Søstrene Grenes Holding Aps

Beskrivelse af virksomhedens væsentligste aktiviteter

Primary activitiesSøstrene Grene is a family-owned and -operated group of companies. The family ownership makes it possible to think and operate Søstrene Grene with a sound and long-term perspective according to the good values that we believe in while constantly innovating the concept and products, respecting the history and culture of Søstrene Grene dating back to the very beginning in 1973.
Søstrene Grenes Holding ApS is the holding company that gathers the companies related to the Søstrene Grene business owned by Cresten Grene and Mikkel Grene.
The business consists of a wholesale business related to the import and export of goods to the Søstrene Grene stores and retail activities in web shops, own stores and stores partly owned through joint venture companies. Apart from fully owned and partially owned stores, some of the Søstrene Grene stores are owned and operated by franchise partners which means that the overall revenue of the Søstrene Grene stores is significantly higher than the revenue found in this annual report.
All rights related to the Søstrene Grene brand is owned by the wholesale company Søstrene Grenes Import A/S, which is a fully owned subsidiary of Søstrene Grenes Holding ApS.
In the financial year, Søstrene Grene stores are found in Austria, Belgium, Denmark, Faroe Islands, Finland, France, Germany, Iceland, Ireland, Norway, the Netherlands, Sweden, Switzerland and the UK.
Søstrene Grene has more than 5.7 million followers on different social media platforms, which plays a vital part in the business strategy.

Beskrivelse af usædvanlige forhold, der kan have påvirket indregningen eller målingen

Unusual circumstances affecting recognition and measurementThere have been no unusual circumstances in the year.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

Development in activities and financesSøstrene Grene has over the years developed and refined the concept and assortment while expanding into new areas with a very positive response from customers in all markets. Currently Germany and the United Kingdom are the areas with the most growth.
This financial year the revenue in Søstrene Grenes Holding ApS grew 21% to a new all-time high of DKK 2,266 m. The digitalisation of the business model in Søstrene Grene has continued and all markets now have a web shop except the Faroe Islands.
Internally we are focusing both on securing significant growth and on strengthening and enhancing our foundation and capabilities with several major projects and investments with the implementation of SAP being the largest. Largest investments however are the opening and refurbishments of Physical stores which is mainly financed by the cashflow from the operation.
The result for the year is an all-time best in the history of Søstrene Grene both before tax and on EBITDA. The management considers the result very satisfying.

Omtale af betydningsfulde hændelser, som er indtruffet efter regnskabsårets afslutning

Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report.

Beskrivelse af virksomhedens forventede udvikling

OutlookThe strategy is to continue the major digital journey with several large, important projects on the way. The goal is to digitalise the company even more, add more automatisation and to offer a “customer centric” digital Søstrene Grene with all the options and services that the future customers are going to need.
In 2025 a second distribution center is opening in The Netherlands with a footprint of 45,000 m2 with the capacity to support 300 stores and e-commerce.
Although Søstrene Grene web shops are found in almost all our countries, the physical stores will still be in the center of it all. Not only has a major upgrade of stores been initiated with the new Retail for the senses concept, but the expansion with brand new stores has also been accelerated with an expected 60 new stores in 2024. In the coming 3 years, almost 200 new stores are expected to be opened around Europe.
The expectations for the financial year were a growth in revenue of 11 - 20% to DKK 2,000m – DKK 2,150m. The financial year 2023/24 has realized an increase in revenue of DKK 389m, or 22%. The increase is above expectations and is considered satisfactory.
Management expects the revenue in 2024/25 to increase in the range of 15% to 25% to approximately DKK 2,700m to DKK 2,900m. The expectation is primarily based on organic growth and the opening of new stores.
For the turnover in all channels (including the franchisee operated) the goal is to reach a turnover of DKK 3,7bn including VAT in the calendar year 2024 (not all of the turnovers will be within Søstrene Grenes Holding ApS, since some of the stores are operated by franchisees).
The EBITDA for the upcoming financial year is expected to be approximately between DKK 300m and DKK 330m.
Earnings before tax for the year 2024/25 are expected to be in the range of DKK 200m to DKK 220m. Further investments in organizational resources, a new IT infrastructure for the expanding omnichannel business and further digitalization of the business are planned as well as increased efforts in marketing. Investments that are expected to bring increased revenue and earnings in the years to come.
Material assumptions and uncertainties
The exact number of new stores cannot be predicted since it depends on the timing of opening and availability of suitable locations.
Particular risks
Sea freight costs are expected to be significantly higher in 2024/25 which will impact the margin negatively since it is expected that most of the increases will be absorbed by the company and not added to the retail prizes in a very competitive and prize-focused retail market. Sea freight rates are expected to normalize after the Christmas peak season.
The main currency risk relates to the purchase of products in US dollar. To offset the risk of currencies going forward a hedging policy has been implemented. Product purchase is hedged by 25%, 50% and 75% of expected usage in the periods 7-12, 4-6 and 1-3 months respectively in advance.
Interest rate risk is primarily related to the short-term debt to banks. The long-term debt is split between fixed interest rate and variable interest rate with ratio 65%/35%. The aim is to limit the interest risk and ensure not to be exposed to increased interest rates.