2025 Financial Statements – 1st Quarter (English)

INTERIM CONDENSED CONSOLIDATED

FINANCIAL STATEMENTS

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 31 March 2025, comprising of the interim consolidated statement of financial position as at 31 March 2025 and the related interim consolidated statements of profit or loss and other comprehensive income, cash flows and changes in equity for the three-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.

Auditor's Registration No. 295

14 May 2025

Manama, Kingdom of Bahrain

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS

For the period ended 31 March 2025 (Reviewed)

Three-month period ended

31 March

2025

2024

BD

BD

OPERATING ACTIVITIES

Profit of the Group for the period

Adjustments for:

Investment income

Depreciation of property, plant and equipment

Depreciation of right-of-use assets

Finance costs on lease liabilities

Other finance costs

Provision for employees' end of service benefits

Provision for slow moving and obsolete of inventories

Amortization of Government grant

Allowance for expected credit losses

(761,985)

(698,843)

272,603

246,468

109,241

104,983

50,556

51,456

123,762

95,123

68,905

59,305

7,476

16,335

(1,673)

-

31,718

38,222

Operating profit before changes in working capital

Working capital changes:

Inventories

Right of return assets

Trade and other receivables

Trade and other payables

Retention payable

Contract and refund liabilities

680,304

11,408

1,767

(990)

(1,125,233)

(2,440,868)

(67,315)

924,930

(125,445)

79,470

40,460

87,739

Net cash used in operations

Directors' remuneration paid

Employees' end of service benefits paid

(19,724) (270,319)

(119,925) (119,925)

(97,538) (23,447)

INVESTING ACTIVITIES

Additions to property, plant and equipment

Purchase of investments at fair value through other comprehensive income

Proceeds from disposals of investments at fair value through

other comprehensive income

Dividends and interest received

(264,207)

-

(1,132,056)

(56,631)

39,556 -

344,181 344,913

FINANCING ACTIVITIES

Import loans availed

Repayment of import loan

Finance costs paid

Repayment of term loan

Payment of principal portion of lease liabilities

Finance costs paid on lease liabilities

2,703,938

2,964,527

(1,998,740)

(2,530,206)

(108,255)

(85,087)

(263,190)

(209,296)

(199,156)

(190,195)

(50,556)

(51,456)

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (continued)

For the period ended 31 March 2025 (Reviewed)

Three-month period ended

31 March

2025

2024

BD

BD

NET DECREASE IN CASH AND CASH EQUIVALENTS

Foreign currency translation adjustments - net

Cash and cash equivalents at 1 January

(33,616) (1,359,178)

(16,551) (554)

610,861 5,038,110

(A)

Cash and cash equivalents comprise of following amounts:

Cash, bank balances and short-term deposits

Less: Bank overdrafts

2,194,802 3,678,378

(1,634,108) -

Trafco Group B.S.C.

INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the period ended 31 March 2025 (Reviewed)

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

Reserves

Retained

Foreign

Retained

earnings

Share

Treasury

Share

Statutory

General

Fair value

currency

earnings -

non-

Proposed

Total

Shareholders'

capital

shares

premium

reserve

reserve

reserve

reserve

distributable

distributable

appropriations

reserves

equity

BD

BD

BD

BD

BD

BD

BD

BD

BD

BD

BD

BD

Non-

controlling

interests

BD

Total

equity

BD

Non-

controlling

interests

BD

5,403,645

196,867

Total

equity

BD

35,639,615

1,154,943

Balance at 1 January 2025

8,067,505

Profit for the period

-

Other comprehensive income

for the period

-

Total comprehensive income

for the period

-

Dividends (note 10)

-

Transfer to general reserve

-

Transfer of fair value reserve of

investment at fair value through

other comprehensive income

-

Balance at 31 March 2025

8,067,505

-

-

-

-

-

-

-

-

-

46,852

-

-

(8,441)

-

-

-

-

-

620,266

(1,335,413)

-

620,266

(1,335,413)

-

96,778

-

-

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

Reserves

Retained

Foreign

Retained

earnings

Share

Treasury

Share

Statutory

General

Fair value

currency

earnings -

non-

Proposed

Total

Shareholders'

capital

shares

premium

reserve

reserve

reserve

reserve

distributable

distributable

appropriations

reserves

equity

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

Profit for the period

-

-

-

-

-

-

-

958,076

-

-

958,076

958,076

Other comprehensive income

for the period

-

-

-

-

-

100,911

(283)

-

-

-

100,628

100,628

Total comprehensive income

for the period

-

-

-

-

-

100,911

(283)

958,076

-

-

1,058,704

1,058,704

Dividends (note 10)

(1,261,223)

(1,261,223)

(1,261,223)

Transfer to general reserve

-

-

-

-

50,000

-

-

-

-

(50,000)

-

-

Balance at 31 March 2024

8,067,505

(1,706,644)

3,386,502

4,033,753

1,665,000

8,584,091

(49,542)

5,556,050

496,736

-

20,286,088

30,033,451

(1,706,644)

3,386,502

4,033,753

1,665,000

6,815,322

(47,083)

5,142,474

496,736

1,385,413

19,491,615

29,238,978

5,777,254

35,016,232

-

-

-

-

-

-

581,855

-

-

581,855

581,855

93,280

675,135

-

-

-

-

46,852

(8,441)

-

-

-

38,411

38,411

3,498

41,909

-

581,855

-

717,044

-

-

(1,335,413)

(1,335,413)

50,000

-

(50,000)

-

-

-

-

-

(1,543)

-

1,543

-

-

-

-

-

-

(1,706,644)

3,386,502

4,033,753

1,715,000

6,860,631

(55,524)

5,725,872

496,736

-

18,776,468

28,523,831

5,874,032

34,397,863

210,750

-

-

5,614,395

1,269,454

(1,261,223)

-

35,647,846

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

1

CORPORATE INFORMATION

2

MATERIAL ACCOUNTING POLICIES

Basis of preparation

The interim condensed consolidated financial statements have been prepared in accordance with

International Accounting Standard (IAS) 34, "Interim Financial Reporting".

Amended standard 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 2024, except for the new and amended standards and interpretations effective as of 1 January 2025. The Group has not early adopted any other standard, interpretation or

amendment that has been issued but is not yet effective.

-

Amendments to IAS 21 - Lack of exchangeability: In August 2023, the IASB issued these amendments to IAS 21 to specify how an entity should assess whether a currency is exchangeable and how it should determine a spot exchange rate when exchangeability is lacking. The amendments also require disclosure of information that enables users of its financial statements to understand how the currency not being exchangeable into the other currency affects, or is expected to affect, the

entity's financial performance, financial position and cash flows.

3

SIGNIFICANT ACCOUNTING JUDGEMENTS AND ESTIMATES

4

REVENUE FROM CONTRACTS WITH CUSTOMERS

Wholesale operations beverages vegetables logistics Livestock Total

2025

2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024

BD

BD BD BD BD BD BD BD BD BD BD BD

Types of revenue

Sale of goods

Rendering of services

- 1,149,058 1,421,397

148,650 - -

4,164,592 5,427,748 6,197,363 336,092 577,075 -

- - - - - 161,216

Geographic markets

Bahrain

Other GCC countries

3,784,934

-

4,164,592

-

4,232,072

1,195,676

4,789,517

1,407,846

336,092

-

577,075

-

161,216

-

148,650

-

1,149,058

-

1,421,397

-

9,663,372

1,195,676

11,101,231

1,407,846

Timing of revenue recognition

Goods transferred at a

point in time

Services transferred over time

- 1,149,058 1,421,397

148,650 - -

4,164,592 5,427,748 6,197,363 336,092 577,075 -

- - - - - 161,216

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

5

SEASONALITY OF RESULTS

6

EARNINGS PER SHARE

Three-month period ended

31 March (Reviewed)

2025

2024

7

BOOK VALUE AND FAIR VALUE PER SHARE

Three months

period ended

31 March

2025

(Reviewed)

BD

Year ended

31 December

2024

(Audited)

BD

Equity as at period/year end attributable to

shareholders of TRAFCO - (BD)

Weighted average number of shares,

net of treasury shares

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

8

FINANCIAL INSTRUMENTS

Fair value

through other

comprehensive

income

BD

Amortised

cost

BD

Total

BD

Financial assets

At 31 March 2025 (Reviewed)

Investments at fair value through other comprehensive income

Trade and other receivables

Bank balances and cash

-

13,508,110

2,194,802

14,240,401

-

-

14,240,401

13,508,110

2,194,802

Fair value

through other

comprehensive

income Total

BD BD

Amortised

cost

BD

Financial assets

At 31 December 2024 (Audited)

Investments at fair value through other comprehensive income

Trade and other receivables

Bank balances and cash

-

11,996,791

1,764,512

14,221,497

-

-

14,221,497

11,996,791

1,764,512

31 March

2025

(Reviewed)

BD

31 December

2024

(Audited)

BD

Financial liabilities at amortised cost

Trade and other payables

Import loans

Lease liabilities

Bank overdrafts

Term loans

8,480,531

7,316,851

3,602,070

2,896,872

3,484,886

3,672,366

1,634,108

1,153,651

2,964,012

3,227,202

9

FAIR VALUE MEASUREMENT

Fair value of financial instruments

The fair value of financial instruments carried at amortized cost approximate to their fair value due to following:

a)

Bank balances and cash, bank overdrafts, trade and other receivables and trade and other payables approximate their carrying amounts largely due to the short-term maturities.

b)

Term loans, import loans and lease liabilities are evaluated by the Group based on market interest rates.

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

9

FAIR VALUE MEASUREMENT (continued)

c)

Fair value of quoted equity investments is derived from quoted market prices in active markets or in the case of unquoted investments at fair value through other comprehensive income using fair value provided by the investment managers or other appropriate valuation techniques including fair values determined

based on unobservable inputs using market multiples or other appropriate valuation methodologies.

Fair value hierarchy

All assets and liabilities for which fair value is measured or disclosed in the interim condensed consolidated financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

-

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

-

Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable; and

-

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

31 March 2025 (Reviewed)

Quoted prices

Significant

Significant

in active

observable

unobservable

markets

inputs

inputs

Level 1

Level 2

Level 3

Total

BD

BD

BD

BD

Assets measured at fair value

Investments at fair value through

other comprehensive income:

- Quoted equity investments

- Unquoted equity investments

9,341,521

-

-

-

-

4,898,880

9,341,521

4,898,880

31 December 2024 (Audited)

Quoted prices

Significant

Significant

in active

observable

unobservable

markets

inputs

inputs

Level 1

Level 2

Level 3

Total

BD

BD

BD

BD

Assets measured at fair value

Investments at fair value through

other comprehensive income:

- Quoted equity investments

- Unquoted equity investments

9,104,603

-

-

-

-

5,116,894

9,104,603

5,116,894

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

9

FAIR VALUE MEASUREMENT (continued)

Fair value hierarchy (continued)

During the three-month period ended 31 March 2025 and year ended 31 December 2024, there were no transfers between Level 1 and Level 2 fair value measurements, and there are no transfers into or out of Level 3 fair value measurements.

Reconciliation of fair value measurement of Level 3 assets

Level 3 equity investments have been estimated using fair value provided by the investment managers or other

appropriate valuation techniques including fair values determined based on unobservable inputs using market multiples or other appropriate valuation methodologies.

31 March

2025

(Reviewed)

BD

31 December

2024

(Audited)

BD

At beginning of the period / year

Net changes in fair value

Disposal

5,116,894 6,470,827

(178,458) (1,337,433)

(39,556) (16,500)

At end of the period / year

4,898,880

5,116,894

10

DIVIDENDS

At the annual general meeting of the shareholders held on 26 March 2025, a final cash dividend of 18 fils per share, excluding treasury shares, totaling BD 1,335,413 for the year ended 31 December 2024 was declared. (31 March 2024: At the annual general meeting of the shareholders held on 27 March 2024, a final cash dividend of 17 fils per share, excluding treasury shares, totaling BD 1,261,223 for the year ended 31 December 2023 was declared. Dividend payable are included with 'Trade and other payables' in the interim consolidated statement of financial position as at 31 March 2025.

11

COMMITMENTS AND CONTINGENCIES

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

12

SEGMENT REPORTING

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

12

SEGMENT REPORTING (continued)

1,421,397

-

-

(238,261)

1,421,397

(238,261)

Costs of revenue (excluding

depreciation)

(3,400,542)

(1,264,289)

157,489

157,108

(80,772)

3,077

(13,752)

Other expenses (excluding

depreciation)

(462,076)

(159,580)

44,854

Wholesale operations

2025

2024

BD

BD

Investments

2025

2024

BD

BD

Dairy products and

beverages

2025

2024

BD

BD

Fruits and

vegetables

2025

2024

BD

BD

Storage and logistics

2025

2024

BD

BD

Livestock

2025

2024

BD

BD

Adjustments and

eliminations

2025

2024

BD

BD

Total

2025

2024

BD

BD

Revenue - third parties

3,784,934

4,164,592

-

-

5,427,748

6,197,363

336,092

577,075

161,216

148,650

1,149,058

-

10,859,048

12,509,077

Revenue - inter segments

107,507

75,642

-

-

32,573

23,212

7,718

26,768

83,288

69,367

7,175

(194,989)

-

-

Total revenue

3,892,441

4,240,234

-

-

5,460,321

6,220,575

343,810

603,843

244,504

218,017

1,156,233

(194,989)

10,859,048

12,509,077

(3,550,114)

-

-

(4,113,578)

(4,680,943)

(303,209)

(492,259)

(70,483)

(49,593)

(1,048,714)

123,045

(8,779,037)

(9,914,153)

Gross profit

491,899

690,120

-

-

1,346,743

1,539,632

40,601

111,584

174,021

168,424

107,519

(71,944)

2,080,011

2,594,924

Other operating income

14,859

14,258

-

-

40,600

19,041

31,786

19,733

2,417

1,788

2,022

(9,642)

77,932

48,255

(495,882)

-

-

(1,043,360)

(982,547)

(63,099)

(75,540)

(22,197)

(19,783)

(153,527)

29,297

(1,699,405)

(1,704,035)

(27,534)

(29,515)

-

-

(116,981)

(125,689)

(10,093)

(10,176)

(111,469)

(75,364)

(2,399)

(4,127)

(272,603)

(246,468)

Depreciation on right-of-use of assets

(35,568)

(35,140)

-

-

(75,495)

(72,067)

(4,951)

(4,750)

(12,288)

(12,288)

(2,976)

22,037

(109,241)

(104,983)

Profit from operations

(18,420)

143,841

-

-

151,507

378,370

(5,756)

40,851

30,484

62,777

(49,361)

(34,379)

76,694

587,693

Investment income

-

-

839,821

1,047,146

-

-

-

-

-

-

-

(348,303)

761,985

698,843

Other finance costs

(105,630)

(79,056)

-

-

(11,221)

(1,311)

(9,891)

(9,865)

(48,319)

(7,808)

7,807

(123,762)

(95,123)

Finance costs on lease liabilities

(30,875)

(30,648)

-

-

(27,830)

(28,767)

(5,156)

(5,252)

(16,584)

(16,755)

30,255

(50,556)

(51,456)

Foreign exchange gains, net

-

-

-

-

10,774

14,986

-

-

-

-

-

-

10,774

14,986

34,137

839,821

1,047,146

123,230

363,278

(20,803)

25,734

(34,419)

38,214

(50,781)

(344,620)

675,135

1,154,943

Capital expenditure

(2,768,729)

800,525

-

-

198,676

309,526

4,000

19,400

-

-

2,830,260

-

264,207

1,132,056

Depreciation on property, plant

and equipment

(1,597)

(4,127)

(2,775)

22,037

(3,767)

(31,760)

-

(77,836)

(1,366)

-

(54)

(4,890)

52,665

(289)

29,943

-

-

(Loss) Profit for the period

(154,925)

(8,946)

(26,988)

2,605

-

Wholesale operations

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Investments

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Dairy products and

beverages

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Fruits and

vegetables

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Storage and logistics

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Livestock

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Adjustments and

eliminations

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

Total

31 March

31 December

2025

2024

(Reviewed)

(Audited)

BD

BD

3,430,452

(18,434,628)

687,519

(6,066,375)

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

13

RELATED PARTY TRANSACTIONS AND BALANCES

Three-month period ended

31 March 2025 (Reviewed)

Other

Purchases of

operating and

General and

goods and

investment

administrative

Revenue

services

income

expenses

BD

BD

BD

BD

Three-month period ended

31 March 2024 (Reviewed)

Other

Purchases of

operating and

General and

goods and

investment

administrative

Revenue

services

income

expenses

BD

BD

BD

BD

At 31 March 2025

At 31 December 2024

(Reviewed)

(Audited)

Due from

Due to

Due from Due to

related

related

related related

parties

parties

parties parties

BD

BD

BD BD

Terms and conditions

Transactions are made at prices agreed mutually with the related parties. Outstanding balances at the period-end and year-end arose in the normal course of business are unsecured, interest free and settlement occurs in cash.

Trafco Group B.S.C.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

At 31 March 2025 (Reviewed)

13

RELATED PARTY TRANSACTIONS AND BALANCES (continued)

Compensation of directors and key management personnel

The remuneration of directors and other members of key management personnel during three-month period

ended was as follows:

Three-month period ended

31 March (Reviewed)

2025

2024

BD

BD

Short-term benefits

Employees' end of service benefits

117,245

2,266