Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
2
Contents
Statement of financial position..................................................................................................................................... 4
Statement of profit or loss and other comprehensive income ...................................................................................... 5
Statement of changes in equity .................................................................................................................................... 6
Cash flow statement ..................................................................................................................................................... 7
Accounting policy and other explanatory notes ............................................................................................................ 8
1. General information .......................................................................................................................................... 8
2. Summary of significant accounting policies ...................................................................................................... 9
2.1 Basic of preparation ...................................................................................................................................... 9
2.2 Effect of new standards and interpretations on the Company’s financial statements .............................. 10
2.3 Interest in subsidiaries ................................................................................................................................ 12
2.4 Segment reporting ...................................................................................................................................... 12
2.5 Valuation of items denominated in foreign currencies .............................................................................. 12
2.6 Property, plant and equipment .................................................................................................................. 13
2.7 Intangible assets ......................................................................................................................................... 14
2.8 Leases .......................................................................................................................................................... 14
2.9 Impairment on non-financial non-current assets ....................................................................................... 15
2.10 Borrowing costs .......................................................................................................................................... 15
2.11 Financial assets ........................................................................................................................................... 15
2.12 Impairment of financial assets .................................................................................................................... 16
2.13 Inventory ..................................................................................................................................................... 17
2.14 Cash and cash equivalents .......................................................................................................................... 17
2.15 Equity .......................................................................................................................................................... 17
2.16 Bank loan liabilities ..................................................................................................................................... 18
2.17 Trade and other payables ........................................................................................................................... 18
2.18 Current and deferred income tax ............................................................................................................... 18
2.19 Liabilities from employee benefits .............................................................................................................. 19
2.20 Provisions .................................................................................................................................................... 19
2.21 Recognition of revenue ............................................................................................................................... 20
2.22 Dividends .................................................................................................................................................... 20
3. Foreign currencies used in preparation of these financial statement .............................................................. 21
4. Material accounting estimates and judgements ............................................................................................. 21
5. Financial risk management .............................................................................................................................. 22
5.1 Market risk .................................................................................................................................................. 23
5.2 Credit risk .................................................................................................................................................... 24
5.3 Liquidity risk ................................................................................................................................................ 25
5.4 Capital management ................................................................................................................................... 28
6. Financial instruments ....................................................................................................................................... 28
7. Property, plant and equipment ........................................................................................................................ 29
8. Intangible assets .............................................................................................................................................. 31
9. Right-of-use assets ........................................................................................................................................... 32
10. Investments in subsidiaries .............................................................................................................................. 33
11. Inventory .......................................................................................................................................................... 35
12. Trade and other short-term receivables .......................................................................................................... 35
13. Cash and cash equivalents ............................................................................................................................... 37
14. Additional explanation to cash flow statement ............................................................................................... 38
15. Share capital .................................................................................................................................................... 39
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
3
16. Retained earnings and dividend per share ...................................................................................................... 39
17. Loans and borrowings liabilities ...................................................................................................................... 40
18. Trade and other payables ................................................................................................................................ 43
19. Liabilities from employee benefits ................................................................................................................... 43
20. Lease liabilities ................................................................................................................................................. 45
21. Provisions ......................................................................................................................................................... 46
22. Operating segments ........................................................................................................................................ 46
23. Sales revenue ................................................................................................................................................... 48
24. Cost by type and cost of goods sold ................................................................................................................. 49
25. Cost of employee benefits ................................................................................................................................ 49
26. Other operating revenue and expenses ........................................................................................................... 50
27. Financial revenues and expenses ..................................................................................................................... 50
28. Income tax ....................................................................................................................................................... 51
29. Earning per share ............................................................................................................................................. 54
30. Financial guarantees granted and received ..................................................................................................... 54
31. Transactions with related entities ................................................................................................................... 55
32. Material events subsequent to the end of reporting period ............................................................................ 56
32.1 Expression of consent by the Supervisory Board to conclude a surety agreement .................................... 56
32.2 Conclusion of a short-term loan agreement by a subsidiary ...................................................................... 57
32.3 Annex to the overdraft agreement ............................................................................................................. 57
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
4
Statement of financial position
31 December
2023
31 December
2022
ASSETS
Note
Property, plant and equipment
7
18,302
17,715
Intangible assets
8
3,600
3,776
Right-of-use assets
9
19,848
12,865
Investments in subsidiaries
10
70,803
70,803
Deferred income tax assets
28
1,885
1,954
Non-current assets
114,438
107,113
Inventory
11
204,455
247,870
Trade and other receivables
12
33,290
60,186
Current income tax receivables
-
847
Cash and cash equivalents
13
49,107
1,386
Current assets
286,852
310,289
Total assets
401,290
417,402
EQUITY AND LIABILITIES
Share capital
15
7,504
7,504
Share premium
35,677
35,677
Reserve capital
329
329
Other capitals
(104)
(73)
Retain earnings
16
300,999
248,104
Equity
344,405
291,541
Liabilities from loans
17
-
17,143
Lease liabilities
20
15,417
5,494
Liabilities from employee benefits
19
678
566
Other long-term liabilities
27
32
Long-term liabilities
16,122
23,235
Trade and other payables
18
25,026
22,664
Liabilities from employee benefits
19
8,180
7,264
Liabilities from loans
17
-
65,024
Lease liabilities
20
4,156
6,551
Liabilities from current income tax
2,396
-
Provisions
21
1,005
1,123
Short-term liabilities
40,763
102,626
Total liabilities
56,885
125,861
Total equity and liabilities
401,290
417,402
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
5
Statement of profit or loss and other comprehensive income
12 months ended
31 December 2023
12 months ended
31 December 2022
Revenue from sales of goods
571,836
594,310
Cost of goods sold
(407,643)
(434,521)
Gross profit
164,193
159,789
Selling costs
(74,142)
(73,143)
Administrative expenses
(23,592)
(21,190)
Expected credit losses
81
(12)
Other operating revenue
2,739
1,363
Other operating expenses
(307)
(386)
Operating profit
68,972
66,421
Financial revenue
221
3
Financial expenses
(3,602)
(8,877)
Profit before tax
65,591
57,547
Income tax
(12,696)
(11,478)
Net profit
52,895
46,069
Items that cannot be transferred to profit or loss
Actuarial gains or losses
(38)
168
Income tax on other comprehensive income
7
(32)
Other net comprehensive income
(31)
136
Total net comprehensive income for the financial year
52,864
46,205
Net profit for the period attributable to shareholders of the Company
52,895
46 069
Total comprehensive income for the period attributable to
shareholders of the Company
52,864
46 205
Earnings per share
12 months ended
31 December 2023
12 months ended
31 December 2022
Basic earnings per share in PLN
0.70
0.61
- from continuing operations
0.70
0.61
- from discontinued operations
-
-
Diluted earnings per share in PLN
0.70
0.61
- from continuing operations
0.70
0.61
- from discontinued operations
-
-
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
6
Statement of changes in equity
Share capital
Share premium
Reserve capital
Other capitals
Retained earnings
Total equity
As at 1 January 2023
7,504
35,677
329
(73)
248,104
291,541
Comprehensive income
Net profit
-
-
-
-
52,895
52,895
Other comprehensive income
-
-
-
(31)
-
(31)
Total comprehensive income
-
-
-
(31)
52,895
52,864
Transactions with owners
Total transactions with owners
-
-
-
-
-
-
As at 31 December 2023
7,504
35,677
329
(104)
300,999
344,405
As at 1 January 2022
7,504
35,677
329
(209)
202,035
245,336
Comprehensive income
Net profit
-
-
-
-
46,069
46,069
Other comprehensive income
-
-
-
136
-
136
Total comprehensive income
-
-
-
136
46,069
46,205
Transactions with owners
Total transactions with owners
-
-
-
-
-
-
As at 31 December 2022
7,504
35,677
329
(73)
248,104
291,541
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
7
Cash flow statement
Note
12 months ended
31 December 2023
12 months ended
31 December 2022
Cash flows from operating activities
Profit before tax
65,591
57,547
Adjustments for:
Amortisation and depreciation
0
9,219
9,276
Net interest
27
3,387
8,877
Profit/Loss on investing activities
0
(25)
(29)
Foreign exchange gains/losses
(638)
2,016
Other adjustments
(5)
(3)
Changes in balance sheet items:
Change in trade and other receivables
14
26,896
(26,584)
Change in inventories
14
43,415
37,690
Change in provisions
14
(118)
72
Change in trade and other payables
14
2,362
(16,141)
Change in employee benefit liabilities
14
990
(82)
Income tax paid
(9,377)
(18,491)
Net cash from operating activities
141,697
54,148
Cash flows from investing activities
Sale of property, plant and equipment
25
67
Purchase of property, plant and equipment and intangible assets
(2,076)
(3,801)
Purchase of shares in subsidiaries
-
(19,769)
Interest received
215
-
Net cash from investing activities
(1,836)
(23,503)
Cash flows from financing activities
Proceeds from loans
17
-
16,554
Repayments of loans
17
(81,722)
(31,675)
Repayment of lease liabilities
20
(6,364)
(6,826)
Interest paid on loans
17
(3,249)
(7,819)
Interests paid on leases
20
(798)
(722)
Dividends paid
-
-
Net cash from financing activities
(92,133)
(30,488)
Change in net cash and cash equivalents
47,728
157
Balance sheet change in cash and cash equivalents, including:
47,721
157
- change in cash due to exchange rate differences
(7)
-
Cash and cash equivalents at the beginning of the period
13
1,386
1,229
Cash and cash equivalents at the end of the period
13
49,107
1,386
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
8
Accounting policy and other explanatory notes
1. General information
Name of the reporting entity: TOYA S.A. (hereinafter referred to as the “Company”)
Legal form of the entity: Joint-stock company
Entity’s registered office address: ul. Sołtysowicka 13/15, 51-168 Wrocław
Entity’s headquarters: Wrocław
Country of registration: Poland
Primary location of entity’s operations: Poland
The Company is a successor of the civil law partnership “TOYA IMPORT-EKSPORT” with its registered office in Wrocław,
whose partners, given the scale of the business and its rapid development, resolved to transfer the business in 1999
to a newly established joint-stock company TOYA S.A. with its registered office in Wrocław.
The Company was incorporated by virtue of a Notarial Deed of 17 November 1999 drawn up by Notary Public Jolanta
Ołpińska in the Notarial Office in Wrocław (Rep. A No 5945/99).Next, pursuant to a court decision of 3 December 1999,
the Company was entered in the Commercial RHB Register maintained by the District Court for Wrocław-Fabryczna,
6
th
Commercial Division, under entry No RHB 9053.By virtue of a decision of 5 December 2001, the District Court
for Wrocław-Fabryczna, 6
th
Commercial Division of the National Court Register, entered the Company into the Register
of Entrepreneurs under entry No. KRS 0000066712.
As at 31 December 2023, TOYA S.A. operates one branch – in Nadarzyn.
The Company’s Statistical Identification Number (REGON) is 932093253, the Nadarzyn Branch has been assigned the
Statistical Identification Number (REGON): 932093253-00031.
Description of the nature and basic scope of Company’s activities
The core business activities of TOYA S.A. include import and distribution of industrial goods, including primarily hand and
power tools for professional and DIY use. The Company distributes goods manufactured and supplied mainly by
companies located in China. For many years, the Company has been implementing its strategy of expanding into
international markets. It focuses primarily on Central, Southern, and Eastern Europe (Romania, Ukraine, Baltic countries,
Hungary, Belarus, Moldova, Czech Republic, Bulgaria, Russia and Germany). Moreover, in 2003 a subsidiary, TOYA
Romania S.A., was established, whose business includes sales of hand and power tools in Romania. This company offers
the same products and brands as those offered by the Company in Poland In 2008, the company Yato Tools (Shanghai)
Co. Ltd., located in China, was established. The entity deals in the distribution of YATO brand tools and power tools in
China and in certain other foreign markets not supported by TOYA S.A. In 2019, the company Yato Tools (Jiaxing) Co. Ltd.
was founded, with its registered office in Baibu Town, China, which main business is also distribution of tools and power
tools. The major part of the activities of Yato Tools (Shanghai) and Yato Tools (Jiaxing) is supply chain management to
companies in Poland and Romania.
Duration of the Company is unlimited.
Toya S.A. is the parent company of the TOYA S.A. Capital Group.
In period from 1 January 2023 to 31 December 2023, and until the date of approval of these financial statements for
publication, the Management Board was composed of the following members:
• Grzegorz Pinkosz President of the Management Board;
• Maciej Lubnauer Vice-President of the Management Board;
• Robert Borys Vice-President of the Management Board.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
9
In the period from 1 January 2023 to 31 December 2023 and until the date of approval of these financial statements for
publication, the Supervisory Board consisted of the following members:
• Piotr Mondalski President of the Supervisory Board;
• Jan Szmidt Vice-President of the Supervisory Board;
• Dariusz Górka Member of the Supervisory Board;
• Michał Kobus Member of the Supervisory Board;
• Grzegorz Maciąg Member of the Supervisory Board;
• Wojciech Bartłomiej Papierak Member of the Supervisory Board;
• Beata Szmidt Member of the Supervisory Board.
These financial statements of the Company cover the year ended on 31 December 2023. Comparative data is presented:
• as at 31 December 2022 - for the statement of financial position,
• for the period from 1 January 2022 to 31 December 2022 - for the statement of profit or loss and other
comprehensive income, the statement of cash flows and the statement of changes in equity.
These financial statements of the Company for the year ended 31 December 2023 were approved for publication by the
Management Board on 28 March 2024.
The Company has also prepared the consolidated financial statements for the year ended 31 December 2023, which were
approved for publication by the Management Board on 28 March 2024.
2. Summary of significant accounting policies
The most significant accounting principles applied for the drawing up of these financial statements have been presented
below. Those principles were applied in all periods presented in a continuous way, unless stated otherwise.
2.1 Basic of preparation
These financial statements of the Company for the financial year ended 31 December 2023 have been prepared in
accordance with the International Financial Reporting Standards (“IFRS”) and interpretations issued by the International
Accounting Standards Board, as adopted by the European Union (“EU”).
These financial statements have been prepared in accordance with IFRS and Interpretations of the International Financial
Reporting Interpretations Committee (“IFRIC”) which were issued and in effect as at the reporting date 31 December
2023.
The policies described below have been consistently applied to all the periods presented, except for changes resulting
from the application of new or amended IFRS from 1 January 2023, which were described below.
These financial statements have been prepared in accordance with the historical cost convention.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
10
The preparation of financial statements in conformity with IFRS requires use of significant accounting estimates. It also
requires the Management Board to exercise judgement in the process of applying the accounting policies adopted by the
Company. The areas involving a higher degree of judgement or complexity or areas where assumptions and estimates
are material from the point of view of the financial statements are disclosed in note 4.
Going concern
These financial statements have been prepared on the assumption that the Company will continue as going concerns in
the foreseeable future.
2.2 Effect of new standards and interpretations on the Company’s financial statements
These financial statements have been prepared on the basis of the EU IFRS issued and effective as at the reporting date,
i.e. 31 December 2023.
The EU IFRS comprise all International Accounting Standards, International Financial Reporting Standards and related
Interpretations, excluding Standards and Interpretations listed below, which are awaiting approval by the European
Union.
a) New standards, interpretations and amendments to existing standards effective in 2023
• New IFRS 17 "Insurance Contracts"
A new standard regulating the recognition, measurement, presentation and disclosure of insurance and reinsurance
contracts. The standard replaces the existing IFRS 4.
The application of the standard did not have a significant impact on the Company's financial statements.
• Amendment to IFRS 17 "Insurance Contracts"
The Board established transitional provisions on comparative data for entities that implement IFRS 17 and IFRS 9
simultaneously to reduce potential accounting mismatches arising from differences between these standards.
This change had no impact on the Company's financial statements.
• Amendment to IAS 1 "Presentation of financial statements"
The IAS Council clarified which information regarding the accounting policy applied by the entity is significant and requires
disclosure in the financial statements. The principles focus on tailoring disclosures to an individual's circumstances. The
Council warns against using standardized provisions copied from IFRS and expects that the basis for valuation of financial
instruments is important information.
The above changes did not have a significant impact on the Company's financial statements.
• Amendments to IAS 8 “Accounting Policies, Changes in Accounting Estimates and Errors”: Definition of
Accounting Estimates
The Council introduced the definition of an accounting estimate into the standard: Accounting estimates are monetary
amounts in financial statements that are subject to measurement uncertainty.
The above changes did not have a significant impact on the Company's financial statements.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
11
• Amendments to IAS 12 “Income Taxes”: Deferred tax relating to assets and liabilities recognized as a result of
a single transaction
The Council introduced the principle that if a transaction results in both positive and negative temporary differences in
the same amount, assets and provisions for deferred income tax should be recognized even if the transaction does not
result from the merger or has no impact on the accounting or tax result. This means the need to recognize assets and
deferred tax provisions, e.g. when temporary differences in equal amounts occur in the case of leasing (a separate
temporary difference from the liability and from the right-of-use) or in the case of reclamation liabilities. The rule that
deferred tax assets and liabilities are offset if current tax assets and liabilities are subject to offsetting, has not been
changed.
The above changes did not affect the Company's financial statements.
• Amendment to IAS 12 "Income Taxes"
The change introduces a temporary exemption from recognizing deferred tax resulting from the implementation of
international tax reform (Pillar II) and the obligation to introduce additional related disclosures.
The above change had no impact on the Company's financial statements.
b) New standards, interpretations and amendments, which are not yet effective and have not been applied early by
the Company
Standards and Interpretations - approved by the EU, which have not yet come into force for annual periods beginning
on 1 January 2023
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
Amendment to IAS 1 "Presentation of
financial statements”
Effective for annual periods starting on
1 January 2024
The change clarifies that as at the balance sheet date, the entity
does not take into account covenants that will have to be met in
the future when considering the classification of liabilities as long
or short-term. However, the entity should disclose information
about these covenants in the explanatory notes to the financial
statements.
The changes are not expected to have
a significant impact on the Company's
financial statements.
Amendment to IAS 1 "Presentation of
financial statements”
Effective for annual periods starting on
1 January 2024
The IAS Council clarified the rules for classifying liabilities as
long or short-term primarily in two aspects:
• it was clarified that the classification depends on the rights
that the entity has as at the balance sheet date,
• management's intentions to accelerate or delay payment
of the obligation are not taken into account.
The changes are not expected to have
a significant impact on the Company's
financial statements.
Amendment to IFRS 16 "Leases"
Effective for annual periods starting on
1 January 2024
The amendment clarifies the requirements for the valuation of
leasing liabilities arising from sale and leaseback transactions. It
is intended to prevent incorrect recognition of the result on the
transaction in the part relating to the retained right of use when
leasing payments are variable and do not depend on the index or
rate.
The changes are not expected to have
a significant impact on the Company's
financial statements.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
12
Standards and Interpretations awaiting EU endorsement
Standards and Interpretations
Type of anticipated change in accounting policies
Possible impact on the financial
statements
Amendments to IAS 7 “Statement
of Cash Flows” and IFRS 7
“Financial Instruments:
Disclosures”
Effective for annual periods
beginning on 1 January 2024
The amendment describes the characteristics of reverse factoring
agreements ("Supplier finance arrangements") and introduces the
need to disclose additional information.
The changes are not expected to have
a significant impact on the Company's
financial statements.
Amendment to IAS 21 "The effects
of changes in foreign exchange
rates"
Effective for annual periods
beginning on 1 January 2025
The amendment clarifies how an entity should assess whether a
currency is convertible and how it should determine the exchange
rate if it is not convertible, and requires disclosure of information that
will enable users of financial statements to understand the impact of
the lack of convertibility of a currency.
The changes are not expected to have
a significant impact on the Company's
financial statements.
As at the date of approving of these financial statements for publication, The Management Board has not yet completed
works on the assessment of the impact of introducing the above standards and amendments to standards on the
accounting principles (policy) applied by the Company in relation to the operations or its financial results, however as at
the date of approval of these financial statements for publication, the Management Board does not expect the
introduction of other standards and amendments to standards to have a significant impact on the accounting principles
(policy) applied by the Company.
2.3 Interest in subsidiaries
Interests in controlled entities are recognised at acquisition cost.
Investments in subsidiaries are tested for impairment whenever there is indication of impairment or indication that any
previously recognised impairment loss is no longer required or has decreased.
2.4 Segment reporting
Information on operating segments is presented on the same basis as that used for internal reporting to the Company’s
Management Board which is responsible for the allocation of resources and assessment of the segments’ results.
Amounts presented in the internal reporting process are measured using the same policies as those followed in these
financial statements prepared in accordance with the UE IFRS.
2.5 Valuation of items denominated in foreign currencies
Functional currency
Items contained in the Company’s financial statements are measured in the currency of the primary economic
environment in which the entity operates (“functional currency”). The financial statements are presented in the Polish
zloty, which is the functional currency and the presentation currency of the Company.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
13
Transactions and balances
Transactions expressed in foreign currencies are translated into the functional currency according to the exchange rate
applicable on the transaction date. Any currency exchange gains or losses arising on settlement of such transactions or
on accounting measurement of monetary assets and liabilities denominated in foreign currencies are recognised in profit
or loss and presented on net basis in other income or other operating expenses.
Monetary assets and liabilities expressed in foreign currencies are translated as at the reporting period end date using
the average market rate effective for the given currency for that date.
Non-monetary assets and liabilities carried at historical cost in a foreign currency are translated using the average market
rate effective for the transaction date. Non-monetary items of the statement of financial position expressed in foreign
currencies which are carried at fair values are translated using the average market exchange rate effective for the fair
value measurement date.
2.6 Property, plant and equipment
Property, plant and equipment are stated at acquisition or production cost less accumulated depreciation and potential
accumulated impairment.
The acquisition price includes the purchase price of an asset (i.e. the amount due to a seller, decreased by deductible
taxes: VAT and excise duty), public charges (in the case of imports) and expenditure directly attributable to the acquisition
of the asset and its adaptation for its intended use, including the costs of transport, loading and unloading. Rebates,
discounts as well as other similar concessions and recoveries decrease the asset acquisition cost.
Production cost of a tangible fixed asset or a tangible fixed asset under construction includes all the expenses incurred
by the entity during its construction, assembly, adaptation or improvement, incurred until the date on which the asset
became available for use, including any non-deductible VAT and excise duties.
Any subsequent expenditure on replacement of parts of items of property, plant and equipment is capitalised if it can be
measured reliably and it is probable that the Company will derive economic benefits associated with the replaced items.
Repair and maintenance costs are charged to profit or loss as incurred.
Except for land and tangible non-current assets under construction, all items of property, plant and equipment are
depreciated over their estimated useful lives using the straight-line method, taking into account the residual value, if
material. The following groups are depreciated using the following depreciation rates:
• buildings and structures
from 10 to 40 years;
• plant and equipment
from 2 to 10 years;
• vehicles
from 2 to 10 years;
• other tangible fixed assets
from 2 to 20 years.
Correctness of the applied useful lives, depreciation methods and residual values (except where insignificant) is reviewed
by the Company on an annual basis. Any changes are presented as changes in accounting estimates and their effect is
taken to profit or loss in the period when the estimate changes and in subsequent periods.
Significant components of property, plant and equipment are depreciated based on their estimated useful lives.
Any gains or losses on the disposal or liquidation of items of property, plant and equipment are determined as the
difference between the revenue from the sale and the carrying amount of the items, and recognised in profit or loss.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
14
Tangible fixed assets under construction are stated at cost or at the amount of the aggregate expenses directly associated
with their production, less impairment. The cost of borrowings contracted to finance tangible fixed assets under
construction increases their value.
2.7 Intangible assets
Intangible assets are stated at acquisition or production cost less accumulated amortisation and impairment.
Any subsequent expenditure on existing intangible assets is capitalised only when it increases the future economic
benefits to be generated by the asset. Other expenditures are taken to profit or loss as incurred.
The period and method of amortisation of intangible assets are reviewed at the end of each financial year. Any changes
are recognised as changes in accounting estimates and their effect is charged to profit or loss in the period in which the
amortisation rates are changed and in subsequent periods.
Amortisation is calculated over the estimated useful life of intangible assets, using the straight line method.
The amortisation rates applied to intangible assets are as follows:
• trademarks
10 years;
• licences and software
from 1 to 20 years.
2.8 Leases
a) Right-of-use assets
The Company recognizes right-of-use assets on the lease commencement date (i.e. on the day when the underlying asset
is available for use). Right-of-use assets are measured at cost, less total depreciation and impairment losses, adjusted for
any revaluation of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognized, initial
direct costs incurred and any lease payments paid on or before the lease start date, less any incentives received. Unless
the Company is sufficiently certain that it will obtain the ownership title to the leased asset at the end of the lease period,
the recognized right-of-use assets are amortized using the straight-line method, over the shorter of the two periods:
estimated useful life of the leased asset or lease period. Right-of-use assets are subject to impairment assessment.
Right-of-use assets are presented in the statement of financial position as a separate line item.
b) Lease liability
At the lease commencement date, the Company measures the lease liabilities at the amount of the current value of the
future lease payments, remaining to be paid on that date. Lease payment include fixed fees (essentially fixed lease
payments) less any lease incentives due, variable fees that depend on the index or rate, and amounts expected to be paid
under the guaranteed residual value. Lease payments include also the price of the call option (if it can be assumed with
sufficient certainty that the Company will exercise it) and the payment of fines for termination of the lease (if the lease
provides for the option of terminating the lease by the Company). Variable lease payments that do not depend on an
index or rate are recognized as costs in the period in which the event or condition giving rise to the payment occurs.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
15
When calculating the current value of future lease payments, the Company uses the lessee's marginal interest rate
determined on the day the lease starts. After the start date, the amount of the lease liability is increased to reflect interest
and reduced by the lease payments made. In addition, the carrying amount of lease liabilities is remeasured in the event
of a change in the lease period or a change in the principal fixed lease payments.
c) Short-term lease and lease of low-value assets
The Company applies the exemption from recognizing short-term leases to its short-term lease contracts (i.e. contracts
for which lease period is 12 months or less from the commencement date and does not contain purchase option). The
Company also applies an exemption regarding the recognition of leases of low-value assets in relation to its low-value
leases. Lease payments for short-term leases and leases of low-value assets are recognized as costs, using the straight-
line method, over the duration of the lease contract.
2.9 Impairment on non-financial non-current assets
As at the end of each reporting period, the Company assesses whether there is any evidence that any of its non-financial
non-current assets may be impaired. If the Company finds that there is such evidence, or if the Company is required to
perform annual impairment tests (in the case of goodwill), the Company estimates the recoverable amount of the given
asset or cash-generating unit to which the asset belongs.
The recoverable amount of an asset or cash-generating unit (“CGU”) is equal to the higher of the asset’s or cash-
generating unit’s fair value less costs to dispose or its value in use. The recoverable amount is determined for individual
assets unless a given asset does not generate separate cash inflows largely independent from those generated by other
assets or asset groups. If the carrying amount of an asset is higher than its recoverable amount, the asset is impaired and
an impairment loss is recognised up to the established recoverable amount. The impairment loss is allocated in the
following order: first, the carrying amount of goodwill is reduced, and then the carrying amounts of other assets of the
cash-generating unit are reduced pro rata.
Impairment losses related to assets are disclosed under the cost categories corresponding to the function of the asset
with respect to which impairment has been identified.
As at the end of each reporting period, the Company assesses whether there is evidence that any impairment loss
recognised in the previous periods with respect to a given asset or cash-generating unit is no longer necessary or should
be reduced. If such evidence exists, the Company measures the recoverable amount of the given asset or CGU.
2.10 Borrowing costs
Borrowing costs that are directly attributable to acquisition or production of assets which take a substantial period of
time to become available for their intended use, are capitalised (unless immaterial) as part of the cost of tangible non-
current assets or intangible assets, as appropriate, until such assets become available for their intended use.
2.11 Financial assets
Upon initial recognition, financial assets are measured at fair value of the consideration given plus transaction costs, with
the exception of financial assets at fair value through profit or loss in the case of which the transaction costs are charged
to profit or loss. Purchases and sales of financial instruments are recognised as at the date of the transaction.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
16
Financial assets are derecognised when the rights to receive cash flows from these assets have expired or have been
transferred and substantially all risks and rewards incidental to ownership of such assets have been transferred. If there
has been no transfer of substantially all the risks and rewards of the asset, the asset is derecognised when the Company
loses control over the asset.
The Company classifies its financial assets to the following categories:
a) measured at amortized cost;
b) measured ad fair value through profit or loss;
c) measured at fair value through other comprehensive income;
The classification depends on the Company's business model objective for its financial assets as well as the characteristics
of contractual cash flow from those instruments. For financial assets, reclassification is performed, if and only if the
entity's business model objective for its financial assets has changed.
a) financial assets measured at amortized cost
Financial assets held to receive contractual cash flows, which include only repayment of principal amount and interest,
are measured at amortised cost. The Company classifies trade receivables and cash and cash equivalents into this
category of financial assets. Interest revenue (for receivables with a deadline for repayment of over 1 year) are
determined using effective interest rate method and recognized as “financial income” in statement of profit or loss.
Impairment losses on trade receivables are recognised in line with the accounting policy described in note 2.12 and are
recognized in cost of sales.
As at 31 December 2023 and 2022, the Company did not held any assets qualified within the remaining two categories,
i.e. (ii) measured ad fair value through profit or loss, and (iii) measured at fair value through other comprehensive income.
2.12 Impairment of financial assets
The Company performs individual and group analysis of impairment of trade receivables.
Receivables are analysed individually when there is an objective evidence of impairment that may have a negative effect
on the amount of future cash flows. Significant objective conditions include, for example, taking legal action against
a debtor, serious financial problems of the debtor, significant overdue payments.
In the case of short-term trade receivables analysed in groups, which do not have a significant financing element, the
Company applies the simplified approach required in IFRS 9 and measures impairment losses in the amount of credit
losses expected throughout the lifetime of the receivable from its initial recognition. The Company utilizes provision
matrix where a fixed provision rate applies depending on the number of days that a trade receivable is outstanding.
For the purpose of estimation of the expected credit losses, trade receivables are grouped on the basis of credit risk
characteristics (separate groups were determined for certain distribution channels – receivables from export customers,
network customers, wholesale customers and individual customers). Customers credit non-performance analysis was
performed for the last 3 years, to determine the general non-performance ratios.
These ratios are determined for the following ranges:
• not yet due;
• past due under 30 days;
• past due from 30 to 60 days;
• past due from 60 to 90 days;
• past due over 90 days.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
17
Historical data on receivables referred to court and written-down as well as information about share of amounts received
in each time range indicated above, are used in determination of non-performance ratio for each time range. Other
factors, such as insurance of receivable or expected impact of future events, are also taken into consideration.
Impairment write-down is estimated considering non-performance ratios, adjusted for expected impact of future events
and based on balance of outstanding receivables as of the balance sheet date, for each of the time ranges indicated
above.
2.13 Inventory
Inventory includes goods for resale and assets for expected returns.
Goods for resale are measured at the costs of acquisition not higher than net realisable value.
Net realisable value is equal to the estimated selling price of an item of inventory less any costs of completion and costs
necessary to make the sale.
Inventory decrease is measured based on average prices, i.e. determined as weighted average prices of individual goods
for resale.
The assets for expected returns, (i.e. value of goods which are expected to be returned by customers in accordance with
the right provided to customers in the agreement or under the binding laws and regulations - please refer to revenue
recognition policy in note 2.21) are estimated based on historical data, including ratio of returns from customers to
revenue from sales for the period of last 3 years. Estimated value of these assets offsets the costs of goods sold.
The amount of an impairment loss is calculated based on rotation of individual items of goods for resale and it depends
on the ratio of inventory level and the quantity of goods sold over the last 12 months. Items for which inventory level
exceeds sales expected for the 2-years period are written off. Inventory impairment is recognised in relation to goods
which are in the permanent offer of the Company due to the need to obtain reliable historical data in terms of actual
data over a longer period of time. New products are excluded from the calculation of impairment loss, due to the period
required to place the new product on the market and lack of sufficient historical data for further analysis.
Impairment losses on inventory are recognised in cost of sales.
2.14 Cash and cash equivalents
Cash and cash equivalents disclosed in the statement of financial position include cash at bank and in hand as well as
highly liquid current financial assets whose original maturity does not exceed three months and which are readily
convertible into specific cash amounts and subject to insignificant risk of fluctuation in fair value.
2.15 Equity
Equity is disclosed in the accounting records divided into categories, in accordance with the rules set forth in applicable
laws and the provisions of the Company's Articles of Association.
The particular categories of equity are:
• share capital of the Company – stated at its par value as specified in the Company's Articles of Association
and entered in the court register,
• share premium is stated in the proceeds from the issue of shares in the amount exceeding the par value of
shares, less transactions costs associated with the public share issue,
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
18
• reserve capital for buyback of own shares is created based on the resolution of General Shareholders’
Meeting,
• other capitals include actuarial gains and losses arising from the actuarial valuation of provisions for
pensions and related benefits,
• retained earnings – comprising profit/(loss) distributions, undistributed profit/(loss), and net profit/(loss)
for the reporting period to which given financial statements relate.
Transaction cost related to the public share issue is taken to equity and reduces the share premium account as at the
share issue date. Transaction cost related to the purchase of own shares reduces the amount of reserve capital created
for this purpose by General Shareholders Meeting.
2.16 Bank loan liabilities
Bank loans are initially recognised at fair value less transaction cost. Following initial recognition, bank loans are measured
at amortized cost, using the effective interest method.
2.17 Trade and other payables
Trade payables are initially recognised at fair value, and subsequently, where the discount effect is material, they are
measured at amortised cost using the effective interest method.
Other liabilities include liabilities arising from returns of goods from customers (in accordance with the right provided to
customers in the agreement or under the existing laws and regulations - please refer to revenue recognition policy in
note 01). Value of these liabilities is estimated based on historical data, including ratio of returns from customers to
revenue from sales for the period of last 3 years. At the same time, the Company recognizes in inventories the asset for
goods which the customers are expected to return, with the offsetting entry to cost of goods sold (see note 03).
According to the regulations of European Parliament and other laws in force, i.e. EU Waste Electrical and Electronic
Equipment Act, the Company, as entity that places electrical and electronic equipment, batteries, containers and
products such as oils and tires on the market, is subject to Extended Producer Responsibility, under which it is responsible
for the products at the stage when it becomes a waste. The Parent Company is obliged to finance a system for collecting
and recycling waste generated from products and packaging introduced by the Company. These obligations are fulfilled
by concluding an agreement with Recovery Organizations. Costs arising from these contracts are recognized throughout
the period and settled at the end of the financial year after receipt of the final invoice.
2.18 Current and deferred income tax
Mandatory decreases of profit include current and deferred income tax.
• Current tax
Current tax expense is calculated based on the taxable profit for the given reporting period. Tax expense is calculated
based on tax rates applicable during the fiscal year in question..
• Deferred income tax
Deferred tax assets and liabilities are determined based on temporary differences between the accounting and tax values
of assets and liabilities.
Deferred tax assets are recognised only if it is probable that the Company will have future taxable profits allowing
for utilisation of the temporary differences and deduction of the tax losses. Deferred tax assets are determined
as the amount of income tax recoverable in the future in respect of deductible temporary differences which will reduce
future income tax base and any deductible tax loss, determined in accordance with the prudence principle.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
19
The amount of deferred tax assets and liabilities is determined using income tax rates which will be effective when
a deferred tax asset is utilised or a deferred tax liability arises.
Deferred tax assets and liabilities have been offset at the level of individual entity level, as at this level the criteria
of IAS 12 “Income taxes” with respect to offsetting deferred tax assets against deferred tax liabilities were met.
A deferred tax liability is recognised for temporary differences associated with investments in subsidiaries
and jointly-controlled entities, except where the Company controls the reversal of such temporary differences
and it is probable that such differences will not reverse in the foreseeable future.
2.19 Liabilities from employee benefits
• Post-employment benefit plan – the defined contribution plan
The Company participates in the national post-employment benefit plan by paying an appropriate percentage of an
employee’s gross pay as a contribution to the Social Insurance Institution (ZUS). This plan is a defined contribution plan.
The contributions are expensed as paid.
From 2019, the Company participates also in the Employee Capital Plans program by paying the appropriate percentage
of gross pay as a contribution. This program is a defined contribution program and the contributions paid are recognized
as an expense when incurred.
• Post-employment benefit plan - the defined benefit plan (retirement severance pays) and other benefits
In accordance with the Labour Code and applicable remuneration systems and rules, employees of the Company are
entitled to death benefits and retirement severance pays. Death benefits are one-off benefits paid to the family of an
employee, following the employee's death. Retirement severance pays are one-off benefits paid when an employee
retires. The plan is fully financed by the Company. The amount of a retirement severance pay or death benefit depends
on the length of employment and average remuneration of a given employee. The Company accrues for future retirement
severance pay and death benefit obligations in order to attribute costs to the periods to which they relate.
The present value of such obligations is determined by an independent actuary using the projected unit credit method.
Accrued liabilities are equal to the discounted future payments, taking into account the employee turnover, and relate
to the period until the end of the reporting period. Demographic information and information on staff turnover are based
on historical information. Actuarial gains and losses are recognised in profit or loss, except for actuarial gains and losses
recognised in other comprehensive income.
2.20 Provisions
Provisions are created when the Company has a present obligation (legal or customarily expected) resulting from past
events and when it is probable that the discharge of this obligation will result in an outflow of economic benefits, and
the obligation can be measured reliably.
A provision is recognised as a reliable estimate of the amount required to settle the existing obligation, made as at the
end of the reporting period taking into account the risks and uncertainties associated with the obligation.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
20
In particular, a provision is created for the expected returns and complaints. The provision for returns is estimated based
on the actual quantity of goods sold over the last 12 months period and taking into consideration the defined failure ratio
and average cost of servicing customer complaints. Parameters required for calculation of this provision, for the period
of previous 3 years, are updated on an annual basis.
2.21 Recognition of revenue
Revenue is recognised at fair value of consideration received or receivable, net of VAT, returns, rebates and discounts.
The Company recognizes revenue from contracts with customers when all of the following five criteria are met:
• the contract has been approved (in writing, orally, or in accordance with other customary business
practices) and the parties are committed to perform their obligations in the contract;
• each party’s rights regarding the goods or services to be transferred can be identified;
• the payment terms for the goods or services to be transferred can be identified;
• the contract has commercial substance (i.e. the risk, timing or amount of the vendor’s future cash flows is
expected to change as a result of the contract);
• it is probable that the consideration for the exchange of the goods or services that the vendor is entitled to
will be collected.
In particular, revenue from sales of goods is recognized in accordance with rules described above. The sales agreement
with customer contains only one performance obligation – obligation to deliver goods to customer, therefore revenue is
recognized at the specified point in time. The entity recognizes revenue when the goods are transferred to the customer.
The transfer of control over the asset takes place at the time specified under Incoterms or in accordance with agreements
concluded with customers.
Revenue from sales of goods include transportation services, provided by external parties, costs of which are incurred by
the customers, in case the Company is responsible for organizing the transportation and bears the risks during the
transport.
Some contracts with customers contain elements of variable consideration, arising from rebates granted to customers,
including these tied to achieving a set level of turnover. In accordance with requirements of IFRS 15, the Company
estimates amounts of rebates owned to customers and recognizes these rebates as an offsetting entry to revenues from
sales and as a trade liability.
Some contracts with customers contain right to return goods. In accordance with the applicable laws and regulations,
the customer has a right to withdraw from the purchase agreement within 14 days from the date of delivery of goods.
This right applies to customers who purchase goods at internet store toya24.pl and other shopping portals. In addition,
the Company extends the right of return of purchased goods, within limited period of time, to some of its customers. The
Company estimates the potential liability arising from these rebates and if the estimated liability is material, the Company
recognizes this amount as an offset to revenues from sales and as a liability due to expected returns in “trade liabilities”
line (note 2.17). At the same time, the Company recognizes the estimated amount of inventories to be returned by the
customers and recognizes this amount as inventory and offset to costs of goods for resale sold (note 2.13).
2.22 Dividends
The obligation to pay dividends is recognised when the shareholders’ right to receive such dividends is approved.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
21
3. Foreign currencies used in preparation of these financial statement
Foreign currency items of the statement of financial position were translated using the following exchange rates:
Currency
31 December 2023 (*)
31 December 2022
1 EUR
4.3480
4.6899
1 USD
3.9350
4.4018
1 CNY
0.5534
0.6348
(*) in accordance with NBP table No. 251/A/NBP/2023 of 29 December 2023
4. Material accounting estimates and judgements
Estimates and judgements are verified on an ongoing basis. Estimates and judgements used during the preparation of
the financial statements are based on historical experience as well as analyses and expectations of future events which,
to the best knowledge of the Management Board, are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, rarely equal the actual results. The estimates and assumptions that involve a significant risk of the necessity
to make a material adjustment to the carrying amounts of assets and liabilities during the current or following financial
year are outlined below.
• Revenue recognition – variable consideration and returns
Some contracts with customers contain elements of variable consideration, arising from rebates granted to customers,
including these tied to achieving a set level of turnover.
In accordance with IFRS 15, where a contract contains elements of variable consideration, the entity will estimate the
amount of variable consideration to which it will be entitled under the contract in exchange for transferring promised
goods or services to the customer. Variable consideration is only included in the transaction price if, and to the extent
that, it is highly probable that its inclusion will not result in a significant revenue reversal in the future when the
uncertainty has been subsequently resolved. The Company estimates the potential liability arising from rebates granted
to customers, and if the estimated liability is material, the Company recognizes this liability as an offset to revenues
from sales and as a trade liability. At the end of the financial year, the rebates were largely settled.
• Useful lives and depreciation rates for property, plant and equipment
The Company’s Management Board determines estimated useful lives and depreciation rates for tangible non-current
assets. The estimates are based on the projected useful lives for individual assets. The estimates may change materially
as a result of new technological solutions emerging on the market, plans of the Company’s Management Board, or
intensity of use. The Management Board increases or decreases a depreciation rate for a given asset if its useful life
proves shorter or longer than expected, respectively, and revalues technologically obsolete assets, and assets which are
not of strategic importance and whose use has been discontinued.
If the actual useful lives of property, plant and equipment had been by 10% shorter than the Management Board's
estimates, the depreciation of property, plant and equipment would have been higher by PLN 391 thousand
as at 31 December 2023 (PLN 257 thousand as at 31 December 2022).
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
22
• Lease period for contracts concluded for an unspecified period of time
The Company is a party to contracts with an indefinite term. When determining the lease period, the Company
determines the period of contract enforceability. Leasing ceases to be enforceable when both the lessee and the lessor
have the right to terminate the contract without having to obtain permission from the other party without incurring more
than insignificant penalties. The Company assesses the significance of broadly understood penalties, meaning that apart
from contractual or financial matters, it also takes into account all other significant economic factors discouraging the
termination of the contract (e.g. significant investments in leased asset, availability of alternative solutions, relocation
costs). If neither the Company as the lessee nor the lessor incurs a significant penalty for termination (broadly
understood), leasing ceases to be enforceable and its period is a termination notice period.
• Lessee’s marginal interest rate
The Company is not able to easily determine the interest rate for some lease contracts, which is why it uses the lessee's
marginal interest rate when measuring the lease liability. This is the interest rate that the Company would have to pay to
borrow (for a similar period, in the same currency and with similar collateral) the funds necessary to purchase an asset
with a similar value as the right-of-use asset in a similar economic environment.
• Provisions
As at each end of a reporting period, the Management Board of the Company makes material estimates of provisions:
‐ provisions for guarantees and complaints – estimated level of the ratio used to perform calculations in
accordance with the policy described in note ; This ratio was determined on the basis of historical costs
and claims and is verified on a regular basis through reference with actually incurred costs; for details on
the amount of the provision, see note 21;
‐ other provisions resulting from claims brought against the Company – the values are determined taking into
consideration the probability of having to pay the obligation and the amount of potential claim.
• Write-downs of inventories to net realizable value
When determining the amount of the inventory write-down, the Company analyses the rotation of goods. The estimated
average period during which the product is sold, and beyond which a write-down is created in accordance with the policy
described in note 2.13; for details on the amount of the write-down, see note 11.
• Expected credit losses
The Company utilizes provision matrix to estimate expected credit losses in relation to trade receivables. For the purpose
of estimation of the expected credit losses, trade receivables are grouped on the basis of credit risk characteristics.
Historical data regarding credit losses, adjusted for expected impact of future events, is used by the Company in
estimation of the expected credit losses, in accordance with the policy described in note 2.12; for details on the amount
of the write-down, see note 12.
5. Financial risk management
The Company’s business activities expose it to a number of various financial risks, such as market risk (including foreign
exchange risk and the risk of fair value or cash flow changes as a result of interest rate movements), credit risk and
liquidity risk. The Company’s overall risk management programme is designed to mitigate the potential effect of risk on
the Company’s financial performance. The Company does not use derivatives to hedge against those risks.
The Management Board defines overall risk management rules as well as the policy for specific areas such as credit risk
or investing liquidity surpluses.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
23
5.1 Market risk
Foreign exchange risk
Currently the Company purchases significant amounts of goods from foreign suppliers, located primarily in China,
at prices denominated in foreign currencies, particularly in CNY and USD. The currency structure of trade liabilities is
presented below:
31 December
2023
31 December
2022
PLN
47%
84%
USD
32%
7%
EUR
1%
-
CNY
20%
9%
TOTAL
100%
100%
The Company may use EUR and USD denominated credit facilities available under executed credit facility agreements. As
at 31 December 2023 and 31 December 2022, the Company has no loan liabilities denominated in foreign currencies.
As at 31 December 2023 cash in foreign currencies (EUR and USD) represented 3% of the total cash (as at 31 December
2022 - 17%).
35.8% of the Company’s revenue is generated from exports, at prices denominated in foreign currencies — mainly USD.
As at 31 December 2023, trade receivables in USD represented 6% of the total trade receivables (36% as at a 31 December
2022). In addition, 8% of the total balance are receivables denominated in EUR (as of 31 December 2022: 2%).
There is a risk that future fluctuations of exchange rates may have a negative or positive effect on the Company's financial
performance. So far, the Company has not used derivative financial instruments to hedge against the results of future
changes in exchange rates. The sensitivity of the gross financial result to the increase in the exchange rates of individual
currencies as at 31 December 2023 and 31 December 2022 by 10% is presented below, with other conditions unchanged.
The sensitivity is determined as a result of the conversion of the impact of the higher / lower exchange rate on the
revaluation of the balances of trade receivables and liabilities and others expressed in currencies.
10% currency rate increase as of
31 December 2023
USD
EUR
CNY
TOTAL
Trade and other receivables
187
275
-
462
Trade and other payables
(607)
(24)
(381)
(1,012)
TOTAL impact on 2023 result
(420)
251
(381)
(550)
10% currency rate increase as of
31 December 2022
USD
EUR
CNY
TOTAL
Trade and other receivables
2,020
121
-
2,141
Trade and other payables
(98)
2
(120)
(216)
TOTAL impact on 2022 result
1,922
123
(120)
1,925
According to the Company’s Management Board, foreign exchange risk concentration Is low, because to a large extent
balances denominated in foreign currencies are offsetting each other.
Risk of interest rate changes affecting cash flows and fair values
As at 31 December 2023, the Company had cash in bank accounts bearing interest based on a variable interest rate (short-
term bank deposits), which exposes the Company to the risk of changes in cash flows as a result of changes in interest
rates, however, due to the amount of these interest, the risk is not significant. The Company does not have any other
interest-bearing assets. As of 31 December 2022, the Company had no interest-bearing assets.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
24
The Company's policy envisages the use of bank loans bearing interest at variable rates. This exposes the Company to the
risk of changes in cash flows as a result of changes in interest rates. As at 31 December 2023, the Company had no debt
under bank loans, while as at 31 December 2022, all liabilities under bank loans were liabilities bearing interest at a
variable interest rate.
The Company monitors its exposure to the risk of interest rate changes affecting its cash flows and fair values. The
Company runs simulations of various scenarios, taking into consideration refinancing, roll-over of the existing positions,
and alternative financing. The Company uses these scenarios to assess the impact of a change in interest rates on its
financial performance. Simulations are run for bank deposits and liabilities, which represent the largest items exposed to
interest rate risk.
The analysis of sensitivity to the risk of cash flows due to changes in interest rates presented below was prepared on the
basis of financial instruments based on variable interest rates. The financial instruments held by the Company were based
on WIBOR rates. The impact of changes in market interest rates on the financial result was calculated as the product of
the liability balances at the end of individual months of 2023 and 2022 and the assumed deviation for the WIBOR rate.
+50 basis points
-50 basis points
Effect on profit before income tax
Effect on profit before income tax
Financial assets
Cash in bank accounts
43
(43)
Financial liabilities
Variable interest rate loans
(136)
136
Total for 2023
(93)
93
+50 basis points
-50 basis points
Effect on profit before income tax
Effect on profit before income tax
Financial liabilities
Variable interest rate loans
(663)
663
Total for 2022
(663)
663
The Company does not use derivatives to hedge against the risk of interest rate changes affecting its cash flows and fair
values.
5.2 Credit risk
Credit risk arises mainly from bank deposits and credit exposures to customers, including trade receivables due.
Credit risk relating to bank deposits is considered by the Management Board as low because the Company cooperates
with renowned financial institutions which enjoy premium credit ratings (Bank Handlowy w Warszawie S.A., mBank S.A.
and BNP Paribas Bank Polska S.A.).
Credit risk relating to credit exposures to Company’s customers is considered as low by the Management Board. The
Company sells its products to 2 key customer groups: retail chains and wholesale customers (including wholesalers,
distributors and authorised retail stores). The Company sells its products on the domestic and foreign markets – mainly
countries in Central, Eastern and Southern Europe (Romania, Ukraine, Baltic countries, Hungary, Belarus, Moldova, the
Czech Republic, Bulgaria and Germany).
The table below presents the Company's sales structure by customer group and market:
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
25
Share in sales revenues
2023
2022
Domestic sales – wholesale market
44.3%
43.7%
Export
35.8%
36.8%
Domestic sales – networks
11.4%
11.6%
Domestic sales – retail chains
8.5%
7.9%
Total
100.0%
100.0%
With regards to retail chains channel, the Company sells its products to the largest chains in Poland. Credit exposures in
this customer group are rather evenly distributed. 2 key retail chains jointly account for approximately 83.5 % of sales
made through this particular channel. Credit risk exposure to retail chains is considered by the Company as low as most
of them are reliable and financially transparent customers with an established market position and a sound payment
history.
In the area of wholesale distribution, the Company has established cooperation with authorised distributors, a few dozen
wholesalers across the country and stores. In 2023 and 2022 the concentration of receivables in the wholesale channel
was at a similar level - 75% of sales was executed by 18 in 2023 and 2022. The Company pursues a policy of reducing
credit exposures to wholesale customers with the use of a credit limit mechanism. The limits are set for each customer
based on a detailed assessment of its financial performance, market position, payment discipline and the overall situation
in the sector. The utilisation of credit limits is monitored on a regular basis. A transaction exceeding the credit limit may
only be executed upon authorisation by authorised persons in accordance with an internal credit policy.
The Company mitigates its credit risk by having trade receivables insured in renowned insurance company.
As at 31 December 2023, 86% of the trade receivables were insured (31 December 2022 - 60%). This applies to customers
who have been granted an individual limit and customers covered by the so-called automatic limit, up to the amount
specified in the insurance contract. Under the insurance contract, the deductible is typical for such contracts. The
Company also mitigates credit risk through the implementation of an effective risk management system integrated with
SAP, supporting the maintenance of proper payment discipline of the Company’s customers. It should be stressed that
sales for the customers who are not in a stable and predictable financial condition is realised based on advance payments.
The maturity structure of receivables and details on past due receivables are presented in note 0.
The credit quality of financial assets that are neither past due nor impaired can be estimated by reference to external
credit ratings or information on historical counterparty’s payment default. Cash is deposited in banks rated BBB -, BBB
and A- (EuroRating rating agency). With regard to trade receivables, the Company cooperates with reputable
organizations that provide tools for credit risk analysis, and also monitors contractors' delays in repayment on an ongoing
basis.
The maximum credit risk exposure is approximately equal to the book value of trade receivables, net of receivables
insured and cash and cash equivalents. As at 31 December 2023, the maximum credit risk exposure was PLN 51,923
thousand (as at 31 December 2022: PLN 22,056 thousand).
5.3 Liquidity risk
The Management Board of the Company believes that the Company’s liquidity is secured for the foreseeable future. The
Company follows a prudent liquidity risk management policy which focuses on maintaining an adequate level of cash and
securing the ability to use the credit facilities. The Management Board monitors the level of short-term liabilities and
current assets, as well as current cash flows of the Company. A significant increase in the value of inventories is in line
with the adopted liquidity management policy and enables the continuity of sales in the event of delays in the supply
chains.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
26
Key items analysed for the purpose of monitoring of the liquidity risk are as follows:
31 December 2023
31 December 2022
Current assets
286,852
310,289
Current liabilities
40,763
102,626
2023
2022
Cash flow from operating activities
141,697
54,148
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
27
The table below presents financial liabilities of the Company by maturities, which are determined based on contractual future payment dates, uniform for each group of
liabilities. The figures presented below represent undiscounted contractual cash flows.
Due date
up to 3 months
4-6 months
7-12 months
2-3 years
4-5 years
More than 5 years
Total
Loans
-
-
-
-
-
-
-
Trade and other payables
19,677
-
-
-
-
-
19,677
Lease liabilities
1,773
470
3,115
13,516
1,609
3,998
24,481
Warranty liability
500
-
-
-
-
-
500
As at 31 December 2023
21,950
470
3,115
13,516
1,609
3,998
44,658
Loans
25,150
5,825
39,893
18,477
-
-
89,345
Trade and other payables
13,385
-
-
-
-
-
13,385
Lease liabilities
1,885
1,845
3,477
3,977
399
4,004
15,587
Warranty liability
539
-
-
-
-
-
539
As at 31 December 2022
40,959
7,670
43,370
22,454
399
4,004
118,856
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
28
5.4 Capital management
The Management Board of the Company defines capital as the Company’s equity. The equity held by the Company meets
the requirements provided for in the Polish Commercial Companies Code. There are no other capital requirements
imposed by external regulations.
The Company’s capital management activities are aimed at protecting the Company’s ability to continue its operations
so as to ensure a return on investment for the shareholders and benefits for other interested parties, as well as
maintenance of the optimum capital structure to lower the cost of capital.
The Company also follows a rule that non-current assets are to be fully financed by equity.
31 December 2023
31 December 2022
Non-current assets
114,438
107,113
Equity
344,405
291,541
One of the important indicators from the management point of view is the equity ratio understood as the ratio of equity
to total assets.
31 December 2023
31 December 2022
Equity
344,405
291,541
Total assets
401,290
417,402
Equity ratio
86%
70%
In the period covered by these financial statements, the Company implemented the above objective.
6. Financial instruments
As at 31 December 2023
Financial assets
Financial liabilities
Measured at amortised cost
Measured at amortised cost
Trade receivables
32,160
-
Cash and cash equivalents
49,107
-
Trade and other payables
19,704
Loans and borrowings
-
-
Lease liabilities
19,573
TOTAL
81,267
39,277
As at 31 December 2022
Financial assets
Financial liabilities
Measured at amortised cost
Measured at amortised cost
Trade receivables
54,497
-
Cash and cash equivalents
1,386
-
Trade and other payables
-
13,417
Loans and borrowings
-
82,167
Lease liabilities
-
12,045
TOTAL
55,883
107,629
Revenue and expense recognised in the 2023 and 2022, financial results, relating to financial assets or financial liabilities
not measured at fair value though profit or loss are presented below:
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
29
12 months ended 31 December 2023
Financial assets
Financial liabilities
Interest income
216
-
Interest expenses
-
(3,602)
Profits on exchange differences
2,951
6,672
Losses on exchange differences
(4,584)
(2,510)
Establishment of impairment write-downs
-
-
Reversal of impairment write-downs
81
-
Total net profit/ (loss)
(1,336)
560
12 months ended 31 December 2022
Financial assets
Financial liabilities
Interest expenses
-
(8,877)
Profits on exchange differences
5,730
6 385
Losses on exchange differences
(4,475)
(6,617)
Reversal of impairment write-downs
(12)
-
Total net profit/ (loss)
1,243
(9,109)
Fair value estimation
In the Company's opinion, the fair value of financial assets and liabilities does not differ from their carrying amount,
mainly due to their short maturity. In case of long-term financial liabilities measured at amortized cost, the Company uses
market interest rates. Therefore the Company estimates that the carrying value of these liabilities also does not differ
significantly from their fair value.
7. Property, plant and equipment
31 December
2023
31 December
2022
Land
2,907
2,907
Buildings and structures
7,215
7,452
Plant and equipment
3,301
3,515
Vehicles
1,174
87
Other
3,103
3,271
Total
17,700
17,232
Property, plant and equipment not transferred for use
602
483
Total property, plant and equipment
18,302
17,715
Apart from the property, plant and equipment serving as security in respect of working capital facilities (note 17), there
are no restrictions on the use of property, plant and equipment held by the Company.
In 2023 and 2022 the Company did not capitalise borrowing costs due to the insignificancy of these amounts.
As at 31 December 2023, the Company had no commitments to expenditure on property, plant and equipment.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
30
Changes in property, plant and equipment by type
Land
Buildings and structures
Technical equipment
and machinery
Vehicles
Other
Fixed assets not
transferred for use
Total
Initial value
As at 1 January 2023
2,907
13,396
10,260
626
7,644
483
35,316
Purchase
-
-
-
-
337
1,222
1,559
Liquidation
-
-
(2)
(42)
(8)
-
(52)
Reclassification
-
201
788
2,548
114
(1,103)
2,548
As at 31 December 2023
2,907
13,597
11,046
3,132
8,087
602
39,371
As at 1 January 2022
2,907
13,191
7,453
666
10,371
688
35,276
Purchase
-
-
-
-
278
2,321
2,599
Liquidation
-
(6)
(1,400)
(134)
(3,213)
-
(4,753)
Reclassification
-
211
4,207
94
208
(2,526)
2,194
As at 31 December 2022
2,907
13,396
10,260
626
7,644
483
35,316
Accumulated depreciation
As at 1 January 2023
-
5,944
6,745
539
4,373
-
17,601
Depreciation for the period
-
438
1,002
160
618
-
2,218
Decreases
-
-
(2)
(42)
(7)
-
(51)
Reclassification
-
-
1,301
-
-
1,301
As at 31 December 2023
-
6,382
7,745
1,958
4,984
-
21,069
As at 1 January 2022
-
5,501
4,948
573
6,835
-
17,857
Depreciation for the period
-
445
1,066
27
745
-
2,283
Decreases
-
(2)
(1,392)
(110)
(3,207)
-
(4,711)
Reclassification
-
2,123
49
-
-
2,172
As at 31 December 2022
-
5,944
6,745
539
4,373
-
17,601
Carrying amount
As at 31 December 2023
2,907
7,215
3,301
1,174
3,103
602
18,302
As at 31 December 2022
2,907
7,452
3,515
87
3,271
483
17,715
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
31
8. Intangible assets
31 December 2023
31 December 2022
Licences, concessions and patents, including:
2,298
2,301
– software
2,298
2,301
Other - trademarks and industrial designs
386
328
Total
2,684
2,629
Intangible assets under development
916
1,147
Total intangible assets
3,600
3,776
There are no material intangible assets produced internally by the Company.
No collateral was established on intangible assets.
Intangible assets under development include licences and software that is being implemented. No impairment was
reported for these intangible assets.
The table below presents changes in intangible assets:
Software
Trademarks and
industrial designs
Intangible assets
under development
Total
Initial value
As at 1 January 2023
5,631
668
1,147
7,446
Purchase
-
-
518
518
Liquidation
-
-
-
-
Reclassification
627
122
(749)
-
As at 31 December 2023
6,258
790
916
7,964
As at 1 January 2022
5,255
572
488
6,315
Purchase
-
-
1,207
1,207
Liquidation
(76)
-
-
(76)
Reclassification
452
96
(548)
-
As at 31 December 2022
5,631
668
1,147
7,446
Accumulated amortization
As at 1 January 2023
3,330
340
-
3,670
Amortization for the period
630
64
-
694
Liquidation
-
-
-
-
As at 31 December 2023
3,960
404
-
4,364
As at 1 January 2022
2,857
269
-
3,126
Amortization for the period
549
71
-
620
Liquidation
(76)
-
-
(76)
As at 31 December 2022
3,330
340
-
3,670
Carrying amount
As at 31 December 2023
2,298
386
916
3,600
As at 31 December 2022
2,301
328
1,147
3,776
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
32
9. Right-of-use assets
31 December
2023
31 December
2022
Perpetual usufruct right to land
1,770
1,796
Buildings and structures
15,335
5,297
Plant and equipment
1,204
1,458
Vehicles
1,539
4,314
Total
19,848
12,865
Changes in the right-of-use assets are presented below:
Land
Buildings and
structures
Technical
equipment and
machinery
Vehicles
Total
Initial value
As at 1 January 2023
1,897
18,075
1,775
8,082
29,829
Modification of lease contracts
-
14,537
-
-
14,537
Reclassification - repurchase
-
-
-
(2,548)
(2,548)
As at 31 December 2023
1,897
32,612
1,775
5,534
41,818
As at 1 January 2022
1,897
12,972
3,898
8,117
26,884
Modification of lease contracts
-
5,103
-
36
5,139
Reclassification - repurchase
-
-
(2,123)
(71)
(2,194)
As at 31 December 2022
1,897
18,075
1,775
8,082
29,829
Accumulated depreciation
As at 1 January 2023
101
12,778
317
3,768
16,964
Depreciation
26
4,499
254
1,528
6,307
Reclassification - repurchase
-
-
-
(1,301)
(1,301)
As at 31 December 2023
127
17,277
571
3,995
21,970
As at 1 January 2022
76
8,632
1,920
2,135
12,763
Depreciation
25
4,146
520
1,682
6,373
Reclassification - repurchase
-
-
(2,123)
(49)
(2,172)
As at 31 December 2022
101
12,778
317
3768
16,964
Carrying amount
As at 31 December 2023
1,770
15,335
1,204
1,539
19,848
As at 31 December 2022
1,796
5,297
1,458
4,314
12,865
In 2023, the Company did not conclude any new lease agreements. The warehouse lease agreement was modified - as a
result of concluding an annex, the lease period was extended and the rent rates were indexed. Right-of-use assets and
the lease liability were therefore increased by PLN 14,537 thousand.
As a result of the purchase of forklifts and cars after the end of the leasing period, in accordance with the conditions
provided for in the contracts, the Company reclassified these assets to fixed assets. Initial value of rights-of-use assets
was reduced by PLN 2,548 thousand (net book value of PLN 1,247 thousand on the repurchase date).
Lease liabilities are presented in note 20.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
33
10. Investments in subsidiaries
As at 31 December 2023 and 31 December 2022 the Company held shares in the following entities:
Country
Type of equity link
% of shares and votes
held
Value of shares
31 December 2023
Toya Romania S.A.
Romania
Subsidiary
99.99
1,885
Yato Tools (Shanghai) Co. Ltd
China
Subsidiary
100.00
20,746
Yato Tools (Jiaxing) Co. Ltd.
China
Subsidiary
100.00
48,172
70,803
31 December 2022
Toya Romania S.A.
Romania
Subsidiary
99.99
1,885
Yato Tools (Shanghai) Co. Ltd
China
Subsidiary
100.00
20,746
Yato Tools (Jiaxing) Co. Ltd.
China
Subsidiary
100.00
48,172
70,803
The Company has not identified any indications of impairment of its investments in subsidiaries.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
34
Key financial data of subsidiaries is presented in the table below (data before consolidation adjustments).
Non-current assets
Current assets
Equity
Long-term
liabilities
Short-term
liabilities
Revenues (*)
Expenses (**)
Net profit
2023
Yato Tools (Jiaxing) Co. Ltd.
40,895
83,064
76,560
402
46,997
338,616
(332,190)
6,426
Yato Tools (Shanghai) Co. Ltd.
9,671
69,027
32,463
2,271
43,964
143,105
(142,524)
581
Toya Romania S.A.
14,628
54,813
44,262
9,729
15,449
87,243
(80,435)
6,808
TOTAL
65,194
206,904
153,285
12,402
106,410
568,964
(555,149)
13,815
2022
Yato Tools (Jiaxing) Co. Ltd.
44,689
86,477
80,910
546
49,710
344,400
(328,283)
16,117
Yato Tools (Shanghai) Co. Ltd.
4,826
66,358
36,613
880
33,691
142,863
(141,789)
1,074
Toya Romania S.A.
15,866
61,822
40,920
10,869
25,898
88,671
(81,188)
7,483
TOTAL
65,381
214,657
158,443
12,295
109,299
575,934
(551,260)
24,674
(*) revenues comprise: revenue from the sales of goods for resale, other operating revenue and financial revenue
(**) expenses comprise: cost of goods for resale sold, selling costs, administrative expenses, expected credit losses, other operating expenses, financial expenses and income tax expense
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
35
11. Inventory
31 December
2023
31 December
2022
Goods for resale at warehouse and in transit
204,077
247,780
Asset for expected returns from customers
378
90
Total inventory (carrying amount)
204,455
247,870
Revaluation write-down for goods at warehouse to net recoverable amount
2,963
2,141
Gross inventories
207,418
250,011
Changes in the write-down of inventories to net realizable value are presented in the table below:
2023
2022
As at 1 January
2,141
1,384
Increase
822
757
Reversal/utilisation
-
-
As at 31 December
2,963
2,141
Reversal of inventory write-downs made in the current year as well as write-downs made in previous years were recorded
in the financial result and presented as cost of goods for resale sold. Reversal of write-offs resulted from a decrease in
the value of these inventories, which, in accordance with the policy adopted by the Company, should be written down,
mainly as a result of their sale.
12. Trade and other short-term receivables
31 December
2023
31 December
2022
Trade receivables from related parties
1,600
20,130
Trade receivables from third parties
32,429
36,317
Total trade receivables
34,029
56,447
Other receivables from third parties
52
44
Advances for deliveries
-
4,760
Advances paid to other entities
-
34
Prepayments and deferred costs
1,114
887
Total gross receivables
35,195
62,172
Impairment write-downs of doubtful trade receivables
(1,869)
(1,950)
Impairment write-downs of other receivables
(36)
(36)
Total net receivables
33,290
60,186
The Company applies a simplified approach and measures the allowance in an amount equal to the expected credit losses
throughout the life cycle using the provision matrix, described in the accounting policies descried in Note 2.12. The
average repayment period of receivables is 36 days.
Changes in gross trade receivables are summarized in table below:
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
36
Receivables analysed
in group
Receivables analysed
individually
Total
As at 1 January 2023
54,800
1,647
56,447
Increase due to sales
662,002
-
662,002
Interest and litigation costs
-
-
-
Receivables and overpayment written off
21
-
21
Receivables classified individually as irrecoverable
(405)
405
-
Collected receivables
(684,584)
(55)
(684,639)
Compensated receivables
(961)
-
(961)
Other changes, including currency translation differences
1,159
-
1,159
As at 31 December 2023
32,032
1,997
34,029
Changes in the write-downs of trade receivables are presented in the table below:
2023
2022
As at 1 January
1,950
1,986
Increase
-
12
Utilisation
-
(48)
Reversal
(81)
-
As at 31 December
1,869
1,950
Collaterals established on receivables are described in note 17.
The table below presents the ageing structure of receivables, including average expected credit loss ratio for each
overdue period.
31 December 2023
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables
34,029
29,908
1,906
214
-
2,001
Group analysis – gross value
32,032
29,908
1,906
214
-
4
Expected credit loss ratio
0,5%-5%
1%-10%
5%-25%
10%-50%
20%-100%
Expected credit losses
(198)
(159)
(22)
(13)
-
(4)
Individual analysis – gross value
1,997
-
-
-
-
1,997
Impairment loss on individual
customers
(1,671)
-
-
-
-
(1,671)
Total expected credit losses
(1,869)
(159)
(22)
(13)
-
(1,675)
Total net trade receivables
32,160
29,749
1,884
201
-
326
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
37
31 December 2022
Total
Not overdue
0-30 days
31-60 days
61-90 days
over 90 days
Gross trade receivables
56,447
52 914
1,646
125
101
1,661
Group analysis – gross value
54,800
52,914
1,646
125
101
14
Expected credit loss ratio
0,5%-5%
1%-10%
5%-25%
10%-50%
20%-100%
Expected credit losses
(307)
(256)
(21)
(7)
(13)
(10)
Individual analysis – gross value
1,647
-
-
-
-
1,647
Impairment loss on individual
customers
(1,643)
-
-
-
-
(1,643)
Total expected credit losses
(1,950)
(256)
(21)
(7)
(13)
(1,653)
Total net trade receivables
54,497
52,658
1,625
118
88
8
The individual analysis is carried out in relation to customers for which indicators described in the policy in note 2.12
have been identified, i.e. most often overdue for over 90 days, which results in the customer being transferred for debt
collection. The allowance for expected credit losses for this group of customers is determined taking into account the
terms and conditions of insurance, provided that the customer is subject to insurance, i.e. the allowance includes the
own contribution in accordance with the concluded agreement. In relation to receivables analysed individually, the part
not covered by the write-down relates to the insured receivables.
In relation to the remaining customers, analysed in groups with the use of the provisions matrix, expected credit loss
ratios are determined separately for insured receivables (lower range limits shown in the table above) and uninsured
receivables (main range limits).
13. Cash and cash equivalents
31 December
2023
31 December
2022
Cash in hand and at bank
49,107
1,386
Total cash and cash equivalents
49,107
1,386
Apart from cash disclosed in the statement on financial position, the Company has a separate bank account for the funds
of the Company Social Benefits Fund (ZFŚS) which are presented under other receivables in their net amount together
with liabilities towards the ZFŚS and receivables under loans granted. As at 31 December 2023, these funds amounted to
PLN 74 thousand and as at 31 December 2022 to PLN 1 thousand. The Company may use these funds only in the manner
provided for by the law with regard to the ZFŚS funds.
As a result of implementation of VAT split payment mechanism, the Company has dedicated VAT bank accounts, where
VAT amounts from invoices settled by the vendors of TOYA S.A. will be transferred. Funds collected in these VAT accounts
may only be used for VAT settlements concerning invoices received and settlements of tax liabilities. As at 31 December
2023, the cash balance in these VAT accounts totalled PLN 265 thousand (31 December 2022: PLN 1,141 thousand).
According to the Management Board's judgment, restrictions on the use of these funds resulting from tax regulations do
not affect their classification as cash and cash equivalents, as the Company uses them on an ongoing basis to settle its
short-term liabilities.
Apart from the VAT and ZFŚS funds, as at 31 December 2023 and 31 December 2022, the Company did not have any cash
of limited disposability.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
38
14. Additional explanation to cash flow statement
Reconciliation of changes in balance sheet items as shown in the statements of financial position and in the statements
of cash flows:
Adjustments
12 months ended 31 December 2023
Balance sheet
change
Measurement
of cash in
foreign
currencies
Valuation of the
financial
guarantee
granted
Actuarial
gains/losses
recognised in
comprehensive
income
Change
in the cash flow
statement
Change in trade and other receivables
26,896
-
-
-
26,896
Change in inventories
43,415
-
-
-
43,415
Change in provisions
(118)
-
-
-
(118)
Change in trade and other payables
2,357
-
5
-
2,362
Change in employee benefit liabilities
1,028
-
-
(38)
990
Change in cash
47,721
7
-
-
47,728
Adjustments
12 months ended 31 December 2022
Balance sheet
change
Measurement of
cash in foreign
currencies
Actuarial
gains/losses
recognised in
comprehensive
income
Change
in the cash flow
statement
Change in trade and other receivables
(26,584)
-
-
(26,584)
Change in inventories
37,690
-
-
37,690
Change in provisions
72
-
-
72
Change in trade and other payables
(16,144)
3
-
(16,141)
Change in employee benefit liabilities
(250)
-
168
(82)
Change in cash
157
-
157
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
39
15. Share capital
As at 31 December 2023, the share capital amounts to PLN 7,504,222.60 and comprises 75,042,226 shares with a par
value of PLN 0.1 each.
All of the shares are paid up. The ownership structure and the percentage of the Company's shares held as at
31 December 2023, based on the information provided to the Company by the shareholders, are presented in the table
below:
Name
Status
Number of shares
Type of shares
Par value per
share (PLN)
Par value of the
shares (PLN)
Structure (%)
Jan Szmidt
natural person
28,284,304
ordinary bearer
0.1
2,828 430.40
37.69%
Romuald Szałagan
natural person
9,652,290
ordinary bearer
0.1
965 229.00
12.86%
Generali OFE
legal person
5,001,147
ordinary bearer
0.1
500 114.70
6.66%
Other
- share below 5%
not applicable
32,104,485
ordinary bearer
0.1
3,210 448.50
42.79%
TOTAL
75,042,226
7,504 222.60
100.00%
16. Retained earnings and dividend per share
On 29 June 2023, the General Meeting of Shareholders of Toya S.A. approved TOYA's financial statements for 2022, and
also decided to transfer the profit for 2022 in the amount of PLN 46,069 thousand to supplementary capital.
In line with the provisions of the Commercial Companies Code, retained earnings are used to create statutory reserve
funds, to which at least 8% of the profit generated in a given financial year is transferred until the statutory reserve funds
reach at least one-third of the share capital, i.e. in the case of the Company – PLN 2,501 thousand as at 31 December
2023. These statutory reserve funds are exempt from distribution among shareholders and may only be used to cover
losses. As at 31 December 2022 and 31 December 2021, the supplementary capital was created in the required amount.
The retained earnings as at 31 December 2023 represent result for the current year, supplementary capital created from
the Company’s profits from previous years and may be allocated to dividends, in addition to the amount excluded from
the distribution indicated in the paragraph above.
In 2023 and 2022, the Company did not pay dividends.
Management Board of the Company did not provide recommendation on 2023 profit distribution.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
40
17. Loans and borrowings liabilities
31 December
2023
31 December
2022
Bank loan liabilities, including
-
82,167
– long-term
-
17,143
– short-term
-
65,024
Changes in bank loans are presented in the table below:
Revolving
bank loans
Non-revolving
bank loans
Bank loans
TOTAL
As at 1 January 2022
73,455
23 498
96,953
Increase in loans
-
16,554
16,554
Interest for the period (note 27)
6,150
2,004
8,154
Interest repaid
(6,001)
(1,818)
(7,819)
Loans repaid
(31,675)
(31,675)
As at 31 December 2022
41,929
40,238
82,167
Increase in loans
-
-
-
Interest for the period (note 27)
1,145
1,659
2,804
Interest repaid
(1,352)
(1,897)
(3,249)
Loans repaid
(41,722)
(40,000)
(81,722)
As at 31 December 2023
-
-
-
– long-term
-
-
-
– short-term
-
-
-
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
41
Description of loan agreements:
Object and value of agreement
Name of the Bank
Loan amount as
per agreement as
at 31 December
2023
Amount
outstanding as at
31 December
2023
Amount
outstanding as at
31 December
2022 (*)
Current interest rate
Date of expiry
1. Overdraft facility agreement No BDK/KR-
RB/000054601/0641/10 of 22 December 2010.
Bank Handlowy w Warszawie
S.A.
70,000
-
21,159
WIBOR 1 M + bank’s margin
13 December 2024
2. Overdraft credit facility agreement No 09/030/19/Z/VV
mBank S.A. with its registered
office in Warsaw
60,000
-
18,991
WIBOR ON + bank’s margin
29 March 2024
3. Overdraft credit facility agreement No WAR/8833/20/326/CB
BNP Paribas Bank Polska S.A.
with its registered office in
Warsaw
25,000
-
1,779
WIBOR 1 M + bank’s margin
15 November 2024
4. Non-revolving loan agreement no WAR/8833/20/327/CB
BNP Paribas Bank Polska S.A.
with its registered office in
Warsaw
-
-
40,238(**)
WIBOR 1 M + bank’s margin
19 September 2023
Total liabilities, of which:
155,000
-
82,167
– short-term portion
155,000
-
65,024
– long-term portion
-
-
17,143
(*) the amount used is presented together with interest due and not repaid as at 31 December 2022
(**) including PLN 40,000 thousand of the loan used and PLN 238 thousand of accrued and unpaid interest as at 31 December 2022
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements
42
During the year ended on 31 December 2023, there were no significant changes to the contractual terms of the loans or
expected cash flows.
The bank margins relating to the loans listed above do not exceed 1%.
The value of mortgage collateral was determined as the sum of collateral established in favour of individual lending banks,
in the amount required by the banks (in the amount resulting from the agreement). The book value of assets secured by
mortgage as at 31 December 2023 amounted to PLN 10,122 thousand (as at 31 December 2022: PLN 10,359 thousand).
The value of the assignment of receivables of PLN 9,376 thousand (PLN 46,111 thousand as at 31 December 2022) was
determined at the book value of the collateral. The value of the security in the form of transfer of ownership of inventory
together with the assignment of rights from the insurance policy was set at the maximum amount resulting from the
contracts and amounted to PLN 50,109 thousand as at 31 December 2023.
The security is valid for the entire duration of the loan agreements. The Company has limited ability to dispose of assets
on which security is established in the form of a mortgage. In the event of a transfer of receivables from trade receivables,
the Company is obliged not to perform any legal or factual actions that would limit the Company's ability to dispose of
these receivables. Moreover, the Company undertook not to grant loans or guarantees to other entities during the entire
loan period without the bank's prior consent.
Effective interest rate for loans
The effective interest rates are close to the nominal interest rates calculated in line with the terms of the agreements
described above. As at 31 December 2023, the weighted average cost of loans (excluding commissions) was 7.24% (as at
31 December 2022: 8.99%).
Defaults under loan agreements
As at 31 December 2023, the Company did not default on its debt repayment obligations or on any other of its obligations
under loan agreements in a manner which would result in an acceleration of debt repayment.
Loan agreements require the borrower to maintain its capitalisation and debt ratios at an agreed level throughout the
lending period and to maintain inflows to bank accounts in the agreed amount, in accordance with the terms of the loan
agreements.
The Company has good relationships with banks, and in its activity to date it had no problems with renewal of bank loans.
Based on this, the Management Board believes that the risk resulting from short-term financing is not significant.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
43
18. Trade and other payables
31 December
2023
31 December
2022
Trade payables to related parties
3,809
1,196
Trade payables to third parties
15,234
12,008
Total trade payables
19,043
13,204
Tax liabilities
5,283
8,852
Liability due to expected goods returns
589
146
Prepayments received
66
427
Other payables to third parties
45
35
Total other current payables
5,983
9,460
Total
25,026
22,664
Advances received represent contractual obligations in accordance with IFRS 15.
An average payables payment period is 16 days.
During the year ended 31 December 2023, the Company recognized revenues in the amount of PLN 427 thousand, which
were classified as prepayments at the beginning of the period.
19. Liabilities from employee benefits
31 December
2023
31 December
2022
Provisions for retirement benefits, disability pensions and for death benefits
678
566
Liabilities from employee benefits – non-current portion
678
566
Provisions for retirement benefits, disability pensions and for death benefits
53
69
Payroll liabilities
6,290
5,449
Unused holidays
1,837
1,746
Liabilities from employee benefits – current portion
8,180
7,264
The Company pays retirement benefits, disability pensions and death benefits in accordance with the Labour Code,
in the amount of a one month’s remuneration. The amount of provision for retirement benefits and death benefits
as at 31 December 2023 and 31 December 2022 was estimated by an actuary. The basic assumptions were as follows:
Assumptions
31 December
2023
31 December
2022
Discount rate (risk-free rate)
5.07%
6.73%
Growth rate of remunerations
- in the first year
9.00%
9.00%
- in the second year
7.00%
7.00%
- in the third year
5.00%
5.00%
- in the subsequent years
3.50%
3.50%
Assumptions concerning future mortality are determined based on statistics published by the Central Statistical Office
(GUS).
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
44
The statement of actuarial gains and losses is presented below.
31 December
2023
31 December
2022
Current value of liability as at 1 January
635
724
current service cost
56
69
net interest on net liability
40
28
actuarial gains or losses, including resulting from:
38
(168)
changes in demographic assumptions
(23)
18
changes in financial assumptions
144
(169)
ex post adjustments of actuarial assumptions
(83)
(17)
benefits paid
(38)
(18)
Current value of liability as at 31 December
731
635
Total expenses recognised in profit or loss in respect of future employee benefits amounted to PLN 96 thousand in 2023
and PLN 97 thousand in 2022 and were recognised in administrative expenses. Actuarial losses incurred in 2023
amounted to PLN 38 thousand (in 2022: gains in the amount of PLN 168 thousand) and were recognised in other
comprehensive income.
Sensitivity analyses of liability under defined benefits (retirement benefits, disability pensions and death benefits) to
changes in main weighted estimates as at 31 December 2023 are as follows:
Assumption
Changes in the
assumption
Increase in the
assumption
Decrease in the
assumption
technical discount rate
1%
(38)
41
salary rise in the Company
1%
86
(74)
turnover ratio
1%
(31)
34
The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In
practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the
sensitivity of the defined benefit obligation to significant actuarial assumptions, the same method (present value of the
defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been
applied as when calculating the pension liability recognised within the statement of financial position.
The methods and types of assumptions used for preparing the sensitivity analysis did not change compared to the
previous period.
The table below contains the profile of the forecast cash flows in the coming years, by relevant benefits. These values
take into account the nominal amounts paid out and their probability.
name of benefit
1
st
year
2
nd
year
3
rd
year
4
th
year
5
th
year
6
th
year
(and further)
retirement benefit
42
13
9
59
23
2,618
disability pension
2
2
2
2
2
32
death benefit
11
12
14
14
16
557
total
55
27
25
75
41
3,207
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
45
20. Lease liabilities
The Company has the right of perpetual usufruct of land and uses warehouses, offices, servers, passenger cars and
forklifts on the basis of rental and leasing contracts. The change in liabilities resulting from these contracts, taking into
account the impact of adoption of IFRS 16, is presented below.
2023
2022
Lease liability as at 1 January
12,045
13,664
Modification of the terms of the contract
14,537
5,138
Accrued interest
797
723
Lease payments (*)
(7,162)
(7,548)
Valuation of contracts in foreign currencies and currency translation differences
(644)
68
Lease liability as at 31 December
19,573
12,045
(*) lease payments include net amounts paid, according to invoices, including both capital instalments and interest.
Undiscounted future cash flows are presented below.
31 December
31 December
2023
2022
up to 1 year
5,358
7,207
1–3 years
13,516
3,977
3–5 years
1,609
399
more than 5 years
3,998
4,004
Total
24,481
15,587
The costs resulting from lease contracts are presented below.
2023
2022
Amortization and depreciation
6,307
6,372
interest
798
722
exchange rate differences
(645)
69
Total
6,460
7,163
During the year ended 31 December 2023, the Company incurred costs in connection with the short-term lease
agreements in the amount of PLN 14 thousand and low-value lease agreements in the amount of PLN 30 thousand.
Total cash outflow from leases in 2023 amounted to PLN 7,206 thousand (excluding VAT).
Information on leased assets is presented in note 9.
The maturity analysis of lease liabilities is presented in note 5.3.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
46
21. Provisions
Provision for warranty repairs
2023
2022
As at 1 January
1,123
1,051
Provision created
1,005
1,123
Provision utilized
(1,123)
(1,051)
As at 31 December
1,005
1,123
Short-term as at 31 December
1,005
1,123
The provision for guarantee repairs is created in accordance with the policy described in note . The obligation of the
Company to incur the costs of guarantee repairs results from general provisions on surety and guarantee granted to
certain product groups. It is to be used within less than 12 months, and the amount is estimated based on historical costs
of guarantee repairs borne; thus, the uncertainty towards its value should not have a material impact on the Company’s
future results. Provisions are recognised in the financial result under “costs of goods for resale sold”.
22. Operating segments
Identification of operating and reporting segments
The Management Board of the Company makes decisions related to the Company’s operations from the perspective of
distribution channels and geographical coverage.
The company distinguishes 4 operating and reporting segments in its operations:
• sales on the domestic market to retail chains;
• sale on the domestic market - wholesale market;
• foreign sales;
• retail sales.
As part of the retail networks segment, the Group cooperates with large retail networks throughout Poland and Romania.
Wholesale on all markets where the Group holds its entities is conducted through a network of wholesalers and stores.
Foreign markets are supported using sales department of the Company. As part of retail sales, sales are mainly realized
through an online store and popular online platforms. There are no revenues obtained from transactions between the
segments, therefore all revenues generated by individual segments come from transactions with external customers.
Data analysed by the Management Board of the Company for segment description is consistent with the data disclosed
in the statement of comprehensive income.
In 2023 and in 2022 the Company did not record revenue from sale to a single external customer exceeding 10% of total
sales revenue.
As at 31 December 2023, the Company’s assets amounted to PLN 401,290 thousand (31 December 2022: PLN 417,402
thousand), and the Company’s liabilities amounted to PLN 56,885 thousand (31 December 2022: PLN 125,861 thousand)
and were related only to trading activities. The Management Board of the Company does not analyse the assets and
liabilities of the Company broken down into individual segments.
The Company has no non-current assets located abroad.
The most important geographic export directions of the Company are disclosed in note 23. Moreover, in the report on
its activities, the Company also presented information by brand.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
47
12 months ended
31 December 2023
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
Total
Sales revenue
Sales to external customers
by geographical areas:
Poland
-
253,196
65,208
48,538
366,942
Other countries
204,894
-
-
-
204,894
Total segment revenue
204,894
253,196
65,208
48,538
571,836
Cost of goods sold
Sales to external customers
(156,366)
(176,764)
(47,421)
(27,092)
(407,643)
Total costs of goods sold
(156,366)
(176,764)
(47,421)
(27,092)
(407,643)
Gross profit
48,528
76,432
17,787
21,446
164,193
Gross profit margin
24%
30%
27%
44%
29%
12 months ended
31 December 2022
EXPORT SALES
WHOLESALE
MARKET
RETAIL
NETWORKS
RETAIL SALES
Total
Sales revenue
Sales to external customers
by geographical areas:
Poland
-
259,657
69,098
46,949
375,704
Other countries
218,606
-
-
-
218,606
Total segment revenue
218,606
259,657
69,098
46,949
594,310
Cost of goods sold
Sales to external customers
(163 591)
(193,900)
(49,377)
(27,653)
(434,521)
Total costs of goods sold
(163,591)
(193,900)
(49,377)
(27,653)
(434,521)
Gross profit
55,015
65,757
19,721
19,296
159,789
Gross profit margin
25%
25%
29%
41%
27%
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
48
23. Sales revenue
12 months ended
31 December 2023
12 months ended
31 December 2022
Sales of goods for resale
571,836
594,310
Total sales revenue
571,836
594,310
The geographical structure of sales revenues is presented below. Moreover, in the report on its activities, the Company
also presented information by brand.
12 months ended 31 December 2023
12 months ended 31 December 2022
Sales revenue
Share
Sales revenue
Share
Ukraine
37,393
6.5%
26,128
4.4%
Romania
34,407
6.0%
54,092
9.1%
Hungary
23,905
4.2%
21,096
3.6%
Belarus
21,324
3.7%
18,419
3.1%
Baltic countries
20,090
3.5%
22,399
3.8%
Czech Republic
11,786
2.1%
11,193
1.9%
Bulgaria
10,057
1.8%
9,348
1.6%
Moldova
8,708
1.5%
11,825
2.0%
Greece
6,969
1.2%
7,016
1.2%
Russia
6,075
1.1%
7,335
1.2%
Germany
4,792
0.8%
6,641
1.1%
Europe – other EU countries
9,321
1.6%
10,965
1.8%
Europe – other non-EU countries
7,546
1.3%
8,991
1.5%
Other continents
2,521
0.5%
3,158
0.5%
Total export
204,894
35.8%
218,606
36.8%
Poland
366,942
64.2%
375,704
63.2%
Total sales revenue
571,836
100.0%
594,310
100.0%
The company has been present on the markets of Eastern Europe for a long time, in particular in Ukraine, Belarus and
Russia. Despite its long presence on these markets, the Company did not have any assets there, and transactions with
local customers were of a short-term nature. The Russian-Ukrainian conflict that started with hostilities on 24 February
2022 disrupted trade relations in these markets, resulting in a temporary freezing of relations with some clients or
suspension of cooperation. It should be emphasized that the Company complied with all sanctions imposed by the Polish
government, European Union structures, governments of other countries and international institutions on entities,
persons and goods indicated in the relevant legal acts. TOYA S.A. has implemented appropriate procedures in this regard.
However, the implemented procedures and the need to verify and comply with all economic sanctions resulted in a
slowdown in trade with customers from these markets, which is, however, beyond the Company's control. This may
impact trade with customers present in these markets in future quarters.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
49
24. Cost by type and cost of goods sold
12 months ended
31 December 2023
12 months ended
31 December 2022
Amortisation and depreciation
9,219
9,276
Material and energy consumption
6,277
7,100
Third-party services, including:
25,511
28,141
costs of transportation
7,414
8,080
warehouse services
201
3,602
service charges for space lease agreements
2,463
2,651
IT and telecommunications costs
2,504
2,230
costs of accessing online sales platforms
6,849
6,490
legal, audit and consulting costs
2,412
1,892
other external services
3,668
3,196
Taxes and fees
2,389
1,762
Costs of employee benefits
47,951
43,459
Other costs by type
6,387
4,595
Value of goods for resale and materials sold
407,643
434,521
Total costs by type and value of goods for resale sold
505,377
528,854
Selling costs, including:
74,142
73,143
amortisation and depreciation
7,649
7,601
costs of employee benefits
31,140
28,550
Administrative expenses, including:
23,592
21,190
amortisation and depreciation
1,570
1,675
costs of employee benefits
16,811
14,909
Cost of goods for resale sold
407,643
434,521
Total selling, administrative costs and costs of goods sold
505,377
528,854
The Company does not conduct important R&D works.
25. Cost of employee benefits
12 months ended
31 December 2023
12 months ended
31 December 2022
Salaries for employment contracts and appointment contracts
37,394
32,985
Wages of temporary workers
1,946
2,705
Cost of social insurance
7,124
6,233
Cost of provision for unused leaves
91
194
Cost of provision for retirement benefits
58
79
Cost of retirement and similar benefits paid
38
18
Cost of other employee benefits
1,300
1,245
Total employee benefit costs
47,951
43,459
Information on the number of employees is presented below:
12 months ended
31 December 2023
12 months ended
31 December 2022
Average number of employees per full-time equivalent
322
324
Persons employed at the end of the year
325
330
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
50
26. Other operating revenue and expenses
OTHER OPERATING REVENUE
12 months ended
31 December 2023
12 months ended
31 December 2022
Surplus of FX gains over FX losses on operating activities
2,529
1,023
Revenue from other sales
95
229
Compensations received
14
14
Interest received
-
-
Gain on sale of property, plant and equipment
25
29
Traffic damages on balance with received compensation
2
-
Other operating revenue
74
68
Total other operating revenue
2,739
1,363
OTHER OPERATING EXPENSES
12 months ended
31 December 2023
12 months ended
31 December 2022
Cost of other sales
179
281
Penalties and fines paid
93
1
Court and debt recovery fees
3
38
Donations given
5
55
Receivables written-off
-
1
Other
26
10
Total other operating expenses
306
386
27. Financial revenues and expenses
FINANCIAL REVENUE
12 months ended
31 December 2023
12 months ended
31 December 2022
Interest on cash in bank accounts
216
-
Other financial revenue
5
3
Total financial revenue
221
3
FINANCIAL EXPENSES
12 months ended
31 December 2023
12 months ended
31 December 2022
Interest and commissions on loans
2,804
8,154
Interest on lease liabilities
798
723
Total financial expenses
3,602
8,877
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
51
28. Income tax
The reporting periods presented in these financial statements cover the following tax periods:
• from 1 January 2023 to 31 December 2023,
• from 1 January 2022 to 31 December 2022,
12 months ended
31 December 2023
12 months ended
31 December 2022
Current tax
12,620
11,654
Deferred tax
76
(176)
Total income tax
12,696
11,478
A 19% corporate income tax rate was applicable in all the aforementioned periods.
Reconciliation of the theoretical tax on the pre-tax profit and the statutory tax rate with the income tax expense
recognised in profit or loss is presented in the table below:
12 months ended
31 December 2023
12 months ended
31 December 2022
Profit before tax
65,591
57,547
Tax rate applicable in the period
19%
19%
Tax calculated at the applicable tax rate
12,462
10,934
Tax effect of the following items:
- permanent tax differences – costs
234
209
- temporary differences for which assets have not been created
-
345
- tax relating to the previous period
-
(10)
Tax shown in the profit and loss account
12,696
11,478
The provisions on VAT, CIT, PIT or social security contributions frequently change, often resulting in the absence of any
established regulations or legal precedents for reference. The regulations in effect tend to be unclear, thus leading to
differences in opinions as to legal interpretation of fiscal regulations, both between state authorities themselves and
between state authorities and entrepreneurs.
Tax declarations and other settlements (e.g. customs or foreign exchange) can be audited by authorities which are
authorised to impose high fines, and the additional liabilities arising from such audits have to be paid including high
interest. In the light of the above, the tax risk in Poland is higher than usual tax risk in countries with better-developed
tax systems. In Poland, no formal procedures are present for the determination of the final amount of tax due
Therefore, the amounts disclosed in the financial statements may change at a later date, following final determination of
their amount by the competent tax authorities.
Effective 15 July 2016, the Polish Tax Code was amended for the General Anti-Abuse Rule (GAAR) provisions. GAAR is
intended to prevent the creation and use of artificial legal arrangements to avoid payment of tax in Poland and defines
tax avoidance as an act carried out primarily in order to achieve a tax benefit, contrary in the circumstances to the object
and goal of a provision of a tax act, which shall not result in a tax benefit, if the mode of action was not genuine. All
unjustified (i) split of operations, (ii) involvement of intermediary entities without any economic or business justification,
(iii) elements that compensate or exclude each other and (iv) other actions with a similar effect to the previously
mentioned, may be considered as prerequisites of artificial activities subject to GAAR. The new regulation will require
significantly more judgement in assessment of the tax consequences of particular transactions.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
52
The GAAR clause is effective with respect to transactions performed following its entry into force as well as transactions
that were carried out before, but the benefits were / are being achieved after the date of its entry into force.
Implementation of the above provisions will enable the Polish tax authorities to challenge legal arrangements by the
taxpayers such as group’s restructurings and reorganizations.
The Company recognizes current and deferred income tax assets and liabilities using IAS 12 Income tax based on profit
(tax loss), tax base, unsettled tax losses, unused tax exemptions and tax rates, taking into account assessment of
uncertainties related to tax settlements.
If there is uncertainty over where or not and in what scope the tax authority will accept tax accounting for transactions,
the Company recognizes these settlements taking into account an uncertainty assessment.
Deferred income tax
As at 31 December 2023
Assets
Liabilities
Net
As at 1 January
2023 net
Recognised in
profit or
loss/equity
Non-current assets
Difference between tax and accounting
depreciation rates of property, plant and
equipment and intangible assets
-
1,019
(1 019)
(786)
(233)
Right-of-use assets
-
3,771
(3 771)
(2,444)
(1,327)
Current assets
Write-down of inventories
563
-
563
407
156
Asset for expected returns
-
72
(72)
(17)
(55)
Write-down of receivable
354
-
354
369
(15)
Balance-sheet valuation of receivables
denominated in foreign currencies
6
-
6
225
(219)
Balance sheet valuation of cash in foreign
currencies
1
-
1
-
1
Long-term liabilities
Liabilities from finance leases
2,929
-
2,929
1,044
1,885
Provision for retirement benefits
129
-
129
108
21
Financial guarantees granted
5
-
5
6
(1)
Short-term liabilities
Provisions for liabilities
335
-
335
161
174
Balance-sheet valuation of short-term liabilities
-
24
(24)
(6)
(18)
Provisions for unused vacation and bonuses
1,468
-
1,468
1,344
124
Accrued interest
-
-
-
85
(85)
Lease liabilities
790
-
790
1,245
(455)
Provisions for guarantee repairs
191
-
191
213
(22)
Total deferred income tax, of which
6,771
4,886
1,885
1,954
(69)
- recognised in profit or loss
(76)
- recognised in equity (*)
7
(*) applies to deferred tax from actuarial losses recognised in other comprehensive income
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
53
As at 31 December 2022
Assets
Liabilities
Net
As at 1 January
2022 net
Recognised in
profit or
loss/equity
Non-current assets
Difference between tax and accounting
depreciation rates of property, plant and
equipment and intangible assets
-
786
(786)
(727)
(59)
Right-of-use assets
-
2,444
(2,444)
(2,683)
239
Current assets
Write-down of inventories
407
-
407
263
144
Asset for expected returns
-
17
(17)
(102)
85
Write-down of receivable
369
-
369
377
(8)
Balance-sheet valuation of receivables
denominated in foreign currencies
225
-
225
(61)
286
Long-term liabilities
Liabilities from finance leases
1,044
-
1,044
1,263
(219)
Provision for retirement benefits
108
-
108
129
(21)
Financial guarantees granted
6
-
6
7
(1)
Short-term liabilities
Provisions for liabilities
161
-
161
419
(258)
Balance-sheet valuation of short-term liabilities
-
6
(6)
(16)
10
Provisions for unused vacation and bonuses
1,344
-
1,344
1,387
(43)
Accrued interest
85
-
85
21
64
Lease liabilities
1,245
-
1,245
1,333
(88)
Provisions for guarantee repairs
213
-
213
200
13
Total deferred income tax, of which
5,207
3,253
1,954
1,810
144
- recognised in profit or loss
176
- recognised in equity (*)
(32)
(*) applies to deferred tax from actuarial losses recognised in other comprehensive income
Of the above-reported value of net deferred tax assets, the amount of PLN 571 thousand PLN (provision) concerns titles
that, according to the Company's expectations, should be realized within a period longer than 12 months.
There are no significant temporary differences and tax losses for which no assets have been created.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
54
29. Earning per share
12 months ended
31 December 2023
12 months ended
31 December 2022
Net profit
52,895
46,069
Weighted average number of ordinary shares issued (’000)
75,042
75,042
Weighted average number of ordinary shares
75,042
75,042
Basic earnings per share (PLN)
0.70
0.61
Earnings per share attributable to ordinary shareholders, used to calculate diluted
earnings per share
52,895
46,069
Weighted average number of issued ordinary shares, applied to calculate basic
earnings per share
75,042
75,042
Dilution impact
-
-
Adjusted weighted average number of ordinary shares used for calculating diluted
earnings per share (’000)
75,042
75,042
Diluted earnings per share (PLN)
0.70
0.61
Basic earnings per share were calculated by dividing the net profit by the weighted average number of ordinary shares
during the period.
As at 31 December 2023 and 2022, the Company had no dilutive factors.
30. Financial guarantees granted and received
As at 31 December 2023, the Company was party to the following guarantee agreements in connection with their
operations, granted by the following entities:
(*) after the balance sheet date, the guarantee amount was increased to EUR 613,352 and the guarantee validity period was changed to 28 February
2025
(**) after the balance sheet date, the Company received guarantees for the payment of customs duties for the next year, i.e. from 1 January 2024 to
31 December 2024
On 12 June 2019, TOYA S.A. granted a guarantee of payment of liabilities arising from warehouse and office rental
agreement by Toya Romania S.A. to the landlord up to the amount of EUR 115 thousand. The lease agreement was
concluded on 8 February 2019 and covers a period of 10 years, with the option of changing this period. The warranty
expires 3 months after the date of termination of the lease.
The guarantee was measured at fair value.
No
Counterparty
Type of guarantee
Subject matter and value
Date of expiry
1
Bank Handlowy w
Warszawie S.A.
Guarantee of payment for the lease of
warehouses in Nadarzyn
Bank guarantee in the amount of EUR
514,369.49
30 June 2024 (*)
2
Sopockie Towarzystwo
Ubezpieczeń ERGO
Hestia S.A.
Contract on granting a customs debt
guarantee
The security for repayment of custom debts,
taxes and other fees associated with goods
released into free circulation based on customs
declaration, in the amount of PLN 270,000
31 December
2023 (**)
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
55
31. Transactions with related entities
In 2023 and 2022, the Company effected transactions with the following related parties:
• Toya Romania SA – subsidiary,
• Yato Tools (Shanghai) Co., Ltd. – subsidiary,
• Yato Tools (Jiaxing) Co., Ltd. – subsidiary,
• Toya Development Sp. z o.o. S.K. in liquidation – entity related through key management personnel,
• Toyota Katowice Sp. z o.o. – entity related through key management personnel,
• Grzegorz Pinkosz – President of the Management Board – key management personnel,
• Maciej Lubnauer – Vice-President of the Management Board – key management personnel,
• Robert Borys – Vice-President of the Management Board from 27.02.2022 – key management personnel,
• Piotr Mondalski – President of the Supervisory Board – key management personnel,
• Jan Szmidt - Vice-President of the Supervisory Board – key management personnel,
• Dariusz Górka – Member of the Supervisory Board – key management personnel,
• Grzegorz Maciąg – Member of the Supervisory Board – key management personnel,
• Michał Kobus - Member of the Supervisory Board – key management personnel,
• Wojciech Bartłomiej Papierak - Member of the Supervisory Board – key management personnel,
• Beata Szmidt - Member of the Supervisory Board – key management personnel.
In the years ended 31 December 2023 and 31 December 2022, there were no indications of impairment and therefore
no receivables from related parties were written down.
Balances due to transactions with related entities are not insured.
Information on remuneration and benefits of key management personnel and on transactions executed with such
personnel
The Management Board and the Supervisory Board of the Company comprise the key management personnel of the
Company.
The remuneration and benefits paid or payable to the Company’s key management personnel are as follows:
2023
2022
Remunerations and benefits under employment contracts and appointment contracts - Management Board
3,308
3,167
Social insurance (ZUS) costs borne by the Company - Management Board
11
38
Remunerations for positions held - Supervisory Board
750
612
Social insurance (ZUS) costs borne by the Company - Supervisory Board
122
102
Employee Capital Plans (PPK) financed by the Company
6
6
In 2023 and 2022, no dividend was paid to key management personnel.
Apart from the transactions mentioned above, the Company has not concluded any transactions with key management
personnel.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
56
Summary of transactions and balances with related entities
Trade and other
receivables
Prepayments for
the delivery of
goods
Trade and other
payables
Revenue from sales of
goods and services
and other revenues
Purchase of goods
and services
31.12.2023
1.01.2023 - 31.12.2023
Subsidiaries
1,592
-
3,809
34,497
254,938
TOYA Romania S.A.
1,592
-
-
34,497
-
Yato Tools (Shanghai) Co. Ltd.
-
-
39
-
29,814
Yato Tools (Jiaxing) Co. Ltd.
-
-
3,770
-
225,124
Entities related through key
management personnel
8
-
-
99
-
Total
1,600
-
3,809
34,596
254,938
31.12.2022
1.01.2022 - 31.12.2022
Subsidiaries
20,128
4,760
1,196
54,274
223,280
TOYA Romania S.A.
20,106
-
-
54,269
-
Yato Tools (Shanghai) Co. Ltd.
-
-
-
5
24,604
Yato Tools (Jiaxing) Co. Ltd.
22
4,760
1,196
-
198,676
Entities related through key
management personnel
2
-
-
86
-
Total
20,130
4,760
1,196
54,360
223,280
Related party transactions are entered into on arm’s length terms in the course of the Company’s day-to-day operations.
32. Material events subsequent to the end of reporting period
32.1 Expression of consent by the Supervisory Board to conclude a surety agreement
On 6 March 2024, the Company received information about the consent of its Supervisory Board to the conclusion of the
Surety Agreement No. BDK/UP/000054601/0040/23, between the Company and the Citibank (China) Company Limited-
Shanghai Branch, based in the People's Republic of China. The Surety Agreement will be concluded to secure the
repayment of receivables due to the Bank, in relation to the planned conclusion of the Short-Term Working Capital Credit
Agreement, in the amount of CNY 60,000 thousand, between YATO TOOLS (Shanghai) Co., Ltd., and the Bank.
The Surety Agreement assumes:
a) surety of the Issuer for the liabilities of the Subsidiary up to CNY 72,000 thousand;
b) granting a surety until 31 August 2025;
c) authorizing the Bank to debit the Issuer's current account with the amount of liabilities arising from the Surety
Agreement;
d) the Issuer's obligation to provide, at Bank's request, within the time limit and in accordance with the
conditions indicated by the Bank and in the content approved by the Bank, a declaration of submission to
enforcement in the form of a notarial deed in accordance with Art. 777 § 1 point 5) of Code of Civil Procedure.
The remaining terms and conditions of the Surety Agreement do not differ from those commonly used for this type of
agreements.
Financial statements of TOYA S.A. for the financial year ended 31 December 2023
(Amounts are expressed in PLN thousand, unless specified otherwise)
Notes constitute an integral part of these financial statements.
57
32.2 Conclusion of a short-term loan agreement by a subsidiary
On 26 March 2024, the Company received information about the conclusion of the Short-term Working Capital Credit
Agreement between YATO TOOLS (Shanghai) Co., Ltd. and CITIBANK (CHINA) CO., LTD. SHANGHAI BRANCH based in the
People's Republic of China.
The loan amounted to CNY 60,000 thousand. The amount will be used for the current operations of the Subsidiary. The
contract was concluded for 12 months.
The loan will be secured by the Company's surety for the liabilities of the Subsidiary under the surety agreement.
The remaining terms and conditions of the Agreement do not differ from those commonly used for this type of
agreements.
32.3 Annex to the overdraft agreement
On 26 March 2024, TOYA S.A. concluded an Annex No. 6 to the Current Account Credit Agreement No. 09/030/19/Z/VV
with mBank S.A. based in Warsaw. Pursuant to the annex, the final repayment date of the loan was set at 27 March 2024.
The remaining terms and conditions of the Agreement do not differ from the terms and conditions commonly used for
this type of agreements.
Management Board of Toya S.A.:
Date
Name and surname
Position
Signature
28.03.2024
Grzegorz Pinkosz
President of the
Management Board
28.03.2024
Maciej Lubnauer
Vice-President of the
Management Board
28.03.2024
Robert Borys
Vice-President of the
Management Board
Person responsible for bookkeeping:
Date
Name and surname
Position
Signature
28.03.2024
Iwona Banik
Chief Accountant