Interim Condensed Consolidated Financial Statements for the period ended 31 December 2024

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1

The Group's assets include goodwill with indefinite

In

addressing the risks, we performed the

useful life amounting to QR 344 million

following procedures:

representing 11% of the Group's total assets.

• Obtained an understanding of the business

In accordance with IAS 36 'Impairment of Assets',

process for the impairment assessment,

an entity is required to test goodwill acquired in a

identified the relevant internal controls and

business combination for impairment at least

tested their design, implementation, and

annually irrespective of whether there is any

operating effectiveness;

indication of impairment.

An impairment is recognised on the consolidated

•

Assessed the mathematical accuracy of the

impairment models and the methodology

statement of financial position when the

applied by the Group for consistency with the

recoverable amount is less than the net carrying

requirements of IAS 36;

amount in accordance with IAS 36.

The determination of the recoverable amount is

• Assessed the appropriateness of forecast

revenue and gross margin growth rates;

based on discounted future cash flows. The key

assumptions applied by the management in the

•

Performed

analytical

review

of

relevant

impairment reviews performed are:

stores' data to obtain insights in to store

- future revenue growth and changes in gross

financial

performances

to

identify

any

unusual trends

and

to

assess

historical

margin; and

performance against forecasted performance;

- discount rates and long term growth rates.

The impairment of

goodwill

is complex

and

• Our internal valuation experts reviewed the

appropriateness

of

the

valuation

involves management's estimates,

which

are

methodology

used

by

management

and

inherently uncertain. Given the material impact of

independently recalculated the discount rate

goodwill, any change in the assumptions based on

and long term growth rates applied to the

their sensitivity could have a significant effect on

future cash flows;

the consolidated financial statements therefore we

consider the impairments of goodwill to be a key

•

Performed

sensitivity

analysis on

the key

audit matter.

assumptions used by the management to

Please refer to the

following

notes

for further

understand

the

extent

to

which

these

assumptions

need

to

be adjusted before

details:

giving rise to an impairment loss; and

• Note 11: Goodwill

statements in accordance with IFRS

Accounting Standards.

The Group's Revenue amounting to QR 2,809

In addressing the risks, we performed the

million is mainly derived from the sale of goods to

following procedures:

retail customers.

• Obtained a detailed understanding and

Revenue from sales of goods to retail customers is

evaluated the design and implementation of

recognized when control of the goods has

key controls in the end to end revenue process;

transferred, being at the point the customer

purchases the goods at the retail outlet.

• The revenue process is highly automated. We

Although revenue recognition is considered to be

evaluated the general IT control environment

and tested the operating effectiveness of key

relatively straightforward on a transactional level,

IT application controls. We also obtained a

the large volume of transactions, together with the

high level of assurance over manual and

complexity of the IT systems involved in the highly

automated controls;

automated revenue recognition process has led us

to identify it as a key audit matter.

• Tested interfacing of point of sales system to

Please refer to the following notes for further

accounting system and agreed the revenue

recorded in the point of sales system, on a

details:

sample basis, to the revenue recorded in the

• Note 3: Critical accouting estimates and

accounting

records

and

supporting

documentation and vice versa;

judgement; and

• Note 4: Sales

• Utilised data auditing techniques to categorize

all revenue journal entries impacting revenue

and accounts receivable based on the expected

journal entry flow. On a sample basis, verified

cash applied against the relevant entries;

• On a sample basis selected revenue

transactions recorded just before and after the

reporting date, and determined that these

transactions have been recorded in the correct

accounting period;

• Analysed post period-end returns to agree that

sales have been recognised in the correct

period and to determine if the returns

provision is appropriately stated;

• Performed

analytical

review of

revenue by

store to assess the revenue trends throughout

the year and investigated any unusual

variances; and

• Assessed the adequacy and accuracy of

disclosure within the consolidated financial

statements in accordance with IFRS

Accounting Standards.

The Group held gross inventories of QR 417 million,

In addressing the risks, we performed the

against which a provision of QR 52 million had been

following procedures:

recorded.

• Obtained a detailed understanding and

In accordance with IAS 2 'Inventories', inventories

evaluated the design and implementation of

are stated at the lower of cost and net realisable

key controls surrounding the inventory

value. Cost is determined using the weighted

process;

average cost method. Net realisable value is based

on estimated selling price less any further costs

• We evaluated the general IT control

expected to be incurred on completion and

environment and tested the operating

disposal. When inventories become old or obsolete,

effectiveness of key IT application controls

an estimate is made of their net realisable value.

ensuring that the weighted average cost

Inventory is held at various locations with moving

method was being accurately applied and was

being properly processed and updated;

average price and inventory consumption

processed automatically by complex IT systems,

• Walkthrough and control testing was

hence we have identified inventory valuation as a

performed by observing the control and

key audit matter.

inspecting supporting evidence for the various

Please refer to the following notes for further

controls;

details:

• We observed management's physical wall to

• Note 3: Critical accounting estimates and

wall annual inventory counts at selected

locations to verify the existence and

judgement; and

completeness of inventory;

• Note 15: Inventories

• For a sample of inventory items, we assessed

the value to confirm whether it is measured at

lower of cost or net realisable value, through

comparison to subsequent sales receipts;

• Performed ratio analysis (e.g., inventory

turnover, days in inventory) and compared

these metrics against prior periods to identify

unusual trends;

• We examined goods received notes and

shipping documents before and after the year

end to ensure inventory transactions were

recorded in the correct period;

• We tested the Group's provisions for

shrinkage, obsolete and slow-moving

inventories to assess whether these provisions

were reasonable; and

• Assessed the adequacy and accuracy of

disclosures within the consolidated financial

statements in accordance with IFRS

Accounting Standards.

Notes

2024

2023

Sales

4

2,808,951,612

2,836,516,511

Cost of sales

5

(2,248,570,726)

(2,287,556,794)

Gross profit

560,380,886

548,959,717

Rental income

78,961,375

85,730,305

Other income

6

43,784,403

34,560,285

General and administrative expenses

7

(360,188,425)

(355,426,778)

Depreciation and amortisation expenses

9,10 & 12

(109,448,860)

(110,607,664)

Finance costs

33

(30,597,038)

(22,128,109)

Share of loss of an associate

14

(35,221)

(29,964)

Profit before income tax

182,857,120

181,057,792

Income tax benefit / (expense)

8

532,474

(937,189)

Profit for the year

183,389,594

180,120,603

Profit attributable to:

184,032,309

Shareholders of the parent

181,146,545

Non-controlling interests

32

(642,715)

(1,025,942)

183,389,594

180,120,603

Earnings per share

Basic and diluted earnings per share attributable to

0.89

shareholders of the parent

30

0.88