Quarterly Report • Nov 8, 2024
Quarterly Report
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(CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
| CONTENTS | PAGE |
|---|---|
| CONDENSED CONSOLIDATED BALANCE SHEET |
1-2 |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND OTHER COMPREHENSIVE INCOME | 3 |
| CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY |
4 |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
5 |
CONDENSED CONSOLIDATED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS............ 6-39
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
| Unaudited | Audited | ||
|---|---|---|---|
| ASSETS | Note | 30 September 2024 |
31 December 2023 |
| CURRENT ASSETS | |||
| Cash And Cash Equivalents | 346.318.399 | 714.715.708 | |
| Financial Investments | 3.239.031 | 15.826.906 | |
| Trade Receivables | 1.737.628.944 | 2.260.740.761 | |
| Due From Related Parties | 3-4 | -- | -- |
| Trade Receivables, Third Parties | 4 | 1.737.628.944 | 2.260.740.761 |
| Other Receivables | 4.079.102 | 2.849.191 | |
| Due From Related Parties | -- | 177.379 | |
| Other Receivables, Third Parties | 4.079.102 | 2.671.812 | |
| Inventories | 6 | 3.297.735.775 | 2.831.043.906 |
| Prepaid Expenses | 777.284.363 | 845.878.932 | |
| Due From Related Parties | 3-7 | 34.828.185 | 3.924.531 |
| Prepaid Expenses, Third Parties | 7 | 742.456.178 | 841.954.401 |
| Current Period Tax-Related Assets | 34.644.386 | -- | |
| Other Current Assets | 5 | 1.006.215.180 | 978.223.214 |
| TOTAL CURRENT ASSETS | 7.207.145.180 | 7.649.278.618 | |
| NON-CURRENT ASSETS | |||
| Financial Investments | 1.521.160 | 1.521.160 | |
| Other Receivables | 3.134.577 | 8.219.494 | |
| Due From Related Parties | -- | -- | |
| Other Receivables, Third Parties | 3.134.577 | 8.219.494 | |
| Right of Use Assets | 955.098.498 | 1.164.920.894 | |
| Investment Properties | 177.330.351 | 177.330.351 | |
| Tangible Fixed Assets | 8 | 5.444.429.546 | 5.335.873.664 |
| Intangible Fixed Assets | 518.645.349 | 417.065.364 | |
| Prepaid Expenses | 7 | 186.134.417 | 83.988.001 |
| TOTAL NON-CURRENT ASSETS | 7.286.293.898 | 7.188.918.928 | |
| TOTAL ASSETS | 14.493.439.078 | 14.838.197.546 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
| Unaudited | Audited | ||
|---|---|---|---|
| LIABILITIES | Note | 30 September 2024 |
31 December 2023 |
| CURRENT LIABILITIES | |||
| Financial Liabilities | 9 | 1.543.519.218 | 1.936.321.908 |
| Short Term Portion Of Long Term Financial Liabilities | 9 | 2.342.402.604 | 1.313.147.454 |
| Lease Payables | 9 | 139.166.577 | 222.022.463 |
| Trade Payables | 1.277.874.694 | 2.010.661.073 | |
| Due To Related Parties | 3-4 | -- | -- |
| Trade Payables, Third Parties | 4 | 1.277.874.694 | 2.010.661.073 |
| Employee Benefit Obligations | 10 | 181.993.870 | 266.565.253 |
| Other Payables | 4.736.613 | 1.861.500 | |
| Due To Related Parties | -- | -- | |
| Other Payables, Third Parties | 4.736.613 | 1.861.500 | |
| Deferred Income | 7 | 525.631.422 | 685.264.223 |
| Current Income Tax Liabilities | 18 | -- | 92.494.572 |
| Provisions | 3.838.199 | 4.321.427 | |
| Other Current Liabilities | 5 | 47.887.473 | 59.484.130 |
| TOTAL CURRENT LIABILITIES | 6.067.050.670 | 6.592.144.003 | |
| NON-CURRENT LIABILITIES | |||
| Financial Liabilities | 9 | 958.348.422 | 985.893.031 |
| Lease Payables | 9 | 236.899.615 | 459.686.491 |
| Deferred Income | 7 | 9.009.769 | 11.765.448 |
| Provisions | 127.314.118 | 59.176.184 | |
| Provision For Employee Benefits | 127.314.118 | 59.176.184 | |
| Deferred Tax Liabilities | 18 | 609.910.020 | 377.962.708 |
| TOTAL NON-CURRENT LIABILITIES | 1.941.481.944 | 1.894.483.862 | |
| EQUITY | |||
| Paid-In Capital | 12 | 149.798.932 | 149.798.932 |
| Inflation Adjustment on Capital | 12 | 1.368.993.498 | 1.368.993.498 |
| Buy-Back Shares (-) | 12 | (225.065.238) | (225.065.238) |
| Other Comprehensive Income Not To Be Reclassified To Profit Or | |||
| Loss | (30.550.018) | 26.266.825 | |
| Actuarial Gain/Loss Arising From Defined Benefit Plans | (30.550.018) | 26.266.825 | |
| Other Comprehensive Income To Be Reclassified To Profit Or Loss | 1.319.105 | (35.322.842) | |
| Currency Translation Differences | 12 | 1.319.105 | (35.322.842) |
| Restricted Reserves | 394.991.068 | 394.991.068 | |
| Retained Earnings | 4.671.907.438 | 3.720.412.790 | |
| Net Income For The Period | 153.511.679 | 951.494.648 | |
| EQUITY HOLDERS OF THE PARENT | 6.484.906.464 | 6.351.569.681 | |
| TOTAL LIABILITES | 14.493.439.078 | 14.838.197.546 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
| Unaudited 1 January – |
Unaudited 1 July – |
Unaudited 1 January – |
Unaudited 1 July – |
||
|---|---|---|---|---|---|
| INCOME/LOSS | Note | 30 Sep. 2024 |
30 Sep. 2024 |
30 Sep. 2023 |
30 Sep. 2023 |
| Revenue | 13 | 11.379.664.857 | 3.458.193.443 | 12.958.147.123 | 3.838.424.728 |
| Cost Of Sales (-) | 14 | (7.849.115.916) | (2.377.482.273) | (9.166.896.457) | (2.780.635.509) |
| Gross profit | 3.530.548.941 | 1.080.711.170 | 3.791.250.666 | 1.057.789.219 | |
| General Administrative Expenses (-) | 15 | (64.257.021) | (20.917.284) | (65.764.465) | (21.520.514) |
| Marketing, Selling And Distribution Expenses (-) | 15 | (2.501.057.473) | (711.058.975) | (2.515.757.606) | (853.432.519) |
| Research And Development Expenses (-) | 15 | (454.955.442) | (178.548.767) | (439.912.557) | (153.412.028) |
| Other Income From Operating Activities | 959.075.517 | 257.377.543 | 708.912.277 | 228.814.082 | |
| Other Expenses From Operating Activities (-) | (475.103.825) | (47.037.527) | (651.063.555) | (278.643.362) | |
| Operating Profit / Loss | 994.250.697 | 380.526.160 | 827.664.760 | (20.405.122) | |
| Income From Investment Activities | 40.025.618 | 2.333.008 | 19.381.584 | 16.860.005 | |
| Expenses From Investment Activities (-) | -- | -- | -- | -- | |
| OPERATING INCOME BEFORE FINANCIAL INCOME | 1.034.276.315 | 382.859.168 | 847.046.344 | (3.545.117) | |
| Financial Expenses (-) | 16 | 27.652.483 | 6.357.632 | 63.788.332 | 12.998.852 |
| Financial Income | 17 | (1.371.249.265) | (491.770.774) | (721.632.518) | (280.734.391) |
| Monetary Gain / (Loss) | 813.481.673 | 275.658.737 | 910.163.293 | 487.905.219 | |
| PROFIT BEFORE TAX | 504.161.206 | 173.104.763 | 1.099.365.451 | 216.624.563 | |
| Tax income/(expense) | (350.649.527) | (119.377.563) | (194.686.274) | 89.454.963 | |
| Taxes On Income | -- | 5.391.102 | (163.799.213) | 1.172.765 | |
| Deferred Tax Income/(Expense) | 18 | (350.649.527) | (124.768.665) | (30.887.061) | 88.282.198 |
| Profit/Loss for the Period from Discontinued | |||||
| Operations | -- | -- | -- | -- | |
| PERIOD PROFIT / LOSS | 153.511.679 | 53.727.200 | 904.679.177 | 306.079.526 | |
| Earnings Per Share | |||||
| Earnings Per Share | 1,02 | 0,36 | 6,04 | 2,04 | |
| OTHER COMPREHENSIVE INCOME | |||||
| Other Comprehensive Income/Expense Not To Be | |||||
| Reclassified To Profit Or Loss | (56.816.843) | 6.653.798 | -- | 1.631.046 | |
| Actuarial Gain/Loss Arising From Defined Benefit Plans | (75.755.791) | 8.871.730 | -- | 2.091.085 | |
| Tax Income/(Expense) | 18.938.948 | (2.217.932) | -- | (460.039) | |
| Deferred Tax (Expense) Income | 18 | 18.938.948 | (2.217.932) | -- | (460.039) |
| Other Comprehensive Income/Loss To Be | |||||
| Reclassified To Profit Or Loss | 36.641.947 | 8.258.654 | (120.545.011) | (91.916.081) | |
| Currency Translation Differences | 12 | 36.641.947 | 8.258.654 | (120.545.011) | (91.916.081) |
| OTHER COMPREHENSIVE INCOME (LOSS) | (20.174.896) | 14.912.452 | (120.545.011) | (90.285.035) | |
| TOTAL OTHER COMPREHENSIVE INCOME (LOSS) | 133.336.783 | 68.639.652 | 784.134.166 | 215.794.491 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
| Other | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Other | Comprehensive | ||||||||
| Comprehensive | Income/Loss to | ||||||||
| Income/Expense Not | Be Reclassified | ||||||||
| to Be Reclassified | To Profit Or | ||||||||
| To Profit Or Loss | Loss | ||||||||
| Inflation | Actuarial Gain/Loss | Currency | Net Income | ||||||
| Paid In | Adjustment on | Buy-Back | Arising from Defined | Translation | Restricted | Retained | for The | ||
| Capital | Capital | Shares | Benefit Plans | Differences | Reserves | Earnings | Period | Total Equity | |
| (Note 20) | (Note 20) | (Note 20) | (Note 20) | (Note 20) | (Note 20) | (Note 20) | (Note 20) | (Note 20) | |
| Balance as of January 1, 2023 | 149.798.932 | 1.368.993.498 | (225.065.238) | (16.811.219) | (18.378.432) | 380.416.372 | 3.637.850.147 | 475.427.146 | 5.752.231.206 |
| Transfer of Previous Period's Profit | -- | -- | -- | -- | -- | 15.297.652 | 460.129.494 | (475.427.146) | -- |
| Total Comprehensive Income | -- | -- | -- | -- | (120.545.011) | -- | -- | 904.679.177 | 784.134.166 |
| Dividends | -- | -- | -- | -- | -- | -- | (260.039.982) | -- | (260.039.982) |
| Increase/Decrease Due to Other Changes | -- | -- | -- | -- | -- | 831.252 | (831.252) | -- | -- |
| Balance as of September 30, 2023 | 149.798.932 | 1.368.993.498 | (225.065.238) | (16.811.219) | (138.923.443) | 396.545.276 | 3.837.108.407 | 904.679.177 | 6.276.325.390 |
| Balance as of January 1, 2024 | 149.798.932 | 1.368.993.498 | (225.065.238) | 26.266.825 | (35.322.842) | 394.991.068 | 3.720.412.790 | 951.494.648 | 6.351.569.681 |
| Transfer of Previous Period's Profit | -- | -- | -- | -- | -- | -- | 951.494.648 | (951.494.648) | -- |
| Total Comprehensive Income | -- | -- | -- | (56.816.843) | 36.641.947 | -- | -- | 153.511.679 | 133.336.783 |
| Balance as of September 30, 2024 | 149.798.932 | 1.368.993.498 | (225.065.238) | (30.550.018) | 1.319.105 | 394.991.068 | 4.671.907.438 | 153.511.679 | 6.484.906.464 |
INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE PERIODS ENDED AT 1 JANUARY - 30 SEPTEMBER 2024 AND 2023 (Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
| Unaudited | Unaudited | ||
|---|---|---|---|
| 1 January – | 1 January – | ||
| CASH FLOWS FROM OPERATING ACTIVITIES | Note | 30 September 2024 | 30 September 2023 |
| Net Income/(Loss) | 153.511.679 | 904.679.177 | |
| Adjustments for Net Income/(Loss) Reconciliation | |||
| Adjustments for Depreciation and Amortization Expense | 8 | 593.644.445 | 525.209.920 |
| Adjustments for Impairment (Reversal) Losses | 15.124.380 | 1.244.364 | |
| Adjustments for Impairment (Reversal) Losses on Receivables | 4 | 4.955.583 | 1.244.364 |
| Adjustments for Impairment (Reversal) Losses on Inventory | 6 | 10.168.797 | -- |
| Adjustments for Provisions | 83.757.489 | 46.763.289 | |
| Adjustments for Employee Benefits Provisions (Reversal) | 83.757.489 | 46.763.289 | |
| Adjustments for Interest (Income) and Expenses | 862.054.376 | 389.021.962 | |
| Adjustments for Interest Income | 16 | (12.949.057) | (13.267.461) |
| Adjustments for Interest Expenses | 17 | 900.572.140 | 411.290.689 |
| Deferred Financing Expenses Arising from Deferred Purchases | 4 | 85.537.389 | 32.238.064 |
| Unearned Finance Income Arising from Deferred Sales | 4 | (111.106.096) | (41.239.330) |
| Adjustments for Tax (Income) Expense Adjustments for Monetary (Gains)/Losses |
18 | 350.649.527 409.234.624 |
194.686.274 274.391.301 |
| Pre-change in Net Assets | 2.467.976.520 | 2.335.996.287 | |
| Changes in Operating Working Capital | |||
| Decrease (Increase) in Financial Investments | 8.410.363 | -- | |
| Decrease (Increase) in Trade Receivables Adjustments | 4 | 32.539.745 | (626.734.581) |
| Decrease (Increase) in Other Receivables Related to Operations Adjustments | 933.423 | (14.759.850) | |
| Decreases (Increases) in Inventories Adjustments | 6 | (476.860.666) | (719.535.168) |
| Decrease (Increase) in Prepaid Expenses | 7 | (224.465.451) | (541.759.913) |
| Increase (Decrease) in Trade Payables Adjustments | 4 | (287.609.724) | 370.596.714 |
| Increase (Decrease) in Employee Benefits Payable Related to Operations | 10 | (71.028.320) | 74.285.850 |
| Increase (Decrease) in Other Payables Related to Operations Adjustments | 3.366.456 | 493.431 | |
| Increase (Decrease) in Deferred Revenue (Other than Liabilities Arising from Customer Contracts) | 7 | 35.937.127 | 566.578.131 |
| Decrease (Increase) in Other Assets Related to Operations | 5 | (286.194.010) | (227.894.830) |
| Increase (Decrease) in Other Liabilities Related to Operations | 5 | 4.761.594 | 71.715.129 |
| Cash Flows from Operating Activities | 1.207.767.057 | 1.288.981.200 | |
| Tax Refunds (Payments) | 18 | (245.841.173) | (116.520.192) |
| Other Cash Inflows (Outflows) | -- | (332.512) | |
| Changes in Operating Working Capital | 961.925.884 | 1.172.128.496 | |
| CASH FLOWS FROM INVESTING ACTIVITIES | |||
| Cash Inflows from Sales of Property, Plant, and Equipment | 8 | 5.843.676 | 13.760.276 |
| Cash Outflows from Purchases of Property, Plant, and Equipment | 8 | (599.801.592) | (833.261.762) |
| Cash Advances and Loans Given | -- | (34.681.229) | |
| Cash Flows Used in Investing Activities | (593.957.916) | (854.182.715) | |
| CASH FLOWS FROM FINANCING ACTIVITIES | |||
| Cash Inflows from Borrowings | 9 | 3.756.991.102 | 2.551.169.264 |
| Cash Outflows for Repayment of Borrowings | 9 | (3.162.567.987) | (1.665.599.983) |
| Cash Outflows for Lease Payments Related to Borrowings | 9 | (343.952.601) | (48.600.012) |
| Dividends Paid | -- | (260.039.982) | |
| Interest Paid | 17 | (847.777.565) | (406.083.541) |
| Interest Received | 16 | 12.949.057 | 13.267.461 |
| Other Cash Inflows (Outflows) | -- | 6.787.149 | |
| Cash Flows Used in Financing Activities | (584.357.994) | 190.900.356 | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEFORE EFFECTS OF FOREIGN | |||
| CURRENCY TRANSLATION | (216.390.026) | 508.846.137 | |
| Effects of Foreign Currency Translation on Cash and Cash Equivalents | 12 | 36.641.947 | (120.545.011) |
| Effect of Inflation on Cash and Cash Equivalents | (188.649.230) | (423.311.925) | |
| NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (368.397.309) | (35.010.799) | |
| CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 714.715.708 | 765.075.482 | |
| CASH AND CASH EQUIVALENTS AT END OF PERIOD | 346.318.399 | 730.064.683 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Yataş Yatak ve Yorgan Sanayi Ticaret Anonim Şirketi ("Parent Company") and its subsidaries are reffred as "Group" on the notes to the condensed consolidated financial statements.
The summarized information of entities which are consolidated with "complete consolidation method" is comprised of the following;
Yataş Yatak ve Yorgan Sanayi Ticaret A.Ş. ("Company") was established in 1987. The Company's engaged in the production of bed, furniture, quilt, armchair, sofa, home textile and home furniture. The Company acquired and merged with İstanbul Pazarlama Yatak ve Yorgan Sanayi Ticaret A.Ş ("Yataş İstanbul Pazarlama A.Ş.") on 28 Feburary 2011. The Company established 'Yatas Europe GMBH' On 10.07.2015 as owner of 100% shares. Therefore the Company begin to prepare its consolidated financial statements in complete consolidation method.
For the period ended at 30 September 2024, 3.223 personnel are employed at the Company (31 December 2023: 3.700).
Company registered on the Kayseri Chamber of Industry with the number of 14222 and its legal adres Organize Sanayi Bölgesi 18. Cadde No:6 Melikgazi / Kayseri. The Company has 101 stores located on Turkey.
The Company is registered to the Capital Markets Board ("CMB") and its shares have been quoted on the Borsa Istanbul ("BIST") since 1996.
Company's shareholding structure is mentioned in Note 12.
Yatas Europe Gmbh ("Yatas Europe") was established in 10.07.2015 in Germany. The Company's engaged in export and import of Bed, Furniture, Quilt, Armchair, Sofa, Home Textile and Home Furniture.
For the period ended at 30 September 2024, 8 personnel are employed by the Company (31 December 2023: 8 Personnel). Yatas Europe's shareholding structure as of 30 September 2024 in EUR are as following;
| 30 September 2024 |
31 December 2023 | ||||||
|---|---|---|---|---|---|---|---|
| Share Share Amount |
Share | Share Amount | |||||
| Shareholders | Percentage | (EUR) | Percentage | (EUR) | |||
| Yataş Yatak ve Yorgan Sanayi Ticaret A.Ş. | %100 | 100.000 | %100 | 100.000 | |||
| Total | %100 | 100.000 | %100 | 100.000 |
Yatas Rus Limidet Şirketi ("Yatas Rus"), was established in 03.07.2019 in Russia. The Company's engaged in export and import of Bed, Furniture, Quilt, Armchair, Sofa, Home Textile and Home Furniture. For the period ended at 30 September 2024, 10 personnel are employed by the Yatas Rus. Yatas Rus's shareholding structure as of (31 December 2023: 10 Personnel).
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 30 September 2024 |
31 December 2023 | |||||
|---|---|---|---|---|---|---|
| Share Share Amount |
Share | Share Amount | ||||
| Shareholders | Percentage | (RUB) | Percentage | (RUB) | ||
| Yataş Yatak ve Yorgan Sanayi Ticaret A.Ş. | %100 | 3.500.000 | %100 | 3.500.000 | ||
| Total | %100 | 3.500.000 | %100 | 3.500.000 |
EnzaHome International Inc. ("EnzaHome"), was established in 21.02.2020 in ABD. The Company's engaged in export and import of Bed, Furniture, Quilt, Armchair, Sofa, Home Textile and Home Furniture. For the period ended at 30 September 2024, 5 personnel are employed by the EnzaHome. EnzaHome's shareholding structure as of (31 December 2023: 5 Personnel).
30 September 2024 in USD is as following;
| 30 September | 2024 | 31 December 2023 | ||
|---|---|---|---|---|
| Share Share Amount |
Share | Share Amount | ||
| Shareholders | Percentage | (USD) | Percentage | (USD) |
| Yataş Yatak ve Yorgan Sanayi Ticaret A.Ş. | %100 | 50.000 | %100 | 50.000 |
| Total | %100 | 50.000 | %100 | 50.000 |
The Group's summary consolidated financial statements have been prepared in accordance with the provisions of the Communiqué No. II, 14.1 on "Principles of Financial Reporting in Capital Markets" ("Communiqué") published in the Official Gazette No. 28676 dated June 13, 2013, by the Capital Markets Board (CMB), based on the Turkish Financial Reporting Standards ("TFRS") issued by the Public Oversight Accounting and Auditing Standards Authority ("KGK"), which are in line with international standards. TFRS is updated through communiqués to ensure parallelism with changes in International Financial Reporting Standards ("IFRS").
The interim summary consolidated financial statements have been presented in accordance with the formats specified in the "Announcement on TFRS Taxonomy" published by the KGK on July 3, 2024, and the Financial Statement Examples and Usage Guide published by the CMB.
The Group prepared the interim summary consolidated financial statements for the interim accounting period ending on September 30, 2024, in accordance with the TMS 34 Interim Financial Reporting standard. The interim summary consolidated financial statements do not include all the information required in the annual financial statements and should be read in conjunction with the Group's annual financial statements prepared as of December 31, 2023.
Subsidiaries and joint ventures operating in foreign countries have prepared their legal financial statements in accordance with the laws and regulations applicable in the countries where they operate. The summary consolidated financial statements have been prepared based on the historical cost basis, except for revaluations arising from derivative financial investments measured at fair value.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The condensed consolidated financial statements including the accounts of the parent company, its subsidiaries and associates have been prepared assuming that the Group will continue as a going concern on the basis that the entity will be able to realize its assets and discharge its liabilities in the normal course of business.
Condensed consolidated financial statements of the Group are approved by the Board of Directors and granted authority to publish on November 8, 2024. With no intention, the Board of Directors and some regulative agencies have the right to change the financial statements that were prepared according to legal regulations after they have been published.
Pursuant to the Capital Markets Board's ("CMB") decision dated December 28, 2023, numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to implement inflation accounting in accordance with the provisions of IAS 29, starting with financial reports for the fiscal periods ending on or after December 31, 2023.
In accordance with the announcement and "Practice Guide on Financial Reporting in High Inflationary Economies" published by the Public Oversight Accounting and Auditing Standards Authority ("POAASA") on 23 November 2023, the Group has prepared its condensed consolidated financial statements for the year ended 30 September 2024 using the TAS 29 "Financial Reporting in High Inflationary Economies" Standard. Pursuant to this standard, financial statements prepared based on the currency of a high inflationary economy are expressed in terms of the purchasing power of that currency at the balance sheet date, and comparative information for prior periods is also expressed in the current measurement unit at the end of the reporting period for comparison purposes. Therefore, the Group has presented its condensed consolidated financial statements as of 31 December 2023 and 30 September 2023 in terms of purchasing power as of 30 September 2024.
The adjustments made in accordance with TAS 29 have been made using the adjustment coefficient obtained from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute ("TSI"). As of 31 December 2023, the indices and adjustment coefficients used in the correction of the condensed consolidated financial statements are as follows:
| Correction | Three-Year Compound | ||
|---|---|---|---|
| Date | Index | Coefficient | Inflation Rate |
| 30 September 2024 |
2.526,16 | 1,00000 | %343 |
| 31 December 2023 | 1.859,38 | 1,35860 | %268 |
| 30 September 2023 |
1.691,04 | 1,49385 | %254 |
The main elements of the adjustment process undertaken by the Group for financial reporting in high inflationary economies are as follows:
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The financial statements and the prior period financial statements for comparison purpose, in the accompanying statements are prepared in terms of Turkish Lira (TRY).
The financial statements of subsidiaries operating in countries other than Turkey are prepared in accordance with the laws and regulations applicable in the country where they operate, and necessary adjustments and classifications have been reflected for the correct presentation in accordance with the Turkish Accounting Standards and Turkish Financial Reporting Standards and their related appendices and interpretations published by the Public Oversight Accounting and Auditing Standards Authority.
The assets and liabilities of the related subsidiaries are converted into Turkish Lira using the exchange rate at the date of the condensed consolidated financial position table, and income and expenses are converted using the average exchange rate for the accounting period ending on the same date. The exchange differences arising from the use of the exchange rate at the date of the financial position table and the average rate are shown under the "Foreign Currency Conversion Differences" item in the financial position table.
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial position when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.
The companies are subject to "Complete Consolidation Method" if directly or indirectly 50% or more than 50% of their shares or over 50% of their voting rights or the controlling rights regarding companies' operations are belonging to the Parent Company. Parent Company has controlling rights if it is able to govern the financial and operating policies of an enterprise so as to benefit from its activities. The companies which have continuous relationship on management and power to govern Parent Company's policies and/or which have direct or indirect capital and management relationship or which have voting share of Parent Company between the rates 20-50% are accounted by using equity pick-up method.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The principles of consolidation followed in the preparation of the accompanying financial statements are as follows:
The portion of the third parties other than condensed consolidated companies in the net profit or losses of the subsidiaries are classified as "Minority Interest" in the income statements. The 100% shares of the subsidiary is owned by the Parent Company therefore minortiy interest is not occured.
As of 30 September 2024 the Company that are subject to "Complete Consolidation Method" if directly or indirectly 50% or more than 50% of their shares or over 50% of their voting rights or the controlling rights regarding companies' operations are belonging to the Parent Company are as below;
| Ownership of the Parent Company | ||||
|---|---|---|---|---|
| Subsidiaries | (Direct) | (Direct+ Indirect) | ||
| Yatas Europe Gmbh | %100 | %100 | ||
| Yatas Rus Limidet | %100 | %100 | ||
| EnzaHome International Inc. | %100 | %100 |
As at 31 March 2024, the accounting policies adopted in preparation of the condensed consolidated interim financial statements for the year ended 31 March 2024 are consistent with those of the previous financial year, except for the adoption of new and amended TFRS and TFRIC interpretations effective as of 1 January 2024.
The effects of these standards and interpretations on the financial position and performance of the Group are disclosed in the related paragraphs.
TAS 1 (Amendments) Classification of Liabilities as Current or Non-Current IFRS 16 (Amendments) Lease Liability in a Sale and Leaseback Transaction TAS 1 (Amendments) Long-term liabilities with loan contract terms TAS 7 and TFRS 7 (Amendments) Supplier Financing Arrangements TSRS 1 General requirements for disclosure of sustainability-related financial information TSRS 2 Climate Related Disclosures
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The purpose of these amendments is to ensure consistent application of the requirements of the standard by assisting entities in making decisions about whether debt and other liabilities in the statement of financial position that have no fixed maturity should be classified as current (expected to be settled within one year) or non-current.
These amendments to IAS 1 will be effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
The Group is in the process of assessing the potential impact of the standard, amendments and improvements on the consolidated financial position and performance of the Group.
These amendments to TFRS 16 clarify how a seller-lessee subsequently measures sale and leaseback transactions that meet the requirements in TFRS 15 to be recognised as sales.
These amendments to TFRS 16 are effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
The Group is in the process of assessing the potential impact of these standards, amendments and improvements on the consolidated financial position and performance of the Group.
The amendments to TAS 1 clarify how conditions that an entity must meet within twelve months of the reporting period affect the classification of a liability.
The amendments to TAS 1 are effective for annual periods beginning on or after 1 January 2024, with earlier application permitted.
The Group is in the process of assessing the potential impact of these standards, amendments and improvements on the consolidated financial position and performance of the Group.
The amendments to TAS 7 and TFRS 7 add guidance that requires entities to provide qualitative and quantitative information about supplier financing arrangements and disclosure requirements to existing disclosure requirements. The amendments are effective for annual periods beginning on or after 1 January 2024.
The Group is in the process of assessing the impact of the amendments on financial position or performance of the Group.
TSRS 1 sets out general requirements for sustainability-related financial disclosures, requiring an entity to disclose information about sustainability-related risks and opportunities that is useful for primary users of general purpose financial reports to make decisions about funding the entity. The application of this standard is mandatory for annual reporting periods beginning on or after 1 January 2024 for entities that meet the relevant criteria in the POA's announcement dated 5 January 2024 and numbered 2024-5 and for banks regardless of the criteria. Other entities may voluntarily report in accordance with TSRS.
The Group is in the process of assessing the impact of the amendment on the financial position and performance of the Group.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
TSRS 2 sets out the requirements for identifying, measuring and disclosing climate-related risks and opportunities that are useful to primary users of general purpose financial reports in making decisions about funding the entity. The application of this standard is mandatory for annual reporting periods beginning on or after 1 January 2024 for entities that meet the relevant criteria in the POA's announcement dated 5 January 2024 and numbered 2024- 5 and for banks regardless of the criteria. Other entities may report in accordance with TSRS on a voluntary basis.
The Group has not yet adopted the following standards, amendments and interpretations to existing standards that are not yet effective
TFRS 17 Insurance Contracts TFRS 17 (Amendments) Insurance Contracts and First-time Adoption of TFRS 17 and TFRS 9 - Comparative Information
TAS 21 (Amendments) Lack of Exchangeability
IFRS 17 requires insurance liabilities to be measured at a current settlement value and provides a more uniform measurement and presentation approach for all insurance contracts. These requirements are designed to achieve consistent, principle-based accounting for insurance contracts. TFRS 17 has been deferred for insurance, reinsurance and pension companies for a further year and will replace TFRS 4 Insurance Contracts as at 1 January 2025.
The Group / Company is in the process of assessing the potential impact of the standards, amendments and improvements on the consolidated financial position and performance of the Group.
Amendments have been made to TFRS 17 to reduce implementation costs and facilitate disclosure of results and transition.
In addition, the amendment on comparative information permits entities that are first-time adopters of TFRS 7 and TFRS 9 to present comparative information about a financial asset as if the classification and measurement requirements of TFRS 9 had previously been applied to that financial asset.
The Group / Company is in the process of assessing the potential impact of the standards, amendments and improvements on the consolidated financial position and performance of the Group.
These amendments provide guidance on when a currency is exchangeable and how exchange rates should be determined when it is not. The amendments are effective for annual reporting periods beginning on or after January 1, 2025.
The Group / Company is in the process of assessing the potential impact of the standards, amendments and improvements on the consolidated financial position and performance of the Group.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The Group changes accounting policies when it is believed that the change will lead to better presentation of transactions and events in the financial statements. When the intentional change can affect the prior period results, the change is applied retrospectively as though it was already applied before. Accounting policy changes arising from the application of a new standard are applied considering the transition principles of the related standard, if any, retrospectively or forward. If no transition principle for the standard exists, the changes are applied retrospectively.
The accompanying condensed consolidated financial statements necessitate that some predictions about income and expenses regarding possible assets and liabilities in the financial statements prepared by the Group management to be compatible with statements required by Capital Market Board. Realized amounts can differ from the predictions. These predictions are observed regularly and reported periodically in income statements. Changes in accounting estimates and errors explained in title of "Comparative Information and Previous Periods Financial Statements Adjustments".
For the purpose of conducting a comparison of financial position and performance trend, Group's current financial statements are prepared comparative with previous periods. Comparative information is reclassified to be compatible with the presentation of current financial statements, when necessary.
Cash and cash equivalent values contain cash on hand, bank deposits and high liquidity investments. Cash and cash equivalents are showed with obtaining costs and the total of accrued interests.
Group classifies its financial assets in three categories of financial assets measured at amortised cost, financial assets measured at fair value through other comprehensive income and financial assets measured at fair value through profit of loss. The classification of financial assets is determined considering the entity's business model for managing the financial assets and the contractual cash flow characteristics of the financial asset. The appropriate classification of financial assets is determined at the time of the purchase.
"Financial assets measured at amortised cost", are non-derivative assets that are held within a business model whose objective is to hold assets in order to collect contractual cash flows and the contractual terms of the financial assets give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Group's financial assets measured at amortised cost comprise "cash and cash equivalents" and "trade receivables". Financial assets carried at amortised cost are measured at their fair value at initial recognition and by effective interest rate method at subsequent measurements. Gains and losses on valuation of non-derivative financial assets measured at amortised cost are accounted for under the condensed consolidated statement of income.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
"Financial assets measured at fair value through other comprehensive income", are non-derivative assets that are held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding. Gains or losses on a financial asset measured at fair value through other comprehensive income is recognised in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses until the financial asset is derecognised or reclassified. When the financial asset is derecognised the cumulative gain or loss previously recognised in other comprehensive income is reclassified to retained earnings.
Group may make an irrevocable election at initial recognition for particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, to present subsequent changes in fair value in other comprehensive income. In such cases, dividends from those investments are accounted for under condensed consolidated statement of income.
"Financial assets measured at fair value through profit or loss", are assets that are not measured at amortised cost or at fair value through other comprehensive income. Gains and losses on valuation of these financial assets are accounted for under the condensed consolidated statement of income.
Changes regarding the classification of financial assets and liabilities in terms of TFRS 9 are summarised below. Related changes in classification do not result in changes in measurement of the financial assets and liabilities.
| Financial assets | Classification under TAS 39 | Classification under TFRS 9 |
|---|---|---|
| Cash and cash equivalents | Loans and receivables | Amortised cost |
| Trade receivables | Loans and receivables | Amortised cost |
| Financial investments | Fair value through profit or loss | Fair value through profit or loss |
| Financial liabilities | Classification under TAS 39 | Classification under TFRS 9 |
| Borrowings | Amortised cost | Amortised cost |
| Trade payables | Amortised cost | Amortised cost |
"Expected credit loss model" defined in TFRS 9 "Financial Instruments" superseded the "incurred credit loss model" in TAS 39 "Financial Instruments: Recognition and Measurement" which was effective prior to 1 January 2019. Expected credit losses are a probability weighted estimate of credit losses over the expected life of the financial instrument. The calculation of expected credit loss is performed based on the past experiences and future expectations of the Group.
Group has preferred to apply "simplified approach" defined in TFRS 9 for the recognition of impairment losses on trade receivables, carried at amortised cost and that do not comprise of any significant finance component (those with maturity less than 12 months). In accordance with the simplified approach, Group measures the loss allowances regarding its trade receivables at an amount equal to "lifetime expected credit losses" except incurred credit losses in which trade receivables are already impaired for a specific reason.
The buy back shares are reflected in the "Buy-Back Shares disclosure" account under shareholders' equity in the Condensed consolidated Financial Statements in accordance with the II-22.1 of the CMB's Communiqué on "Acquisition of Buy Back Shares". In addition, the shares are classified in "Restricted reserves" in accordance with the related communiqué.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization. All of the other borrowing costs are recorded in the income statement in the period in which they are incurred. For the periods ended there is no capitalized borrowing cost.
Inventories are valued at the lower of cost or net realizable value. The cost of inventories is determined on the "weighted average" method. Cost elements included in inventories are materials, labor and factory overheads. The cost of borrowings is not included in the costs of inventories. Net realizable value is the estimated selling price in the ordinary course of business, less the costs of completion and estimated costs to make the sale.
Tangible fixed assets except lands, buildings are carried at cost, restated by deduction of the yearly accumulated depreciation. Land and buildings are valued with their fair values. Borrowing costs are recognized in accordance with TAS-23 as an element of the book value of assets that are manufactured by the entity. Entities may subject their tangible assets to revaluation. Depreciation is calculated on a straight-line basis over the adjusted amounts and at the rates that reflect the economic useful lives of the following assets Land is considered as limitless useful life, so it is not subject to depreciation. Expected useful life, residual value and amortization method are reviewed for possible effects of changes in estimates and are accounted for prospectively if there is a change in estimates.
The depreciation rates for property, plant and equipment, which approximate the useful economic lives of these assets, are as follows:
| Useful Life | |
|---|---|
| Buildigs | 25-50 years |
| Land improvements | 8-25 years |
| Property, plant and equipment | 5-14 years |
| Motor vehicles | 4-10 years |
| Furniture, fixtures and office equipment | 5-25 years |
| Leasehold improvements | Rental Period - 5-10 years |
Property, plant and equipment are reviewed for possible impairment and the carrying value of the tangible asset is reduced to its recoverable amount if the recoverable amount is greater than its recoverable amount. The recoverable amount is recognized as the higher of net cash flows from the current use of the property, plant and equipment and net selling price.
Appraisal reports containing fair value of property, plant and equipment held for sale is not obtained, Therefore method of deducting selling prices from fair value has not been applied. Property, plant and equipment held for sale are stated at cost in the financial statements.
Intangible fixed assets comprise of rights and they are recorded at acquisition cost. Intangible fixed assets are amortized on a straight-line method with prorate basis over period of between 3-10 years from the date of acquisition.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Investment properties, which are properties, held to earn rentals and/or for capital appreciation are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are stated at fair value, which reflects market conditions at the balance sheet date. Gains or losses arising from changes in the fair values of investment properties are included in the profit or loss in the year in which they arise.
Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. Any gains or losses on the retirement or disposal of an investment property are recognized in profit or loss in the year of retirement or disposal.
At inception of a contract, the Group assesses whether a contract is, or contains a lease. A contract is, or contains, alease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, The Group assess whether:
a) the contract involved the use of an identified asset – this may be specified explicitly or implicitly.
b) the asset should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, the asset is not identified.
c) the Group has the right to obtain substantially all of the economic benefits from the use of an asset throughout the period of use; and
d) the Group has the right to direct use of the asset. The Group concludes to have the right of use, when it is predetermined how and for what purpose the Group will use the asset. The Group has the right to direct use of asset if either:
i. the Group has the right to operate (or to have the right to direct others to operate) the asset over its useful life and the lessor does not have the rights to change the terms to operate or;
ii. the Group designed the asset (or the specific features) in a way that predetermines how and for what purpose it is used
At inception or on reassessment of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices.
The right of use asset is initially recognized at cost comprising of:
To apply a cost model, the Group measure the right-of-use asset at cost:
a) less any accumulated depreciation and any accumulated impairment losses; and
b) adjusted for any remeasurement of the lease liability.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The Group applies the straight-line method to depreciate the right of use. If the lease transfers ownership of the underlying asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the Group depreciate the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, The Group depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.
The Group apply IAS 36 Impairment of Assets to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.
At the commencement date, The Group measure the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discountedusing the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group use the lessee's incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:
a) fixed payments, less any lease incentives receivable;
b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
c) the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
d) payments of penalties for terminating the lease, if the lease term reflects the Group exercising an option to terminate the lease.
After the commencement date, the Group measure the lease liability by:
a) increasing the carrying amount to reflect interest on the lease liability;
b) reducing the carrying amount to reflect the lease payments made; and
c) remeasuring the carrying amount to reflect any reassessment or lease modifications, or to reflect revised insubstance fixed lease payments.
Interest on the lease liability in each period during the lease term is the amount that produces a constant periodic rate of interest on the remaining balance of the lease liability. The Group determine the revised discount rate as the interest rate implicit in the lease for the remainder of the lease term, if that rate can be readily determined, or the lessee's incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined. After the commencement date, The Group remeasure the lease liability to reflect changes to the lease payments. The Group recognise the amount of the remeasurement of the lease liability as an adjustment to the rightof- use asset.
The Group shall remeasure the lease liability by discounting the revised lease payments using a revised discount rate, if either:
a) There is a change in the lease term. The Group determine the revised lease payments on the basis of the revised lease term; or
b) There is a change in the assessment of an option to purchase the underlying asset. The Group determine the revised lease payments to reflect the change in amounts payable under the purchase option..
The Group determine the revised discount rate as the interest rate implicit in the lease for the remainder of the lease term, if that rate can be readily determined, or the lessee's incremental borrowing rate at the date of reassessment, if the interest rate implicit in the lease cannot be readily determined.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The Group remeasure the lease liability by discounting the revised lease payments, if either:
a) There is a change in the amounts expected to be payable under a residual value guarantee. The Group determine the revised lease payments to reflect the change in amounts expected to be payable under the residual value guarantee.
b) There is a change in future lease payments resulting from a change in an index or a rate used to determine those payments. The Group remeasure the lease liability to reflect those revised lease payments only when there is a change in the cash flows.
The Group determine the revised lease payments for the remainder of the lease term based on the revised contractual payments. In that case, the Group use an unchanged discount rate. The Group account for a lease modification as a separate lease if both:
a) The restructuring extends the scope of the leasing by including the right of use of one or more underlying assets, and
b) The lease payment amount increases as much as the appropriate adjustments to the price mentioned individually so that the increase in scope reflects the individual price and the terms of the relevant agreement.
Leases with a lease term of 12 months or less and leases of low-value assets determined by the Group are evaluated in scope of the exemption of TFRS 16 and payments associated with those leases are recognised on a straight-line basis as an expense in profit or loss.
The Group evaluates whether there is an indicator for the decrease in value related to the asset for the rest of every assets of financial assets which are shown with the deferred tax and fair value, or not, at the every financial statement date. If there is an indicator, the regain amount of this asset is estimated. Impairment occurred if the topic assets or the net book value of unit which is belong to assets that produce cash is higher than the regain amount which was gained with the help of using or sale. In the related period, impairment lost is accounted in the income statement. Impairment loss of assets is reversed in the manner of not passing the amount of impairment which was saved before, in the situation of association an amount which was occur at the period which is following registration of impairment with the following increase in regain amount of this assets.
Under Turkish Labor Law, Group is required to pay termination benefits to each employee who has completed one year of service and whose employment is terminated without due cause, or who retires in accordance with social insurance regulations or is called up for military service or dies.
The Group has reflected the severance pay liability calculated on the balance sheet date on the financial statements using the expected inflation rate and the real discount rate based on the principles stated above for the financial statements as of 30 September 2024.
The Group has calculated severance pay liability on the financial statements in the accompanying condensed consolidated financial statements using the "Projection Method" based on the experience gained over the past years by the Group in completing the personnel service period and entitlement to termination indemnity and discounting it with the government treasury rate at the balance sheet date. All calculated gains and losses are reflected in the income table.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Group pays social security contribution to social security organization compulsorily. So long as Group pays these premiums, it has no liability. These premiums are reflected as personnel expenses in the period in which they are paid.
The Group's various accounting policies and footnote disclosures require fair value for both financial and nonfinancial assets and liabilities. The fair values are determined by the following methods for valuation and / or disclosure purposes. Where feasible, the assumptions used in the determination of fair value are presented in the footnotes related to the asset or liability as additional information. Level-by-level valuation methods are defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices).
Level 3: Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs).
In the accompanying Condensed consolidated Financial Statements, the tax consists of corporate tax provision and deferred tax. The corporation tax that will be arise from the results of the period's operations have set aside a provision for the income tax liabilities at the statutory tax rates that are valid at the balance sheet date.
The Group recognizes deferred tax on the temporary timing differences between the carrying amounts of assets and liabilities in the financial statements prepared in accordance with TFRS and statutory financial statements which is used in the computation of taxable profit. The related differences are generally due to the timing difference of the tax base of some income and expense items between statutory and TFRS financial statements. The Group has deferred tax assets resulting from tax loss carry-forwards and deductible temporary differences, which could reduce taxable income in the future periods. All or partial amounts of the realizable deferred tax assets are estimated in current circumstances. The main factors which are considered include future earnings potential; cumulative losses in recent years; history of loss carry-forwards and other tax assets expiring, the carry-forward period associated with the deferred tax assets, future reversals of existing taxable temporary differences that would, if necessary, be implemented, and the nature of the income that can be used to realize the deferred tax asset.
Group recognises revenue based on the following five principles in accordance with the TFRS 15 - "Revenue from Contracts with Customers Standard" effective from 1 January 2019:
Group evaluates each contracted obligation separately and respective obligations, committed to deliver the goods or perform services, are determined as separate performance obligations
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Group determines at contract inception whether the performance obligation is satisfied over time or at a point in time. When the Group transfers control of a good or service over time, and therefore satisfies a performance obligation over time, then the revenue is recognised over time by measuring the progress towards complete satisfaction of that performance obligation.
When a performance obligation is satisfied by transferring promised goods or services to a customer, the Group recognises the revenue as the amount of the transaction price that is allocated to that performance obligation. The goods or services are transferred when the control of the goods or services is delivered to the customers.
Following indicators are considered while evaluating the transfer of control of the goods and services:
If Group expects, at contract inception, that the period between when the Group transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less, the promised amount of consideration for the effects of a significant financing component is not adjusted. On the other hand, when the contract effectively constitutes a financing component, the fair value of the consideration is determined by discounting all future receipts using an imputed rate of interest. The difference between the fair value and the nominal amount of the consideration is recognised on an accrual basis as other operating income.
The accompanying condensed consolidated financial statements necessitate that some predictions about income and expenses regarding possible assets and liabilities in the financial statements prepared by the Group management to be compatible with statements required by Public Oversight Accounting and Auditing Standards Authority. Realized amounts can differ from the predictions. These predictions are observed regularly and reported periodically in income statements.Comments those would have significant effect on balances reflected in the financial statements and important expectations and valuations considering present or future expectation as of report date, are as following.
Inventories are valued at the lower of cost or net realizable value. The Group management has determined that some of its inventories cost value are higher than the their net realizable value as of the balance sheet date. Management of the company has estimated the future cash flow amounts, replacement costs and the sales prices may be generated in the ordinary business activity from the sale of inventories in the calculation of the impairment.
Provision for doubtful receivables reflects the future loss that the Group anticipates to incur from the trade receivables as of the balance sheet date which is subject to collection risk considering the current economical conditions. During the impairment test for the receivables, the debtors are assessed with their prior year performances, their credit risk in the current market, their performance after the balance sheet date up to the issuing date of the financial statements; and also the renegotiation conditions with these debtors are considered. The provision for doubtful receivables is presented in Note 4.
Group reserves provision for depreciation regarding to footnote 2.e that refers to useful lifetime on fixed assets. Information about useful lifetime is described in footnote 2.e.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
While setting provision for lawsuits, it has considered probability to lose lawsuit, then the consequences of loosing case by the legal advisor of the Group.
Severance pay provision is calculated with actuarial expectation based on assumptions like discount rates, salary increase in the future and probability to quit the job.
The Group recognizes deferred tax on the temporary timing differences between the carrying amounts of assets and liabilities in the financial statements prepared in accordance with IFRS and statutory financial statements which is used in the computation of taxable profit. The related differences are generally due to the timing difference of the tax base of some income and expense items between statutory and IFRS financial statements. The Group has deferred tax assets resulting from tax loss carry-forwards and deductible temporary differences, which could reduce taxable income in the future periods. All or partial amounts of the realizable deferred tax assets are estimated in current circumstances.
The main factors which are considered include future earnings potential; cumulative losses in recent years; history of loss carry-forwards and other tax assets expiring, the carry-forward period associated with the deferred tax assets, future reversals of existing taxable temporary differences that would, if necessary, be implemented, and the nature of the income that can be used to realize the deferred tax asset. As a result of the revaluation, as of 30 September 2024, temporary differences due to tax incentives can be foreseen and the fraction falls in continuity of tax incentives within the context of tax legislations, can be benefited from and is to be tax assets and accounted. As of balance sheet date, the details regarding deferred tax calculations are stated in Note 18.
Provisions are recognized when an enterprise has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate.
Transactions that may give rise to contingencies and commitments are those where the outcome and the performance of which will be ultimately confirmed only on the occurrence or non occurrence of certain future events, unless the expected performance is not very likely. Accordingly, contingent losses are recognized in the financial statements of the Group if a reasonable estimate of the amount of the resulting loss can be made. Contingent gains are reflected only if it is probable that the gain will be realized.
Foreign currency transactions are entered in the accounts with current rates in transaction date. Foreign currency assets and liabilities in the balance sheet are converted to the TRY as the rates in the balance sheet date. Foreign exchange profit and loss are reflected to the income statements.
| 30 September 2024 |
31 December 2023 | 30 September 2023 |
|
|---|---|---|---|
| USD | 34,0900 | 29,4382 | 27,3767 |
| EUR | 38,0180 | 32,5739 | 29,0305 |
| GBP | 45,5408 | 37,4417 | 33,4816 |
| RUBLE | 0,36561 | 0,3261 | 0,27957 |
| CNY | 4,8344 | 4,1212 | 3,7284 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Assets and liabilities in foreign currency and purchase and sale commitments create exchange risk. Foreign exchange risk stemming from depreciation or appreciation of Turkish Lira managed by top management by following the currency position of Group and taking position according to approved limits.
Earnings per share in the consolidated income statements are calculated by dividing the net profit for the year by the weighted average number of ordinary shares outstanding during the year.
In Turkey, companies can increase their share capital by making distribution of "bonus shares" to existing shareholders from inflation adjustment difference in shareholder's equity. For the purpose of the earnings per share computations, the weighted average number of shares outstanding during the year has been adjusted in respect of "bonus shares" issued without corresponding change in resources by giving them retroactive effect for the period in which they were issued and each earlier period.
Other balance sheet items are mainly reflected at book value.
The Group prepares statement of cash flows to inform users of financial statements about changes in net assets and ability to direct financial structure, amounts and timing of cash flows according to changing situations. In the statement of cash flows, current period cash flows are grouped according to operating, financing, and investing activities. Operating cash flows resulting from activities in scope of Group's main operating scope. Cash flows related to investing activities are cash flows resulting from investing activities (fixed investments and financial investments) of the company. Cash flows related to financing activities comprise of funds used in financing activities of the Group and their repayments. Cash and cash equivalents comprise cash on hand and demand deposits and other short-term highly liquid investments which their maturities are three months or less from date of acquisition and that are readily convertible to a known amount of cash and are subject to an insignificant change in value.
In the case that events requiring a correction to be made occur subsequent, the Group makes the necessary corrections to the condensed consolidated financial statements. In the case that events not requiring a correction to be made occur subsequent, those events are disclosed in the notes of condensed consolidated financial statements (Note 22).
The Group does not have an activity area to report activity according to the departments.
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making the financial and operating decisions. For the purpose of these financial statements shareholders are referred to as related parties. Related parties also include individuals that are principle owners, management and members of the Group's Board of Directors and their families.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 30 September 2024 |
31 December 2023 | ||||
|---|---|---|---|---|---|
| Trading | Non-Trading | Trading | Non-Trading | ||
| Other Receivables | |||||
| Receivables from Shareholders | -- | -- | -- | 177.379 | |
| Prepaid Expenses (Note 7) | |||||
| Bostancı Otelcilik ve Turizm İşletmesi A.Ş. | -- | 34.828.185 | -- | 3.924.531 | |
| Total | -- | 34.828.185 | -- | 4.101.910 |
Due To Related Parties Payables
None (31 December 2023: None).
Purchases and / or expenses from related parties:
| 1 January – 30 September 2024 |
||||
|---|---|---|---|---|
| Goods and Services Purchases | Rent Expenses | |||
| Bostancı Otelcilik ve Turizm İşletmesi A.Ş. | 2.850.121 | -- | ||
| Yavuz Altop | -- | 2.633.809 | ||
| Yılmaz Öztaşkın | -- | 2.633.809 | ||
| Other Shareholders | -- | 5.267.618 | ||
| Total | 2.850.121 | 10.535.236 |
| 1 January – 30 September 2023 |
||||
|---|---|---|---|---|
| Goods and Services Purchases | Rent Expenses | |||
| Bostancı Otelcilik ve Turizm İşletmesi A.Ş. | -- | -- | ||
| Yavuz Altop | -- | 2.425.345 | ||
| Yılmaz Öztaşkın | -- | 2.425.345 | ||
| Other Shareholders | -- | 4.850.689 | ||
| Total | -- | 9.701.379 |
The total amount of benefits provided to the senior management such as the chairman and members of the board of directors, general manager, general coordinator and general manager of the Group for the period ended 30 September 2024 is TRY 124.643.412 (31 December 2023: TRY 104.460.893).
Short Term Trade Receivables
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Trade Receivables | 1.148.393.404 | 1.808.522.911 |
| Notes Receivables | 700.341.636 | 555.138.249 |
| Unearned Interest (-) | (111.106.096) | (102.920.399) |
| Doubtful trade receivables | 26.459.892 | 29.215.827 |
| Provision for doubtful trade receivables (-) | (26.459.892) | (29.215.827) |
| Total | 1.737.628.944 | 2.260.740.761 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The maturity schedule of receivables are as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Up to 3 months | 996.176.220 | 1.526.351.650 |
| 3 to 12 months | 852.558.820 | 837.309.510 |
| Total | 1.848.735.040 | 2.363.661.160 |
The movement schedule of provision for doubtful trade receivables is as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Opening balance | 29.215.827 | 48.458.053 |
| Additional provisions in the period | 4.955.583 | 4.065.129 |
| Cancellation of provision in period (-) | -- | (4.258.292) |
| Monetary Loss/Gain | (7.711.518) | (19.049.062) |
| Total (End of the peridod) | 26.459.892 | 29.215.827 |
Short Term Trade Payables
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Trade payables | 1.285.810.317 | 1.931.693.612 |
| Notes payables | 77.601.766 | 196.238.096 |
| Unearned interest (-) | (85.537.389) | (117.270.635) |
| Total | 1.277.874.694 | 2.010.661.073 |
None (31 December 2023: None).
As of 30 September 2024 and 31 December 2023 maturity schedule of payables are as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Up to 3 months | 1.234.445.531 | 1.924.936.424 |
| 3 to 12 months | 128.966.552 | 202.995.284 |
| Total | 1.363.412.083 | 2.127.931.708 |
Other Current Assets
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Deferred VAT | 965.366.625 | 951.920.485 |
| Business Advances | 1.591.350 | 2.243.334 |
| Advances Given to Personnel | 32.100.929 | 19.192.725 |
| Other VAT | 7.156.276 | 4.866.670 |
| Total | 1.006.215.180 | 978.223.214 |
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Taxes and dues payable | 45.846.921 | 49.720.125 |
| Other liabilities | 2.040.552 | 9.764.005 |
| Total | 47.887.473 | 59.484.130 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Raw materials | 972.316.517 | 1.157.908.864 |
| Work in process | 69.457.995 | 90.692.959 |
| Finished goods | 1.421.441.259 | 718.791.750 |
| Merchandises | 809.635.872 | 849.244.850 |
| Other inventories | 55.904.150 | 35.256.704 |
| Provision for Stock Value Decrease (-) | (31.020.018) | (20.851.221) |
| Total | 3.297.735.775 | 2.831.043.906 |
The related inventory items are reported net by deducting the their provisions for impairment. As of 30 September 2024, there is insurance coverage amounting to 2.436.130.000 TRY on inventories (31 December 2023: 2.503.583.408 TRY)
The movements in the provision for stock value decrease are as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Beginning of period provision amount | 20.851.221 | 11.806.814 |
| Additional provisions allocated during the period | 10.168.797 | 9.044.407 |
| End of period total provision amount | 31.020.018 | 20.851.221 |
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Advances Given for Orders | 564.927.372 | 763.267.068 |
| - Order Advances Given to Related Parties (Note 3) |
34.828.185 | 3.924.531 |
| - Order Advances Given to Other Parties |
530.099.187 | 759.342.537 |
| Expenses for Future Months | 212.356.991 | 82.611.864 |
| Total | 777.284.363 | 845.878.932 |
| Long-Term Prepaid Expenses | ||
| 30 September 2024 |
31 December 2023 | |
| Advances Given for Orders | 81.123.825 | 4.936.059 |
| Expenses for Future Years | 92.556.305 | 51.879.874 |
| Advances Given for Fixed Asset Orders | 12.454.287 | 27.172.068 |
| Total | 186.134.417 | 83.988.001 |
| Short-Term Deferred Income | ||
| 30 September 2024 |
31 December 2023 | |
| Revenues for the following months | 2.641.714 | -- |
| Advances received | 522.989.708 | 685.264.223 |
| Total | 525.631.422 | 685.264.223 |
| Long-Term Deferred Income | ||
| 30 September 2024 |
31 December 2023 | |
| Revenues for future years | 9.009.769 | 11.765.448 |
| Total | 9.009.769 | 11.765.448 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| Plants, | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Land | machinery and | Fixtures and | Leasehold | Construction | |||||
| Cost | Lands | improvements | Buildings | equipment | Vehicles | fittings | improvements | in progress | Total |
| 1 January 2023 | 648.360.112 | 4.688.582 | 2.831.166.136 | 1.659.413.058 | 67.157.090 | 1.259.308.872 | 955.335.689 | 85.686.095 | 7.511.115.634 |
| Addition | -- | -- | 31.903.444 | 59.780.891 | 25.319.531 | 168.627.515 | 85.155.411 | 686.058.028 | 1.056.844.820 |
| Transfer | (960.182) | -- | (5.133.839) | -- | -- | -- | -- | -- | (6.094.021) |
| Disposals | -- | (200.687) | (39.027.474) | (1.776.085) | (1.762.431) | (23.638.510) | (8.238.898) | -- | (74.644.085) |
| 31 December 2023 | 647.399.930 | 4.487.895 | 2.818.908.267 | 1.717.417.864 | 90.714.190 | 1.404.297.877 | 1.032.252.202 | 771.744.123 | 8.487.222.348 |
| Addition | 29.150.059 | -- | 6.601.683 | 49.344.104 | 1.038.987 | 73.429.172 | 61.397.323 | 195.814.710 | 416.776.038 |
| Disposals | -- | -- | -- | (45.567.766) | -- | (3.306.975) | (5.171.633) | -- | (54.046.374) |
| 30 September 2024 |
676.549.989 | 4.487.895 | 2.825.509.950 | 1.721.194.202 | 91.753.177 | 1.474.420.074 | 1.088.477.892 | 967.558.833 | 8.849.952.012 |
| Accumulated depreciation (-) | |||||||||
| 1 January 2023 | -- | 1.704.459 | 377.968.184 | 851.225.729 | 56.392.394 | 791.603.383 | 723.690.043 | -- | 2.802.584.192 |
| Charge for the period | -- | 162.288 | 57.546.782 | 106.377.380 | 6.775.476 | 126.204.489 | 90.290.499 | -- | 387.356.914 |
| Disposals | -- | -- | (8.223.813) | (1.515.901) | (1.372.935) | (21.880.478) | (5.599.295) | -- | (38.592.422) |
| 31 December 2023 | -- | 1.866.747 | 427.291.153 | 956.087.208 | 61.794.935 | 895.927.394 | 808.381.247 | -- | 3.151.348.684 |
| Charge for the period | -- | 121.716 | 42.831.644 | 81.016.613 | 6.359.636 | 101.649.750 | 70.397.121 | -- | 302.376.480 |
| Disposals | -- | -- | -- | (41.539.799) | -- | (1.748.267) | (4.914.632) | -- | (48.202.698) |
| 30 September 2024 |
-- | 1.988.463 | 470.122.797 | 995.564.022 | 68.154.571 | 995.828.877 | 873.863.736 | -- | 3.405.522.466 |
| Net book value, 31 December 2023 | 647.399.930 | 2.621.148 | 2.391.617.114 | 761.330.656 | 28.919.255 | 508.370.483 | 223.870.955 | 771.744.123 | 5.335.873.664 |
| Net book value, 30 September 2024 |
676.549.989 | 2.499.432 | 2.355.387.153 | 725.630.180 | 23.598.606 | 478.591.197 | 214.614.156 | 967.558.833 | 5.444.429.546 |
As of 30 September 2024, there is insurance amounting to TRY 8.040.150.000 on property, plant and equipment The liability amounts for fixed assets are mentioned in Note 11 (31 December 2023: TRY 5.028.754.073).
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The distribution of depreciation expenses is as follows:
| 30 September 2024 |
30 September 2023 |
|
|---|---|---|
| Tangible fixed assets | 302.376.480 | 336.966.790 |
| Intangible fixed assets | 81.445.569 | 77.847.166 |
| Right of use assets | 209.822.396 | 110.395.965 |
| Total | 593.644.445 | 525.209.920 |
As September 30, 2024 and December 31, 2023, the details of the financial debts are as follows;
Short Term Financial Borrowings
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Bank Loans | 1.526.351.468 | 1.906.101.139 |
| Debts from Leasing Transactions | 139.166.577 | 222.022.463 |
| Financial Leasing Debts | 19.346.661 | 10.789.882 |
| Deferred Financial Leasing Borrowing Costs (-) | (3.213.091) | (1.320.596) |
| Other Financial Debts | 1.034.180 | 20.751.483 |
| Total | 1.682.685.795 | 2.158.344.371 |
Current Instalments of Long-Term Financial Liabilities
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Current Instalments of Long-Term Financial Liabilities | 2.342.402.604 | 1.313.147.454 |
| Total | 2.342.402.604 | 1.313.147.454 |
Long Term Financial Borrowings
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Bank Loans | 928.874.033 | 976.186.941 |
| Debts from Leasing Transactions | 236.899.615 | 459.686.492 |
| Financial Leasing Debts | 32.685.973 | 10.236.787 |
| Deferred Financial Leasing Borrowing Costs (-) | (3.211.584) | (530.698) |
| Total | 1.195.248.037 | 1.445.579.522 |
Liabilities given for bank borrowings are mentioned in Note 11.
The details of the bank loans are as follows:
| Weighted Average Effective |
||||
|---|---|---|---|---|
| Currency Type | Maturity Range | Interest Rate | Short Term | Long Term |
| TRY | October 2024-February 2033 | 46,68% | 2.260.889.977 | 530.496.191 |
| USD | March 2025-September 2026 | 7,77% | 135.400.673 | 25.748.825 |
| EUR | October 2024-September 2029 | 6,82% | 1.284.408.704 | 372.629.017 |
| CNY | October 2024-September 2025 | 7,10% | 188.054.718 | -- |
| Total | 3.868.754.072 | 928.874.033 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| Weighted Average Effective |
||||
|---|---|---|---|---|
| Currency Type | Maturity Range | Interest Rate | Short Term | Long Term |
| TRY | January 2024-February 2033 | 38,62% | 2.441.714.437 | 842.477.107 |
| USD | February 2024-September 2024 | 8,02% | 145.981.162 | -- |
| EUR | April 2024-November 2026 | 6,70% | 553.952.813 | 133.709.834 |
| CNY | May 2024-October 2024 | 6,85% | 77.600.181 | -- |
| Total | 3.219.248.593 | 976.186.941 |
The details of the financial leases are as follows;
| Currency | Amount | TRY Value | |
|---|---|---|---|
| Short-term financial lease liabilities | |||
| Financial lease debts (principal + interest) | EUR | 508.882 | 18.499.266 |
| Minus: Interest expense for future months | EUR | (84.515) | (2.365.696) |
| Total | 16.133.570 | ||
| Long-term financial lease liabilities | |||
| Financial lease debts (principal + interest) | EUR | 859.750 | 32.685.973 |
| Minus: Interest expense for future months | EUR | (84.475) | (3.211.584) |
| Total | 29.474.389 | ||
| The principal amount of financial lease liabilities shown in the financial statements | 45.607.959 | ||
| 31 December 2023 | |||
| Currency | Amount | TRY Value | |
| Short-term financial lease liabilities | |||
| Financial lease debts (principal + interest) | EUR | 190.501 | 10.430.859 |
| Minus: Interest expense for future months | EUR | (24.187) | (961.573) |
| Total | 9.469.286 | ||
| Long-term financial lease liabilities | |||
| Financial lease debts (principal + interest) | EUR | 284.624 | 10.236.787 |
| Minus: Interest expense for future months | EUR | (17.646) | (530.698) |
| Total | 9.706.089 | ||
| The principal amount of financial lease liabilities shown in the financial statements | 19.175.375 |
Maturity schedule of banks borrowings are as follows:
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Up to 3 months | 1.055.911.251 | 1.102.488.169 |
| 3 to 12 months | 2.969.177.148 | 2.369.003.656 |
| 1 to 5 years | 988.724.696 | 1.100.968.396 |
| Over 5 years | 206.523.341 | 344.611.126 |
| Total | 5.220.336.436 | 4.917.071.347 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Due to personnel | 108.859.129 | 134.540.646 |
| Taxes and funds payable for personnel | 28.215.539 | 31.180.463 |
| Social security and Taxes and dues payable | 44.919.202 | 100.844.144 |
| Total | 181.993.870 | 266.565.253 |
| Given GSM (Guarantee-Security-Mortgage) by Group | 30 September 2024 |
31 December 2023 |
|---|---|---|
| A. Total Amount of GSM Given on Behalf of Legal Entity | 927.491.523 | 1.138.153.690 |
| B. Total Amount of GSM Given for Partnerships which are | ||
| Included in Full Consolidation | -- | -- |
| C. Total Amount of GSM Given for the Purpose of Guaranteeing | ||
| Third Party Loans to Carry the Regular Trade Activities | -- | -- |
| D. Total Amount of Other GSM Given | -- | -- |
| i. Total Amount of GSM Given for the Parent Company | -- | -- |
| ii. Total Amount of GSM Given for Other Group Companies not | ||
| Included in B and C Clauses | -- | -- |
| iii. Total Amount of GSM Given for Third Parties not Included in C | ||
| Clause | -- | -- |
| Total | 927.491.523 | 1.138.153.690 |
Letters of guarantee - As of 30 September 2024, the Group has given letters of guarantee amounting to TRY 685.644.723 to the suppliers and other corporations. The details of the letters of guarantee are as below:
| Foreign | TRY | ||
|---|---|---|---|
| 30 September 2024 |
currency | Amount | equivalent |
| Electricity Distribution Companies | TRY | 800.660 | 800.660 |
| Executive Directorate | TRY | 9.655.522 | 9.655.522 |
| Customs Directorate | TRY | 10.270.316 | 10.270.316 |
| Gas Distribution Companies | TRY | 172.245 | 172.245 |
| Private sector | TRY | 75.632.673 | 75.632.673 |
| Private sector | EUR | 97.280 | 3.698.391 |
| Private sector | USD | 572.000 | 19.499.480 |
| Turkey Export Credit Bank | EUR | 4.848.979 | 184.348.484 |
| Turkey Export Credit Bank | CNY | 43.060.000 | 208.169.264 |
| Turkey Export Credit Bank | USD | 2.415.000 | 82.327.350 |
| Turkey Export Credit Bank | TRY | 90.295.000 | 90.295.000 |
| State Supply Office | TRY | 550.339 | 550.339 |
| Total | 685.644.723 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| Foreign | TRY | ||
|---|---|---|---|
| 31 December 2023 | currency | Amount | equivalent |
| Electricity Distribution Companies | TRY | 6.099.667 | 6.099.667 |
| Executive Directorate | TRY | 12.477.539 | 12.477.539 |
| Customs Directorate | TRY | 4.267.665 | 4.267.665 |
| Gas Distribution Companies | TRY | 234.013 | 234.013 |
| Private sector | TRY | 40.496.964 | 40.496.964 |
| Private sector | EUR | 97.280 | 4.305.128 |
| Private sector | USD | 572.000 | 22.877.047 |
| Turkey Export Credit Bank | EUR | 7.934.001 | 351.119.305 |
| Turkey Export Credit Bank | CNY | 15.407.600 | 86.268.329 |
| Turkey Export Credit Bank | USD | 2.240.000 | 89.588.439 |
| Turkey Export Credit Bank | RUB | 85.000.000 | 37.659.603 |
| Turkey Export Credit Bank | TRY | 173.151.287 | 173.151.287 |
| State Supply Office | TRY | 265.388 | 265.388 |
| Total | 828.810.373 |
As at 30 September 2024, mortgages on various tangible assets of the Group amounting to TRY 241.846.800 (31 December 2023: TRY 309.343.317).
| 30 September 2024 |
31 December 2023 | 30 September 2024 |
31 December 2023 | |
|---|---|---|---|---|
| Foreign currency | TRY equivalent | |||
| Bills given (TRY) | -- | 214.659.338 | -- | 214.659.338 |
| Total | -- | 214.659.338 | -- | 214.659.338 |
| 30 Sep. 2024 |
31 Dec. 2023 |
30 Sep. 2024 |
31 Dec. 2023 |
|
|---|---|---|---|---|
| Foreign currency | TRY equivalent | |||
| Letters of Guarantee (TRY) | 1.371.533.640 | 1.272.449.608 | 1.371.533.640 | 1.272.449.608 |
| Letters of Guarantee (USD) | 3.782.500 | 4.117.500 | 128.945.425 | 164.678.749 |
| Letters of Guarantee (EUR) | 905.000 | 405.000 | 34.406.290 | 17.923.280 |
| Mortgages (TRY) | 582.557.501 | 567.879.242 | 582.557.501 | 567.879.242 |
| Mortgages (Abroad) (USD) | 3.775.000 | 3.775.000 | 128.689.750 | 150.980.516 |
| Checks Received (TRY) | 2.650.000 | 3.600.299 | 2.650.000 | 3.600.299 |
| Total | 2.248.782.606 | 2.177.511.694 |
The registered capital of the parent company is TRY 150.000.000 ( 31 December 2023: TRY 150.000.000).
In accordance with the decision of the Board of Directors dated 27.03.2019 the Company increased TRY 95.988.292 to TRY 149.798.932 in order to be covered by the paid capital ceiling.
Paid-in capital of the parent company each 1 TRY. of the total shares of the Company with a nominall amount of TRY 149.798.932 (31 December 2023: TRY 149.798.932).
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The shareholding structure of the parent company as of 30 September 2024 and 31 December 2023 is as follows;
| 30 September | 2024 | 31 December 2023 | |||
|---|---|---|---|---|---|
| Amount | Share | Amount | Share | ||
| TRY | (%) | TRY | (%) | ||
| Hacı Nuri Öztaşkın | 12.427.403 | 8,30% | 12.427.403 | 8,30% | |
| Yılmaz Öztaşkın | 10.940.192 | 7,30% | 10.940.192 | 7,30% | |
| Bostancı Otelcilik ve Turizm İşletmesi A.Ş | 8.467.847 | 5,65% | 8.467.847 | 5,65% | |
| Other (1) | 117.963.490 | 78,75% | 117.963.490 | 78,75% | |
| Total | 149.798.932 | 100,00% | 149.798.932 | 100,00% | |
| Inflation Adjustment on Capital (2) |
1.244.617.930 | 1.244.617.930 | |||
| Total | 1.394.416.862 | 1.394.416.862 |
(1) Includes nominal repurchase shares amounting to 6.035.734 at the rate of 4,03% stated.
(2) Capital adjustment differences represent the discrepancy between the total amounts of cash and cash equivalents added to the capital, adjusted for inflation accounting, and their pre-adjustment amounts. The capital adjustment differences have no other use than to be added to the capital.
Currency conversion differences as of 30 September 2024 and 31 December 2023 are as follows;
| 30 September 2024 |
30 September 2023 |
|
|---|---|---|
| 1 January | (35.322.842) | (18.378.432) |
| Addition | 36.641.947 | (16.944.410) |
| Total | 1.319.105 | (35.322.842) |
Foreign currency translation differences consist of foreign currency exchange differences arising from the translation of foreign currency financial statements from the current currency to the reporting currency.
As 30 September 2024 and 31 December 2023 buy back shares as following;
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Beginning of the period | (225.065.238) | (225.065.238) |
| Buy back shares | -- | -- |
| Total | (225.065.238) | (225.065.238) |
In accordance with II-22.1 "Communiqué on Buy Back Shares" issued by the CMB, the Group has purchased the shares quoted in the Exchange Market.
As of 30 September 2024, the Group has Purchased 6.035.734 shares amounting to TRY 225.065.238 that is 4,03 % of its total capital and reflected it in the accompanying financial statements under "Buy back shares in Equity".
In addition, in accordance with the related communiqué, the amount of buy back shares is reclassed in "restricted reserves''.
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
For the periods ended at 30 September 2024 and 2023, the details of sales are as following;
| 1 January – | 1 July – |
1 January – |
1 July – |
|
|---|---|---|---|---|
| 30 Sep. 2024 |
30 Sep. 2024 |
30 Sep. 2023 |
30 Sep. 2023 |
|
| Domestic sales | 12.066.063.691 | 3.698.113.831 | 14.031.116.256 | 4.188.933.316 |
| Export sales | 945.508.988 | 265.634.211 | 988.065.870 | 183.366.204 |
| Other sales | 116.006.002 | 11.707.393 | 47.399.162 | 4.037.509 |
| Gross Sales | 13.127.578.681 | 3.975.455.435 | 15.066.581.288 | 4.376.337.029 |
| Sales returns (-) | (252.049.955) | (80.396.207) | (371.407.065) | (56.586.203) |
| Sales discounts (-) | (1.484.615.889) | (430.876.622) | (1.731.114.995) | (479.994.242) |
| Other discounts (-) | (11.247.980) | (5.989.164) | (5.912.105) | (1.331.856) |
| Sales returns and Discounts (-) | (1.747.913.824) | (517.261.993) | (2.108.434.165) | (537.912.301) |
| Net Sales | 11.379.664.857 3.458.193.442 |
12.958.147.123 | 3.838.424.728 |
|---|---|---|---|
| ----------- | --------------------------------- | ---------------- | --------------- |
For the periods ended at 30 September 2024 and 2023, the details of cost of sales are as following;
| 1 January – 30 Sep. 2024 |
1 July – 30 Sep. 2024 |
1 January – 30 Sep. 2023 |
1 July – 30 Sep. 2023 |
|
|---|---|---|---|---|
| Cost of finished goods sold | (5.162.501.448) | (1.628.083.097) | (7.324.254.598) | (2.469.758.816) |
| Cost of merchandise | (2.460.701.255) | (653.558.675) | (1.660.949.026) | (251.786.953) |
| Cost of services sold | (225.913.213) | (95.840.500) | (181.692.833) | (59.089.740) |
| Total | (7.849.115.916) | (2.377.482.272) | (9.166.896.457) | (2.780.635.509) |
| 1 January – 30 Sep. 2024 |
1 July – 30 Sep. 2024 |
1 January – 30 Sep. 2023 |
1 July – 30 Sep. 2023 |
|
|---|---|---|---|---|
| Research and development expenses | 64.257.021 | 20.917.284 | 65.764.465 | 21.520.514 |
| Marketing, sales and distribution expenses | 2.501.057.473 | 711.058.975 | 2.515.757.606 | 853.432.519 |
| General administrative expenses | 454.955.442 | 178.548.767 | 439.912.557 | 153.412.028 |
| Total | 3.020.269.936 | 910.525.026 | 3.021.434.628 | 1.028.365.061 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 1 January – | 1 July – |
1 January – | 1 July – |
|
|---|---|---|---|---|
| 30 Sep. 2024 |
30 Sep. 2024 |
30 Sep. 2023 |
30 Sep. 2023 |
|
| Personnel Expenses | 1.116.562.134 | 353.071.889 | 1.108.900.952 | 389.024.627 |
| Advertising Expenses | 418.949.889 | 113.662.714 | 466.336.520 | 150.802.484 |
| Depreciation Expense | 400.118.719 | 118.539.601 | 321.368.785 | 114.245.048 |
| Transportation Expenses | 311.836.018 | 94.581.710 | 211.876.185 | 55.681.640 |
| Sales Channel Setup and Logistics Expenses | 168.029.940 | 57.488.832 | 164.408.413 | 54.800.968 |
| E-commerce Commission Expenses | 73.146.837 | 19.924.366 | 65.051.099 | 22.404.363 |
| Rent Expenses | 63.813.131 | 23.071.048 | 88.244.648 | 43.396.383 |
| Taxes, Duties, and Fees Expenses | 44.192.569 | 20.421.494 | 30.610.130 | 12.311.305 |
| Consulting Expense | 44.002.092 | 13.928.709 | 54.852.192 | 10.418.199 |
| Turnover Bonus Expenses | 40.936.646 | 545.509 | 41.685.012 | 27.071.958 |
| Travel, Transportation, and Accommodation Expenses | 36.447.062 | 16.275.225 | 39.780.266 | 13.438.228 |
| Export Expenses | 34.309.048 | 3.526.294 | 46.587.851 | 7.978.677 |
| Electricity, Water, and Heating Expenses | 32.965.484 | 11.498.590 | 43.779.376 | 11.810.572 |
| Exhibition Expenses | 30.557.183 | 7.486.439 | 123.711.927 | 49.287.320 |
| Material Expense | 28.916.445 | 5.552.503 | 22.172.877 | 12.112.493 |
| Decoration Expense | 28.135.436 | 13.290.839 | 18.855.498 | 8.390.221 |
| Store Common Area Expenses | 27.830.066 | 10.139.153 | 30.440.690 | 10.232.956 |
| Maintenance and Repair Expenses | 16.664.061 | 5.264.640 | 18.881.552 | 5.057.737 |
| Communication Expenses | 16.100.638 | 9.922.126 | 3.979.416 | 1.263.882 |
| Dealer Opening Support | 7.794.288 | 2.328.444 | 18.503.387 | 9.987.547 |
| Insurance Expenses | 5.268.703 | 800.450 | 12.373.814 | 4.211.130 |
| Other Expenses | 73.693.547 | 9.204.451 | 89.034.038 | 14.437.323 |
| Toplam | 3.020.269.936 | 910.525.026 | 3.021.434.628 | 1.028.365.061 |
| 1 January – 30 Sep. 2024 |
1 July – 30 Sep. 2024 |
1 January – 30 Sep. 2023 |
1 July – 30 Sep. 2023 |
|
|---|---|---|---|---|
| Foreign exchange income | 14.703.426 | 5.458.204 | 50.520.871 | 8.010.222 |
| Interest income | 12.949.057 | 899.428 | 13.267.461 | 4.988.630 |
| Toplam | 27.652.483 | 6.357.632 | 63.788.332 | 12.998.852 |
| 1 January – 30 Sep. 2024 |
1 July – 30 Sep. 2024 |
1 January – 30 Sep. 2023 |
1 July – 30 Sep. 2023 |
|
|---|---|---|---|---|
| Foreign exchange losses | 236.310.616 | 138.606.294 | 129.881.549 | 47.088.327 |
| Interest expenses | 862.262.301 | 254.690.941 | 411.290.689 | 146.669.187 |
| Bank commission | 218.863.861 | 80.037.115 | 107.366.435 | 41.048.697 |
| Lease payables interest accruals | 38.309.839 | 12.830.729 | 14.989.483 | 2.016.163 |
| Guarantee letter commison expenses | 5.182.948 | 1.306.765 | 4.901.738 | 1.908.132 |
| Other financial expenses | 10.319.700 | 4.298.930 | 53.202.624 | 42.003.885 |
| Toplam | 1.371.249.265 | 491.770.774 | 721.632.518 | 280.734.391 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
In Turkey, as of September 30, 2024 the corporate tax rate is 25% (2023: 25%). However, with the 91st article of the Law No. 7061 "Amending Some Tax Laws and Other Laws" published in the Official Gazette No. 30261 dated December 5, 2017, and the temporary 10th article added to the Corporate Tax Law No. 5520, it is envisaged that the corporate tax to be paid on the earnings of corporations for the tax periods of 2018, 2019, and 2020 will be calculated at a rate of 23% and then continue to be taxed at a rate of 20%. During this period, the Council of Ministers has been given the authority to reduce the rate of 22% to 20%.
As of the period ending on September 30, 2024, in accordance with tax legislation, provisional tax is calculated and paid at a rate of 25% (2023: 25%) on the earnings formed every three months, and the amounts paid in this way are offset from the tax calculated on the annual income.
According to the Corporate Tax Law, financial losses shown on the declaration can be deducted from the corporate tax base of the period, provided that they do not exceed 5 years. Declarations and related accounting records can be examined by the tax office within five years, and tax accounts can be revised. Dividend payments made to real persons who are resident and non-resident in Turkey and to legal persons who are not resident in Turkey by joint-stock companies resident in Turkey, except those who are not liable for corporate tax and income tax and those who are exempt, are subject to 15% income tax.
Dividend payments made by joint-stock companies resident in Turkey to other joint-stock companies resident in Turkey are not subject to income tax. Also, if the profit is not distributed or added to the capital, income tax is not calculated.
Dividend earnings obtained by corporations from their participation in the capital of another corporation subject to full liability (excluding dividend earnings from investment fund participation certificates and investment partnership shares) are exempt from corporate tax. In addition, 75% of the earnings from the sale of participation shares and real estate (immovables) founder's certificates, usufruct certificates, and pre-emption rights, which corporations have held in their assets for at least two full years, are exempt from corporate tax as of September 30, 2024.
However, with the amendment made by Law No. 7061, this rate has been reduced from 75% to 50% for immovables and this rate will be used as 50% in tax declarations to be prepared from 2019 onwards. To benefit from the exemption, the relevant earnings must be kept in a fund account in the passive and must not be withdrawn from the business for 5 years. The sales price must be collected by the end of the second calendar year following the year in which the sale was made. There are many exemptions for corporations in the Corporate Tax Law. The ones related to the Company are explained below:
Since 75% of the earnings from the sale of real estate (immovables) in the Group's assets for at least two full years were exempt from corporate tax as of September 30, 2024, the taxable temporary differences arising on the real estate owned by the Group were accepted as 5% by applying a 75% exemption on the corporate tax at the rate of 20% used in previous periods. As of September 30, 2024, since the forward-looking exemption rate was determined as 50%, the exemption was applied and the new deferred tax rate was accepted as 10%.
Taxes in balance sheet
| 30 September 2024 |
31 December 2023 | |
|---|---|---|
| Corporation tax | -- | 253.530.642 |
| Prepaid taxes and funds (-) | -- | (161.036.070) |
| Total | -- | 92.494.572 |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 30 Sep. 2024 | 31 Dec. 2023 | 30 Sep. 2024 | 31 Dec. 2023 | |
|---|---|---|---|---|
| Cumulative | Cumulative | Deferred tax | Deferred tax | |
| temporary | temporary | assets / | assets / | |
| Deferred tax assets / (liabilities), net | difference | difference | (liabilities) | (liabilities) |
| Receivable Rediscount Adjustments | 111.106.096 | 102.920.399 | 27.776.524 | 25.730.099 |
| Advances Received Adjustments | 14.162 | 17.829.375 | 3.541 | 4.457.344 |
| Debt Rediscount Adjustments | (85.537.389) | (117.270.635) | (21.384.347) | (29.317.659) |
| Lawsuit Provisions Adjustments | 405.529 | 550.953 | 101.382 | 137.738 |
| Other Accounts Adjustments | 13.135.770 | 10.302.838 | 3.283.942 | 2.575.712 |
| Other Provisions Adjustments | 6.816.910 | 9.261.477 | 1.704.228 | 2.315.370 |
| Severance Pay Provisions Adjustments | 127.314.118 | 59.176.184 | 31.828.530 | 14.794.047 |
| Credit Interest Accruals Adjustments | 14.576.839 | 18.241.991 | 3.644.210 | 4.560.497 |
| Usage Rights Adjustments | (579.032.306) | (483.211.941) | (144.758.077) | (120.802.985) |
| Tangible and Intangible Fixed Assets Adjustments | (1.680.563.891) | (1.161.264.440) | (366.580.279) | (217.548.369) |
| Prepaid Expenses Adjustments | (113.310.664) | 50.594.841 | (28.327.666) | 12.648.710 |
| inventory Value Decrease Adjustments | 31.020.018 | 16.204.317 | 7.755.005 | 4.051.080 |
| Forward Purchase Differences on inventory | (348.000.413) | (146.054.699) | (87.000.103) | (36.513.674) |
| Doubtful Receivables Provisions Adjustments | 17.012.890 | 16.381.098 | 4.253.223 | 4.095.275 |
| Advances Given Adjustments | 8.489.821 | (26.559.478) | 2.122.455 | (6.639.870) |
| Investment Property Adjustments | (177.330.351) | (170.024.089) | (44.332.588) | (42.506.023) |
| Deferred Tax Liabilities | (2.653.882.861) | (1.802.921.809) | (609.910.020) | (377.962.708) |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
The carrying amounts of foreign currency assets and liabilities held by the Group as of 30 September 2024 and 31 December 2023 are as follows:
| 30 September 2024 | ||||||
|---|---|---|---|---|---|---|
| TRY | ||||||
| equivalent | ||||||
| functional | USD | EUR | GBP | RUBLE | CNY | |
| currency | ||||||
| 1. Trade Receivables | 763.303.715 | 12.905.584 | 2.570.145 | 18.000 | 614.919.859 | -- |
| 2a. Monetary Financial Assets (including cash, | ||||||
| banks) | 106.847.066 | 669.510 | 2.028.349 | 198 | 17.439.000 | 108.557 |
| 2b. Non-monetary financial assets | -- | -- | -- | -- | -- | -- |
| 3. Other | 339.200.123 | 1.234.309 | 6.577.307 | 8.873 | -- | 9.652.157 |
| 4. Current Assets (1+2+3) | 1.209.350.904 | 14.809.403 | 11.175.801 | 27.071 | 632.358.859 | 9.760.714 |
| 5. Trade Receivables | -- | -- | -- | -- | -- | -- |
| 6a. Monetary financial assets | -- | -- | -- | -- | -- | -- |
| 6b. Non-monetary financial assets | -- | -- | -- | -- | -- | -- |
| 7. Other | 1.947.289 | 57.122 | -- | -- | -- | -- |
| 8. Non-Current Assets (5+6+7) | 1.947.289 | 57.122 | -- | -- | -- | -- |
| 9. Total Assets (4+8) | 1.211.298.193 | 14.866.525 | 11.175.801 | 27.071 | 632.358.859 | 9.760.714 |
| 10. Trade Payables | 332.275.988 | 6.083.533 | 2.858.551 | 11.000 | 34.050 | 3.247.261 |
| 11. Financial Liabilities | 1.623.997.680 | 3.971.859 | 34.208.593 | -- | -- | 38.899.288 |
| 12a. Other monetary financial liabilities | 23.715.557 | 450.285 | 66.649 | -- | 15.950.000 | -- |
| 12b. Other non-monetary financial liabilities | -- | -- | -- | -- | -- | -- |
| 13. Current Liabilities (10+11+12) | 1.979.989.225 | 10.505.677 | 37.133.793 | 11.000 | 15.984.050 | 42.146.549 |
| 14. Trade Payables | -- | -- | -- | -- | -- | -- |
| 15. Financial Liabilities | 427.852.247 | 755.319 | 10.576.659 | -- | -- | -- |
| 16a. Other monetary financial liabilities | -- | -- | -- | -- | -- | -- |
| 16b. Other non-monetary financial liabilities | -- | -- | -- | -- | -- | -- |
| 17. Non-Current Liabilities (14+15+16) | 427.852.247 | 755.319 | 10.576.659 | -- | -- | -- |
| 18. Total Liabilities (13+17) | 2.407.841.472 | 11.260.996 | 47.710.452 | 11.000 | 15.984.050 | 42.146.549 |
| 19. Net asset / liability position of off- balance | ||||||
| sheet derivative instruments (19a-19b) | -- | -- | -- | -- | -- | -- |
| 19a. Hedged amount of assets | -- | -- | -- | -- | -- | -- |
| 19b. Hedged amount of liabilities position | -- | -- | -- | -- | -- | -- |
| 20. Net foreign currency position asset / | ||||||
| liabilities (9-18+19) | (1.196.543.279) | 3.605.529 | (36.534.651) | 16.071 | 616.374.809 | (32.385.835) |
| 21. Net foreign currency asset / liability position | ||||||
| of monetary items (IFRS 7.B23) (=1+2a+5+6a-10- | ||||||
| 11-12a-14-15-16a) | (1.537.690.691) | 2.314.098 | (43.111.958) | 7.198 | 616.374.809 | (42.037.992) |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| 31 December 2023 | ||||||
|---|---|---|---|---|---|---|
| TRY | ||||||
| equivalent | ||||||
| functional | USD | EUR | GBP | RUBLE | CNY | |
| currency | ||||||
| 1. Trade Receivables | 826.165.821 | 13.280.295 | 1.748.210 | 18.000 | 489.195.000 | -- |
| 2a. Monetary Financial Assets (including cash, | ||||||
| banks) | 143.051.242 | 1.764.594 | 911.645 | 23 | 72.201.000 | 25.291 |
| 2b. Non-monetary financial assets | -- | -- | -- | -- | -- | -- |
| 3. Other | 299.564.060 | 796.941 | 4.799.335 | 7.141 | -- | 9.811.021 |
| 4. Current Assets (1+2+3) | 1.268.781.122 | 15.841.830 | 7.459.190 | 25.164 | 561.396.000 | 9.836.312 |
| 5. Trade Receivables | -- | -- | -- | -- | -- | -- |
| 6a. Monetary financial assets | -- | -- | -- | -- | -- | -- |
| 6b. Non-monetary financial assets | -- | -- | -- | -- | -- | -- |
| 7. Other | 6.606.428 | 165.182 | -- | -- | -- | -- |
| 8. Non-Current Assets (5+6+7) | 6.606.428 | 165.182 | -- | -- | -- | -- |
| 9. Total Assets (4+8) | 1.275.387.550 | 16.007.012 | 7.459.190 | 25.164 | 561.396.000 | 9.836.312 |
| 10. Trade Payables | 324.665.514 | 3.422.076 | 4.229.709 | 11.780 | 34.050 | -- |
| 11. Financial Liabilities | 777.534.154 | 3.650.000 | 12.517.290 | -- | -- | 13.859.461 |
| 12a. Other monetary financial liabilities | 18.595.914 | 377.897 | 78.680 | -- | -- | -- |
| 12b. Other non-monetary financial liabilities | -- | -- | -- | -- | -- | -- |
| 13. Current Liabilities (10+11+12) | 1.120.795.582 | 7.449.973 | 16.825.679 | 11.780 | 34.050 | 13.859.461 |
| 14. Trade Payables | -- | -- | -- | -- | -- | -- |
| 15. Financial Liabilities | 133.709.834 | -- | 3.021.349 | -- | -- | -- |
| 16a. Other monetary financial liabilities | -- | -- | -- | -- | -- | -- |
| 16b. Other non-monetary financial liabilities | -- | -- | -- | -- | -- | -- |
| 17. Non-Current Liabilities (14+15+16) | 133.709.834 | -- | 3.021.349 | -- | -- | -- |
| 18. Total Liabilities (13+17) | 1.254.505.416 | 7.449.973 | 19.847.028 | 11.780 | 34.050 | 13.859.461 |
| 19. Net asset / liability position of off- balance | ||||||
| sheet derivative instruments (19a-19b) | -- | -- | -- | -- | -- | -- |
| 19a. Hedged amount of assets | -- | -- | -- | -- | -- | -- |
| 19b. Hedged amount of liabilities position | -- | -- | -- | -- | -- | -- |
| 20. Net foreign currency position asset / liabilities | ||||||
| (9-18+19) | 20.882.134 | 8.557.039 | (12.387.838) | 13.384 | 561.361.950 | (4.023.149) |
| 21. Net foreign currency asset / liability position | ||||||
| of monetary items (IFRS 7.B23) (=1+2a+5+6a-10- | ||||||
| 11-12a-14-15-16a) | (285.288.354) | 7.594.916 | (17.187.173) | 6.243 | 561.361.950 | (13.834.170) |
Details of the import and export amounts of the Group as of 30 September 2024 and 2023 are as follows;
| 1 January – 30 September 2024 |
1 January – 30 September 2023 |
|||
|---|---|---|---|---|
| Import | Export | Import | Export | |
| USD | 9.247.455 | 15.331.581 | 10.707.239 | 14.832.289 |
| EUR | 7.580.314 | 6.938.630 | 8.160.925 | 5.648.249 |
| TRY | -- | 8.946.563 | -- | 9.911.331 |
| GBP | 28.598 | -- | -- | -- |
| CNY | 36.737.211 | -- | 4.857.600 | -- |
| TRY equivalent | 725.947.504 | 743.737.285 | 647.729.751 | 688.532.991 |
As of 30 September 2024 , if TRY evaluates / devaluates against foreign currency by 10% and all other variables remains the same, profit before tax which occurs as a result of the foreign exchange loss / gain arising from net foreign exchange exposure is as below:
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
| Foreign Currency Risk Sensitivity Analysis Table | |||||
|---|---|---|---|---|---|
| 30 September 2024 | |||||
| Profit / (Loss) | |||||
| Appreciation of foreign currency | Depreciation of foreign currency | ||||
| In case of appreciation / depreciation of USD against TRY at 10% | |||||
| 1- USD net asset / liability | 12.291.248 | (12.291.248) | |||
| 2- Part of hedged from USD risk (-) | -- | -- | |||
| 3- USD net effect (1+2) | 12.291.248 | (12.291.248) | |||
| In case of appreciation / depreciation of EUR against TRY at 10% | |||||
| 4- EUR net asset / liability | (138.897.436) | 138.897.436 | |||
| 5- Part of hedged from EUR risk (-) | -- | -- | |||
| 6- EUR net effect (4+5) | (138.897.436) | 138.897.436 | |||
| In case of appreciation / depreciation of GBP against TRY at 10% | |||||
| 7-GBP net asset/liability | 73.189 | (73.189) | |||
| 8-Part of hedged from GBP risk (-) | -- | -- | |||
| 9-GBP net effect (7+8) | 73.189 | (73.189) | |||
| In case of appreciation / depreciation of RUB against TRY at 10% | |||||
| 10-RUB net asset/liability | 22.535.279 | (22.535.279) | |||
| 11-Part of hedged from RUB risk (-) | -- | -- | |||
| 12-RUB net effect (10+11) | 22.535.279 | (22.535.279) | |||
| In case of appreciation / depreciation of CNY against TRY at 10% | |||||
| 13-CNY net asset/liability | (15.656.608) | 15.656.608 | |||
| 14-Part of hedged from CNY risk (-) | -- | -- | |||
| 15-CNY net effect (10+11) | (15.656.608) | 15.656.608 | |||
| Total (3+6+9+12+15) | (119.654.328) | 119.654.328 |
| Foreign Currency Risk Sensitivity Analysis Table | |||||
|---|---|---|---|---|---|
| 31 December 2023 | |||||
| Profit / (Loss) | |||||
| Appreciation of foreign currency | Depreciation of foreign currency | ||||
| In case of appreciation / depreciation of USD against TRY at 10% | |||||
| 1- USD net asset / liability | 25.190.383 | (25.190.383) | |||
| 2- Part of hedged from USD risk (-) | -- | -- | |||
| 3- USD net effect (1+2) | 25.190.383 | (25.190.383) | |||
| In case of appreciation / depreciation of EUR against TRY at 10% | |||||
| 4- EUR net asset / liability | (40.352.020) | 40.352.020 | |||
| 5- Part of hedged from EUR risk (-) | -- | -- | |||
| 6- EUR net effect (4+5) | (40.352.020) | 40.352.020 | |||
| In case of appreciation / depreciation of GBP against TRY at 10% | |||||
| 7-GBP net asset/liability | 50.112 | (50.112) | |||
| 8-Part of hedged from GBP risk (-) | -- | -- | |||
| 9-GBP net effect (7+8) | 50.112 | (50.112) | |||
| In case of appreciation / depreciation of RUB against TRY at 10% | |||||
| 10-RUB net asset/liability | 18.306.575 | (18.306.575) | |||
| 11-Part of hedged from RUB risk (-) | -- | -- | |||
| 12-RUB net effect (10+11) | 18.306.575 | (18.306.575) | |||
| In case of appreciation / depreciation of CNY against TRY at 10% | |||||
| 13-CNY net asset/liability | (1.658.020) | 1.658.020 | |||
| 14-Part of hedged from CNY risk (-) | -- | -- | |||
| 15-CNY net effect (10+11) | (1.658.020) | 1.658.020 | |||
| Total (3+6+9+12+15) | 1.537.030 | (1.537.030) |
(Amounts expressed in Turkish Lira ("TRL") in terms of the purchasing power of the TRL at September 30, 2024, unless otherwise indicated)
(CONVENIENCE TRANSLATION INTO ENGLISH OF INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, ORIGINALLY ISSUED IN TURKISH)
Fair value is the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation, and is best evidenced by a quoted market price, if one exists. The estimated fair values of financial instruments have been determined by the Company using available markets information in Turkey and appropriate valuation methodologies. However, judgment is necessarily required to interpret market data to estimate the fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current market exchange.
Balances denominated in foreign currencies are converted at period exchange rates. The fair value of certain financial assets carried at cost, including cash and cash equivalents are considered to approximate their respective carrying amounts in the financial statements. The carrying value of trade receivables, net of allowances for possible non-recovery of uncollectible are considered to approximate their fair values
The fair value of short-term bank loans and other monetary liabilities are considered to approximate their respective carrying values due to their short-term nature. The fair values of long-term bank borrowings, which are denominated in foreign currencies and translated at period/year-end exchange rates, are considered to approximate their carrying values. The carrying amount of accounts payable and accrued expenses reported in the financial statements for estimated third party payer settlements approximates its fair values.
None. (31 December 2023: None).
None. (31 December 2023: None).
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