Trafco Group BscBAHRAIN: TRAFCO

2024 Financial Statements - 2nd Quarter (English)

Aug 8, 2024 at 1:28 PM UTC · Issued by Trafco Group Bsc

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 JUNE 2024 (REVIEWED)

REPORT ON THE REVIEW OF THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS TO THE BOARD OF DIRECTORS OF TRAFCO GROUP B.S.C.

Introduction

We have reviewed the accompanying interim condensed consolidated financial statements of Trafco Group B.S.C. ("the Company") and its subsidiaries (together "the Group") as at 30 June 2024, comprising of the related interim consolidated statement of profit or loss and other comprehensive income for the three and six-month periods then ended and interim consolidated statement of financial position as at 30 June 2024 and the related interim consolidated statements of cash flows and changes in equity for the six-month period then ended and explanatory notes. The Group's Board of Directors is responsible for the preparation and presentation of these interim condensed consolidated financial statements in accordance with International Accounting Standard 34 ('IAS 34') "Interim Financial Reporting ". Our responsibility is to express a conclusion on these interim condensed consolidated financial statements based on our review.

Scope of review

We conducted our review in accordance with the 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 statements are not prepared, in all material respects, in accordance with IAS 34.

8 August 2024

Manama, Kingdom of Bahrain

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 June 2024 (Reviewed)

	Six-month period ended
	30 June
	2024	2023
	BD		BD
OPERATING ACTIVITIES
Profit of the Group for the period	1,952,965	1,765,707
Adjustments for:
Investment income	(1,056,211)	(1,075,709)
Depreciation on property, plant and equipment	487,931	489,522
Depreciation on right-of-use assets	211,331	202,865
Finance costs	202,952	235,357
Finance costs on lease liabilities	102,605	97,006
Provision for employees' end of service benefits	123,042	104,282
Provision for slow moving and obsolete of inventories	55,569	30,152
Allowance for expected credit losses	120,161	64,055
Gain on disposals of property, plant and equipment	-	(12,288)

Operating profit before changes in working capital	2,200,345	1,900,949
Working capital changes:
Inventories	(236,407)	(242,431)
Trade and other receivables	(1,631,189)	(1,821,458)
Trade and other payables	46,380	(950,963)
Retention payable	117,190	-
Contract and refund liabilities	110,545	62,735

Net cash generated from (used in) operations	606,864	(1,051,168)
Directors' remuneration paid	(120,000)	(102,500)
Employees' end of service benefits paid	(91,600)	(91,706)

Net cash flows generated from (used in) from operating activities	395,264	(1,245,374)
INVESTING ACTIVITIES

Additions to property, plant and equipment	(1,668,230)	(575,928)
Proceeds from disposals of property, plant and equipment	-	14,584
Proceeds from disposals of investment at fair value
through other comprehensive income	358,011	344,581
Additions to investment at fair value through other comprehensive income	(178,088)	(22,211)
Dividends and interest received	1,056,211	1,075,709

Net cash flows (used in) generated from investing activities	(432,096)	836,735
FINANCING ACTIVITIES

Dividends paid	(1,261,223)	(1,112,844)
Term loans availed	1,000,000	1,300,000
Repayment of term loan	(462,292)	(316,531)
Import loans availed	6,014,898	6,465,801
Repayment of import loan	(5,406,222)	(6,565,713)
Finance costs paid on loans	(177,953)	(224,318)
Payment of principal portion of lease liabilities	(245,415)	(230,567)
Finance costs paid on lease liabilities	(102,605)	(97,006)

Net cash flows used in financing activities	(640,812)	(781,178)

NET DECREASE IN CASH AND CASH EQUIVALENTS	(677,644)	(1,189,817)
Foreign currency translation adjustments - net	(10,470)	(1,720)
Cash and cash equivalents at 1 January	5,038,110	3,142,708

CASH AND CASH EQUIVALENTS AT 30 JUNE (A)	4,349,996	1,951,171

Theattached notes 1 to 12 form part of these interim condensed consolidated financial statements. 4

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

For the period ended 30 June 2024 (Reviewed)

(A) Cash and cash equivalents comprise of following amounts:
	Six-month period ended
	30 June
	2024	2023
	BD		BD
Cash, bank balances and short-term deposits	4,513,832	3,368,706
Less: Bank overdrafts	(163,836)	(1,417,535)

	4,349,996	1,951,171

Theattached notes 1 to 12 form part of these interim condensed consolidated financial statements. 5

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 June 2024 (Reviewed)

Attributable to shareholders of Trafco Group B.S.C.

															Reserves
													Foreign		Retained	Retained			Total	Non-
	Share		Treasury		Share		Statutory		General		Fair value		currency		earnings -	earnings non-	Proposed	Total	Trafco's	controlling	Total
	capital		shares		premium		reserve		reserve		reserves		reserves		distributable	distributable	appropriations	reserves	shareholders	interests	equity
	BD		BD		BD		BD		BD		BD		BD		BD	BD	BD	BD	BD	BD	BD
Balance at 1 January 2024	8,067,505	(1,706,644)	3,386,502	4,033,753	1,615,000	8,483,180	(49,259)	4,597,974	496,736	1,311,223	20,488,607	30,235,970	5,403,645	35,639,615
Profit for the period	-	-	-	-	-	-	-	1,561,016	-	-	1,561,016	1,561,016	391,949	1,952,965
Other comprehensive income (loss) for the period	-	-	-	-	-	23,828	(5,340)	-	-	-	18,488	18,488	(6,826)	11,662

Total comprehensive income (loss) for the period	-	-	-	-	-	23,828	(5,340)	1,561,016	-	-	1,579,504	1,579,504	385,123	1,964,627
Dividends (note 9)	-	-	-	-	-	-	-	-	-	(1,261,223)	(1,261,223)	(1,261,223)	-	(1,261,223)
Transfer to general reserve	-	-	-	-	50,000	-	-	-	-	(50,000)	-	-	-	-
Gain on disposal of investment at fair value
through other comprehensive income	-	-	-	-	-	(102,580)	-	102,580	-	-	-	-	-	-

Balance at 30 June 2024	8,067,505	(1,706,644)	3,386,502	4,033,753	1,665,000	8,404,428	(54,599)	6,261,570	496,736	-	20,806,888	30,554,251	5,788,768	36,343,019


									Attributable to shareholders of Trafco Group B.S.C.
															Reserves
													Foreign		Retained	Retained			Total	Non-
	Share		Treasury		Share		Statutory		General		Fair value		currency		earnings -	earnings non-	Proposed	Total	Trafco's	controlling	Total
	capital		shares		premium		reserve		reserve		reserves		reserves		distributable	distributable	appropriations	reserves	shareholders	interests	equity
	BD		BD		BD		BD		BD		BD		BD		BD	BD	BD	BD	BD	BD	BD
Balance at 1 January 2023	8,067,505	(1,706,644)	3,386,502	4,033,753	1,565,000	7,339,975	(38,048)	4,047,633	496,736	1,162,844	18,607,893	28,355,256	4,919,438	33,274,694
Profit for the period	-	-	-	-	-	-	-	1,381,081	-	-	1,381,081	1,381,081	384,626	1,765,707
Other comprehensive income (loss) for the period	-	-	-	-	-	301,582	(877)	-	-	-	300,705	300,705	4,596	305,301

Total comprehensive income (loss) for the period	-	-	-	-	-	301,582	(877)	1,381,081	-	-	1,681,786	1,681,786	389,222	2,071,008
Dividends (note 9)	-	-	-	-	-	-	-	-	-	(1,112,844)	(1,112,844)	(1,112,844)	-	(1,112,844)
Transfer to general reserve	-	-	-	-	50,000	-	-	-	-	(50,000)	-	-	-	-
Gain on disposal of investment at fair value
through other comprehensive income	-	-	-	-	-	(107,888)	-	107,888	-	-	-	-	-	-

Balance at 30 June 2023	8,067,505	(1,706,644)	3,386,502	4,033,753	1,615,000	7,533,669	(38,925)	5,536,602	496,736	-	19,176,835	28,924,198	5,308,660	34,232,858

The attached notes 1 to 12 form part of these interim condensed consolidated financial statements.

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 30 June 2024 (Reviewed)

1 CORPORATE INFORMATION

Trafco Group B.S.C. ('the Company' or 'Trafco') is a public joint stock company, the shares of which are listed and publicly traded on Bahrain Bourse. The Company was incorporated in the Kingdom of Bahrain by Amiri Decree No. 10 of November 1977. The Company operates in accordance with the provisions of the Bahrain Commercial Companies Law under commercial registration (CR) number 8500 issued by the Ministry of Industry and Commerce on 9 April 1978. The Company's registered office is situated at Building 117, Road 42, Block 343, Mina Salman Industrial Area, Kingdom of Bahrain. The Company's principal activity is trading in food products.

The Group comprises of the Company and its subsidiaries. The details of Company's subsidiaries and an associate are disclosed in the Group's annual consolidated financial statements for the year ended 31 December 2023.

The interim condensed consolidated financial statements were authorised for issue by the Board of Directors on 8 August 2024.

2 MATERIAL ACCOUNTING POLICIES

Basis of preparation

The interim condensed consolidated financial statements for the six-month period ended 30 June 2024 have been prepared in accordance with International Accounting Standard (IAS 34) "Interim Financial Reporting".

The interim condensed consolidated financial statements do not contain all information and disclosures required for full consolidated financial statements prepared in accordance with International Financial Reporting Standards, and should be read in conjunction with the Group's annual consolidated financial statements for the year ended 31 December 2023.The Group has prepared the interim condensed consolidated financial statements on the basis that it will continue to operate as a going concern. In addition, 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.

New standards, interpretations and amendments adopted by the Group

The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2023, except for the new and amended standards effective as of 1 January 2024. The Group has not early adopted any other standard, interpretation or amendment that has been issued but is not yet effective.

The following amendment applies for the first time in 2024, but do not have an impact on the interim condensed consolidated financial statements of the Group.

IAS 7 and IFRS 7 - Supplier Finance Arrangements
IFRS 16 - Lease liability in a sales and leaseback
IAS 1 - Classification of liabilities as current and non-current

3 SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

The significant accounting judgements and estimates used in the preparation of the interim condensed consolidated financial statements are consistent with those used in the preparation of the Group's annual consolidated financial statements for the year ended 31 December 2023.

________________________________________________________________________________________

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 30 June 2024 (Reviewed)

4 REVENUE

The following table presents the disaggregation of the Group's revenue for the three-month periods ended 30 June 2024 and 30 June 2023:

										Dairy products and		Fruits and		Storage and
	Wholesale operations			Retail operations		beverages		vegetables		logistics		Livestock		Total
	2024	2023			2024	2023		2024	2023		2024	2023		2024	2023		2024	2023	2024		2023
	BD		BD			BD		BD		BD		BD		BD		BD		BD	BD	BD		BD	BD	BD
Types of revenue
Sale of goods	3,764,928	3,325,688	411,374	281,846	6,029,798	5,747,442	362,638	546,875	-	-	1,230,123	1,471,144	11,798,861			11,372,995
Rendering of services	-	-	-	-	-	-	-	-	144,652	165,969	-	-	144,652			165,969

	3,764,928	3,325,688	411,374	281,846	6,029,798	5,747,442	362,638	546,875	144,652	165,969	1,230,123	1,471,144	11,943,513			11,538,964
Geographic markets


Bahrain	3,764,928	3,325,688	411,374	281,846	4,558,965	4,323,779	362,638	546,875	144,652	165,969	1,230,123	1,471,144	10,472,680			10,115,301
Kuwait and Saudi Arabia	-	-	-	-	1,470,833	1,423,663	-	-	-	-	-	-	1,470,833			1,423,663

	3,764,928	3,325,688	411,374	281,846	6,029,798	5,747,442	362,638	546,875	144,652	165,969	1,230,123	1,471,144	11,943,513			11,538,964
Timing of revenue recognition


At a point in time	3,764,928	3,325,688	411,374	281,846	6,029,798	5,747,442	362,638	546,875	-	-	1,230,123	1,471,144	11,798,861			11,372,995
Over the time	-	-	-	-	-	-	-	-	144,652	165,969	-	-	144,652			165,969

	3,764,928	3,325,688	411,374	281,846	6,029,798	5,747,442	362,638	546,875	144,652	165,969	1,230,123	1,471,144	11,943,513			11,538,964

__________________________________________________________________________________________________________________________________________________________________________________________

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 30 June 2024 (Reviewed)

4 REVENUE (continued)

The following table presents the disaggregation of the Group's revenue for the six-month periods ended 30 June 2024 and 30 June 2023:

										Dairy products and		Fruits and		Storage and
	Wholesale operations			Retail operations		beverages		vegetables		logistics		Livestock		Total
	2024	2023			2024	2023		2024	2023		2024	2023		2024	2023		2024	2023	2024		2023
	BD		BD			BD		BD		BD		BD		BD		BD		BD	BD	BD		BD	BD	BD
Types of revenue
Sale of goods	7,611,426	7,507,774	729,468	556,122	12,227,161	11,231,427	939,713	1,046,067	-	-	2,651,520	2,935,835	24,159,288			23,277,225
Rendering of services	-	-	-	-	-	-	-	-	293,302	331,556	-	-	293,302			331,556

	7,611,426	7,507,774	729,468	556,122	12,227,161	11,231,427	939,713	1,046,067	293,302	331,556	2,651,520	2,935,835	24,452,590			23,608,781
Geographic markets


Bahrain	7,611,426	7,507,774	729,468	556,122	9,348,482	8,494,096	939,713	1,046,067	293,302	331,556	2,651,520	2,935,835	21,573,911			20,871,450
Kuwait and Saudi Arabia	-	-	-	-	2,878,679	2,737,331	-	-	-	-	-	-	2,878,679			2,737,331

	7,611,426	7,507,774	729,468	556,122	12,227,161	11,231,427	939,713	1,046,067	293,302	331,556	2,651,520	2,935,835	24,452,590			23,608,781
Timing of revenue recognition


At a point in time	7,611,426	7,507,774	729,468	556,122	12,227,161	11,231,427	939,713	1,046,067	-	-	2,651,520	2,935,835	24,159,288			23,277,225
Over the time	-	-	-	-	-	-	-	-	293,302	331,556	-	-	293,302			331,556

	7,611,426	7,507,774	729,468	556,122	12,227,161	11,231,427	939,713	1,046,067	293,302	331,556	2,651,520	2,935,835	24,452,590			23,608,781

__________________________________________________________________________________________________________________________________________________________________________________________

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