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RNS Number : 9090K
DP Eurasia N.V
07 September 2021
 

 

 

 

For Immediate Release

7 September 2021

 

DP Eurasia N.V.

("DP Eurasia" or the "Company", and together with its subsidiaries, the "Group")

Interim Results for the Period Ended 30 June 2021

Full year guidance for Turkey like-for-like raised from 21-25% to 35-40% and adjusted EBITDA expected to be slightly ahead of current market expectations.

Highlights

 

For the period ended

30 June

 

 

2021

2020

Change

 

 

(in millions of TRY, unless otherwise indicated)

 

 

 

Number of stores

789

754

35

 

 

 

 

 

 

Group system sales (1)

 

 

 

 

Turkey

754.4

438.9

71.9%

 

Russia

278.6

212.7

31.0%

 

Azerbaijan & Georgia

19.3

13.1

47.0%

 

Total

1,052.2

664.7

58.3%

 

 

 

 

 

 

Group system sales like-for-like growth(2)

 

 

Group(8)

53.5%

6.0%

 

 

Turkey

65.0%

13.5%

 

 

Russia (based on RUB)

18.2%

-20.1%

 

 

 

 

 

 

 

Revenue

658.0

437.7

50.3%

 

Turkey adjusted EBITDA(3)

91.9

50.4

82.4%

 

Russia adjusted EBITDA(3)

12.9

(3.0)

n.m.

 

Adjusted EBITDA(3)

98.0

42.7

129.7%

 

Adjusted net income(4)

34.8

(60.9)

n.m.

 

Adjusted net debt(5)

471.2

445.0

5.9%.

 

 

 

 

 

 

 

 

 

Financial Highlights

·     Group revenue up 50.3% and system sales up 58.3%, on the back of unprecedented demand in Turkey and against very weak comparables for H1 2020 in both Turkey and Russia due to the pandemic

Turkish systems sales growth of 71.9%

Russian system sales growth of 31.0% (15.5% based on RUB)

·     Adjusted EBITDA of TRY 98.0 million, representing growth of 129.7% from the previous year

·     Adjusted net income of TRY 34.8 million (2020: TRY (60.9) million)

·     Strong liquidity position with TRY 110 million of cash at hand and additional available bank lines of TRY 186 million as at 30 June 2021

·     Adjusted net debt of TRY 471.2 million as at 30 June 2021 (H1 2020: TRY 445.0 million)

 

Operational Highlights

·     Online delivery system sales(6) as a share of delivery system sales at 77.5% (June 2020: 75.1%) reflects our continued strong online offering and positioning

·     Group online system sales(7) growth of 77.2%

Turkish online system sales growth of 106.7%

Russian online system sales growth of 33.2% (17.5% based on RUB)

·     35 net store openings year-on-year

2021 Outlook

Whilst the Board is conscious of the potential continued risks posed by the pandemic, the strong like-for-like performance achieved in Turkey in the first half of the year and the expectation of continued buoyant trading enables raised guidance for full year like-for-like growth rates in Turkey.  In late March 2021, guidance was set at 21-25%, which is now being raised to 35-40%.

Given the stronger revenue performance than anticipated earlier in the year, the Board is pleased to report that adjusted EBITDA is now likely to be slightly ahead of the market's current expectations.

 

Commenting on the results, Chief Executive Officer, Aslan Saranga said:

 

"On behalf of the Board, I am pleased to report a set of strong results for the first half of 2021 that shows a marked improvement compared to the same period in 2020.  We have increased our adjusted EBITDA by 129.7% compared to the same period a year ago on the back of a 50.3% increase in Group revenue.

"Our Turkish business continues to expand in record breaking fashion despite the challenging inflationary environment that we have been experiencing.  This is mainly due to our strategy of delivering better value to the customers and better margins to the franchisees for the past 18 months.

"Our Russian business continues to show encouraging signs of improvement and we see positive impact from the implementation of our Russian plan, where we posted positive adjusted EBITDA figures after a loss in the comparable period in 2020.

"Following certain restrictions due to Covid-19, especially related to dine-in service, in the first half of the year, both countries are currently open for business across all three channels.  After a slow start to vaccination, both countries have improved their respective vaccination rates, which gives us hope that we will not see any further constraints in the second half of the year.

"Both product and technology innovation continue to be key for the Group.  We have launched Çokominos, a chocolate dessert product, and chicken products with different assortment of sauces in Turkey and pear blue cheese pizza and pizza pies in Russia.  On the technology front, we have been upgrading the user experience to increase the conversion rates in both the website and the apps.

"The robust franchisee demand has resulted in 16 store openings in Turkey during the first half of the year with a very strong pipeline for the second half of 2021 and beyond.  In Russia, we have also added two stores in the first half.

"Digital continues to be the driving force behind our sales with the digital mix in delivery reaching record levels in both Turkey and Russia for the first half of the year.

"Whilst the Board is conscious of the potential continued risks posed by the pandemic, we are increasing our Turkish like-for-like guidance and the Board expects the full year adjusted EBITDA(6) for 2021 to be slightly higher than the market's current expectations."

 

Enquiries

DP Eurasia N.V.

 

Selim Kender, Chief Strategy Officer & Head of Investor Relations

+90 212 280 9636

 

 

Buchanan (Financial Communications)

 

Richard Oldworth / Victoria Hayns / Tilly Abraham / Verity Parker

+44 20 7466 5000

dp@buchanan.uk.com

 

 

A conference call will be held at 9.30am on 7 September 2021 for analysts and investors via the following dial-in details:

 

Conference call:

UK Toll: +44 3333000804

UK Toll Free: 08003589473

Participant PIN code: 86026261#

URL for international dial in numbers: http://events.arkadin.com/ev/docs/NE_W2_TF_Events_International_Access_List.pdf

 

DP Eurasia N.V.'s 2021 interim results and corporate presentation are available at www.dpeurasia.com.  A conference call replay will be available on the website in due course.

Notes

(1) System sales are sales generated by the Group's corporate and franchised stores to external customers and do not represent revenue of the Group.

 (2) 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).

(3) 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 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.

(4) Adjusted net income is 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.  Please refer to Note 3 in the Consolidated Financial statements for a reconciliation of this item with IFRS.

(5) Net debt and adjusted net debt 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 including deposits not otherwise considered cash and cash equivalents under IFRS.

(6) Delivery system sales are system sales of the Group generated through the Group's delivery distribution channel.

(7) Online system sales are system sales of the Group generated through its online ordering channel.

(8) 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).

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 789 stores (584 in Turkey, 192 in Russia, nine in Azerbaijan and four in Georgia as at 30 June 2021), and operates through its owned corporate stores (28%) and franchised stores (72%). 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

System Sales

For the period ended

30 June

 

 

2021

2020

Change

 

(in millions of TRY, unless otherwise indicated)

 

 

 

Group system sales (1)

 

 

 

Group

1,052.2

664.7

58.3%

Turkey

754.4

438.9

71.9%

Russia

278.6

212.7

31.0%

Azerbaijan & Georgia

19.3

13.1

47.0%

 

 

 

 

Group system sales like-for-like growth(2)

 

 

Group(8)

53.5%

6.0%

 

Turkey

65.0%

13.5%

 

Russia (based on RUB)

18.2%

-20.1%

 

 

Store Count

As at 30 June

 

2021

 

2020

 

Corporate

Franchised

Total

 

Corporate

Franchised

Total

Turkey

103

481

584

 

121

421

542

Russia

115

77

192

 

120

79

199

Azerbaijan

-

9

9

 

-

9

9

Georgia

-

4

4

 

-

4

4

Total

218

571

789

 

241

513

754

 

DP Eurasia's store count grew by 35 stores year-on-year and by 18 since the end of 2020.  The Group increased its system sales by 58.3% year-on-year, driven by a combination of like-for-like sales growth due to unprecedented demand in Turkey and against very weak comparables for H1 2020 in both Turkey and Russia due to the pandemic, and store openings.

The Turkish operations' system sales, representing 72% of Group system sales, increased by 71.9%.  The Group achieved 65.0% like-for-like growth in Turkey, overcoming the negative effects of dine-in restrictions by a very strong performance in the delivery channel.  As a result of the strong top line performance since the second half 2020, the Company experienced robust franchisee interest in Turkey resulting in a strong store pipeline, laying strong foundations for future growth.  The Company's Turkish store count (including Azerbaijan and Georgia) increased by 42 over the last twelve months and sixteen since the end of 2020.

The Russian operations' system sales, representing 26% of Group system sales, increased by 31.0% (15.5% based on RUB).  The Group reported 18.2% like-for-like growth in Russia during the period as it was lapping the 72-day lock down period in Moscow in 2020.  The Group added two stores since the end of 2020, whilst Russian store count decreased by seven over the last twelve months.

 

 

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

 

 

2021

2020

 

 

Turkey

Russia

Total

Turkey

Russia

Total

Store

 

25.6%

7.7%

22.2%

28.3%

10.9%

23.5%

Online

Group's online platform

25.9%

69.5%

36.5%

25.1%

73.9%

41.5%

Aggregator

48.1%

22.9%

41.0%

44.4%

15.2%

33.6%

Total online

74.0%

92.3%

77.5%

69.5%

89.1%

75.1%

Call centre

 

0.4%

-

0.3%

2.3%

-

1.4%

Total(6)

 

100%

100%

100%

100%

100%

100%

 

The following table shows the Group's online like-for-like growth(2), analysed by the Group's two largest countries in which it operates:

 

For the period ended

30 June

 

2021

2020

Group online system sales like-for-like growth(2)(7)

Group(8)

73.6%

32.3%

Turkey

91.2%

38.6%

Russia (based on RUB)

19.2%

8.9%

 

The Group's like-for-like growth continues to be driven by the performance of its online ordering platforms.  Online delivery system sales as a share of delivery system sales reached 77.5% for the period, which represents a 2.4 percentage point increase on a year-on-year basis.

In Turkey, online system sales like-for-like growth for the period was 91.2%, as a result of which online delivery system sales as a share of delivery system sales reached 74.0% for the period, a 4.5 percentage point increase from a year ago.  This performance was aided also by an increase in volumes through the aggregator and an addition of a second aggregator as a new channel.

In Russia, online system sales like-for-like growth for the period was 19.2%, as a result of which online delivery system sales as a share of delivery system sales reached 92.3% for the period, a 3.2 percentage point increase from a year ago, aided by the Group's participation in an aggregator in May 2020.

Online system sales continued to outpace the overall system sales growth at 77.2% for the Group.  Turkish online system sales grew by 106.7%, while Russian online system sales grew by 33.2% (17.5% based on RUB).

 

 

Financial Review

 

For the period ended

30 June

 

 

2021

2020

Change

 

(in millions of TRY)

 

 

 

Revenue

658.0

437.7

50.3%

Cost of sales

(426.8)

(309.3)

38.0%

Gross Profit

231.2

128.4

80.1%

General administrative expenses

(95.5)

(76.9)

24.1%

Marketing and selling expenses

(112.2)

(79.5)

41.0%

Other operating expenses, net

(1.1)

(0.9)

22.4%

Operating profit

22.5

(29.0)

n.m.

Foreign exchange gains/(losses)

48.6

(7.6)

n.m.

Financial income

9.0

12.7

-29.1%

Financial expense

(42.3)

(45.5)

-7.1%

Profit/(Loss) before income tax

37.8

(69.4)

n.m.

Tax expense

(17.8)

0.9

n.m.

Profit/(Loss) after tax

19.9

(68.5)

n.m.

 

 

 

 

Turkey adjusted EBITDA(3)

91.9

50.4

82.4%

Russia adjusted EBITDA(3)

12.9

(3.0)

n.m.

Adjusted EBITDA(3)

98.0

42.7

129.7%

Adjusted net income(4)

34.8

(60.9)

n.m.

Adjusted net debt(5)

471.2

445.0

5.9%

 

Revenue

Group revenue grew by 50.3% to TRY 658.0 million.  Turkey segment revenue grew by 60.0% to TRY 454.1 million, while Russia segment revenue grew by 32.5% to reach TRY 204.0 million.

Adjusted EBITDA

The Group's adjusted EBITDA grew by 129.7% to TRY 98.0 million.  Adjusted EBITDA for the Turkish segment, which includes the Azerbaijani and Georgian businesses, was TRY 91.9 million, a year-on-year increase of 82.4%, and adjusted EBITDA for the Russian segment was TRY 12.9 million.  The Group's adjusted EBITDA for H1 2020 figure included TRY 8.6 million of Covid-19 related costs.  The same figure for H1 2021 is TRY 1.0 million.  Additionally, costs relating to the Group's Dutch corporate expenses reduced adjusted EBITDA by TRY 6.7 million in the first half of 2021.  The comparable adverse effect of this item was TRY 4.7 million for the same period in 2020, with the increase in 2021 primarily due to the further devaluation of the TRY against the EUR and the GBP.

For the period ended 30 June 2021, the Group's adjusted EBITDA margin as a percentage of system sales was 9.3% compared to 6.4% over the same period in 2020.  The main reason for the increase was the improvement in the operational constraints the Group was subject to in the first half of 2020.

Adjusted EBITDA margin as a percentage of system sales for the Turkish segment (including Azerbaijan and Georgia) recorded an increase to 11.9% from 11.1% mainly due to the strong sales performance creating operating leverage through the system.

The Russian segment margin increased to 4.6% from -1.4% as it returned to profitability after a loss in the period twelve months ago.  The main reasons for the increase are the system sales growth achieved and cost cutting measures undertaken in the middle of last year despite increased competition from the aggregators.

Adjusted Net Income

For the period ended 30 June 2021, adjusted net income was TRY 34.8 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.  While the Group's bank facilities are TRY and RUB denominated, the Group recorded a foreign exchange gain of TRY 48.6 million primarily due to the devaluation of the TRY against the RUB versus a foreign exchange loss of TRY 7.6 million in the same period of the previous year.

Capital expenditure and Cash conversion

The Group incurred TRY 24.5 million of capital expenditure in the period ended 30 June 2021.  The Turkish segment capital expenditure was TRY 18.5 million and the Russian segment capital expenditures amounted to TRY 6.0 million (RUB 57.4 million).

Cash conversion, defined as (adjusted EBITDA - lease expenses - capital expenditure)/(adjusted EBITDA - lease payments)) for the period increased to 61.9% (H1 2020: -103.3%) for the Group as a result of the pandemic and increased competition in Russia.  The Turkish segment improved its cash conversion to 77.2% (H1 2020: 57.8%) as a result of its vastly improved adjusted EBITDA and prudent capital expenditure management.  The Russian segment had negative cash conversion due to its negative adjusted EBITDA minus lease payment figure.

Adjusted net debt and leverage

The Group's adjusted net debt at 30 June 2021 was TRY 471.2 million, representing an increase of 5.9% from 30 June 2020.  The Group's bank borrowings and lease liabilities continue to be denominated in its operational currencies of TRY and RUB.  As at 30 June 2021, 54% of the Group's bank borrowings and lease liabilities were denominated in TRY, while 46% is denominated in RUB.

The Group's leverage ratio (defined as adjusted net debt/adjusted EBITDA) decreased to 2.5x as at 30 June 2021 from 3.2x at the end of 2020 as a result of the improving EBITDA performance.

As at 30 June 2021, long term bank borrowings made up 57% of the Group's total bank borrowings.

The Group continues to have a strong liquidity position, having access to cash at hand and additional borrowing capacity available from its Turkish banks.  As at 30 June 2021, the Group had TRY 110 million of cash at hand and additional available bank lines of TRY 186 million.

The Group's strong liquidity position enables it to prepay its bank borrowings in Russia if required, and still maintain a strong liquidity position.  The Group obtained a waiver from Sberbank with respect to its covenants for all four quarters of 2021 and is in negotiations to reset the covenants or repay the remaining loan.  The principal outstanding under the Sberbank loan currently amounts to RUB 0.9 billion, of which RUB 0.2 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, 7 September 2021

 

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*

Pratik R. Pota*

David Adams*

* Non-Executive Directors

Auditor's Involvement

This Interim Report for the six months ended 30 June 2021, 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

 

2021

 

2020

Currency

Period End

Period Average

 

Period End

Period Average

EUR/TRY

10.365

9.485

 

7.708

7.132

RUB/TRY

0.119

0.105

 

0.097

0.093

EUR/RUB

86.203

89.547

 

78.678

77.961

 

Delivery - Take away / Eat in mix

 

For the period ended 30 June

 

2021

2020

 

Turkey

Russia

Total

Turkey

Russia

Total

Delivery

83.2%

77.2%

81.4%

70.0%

77.4%

72.4%

Take away / Eat in

16.8%

22.8%

18.6%

30.0%

22.6%

27.6%

Total(2)

100%

100%

100%

100%

100%

100%

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 30 JUNE 2021 AND 30 JUNE 2020

(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)

 

 

Notes

30 June

30 June

2021

2020

 

 

 

 

 

 

 

 

Revenue

4

658,038

437,745

Cost of sales

4

(426,797)

(309,339)

 

 

 

 

GROSS PROFIT

 

231,241

128,406

 

 

 

 

General administrative expenses

 

(95,511)

(76,934)

Marketing and selling expenses

 

(112,178)

(79,534)

Other operating expense

 

(1,090)

(891)

 

 

 

 

OPERATING PROFIT/(LOSS)

 

22,462

(28,953)

 

 

 

 

Foreign exchange gains/(losses)

6

48,569

(7,594)

Financial income

6

8,985

12,664

Financial expense

6

(42,254)

(45,506)

 

 

 

 

PROFIT/(LOSS) BEFORE INCOME TAX

 

37,762

(69,389)

 

 

 

 

Tax expense

20

(17,844)

882

Income tax expense

 

(14,456)

(4,574)

Deferred tax (expense)/income

 

(3,388)

5,456

 

 

 

 

PROFIT/(LOSS) FOR THE PERIOD

 

19,918

(68,507)

 

 

 

 

OTHER COMPREHENSIVE EXPENSE

 

(53,764)

(16,735)

Items that will not be reclassified

 

 

 

to profit or loss

 

 

 

- Remeasurements of post-employment

 

 

 

   benefit obligations, net of tax

 

(415)

165

- Tax income/(expense) of these obligations

 

104

(41)

 

 

 

 

Items that may be reclassified

 

 

 

to profit or loss

 

 

 

- Currency translation differences

 

(53,453)

(16,859)

 

 

 

 

TOTAL COMPREHENSIVE LOSS

 

(33,846)

(85,242)

 

 

 

 

Earnings/(loss) per share

0.14

(0.47)

 

The accompanying notes form an integral part of these consolidated financial statements.

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2021 AND 31 DECEMBER 2020

 

(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)

ASSETS

Notes

30 June 2021

31 December 2020

 

 

 

 

Trade receivables

13

17,415

16,707

Lease receivables

10

36,533

24,674

Right-of-use assets

10

106,519

112,895

Property and equipment

8

136,110

131,203

Intangible assets

9

80,801

73,516

Goodwill

11

49,427

47,413

Deferred tax assets

20

27,914

26,500

Other non-current assets

16

51,726

40,256

 

 

 

 

Non-current assets

 

506,445

473,164

 

 

 

 

Cash and cash equivalents

12

85,831

109,036

Trade receivables

13

120,818

107,760

Lease receivables

10

15,483

16,621

Inventories

15

98,925

61,744

Other current assets

16

76,622

73,488

 

 

 

 

Current assets

 

397,679

368,649

 

 

 

 

TOTAL ASSETS

 

904,124

841,813

 

 

The accompanying notes form an integral part of these consolidated financial statements.

 

 

  

 

 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AT 30 JUNE 2021 AND 31 DECEMBER 2020

 

(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)

  

 

 

Notes

30 June 2021

31 December 2020

 

 

 

 

EQUITY

 

 

 

 

 

 

 

Paid in share capital

19

36,353

36,353

Share premium

 

119,286

119,286

Contribution from shareholders

21

21,930

20,600

Other reserves

 

 

 

   not to be reclassified to profit or loss

 

 

 

   - Remeasurements of post-employment

 

 

 

      benefit obligations

 

(3,845)

(3,534)

Other reserves

 

 

 

   to be reclassified to profit or loss

 

 

 

   - Currency translation differences

 

(64,636)

(11,183)

Retained earnings

 

(127,997)

(147,915)

 

 

 

 

Total equity

 

(18,909)

13,607

 

 

 

 

LIABILITIES

Financial liabilities

17

220,438

193,015

Lease liabilities

17

124,260

110,549

Long-term provisions for employee benefits

16

3,134

2,874

Other non-current liabilities

16

43,833

39,867

 

 

 

 

Non - current liabilities

 

391,665

346,305

 

 

 

 

 

 

 

 

 

 

 

 

Financial liabilities

17

168,876

167,181

Lease liabilities

17

67,314

72,476

Trade payables

13

218,386

173,359

Current income tax liabilities

20

9,759

8,931

Provisions

 

7,035

5,740

Other current liabilities

16

59,998

54,214

 

 

 

 

Current liabilities

 

531,368

481,901

 

 

 

 

TOTAL LIABILITIES

 

923,033

828,206

 

 

 

 

TOTAL LIABILITIES & EQUITY

 

904,124

841,813

 

 

The accompanying notes form an integral part of these consolidated financial statements.

                                        

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 30 JUNE 2021 30 JUNE 2020

 

(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 2020

36,353

119,286

19,970

(2,591)

(22,288)

(40,332)

110,398

 

 

 

 

 

 

 

 

Remeasurements of post-employment benefit obligations, net

-

-

-

124

-

-

124

Currency translation adjustments

-

-

-

-

(16,859)

-

(16,859)

Total loss for the period

-

-

-

-

-

(68,507)

(68,507)

Total comprehensive loss

-

-

-

124

(16,859)

(68,507)

(85,242)

Share-based incentive plans (Note 21)

-

-

726

-

-

-

726

 

 

 

 

 

 

 

 

Balances at 30 June 2020

36,353

119,286

20,696

(2,467)

(39,147)

(108,839)

25,882

 

 

 

 

 

 

 

 

Balances at 1 January 2021

36,353

119,286

20,600

(3,534)

(11,183)

(147,915)

13,607

 

 

 

 

 

 

 

 

Remeasurements of post-employment benefit obligations, net

-

-

-

(311)

-

-

(311)

Currency translation adjustments

-

-

-

-

(53,453)

-

(53,453)

Total profit for the period

-

-

-

-

-

19,918

19,918

Total comprehensive loss

-

-

-

(311)

(53,453)

19,918

(33,846)

Share-based incentive plans (Note 21)

-

-

1,330

-

-

-

1,330

 

 

 

 

 

 

 

 

Balances at 30 June 2021

36,353

119,286

21,930

(3,845)

(64,636)

(127,997)

(18,909)

 

 

 

 

 

 

 

 

  

 

The accompanying notes form an integral part of these consolidated financial statements.

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS  
FOR THE PERIOD ENDED 30 JUNE 2021 AND 30 JUNE 2020

 

(Amounts expressed in thousands of Turkish Lira (TRY) unless otherwise stated.)

 

Notes

30 June 2021

30 June 2020

 

 

 

 

Profit/(Loss) before income tax

 

37,762

(69,389)

 

 

 

 

Adjustments for:

 

 

 

Depreciation

8,10

47,110

49,172

Amortisation

9

13,570

14,835

Gains on sale of property and equipment

 

293

728

Impairment of property and equipment and intangible assets

8,9

3,616

5,321

Performance bonus accrual

 

5,084

-

Non-cash employee benefits expense -

 

 

 

  share based payments

21

1,330

726

Interest income

6

(8,985)

(12,664)

Interest expense

6

39,326

45,506

 

 

 

 

Changes in operating assets and liabilities

 

 

 

Changes in trade receivables

 

(12,975)

20,762

Changes in other receivables and assets

 

(7,293)

12,547

Changes in inventories

 

(37,181)

10,205

Changes in contract assets

 

(2,085)

198

Changes in contract liabilities

 

(7,596)

(3,881)

Changes in trade payables

 

45,027

36,216

Changes in other payables and liabilities

 

20,544

(751)

Income taxes paid

 

(13,627)

(11,562)

Performance bonuses paid

 

(8,784)

(4,119)

 

 

 

 

Cash flows generated from

 

 

 

  operating activities

 

115,136

93,850

 

 

 

 

Purchases of property and equipment

 

(7,360)

(7,227)

Purchases of intangible assets

9

(17,156)

(13,248)

Disposals from sale of tangible and intangible assets

 

3,873

997

 

 

 

 

Cash flows used in investing activities

 

(20,643)

(19,478)

 

 

 

 

Interest paid

 

(22,257)

(24,855)

Interest on leases paid

 

(6,883)

(9,272)

Interest received

 

2,236

5,444

Loans obtained

 

213,000

309,497

Loans paid

17

(195,437)

(151,564)

Payment of lease liabilities

17

(46,804)

(51,064)

 

 

 

 

Cash flows (used in)/ generated from

 

 

 

  from financing activities

 

(56,145)

78,186

 

 

 

 

Effect of currency translation differences

 

(61,553)

7,525

 

 

 

 

Net increase/ (decrease) in cash and cash equivalents

 

(23,205)

160,083

 

 

 

 

Cash and cash equivalents at the

 

 

 

  beginning of the period

12

109,036

70,928

 

 

 

 

Cash and cash equivalents at the

  end of the period

12

85,831

231,010

 

The accompanying notes form an integral part of these consolidated financial statements.

 

 

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS AS AT 30 JUNE 2021

(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 2021, the Group hold franchise operating and sub-franchising right in 789 stores
(571 franchise stores, 218 corporate-owned stores) (31 December 2020: 771 stores (550 franchise stores, 221 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

2021

30 June

2020

 

 

 

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.
 

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 profit of TRY 19,918 for the first half of 2021. The Group's current liabilities exceed its current assets by TRY 133,689 as of 30 June 2021. The Group realized operating profit for the first half of 2021 compared to a net loss of TRY 68,507 due to the actions taken in 2020, such as cost optimization and restructuring in Russia management team.

 

Due to continuing operating loss in Russia,

 

a-    financial covenants of Groups Russia loan facility have not been met but the Group was able to obtain waivers for March, June, September and December 2021 period-ends. The Group's strong liquidity position enables it to repay its bank borrowings in Russia if required, and still maintain a strong liquidity position.

 

b-    impairment cost of TRY 4.790 has been recognized for low performing stores.

 

However, trading performance across the Group has continued its strong momentum throughout the first half of the year, with 18 stores being opened in Turkey and Russia.

 

On 19 February 2021, Jubilant Foodworks Limited, the largest foodservice company in India, and Fides Food Systems Coöperatief U.A. announced that Jubilant Foodworks Limited and its wholly owned subsidiary, Jubilant Foodworks Netherlands B.V., have entered into a purchase agreement with Turkish Private Equity Fund II L.P. to fully acquire Fides Food Systems Coöperatief U.A., which holds 32.81% of the ordinary share capital of DP Eurasia, for a price of approximately GBP 24.80 million. The transaction was closed on March 9, 2021.

 

 

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 2021 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 report. Accordingly, this report is to be read in conjunction with the annual report for the year ended
31 December 2020 and any public announcements made by the Company during the interim reporting period. These condensed interim financial statements were approved for issue on 6 September 2021. The financial statements have been reviewed, not audited.

 

The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.

 

Seasonality of operations

 

There is no significant seasonality effect on the Group's revenue. According to financial year ended
31 December 2020, 43% of revenues accumulated in the first half year, with 57% 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 2021

 

31 December 2020

 

30 June 2020

 

Period

Period

 

Period

Period

 

Period

Period

Currency

End

Average

 

End

Average

 

End

Average

 

 

 

 

 

 

 

 

 

Euros

10.3645

9.48537

 

9.0079

8.0138

 

7.708

7.1322

Russian Rubles

0.11942

0.10525

 

0.0984

0.0964

 

0.0972

0.0933

 

 

 

 

 

 

 

 

 

 

 

 

NOTE 2 -     BASIS OF PRESENTATION OF INTERIM FINANCIAL STATEMENTS (Continued)

 

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 2021

 

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, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform Phase 2

-           Amendments IFRS 4, 'Insurance contracts', deferral of IFRS 9

 

These standards did not have any impact on the Group's accounting policies and did not require retrospective adjustments.

 

The new standards, amendments and interpretations, which are issued but not effective for the interim financial statements as at 30 June 2021

 

-           IFRS 17, 'Insurance contracts'

-           Amendments to IAS 1, Presentation of financial statements on classification of liabilities

-           A number of narrow-scope amendments to IFRS 3, IAS 16, IAS 17 and some annual improvements on IFRS 1, IFRS 9, IAS 41 and IFRS 16

-           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 2021 and 2020 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.

 

 

NOTE 3 - SEGMENT REPORTING (Continued)

 

The segment analysis for the periods ended 30 June 2021 and 2020 are as follows:

 

1 January-30 June 2021

Turkey

Russia

Other

Total

 

 

 

 

 

Corporate revenue

129,362

136,831

-

266,193

Franchise revenue and royalty

 

 

 

 

     revenue obtained from franchisees

294,021

61,022

-

355,043

Other revenue

30,682

6,120

-

36,802

Total revenue

454,065

203,973

-

658,038

             -    At a point in time

450,085

202,786

-

652,871

             -   Over time

3,980

1,187

-

5,167

Operating profit/(loss)

67,945

(38,739)

(6,744)

22,462

Capital expenditures

18,478

6,038

-

24,516

Tangible and intangible disposals

(2,825)

(1,342)

-

(4,167)

Depreciation and amortisation

 

 

 

 

   expenses

(22,638)

(38,042)

-

(60,680)

Adjusted EBITDA

91,913

12,854

(6,744)

98,023

 

 

 

 

 

30 June 2021

Turkey

Russia

Other

Total

 

 

 

 

 

Borrowings

 

 

 

 

TRY

240,653

-

-

240,653

RUB

-

102,689

45,972

148,661

 

240,653

102,689

45,972

389,314

Lease liabilities

 

 

 

 

TRY

72,068

-

-

72,068

RUB

-

119,506

-

119,506

 

72,068

119,506

-

191,574

Total

312,721

222,195

45,972

580,888

 

 

 

 

 

 

 

NOTE 3 - SEGMENT REPORTING (Continued)

 

1 January-30 June 2020

Turkey

Russia

Other

Total

 

 

 

 

 

Corporate revenue

94,947

108,822

-

203,769

Franchise revenue and royalty

 

 

 

 

     revenue obtained from franchisees

176,292

42,401

-

218,693

Other revenue

12,542

2,741

-

15,283

Total revenue

283,781

153,964

-

437,745

             -    At a point in time

280,825

152,570

-

433,395

             -   Over time

2,956

1,394

-

4,350

Operating profit/(loss)

23,035

(47,271)

(4,717)

(28,953)

Capital expenditures

16,485

8,137

-

24,622

Tangible and intangible disposals

(997)

-

-

(997)

Depreciation and amortisation

 

 

 

 

   expenses

(24,816)

(39,191)

-

(64,007)

Adjusted EBITDA

50,379

(2,989)

(4,717)

42,673

 

 

 

 

 

30 June 2020

Turkey

Russia

Other

Total

 

 

 

 

 

Borrowings

 

 

 

 

TRY

326,418

-

-

326,418

RUB

-

154,169

-

154,169

 

326,418

154,169

-

480,587

Lease liabilities

 

 

 

 

TRY

78,547

-

-

78,547

RUB

-

142,378

-

142,378

 

78,547

142,378

-

220,925

Total

404,965

296,547

-

701,512

             

 

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 EBITDAs as of 30 June 2021 and June 2020 is as follows:

 

 

 

Turkey

30 June 2021

30 June 2020

 

 

 

Adjusted EBITDA (*)

91,913

50,379

 

 

 

Non-recurring and non-trade

 

 

   (income)/expenses per Group

 

 

   Management (*)

 

 

 

 

 

One off non-trading costs

-

1,449

Share-based incentives

1,330

1,079

 

 

 

EBITDA

90,583

47,851

 

 

 

Depreciation and amortisation

(22,638)

(24,816)

 

 

 

Operating profit

67,945

23,035

 

 

 

 

Russia

30 June 2021

30 June 2020

 

 

 

Adjusted EBITDA (*)

12,854

(2,989)

 

 

 

Non-recurring and non-trade

 

 

   (income)/expenses per Group

 

 

   Management (*)

 

 

 

 

 

One off non-trading costs (**)

13,551

5,444

Share-based incentives

-

(353)

 

 

 

EBITDA

(697)

(8,080)

 

 

 

Depreciation and amortisation

(38,042)

(39,191)

 

 

 

Operating loss

(38,739)

(47,271)

 

 

(*)        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 consultancy expenses due to cost reduction program.

 

 

NOTE 3 - SEGMENT REPORTING (Continued)

 

 

 

Other

30 June 2021

30 June 2020

 

 

 

Adjusted EBITDA (*)

(6,744)

(4,717)

 

 

 

Non-recurring and non-trade

 

 

   (income)/expenses per Group

 

 

   Management (*)

 

 

 

 

 

One off non-trading costs 

-

-

 

 

 

EBITDA

(6,744)

(4,717)

 

 

 

Depreciation and amortisation

-

-

 

 

 

Operating loss

(6,744)

(4,717)

 

(*)        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 2021 and 2020 is as follows:

 

 

 

 

 

30 June 2021

30 June 2020

 

 

 

Profit/(loss) for the period as reported

19,918

(68,507)

 

 

 

Non-recurring and non-trade (income)/expenses

 

 

   per Group Management (*)

 

 

 

 

 

Share-based incentives

1,330

726

One-off expenses

13,551

6,893

 

 

 

Adjusted net profit/(loss) for the period

34,799

(60,888)

 

(*)        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 June 2021

30 June 2020

 

 

 

Corporate revenue

266,193

203,769

Franchise revenue and royalty   

 

 

revenue obtained from franchisees

355,043

218,693

Other revenue (*)

36,802

15,283

 

 

 

Revenue

658,038

437,745

 

 

 

Cost of sales

(426,797)

(309,339)

 

 

 

Gross profit

231,241

128,406

 

(*)        Other revenue mainly includes handover income, IT income and other income from franchisee.

 

NOTE 5 - EXPENSES BY NATURE

 

 

30 June 2021

30 June 2020

 

 

 

 

Employee benefit expenses (**)

 

(124,254)

(100,498)

Depreciation and amortisation expenses (**)

 

(60,680)

(64,007)

 

(**)     These expenses are accounted in cost of sales, general administration expenses and marketing expenses.

 

 

NOTE 6 - FOREIGN EXCHANGE LOSSES, FINANCIAL INCOME AND EXPENSES

 

Foreign exchange gains / (losses)

30 June 2021

30 June 2020

 

 

 

Foreign exchange gains/(losses), net

48,110

(8,582)

Foreign exchange gains on lease liabilities

459

988

 

 

 

48,569

(7,594)

 

 

 

Financial income

30 June 2021

30 June 2020

 

 

 

Interest income from lease receivables

6,749

7,220

Interest income

2,236

5,444

 

 

 

8,985

12,664

 

 

 

Financial expense

30 June 2021

30 June 2020

 

 

 

Interest expense

(25,694)

(29,014)

Interest expense on lease liabilities

(13,632)

(16,492)

Other

(2,928)

-

 

 

 

(42,254)

(45,506)

 

 

NOTE 7 - EARNINGS PER SHARE

 

The reconciliation of adjusted profit/(loss) per share as of 30 June 2021 and 2020 is as follows:

 

 

30 June 2021

30 June 2020

 

 

 

Average number of shares existing during the period

145,372

145,372

Net gain/(loss) for the period attributable to

 

 

   equity holders of the parent

19,918

(68,507)

 

 

 

Earnings/(loss) per share

0.14

(0.47)

 

The reconciliation of adjusted earnings/(loss) per share as of 30 June 2021 and 2020 is as follows:

 

 

30 June 2021

30 June 2020

 

 

 

Average number of shares existing during the period

145,372

145,372

Net profit/(loss) for the period attributable to equity

 

 

   holders of the parent

19,918

(68,507)

 

 

 

Non-recurring and non-trade expenses

 

 

   per Group Management (*)

 

 

Share-based incentives

1,330

726

One-off expenses

13,551

6,893

 

 

 

Adjusted net loss for the period

 

 

   attributable to equity holders of the parent

34,799

(60,888)

 

 

 

Adjusted Earnings/(loss) per share (*)

0.24

(0.42)

 

(*)         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 2021 is based on the issued share capital of DP Eurasia N.V. at the date of its incorporation.

 

NOTE 8 - PROPERTY AND EQUIPMENT

 

 

 

 

 

 

Currency

 

 

 

 

 

 

 

translation

 

 

1 January 2021

Additions

Disposals

Transfers

Impairment(*)

adjustments

30 June 2021

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

Machinery and equipment

83,020

1,910

(1,758)

49

-

15,417

98,638

Motor vehicles

37,421

9,557

(12,840)

11

-

6,422

40,571

Furniture and fixtures

64,109

3,270

(666)

1,322

-

1,170

69,205

Leasehold improvements

110,348

1,569

(1,969)

(598)

(5,446)

12,776

116,680

Construction in progress

4,509

611

-

(784)

-

147

4,483

 

 

 

 

 

 

 

 

 

299,407

16,917

(17,233)

-

(5,446)

35,932

329,577

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

Machinery and equipment

(39,691)

(6,079)

867

-

-

(7,991)

(52,894)

Motor vehicles

(28,820)

(4,351)

11,232

-

-

(5,170)

(27,109)

Furniture and fixtures

(33,310)

(3,759)

411

-

-

(552)

(37,210)

Leasehold improvements

(66,383)

(7,437)

1,479

-

3,525

(7,438)

(76,254)

 

 

 

 

 

 

 

 

 

(168,204)

(21,626)

13,989

-

3,525

(21,151)

(193,467)

 

 

 

 

 

 

 

 

Net book value

131,203

 

 

 

 

 

136,110

 

For the period ended 30 June 2021, depreciation expense of TRY17,890 has been charged in cost of sales and TRY3,736 has been charged in general administrative expenses.

 

(*) The Group has impaired tangible assets due to store closures.

 

NOTE 8 - PROPERTY AND EQUIPMENT (Continued)

 

 

 

 

 

 

 

Currency

 

 

 

 

 

 

 

translation

 

 

1 January 2020

Additions

Disposals

Transfers

Impairment

adjustments

30 June 2020

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

Machinery and equipment

76,825

499

-

2,200

(128)

1,394

80,790

Motor vehicles

29,975

4,147

-

-

(84)

611

34,649

Furniture and fixtures

62,552

2,978

(329)

-

-

84

65,285

Leasehold improvements

113,118

2,096

(434)

1,401

(4,595)

1,122

112,708

Construction in progress

7,425

1,654

-

(3,601)

(95)

20

5,403

 

 

 

 

 

 

 

 

 

289,895

11,374

(763)

-

(4,902)

3,231

298,835

 

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

 

Machinery and equipment

(26,380)

(6,009)

-

-

-

(659)

(33,048)

Motor vehicles

(19,601)

(4,518)

-

-

84

(476)

(24,511)

Furniture and fixtures

(28,778)

(3,764)

34

-

-

(44)

(32,552)

Leasehold improvements

(55,093)

(8,286)

80

-

1,539

(678)

(62,438)

 

 

 

 

 

 

 

 

 

(129,852)

(22,577)

114

-

1,623

(1,857)

(152,549)

 

 

 

 

 

 

 

 

Net book value

160,043

 

 

 

 

 

146,286

 

For the period ended 30 June 2020, depreciation expense of TRY17,789 has been charged in cost of sales and TRY4,788 has been charged in general administrative expenses.

 

NOTE 9 - INTANGIBLE ASSETS

 

 

 

 

 

Currency

 

 

1 January

 

 

 

translation

30 June

 

2021

Additions

Disposals

Impairment

adjustments

2021

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

Key money

44,742

558

(1,434)

(2,280)

2,903

44,489

Computer software

89,947

16,598

(741)

(589)

7,423

112,638

Franchise contracts

48,485

-

-

-

-

48,485

 

 

 

 

 

 

 

 

183,174

17,156

(2,175)

(2,869)

10,326

205,612

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

Key money

(17,431)

(3,062)

511

737

(724)

(19,969)

Computer software

(43,742)

(10,508)

741

437

(3,285)

(56,357)

Franchise contracts

(48,485)

-

-

-

-

(48,485)

 

 

 

 

 

 

 

 

(109,658)

(13,570)

1,252

1,174

(4,009)

(124,811)

 

 

 

 

 

 

 

Net book value

73,516

 

 

 

 

80,801

 

 

For the period ended 30 June 2021, amortisation expense of TRY5,972 has been charged in cost of sales and TRY7,598 has been charged in general administrative expenses.

 

(*) The Group has impaired intangible assets due to store closures.

 

 

 

 

 

 

 

Currency

 

 

1 January

 

 

 

translation

30 June

 

2020

Additions

Disposals

Impairment

adjustments

2020

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

Key money

50,622

592

(424)

(2,342)

269

48,717

Computer software

68,672

12,656

(139)

(2,329)

608

79,468

Franchise contracts

48,485

-

-

-

-

48,485

 

 

 

 

 

 

 

 

167,779

13,248

(563)

(4,671)

877

176,670

 

 

 

 

 

 

 

Accumulated depreciation

 

 

 

 

 

 

Key money

(12,038)

(3,759)

205

603

(85)

(15,074)

Computer software

(28,989)

(8,652)

10

2,026

(249)

(35,854)

Franchise contracts

(45,328)

(2,424)

-

-

-

(47,752)

 

 

 

 

 

 

 

 

(86,355)

(14,835)

215

2,629

(334)

(98,680)

 

 

 

 

 

 

 

Net book value

81,424

 

 

 

 

77,990

 

For the period ended 30 June 2020, amortisation expense of TRY6,286 has been charged in cost of sales and TRY8,549 has been charged in general administrative expenses.

 

 

NOTE 10 - RIGHT OF USE ASSETS

 

Details of right-of-use assets as of 30 June 2021 and 31 December 2020 are as follows:

 

 

30 June 2021

31 December 2020

Right-of-use assets

 

 

Properties

105,938

111,636

Vehicles

581

1,259

 

106,519

112,895

 

Details of lease receivable as of 30 June 2021 and 31 December 2020 are as follows:

 

 

30 June 2021

31 December 2020

Lease receivables

 

 

Current

15,483

16,621

Non-current

36,533

24,674

 

52,016

41,295

 

Details of lease liabilities as of 30 June 2021 and 31 December 2020 are as follows:

 

 

30 June 2021

31 December 2020

Lease liabilities

 

 

Current

67,314

72,476

Non-current

124,260

110,549

 

191,574

183,025

 

The movement of right-of-use assets as of 30 June 2021 and 2020 are as follows:

 

 

2021

2020

 

 

 

Opening - 1 January

112,895

180,236

Depreciation

(25,484)

(26,595)

Current year additions

7,927

9,046

Current year disposals

(6,101)

(18,748)

Currency translation adjustments

17,282

1,801

Closing - 30 June

106,519

145,740

 

For the period ended 30 June 2021, amortisation expense of TRY23,653 has been charged in cost of sales and TRY1,831 has been charged in general administrative expenses (30 June 2020: TRY22,969 and TRY3,626, respectively).

 

The total amount of interest of sub-lease income is TRY6,749 as of 30 June 2021(30 June 2020: 7,220).

 

As of June 2021, the total cash outflow for principle of leases and interest of leases is TRY46,804 and TRY6,883, respectively (30 June 2020: TRY51,064 and TRY9,272).

 

 

NOTE 11 - GOODWILL

 

 

30 June 2021

31 December 2020

 

 

 

1 January

47,413

47,133

Currency translation impact

2,014

280

 

 

 

31 December

49,427

47,413

 

These Goodwill relates to Turkish and Russian cash generating units at the amounts TRY 36,023 and TRY 13,404 respectively (31 December 2020: TRY36,023 and TRY11,390 (RUB96,016) respectively).

 

 

NOTE 12 - CASH AND CASH EQUIVALENTS

 

The details of cash and cash equivalents as of 30 June 2021 and 31 December 2020 are as follows:

 

 

30 June 2021

31 December 2020

 

 

 

Cash

836

1,249

Banks

56,873

19,867

Term bank deposits (less than three months)

21,500

69,500

Credit card receivables

6,622

18,420

 

85,831

109,036

 

Maturity term of credit card receivables are 30 days on average (31 December 2020: 30 days).

 

 

 

NOTE 13 - TRADE RECEIVABLES AND PAYABLES

 

a)         Short-term trade receivables

 

 

30 June 2021

31 December 2020

 

 

 

Trade receivables

102,620

89,091

Post-dated cheques (*)

23,318

22,932

 

 

 

 

125,938

112,023

 

 

 

Less: Doubtful trade receivable

(5,120)

(4,263)

 

 

 

Short-term trade receivables, net

120,818

107,760

 

The average collection period for trade receivables is between 30 and 60 days (2020: 30 and 60 days).

 

b)        Long-term trade receivables

 

 

30 June 2021

31 December 2020

 

 

 

Trade receivables

1,239

539

Post-dated cheques (*)

16,176

16,168

 

 

 

 

17,415

16,707

 

(*)           Post-dated cheques are the receivables from franchisees resulting from store openings.

 

c)         Short-term trade and other payables

 

 

30 June 2021

31 December 2020

 

 

 

Trade payables

205,788

168,329

Other payables

12,598

5,030

 

 

 

 

218,386

173,359

 

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 2021

30 June 2020

 

 

Short-term employee benefits

20,081

Share-based incentives

1,330

726

 

 

 

21,411

11,870

 

There are no loans, advance payments or guarantees given to key management.

 

 

NOTE 15 - INVENTORIES

 

 

30 June 2021

31 December 2020

 

 

 

Raw materials

97,196

57,292

Other inventory

1,729

4,452

 

 

 

 

98,925

61,744

 

 

NOTE 16 - OTHER ASSETS AND LIABILITIES

 

Other current assets

 

 

 

30 June 2021

31 December 2020

 

 

 

Advance payments (*)

48,730

56,208

Prepaid taxes and VAT receivable

9,572

4,175

Prepaid marketing expenses

5,998

3,001

Deposits for loan guarantees (**)

2,354

1,437

Prepaid insurance expenses

2,122

1,532

Contract assets related to

 

 

    franchising contracts (***)

870

879

Other

6,976

6,256

 

 

 

 

76,622

73,488

 

(*)       As of 30 June 2021, advance payments are composed of advances given to suppliers for the purchasing raw material and other services.

(**)     The Group repaid a portion of its loans to Sberbank Moscow and the TRY 23,899 (RUB 200 million) cash deposit condition that was made as collateral by Fidesrus

(***)   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 assets

 

 

 

30 June 2021

31 December 2020

 

 

 

Long-term deposits for

 

 

   loan guarantees (*)

21,545

17,760

Prepaid marketing expenses  

16,955

12,620

Deposits given

6,841

5,585

Contract assets related to

 

 

   franchising contracts (**)

6,385

4,291

 

 

 

Total

51,726

40,256

 

(*)       The Group repaid a portion of its loans to Sberbank Moscow and the TRY 23,899 (RUB 200 million) cash deposit condition that was made as collateral by Fidesrus.

(**)     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 2021

31 December 2020

 

 

 

Payable to personnel

10,105

6,368

Unused vacation liabilities

9,894

7,977

Contract liabilities from franchising contracts (*)  

7,745

5,672

Taxes and funds payable

5,753

5,212

Performance bonuses

5,084

9,619

Social security premiums payable

4,898

4,077

Volume rebate advances

4,793

5,364

Advances received from franchisees

2,211

4,239

Other expense accruals

9,515

5,686

 

 

 

Total

59,998

54,214

 

(*)        The Group incurs certain revenue with set up of each franchise contract and these franchise fee revenues are deferred over the period of the franchise agreement.

 

Other non-current liabilities

 

 

 

30 June 2021

31 December 2020

 

 

 

Contract liabilities from franchising contracts (*)

43,833

38,311

Long term provisions for

 

 

  employee benefits

3,134

2,874

Other

-

1,556

 

 

 

Total  

46,967

42,741

 

(*)        The Group incurs certain revenue with set up of each franchise contract and these franchise fee revenues are deferred over the period of the franchise agreement.
 

NOTE 17 - FINANCIAL LIABILITIES

 

30 June 2021

31 December 2020

 

 

 

Short term bank borrowings

66,849

54,088

 

 

 

Short-term financial liabilities

66,849

54,088

 

 

 

Short-term portions of long-term borrowings

102,027

113,093

Short-term portions of long-term leases

67,314

72,476

 

 

 

Current portion of long-term financial liabilities

169,341

185,569

 

 

 

Total short-term financial liabilities

236,190

239,657

 

 

 

Long-term bank borrowings

220,438

193,015

Long-term leases

124,260

110,549

 

 

 

Long-term financial liabilities

344,698

303,564

 

 

 

Total financial liabilities

580,888

543,221

 

30 June 2021

 

Currency

Maturity

Interest rate (%)

Short-term

Long-term

 

 

 

 

 

TRY borrowings

Revolving

12.03

161,074

79,579

RUB borrowings

2024

9.08

7,802

140,859

 

 

 

 

 

 

 

 

168,876

220,438

 

31 December 2020

 

Currency

Maturity

Interest rate (%)

Short-term

Long-term

 

 

 

 

 

TRY borrowings

Revolving

10.48

154,960

109,041

RUB borrowings

2024

9.70

12,221

83,974

 

 

 

 

 

 

 

 

167,181

193,015

 

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 2021, Sberbank has waived the covenant conditions for 2020 year end, as well as the first, second, third and fourth quarters of 2021.

 

 

NOTE 17 - FINANCIAL LIABILITIES (Continued)

 

The redemption schedule of the borrowings as of 30 June 2021 and 31 December 2020 is as follows:

 

 

30 June 2021

31 December 2020

 

 

 

To be paid in one year

168,876

167,181

To be paid between one to two years

95,209

63,762

To be paid between two to three years

61,769

76,941

To be paid between three years and more

63,460

52,312

 

 

 

 

389,314

360,196

 

The details of the finance lease liabilities as of 30 June 2021 and 31 December 2020 are as follows:

 

 

30 June 2021

31 December 2020

 

 

 

Leases to be paid in one year

67,314

72,476

Leases to be paid between one to two years

40,831

37,045

Leases to be paid between two to three years

28,191

28,403

Leases to be paid between three years and more

55,238

45,101

 

 

 

 

191,574

183,025

 

 

The details of the fair value of the financial liabilities as of 30 June 2021 and 31 December 2020 are as follows:

 

30 June 2021

31 December 2020

 

Carrying

Fair

Carrying

Fair

 

value

value

value

value

Borrowings

389,314

450,010

360,196

387,504

Leases

191,574

234,996

183,025

212,353

Total

580,888

685,006

543,221

599,857

 

 

NOTE 17 - FINANCIAL LIABILITIES (Continued)

 

The reconciliation of adjusted net debt as of 30 June 2021 and 31 December 2020 is as follows:

 

 

30 June 2021

31 December 2020

 

 

 

Short-term bank borrowings

66,849

54,088

Short-term portions of long-term borrowings

102,027

113,093

Short-term portions of long-term leases

67,314

72,476

Long-term bank borrowings

220,438

193,015

Long-term leases

124,260

110,549

 

 

 

Total borrowings

580,888

543,221

 

 

 

Cash and cash equivalents (-)

(85,831)

(109,036)

 

 

 

Net debt

495,057

434,185

 

 

 

Non-recurring items

 

 

    per Group management

 

 

Long-term deposit for loan guarantee

(23,899)

(19,197)

 

 

 

Adjusted net debt (*)

471,158

414,988

 

(*)        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 take into account 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 2021 and December 2020 are as follows;

 

 

30 June 2021

31 December 2020

 

 

 

Guarantee letters given

4,743

4,451

 

 

 

 

4,743

4,451

 

b)         Guarantees received for trade receivables are as follows:

 

 

30 June 2021

31 December 2020

 

 

 

Guarantee notes received

63,944

54,174

Guarantee letters received

65,572

23,315

 

 

 

 

129,516

77,489

 

c)         Tax contingencies

 

The Russian transfer pricing legislation is generally aligned with the international transfer pricing principles developed by the Organisation for Economic Cooperation 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 2021 and 31 December 2020 are as follows:

 

 

 

30 June 2021

 

31 December 2020

 

 

Share (%)

Amount

 

Share (%)

Amount

Fides Food Systems Coöperatief U.A.

 

32.8

11,928

 

32.8

11,928

Public shares

 

62.1

22,591

 

62.1

22,591

Vision Lovemark Coöperatief U.A.

 

4.9

1,777

 

4.9

1,777

Other

 

0.2

57

 

0.2

57

 

 

 

 

 

 

 

 

 

 

36,353

 

 

36,353

 

As of 30 June 2021, the Group's 145,372,414 shares are issued and fully paid for.

 

The nominal value of each share is EUR0.12 (2020: EUR0.12). There is no preference stock.

 

DP Eurasia's authorised share capital is EUR 60,000,000.

As of 30 June 2021, the Group's 145,372,414 (30 June 2020: 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. The tax rate used for the period to 30 June 2021 is 25% (31 December 2020: 25%).

 

Corporate tax liability for the year consists of the following:

 

 

30 June 2021

31 December 2020

 

 

 

Corporate tax calculated

14,456

22,201

Prepaid taxes (-)

(4,697)

(13,270)

 

 

 

Tax liability

9,759

8,931

 

Tax income and expenses included in the statement of comprehensive income are as follows:

 

 

30 June 2021

30 June 2020

 

 

 

Current period corporate tax expense

(14,456)

(4,574)

Deferred tax (expense)/income

(3,388)

5,456

 

 

 

Tax expense

(17,844)

882

 

 

 

 

NOTE 20 - INCOME TAX (Continued)

 

The reconciliation of the tax expense in the statement of comprehensive income is as follows:

 

 

30 June 2021

30 June 2020

 

 

 

Profit before tax

37,762

(69,389)

 

 

 

Corporate tax at statutory rates (25%)

(9,441)

17,347

Disallowable expenses

(7,168)

(6,552)

Unrecognised tax losses

543

(6,087)

Differences in tax rates

(976)

(3,627)

Other, net

(802)

(199)

 

 

 

Total tax expense

(17,844)

882

 

The breakdown of cumulative temporary differences and the resulting deferred income tax assets/liabilities at 30 June 2021 and 31 December 2020 using statutory tax rates are as follows:

 

 

30 June 2021

31 December 2020

 

 

Deferred tax

 

Deferred tax

 

Temporary

assets/

Temporary

assets/

 

differences

(liabilities)

differences

(liabilities)

 

 

 

 

 

Carry forward tax losses (*)

60,231

12,046

49,653

9,931

Contract liabilities from franchising contracts

49,646

11,929

42,959

8,592

Expense accruals

23,808

4,762

21,804

4,361

Right of use assets and lease liability

20,143

4,129

19,639

3,928

Legal provisions

5,617

1,404

5,740

1,148

Unused vacation liabilities

4,391

1,098

4,021

804

Provision for employee termination benefit

3,134

784

2,874

575

Bonus accruals

-

-

9,132

1,826

 

166,970

36,152

155,822

31,165

 

 

 

 

 

Property and equipment and intangible assets

(23,000)

(6,516)

(27,763)

(5,553)

Other

(6,140)

(1,722)

4,440

888

 

(29,140)

(8,238)

(23,323)

(4,665)

 

 

 

 

 

Deferred income tax assets, net

 

27,914

 

26,500

 

(*)        Consists of carry forward losses of Domino's Russia. Domino's Russia has not recognised any additional tax assets on carry forward losses in 2020 and first half of 2021, the change is the result of the currency translation differences between Russian Roubles and Turkish Lira.
 

NOTE 21 - SHARE BASED PAYMENTS

 

The Phantom Option Scheme

 

The Phantom Option Scheme was completed after %100 stake sale by Turkish Private Equity Fund II L.P. ( Note-1) 

 

Senior management long term incentive plan

 

A share incentive scheme was put in place on 8 May 2018. According to the incentive scheme employees were granted an option to acquire shares, at a strike price of GBP 1.85 with an expiry date of 8 May 2021, based on performance targets of the Group for the upcoming three years, and continuing employment until the date of vesting based on performance targets of the Group for the upcoming three years, and continuing employment until the date of vesting. The shares under the option will vest at the end of the scheme period.

 

Vesting of 2018-2020 LTIP cycle is completed as of 8 May 2021. No shares wested for Aslan Saranga as the performance condition was not met for 2018-2020 cycle.

 

On 3 May 2019, Aslan Saranga was granted an LTIP award amounting to 332,706 shares (share price GBP 0.88) which will vest in May 2022 subject to achievement of an EBITDA growth target. On 14 May 2020, Aslan Saranga was granted an LTIP award amounting to 506,212 shares (share price GBP 0.59) which will vest in May 2023 subject to achievement of an EBITDA growth target.

 

 

Long-term incentive plan for new board adviser

 

On 7 September 2020, Andrew Rennie, Domino's Pizza Enterprises Limited's ex-CEO of European Operations, agreed to join the Group as Board Adviser. He obtained a call option from the major shareholder Fides Coop for 4 million DPEU shares at a strike price of GBP 1.05 with an expiry date of 30 September 2022.

 

Under these three existing plans, an amount of TRY 1,330 has been charged for 2021, whereas TRY 1,463 has been charged for 2020 and the cumulative charge is TRY 21,930 as at 30 June 2021 (31 December 2020: TRY 20,600).

 

 

NOTE 22 - SUBSEQUENT EVENT

 

No subsequent events.

 

 

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 2021 of DP Eurasia N.V., Amsterdam, which comprises the condensed consolidated statement of financial position as at 30 June 2021, 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 statements for the six-month period ended 30 June 2021 is not prepared, in all material respects, in accordance with IAS 34, 'Interim Financial Reporting' as adopted by the European Union.

Amsterdam, 6 September 2021

PricewaterhouseCoopers Accountants N.V.

 

 

Original has been signed by B.A.A. Verhoeven RA

 

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