TIDMDPEU
RNS Number : 8465M
DP Eurasia N.V
19 September 2023
For Immediate Release 19 September 2023
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its
subsidiaries, the " Group ")
Interim Results for the six months ended 30 June 2023 (1)
Highlights (2)
For the period ended
30 June
-----------------------
Number of stores 2023 2022 Change
Turkey (Domino's) 675* 628 47
Turkey (COFFY) 51 15 36
Azerbaijan 10 10 -
Georgia 6 5 1
Total continuing operations 742 658 84
Russia (discontinued operations) 142 184 -42
Grand Total 884 842 42
Change
Group system sales (after (pre-IAS
IAS 29) (3) 2023 2022 Change 29)
Turkey 2,424.0 1,864.6 30.0% 91.7%
Azerbaijan 42.7 44.8 -4.6% 40.7%
Georgia 30.6 22.4 36.2% 99.9%
COFFY 95.3 21.7 339.5% 529.5%
Total continuing operations 2,592.6 1,953.5 32.7% 95.6%
Russia (discontinued operations) 422.2 492.7 -14.3% -14.3%
Grand Total 3,014.8 2,446.2 23.2% 64.7%
---------------------------------- ----------- ---------- ------- ----------
System sales LfL growth(4) (after IAS 29) (pre-IAS 29)
2023 2022 2023 2022
Turkey 26.5% -8.4% 86.2% 51.0%
Azerbaijan (based on AZN) 5.2% 3.7% 5.2% 3.7%
Georgia (based on GEL) 4.3% 32.2% 4.3% 32.2%
Total continuing operations 25.9% -7.9% 84.1% 50.1%
Russia (discontinued operations,
based on RUB) -24.8% -2.6% -24.8% -2.6%
* Including nine temporarily closed stores as a result of the
earthquake in early 2023.
Group financials (after IAS 29) (pre-IAS 29)
(in millions of
TRY) 2023 2022 Change 2023 2022 Change
Revenue 1,581 1,268 24.7% 1,494 795 87.9%
Adjusted EBITDA(5) 265 197 34.4% 288 141 104%
Adjusted net income
( from continuing
operations ) (6) 229 153 50.2% 131 83 150%
Adjusted net debt(7) 618 1,015 -39.1% 618 1,015 -39.1%
Financial Highlights ( from continuing operations)
-- Strong overall performance with Group revenue up 24.7%
(pre-IAS 29: 88%) and system sales up 32.7% (pre-IAS 29: 96%). LfL
Group system sales for continuing operations were up 25.9%.
-- Excellent LfL growth in Turkey of 26.5% amid a sustained
inflationary environment, reflecting the ongoing focus on
maintaining franchisee profitability, network expansion, strategic
pricing, and product and service innovation.
-- Azerbaijan and Georgian operations delivered LfL growth of
5.2% and 4.3% respectively (in local currencies).
-- Adjusted EBITDA increased 34.4% to TRY 265 million while the
EBITDA margin improved to 16.8% from 15.6% year on year thanks to
better operational leverage with increases sales performance.
-- Adjusted net income (from continuing operations) increased
50.2% to TRY 229 million (1H 2022: TRY 153 million).
-- The Group maintained a strong liquidity position with TRY 372
million cash and an undrawn bank facility of TRY 515 million as of
30 June 2023 .
-- Adjusted net debt was TRY 618 million as of 30 June 2023 vs.
TRY 849 million at the end of 2022. Net debt / EBITDA improved
sharply to 1.3x from the 2.3x reported for the end of end-2022 (and
vs. 2.8x year on year).
-- Leverage is expected to further improve by year-end given the
enhanced profitability of the Group.
Operational Highlights ( from continuing operations)
-- Online delivery system sales in Turkey increased to 83.9%
(2022: 81.2%) as a share of delivery system sales(6) , reflecting
our robust positioning for the online ordering channel. Strong
Turkish online system sales growth of 30.7% (pre-IAS 29:
93.0%).
-- Net new store opening momentum has been maintained:
o The Turkish Domino's Pizza network has increased by 47 stores
year on year, supported by 20 new store openings in H1. This
reflects the strong demand profile, and the Group is therefore
confident in its ability to comfortably reach the 35-40 net new
store opening guidance for the full year.
o The COFFY network has now exceeded the 50-store milestone,
having increased by 22 in the current financial year (or by 36
year-on-year) to 51. We are on track with our guidance of 50-60 net
COFFY openings in FY23.
o Georgia now has six Domino's Pizza stores, an increase of
one.
-- The growth opportunity for COFFY remains significant, with
excellent market dynamics in Turkey for the coffee sub-segment.
COFFY delivered TRY 95 million to Group system sales, up 339%.
-- As announced on 21 August 2023, the Group has initiated
bankruptcy proceedings for its Russian subsidiary. No sales process
has occurred since this announcement, and bankruptcy proceedings
are currently underway. The Group will continue to provide updates,
particularly with regards to the financial impact of these
proceedings, as necessary. The Russian segment continues to be
classified as discontinued operations within the Company's audited
financial statements.
2023 Outlook
-- The Group is mindful that 2023 has so far been another year
of volatile macro-economic circumstance and uncertainty. The
inflation risk persists, and while the Group has an excellent track
record of managing and negating the impact of inflation, it may
affect overall growth levels. Nevertheless, strong trading momentum
has been sustained into the second half of the financial year. The
Board is therefore confident that LfL inflation adjusted growth
will be in the high teens for the full year 2023, better than low
teens figure previously guided.
-- The Group anticipates that it will maintain organic and LfL
sales momentum in 2023. This momentum will be driven by sustained
network expansion, volume growth and targeted price adjustments.
New customer acquisition and increased order frequency levels are
expected to contribute to growing volumes.
-- The strong store openings momentum seen in Turkey is
anticipated to continue for both Domino's and COFFY, driven by
solid franchisee demand. Our commitment to maintaining franchisee
profitability continues to be front and centre of this demand. The
Group anticipates that FY23 will be another year of strong network
expansion as the it seeks to broaden its coverage to cater to
demand.
-- Capital expenditure expectations have increased to TRY 200
million (from TRY 160 million), owing to higher corporate store
investments for new COFFY openings predominantly driven by currency
depreciation impact.
-- Guidance for store openings, LfL growth rates and capital
expenditure in Turkey for 2023 is as follows:
Previous Revised
------------------------- --------------------- ---------------------
LfL growth rate Low teens High teens
(pre IAS 29: 70-80%) (pre IAS 29: 80-90%)
Domino's Pizza net store
openings 35 - 40 35 - 40
COFFY net store openings 50 - 60 50 - 60
Capital expenditure TRY 160 million TRY 200 million
------------------------- --------------------- ---------------------
Commenting on the results, Chief Executive Officer, Aslan
Saranga said:
"I am very pleased to be delivering very solid operational and
financial results in the first half of 2023, which is a clear
result of our targeted plans to mitigate the ongoing macro
challenges. Strong trading momentum has been maintained; thanks to
the healthy dynamics of the sub-sectors the Group operates within.
Management's expertise in navigating inflation and the Group's
resilience and agility in execution enabled strong store expansion
dynamics and have resulted in a solid financial performance, from
top to bottom line.
"We have an innovative and customer-centric mindset, helping us
to grow in a healthy manner as we pursue long-term and sustainable
profitability. Our targeted strategy focuses on three areas -
strategic pricing and product innovation, continued digital
innovation, and operational excellence for everyday efficiency.
This approach enabled us to combat the high volatility levels with
the positive impact visible in terms of volume generation and
customer acquisition. Despite ongoing cost pressures, adjusted
EBITDA and net income grew significantly and our margins expanded
pleasingly.
"Our focus on product innovation remains integral. We continue
to broaden our entry price product range and launched a new
mushroom pizza in January which has reached good volumes. Following
the successful Pizzetta launch last year, we added new varieties to
further enhance the potential of this product line. In addition,
our new 'snacks from the oven' range was launched in February
presenting a broad choice of attractively priced products to
customers who increasingly seek value and affordability. The latest
addition to our product range, Pizza XL, has contributed well and
in line with our internal expectations. With a Turkish nationwide
advertising campaign being rolled out in July, we expect the
contribution from Pizza XL to continue to improve.
"We continue to improve the online proportion of our sales, and
digital innovation remains an important enabler for us to enhance
the customer experience and further solidify our robust positioning
for the online ordering channel.
"We retain a fundamental commitment to ensuring franchisees
remain profitable. As a result, franchisee demand for both Domino's
Pizza and COFFY continues to be very healthy. We have a strong
pipeline of new sites and are confident that 2023 will be another
solid year for network expansion.
"Consumer demand for COFFY stands very strong thanks to its
unique value proposition. Having developed multiple store concepts
to fit in with local circumstances, the COFFY network exceeded the
50-store milestone, having increased by 22 in the current financial
year. Franchisee demand stands very strong owing to COFFY's proven
sales performance. This demand, alongside our ambitious targets for
2023, will enable us to add further scale in a sub-sector that is
of increasing popularity.
"Overall, we are very pleased with the strong first half
performance and will continue to deliver on our targeted strategy
to make the most of what continues to be a significant growth
opportunity."
Enquiries
DP Eurasia N.V.
İlknur Kocaer, CFA - Investor Relations
Director +90 212 280 9636
Buchanan (Financial Communications)
Richard Oldworth / Toto Berger / Verity +44 20 7466 5000
Parker dp@buchanan.uk.com
Analyst Briefing and Conference Call
A remote briefing will be held at 9.00am UK time via a
conference call facility. The call will be accessible via the below
details and will be accompanied with a presentation, which will be
made available on the morning of results and accessed at
www.dpeurasia.com . Please contact Buchanan on dp@buchanan.uk.com t
o register your attendance.
Conference UK Toll: +44 (0) 20 3037 9299
call: UK Toll Free: 0808 109 0700
Notes
(1) Financial statements as of 30 June 2023 are subjected to
limited review and non-IFRS measures are not audited.
(2) All Group figures exclude Russian business which is now a
discontinued operation. COFFY numbers are included in all Turkey
and Group figures, unless presented separately. Like-for-like
figures exclude COFFY
(3) System sales are sales generated by the Group's corporate
and franchised stores to external customers and do not represent
revenue of the Group. These numbers are not audited.
(4) Like-for-like growth is a comparison of sales between two
periods that compares system sales of existing system stores. The
Group's system stores that are included in like-for-like system
sales comparisons are those that have operated for at least 52
weeks preceding the beginning of the first month of the period used
in the like-for-like comparisons for a certain reporting period,
assuming the relevant system store has not subsequently closed or
been "split" (which involves the Group opening an additional store
within the same map of an existing store or in an overlapping
area). This is a non-IFRS measure and non-IFRS measures are not
audited.
(5) EBITDA, adjusted EBITDA and non-recurring and non-trade
income/expenses are not defined by IFRS and non-IFRS measures are
not audited. These items are determined by the principles defined
by the Group management and comprise income/expenses which are
assumed by the Group management to not be part of the normal course
of business and are non-trading items. These items which are not
defined by IFRS are disclosed by the Group management separately
for a better understanding and measurement of the sustainable
performance of the Group. Reconciliation of EBITDA, adjusted EBITDA
with consolidated financial statements will be presented in Note 3
of Group financial statements section of our annual report.
(6) Adjusted net income is not defined by IFRS and non-IFRS
measures are not audited. Adjusted net income excludes income and
expenses which are not part of the normal course of business and
are non-recurring items. Management uses this measurement basis to
focus on core trading activities of the business segments and to
assist it in evaluating underlying business performance.
Reconciliation of EBITDA, adjusted EBITDA with consolidated
financial statements will be presented in Note 3 of Group financial
statements section of our annual report.
(7) Net debt and adjusted net debt are not defined by IFRS and
non-IFRS measures are not audited. Adjusted net debt includes cash
deposits used as a loan guarantee and cash paid, but not collected
during the non-working day at the year end. Management uses these
numbers to focus on net debt including deposits not otherwise
considered cash and cash equivalents under IFRS. Net debt figure
includes the external debt of DP Russia which was guaranteed by the
Group and its Turkish subsidiary.
(8) Delivery system sales are system sales of the Group
generated through the Group's delivery distribution channel.
(9) Online system sales are system sales of the Group generated
through its online ordering channel.
Notes to Editors
DP Eurasia N.V. is the exclusive master franchisee of the
Domino's Pizza brand in Turkey, Azerbaijan, and Georgia. The
Company was admitted to the premium listing segment of the Official
List of the Financial Conduct Authority and to trading on the main
market for listed securities of the London Stock Exchange plc on 3
July 2017. The Company (together with its subsidiaries, the
"Group") is the largest pizza delivery company in Turkey. The Group
offers pizza delivery and takeaway/ eat-in facilities at its 691
stores (675 in Turkey, 10 in Azerbaijan and 6 in Georgia) as of 30
June 2023 and operates through its owned corporate stores (12%) and
franchised stores (88%). In addition to its pizza delivery
business, the Group also has its own coffee brand, COFFY, which
trades from 51 stores at period-end, 38 of which are franchised.
The Group maintains a strategic balance between corporate and
franchised stores, establishing networks of corporate stores in its
most densely populated areas to provide a development platform upon
which to promote best practice and maximise profitability.
In line with the announcement on 21 August 2023, the Company has
initiated the steps to file for DP Russia's bankruptcy. This was
preceded by the announcement on 28 December 2022, which confirmed
that the Company was evaluating its presence in Russia, the impact
of sanctions and its continuing ability to serve its customers in
Russia. In this connection, the Russian segment was classified as
discontinued operations within the Company's audited financial
statements for the year ended 31 December 2022.
Performance Review
Store count As of 30 June
----------------------------------------------------------------
2023 2022
Corporate Franchised Total Corporate Franchised Total
Turkey (Domino's) 82 593 675 94 534 628
Azerbaijan - 10 10 - 10 10
Georgia - 6 6 - 5 5
COFFY 13 38 51 5 10 15
Total 95 647 742 99 559 658
DP Eurasia's store count for continuing operations increased by
84 year-on-year, or by 42 stores during the first six months of the
year. The Group increased its system sales by 32.7% year-on-year.
Growth on a pre-inflation adjustment basis would have been
95.6%.
System sales of our Domino's Pizza operations in Turkey grew by
30% year-on-year and by 91.7% on a pre-inflation adjustment. The
Group experienced robust franchisee demand in Turkey resulting in a
strong store pipeline, laying solid foundations for ongoing network
expansion and growth. The Domino's Pizza net store count in Turkey
increased by 8% over the last twelve months, with 20 net additions
in first half, on track with the guided range of 35-40 for full
year and building on the strong growth year of 2022.
The COFFY network has now exceeded the 50-store milestone,
having increased by 22 in the current financial year (or by 36
year-on-year) to 51. We are on track with guidance of 50-60 net
COFFY openings in the full year 2023.
Delivery Channel Mix
Online delivery system sales in Turkey increased to 83.9% (2022:
81.2%) as a share of delivery system sales, reflecting our robust
positioning for the online ordering channel. Strong Turkish online
system sales growth of 30.7% (pre-IAS 29: 93.0%). This performance
was aided also by an increase in volumes through the
aggregators.
The following table shows the Group's delivery system sales as a
percentage of delivery system sales:
2023 2022
Store 15.5 % 18.3 %
Online Group's online platform 22.0 % 25.1 %
Aggregator 61.8 % 56.1 %
Total online 83.9 % 81.2 %
Call centre 0.6 % 0.5 %
Total 100% 100%
Financial Review
For the period ended
30 June
-----------------------
2023 2022 Change
----------- ---------- -------
(in millions of TRY)
Revenue 1,581 1,268 24.7%
Cost of sales (900) (822) 9.4%
Gross Profit 681 446 52.9%
General administrative expenses (271) (176) 53.9%
Marketing and selling expenses (245) (172) 42.6%
Other operating income /(expenses),
net (13) 10 n.m.
Operating profit 151 107 40.8%
Foreign exchange gains/(losses) 59 60 -0.3%
Financial income 36 33 8.2%
Financial expense (144) (88) 63.0%
Monetary profit / (loss) 139 103 35.9%
Profit/(Loss) before income
tax 242 215 12.9%
Tax expense (40) (68) -41.5%
Profit/(Loss) after tax, from
continuing operations 203 147 38.1%
Loss from discontinued operations (178) (12) n.m.
(Loss) / Profit for the period 24 135 -82.2%
Adjusted EBITDA 265 197 34.4%
Adjusted net income (from
continuing operations) 229 153 50.2%
Revenue
Group revenue grew by 24.7% to TRY 1,581 million on inflation
adjusted basis.
Adjusted EBITDA
Adjusted EBITDA, which includes the Azerbaijani and Georgian
businesses along with COFFY, was TRY 265 million and demonstrated a
year-on-year increase of 34.4%. For the six-month period ended 30
June 2023, the adjusted EBITDA margin as a percentage of revenues
was 16.8% compared to 15.6% over the same period in 2022. Strong
sales performance created operating leverage through the system
despite the ongoing cost pressures across the board. The Group took
the advantage of its robust purchasing power and agile cost
management capabilities during the period to combat elevated food
costs.
Adjusted Net Income
For the six-month period ended 30 June 2023, adjusted net income
from continuing operations was TRY 229 million. The growth in
revenue and adjusted EBITDA were the main drivers whereas a one-off
tax advantage also contributed to the improved bottom line. The
profit for the period was TRY 24 million, driven by non-cash
write-offs related with Russian business.
Capital expenditure and Cash conversion
The Group incurred TRY 63 million of capital expenditure for
continuing operations in the six months ended 30 June 2023. Cash
conversion* was 73% (1H 2022: 67%) for continuing operations.
Adjusted net debt and leverage
The Group's adjusted net debt as of 30 June 2023, including the
external debt of DP Russia as it was guaranteed by the Group's
Turkish subsidiary, was TRY 618 million, declining from TRY 849
million of end-2022. Note that that external debt of DP Russia with
an amount of 159 million TRY was paid in the third quarter out of
existing cash resources. Hence, net debt position could be expected
to remain at around same levels by the end of the year. Total
borrowings for the Group stood at TRY 1.1 billion as of 30 June
2023.
The Group's leverage ratio (defined as adjusted net
debt/adjusted EBITDA), based on continued operations, stood at 1.3x
as of 30 June 2023, dropping sharply from 2.3x at the end of 2022
(and vs 2.8x at the end of H1 2022). Leverage ratio is expected to
improve further by the end of the year thanks to improving
operational profitability.
The Group had TRY 372 million cash and cash equivalents and an
undrawn bank facility of TRY 515 million as of 30 June 2023.
Forward looking statements
This press release includes forward-looking statements which
involve known and unknown risks and uncertainties, many of which
are beyond the Group's control and all of which are based on the
Directors' current beliefs and expectations about future events.
They appear in a number of places throughout this press release and
include all matters that are not historical facts and include
predictions, statements regarding the intentions, beliefs or
current expectations of the Directors or the Group concerning,
among other things, the results of operations, financial condition,
prospects, growth and strategies of the Group and the industry in
which it operates.
No assurance can be given that such future results will be
achieved; actual events or results may differ materially as a
result of risks and uncertainties facing the Group. Such risks and
uncertainties could cause actual results to vary materially from
the future results indicated, expressed, or implied in such
forward-looking statements.
Forward-looking statements contained in this press release speak
only as of the date of this press release. The Company and the
Directors expressly disclaim any obligation or undertaking to
update these forward-looking statements contained in this press
release to reflect any change in their expectations or any change
in events, conditions, or circumstances on which such statements
are based.
*Cash conversion defined as (Adj EBITDA - lease payment -
capital expenditure)/ Adj EBITDA)
Appendices
Exchange Rates
For the period ended 30 June
----------------------------------------------------------
2023 2022
---------------------------- ----------------------------
Currency Period End Period Average Period End Period Average
----------- --------------- ----------- ---------------
EUR/TRY 28.154 21.407 17.522 16.196
RUB/TRY 0.303 0.256 0.321 0.200
EUR/RUB 95.105 83.651 53.858 83.520
Delivery - Take away / Eat in mix
For the period ended 30 June
--------------------------------------------------
2023 2022
------------------------ ------------------------
Turkey Russia Total Turkey Russia Total
Delivery 73.1% 72.6% 72.7% 75.7% 75.9% 75.4%
Take away / Eat in 26.9% 27.4% 27.3% 24.3% 24.1% 24.6%
Total 100% 100% 100% 100% 100% 100%
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
AS AT 30 JUNE 2023
(UNAUDITED) CONDENSED CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME..................................................................
1
(UNAUDITED) CONDENSED CONSOLIDATED
STATEMENT OF FINANCIAL
POSITION...........................................................................
2-3
(UNAUDITED) CONDENSED CONSOLIDATED
STATEMENT OF CHANGES IN
EQUITY............................................................................
4
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS............. 5
(UNAUDITED) NOTES TO THE CONDENSED CONSOLIDATED INTERIM
FINANCIAL
STATEMENTS.................................................................................................
6 - 31
INDEPENT AUDITOR'S REVIEW
REPORT.................................................................
32
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE PERIODED
30 JUNE 2023
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)
(unaudited) (unaudited)
Notes 30-Jun-23 30-Jun-22
INCOME OR LOSS
Revenue 4 1,581,316 1,267,870
Cost of sales 4 (899,904) (822,269)
Gross Profit 681,412 445,601
General administrative expenses (271,490) (176,460)
Marketing and selling expenses (245,379) (172,095)
Other operating (expense) / income, net (13,382) 10,349
Operating profit 151,161 107,395
Foreign exchange gains 6 59,507 59,683
Financial income 6 35,926 33,200
Financial expense 6 (143,778) (88,202)
Monetary gain 139,546 102,682
Profit from income tax 242,362 214,758
Tax expense (39,845) (68,103)
Income tax expense 20 (22,319) (46,634)
Deferred tax expense 20 (17,526) (21,469)
Profit from continued operations 202,517 146,655
(Loss) from discontinued operations 22 (178,487) (11,985)
(LOSS)/PROFIT FOR THE PERIOD 24,030 134,670
Other comprehensive expense (183,363) (252,817)
Items that will not be reclassified to profit or loss
- Remeasurements of post-employment
benefit obligations, net of tax (3,262) 706
Items that may be reclassified to profit or loss
- Currency translation differences (75,803) 14,470
- Currency translation differences from discontinued operations (104,298) (267,993)
TOTAL COMPREHENSIVE LOSS (159,333) (118,147)
Profit per share for the period attributable
to equity holders of the parent (1) 7 0.16 0.93
Profit per share from continuing operations attributable
to equity holders of the parent (1) 1.38 1.01
(1) Amounts represent the basic and diluted earnings per share.
The accompanying notes on pages 6 till 32 form an integral part
of these condensed consolidated interim financial statements.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF
FINANCIAL POSITION AT 30 JUNE 2023
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)
(unaudited)
Notes 30-Jun-23 31-Dec-22
ASSETS
Trade receivables 13 25,808 19,601
Lease receivables 10 105,197 114,112
Right-of-use assets 10 142,202 118,028
Property and equipment 8 142,102 148,015
Intangible assets 9 123,121 110,157
Goodwill 11 280,988 280,988
Deferred tax assets 20 - 5,010
Other non-current assets 16 88,961 83,143
Non-current assets 908,379 879,054
Cash and cash equivalents 12 371,523 431,038
Trade receivables 13 491,202 355,737
Lease receivables 10 36,246 16,380
Inventories 15 359,789 286,039
Current income tax asset 23,099 54,400
Other current assets 16 128,124 193,992
Current assets 1,409,983 1,337,586
Asset held for sale 22 79,496 435,400
TOTAL ASSETS 2,397,858 2,652,040
The accompanying notes form on pages 6 till 32 an integral part
of these condensed consolidated interim financial statements.
(unaudited)
Notes 30-Jun-23 31-Dec-22
LIABILITIES
EQUITY
Paid in share capital 19 36,353 36,353
Share premium 441,632 441,632
Contribution from shareholders 84,122 76,604
Other comprehensive income/expense
not to be reclassified to profit or loss
- Remeasurements of post-employment
benefit obligations (16,869) (13,607)
Other comprehensive income/expense
to be reclassified to profit or loss
- Currency translation differences (756,657) (576,556)
Retained earnings 85,930 61,900
Total equity (125,489) 26,326
Financial liabilities 17 34,680 64,921
Lease liabilities 10 162,692 182,563
Long term provisions for
employee benefits 16 12,047 16,401
Deferred tax liability 20 12,011 -
Other non-current liabilities 16 148,026 185,541
Non - current liabilities 369,456 449,426
LIABILITIES
Financial liabilities 17 854,014 869,612
Lease liabilities 10 79,295 51,385
Trade payables 13 670,563 423,820
Current income tax liabilities - -
Provisions 7,096 4,118
Other current liabilities 16 185,539 162,555
Current liabilities 1,796,507 1,511,490
Liabilities related to assets held for sale 22 357,384 664,798
TOTAL LIABILITIES 2,523,347 2,625,714
TOTAL LIABILITIES & EQUITY 2,397,858 2,652,040
The accompanying notes form on pages 6 till 32 an integral part
of these condensed consolidated interim financial statements.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE PERIODED
30-Jun-23
(Amounts expressed in thousands of Turkish Lira (TRY)
unless otherwise stated.)
Share Share Contribution Remeasurement Currency Retained Total
capital premium from of post- translation earnings Equity
shareholders employment differences
benefit
obligations
Balances at 1
January 2022
(unaudited) 36,353 441,632 85,998 (6,239) (471,657) 2,748 88,835
Remeasurements
of
post-employment
benefit
obligations,
net - - - 706 - - 706
Currency
translation
adjustments - - - - (253,523) - (253,523)
Total profit for
the period - - - - - 134,670 134,670
Total
comprehensive
loss - - - 706 (253,523) 134,670 (118,147)
Share-based
incentive plans - - 2,296 - - - 2,296
Balances at 30
June 2022
(unaudited) 36,353 441,632 88,294 (5,553) (725,180) 137,418 (27,036)
Balances at 1
January 2023 36,353 441,632 76,604 (13,607) (576,556) 61,900 26,326
Remeasurements
of
post-employment
benefit
obligations,
net - - - (3,262) - - (3,262)
Currency
translation
adjustments - - - - (180,101) - (180,101)
Total profit for
the period - - - - - 24,030 24,030
Total
comprehensive
loss - - - (3,262) (180,101) 24,030 (159,333)
Share-based
incentive plans - - 7,518 - - - 7,518
Balances at 30
June 2023
(unaudited) 36,353 441,632 84,122 (16,869) (756,657) 85,930 (125,489)
The accompanying notes form on pages 6 till 32 an integral part
of these condensed consolidated interim financial statements.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIODED 30 JUNE 2023 (unaudited)
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)
(unaudited) (unaudited)
30-Jun-23 30-Jun-22
Profit before income tax 242,362 214,758
Adjustments for:
Depreciation 27,116 27,110
Amortisation 60,449 57,008
Performance bonus accrual 15,408 10,850
Non-cash employee benefits expense - share-based payments 7,518 2,296
Interest income (35,926) (33,200)
Interest expense 120,925 81,970
Impairment of tangible and intangible assets - 4,145
Hyperinflation adjustments (73,475) (92,368)
Cash flows from discontinued operation 29,924 142,800
Changes in operating assets and liabilities
Changes in trade receivables (141,672) (37,498)
Changes in other receivables and assets 60,487 (94,857)
Changes in inventories (73,750) (179,745)
Changes in contract assets (2,406) (6,568)
Changes in contract liabilities 18,941 (10,367)
Changes in trade payables 246,743 281,106
Changes in other payables and liabilities (25,441) 65,663
Income taxes paid - (42,303)
Performance bonuses paid (28,582) (37,243)
Cash flows generated from operating activities 448,621 353,557
Purchases of property and equipment (21,101) (15,311)
Purchases of intangible assets (40,859) (38,985)
Disposals from sale of tangible and intangible assets 1,378 (4,133)
Cash flows from discontinued operation - (13,126)
Cash flows used in investing activities (60,582) (71,555)
Interest paid (74,373) (98,380)
Interest on leases paid (29,405) (25,780)
Interest received 18,135 18,423
Loans obtained 689,778 998,288
Loans paid (723,389) (665,492)
Payment of lease liabilities (28,671) (32,179)
Cash flows from discontinued operation (159,921) (179,032)
Cash flows (used in)/generated from financing activities (307,846) 15,848
Effect of currency translation differences (50,163) (134,177)
Net increase in cash and cash equivalents 30,030 163,673
Effects of inflation on cash and cash equivalents (89,545) (101,940)
Net increase in cash and cash equivalents (59,515) 61,733
Cash and cash equivalents at the beginning of the period 431,038 309,478
Cash and cash equivalents at the end of the period 371,523 371,211
The accompanying notes on pages 6 till 32 form an integral part
of these condensed consolidated interim financial statements.
NOTES TO THE ( UNAUDITED ) CONDENSED CONSOLIDATED INTERIM
FINANCIALSTATEMENTS AS AT 30 JUNE 2023
(Amounts expressed in thousands of Turkish Lira (TRY) unless
otherwise stated.)
NOTE 1 - GROUP'S ORGANIZATION AND NATURE OF ACTIVITIES
DP Eurasia N.V. (the "Company"), public limited company, having
its statutory seat in Amsterdam, the Netherlands, was incorporated
under the law of the Netherlands on 18 October 2016. The Company
has been incorporated by integrating shares of Fides Food Systems
Coöperatief U.A. and Vision Lovemark Coöperatief U.A. in Fidesrus
B.V. and Fides Food Systems B.V.. Acquisitions occurred on
18 October 2016 when the Company acquired Fidesrus and Fides
Foods and their subsidiaries and from this point forward
consolidated Group was formed. This was a transaction under common
control.
The Company's registered address is: Herikerbergweg 238,
Amsterdam, the Netherlands.
The Company and its subsidiaries (together referred as the
"Group") operate corporate-owned and franchise-owned stores in
Turkey and the Russian Federation, including providing technical
support, control and consultancy services to the franchisees.
As at 30 June 2023, the Group, including Coffy, hold franchise
operating and sub-franchising right in 884 stores (789 franchise
stores, 95 corporate-owned stores) (31 December 2022: 859
stores
(697 franchise stores, 162 corporate-owned stores).
Subsidiaries
The Company has a total of four fully owned subsidiaries. The
entities included in the scope of the condensed consolidated
financial interim information and nature of their business is as
follows:
30-Jun 30-Jun
2023 2022
Effective Effective Registered Nature of
Subsidiaries ownership (%) ownership (%) country business
Pizza Restaurantları A. . ("Domino's
Turkey") 100 100 Turkey Food delivery
Pizza Restaurants LLC ("Domino's Russia") 100 100 Russia Food delivery
Fidesrus B.V. ("Fidesrus") 100 100 the Netherlands Investment company
Fides Food Systems B.V. ("Fides Food") 100 100 the Netherlands Investment company
Pizza Restaurants LLC is established in the Russian Federation,
Domino's Russia is operating a pizza delivery network of company
and franchise-owned stores in Russian Federation. As of 30 June
2023, the Company only has franchise- owned stores. Domino's Russia
has a Master Franchise Agreement (the "MFA Russia") with Domino's
Pizza International for the pizza delivery network in Russia until
2030. Please refer to Note 21 and Note 22 for the details of the
discontinued operations.
Pizza Restaurantları A. . ("Domino's Turkey") is established in
Turkey. Domino's Turkey is operating a pizza delivery network of
corporate and franchised stores in Turkey and has corporate and
franchised coffee stores under the brand of Coffy. Domino's Turkey
is a food delivery company, which has a Master Franchise Agreement
(the "MFA Turkey") with Domino's Pizza International pizza delivery
network in Turkey until 2032. The Group expects the terms of the
MFAs to be extended.
Fides Food and Fidesrus are established in the Netherlands, Both
Fides Food Systems and Fidesrus are acting as investment
companies.
Significant changes in the current reporting period
The condensed interim consolidated financial statements have
been prepared assuming that the Group will continue as a going
concern and be able to realise its assets and discharge its
liabilities in the normal course of business. The Group recorded a
net gain from continued operations of TL 202,517 for the first half
of 2023. The Group's current liabilities exceed its current assets
by TL 386,524 as of 30 June 2023, The Group realized operating
profit of TL 151,517 for the first half of 2023.
NOTE 1 - GROUP'S ORGANIZATION AND NATURE OF ACTIVITIES
(Continued)
Fidesrus BV has applied to the court for OOO Pizza LLC's
bankruptcy on 12 September 2023. With the increasingly challenging
environment, DP Russia's parent holding company is now compelled to
take this step, which will bring about the termination of the
attempted sale process of DP Russia as a going concern and,
inevitably, the Group's presence in Russia.
The Group currently utilises internally generated cash flow and
bank borrowings in Turkey to meet its financing needs. The Group's
Turkish operations are well established and cash generative and act
as a source of liquidity for the wider Group. The Group has
additional borrowing capacity available from Turkish banks, which
it can draw down for liquidity needs. The Group enters into general
loan agreements with a range of Turkish banks. Based on the general
practice in Turkey, events of default, seizure of assets held by
the bank as securities for company loans, regular disclosure of
financials and change of control clauses and which are rolled over
at the end of the term. Nearly most of the Turkish bank borrowings
are short term. The banks make periodic revisions to determine the
risk limits they are willing to make available to the Group and
regularly assess the Group's financial position. The Group has not
received any call requests nor have the Turkish banks that lend to
it under these facilities declined any drawdown requests during the
period under review. As at 30 June 2023 the limits available under
these types of facilities amount to TRY517 million. The average
maturity period for bank loans is
1,2 years as of today. Additionally, The Company declare that
the external debt of the Russian segment is an amount of Ruble 520
million, which was guaranteed by, inter alia, the Group's Turkish
subsidiary, has been fully and finally settled by the Turkish
subsidiary out of existing cash resources on 21 August 2023.
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS
2.1 Basis of preparation
These condensed consolidated interim financial statements for
the six months period ended
30 June 2023 have been prepared in accordance with International
Accounting Standard 34 ("IAS 34") Interim Financial Reporting.
The interim report does not include all the notes of the type
normally included in the annual financial statements. Accordingly,
this report is to be read in conjunction with the annual report for
the year ended
31 December 2022. These condensed interim financial statements
were approved for issue on
19 September 2023. The financial statements have been reviewed,
not audited.
The Turkish economy has been designated as a hyperinflationary
economy in the first half of 2022 and, as a result, IAS 29
"Financial Reporting in Hyperinflationary Economies" ("IAS 29") has
become applicable to the Group's subsidiaries whose functional
currency is the Turkish Lira (Domino's Turkey), IAS 29 requires
companies to report the results of the operations in Turkey, as if
these had always been highly inflationary. Specifically, IAS 29
requires:
- Adjustment of historical cost of the non-monetary assets and
liabilities for the change in purchasing power caused by inflation
from the date of initial recognition to the end of the reporting
date,
- Non-adjustment of the monetary assets and liabilities, as they
are already expressed in the measuring unit current at the end of
the reporting period,
- Adjustment of the statement of comprehensive income for
inflation and its translation with the average index rate,
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS (Continued)
2.1 Basis of preparation (Continued)
- Recognition of gain or loss on net monetary position in profit
or loss in order to reflect the impact of inflation rate movement
on holding monetary assets and liabilities in local currency,
- There are no items measured at current cost,
- All items in the statement of cash flows are expressed in
terms of the measuring unit current at the end of the reporting
period,
- The restatement of financial statements in accordance with
this Standard may give rise to differences between the carrying
amount of individual assets and liabilities in the statement of
financial position and their tax bases. These differences are
accounted for in accordance with IAS 12 Income Taxes,
- Total cumulative effect of restating non-monetary items in
accordance with IAS 29 on opening balance sheet of 1 January 2021
are recognised in retained earnings.
IAS 29 requires that financial statements prepared in the
currency of a hyperinflationary economy be stated in terms of the
measuring unit current at the balance sheet date, and that
corresponding figures for previous periods be restated in the same
terms. The restatement of the comparative amounts was calculated by
means of conversion factors derived from the Turkish nationwide
consumer price index ("CPI") published by the State Institute of
Statistics ("SIS"), Indices and conversion factors used to restate
the comparative amounts until 30 June 2023 are given below:
Date Index Conversion Cumulative
factor three-year
inflation rate
30-Jun-23 1187.07 1.0000 178.3%
31-Dec-22 991.02 1.1978 123.5%
30-Jun-22 858.86 1.3821 93.7%
The financial statements of Group's subsidiaries, whose
functional currency is the currency of a hyperinflationary economy,
are adjusted for inflation and prior year comparatives have been
restated for hyperinflation in the consolidated financial
statements.
In the consolidated income statement for the six months period
on 30 June 2023, the Group recognized a total gain on net monetary
position of TRY 139,546 thousands (30 June 2022:TRY 102,682).
The Group used the conversion coefficient derived from the
consumer price index published by Turkish Statistics Institute
("TUIK") The conversion coefficient was 1187.07 and 991.02 on 30
June 2023 and 31 December 2022, respectively. One conversion
coefficient per period has been determined and calculated as
purchases and sales are relatively fairly divided over the
year.
Seasonality of operations
There is no significant seasonality effect on the Group's
revenue. According to financial year ended
31 December 2022, 51% of revenues accumulated in the first half
year, with 49 % accumulating in the second half.
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS (Continued)
2.1 Basis of preparation (Continued)
Consolidation of foreign subsidiaries
Financial statements of subsidiaries operating in foreign
countries are prepared in the currency of the primary economic
environment in which they operate. Assets and liabilities in
financial statements prepared according to the Group's accounting
policies are translated into the Group's presentation currency,
Turkish Liras ('TRY'), from the foreign exchange rate at the
statement of financial position date whereas income and expenses
are translated into TRY at the average foreign exchange rate.
Exchange differences arising from the translation are included in
the "currency translation differences" under shareholders'
equity.
The foreign currency exchange rates used in the translation of
the foreign operations within the scope of consolidation are as
follows:
30-Jun-23 31-Dec-22 30-Jun-22
Period Period Period Period Period Period
Currency End Average End Average End Average
Euros 28.154 21.4727 19.9349 17.36424 17.5221 16.1964
Russian Roubles 0.3034 0.2559 0.25948 0.249513 0.3209 0.2004
2.2 New and amended international financial reporting standards as adopted by European Union
New and amended standards adopted by the Group, which are
effective for the interim financial statements as at 30 June
2023
-- A number of narrow-scope amendments to IFRS 3, IAS 16, IAS 37
and some annual improvements on IFRS 1, IFRS 9, IAS 41 and IFRS 16;
effective from annual periods beginning on or after 1 January
2022,
-- Amendments to IAS 16, 'Property, plant and equipment'
prohibit a company from deducting from the cost of property, plant
and equipment amounts received from selling items produced while
the company is preparing the asset for its intended use, Instead, a
company will recognise such sales proceeds and related cost in
profit or loss,
-- Amendments to IAS 37, 'Provisions, contingent liabilities and
contingent assets' specify which costs a company includes when
assessing whether a contract will be loss-making,
Annual improvements make minor amendments to IFRS 1, 'First-time
Adoption of IFRS', IFRS 9, 'Financial Instruments', IAS 41,
'Agriculture' and the Illustrative Examples accompanying IFRS 16,
'Leases'.
These standards did not have any impact on the Group's
accounting policies and did not require retrospective
adjustments.
Standards, amendments, and interpretations that are issued but
not effective as of 30 June 2023:
-- Narrow scope amendments to IAS 1, Practice statement 2 and
IAS 8; effective from annual periods beginning on or after 1
January 2023. The amendments aim to improve accounting policy
disclosures and to help users of the financial statements to
distinguish between changes in accounting estimates and changes in
accounting policies,
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS (Continued)
2.2 New and amended international financial reporting standards
as adopted by European Union (Continued)
-- Amendment to IAS 12 - Deferred tax related to assets and
liabilities arising from a single transaction; effective from
annual periods beginning on or after 1 January 2023. These
amendments require companies to recognise deferred tax on
transactions that, on initial recognition give rise to equal
amounts of taxable and deductible temporary differences,
-- Amendment to IFRS 16 - Leases on sale and leaseback;
effective from annual periods beginning on or after 1 January 2024.
These amendments include requirements for sale and leaseback
transactions in IFRS 16 to explain how an entity accounts for a
sale and leaseback after the date of the transaction. Sale and
leaseback transactions where some or all the lease payments are
variable lease payments that do not depend on an index or rate are
most likely to be impacted,
-- Amendment to IAS 1 - Non current liabilities with covenants;
effective from annual periods beginning on or after 1 January 2024.
These amendments clarify how conditions with which an entity must
comply within twelve months after the reporting period affect the
classification of a liability,
-- Amendment to IAS 12 - International tax reform - pillar two
model rules; The deferred tax exemption and disclosure of the fact
that the exception has been applied, is effective immediately, The
other disclosure requirements are effective annual periods
beginning on or after 1 January 2023. These amendments give
companies temporary relief from accounting for deferred taxes
arising from the Organisation for Economic Co-operation and
Development's (OECD) international tax reform. The amendments also
introduce targeted disclosure requirements for affected
companies,
-- Amendments to IAS 7 and IFRS 7 on Supplier finance
arrangements; effective from annual periods beginning on or after 1
January 2024. These amendments require disclosures to enhance the
transparency of supplier finance arrangements and their effects on
a company's liabilities, cash flows and exposure to liquidity risk.
The disclosure requirements are the IASB's response to investors'
concerns that some companies' supplier finance arrangements are not
sufficiently visible, hindering investors' analysis,
-- IFRS S1, 'General requirements for disclosure of
sustainability-related financial information; effective from annual
periods beginning on or after 1 January 2024. This is subject to
endorsement of the standards by local jurisdictions. This standard
includes the core framework for the disclosure of material
information about sustainability-related risks and opportunities
across an entity's value chain,
-- IFRS S2, 'Climate-related disclosures'; effective from annual
periods beginning on or after 1 January 2024. This is subject to
endorsement of the standards by local jurisdictions. This is the
first thematic standard issued that sets out requirements for
entities to disclose information about climate-related risks and
opportunities.
NOTE 3 - SEGMENT REPORTING
The business operations of the Group are organised and managed
with respect to geographical positions of its operations. The
information regarding the business activities of the Group as at 30
June 2023 and 2022 comprise the performance and the management of
its Turkish and headquarter.
As of 31 December 2022, due to the intention to sales of Russian
operation, the Group has reclassified the results of Russian
operation as discontinued operations in the comprehensive income.
As of 30 June 2023, the Group has two business segments, determined
by management according to the information used for the evaluation
of performance and the allocation of resources: the Turkish and
other operations. Other operations are composed of corporate
expenses of Dutch companies. These segments are managed separately
because they are affected by economic conditions and geographical
positions in terms of risks and returns,
Due to initial application of IAS 29 and its impact on the
comparative periods, management information presented in segment
reporting have been restated in accordance with IAS 29
application.
The segment analysis for the periods ended 30 June 2023 and 2022
are as follows:
1 January - 30 June 2023 Turkey Other Total
Corporate revenue 346,476 - 346,476
Franchise revenue and royalty revenue
obtained from franchisees 1,119,365 - 1,119,365
Other revenue 115,475 - 115,475
Total revenue 1,581,316 - 1,581,316
- At a point in time 1,574,612 - 1,574,612
- Over time 6,704 - 6,704
Operating profit 183,443 (32,282) 151,161
Capital expenditures 63,439 - 63,439
Tangible and intangible disposals (1,378) - (1,378)
Depreciation and amortization expenses (87,564) - (87,564)
Adjusted EBITDA 284,901 (19,684) 265,217
1 January - 30 June 2023 Turkey Other Total
Borrowings
TRY 645,709 - 645,709
RUB - 242,985 242,985
645,709 242,985 888,694
Lease liabilities
TRY 241,987 - 241,987
241,987 - 241,987
Total 887,696 242,985 1,130,681
NOTE 3 - SEGMENT REPORTING (Continued)
1 January - 30 June 2022 Turkey Other Total
Corporate revenue 288,724 - 288,724
Franchise revenue and royalty revenue
obtained from franchisees 819,801 - 819,801
Other revenue 159,345 - 159,345
Total revenue 1,267,870 - 1,267,870
- At a point in time 1,216,624 - 1,216,624
- Over time 51,246 - 51,246
Operating profit 123,698 (16,303) 107,395
Capital expenditures 54,296 - 54,296
Tangible and intangible disposals (4,133) - (4,133)
Depreciation and amortization expenses (84,118) - (84,118)
Adjusted EBITDA 210,766 (13,406) 197,360
1 January - 31 December 2022 Turkey Other Total
Borrowings
TRY 850,269 - 850,269
RUB - 84,264 84,264
850,269 84,264 934,533
Lease liabilities
TRY 233,948 - 233,948
233,948 - 233,948
Total 1,084,217 84,264 1,168,481
EBITDA, adjusted EBITDA, net debt, adjusted net debt, adjusted
net income and non-recurring and non-trade income/expenses are not
defined by IFRS. The amounts provided with respect to operating
segments are measured in a manner consistent with that of the
financial statements. These items, determined by the principles
defined by Group management comprise income/expenses which are
assumed by the Group management, to not be part of the normal
course of business and are non-recurring items. These items, which
are not defined by IFRS, are disclosed by Group management
separately for a better understanding and measurement of the
sustainable performance of the Group.
NOTE 3 - SEGMENT REPORTING (Continued)
The reconciliation of adjusted EBITDA as of 30 June 2023 and
June 2022 is as follows:
Turkey 30-Jun-23 30-Jun-22
Adjusted EBITDA (*) 284,901 210,766
Non-recurring and non-trade (income)
/expenses per Group Management (*)
One off non-trading costs (**) 6,376 654
Share-based incentives 7,518 2,296
EBITDA 271,007 207,816
Depreciation and amortization (87,564) (84,118)
Operating profit 183,443 123,698
(*) EBITDA, adjusted EBITDA and non-recurring and non-trade
income/expenses are not defined by IFRS. These items are determined
by the principles defined by Group management and comprise
income/expenses which are assumed by Group management to not be
part of the normal course of business and are non-trading items.
These items, which are not defined by IFRS, are disclosed by Group
management separately for a better understanding and measurement of
the sustainable performance of the Group.
(**) The reason for the significant increase in one-off
non-trading costs is mainly related to consultancy expenses due to
the services related to the top management decisions.
Other 30-Jun-23 30-Jun-22
Adjusted EBITDA (*) (19,684) (13,406)
Non-recurring and non-trade (income)/expenses
per Group Management
One-off Expenses 12,598 2,897
EBITDA (32,282) (16,303)
Depreciation and amortization - -
Operating profit (32,282) (16,303)
(*) EBITDA, adjusted EBITDA and non-recurring and non-trade
income/expenses are not defined by IFRS. These items are determined
by the principles defined by the Group management and comprise
income/expenses which are assumed by Group management to not be
part of the normal course of business and are non-trading items.
These items, which are not defined by IFRS, are disclosed by Group
management separately for a better understanding and measurement of
the sustainable performance of the Group.
NOTE 3 - SEGMENT REPORTING (Continued)
The reconciliation of adjusted net income as of 30 June 2023 and
2022 is as follows:
2023 2022
Profit for the period as reported 202,517 146,655
Non-recurring and non-trade (income)/expenses
per Group Management
Share-based incentives 7,518 2,296
One-off expenses 18,974 3,551
Adjusted net profit for the period (*) 229,009 152,502
(*) Adjusted net income and non-recurring and non-trade
income/expenses are not defined by IFRS. Adjusted net income
excludes income and expenses which are not part of the normal
course of business and are non-recurring items. Management uses
this measurement basis to focus on core trading activities of the
business segments, and to assist it in evaluating underlying
business performance.
NOTE 4 - REVENUE AND COST OF SALES
30-Jun-23 30-Jun-22
Corporate revenue 346,476 288,724
Franchise revenue and royalty
revenue obtained from franchisees 1,119,365 819,801
Other revenue (*) 115,475 159,345
Revenue 1,581,316 1,267,870
Cost of sales (899,904) (822,269)
Gross profit 681,412 445,601
(*) Other revenue mainly includes handover income, IT income and
other income from franchisee.
NOTE 5 - EXPENSES BY NATURE
30-Jun-23 30-Jun-22
Employee benefit expenses (*) (227,622) (176,302)
Depreciation and amortization expenses (*) (87,564) (84,118)
(315,186) (260,420)
(*) These expenses are accounted in cost of sales, general
administration expenses and marketing expenses.
NOTE 6 - FOREIGN EXCHANGE GAINS, FINANCIAL INCOME AND
EXPENSES
Foreign exchange gains 30-Jun-23 30-Jun-22
Foreign exchange gains, net 59,507 59,683
59,507 59,683
Financial income 30-Jun-23 30-Jun-22
Interest income on lease liabilities 17,791 14,777
Interest income 18,135 18,423
35,926 33,200
Financial expense 30-Jun-23 30-Jun-22
Interest expense (91,520) (56,190)
Interest expense on lease liabilities (29,405) (25,780)
Other (22,853) (6,232)
(143,778) (88,202)
NOTE 7 - EARNINGS (LOSS) PER SHARE
The reconciliation of adjusted profit per share as of 30 June
2023 and 2022 is as follows:
30-Jun-23 30-Jun-22
Average number of shares existing during the period 146,591 145,372
Net (loss) / profit for the period attributable
to equity holders of the parent 24,030 134,670
Earnings per share 0.16 0.93
30-Jun-23 30-Jun-22
Average number of shares existing during the period 146,591 145,372
Net profit from continuing operations for the period attributable
to equity holders of the parent 202,517 146,655
Earnings per share from continued operations 1.38 1.01
30-Jun-23 30-Jun-22
Average number of shares existing during the period 146,591 145,372
Net losses from discontinued operations for the period attributable
to equity holders of the parent (178,487) (11,985)
Losses per share from discontinued operations (1.22) (0.08)
NOTE 7 - EARNINGS (LOSS) PER SHARE (Continued)
The reconciliation of adjusted earnings per share as of 30 June
2023 and 2022 is as follows:
30-Jun-23 30-Jun-22
Average number of shares existing
during the period 146,591 145,372
Net profit for the period attributable
to equity
holders of the parent 24,030 134,670
Non-recurring and non-trade expenses
per Group Management (*)
Share-based incentives 7,518 2,296
One-off expenses 18,974 3,551
Adjusted net gain for the period
attributable to equity holders
of the parent 50,522 140,517
Adjusted Earnings per share (*) 0.34 0.97
(*) Adjusted earnings per share non-recurring and non-trade
income/expenses are not defined by IFRS. The amounts provided with
respect to operating segments are measured in a manner consistent
with that of the financial statements. These items determined by
the principles defined by the Group management comprises
incomes/expenses which are assumed by the Group management that are
not part of the normal course of business and are non-recurring
items. These items which are not defined by IFRS are disclosed by
the Group management separately for a better understanding and
measurement of the sustainable performance of the Group.
There are no shares or options with a dilutive effect and hence
the basic and diluted earnings per share are the same.
The earning/ (loss) per share presented for the period ended 30
June 2023 is based on the issued share capital of DP Eurasia N.V.
as at 30 June 2023.
NOTE 8 - PROPERTY AND EQUIPMENT
01-Jan-23 Additions Disposals Transfers 30-Jun-23
Cost
Machinery and
equipment 67,859 616 - - 68,475
Motor vehicles 45,760 1,480 - - 47,240
Furniture and
fixtures 273,379 9,456 (5,836) - 276,999
Leasehold
improvements 257,827 9,270 (6,384) 462 261,175
Construction
in progress 738 1,758 - (462) 2,034
645,563 22,580 (12,220) - 655,923
Accumulated
depreciation
Machinery and
equipment (46,160) (2,484) - - (48,644)
Motor vehicles (26,271) (7,331) - - (33,602)
Furniture and
fixtures (195,475) (11,074) 4,746 - (201,803)
Leasehold
improvements (229,642) (6,226) 6,096 - (229,772)
(497,548) (27,115) 10,842 - (513,821)
For the period ended 30 June 2023, depreciation expense of TRY
18,252 has been charged in cost of sales and TRY 8,863 has been
charged in general administrative expenses.
NOTE 8 - PROPERTY AND EQUIPMENT (Continued)
Currency Effect of
translation Disposal of
01-Jan-22 Additions Disposals Transfers adjustments Subsidiaries 30-Jun-22
Cost
Machinery and equipment 172,899 7,137 (7,519) 3,946 92,716 (201,871) 67,308
Motor vehicles 70,137 - - 100 331 (934) 69,634
Furniture and fixtures 334,797 9,804 (50,961) - 6,588 (13,913) 286,315
Leasehold improvements 400,061 3,104 (14,060) (4,046) 63,646 (177,698) 271,007
Construction in progress 5,567 475 (377) - (2,327) (2,451) 887
983,461 20,520 (72,917) - 160,954 (396,867) 695,151
Accumulated depreciation
Machinery and equipment (102,939) (11,129) 4,399 - (55,671) 122,210 (43,130)
Motor vehicles (45,253) (6,871) - - (379) 823 (51,680)
Furniture and fixtures (249,959) (13,032) 48,265 - (4,507) 9,876 (209,357)
Leasehold improvements (349,465) (13,888) 12,044 - (40,922) 140,402 (251,829)
(747,616) (44,920) 64,708 - (101,479) 273,311 (555,996)
Net book value 235,845 139,155
For the period ended 30 June 2022, depreciation expense of TRY
27,402 has been charged in cost of sales and TRY 17,518 has been
charged in general administrative expenses.
NOTE 9 - INTANGIBLE ASSETS
Key money Computer software Franchise contracts Total
Cost
01-Jan-23 53,181 376,490 365,959 795,630
Additions - 40,859 - 40,859
Disposals - (47) - (47)
Currency Translation Disposal - - - -
Effect of disposal of subsidiaries - - - -
53,181 417,302 365,959 836,442
Accumulated depreciation
01-Jan-23 (48,882) (270,632) (365,959) (685,473)
Additions (2,062) (25,833) - (27,895)
Disposals - 47 - 47
Currency Translation Disposal - - - -
Effect of disposal of subsidiaries - - - -
(50,944) (296,418) (365,959) (713,321)
Net book value 2,237 120,884 - 123,121
For the period ended 30 June 2023, amortisation expense of TRY
18,777 has been charged in cost of sales and TRY 9,118 has been
charged in general administrative expenses.
Key money Computer software Franchise contracts Total
01-Jan-22 78,193 400,725 365,949
844,867
Additions 2,618 48,630 - 51,248
Disposals (7,940) (6,012) - (13,952)
Currency Translation 5,885 56,753 - 62,638
Effect of disposal of subsidiaries (13,229) (124,674) - (137,903)
65,527 375,422 365,949 806,898
Accumulated depreciation
01-Jan-22 (56,438) (287,555) (365,949) (709,942)
Additions (6,005) (27,628) - (33,633)
Disposals 6,462 5,768 - 12,230
Currency Translation (1,949) (28,110) - (30,059)
Effect of disposal of subsidiaries 4,282 61,424 - 65,706
(53,648) (276,101) (365,949) (695,698)
Net book value 11,879 99,321 - 111,200
For the period ended 30 June 2022, amortisation expense of TRY
20,517 has been charged in cost of sales and TRY13,116 has been
charged in general administrative expenses.
NOTE 10 - RIGHT OF USE ASSETS
Details of lease receivable as of 30 June 2023 and 31 December
2022 are as follows :
30-Jun-23 31-Dec-22
Lease receivables
Current 36,246 16,380
Non-current 105,197 114,112
141,443 130,492
Details of lease liabilities as of 30 June 2022 and 31 December
2021 are as follows :
30-Jun-23 31-Dec-22
Lease liabilities
Current 79,295 51,385
Non-current 162,692 182,563
241,987 233,948
The movement of right-of-use assets as of 30 June 2023 and 2022
are as follows:
2023 2022
Opening - 1 January 118,028 280,986
Depreciation (32,554) (76,469)
Current year additions 56,728 107,213
Current year disposals - (8,622)
Currency translation adjustments - 149,883
Closing - 30 June 142,202 452,992
For the period ended 30 June 2023, amortisation expense of TRY
19,851 has been charged in cost of sales and TRY 12,703 has been
charged in general administrative expenses (30 June 2022: TRY
63,852 and TRY 43,361 respectively).
NOTE 11 - GOODWILL
2023 2022
01-Jan 280,988 219,912
Currency translation impact - 61,076
30-Jun 280,988 280,988
Management has concluded that the recoverable amount of the
individual CGUs is higher than the carrying amount. The goodwill
relates to Russian CGU has been classified as asset held for sale
amounted TRY 16,613 as of 31 December 2022. Remaining balance is
only related to Turkish CGU. As of 30 June 2023, the goodwill
related to Russian CGU has been impaired amounted TRY16,613 from
asset held for sale.
NOTE 12 - CASH AND CASH EQUIVALENTS
The details of cash and cash equivalents as of 30 June 2023 and
31 December 2022 are as follows:
30-Jun-23 31-Dec-22
Cash 1,133 1,522
Banks 195,308 144,089
Bank Term bank deposits (less than three months) 146,265 204,830
Credit card receivables 28,817 80,597
371,523 431,038
Maturity term of credit card receivables are 30 days on average
(31 December 2022:30 days),
NOTE 13 - TRADE RECEIVABLES AND PAYABLES
a) Short-term trade receivables
30-Jun-23 31-Dec-22
Trade receivables 447,802 318,838
Post-dated cheques 45,220 38,524
493,022 357,362
Less: Doubtful trade receivables (1,820) (1,625)
Short-term trade receivables, net 491,202 355,737
The average collection period for trade receivables is between
30 and 60 days (2022: 30 and 60 days).
NOTE 13 - TRADE RECEIVABLES AND PAYABLES (Continued)
b) Long-term trade receivables
30-Jun-23 31-Dec-22
Trade receivables 7,494 5,855
Post-dated cheques (*) 18,314 13,746
25,808 19,601
(*) Post-dated cheques are the receivables from franchisees resulting from store openings.
c) Short-term trade and other payables
30-Jun-23 31-Dec-22
Trade payables 665,092 419,195
Other payables 5,471 4,625
670,563 423,820
The weighted average term of trade payables is less than three
months. Short-term payables with no stated interest are measured at
original invoice amount unless the effect of imputing interest is
significant (31 December 2022: less than three months).
NOTE 14 - TRANSACTIONS WITH RELATED PARTIES
Key management compensation
30-Jun-23 30-Jun-22
Short-term employee benefits 34,931 33,378
Share-based incentives 7,518 2,296
42,449 35,674
There are no loans, advance payments or guarantees given to key
management.
NOTE 15 - INVENTORIES
30-Jun-23 31-Dec-22
Raw materials 358,432 279,918
Other inventory 1,357 6,121
359,789 286,039
NOTE 16 - OTHER ASSETS AND LIABILITIES
Other current receivables and assets
30-Jun-23 31-Dec-22
Advance payments (1) 87,559 174,078
Lease receivables 36,246 16,380
Prepaid marketing expenses 21,894 8,786
Contract assets related to franchising contracts (2) 5,958 3,537
Prepaid taxes and VAT receivable 2,360 762
Prepaid insurance expenses 1,146 3,191
Other 9,207 3,638
Total 164,370 210,372
(1) As of 30 June 2023, advance payments are composed of
advances given to suppliers for the purchasing raw material and
other services.
(2) The Group incurs certain costs with Domino's Pizza
International related to the set-up of each franchise contract and
IT systems used for recording of franchise revenue.
Other non-current receivable and assets
30-Jun-23 31-Dec-22
Lease receivables 105,197 114,112
Prepaid marketing expenses 58,112 53,259
Contract assets related to franchising contracts(*) 24,345 24,360
Deposits given 6,298 5,516
Other 206 8
Total 194,158 197,255
(*) The Group incurs certain costs with Domino's Pizza
International related to the set-up of each franchise contract and
IT systems used for recording of franchise revenue.
Other current liabilities
30-Jun-23 31-Dec-22
Contract liabilities from franchising contracts 43,946 30,879
Taxes and funds payable 27,870 25,335
Payable to personnel 18,923 12,310
Advances received from franchisees 16,894 6,822
Performance bonuses 15,408 35,438
Unused vacation liabilities 12,448 10,176
Social security premiums payable 9,174 14,154
Other expense accruals 40,876 27,441
Total 185,539 162,555
Other non-current liabilities
30-Jun-23 31-Dec-22
Contract liabilities from franchising contracts 144,262 176,270
Unearned Revenue - 9,271
Long term provisions for employee benefits 12,047 16,401
Other 3,764 -
Total 160,073 201,942
NOTE 17 - FINANCIAL LIABILITIES
30-Jun-23 31-Dec-22
Short term bank borrowings 854,014 850,269
Short-term financial liabilities 854,014 850,269
Short-term portions of long-term borrowings - 19,343
Short-term portions of long-term leases 79,295 51,385
Current portion of long-term financial liabilities 79,295 70,728
Total short-term financial liabilities 933,309 920,997
Long-term bank borrowings 34,680 64,921
Long-term leases 162,692 182,563
Long-term financial liabilities 197,372 247,484
Total financial liabilities 1,130,681 1,168,481
30-Jun-23
Currency Maturity Interest rate (%) Short-term Long-term
TRY borrowings 2023 22.00% 645,709 -
RUB borrowings 2024 3mMosPrime+%5.30-9.70% 208,305 34,680
854,014 34,680
31-Dec-22
Currency Maturity Interest rate (%) Short-term Long-term
TRY borrowings Revolving 19.14 850,269 -
RUB borrowings 2024 3mMosPrime+%5.30-9.70 19,343 64,921
869,612 64,921
The loan agreement between Sberbank Moscow and Domino's Russia
is subject to covenant clauses whereby the Group, Domino's Turkey
and Domino's Russia are required to meet certain ratios. As of 31
December 2022, loans from Sberbank has already been classified as
short-term under 'Liabilities related to asset held for sale' line
in balance sheet. Sberbank amount of RUB 520 million of DP Russia,
which was guaranteed by, inter alia, the Group's Turkish
subsidiary, has been fully and finally settled by the Turkish
subsidiary out of existing cash resources, with the Group's gross
debt reducing accordingly and a resulting gross cash balance of TRY
162 million on the date of 21 August 2023 that is disclosed in note
21.
NOTE 17 - FINANCIAL LIABILITIES (Continued)
The redemption schedule of the borrowings as of 30 June 2023 and
31 December 2022 is as follows:
30-Jun-23 31-Dec-22
To be paid in one year 854,014 869,612
To be paid between one to two years 17,450 41,431
To be paid between two to three years 17,230 23,490
888,694 934,533
The details of the finance lease liabilities as of 30 June 2023
and 31 December 2022 are as follows:
30-Jun-23 31-Dec-22
Leases to be paid in one year 79,295 51,385
Leases to be paid between one to two years 70,119 74,529
Leases to be paid between two to three years 35,097 51,930
Leases to be paid between three years and more 57,476 56,104
241,987 233,948
The reconciliation of adjusted net debt as of 30 June 2023 and
31 December 2022 is as follows:
30-Jun-23 31-Dec-22
Short term bank borrowings(*) 854,014 850,269
Short-term portions of long-term borrowings - 19,343
Short-term portions of long-term leases 79,295 51,385
Long-term bank borrowings 34,680 64,921
Long-term leases 162,692 182,563
Total borrowings 1,130,681 1,168,481
Cash and cash equivalents (-) (371,523) (431,038)
Net debt 759,158 737,443
Non-recurring items per Group management
Long-term deposit for loan guarantee (141,443) (67,340)
Adjusted net debt (**) 617,715 670,103
(*) As of 31 December 2022, loans from Sberbank has been
classified as short-term under 'Liabilities for sale' line in
balance sheet. As of 30 June 2023, loans from Sberbank has been
classified as short term bank borrowings in the balance sheet.
(**) Net debt, adjusted net debt and non-recurring and non-trade
items are not defined by IFRS. Adjusted net debt includes cash
deposits used as a loan guarantee and cash paid, but not collected,
during the non-working day at the year end. Management uses these
numbers to focus on net debt to consider deposits not otherwise
considered cash and cash equivalents under IFRS.
NOTE 18 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES
a) Guarantees given to third parties as of 30 June 2023 and December 2022 are as follows;
30-Jun-23 31-Dec-22
Guarantee letters given 41,992 40,906
41,992 40,906
b) Guarantees received for trade receivables are as follows:
30-Jun-23 31-Dec-22
Guarantee notes received 136,168 107,418
Guarantee letters received 221,510 197,555
357,678 304,973
c) Bankruptcy proceedings under Russian Law
Fidesrus BV has applied to the court for OOO Pizza LLC's
bankruptcy on 12 September 2023 Bankruptcy proceedings in Russia
usually go through two stages that are supervision and receivership
proceedings. The aim of the supervision proceeding is to improve
the financial standing of the debtor. Receivership proceedings
begin when the supervision is completed and is obvious that the
company is unable to reinstate its financial standing. Receivership
usually ends with liquidation of the company. Usually, the duration
of this stage is approximately from one to three years. During
these proceedings, there are 3 potential key risks that are
subsidiary liability, claw back action and tax inspection which are
not necessarily relevant in this case.
Subsidiary liability: If the debtor's assets are insufficient to
satisfy all claims of the debtors as a result of actions (or
omissions) of the debtor's controlling persons, such persons shall
be liable for the debtor's obligations. The amount of such
liability is equal to the amount of all unsatisfied claims of the
creditors, i.e. the claims included into the registry of creditors'
claims, current liabilities claims and claims outside the registry
of creditors' claims.
Claw back action: Transactions made within three years prior to
the acceptance of the bankruptcy petition by the court may be
challenged if it is proven that the transaction (1) caused damage
to creditors, (2) unequal or (3) favored certain creditors.
Tax inspection: During the bankruptcy process, there will be
potential tax inspection for the statutory financials of OOO Pizza
LLC.
It is too early to have an reliable estimate of the financial
impact on the consolidated financial position and results of the
Company, as it depends on the position of the creditors in the case
and the bankruptcy receiver.
NOTE 19 - EQUITY
The shareholders and the shareholding structure of the Group at
30 June 2023 and 31 December 2022 are as follows:
30-Jun-23 31-Dec-22
Share (%) Amount Share (%) Amount
Jubilant FoodWorks Netherlands B.V. (*) 48.8 17,755 49,0 17,828
Public share 44.6 16,224 45,9 16,671
Vision International N.V.(**) 5.3 1,938 4,9 1,781
Other 1.2 436 0,2 73
36,353 36,353
(*) Fides Food Systems Coöperatief U.A. merged with Jubilant
FoodWorks Netherlands B.V.(acquiring entity)
(**) Vision Lovermark Coöperatief U.A. merged with Vision
International N.V. (acquiring entity).
As of 30 June 2023, the Group's shares are issued and fully paid
for.
As of 30 June 2023, the Group's 146,590,620 (31 December 2022:
145,372,414) shares are issued and fully paid for.
Share premium
Share premium represents differences resulting from the
incorporation of Fides Food by Fides Food Systems Coöperatief U.A.
at a price exceeding the face value of those shares and differences
between the face value and the fair value of shares issued at the
IPO.
Ultimate controlling party
The ultimate controlling party of the Company is Jubilant
Foodworks Limited. There is no individual ultimately controlling
the Group.
NOTE 20 - INCOME TAX
The Group is subject to taxation in accordance with the tax
regulations and the legislation effective in the countries in which
the Group companies operate. Therefore, provision for taxes, as
reflected in the condensed consolidated financial information, has
been calculated on a separate-entity basis. On 30 June 2023, the
tax is 20 % for Turkey, and % 25.8 for the Netherlands.
Corporate tax liability for the year consists of the
following:
30-Jun-23 31-Dec-22
Corporate tax calculated 22,319 -
Prepaid taxes (-) (45,418) (54,400)
Tax liability (23,099) (54,400)
NOTE 20 - INCOME TAX (Continued)
Tax income and expenses included in the statement of
comprehensive income are as follows:
30-Jun-23 30-Jun-22
Current period corporate tax expense (22,319) (46,634)
Deferred tax (expense)/income (17,526) (21,469)
Tax expense (39,845) (68,103)
The breakdown of cumulative temporary differences and the
resulting deferred income tax assets/liabilities at 30 June 2023
and 31 December 2022 using statutory tax rates are as follows:
30-Jun-23 31-Dec-22
Deferred tax Deferred tax
Temporary differences assets/ (liabilities) Temporary differences assets/ (liabilities)
Contract liabilities
from franchising
contracts (28,569) 5,714 (27,884) 5,577
Right of use assets
and lease liability 41,084 (8,217) 21,064 (4,213)
Bonus accruals 505 (101) 505 (101)
Legal provisions (7,096) 1,419 (3,438) 688
Unused vacation
liabilities (12,448) 2,490 (8,495) 1,699
Provision for
employee termination
benefit (12,047) 2,409 (13,693) 2,739
Stock 29,397 (5,879) 13,070 (2,614)
Other 5,085 (1,017) (5,720) 3,758
Property, equipment,
and intangible
assets 44,146 (8,829) 12,612 (2,522)
Deferred income tax
assets, net (12,011) 5,010
NOTE 21 - SUBSEQUENT EVENT
Since the management has not concluded the negotiation with the
potential buyers positively, the Company announces the initiation
of steps by Fides Rus B.V. parent holding company of OOO Pizza LLC
to file for OOO Pizza LLC 's bankruptcy on 21 August 2023. Fidesrus
BV has applied to the court for OOO Pizza LLC's bankruptcy on 12
September 2023. This is preceded by the announcement on
28 December 2022, which confirmed that the Company was
evaluating its presence in Russia, the impact of sanctions and its
continuing ability to serve its customers in Russia. In this
connection, the Russian segment was classified as discontinued
operations within the Company's audited financial statements for
the year ended 31 December 2022. With the increasingly challenging
environment, DP Russia's immediate holding company is now compelled
to take this step, which will bring about the termination of the
attempted sale process of DP Russia as a going concern and,
inevitably, the Group's presence in Russia. A bankruptcy petition
of DP Russia is filed at 12 September 2023 in accordance with the
relevant statutory requirements in due course. It is too early to
have an exact estimate of the financial impact of a potential
insolvency of DP Russia on the consolidated financial position and
results of the Company. As the company applied for bankruptcy for
OOO Pizza LLC the related operations will not longer be presented
as held for sale in future financial statements. The accounting
impact will be reflected in future financial statements following
the progress of the process.
The Company can confirm that the external debt of the Russian
segment is an amount of RUB
520 million, which was guaranteed by, inter alia, the Group's
Turkish subsidiary, has been fully and finally settled on 21 August
2023 by the Turkish subsidiary out of existing cash resources, with
the Group's gross debt reducing accordingly and a resulting gross
cash balance of TRY 162 million (based on the actual but unaudited
cash position as at 18 August 2023).
NOTE 22 - ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS
The Group holds franchise operating and sub-franchising rights
in 142 stores in Russia (142 franchised stores, no corporate-owned
stores). In December 2022, the Board has decided to explore the
options to sell its Russian operations. Since there are still
potential buyers and the negotiation process is ongoing as of 30
June 2023, DP Russia operations are continued to be reported within
discontinued operations and its assets and liabilities are
recognised as assets held for sale and liabilities for sales. Refer
to
Note 21 "Subsequent Event", for subsequent events impacting the
selling process.
The following criterias have been met for a sale to be highly
probable:
-- The board has decided to sell the asset and liability of Russian operation,
-- An active programme to locate a buyer and complete the plan
has been initiated by the management. There are potential buyers,
and the management has started the negotiation with the potential
buyers and official offers have been obtained in 2022 and continued
during the first half of 2023,
-- The management has expected to be completed the sale
transaction within one year from the date of classification.
ASSETS
30-Jun-23 31-Dec-22
Trade receivables 2,256 6,844
Lease receivables - 3,363
Right-of-use assets (*) - 147,764
Property and equipment (**) - 77,864
Intangible assets (**) - 56,266
Goodwill (***) - 16,614
Deferred tax assets (***) - 13,357
Other non-current assets 3,454 7,755
Non-current assets 5,710 329,827
Cash and cash equivalents 1,487 4,478
Trade receivables 34,656 47,645
Lease receivables - 7,850
Inventories 13,141 20,343
Other current assets 24,502 25,257
Current assets 73,786 105,573
(*) Since all corporate owned stores have been transferred to
franchise stores as at 30 June 2023, all right of use assets amount
related the transferred stores have been fully impaired.
(**) Property, plant equipment and intangible balances have been fully impaired.
(***) Deferred tax assets and liabilities related to the
temporary differences and goodwill amount have been transferred to
income statement and fully impaired.
NOTE 22 - ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS (Continued)
LIABILITIES
30-Jun-23 31-Dec-22
Financial liabilities - 138,164
Lease liabilities 15,187 121,593
Deferred tax liability - 3,633
Other non-current liabilities 17,004 18,898
Non - current liabilities 32,191 282,288
LIABILITIES
Financial liabilities - 35,351
Lease liabilities 11,159 58,415
Trade payables 231,884 206,970
Provisions 2,179 955
Other current liabilities 79,971 80,819
Current liabilities 325,193 382,510
TOTAL LIABILITIES 357,384 664,798
TOTAL EQUITY (277,888) (229,398)
TOTAL LIABILITIES & EQUITY 79,496 435,400
INCOME OR LOSS
30-Jun-23 30-Jun-22
Revenue 280,325 342,160
Cost of sales (221,812) (274,022)
Gross Profit 58,513 68,138
General administrative expenses (65,959) (57,741)
Marketing and selling expenses (47,783) (66,305)
Other operating expense/(income), net (*) (102,769) 10,916
Operating profit (157,998) (44,992)
Financial income 1,198 83,197
Financial expense (15,597) (47,142)
Losses from income tax (172,397) (8,937)
Tax expense (6,090) (3,048)
Losses for the period (178,487) (11,985)
(*) Includes the impairment of right of use assets, property,
plant and equipment, intangible assets, goodwill, and deferred tax
assets and liabilities related to the temporary differences due to
transfer of all corporate-owned stores to franchise stores as of 30
June 2023.
NOTE 22 - ASSETS AND LIABILITIES HELD FOR SALE AND DISCONTINUED OPERATIONS (Continued)
After disposal of an asset or disposal group:
- the associated currency translation difference, including
amounts previously reported within equity, will be reclassified to
the income statement as part of the gain or loss on disposal. This
is estimated to be a TRY 732,759 million loss.
- inter-group balances are eliminated against discontinued operations
Amsterdam, 19 September 2023
Executive Directors
Aslan Saranga
Frederieke Slot
Non- Executive directors
Shyam Bhartia
Hari Bhartia
David Adams
Ahmet Ashabo lu (Chairman)
Burak Erta
Bijou Kurien
.....................
Review report
To: the board of directors of DP Eurasia N.V.
Introduction
We have reviewed the accompanying condensed consolidated interim
financial statements for the six-month period ended 30 June 2023 of
DP Eurasia N.V., Amsterdam, which comprises the condensed
consolidated statement of financial position as at 30 June 2023,
the condensed consolidated statement of comprehensive income, the
condensed consolidated statement of changes in equity, the
condensed consolidated statement of cash flows for the period then
ended and the notes to the condensed consolidated interim financial
statements. The board of directors is responsible for the
preparation and presentation of this condensed consolidated interim
financial information in accordance with IAS 34, 'Interim Financial
Reporting' as adopted by the European Union. Our responsibility is
to express a conclusion on this interim financial information based
on our review.
Scope
We conducted our review in accordance with Dutch law including
standard 2410, Review of Interim Financial Information Performed by
the Independent Auditor of the entity. A review of interim
financial information consists of making inquiries, primarily of
persons responsible for financial and accounting matters, and
applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance
with auditing standards and consequently does not enable us to
obtain assurance that we would become aware of all significant
matters that might be identified in an audit. Accordingly, we do
not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that
causes us to believe that the accompanying condensed consolidated
interim financial statements for the six-month period ended 30 June
2023 is not prepared, in all material respects, in accordance with
IAS 34, 'Interim Financial Reporting' as adopted by the European
Union.
Amsterdam, 19 September 2023
PricewaterhouseCoopers Accountants N.V.
Original version signed by B.A.A. Verhoeven RA
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END
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September 19, 2023 02:00 ET (06:00 GMT)
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