REG - DP Eurasia N.V - Interim Results
30/09/2022 07:00
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RNS Number : 2565B DP Eurasia N.V 30 September 2022
30 September 2022
DP Eurasia N.V.
("DP Eurasia" or the "Company", and together with its subsidiaries, the
"Group")
Interim Results for the Period Ended 30 June 2022 ((1))
Highlights ((2))
For the period ended
30 June
(pre - IAS 29)
2022 2021 Change
(in millions of TRY, unless otherwise indicated)
Number of stores 842 792 50
Group system sales ((3))
Turkey 1,201 756 58.9%
Russia 493 279 76.8%
Azerbaijan & Georgia 43 19 122%
COFFY 14 1.4 952%
Total 1,751 1,055 66%
For the period ended
30 June
(after IAS 29)
2022 2021 Change
(in millions of TRY, unless otherwise indicated)
Number of stores 842 792 50
Group system sales ((3))
Turkey 1,349 1,396 -3.4%
Russia 493 279 76.8%
Azerbaijan & Georgia 49 36 35.2%
COFFY 16 2.5 521%
Total 1,906 1,713 11.2%
For the period ended
30 June
(pre - IAS 29)
2022 2021 Change
(in millions of TRY, unless otherwise indicated)
System sales like-for-like growth
Group((10)) 38.0% 52.4%
Turkey 51.0% 64.9%
Russia (based on RUB) -2.6% 18.2%
Azerbaijan -0.6% 9.5%
Georgia 33.1% 59.2%
Revenue 1,137 658 72.8%
Turkey adjusted EBITDA((5)) 155 92 68.1%
Russia adjusted EBITDA((5)) 14 13 8.2%
Adjusted EBITDA((5)) 155 98 58.1%
Adjusted net income((6)) 73 35 109%
Adjusted net debt((7)) 1,085 762 42.4%
For the period ended
30 June
(after IAS 29)
2022 2021 Change
(in millions of TRY, unless otherwise indicated)
System sales like-for-like growth
Group((10)) -6.8% 35.4%
Turkey -8.4% 41.6%
Russia (based on RUB) -2.6% 18.2%
Azerbaijan -0.6% 9.5%
Georgia 33.1% 59.2%
(after IAS 29, reviewed)
Revenue ((1)) 1,259 1,045 20.5%
Turkey adjusted EBITDA((1), (5)) 152 139 9.9%
Russia adjusted EBITDA((1), (5)) 14 13 8.2%
Adjusted EBITDA((1), (5)) 153 145 5.6%
Adjusted net income((1), (6)) 95 58 63.4%
Adjusted net debt((1), (7)) 1,085 762 42.4%
Financial Highlights
· Adjusted for the hyperinflation in Turkey (in accordance with the
IAS 29 "Financial Reporting in Hyperinflationary Economies" standard), Group
revenue was up 20.5% and system sales were up 11.2%, reflecting healthy growth
at the Group level while set against very strong comparatives.
· The Group's LfL performance was -6.8%, but this includes the
positive impact of last year's VAT reduction of 7pp to 1% (which lasted until
the end of September 2021). Adjusting to exclude this would show a flat LfL
performance on 1H 2022 with low single digit growth in volumes.
· Adjusted EBITDA of TRY 153 million corresponds to 5.6% growth and
was achieved in a difficult cost environment as Turkish operations faced an
average 64% headline inflation compared to H1 2021.
· Adjusted net income was TRY 95 million (1H21: TRY 58 million),
corresponding to a 63.4% increase
· Liquidity position at Period-end: TRY 268 million cash and an
undrawn bank facility of TRY 157 million.
· Adjusted net debt was TRY 1,085 million as of 30 June 2022 (H1
2021: TRY 762 million)
Operational Highlights
· Online delivery system sales further increased to 82.9% (June 2021:
75.5%) as a share of delivery system sales ((7)), reflecting DP Eurasia's
robust positioning for the online ordering channel.
· Group online system sales ((8)) growth of 15.5%
o Turkish online system sales growth of 1%
o Russian online system sales growth of 77.5% (-6.8% based on RUB)
· 29 net store openings in Turkey, including COFFY and Azerbaijan
& Georgia, during the first half of the year
· 21 net Domino's Pizza store openings in Turkey maintains our
momentum and is on top of record level of openings in 2021.
· Having opened seven new stores in the first half of the year, COFFY
traded from 15 stores at period-end, 10 of which are franchised.
2022 Outlook
· The Group continues to trade in line with its formal guidance (as
set out below) for FY2022, which was reinstated by management in the trading
update of 21 July.
· Management anticipates that in this inflationary environment,
FY2022 adjusted EBITDA is likely to be above current market expectations but
remains mindful of operating in a volatile environment with the potential for
further macro-economic and geopolitical challenges.
· The strong store opening momentum in Turkey is anticipated to
continue in the second half, driven by robust franchisee demand.
· As previously announced, investment into the Group's Russian
operations remains limited with attention focused on optimising the existing
store network. Management continues to actively monitor the situation in the
region closely.
· COFFY represents an outstanding growth opportunity for the Group.
Thanks to the strong franchisee demand, store openings are anticipated to
continue at pace in the second half. The COFFY network has reached 20 stores
as of today's date.
· Guidance for store openings, LfL growth and capital expenditure for
FY 2022 is as follows:
Turkey Russia
LfL growth rate 55 - 65%* 0% (based on RUB)
Domino's Pizza net store openings 30 - 40 0
COFFY net store openings 20 - 30 -
Capital expenditure TRY 90 million* RUB 190 million
* excluding impact of IAS 29 accounting
Commenting on the results, Chief Executive Officer, Aslan Saranga said:
"On behalf of the Board, I am pleased to report solid earnings growth for the
first half of 2022 as we worked hard to combat the high levels of financial
volatility in the regions we operate. This performance was enabled by our
capabilities, experienced team, and culture. We have an innovative and
customer-centric mindset, helping us to grow in a healthy manner as we pursue
long term and sustainable profit. Before going into details, I would like to
note that our Turkish business performance is adjusted with hyper-inflation in
Turkey according to IAS 29 standards.
"Our like-for-like performance caught up with the rapid pace of inflation,
when adjusted for last year's VAT advantage, thanks to our strategic pricing
actions, sustained volume performance and everyday efficiency. Despite
unprecedented cost pressures, we increased adjusted EBITDA by 5.6% and
adjusted net income by 63.4% compared to the same period a year ago.
"We have effectively mitigated the inflation challenge with clear and targeted
action in three areas - strategic pricing and product innovation; continued
digital innovation; and operational efficiencies to enhance profitability. Our
product portfolio and innovation continue, and we recently introduced
Pizzetta, a new personal pizza that is offered at a very competitive price of
TRY19.99 (c. USD 1). We are also introducing 'snacks from the oven'
take-away range that will complete our suite value options. These new products
present a great choice for customers who are seeking affordable value amid an
inflationary environment.
"We remain committed to providing the best value for money proposition on the
market and to ensuring our franchisees remain profitable. As a result,
franchisee demand remained strong. We opened 29 net stores in Turkey during
the first half of the year, including COFFY and Azerbaijan & Georgia.
Domino's Pizza store count grew by 21 stores in Turkey year to date. Given our
strong pipeline, we remain confident that 2022 will be another solid year for
store growth.
"Our own brand, COFFY, has been performing extremely well. It is positioned to
provide Turkish consumers with a simple, value for money and convenient coffee
brand and, as a result, achieved robust volume and sales growth. Having
installed new store concepts to fit in with local circumstances, our COFFY
network reached 15 stores. Franchisee demand stands very strong, which is
likely to carry the total COFFY store count above 30 by the end of the year.
Hence, I personally believe that our growth potential at COFFY is very
promising.
"In Russia, we faced into a strong comparable period while operating in a
difficult geo-political and economic environment. As a result, we had a
negative 2.6% LfL by the end of first half. As previously announced, the Group
continues to limit investment into the territory and is focused on optimising
the store coverage in Russia. Please note that number of stores in Russia
stood at 171 as of September compared to 184 stores by the end of first half.
We continue to monitor the situation in the region closely while the safety
and welfare of all the Group's employees and customers remains our primary
priority.
"While, The Board is conscious of the ongoing uncertainty while current trends
suggest that our adjusted EBITDA((4)) for 2022 is likely to be above the
current market expectations."
Enquiries
DP Eurasia N.V.
İlknur Kocaer, CFA - Investor Relations Director +90 212 280 9636
Buchanan (Financial Communications)
Richard Oldworth / Toto Berger / Verity Parker +44 20 7466 5000
dp@buchanan.uk.com (mailto:dp@buchanan.uk.com)
A conference call will be held at 9.30am today for analysts and investors via
the following dial-in details:
Conference call: UK Toll: +44 3333 000 804
UK Toll Free: 0800 358 9473
Participant PIN code: 89109082#
URL for international dial in numbers:
https://events-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf
(https://events-ftp.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf)
DP Eurasia N.V.'s 2022 interim results presentation are available at
www.dpeurasia.com (http://www.dpeurasia.com) . A conference call replay will
be available on the website in due course.
Notes
((1)) Financial statements as at 30 June 2022 are subjected to limited review
and non-IFRS measures are not audited.
((2)) 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. Please refer to Note 3 in the Consolidated Financial statements for a
reconciliation of these items with IFRS.
((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.
Please refer to Note 3 in the Consolidated Financial statements for a
reconciliation of this item with IFRS.
((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.
((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.
((10)) Group like-for-like growth is a weighted average of the country
like-for-like growths based on store numbers as described in Note (2). This is
a non-IFRS measure and non-IFRS measures are not audited.
Notes to Editors
DP Eurasia N.V. is the exclusive master franchisee of the Domino's Pizza brand
in Turkey, Russia, 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 and
the third largest in Russia. The Group offers pizza delivery and takeaway/
eat-in facilities at its 827 stores (628 in Turkey, 184 in Russia, 10 in
Azerbaijan and 5 in Georgia as of 30 June 2022) and operates through its owned
corporate stores (22%) and franchised stores (78%). In addition to its pizza
delivery business, the Group also has its own coffee brand, COFFY, which
trades from 15 stores at period-end, 10 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. The Group has adapted the Domino's Pizza globally
proven business model to its local markets.
Performance Review
Store count As at 30 June
2022 2021
Corporate Franchised Total Corporate Franchised Total
Turkey (Domino's) 94 534 628 103 481 584
Russia 92 92 184 116 76 192
Azerbaijan - 10 10 - 9 9
Georgia - 5 5 - 4 4
COFFY 5 10 15 2 1 3
Total 191 651 842 220 572 792
DP Eurasia's store count grew by 50 stores year-on-year and by 25 since the
end of 2021. The Group increased its system sales by inflation-adjusted
11.2% year-on-year.
The Turkish operations' system sales, representing 71% of Group system sales,
contracted by 3.4% on inflation adjusted basis. Nonetheless, adjusted for last
year's VAT reduction of 7pp to 1% (which lasted until end of July), system
sales growth would be around 4%. On similar basis, like-for-like growth in
Turkey would be flattish in 1H2022. The Group experienced robust franchisee
interest in Turkey resulting in a strong store pipeline, laying solid
foundations for future growth. Domino's Pizza store count in Turkey increased
by 44 over the last twelve months and 21 since the end of 2021.
COFFY has demonstrated very strong sales performance and now represents an
outstanding growth opportunity for the Group. Having opened seven new stores
in the first half of the year (and 12 stores year-on-year), COFFY traded from
15 stores at period-end, 10 of which are franchised. Thanks to the strong
franchisee demand, store openings continue at full speed.
The Russian operations' system sales, representing 26% of Group system sales,
increased by 76.8% (-7% based on RUB). The Group reported -2.6%
like-for-like growth in Russia during the period. In Russia, we faced into a
strong comparable period while operating in a difficult geo-political and
economic environment. As previously announced, the Group continues to limit
investment into the territory and is focused on optimising the existing store
coverage in Russia. Number of stores stood at 171 by the end of September
compared to 184 stores by the end of first half of the year.
Delivery Channel Mix and Online like-for-like growth
The following table shows the Group's delivery system sales, analysed by
ordering channel and by the Group's two largest countries in which it
operates, as a percentage of delivery system sales:
For the period ended 30 June
2022 2021
Turkey Russia Total Turkey Russia Total
Store 18.3% 6.5% 16.8% 25.6% 7.7% 24.2%
Online Group's online platform 25.1% 72.2% 37.1% 25.9% 69.5% 32.2%
Aggregator 56.1% 21.3% 45.8% 48.1% 22.9% 43.3%
Total online 81.2% 93.5% 82.9% 74.0% 92.3% 75.5%
Call centre 0.5% - 0.4% 0.4% - 0.3%
Total 100% 100% 100% 100% 100% 100%
The following table shows the Group's online like-for-like growth((10)),
analysed by the Group's two largest countries in which it operates:
For the period ended
30 June
2022 2021
Online system sales like-for-like growth((9))
Group((10)) -3.0% 56.9%
Turkey -3.2% 70.1%
Russia (based on RUB) -2.5% 19.2%
Online delivery system sales as a share of delivery system sales reached 82.9%
for the period, which represents a 7.3 percentage point increase on a
year-on-year basis. The share of online sales in the Turkish delivery system
reached 81.2%. This corresponded to more than seven percentage point increase
over the last twelve months. This performance was aided also by an increase in
volumes through the aggregators. The online system sales share in Russia
increased to 93.5% delivering around one and a half percentage points of
increase.
Financial Review
For the period ended
30 June
2022 2021 Change
(in millions of TRY)
Revenue 1,259 1045 20.5%
Cost of sales (869) (682) 27.4%
Gross Profit 390 363 7.5%
General administrative expenses (190) (135) 40.3%
Marketing and selling expenses (191) (178) 7.5%
Other operating expenses, net 18 (7) n.m.
Operating profit 28 43 -34.9%
Foreign exchange gains/(losses) 124 52 138.2%
Financial income 20 25 -19.0%
Financial expense (107) (65) 63.9%
Monetary profit / (loss) 74 24 215.1%
Profit/(Loss) before income tax 140 79 77%
Tax expense (52) (37) 42.9%
Profit/(Loss) after tax 88 42 107.5%
Turkey adjusted EBITDA((4)) 152 139 9.9%
Russia adjusted EBITDA((4)) 14 13 8.2%
Adjusted EBITDA((4)) 153 145 5.6%
Adjusted net income((5)) 95 58 63.4%
Adjusted net debt((6)) 1,085 762 42.4%
Revenue
Group revenue grew by 20.5% to TRY 1,259 million on inflation adjusted
basis. Turkey segment revenue grew by 9.0% to TRY 917 million, while Russia
segment revenue grew by 67.7% to reach TRY 342 million.
Adjusted EBITDA
The Group's adjusted EBITDA grew by 5.6% to TRY 153 million. Adjusted EBITDA
for the Turkish segment, which includes the Azerbaijani and Georgian
businesses along with COFFY, was TRY 152 million, a year-on-year increase of
9.9%, and adjusted EBITDA for the Russian segment was TRY 14 million.
For the period ended 30 June 2022, the Group's adjusted EBITDA margin as a
percentage of revenues was 12.1% compared to 13.9% over the same period in
2021. Unprecedented increases in food costs across the board and higher
personnel expenses were the main drivers for the decrease. The Russian segment
margin declined to 4.1% from 6.3% due to relatively weak operating leverage.
Adjusted EBITDA margin as a percentage of revenues for the Turkish segment
(including Azerbaijan, Georgia and COFFY business) recorded a small increase
to 16.6% from 16.5% mainly due to the strong sales performance creating
operating leverage through the system despite the above-mentioned cost
pressure. The Group took the advantage of its robust purchasing power and also
built-up additional inventory during the period to combat with elevated food
costs. The latter action was also the main reason behind the higher net debt
position.
Adjusted Net Income
For the period ended 30 June 2022, adjusted net income was TRY 95 million.
The growth in revenue and adjusted EBITDA as well as the foreign exchange
gains due to the devaluation of the TRY against the RUB were the main reasons
for the return to profitability. Following the hyper-inflation accounting, the
Group also posted higher monetary gain compared to last year's adjustment.
While the Group's bank facilities are TRY and RUB denominated, the Group
recorded a foreign exchange gain of TRY 124 million primarily due to the
devaluation of the TRY against the RUB versus a gain of TRY 52 million in the
same period of the last year.
Capital expenditure and Cash conversion
The Group incurred TRY 57 million of capital expenditure in the period ended
30 June 2022. The Turkish segment capital expenditure was TRY 38 million and
the Russian segment capital expenditures amounted to TRY 19 million (c. RUB 95
million).
Cash conversion, defined as (adjusted EBITDA [excluding IFRS 16 impact] -
capital expenditure) / (adjusted EBITDA [excluding IFRS 16 impact]) for the
period stayed the same 43% (H1 2021: 43%) for the Group. On the other hand,
the Turkish segment improved its cash conversion to 71% (H1 2021: 55%) because
of its improved adjusted EBITDA and prudent capital expenditure management.
The Russian segment had negative cash conversion during the period.
Adjusted net debt and leverage
The Group's adjusted net debt as of 30 June 2022 was TRY 1,085 million,
representing an increase of 42.4% from 30 June 2021. The Group's bank
borrowings continue to be denominated in its operational currencies of TRY and
RUB. As of 30 June 2022, 64% of the Group's bank borrowings were denominated
in TRY, while 36% is denominated in RUB. This was aligned with the revenue
composition as 73% of Group revenues were denominated in TRY and rest in RUB.
The Group's leverage ratio (defined as adjusted net debt/adjusted EBITDA for
the last 12 months) increased to 3.8x as of 30 June 2022 (after IAS 29) vs.
3.0x at the end of 2021 (pre-IAS 29) due to the devaluation of the TRY against
the RUB. FX-neutral leverage ratio stands at 2.3x as of 30 June 2022 (after
IAS 29).
In an increasing rate environment, 89% of Group's bank borrowings had fixed
rate whereas average maturity stood at 2.6 years.
The Group had TRY 268 million of cash and access to an additional banking
facility of TRY 157 million.
The Group's sufficient liquidity position enables it to pre-pay its bank
borrowings in Russia, despite the recent devaluation of TRY, if required. The
Group obtained a waiver (related with net debt/EBITDA ratio) from Sberbank
with respect to its covenants for all four quarters of 2022 and is in
negotiations to reset the covenants or repay the remaining loan. The principal
outstanding amount under the Sberbank loan currently amounts to RUB 0.7
billion, of which RUB 0.02 billion is supported by a cash collateral deposit.
Board compliance statement
The Board of DP Eurasia N.V. declares that, to the best of their knowledge,
the attached condensed combined and consolidated financial statements give a
true and fair view of the assets, liabilities, financial position and the
result of DP Eurasia N.V. and its subsidiaries included in the attached
condensed combined and consolidated financial statements and the interim
report includes a fair review of the information required pursuant to section
5:25d, subsections 8 and 9 of the Dutch Financial Markets Supervision Act (Wet
op het financieel toezicht).
Amsterdam, 28 September 2022
The Directors of DP Eurasia N.V. as at the date of this announcement are as
set out below:
Peter Williams*
Aslan Saranga, Chief Executive Officer
Frederieke Slot, Company Secretary
Shyam S. Bhartia*
Hari S. Bhartia*
David Adams*
Burak Ertas*
Ahmet Ashaboglu*
* Non-Executive Directors
Auditor's Involvement
This Interim Report for the six months ended 30 June 2022, and the attached
condensed consolidated financial statements included herein have been reviewed
but not audited by an external auditor.
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.
Appendices
Exchange Rates
For the period ended 30 June
2022 2021
Currency Period End Period Average Period End Period Average
EUR/TRY 17.522 16.196 10.365 9.485
RUB/TRY 0.321 0.200 0.119 0.105
EUR/RUB 53.858 83.520 86.203 89.547
Delivery - Take away / Eat in mix
For the period ended 30 June
(unaudited)
2022 2021
Turkey Russia Total Turkey Russia Total
Delivery 75.7% 75.9% 75.4% 83.2% 77.2% 82.0%
Take away / Eat in 24.3% 24.1% 24.6% 16.8% 22.8% 18.0%
Total((2)) 100% 100% 100% 100% 100% 100%
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED
INTERIM FINANCIAL STATEMENTS
AS AT 30 JUNE 2022
Unaudited
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
PERIOD ENDED 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
Notes (unaudited) (unaudited)
30 June 2022 30 June 2021
INCOME OR LOSS
Revenue 4 1,259,480 1,045,326
Cost of sales 4 (868,944) (682,092)
GROSS PROFIT 390,536 363,234
General administrative expenses (189,992) (135,451)
Marketing and selling expenses (190,818) (177,547)
Other operating income, net 18,452 (6,923)
OPERATING PROFIT 28,178 43,313
Foreign exchange gains 6 123,944 52,035
Financial income 6 20,288 25,061
Financial expense 6 (106,779) (65,166)
Monetary Gain 74,292 23,579
PROFIT BEFORE INCOME TAX 139,923 78,822
Tax expense (52,321) (36,603)
Income tax expense 20 (33,739) (26,660)
Deferred tax expense 20 (18,582) (9,943)
PROFIT FOR THE PERIOD 87,602 42,219
OTHER COMPREHENSIVE EXPENSE (182,936) (35,356)
Items that will not be reclassified
to profit or loss
- Remeasurements of post-employment 638 165
benefit obligations, net of tax (147) (41)
Items that may be reclassified
to profit or loss
- Currency translation differences (183,427) (35,480)
TOTAL COMPREHENSIVE (LOSS)/GAIN (95,334) 6,863
Profit per share 7 0.60 0.29
The accompanying notes on pages 6 till 32 form an integral part of these
condensed consolidated interim financial statements.
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE
2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
ASSETS Notes (unaudited) (unaudited)
30 June 2022 31 December 2021
Trade receivables 13 12,633 18,630
Lease receivables 10 84,119 95,773
Right-of-use assets 10 315,266 195,556
Property and equipment 8 218,270 193,895
Intangible assets 9 152,655 107,171
Goodwill 11 234,108 219,912
Deferred tax assets 20 46,182 27,529
Other non-current assets 16 79,480 63,691
Non-current assets 1,142,713 922,157
Cash and cash equivalents 12 268,576 223,912
Trade receivables 13 253,164 220,037
Lease receivables 10 29,566 28,787
Inventories 15 326,928 196,880
Other current assets 16 210,162 152,569
Current assets 1,088,396 822,185
TOTAL ASSETS 2,231,109 1,744,342
The accompanying notes form on pages 6 till 32 an integral part of these
condensed consolidated interim financial statements.
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 30 JUNE
2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
LIABILITIES Notes (unaudited) (unaudited)
30 June 2022 31 December 2021
EQUITY
Paid in share capital 19 36,353 36,353
Share premium 390,457 390,457
Contribution from shareholders 63,882 62,221
Other comprehensive income/expense
not to be reclassified to profit or loss
- Remeasurements of post-employment
benefit obligations (4,023) (4,514)
Other comprehensive income/expense
to be reclassified to profit or loss
- Currency translation differences (603,909) (420,482)
Retained earnings 89,590 1,988
Total equity (27,650) 66,023
Financial liabilities 17 273,078 221,372
Lease liabilities 10 345,714 257,663
Long term provisions for
employee benefits 16 6,733 5,965
Deferred tax liability 20 22,656 7,246
Other non-current liabilities 16 74,038 105,485
Non - current liabilities 722,219 597,731
LIABILITIES
Financial liabilities 17 625,863 458,544
Lease liabilities 10 114,814 83,944
Trade payables 13 565,393 362,009
Current income tax liabilities 21,335 18,203
Provisions 4,220 7,716
Other current liabilities 16 204,915 150,172
Current liabilities 1,536,540 1,080,588
TOTAL LIABILITIES 2,258,759 1,678,319
TOTAL LIABILITIES & EQUITY 2,231,109 1,744,342
The accompanying notes form on pages 6 till 32 an integral part of these
condensed consolidated interim financial statements.
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE
PERIOD ENDED
30 JUNE 2022
Share capital Share premium Contribution from shareholders Remeasurement of post-employment benefit obligations Currency translation differences Retained earnings Total Equity
Balances at 1 January 2021(unaudited) 36,353 390,457 57,665 (6,991) (288,959) 66,691 255,216
Remeasurements of post-employment benefit obligations, net - - - 124 - - 124
Currency translation adjustments - - - - (35,480) - (35,480)
Total profit for the period - - - - - 42,219 42,219
Total comprehensive loss - - - 124 (35,480) 42,219 6,863
Share-based incentive plans - - 2,482 - - - 2,482
Balances at 30 June 2021 (unaudited) 36,353 390,457 60,147 (6,867) (324,439) 108,910 264,561
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
Balances at 1 January 2022 (unaudited) 36,353 390,457 62,221 (4,514) (420,482) 1,988 66,023
Remeasurements of post-employment benefit obligations, net - - - 491 - - 491
Currency translation adjustments - - - - (183,427) - (183,427)
Total profit for the period - - - - - 87,602 87,602
Total comprehensive loss - - - 491 (183,427) 87,602 (95,334)
Share-based incentive plans - - 1,661 - - - 1,661
Balances at 30 June 2022 (unaudited) 36,353 390,457 63,882 (4,023) (603,909) 89,590 (27,650)
The accompanying notes form on pages 6 till 32 an integral part of these
condensed consolidated interim financial statements.
DP EURASIA N.V.
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 30 JUNE 2022 (unaudited)
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
(unaudited) (unaudited)
30 June 2022 30 June 2021
Profit before income tax 139,923 78,822
Adjustments for:
Depreciation 90,644 63,808
Amortisation 26,518 21,652
(Gain)/Loss on sale of property and equipment - 437
Performance bonus accrual 7,850 9,081
Non-cash employee benefits expense - share-based payments 1,661 2,482
Interest income (20,288) (25,061)
Interest expense 92,518 65,166
Impairment of tangible and intangible assets 2,999 7,005
Hyperinflation adjustments (139,496) 83,029
Changes in operating assets and liabilities
Changes in trade receivables (27,130) (31,212)
Changes in other receivables and assets (68,630) (57,310)
Changes in inventories (130,048) (54,018)
Changes in contract assets (4,752) (5,906)
Changes in contract liabilities (7,501) 6,694
Changes in trade payables 203,384 72,316
Changes in other payables and liabilities 47,508 35,703
Income taxes paid (30,607) (25,104)
Performance bonuses paid (26,946) (15,690)
Cash flows generated from operating activities 157,607 231,894
Purchases of property and equipment (16,287) (10,933)
Purchases of intangible assets (40,880) (28,736)
Disposals from sale of tangible and intangible assets 11,797 438
Cash flows used in investing activities (45,370) (39,231)
Interest paid (71,179) (57,833)
Interest on leases paid (18,652) (7,395)
Interest received 9,597 3,994
Loans obtained 722,274 488,445
Loans paid (481,492) (497,496)
Payment of lease liabilities (57,287) (44,905)
Cash flows (used in)/generated from financing activities 103,261 (115,189)
Effect of currency translation differences (97,079) (13,054)
Net increase in cash and cash equivalents 118,419 (64,420)
Effects of inflation on cash and cash equivalents (73,755) (124,310)
Cash and cash equivalents at the beginning of the period 223,912 202,640
Cash and cash equivalents at the end of the period 268,576 142,751
The accompanying notes on pages 6 till 32 form an integral part of these
condensed consolidated interim financial statement
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(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 2022, the Group, including Coffy, hold franchise operating and
sub-franchising right in 842 stores (651 franchise stores, 191 corporate-owned
stores) (31 December 2021: 817 stores (618 franchise stores, 199
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 June 30 June
2022 2021
Effective Effective
Subsidiaries ownership (%) ownership (%) Registered country Nature of business
Pizza Restaurantları A.Ş. ("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. 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.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 1 - GROUP'S ORGANIZATION AND NATURE OF ACTIVITIES (Continued)
Pizza Restaurantları A.Ş. ("Domino's Turkey") is established in Turkey.
Domino's Turkey is operating a pizza delivery network of corporate and
franchised stores in Turkey. 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 of TRY 87,602 for the first half of
2022. The Group's current liabilities exceed its current assets by TRY 448,144
as of 30 June 2022. The Group realized operating profit of TRY 28,178 for the
first half of 2022.
As previously announced, the Group continues to limit investment into the
territory and is focused on optimising the store coverage in Russia. The Group
continues to monitor the situation in the region closely while the safety and
welfare of all the Group's employees and customers remains our primary
priority
Due to continuing operating loss in Russia, financial covenants of Groups
Russia loan facility have not been met but the Group was able to obtain waiver
(related with net debt to EBITDA ratio) for all four quarters of 2022.
However, trading performance across the Group has continued its momentum
throughout the first half of the year, with net 29 stores including Coffy
stores of 7, being opened in Turkey, Russia, Azerbaijan and Georgia.
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 2022 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
2021. These condensed interim financial statements were approved for issue on
28 September 2022. The financial statements have been reviewed, not audited.
The accounting policies adopted in the preparation of the interim condensed
consolidated financial statements are consistent with those followed in the
preparation of the Group's annual financial statements for the year ended 31
December 2021, except for the application of the IAS 29 "Financial Reporting
in Hyperinflationary Economies" and the new or revised standards, amendments
and/or interpretations that are mandatory for the periods beginning on or
after 1 January 2022.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS
(Continued)
Application of IAS 29 - Hyperinflation in Turkey
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" has become applicable to the
Group's subsidiaries (Domino's Turkey), whose functional currency is the
Turkish Lira. IAS 29 requires companies to report the results of the
operations in Turkey, as if these were highly inflationary as of 1 January
2022. 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 income statement for inflation and its
translation with the average index rate;
− 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.
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 2022 are given below:
Cumulative three-year
Date
Index Conversion factor
inflation rate
30 June 2022
977.90
1,0000
136.4%
31 December 2021
686.95
1.4235
74.4%
31 December 2020
504.81
1.9372
54.2%
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 ended on 30 June 2022,
the Group recognized a total gain on net monetary position of TRY 74,292
thousands.
On the application of IAS 29, the Group used the conversion coefficient
derived from the consumer price index published by Turkish Statistics
Institute (TUIK). The conversion coefficient was 977.90 and 686.95 on 30 June
2022 and 31 December 2021 respectively.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS
(Continued)
Seasonality of operations
There is no significant seasonality effect on the Group's revenue. According
to financial year ended
31 December 2021, 46% of revenues accumulated in the first half year, with 54%
accumulating in the second half.
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 June 2022 31 December 2021 30 June 2021
Period Period Period Period Period Period
Currency End Average End Average End Average
Euros 17.5221 16.1964 14.6823 10.4408 10.3645 9.4860
Russian Roubles 0.3209 0.2004 0.1730 0.1196 0.1194 0.1053
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 2022
A number of new or amended standards became applicable for the current
reporting period:
- Amendment to IFRS 16, 'Leases' - Covid-19 related rent
concessions Extension of the Practical expedient
- Amendments to IFRS 7 and IFRS 16 Interest Rate Benchmark
Reform Phase 2
- Amendments to IAS 12.7 Deferred Tax related to Assets
and Liabilities arising from a Single Transaction
These standards did not have any impact on the Group's accounting policies and
did not require retrospective adjustments.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 2 - BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS
(Continued)
The new standards, amendments and interpretations, which are issued but not
effective for the interim financial statements as at 30 June 2022
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
- Amendments to IFRS 3, 'Business combinations'
- Amendments to IAS 16, 'Property, plant and equipment'
- Amendments to IAS 37, 'Provisions, contingent liabilities
and contingent assets'
- Amendments to IAS 1, Presentation of financial
statements'
- Narrow scope amendments to IAS 1, Practice statement 2
and IAS 8
- Amendment to IAS 12 - Deferred tax related to assets and
liabilities arising from a single transaction;
These standards are not expected to have any impact on the Group's accounting
policies.
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 of 30 June 2022 and 2021 comprise the
performance and the management of its Turkish and Russian operations and head
office.
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 Russian operations. Other operations are composed
of corporate expenses of Dutch companies. These segments are managed
separately because they are affected by the economic conditions and
geographical positions in terms of risks and returns.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 3 - SEGMENT REPORTING (Continued)
The segment analysis for the periods ended 30 June 2022 and 2021 are as
follows:
1 January - 30 June 2022 Turkey Russia Other Total
Corporate revenue 208,896 192,714 - 401,610
Franchise revenue and royalty revenue obtained from franchisees 593,135 130,720 - 723,855
Other revenue 115,290 18,725 - 134,015
Total revenue 917,321 342,159 - 1,259,480
- At a point in time 867,260 340,972 - 1,208,232
- Over time 50,061 1,187 - 51,248
Operating profit 89,557 (44,993) (16,386) 28,178
Capital expenditures 38,210 18,957 - 57,167
Tangible and intangible disposals (2,963) (5,833) - (8,796)
Depreciation and amortization expenses (60,801) (56,360) - (117,161)
Adjusted EBITDA 152,492 13,914 (13,406) 153,000
1 January - 30 June 2022 Turkey Russia Other Total
Borrowings
TRY 578,007 - - 578,007
RUB - 214,557 106,377 320,934
578,007 214,557 106,377 898,941
Lease liabilities
TRY 148,860 - - 148,860
RUB - 311,668 - 311,668
148,860 311,668 - 460,528
Total 726,864 526,225 106,380 1,359,469
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 3 - SEGMENT REPORTING (Continued)
1 January - 30 June 2021 Turkey Russia Other Total
Corporate revenue 247,161 136,831 - 383,992
Franchise revenue and royalty revenue obtained from franchisees 547,397 61,022 - 608,419
Other revenue 46,795 6,120 - 52,915
Total revenue 841,353 203,973 - 1,045,326
- At a point in time 833,978 202,786 - 1,036,764
- Over time 7,375 1,187 - 8,562
Operating profit 88,796 (38,739) (6,744) 43,313
Capital expenditures 56,843 6,038 - 62,881
Tangible and intangible disposals (1,229) (1,342) - (2,571)
Depreciation and amortization expenses (47,417) (38,042) - (85,459)
Adjusted EBITDA 138,694 12,854 (6,744) 144,804
1 January - 30 June 2021 Turkey Russia Other Total
Borrowings
TRY 468,595 - - 468,595
RUB - 148,827 62,494 211,321
468,595 148,827 62,494 679,916
Lease liabilities
TRY 202,376 - - 202,376
RUB - 139,231 - 139,231
202,376 139,231 - 341,607
670,971 288,058 62,494 1,021,523
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.
.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 3 - SEGMENT REPORTING (Continued)
The reconciliation of adjusted EBITD As as of 30 June 2022 and June 2021 is as
follows:
Turkey 30 June 2022 30 June 2021
Adjusted EBITDA ((*)) 152,492 138,694
Non-recurring and non-trade (income)/expenses per Group Management ((*))
One off non-trading costs ((**)) 473 -
Share-based incentives 1,661 2,482
EBITDA 150,358 136,212
Depreciation and amortization (60,801) (47,417)
Operating profit 89,557 88,795
Russia 30 June 2022 30 June 2021
Adjusted EBITDA ((*)) 13,914 12,854
Non-recurring and non-trade (income)/expenses per Group Management ((*))
One off non-trading costs ((**)) 2,547 13,551
EBITDA 11,367 (697)
Depreciation and amortization (56,360) (38,042)
Operating profit (44,993) (38,739)
(*) 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 impairment expenses of the tangible and intangible
assets and con sultancy expenses due to cost reduction program.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 3 - SEGMENT REPORTING (Continued)
Other 30 June 2022 30 June 2021
Adjusted EBITDA ((*)) (13,406) (6,744)
Non-recurring and non-trade (income)/expenses per Group Management
One off non-trading costs 2,980 -
EBITDA (16,386) (6,744)
Depreciation and amortization - -
Operating profit (16,386) (6,744)
(*) 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.
The reconciliation of adjusted net income as of 30 June 2022 and 2021 is as
follows:
2022 2021
Profit for the period as reported 87,602 42,219
Non-recurring and non-trade (income)/expenses per Group Management
Share-based incentives 1,661 2,482
One-off expenses 6,000 13,551
Adjusted net profit for the period 95,263 58,252
(*) 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.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 4 - REVENUE AND COST OF SALES
30 June 2022 30 June 2021
Corporate revenue 401,610 383,992
Franchise revenue and royalty
revenue obtained from franchisees 723,855 608,419
Other revenue 134,015 52,915
Revenue 1,259,480 1,045,326
Cost of sales (868,944) (682,092)
Gross profit 390,536 363,234
(*) Other revenue mainly includes handover income, IT income and
other income from franchisee.
NOTE 5 - EXPENSES BY NATURE
30 June 2022 30 June 2021
Employee benefit expenses (*) (218,337) (246,870)
Depreciation and amortization expenses (*) (117,161) (85,459)
(335,498) (332,329)
(*) These expenses are accounted in cost of sales, general
administration expenses and marketing expenses.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 6 - FOREIGN EXCHANGE GAINS, FINANCIAL INCOME AND EXPENSES
Foreign exchange gains 30 June 2022 30 June 2021
Foreign exchange gains, net 123,944 52,035
123,944 52,035
Financial income 30 June 2022 30 June 2021
Interest income on lease liabilities 10,691 10,416
Interest income 9,597 14,645
20,288 25,061
Financial expense 30 June 2022 30 June 2021
Interest expense (73,866) (53,203)
Interest expense on lease liabilities (18,652) (7,395)
Other (14,261) (4,568)
(106,779) (65,166)
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 7 - EARNINGS (LOSS) PER SHARE
The reconciliation of adjusted profit per share as of 30 June 2022 and 2021 is
as follows:
30 June 2022 30 June 2021
Average number of shares existing during the period 145,372 145,372
Net gain for the period attributable to
equity holders of the parent 87,602 42,219
Earnings per share 0.60 0.29
The reconciliation of adjusted earnings per share as of 30 June 2022 and 2021
is as follows:
30 June 2022 30 June 2021
Average number of shares existing during the period 145,372 145,372
Net profit for the period attributable to equity
holders of the parent 87,602 42,219
Non-recurring and non-trade expenses
per Group Management (*)
Share-based incentives 1,661 2,482
One-off expenses 6,000 13,551
Adjusted net gain for the period
attributable to equity holders of the parent 95,263 58,252
Adjusted Earnings per share (*) 0.66 0.40
((*)) 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 2022 is
based on the issued share capital of DP Eurasia N.V. as at 30 June 2022.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 8 - PROPERTY AND EQUIPMENT
Currency
translation
1 January 2022 Additions Disposals Transfers Impairment adjustments 30 June 2022
Cost
Machinery and equipment 154,628 6,548 (7,269) 3,946 - 92,716 250,569
Motor vehicles 50,884 - - 100 - 331 51,315
Furniture and fixtures 244,436 7,120 (37,079) - - 6,588 221,065
Leasehold improvements 323,698 2,246 (11,769) (4,046) - 63,646 373,775
Construction in progress 5,423 373 (375) - - (2,327) 3,094
779,069 16,287 (56,492) - - 160,954 899,818
Accumulated depreciation
Machinery and equipment (91,557) (10,346) 4,158 - - (55,671) (153,416)
Motor vehicles (32,863) (4,973) - - - (379) (38,215)
Furniture and fixtures (182,244) (9,608) 35,011 - - (4,507) (161,348)
Leasehold improvements (278,510) (12,497) 9,982 - - (47,544) (328,569)
(585,174) (37,424) 49,151 - - (108,101) (681,548)
Net book value 193,895 218,270
For the period ended 30 June 2022, depreciation expense of TRY 22,829 has been
charged in cost of sales and TRY 14,595 has been charged in general
administrative expenses.
DP EURASIA N.V.
NOTES TO THE (UNAUDITED) CONDENSED CONSOLIDATED INTERIM FINANCIALSTATEMENTS AS
AT 30 JUNE 2022
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
NOTE 8 - PROPERTY AND EQUIPMENT (Continued)
Currency
translation
1 January 2021 Additions Disposals Transfers Impairment adjustments 30 June 2021
Cost
Machinery and equipment 115,232 2,220 (1,801) 49 - 15,417 131,117
Motor vehicles 57,254 23,212 (3,844) 11 - 6,422 83,055
Furniture and fixtures 229,767 6,167 (3,538) 1,322 - 1,170 234,888
Leasehold improvements 257,777 2,074 (1,788) (598) (5,446) 12,776 264,795
Construction in progress 5,021 473 - (784) - 147 4,857
665,051 34,146 (10,971) - (5,446) 35,932 718,712
Accumulated depreciation
Machinery and equipment (60,453) (7,542) 896 - - (7,991) (75,090)
Motor vehicles (47,347) (6,939) 3,844 - - (5,170) (55,612)
Furniture and fixtures (163,866) (9,644) 2,310 - - (552) (171,752)
Leasehold improvements (206,354) (11,293) 1,350 - 3,525 (7,436) (220,208)
(478,020) (35,418) 8,400 - 3,525 (21,149) (522,662)
Net book value 187,031 196,050
For the period ended 30 June 2021, depreciation expense of TRY 24,439 has been
charged in cost of sales and TRY 10,979 has been charged in general
administrative expenses.
NOTE 9 - INTANGIBLE ASSETS
Currency
1 January translation 30 June
2022 Additions Disposals adjustments 2022
Cost
Key money 58,176 2,618 (6,037) 5,885 60,642
Computer software 307,282 38,262 (5,999) 56,753 396,298
Franchise contracts 264,769 - - - 264,769
630,227 40,880 (12,036) 62,638 721,709
Accumulated depreciation
Key money (41,428) (4,545) 4,825 (1,949) (43,097)
Computer software (216,859) (21,972) 5,756 (28,113) (261,188)
Franchise contracts (264,769) - - - (264,769)
(523,056) (26,517) 10,581 (30,062) (569,054)
Net book value 107,171 152,655
For the period ended 30 June 2022, amortisation expense of TRY16,176 has been
charged in cost of sales and TRY10,341 has been charged in general
administrative expenses.
Currency
1 January translation 30 June
2021 Additions Disposals Impairment adjustments 2021
Cost
Key money 80,280 481 - (2,280) 2,903 81,384
Computer software 228,456 28,255 (740) (589) 7,423 262,805
Franchise contracts 263,859 - - - - 263,859
572,595 28,736 (740) (2,869) 10,326 608,048
Accumulated depreciation
Key money (39,613) (5,666) - 737 (723) (45,265)
Computer software (167,391) (15,986) 740 437 (3,284) (185,484)
Franchise contracts (263,859) - - - - (263,859)
(470,863) (21,652) 740 1,174 (4,007) (494,608)
Net book value 101,732 113,440
For the period ended 30 June 2021, amortisation expense of TRY 14,939 has been
charged in cost of sales and TRY 6,713 has been charged in general
administrative expenses.
NOTE 10 - RIGHT OF USE ASSETS
Details of right-of-use assets as of 30 June 2022 and 31 December 2021 are as
follows:
30 June 2022 31 December 2021
Right-of-use assets
Properties and vehicles 315,266 195,556
315,266 195,556
Details of lease receivable as of 30 June 2022 and 31 December 2021 are as
follows:
30 June 2022 31 December 2021
Lease receivables
Current 29,566 28,787
Non-current 84,119 95,773
113,685 124,560
Details of lease liabilities as of 30 June 2022 and 31 December 2021 are as
follows:
30 June 2022 31 December 2021
Lease liabilities
Current 114,814 83,944
Non-current 345,714 257,663
460,528 341,607
The movement of right-of-use assets as of 30 June 2022 and 2021 are as
follows:
2022 2021
Opening - 1 January 195,556 162,655
Depreciation (53,220) (28,389)
Current year additions 74,616 22,326
Current year disposals (6,000) (14,199)
Currency translation adjustments 104,314 23,868
Closing - 30 June 315,266 166,261
For the period ended 30 June 2022, amortisation expense of TRY32,464 has been
charged in cost of sales and TRY20,756 has been charged in general
administrative expenses (30 June 2021: TRY19,718 and TRY8,671, respectively).
NOTE 11 - GOODWILL
30 June 2022 31 December 2021
1 January 219,912 191,600
Currency translation impact 14,196 28,312
30 June 234,108 219,912
These Goodwill relates to Turkish and Russian cash generating units at the
amounts TRY 203,293 and TRY 30,815 respectively (31 December 2021: TRY203,293
and TRY16,619 (RUB96,016) respectively).
NOTE 12 - CASH AND CASH EQUIVALENTS
The details of cash and cash equivalents as of 30 June 2022 and 31 December
2021 are as follows:
30 June 2022 31 December 2021
Cash 1,644 2,124
Banks 99,095 105,233
Bank Term bank deposits (less than three months) 153,002 103,918
Credit card receivables 14,835 12,637
268,576 223,912
Maturity term of credit card receivables are 30 days on average (31 December
2021: 30 days).
NOTE 13 - TRADE RECEIVABLES AND PAYABLES
a) Short-term trade receivables
30 June 2022 31 December 2021
Trade receivables 223,176 186,777
Post-dated cheques 29,988 33,260
Short-term trade receivables, net 253,164 220,037
The average collection period for trade receivables is between 30 and 60 days
(2021: 30 and 60 days).
b) Long-term trade receivables
30 June 2022 31 December 2021
Trade receivables 4,773 2,096
Post-dated cheques 7,860 16,534
12,633 18,630
(*) Post-dated cheques are the receivables from franchisees
resulting from store openings.
c) Short-term trade and other payables
30 June 2022 31 December 2021
Trade payables 544,686 354,912
Other payables 20,707 7,097
565,393 362,009
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.
NOTE 14 - TRANSACTIONS WITH RELATED PARTIES
Key management compensation
30 June 2022 30 June 2021
Short-term employee benefits 24,150 35,868
Share-based incentives 1,661 2,482
25,811 38,350
There are no loans, advance payments or guarantees given to key management.
NOTE 15 - INVENTORIES
30 June 2022 31 December 2021
Raw materials 322,895 193,721
Other inventory 4,033 3,159
326,928 196,880
NOTE 16 - OTHER ASSETS AND LIABILITIES
Other current receivables and assets 30 June 2022 31 December 2021
Advance payments ((1)) 158,452 102,754
Lease receivables 29,566 28,787
Prepaid taxes and VAT receivable 7,904 24
Prepaid marketing expenses 11,756 8,517
Prepaid insurance expenses 9,940 3,014
Deposits for loan guarantees ((2)) 5,589 35,527
Contract assets related to franchising contracts ((3)) 1,965 1,441
Other 14,556 1,292
Total 239,728 181,356
(1) As of 30 June 2022, advance payments are composed of advances
given to suppliers for the purchasing raw material and other services.
(2) The Group repaid a portion of its loans to Sberbank Moscow and
the TRY 5,589 (RUB 17 million) by using promisory note given as collateral by
Fidesrus
(3) 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.
NOTE 16 - OTHER ASSETS AND LIABILITIES (Continued)
Other non-current receivable and assets
30 June 2022 31 December 2021
Lease receivables 84,119 95,773
Prepaid marketing expenses 50,201 42,148
Contract assets related to franchising contracts(*) 10,263 6,035
Deposits given 19,016 15,508
Total 163,599 159,464
(*) 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 June 2022 31 December 2021
Performance bonuses 7,850 26,946
Unused vacation liabilities 23,229 13,807
Payable to personnel 18,928 14,725
Contract liabilities from franchising contracts 82,482 43,939
Volume rebate advances 3,058 3,424
Taxes and funds payable 27,971 13,819
Advances received from franchisees 3,910 6,314
Social security premiums payable 13,550 7,600
Other expense accruals 23,937 19,598
Total 204,915 150,172
Other non-current liabilities
30 June 2022 31 December 2021
Contract liabilities from franchising contracts 35,691 81,735
Unearned Revenue 31,390 19,119
Long term provisions for
employee benefits 6,733 5,965
Other 6,957 4,631
Total 80,771 111,450
NOTE 17 - FINANCIAL LIABILITIES
30 June 2022 31 December 2021
Short term bank borrowings 625,325 348,969
Short-term financial liabilities 625,325 348,969
Short-term portions of long-term borrowings 538 109,575
Short-term portions of long-term leases 114,814 83,944
Current portion of long-term financial liabilities 115,352 193,519
Total short-term financial liabilities 740,677 542,488
Long-term bank borrowings 273,078 221,372
Long-term leases 345,714 257,663
Long-term financial liabilities 618,792 479,035
Total financial liabilities 1,359,469 1,021,523
30 June 2022
Currency Maturity Interest rate (%) Short-term Long-term
TRY borrowings 2023 22.0% 578,007 -
RUB borrowings 2024 3mMosPrime+%2.95-9.70% 47,856 273,078
625,863 273,078
NOTE 17 - FINANCIAL LIABILITIES (Continued)
31 December 2021
Currency Maturity Interest rate (%) Short-term Long-term
TRY borrowings 2023 19.14% 411,280 57,315
RUB borrowings 2024 3mMosPrime+%2.95-9.70% 47,264 164,057
458,544 221,372
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. The financial indicator of:
• Domino's Russia, which requires the ratio of financial
debt to adjusted EBITDA for the relevant period should not be more than 3.0;
• Domino's Turkey, which requires the ratio of financial
debt to adjusted EBITDA for the relevant period should not be more than 2.5;
and
• the Group, which requires the ratio of financial debt to
adjusted EBITDA for the relevant period, should not be more than 3.5.
The loan agreement between Sberbank Moscow and Domino's Russia is subject to
covenant clauses whereby Group, Turkish and Russian Divisions are required to
meet certain ratios. As of 30 June 2022, Sberbank has waived the covenant
conditions for 2021 year end, as well as the first, second, third and fourth
quarters of 2022.
The redemption schedule of the borrowings as of 30 June 2022 and 31 December
2021 is as follows:
30 June 2022 31 December 2021
To be paid in one year 625,863 458,544
To be paid between one to two years 199,506 112,129
To be paid between two to three years 73,572 109,243
898,941 679,916
The details of the finance lease liabilities as of 30 June 2022 and 31
December 2021 are as follows:
30 June 2022 31 December 2021
Leases to be paid in one year 114,814 83,944
Leases to be paid between one to two years 127,601 83,948
Leases to be paid between two to three years 100,015 72,493
Leases to be paid between three years and more 118,098 101,222
460,528 341,607
NOTE 17 - FINANCIAL LIABILITIES (Continued)
The reconciliation of adjusted net debt as of 30 June 2022 and 31 December
2021 is as follows:
30 June 2022 31 December 2021
Short term bank borrowings 625,325 348,969
Short-term portions of long-term borrowings 538 109,575
Short-term portions of long-term leases 114,814 83,944
Long-term bank borrowings 273,078 221,372
Long-term leases 345,714 257,663
Total borrowings 1,359,469 1,021,523
Cash and cash equivalents (-) (268,576) (223,912)
Net debt 1,090,893 797,611
Non-recurring items
per Group management
Long-term deposit for loan guarantee (5,589) (35,527)
Adjusted net debt (*) 1,085,304 762,084
(*) 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 2022 and
December 2021 are as follows;
30 June 2022 31 December 2021
Guarantee letters given 44,388 67,543
44,388 67,543
b) Guarantees received for trade receivables are as follows:
30 June 2022 31 December 2021
Guarantee notes received 94,112 107,263
Guarantee letters received 64,788 104,677
158,900 211,940
c) Tax contingencies
The Russian transfer pricing legislation is generally aligned with the
international transfer pricing principles developed by the Organisation for
Economic Co‑operation and Development ("OECD") but has specific
characteristics. This legislation provides the possibility for tax authorities
to make transfer pricing adjustments and impose additional tax liabilities in
respect of controlled transactions (transactions with related parties and some
types of transactions with unrelated parties), provided that the transaction
price is not arm's length.
Tax liabilities arising from transactions between companies within the Group
are determined using actual transaction prices. It is possible, with the
evolution of the interpretation of the transfer pricing rules, that such
transfer prices could be challenged. The impact of any such challenge cannot
be reliably estimated; however, it may be significant to the financial
position and/or the overall operations of the Group.
The Group includes companies incorporated outside of Russia. The tax
liabilities of the Group are determined on the assumption that these companies
are not subject to Russian profits tax, because they do not have a permanent
establishment in Russia. This interpretation of relevant legislation may be
challenged but the impact of any such challenge cannot be reliably estimated
currently; however, it may be significant to the financial position and/or the
overall operations of the Group.
As Russian tax legislation does not provide definitive guidance in certain
areas, the Group adopts, from time to time, interpretations of such uncertain
areas that reduce the overall tax rate of the Group. While management
currently estimates that the tax positions and interpretations that it has
taken can probably be sustained, there is a possible risk that an outflow of
resources will be required should such tax positions and interpretations be
challenged by the tax authorities. The impact of any such challenge cannot be
reliably estimated; however, it may be significant to the financial position
and/or the overall operations of the Group.
NOTE 18 - COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES (Continued)
Management will vigorously defend the Group's positions and interpretations
that were applied in determining taxes recognised in these consolidated
financial statements if these are challenged by the authorities.
NOTE 19 - EQUITY
The shareholders and the shareholding structure of the Group at 30 June 2022
and 31 December 2021 are as follows:
30 June 2022 31 December 2021
Share (%) Amount Share (%) Amount
Jubilant FoodWorks Netherlands B.V. (*) 43.7 15,869 7.5 2,722
Fides Food Systems Coöperatief U.A.(*) - - 32.8 11,928
Public shares 50.6 18,412 54.6 19,849
Vision International N.V.(**) 5.6 2,027 4.9 1,781
Other 0.1 45 0.2 73
36,353 36,353
(*) Fides Food Systems Coöperatief UA merged with Jubilant
FoodWorks Netherlands B.V. (acquiring entity)
(**) Vision Lovermark Coöperatief UA merged with Vision International
N.V. (acquiring entity)
As of 30 June 2022, the Group's 145,372,414 shares are issued and fully paid
for.
The nominal value of each share is EUR0.12 (2021: EUR0.12). There is no
preference stock.
DP Eurasia's authorised share capital is EUR 60,000,000.
As of 30 June 2022, the Group's 145,372,414 (30 June 2021: 145,372,414) shares
are issued and fully paid for.
NOTE 19 - EQUITY (Continued)
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 2022, the tax is 23% for Turkey, %20 for Russia, and %25 for
the Netherlands.
Corporate tax liability for the year consists of the following:
30 June 2022 31 December 2021
Corporate tax calculated 33,739 63,231
Prepaid taxes (-) (12,404) (45,028)
Tax liability 21,335 18,203
Tax income and expenses included in the statement of comprehensive income are
as follows:
30 June 2022 30 June 2021
Current period corporate tax expense (33,739) (26,660)
Deferred tax (expense)/income (18,582) (9,943)
Tax expense (52,321) (36,603)
NOTE 20 - INCOME TAX (Continued)
The breakdown of cumulative temporary differences and the resulting deferred
income tax assets/liabilities at 30 June 2022 and 31 December 2021 using
statutory tax rates are as follows:
30 June 2022 31 December 2021
Deferred tax Deferred tax
Temporary assets/ Temporary assets/
differences (liabilities) differences (liabilities)
Carry forward tax losses (*) 83,880 16,776 72,427 14,485
Contract liabilities from franchising contracts 97,326 21,792 152,691 30,538
Right of use assets and lease liability 24,006 6,584 7,561 1,512
Bonus accruals
Legal provisions 4,590 1,018 8,204 1,641
Unused vacation liabilities 9,286 2,136 8,267 1,653
Provision for employee termination benefit 6,733 1,549 5,965 1,490
Stok (49,258) (11,329) (26,527) (5,305)
Other 71,178 16,371 (13,686) (2,735)
Property, equipment and intangible assets (156,866) (31,371) (114,986) (22,996)
Deferred income tax assets, net 23,526 20,283
(*) Consists of carry forward losses of Domino's Russia.
Domino's Russia has not recognised any additional tax assets on carry forward
losses in 2021 and first half of 2022, the change is the result of the
currency translation differences between Russian Roubles and Turkish Lira.
NOTE 21 - SUBSEQUENT EVENT
As of 30 September 2022, Jubilant Foodworks Netherlands B.V has aggregating to
65,177,365 ordinary shares in total (which is equal to 44,76% of the Company's
outstanding issued share capital).
On 8 September 2022, the Company shall allot a total of 250,722 new ordinary
shares of €0.12 each ("New Shares") in connection with an exercise of
options awarded to senior employees which has now crystallised under the LTIP.
Application has been made for the New Shares to be admitted to trading on the
premium listing segment of the Official List of the FCA and to trading on the
London Stock Exchange ("Admission") and it is expected that Admission will
take place on 8 September 2022. Following Admission, the Company will have
145,623,136 ordinary shares in issue. The Company does not hold any ordinary
shares in treasury therefore the total number of ordinary shares in the
Company with voting rights is 145,623,136.
Amsterdam, 28 September 2022
The Directors of DP Eurasia N.V. as at the date of this announcement are as
set out below:
Peter Williams*
Aslan Saranga, Chief Executive Officer
Frederieke Slot, Company Secretary
Shyam S. Bhartia*
Hari S. Bhartia*
David Adams*
Burak Ertas*
Ahmet Ashaboglu*
* Non-Executive Directors
……………
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 2022 of DP Eurasia N.V.,
Amsterdam, which comprises the condensed consolidated statement of the
financial position as at 30 June 2022, 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) interim financial statements 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
information for the six-month period ended 30 June 2022 is not prepared, in
all material respects, in accordance with IAS 34, 'Interim Financial
Reporting' as adopted by the European Union.
Amsterdam, 28 September 2022
PricewaterhouseCoopers Accountants N.V.
B.A.A. Verhoeven RA
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