REG - DP Eurasia N.V - Interim Results
19/09/2023 07:00
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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
Group system sales (after IAS 29) ((3)) 2023 2022 Change Change
(pre-IAS 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 Parker +44 20 7466 5000
dp@buchanan.uk.com (mailto: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 (http://www.dpeurasia.com/) .
Please contact Buchanan on dp@buchanan.uk.com (mailto:dp@buchanan.uk.com)
to register your attendance.
Conference call: UK Toll: +44 (0) 20 3037 9299
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
INDEPENDENT AUDITOR'S REVIEW
REPORT.................................................................
32
(UNAUDITED) CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FOR THE
PERIOD ENDED 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
PERIOD ENDED
30-Jun-23
(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise
stated.)
Share capital Share premium Contribution from shareholders Remeasurement of post- employment benefit obligations Currency translation differences Retained earnings Total Equity
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 PERIOD ENDED 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.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. 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.Ş. ("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 factor Cumulative 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 Ashaboğlu (Chairman)
Burak Ertaş
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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