AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
Interim condensed consolidated financial statements For the six-month period ended 30 June 2024
AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS For the six-month period ended 30 June 2024
CONTENTS | PAGE(S) |
Independent auditor's review report | 1 |
Interim condensed consolidated statement of profit or loss | 2 |
Interim condensed consolidated statement of comprehensive income | 3 |
Interim condensed consolidated statement of financial position | 4 |
Interim condensed consolidated statement of changes in equity | 5 |
Interim condensed consolidated statement of cash flows | 6 |
Notes to the interim condensed consolidated financial statements | 7 - 17 |
REPORT ON REVIEW ON INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Al Meera Consumer Goods Company Q.P.S.C. and its subsidiaries (the 'Group') as at 30 June 2024 and the related interim condensed consolidated statements of profit or loss, comprehensive income, changes in equity, and cash flows for the six-month period then ended and explanatory notes. Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34 'Interim financial reporting' as issued by the International Accounting Standards Board (IASB). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 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 International Standards on Auditing 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 interim condensed consolidated financial information is not prepared, in all material respects, in accordance with International Accounting Standard 34 'Interim financial reporting'.
For and on behalf of PricewaterhouseCoopers - Qatar Branch
Qatar Financial Market Authority registration number 120155
Mark Menton
Auditor's registration number 364 Doha, State of Qatar
5 August 2024
PricewaterhouseCoopers - Qatar Branch, P.O.Box: 6689, Doha, Qatar. | |
Ministry of Commerce and Industry License number 6 / Qatar Financial Markets Authority License number 120155 | |
T: +974 4419 2777, F:+974 4467 7528, www.pwc.com/me | 1 |
AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF PROFIT OR LOSS
For the six-month period ended 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
Six-month period ended 30 June | |||
2024 | 2023 | ||
Note | (Reviewed) | (Reviewed) | |
Sales | 1,476,139,038 | 1,449,528,957 | |
Cost of sales | (1,204,161,995) | (1,183,499,834) | |
Gross profit | 271,977,043 | 266,029,123 | |
Rental income | 40,630,474 | 43,719,315 | |
Other income | 28,569,706 | 18,407,500 | |
General and administrative | (181,155,896) | (167,611,143) | |
Depreciation and amortisation expenses | (55,105,115) | (59,992,154) | |
Finance costs | (14,375,062) | (12,733,692) | |
Share of loss of an associate | (34,099) | (29,199) | |
Profit before tax | 90,507,051 | 87,789,750 | |
Income tax expense / (benefit) | (121,685) | 9,070 | |
Profit for the period | 90,385,366 | 87,798,820 | |
Attributable to: | 90,667,231 | ||
Equity holders of the parent | 88,360,259 | ||
Non-controlling interests | (281,865) | (561,439) | |
90,385,366 | 87,798,820 | ||
Basic and diluted earnings per share attributable to | 0.44 | ||
equity holders of the parent | 4 | 0.43 |
Report on review of the interim condensed consolidated financial statements is set out on page 1. The accompanying notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements.
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AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the six-month period ended 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
Six-month period ended 30 June | ||
2024 | 2023 | |
(Reviewed) | (Reviewed) | |
Profit for the period | 90,385,366 | 87,798,820 |
Other comprehensive income | ||
Items that will not be reclassified subsequently to | ||
consolidated statement of profit or loss | ||
Net changes in fair value of financial assets at fair value | (8,699,544) | |
through other comprehensive income | (3,947,749) | |
Total comprehensive income for the period | 81,685,822 | 83,851,071 |
Attributable to: | 81,967,687 | |
Equity holders of the parent | 84,412,510 | |
Non-controlling interests | (281,865) | (561,439) |
81,685,822 | 83,851,071 |
Report on review of the interim condensed consolidated financial statements is set out on page 1. The accompanying notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements.
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AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
30 June | 31 December | ||||||||||||||
2024 | 2023 | ||||||||||||||
Notes | (Reviewed) | (Audited) | |||||||||||||
ASSETS | |||||||||||||||
Non-current assets | 5 | 1,275,033,051 | |||||||||||||
Property and equipment | 1,313,901,983 | ||||||||||||||
Right-of-use assets | 6 | 238,581,773 | 204,478,852 | ||||||||||||
Goodwill | 7 | 344,097,998 | 344,097,998 | ||||||||||||
Intangible assets | 181 | 5,918 | |||||||||||||
Financial assets at fair value through other | 8 | 385,271,106 | |||||||||||||
comprehensive income | 389,063,596 | ||||||||||||||
Deferred tax assets | 936,596 | 936,596 | |||||||||||||
Other non-current assets | 14,946,966 | 14,991,966 | |||||||||||||
Total non-current assets | 9 | 2,301,529,093 | 2,224,815,487 | ||||||||||||
Current assets | 345,033,100 | ||||||||||||||
Inventories | 331,713,285 | ||||||||||||||
Trade and other receivables | 15 (b) | 103,124,436 | 83,881,868 | ||||||||||||
Due from a related party | 19,704,019 | 19,713,838 | |||||||||||||
Restricted bank balances | 10 | 75,963,121 | 79,002,434 | ||||||||||||
Cash and bank balances | 99,035,922 | 158,828,124 | |||||||||||||
Total current assets | 629,540,783 | 686,459,364 | |||||||||||||
TOTAL ASSETS | 2,931,069,876 | 2,911,274,851 | |||||||||||||
EQUITY AND LIABILITIES | 11 | 206,000,000 | |||||||||||||
Equity | |||||||||||||||
Share capital | 206,000,000 | ||||||||||||||
Legal reserve | 901,289,603 | 901,289,603 | |||||||||||||
Optional reserve | 21,750,835 | 21,750,835 | |||||||||||||
Fair value reserve | 14,294,563 | 24,631,894 | |||||||||||||
Retained .earnings | 403,125,224 | 488,179,840 | |||||||||||||
1,546,460,225 | 1,641,852,172 | ||||||||||||||
Equity attributable to equity holders of the parent | |||||||||||||||
Non-controlling interests | 37,919,208 | 38,201,073 | |||||||||||||
Total equity | 1,584,379,433 | 1,680,053,245 | |||||||||||||
13 | 284,500,740 | ||||||||||||||
Non-current liabilities | |||||||||||||||
Loans and borrowings | 380,432,443 | ||||||||||||||
Lease liabilities | 14 | 215,082,240 | 182,837,794 | ||||||||||||
Employees' end of service benefits | 50,350,526 | 46,262,181 | |||||||||||||
Retentions payable | 12,422,805 | 6,275,488 | |||||||||||||
Deferred tax liability | 1,114,987 | 1,114,987 | |||||||||||||
liabilities | 659,403,001 | 520,991,190 | |||||||||||||
Total non-current | |||||||||||||||
Current liabilities | 622,020,753 | ||||||||||||||
Trade and other payables | 14 | 595,311,482 | |||||||||||||
Lease liabilities | 45,301,277 | 42,833,825 | |||||||||||||
Loans and borrowings | 13 | 46,674,683 | 45,375,838 | ||||||||||||
687,287,442 | 710,230,416 | ||||||||||||||
Total current liabilities | |||||||||||||||
Total liabilities | 1,346,690,443 | 1,231,221,606 | |||||||||||||
TOTAL EQUITY AND LIABILITIES | 2,931,069,876 | 2,911,274,851 |
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Prof. Khalid Ibrahim Al- Sulaiti
Board Member
Report on review of the interim condensed The accompanying notes from 1 to 18 financial statements.
Mr. Moham�I Mustafawi Al Hashemi
Board Member
is set out on page 1. condensed consolidate
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AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the six-month period ended 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
Equity attributable to equity holders of the parent | Non- | ||||||||
Share | Legal | Optional | Fair value | Retained | controlling | Total | |||
capital | reserve | reserve | reserve | earnings | Total | interest | equity | ||
Balance at 1 January 2024 (Audited) | 206,000,000 | 901,289,603 | 21,750,835 | 24,631,894 | 488,179,840 | 1,641,852,172 | 38,201,073 | 1,680,053,245 | |
Profit for the period | - | - | - | - | 90,667,231 | 90,667,231 | (281,865) | 90,385,366 | |
Reclassification of gain on sale of financial | |||||||||
assets at fair value through other | - | - | - | (1,637,787) | 1,637,787 | - | - | - | |
comprehensive income | |||||||||
Other comprehensive loss for the period | - | - | - | (8,699,544) | - | (8,699,544) | - | (8,699,544) | |
Appropriation for contribution to social and | - | - | - | - | (2,259,634) | (2,259,634) | - | (2,259,634) | |
sports fund | |||||||||
Dividends paid (Note 12) | - | - | - | - | (175,100,000) | (175,100,000) | - | (175,100,000) | |
Balance at 30 June 2024 (Reviewed) | 206,000,000 | 901,289,603 | 21,750,835 | 14,294,563 | 403,125,224 | 1,546,460,225 | 37,919,208 | 1,584,379,433 | |
Balance at 1 January 2023 (Audited) | 200,000,000 | 901,289,603 | 21,750,835 | 22,224,122 | 417,820,481 | 1,563,085,041 | 39,227,015 | 1,602,312,056 | |
Profit for the period | - | - | - | - | 88,360,259 | 88,360,259 | (561,439) | 87,798,820 | |
Reclassification of loss on sale of financial | |||||||||
assets at fair value through other | |||||||||
comprehensive income | - | - | - | 3,841,553 | (3,841,553) | - | - | - | |
Other comprehensive loss for the period | - | - | - | (3,947,749) | - | (3,947,749) | - | (3,947,749) | |
Appropriation for contribution to social and | |||||||||
sports fund | - | - | - | - | (1,831,002) | (1,831,002) | - | (1,831,002) | |
Bonus shares issued (Notes 11 and 12) | 6,000,000 | - | - | - | (6,000,000) | - | - | - | |
Dividends paid (Note 12) | - | - | - | - | (90,000,000) | (90,000,000) | - | (90,000,000) | |
Balance at 30 June 2023 (Reviewed) | 206,000,000 | 901,289,603 | 21,750,835 | 22,117,926 | 404,508,185 | 1,555,666,549 | 38,665,576 | 1,594,332,125 | |
Report on review of the interim condensed consolidated financial statements is set out on page 1.
The accompanying notes from 1 to 18 form an integral part of these interim condensed consolidated financial statements.
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AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For The Six-Month Period Ended 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
Six-month period ended 30 June | ||
2024 | 2023 | |
(Reviewed) | (Reviewed) | |
Operating activities | 90,507,051 | |
Profit for the period before income tax | 87,789,750 | |
Adjustments for: | 55,105,115 | |
Depreciation and amortisation | 59,992,154 | |
Provision for employees' end of service benefits | 4,475,279 | 3,495,010 |
Provision for obsolete and slow moving inventories | 8,327,542 | 1,928,956 |
Provision for/(reversal of) credit loss allowance | (46,876) | 90,736 |
Finance costs | 14,375,062 | 12,733,692 |
Dividend income from financial assets at fair value through | (24,379,411) | |
other comprehensive income | (14,558,727) | |
Share of loss on an associate | 34,099 | 29,199 |
Loss/ (gain) on disposal of property and equipment | 7,092 | (624) |
Interest income | (3,436,298) | (3,003,550) |
Operating profit before changes in working capital | 144,968,655 | 148,496,596 |
Working capital changes: | (17,928,354) | |
Trade and other receivables | (3,088,731) | |
Inventories | 4,992,273 | 91,866 |
Due from a related party | 9,819 | (12,462) |
Trade, retentions and other payables | (15,745,387) | (9,570,028) |
Cash flows generated from operating activities | 116,297,006 | 135,917,241 |
Payment of contribution to social and sports fund | (4,503,015) | (4,494,816) |
Income tax paid | (189,038) | (127,756) |
Employees' end of service benefits paid | (386,934) | (3,011,423) |
Net cash generated from operating activities | 111,218,019 | 128,283,246 |
Investing activities | ||
Purchase of financial assets at fair value through other | (100,159,763) | |
comprehensive income | (143,823,649) | |
Proceeds from sale of financial assets at fair value through | 87,667,727 | |
other comprehensive income | 121,524,854 | |
Purchase of property and equipment | (70,614,058) | (59,399,589) |
Proceeds from disposal of property and equipment | 24,999 | 582,232 |
Net movement in restricted bank accounts | 3,039,313 | 2,233,000 |
Net movement in deposits maturing after 90 days | (9,500,000) | (9,500,000) |
Dividends received | 24,379,411 | 14,558,727 |
Interest received | 3,686,169 | 4,057,434 |
Net cash flows used in investing activities | (61,476,202) | (69,766,991) |
Financing activities | (178,139,313) | |
Dividends paid | (92,233,050) | |
Finance costs paid | (10,343,715) | (7,128,819) |
Repayment of principal portion of lease liabilities | (20,060,417) | (23,491,810) |
Repayment of interest portion of lease liabilities | (7,607,350) | (6,655,452) |
Proceeds from loans and borrowings | 120,000,000 | - |
Repayments of loans and borrowings | (22,883,224) | (14,704,744) |
Net cash flows used in financing activities | (119,034,019) | (144,213,875) |
Net decrease in cash and cash equivalents | (69,292,202) | (85,697,620) |
Cash and cash equivalents at 1 January | 158,828,124 | 197,664,040 |
Cash and cash equivalents at 30 June | 89,535,922 | 111,966,420 |
Report on review of the interim condensed consolidated | 1. | |
The accompanying notes from 1 to 18 form an integral part | consolidated | |
financial statements. |
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AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six-month period ended 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
1. CORPORATE INFORMATION AND PRINCIPAL ACTIVITIES
On 13 July 2004, the Law No. (24) for 2004 was issued in order to transfer the former Consumers Cooperative Societies to Qatari Shareholding Company with a capital of QR. 100,000,000, thus, incorporating a new company Al Meera Consumer Goods Company Q.P.S.C (the "Company"), which is governed by the Qatar Commercial Companies Law. The Company was registered under commercial registration number 29969 on 2 March 2005. The Company's registered office address is at P.O. Box 3371 Doha, State of Qatar.
The Company and its subsidiaries (together the "Group") are mainly involved in wholesale and retail trading of various types of consumer goods commodities, owning and managing consumer outlets and trading in food stuff and consumer goods.
The Company is listed on the Qatar Stock Exchange and 26% ownership of the Company is held by Qatar Holding L.L.C.
These interim condensed consolidated financial statements of the Group for the six-month period ended 30 June 2024 were authorized for issue by the Board of Directors on 5 August 2024.
The Group's subsidiaries and associates are as follows:
Group effective | ||||
shareholding | ||||
Country of | percentage | |||
Name of subsidiaries and associates | incorporation | Relationship | 2024 | 2023 |
Al Meera Holding Company W.L.L. | Qatar | Subsidiary | 100% | 100% |
Al Meera Supermarkets Company | 100% | |||
W.L.L. | Qatar | Subsidiary | 100% | |
Al Meera Development Company | 100% | |||
W.L.L. | Qatar | Subsidiary | 100% | |
Qatar Markets Company W.L.L. | Qatar | Subsidiary | 100% | 100% |
Al Meera Bookstore W.L.L. | Qatar | Subsidiary | 100% | 100% |
MAAR Trading & Services Company | 100% | |||
W.L.L. | Qatar | Subsidiary | 100% | |
Al Meera Logistics Services Company | 100% | |||
W.L.L. | Qatar | Subsidiary | 100% | |
Al Meera Oman S.A.O.C | Oman | Subsidiary | 70% | 70% |
Al Meera Markets S.A.O.C | Oman | Subsidiary | 70% | 70% |
Al Oumara Bakeries Company W.L.L. | Qatar | Associate | 51% | 51% |
Al Meera Holding Company W.L.L. ("Al Meera Holding") is a limited liability company, incorporated in the State of Qatar. The Company is a holding company for holding the Group's investments and managing its subsidiaries, owning patents, trademarks and real estate needed to carry out its activities.
Al Meera Supermarkets Company W.L.L. ("Al Meera Supermarkets") is a limited liability company incorporated in the State of Qatar. The Company is engaged in the establishment and management of business enterprise and investing therein, owning shares, moveable and immoveable properties necessary to carry out its activities.
Al Meera Development Company W.L.L. ("Al Meera Development") is a limited liability company, incorporated in the State of Qatar. The Company is engaged in establishment and management of business enterprise and investing therein, owning patents, trade-worksand real estate needed to carry out its activities.
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AL MEERA CONSUMER GOODS COMPANY Q.P.S.C.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the six-month period ended 30 June 2024
(All amounts are expressed in Qatari Riyals unless otherwise stated)
1. CORPORATE INFORMATION AND PRINCIPAL ACTIVITIES (CONTINUED)
Qatar Markets Company W.L.L. ("Qatar Markets") is a limited liability company, incorporated in the State of Qatar. The Company is engaged in the sale of food stuff, household items and garments.
Al Meera Bookstore W.L.L. ("Al Meera Bookstore") is a limited liability company incorporated in the State of Qatar. The Company is engaged in the sale of stationery, computer accessories, books and toys. During 2020, the Board of Directors resolved to discontinue the operations of Al Meera Bookstore.
MAAR Trading & Services Co W.L.L. ("MAAR Trading") is a limited liability company incorporated in State of Qatar. The Company is engaged in the sale of food stuff and household items.
Al Meera Logistics Services W.L.L. ("Al Meera Logistics") is a limited liability company, incorporated in the State of Qatar. The Company is engaged in the warehousing and delivery truck services. In December 2019, Al Meera Logistics was fully acquired by the Parent Company and was accounted as a subsidiary. As of the reporting date, this company has not commenced its commercial operations.
Al Meera Oman S.A.O.C ("Al Meera Oman") is a limited liability company, incorporated in Sultanate of Oman. The Company is engaged in the construction and management of shopping centers and related facilities. As of the reporting date, this company has not commenced its commercial operations.
Al Meera Markets S.A.O.C. ("Al Meera Market") is a limited liability company, incorporated in Sultanate of Oman. The Company is engaged in the establishment and operation of shopping centers, supermarkets and hypermarkets.
Al Oumara Bakeries Company W.L.L. ("Al Oumara Bakeries") is a limited liability company, incorporated in the State of Qatar. The Company is engaged in manufacture and sale of bakery products.
2. BASIS OF PREPARATION
The interim condensed consolidated financial statements for the six-month period ended 30 June 2024 have been prepared in accordance with the Company's articles of association, International Accounting Standard 34 Interim Financial Reporting ("IAS 34"), and in conformity with Qatar Commercial Companies Law.
The interim condensed consolidated financial statements have been presented in Qatar Riyals ("QR"), which is the functional and presentation currency of the Group.
The interim condensed consolidated financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the Group's annual consolidated financial statements as at 31 December 2023. In addition, the results for the six-month period ended 30 June 2024 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2024.
Judgments, estimates and risk management
The preparation of the interim condensed consolidated financial statements requires management to make judgments, estimates and assumptions that affects the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. The significant judgments made by management in applying the Group's accounting policies, the key sources of estimation uncertainty and financial risk management were the same as those that applied to the Group's annual consolidated financial statements for the year ended 31 December 2023.
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