Interim report
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CONDENSED FINANCIAL STATEMENTS for the first half of 2025 drawn up in accordance with International Financial Reporting Standards approved for use by the EU
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TABLE OF CONTENTS WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 2 1. CONDENSED FINANCIAL STATEMENTS ......................................................................................................................... 3 1.1. INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION .................................................................................................. 3 1.2. INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME ......................................................................................... 5 1.3. INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY .................................................................................................. 6 1.4. INTERIM CONDENSED STATEMENT OF CASH FLOWS .............................................................................................................. 8 2. ADDITIONAL INFORMATION ......................................................................................................................................... 9 2.1. General information................................................................................................................................................................. 9 2.1.1. Legal form and basic object of activity according to the Polish Classification of Activities (PKD) ......................................................9 2.1.2. Duration of the Company ..................................................................................................................................................................9 2.1.3. Periods for which condensed financial statements and comparable financial data are presented. ..................................................9 2.1.4. Information on the composition of the Management Board and the Supervisory Board .................................................................9 2.1.5. Shareholding structure ....................................................................................................................................................................10 2.1.6. Consolidated financial statements ..................................................................................................................................................10 2.1.7. Functional currency and reporting currency ...................................................................................................................................10 2.1.8. Rates used for conversion in the "Selected financial data" statement ............................................................................................10 2.1.9. Material events after the end of the interim period that are not reflected in the condensed financial statements for the interim period. 11 2.1.10. Dividends paid divided into ordinary shares and other shares. .......................................................................................................11 2.1.11. Changes in liabilities or contingent assets that have occurred since the end of the last financial year. ..........................................11 2.1.12. Issuance, redemption and repayment of debt and equity securities...............................................................................................11 2.1.13. Changes in the structure of the entity during the interim period ....................................................................................................11 2.1.14. Approval of the report .....................................................................................................................................................................11 2.2. Application of IAS/IFRS........................................................................................................................................................... 11 2.2.1. Compliance Statement ....................................................................................................................................................................11 2.2.2. Standards used for the first time .....................................................................................................................................................12 2.2.3. Standards and interpretations published but not yet in force .........................................................................................................12 2.2.4. Comparability of financial data for the previous year with data from the condensed financial statements for the reporting period. 12 2.3. Significant values based on professional judgment and estimation ...................................................................................... 13 2.3.1. Professional judgment .....................................................................................................................................................................13 2.3.2. Uncertainty of estimates and assumptions .....................................................................................................................................13 3. ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS ....................................................................... 14 3.1. Revenues and costs ................................................................................................................................................................ 14 3.2. Income tax ............................................................................................................................................................................. 16 3.3. Tangible fixed assets (Property, plant and equipment) ......................................................................................................... 18 3.3.1. Total tangible fixed assets ...............................................................................................................................................................18 3.3.2. Leasing .............................................................................................................................................................................................20 3.4. Intangible assets .................................................................................................................................................................... 22 3.5. Inventories ............................................................................................................................................................................. 23 3.6. Trade and other receivables .................................................................................................................................................. 23 3.7. Trade and other liabilities ...................................................................................................................................................... 24 3.8. Employee benefits liabilities .................................................................................................................................................. 24 3.9. Accruals .................................................................................................................................................................................. 25 3.10. Reasons for the occurrence of differences between the balance sheet changes in certain items and changes resulting from the statement of cash flows ............................................................................................................................................................ 25 3.11. Other significant changes ....................................................................................................................................................... 26 3.11.1. Court cases and proceedings before public administration bodies. ................................................................................................26 3.11.2. Contingent liabilities and contingent assets ....................................................................................................................................26 3.11.3. Investment commitments ...............................................................................................................................................................26 3.11.4. Short-term financial assets ..............................................................................................................................................................27 3.11.5. Objectives and principles of financial risk management ..................................................................................................................27 3.11.6. Financial instruments ......................................................................................................................................................................27 3.11.7. Discontinued activity .......................................................................................................................................................................28 3.11.8. Seasonality of the Issuer's operations .............................................................................................................................................28 3.12. Operating segment information ............................................................................................................................................ 29 3.12.1. Major Account Information .............................................................................................................................................................30 3.13. Related party transactions ..................................................................................................................................................... 30 3.14. Material events after the balance sheet date ........................................................................................................................ 30
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| in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 3 1. CONDENSED FINANCIAL STATEMENTS 1.1. INTERIM CONDENSED STATEMENT OF FINANCIAL POSITION ASSETS Notes As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Fixed Assets 378 584 343 649 332 578 Property, plant and equipment 3.3 312 456 314 291 319 456 Goodwill 2 008 2 008 2 008 Intangible assets 3.4 3 494 1 967 843 Long-term receivables 314 111 98 Long-term financial assets 52 065 15 858 555 Shares in associates accounted for using the equity method 40 40 40 Other long-term financial assets 52 025 15 818 515 Long-term prepayments and accruals 52 46 44 Deferred tax assets 8 195 9 368 9 574 Current assets 479 313 509 669 492 375 Inventories 3.5 129 274 120 954 87 567 Short-term receivables 92 555 151 754 89 126 Trade and other receivables 3.6 92 062 151 754 89 126 CIT receivables 493 0 0 Short-term prepayments and accruals 3 903 809 3 412 Cash and other financial assets 3.11.4 253 581 236 152 312 270 Cash 177 097 224 566 290 417 Other financial assets 76 484 11 586 21 853 TOTAL ASSETS 857 897 853 318 824 953
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| in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 4 EQUITY AND LIABILITIES Notes As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Total equity 741 026 726 426 680 790 Share capital 7 499 7 499 7 499 Treasury shares (106 218) (106 218) (106 218) Share capital above their nominal value 18 146 18 146 18 146 Supplementary capital 339 712 278 897 278 897 Reserve capital 456 580 456 580 456 580 Revaluation reserve 709 709 709 Other components of capital (2 740) (2 740) (2 804) Retained earnings/uncovered losses 27 338 73 553 27 981 Total liabilities 116 871 126 892 144 163 Long-term liabilities and provisions for liabilities 20 362 20 653 20 024 Provision for retirement and similar benefits 3.8 13 133 13 158 12 992 Long-term liabilities 7 229 7 495 7 032 Short-term liabilities 96 509 106 239 124 139 Trade and other liabilities 3.7 73 809 73 122 98 665 CIT liabilities 0 10 788 4 107 Employee benefits liabilities 3.8 20 179 21 435 19 508 Accruals 3.9 2 521 894 1 859 TOTAL EQUITY AND LIABILITIES 857 897 853 318 824 953 Book value 741 026 726 426 680 790 Weighted average number of ordinary shares over the period 1 291 846 1 291 846 1 291 846 Book value per share in PLN 573.62 562.32 526.99
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| in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 5 1.2. INTERIM CONDENSED STATEMENT OF COMPREHENSIVE INCOME Notes Q2 2025 First half of 2025 Q2 2024 First half of 2024 Unaudited Unaudited Unaudited Unaudited Revenue 3.1 144 124 328 120 128 128 296 056 Revenue from contracts with customers 140 576 321 739 125 315 290 557 Retail revenue 3 548 6 381 2 813 5 499 Costs 3.1 (135 189) (300 763) (122 321) (267 785) Cost of goods sold (105 063) (233 765) (94 403) (207 622) Other operating income / expenses (34) (48) 95 93 Selling costs (15 781) (32 186) (14 780) (30 653) Management costs (14 311) (34 764) (13 233) (29 603) Operating profit 8 935 27 357 5 807 28 271 Financial income 3 572 7 734 5 258 7 205 Finance costs (355) (489) 8 (274) Profit before tax 12 152 34 602 11 073 35 202 Income tax 3.2 (2 455) (7 083) (2 252) (7 040) Net profit from continuing operations 9 697 27 519 8 821 28 162 Other comprehensive income 0 0 0 0 TOTAL COMPREHENSIVE INCOME 9 697 27 519 8 821 28 162 Weighted average number of ordinary shares over the period 1 291 846 1 291 846 Earnings (loss) per ordinary share (in PLN) 21.30 21.80 Diluted earnings per share (PLN) 21.30 21.80
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| in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 6 1.3. INTERIM CONDENSED STATEMENT OF CHANGES IN EQUITY Share capital Treasury shares Surplus from the sale of shares above their par value Supplementary capital Reserve capital Revaluation reserve Other components of capital Gains/losses from previous years Equity TOTAL First half of 2025 (unaudited) As of 31 December 2024 7 499 (106 218) 18 146 278 897 456 580 709 (2 740) 73 553 726 426 NET result 0 0 0 0 0 0 0 27 519 27 519 Total comprehensive income 0 0 0 0 0 0 0 27 519 27 519 Transfer of a part of the net profit to supplementary capital 0 0 0 60 815 0 0 0 (60 815) 0 Allocation a part of the net profit to the dividend 0 0 0 0 0 0 0 (12 919) (12 919) As of 30 June 2025 7 499 (106 218) 18 146 339 712 456 580 709 (2 740) 27 338 741 026 Share capital Treasury shares Surplus from the sale of shares above their par value Supplementary capital Reserve capital Revaluation reserve Other components of capital Gains/losses from previous years Equity TOTAL Year 2024 (audited) As of 1 January 2024 7 499 (106 218) 18 146 252 028 456 580 709 (2 804) 71 903 697 843 NET result 0 0 0 0 0 0 0 73 734 73 734 Other comprehensive income 0 0 0 0 0 0 64 0 64 Total comprehensive income 0 0 0 0 0 0 64 73 734 73 798 Transfer of a part of the net profit to supplementary capital 0 0 0 26 869 0 0 0 (26 869) 0 Dividends paid 0 0 0 0 0 0 0 (45 215) (45 215) As of 31 December 2024 7 499 (106 218) 18 146 278 897 456 580 709 (2 740) 73 553 726 426
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| in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 7 Share capital Treasury shares Surplus from the sale of shares above their par value Supplementary capital Reserve capital Revaluation reserve Other components of capital Gains/losses from previous years Equity TOTAL First half of 2024 (unaudited) As of 31 December 2023 7 499 (106 218) 18 146 252 028 456 580 709 (2 804) 71 903 697 843 NET result 0 0 0 0 0 0 0 28 162 28 162 Total comprehensive income 0 0 0 0 0 0 0 28 162 28 162 Transfer of a part of the net profit to supplementary capital 0 0 0 26 869 0 0 0 (26 869) 0 Distribution of a part of the net profit to a dividend 0 0 0 0 0 0 0 (45 215) (45 215) as of 30 June 2024 7 499 (106 218) 18 146 278 897 456 580 709 (2 804) 27 981 680 790
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| in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 8 1.4. INTERIM CONDENSED STATEMENT OF CASH FLOWS Note no First half of 2025 First half of 2024 Unaudited Unaudited Net cash flow from operating activities Gross profit (loss) 34 602 35 202 Total adjustments 22 328 55 890 Depreciation 13 485 14 079 Foreign exchange gains (losses) 134 (21) Income tax paid (17 191) (9 987) Interest and dividends (8 368) (4 756) Gain (loss) on investing activities (152) 18 Change in the balance of provisions (25) 137 Change in the balance of inventories (8 320) 9 260 Change in the balance of receivables 3.10 59 601 62 770 Change in the balance of short-term liabilities (except loans and advances) 3.10 (16 448) (13 116) Change in the balance of prepayments and accruals 3.10 (388) (2 494) Net cash flow from operating activities 56 930 91 092 Net cash flow from investing activities Disposal of intangible assets and tangible fixed assets 113 9 Acquisition of intangible assets and tangible fixed assets (9 847) (3 349) Disposal of financial assets 46 231 26 Interest received 7 904 5 015 Expenditure on financial assets (147 698) (19 739) Other capital expenditure (42) (87) Net cash flow from investing activities (103 339) (18 125) Net cash flow from financing activities Payments of liabilities under finance leases (799) (801) Interest on finance lease agreements (261) (259) Net cash flow from financing activities (1 060) (1 060) TOTAL NET CASH FLOW (47 469) 71 907 Balance sheet change in cash: (47 469) 71 907 Change in cash on account of foreign exchange differences (232) (74) Cash at the beginning of the period 224 566 218 510 Cash at the end of the period 177 097 290 417
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| ADDITIONAL INFORMATION WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 9 2. ADDITIONAL INFORMATION 2.1. General information 2.1.1. Legal form and basic object of activity according to the Polish Classification of Activities (PKD) Wawel S.A. (joint stock company) with its registered office in Krakow. The Company is registered in the National Court Register kept by the District Court for Kraków - Śródmieście, XI Commercial Division in Kraków under number 0000014525. The company was assigned the statistical number REGON: 350035154. The basic business of the Company, according to the sections of the Polish Classification of Activities, is the production of cocoa, chocolate and confectionery products marked with the symbol (PKD 2007) 1082Z. The Company's shares are traded on the main market of the Warsaw Stock Exchange. According to the classification adopted by the Warsaw Stock Exchange, the Company operates in the food industry sector. 2.1.2. Duration of the Company The duration of the company is indefinite. 2.1.3. Periods for which condensed financial statements and comparable financial data are presented. The presented financial data cover the period from January 1 to June 30, 2025 and as at June 30, 2025. Comparable data cover the period from 1 January to 30 June 2024 and for the statement of Financial Position prepared as at 31 December 2024. 2.1.4. Information on the composition of the Management Board and the Supervisory Board MANAGEMNT BOARD: President of the Management Board Dariusz Orłowski Member of the Management Board Rafal Pulit Member of the Management Board Joanna Sztefko Member of the Management Board Tomasz Trela SUPERVISORY BOARD: Chairwoman of the Supervisory Board Laura Opferkuch Deputy Chairman of the Supervisory Board Eugeniusz Małek Secretary of the Supervisory Board Paweł Bałaga Member of the Supervisory Board Christoph Köhnlein Member of the Supervisory Board Max Alexander Schaeuble Member of the Supervisory Board Prof. Dr Eckart Seith Member of the Supervisory Board Tomasz Stankiewicz
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| ADDITIONAL INFORMATION WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 10 2.1.5. Shareholding structure As at the date of publication of the report, the shareholding structure of Wawel S.A. is as follows: Share ownership as at the date of submission of the report for the first half of 2025 Shareholder Name Number of shares Share in the share capital Number of votes Share of votes at the GMS Hosta International AG seated in Bottmingen (Switzerland) 781 929 52,14% 781 929 52,14% Wawel S.A. with its registered office in Kraków (own shares) 207 909 13,86% 207 909 13,86% Allianz Polska Open Pension Fund with its registered office in Warsaw * 118 571 7,91% 118 571 7,91% Generali Open Pension Fund with its registered office in Warsaw* 99 213 6,62% 99 213 6,62% Other shareholders 292 133 19,47% 292 133 19,47% TOGETHER 1 499 755 100% 1 499 755 100% *) information on the number of shares provided in accordance with the notification received by the Issuer pursuant to Articl e 69 in connection with Article 87 section 1 point 2 letter b of the Act of 29 July 2005 "on public offering, conditions governing the introduction of financial instruments to organised trading, and public companies" as amended. 2.1.6. Consolidated financial statements The Issuer is not the parent company of other entities and does not prepare consolidated financial statements. 2.1.7. Functional currency and reporting currency These condensed financial statements have been prepared in Polish zloty. The Polish zloty is a functional and reporting currency. The data in the condensed financial statements were shown in thousands of zlotys. 2.1.8. Rates used for conversion in the "Selected financial data" statement Financial data for 2025: the average EURO exchange rate in force as at 30.06.2025 announced by the National Bank of Poland was used to convert individual items of the statement of financial position: 1 EUR = 4.2419 PLN the EURO exchange rate was used to convert individual items of the statement of comprehensive income and the statement of cash flows for the first half of 2025, which is the arithmetic mean of the average EUR exchange rates announced by the National Bank of Poland at the end of each month of the f irst half of 2025. 1 EUR = 4.2208 PLN
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| ADDITIONAL INFORMATION WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 11 Financial data for 2024: the average EURO exchange rate as at 31.12.2024 announced by the National Bank of Poland was used to convert individual items of the statement of financial position: 1 EUR = 4.2730 PLN the EURO exchange rate was used to convert individual items of the statement of comprehensive income and the statement of cash flows for the first half of 2024, which is the arithmetic mean of the average EURO exchange rates announced by the National Bank of Poland at the end of each month of the first half of 2024. 1 EUR = 4.3109 PLN 2.1.9. Material events after the end of the interim period that are not reflected in the condensed financial statements for the interim period. They did not occur. 2.1.10. Dividends paid divided into ordinary shares and other shares. On 30.04.2025, the Ordinary General Meeting of Shareholders of Wawel S.A. adopted resolution No. 6 on the allocation of PLN 12,918,460.00 as a dividend for shareholders, which is PLN 10.00 per share. The dividend covered 1,291,846 shares of the Issuer. The record date was 04.07.2025. The dividend was paid on 23.0 7.2025. 2.1.11. Changes in liabilities or contingent assets that have occurred since the end of the last financial year. There were no changes in contingent liabilities. There were no significant changes in contingent assets. For information on contingent liabilities and assets, see note 3.11.2 2.1.12. Issuance, redemption and repayment of debt and equity securities They do not occur. 2.1.13. Changes in the structure of the entity during the interim period They did not occur. 2.1.14. Approval of the report These interim condensed financial statements of the Company for the 6 -month period ended June 30, 2025 have been approved by the Management Board for publication on 13.08.2025. 2.2. Application of IAS/IFRS 2.2.1. Compliance Statement These interim condensed financial statements have been prepared in accordance with International Accounting Standard 34 Interim Financial Reporting as endorsed by the EU ('IAS 34').
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| ADDITIONAL INFORMATION WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 12 The interim condensed financial statements do not include all information and disclosures required in the annual financial statements and should be read in conjunction with the Company's financial statements for the year ended December 31, 2024, approved for publication on March 18, 2025. The interim financial result may not fully reflect the achievable financial result for the financial year. These interim condensed financial statements have been prepared on the assumption that the Company will continue to operate as a going concern for the foreseeable future. As at the date of approval of these condensed financial statements, no circumstances indicating a threat to the Company's going concern were identified. 2.2.2. Standards used for the first time The accounting policies applied to prepare the interim condensed financial statements are consistent with those applied in the preparation of the Company's annual financial statements for the year ended December 31, 2024, except for the application of the following new or amended standards and interpretations applicable to annual periods beginning on or after January 1, 2025: Amendments to IAS 21 Effects of Changes in Foreign Exchange Rates – lack of convertibility, The changes in standards and interpretations effective as of 01.01.2025 did not apply to the Company or had an intangible impact on the financial position, results of operations of the Company, or the scope of information presented in the condensed separate financial statements of the Company. 2.2.3. Standards and interpretations published but not yet in force ▪ Amendments to IFRS 9 Financial Instruments and IFRS 7 Financial Instruments – Disclosures – changes in the classification and measurement of financial instruments, ▪ IFRS 18 Presentation and Disclosures in Financial Statements, ▪ IFRS 19 Non-Liability Subsidiaries: Disclosures, ▪ Amendments to IFRS 9 and IFRS 7: Contracts based on electricity dependent on natural factors, ▪ Annual amendments to the IFRS Accounting Standards – Issue 11 with amendments to IFRS 1, IFRS 7, IFRS 9, IFRS 10 and IAS 7. The Company has not decided to apply any standard, interpretation or amendment that has been published but has not yet entered into force in the light of European Union regulations. According to the Company's estimates, the Company's earlier application of these standards, interpretations and amendments to the standards would not have a material impact on these financial statements. 2.2.4. Comparability of financial data for the previous year with data from the condensed financial statements for the reporting period. In the presented financial statements for the first half of 2025 and 2024, the principle of data comparability has been observed.
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| ADDITIONAL INFORMATION WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 13 2.3. Significant values based on professional judgment and estimation 2.3.1. Professional judgment The preparation of the Company's condensed interim financial statements requires the entity's Management Board to make judgments, estimates and assumptions that affect the presented revenues, costs, assets and liabilities and related notes and disclosures of contingent liabilities. Uncertainty about these assumptions and estimates may result in significant adjustments to the carrying amounts of assets and liabilities in the future. 2.3.2. Uncertainty of estimates and assumptions The key assumptions about the future and other key sources of uncertainty at the balance sheet date that involve a material risk of a significant adjustment to the carrying amounts of assets and liabilities in the next financial year are discussed below. The Company has adopted assumptions and estimates about the future based on the knowledge possessed during the preparation of the condensed financial statements. These assumptions and estimates may change as a result of future events resulting from market changes or changes beyond the Company's control. Such changes are reflected in estimates or assumptions at the time of occurrence. Impairment of non-current assets and goodwill As at the date of the condensed financial statements, the Company did not identify any specific indications related to the potential impairment of assets and therefore did not consider it necessary to perform impairment tests in the interim period. Measurement of provisions for employee benefits Provisions for retirement and disability severance pay liabilities and length -of-service awards were estimated using actuarial methods. Deferred tax asset The Company recognises a deferred tax asset based on the assumption that a tax profit will be generated in the future allowing it to be used. A deterioration in the tax results obtained in the future could make this assumption unjustified. Valuation of deferred income tax assets on operations in a Special Economic Zone The valuation and recognition of deferred tax assets, as well as the feasibility of their realisation, requires the Management Board of the Company to apply professional judgment and estimates according to the state of knowledge as at the date of the repor t. In particular, it refers to the assumed production volumes and the assumed level of costs in the production plant. According to the Management Board's estimates, there are no indications of a change in the value of the recognized assets as at 30.06.2025. Details of the 'assets' in this respect are described in the note 3.2. Depreciation rates The amount of depreciation rates is determined on the basis of the expected economic useful life of tangible and intangible assets. The Company annually verifies the adopted economic useful lives on the basis of current estimates.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 14 3. ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS 3.1. Revenues and costs First half of 2025 First half of 2024 Unaudited Unaudited Revenues from contracts with Customers from the sale of products, including: 308 441 279 044 country 258 186 254 072 export 50 255 24 972 Revenues from contracts with Customers from the sale of goods and materials, including: 13 298 11 513 country 8 823 8 128 export 4 475 3 385 Revenues from retail sales, including: 6 381 5 499 country 6 381 5 499 export 0 0 TOTAL REVENUES 328 120 296 056 country 273 390 267 699 export 54 730 28 357 First half of 2025 First half of 2024 Unaudited Unaudited Depreciation 13 469 14 063 Material and energy consumption 196 456 162 480 External services 20 868 21 001 Taxes and fees 3 212 3 080 Salary 49 584 45 123 Social insurance and other benefits 13 247 11 845 Advertising and marketing services 945 (213)* Other costs by type, of which: 2 093 724 Property insurance 1 400 211 Other costs 693 513 Total costs by nature 299 874 258 103 Change in inventories, products and accruals (9 823) (1 363) Cost of manufacturing products for the unit's own needs (-) (4 033) (4 014) Selling costs (-) (32 186) (30 653) General and administrative expenses (-) (34 764) (29 603) Cost of production of products sold 219 068 192 470 Value of goods and materials sold 14 697 15 152 Costs of products, goods and materials sold 233 765 207 622 * The negative value of "Advertising and marketing services" results from the reduction of marketing costs by the value of "s ales support costs reducing revenues" (IFRS 15), which consists of, in addition to the value from the relevant cost invoices, also the value of the assumed provisions for these costs (for the reporting period).
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 15 First half of 2025 First half of 2024 Unaudited Unaudited Interest finance income 7 536 6 961 accrued interest on deposits (1 269) 1 946 interest received on deposits 6 555 4 998 accrued interest on bonds 1 188 0 interest received on bonds 1 062 17 Profit on the sale of investments 198 0 Other financial income 0 244 Foreign exchange gains 0 244 Realized 0 294 Unrealised 0 (50) TOTAL FINANCIAL INCOME 7 734 7 205 First half of 2025 First half of 2024 Unaudited Unaudited Finance interest costs (265) (260) interest on lease agreements (261) (259) other interest (4) (1) Loss on the sale of investments 0 (9) Resetting of the investment value 0 (5) Other financial costs (224) 0 negative exchange differences, including: (224) 0 Realized 124 0 Unrealised (348) 0 TOTAL FINANCIAL COSTS (489) (274)
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 16 3.2. Income tax The reconciliation of income tax on gross profit before tax at the statutory tax rate with income tax calculated at the effective tax rate of the Company is as follows: First half of 2025 First half of 2024 Unaudited Unaudited Gross profit before tax 34 602 35 202 Income tax at the rate applicable in Poland 6 574 6 688 Applicable tax rate 19,00% 19,00% Non-tax-deductible permanent differences, including: 221 241 PFRON 91 105 Operating costs of passenger cars 85 90 Representation costs 4 9 Penalties, fines, damages 18 17 Donations and membership fees 5 3 Impairment allowance on receivables 1 1 Other 17 16 Non-taxable fixed differences (142) (115) Paid contribution to the Company Social Benefits Fund (138) (114) Reversal of impairment allowance on receivables 0 (1) RK Positive - VAT (4) 0 Permanent differences increasing/decreasing the tax base 430 226 Recognition of state aid subject to deduction in future periods (-)/ use of state aid in a given period (+) 1 655 1 635 Income tax attributable to exempt activity (1 655) (1 635) Income tax at the effective tax rate 7 083 7 040 Effective tax rate 20,47% 20,00% Income tax (charge) disclosed in P&L 7 083 7 040 The company conducts business activity in the Krakow Special Economic Zone "Krakow Technology Park". The conditions for conducting business in the zone are specified in the permit No. 86/2010 of 07 October 2010: ▪ incurring investment expenditures in the zone in the amount of at least PLN 35 million by 31 December 2019. ▪ employment in conducting business activity in the zone after the date of obtaining the permit by 31 December 2016 and maintaining employment at the level of 20 employees until 31 December 2018. In accordance with the requirements of IAS 36, as at 31.12.2024, an annual impairment test of a deferred tax asset due to a tax relief in SEZ was performed. For the purpose of determining the recoverable amount of the asset recognised in connection with the Company's operations in the Special Economic Zone, the Company has forecasted its tax results until the end of the validity of permit No. 86/2010, i.e. for the next 2 years from 2025 to 2026.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 17 Tax profit in SEZs is calculated using the "cost plus" method, which means that a margin is added to the value of the costs incurred, which is constant and amounts to 10.26% over the 2-year forecast period. The key assumptions adopted in the forecast concerned: Production and sales in individual years - in the 2 -year forecast period, volumes increases were assumed below. The assumed increases in tax results depend on the strategy for the entire Company and take into account the conditions for individual markets, while at the same time reflecting the current and potential order book for individual assortments. The key and fundamental assumption is the sales volume, the percentage dynamics of which compared to the previous year are as follows: Year 2024 execution Year 2025 plan Year 2026 plan 100% 111% 100% The assumptions regarding the cost base were based on the performance of 2024, taking into account the inflation planned for 2025-2026. Inflation is assumed to be at a constant year-on-year growth rate of 3%. As a result of the test, as at 31.12.2024, the Company made an impairment loss on the value of the asset in the amount of PLN 125 thousand. As at 30.06.2025. The Company maintains the assumptions made in the forecast prepared as at 31.12.2024. The implementation of the forecast adopted for 2025 is proceeding as planned and amounts to 45% of its implementation after the first half of the year, which, taking into account seasonality, due to which better results are achieved in the second half of the year, means that the implementation of the plan for 2025 is not at risk. The change in the value of the asset in the first half of 2025 is presented in the table below: As of 31.12.2024 Use of the relief in the first half of 2025 As of 30.06.2025 Deferred tax asset in SEZ 7 408 1 655 5 753 The amount of PLN 5,753 thousand is the nominal value of the relief that the Company expects to use from 01.07.2025 to the end of 2026. Under these assumptions, the Company will use 85% of the maximum value of the tax relief in the SEZ.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 18 3.3. Tangible fixed assets (Property, plant and equipment) 3.3.1. Total tangible fixed assets Land and buildings Machinery and equipment and other Right of use of the asset Fixed assets under constructio n Advance payments for fixed assets under constructio n TOTAL FIXED ASSETS As of 30.06.2025 (unaudited) GROSS value of fixed assets at the beginning of the period 226 452 422 474 16 346 1 564 57 666 893 Changes in the period (due to): 57 1 073 468 6 837 1 707 10 142 Investment 0 0 0 9 545 1 707 11 252 Sales 0 (878) 0 0 0 (878) Liquidation 0 (700) 0 0 0 (700) decrease/increase in IFRS 16 0 0 468 0 0 468 transfer from the FA under construction 57 2 651 0 (2 708) 0 0 GROSS value of fixed assets at the end of the period 226 509 423 547 16 814 8 401 1 764 677 035 Redemption at the beginning of the period 78 310 265 693 8 599 0 0 352 602 Changes in the period (due to): 2 841 8 326 810 0 0 11 977 Accrued depreciation 2 841 9 747 810 0 0 13 398 Sales expenditures 0 (734) 0 0 0 (734) Disposal expenditures 0 (687) 0 0 0 (687) Redemption at the end of the period 81 151 274 019 9 409 0 0 364 579 NET value of fixed assets at the beginning of the period 148 142 156 781 7 747 1 564 57 314 291 NET value of fixed assets at the end of the period 145 358 149 528 7 405 8 401 1 764 312 456
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 19 Land and buildings Machinery and equipment and other Right of use of the asset Fixed assets under constructio n Advance payments for fixed assets under constructio n TOTAL FIXED ASSETS As of 30.06.2024 (unaudited) GROSS value of fixed assets at the beginning of the period 220 539 420 631 15 226 1 340 0 657 736 Changes in the period (due to): 2 005 344 116 319 62 2 846 Investment 0 0 0 3 196 62 3 258 Sales 0 (39) 0 0 0 (39) Liquidation 0 (489) 0 0 0 (489) decrease/increase in IFRS 16 0 0 116 0 0 116 transfer from the FA under construction 2 005 872 0 (2 877) 0 0 GROSS value of fixed assets at the end of the period 222 544 420 975 15 342 1 659 62 660 582 Redemption at the beginning of the period 71 849 248 538 7 238 0 0 327 625 Changes in the period (due to): 3 215 9 430 856 0 0 13 501 Accrued depreciation 3 215 9 945 856 0 0 14 016 Sales expenditures 0 (29) 0 0 0 (29) Disposal expenditures 0 (486) 0 0 0 (486) Redemption at the end of the period 75 064 257 968 8 094 0 0 341 126 NET value of fixed assets at the beginning of the period 148 690 172 093 7 988 1 340 0 330 111 NET value of fixed assets at the end of the period 147 480 163 007 7 248 1 659 62 319 456
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 20 3.3.2. Leasing Right to use an asset: Right of perpetual usufruct of land Buildings and premises Cars TOTAL As of 30.06.2025 (unaudited) GROSS value at the beginning of the period 2 279 13 692 375 16 346 Revaluation of IFRS 16 0 95 373 468 GROSS value at the end of the period 2 279 13 787 748 16 814 Redemption at the beginning of the period 192 8 063 344 8 599 Depreciation 16 731 63 810 Redemption at the end of the period 208 8 794 407 9 409 Net value at the beginning of the period 2 087 5 629 31 7 747 Net value at the end of the period 2 071 4 993 341 7 405 Right of perpetual usufruct of land Buildings and premises Cars TOTAL As of 30.06.2024 (unaudited) GROSS value at the beginning of the period 2 271 12 580 375 15 226 Revaluation of IFRS 16 0 116 0 116 GROSS value at the end of the period 2 271 12 696 375 15 342 Redemption at the beginning of the period 160 6 859 219 7 238 Depreciation 16 777 63 856 Redemption at the end of the period 176 7 636 282 8 094 Net value at the beginning of the period 2 111 5 721 156 7 988 Net value at the end of the period 2 095 5 060 93 7 248
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 21 Lease liabilities – the Company as a lessee: As of 30.06.2025 As at31.12.2024 As at30.06.2024 Unaudited Audited Unaudited Liability under the lease at the beginning of the period, including: 9 053 9 285 9 285 Long-term commitment 7 495 7 618 7 618 Short-term Liability 1 558 1 667 1 667 Changes in the period: (332) (232) (686) Repayment of the liability (799) (1 646) (801) Increases (revaluation, new contract) 478 1 705 126 Reductions (revaluation) (11) (291) (11) Liability under the lease at the end of the period, including: 8 721 9 053 8 599 Long-term commitment 7 017 7 495 7 031 Short-term Liability 1 704 1 558 1 568 Future cash flows and undiscounted liabilities leasing agreements: As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Future undiscounted lease payments Short-term 2 143 2 011 1 965 in the period from 1 to 5 years 5 220 5 707 5 703 for more than 5 years 7 615 7 774 7 086 Future undiscounted lease payments 14 978 15 492 14 754 Future interest expense 6 257 6 439 6 155 Present value of the lease liability Short-term 1 704 1 558 1 568 in the period from 1 to 5 years 4 278 4 675 4 844 for more than 5 years 2 739 2 820 2 187 Liability under the lease at the end of the period, including: 8 721 9 053 8 599 Amounts included in profit or loss: First half of 2025 First half of 2024 Unaudited Unaudited Interest expense on lease liabilities (included in finance costs) 261 259 Cost related to short-term leases (included in selling expenses) 39 4 Cost related to leases of low-value assets (included in selling expenses) 3 12 TOTAL 303 275
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 22 3.4. Intangible assets Licenses Intangible Assets under construction Advances towards IA TOTAL INTANGIBLE ASSETS As of 30.06.2025 (unaudited) GROSS value at the beginning of the period 3 941 1 248 28 5 217 Changes in the period (due to): 164 1 450 (1) 1 613 from the investment 0 1 613 0 1 613 transfer from other intangible assets 164 (164) 0 0 transfer 0 1 (1) 0 GROSS value at the end of the period 4 105 2 698 27 6 830 Redemption at the beginning of the period 3 250 0 0 3 250 Changes in the period (due to): 86 0 0 86 depreciation 86 0 0 86 Redemption at the end of the period 3 336 0 0 3 336 Net value at the beginning of the period 691 1 248 28 1 967 Net value of intangible assets at the end of the period 769 2 698 27 3 494 Licenses Intangible assets under construction Advances towards IA TOTAL INTANGIBLE ASSETS As of 30.06.2024 (unaudited) GROSS value at the beginning of the period 5 349 141 0 5 490 Changes in the period (due to): 47 16 0 63 from the investment 0 63 0 63 transfer from other intangible assets 47 (47) 0 0 GROSS value at the end of the period 5 396 157 0 5 553 Redemption at the beginning of the period 4 647 0 0 4 647 Changes in the period (due to): 63 0 0 63 depreciation 63 0 0 63 Redemption at the end of the period 4 710 0 0 4 710 Net value at the beginning of the period 702 141 0 843 Net value of intangible assets at the end of the period 686 157 0 843
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 23 3.5. Inventories As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Materials (at cost price) 73 974 79 827 49 358 Work in Progress (by Manufacturing Cost) 18 846 10 843 13 108 Finished products (by manufacturing cost) 35 339 29 295 24 381 Goods 864 744 532 Advance payments for deliveries 251 245 188 TOTAL INVENTORIES, according to the lower of the two values: acquisition price (production cost) and net realizable value 129 274 120 954 87 567 In the period ended 30.06.2025, the Company recognised impairment losses on inventories in the amount of PLN 175 thousand (in the first half of 2024 PLN 377 thousand). The impairment losses in the first half of 2025 concerned unnecessary packaging intended for disposal and products unfit for sale. In the period ended 30.06.2025, the Company used the inventory impairment losses in the amount of PLN 122 thousand as a result of their liquidation (in the first half of 2024, the Company used the inventory impairment losses in the amount of PLN 101 thousand as a result of their liquidation). The balance of inventory write -offs as at 30.06.2025 amounted to PLN 207 thousand (as at 30.06.2024 amounted to PLN 409 thousand). As at 30.06.2025 and as at 30.06.2024, the Company did not have inventories measured at net selling price. 3.6. Trade and other receivables As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Receivables from related parties 13 613 2 389 2 592 trade and services with a repayment period: 12 297 990 1 334 up to 12 months 12 297 990 1 334 Loans granted 1 316 1 399 1 258 Receivables from other entities 78 449 149 365 86 534 trade and services with a repayment period: 78 388 149 254 85 380 up to 12 months 78 388 149 254 85 380 Other 61 111 1 154 Total net current receivables 92 062 151 754 89 126 Impairment losses on receivables 1 224 1 349 1 828 Gross short-term receivables, total 93 286 153 103 90 954 The item "loans granted" refers to the Ukrainian affiliate "Łasoszczi".
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 24 3.7. Trade and other liabilities As of 30.06.2025 As at31.12.2024 As at30.06.2024 Unaudited Audited Unaudited Liabilities to related parties: 3 578 0 5 Trade and service debts with a maturity period: 121 0 5 up to 12 months 121 0 5 Investment commitments 3 457 0 0 Liabilities to other entities: 70 231 73 122 98 660 Trade and service debts with a maturity period: 47 848 61 158 45 957 up to 12 months 47 848 61 158 45 957 Advance payments received for deliveries 874 123 17 Current other tax liabilities 4 451 7 827 4 451 Other (by title): 17 058 4 014 48 235 Liabilities due to Dividends 12 918 0 45 215 Liabilities due to Lease 1 704 1 558 1 568 Investment commitments 1 153 1 796 67 Liabilities due to property insurance 421 64 370 Company Social Benefits Fund 412 0 512 Settlement of the deductions from wages 265 264 247 Other 94 261 64 PFRON 91 71 78 Accounts payable 0 0 114 Short-term trade and other liabilities 73 809 73 122 98 665 3.8. Employee benefits liabilities As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Future employee benefit liabilities, including: 13 133 13 158 12 992 Long-term 13 133 13 158 12 992 Liabilities due to current employee benefits, including: 20 179 21 435 19 508 Salary 5 582 5 612 5 113 liability under the title of future employee benefits - current part 1 549 1 549 1 512 Social security and other benefits 4 980 5 550 4 868 employee costs (bonuses due for the previous period) 2 700 4 130 2 383 Overdue holidays 5 368 4 594 5 632 Total employee benefit liabilities 33 312 34 593 32 500
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 25 3.9. Accruals As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited Accruals due to: sales support costs 1 344 251 1 533 other costs 1 177 643 326 Total accruals and accruals 2 521 894 1 859 The item "sales support costs" refers to retrospective bonuses to be granted to direct buyers of the Company's products and settlements related to marketing and promotional activities provided by buyers of the Company's products. 3.10. Reasons for the occurrence of differences between the balance sheet changes in certain items and changes resulting from the statement of cash flows As of 30.06.2025 As of 30.06.2024 Unaudited Unaudited Balance sheet change in short- and long-term receivables 58 996 62 664 Change in CIT receivables 493 0 Change in receivables from the sale of financial instruments 195 0 Change in receivables from loans granted (83) 106 Change in receivables in the statement of cash flows 59 601 62 770 As of 30.06.2025 As of 30.06.2024 Unaudited Unaudited Balance sheet change in short- and long-term liabilities (11 623) 29 360 Change in liabilities due to acquisition of property, plant and equipment (3 027) 28 Change in lease liabilities 332 686 Change in CIT liabilities 10 788 2 025 Change in dividend liabilities (12 918) (45 215) Change in liabilities in the statement of cash flows (16 448) (13 116) As of 30.06.2025 As of 30.06.2024 Unaudited Unaudited Balance sheet change in accrued income and accrued expenses (1 473) (544) Adjustment for change in other monetary assets 1 085 (1 950) Change in provisions in the statement of cash flows (388) (2 494)
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 26 3.11. Other significant changes 3.11.1. Court cases and proceedings before public administration bodies. Significant court cases and administrative proceedings do not occur. 3.11.2. Contingent liabilities and contingent assets Contingent liabilities: As at 30.06.2025, the Company had a bank guarantee, which was issued at the request of the issuer and serves as security for the payment of prizes resulting from the promotional lottery. The value of the amount from the issued guarantee amounted to PLN 32 thousand. Contingent assets: The Company discloses contingent assets in the notes to the financial statements if the occurrence of economic benefits from them is probable. As at 30.06.2025, the Company has: ▪ mortgages on real estate and bank guarantees received from the Company's contractors, constituting security for receivables from the sale of the Company's products; ▪ bank guarantees received from contractors, constituting security for contracts concluded with them as part of the implementation of investment tasks related to the modernization of production resources. In the Company's opinion, the occurrence of economic benefits from the above guarantees and mortgages is possible, but not likely. Therefore, the Company does not disclose the value of the contingent assets in question. 3.11.3. Investment commitments As at June 30, 2025, on the basis of signed and not yet executed agreements, the Company undertook to incur expenditures on property, plant and equipment in the amount of approximately PLN 15.1 million net. These amounts are intended for the purchase of new machinery and equipment.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 27 3.11.4. Short-term financial assets Cash and other financial assets As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited in other entities 75 817 9 835 19 739 financial assets measured at fair value 75 817 9 835 19 739 cash and other monetary assets 177 764 226 317 292 531 cash on hand and in accounts 176 894 224 380 290 217 Other cash 203 186 200 other monetary assets 667 1 751 2 114 Total short-term financial assets 253 581 236 152 312 270 3.11.5. Objectives and principles of financial risk management In the first 6 months of 2025, the objectives and principles of financial risk management did not change compared to 2024. 3.11.6. Financial instruments In accordance with IFRS 13 Fair Value Measurement, all assets and liabilities that are measured at fair value or their fair value is disclosed in the financial statements are classified in the fair value hierarchy as described below on the basis of the lowest level of input data that is significant for fair value measurement as a whole: Level 1 – Quoted (unadjusted) market prices in an active market for identical assets or liabilities, Level 2 – Valuation techniques for which the lowest level of input data that is significant for the measurement at fair value as a whole is directly or indirectly observable, Level 3 – Valuation techniques for which the lowest level of input data that is significant for fair value measurement as a whole is unobservable. According to the Company's assessment, the fair value of cash, short -term investments, trade receivables, loans granted, trade liabilities and other liabilities does not differ from the carrying amounts mainly due to the short maturity. The table below presents a comparison of the carrying amounts and fair values of all financial instruments of the Company, broken down by individual classes and categories of assets and liabilities.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 28 As of 30.06.2025 As of 31.12.2024 As of 30.06.2024 Unaudited Audited Unaudited fair value carrying amount fair value carrying amount fair value carrying amount Long-term financial assets 52 065 52 065 15 858 15 858 555 555 equity-accounted Investments in associates 40 40 40 40 40 40 measured at fair value through profit or loss Other non-current financial assets 52 025 52 025 15 818 15 818 515 515 Loans and receivables measured at amortised cost 92 062 92 062 151 754 151 754 89 126 89 126 Loans granted 1 316 1 316 1 399 1 399 1 258 1 258 Trade receivables 90 685 90 685 150 244 150 244 86 714 86 714 Other Receivables 61 61 111 111 1 154 1 154 Other current financial assets measured at fair value through profit or loss 75 817 75 817 9 835 9 835 19 739 19 739 Other financial assets 75 817 75 817 9 835 9 835 19 739 19 739 Cash and cash equivalents measured at amortised cost 177 764 177 764 226 317 226 317 292 531 292 531 Cash on hand and in accounts 176 894 176 894 224 380 224 380 290 217 290 217 Other monetary assets 870 870 1 937 1 937 2 314 2 314 Financial liabilities measured at amortised cost 92 496 92 496 103 787 103 787 120 713 120 713 Trade payables 47 969 47 969 61 158 61 158 45 962 45 962 Other financial liabilities 44 527 44 527 42 629 42 629 74 751 74 751 Lease liabilities measured in accordance with IFRS 16 8 721 8 721 9 053 9 053 8 599 8 599 Long-term liabilities due to Lease 7 017 7 017 7 495 7 495 7 031 7 031 Short-term liabilities Lease 1 704 1 704 1 558 1 558 1 568 1 568 3.11.7. Discontinued activity It does not occur. 3.11.8. Seasonality of the Issuer's operations The Issuer's activity is characterized by seasonality, which results directly from the structure of manufactured and sold products. Due to the fact that 75% - 80% of sales are products from the group of filled chocolate, full chocolate and chocolate candies, their sales decrease in the spring and summer months, with the lowest level falling on the second quarter. The largest revenues and profits are generated in the first and fourth quarters of the calendar year. The chart below presents the amount of sales revenues in the last four quarters of the Company's operations compared to the corresponding quarters of the previous year.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 29 3.12. Operating segment information In accordance with the requirements of IFRS 8, operating segments should be identified on the basis of internal reports on those elements of the Company, which are regularly verified by persons deciding on the allocation of resources to a given segment and assessing its financial results. The company conducts a homogeneous activity consisting in the production and sale of confectionery products. On the other hand, for management purposes, the internal financial reporting system allows to identify financial results according to the criterion of sales markets. The results within the sales segment are as follows: First half of 2025 First half of 2024 Unaudited Unaudited Revenue from the sale of products, merchandise and materials, including: 328 120 296 056 Country 273 390 267 699 Export 54 730 28 357 Cost of products, goods and materials sold, including: 233 765 207 622 Country 194 936 189 224 Export 38 829 18 398 Gross profit (loss) on sales, including: 94 355 88 434 Country 78 454 78 475 Export 15 901 9 959 Capital expenditures are not allocated to segments by sales markets, because non -current assets used in all segments are located in Poland.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 30 3.12.1. Major Account Information In the first half of 2025, the Company made sales transactions exceeding 10% of total sales revenues with two external entities. Revenues from transactions with these entities amounted to approx. 20% and 12% of the Company's total sales revenues, respectively. Sales transactions were carried out entirely in the "Country" sales segment. 3.13. Related party transactions The table below presents the total amounts of transactions concluded with related parties in the six months of 2025 and 2024: SALE SHOPPING RECEIVABLES COMMITMENTS First half of 2025 First half of 2024 First half of 2025 First half of 2024 First half of 2025 First half of 2024 First half of 2025 First half of 2024 Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Unaudited Related entities of the Company, including: 28 650 4 582 3 966 162 12 297 1 334 3 578 5 Hosta Werk fur Sch.-S. GmbH & Co. KG 28 051 4 112 434 63 12 046 1 115 121 0 Hosta Meltis Ltd 508 470 0 0 251 219 0 0 Hosta Italia Srl 91 0 10 10 0 0 0 5 Droste Nederland B.V. 0 0 3 453 0 0 0 3 457 0 Orłowski Finance General Partnership 0 0 69 89 0 0 0 0 Associate of the Company, including: 0 0 0 0 1 316 1 258 0 0 PAT WTKF "Łasoszczi" * 0 0 0 0 1 316 1 258 0 0 Receivables from the associate as at 30.06.2025 are: loans with accrued interest in the amount of PLN 1,988 thousand, of which PLN 672 thousand is covered by an impairment allowance. Receivables from the associate as at 30.06.2024 are: loans with accrued interest in the amount of PLN 1,924 thousand, of which PLN 666 thousand is covered by an impairment loss. 3.14. Material events after the balance sheet date They did not occur.
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| ADDITIONAL EXPLANATORY NOTES TO THE FINANCIAL STATEMENTS in PLN thousand, unless otherwise stated WAWEL S.A. Financial Statements for the first half of 2025 in accordance with IFRS EU 31 APPROVAL FOR PUBLICATION These condensed financial statements for the first half of 2025 were approved for publication by the Management Board of Wawel S.A. on August 13, 2025. BOARD: Dariusz Orłowski – President of the Management Board Rafał Pulit - Member of the Management Board Joanna Sztefko - Member of the Management Board Tomasz Trela - Member of the Management Board PERSON RESPONSIBLE FOR KEEPING THE ACCOUNTING BOOKS: Janusz Serwoński – Chief Accountant