18.472 | (18.472) | 65.645 | (65.645) |
| Total | (302.720) | 302.720 | (347.984) | 347.984 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
The Company classifies the fair value measurement of each class of financial instruments according to the source, using the three level hierarchy, as follows:
Level 1: Market price valuation techniques for the determined financial instruments traded in markets (unadjusted)
Level 2: Other valuation techniques includes direct or indirect observable inputs
Level 3: Valuation techniques do not contain observable market inputs
Fair value hierarchy tables as of 30 June 2024 and 31 December 2023 are as follows:
| 30 June 2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Financial assets | ||||
| Derivative financial instruments | - | 19.337 | - | 19.337 |
| 31 December 2023 | Level 1 | Level 2 | Level 3 | Total |
| Financial assets | ||||
| Derivative financial instruments | - | (437.884) | - | (437.884) |
The Company's non-financial assets, calculated at fair value as of 30 June 2024 and 31 Dcember 2023 are as follows:
| 30 June 2024 | Level 1 | Level 2 | Level 3 | Total |
|---|---|---|---|---|
| Tangible Assets | ||||
| Lands | - | 8.840.260 | - | 8.840.260 |
| Buildings and land improvements | - | 6.917.355 | - | 6.917.355 |
| 31 December 2023 | Level 1 | Level 2 | Level 3 | Total |
| Tangible Assets | ||||
| Lands | - | 8.840.260 | - | 8.840.260 |
(Amounts expressed in thousands of Turkish Lira ("TL") in terms of the purchasing power of TL as of 30 June 2024 unless otherwise stated.)
None.
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