Trafco Group BscBAHRAIN: TRAFCO

2024 Financial Statements – 3rd Quarter (English)

Nov 13, 2024 at 1:04 PM UTC · Issued by Trafco Group Bsc

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

30 SEPTEMBER 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 September 2024, comprising of the related interim condensed consolidated statement of profit or loss and other comprehensive income for the three and nine-month period then ended and the interim condensed consolidated statement of financial position as at 30 September 2024 and the related interim condensed consolidated statements of cash flows and changes in equity for the nine-month period then ended and explanatory notes. The Board of Directors of the Company 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.

13 November 2024

Manama, Kingdom of Bahrain

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 30 September 2024 (Reviewed)

	Nine-month period ended
	30 September
	2024	2023
	BD		BD
OPERATING ACTIVITIES
Profit of the Group for the period	2,423,320	2,258,282
Adjustments for:
Investment income	(1,207,627)	(1,218,580)
Depreciation on property, plant and equipment	727,377	735,994
Depreciation on right-of-use assets	318,599	308,318
Gain on termination of lease	(205)	-
Finance costs	305,991	321,172
Finance costs on lease liabilities	153,260	144,835
Provision for employees' end of service benefits	185,514	173,759
Provision for slow moving and obsolete of inventories	56,136	48,690
Allowance for expected credit losses	156,946	101,389
Amortisation of Government grant	(3,667)	(3,667)
Gain on disposals of property, plant and equipment	(4,047)	(18,120)

Operating profit before changes in working capital	3,111,597	2,852,072
Working capital changes:
Inventories	(1,834,827)	458,389
Trade and other receivables	(1,155,541)	(982,998)
Trade and other payables	11,648	(531,532)
Retention payable	137,140	-
Contract and refund liabilities	151,894	53,172

Net cash flows from operations	421,911	1,849,103
Directors' remuneration paid	(120,000)	(102,500)
Employees' end of service benefits paid	(148,211)	(161,978)

Net cash flows from operating activities	153,700	1,584,625
INVESTING ACTIVITIES

Purchase of property, plant and equipment	(2,268,789)	(1,090,074)
Proceeds from disposals of property, plant and equipment	4,052	21,524
Proceeds from disposals of investment at fair value
through other comprehensive income	357,998	350,680
Purchase of investment at fair value through other comprehensive income	(196,181)	(22,208)
Dividends and interest received	1,207,627	1,218,580

Net cash flows (used in) from investing activities	(895,293)	478,502

Theattached notes 1 to 13 form part of these interim condensed consolidated financial statements. 4

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)

For the period ended 30 September 2024 (Reviewed)

	Nine-month period ended
	30 September
	2024	2023
	BD		BD
FINANCING ACTIVITIES
Dividends paid	(1,261,223)	(1,112,844)
Term loan availed	1,000,000	1,300,000
Repayment of term loan	(723,504)	(497,820)
Import loans availed	10,209,258	8,400,476
Repayment of import loan	(9,610,324)	(9,434,089)
Finance costs paid on loans	(297,422)	(330,700)
Payment of principal portion of lease liabilities	(298,550)	(248,448)
Finance costs paid on lease liabilities	(153,260)	(144,835)

Net cash flows used in financing activities	(1,135,025)	(2,068,260)

NET DECREASE IN CASH AND CASH EQUIVALENTS	(1,876,618)	(5,133)
Foreign currency translation adjustments - net	34,979	(23,360)
Cash and cash equivalents at 1 January	5,038,110	3,142,708

CASH AND CASH EQUIVALENTS AT 30 SEPTEMBER (A)	3,196,471	3,114,215
(A) Cash and cash equivalents comprise of following amounts:


	Nine-month period ended
	30 September
	2024	2023
	BD		BD
Cash, bank balances and short-term deposits	3,333,826	3,193,398
Less: Bank overdrafts	(137,355)	(79,183)

	3,196,471	3,114,215

Theattached notes 1 to 13 form part of these interim condensed consolidated financial statements. 5

Trafco Group B.S.C.

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 30 September 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	-	-	-	-	-	-	-	1,824,401	-	-	1,824,401	1,824,401	598,919	2,423,320
Other comprehensive (loss)
income for the period	-	-	-	-	-	(499)	17,839	-	-	-	17,340	17,340	11,919	29,259
Total comprehensive (loss)

income for the period	-	-	-	-	-	(499)	17,839	1,824,401	-	-	1,841,741	1,841,741	610,838	2,452,579
Dividends paid (note 10)	-	-	-	-	-	-	-	-	-	(1,261,223)	(1,261,223)	(1,261,223)	-	(1,261,223)
Transfer to general reserve	-	-	-	-	50,000	-	-	-	-	(50,000)	-	-	-	-
Gain on disposals of investments
at fair value through other
comprehensive income	-	-	-	-	-	(102,580)	-	102,580	-	-	-	-	-	-

Balance at 30 September 2024	8,067,505	(1,706,644)	3,386,502 4,033,753	1,665,000	8,380,101	(31,420)	6,524,955	496,736	-	21,069,125	30,816,488	6,014,483	36,830,971


									Attributable to shareholders of Trafco Group B.S.C.
															Reserves
											Fair value		Foreign		Retained		Retained			Total	Non-
	Share		Treasury		Share		Statutory		General		and other		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	-	-	-	-	-	-	-	1,650,342	-	-	1,650,342	1,650,342	607,940	2,258,282
Other comprehensive loss
for the period	-	-	-	-	-	(54,685)	(11,914)	-	-	-	(66,599)	(66,599)	(14,169)	(80,768)
Total comprehensive (loss)

income for the period	-	-	-	-	-	(54,685)	(11,914)	1,650,342	-	-	1,583,743	1,583,743	593,771	2,177,514
Dividends paid (note 10)	-	-	-	-	-	-	-	-	-	(1,112,844)	(1,112,844)	(1,112,844)	-	(1,112,844)
Transfer to general reserve	-	-	-	-	50,000	-	-	-	-	(50,000)	-	-	-	-
Gain on disposals of investments
at fair value through other
comprehensive income	-	-	-	-	-	(108,600)	-	108,600	-	-	-	-	-	-

Balance at 30 September 2023	8,067,505	(1,706,644)	3,386,502	4,033,753	1,615,000	7,176,690	(49,962)	5,806,575	496,736	-	19,078,792	28,826,155	5,513,209	34,339,364

The attached notes 1 to 13 form part of these interim condensed consolidated financial statements.

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 30 September 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 13 November 2024.

2 MATERIAL ACCOUNTING POLICIES

Basis of preparation

The interim condensed consolidated financial statements for the nine-month period ended 30 September 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 nine-month period ended 30 September 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 September 2024 (Reviewed)

4 REVENUE FROM CONTRACTS WITH CUSTOMERS

The following table presents the disaggregation of the Group's revenue for the three-month periods ended 30 September 2024 and 30 September 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	3,591,233	3,322,104	319,972	246,622	6,090,799	5,992,694	334,821			463,153	-			-	786,926	1,039,445	11,123,751			11,064,018
Rendering of services	-	-	-	-	-	-	-			-	149,408			165,316	-	-	149,408			165,316

	3,591,233	3,322,104	319,972	246,622	6,090,799	5,992,694	334,821			463,153	149,408			165,316	786,926	1,039,445	11,273,159			11,229,334
Geographic markets


Bahrain	3,591,233	3,322,104	319,972	246,622	4,652,840	4,447,726	334,821			463,153	149,408			165,316	786,926	1,039,445	9,835,200			9,684,366
Kuwait and other countries	-	-	-	-	1,437,959	1,544,968	-			-	-			-	-	-	1,437,959			1,544,968

	3,591,233	3,322,104	319,972	246,622	6,090,799	5,992,694	334,821			463,153	149,408			165,316	786,926	1,039,445	11,273,159			11,229,334
Timing of revenue recognition


At a point in time	3,591,233	3,322,104	319,972	246,622	6,090,799	5,992,694	334,821			463,153	-			-	786,926	1,039,445	11,123,751			11,064,018
Over the time	-	-	-	-	-	-	-			-	149,408			165,316	-	-	149,408			165,316

	3,591,233	3,322,104	319,972	246,622	6,090,799	5,992,694	334,821			463,153	149,408			165,316	786,926	1,039,445	11,273,159			11,229,334

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

										Dairy products and		Fruits and		Storage and		Livestock
	Wholesale operations			Retail operations		beverages		vegetables		logistics							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	11,202,659	10,829,878	1,049,440	802,744	18,317,960	17,224,121	1,274,534	1,509,220	-			-	3,438,446	3,975,280	35,283,039			34,341,243
Rendering of services	-	-	-	-	-	-	-	-	442,710			496,872	-	-	442,710			496,872

	11,202,659	10,829,878	1,049,440	802,744	18,317,960	17,224,121	1,274,534	1,509,220	442,710			496,872	3,438,446	3,975,280	35,725,749			34,838,115
Geographic markets


Bahrain	11,202,659	10,829,878	1,049,440	802,744	14,001,322	12,941,822	1,274,534	1,509,220	442,710			496,872	3,438,446	3,975,280	31,409,111			30,555,816
Kuwait and other countries	-	-	-	-	4,316,638	4,282,299	-	-	-			-	-	-	4,316,638			4,282,299

	11,202,659	10,829,878	1,049,440	802,744	18,317,960	17,224,121	1,274,534	1,509,220	442,710			496,872	3,438,446	3,975,280	35,725,749			34,838,115
Timing of revenue recognition


At a point in time	11,202,659	10,829,878	1,049,440	802,744	18,317,960	17,224,121	1,274,534	1,509,220	-			-	3,438,446	3,975,280	35,283,039			34,341,243
Over the time	-	-	-	-	-	-	-	-	442,710			496,872	-	-	442,710			496,872

	11,202,659	10,829,878	1,049,440	802,744	18,317,960	17,224,121	1,274,534	1,509,220	442,710			496,872	3,438,446	3,975,280	35,725,749			34,838,115

_______________________________________________________________________________________________________________________________________________________________________________________________________

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 30 September 2024 (Reviewed)

5 SEASONALITY OF RESULTS

Investment income for the nine-month period ended 30 September 2024 amounting to BD 1,207,627 (2023: BD 1,218,580) is of seasonal nature.

6 EARNINGS PER SHARE

Basic earnings per share is calculated by dividing the profit for the period attributable to shareholders of Trafco Group B.S.C. by the weighted average number of ordinary shares outstanding during the period, excluding the average number of ordinary shares purchased by the Company and held as treasury shares, as follows:

	Three-month period ended			Nine-month period ended
	30 September (Reviewed)			30 September (Reviewed)
	2024	2023		2024	2023
Profit for the period attributable to
shareholders of TRAFCO - (BD)	263,385	269,261	1,824,401	1,650,342
Weighted average number of shares,


net of treasury shares	74,197,577	74,197,577	74,197,577	74,197,577


Basic and diluted earnings per share (fils)	4	4	25	22

Basic and diluted earnings per share are the same as the Company has not issued any instruments that would have a dilutive effect.

7 BOOK VALUE AND FAIR VALUE PER SHARE

Book value per share is calculated by dividing the equity as at period end attributable to shareholders of Trafco Group B.S.C. by the weighted average number of ordinary shares outstanding during the period, excluding the average number of ordinary shares purchased by the Company and held as treasury shares, as follows:

	Nine months
	period ended		Year ended
	30 September 31 December
	2024	2023
	(Reviewed)		(Audited)
	BD		BD
Equity as at period/year end attributable to
shareholders of TRAFCO - (BD)	30,816,488	30,235,970
Weighted average number of shares,


net of treasury shares	74,197,577	74,197,577


Book value per share (fils)	415	408
Market value per share (fils)*

300	270

Market value per share is derived from Bahrain Bourse

____________________________________________________________________________________________

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