Trafco Group B.S.C.
INTERIM CONDENSED CONSOLIDATED
FINANCIAL STATEMENTS
31 MARCH 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 31 March 2024, comprising of the interim consolidated statement of financial position as at 31 March 2024 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. 45
12 May 2024
Manama, Kingdom of Bahrain
Trafco Group B.S.C.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS
For the period ended 31 March 2024 (Reviewed)
Three-month period ended | |||
31 March | |||
2024 | 2023 | ||
BD | BD | ||
OPERATING ACTIVITIES | |||
Profit of the Group for the period | 1,154,943 | 1,080,936 | |
Adjustments for: | |||
Investment income | (698,843) | (734,331) | |
Depreciation of property, plant and equipment | 246,468 | 244,516 | |
Depreciation of right-of-use assets | 104,983 | 99,401 | |
Finance costs on lease liabilities | 51,456 | 47,766 | |
Other finance costs | 95,123 | 110,517 | |
Provision for employees' end of service benefits | 59,305 | 46,439 | |
Provision for slow moving and obsolete of inventories | 16,335 | 17,587 | |
Allowance for expected credit losses | 38,222 | 32,200 | |
Operating profit before changes in working capital | 1,067,992 | 945,031 | |
Working capital changes: | |||
Inventories | 11,408 | (196,592) | |
Right of return assets | (990) | (2,314) | |
Trade and other receivables | (2,440,868) | (1,547,144) | |
Trade and other payables | 924,930 | (103,591) | |
Retention payable | 79,470 | - | |
Contract and refund liabilities | 87,739 | 56,087 | |
Net cash used in operations | (270,319) | (848,523) | |
Directors' remuneration paid | (119,925) | (102,500) | |
Employees' end of service benefits paid | (23,447) | (18,811) | |
Net cash flows used in operating activities | (413,691) | (969,834) | |
INVESTING ACTIVITIES | |||
Additions to property, plant and equipment | (1,132,056) | (107,912) | |
Purchase of investments at fair value through other comprehensive income | (56,631) | (22,208) | |
Proceeds from disposals of investments at fair value through | |||
other comprehensive income | - | 73,687 | |
Dividends and interest received | 344,913 | 325,189 | |
Net cash flows (used in)/from investing activities | (843,774) | 268,756 | |
FINANCING ACTIVITIES | |||
Import loans availed | 2,964,527 | 3,744,187 | |
Repayment of import loan | (2,530,206) | (3,261,862) | |
Finance costs paid | (85,087) | (103,020) | |
Term loan availed | - | 1,300,000 | |
Repayment of term loan | (209,296) | (136,171) | |
Payment of principal portion of lease liabilities | (190,195) | (177,013) | |
Finance costs paid on lease liabilities | (51,456) | (47,766) | |
Net cash flows (used in)/from financing activities | (101,713) | 1,318,355 | |
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 31 March 2024 (Reviewed)
Three-month period ended | |||
31 March | |||
2024 | 2023 | ||
BD | BD | ||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (1,359,178) | 617,277 | |
Foreign currency translation adjustments - net | (554) | 4,258 | |
Cash and cash equivalents at 1 January | 5,038,110 | 3,142,708 | |
CASH AND CASH EQUIVALENTS AT 31 MARCH (A) | 3,678,378 | 3,764,243 | |
(A) Cash and cash equivalents comprise of following amounts: | |||
Cash, bank balances and short-term deposits | 3,678,378 | 4,406,259 | |
Less: Bank overdrafts | - | (642,016) | |
3,678,378 | 3,764,243 | ||
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 31 March 2024 (Reviewed)
Attributable to the shareholders of Trafco Group B.S.C. | |||||||||||||||||||||||||||
Reserves | |||||||||||||||||||||||||||
Retained | |||||||||||||||||||||||||||
Foreign | Retained | earnings | Non- | ||||||||||||||||||||||||
Share | Treasury | Share | Statutory | General | Fair value | currency | earnings - | non- | Proposed | Total | Shareholders' | controlling | Total | ||||||||||||||
capital | shares | premium | reserve | reserve | reserve | reserve | distributable | distributable | appropriations | reserves | equity | 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 | - | - | - | - | - | - | - | 958,076 | - | - | 958,076 | 958,076 | 196,867 | 1,154,943 | |||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||
for the period | - | - | - | - | - | 100,911 | (283) | - | - | - | 100,628 | 100,628 | 13,883 | 114,511 | |||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||
for the period | - | - | - | - | - | 100,911 | (283) | 958,076 | - | - | 1,058,704 | 1,058,704 | 210,750 | 1,269,454 | |||||||||||||
Dividends (note 9) | - | - | - | - | - | - | - | - | - | (1,261,223) | (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 | 5,614,395 | 35,647,846 | |||||||||||||
Attributable to the shareholders of Trafco Group B.S.C. | |||||||||||||||||||||||||||
Reserves | |||||||||||||||||||||||||||
Retained | |||||||||||||||||||||||||||
Foreign | Retained | earnings | Non- | ||||||||||||||||||||||||
Share | Treasury | Share | Statutory | General | Fair value | currency | earnings - | non- | Proposed | Total | Shareholders' | controlling | Total | ||||||||||||||
capital | shares | premium | reserve | reserve | reserve | reserve | distributable | distributable | appropriations | reserves | equity | 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 | - | - | - | - | - | - | - | 880,183 | - | - | 880,183 | 880,183 | 200,753 | 1,080,936 | |||||||||||||
Other comprehensive income | |||||||||||||||||||||||||||
for the period | - | - | - | - | - | 265,334 | 2,172 | - | - | - | 267,506 | 267,506 | 12,755 | 280,261 | |||||||||||||
Total comprehensive income | |||||||||||||||||||||||||||
for the period | - | - | - | - | - | 265,334 | 2,172 | 880,183 | - | - | 1,147,689 | 1,147,689 | 213,508 | 1,361,197 | |||||||||||||
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 investments | |||||||||||||||||||||||||||
at fair value through other | |||||||||||||||||||||||||||
comprehensive income | - | - | - | - | - | (50,072) | - | 50,072 | - | - | - | - | - | - | |||||||||||||
Balance at 31 March 2023 | 8,067,505 | (1,706,644) | 3,386,502 | 4,033,753 | 1,615,000 | 7,555,237 | (35,876) | 4,977,888 | 496,736 | - | 18,642,738 | 28,390,101 | 5,132,946 | 33,523,047 | |||||||||||||
The attached notes 1 to 12 form part of these interim condensed consolidated financial statements.
6
Trafco Group B.S.C.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 31 March 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. 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 authorized for issue by the Board of Directors on 12 May 2024.
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".
The interim condensed consolidated financial statements do not contain all information and disclosures required in the annual 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. In addition, results for the three months period ended 31 March 2024 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2024.
New and amended standards and interpretations 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 and interpretations 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 sale and leaseback
- IAS 1 - Classification of liabilities as current and non-current
3 MATERIAL 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.
________________________________________________________________________________________
7
Trafco Group B.S.C.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
At 31 March 2024 (Reviewed)
4 REVENUE
The following table presents the disaggregation of the Group's revenue for the three-month periods ended 31 March 2024 and 31 March 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 | 3,846,498 | 4,182,086 | 318,094 | 274,276 | 6,197,363 | 5,483,985 | 577,075 | 499,192 | - | - | 1,421,397 | 1,464,691 | 12,360,427 | 11,904,230 | |||||||||||||||
Rendering of services | - | - | - | - | - | - | - | - | 148,650 | 165,587 | - | - | 148,650 | 165,587 | |||||||||||||||
3,846,498 | 4,182,086 | 318,094 | 274,276 | 6,197,363 | 5,483,985 | 577,075 | 499,192 | 148,650 | 165,587 | 1,421,397 | 1,464,691 | 12,509,077 | 12,069,817 | ||||||||||||||||
Geographic markets | |||||||||||||||||||||||||||||
Bahrain | 3,846,498 | 4,182,086 | 318,094 | 274,276 | 4,789,517 | 4,170,317 | 577,075 | 499,192 | 148,650 | 165,587 | 1,421,397 | 1,464,691 | 11,101,231 | 10,756,149 | |||||||||||||||
Other GCC countries | - | - | - | - | 1,407,846 | 1,313,668 | - | - | - | - | - | - | 1,407,846 | 1,313,668 | |||||||||||||||
3,846,498 | 4,182,086 | 318,094 | 274,276 | 6,197,363 | 5,483,985 | 577,075 | 499,192 | 148,650 | 165,587 | 1,421,397 | 1,464,691 | 12,509,077 | 12,069,817 | ||||||||||||||||
Timing of revenue recognition | |||||||||||||||||||||||||||||
Goods transferred at a | |||||||||||||||||||||||||||||
point in time | 3,846,498 | 4,182,086 | 318,094 | 274,276 | 6,197,363 | 5,483,985 | 577,075 | 499,192 | - | - | 1,421,397 | 1,464,691 | 12,360,427 | 11,904,230 | |||||||||||||||
Services transferred over time | - | - | - | - | - | - | - | - | 148,650 | 165,587 | - | - | 148,650 | 165,587 | |||||||||||||||
3,846,498 | 4,182,086 | 318,094 | 274,276 | 6,197,363 | 5,483,985 | 577,075 | 499,192 | 148,650 | 165,587 | 1,421,397 | 1,464,691 | 12,509,077 | 12,069,817 | ||||||||||||||||
_______________________________________________________________________________________________________________________________________________________________________________________________
8
Trafco Group B.S.C.
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
As at 31 March 2024 (Reviewed)
5 SEASONALITY OF RESULTS
Investment income for the three-month period ended 31 March 2024 amounting to BD 698,843 (2023: BD 734,331) is of a seasonal nature.
6 EARNINGS PER SHARE
The 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 | |||
31 March (Reviewed) | |||
2024 | 2023 | ||
Profit for the period attributable to shareholders of Trafco - (BD) | 958,076 | 880,183 | |
Weighted average number of shares, net of treasury shares | |||
74,197,575 | 74,197,575 | ||
Basic and diluted earnings per share (fils) | 13 | 12 | |
Basic and diluted earnings per share are the same as the Company has not issued any instruments that would have a dilutive effect.
7 FINANCIAL INSTRUMENTS
Set out below is an overview of the financial instruments held by the Group as at 31 March 2024 and 31 December 2023:
Fair value | |||||
through other | |||||
Amortised comprehensive | |||||
cost | income | Total | |||
Financial assets | BD | BD | BD | ||
At 31 March 2024 (Reviewed) | |||||
Investments at fair value through other comprehensive income | - | 16,132,457 | 16,132,457 | ||
Trade and other receivables | 13,433,228 | - | 13,433,228 | ||
Bank balances and cash | 3,678,378 | - | 3,678,378 | ||
17,111,606 | 16,132,457 | 33,244,063 | |||
Fair value | |||||
through other | |||||
Amortised | comprehensive | ||||
cost | income | Total | |||
Financial assets | BD | BD | BD | ||
At 31 December 2023 (Audited) | |||||
Investments at fair value through other comprehensive income | - | 15,960,759 | 15,960,759 | ||
Trade and other receivables | 10,676,652 | - | 10,676,652 | ||
Bank balances and cash | 5,460,262 | - | 5,460,262 | ||
16,136,914 | 15,960,759 | 32,097,673 | |||
____________________________________________________________________________________________
9
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Trafco Group BSC published this content on 12 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 12 May 2024 13:49:06 UTC.