CVR. No: 20 89 69 49
Address: Trollesmindealle 25
3400 Hillerød
Together for a Healthier
Tomorrow
Annual Report
2025
Ellab A/S
Page 2
Contents
Contents
Overview .....................................................................................................3
Financial Performance .......................................................... 18
Financial Statements ............................................................... 24
Parent Company ............................................................................. 62
Management’s Statement and Auditor’s
Report ..............................................................................................................89
Table of Contents
Financial Performance
Financial Review ......................................18
Overview
Five Year Summary ................................3
Letter from our CEO ................................5
Global Expertise with Local Reach .........6
Ellab Group ..............................................7
Board of Directors ...................................8
Company Information..............................9
Sustainability ..........................................10
Financial statements - Parent Company
Income Statement .................................60
Statement of financial position ...............61
Cash Flow Statement ..............................62
Changes in Equity ...................................63
Notes ......................................................65
Management’s Statement and Auditor’s Report
Management’s Statement ......................86
Independent Auditors Report ................87
1 January 2025 to
31 December 2025
The Annual Report was presented and
adopted at the Annual General Meeting
of the Company on: 28 May 2026
Chair of the meeting
Financial Statements
Financial statements - Group
Income Statement .................................22
Statement of financial position ...............23
Cash Flow Statement ..............................24
Changes in Equity ...................................25
Notes .......................................................27
Ellab A/S Annual Report 2025
Page 3
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Five Year Summary
DKK million
12 months
2025
12 months
2024
8 months
2023
12 months
2022/23
12 months
2021/22
Key figures
Income statement
Revenue 986.4 996.2 634.6 858.2 650.8
Gross profit 535.3 544.5 341.8 510.0 415.9
Operating profit 50.2 73.3 64.6 138.2 136.6
Net financials (19.7) (97.1) (59.0) (48.1) (59.5)
Net profit for the year 28.1 (19.4) 10.9 64.7 43.1
Statement of financial position
Total assets 3,072.9 3,216.5 3,123.9 3,174.7 2,755.1
Equity 2,512.0 2,593.9 1,565.1 1,656.6 1,590.5
Investment in property, plant and equipment 20.1 45.5 30.8 37.4 21.5
Cash flow statement
Cash flow from operating activities 226.1 199.1 70.5 85.9 127.4
Cash flow from investing activities (64.7) (135.6) (54.5) (395.0) (92.2)
Cash flow from financing activities (158.0) (51.9) (28.1) 311.0 (36.2)
Cash flow for the year 3.4 11.6 (12.1) 1.9 (1.0)
Number of employees 743 757 751 637 456
Ratios
Adjusted EBITDA* 286.4 276.4 180.8 293.0 248.5
Adjusted EBITDA margin 29.0% 27.7% 28.5% 34.1% 38.2%
Solvency ratio 81.7% 80.6% 50.1% 52.2% 57.7%
Return on equity 1.1% (0.9%) 1.2% 4.0% 2.7%
*Refer to Group note 7.
Ellab A/S Annual Report 2025
Page 4
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
As a result of Novo Holdings and Lundbeckfond Invest’s purchase of
the Ellab Group in September 2023, the reporting period was changed
to end at 31 December. Consequently the financial year 2023 only
covers eight months from 1 May to 31 December 2023, whereas 2025,
2024 and the comparison years in the five-year summary all includes
a 12-months reporting period (2025 and 2024 - 1 January to 31
December and 2022/23, 2021/22 - both from 1 May to 30 April).
The above numbers are not proforma adjusted and do not include the
full year impact of acquired entities during the respective years.
The ratios have been calculated in accordance with the
recommendations and guidelines issued by the Danish Society of
Financial Analysts.
For definitions, see under Accounting Policies.
Five Year Summary (continued)
Ellab A/S Annual Report 2025
Page 5
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Letter from our CEO
It’s a privilege to write this letter for the first
time as Chief Executive Officer in Ellab.
I stepped into this role in June, during a
year defined by significant change and
development for our company. Transitions
of this nature bring both challenges and
opportunities, and I am committed to leading
our organisation with clarity, purpose, and a
strong focus on our customers.
The global pharmaceutical industry continues to evolve rapidly, driven by
innovation, regulatory complexity, and increasing demand for high-quality
medicines. This dynamic environment places growing emphasis on reliable,
efficient, and compliant production processes - areas where our solutions
play a critical role. As a trusted partner to manufacturers and service
partners worldwide, we enable them to meet stringent quality standards and
scale production to serve patients across the globe.
The broader economic landscape has been marked by uncertainty in the
first half of 2025, with inflationary pressures and geo-political uncertainty
affecting many sectors. As we close the year we look to 2026 with optimism,
felt across the world in our customer dialogues. Our commitment to
supporting our customers and creating value for patients, customers, and
partners remains unwavering.
Ellab’s business model is anchored in strong and differentiated equipment
solutions plus value-added services. Our equipment and service offerings
remain strong, and we continue to develop and add innovative technologies
and life-cycle services.
Gergely Svéd
CEO
In 2026, we add even more bandwidth to our R&D team to accelerate
our offerings. I am confident that technological leadership will continue
to reinforce our position in Validation and Monitoring Equipment and
strengthen services offered to our trusted Validation and Calibration
customer base. Similarly, we plan to enhance our commercial and support
coverage across our geographies.
Guided by our shared purpose – Together for a healthier tomorrow – we will
continue to build on our 75+ years of legacy and embrace the opportunities
that 2026 brings.
Thank you to our very loyal and highly engaged customers, and a big thank
you to our dedicated and hard-working employees without whom Ellab
would not be what it is today.
Wishing you the very best for 2026!
Ellab A/S Annual Report 2025
Page 6
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Global Expertise with Local Reach
80+
Offices and
distributors
worldwide
United Kingdom Denmark
• Hillerød, HQ
• Lyngby
USA
• Denver, CO
• Missouri, KS
• Nashua, NH
• Albany, NY
• College Station, TX
Italy
• Milan
Germany
• Bockel
• Ravensburg
Switzerland
• Basel
Austria
• Wien
France
• Lyon
Benelux
• Zeist, NL
• Hengelo, NL
• Cheshire
Ireland
• Co. Cork
• Co. Cavan
Ellab Offices
Ellab Presentation
UAE Singapore
• Dubai • Singapore City
Ellab A/S Annual Report 2025
Page 7
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Ellab Group
Key activities
Ellab is the market leading supplier of high-end validation-, monitoring-, and
calibration solutions primarily to the life science industry. Ellab serves more
than 75 out of 100 top global biotech and pharma companies.
Ellab was established in Denmark in 1949. Today, the Group is headquartered
in Hillerød, Denmark, and holds worldwide presence with R&D and
production in Denmark and has 80+ offices and distributors worldwide, of
which 20+ have calibration facilities. The Group employs around 800 people
and has grown from being a leading manufacturer of validation equipment
to becoming a true end-to-end solution provider helping customers at every
stage, from commissioning, qualification and validation (CQV) & consulting to
continuous monitoring & calibration.
“Together for a healthier tomorrow” - is the overall purpose of the Ellab
Group.
Business lines
Validation Solutions
Our validation solutions combine measuring equipment, services, and GMP
expertise to support CQV activities, thermal mapping, and requalification
studies – with specialized equipment tailored to life science applications like
autoclaves, freeze-dryers, freezers, and more.
Monitoring Solutions
Our continuous monitoring solutions unite hardware, software, and services
to deliver real-time insights and alerts with full data integrity. Supported by
installation, validation, and calibration services, they scale seamlessly from a
single site to global networks.
Calibration Solutions
Our calibration solutions bring together on-site technicians, advanced
equipment, and accredited labs to ensure accurate, reliable results across
production systems, controlled storage, and both Ellab and third-party
measuring devices.
The internal reporting structure was changed beginning 1 January 2025.
The previous business line “Field Services & Consulting” has been
allocated to “Validation Solutions” and “Monitoring Solutions”. “Calibration
Solutions” has been separated from these categories.
Comparison figures in Group note 3 Revenue has been adjusted to the new
reporting structure.
Overview
Ellab handles sales and services by its own sales people and companies
in the Nordics, Germany, Austria, Switzerland, Italy, UK, Ireland, France,
Benelux, USA, Middle East, China and Singapore. Other markets are
handled through partnerships with independent distributors.
Production, assembly, quality inspection and development of Ellab
Equipment, including Data Loggers, Thermocouple Systems, and
Monitoring Systems etc. takes place in the facility in Hillerød, Denmark.
Ellab A/S Annual Report 2025
Page 8
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Henrik Kjær Hansen
Vice chairperson
Independent: No
Senior Partner at Novo Holdings
Former: Moelis & Co., Deutsche Bank and ABN
AMRO
Christian Salling
Board member
Independent: No
Senior Partner at Novo Holdings
Former: A.T. Kearney and Coloplast
Anders Hedegaard
Chairperson
Independent: Yes
Chairperson in ALK-Abello
Former: CEO in GN Hearing
and CEO in Bavarian Nordic
Board of Directors and Executive Management
Board of Directors
Board of Directors
Gergely Svéd
CEO
Joined Ellab in June 2025
Former: EVP & Group President for Life Sciences and
Healthcare at Ecolab and, various positions at GE
Healthcare
Executive Management
Oluf Riddersholm
CFO
Joined Ellab in January 2026
Former: CFO at Cobham Satcom, CFO at SteelSeries
and, CFO at TrackMan
Ellab A/S Annual Report 2025
Page 9
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Company Information
The Company
Central Business Registration No: 20 89 69 49
Registered in: Hillerød
Financial period: 1 January 2025 to 31 December 2025
Municipality of reg. office: Hillerød, Denmark
Board of Directors
Anders Hedegaard | Chairperson
Henrik Kjær Hansen | Vice chairperson
Christian Salling | Board member
Executive Management
Gergely Svéd | CEO
Oluf Riddersholm | CFO
Auditors
Ellab A/S Annual Report 2025
Page 10
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
CSR
Ellab A/S Annual Report 2025
Page 11
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Page 12
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Sustainability
Page 13
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Sustainability
Page 14
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Sustainability
Governance (continued)
Page 15
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Sustainability
Governance (continued)
Page 16
Overview
Contents
Overview ..................................................................................................... 3
Five Year Summary .................................. 3
Letter from our CEO .............................. 5
Global Expertise With Local
Reach .............................................................................. 6
Ellab Group ............................................................ 7
Board of Directors .................................... 8
Company Information ........................9
Sustainability .................................................... 10
Financial Review ............................................................................. 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Sustainability
Governance (continued)
Financial
Performance
Page 17
Contents
Overview ..................................................................................................3
Financial Performance .......................................................17
Financial Review ........................................18
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Financial PerformanceFinancial Performance
ELLAB A/S ANNUAL REPORT 2024
Page 18
Contents
Overview ..................................................................................................3
Financial Performance .......................................................17
Financial Review ........................................18
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Financial Review
Development in the year
During the financial year strategic business
transformation initiatives were completed to
strengthen the commercial part of the business to
support growth initiatives. This included change in
leadership and organisational structures throughout
the Group combined with a rebranding campaign
that displayed the journey to become an end-to-end
compliance solutions partner.
The Group Revenue amounts to DKK 986 million
compared to DKK 996 million for 2024 mainly
explained by lower market activity than expected
and negative impact from currency translation as
USD depreciated against DKK.
The adjusted EBITDA (note 7) for the year amounts
to DKK 286.4 million and is DKK 10.0 million higher
than last year mainly explained by the impact from
the acquisition of PharmaProcess in November
2024. The adjusted EBITDA margin for the year
amounts to 29.0 % compared to 27.7 % in 2024.
The increased EBITDA margin is driven by efficiency
gains from prior year’s investment in the factory
footprint and focus on timely cost management as
well as a favourable product mix.
Special items amount to DKK 56.3 million and
consist mainly of acquisition and strategic business
transformation costs, and organisational related
one-offs.
Net financial items amount to a cost of DKK 19.7
million compared to DKK 97.1 million last year
explained by lower interest expenses to group
companies and lower net exchange rate losses. The
lower interests to group companies were explained
by repayment of a group loan in 2024.
Net profit for the year amounts to DKK 28.1 million
compared to DKK -19.4 million last year. Total
comprehensive income amounts to DKK 18.1
million and consists of the net profit for the year
and a negative exchange rate adjustments of net
investments in foreign operations.
Total assets amount to DKK 3,073 million as per 31
December 2025 compared to DKK 3,217 million as
per 31 December 2024. Total assets decreased as
the yearly amortisation and depreciation charge
more than offset investments during the year.
Total equity amounts to DKK 2,512 million as per
31 December 2025 and has decreased by DKK 82
million compared to 31 December 2024, explained
by dividend distribution of DKK 100 million partly
offset by the total comprehensive income for the
year.
Cash flow from operating activities for the financial
year amount to DKK 226 million compared to DKK
199 million last year, explained by improved working
capital and tax payments.
Cash flow from investing activities for the financial
year was an outflow of DKK 65 million compared to
DKK 136 million last year. M&A activity in 2024 was
not repeated in 2025 which explained the reduced
outflow as investments in fixed assets overall were
at the same level.
Cash flow from financing activities amount to an
outflow of DKK 158 million compared to DKK 52
million last year. The outflow primarily consists of
distribution of dividend and partly repayment of
credit facilities. Last year’s outflow was lower as it
included obtained M&A financing.
Parent company
The parent company’s net profit for the year
amounts to DKK 28.1 million similar to the result
of the Group as the parent company measure
investments in subsidiaries using the equity method.
The development in the parent company’s net profit
is similar to the Group. The financial position of the
parent company remained stable while the increase
in operating cash flows were applied to partly
reduce the credit facilities.
Ellab A/S Annual Report 2025
Financial Performance
Page 19
Contents
Overview ..................................................................................................3
Financial Performance .......................................................17
Financial Review ........................................18
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Financial Review
Expectations from last year and development for
the coming year
The revenue declined compared to last year and
was thereby not in line with expectations of 10%
organic growth. EBITDA growth was driven by the
M&A activity in late 2024 and consequently not in
line with the expected organic growth of 15%.
During the year market interest levels decreased as
expected and CAPEX spending by our customers
slowly improved, however the uncertainty on global
trade and tariffs limited the growth opportunities and
drove the lower than expected revenue.
Overall, management consider the financial results
of the Group below expectations but are satisfied
with the strategic changes made during the year,
which positions the Group for future growth.
Management expects the strategic initiatives
launched in 2025 will result in increased activity.
Furthermore, management expects the customers’
investment willingness to return to historical growth
levels, after some soft years following the positive
trends seen in 2025.
Based on these assumptions, Management expects
revenue to increase by 6-10% and EBITDA to
increase by 4-8% in the next financial year.
Management expects that revenue for 2026 will be
in the range of DKK 1,045 million to DKK 1,085 million
and operation profit in the range of DKK 80 million to
DKK 110 million.
Operating risk and financial risks
With activities around the world, Ellab has the
risks inherent in international activities, including
geopolitical unrest which combined with uncertain
tariff exposure can lead to reduced investment
activities at the Group’s customers. Furthermore,
fluctuations in currency risks, particular in USD is
also a risk for the Group. Risks from potential cyber
attacks and malicious activities are constantly
increasing due to the evolving digital and AI threat
landscape.
The Group’s continuous risk management focus
includes identification and mitigation activities of
the identified risks based on the significance of the
risks and livelihood of business interruption, financial
and reputation damage. New risk factors in 2025
include the impact from uncertain and fluctuating
tariff issued by the USA, impacting US customers
as products are produced and shipped from
Denmark. Management ongoing assess the need for
implementing structural changes and will increase
prices to offset the impact from the changed tariffs.
Research and development
Continuous innovation and product development
is at the core of Ellab. Understanding customer
needs and requirements is essential for developing
and delivering relevant and valuable solutions to
the market, supporting the company’s sustainable
growth strategic and long-term partnerships.
Therefore, the Ellab Group is dedicated to continue
to invest significantly in Research and Development.
R&D costs for 2025 amount to DKK 29.3 million
(2024 DKK 24.8 million), corresponding to 3.0%
(2024 2.5%) of net revenue, and relate primarily
to the development of software, products and
processes within Validation and Monitoring
Solutions. A few recent examples of the outcome
of our focused R&D investments are the launch of
the wireless TrackSense Frigo UX Sky (Validation
Solutions product) in late 2025, and the continued
improvement of the TrackView Pro (Monitoring
Solutions product).
Intellectual capital resources of importance for
future earnings
The Group is committed to pursue a continuous
development of products and processes. It is
therefore crucial that the Group in the future
can attract and retain competent and motivated
employees, including engineers. Furthermore, we
aim to optimise the output from our R&D employees
and have therefore integrated a range of AI tools and
efficiency-enabling systems to our R&D processes.
Ellab A/S Annual Report 2025
Financial Performance
Page 20
Contents
Overview ..................................................................................................3
Financial Performance .......................................................17
Financial Review ........................................18
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Financial Review
Intellectual properties
Due to a growing organisation and market presence,
and in order to strategically harvest the benefits
of such growth, the operating model of Ellab has
naturally evolved to a more centralized operating
model over time, with a number of key functions
being performed centrally and key strategic
and operational decisions taken centrally by the
Company for the global organisation.
Ellab A/S is generally the legal and economic owner
of the Group’s intangible property rights. This
ownership is aligned to and supported by the fact
that Ellab A/S also initiates, manages, finances,
oversees and controls all research and development
activities within the Group.
Uncertainty relating to recognition and
measurement
Recognition and measurement in the Annual Report
have not been subject to specific uncertainty.
Unusual events
The Group and the results of the activities and cash
flows of the Group for the financial year 2025 have
not been affected by any unusual events.
Subsequent events
No events materially affecting the assessment of the
Annual Report have occurred after the balance sheet
date.
Ownership
The ultimate parent for which consolidated financial
statements are prepared is the Novo Nordisk
Foundation. The direct parent of Ellab Group is Echo
BidCo A/S.
Ellab A/S Annual Report 2025
Financial Performance
Consolidated
Financial Statements
Page 21
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Financial StatementsFinancial Statements
Page 22
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Consolidated Income Statement
1 January - 31 December
DKK million Note 2025 2024
Revenue 3 986.4 996.2
Cost of production 4, 5 (451.1 ) (451.7 )
Gross profit 535.3 544.5
Distribution costs 4, 5 (245.0 ) (237.9 )
Development costs 4, 5 (29.3 ) (24.8 )
Administration costs 4, 5 (154.5 ) (172.1 )
Operating profit before special items 106.5 109.7
Special items 6 (56.3 ) (36.4 )
Operating profit 50.2 73.3
Financial income 8 17.9 36.7
Financial expenses 8 (37.6 ) (133.8 )
Profit before tax 30.5 (23.8 )
Income taxes 9 (2.4 ) 4.4
Net profit for the year 28.1 (19.4 )
Adjusted EBITDA 7
Consolidated Statement of Comprehensive Income
1 January - 31 December
DKK million Note 2025 2024
Net profit for the year
Other comprehensive income
Items that will be recycled subsequently to
the Consolidated Income Statement:
Foreign exchange adjustments on net
investments in foreign operations (10.0 ) 6.6
Other comprehensive income
for the year, net of tax (10.0 ) 6.6
Total comprehensive income
for the year 18.1 (12.8 )
Ellab A/S Annual Report 2025
Financial Statements
Income Statement
Page 23
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Statement of financial position at 31 December
Assets
DKK million Note 2025 2024
Intangible assets 10 2,472.8 2,559.4
Property, plant and equipment 11 78.6 90.8
Right-of-use assets 12 75.3 91.2
Other receivables 4.4 3.8
Deferred tax assets 9 0.2 0.3
Total non-current assets
Inventories 13 70.3 64.7
Trade receivables 14 224.9 244.9
Contract assets 15 15.6 22.3
Other receivables 7.3 5.1
Prepayments 11.0 11.5
Income tax receivables 0.7 9.2
Cash and cash equivalents 111.8 112.4
Total current assets
Total assets
DKK million Note 2025 2024
Share capital 16
Reserve for currency translation
Retained earnings
Total equity
Credit facilities 17 9.3 57.7
Lease liabilities 12 60.6 76.1
Deferred tax liabilities 9 186.6 216.3
Payables to parent companies 22 73.0 69.1
Total non-current liabilities
Trade payables 24.5 31.6
Lease liabilities 12 20.0 19.6
Payables to parent companies 72.5 49.9
Income tax payables 39.5 18.0
Other payables 56.5 64.0
Contract liabilities 15 18.4 20.3
Total current liabilities
Total liabilities 560.9 622.6
Total equity and liabilities 3,072.9 3,216.5
Equity and Liabilities
Ellab A/S Annual Report 2025
Financial Statements
Page 24
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Consolidated Cash Flow Statement
1 January - 31 December
DKK million Note 2025 2024
Net cash flow for the year 3.4 11.6
Cash and cash equivalents at the
beginning of the year
Effects of exchange rate changes on
cash and cash equivalents
(4.0 ) 2.2
Net cash flow for the year 3.4 11.6
Cash and cash equivalents at end
of the year 111.8 112.4
Cash and cash equivalents
comprise the following:
Cash at bank and in hand
DKK million Note 2025 2024
Net profit for the year 28.1 (19.4 )
Adjustments 23 201.9 259.8
Changes in net working capital 24 1.7 (18.2 )
Financial income received 2.8 0.6
Financial expenses paid (8.6 ) (9.5 )
Income taxes paid 0.2 (14.2 )
Cash flow from operating activities 226.1 199.1
Purchase of intangible assets 10 (45.2 ) (25.4 )
Purchase of property, plant & equip. 11 (20.1 ) (45.5 )
Payment for acquisition of
subsidiaries, net of cash acquired 0.0 (64.9 )
Proceeds from sale of property,
plant and equipment 0.6 0.2
Cash flow from investing activities (64.7 ) (135.6 )
Credit facilities 25 (48.4 ) 4.2
Loan parent 0.0 68.7
Repayment of lease liabilities 25 (21.3 ) (20.5 )
Dividend paid (88.3 ) (104.3 )
Cash flow from financing activities
(158.0 ) (51.9 )
Ellab A/S Annual Report 2025
Financial Statements
Cash Flow Statement
Page 25
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Consolidated Statement of Changes in Equity
DKK million Note Share capital
Reserve for
currency
translation
Retained
earnings Total
Equity at 1 January 2025 16 15.0 12.1 2,566.8 2,593.9
Profit for the year 0.0 0.0 28.1 28.1
Other comprehensive income 0.0 (10.0 ) 0.0 (10.0 )
Total comprehensive income for the year
Dividends 16 0.0 0.0 (100.0 ) (100.0 )
Transactions with owners
Equity at 31 December 2025
Ellab A/S Annual Report 2025
Financial Statements
Changes in Equity
Page 26
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Consolidated Statement of Changes in Equity
DKK million Note Share capital
Reserve for
currency
translation
Retained
earnings Total
Equity at 1 January 2024 16 15.0 5.5 1,544.6 1,565.1
Profit for the year 0.0 0.0 (19.4 ) (19.4 )
Other comprehensive income 0.0 6.6 0.0 6.6
Total comprehensive income for the year
Contribution from parent 22 0.0 0.0 1,066.0 1,066.0
Dividends 16 0.0 0.0 (75.0 ) (75.0 )
Sale of treasury shares 16 0.0 0.0 50.6 50.6
Transactions with owners
Equity at 31 December 2024
Ellab A/S Annual Report 2025
Financial Statements
Page 27
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Notes - Group
1. Accounting policies
2. Critical accounting estimates and judgements
3. Revenue from contracts with customers
4. Employee costs
5. Amortisation and depreciation
6. Special items
7. Adjusted EBITDA
8. Financial income and expenses
9. Income and deferred taxes
10. Intangible assets
11. Property, plant and equipment
12. Leases
13. Inventories
14. Trade receivables
15. Contract balances
16. Share capital
17. Financial risk management
18. Capital management
19. Business Combinations
20. Commitments and contingent liabilities
21. Fee to auditors appointed at the general meeting
22. Related parties
23. Cash flow statement - adjustments
24. Cash flow statement - changes in net working capital
25. Changes in liabilities arising from financing activities
26. List of group companies
27. Events after the balance sheet date
Ellab A/S Annual Report 2025
Financial Statements
Page 28
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
1. Accounting policies
The consolidated financial statements of the
Group have been prepared in accordance with
IFRS accounting standards as adopted by the
EU as well as additional Danish disclosure
requirements applying to entities of large
enterprises reporting in class C.
The annual report has been prepared under
the historical cost convention. The financial
statements are presented in million Danish Kroner
(mDKK) with one digit, which is also the parent
company’s functional currency.
Material accounting policies
The Group’s accounting policies are described in
relation to the individual notes to the Consolidated
Financial Statements. Management regards the
following as the most material accounting policy
information for the recognition and measurement
of reported amounts as well as relevant to an
understanding of the Consolidated Financial
Statements:
- Revenue from contracts with customers (note 3)
- Intangible assets (note 10)
- Business combinations (note 19)
Basis of consolidation
The consolidated financial statements include the
parent company, Ellab A/S, and its subsidiaries
(the Group). Subsidiaries are all entities over which
the Group has control. The Group controls an
entity when the group is exposed to, or has rights
to, variable returns from its involvement with the
entity and has the ability to affect those returns
through its power to direct the activities of the
entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the Group.
They are deconsolidated from the date that control
ceases.
Intercompany transactions, balances and
unrealised gains on transactions between group
companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides
evidence of an impairment of the transferred
asset.
Foreign currency translation
Functional currency
Items included in the financial statements of each
of the Group’s entities are measured using the
currency of the primary economic environment
in which the entity operates (‘the functional
currency’).
Transactions and balances
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation of
monetary assets and liabilities denominated in
foreign currencies at year end exchange rates are
generally recognised in profit or loss.
The results and financial position of foreign
operations that have a functional currency
different from the presentation currency are
translated into the presentation currency as
follows:
- assets and liabilities for each balance sheet
presented are translated at the closing rate at the
date of that balance sheet
- income and expenses for each statement of
profit or loss and statement of comprehensive
income are translated at average exchange rates
(unless this is not a reasonable approximation
of the cumulative effect of the rates prevailing
on the transaction dates, in which case income
and expenses are translated at the dates of the
transactions), and
- all resulting exchange differences are recognised
in other comprehensive income.
Business Combinations
The acquisition method of accounting is used to
account for all business combinations, regardless
of whether equity instruments or other assets are
acquired. The consideration transferred for the
acquisition of a subsidiary comprises the:- fair
values of the assets transferred- liabilities incurred
to the former owners of the acquired business-
equity interests issued by the group- fair value of
any asset or liability resulting from a contingent
consideration arrangement, and- fair value of any
pre-existing equity interest in the subsidiary.
Ellab A/S Annual Report 2025
Financial Statements
Page 29
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Business Combinations (continued)
Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business
combination are, with limited exceptions,
measured initially at their fair values at the
acquisition date. The group recognises any non-
controlling interest in the acquired entity on an
acquisition-by-acquisition basis either at fair value
or at the non-controlling interest’s proportionate
share of the acquired entity’s net identifiable
assets.
Acquisition-related costs are expensed as
incurred.
The excess of the:- consideration transferred,-
amount of any non-controlling interest in the
acquired entity, and- acquisition-date fair value of
any previous equity interest in the acquired entity
over the fair value of the net identifiable assets
acquired is recorded as goodwill. If those amounts
are less than the fair value of the net identifiable
assets of the business acquired, the difference is
recognised directly in profit or loss as a bargain
purchase.
Where settlement of any part of cash
consideration is deferred, the amounts payable
in the future are discounted to their present value
as at the date of exchange. The discount rate
used is the entity’s incremental borrowing rate,
being the rate at which a similar borrowing could
be obtained from an independent financier under
comparable terms and conditions.
Contingent consideration is classified either as
equity or a financial liability. Amounts classified as
a financial liability are subsequently remeasured
to fair value, with changes in fair value recognised
in profit or loss. If the business combination is
achieved in stages, the acquisition date carrying
value of the acquirer’s previously held equity
interest in the acquiree is remeasured to fair value
at the acquisition date. Any gains or losses arising
from such measurement are recognised in profit
or loss.
Income statement
Cost of production
Cost of production comprises costs for equipment
and services incurred to achieve revenue for the
year. Cost for equipment comprises raw materials,
consumables, direct labour costs and indirect
production whereas cost for services comprise
labour costs and consumables.
Distribution costs
Distribution expenses from sales units comprise
costs in the form of salaries to sales and
distribution staff, advertising and marketing
expenses, sales office expenses as well as
operation of motor vehicles, depreciation,
etc. amortisation of intangible assets, except
for development projects that are included in
development costs.
Development costs
Research and development costs comprise
research costs, costs relating to development
projects that do not qualify for recognition in
the balance sheet as well as amortisation and
impairment of development projects.
Administrative costs
Administrative expenses comprise expenses
for Management, administrative staff, office
expenses, depreciation, etc.
Income tax
The income tax expense or credit for the period
is the tax payable on the current period’s taxable
income based on the applicable income tax rate
for each jurisdiction adjusted by changes in
deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
The current income tax charge is calculated
on the basis of the tax laws enacted or
substantively enacted at the balance sheet date
in the countries where the Company and its
subsidiaries operate and generate taxable income.
Management periodically evaluates positions
taken in tax returns with respect to situations
in which applicable tax regulation is subject to
interpretation. It establishes provisions, where
appropriate, on the basis of amounts expected to
be paid to the tax authorities.
Notes - Group
1. Accounting policies (continued)
Ellab A/S Annual Report 2025
Financial Statements
Page 30
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Deferred income tax is provided in full, using the
liability method, on temporary differences arising
between the tax bases of assets and liabilities
and their carrying amounts in the consolidated
financial statements. Deferred income tax is not
accounted for if it arises from initial recognition
of an asset or liability in a transaction other than
a business combination that at the time of the
transaction affects neither accounting nor taxable
profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted
or substantially enacted by the end of the
reporting period and are expected to apply when
the related deferred income tax asset is realised or
the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is
probable that future taxable amounts will be
available to utilise those temporary differences
and losses. Deferred tax assets and liabilities are
offset when there is a legally enforceable right to
offset current tax assets and liabilities and when
the deferred tax balances relate to the same
taxation authority. Current tax assets and tax
liabilities are offset where the entity has a legally
enforceable right to offset and intends either to
settle on a net basis, or to realise the asset and
settle the liability simultaneously.
Current and deferred tax is recognised in profit
or loss, except to the extent that it relates to
items recognised in other comprehensive income
or directly in equity. In this case, the tax is also
recognised in other comprehensive income or
directly in equity, respectively.
Impairment of non-current assets
Goodwill & development projects in progress are
not subject to amortisation but tested annually
for impairment, or more frequently if events or
changes in circumstances indicate that they
might be impaired. Other assets are tested for
impairment whenever events or changes in
circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is
recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount.
The recoverable amount is the higher of an asset’s
fair value less costs of disposal and value in use.
For the purposes of assessing impairment, assets
are grouped at the lowest levels for which there
are separately identifiable cash inflows which
are largely independent of the cash inflows from
other assets or groups of assets (cash-generating
units). Non-financial assets other than goodwill
that suffered an impairment are reviewed for
possible reversal of the impairment at the end of
each reporting period.
Cash and cash equivalents
Cash and cash equivalents comprises cash and
bank balances.
Equity
Share capital
Ordinary shares are classified as equity.
Incremental costs directly attributable to the
issue of new shares are shown in equity as a
deductions, net of tax, from the proceeds.
Foreign currency translation reserve
Exchange differences arising on translation of
the foreign controlled entities are recognised in
other comprehensive income and accumulated in
a separate reserve within equity. The cumulative
amount is reclassified to profit or loss when the
net investment is disposed of.
Dividends
Provision is made for the amount of any dividend
declared, being appropriately authorised and no
longer at the discretion of the entity, on or before
the end of the reporting period but not distributed
at the end of the reporting period.
Financial liabilities
Borrowings are initially recognised at fair value
which is generally proceeds received, and net
of transaction costs incurred. Subsequently,
borrowings are measured at amortised cost.
Borrowings are classified as current liabilities
unless the group has an unconditional right to
defer settlement of the liability for at least 12
months after the reporting period.
Other financial liabilities, including bank and
loans, trade and other payables, are on initial
recognition measured at fair value. The liabilities
are subsequently measured at amortised cost.
Notes - Group
1. Accounting policies (continued)
Ellab A/S Annual Report 2025
Financial Statements
Page 31
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Fair value estimation
Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value of
financial assets traded in active markets are
based on quoted market prices at the close of
trading on the reporting date.
The fair value of financial instruments that are
not traded in an active market is determined
using generally accepted valuation technics
based on observable inputs from active
markets. For financial liabilities where the fair
value is disclosed, the fair value is estimated by
discounting future contractual cash flows at the
current market interest rate.
Cash flow statement
The cash flow statement shows the Group’s
cash flows for the year broken down by
operating, investing and financing activities,
changes for the year in cash and cash
equivalents as well as the Company’s cash and
cash equivalents at the beginning and end of
the year.
Solvency ratio
Equity at year end
Total assets at year end
Return on equity
Net profit for the year
Average equity
Notes - Group
1. Accounting policies (continued)
Cash flows from operating activities are
calculated as the net profit for the year
adjusted for changes in working capital and
non-cash operating items such as depreciation,
amortisation and impairment losses, and
provisions. Working capital comprises current
assets less short-term debt excluding items
included in cash and cash equivalents.
Cash flows from investing activities comprise
cash flows from acquisitions and disposals
of companies, intangible assets, property,
plant and equipment as well as fixed asset
investments.
Cash flows from financing activities comprise
cash flows from the raising and repayment of
long term debt and principal element on lease
payments as well as payments to and from
shareholders.
Key Figures
The financial ratios have been calculated in
accordance with the recommendations of the
Association of Danish Financial Analysts.
Financial highlights
Ellab A/S Annual Report 2025
Financial Statements
Page 32
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Adoption of new and amended IFRSs
Management has assessed the impact of new
or amended and revised accounting standards
and interpretations (IFRSs) issued by the
IASB and IFRSs endorsed by the European
Union effective on or after 1 January 2025. It
is assessed that application of amendments
effective from 1 January 2025 has not had a
material impact on the consolidated financial
statements for 2025.
Furthermore, Management has assessed
the impact of new or amended accounting
standards and interpretations (IFRSs) issued by
the IASB that have not yet become effective.
No new or amended accounting standards
or interpretations (IFRSs) have been early
adopted. Management has assessed that the
application of these new IFRSs will not have
a material impact on future reporting periods
apart from IFRS 18 which replaces IAS 1
effective from 1 January 2027.
The new standard requires the income
statement to be structured into the five
categories: ‘operating’, ‘investing’, ‘financing’,
‘taxes’ and ‘discontinued’. Furthermore, the new
term “Management Performance Measures
(MPM)” is introduced, which must be disclosed
in the notes of the financial statements.
IFRS 18 will revise the presentation of the
Group’s Income statement accordingly, mainly
due to the classification of ‘financial income’
and ‘financial expenses’ into three new line
items: ‘operating financial income and expenses’
(part of operating), ‘investment income’ (part
of investing) and ‘interest expenses’ (part of
financing).
This reclassification will result in a difference
between the IAS 1 operating profit reported
in prior periods and the new IFRS 18-defined
operating profit, mainly due to the inclusion of
operating foreign exchange differences from
external and group balances. Reported net
results for the year remain unaffected.
2. Critical accounting estimates and judgements
Notes - Group
1. Accounting policies (continued)
In the preparation of the consolidated financial
statements according to IFRS, Management
is required to make certain estimates as many
financial statement items cannot be reliably
measured, but must be estimated as the value
of assets and liabilities often depends on future
events that are somewhat uncertain.
The judgments, estimates and assumptions made
are based on historical experience and other
factors that Management considers to be reliable,
but which by their very nature are associated
with uncertainty and unpredictability. These
assumptions may prove incomplete or incorrect,
and unexpected events or circumstances may
arise. A description of significant accounting
estimates and judgments is included in the
relevant notes:
- Goodwill (note 10)
Reference to the specific notes for further
information on the key accounting estimates and
assumptions applied.
Ellab A/S Annual Report 2025
Financial Statements
Page 33
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
3. Revenue from contracts with customers
Accounting policies
Revenue from contracts with customers relates to sale of equipment and
services within the Group’s three business lines.
Revenue relating to sale of equipment is recognised at a point in time
when control of the products transfers to the customers, usually upon
delivery. Each product is considered as one performance obligation.
Revenue relating to sale of services is derived over time and recognised
in the income statement as the services are rendered. Contracts for
services include fixed price contracts and contracts based on hourly
rates. Distinct contracts are considered as one performance obligation.
Revenue is recognised by measuring progress towards completion of
the performance obligation according to the contract. Measurement
of progress is based on an input method relating to direct labour hours
spent. For contracts with differences between cumulative revenue
recognised and cumulative amounts invoiced to the customer, the Group
recognises a contract asset or a contract liability for the difference.
For service contracts where the customers are invoiced a fixed amount
for each hour of services provided, the Group applies the practical
expedient in IFRS 15, whereby revenue is recognised in the amount to
which the Group has a right to invoice, as this corresponds directly with
the value of the completed services.
The Group derives revenue from the following business lines.
DKK million 2025 2024
Validation Solutions 782.5 781.6
Monitoring Solutions 68.2 67.1
Calibration Solutions 135.7 147.5
Total revenue 986.4 996.2
Revenue per geography:
United States 328.6 370.1
Europe 577.2 545.6
Rest of world 80.6 80.5
Total revenue 986.4 996.2
Revenue is recognised as follows:
At a point in time 497.1 475.3
Over time 489.3 520.9
Total revenue 986.4 996.2
As part of the strategic changes to leadership and market access the Group’s busi-
ness lines have been refocused where the previous business line “Field Services &
Consulting” has been allocated to “Validation Solutions” and “Monitoring Solutions”
and subsequently the new business line, “Calibration Solutions” has been separated
from the categories.
Comparison figures in 2024 have been adjusted to the new reporting structure.
Ellab A/S Annual Report 2025
Financial Statements
Page 34
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
4. Employee costs
DKK million 2025 2024
Wages and salaries 429.6 434.5
Defined contribution plans 22.7 15.2
Other social security costs 53.8 41.2
Total employee costs for the year 506.1 490.9
Employee costs incl. in intangible
assets
(27.0) (24.8)
Change in employee costs incl. in
inventories (0.7) (2.3)
Total employee costs expensed to
the income statement 478.4 463.8
Wages and salaries, pensions and other social security expenses
are recognised in the following items:
Cost of production* 271.7 257.7
Distribution costs 100.3 96.2
Development costs 10.5 9.2
Administrative costs*
69.1 90.5
Special items
26.8 10.2
Total employee costs expensed to
the income statement 478.4 463.8
Average number of employees 743 757
Field service costs of DKK 13 million have been reclassified from ‘Administrative
expenses’ in 2024 to ‘Cost of production’ in 2025.
Key Management compensation
Key Management consists of Executive Management and Board of Directors
and total compensation paid or payable for employee services is shown
below**:
f
DKK million 2025 2024
Wages and salaries 13.4 6.1
Board fee 1.1 1.1
Defined contribution plans 0.3 0.2
Other social security costs 0.0 0.0
Total 14.8 7.4
Executive Management received DKK 13.7 million (2024: DKK 6.3 million)
in compensation of which DKK 2.6 million is related to termination
benefits.
Wages and salaries include fixed-base salary and accrued cash bonuses
designed to incentivize individual performance and the achievement of
a number of predefined short-term functional and individual business
targets.
Certain employees participate in a management equity program, which
allows them to acquire shares in Echo TopCo A/S (parent company)
subject to customary leaver options. As Ellab A/S is not part of the
transaction it is considered an equity settled program. The investments
were made at fair value why no economic benefit to the participants,
hence, no expenditure or effect on either the balance sheet or on the
income statement of the Group.
**Most of the total compensation of key management personnel is charged via
management fees and not part of the total employee costs.
Ellab A/S Annual Report 2025
Financial Statements
Page 35
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
DKK million 2025 2024
Intangible assets 129.6 117.5
Property, plant and equipment 27.5 27.9
Right-of-use assets 22.4 21.3
Total 179.5 166.7
Amortisation and depreciation are recognised in the following items:
Cost of production 17.6 19.6
Distribution costs 120.0 114.4
Development costs 17.6 11.6
Administrative costs 24.3 21.1
Total 179.5 166.7
Accounting policies
Special items include significant income and expenses of a special
non-recurring nature which cannot be attributed directly to the Group’s
ordinary operating business activities. Special items include costs
related to acquisition of businesses, strategic business transformation
and organisational changes and other significant costs. These items are
classified separately in the income statement to provide a transparent view
of the Group’s ordinary operating profit.
DKK million 2025 2024
Acquisition related costs 12.3 5.7
Strategic business transformation
and implementation 6.5 7.0
Strategic restructuring and
organisational changes 32.6 23.7
Impairment of assets and other 4.9 0.0
Total 56.3 36.4
Specified by line item in the income statement are: ‘Cost of production’ DKK
2.5 million (2024 12.5 DKK million), ‘Distribution costs’ DKK 19.5 million (2024
DKK 8.4 million) and ‘Administration costs’ DKK 34.3 million (2024 DKK 15.5
million).
7. Adjusted EBITDA
Notes - Group
5. Amortisation and depreciation
Notes - Group
6. Special items (continued)
DKK million 2025 2024
Operating profit before special items 106.5 109.7
Amortisation and depreciation (note 5) 179.5 166.7
Loss on sales of fixed assets 0.4 0.0
Adjusted EBITDA 286.4 276.4
6. Special items
Ellab A/S Annual Report 2025
Financial Statements
Page 36
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
8. Financial income and expenses
DKK million 2025 2024
Financial income
Exchange rate gains 15.1 34.7
Other financial income 2.8 2.0
Total 17.9 36.7
Financial expenses
Exchange rate losses 25.2 56.9
Interest expense to group companies 3.8 67.6
Interest expense on lease liabilities 4.8 5.5
Other financial expenses
3.8
3.8
Total 37.6 133.8
Effective interest expenses on financial liabilities measured at amortised
cost amounted to DKK 10.1 million (2024 DKK 75.3 million). The lower
interests to group companies were explained by repayment of a group loan
in 2024.
Accounting policies
Financial income and expenses are recognised in the income statements at
the amounts that relate to the financial year. Net financials include interest
income and expenses as well as impact from exchange rate gains/losses
mainly related to loans.
Notes - Group
9. Income and deferred taxes
DKK million 2025 2024
Current tax:
Current tax on profits for the year
Current tax profits for previous years
Deferred tax on profit for the year
39.9
(7.9)
(28.7)
15.7
(0.1)
(20.0)
Deferred tax profit for previous years (0.9) 0.0
Total 2.4 (4.4)
Tax calculated at 22% of profit bf. tax 6.7 (5.2)
Tax according to income statement 2.4 (4.4)
Variance (4.3) 0.8
Tax effects of:
Differences in the tax rates in foreign
subsidiaries relative to 22% 1.5 0.9
Non-deductible expenses 2.6 0.3
Tax relating to previous years (8.8) (0.1)
Other incl. non-taxable fair value adj. 0.4 (0.3)
Total (4.3) 0.8
Effective tax rate 7.9 % 18.4%
Ellab A/S Annual Report 2025
Financial Statements
Page 37
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
9. Income and deferred taxes (continued)
DKK million 2025 2024
Deferred tax at 1 January
(216.0) (218.3)
Deferred tax recognised in the income statement
29.6 20.0
Additions relating to acquisition of subsidiaries
0.0 (17.7)
Deferred tax at 31 December
(186.4) (216.0)
Deferred tax relates to:
Intangible assets
(195.0) (221.3)
Property, plant and equipment
1.5 0.9
Right-of-use assets
(15.9) (19.7)
Lease liabilities
17.9 21.4
Inventories
6.6 0.8
Trade & other receivables
(0.8) (0.6)
Other liabilities
(0.7) 2.5
(186.4) (216.0)
Of which presented as deferred tax assets
0.2 0.3
Of which presented as deferred tax liabilities
(186.6) (216.3)
(186.4) (216.0)
From 1 January 2024 Ellab was subject to
Global Minimum Tax (OECD BEPS Pillar Two
rules). The rules did not have a material
impact on the tax position of Ellab in 2024
or 2025. Ellab has applied the exemption to
recognise deferred tax assets and liabilities
arising from the implementation of the Piller
Two rules.
Ellab A/S Annual Report 2025
Financial Statements
Page 38
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
10. Intangible assets
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 January 2025 1,603.6 4.4 85.9 883.8 324.6 65.6 23.1 2,991.0
Business combinations (1.2) 0.0 0.0 0.0 0.0 0.0 0.0 (1.2)
Additions during the year 0.0 9.8 0.0 0.0 0.0 0.0 35.4 45.2
Transfer for the year 0.0 0.0 0.0 0.0 0.0 23.6 (23.6) 0.0
Exchange rate adj. (0.5) 0.0 0.0 (0.5) 0.0 0.0 0.0 (1.0)
At 31 December 2025 1,601.9 14.2 85.9 883.3 324.6 89.2 34.9 3,034.0
Accumulated amortisation:
At 1 January 2025 0.0 3.4 22.9 268.0 99.0 38.3 0.0 431.6
Amortisation for the year 0.0 2.6 4.6 75.0 29.7 17.7 0.0 129.6
Exchange rate adj. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
At 31 December 2025 0.0 6.0 27.5 343.0 128.7 56.0 0.0 561.2
Carrying amount
31 December 2025 1,601.9 8.2 58.4 540.3 195.9 33.2 34.9 2,472.8
Ellab A/S Annual Report 2025
Financial Statements
Page 39
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
10. Intangible assets (continued)
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 January 2024 1,551.3 4.4 85.9 861.8 324.6 28.7 34.6 2,891.3
Business combinations 51.9 0.0 0.0 21.6 0.0 0.0 0.0 73.5
Additions during the year 0.0 0.0 0.0 0.0 0.0 0.0 25.4 25.4
Transfer for the year 0.0 0.0 0.0 0.0 0.0 36.9 (36.9) 0.0
Exchange rate adj. 0.4 0.0 0.0 0.4 0.0 0.0 0.0 0.8
At 31 December 2024 1,603.6 4.4 85.9 883.8 324.6 65.6 23.1 2,991.0
Accumulated amortisation:
At 1 January 2024 0.0 2.6 18.3 197.2 69.2 26.7 0.0 314.0
Amortisation for the year 0.0 0.8 4.6 70.7 29.8 11.6 0.0 117.5
Exchange rate adj. 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0.1
At 31 December 2024 0.0 3.4 22.9 268.0 99.0 38.3 0.0 431.6
Carrying amount
31 December 2024 1,603.6 1.0 63.0 615.8 225.6 27.3 23.1 2,559.4
Ellab A/S Annual Report 2025
Financial Statements
Page 40
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Goodwill
Goodwill on acquisitions of subsidiaries is
included in intangible assets. Goodwill is not
amortised but is tested for impairment annually,
or more frequently, if events or changes in
material circumstances indicate that it might
be impaired. Goodwill is carried at cost less
accumulated impairment losses.
Other intangible assets
The Group amortises intangible assets with a
finite useful life using the straight-line method
over the following periods:
Technology 10 years
Brand 15 years
Completed development projects 3 years
Other intangible assets 3-15 years
Customers & distributors 5-15 years
Amortisation is recognised in the income
statement as ‘Distribution’ and ‘Development’
costs.
Customers and distributors
On initial recognition, customers and distributors
identified from business combinations are
recognised in the balance sheet at fair value.
Subsequently, customers and distributors are
measured at cost less accumulated amortisation
and impairment losses.
Technology
On initial recognition, technology identified
from business combinations are recognised in
the balance sheet at fair value. Subsequently,
technology is measured at cost less accumulated
amortisation and impairment losses.
Brand
On initial recognition, brand identified from
business combinations are recognised in the
balance sheet at fair value. Subsequently, brand is
measured at cost less accumulated amortisation
and impairment losses.
Development projects
Development costs cover costs and salaries
directly or indirectly attributable to the
development activities of the enterprise.
Development projects that are clearly defined
and identifiable and in respect of which technical
feasibility, sufficient resources and a potential
future market or development opportunity in the
enterprise can be demonstrated, and where it
is the intention to manufacture, market or use
the project, are recognised as intangible assets.
This applies where the cost can be measured
reliably and if sufficient certainty exists that
future earnings cover production costs, selling
costs and administrative expenses as well as the
development costs. Amortisation of development
projects recognised will start when the asset is ready
for use.
Other development costs are recognised in the
income statement as incurred.
Development projects in progress
For development projects in progress, Management
estimates on an ongoing basis whether each project
is likely to generate future economic benefits for
the Group in order to qualify for recognition. The
development projects are evaluated on technical as
well as commercial criteria. In Management’s opinion,
the development projects qualify for recognition.
Development projects completed and in progress
Development projects in progress and completed
development projects relates to development of
the Group’s products and are internally developed.
Research and development costs expensed during
the year amount to DKK 11.7 million (2024 DKK 13.2
million) excluding amortisation. The carrying amount
of development projects in progress is tested for
impairment at least once a year.
Notes - Group
10. Intangible assets (continued)
Ellab A/S Annual Report 2025
Financial Statements
Page 41
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
10. Intangible assets (continued)
Impairment tests
The Group continuously assesses whether there
is any indication that an asset may be impaired. If
any indication exists, or when annual impairment
testing of goodwill and development project in
progress are required, the Group estimates the
recoverable amount of the asset.
Result of the annual impairment test - goodwill
The carrying amount of goodwill, DKK 1,601.9
million (2024 DKK 1,603.6 million), relating to
completed acquisitions, is tested annually for
impairment.
The recoverable amount is calculated as the
present value of future net cash flows (value in
use). The entities are monitored by Management
as a single cash generating unit (CGU) since it is
not practically possible to separate the revenue
streams into smaller cash generating units.
The Group sell products and services from all
three business lines to its customers, why the
organisation is setup so that sales, marketing,
customer service and R&D etc. supports all three
business lines. Moreover, assets and liabilities
cannot clearly be allocated to one specific
business line as they concern and include impact
from all business lines.
Key parameters in the test are revenue growth,
EBITDA margins, expected capital expenditure
and growth expectations for the terminal period.
The estimated future free net cash flows in the
impairment test for 2025 are based on budget
for 2026 and the business plans and projections
to 2033 for the combined business activities
considered as one CGU.
Revenue is expected to increase by an
annually average of 7.1% from 2025 to 2033.
Management selected an eight-year budget
period to accommodate for the expected stepwise
development from relative high growth in the first
budget years towards the steady state at the end
of the budget period The long-term growth rate
in the terminal period is estimated to 2.7% for
the use of this impairment test. All regions are
expected to grow the sale of validation, calibration
and monitoring solutions and further develop
service and other consulting activities.
The EBITDA margin is estimated to increase to a
level corresponding to historical EBITDA margins.
A discount rate (WACC) was applied for the
specific business areas based on assumptions
about interest rates and risks reflecting the risks
inherent in the assets. WACC was estimated to
8.9% (pre-tax discount rate 11.5%) based on the
cost of debt related to external financing of bank
loan for the acquisitions and cost of equity based
on the rate of return.
The annual average revenue growth assumptions of
7.1% used in the impairment test for 2025 have been
reduced from 10.9% used in 2024. The reduction is
to reflect the combined impact of updated market
expectations and the stagnant growth in previous
2-3 years. Other assumptions were in all materiality
in accordance with 2024. For the period ending 31
December 2024, the budget and business plans were
based on revenue expected to increase annually by
10.9% from 2024 to 2032. The long-term growth
rate in the terminal period was estimated to 2.2%.
In 2024 discount rate (WACC) was applied for the
specific business areas based on assumptions about
interest rates and risks reflecting the risks inherent
in the assets. WACC was estimated to 8.5% (pre-tax
discount rate 11.0%).
Key assumptions have been determined by using
a combination of long-term trends, historical
performance and the Group’s strategy. The expected
annual growth rate and the expected margins in the
budget period are based on historical experience and
assumptions about expected market developments.
The impairment tests did not show indications of
impairment losses to be recognised. In Management’s
opinion, reasonable changes in key assumptions
mentioned above will not cause significant
impairment losses.
Ellab A/S Annual Report 2025
Financial Statements
Page 42
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
10. Intangible assets (continued)
Development projects in progress
The carrying amount of development projects in
progress is tested for impairment at least once a
year. If the tests show evidence of impairment, the
asset is written down to the recoverable amount
through the income statement. The recoverable
amount is the higher of the fair value of the asset
less the expected costs to sell and its value in
use. The value in use is calculated as the present
value of expected future cash flows from the
development projects in progress.
Key accounting estimates
Goodwill impairment test
The group tests whether goodwill has suffered any
impairment on an annual basis. Qualitative factors
considered in this assessment include industry
and market considerations, financial performance
and other relevant events and factors affecting the
Group. For the 2025 and 2024 reporting periods,
the recoverable amount of the cash-generating
unit was determined based on value-in-use
calculations which require the use of assumptions
in the calculation of cash-flow projections,
discount rates and terminal growth rates.
The calculations use cash flow projections based
on financial forecasts covering an eight-year
period. Cash flows beyond the eight-years period
are extrapolated using an estimated growth rate.
Key estimates in the calculation of discounted
future cash flows include expected growth in
revenue, estimated costs and discount rate.
Estimates of growth and costs are based on
historical data combined with various internal
estimates and external sources including macro
economy expectations, which inherently includes
estimates.
Ellab A/S Annual Report 2025
Financial Statements
Page 43
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
11. Property, plant and equipment
Accounting policies
Property, plant and equipment is measured at
historical cost less accumulated depreciation and
impairment losses. The cost includes expenditure
that is directly attributable to the acquisition of the
items. Subsequent costs are included in the asset’s
carrying amount or recognised as a separate asset,
as appropriate, only when it is probable that future
economic benefits associated with the item will
flow to the group and the cost of the item can be
measured reliably. The carrying amount of any
component accounted for as a separate asset is
derecognised when replaced. All other repairs and
maintenance are charged to profit or loss during the
reporting period in which they are incurred.
Depreciations are calculated using the straight-
line method, net of their residual values over their
estimated useful lives, as follows:
Buildings 40 years
Plant and machinery 5-10 years
Other fixtures and equipment 3-5 years
Leasehold improvements 5-10 years
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of
each reporting period.
DKK million
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 January 2025 20.3 178.4 36.4 235.1
Additions 2.0 15.6 2.5 20.1
Disposals (0.6) (13.5) 0.0 (14.1)
Transfers 0.8 (0.8) 0.0 0.0
Exchange rate adj. (0.2) (5.0) (0.1) (5.3)
At 31 December 2025 22.3 174.7 38.8 235.8
Accumulated depreciation:
At 1 January 2025 8.5 126.9 8.9 144.3
Depreciation 2.3 21.3 3.9 27.5
Disposals (0.5) (12.2) 0.0 (12.7)
Transfers 0.5 (0.5) 0.0 0.0
Exchange rate adj. (0.1) (1.8) 0.0 (1.9)
At 31 December 2025 10.7 133.7 12.8 157.2
Carrying amount
31 December 2025 11.6 41.0 26.0 78.6
Ellab A/S Annual Report 2025
Financial Statements
Page 44
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
11. Property, plant and equipment
DKK million
Land and
buildings
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 January 2024 1.7 17.1 161.3 19.0 199.1
Acquisition of business 0.0 0.0 1.4 0.0 1.4
Additions 0.0 4.5 21.7 19.3 45.5
Disposals (1.7) (1.3) (8.7) (1.9) (13.6)
Exchange rate adj. 0.0 0.0 2.7 0.0 2.7
At 31 December 2024 0.0 20.3 178.4 36.4 235.1
Accumulated depreciation:
At 1 January 2024
0.2 6.6 110.4 7.8 125.0
Depreciation
0.0 2.2 23.3 2.4 27.9
Disposals
(0.2) (0.3) (7.5) (1.3) (9.3)
Exchange rate adj.
0.0 0.0 0.7 0.0 0.7
At 31 December 2024 0.0 8.5 126.9 8.9 144.3
Carrying amount
31 December 2024 0.0 11.8 51.5 2 7.5 90.8
Depreciations are recognised in the income statement as “Cost of production”, “Distribution costs” and “Administration
costs”.
Ellab A/S Annual Report 2025
Financial Statements
Page 45
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
12. Leases
The Group has recognised the following amounts relating to leases:
DKK million 2025 2024
Right-of-use assets
Properties 61.0 78.3
Cars and other leases 14.3 12.9
Total
75.3 91.2
Lease liabilities
Non-current 60.6 76.1
Current 20.0 19.6
Total
80.6 95.7
Additions to the right-of-use assets during the financial year ending 31
December 2025 were DKK 9.2 million (2024 DKK 53.1 million) of which DKK
0.0 million (2024 DKK 0.4 million) was from business acquisitions.
The income statement shows the following amounts relating to leases:
DKK million 2025 2024
Depreciation, properties 15.3 15.7
Depreciation, cars and other leases 7.1 5.6
Interest expense on lease liabilities 4.8 5.5
Total income statement
27.2 26.8
The total cash outflow for leases in the financial year was DKK 26.1 million
(2024 DKK 26.0 million). For maturity analysis refer to note 17.
The Group leases various properties, equipment and cars. Rental contracts are typically made for fixed periods of 3 to 10 years but may have extension
options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose
any covenants, but leased assets may not be used as security for borrowing purposes.
Extension options or periods after termination options are included in the lease term if the lease is reasonably certain to be extended or not terminated based
on the Group’s strategy and other relevant factors such as significant leasehold improvements. The Group has not entered into significant lease contracts
that have not yet commenced.
Ellab A/S Annual Report 2025
Financial Statements
Page 46
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
12. Leases (continued)
Accounting policies
Leases are recognised as a right-of-use asset and
a corresponding liability at the date at which the
leased asset is available for use by the group. Each
lease payment is allocated between the liability and
finance cost. The finance cost is charged to the
income statement over the lease period so as to
produce a constant periodic rate of interest on the
remaining balance of the liability for each period. The
right-of-use asset is depreciated over the shorter
of the asset’s useful life and the lease term on a
straight-line basis.
Leases include mainly properties and cars.
Assets and liabilities arising from a lease are initially
measured on a present value basis. Lease liabilities
include the net present value of the following lease
payments:
- fixed payments (including in-substance fixed
payments), less any lease incentives receivable
- variable lease payment that are based on an index
or a rate
- amounts expected to be payable by the lessee
under residual value guarantees
- the exercise price of a purchase option if the lessee
is reasonably certain to exercise that option, and
- payments of penalties for terminating the lease,
if the lease term reflects the lessee exercising that
option.
The lease payments are discounted using the
interest rate implicit in the lease, if that rate can be
determined, or the group’s incremental borrowing
rate.
Lease liabilities are subsequently measured by
increasing the carrying amount to reflect interest on
the lease liability, and reducing the carrying amount
to reflect the lease payments made.
Right-of-use assets are measured at cost comprising
the following:
- the amount of the initial measurement of lease
liability
- any lease payments made at or before the
commencement date less any lease incentives
received
- any initial direct costs, and restoration costs.
Ellab A/S Annual Report 2025
Financial Statements
Page 47
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
13. Inventories
DKK million 2025 2024
Raw materials and consumables 21.3 20.7
Finished goods and goods for resale 49.0 44.0
Total
70.3 64.7
The following are included in "Costs of production":
Inventories recognised as an expense
96.5 93.8
Accounting policies
Inventories are measured at the lower of cost under the FIFO method and
net realisable value.
The net realisable value of inventories is calculated at the amount
expected to be generated by sale of the inventories in the process of
normal operations with deduction of selling expenses. The net realisable
value is determined allowing for marketability, obsolescence and
development in expected selling price.
The cost of finished goods comprises the cost of raw materials,
consumables and direct labour with addition of indirect production costs.
Indirect production costs comprise the cost of indirect materials and
labour as well as maintenance and depreciation of the machinery, factory
buildings and equipment used in the manufacturing process as well as
costs of factory administration and management.
Ellab A/S Annual Report 2025
Financial Statements
Page 48
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
14. Trade receivables
DKK million 2025 2024
Trade receivables (gross) 233.5 248.0
Provision for bad debt (8.6) (3.1)
Trade receivables net
224.9 244.9
Movement on the Group's provision for bad debt are as follows:
Opening balances (3.1) (3.0)
Additions for the year (6.0) (0.5)
Reversals 0.3 0.1
Confirmed losses 0.2 0.3
Provision for bad debt
(8.6) (3.1)
Accounting policies
Trade receivables are recognised initially at fair value and subsequently
measured at amortised cost using the effective interest method, less
loss allowance. The Group holds the trade receivables with the objective
to collect the contractual cash flows and therefore measures them
subsequently at amortised cost. Trade receivables are generally due
for settlement within 30 to 90 days and therefore are all classified as
current. Due to the short-term nature of the current receivables, their
carrying amount is considered to be the same as their fair value. Trade
receivables are recognised initially at the amount of consideration that is
unconditional.
The Group applies the IFRS 9 simplified approach to measuring expected
credit losses which uses a lifetime expected loss allowance for all trade
receivables. The allowance is based on a provision matrix on aging
of customers and includes both historical as well as forward-looking
information. The cost of allowances for expected credit losses are
recognised in the income statements as distribution costs. Subsequent
recoveries of amounts previously written off are credited against
distribution costs.
The maximum credit exposure is equal to the carrying value of trade
receivables. For a further description of management of credit risks,
please see note 17 Financial risk management.
Ellab A/S Annual Report 2025
Financial Statements
Page 49
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
14. Trade receivables (continued)
DKK million Receivable Loss rate % 2025 Provision
Impairment of trade receivables can be specified as follows:
Current 155.2 0.0% 0.0
Overdue < 30 days 24.3 0.1% 0.0
Overdue 31 - 60 days 17.4 0.2% 0.0
Overdue 61 - 90 days 5.0 1.4% 0.1
Overdue > 91 days 31.6 26.2% 8.5
Total
233.5 8.6
DKK million Receivable Loss rate % 2024 Provision
Impairment of trade receivables can be specified as follows:
Current 167.5 0.0% 0.0
Overdue < 30 days 33.7 0.0% 0.0
Overdue 31 - 60 days 18.1 0.0% 0.0
Overdue 61 - 90 days 7.8 0.0% 0.0
Overdue > 91 days 20.9 15.0% 3.1
Total
248.0 3.1
Ellab A/S Annual Report 2025
Financial Statements
Page 50
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
15. Contract balances
The Group has recognised the following related to contracts with customers:
DKK million 2025 2024
Trade receivables 224.9 244.9
Contract assets 15.6 22.3
Contract liabilities 18.5 20.3
Revenue recognised in the reporting period that was included in contract
liabilities at the beginning of the period is DKK 20.3 million (2024: DKK 18.3
million).
Accounting policies
Contract assets relates to field service contracts and other consultancy
contracts with customers where revenue is recognised over time in the
income statement when the outcome of the contracts can be estimated
reliably. If the services rendered by the Group exceed the payment, a
contract asset is recognised. For service contracts where the customers
are invoiced a fixed amount for each hour of services provided, the Group
applies the practical expedient in IFRS 15, whereby revenue is recognised
in the amount to which the Group has a right to invoice, as this corresponds
directly with the value of the completed services. Contract liabilities are
deferred income & prepayments by customers for goods and services that
have not been delivered and prepayments relating to rental of equipment.
Notes - Group
16. Share capital and treasury shares (continued)
2025 2024
The share
capital
comprise:
Number
of shares
(‘000)
Nominal
value (DKK
million)
Number
of shares
(‘000)
Nominal
value (DKK
million)
A shares 15,000 15.0 15,000 15.0
Share
capital 15,000 15.0 15,000 15.0
All shares have a nominal value of DKK 1. All shares carry same rights and
preferences. The shares carry no restrictions.
Dividends (DKK million)
2025 2024
Dividend prior years 100.0 75.0
Total distribution for the year
100.0 75.0
DKK 100.0 million dividend distributed in 2025 (proposed dividend in the
Annual Report 2024) was DKK 6.67 per share.
DKK 75.0 million dividend distributed in 2024 (proposed dividend in the
Annual Report 2023) was DKK 5.00 per share.
Retained earnings at 31 December 2025 includes proposed dividend of
DKK 75.0 million (DKK 5.00 per share).
16. Share capital and treasury shares
The company owned 1.4 million treasury shares at the beginning of the
financial year 2024. The treasury shares was sold to the parent company,
Echo BidCo A/S at a value of DKK 50.6 million during 2024. The transaction
was made as a non-cash transfer as the value of the shares was used to
partly reduce the loan from Echo BidCo A/S.
Ellab A/S Annual Report 2025
Financial Statements
Page 51
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
17. Financial risk management
Financial risk factors
The Group’s management of financial risks is
centralized to Ellab A/S. The Group identifies,
monitors, assesses and mitigates financial risk
at headquarter in cooperation with the Group’s
business units. The Group is exposed to foreign
exchange risk, liquidity risk and credit risk that
can have a significant impact on the financial
performance of the Group. Significant risks are
continuously assessed by Management and
the Board of Directors. The level of risks are
assessed to be unchanged from previous years.
Foreign exchange risk
The Group’s income statement, financial position
and statement of cash flows are impacted by
fluctuating currency rates as the Group has
international activities denominated in foreign
currencies. Foreign exchange exposure in the
Group consists of two types of risk (I) translation
risk and (II) transaction risk.
Translation risk
Translation risk arises from the translation of
subsidiaries’ income statement and financial
position into DKK. The single most significant
currency is USD. The Group does not hedge with
financial contracts against translation effects
but mitigates part of the risk by establishing
sales entities in countries where the Group
has significant activities and thereby matching
income and local expenses in the same
currency.
Transaction risk
Transaction risk arises from financial instruments
in currencies other than the functional currencies
of the Group’s subsidiaries. The Group is primarily
exposed to changes in USD. Transaction risk is
not hedged with financial contracts as the impact
from transaction risk is considered to be within the
Group’s risk appetite.
Sensitivity:
The sensitivity analysis is based on financial
instruments recognised at 31 December 2025
in the balance sheet and the assumption that all
other variables and exposures remain constant.
The sensitivity analysis does not include impact
from the translation risk.
A 5% increase in the year-end rate in the following
currencies versus DKK would impact the Group’s
profit and equity as follows (a 5% decrease would
have the opposite impact):
Credit risk
Credit risk arises from cash and cash equivalents,
as well as credit exposures to customers,
including outstanding receivables. The Group’s
primary credit exposure is related to trade
receivables (see note 14 for information on
expected credit losses) and cash positions.
The credit risk of the Group is assessed to be
low. Credit risk related to trade receivables is
managed by continuous risk assessment of
major customers. The Group has policies in
relation to maximum credit limits and prepayment
requirements for customers with high credit risk.
Based on forecasts as well as historical data, the
Group expects only insignificant loss allowances
for trade receivables. The Group has no major
exposure relating to one single customer or
business partner.
In relation to the credit risk related to financial
institutions, the Group monitors financial
institutions and places funds in financial
institutions with satisfactory credit ratings.
Liquidity risk
Based on the Group’s financial reserves and credit
facilities, the liquidity risk of the Group is assessed
to be low. Overall, the Group’s external debt
financing is limited.
The financial position of the Group and short-term
forecasts of liquidity reserves is continuously
monitored by Management and the finance
department to ensure that sufficient financial
resources are available.
USD 2025 2024
Impact on profit for the year
Impact on equity
2.6
0.1
3.3
0.2
Ellab A/S Annual Report 2025
Financial Statements
Page 52
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
17. Financial risk management (continued)
31 D e c em be r 2 0 25
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3
Carrying
amount
Recognised at amortised cost
Credit facilities 0.3 9.8 0.0 10.1 9.3 9.3
Lease liabilities 21.8 47.6 24.8 94.2 80.6
Trade payables 24.5 0.0 0.0 24.5 24.5
Group payables 75.8 78.6 0.0 154.4 145.5
Other payables 56.5 0.0 0.0 56.5 56.5
Total financial liabilities 178.9 136.0 24.8 339.7 9.3 316.4
Recognised at amortised cost
Cash 111.8 0.0 0.0 111.8 111.8
Trade receivables 224.9 0.0 0.0 224.9 224.9
Group & other receivables 7.3 1.2 3.2 11.7 11.7
Total financial assets 344.0 1.2 3.2 348.4 348.4
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in
foreign currencies are calculated based on the rates at the balance sheet date.
Trade payables, Group and other payables, trade receivables and other receivables are stated at the net carrying amount at year-end.
** The fair value of the credit facilities is the present value of the expected future instalments and interest payments.
Ellab A/S Annual Report 2025
Financial Statements
Page 53
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
17. Financial risk management (continued)
31 D e c e mb e r 2 0 24
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3***
Carrying
amount
Recognised at amortised cost
Credit facilities 3.0 65.9 0.0 68.9 57.7 57.7
Lease liabilities 22.0 57.1 35.2 114.3 95.7
Trade payables 31.6 0.0 0.0 31.6 31.6
Group payables 53.6 79.2 0.0 132.8 119.0
Other payables 61.0 0.7 0.0 61.7 61.7
Total 171.2 202.9 35.2 409.3 57.7 365.7
Recognised at fair value
Other payables 2.3 0.0 0.0 2.3 2.3 2.3
Total 2.3 0.0 0.0 2.3 2.3 2.3
Total financial liabilities 173.5 202.9 35.2 411.6 57.7 2.3 368.0
Recognised at amortised cost
Cash 112.4 0.0 0.0 112.4 112.4
Trade receivables 244.9 0.0 0.0 244.9 244.9
Group & other receivables 6.0 0.2 3.6 9.8 9.8
Total financial assets 363.3 0.2 3.6 367.1 367.1
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in
foreign currencies are calculated based on the rates at the balance sheet date.
Trade payables, Group and other payables, trade receivables and other receivables are stated at the net carrying amount at year-end.
** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments.
*** Financial liabilities measured at fair value level 3 relate to earn-outs. Calculation of fair value of the earn-outs is based on probability-weighted
financial performance outcomes relevant to the earn-out agreements. Fair value adjustments are recognised in the profit or loss.
Ellab A/S Annual Report 2025
Financial Statements
Page 54
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
18. Capital management
The Group’s objective when managing capital is to safeguard their ability
to continue as a going concern, so that the Company can continue to
provide returns for shareholders and benefits for other stakeholders and
maintain an optimal capital structure.
The Group centrally monitors capital on relevant key figures. The Group
manages its capital structure and makes adjustments in light of changes in
economic conditions. The Group monitors capital on the basis of the net
debt to adjusted EBITDA ratio including the parent companies Echo BidCo
A/S and Echo TopCo A/S. The ratio was in accordance with the financing
agreement reduced from 6.5 to 6.0 during the financial year. The Group’s
strategy during 2025 was to comply with this reduction and subsequently
maintain a net debt to adjusted EBITDA ratio below 6.0 (2024: ratio below
6.5). The Group fulfilled capital management targets during 2025.
Ellab A/S Annual Report 2025
Financial Statements
Page 55
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Contingent liabilities
The Danish Group companies are jointly and
severally liable for tax on the jointly taxed
incomes etc. of the Group. The total amount
of corporation tax payable is disclosed in the
Annual Report of Novo Holdings A/S, which is
the management company of the joint taxation
purposes. Moreover, the Group companies are
jointly and severally liable for Danish withholding
taxes by way of dividend tax, tax on royalty
payments and tax on unearned income. Any
subsequent adjustments of corporation taxes
and withholding taxes may increase the parent
Company’s liability.
The Group is not involved in lawsuits expected to
have a material effect on the financial position of
the Group.
The Group has as part of the acquisition of
PharmaProcess Srl. agreed to defer the payment
of a part of the purchase price. The first part was
settled in November 2025, and the second part
will be paid in November 2026. The payment
is contingent based on the sellers’ continuous
employment with the Group. Consequently, the
payment will be built up over time and an interest
of 2.6 % will be included. The total outstanding
amount which has not yet been recognised at the
balance sheet amounts to DKK 3.7 million.
DKK million 2025 2024
Audit fee to PwC 1.8 1.6
Other assurance
engagements 0.1 0.1
Tax advisory
services 1.1 1.2
Non-audit
services 0.1 0.8
Total
3.1 3.7
The fee for non-audit services provided
to the Group by PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab,
Denmark, amounted to DKK 1.3 million (2024
DKK 2.1 million) and consisted of other
assurance services, and other accounting and
tax advisory services and M&A advisory.
Certain subsidiaries of the Group are not
subject to audit by PricewaterhouseCoopers.
21. Fee to auditors
On 28 November 2024 the Group acquired 100%
of the share capital in PharmaProcess Srl based
in Italy and PharmaProcess GmbH based in
Switzerland (“PharmaProcess”) in a combined
acquisition. During 2025 the final purchase price
allocations for the acquisitions were prepared
including a reduction of the purchase price. This
led to a reduction of the recognised goodwill from
DKK 51.9 million to DKK 50.7 million. The reduced
purchase price was offset in the first (in 2025) of
two deferred payments (refer to note 20).
Charges and security
Shares in the parent company, Ellab Inc., Ellab
GmbH, Ellab UK Ltd., Ellab Benelux B.V. and Ellab
Ireland Ltd. have been pledged as security for
credit institutions of the parent company Echo
BidCo A/S.
20. Commitments and contingent liabilities
Notes - Group
19. Business combinations
DKK million 2025
Contingent consideration 2024 2.3
Payment (1.7)
Fair value adjustments (0.6)
Contingent consideration 2025
0.0
Ellab A/S Annual Report 2025
Financial Statements
Page 56
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
22. Related parties
Ellab Group’s ultimate parent is: Novo Nordisk Foundation. The
ultimate parent for which consolidated financial statements are
prepared is: Novo Nordisk Foundation, Tuborg Havnevej 19, 2900
Hellerup, Denmark. The direct parent of Ellab Group is: Echo BidCo
A/S.
Transactions with key management personnel and the ultimate
parent
Transactions with key management personnel include transactions
with companies controlled by the key management personnel, Novo
Nordisk Foundation.
Transactions between related parties
Acquisition of services (Management fees) from parent company
amounting to DKK 15.0 million (2024 DKK 6.5 million).
In 2024 the direct parent company has granted tax-free contributions
that was settled by way of the parent company forgiving the parent
company’s intercompany receivables of DKK 1,066.0 million from Ellab
Group.
A new EUR loan from the parent company was established in 2024
to finance the acquisition of PharmaProcess. 31 December 2025, the
loan is DKK 73.0 million (2024 DKK 69.1 million).
Unpaid dividend to parent amounts to DKK 61.6 million (2024 DKK
49.9 million) and is included in Payables to parent companies under
current liabilities. The remaing balance is related to management
services.
Other than these transactions, there has been no transactions with
key management personnel or their close relatives.
DKK million 2025 2024
Financial income (17.9) (36.7)
Financial expenses
37.6 133.8
Depreciation, amortisation and impairment
losses, including losses and gains on sales 179.9 166.5
Income tax expense 2.4 (4.4)
Other adjustments (0.1) 0.6
201.9 259.8
24. Cash flow statement - changes in net working capital
Change in inventories (7.4) 13.1
Change in trade and Group receivables 8.6 (24.0)
Change in contract assets and liabilities 4.0 (2.9)
Change in receivables and prepayments (2.6) (1.0)
Change in trade and Group payables 3.7 (6.6)
Change in other payables (4.6) 3.2
1.7 (18.2)
23. Cash flow statement - adjustments
Ellab A/S Annual Report 2025
Financial Statements
Page 57
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
25. Changes in liabilities arising from financing activities
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the periods presented.
DKK million
1 January
2025
Financing
cash flows Additions Disposal FX changes
Other
changes*
31 December
2025
Credit facilities 57.7 (48.4) 0.0 0.0 0.0 0.0 9.3
Loan parent companies 69.1 0.0 0.0 0.0 0.1 3.8 73.0
Lease liabilities 95.7 (21.3) 9.2 (1.5) (1.5) 0.0 80.6
Total liabilities from financing
activities 222.5 (69.7) 9.2 (1.5) (1.4) 3.8 162.9
DKK million
1 January
2024
Financing
cash flows Additions Disposal FX changes
Other
changes**
31 December
2024
Credit facilities 53.5 4.2 0.0 0.0 0.0 0.0 5 7.7
Loan parent companies 1,025.0 68.7 0.0 0.0 24.4 (1,049.0) 69.1
Lease liabilities 67.3 (20.5) 51.4 (3.1) 0.6 0.0 95.7
Total liabilities from financing
activities 1,145.8 52.4 51.4 (3.1) 25.0 (1,049.0) 222.5
*The 2025 ‘Other’ column includes the effect of accrued but not paid interest on interest-bearing loans.
**The 2024 ‘Other’ column for ‘Loan parent companies’ includes the impact from the merger plan (Ellab A/S, Kelvin BidCo A/S and Kelvin HoldCo A/S)
where the loans from the parent company were forgiven via a tax-free contribution of DKK 1,066 million. The ‘Other’ column also includes the effect of
accrued but not paid interest on interest-bearing loans.
Ellab A/S Annual Report 2025
Financial Statements
Page 58
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Income Statement .................................. 22
Financial Position ........................................23
Cash Flow Statement ............................ 24
Changes in Equity ...................................... 25
Notes - Group .................................................27
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes - Group
26. List of group companies
Type
Place of
incorporation
Ownership
interest
Ellab Inc. Subsidiary USA 100%
Ellab (UK) Ltd. Subsidiary UK 100%
Ellab Monitoring Solutions Ltd. Subsidiary UK 100%
Complete Technical Solutions (CQV) Ltd. Subsidiary UK 100%
Ellab GmbH Subsidiary Germany 100%
Ellab SARL Subsidiary France 100%
Ellab Philippines Corp. Subsidiary Philippines 99.97%
Ellab Benelux B.V. Subsidiary Netherlands 100%
Ellab FZCO Subsidiary Dubai 100%
Ellab Italy Srl Subsidiary Italy 100%
PharmaProcess Srl Subsidiary Italy 100%
Ellab Ireland Ltd. Subsidiary Ireland 100%
Autocal Ireland Ltd. Subsidiary Ireland 100%
Ellab AG Subsidiary Switzerland 100%
PharmaProcess GmbH Subsidiary Switzerland 100%
Ellab Austria Subsidiary Austria 100%
Ellab Solutions Spain
Ellab Singapore PTE. Ltd.
Subsidiary
Subsidiary
Spain
Singapore
100%
100%
27. Events after the balance sheet date
No events materially affecting the
assessment of the Annual Report have
occurred after the balance sheet date.
Ellab A/S Annual Report 2025
Financial Statements
Parent Company
Page 59
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Ellab A/S Annual Report 2025
Parent Company
ELLAB A/S ANNUAL REPORT 2023
Parent Company
Page 60
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Income Statement
1 January - 31 December
DKK million Note 2025 2024
Revenue 2 378.6 336.9
Cost of production 3, 4 (129.9) (133.8)
Gross profit 248.7 203.1
Distribution costs 3, 4 (134.7) (125.5)
Development costs 3, 4 (29.3) (23.0)
Administration costs 3, 4 (69.7) (65.1)
Other income 27.7 52.1
Operating profit before special items 42.7 41.6
Special items 5 (32.2) (19.0)
Operating profit 10.5 22.6
Result of investments in
subsidiaries, net of tax
31.5 39.9
Financial income 6 23.4 58.1
Financial expenses 6 (45.7) (153.0)
Profit before tax 19.7 (32.4)
Income taxes 7 8.4 15.7
Net profit for the year 28.1 (16.7)
Statement of Comprehensive Income
1 January - 31 December
DKK million Note 2025 2024
Net profit for the year
28.1 (16.7)
Other comprehensive income
Items that will be recycled subsequently to
the Consolidated Income Statement:
Foreign exchange adjustments on net
investments in foreign operations (10.0) 6.6
Other comprehensive income for
the year, net of tax (10.0) 6.6
Total comprehensive income for
the year 18.1 (10.1)
Ellab A/S Annual Report 2025
Parent Company
Income Statement
Page 61
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Statement of financial position at 31 December
Assets
DKK million Note 2025 2024
Intangible assets 8 2,228.1 2,201.7
Property, plant and equipment 9 26.1 29.6
Right-of-use assets 12 37.0 45.1
Other receivables 4.1 3.6
Investments in subsidiaries 10 638.4 639.9
Receivables from group companies 10.6 68.2
Total non-current assets
2,944.3 2,988.1
Inventories 13 56.9 54.8
Trade receivables 14 33.7 28.1
Contract assets 0.4 0.9
Receivables from group companies 129.5 141.8
Tax receivables 0.0 8.2
Other receivables 1.5 0.6
Prepayments 5.2 5.6
Cash and cash equivalents 2.8 13.7
Total current assets
230.0 253.7
Total assets
3,174.3 3,241.8
DKK million Note 2025 2024
Share capital 15 15.0 15.0
Reserve for net revaluation under
the equity method 84.1 105.8
Reserve for development projects
52.3 39.0
Retained earnings
2,384.7 2,458.2
Total equity
2,536.1 2,618.0
Credit facilities 16 9.3 57.7
Lease liabilities 12 37.1 43.8
Deferred tax liabilities 11 185.1 187.5
Payables to group companies 16 179.3 69.1
Total non-current liabilities
410.8 358.1
Trade payables 14.8 10.4
Lease liabilities 12 4.3 4.1
Payables to group companies 16 181.8 227.0
Income tax payables 1.9 0.0
Other payables 20.8 20.4
Contract liabilities 3.8 3.8
Total current liabilities
227.4 265.7
Total liabilities 638.2 623.8
Total equity and liabilities 3,174.3 3,241.8
Equity and Liabilities
Ellab A/S Annual Report 2025
Parent Company
Balance Sheet
Page 62
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Cash Flow Statement
1 January - 31 December
DKK million Note 2025 2024
Net cash flow for the year (10.9) (13.0)
Cash and cash equivalents,
beginning of the year 13.7 26.7
Net cash flow for the year (10.9) (13.0)
Cash and cash equivalents
at end of the year 2.8 13.7
Cash and cash equivalents
comprise the following:
Cash at bank and in hand 2.8 13.7
DKK million Note 2025 2024
Net profit for the year 28.1 (16.7)
Adjustments 20 116.0 158.7
Changes in net working capital 21 21.2 (15.7)
Financial income received 5.7 4.4
Financial expenses paid (5.3) (5.6)
Income taxes received/paid 16.1 (0.6)
Cash flow operating activities 181.8 124.5
Purchase of intangible assets 8 (44.3) (25.1)
Purchase of property, plant and
equipment 9 (3.2) (13.2)
Payment for acquisition of
subsidiaries 0.0 (71.5)
Loans to related parties &
repayment (4.5) 8.0
Cash flow investing activities (52.0) (101.8)
Lease payments (4.0) (4.3)
Credit facilities (48.4) 4.2
Loan parent company 0.0 68.7
Dividend paid (88.3) (104.3)
Cash flow financing activities
(140.7) (35.7)
Ellab A/S Annual Report 2025
Parent Company
Page 63
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Statement of Changes in Equity
DKK million Note Share capital
Reserve for
net revaluation
under the
equity method
Reserve for
development
projects
Retained
earnings Total
Equity at 1 January 2025 15 15.0 105.8 39.0 2,458.2 2,618.0
Profit for the year 0.0 (11.7) 0.0 39.8 28.1
Development costs for the year 0.0 0.0 26.9 (26.9) 0.0
Amortisation for the year 0.0 0.0 (13.6) 13.6 0.0
Other comprehensive income 0.0 (10.0) 0.0 0.0 (10.0)
Total comprehensive income for the year
0.0 (21.7) 13.3 26.5 18.1
Dividends 0.0 0.0 0.0 (100.0) (100.0)
Transactions with owners
0.0 0.0 0.0 (100.0) (100.0)
Equity at 31 December 2025
15.0 84.1 52.3 2,384.7 2,536.1
Proposed dividend for the year
75.0
Transferred from retained earnings
(46.9)
Distribution of net profit
28.1
Ellab A/S Annual Report 2025
Parent Company
Page 64
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Statement of Changes in Equity
DKK million Note Share capital
Reserve for
net revaluation
under the
equity method
Reserve for
development
projects
Retained
earnings Total
Equity at 1 January 2024 15 15.0 59.3 28.5 1,483.7 1,586.5
Profit for the year 0.0 39.9 0.0 (56.6) (16.7)
Development costs for the year 0.0 0.0 19.6 (19.6) 0.0
Amortisation for the year 0.0 0.0 (9.1) 9.1 0.0
Other comprehensive income 0.0 6.6 0.0 0.0 6.6
Total comprehensive income for the year
0.0 46.5 10.5 (67.1) (10.1)
Capital contribution 0.0 0.0 0.0 1,066.0 1,066.0
Dividends 0.0 0.0 0.0 (75.0) (75.0)
Disposal of treasury shares 0.0 0.0 0.0 50.6 50.6
Transactions with owners
0.0 0.0 0.0 1,041.6 1,041.6
Equity at 31 December 2024
15.0 105.8 39.0 2,458.2 2,618.0
Proposed dividend for the year
100.0
Transferred from retained earnings
(116.7)
Distribution of net profit
(16.7)
Ellab A/S Annual Report 2025
Parent Company
Changes in Equity
Page 65
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents Notes
1. Accounting policies
2. Revenue from contracts with customers
3. Employee costs
4. Amortisation and depreciation
5. Special items
6. Financial income and expenses
7. Income taxes
8. Intangible assets
9. Property, plant and equipment
10. Investment in subsidiaries
11. Deferred tax liabilities
12. Leases
13. Inventories
14. Trade receivables
15. Share capital
16. Financial risk management
17. Capital management
18. Commitments and contingent liabilities
19. Changes in liabilities arising from financing activities
20. Cash flow statement - adjustments
21. Cash flow statement - changes in net working capital
22. Related parties
23. Events after the balance sheet date
Ellab A/S Annual Report 2025
Parent Company
Page 66
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
1. Accounting policies
The financial statements of the parent
have been prepared in accordance with
IFRS accounting standards as adopted
by the EU as well as additional Danish
disclosure requirements applying to
entities of reporting class large C. The
Parent Company Financial Statements are
presented in million Danish kroner (mDKK),
which is also considered the functional
currency of the company’s activities.
The accounting policies are the same as
for the consolidated financial statements
with the below exceptions. For a detailed
specification of the parent company’s
accounting policies note stated in
this section, please see note 1 of the
consolidated financial statements and other
selected Group notes where the accounting
policies are presented together with the
specific notes.
Material accounting policies
The parent company’s accounting policies
are described in relation to the individual
notes (refer to Group). Management
regards the following as the most
material accounting policy information
for the recognition and measurement of
reported amounts as well as relevant to
an understanding of the Parent Financial
Statements:
- Revenue from contracts with customers
- Intangible assets
- Investment in subsidiaries
Other income
Other income includes royalty from subsidiaries.
Investments in subsidiaries
Investments in subsidiaries are recognised and
measured using the equity method.
Under the equity method, the investments in
subsidiaries are initially recognised at cost. The
carrying amount of the investment is adjusted
to recognise changes in the parent company’s
share of net assets of the subsidiary since
the acquisition date. Goodwill relating to the
subsidiary is included in the carrying amount of
the investment.
The statement of profit or loss reflects the
parent company’s share of the results of
operations of the subsidiary. Any change in other
comprehensive income (OCI) of the subsidiaries
is presented as part of the parent company’s
OCI. In addition, when there has been a change
recognised directly in the equity of the subsidiary,
the parent company recognises its share of any
changes in the statement of changes in equity.
Unrealised gains and losses resulting from
transactions between the parent company and
the subsidiaries are eliminated to the extent of the
interest in the subsidiary.
The aggregate of the parent company’s share of profit
or loss of an subsidiary is shown on the face of the
statement of profit or loss outside operating profit and
represents profit or loss after tax and non-controlling
interests of the subsidiary.
An impairment test of an investment is conducted if
an event or a change in conditions indicate that the
carrying value of the investment is not recoverable.
The measurements of the investments require
estimates based on various factors, such as the
expectations to future cash flows. If the parent
company has a legal or constructive obligation to
cover a negative net asset value of a subsidiary, this
obligation is recognised by means of a provision.
Critical accounting estimates and judgements
For a description of critical accounting estimates and
judgements, please see note 2 of the consolidated
financial statements.
Ellab A/S Annual Report 2025
Parent Company
Page 67
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
3. Employee costs
DKK million 2025 2024
Wages and salaries 117.6 113.9
Defined contribution plans 10.9 9.4
Other social security costs 1.6 1.3
Total employee costs for the year 130.1 124.6
Employee costs in intangible assets (26.4) (24.8)
Change in costs included in inventories (0.7) (2.3)
Total income statement
103.0 97.5
Wages and salaries, pensions and other social security costs
are recognised in the following items:
Cost of production 49.3 45.9
Distribution costs 8.9 16.5
Development costs 16.3 7.3
Administrative costs 24.6 24.0
Special items 3.9 3.8
Total income statement 103.0 97.5
Average number of employees 211 206
Key Management Compensation
Key Management consists of Executive Management and the Board of
Directors. Refer to the Group note 4 ‘Employee costs’ for information on
the total compensation paid or payable for employee services.
Notes
2. Revenue from contracts with customers
DKK million 2025 2024
Revenue from the following business lines:
Validation Solutions 309.6 276.7
Monitoring Solutions 33.5 21.1
Calibration Solutions
35.5 39.1
Total revenue 378.6 336.9
Revenue per geography:
United States 92.9 78.8
Europe 209.6 179.5
Rest of world
76.1 78.6
Total revenue 378.6 336.9
Revenue is recognised as follows:
At a point in time 324.0 277.2
Over time 54.6 59.7
Total revenue 378.6 336.9
Ellab A/S Annual Report 2025
Parent Company
Page 68
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
5. Special items
DKK million 2025 2024
Acquisition related costs 12.3 1.5
Strategic business transformation and
implementation 4.4 10.9
Strategic restructuring and
organisational changes 15.5 6.6
Total 32.2 19.0
Specified by line item in the income statement are: ‘Cost of production’ DKK
0.0 million (2024 DKK 0.4 million), ‘Distribution costs’ DKK 16.6 million (2024
DKK 6.0 million) and ‘Administration costs’ DKK 15.6 million (2024 DKK 12.6
million).
Notes
4. Amortisation and depreciation
DKK million 2025 2024
Intangible assets 121.6 107.5
Property, plant and equipment 6.7 6.2
Right-of-use assets 5.3 5.7
Total 133.6 119.4
Amortisation and depreciation are recognised in the following items:
Cost of production 3.6 3.5
Distribution costs 101.9 95.9
Development costs 17.6 11.7
Administrative costs 10.5 8.3
Total 133.6 119.4
Ellab A/S Annual Report 2025
Parent Company
Page 69
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
6. Financial income and expenses
DKK million 2025 2024
Financial income
Exchange rate gains 14.9 47.9
Interest income from group companies 7.7 9.4
Other financial income 0.8 0.8
Total financial income 23.4 58.1
Financial expenses
Foreign exchange rate losses 24.4 69.3
Interest expense to group companies 16.2 78.1
Interest expense on lease liabilities 2.5 2.7
Other financial expenses 2.6 2.9
Total financial expenses 45.7 153.0
Effective interest expenses on financial liabilities measured at amortised
cost amounted to DKK 20.1 million (2024 DKK 83.0 million).
7. Income taxes
DKK million 2025 2024
Current tax:
Current tax on profits for the year
Current tax on profits for previous years
Deferred tax on profit for the year
1.9
(7.9)
(2.4)
(7.8)
0.1
(8.0)
Total (8.4) (15.7)
Tax calculated at 22% of profit before tax 4.3 (7.1)
Tax according to income statement (8.4) (15.7)
Variance (12.7) (8.6)
Tax effects of:
Non-deductible expenses 2.2 0.2
Tax relating to previous years (7.9) 0.1
Non-taxable income/loss from
investments in subsidiaries (6.9) (8.8)
Additional deductions for specific
expenses (0.1) (0.1)
Total (12.7) (8.6)
Effective tax rate (42.6)% 48.5%
Ellab A/S Annual Report 2025
Parent Company
Page 70
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
8. Intangible assets
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 January 2025 1,337.5 2.9 85.9 772.9 325.2 65.4 23.0 2,612.8
Additions during the year 71.8 9.8 0.0 31.9 0.0 0.0 34.5 148.0
Transfers for the year 0.0 0.0 0.0 0.0 0.0 23.6 (23.6) 0.0
At 31 December 2025 1,409.3 12.7 85.9 804.8 325.2 89.0 33.9 2,760.8
Accumulated amortisation:
At 1 January 2025 0.0 2.0 22.9 248.4 99.6 38.4 0.0 411.1
Amortisation for the year 0.0 2.6 4.6 67.2 29.8 17.4 0.0 121.6
At 31 December 2025 0.0 4.6 27.5 315.6 129.2 55.8 0.0 532.7
Carrying amount
31 December 2025 1,409.3 8.1 58.4 489.2 196.0 33.2 33.9 2,228.1
For the annual impairment test of the recognised ‘Goodwill’ and ‘Development projects in progress’ in the parent company, please refer to Group note 10. The
assumptions used and the calculated recoverable amount can also be applied for the parent company, as there is no significant financial metrics that would
impact the calculations. The conclusion from the Group of no impairment needs is also valid for the parent company. Development projects in progress and
completed development projects relates to development of the Group’s products.
Amortisations for completed development projects are in the income statement recognised as ‘Development costs’ and remaining intangible assets as
‘Distribution costs’. Research and development costs expensed during the year amount to DKK 11.7 million (2024 DKK 11.3 million) excluding amortisation.
Ellab A/S Annual Report 2025
Parent Company
Page 71
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
8. Intangible assets (continued)
DKK million Goodwill
Other
intangible
assets Brand
Customers &
distributors Technology
Completed
development
projects
Development
projects in
progress Total
Cost:
At 1 January 2024 1,310.0 2.9 85.9 759.3 325.2 28.7 34.6 2,546.6
Additions during the year 27.5 0.0 0.0 13.6 0.0 0.0 25.1 66.2
Transfers for the year 0.0 0.0 0.0 0.0 0.0 36.7 (36.7) 0.0
At 31 December 2024 1,337.5 2.9 85.9 772.9 325.2 65.4 23.0 2,612.8
Accumulated amortisation:
At 1 January 2024 0.0 1.4 18.3 187.6 69.6 26.7 0.0 303.6
Amortisation for the year 0.0 0.6 4.6 60.8 29.8 11.7 0.0 107.5
At 31 December 2024 0.0 2.0 22.9 248.4 99.4 38.4 0.0 411.1
Carrying amount
31 December 2024 1,337.5 0.9 63.0 524.5 225.8 27.0 23.0 2,201.7
Ellab A/S Annual Report 2025
Parent Company
Page 72
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
9. Property, plant and equipment
DKK million
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 January 2025 18.9 25.3 15.4 59.6
Additions 0.2 2.5 0.5 3.2
At 31 December 2025 19.1 27.8 15.9 62.8
Accumulated depreciation:
At 1 January 2025
7.7 17.5 4.8 30.0
Depreciation
1.7 3.2 1.8 6.7
At 31 December 2025 9.4 20.7 6.6 36.7
Carrying amount 31 December 2025 9.7 7.1 9.3 26.1
Ellab A/S Annual Report 2025
Parent Company
Page 73
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
9. Property, plant and equipment (continued)
DKK million
Plant and
machinery
Other
fixtures and
equipment
Leasehold
improvements Total
Cost:
At 1 January 2024 15.4 20.5 10.5 46.4
Additions 3.5 4.8 4.9 13.2
At 31 December 2024 18.9 25.3 15.4 59.6
Accumulated depreciation:
At 1 January 2024
5.9 14.7 3.2 23.8
Depreciation
1.8 2.8 1.6 6.2
At 31 December 2024 7.7 17.5 4.8 30.0
Carrying amount 31 December 2024 11.2 7.8 10.6 29.6
Refer to Group note 11 on accounting policies.
Ellab A/S Annual Report 2025
Parent Company
Page 74
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
10. Investment in subsidiaries
DKK million 2025 2024
Cost:
At 1 January
534.1 462.6
Additions during the year
20.2 71.5
At 31 December
554.3 534.1
Accumulated value adjustments:
At 1 January
105.8 59.3
Exchange adjustment
(10.0) 6.6
Dividend
(43.2) 0.0
Result of investments in subsidiaries, net of tax
31.5 39.9
At 31 December
84.1 105.8
Carrying amount at 31 December
638.4 639.9
Reference is made to Group note 26 for an overview of subsidiaries.
Ellab A/S Annual Report 2025
Parent Company
Page 75
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
11. Deferred tax liabilities
DKK million 2025 2024
Deferred tax at 1 January
187.5 195.5
Deferred tax recognised in the income statement
(2.4) (8.0)
Deferred tax liabilities
185.1 187.5
Deferred tax relates to:
Intangible assets
186.6 187.1
Property, plant and equipment
(2.1) (0.6)
Leases
(1.0) (0.8)
Inventories
0.8 1.1
Trade receivables
0.8 1.1
Other
0.0 (0.4)
Deferred tax liabilities
185.1 187.5
Ellab A/S Annual Report 2025
Parent Company
Page 76
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
12. Leases
The Group has recognised the following amounts relating to leases:
DKK million 2025 2024
Right-of-use assets
Properties 36.7 44.9
Cars and other leases 0.3 0.2
Total
37.0 45.1
Lease liabilities
Non-current 37.1 43.8
Current 4.3 4.1
Total
41.4 47.9
Additions to the right-of-use assets during the financial year ending 31
December 2025 were DKK 0.2 million (2024 DKK 29.1 million).
The income statement shows the following amounts relating to leases:
DKK million 2025 2024
Depreciation, properties 5.2 5.4
Depreciation, cars and other leases 0.1 0.3
Interest expense on lease liabilities 2.5 2.7
Total income statement
7.8 8.4
The total cash outflow for leases in 2025 was DKK 6.5 million
(2024 DKK 7.0 million). For maturity analysis refer to note 16.
Ellab A/S leases various properties, equipment and cars. Rental contracts are typically made for fixed periods of 3 to 10 years but may have extension
options. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose
any covenants, but leased assets may not be used as security for borrowing purposes.
Extension options or periods after termination options are included in the lease term if the lease is reasonably certain to be extended or not terminated based
on the Group’s strategy and other relevant factors such as significant leasehold improvements.
Ellab A/S Annual Report 2025
Parent Company
Page 77
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
13. Inventories
DKK million 2025 2024
Raw materials and consumables 20.9 20.4
Finished goods and goods for resale 36.0 34.4
56.9 54.8
The following are included in ‘Costs of production’:
Inventories recognised as an expense
82.5 78.9
DKK million 2025 2024
Trade receivables (gross) 35.1 29.5
Provision for bad debt (1.4) (1.4)
Trade receivables net
33.7 28.1
Movement on the provision for bad debt are as follows:
Opening balances (1.4) (1.4)
Additions 0.0 0.0
Reversals 0.0 0.0
Provision for bad debt
(1.4) (1.4)
14. Trade receivables
DKK million Receivable Loss rate % 2025 Provision
Impairment of trade receivables can be specified as follows:
Current 25.1 0.0% 0.0
Overdue < 30 days 0.1 0.0% 0.0
Overdue 31 - 60 days 2.1 0.0% 0.0
Overdue 61 - 90 days 0.0 0.0% 0.0
Overdue > 91 days 7.8 18.0% 1.4
Total
35.1 1.4
14. Trade receivables (continued)
DKK million Receivable Loss rate % 2024 Provision
Impairment of trade receivables can be specified as follows:
Current 18.3 0.0% 0.0
Overdue < 30 days 4.4 0.0% 0.0
Overdue 31 - 60 days 1.6 0.0% 0.0
Overdue 61 - 90 days 0.0 0.0% 0.0
Overdue > 91 days 5.2 27.0% 1.4
Total
29.5 1.4
Ellab A/S Annual Report 2025
Parent Company
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Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Credit risk
The company has significant intercompany receivables related to ordinary
business activities. The company has not historically experienced loss
on subsidiaries and does not expect loss in the future. The credit loss is
therefore estimated to DKK 0.0 (2024 DKK 0.0).
Interest rate risk
The company’s interest-bearing assets / liabilities consist of cash and
cash equivalents, credit facilities and loans from parent companies (non-
current) and are all at floating rates.
An increase in relevant interest rates of 1%-point would have decreased
net profit by DKK 2.1 million (2024 DKK 1.7 million).
16. Financial risk management (continued)
Notes
15. Share capital
For information on share capital, refer to note 16 for the Group.
16. Financial risk management
For a description of the parent’s Financial Risk Management, please see note
17 for the Group. In addition to the Financial Risk Management of the Group,
Ellab A/S is exposed to the following risks.
Foreign currency risk
The company’s foreign currency risks arise from the sales of equipment
to subsidiaries as the sales are denominated in the functional currency of
the respective subsidiary. The company’s main exchange rate exposure is
primarily related to USD and EUR. Due to the Danish fixed exchange rate
policy against EUR, exchange rates EUR against DKK is not considered an
exposure. The company does not hedge with financial contracts against
translation effects.
Sensitivity:
For transaction risk the company is primarily exposed to changes in USD. The
sensitivity of profit or loss to changes in the exchange rates arises mainly
from USD denominated financial instruments. A 5% increase in the year-end
rate in the following currencies versus DKK would impact the company’s profit
and equity as follows (a 5% decrease would have the opposite impact):
USD 2025 2024
Impact on profit for the year 2.6 3.3
Impact on equity 0.1 0.2
Ellab A/S Annual Report 2025
Parent Company
Page 79
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
16. Financial risk management (continued)
31 December 2025
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3
Carrying
amount
Recognised at amortised
cost
Credit facilities 0.3 9.8 0.0 10.1 9.3 9.3
Lease liabilities 5.8 24.4 21.1 51.3 41.4
Trade payables 14.8 0.0 0.0 14.8 14.8
Group payables 193.6 192.2 0.0 385.8 361.1
Other payables 20.8 0.0 0.0 20.8 20.8
Total financial liabilities 235.3 226.4 21.1 482.8 9.3 447.4
Cash and cash
equivalents
2.8 0.0 0.0 2.8 2.8
Trade receivables 33.7 0.0 0.0 33.7 33.7
Contract assets 0.4 0.0 0.0 0.4 0.4
Group & other receivables 132.0 12.7 3.2 147.9 145.7
Total financial assets 168.9 12.7 3.2 184.8 182.6
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in
foreign currencies are calculated based on the rates at the balance sheet date.
Trade payables, Group and other payables, trade receivables and other receivables are stated at the net carrying amount at year-end.
** The fair value of the credit facilities is the present value of the expected future instalments and interest payments.
Ellab A/S Annual Report 2025
Parent Company
Page 80
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
16. Financial risk management (continued)
31 December 2024
DKK million 0-1 year 1-5 years After 5 years Total*
Fair value
level 2**
Fair value
level 3
Carrying
amount
Recognised at amortised
cost
Credit facilities 3.0 65.9 0.0 68.9 57.7 57.7
Lease liabilities 6.1 26.5 28.7 61.3 47.9
Trade payables 10.4 0.0 0.0 10.4 10.4
Group payables 241.1 79.2 0.0 320.3 296.1
Other payables 19.7 0.7 0.0 20.4 20.4
Total financial liabilities 280.3 172.3 28.7 481.3 57.7 432.5
Cash and cash
equivalents
13.7 0.0 0.0 13.7 13.7
Trade receivables 28.1 0.0 0.0 28.1 28.1
Contract assets 0.9 0.0 0.0 0.9 0.9
Group & other receivables 147.3 81.3 0.0 228.6 210.6
Total financial assets 190.0 81.3 0.0 271.3 253.3
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in
foreign currencies are calculated based on the rates at the balance sheet date.
Trade payables, Group and other payables, trade receivables and other receivables are stated at the net carrying amount at year-end.
** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments.
Ellab A/S Annual Report 2025
Parent Company
Page 81
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
17. Capital management
For disclosure on capital management, reference is made to note 18 for the
Group.
18. Commitments and contingent liabilities
Charges and security
The company’s shares and shares in Ellab Inc., Ellab GmbH, Ellab UK Ltd.,
Ellab Ireland Ltd. and Ellab Benelux B.V. have been pledged as security for
credit institutions of the parent company Echo BidCo A/S.
The company has acceded to the lease agreement as guarantor for its
wholly owned subsidiary, Ellab Ireland Ltd. The related lease liability is
recognised in the Group’s consolidated financial statements as per 31
December 2025 and amounts to DKK 7.7 million (2024 DKK 8.4 million). No
amounts are recognised in the parent company’s balance sheet.
Contingent liabilities
The Danish Group companies are jointly and severally liable for tax on
the jointly taxed incomes etc. of the Danish Group. The total amount of
corporation tax payable is disclosed in the Annual Report of Novo Holdings
A/S, which is the management company of the joint taxation purposes.
Moreover, the Group companies are jointly and severally liable for Danish
withholding taxes by way of dividend tax, tax on royalty payments and tax
on unearned income. Any subsequent adjustments of corporation taxes
and withholding taxes may increase the company’s liability.
The company is not involved in any lawsuits which are expected to have a
material effect on the Financial position of the company.
Ellab A/S Annual Report 2025
Parent Company
Page 82
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
19. Changes in liabilities arising from financing activities
This section sets out an analysis of liabilities arising from financing activities and the movements in each of the periods presented.
DKK million
1 January
2025
Financing
cash flows Additions FX changes
Other
changes*
31 December
2025
Credit facilities 57.7 (48.4) 0.0 0.0 0.0 9.3
Loan parent company 69.1 0.0 0.0 0.1 3.8 73.0
Lease liabilities 47.9 (4.0) 0.2 0.0 (2.7) 41.4
Total liabilities from financing activities
174.7 (52.4) 0.2 0.1 1.1 123.7
DKK million
1 January
2024
Financing
cash flows Additions FX changes
Other
changes*
31 December
2024
Credit facilities 53.5 4.2 0.0 0.0 0.0 57.7
Loan parent company 1,025.0 68.7 0.0 24.4 (1,049.0) 69.1
Lease liabilities 24.2 (4.3) 29.1 0.0 (1.1) 4 7.9
Total liabilities from financing activities
1,102.7 68.6 29.1 24.4 (1,050.1) 174.7
*The 2025 ‘Other’ column includes the effect of accrued but not paid interest on interest-bearing loans, and terminations and indexations in lease liabilities.
**The 2024 ‘Other’ column for ‘Loan parent company’ includes the impact from the merger plan (Ellab A/S, Kelvin BidCo A/S and Kelvin HoldCo A/S) where
the loans from the parent company were forgiven via a tax-free contribution of DKK 1,066 million. The ‘Other’ column also includes the effect of accrued but
not paid interest on interest-bearing loans, and terminations and indexations in lease liabilities.
Ellab A/S Annual Report 2025
Parent Company
Page 83
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
20. Cash flow statement - adjustments
DKK million 2025 2024
Financial income (23.4) (58.1)
Financial expenses
45.7 153.0
Depreciation, amortisation and impairment
losses, including losses and gains on sales 133.6 119.4
Income tax expense
(8.4) (15.7)
Income from subsidiaries
(31.5) (39.9)
116.0 158.7
21. Cash flow statement - changes in net working capital
Change in inventories
(2.1) 2.8
Change in trade and Group receivables
(0.8) (15.7)
Change in contract assets and liabilities
0.5 2.6
Change in receivables and prepayments
(1.0) (2.6)
Change in trade and Group payables
23.0 (6.8)
Change in other payables
1.6 4.0
21.2 (15.7)
Ellab A/S Annual Report 2025
Parent Company
Page 84
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Income Statement .................................. 60
Financial Position ........................................61
Cash Flow Statement ............................ 62
Changes in Equity ...................................... 63
Notes - Parent company ................65
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Contents
Notes
22. Related parties
For related parties disclosure, reference is made to note 22 for the
Group. Details for transactions between Ellab A/S and subsidiaries are
provided in the following.
Significant transactions between Ellab A/S, subsidiaries and parent
During the year, in the course of ordinary business activities,
subsidiaries purchased goods and services from Ellab A/S, and Ellab
A/S purchased goods and services from subsidiaries and parent.
Receivables and payables from Group companies relates to these
transactions. The outstanding amounts are expected to be settled in
cash.
Loans to Group parties have mainly been used by subsidiaries for
acquisitions and are payable in September 2028 or upon 5 business
days written notice.
Loans from related parties mainly relates to transfer of intellectual
property rights from subsidiaries to Ellab A/S and loan from the parent
company is related to financing of acquisitions. Loans are either
payable in September 2028 or upon 5 business days written notice.
The proposed ordinary dividend for the financial year amounts to DKK
75.0 million (2024 DKK 100.0 million).
Total distributed dividend from prior periods of DKK 61.6 million (2024
DKK 49.9 million) to the parent company is unpaid at the balance
sheet date.
The table below shows the transactions between Ellab A/S and
subsidiaries as well as the outstanding amounts at the balance sheet
date.
DKK million 2025 2024
Revenue 228.2 194.9
Purchased goods
(9.5) (36.1)
Admin. and special items
(15.0) (6.5)
Financial items, net
(8.5) (68.7)
Receivables from Group companies
122.3 137.2
Loans to Group companies
17.8 72.8
Payables from Group companies
(23.1) (8.9)
Loans from Group companies
(276.4) (237.2)
Declared unpaid dividend
(61.6) (49.9)
23. Events after the balance sheet date
No events materially affecting the assessment of the Annual Report
have occurred after the balance sheet date.
Ellab A/S Annual Report 2025
Parent Company
Management’s
Statement and
Auditor’s Report
Page 85
Contents
Ellab A/S Annual Report 2025
Management’s Statement and Auditor’s Report
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Management’s Statement ...................... 86
Independent Auditors Report .......... 87
ELLAB A/S ANNUAL REPORT 2023
Management’s Statement and Auditor’s Report
Page 86
Contents Management’s Statement
Executive Management
Board of Directors
Ellab A/S Annual Report 2025
Management’s Statement and Auditor’s Report
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Management’s Statement ...................... 86
Independent Auditors Report .......... 87
Page 87
Contents
Ellab A/S Annual Report 2025
Management’s Statement and Auditor’s Report
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Management’s Statement ...................... 86
Independent Auditors Report .......... 87
Page 88
Contents
Independent Auditors Report
To the Shareholder of Ellab A/S
Ellab A/S Annual Report 2025
Management’s Statement and Auditor’s Report
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Management’s Statement ...................... 86
Independent Auditors Report .......... 87
Page 89
Contents Independent Auditors Report
To the Shareholders of Ellab A/S
mne18651
CVR No 33 77 12 31
mne46624
Ellab A/S Annual Report 2025
Management’s Statement and Auditor’s Report
Contents
Overview ..................................................................................................... 3
Financial Performance .......................................................... 17
Financial Statements ............................................................... 22
Parent Company ............................................................................. 59
Management’s Statement and Auditor’s
Report ..............................................................................................................85
Management’s Statement ...................... 86
Independent Auditors Report .......... 87