BANVİT BANDIRMA VİTAMİNLİ
YEM SANAYİ ANONİM ŞİRKETİ
AND ITS SUBSIDIARIES
CONVENIENCE TRANSLATION TO ENGLISH OF
CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTH PERIOD ENDED
30 JUNE 2024
(ORIGINALLY ISSUED IN TURKISH)
BANVIT BANDIRMA VITAMINLI YEM SANAYII ANONIM ŞIRKETI AND ITS SUBSIDIARIES
TABLE OF CONTENTS | PAGE |
CONSOLIDATED STATEMENT OF FINANCIAL POSITION | 1-2 |
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME | 3 |
STATEMENT OF CHANGES IN EQUITY | 4 |
STATEMENT OF CASH FLOWS | 5 |
NOTES TO THE FINANCIAL STATEMENTS | 6-54 |
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated.)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
Reviewed | Audited | ||
Notes | 30 June 2024 | 31 December 2023 | |
ASSETS | |||
Current Assets | |||
Cash and cash equivalents | 3 | 3,179,774,205 | 1,569,948,240 |
Trade receivables | 6 | 2,015,910,012 | 1,897,369,372 |
-Related parties | 5 | 99,702,978 | 39,955,273 |
-Other parties | 1,916,207,034 | 1,857,414,099 | |
Other receivables | 170,633,197 | 139,526,032 | |
-Other parties | 170,633,197 | 139,526,032 | |
Inventories | 7 | 1,395,408,532 | 1,591,036,445 |
Biological assets | 8 | 1,437,514,498 | 1,459,023,150 |
Prepaid expense | 10 | 326,884,811 | 176,441,194 |
Current tax assets | 17 | 269,533,831 | 179,483,246 |
Other current assets | 11 | 864,545,729 | 990,412,056 |
Subtotal | 9,660,204,815 | 8,003,239,735 | |
Assets held for sale | 14 | 49,625,677 | 49,625,677 |
Total Current Assets | 9,709,830,492 | 8,052,865,412 | |
Non-Current Assets | |||
Other receivables | 374,448 | 473,183 | |
-Other parties | 374,448 | 473,183 | |
Property, plant and equipment | 12 | 5,204,471,290 | 5,369,576,296 |
Right of use of assets | 282,124,653 | 89,088,529 | |
Intangible assets | 13 | 71,818,670 | 104,967,945 |
-Other intangible assets | 71,818,670 | 104,967,945 | |
Prepaid expenses | 10 | 62,488 | 18,040,566 |
Total Non-current Assets | 5,558,851,549 | 5,582,146,519 | |
Total Assets | 15,268,682,041 | 13,635,011,931 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
1
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated.)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
Reviewed | Audited | ||
Notes | 30 June 2024 | 31 December 2023 | |
LIABILITIES | |||
Short-term Liabilities | |||
Short-term borrowings | 4 | 1,160,668,708 | 1,528,560,266 |
Short-term financial lease liabilities | 4 | 70,986,266 | 9,285,435 |
-Lease liabilities due from other parties | 70,986,266 | 9,285,435 | |
Short-term portions of long-term borrowings | 4 | 55,247,793 | 57,563,238 |
Other financial liabilities | 4 | 7,819,460 | 1,599,210 |
Trade payables | 3,990,859,248 | 4,213,670,264 | |
-Other parties | 6 | 3,990,859,248 | 4,213,670,264 |
Liabilities related to the employee benefits | 105,069,516 | 181,100,123 | |
Derivatives | 11,129,378 | 11,776,637 | |
Other payables | 266,623,516 | 276,562,968 | |
-Related parties | 5 | 259,981,601 | 272,753,672 |
-Other parties | 6,641,915 | 3,809,296 | |
Deferred revenue | 34,371,713 | 76,147,231 | |
Current tax liabilities | 17 | 813,392,352 | 483,733,295 |
Short-term provisions | 260,419,943 | 201,716,605 | |
-Provisions related to the employee benefits | 237,935,586 | 176,515,830 | |
-Other | 22,484,357 | 25,200,775 | |
Other short term liabilities | 1,395,216 | 732,799 | |
Total Short-term Liabilities | 6,777,983,109 | 7,042,448,071 | |
Long-term Liabilities | |||
Long-term borrowings | 4 | 71,950,708 | 86,495,025 |
Long-term financial lease liabilities | 4 | 131,420,136 | 13,984,355 |
-Lease liabilities due from other parties | 131,420,136 | 13,984,355 | |
Long-term provisions | 805,561,869 | 926,090,690 | |
-Provisions related to the employee benefits | 805,561,869 | 926,090,690 | |
Deferred tax liability | 17 | 83,280,526 | 75,788,378 |
Total Long-term Liabilities | 1,092,213,239 | 1,102,358,448 | |
Total Liabilities | 7,870,196,348 | 8,144,806,519 | |
EQUITY | |||
Paid-in share capital | 15 | 100,023,579 | 100,023,579 |
Inflation adjustment of capital | 15 | 1,712,232,003 | 1,712,232,003 |
Accumulated other comprehensive expense | |||
that will not be reclassified through profit or loss | (453,547,986) | (447,040,092) | |
-Remeasurement of the defined benefit liability | (919,548,644) | (919,548,644) | |
-Fixed assets revaluation | 15 | 466,000,658 | 472,508,552 |
Accumulated other comprehensive expense | |||
that may be reclassified through profit or loss | 155,775,993 | 765,430,033 | |
-Change in foreign exchange differences | 155,775,993 | 765,430,033 | |
Restricted reserves | 15 | 210,303,637 | 210,303,637 |
Other reserves | 15 | 71,369,394 | 71,369,394 |
Retained earnings | 15 | 3,688,337,628 | 1,890,456,492 |
Net profit for the period | 1,913,991,445 | 1,187,430,366 | |
Total Equity | 7,398,485,693 | 5,490,205,412 | |
Total Equity and Liabilities | 15,268,682,041 | 13,635,011,931 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
2
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ STATEMENT OF PROFIT OR LOSS AND OTHER COMPHERENSIVE INCOME FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
Reviewed | Not Reviewed | Reviewed | Not Reviewed | ||||
Current Period | Current Period | Previous Period | Previous Period | ||||
1 January - | 1 April - | 1 January - | 1 April - | ||||
Notes | 30 June 2024 | 30 June 2024 | 30 June 2023 | 30 June 2023 | |||
PROFIT OR LOSS | |||||||
Revenue | 16 | 13,891,787,661 | 7,050,311,592 | 13,182,319,369 | 6,776,757,970 | ||
Cost of Sales (-) | 16 | (10,399,030,831) | (4,976,910,961) | (11,887,064,934) | (5,561,196,977) | ||
Gross Profit from Trading Activities | 3,492,756,830 | 2,073,400,631 | 1,295,254,435 | 1,215,560,993 | |||
General administrative expenses (-) | (320,045,564) | (134,808,478) | (282,502,356) | (145,097,221) | |||
Selling, marketing and distribution expenses (-) | (774,538,421) | (370,524,219) | (703,275,570) | (348,506,096) | |||
Research and development expenses (-) | (410,461) | (170,586) | (258,908) | (117,277) | |||
Other income from operating activities | 19 | 371,386,478 | 175,253,103 | 419,513,784 | 265,250,216 | ||
Other expenses from operating activities (-) | 19 | (245,287,780) | (53,913,526) | (1,203,437,988) | (956,812,304) | ||
Profit From Operating Activities | 2,523,861,082 | 1,689,236,925 | (474,706,603) | 30,278,311 | |||
Income from investing activities | -- | -- | 22,091,754 | (7,892,865) | |||
Loss from investing activities (-) | (400,717) | -- | (17,208) | -- | |||
Profit From Operating Activities | |||||||
Before Financial Expense | 2,523,460,365 | 1,689,236,925 | (452,632,057) | 22,385,446 | |||
Finance income | 272,307,297 | 215,059,854 | 331,095,765 | 329,553,291 | |||
Finance expenses (-) | (554,033,349) | (327,959,675) | (703,486,161) | (429,652,850) | |||
Monetary Gain/Loss (-) | 540.472.313 | 178.601.901 | 972,746,538 | (21,449,533) | |||
Profit Before Tax | 2,782,206,626 | 1,754,939,005 | 147,724,085 | (99,163,646) | |||
Tax Expense | |||||||
- Tax income/(expense) for the period | 17 | (860,723,033) | (509,821,244) | -- | -- | ||
-Deferred tax income/(expense) | 17 | (7,492,148) | (53,642,622) | 51,854,133 | 29,707,137 | ||
Profit/(Loss) for the Period from Continuing Operations | 1,913,991,445 | 1,191,475,139 | 199,578,218 | (69,456,509) | |||
Profit/(Loss) for the Period from Discontinued Operations | -- | -- | (66,345,641) | 308,187,081 | |||
Distribution of Net Profit | |||||||
-Parent company | 1,913,991,445 | 1,191,475,139 | 133,232,577 | 238,730,572 | |||
Profit/(Loss) per share | |||||||
Profit/(Loss) per share from continuing operations | 19.1354 | 11.9119 | 1.9953 | (0.6944) | |||
Profit/(Loss) per share from discontinued operations | |||||||
Diluted profit per share from continuing operations | -- | -- | (0.6633) | 3.0811 | |||
OTHER COMPREHENSIVE INCOME | |||||||
That will not be reclassified through profit or loss | -- | -- | -- | -- | |||
-Re-measurement losses of defined benefit plans | |||||||
-Deferred tax income | -- | -- | -- | -- | |||
-Increases/(decreases) in revaluation of property, | |||||||
plant and equipment, net | -- | -- | -- | ||||
-Deferred tax effect of increases/(decreases) | |||||||
in revaluation of property, plant and equipment | -- | -- | -- | -- | |||
That will be reclassified through profit or loss | (5,711,164) | 23,674,994 | 100,228,897 | (278,006,487) | |||
-That will be reclassified through profit or loss | (5,711,164) | 23,674,994 | 76,776,842 | (320,938,297) | |||
-Gains/losses from hedging | -- | -- | 29,315,068 | 53,664,762 | |||
Deferred tax income/(expense) | -- | -- | (5,863,013) | (10,732,952) | |||
Total Other Comprehensive Income | (5,711,164) | 23,674,994 | 100,228,897 | (278,006,487) | |||
Total Comprehensive Income | 1,908,280,281 | 1,215,150,133 | 233,461,474 | (39,275,915) |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
3
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS PERIOD ENDED 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated.)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
Other accumulated | Other accumulated | ||||||||||
comprehensive income and | comprehensive income and | ||||||||||
expenses not to be | expenses to be reclassified in | Retained | |||||||||
reclassified in profit or loss | profit or loss | Earnings | |||||||||
Re-measurement | Change in | ||||||||||
of the defined | foreign | Hedging | Restricted | Net profit/ | |||||||
Paid-in | Capital adjustment | benefit | Revaluation | exchange | gains/ | Other | profit | Retained | (loss) | Total | |
capital | differences | liability | funds | differences | losses | reserves | reserves | earnings | for the period | equity | |
Balance as at 1 January 2024 | 100,023,579 | 1,712,232,003 | (919,548,644) | 472,508,552 | 765,430,033 | -- | 71,369,394 | 210,303,637 | 1,890,456,492 | 1,187,430,366 | 5,490,205,412 |
Transfers | -- | -- | -- | (6,507,894) | (603,942,876 | -- | -- | -- | 1,797,881,136 | (1,187,430,366) | -- |
Total comprehensive income | -- | -- | -- | -- | (5,711,164) | -- | -- | -- | -- | 1,913,991,445 | 1,908,280,281 |
Balance as at 30 June 2024 | 100,023,579 | 1,712,232,003 | (919,548,644) | 466,000,658 | 155,775,993 | -- | 71,369,394 | 210,303,637 | 3,688,337,628 | 1,913,991,445 | 7.398.485.693 |
Balance as of 1 January 2023 | 100,023,579 | 1,712,232,003 | (372,431,636) | 190,024,441 | 1,225,969,516 | (23,452,055) | 5,611,290 | 15,190,838 | 3,363,808,843 | (1,225,727,109) | 4,991,249,710 |
Classification | -- | -- | -- | -- | -- | -- | 65,758,104 | 195,112,799 | (260,870,903) | -- | -- |
Balance as at 1 January 2023 | 100,023,579 | 1,712,232,003 | (372,431,636) | 190,024,441 | 1,225,969,516 | (23,452,055) | 71,369,394 | 210,303,637 | 3,102,937,940 | (1,225,727,109) | 4,991,249,710 |
Transfers | -- | -- | -- | (7,861,885) | -- | -- | -- | -- | (1,217,865,224) | 1,225,727,109 | -- |
Sales impact of subsidiary | (169,907,212) | (169,907,212) | |||||||||
Total comprehensive income | -- | -- | -- | 76,776,842 | 23,452,055 | -- | -- | 133,232,577 | 233,461,474 | ||
Balance as at 30 June2023 | 100,023,579 | 1,712,232,003 | (372,431,636) | 182,162,556 | 1,132,839,146 | -- | 71,369,394 | 210,303,637 | 1,885,072,716 | 133,232,577 | 5,054,803,972 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
4
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ
STATEMENT OF CASH FLOWS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
Reviewed | Reviewed | ||
1 January- | 1 January- | ||
Note | 30 June 2024 | 30 June2023 | |
CASH FLOWS ARISING FROM OPERATING ACTIVITIES | |||
Profit for the Period | 1,913,991,445 | 133,232,577 | |
Profit/(Loss) for the Period from Continuing Operations | 1,913,991,445 | 199,578,218 | |
Profit/(Loss) for the Period from Discontinued Operations | (66,345,641) | ||
Adjustments Regarding Net Profit Reconciliation for the Period: | 1,151,498,605 | (276,813,529) |
Adjustment of Depreciation And Amortization Adjustment of Decrease in Value of Trade Receivables Adjustments for Fair Value (Gains)/Losses of Derivative Financial Instruments
Adjustment of Decrease in Value in Inventories Adjustment of Provisions for Employee Benefits Adjustments for Provisions
Adjustments related to unrealized foreign exchange differences Adjustments for Tax (Income) / Expense
Adjustments for losses and gains from the disposal of assets held for sale Adjustments related to interest expenses
Adjustments related to interest income Inflation Impact on Operating Activities Non-operating Foreign Exchange Gain and Loss
Changes in Working Capital
Change in Trade Receivables
Change in Inventories
Change in Trade Payables
Change in Employee Benefits
Change in Government Grants
Change in Other Assets Regarding Operating Activities
Change in Other Liabilities Regarding Operating Activities
688,313,014 | 820,013,069 | |
(1,189,275) | 401,525 | |
(1,811,364) | (321,806,149) | |
7 | (13,180,190) | (20,421,889) |
(36,506,897) | (46,929,291) | |
(2,447,499) | 2,274,081 | |
-- | -- | |
17 | 868,215,181 | (51,854,133) |
-- | 7,844,674 | |
270,948,791 | 175,625,236 | |
(206,089,651) | (4,470,420) | |
(955,620,967) | (990,588,568) | |
540,867,462 | 153,098,336 | |
640,742,365 | 1,680,655,718 | |
(530,938,361) | (908,202,932) | |
741,617,171 | 1,253,509,734 | |
657,523,649 | 1,009,299,925 | |
43,050,321 | 114,717,366 | |
-- | (3,200,229) | |
(289,202,147) | 148,023,925 | |
18,691,732 | 66,507,929 |
Net Cash Provided from Operating Activities | 3,706,232,415 | 1,537,074,766 | |
Taxes paid | (591,501,612) | 149,526,723 | |
Payments made within the scope of provisions for employment benefits | (43,757,369) | (49,496,167) | |
Net Cash Provided From Operating Activities | 3,070,973,434 | 1,637,105,322 | |
CASH FLOWS FROM INVESTING ACTIVITIES | |||
Proceeds From Sale of Property, Plant, Equipment and Intangible Assets | 4,986,298 | 1,155,465 | |
Acquisition Of Property, Plant, Equipment, and Intangible Assets | (19,230,715) | (276,745,100) | |
Proceeds From Assets Held for Sale | -- | 22,091,754 | |
Proceeds From Sale of Biological Assets | 7,200,024,071 | 8,005,210,825 | |
Acquisition and Physical Change on Biological Assets | 8 | (8,145,575,531) | (8,896,665,757) |
Cash Advances Given and Payables | 8 | 17,978,077 | 178,814,811 |
Net Cash Flows provided from/ (Used in) Investing Activities | (941,817,800) | (966,138,002) | |
CASH FLOWS FROM FINANCING ACTIVITIES | |||
Proceeds from loans | 4 | 909,272,727 | 4,230,150,502 |
Repayment of borrowings | 4 | (956,500,000) | (4,462,207,764) |
Repayment of lease liabilities | (37,421,861) | (11,768,571) | |
Proceeds from other financial borrowings | (7,015,052) | (90,391,141) | |
Interest received | 206,089,651 | 4,470,420 | |
Interest paid | (47,227,273) | (235,530,563) | |
Cash Flows Provided From Financing Activities | 67,198,192 | (565,277,117) | |
NET DECREASE /INCREASE IN CASH AND CASH EQUIVALENTS | |||
BEFORE THE EFFECT OF TRANSLATION DIFFERENCE | 2,196,353,826 | 105,690,203 | |
Effect of Foreign Exchange Differences | (5,711,164) | (93,130,371) | |
Cash and Cash Equivalents | 2,190,642,662 | 12,559,832 | |
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE | |||
PERIOD | 1,491,761,228 | 1,016,048,291 | |
Effects of inflation on cash | (540,867,462) | (153,098,336) | |
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD | 3 | 3,141,536,428 | 875,509,787 |
The accompanying notes are an integral part of these interim condensed consolidated financial statements.
5
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
1 ORGANISATION AND OPERATION OF THE GROUP
Banvit Bandırma Vitaminli Yem Sanayi Anonim Şirketi ("Company" or "Banvit"), was established in Bandırma, Turkey, in 1968. 8.29% of Banvit shares are listed on the Istanbul Stock Exchange ("ISE") (31 December 2023: 8.29%).
The main operations of Banvit are marketing, slaughtering and production of animal feed, breeding eggs, one-day-old chicks, live chickens and processed chickens. Financial statements in this consolidated Statement include the Company and its subsidiaries. In the following sections, the Parent Company and its subsidiaries will be referred to as "Group".
The subsidiaries included in consolidation as of 30 June 2024 and 31 December 2023, their cities of incorporation, nature of businesses and participation rates of the Company are as follows:
Participation Rate | ||||
Country of | Field of | 30 June | 31 December | |
Subsidiary | Subsidiary | 2024 | 2023 | |
Holding | ||||
Nutrinvestments B.V.(*) | Holland | Company | 100% | 100% |
Banvit Enerji ve Elektrik Üretim | Energy | |||
Anonim Şirketi ("Banvit Enerji") (**) | Turkey | production | 100% | 100% |
- The liquidation decision of Nutrinvestment B.V., which is 100% owned by Banvit, was taken as of 31 March 2024, and the liquidation process has not been completed as of 30 June 2024.
-
The liquidation process of Banvit Enerji ve Elektrik Üretim A.Ş., which is 100% owned by Banvit, was initiated as of
4 April 2024, according to the decision made at the general assembly meeting.
Banvit's subsidiary, Nutrinvestments B.V. was established on 18 August 1999 as a holding company in Amsterdam, Holland.
Banvit Energy, a subsidiary of Banvit, obtained the necessary license from the Energy Market Regulatory Authority, for the purpose of establishing, commissioning, leasing a production facility for the conversion of energy resources into electrical energy at production facilities, generating electrical energy, and selling the generated electrical energy and/or capacity to customers. It was established in 14 May 2009 and registered in the trade registry on 5 June 2009. On October 25, 2010, Banvit Energy's license application to the Energy Market Regulatory Authority was finalized and it will be valid until February 22, 2059, with a total facility completion period of 34 months, 16 months for the pre- construction period and 18 months for the construction period. production license has been granted.
1 ORGANISATION AND OPERATION OF THE GROUP (Continued)
As of 30 June 2024, and 31 December 2023, the number of personnel by category is as follows:
30 June 2024 | 31 December 2023 | |
Blue collar | 4,202 | 4,174 |
White collar | 659 | 642 |
Total number of employees | 4,861 | 4,816 |
6
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
The address of the registered office and headquarters of the Company is as follows:
Ömerli Mahallesi, Ömerli Sokak, No: 2/8A 10202 Bandırma - Balıkesir / Turkey Website: http://www.banvit.com/
2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS
2.1 Basis of presentation
Functional Currency and Reporting Currency
These consolidated financial statements are presented in the Company's functional currency, which is the Turkish Lira ("TRY"). The functional currencies of foreign subsidiaries are as follows:
Functional Currency
Nutrinvestments B.V. | European Union Currency ("Avro") |
The financial statements of entities whose functional currency is not TL are prepared in their own function currency and these financial statements are translated to TL for consolidation purposes in accordance with the TAS 21 (The Effects of Changes in Foreign Exchange Rates). The Group has determined its reporting currency as the Turkish Lira for presentation purposes of consolidated financial statements and explanatory notes. All currencies other than the currency selected for measurement of the consolidated financial statement items are foreign currencies.
Foreign currency transactions of related subsidiaries are translated to the functional currency at the actual rates applicable of the transaction date. Monetary assets and liabilities denominated in foreign currencies are translated at the foreign exchange rates valid at the reporting dates. Translation gains and losses related to monetary items represent the difference between the amounts calculated in the functional currency valid at the beginning and the end of the period.
7
(CONVENIENCE TRANSLATION INTO ENGLISH OF FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH)
BANVİT BANDIRMA VİTAMİNLİ YEM SANAYİİ ANONİM ŞİRKETİ
NOTES TO THE FINANCIAL STATEMENTS
FOR THE SIX MONTH PERIOD ENDED 30 JUNE 2024
(Amounts expressed in full of Turkish Lira ("TL") unless otherwise stated)
(The information provided only for comparison purposes is expressed in purchasing power as of 30 June 2024.)
2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS (Continued)
2.1 Basis of preparation (Continued)
Adjustment of financial statements in hyperinflationary periods
The Group has prepared its consolidated financial statements as of June 30, 2024, by applying TAS 29 "Financial Reporting in Hyperinflationary Economies" in accordance with the announcement made by the Public Oversight Authority ("KGK") on November 23, 2023, and the "Implementation Guide on Financial Reporting in High Inflation Economies." According to this standard, financial statements prepared in the currency of a high-inflation economy should be presented in terms of the purchasing power of that currency at the balance sheet date, and comparative information from prior periods should be expressed in terms of the current measurement unit at the end of the reporting period. Therefore, the Group has also presented its consolidated financial statements as of December 31, 2023, based on the purchasing power principle as of June 30, 2024.
In accordance with the CMB's decision dated December 28, 2023 and numbered 81/1820, issuers and capital market institutions subject to financial reporting regulations applying Turkish Accounting/Financial Reporting Standards are required to apply inflation accounting by applying the provisions of TAS 29 to their annual financial statements for the accounting periods ending on December 31, 2023.
The restatements in accordance with TAS 29 have been made using the adjustment factor derived from the Consumer Price Index ("CPI") in Turkey published by the Turkish Statistical Institute. As of December 30, 2024 the indexes and adjustment factors used in the restatement of the consolidated financial statements are as follows:
Three-Year | ||||
Compound Inflation | ||||
Date | Index | Adjustment Factor | Rate | |
30 | June 2024 | 2.319.29 | 1.00000 | 324% |
31 | December 2023 | 1.859.38 | 1.24735 | 268% |
30 | June 2023 | 1.351.59 | 1.71597 | 190% |
The main components of Group's restatement for the purpose of financial reporting in hyperinflationary economies are as follows:
The consolidated financial statements for the current period presented in TL are expressed in terms of the purchasing power at the balance sheet date and the amounts for the previous reporting periods are restated in accordance with the purchasing power at the end of the reporting period.
Monetary assets and liabilities are not restated as they are currently expressed in terms of the purchasing power at the balance sheet date.Where the inflation-adjusted amounts of non-monetary items exceed the recoverable amount or net realizable value, the provisions of TAS 36 and TAS 2 have been applied, respectively.
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