Thornico Holding A/S

Ledelsesberetning

Financial Highlights of the Group2024 2023 2022 2021 2020DKK '000 DKK '000 DKK '000 DKK '000 DKK '000Profit/lossRevenue 10.072.148 9.472.895 12.131.316 10.099.657 8.575.274Gross profit 3.325.514 2.883.132 2.810.575 2.660.609 2.215.605EBITDA 1.465.860 1.115.235 1.151.699 1.228.922 931.394Profit/loss before financial income and expenses 1.105.370 680.130 716.853 967.185 748.174Net financials -120.519 -172.593 -180.169 49.150 -43.126Net profit/loss for the year 754.630 643.825 302.154 830.281 535.575Balance sheetBalance sheet total 9.278.532 8.825.963 9.414.540 8.322.504 7.093.249Equity4.478.624 3.812.269 4.046.453 3.600.559 2.657.681Investment in property, plant and equipment 590.933 434.273 462.224 588.839 403.967Cash flowsCash flows from:- operating activities 808.006 961.985 378.996 645.845 751.717- investing activities -644.125 -479.373 -510.989 -709.185 -718.106- financing activities -199.129 -1.091.109 319.836 114.179 175.881Changes for the year in cash and cash equivalents -35.248 51.076 198.143 45.339 209.492Number of employees 5.687 5.177 4.849 4.832 4.3352024 2023 2022 2021 2020DKK '000 DKK '000 DKK '000 DKK '000 DKK '000RatiosGross margin 33,0% 30,4% 23,2% 26,3% 23,7%Profit margin 11,0% 7,2% 5,9% 9,6% 5,7%Return on assets 11,9% 7,7% 7,6% 11,6% 7,8%Solvency ratio 48,3% 43,2% 43,0% 43,3% 35,7%Return on equity16,8% 16,9% 7,5% 23,1% 17,5%Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark. The Group sold its shipping activitives in 2022 and consequently the financials for 2023 and later years are not fully comparable with 2022 and prior years.Explanation of financial ratiosGross margin =Profit margin =Return on assets =Solvency ratio =Return on equity = Development in activities and financials The Annual Report for the Group shows consolidated sales of DKK 10,072m, an increase of 413m compared to 2023. Consolidated profit before tax is DKK 970m, an increase of 472m compared to 2023, which is considered satisfactory. All verticals of the Group showed growth in revenue and results for the year. The Food & Food Technology Group accounts for 75% of the Group’s activities so improvements in this vertical, and particularly in the Packaging Group, have had a significant effect on the Group results. Also increased activites and improved profitability in Sport & Fashion had a major impact on Group financials. The past year and follow-up on development expectations from last year At the date of the Annual Report for 2023, Management expected results for 2024 in the range of DKK 750m – 850m. Realised profit before tax for 2024 is DKK 985m, exceeding expected maxi-mum profit before tax by DKK 135m. This increase is due in particular to the packaging business exceeding expectations, driven by expanding market share and capacity. Sport & Fashion per-formed as expected on revenue but slightly lower than expected on EBIT. Other verticals performed as expected. Expected development Geopolitical tensions and the uncertainties in the wake of the new administration in the USA are a cause for concern for the Group in 2025, but Management still expect increasing activity and re-sults for 2025, with revenues expected at 10,600m – 11,000m and results before tax expected at DKK 1,000m – 1,050m for 2025. Increased activity is expected mainly for the Food Technology and Packaging Groups. Particular risks Currency risks Due to the global nature of all activities in the Group, the Group is exposed to currency transaction risks and currency translation risks. Transaction risk is generally hedged as concerns the packaging and sport & fashion activities. This is done in accordance with the foreign exchange policy for these activities. For the Group's other activities, hedging is handled within the Thornico Group through balancing of income and expenses in the currencies relevant for these activities. Translation risks are mainly associated with the translation into DKK of earnings and net assets in foreign subsidiaries. Translation risks are not hedged. Interest bearing debt is mainly in DKK and with variable interest rate. Capital resources Via its positive earnings and development, the Group has sound and adequate capital resources available for new investments and growth. Business risks The spreading of the Group’s investments is well balanced between the different main areas, see our comments in the above paragraph Main activities. The Group’s intention is to improve its mar-ket position in the individual areas. The Group is market leading in several areas within foods, and the Group intends to achieve a more dominant role in other areas within the respective industries. Investment properties are measured to fair value. Changes in the determined rate of return will af-fect the fair value in the balance sheet and the fair value evaluation in the income statement (ref. consolidated note 13). Research and development The Group incurs material expenses for both research and development to create a basis for the future positive financial development. The Group places great importance in recruiting and retain-ing competent and highly specialised employees in order to maintain a leading position within all its business activities. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.

Beskrivelse af virksomhedens væsentligste aktiviteter

Main activities The Group’s activities comprise food ingredients, food technology and packaging, sport & fashion and real estate in global markets primarily via wholly owned subsidiaries. The Parent company’s activity comprises investments in subsidiaries.