CONVENIENCE TRANSLATION INTO ENGLISH OF CONSOLIDATED FINANCIAL STATEMENTS ORIGINALLY ISSUED IN TURKISH
ANADOLU EFES BİRACILIK VE
MALT SANAYİİ ANONİM ŞİRKETİ AND ITS SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31, 2023
TOGETHER WITH INDEPENDENT AUDITOR'S REPORT
CONVENIENCE TRANSLATION INTO ENGLISH OF
INDEPENDENT AUDITOR'S REPORT
ORIGINALLY ISSUED IN TURKISH
INDEPENDENT AUDITOR'S REPORT
To the General Assembly of Anadolu Efes Biracılık ve Malt Sanayii A.Ş.
- Audit of the consolidated financial statements
1. Our opinion
We have audited the accompanying consolidated financial statements of Anadolu Efes Biracılık ve Malt Sanayii A.Ş. (the "Company") and its subsidiaries (collectively referred to as the "Group") which comprise the consolidated statement of financial position as at 31 December 2023, the consolidated statement of profit or loss, the consolidated statement of other comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended and notes to the consolidated financial statements comprising a summary of significant accounting policies.
In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Group as at 31 December 2023, and its financial performance and its cash flows for the year then ended in accordance with Turkish Financial Reporting Standards ("TFRS").
2. Basis for opinion
Our audit was conducted in accordance with the Standards on Independent Auditing (the "SIA") that are part of Turkish Standards on Auditing adopted within the framework of the regulations of the Capital Markets Board and issued by the Public Oversight Accounting and Auditing Standards Authority (the "POA"). Our responsibilities under these standards are further described in the "Auditor's Responsibilities for the Audit of the Consolidated Financial Statements" section of our report. We hereby declare that we are independent of the Group in accordance with the Ethical Rules for Independent Auditors (including Independence Standards) (the "Ethical Rules") the ethical requirements regarding independent audit in regulations issued by the POA; the regulations of the Capital Markets Board; and other relevant legislation are relevant to our audit of the financial statements. We have also fulfilled our other ethical responsibilities in accordance with the Ethical Rules and regulations. We believe that the audit evidence we have obtained during the independent audit provides a sufficient and appropriate basis for our opinion.
PwC Bağımsız Denetim ve Serbest Muhasebeci Mali Müşavirlik A.Ş.
Kılıçali Paşa Mah. Meclis-i Mebusan Cad. No:8 İç Kapı No:301 Beyoğlu/İstanbul
T: +90 212 326 6060, F: +90 212 326 6050, www.pwc.com.tr | Mersis Numaramız: 0-1460-0224-0500015 |
3. Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. Key audit matters were addressed in the context of our independent audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key Audit Matters | How the key audit matter was addressed in |
the audit | |
Impairment Testing of Goodwill and | |
Intangible Assets | |
The carrying value of bottling rights, license | We performed the following auditing procedures in |
agreements, brands and goodwill which are | relation to the impairment tests of indefinite lived |
accounted for under intangible assets amounted to | intangible assets and goodwill: |
TRY70,491,315 thousand, TRY17,900,020, | |
TRY2,691,273 and TRY12,580,245 thousand, | • Evaluating the appropriateness of the Cash |
respectively, in the consolidated financial statements | Generating Units ("CGUs") determined by |
as of 31 December 2023. In accordance with TFRS, | management, |
these indefinite-life intangible assets should be | |
tested for impairment annually. | • Evaluating management forecasts and future |
plans based on macroeconomic information for | |
Bottling rights, license agreements, brands and | each relevant CGU, |
goodwill are material to the consolidated financial | |
statements. In addition, significant judgements and | • Comparing forecasted cash flows for each CGU |
estimates are used in the impairment tests | with its historical financial performance, |
performed by management. These are, for goodwill | |
impairment tests; earnings before interest, tax, | • Through involvement of our valuation specialists, |
depreciation and amortization ("EBITDA") growth | assessing the reasonableness of key assumptions, |
forecasts, long term growth rates and discount rates | including long term growth rates, discount rates |
and in addition to these, royalty rates used in the | and benchmarking these against rates used in the |
relief from royalty method for the brand impairment | industry, |
tests. The outcome of such estimates is very sensitive | |
to changes in market conditions. Therefore, these | • Testing of the setup of the discounted cash flow |
impairment tests are key matters for our audit. | models and their mathematical accuracy, |
Please refer to notes 2 and 16 of the consolidated | • Assessing management's sensitivity analysis for |
financial statements for the relevant disclosures, | key assumptions, |
including the accounting policy and sensitivity | |
analysis. | • Testing of the disclosures in the consolidated |
financial statements in relation to indefinite-life | |
intangible assets and evaluating the adequacy of | |
these disclosures for TFRS' requirements. | |
Key Audit Matters | How the key audit matter was addressed in |
the audit | |
Application of TAS 29 - Financial Reporting | |
in Hyperinflationary Economies | |
The Group has applied TAS 29 "Financial reporting | We performed the following auditing procedures in |
in hyperinflationary economies" ("TAS 29") in its | relation to the application of TAS 29: |
consolidated financial statements as at and for the | |
year ending 31 December 2023. | • Understanding and evaluating the process and |
controls related to the implementation of TAS 29 | |
TAS 29 requires financial statements to be restated | designed and implemented by management, |
at the current purchasing power at the end of the | |
reporting period. Therefore, transactions in 2023 | • Verifying whether the determination of monetary |
and non-monetary balances at the end of the period | and non-monetary items made by the |
were restated to reflect the changes in the price | management is in compliance with TAS 29, |
index as of the balance sheet date, | |
31 December 2023. The application of TAS 29 has a | • Obtaining detailed lists of non-monetary items |
pervasive and material impact on the consolidated | and testing the original entry dates and amounts |
financial statements. Considering the risk of | on a sample basis, |
inaccurate or incomplete data used in the | |
application of TAS 29 and the additional associated | • Evaluating the calculation methods used by |
audit effort, the application of TAS 29 has been | management and verifying whether they are |
identified as a key audit matter for our audit. | consistently used consistently in all periods, |
Disclosures regarding the application of TAS 29 are | • Verifying the general price index rates used in |
provided in Note 2. | calculations with the coefficients obtained from |
the Consumer Price Index in Turkey published by | |
the Turkish Statistical Institute, | |
• Testing the mathematical accuracy of non- | |
monetary items, income statement, and cash flow | |
statement adjusted for inflation effects, | |
• Evaluating the adequacy of disclosures related to | |
the application of TAS 29 in the notes to the | |
consolidated financial statements in accordance | |
with TFRS, | |
4. Responsibilities of management and those charged with governance for the consolidated financial statements
The Group management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with TFRS, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
5. Auditor's responsibilities for the audit of the consolidated financial statements
Responsibilities of independent auditors in an independent audit are as follows:
Our aim is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an independent auditor's report that includes our opinion. Reasonable assurance expressed as a result of an independent audit conducted in accordance with SIA is a high level of assurance but does not guarantee that a material misstatement will always be detected. Misstatements can arise from fraud or error. Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an independent audit conducted in accordance with SIA, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement in the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Assess the internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our independent auditor's report. However, future events or conditions may cause the Group to cease to continue as a going concern.
- Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence. We also communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
- Other responsibilities arising from regulatory requirements
-
No matter has come to our attention that is significant according to subparagraph 4 of Article 402 of
Turkish Commercial Code ("TCC") No. 6102 and that causes us to believe that the Anadolu Efes
Biracılık ve Malt Sanayii A.Ş.'s bookkeeping activities concerning the period from 1 January to 31
December 2023 period are not in compliance with the TCC and provisions of the Company's articles of association related to financial reporting. - In accordance with subparagraph 4 of Article 402 of the TCC, the Board of Directors submitted the necessary explanations to us and provided the documents required within the context of our audit.
-
In accordance with subparagraph 4 of Article 398 of the TCC, the auditor's report on the early risk identification system and committee was submitted to the Company's Board of Directors on
21 March 2024.
PwC Bağımsız Denetim ve
Serbest Muhasebeci Mali Müşavirlik A.Ş.
Salim Alyanak, SMMM
Independent Auditor
Istanbul, 21 March 2024
Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi
CONSOLIDATED FINANCIAL STATEMENTS AS AT DECEMBER 31, 2023 | ||
TABLE OF CONTENTS | ||
Page | ||
Consolidated Statement of Financial Position | 1-2 | |
Consolidated Statement of Profit or Loss | 3 | |
Consolidated Statement of Other Comprehensive Income | 4 | |
Consolidated Statement of Changes in Equity | 5 | |
Consolidated Statement of Cash Flows | 6 | |
Notes to the Consolidated Financial Statements | 7-74 | |
Note 1 | Group's Organization and Nature of Activities | 7-9 |
Note 2 | Basis of Presentation of Consolidated Financial Statements | 9-28 |
Note 3 | Business Combinations | 29-30 |
Note 4 | Information About Material Non-Controlling Interests in Subsidiaries and | |
Investments Accounted for Using Equity Method | 31-32 | |
Note 5 | Segment Reporting | 33-34 |
Note 6 | Cash and Cash Equivalents | 35 |
Note 7 | Financial Investments | 35 |
Note 8 | Short and Long Term Borrowings | 35-38 |
Note 9 | Derivative Instruments | 38-42 |
Note 10 Trade Receivables and Payables | 43 | |
Note 11 | Other Receivables and Payables | 43-44 |
Note 12 | Inventories | 44 |
Note 13 | Prepaid Expenses and Deferred Income | 45 |
Note 14 | Right-of-Use Assets | 46-47 |
Note 15 | Property, Plant and Equipment | 48-49 |
Note 16 | Intangible Assets | 50-52 |
Note 17 | Commitments and Contingencies | 52-54 |
Note 18 | Employee Benefits Obligations | 54 |
Note 19 Current and Non-Current Provisions | 55-56 | |
Note 20 | Other Assets and Liabilities | 56-57 |
Note 21 | Equity, Reserves and Other Equity Items | 57-58 |
Note 22 | Revenue and Cost of Sales | 59 |
Note 23 | Operating Expenses……………………………………………………............... ........................................ 59 | |
Note 24 Expenses by Nature | 60 | |
Note 25 | Other Income / Expenses from Operating Activities | 60 |
Note 26 | Investment Activity Income / Expense | 61 |
Note 27 | Finance Income / Expense | 61 |
Note 28 | Income Tax (Including Deferred Tax) | 62-64 |
Note 29 Earnings per Share | 65 | |
Note 30 | Related Party Balance and Transactions | 65-66 |
Note 31 | Financial Instruments and Financial Risk Management | 67-71 |
Note 32 | Financial Instruments (Fair Value and Hedge Accounting Disclosures) | 72 |
Note 33 | Explanatory Information on Statement of Cash Flows | 73-74 |
Note 34 | Fees for Services from Independent Audit Firms | 74 |
Note 35 | Events After Reporting Period | 74 |
Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2023
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at December 31, 2023 unless otherwise indicated)
Audited | |||||
Notes | December 31, 2023 | December 31, 2022 | |||
ASSETS | |||||
Cash and Cash Equivalents | 6 | 41.271.909 | 39.326.756 | ||
Financial Investments | 7 | 375.768 | 1.252.823 | ||
Trade Receivables | 10 | 15.380.815 | 12.989.626 | ||
- Trade Receivables from Related Parties | 30 | 1.529.428 | 1.362.117 | ||
- Trade Receivables from Third Parties | 13.851.387 | 11.627.509 | |||
Other Receivables | 11 | 460.364 | 1.278.724 | ||
- Other Receivables from Related Parties | 30 | 239.457 | 1.180.650 | ||
- Other Receivables from Third Parties | 220.907 | 98.074 | |||
Derivative Financial Assets | 9 | 165.707 | 36.469 | ||
Inventories | 12 | 24.877.917 | 23.545.932 | ||
Prepaid Expenses | 13 | 4.291.104 | 4.101.595 | ||
- Prepaid Expenses to Related Parties | - | 169.747 | |||
- Prepaid Expenses to Third Parties | 4.291.104 | 3.931.848 | |||
Current Tax Assets | 28 | 1.112.133 | 860.557 | ||
Other Current Assets | 20 | 2.192.417 | 2.433.755 | ||
- Other Current Assets from Third Parties | 2.192.417 | 2.433.755 | |||
Current Assets | 90.128.134 | 85.826.237 | |||
Financial Investments | 10.881 | 10.994 | |||
Trade Receivables | 10 | 1.299 | 3.154 | ||
- Trade Receivables from Third Parties | 1.299 | 3.154 | |||
Other Receivables | 11 | 398.302 | 217.294 | ||
- Other Receivables from Related Parties | 30 | 33.274 | 41.508 | ||
- Other Receivables from Third Parties | 365.028 | 175.786 | |||
Derivative Financial Assets | 9 | 33.437 | 25.093 | ||
Assets Due to Investments Accounted for Using | 4 | 490 | 441.811 | ||
Equity Method | |||||
57.615.105 | 56.948.154 | ||||
Property, Plant and Equipment | 15 | ||||
Right-of-Use Assets | 14 | 2.041.941 | 1.426.694 | ||
Intangible Assets | 106.035.031 | 117.698.883 | |||
- Goodwill | 16 | 12.580.245 | 16.435.415 | ||
- Other Intangible Assets | 16 | 93.454.786 | 101.263.468 | ||
Prepaid Expenses | 13 | 2.867.958 | 1.614.089 | ||
Deferred Tax Asset | 28 | 6.074.969 | 4.029.598 | ||
Other Non-Current Assets | 20 | 18.139 | 2.569 | ||
Non-Current Assets | 175.097.552 | 182.418.333 | |||
TOTAL ASSETS | 265.225.686 | 268.244.570 | |||
The accompanying notes form an integral part of these consolidated financial statements.
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Convenience Translation into English of Consolidated Financial Statements Originally Issued in Turkish Anadolu Efes Biracılık ve Malt Sanayii Anonim Şirketi
CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31, 2023
(Amounts expressed in thousands of Turkish Lira ("TRL") in terms of the purchasing power of the TRL at December 31, 2023 unless otherwise indicated)
Audited | ||||||
Notes | December 31, 2023 | December 31, 2022 | ||||
LIABILITIES | ||||||
Current Borrowings | 11.082.902 | 12.217.904 | ||||
- Current Borrowings from Third Parties | 11.082.902 | 12.217.904 | ||||
- | Banks Loans | 8a | 9.805.327 | 12.217.401 | ||
- | Lease Liabilities | 8b | - | 503 | ||
- | Issued Debt Instruments | 8a | 1.277.575 | - | ||
Current Portion of Non-Current Borrowings | 11.705.513 | 7.340.808 | ||||
- Current Portion of Non-Current Borrowings from Third Parties | 11.705.513 | 7.340.808 | ||||
- | Banks Loans | 8a | 1.449.455 | 1.285.908 | ||
- | Lease Liabilities | 8b | 640.171 | 453.991 | ||
- | Issued Debt Instruments | 8a | 9.615.887 | 5.600.909 | ||
Other Financial Liabilities | 8c | 1.080.032 | 115.135 | |||
Trade Payables | 10 | 33.059.364 | 33.008.881 | |||
- Trade Payables to Related Parties | 30 | 1.239.263 | 2.024.444 | |||
- Trade Payables to Third Parties | 31.820.101 | 30.984.437 | ||||
Employee Benefit Obligations | 18 | 891.063 | 943.808 | |||
Other Payables | 11 | 17.075.016 | 11.747.921 | |||
- Other Payables to Related Parties | 30 | 3.191.240 | 3.150.295 | |||
- Other Payables to Third Parties | 13.883.776 | 8.597.626 | ||||
Derivative Financial Liabilities | 9 | 279.468 | 502.665 | |||
Deferred Income | 13 | 775.245 | 650.732 | |||
Current Tax Liabilities | 28 | 591.269 | 451.539 | |||
Current Provisions | 1.787.560 | 2.155.840 | ||||
- Current Provisions for Employee Benefits | 19 | 865.009 | 985.382 | |||
- Other Current Provisions | 19 | 922.551 | 1.170.458 | |||
Other Current Liabilities | 20 | 169.966 | 123.706 | |||
Current Liabilities | 78.497.398 | 69.258.939 | ||||
Long-Term Borrowings | 36.279.757 | 42.350.057 | ||||
- Long-term Borrowings from Third Parties | 36.279.757 | 42.350.057 | ||||
- | Banks Loans | 8a | 1.972.937 | 1.738.273 | ||
- | Lease Liabilities | 8b | 1.066.584 | 1.036.231 | ||
- | Issued Debt Instruments | 8a | 33.240.236 | 39.575.553 | ||
Other Long-Term Financial Liabilities | 8c | 85.404 | - | |||
Trade Payables | 10 | 2.131 | 198 | |||
- Trade Payables to Third Parties | 2.131 | 198 | ||||
Employee Benefit Obligations | 18 | 84.504 | - | |||
Other Payables | 11 | 10.795 | 13.543 | |||
- Other Payables to Third Parties | 10.795 | 13.543 | ||||
Derivative Financial Liabilities | 9 | 2.965 | 898.487 | |||
Deferred Income | 13 | 44.507 | 90.824 | |||
Non-Current Provision | 19 | 993.321 | 1.433.390 | |||
- Non-Current Provision for Employee Benefits | 993.321 | 1.433.390 | ||||
Deferred Tax Liabilities | 28 | 19.346.530 | 19.464.722 | |||
Other Non-Current Liabilities | 20 | 479 | 9.192 | |||
Non-Current Liabilities | 56.850.393 | 64.260.413 | ||||
Equity Attributable to Equity Holders of the Parent | 21 | 64.557.722 | 64.532.601 | |||
Issued Capital | 592.105 | 592.105 | ||||
Inflation Adjustment on Capital | 21 | 8.052.910 | 8.052.910 | |||
Share Premium (Discount) | 21 | 1.440.655 | 1.440.655 | |||
Other Accumulated Comprehensive Income (Loss) that | (211.552) | (231.491) | ||||
will not be Reclassified in Profit or Loss | ||||||
(211.552) | (231.491) | |||||
-Revaluation and Remeasurement Gain/ (Loss) | ||||||
Other Accumulated Comprehensive Income (Loss) that | (7.205.786) | 9.359.672 | ||||
will be Reclassified in Profit or Loss | ||||||
24.023.187 | 31.791.514 | |||||
- Currency Translation Differences | ||||||
- Gains (Losses) on Hedge | 21 | (31.228.973) | (22.431.842) | |||
Restricted Reserves Appropriated from Profits | 3.619.531 | 3.546.198 | ||||
Prior Years' Profits or Losses | 36.140.920 | 26.388.363 | ||||
Current Period Net Profit or Losses | 22.128.939 | 15.384.189 | ||||
Non-Controlling Interests | 4 | 65.320.173 | 70.192.617 | |||
Total Equity | 129.877.895 | 134.725.218 | ||||
TOTAL LIABILITIES | 265.225.686 | 268.244.570 | ||||
The accompanying notes form an integral part of these consolidated financial statements.
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Anadolu Efes Biracilik Ve Malt Sanayii AS published this content on 21 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 March 2024 21:17:21 UTC.