Financial Highlights
Annual Report 2024
Annual Report 2024
Financial Highlights
Annual Report 2024
Dannevirkevej 6, 7000 Fredericia,
Reg. no. 26 08 85 77
Annual Report
January 1st – December 31st, 2024
Presented and adopted at the Annual General Meeting on 3
rd
of April 2025.
Chairman of the Annual General Meeting:
Bo Holse
2
Financial Highlights
Annual Report 2024
Table of Content
Management’s Statement of the Annual Report
4
Independent Auditor’s Report
5
Consolidated Financial Highlights
7
Company Information
8
Management Review
10
Consolidated Financial Statements
17
Notes to the Consolidated Financial Statements
21
Parent Financial Statements
36
Notes to the Parent Financial Statements
39
3
Table of Content
Financial Highlights
Annual Report 2024
Management’s Statement of the Annual Report
Executive Board
Lars V. Drescher Morten Beider
CEO CFO
Board of Directors
Torben Svejgård Carsten Lind Pedersen
Chairman Board Member
Ole Sloth Nielsen Bo Holse
Board Member Board Member
Jytte Rosenmaj
Board Member
Management’s Statement
4
The Board of Directors and the Executive Board have today
considered and approved the annual report of DCH International A/S
for the financial year 1 January to 31 December 2024.
The annual report is prepared in accordance IFRS Accounting
Standards as adopted by the EU and Danish disclosure requirements.
In our opinion, the consolidated financial statements and the parent
financial statements give a true and fair view of the Group’s and the
Parent’s financial position at 31.12.2024 and of the results of their
operations and cash flows for the financial year 2024.
In our opinion, the management commentary contains a fair review of
the development of the Group's and the Parent’s business and
financial matters, the results for the year and of the Parent’s financial
position and the financial position as a whole of the entities included
in the consolidated financial statements.
We recommend the annual report for adoption at the Annual General
Meeting.
Fredericia, 10
th
of March 2025
Financial Highlights
Annual Report 2024
Independent auditor’s report on the annual report
for the period 01.01.2024 - 31.12.2024
Auditor’s Review
5
Opinion
We have audited the consolidated financial statements and
the parent financial statements of DCH International A/S for
the financial year 01.01.2024 - 31.12.2024, which comprise
the income statement, statement of comprehensive income,
balance sheet, statement of changes in equity, cash flow
statement and notes, including a summary of significant
accounting policies, for the Group as well as the Parent. The
consolidated financial statements and the parent financial
statements are prepared in accordance with IFRS Accounting
Standards as adopted by the EU and additional requirements
of the Danish Financial Statements Act.
In our opinion, the consolidated financial statements and the
parent financial statements give a true and fair view of the
Group’s and the Parent’s financial position at 31.12.2024, and
of the results of their operations and cash flows for the
financial year 01.01.2024 - 31.12.2024 in accordance with
IFRS Accounting Standards as adopted by the EU and
additional requirements of the Danish Financial Statements
Act.
Basis for opinion
We conducted our audit in accordance with International
Standards on Auditing (ISAs) and the additional requirements
applicable in Denmark. Our responsibilities under those
standards and requirements are further described in the
"Auditor’s responsibilities for the audit of the consolidated
financial statements and the parent financial statements"
section of this auditor’s report. We are independent of the
Group in accordance with the International Ethics Standards
Board for Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code) and the additional
ethical requirements applicable in Denmark, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements and the IESBA Code. We believe that the
audit evidence we have obtained is sufficient and appropriate
to provide a basis for our opinion.
Statement on the management commentary
Management is responsible for the management
commentary.
Our opinion on the consolidated financial statements and the
parent financial statements does not cover the management
commentary, and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the consolidated financial
statements and the parent financial statements, operations
our responsibility is to read the management commentary
and, in doing so, consider whether the management
commentary is materially inconsistent with the consolidated
financial statements and the parent financial statements or
our knowledge obtained in the audit or otherwise appears to
be materially misstated.
Moreover, it is our responsibility to consider whether the
management commentary provides the information required
by relevant law and regulations.
Based on the work we have performed, we conclude that the
management commentary is in accordance with the
consolidated financial statements and the parent financial
statements and has been prepared in accordance with the
requirements of the relevant law and regulations. We did not
identify any material misstatement of the management
commentary.
Management’s responsibilities for the consolidated
financial statements and the parent financial
statements
Management is responsible for the preparation of
consolidated financial statements and parent financial
statements that give a true and fair view in accordance with
IFRS Accounting Standards as adopted by the EU and
additional requirements of the Danish Financial Statements
Act, and for such internal control as Management determines
is necessary to enable the preparation of consolidated
financial statements and parent financial statements that are
free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements and the
parent financial statements, Management is responsible for
assessing the Group’s and the Parent’s ability to continue as
a going concern, for disclosing, as applicable, matters related
to going concern, and for using the going concern basis of
accounting in preparing the consolidated financial
statements and the parent financial statements unless
Management either intends to liquidate the Group or the
Entity or to cease operations, or has no realistic alternative
but to do so.
Auditor’s responsibilities for the audit of the
consolidated financial statements and the parent
financial statements
Our objectives are to obtain reasonable assurance about
whether the consolidated financial statements and the parent
financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs and the
additional requirements applicable in Denmark will always
detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated
financial statements and these parent financial statements.
Financial Highlights
Annual Report 2024
Independent auditor’s report on the annual report
for the period 01.01.2024 - 31.12.2024
6
Auditor’s Review
Auditor’s responsibilities for the audit of the annual report
(continued)
As part of an audit conducted in accordance with ISAs and
the additional requirements applicable in Denmark, we
exercise professional judgement and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of
the consolidated financial statements and the parent
financial statements, whether due to fraud or error,
design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting
from fraud is higher than for one resulting from error, as
fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal
control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
Group’s and the Parent’s internal control.
• Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by Management.
• Conclude on the appropriateness of Management’s use
of the going concern basis of accounting in preparing the
consolidated financial statements and the parent
financial statements, and, based on the audit evidence
obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on
the Group's and the Parent’s ability to continue as a
going concern. If we conclude that a material uncertainty
exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated
financial statements and the parent financial statements
or, if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the
Group and the Entity to cease to continue as a going
concern.
• Evaluate the overall presentation, structure and content
of the consolidated financial statements and the parent
financial statements, including the disclosures in the
notes, and whether the consolidated financial
statements and the parent financial statements
represent the underlying transactions and events in a
manner that gives a true and fair view.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within the
group as a basis for forming an opinion on the
consolidated financial statements and the parent
financial statements. We are responsible for the
direction, supervision and review of the audit work
performed for purposes of the group audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including
any significant deficiencies in internal control that we
identify during our audit.
Odense 10
th
of March 2025
Abdul Wahab Ashraf
State Authorised Public Accountant
Identification No (MNE) mne46664
Deloitte
Statsautoriseret Revisionspartnerselskab
CVR No. 33 96 35 56
Bo Damgaard Hansen
State Authorised Public Accountant
Identification No (MNE) mne34543
Financial Highlights
Annual Report 2024
Consolidated Financial Highlights
Financial Highlights
7
Definitions of financial ratios:
Adjusted EBITDA EBITDA adjusted for price effect on fair value adjustment of biological assets and any special items
Gross margin Gross profit / Total Income x 100
Adjusted EBITDA margin Adjusted EBITDA / Total Income x 100
EBIT margin EBIT / Total Income x 100
Return on invested capital Net financials / Avg. net interest-bearing debt x 100
Return on equity Net Profit / Avg. equity x 100
Solvency ratio Equity / Total assets x 100
Current Ratio Current assets / current liabilities x 100
2024 2023 2022 2021 2020
Ratios:
Return on invested capital
Adjusted ROI (excl. fair value adjust.
bio assets)
EUR '000
2024 2023 2022 2021 2020
Profit & Loss
Revenue 70.546 61.631 40.360 43.184 68.876
Total income 72.863 67.020 52.216 47.865 66.574
EBITDA 13.104 18.381 9.351 2.236 1.449
18.993 16.985 3.928 3.345 14.314
Operating profit/loss (EBIT)
5.485 10.699 1.392 -6.720 -7.106
Net financials
-2.609 -2.958 -2.009 -3.142 -3.228
Profit/loss for the period 2.387 6.494 -596 -8.172 -8.673
Balance sheet:
Total assets
146.508 137.012 136.680 147.030 165.069
5.182 1.192 1.797 2.389 8.837
Equity 91.751 89.075 80.062 80.227 88.176
Invested capital 113.874 119.123 117.385 115.455 128.153
Net interest-bearing debt 32.251 33.043 42.388 39.613 48.541
Cash flow:
Cash flow from operating activities 2.073 13.813 -1.477 7.274 18.239
Cash flow from investing activities -1.281 -4.452 -1.296 1.417 -10.623
Cash flow from financing activities 698 -10.298 -8.093 -2.182 -5.777
Adjusted EBITDA (excl. fair value adjust.
bio assets and Special Items due to ASF)
Investments in property, plant and
equipm.
Financial Highlights
Annual Report 2024
Company Information
DCH International A/S
Address: Synergihuset
Dannevirkevej 6
DK-7000 Fredericia
Company Reg. no.: 26 08 85 77
Domicile: Fredericia
Telephone: +45 64812600
Telefax: +45 64812601
Web: www.dchi.dk
E-mail: mail@dchi.dk
Board of Directors Torben Svejgård (chairman)
Carsten Lind Pedersen
Ole Sloth Nielsen
Bo Holse
Jytte Rosenmaj
Executive Board Lars Vesten Drescher (CEO)
Morten Beider (CFO)
Auditor Deloitte
Statsautoriseret Revisionspartnerselskab
City Tower, Værkmestergade 2
DK - 8000 Aarhus C
Bank Nordea Danmark A/S
Kolding Åpark 2
DK - 6000 Kolding
Lawyer Gorrissen Federspiel
Silkeborgvej 2
DK - 8000 Aarhus C
Subsidiaries Premium Pork International A/S
Premium Porc SRL
Consinterfin SRL
Degaro SRL
Premium Porc Feed SRL
Agro Investments Moldova SRL
Premium Porc Negreni SRL
Premium Vet Depot SRL
Olsuin SRL
Premium Porc Sibiu SRL
8
Company Information
Financial Highlights
Annual Report 2024
Our business model
9
Company Information
About us
Main activity
The main activity has been to operate pig production, focusing on sales of finishers through subsidiaries in Romania.
The group manages all activities related to pig production, having all required production divisions: reproduction and genetics, maternity and
finisher barns. As secondary activities, the group has its own feed production divisions as well as manure management.
✓ Integrated pig production: breeding, reproduction, maternity, finishers
✓ The best Danish expertise and genetics
✓ Internal logistics for animals and feed
✓ Own Feed Mills
✓ Management of natural fertilizer
Financial Highlights
Annual Report 2024
Development in the financial year and financial positions
Management Review
10
Satisfactory market conditions off sets challenges with African
Swine Fever (ASF)
The year shows, without fair value adjustment, a profit before tax of approx.
EUR 6.9m compared to EUR 6.3m in 2023. And shows with the negative fair
value adjustment of herds of EUR 4.0m, a profit before tax of EUR 2.9m
compared to EUR 7.7m in 2023.
The consolidated total income without fair value adjustment was EUR 76.9m in
2024 (+17% compared to 2023). With fair value adjustment total income is up
EUR 5.8m (+9%) from 2023.
The increase in total income is a combination of bigger production but lower
prices for slaughter pigs. Government grants of EUR 1.4m supporting Romanian
businesses in general also contribute to the increase. The sales price
decreased 12% compared to last year (from 2.46 to 2.17 EUR per kg) having a
negative impact of EUR 7.5m compared to last year’s price.
The feed prices decreased by 12% which had a positive impact of EUR 4.4m
compared to last year’s price. Combined with the drop in the pig prices left a
net-decline in the overall profitability of EUR 3.2m.
Production increases, driven by restart of several farms, temporarily closed due
to outbreaks of ASF prior 2024, have a significant positive impact. But ASF
outbreaks in January 2024 delayed the return to full production and the
production capacity has only been utilized in average with approx. 70% in 2024.
Direct loses due to ASF has a significant negative financial impact in 2024 as
Premium Porc farm was infected in January 2024 and Fantanele farm end of
2024 (confirmed in January 2025). Despite Premium Porc farm being restarted
successfully and very fast, the negative impact of the outbreak is still big (EUR
3.3m). And the outbreak in Fantanele impacts 2024 negatively with EUR 1.9m.
Temporarily closed farms due to outbreaks in the past, combined with the two
new ASF outbreaks, had a total negative impact of EUR 7.1m in 2024 compared
to EUR 4.8m last year.
The equity increased 3% to EUR 91.8m compared to YE 2023 (EUR 89.1m) and
the solvency ratio is solid, 63%. Also, the Group’s liquidity reserves YE 2024 are
at a satisfactory level of EUR 13.4 million.
Overall assessment
The net result is not satisfactory
as operations continue to be
negatively influenced by ASF
outbreaks and implications of the
presence of ASF in general.
Satisfactory prices for pigs and
feed were on the other hand an
important factor supporting a
satisfactory result from the
operating farms.
EUR '000
2024 2023 2024 2023 2024 2023
Total income 72.863 67.020 71.126 66.315 1.737 705
76.873 65.624 75.136 64.920 1.737 705
EBITDA 13.104 18.381 14.324 18.512 -1.220 -131
18.993 16.985 20.213 17.116 -1.220 -131
EBIT 5.485 10.699 11.040 14.061 -5.555 -3.362
Profit before tax 2.876 7.741 9.957 12.343 -7.080 -4.602
Other (incl. non-
operating)
Pig production
(operating)
EBITDA excl. fair value adjust. biological
assets and excl. Special Items
Total income without fair value adjust.
biological assets
Consolidated total
Financial Highlights
Annual Report 2024
Pork prices 12% down compared to last year
Although lower than last year, the average sale prices reached again a strong and
satisfactory level. The realized prices are significantly higher than the level prior
2023.
The weaner market also remained strong and only dropped 2% compared to last
year’s record. The financial importance of a strong weaner market is significant
considering 21% of our sold pigs were sold as weaners.
The high pig price level (above €2 per kg) since Q3 2022 is supply driven by a
dramatic reduction of the European pig production since 2021 (approx. 13%). The
reduction has stopped, and the slaughtering is now stabilized at the same
reduced level as last year. Although the demand for pork also is reduced
compared to a few years ago, the reduction in supplies is significantly bigger
shifting the overall market balance.
Herd counts across Europe indicate steady or even reduced production in a
foreseeable future. The expected supply supports satisfactory prices for 2025.
Feed prices also 12% down
Feed prices were 12% lower in 2024 compared to last year. This decrease was expected as
it matches the price level for the second half of 2023. Cereal prices in harvest 2023, which
largely determines feed costs up to harvest 2024, were 10-15% lower than the record high
prices registered in 2022.
Until harvest 2020, feed prices were relatively stable for several years. This trend has
certainly changed. Although decreased compared to 2022, the average price of raw
materials consumed in 2024 is 33% higher as compared to 2019.
We don’t expect a return to harvest 2019 prices, but we do believe that the cereal prices
peaked in 2022. We realized cereal prices for 2024 harvest approx. 5% lower than the
harvest prices in 2023 supporting slightly lower feed prices for 2025. We expect the price
of raw materials to decline further although still at a high level compared to “old” price
levels.
The price level is now back to profitable levels
The price ratio between pork and feed of 7.0 for 2024 is like last year and significantly
above the record low in 2021! Although the ratio is unchanged, the profitability outcome is
negative due to pig prices being lower. The reduced prices represents a reduced profit
before tax of EUR 3.2m in 2024 compared to the same production with 2023 prices.
Compared to 2019 prices, where the price ratio was at the same level, we would have
generated approx. EUR 6.2m less in profit before tax if repeating 2019-prices.
Herd valuation decreased by EUR 4.0m due to lower pig prices YE 2024
The market prices of biological assets (the pig herd) have followed the fluctuations in the
pork prices. Consequently, the value of biological assets is decreased by EUR 4.0m
compared to the equivalent, if prices of 31.12.2023 were to be used.
The adjustment is in line with international accounting principles, which are considered to
provide a more accurate description of the company’s activities and financial position.
Pork and feed prices declining but remain at a profitable level
Management Review
11
1,50
1,75
2,00
2,25
2,50
2,75
Q1-2023 Q2-2023 Q3-2023 Q4-2023 Q1-2024 Q2-2024 Q3-2024 Q4-2024
EUR per kg carcass
Realized sales prices
(quarterly averages)
2017 2018 2019 2020 2021 2022 2023
2024
Pork Prices (carcass)
EUR/kg
1,66 1,42 1,63 1,52 1,32 1,90 2,46 2,17
Feed Prices
EUR/kg
0,21 0,22 0,23 0,24 0,26 0,35 0,35 0,31
Exchange ratio pork:feed 7,9 6,5 7,1 6,4 5,1 5,5 7,0 7,0
Note: The table show realized prices from the subsidiaries in Romania as an annual average after ASF related discounts.
Pork and feed prices in Romania
Financial Highlights
Annual Report 2024
Our pig production continue the battles with ASF
Management Review
12
2020 2021 2022 2023
2024
Diff. Y24
over Y23
Number of sows end of year heads 17.956 9.449 11.308 16.044 16.764 4%
Out of which sows to be culled heads 3.203 0 0 0 6.847
Weaned piglets per avg. sow heads 34,3 32,5 33,8 32,7 32,5 -1%
Produced pigs per avg. sow *)
heads 30,6 30,3 31,7 29,0 29,3 1%
Sold slaughterpigs heads 423.981 291.477 199.332 193.180 255.158 32%
Sold weaners (net) heads -3.457 60.054 95.574 142.400 71.164 -50%
Produced pigs total heads 427.887 396.841 324.354 374.353 412.217 10%
Weight produced pigs **)
tons 51.689 36.954 26.289 28.002 37.937 35%
Facts about the pig production
Notes: *) Produced pigs per sow for 2023 are excluding restart of Olsuin and for 2022 & 2024 excluding restart of Premium Porc. **) Weight of
pigs culled due to ASF included.
Our pig production is increasing again as closed farms gradually are restarted
– despite an ASF outbreak in January temporarily closing 15-20% of our capacity
The overall capacity utilization, measured in number of sows, registered a 4% increase compared to YE 2023
despite the reduction of the sow herd caused by an ASF outbreak in Premium Porc farm in January 2024. A fast
restart of the farm made a full repopulation of the sow-herd possible by YE 2024. Restarting of Olsuin towards end
of 2023 have more than off-set the missing production from Premium Porc farm, explaining the 10% increase of
pigs produced despite the closing of Premium Porc farm.
We have in 2024 continued the process of returning the sales mix towards fattening most of our pigs and limit the
sale as weaners by restarting of the temporarily closed finisher farms. All farms, except for a small one closed in
October 2024 due to ASF, was operating by end of 2024. The restarted finisher farms are the main reason for the
production in kg increasing by 35% compared to 2023 considering number of pigs only increased by 10%.
.
0
10.000
20.000
30.000
40.000
50.000
60.000
2020 2021 2022 2023 2024
Weight produced pigs (tons)
Realized production compared to potential if
all capacities would have been accessable
Production potentiale
without ASF
Romania supports pig welfare
Based on the Romanian support scheme, we applied for grants
to improve animal welfare in pig production. The grant we
applied for in 2024 has been recognized in total income by EUR
4.8m, representing 95% of the total value applied for. Payment is
expected during the 1
st
half of 2025.
In 2024 we have received payments of EUR 3.9m for animal
welfare support, for which we applied for in 2023. This
represents EUR 0.1m more than allocated by the end of 2023. In
total, grants for improved animal welfare of EUR 4.9m are
registered in 2024, 24% up from the same period last year due to
higher production.
The subsidy amount is far from a net gain, as we could reduce
the significant costs related to meeting the requirements for the
subsidy in case it ceased to exist.
The number of pigs produced in 2024 is still 27% down
compared to pre-ASF production.
And measured in weight produced even more below, underlining
that utilization of our production capacities still is low.
Restarting farms and young sow herds have affected the overall productivity negatively, but different challenges in
production have furthermore negatively affected production efficiency. The overall efficiency has improved in 2024
compared to H2 2023, but is still not at a satisfactory level and 5-10% below the efficiency level achieved in the
past. The two new sow herds started at promising efficiency levels and our expectations are high.
Another ASF outbreak in January 2025 unfortunately destroys our plan of reaching full production in 2025. This
new outbreak (see next page) affects our biggest sow farm representing 40% of our total capacity.
Financial Highlights
Annual Report 2024
Production affected
by African Swine Fever (ASF) in Romania
Management Review
13
Evolution of new outbreaks in
Romania (per week / from 2018 to 2024)
Since the beginning of June 2018, more than 6.600 outbreaks of African Swine Fever (ASF) are
registered at national level. The entire Romania has been considered affected since 2019 and
continues to register a significant number of outbreaks.
Indirect losses caused by ASF in Romania
The biosecurity in all our farms remains at a very high level, well exceeding industry standards
according to international experts. Nevertheless, we experience huge indirect impact on our
operations, due to the measures taken by the authorities to control the virus.
Surveillance/protection zones caused by ASF outbreaks in areas close to our farms have
repeatedly impacted our production flows negatively, due to restrictions on moving animals in
and out of the blocked farms. Except for the zoning of our Consinterfin farm caused by the
outbreak in the neighboring Premium Porc farm, no zoning has affected us in 2024.
We work, in close collaboration with the authorities, toward lifting the zonings as soon as
procedures and disease control allow. We are often able to continue production unaffected on
the blocked farms, if the zoning is lifted in 4-6 weeks, due to the measures we have taken to
adjust our production flow.
The indirect losses caused by the restrictions due to ASF outbreaks is not compensated by the
authorities. These indirect losses arises from: lower sale prices due to special handling of pigs
from ASF areas (thermal treatment), lost production in finishers farms not being supplied with
weaners and extra costs to compensate for disrupted production flows.
The indirect loss in 2024 caused by zoning of the one farm was limited to approx. EUR 0.3m as
the zoning lasted less than 6 weeks. No indirect losses registered in 2023.
Direct losses caused by ASF outbreaks in our farms
Following the outbreaks on our farms in previous years, production was significantly
downsized until the farms could be restarted again. Obviously, our goal is to avoid additional
outbreaks. We believe our biosecurity set-up is a powerful tool to increase our probability of
avoiding additional outbreaks.
An outbreak in Premium Porc farm occurred at the end of January 2024 underlining that even
best-in-class biosecurity is not enough to prevent outbreaks completely. This farm had 3,000
sows with a capacity for finishing half of the piglets while the other half is transferred to other
farms in the Group. All 21,000 pigs were culled. The farm is restarted successfully during 2024,
and the sow herd was almost reestablished by YE 2024.
The value of the herd as well as the immediate costs were compensated by the Romanian
State whereas the subsequent business interruption loss isn’t compensated. The negative
financial impact was approx. EUR 3.3m in 2024 and an additional negative impact of €1.3m is
expected in 2025 until the farm is in full operation in Q2 2025.
All farms with outbreaks in 2021 and 2022 are back in operation by end of 2024 although
some production flows still are in restart phase.
The loss for the Group caused by the ASF outbreaks in 2021 and 2022 amounts for 2024 to
approx. EUR 2.1m (EUR 4.8m same period last year) due to the non-covered costs originating
from the farms closed. Adding the business interruption triples the loss.
A new ASF outbreak confirmed in January 2025
A new outbreak in Fantanele farm (part of Degaro) was confirmed early January 2025. The
infection most likely happened in December 2024. This farm had 6,700 sows with transfer of
piglets and weaners to other farms in the Group. All 51,000 pigs were culled.
The value of the herd as well as the immediate costs will be compensated by the Romanian
State whereas the total subsequent loss including business interruption will have a negative
financial impact of approx. EUR 8-10m from infection until mid-2026 when the farm is
expected to be in full operation. The restart plan is like Premium Porc in 2024 as we plan for it
to be restarted as fast as possible having the sow herd reestablished by YE 2025.
A part of the loss, EUR 1.9m, is registered as Special Item in 2024 following the timeframe for
the actual infection.
We are determined and focused on our strategy to be the company who masters the
art of producing pigs in an ASF environment.
Financial Highlights
Annual Report 2024
Litigations for relocation of Negreni farm
Management Review
14
A group of citizens in Negreni village brought charges in 2016 claiming our farm
should be relocated. Their claim is based on a Government Order from 2014
stipulating that distances from farm operations to the neighboring houses should
be minimum 1,500m.
Our advisors, as well as the authorities that have assessed and validated our
production and building permits, agree that this Order was meant to cover future
constructions only and not farms and houses established decades before the
Order was issued. Despite this, we lost in two consecutive local court hearings in
2018, and we are demanded to relocate the farm. The Ministry issuing the Order
has in 2020 confirmed our understanding.
The case contradicts in many ways the legal framework covering our production
permits. The enforceability of the verdict is anyhow seen as practically impossible
as all production permits are valid, and production can continue despite the
verdict.
Seventeen new, similar claims were received during the last two years. The new
claims are either from the same citizens as the original claims or from citizens
connected to the original claimants. All cases have been for trial with a
satisfactory result for us as the cases are dismissed. The base for new claims no
longer exists as the Government Order was changed in 2023 eliminating the
minimum distance.
We are also investigating other options for dealing with this case.
We have no intention of relocating the farm and continue disputing the ruling and
fighting the new claims received. The management and our legal advisors have
initiated several actions for annulment and estimate that we have a strong case
for preventing the ruling being carried out. Based on this, we have chosen not to
make any provisions as we don’t expect to encounter any losses due to this case.
The case is described in detail in Note 2.
Financial Highlights
Annual Report 2024
Sustainability and Corporate Social Responsibility
15
Management Review
We care - Responsibility and sustainability as our guiding principles
This statement has been prepared in accordance with the Financial Statement Act §99a,
§99b and §99d.
Our CSR strategy reflects the emphasis we, DCH International A/S, put on our operations
being responsible and sustainable, and is built upon the pillars of animal welfare,
environment, human and labor rights, local communities, corporate governance and anti-
corruption. Our CSR report is public and can be read in full at our company’s website:
www.premiumporc.com
We put much effort in reducing the environmental impact of manure from our production.
This by applying the manure as natural fertilizer in various ways and, at the same time,
exploring new means to use it. To prevent release of greenhouse gasses, and reduce odors
in general, the manure is stored in sealed lagoons.
Seeking to develop and support the local communities in which we operate, we have formed
sponsorships with local schools and hospitals in Romania. Here, we focus our initiatives on
the pillars of education, health, environment and local values.
We aim for the highest standard of animal welfare within our industry by complying to
established procedures for pig production as well as biosecurity. These procedures are
based on Danish practice, EU standards and further supplemented by the additional
measures required by the Romanian national program for animal welfare.
Our guiding principles of sustainability and responsibility is reflected in our continuous drive
to minimize the impact of our business, and by providing improvements today and for
generations to come.
Policy for the under-represented gender
Board of Directors:
The current gender balance in the board is: 1 woman and 4 men. The target regarding
diversity at Board of Directors level was that at least one of the board members should be of
the under-represented gender. We have a target number of min. 25% women on the board by
the end of 2026.
The company's board members are elected by the shareholders at the Annual General
Meeting. Taking the specifics of the industry into account, it is unlikely that the proportion of
the under-represented gender in the board will increase further over the coming years. The
shareholders are aware of the company’s wishes to honor diversity and equal gender
representation and will be aware of this in the future constitutions of the Board, to the extent
the recruitment base supports this possibility.
Other management levels:
The company is required to establish a policy for diversity at other management levels.
Through its internal policies and practices, the group assures a fair selection process, open
towards all genders as well as personal circumstances, and the selection is performed
strictly on criteria related to expertise and reflection of company values.
Statement of Data Ethics Policy
We adopted the Policy of Data Ethics in 2022. The policy establishes the overall guidelines
and principles for how data ethics is considered and reflects the Group´s commitment to
manage data responsibly based on principles of honesty, transparency, and accountability.
As a company, we primarily processes data relating to human resources, shareholders
interactions, customer and supplier contact. The group controls that data is collected for
explicit and legitimate purposes and processed legally and fairly, including that data
processing only comprises the data necessary to realize the purpose of the processing.
Any violation of the policy on data ethics or the Group’s internal procedures may be reported
by employees through the groups whistleblowing system. No reports were filed in 2024.
The policy on data ethics is approved by the board of directors annually and revised on an
ongoing basis.
Financial Highlights
Annual Report 2024
Anticipated development
16
Management Review
Pork prices expected to remain attractive for the foreseeable future
ASF continues to challenge the industry in EU as affected countries continue to discover
new cases. But the market balance in the EU is adjusted to the situation with the lack of
export out of EU from the affected countries. Unless ASF spreads to one of the big export
countries we don’t expect ASF to affect the market balance at European level in 2025.
The demand in Europe for pork has decreased in the latest years partially due to the
inflation impacting consumer behavior. But in Romania, the willingness to pay extra for
locally produced pork is strong due to a very low self-supply.
Predicting the supply evolution seems to be on firmer grounds indicating low supplies for
the foreseeable future. The slaughterings in Europe dropped in 2023 to a significantly lower
level than in the past and this reduced level have continued in 2024. The latest herd counts
in the EU indicate that production remains stable, even with a small reduction of the sow
herd indicating that slaughtering will remain low in 2025 as well.
Although the pig price most likely peaked in 2023, we expect only limited price reductions,
and we expect the average price being close to 2 EUR per kg in 2025.
Feed prices declining - but from a very high level
The grain prices continued the downward trend started last year. We have secured a big
portion of the cereals needed until harvest 2025 and even beyond at prices 5-10% below the
harvest 2024 level.
The price level is expected to stay at a profitable level
The price levels for pigs and feed are expected to support profitability also in 2025 as we
expect the pig prices to remain relatively high and the feed prices to be stable, if not slightly
reduced.
Subsidies for animal welfare continue
Subsidies for improving animal welfare continues at least until 2027 according to the
current program. We expect it to continue beyond this as continuation of support to the
industry is an important factor for Romania to reestablish a reasonable degree of national
self-supply.
Production temporarily downsized – focus on return to full operation
Although the new ASF outbreak in January 2025 is a major bump, the strategy still is to
resume full production as soon as reasonably possible. Production in 2025, despite the
outbreak in January, is expected to be 4% up from 2024. Production in 2025 will still be
approx. 27% lower than in 2019 (the most recent year without ASF outbreaks).
ASF restrictions will hopefully not impact our production flow
Despite the lack of production flow disruptions caused by farms entering
protection/surveillance zones the last year, future incidents are considered unavoidable.
But hopefully we can avoid disruptions for the rest of 2025.
It’s of high importance for our industry that the ASF situation is being controlled.
Improvement can be seen in the manner that some local authorities manage the clearance
of ASF outbreaks, leading to gradually decreasing periods of animal movement restrictions.
We do expect that ASF will be present in Romania for several years to come, but as both
backyard production and the wild boar population is naturally decreasing over time, further
accelerated by ASF, the risk is expected to gradually decrease within the following years.
Investments focused on optimized production flows
Investments projects are prioritized considering the ASF situation, and the focus on having
all farms back in production. Our priority to protect our farms within the Group remains.
Besides this, a few specific projects, supported by investments grants, are planned for
2025. The biggest of the projects, upgrading an existing farm, was started in 2024 and will
be finalized in 2025.
We expect loss in 2025 due to the ASF outbreak in January 2025
As stated above, we believe pork prices will remain at a satisfactory level throughout 2025
and the price ratio to continue at the profitable level realized in 2024. But restart of the
temporarily downsized production and new ASF outbreaks have a big negative impact.
Based on our price expectations, and a calm ASF situation, we expect a Total income of
EUR 60-70m and the adjusted EBITDA (excluded for fair value adjustment of the herd) to
reach EUR 6-9m. Herd valuation is expected to have a limited impact for 2025.
We remain focused on our cash flow in 2025. The starting point is strong, and the cash
base is expected to remain at a satisfactory level throughout the year supporting restarting
the remaining temporarily reduced production capacities.
Financial Highlights
Annual Report 2024
Income Statement
Consolidated Financial Statements
Consolidated Income Statement Consolidated Statement of Comprehensive Income
17
EUR '000
2024 2023
Note
Revenue
3
70.546
61.631
Grants and other income
4
6.327
3.993
Value adjustment, biological assets
5
-4.010
1.396
Total Income
72.863 67.020
Direct costs -31.763 -28.038
Other external costs -16.384 -13.608
Gross profit
24.716 25.374
Staff expenses
6
-9.733 -6.993
Special items
7
-1.879 0
Depreciation
8
-7.619 -7.682
Operating profit (EBIT)
5.485 10.699
Financial income
8
119 137
Financial expenses
9
-2.727 -3.095
Profit before tax
2.876 7.741
Tax on profit for the year
10
-489 -1.247
Net profit for the year
2.387 6.494
Distribution of profit for the year:
Group Shareholders
2.387 6.494
Distributed
2.387 6.494
EUR '000
2024 2023
Net profit for the year 2.387 6.494
Exchange adjustments of foreign enterprises
-317 403
Fair value adjustment of hedging instruments
-144 -72
Tax on hedging instruments
23 12
866 2.594
Tax on revaluation
-138 -415
Total comprehensive income 2.676 9.014
Group shareholders 2.676 9.014
2.676 9.014
Items that may be reclassified subsequently
to profit or loss
Items that may not be reclassified
subsequently to profit or loss
Distribution of total comprehensive income
Revaluation of land, buildings, leasehold
improvements and plant and machinery
Financial Highlights
Annual Report 2024
Balance Sheet
18
Consolidated Financial Statements
Consolidated Statement of Financial Position
EUR '000
31/12
2024
31/12
2023
Assets
Note
Acquired rights
11
293 351
Intangible fixed assets in total
293 351
Land and buildings
12
65.616 67.968
Plant and machinery
12
11.405 12.807
Operating equipment
12
814 591
Right-of-use assets
12
1.387 1.701
Property, plant and equipm. in progress
12
3.035 915
Property, plant and equipment
82.258 83.982
Non-current investments
14
56 86
Deferred tax asset
19
762 0
Biological assets, Breeding herd
13
5.644 10.513
89.013 94.931
Biological assets, Commercial herd
13
16.268
13.338
Inventories
15
9.216
8.379
Biological assets and inventories
25.484 21.717
Trade receivables
16
6.612 6.191
Other receivables
16
16.014 6.014
Prepayments 586 827
Receivables
23.213 13.032
Assets classified as held for sale
17
294 315
Cash and cash equivalents 8.505 7.017
57.496 42.081
146.508 137.012
Total non-current assets
Total current assets
Total Assets
EUR '000
31/12
2024
31/12
2023
Equity and Liabilities
Note
Share Capital
18
12.767
12.767
Asset revaluation surplus 11.124
11.253
Reserve for exchange adjustments
851
1.168
Cash flow hedging reserve 0
121
Retained earnings 67.009
63.766
91.751 89.075
Provision for deferred tax
19
0 367
Credit institutions
20
9.330 14.893
Lease liabilities
20
762 467
Deferred income
21
1.601 1.660
Other non-current liabilities
20
1.830 1.834
Long-term liabilities
13.523 19.222
20 28.835 22.866
Trade payables
7.235
3.716
Other liabilities
22
5.164
2.132
Short-term liabilities
41.234 28.715
54.757 47.937
146.508 137.012
Equity
Short term portion; credit institutions,
leasing and other non-current
Total liabilities
Total Equity and Liabilities
Financial Highlights
Annual Report 2024
19
Consolidated Financial Statements
Consolidated Statement of Changes in Equity
EUR '000
Share Capital
Asset
re valuation
surplus
Reserve for
exchange
adjustment
Cash flow
hedging
re serve
Retained
earnings
Total Equity
12.767 9.706 766 181 56.641 80.062
Share based payments 0 0 0 0 -22 -22
0 0 0 0 6.494 6.494
0 -632 0 0 632 0
0 2.179 403 -61 22 2.542
0 1.547 403 -61 7.125 9.013
12.767 11.253 1.168 121 63.766 89.075
Share based payments 0 0 0 0 0 0
0 0 0 0 2.387 2.387
0 -856 0 0 856 0
0 727 -317 -121 -1 288
0 -129 -317 -121 3.243 2.676
12.767
11.124 851 0 67.009 91.751
Comprehensive income for the year 2023
Equity December 31, 2023
Equity at January 1, 2023
Net profit/loss for the year
Other comprehensive income
Net profit/loss for the year
Other comprehensive income
Comprehensive income for the year 2024
Equity December 31, 2024
Depreciation of revaluation reserve
Depreciation of revaluation reserve
Financial Highlights
Annual Report 2024
Consolidated Cash Flow Statement
20
Consolidated Financial Statements
EUR '000
2024 2023
Note
Operating profit/loss (EBIT) 5.485 10.699
Adjustment for non-cash items:
7.705 7.702
5 4.010 -1.396
13
-5.995 -1.501
15
-837 1.519
Change in receivables
16
-10.183 -864
5.910 1.042
Cash flow from operations before financial items
6.095 17.201
Financial income received
8
119 137
Financial expenses paid
9
-2.629 -2.851
Corporation taxes paid
-1.512 -674
Cash flow from operating activities
2.072 13.813
11
-44 0
11
0 2
12
-5.669 -1.309
12 487 176
14
0 -4
17 21 88
13
3.923 -3.405
Cash flow from investing activities
-1.281 -4.452
Acquisition of investments
Depreciations
Acquisition of intangible assets
Sale of intangible assets
Value adjustment, biological assets
Change in commercial herd
Change in inventories
Change in trade payables etc.
Net disposal of assets held for sale
Acquisition of biological assets
Acquisitions of property, plant and
equipment
Sale of property, plant and equipment
EUR '000
2024 2023
Note
20
6.008 212
20
-5.310 -10.510
Cash flow from financing activities
698 -10.298
Change in cash and cash equivalents
1.489 -937
Cash and cash equivalents, start year
7.017 7.970
Exchange adjustments, begining cash
-1 -17
Cash and cash equivalents at December 31
8.505 7.017
4.865 6.827
Liquidity available at December 31
13.370 13.844
Proceeds from borrowings
Repayment of borrowings
Un-utilised short term facilities
Financial Highlights
Annual Report 2024
21
Notes – Consolidated Financial Statements
Note 1: Summary of significant accounting policies and estimates
Significant accounting estimates and assessments in the group
accounting policies
Revaluation of fair value of property
The Group’s land, buildings are revaluated at fair value. Revaluation of property is
recognized in fair value using either a market-based approach or a replacement cost
approach. Results of the revaluation based on the replacement cost approach were
compared with a revaluation performed using the income approach to check for
impairment indicators of revalued assets, if any.
The revaluation process is based on qualified independent appraisers done according
with International Valuation Standard 300. This standard considers as basis for
evaluation IAS36 and IFRS13. Valuation techniques are the market and replacement
cost approach. The replacement cost approach is only used in cases where there was
no possibility to use the market approach.
The valuation process are reviewed and approved by the Group’s Management and by
the Audit Committee every year. Results for measurement are reviewed and approved
whenever revaluations are performed.
In the subsidiaries, revaluations are performed frequently, minimum every fifth year,
after a rotation principle to ensure the carrying amounts do not differ materially from
that which would be determined using fair value at the end of the reporting period.
This procedure has been used for many years with only limited value adjustments
registered.
The total fair value of land, buildings, plant and machinery amounted to EUR 79.2
million on December 31st, 2024 (EUR 83.0 million on December 31st, 2023).
Fair value of biological assets
Biological assets are recognized when the Group controls the assets and it is
probable that future economic benefits associated with the asset will flow to the
Group and the cost for fair value of the asset can be measured reliably.
Biological assets are measured at fair value less selling costs.
Value adjustments of biological assets are recognized in profit or loss for the
period of which they relate.
Commercial herd:
Slaughter pigs (Finishers) above 50 kg are valued based on average sales prices
for November-December on the local market less costs for reaching desired sales
weight of approx. 110 kg. Finishers between 25-50 kg are valued as weaners with
additions for added weight.
The fair value of weaners is based on official Danish and German quotes plus a
mark-up to reflect the Romanian market conditions. The Danish and German
quotes are used as there isn’t an official quotation for the Romanian market. The
Group’s experience from historical sales as well as purchases is that prices on
the Romanian market are strongly correlated to the German and Danish
quotations plus a mark-up reflecting the lack of weaners for sale in Romania. The
mark-up is according to the Group’s recent weaner sales contracts.
The valuation of piglets is based on official Danish quotes.
Breeding herd:
Breeding herd (boars, sows and young females) are valued based on official
quotes, based on criteria such as genetics, costs and expected piglets.
Financial Highlights
Annual Report 2024
22
Notes – Consolidated Financial Statements
Note 2: Contingent liabilities
Relocation of Negreni farm:
(Negreni neighbor cases)
Five citizens from Negreni village filed, in November 2016, a claim against Premium Porc
Negreni SRL with the objective of relocating the Negreni-farm as well as receiving
compensation for moral damages. Their claim is based on Government Order no.
119/2014 stipulating that distances from farm operations to the neighboring houses
should be minimum 1,500m. The Negreni farm, build in 1981, is currently located at few
hundred meters from the nearest houses, all of them being built after the farm.
In first court, in March 2018, the judge ruled that the farm should be relocated in order to
respect the mandatory distance provided by Order 119 and denied the claimants
compensation for moral damages. Premium Porc Negreni SRL appealed the ruling in
June 2018. In second court, in December 2018, the Mehedinti Tribunal rejected our
appeal and upheld the decision from the first court.
The Government’s objective, in 2014 when Order 119 was issued, was to prevent
construction of new farms within less than 1,500 m from private houses for the future.
And vice versa. This understanding of the Government’s Order also is confirmed by all
authorities and is reflected in the fact that all production and functioning permits are
regularly renewed despite the distance being less than 1,500 m.
To further substantiate our understanding of the Order we’ve in 2020 received a response
from the Ministry of Health confirming that our understanding is correct. The Order was
changed in 2023 and the request of 1,500 m distance from nearest houses was removed.
Fighting enforcement procedures is ongoing and court hearings continued in 2024. As
per penalties, several claims against enforcement procedures have been upheld by the
Court and initial penalties annulled. We expected a breakthrough when the Court
decided, that since we as a company stopped the activities in Negreni farm obligations
according to original rulings were met and the enforcement claims were stopped. But
this ruling was appealed, and the decision reversed. However, we are in progress of
making new claims for fighting the enforcement procedures, this time based on
changing in legislation that was the main argument for the initial decision. Subsequently,
we are investigating other options to close the case.
One penalty claim is closed with a limited amount and another claim is dismissed. We
expect to close the rest of the claims in a satisfactory manner.
We have since September 2019 up to now received, eighteen new similar claims from
one of the original claimants and other citizens with connections to him. All the new
cases have been trialed and dismissed making our wins definitive. The risk of receiving
new claims copying the original claim no longer exist considering the changes to the
Government Order eliminating the minimum distances.
The current ruling for relocation doesn’t cancel the production permits. According to our
legal advisors, since the ruling is to “move” the farm and not to close it, it will be difficult
or impossible for the claimants to stop our production in the farm. Relocation of the farm
is impossible to carry out in practice and calculation of the potential worst-case loss is
impossible to assess with a reasonable certainty. The potential worst-case loss caused
by the unlikely outcome that the farm will have to be closed and removed is substantial.
Based on the management and the company’s legal advisor’s opinion that the
relocation ruling never will be carried out, no provisions for relocation of the farm nor
other provisions are stated in the financial statements.
Financial Highlights
Annual Report 2024
Notes – Consolidated Financial Statements
23
Notes to the Income Statement
Note
EUR '000
2024 2023
3
Revenue
Business areas:
Pig production 70.198 60.927
Other 350 705
70.548 61.631
Geography:
Romania
70.548
61.631
4
Grants and other income
Animal Welfare Payments 4.938 3.993
Other grants 1.388 0
6.327 3.993
5
Value adjustment, biological assets
Value adjustments pigs
-4.010
1.396
-4.010 1.396
Revenue from sale of products is recognized when the Group has transferred
control of products sold to the buyer. Control of the products is transferred at
a point in time, typically on delivery. Revenue is recognized net of VAT, duties
and sales discounts.
The Group primarily sells pigs for slaughterhouses. Revenue from the sales of
pigs is recognised when delivery has taken place.
Note EUR '000
2024 2023
6
Staff expenses
Wages and salaries 9.314 6.265
Social contribution & other staff expenses 887 751
Wages inactive farms (Special Items) -468 0
9.733 7.015
Share based payments for management team 0 -22
9.733 6.993
Remuneration to the Executive Board 608 563
Remuneration to the Board of Directors 101 90
Average number of employees 353 292
7
Special Items
Compensation for culled herd -7.520 0
Value culled herd 5.897 0
3.502 0
1.879 0
Total Income 1.623 0
Direct costs -452 0
Other external costs -2.582 0
Staff expenses -468 0
-1.879 0
Special Items are costs caused by infection of ASF leading to the herd being culled. We
refer to the detailed decription in the management review.
If the special items had been recognized in operating profit before special items, they
would have been included in the following items:
Net costs related to ASF outbreaks:
Costs related to culling, disinfection and quarantine
Financial Highlights
Annual Report 2024
24
Notes – Consolidated Financial Statements
Notes to the Income Statement
EUR '000
2024 2023
11 Intangible assets
Acquired rights
Cost at January 1 1.505 1.507
Additions for the year 44 0
Disposals for the year -322 -2
Cost at December 31 1.226 1.505
Amortisation at January 1 1.153 1.031
Amortisation for the year 103 147
-322 -25
Amortisation at December 31 934 1.153
Carrying amount at December 31
293 352
Reversed depreciation on disposal
The Group has acquired and implemented several software systems used in daily
operations. The value of the acquired rights are based on costs for licenses and
implementations of those software systems.
Note EUR '000
2024 2023
8 Financial Income
Interest financial institutions 119 137
119 137
9 Financial Expenses
Interest bank debt 1.774 1.865
Calculated interest leasing commitments 64 77
Other financial expenses 790 885
Exchange rate adjustment 99 267
2.727 3.095
10 Income Taxes
Current tax 1.253 1.442
Tax Comprehensive Income -116 -403
Adjustment of deferred tax -648 208
489 1.247
460 1.238
Tax effect of:
173 464
Non-taxable income and expenses -144 -455
489 1.248
Effective tax rate for the year 17% 16%
Calculated 16% tax on profit for the year before tax:
Differences in tax rates in Denmark (22%)
compared with Romania
Tax on profit for the year is specified as
follows:
Financial Highlights
Annual Report 2024
25
Notes – Consolidated Financial Statements
Notes to Financial Position
Revaluation of fair value of property
The Group’s land and buildings are
revaluated at fair value as described in
note 1. The revaluation process is based
on qualified independent appraisers, and
valuation techniques are the market and
replacement cost approach. The
replacement cost approach is only used in
cases where there was no possibility to
use the market approach.
Revaluations are in the subsidiaries
carried out in a rotation principle to ensure
the carrying amounts does not differ
materially from what would be determined
using fair value at the end of the reporting
period.
A valuation review has been performed in
2023 on the properties owned by Premium
Porc SRL and Consinterfin SRL. The
valuation reviews resulted in a total
financial revaluation of EUR 2.6m.
12 Tangible assets
EUR '000
Land and
buildings
Plant and
Machinery
Operating
equipment
Right of use
assets
Property, plant
and equipment
in progress
Cost at January 1, 2023 82.646 43.876 2.906 5.549 836
Additions for the year 320 742 67 102 236
Disposals for the year -34 -4 -309 -1.468 -157
Cost at December 31, 2023 82.931 44.614 2.664 4.183 915
Revaluation at January 1, 2023 15.304 0 0 0 0
Revaluation increases 2.594 0 0 0 0
Revaluation at Dec. 31, 2023 17.897 0 0 0 0
Amortisation at January 1, 2023 29.024 29.037 2.035 2.947 0
Amortisation for the year 3.842 2.773 318 886 0
Reversed depreciation on disposal -5 -4 -280 -1.351 0
Amortisation at December 31, 2023 32.860 31.807 2.073 2.483 0
Carrying amount at Dec. 31, 2023 67.968 12.807 591 1.701 915
Out of which carrying amount on revaluations 13.396
Out of which land not depreciated 4.402
Right-of-use assets by category 322 948 430
Assets provided as security for debt 67.968 12.807 591
Financial Highlights
Annual Report 2024
26
Notes – Consolidated Financial Statements
Revaluation of fair value of property
The Group’s land and buildings are
revaluated at fair value as described in
note 1. The revaluation process is based
on qualified independent appraisers, and
valuation techniques are the market and
replacement cost approach. The
replacement cost approach is only used
in cases where there was no possibility to
use the market approach.
Revaluations are in the subsidiaries
carried out in a rotation principle to
ensure the carrying amounts does not
differ materially from what would be
determined using fair value at the end of
the reporting period.
A valuation review has been performed in
2024 on the properties owned by
Premium Porc Negreni SRL. The valuation
reviews resulted in a total financial
revaluation of EUR 0.9m.
Notes to Financial Position
The Group had end of 2024 contractual
obligations related to Property, plant and
equipment in progress of EUR 1.9m (2023: EUR
0.0m).
12 Tangible assets continued
EUR '000
Land and
buildings
Plant and
Machinery
Operating
equipment
Right of use
assets
Property, plant
and equipment
in progress
Cost at January 1, 2024 82.931 44.614 2.664 4.183 915
Additions for the year 975 1.581 550 444 3.592
Disposals for the year -6 -2.230 -1.408 -1.718 -1.472
Cost at December 31, 2024 83.900 43.964 1.805 2.909 3.035
Revaluation at January 1, 2024 17.897 0 0 0 0
Revaluation increases 866 0 0 0 0
Revalaution at Dec. 31, 2024 18.763 0 0 0 0
Amortisation at January 1, 2024 32.860 31.807 2.073 2.483 0
Amortisation for the year 4.186 2.972 289 410 0
Reversed depreciation on disposal 0 -2.220 -1.371 -1.371 0
Amortisation at December 31, 2024 37.046 32.559 992 1.522 0
Carrying amount at Dec. 31, 2024 65.616 11.405 814 1.388 3.035
Out of which carrying amount on revaluations
13.241
Out of which land not depreciated 4.813
Right-of-use assets by category 214 553 621
Assets provided as security for debt 65.615 11.405 814
If Land and buildings were measured using cost model, the carrying amounts would be:
Net carrying amount Land and Buildings without revaluations, 2023 54.572
Net carrying amount Land and Buildings without revaluations, 2024 52.375
Financial Highlights
Annual Report 2024
Notes to Financial Position
27
Notes – Consolidated Financial Statements
Gain on changes in fair value comprises changes as a consequence of
biological growth and price changes. Disposals from sales and transfer
amounts are calculated using the fair value per unit from previous period.
Transfers between groups’ covers pigs transferred to own breeding as young
females.
Reference is made to note 1 for further details of fair value measurement of
biological assets.
All biological assets are measured at fair value. All of these fair values are
placed at level 3 in the fair value hierarchy as significant estimates are applied
– please refer to note 1. The Groups financial department is responsible for
performing the valuation of fair value measurements including level 3 fair
values of biological assets. Valuation model includes market inputs from
official prices and actual own sales prices on local market. The valuation
process and results for measurement are reviewed and approved by Group
Management and the Audit Committee at least once every year.
13
Biological assets
EUR '000
Commercial
herd
Breeding herd Total herd
Commercial and breeding herd
Carrying amount at January 1, 2023
10.089 7.461 17.550
Movements 2023:
Gains/losses fair value changes
1.748 -352 1.396
Additions from production 56.665 2.551 59.216
Additions from purchases 0 1.576 1.576
Disposals from sales -53.756 -2.130 -55.887
Transfers between groups -1.408 1.408 0
13.338 10.513 23.851
Year-end stock (heads) 145.262 22.461 167.723
Finishers, weaners & sows sold (heads)
335.580 6.867 342.447
Biological assets provided as security
13.338 10.513 23.851
Movements 2024:
Gains/losses fair value changes
-3.065 -945 -4.010
Additions from production 66.801 2.252 69.053
Additions from purchases 0 1.175 1.175
Disposals from sales -57.909 -4.351 -62.259
Transfers between groups -916 916 0
Provision for herd culled in 2025
-1.981 -3.916 -5.897
16.268 5.644 21.913
Year-end stock after provision (heads)
165.769 12.202 177.971
Finishers, weaners & sows sold (heads)
326.322 6.266 332.588
Biological assets provided as security
16.268 5.644 21.913
Carrying amount December 31, 2023
Carrying amount December 31, 2024
Financial Highlights
Annual Report 2024
28
Notes – Consolidated Financial Statements
Notes to Financial Position
Note EUR '000
2024 2023
17 Assets held for sale
Land and buildings 294 315
Cost at December 31 294 315
18 Share Capital
The share capital comprises the following share classes:
A-shares:
Number beginning
number of shares
95.364.611 95.364.611
Number at December 31 in DKK 95.364.611 95.364.611
Each share has a value of DKK 1. No shares carry any special rights.
19
Provision for deferred taxes
367 140
-648 465
Adjustment on equity -481 -238
Provision for deferred tax December 31
-762 367
Deferred tax relates to tangible assets.
Adjustment for the year
recognized in profit or loss
Provision at begining of year
Assets held for sale is related to a agricultural land development project spread out
over Galati County in Romania. The land has never been part of the Group's operation
and a sale will not impact future earnings neither the future development of the
Group.
Note EUR '000
2024 2023
14 Non-current investments
Deposits / other financial assets 56 86
Cost at December 31 56 86
15 Inventories
Rawmaterials for feed 6.304 5.413
Other Consumables 2.062 2.139
Finished goods (feed a.o.) 850 827
Total inventories 9.216 8.379
Cost of sales recognized in profit or loss (feed) 31.763 28.038
Inventories provided as security 9.216 8.379
No write-down has been made on inventories.
16 Receiveables
Trade receiveables 7.140 6.685
Bad debt provision -528 -494
Trade receiveables, net 6.612 6.191
Receiveable from public grants 4.960 3.943
Receiveable compensation culled herd 7.520 0
Other receiveables 3.539 2.215
Bad debt provision -4 -144
Other receiveables, net 16.014 6.014
Write down, beginning of year 638 720
Exchange adjustments 0 -4
Additions for the year 211 161
Disposals for the year -317 -239
Write-down at December 31
532 638
Financial Highlights
Annual Report 2024
29
Notes – Consolidated Financial Statements
Notes to Financial Position
Loans with fixed interest
Loans with variable
interest
20 Interest bearing debt
Cash flow from financing activities:
EUR '000
Payable after
5 years
Payable
between 2
and 5 years
Payable
within 1 ye ar
Total 1/1 2023 Cash flows
Foreign
exchange
move ment
Fair value
changes
31/12
2023
Debt at December 31, 2023
Credit institutions, non-current:
0 14.893 5.416 20.309
Credit institutions, non-current:
23.963 -3.528 -126 0 20.309
Leasing debt: 0 467 638 1.105 Leasing debt: 1.980 -875 0 0 1.105
Other non-current debt: 0 3 2.512 2.515 Other non-current debt: 2.576 -56 -6 0 2.515
Credit institutions, current: 0 0 16.131 16.131 Credit institutions, current: 21.839 -5.702 -6 0 16.131
0 15.363 24.697 40.060 50.358 -10.160 -138 0 40.060
Debt at December 31, 2024
1/1 2024 Cash flows
Foreign
exchange
move ment
Fair value
changes
31/12
2024
Credit institutions, non-current:
0 9.330 5.563 14.893
Credit institutions, non-current:
20.309 -5.412 -4 0 14.893
Leasing debt: 0 762 427 1.189 Leasing debt: 1.105 84 0 0 1.189
Other non-current debt: 0 1.830 673 2.503 Other non-current debt: 2.515 -9 -3 0 2.503
Credit institutions, current: 0 0 22.172 22.172 Credit institutions, current: 16.131 6.041 -1 0 22.172
0 11.921 28.835 40.756
40.060 704 -8 0 40.756
Split of total outstanding interest bearing debt
EUR '000 2023
2024
Interest
binding
period in
months
Avg. effective
interst
Loans with fixed interest
EUR
7.500 0 12 3-4%
RON
68 3 up to 24 0%
DKK
2.508 2.500 6,5/8,0%
10.076
2.503
Loans with variable interest
EUR
28.879 34.386 1-6 4-5%
RON
1.105 3.868 1-6 6-7%
DKK
0 0 1 6%
29.984
38.254
Non-cash changes
Financial Highlights
Annual Report 2024
30
Notes – Consolidated Financial Statements
The Group does not engage in speculative currency positions. Introduction of the EUR
as functional currency of the consolidated financial statements has contributed to
reducing the overall impact of exchange rates.
Exchange rate adjustments of investments in foreign subsidiaries being independent
entities are recognized in other comprehensive income. Exchange rate risks related to
investments are normally not hedged, as the company’s management is of the opinion
that a current foreign currency hedging would not be the optimal solution with a view to
the overall risk and costs.
The Group is exposed to interest rate risks, as loans are primarily with variable interests
except for the smaller part with fixed interests described above. A reasonable possible
change in interest rates at 31.12.2024 would not have any material effect. An increase
of 1% of the interest will, on an isolated basis, affect profit for the year before tax by
approximately EUR 0.4 million (2023: approx. EUR 0.3 million).
The Group is highly exposed to global and EU development in sales prices of pork as
well as raw materials for feed (grain and protein). The most significant effect on the
Group's earnings is attributable to changes in the price of pig meat and price changes
relating to pig feed, which makes up 2/3 of the pig production costs. The Group
observes these developments closely.
A change of the pig meat price of 10% will, on an isolated basis, affect profit for the year
before tax by approximately EUR 5.7 million (2023: approx. EUR 5.6 million). A 10%
change in the feed price will, on an isolated basis, affect profit for the year before tax by
approximately EUR 3.2 million (2023: approx. EUR 2.8 million).
Notes to Financial Position
Note 23: Financial risks
Market risk
The Group's credit facilities are floating-rate credits, which exposes the Group to interest
rate fluctuations. According to Group policy, all financing of working capital and
investments in fixed assets are made on floating-rate terms. An old interest hedging of the
debt concluded via the same banks providing the underlying long-term facility expired
during 2024 and is no longer in place. 8 % of the Group’s debt is with fixed interest rate.
Activities abroad, earnings, cash flows and equity are not materially affected by currency
risks, as the foreign activities are predominantly transacting in their functional currency
(RON). Similarly, the external financing is denominated in EUR, which is the functional
currency of the parent entity and the presentation currency for the Group, except for
financing locally, which is in the functional currency of the subsidiary. Hence, there is no
currency risks related to external financing either. Consequently, material currency risks for
the Group are limited to translation risks related to foreign subsidiaries.
Note EUR '000
2024 2023
21
Deferred Income
Investments subsidies beginning 1.660 1.981
147 0
Amortization of investments subsidies -255 -321
1.553
1.660
22
Other liabilities
Employee related payables 412 492
Other payables 1.251 1.642
5.164
2.134
Deferred income primarily relates to grants for the construction of feedmills and
biosecurity barrieres on farms in Romania. Grants are recognised as income
concurrently with the underlying fixed assets being depreciated.
Correction investment subsidies received
prior years
Financial Highlights
Annual Report 2024
Other Financial Risks
31
Notes – Consolidated Financial Statements
Note 23: Financial risks - Continued
Liquidity risk
The Group ensures adequate cash resources by entering into framework
agreements in respect of current overdraft facilities. Existing agreements
subject to time limitation are irrevocable on the part of the banks prior to
maturity unless there is a breach of the terms of the loans according to the
loan agreements.
Maturity analysis for debt is stated in Note 20, to which reference is made. The
maturity analysis is disclosed according to category and class broken down on
maturity period.
Capital management
The objective of the Group's capital management is to ensure the Group's ability to continue
as a going concern in order to provide return on the shareholders' investments and establish
and maintain an optimal capital structure for the purpose of reducing the costs of borrowed
capital and maintain a basis for continued growth in the Group.
The Group's capital management is moreover partly controlled by loan agreements which
include specific requirements to the financial performance of the Group.
Total capital comprises equity and subordinate loan capital from the Parent company; as
shown in the consolidated balance sheet.
Credit risk
The Group is exposed to credit risks on receivables. The Group positively wants to minimize
its credit risks, which mainly relates to sales transactions. Credit insurance is taken out in
advance on more than 95% of the normal sales of slaughter pigs but a few special cases
and weaner sales reduces the total coverage. Credit insurance covers approx. 87% of the
total receivable end of 2024 (2023: 86%). Outstanding receivables are followed-up upon on
a current basis in accordance with Group procedures.
The expected credit losses on trade receivables are estimated by reference to past default
experience of the debtor and an analysis of the debtor’s current financial position, adjusted
for factors that are specific to the debtors and an assessment of both the current as well as
the forecast direction of conditions at the reporting date. The Group writes off a trade
receivable when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery, e.g. when the debtor has been
placed under liquidation or has entered into bankruptcy proceedings, or when the trade
receivables are over two years past due, whichever occurs earlier.
There has been no change in the estimation techniques or significant assumptions made
during the current reporting period.
EUR '000
Due above
5 years
Due Be twee n
2 and 5 years
Due within
1 year
Total Carrying
amount
Receivables at December 31, 2023
Trade receivables 0 0 6.249 6.249
Other receivables 0 0 4.535 4.535
Prepayments 0 460 367 827
0 460 11.151
11.611
Receivables at December 31, 2024
Trade receivables 0 0 6.612 6.612
Other receivables 0 148 15.867 16.014
Prepayments 0 278 308 586
0 425 22.788
23.213
Financial Highlights
Annual Report 2024
Notes to Consolidated Financial Statements
32
Notes – Consolidated Financial Statements
Volatility 25%
Exercise price (in the parent) 4.63 DKK
Risk free interest rate (pro anno) 0.0%
Life of the warrants 84 months
Note 24: Incentive program for group management
The entity’s parent DCH International A/S has granted warrants to members of the
entity’s management, that will allow them to purchase a number of shares in DCH
International A/S at a price agreed in advance.
A total of 2,904,000 warrants have been granted, of which 2,341,833 warrants are
allotted on December 31, 2024. All of the remaining 562,167 warrants is cancelled due
to the participants termination of employment.
The participants may exercise their warrants by purchasing shares during a four-week
period following the approval of the parent entity’s annual report in the years 2023 to
2027, after which the warrants will lapse without any further notice. The agreed
exercise price increases from 4.00 DKK per share in 2024 to 4.63 per share in 2027.
The fair value of each option is calculated using an option pricing model taking into
account the exercise price of the option, an estimate of the current price of the
underlying shares, the life of the option and the risk-free interest rate for the life of the
option. As the Group is unlisted, and no market information for comparable listed
entities are currently available, the current price of the underlying shares is
determined based on the equity per share according to the annual report for 2019.
Management believe that this is a reasonable approximation of the current market
price for the Group’s shares for the purpose of the measurement of the warrants, due
to the current market situation and the outbreak of ASF in Romania, and the fact that
all tangible assets and biological assets of the group are measured at fair value. In
determining the life of the option for the purpose of the measurement, it is assumed
that the employees will exercise the option as soon as possible.
The fair value of the warrants granted has been determined to be 0.47 DKK (0.06 EUR)
per warrant. The most significant inputs used in the measurement model are the
following:
Note EUR '000
2024 2023
25
Fees paid to auditors appointed by the General Assembly
Fees for statutory audits 87 103
Other Services 88 75
175
178
Audit fee are recognized as administrative costs
26 Related parties and ownership
FMB Holding A/S, Søvejen 33, 8752 Østbirk
Stenagergaard Invest ApS, Tellerupvej 15, 5591 Gelsted
Helge Maagaard, Ulfsundvej 25, Nees, 7660 Bækmarksbro
Tofthøj Agro A/S, Tofthøjvej 41, 7321 Gadbjerg
Other related parties
Lars V. Drescher CEO
Morten Beider CFO
Torben Svejgaard Chairman of the Board of Directors
Carsten Lind Pedersen Member of the Board of Directors
Ole Sloth Nielsen Member of the Board of Directors
Jytte Rosenmaj Member of the Board of Directors
Bo Holse Member of the Board of Directors
Transactions
27
Post balance sheet events
Only related party transactions not conducted on an arm's lenght basis are disclosed in the annual
report. No such transactions have been conducted in the financial year.
DCH International A/S's shareholders are legal and natural persons, and no individual shareholder
exercises control of the Group's activities. The following shareholders are registered as holding
more than 5% of the voting share capital or minimum 5% of the share capital:
There have been no significant post balance sheet events except for the ASF outbreak in January
2025 described in the management review.
Financial Highlights
Annual Report 2024
Accounting Policies
33
Notes – Consolidated Financial Statements
Note 28: Accounting Policies
Classification
The consolidated financial statements have been prepared in
accordance with International Financial Reporting Standards (IFRS)
as adopted by the EU and additional Danish disclosure
requirements for annual reports.
Recognition and measurement
Assets are recognized in the balance sheet when it is probable as a
result of a prior event that future economic benefits will flow to the
Group, and the value of the assets can be measured reliably.
Liabilities are recognized in the balance sheet when the Group has a
legal or constructive obligation as a result of a prior event, and it is
probable that future economic benefits will flow out of the Group,
and the value of the liabilities can be measured reliably.
On initial recognition, assets and liabilities are measured at cost.
Measurement subsequent to initial recognition is affected as
described below for each financial statement item.
Anticipated risks and losses that arise before the time of
presentation of the annual report and that confirm or invalidate
affairs and conditions existing at the balance sheet date are
considered at recognition and measurement.
Income is recognized in the income statement when earned,
whereas costs are recognized by the amounts attributable to this
financial year.
Consolidated financial statement
The annual report include DCH International A/S (Parent) and the
enterprises (group enterprises) that are controlled by the Parent,
see group chart in note 36. Control is achieved by the Parent, either
directly or indirectly, holding more than 50% of the voting rights or
in any other way possibly or actually exercising controlling
influence.
Basis of consolidation
The annual report is prepared on the basis of the financial
statements of DCH International A/S and its subsidiaries. The
annual report is prepared by combining uniform items. On
consolidation, intra-group income and expenses, intra-group
accounts and dividends as well as profits and losses on
transactions between the consolidated enterprises are eliminated.
The financial statements used for consolidation have been
prepared applying the Group’s accounting policies.
Subsidiaries’ financial statement items are recognized in full in the
annual report.
Investments in subsidiaries are offset at the pro rata share of such
subsidiaries’ net assets at the takeover date, with net assets having
been calculated at fair value.
Business Combinations
Newly acquired or newly established enterprises are recognized in
the annual report from the time of acquiring or establishing such
enterprises. Divested or wound-up enterprises are recognized in the
consolidated income statement up to the time of their divestment
or winding-up.
The purchase method is applied at the acquisition of new
enterprises, under which identifiable assets and liabilities of these
enterprises are measured at fair value at the acquisition date. On
acquisition of enterprises, provisions are made for costs relating to
decided and published restructurings in the acquired enterprise.
Allowance is made for the tax effect of restatements.
Identifiable intangible assets are recognized separately from
goodwill if they are separable or arise from contractual or other
legal rights.
Any remaining positive differences between cost and the fair value
of assets, liabilities and contingent liabilities acquired are
recognized in intangible assets in the balance sheet as goodwill.
Goodwill is not amortized but is tested for impairment on an annual
basis. Enterprises acquired are recognized in the consolidated
financial statements as from the date of obtaining control, whereas
enterprises sold are recognized up until the date of surrender of
control. Intra-group acquisitions of subsidiaries are made under the
pooling of interest's method.
If any remaining difference between cost and the fair value of
assets, liabilities and contingent liabilities acquired are negative, the
amount is recognized immediately in profit or loss as a bargain
purchase gain.
Foreign currency translation
The items recognized in the financial statements of each of the
group enterprises are measured at the functional currency used in
the primary economic environment in which the individual
enterprise operates. The functional currencies of the group
enterprises are the following: Romanian Lei (RON) for the Romanian
subsidiary and EUR for the parent company in Denmark.
The consolidated financial statements are presented in EUR, which
are the functional currency of the parent company and the
presentation currency of the Group. On initial recognition,
transactions in foreign currencies are translated at the exchange
rates at the date of transaction.
Exchange differences arising between the transaction date rates
and the rates at the date of payment are recognized in the income
statement as financial income and expenses.
Receivables, payables and other monetary items denominated in
foreign currencies are translated at the exchange rates at the
balance sheet date. Any differences between the exchange rates at
the balance sheet date and the exchange rates at the date at which
the receivable or the payable arose or was recognized in the most
recent financial statements are recognized in the income statement
as financial income and expenses.
On consolidation, exchange differences arising from the translation
of any net investment in foreign entities and of borrowings and
other financial instruments designated as hedges of such
investments are recognized in other comprehensive income. When
a foreign operation is sold or any borrowings forming part of the net
investment are repaid, the associated exchange differences are
reclassified to profit or loss as part of the gain or loss on sale.
Balance sheet items including goodwill relating to consolidated
enterprises that do not have EURO as their functional currency are
translated into EUR based on the exchange rates at the balance
sheet date, whereas the income statements of these enterprises are
translated at average rates of exchange. Exchange adjustments
arising on the translation of the opening equity at the exchange
rates at the balance sheet date and net profit/loss for the year at
the exchange rates at the balance sheet are recognized in other
comprehensive income over equity under a separate reserve for
exchange adjustments.
The Group used the following exchange rates for the translation
into EUR on 31 December 2024:
RON: Income statement 2024: 1 EUR = 4.976 RON
(2023: 1 EUR = 4.951 RON)
DKK: Income statement 2024: 1 EUR = 7.4600 DKK
(2023: 1 EUR = 7.4502 DKK)
Derivative financial instruments
On initial recognition in the balance sheet, derivative financial
instruments are measured at cost and subsequently at fair value.
Derivative financial instruments are recognized under other
receivables or other payables, respectively.
Changes in the fair value of derivative financial instruments
classified as and complying with the requirements for hedging the
fair value of a recognized asset or a recognized liability are
recorded in the income statement together with changes in the
value of the hedged asset or the hedged liability.
Financial Highlights
Annual Report 2024
Accounting Policies
34
Notes – Consolidated Financial Statements
Changes in the fair value of derivative financial instruments
classified as and complying with the requirements for hedging
future transactions are recognized in other comprehensive income.
When the hedged transactions are realized, the accumulated
changes are recognized as part of cost of the relevant financial
statement items.
Changes in the fair value of derivative financial instruments applied
for hedging net investments in independent foreign subsidiaries are
classified in other comprehensive income.
Income statement
Revenue
Revenue from sale of products is recognized when the Group has
transferred control of products sold to the buyer and it is probable
that the Group will collect the consideration to which it is entitled
for transferring the products. Control of the products is transferred
at a point in time, typically on delivery. Revenue is recognized net of
VAT, duties and sales discounts and is measured at fair value of the
determined consideration.
Investment grants are taken to income as actual payment is made
when the conditions of payment of grants have been approved by
the authorities.
Fair value adjustment biological assets
Fair value adjustments of biological assets include the adjustments
of the company’s biological assets for the financial year measured
at fair value.
Costs of feed, energy and other production costs
Costs of feed, energy and other production costs include the
consumption of raw materials and consumables used to achieve
net revenue.
Other external expenses
Other external expenses comprise expenses for distribution, sale,
administration, premises, bad debts, etc.
Staff costs
Staff costs comprise salaries and wages, social
security costs, pension contributions, etc. for the Company’s staff.
Amortization, depreciation and impairment losses
Amortization, depreciation and impairment losses relating to
intangible and tangible assets comprise amortization, depreciation
and impairment losses for the financial year, calculated on the
basis of the residual values and useful lives of the individual assets
and impairment testing as well as gains and losses from the sale of
intangible assets as well as property, plant and equipment.
Financial income and expenses
These items comprise interest income and interest expenses, the
interest portion of finance lease payments, payables and
transactions in foreign currencies, mortgage amortization
premium/allowance on mortgage debt, etc. as well as tax surcharge
and repayment under the Danish Tax Prepayment Scheme.
Tax
Tax for the year, which consists of current tax for the year and
changes in deferred tax, is recognized in the income statement by
the portion attributable to the profit/loss for the year and
recognized directly in equity by the portion attributable to entries
directly in equity. Current Danish income tax is allocated among the
jointly taxed entities proportionally to their taxable income (full
allocation with a refund concerning tax losses).
Balance Sheet
Intangible assets
Acquired intellectual property is amortized over the term of the
agreement, but over no more than 5 years. Intellectual property
rights etc. are written down to the lower of recoverable amount and
carrying amount.
Property, plant and equipment
Other fixtures and fittings, tools and equipment and property plant
and equipment in progress are measured at cost less accumulated
depreciation. Cost comprises the cost of acquisition and expenses
directly related to the acquisition and costs for set-up. In case of
assets of own construction, cost comprises directly attributable
costs of labor, materials, components and sub-suppliers.
The categories land and buildings are measured at fair value less
accumulated depreciation on buildings and impairment losses
recognized at the date of revaluation. Valuations are performed
with sufficient frequency to ensure that the carrying amount of a
revalued asset does not differ materially from its fair value.
A revaluation surplus is recorded in other comprehensive income
and credited to the asset revaluation surplus in equity. However, to
the extent that it reverses a revaluation deficit of the same asset
previously recognized in profit or loss, the increase is recognized in
profit and loss. A revaluation deficit is recognized in the income
statement, except to the extent that it offsets an existing surplus on
the same asset recognized in the asset revaluation reserve.
An annual transfer from the asset revaluation reserve to retained
earnings is made for the difference between depreciation based on
the revalued carrying amount of the asset and depreciation based
on the asset's original cost. Upon disposal, any revaluation reserve
relating to the particular asset being sold is recognized in retained
earnings without passing the income statement. Financial expenses
directly attributable to purchases, construction or production of a
qualifying asset are included as part of the cost of the asset. A
qualifying asset is an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale. The Group
uses the local, effective rate of interest on credit for construction
and overdraft facilities for the calculation of expenses for
capitalization.
Depreciation of a non-current asset is commenced when it is put
into use. Depreciation based on cost reduced by any residual value
is calculated on a straight-line basis over the expected useful lives
of the assets, which are:
Production buildings 25-40 years
Production plant and machinery 7-15 years
Operating fixtures, tools and vehicles 3-7 years
Land is not depreciated
The carrying amount of property, plant and equipment is reviewed
on an annual basis to determine whether there is any indication of
impairment other than that expressed by fair-value or depreciation.
If so, an impairment test is carried out to determine whether the
recoverable amount is lower than the carrying amount and the
asset is written down to its lower recoverable amount.
Biological assets
Agricultural activity is defined as an activity in which biological
transformation of biological assets for sale into agricultural
produce or another biological asset takes place. Agricultural
produce is defined as a harvested product of the Group’s biological
assets, and a biological asset is defined as living animals or crops.
The Group has assessed that its biological assets consists of
breeding herds of gilts, sows and boars, commercial heard of
slaughter pigs and unharvested crops.
On initial recognition and at subsequent reporting dates, biological
assets are measured at fair value less estimated costs to sell
unless fair value cannot be reliably measured on initial recognition.
Financial Highlights
Annual Report 2024
Accounting Policies
35
Notes – Consolidated Financial Statements
Gains or losses on initial recognition of a biological asset measured
at fair value less estimated costs to sell, and subsequent changes
in the fair value less estimated costs to sell relating to the
biological asset, are recognized in the income statement in the item
“Gains/losses on changes in the fair value of biological assets” in
the period in which the gain or loss arises.
Biological assets are recognized as current or non-current
biological assets depending on the production cycle of the
biological asset concerned. Generally, biological assets relating to
slaughter pigs and cropping are recognized as current assets.
Breeding herds of gilts, sows and boars are recognized as non-
current assets.
Investments in subsidiaries
Investments in subsidiaries are recognized and measured under the
equity method. This means that investments are measured at the
pro rata share of the enterprises’ equity value plus or less
unamortized positive, or negative goodwill and plus or minus
unrealized intra-group profits and losses.
The Parent’s share of the enterprises' profits or losses after
elimination of unrealized intra-group profits and losses and minus
or plus amortization of positive or negative goodwill is recognized
in the income statement and the net revaluation reserve under the
equity.
Upon distribution of profit or loss, net revaluation of subsidiaries is
transferred from the reserve for net revaluation to retained earnings
under the equity method.
The purchase method is applied in the acquisition of investments in
subsidiaries; see above description under annual report.
Inventories
Inventories are measured at the lower of cost under the FIFO
method and net realizable value. The net realizable value of
inventories is calculated at the amount expected to be generated by
sale in the process of normal operation with deduction of costs to
sell and costs of completion. The net realizable value is determined
allowing for marketability, obsolescence and development in
expected sales sum.
The cost of goods for resale, raw materials and consumables
equals landed cost.
The cost of finished goods and work in progress comprises the
cost of raw materials, consumables and direct labor as well as
directly attributable labor and production costs. These costs also
comprise maintenance and depreciation of machinery, factory
buildings and equipment used in the manufacturing process as well
as costs of production management.
Agricultural produce is initially recognized at fair value at the point
of harvest less estimated costs to sell, and subsequently in
inventories up until the point when it is sold to a third party or is
used internally as feed. The fair value of agricultural produce at the
point of harvest is measured on the basis of the market prices on
the markets on which the agricultural produce is expected to be
sold or used as feed.
Receivables
Receivables are measured at amortized cost, usually equaling
nominal value less write-downs for bad debts.
Prepayments
Prepayments comprise incurred costs relating to subsequent
financial years. Prepayments are measured at cost.
Lease commitments
Lease payments, not recognized under IFRS 16, are recognized on a
straight-line basis in the profit and loss account over the term of the
lease.
Other financial liabilities
Other financial liabilities are measured at amortized cost, which
usually corresponds to nominal value.
Deferred income
Deferred income comprises income received for recognition in
subsequent financial years. Deferred income is measured at cost.
Cash
Cash comprises bank deposits.
Deferred tax
Deferred tax is recognized on all temporary differences between the
carrying amount and tax-based value of assets and liabilities, for
which the tax-based value of assets is calculated based on the
planned use of each asset.
Deferred tax assets, including the tax base of tax loss
carryforwards, are recognized in the balance sheet at their
estimated realizable value, either as a set-off against deferred tax
liabilities or as net tax assets.
Income tax receivable or payable
Current tax payable or receivable is recognized in the balance sheet,
stated as tax calculated on this year's taxable income, adjusted for
prepaid tax.
Cash flow statement
The consolidated cash flow statement and the parent cash flow
statement are presented using the indirect method and shows cash
flows from operating, investing and financing activities as well as
the cash and cash equivalents at the beginning and end of the
financial year.
Cash flows from the acquisition and divestment of enterprises are
shown separately under cash flows from investing activities.
Cash flows from operating activities are calculated as operating
profit/loss adjusted for non-cash operating items, working capital
changes, financial income and expenses and income taxes paid.
Cash flows from investing activities comprise payments made in
connection with the acquisition and divestment of enterprises,
activities and fixed asset investments as well as acquisition,
development, improvement and sale, etc. of intangible assets and
property, plant and equipment.
Cash flows from financing activities comprise changes in the size
or composition of the Parent’s share capital and related costs as
well as the raising of loans, inception of finance leases, instalments
on interest-bearing debt, purchase of treasury shares, and payment
of dividend.
Cash and cash equivalents comprise cash.
Financial Highlights
Annual Report 2024
36
Parent Income Statement Parent Statement of Comprehensive Income
Parent Financial Statements
EUR '000
2024 2023
Note
Net profit for the year 2.387 6.494
Exchange adjustments of foreign enterprises -317 403
Hedge accounting -121 -61
Value adjustments in subsidiaries 727 2.179
Total comprehensive income 2.676 9.014
Items that may be reclassified subsequently
to profit or loss
Items that may not be reclassified
subsequently to profit or loss
2024 2023
Note
Revenue 27
0 0
Other external costs -18 -24
Gross profit
-18 -24
Staff Expenses
30
0 0
Operating profit (EBIT)
-18
-24
Income f. investments in subsidiaries
31
2.364 6.325
Financial income
32
238 430
Financial expenses
33
-190 -190
Profit before tax
2.394
6.541
Tax on profit for the year
34
-7 -48
Net profit for the year
2.387 6.494
Distribution of profit for the year:
Group Shareholders
2.387 6.494
Distributed
2.387 6.494
EUR '000
Financial Highlights
Annual Report 2024
37
Parent Statement of Financial Position
Parent Financial Statements
EUR '000
31/12
2024
31/12
2023
Assets Note
Investments in subsidiaries
35
88.801 86.146
Loan to subsidiaries
36
2.100 2.500
Fixed asset investments
90.901 88.646
Non-current assets
90.901 88.646
Receiveables group companies
36
1.209 1.248
Deferred tax assets -2 5
Receiveables
1.207 1.253
Cash and cash equivalents
2.148 1.685
Current assets
3.355 2.937
Total Assets
94.256 91.584
EUR '000
31/12
2024
31/12
2023
Equity and liabilities
Note
Share capital
18
12.767 12.767
67.741 65.086
Retained earnings
11.243 11.222
Equity
91.751 89.075
Other non-current liabilities
37
1.830 1.832
Long-term liabilities
1.830 1.832
37
670 671
Trade payables 0 0
Other payables
39
5 5
Short-term liabilities
675 677
Total liabilities
2.505 2.508
Total Equity and Liabilities
94.256
91.584
Short term portion, credit institutions
and other non-current
Reserve for net revaluation according
to the equity method
Financial Highlights
Annual Report 2024
Parent Statement of Changes in Equity
Parent Cash Flow Statement
38
Parent Financial Statements
EUR '000
Share Capital
Res e rve for
net re valuation
acc ording to
the e quity
me thod
Retaine d
earnings
Total Equity
12.767 56.073 11.222 80.062
0 557 -557 0
12.767 56.630 10.665 80.062
Share based payments 0 0 -22 -22
Net profit/loss for the year
0 6.325 191 6.516
Other comprehensive income
0 2.131 389 2.520
12.767 65.086 11.222 89.075
Net profit/loss for the year 0 2.364 24 2.387
Other comprehensive income 0 292 -3 289
12.767 67.741 11.243 91.751
Equity at December 31, 2024
Equity at January 1, 2023
Equity at December 31, 2023
Reclassified
Reclassified equity at January 1, 2023
EUR '000
2024 2023
Operating profit/loss (EBIT) -18 -24
Adjustment for non-cash items:
Change in receivables
39 -210
Change in trade and other payables
0 1
Cash flow from operations before financial items 21 -232
Financial income received
236 423
Financial expenses paid
-190 -190
Cash flow from operating activities
67 1
Repayment of loans from subsidiaries
400
-1
Cash flow from investing activities
400 -1
Repayment of borrowings
-3 -6
Cash flow from financing activities
-3 -6
Change in cash and cash equivalents
464 -6
Cash and cash equivalents, start year
1.685 1.690
Cash and cash equivalents at December 31
2.148 1.684
Liquidity available at December 31 2.148 1.684
Financial Highlights
Annual Report 2024
Notes – Parent
39
Notes to Parent Financial Statements
Note EUR '000
2024 2023
29 Fees paid to auditors appointed by the General Assembly
Fees for statutory audits
4 7
Other Services
0 0
4 7
Audit fee are recognized as other external costs.
30 Staff expenses
Wages and salaries 0 0
Share based payments
0 0
0 0
Average number of employees
0 0
31
Income from investments in subsidiaries
Premium Pork International A/S 2.364 6.325
2.364 6.325
32 Financial Income
Interest from financial institutions
45 36
Interest on loans to subsidiaries 190 387
Exchange rate adjustment 3 7
238 430
Reference is made to note 6 for infomation about remuneration to the
Executive Board and Board of Directors and to note 24 for incentive program
for the group management team.
Note EUR '000
2024 2023
33 Financial Expenses
Other financial expenses
190 190
Exchange rate adjustment
0 0
190 190
34 Income Taxes
Adjustment of deferred tax 7 48
7 48
35 Investment in subsidiaries
Cost beginning of year
21.060 21.060
Additions for the year
0 0
Cost end of period 21.060 21.060
Apraisal increases at beginning
65.086 56.233
Result for the period in subsidiaries 2.364 6.325
Exchange adjustments in subsidiaries -315 432
Share based paymemt 0 -22
Appraisal of subsidiaries 727 2.179
Hedging in subsidiaries -121 -61
Appraisal increases at end of period
67.741 65.086
Carrying amount at end of period
88.801 86.146
Ownership
interest in %
Premium Pork International A/S
100 88.801 86.146
88.801 86.146
The carrying amount of
investments in subdiaries i
specified as follows:
Financial Highlights
Annual Report 2024
(As is from December 31
st
, 2024)
Premium Porc SRL
DCH
International
A/S
Premium Pork
International A/S
Premium Vet Depot
SRL
Agro Investments Moldova
SRL
Premium Porc Negreni
SRL
Olsuin SRL
Note: All subsidiaries are 100% controlled and are all 100% owned directly or indirectly by DCH International A/S.
Premium Porc Sibiu
SRL
100%
100%
100%
29%
71%
53%
47%
100%
100%
100%
100%
100%
40
Premium Porc Feed
SRL
Consinterfin SRL
Degaro SRL
Company Information
Note 35 continued:
Corporate Structure
Financial Highlights
Annual Report 2024
41
Notes – Parent
Notes to Parent Financial Statements
Note 38: Financial risks
Reference is made to the description of financial risks for the Group in the Notes to the
Consolidated Financial Statements. The Parent Company is not considered to be subject
to any special financial risks other than those disclosed in the Notes to the Consolidated
Financial Statements.
Note 39: Assets charged and securities
Letter of subordination has been issued to banks in respect of loans granted to
subsidiaries of EUR 2,100k.
Note 40: Guarantees and other contingent liabilities
The parent has made a corporate guarantee for subsidiaries debt to credit institutions.
The guarantee is limited to EUR 37.1m. The actual debt was EUR 35.1m end of year.
Note 40: Guarantees and other contingent liabilities - continued
The Entity serves as an administration company in a Danish joint taxation arrangement.
According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is
therefore liable from the financial year 2016 for income taxes etc. for the jointly taxed
entities and from July 14, 2016, also for obligations, if any, relating to the withholding of
tax on interest, royalties and dividends for the jointly taxed entities. The total net liability
to the Danish Tax Administration appears from the financial statements.
Note EUR '000
2024 2023
36 Loans and receiveables, subsidiaries
Total loan to subsidiaries subordinated 2.100
2.500
Total receivables from subsidiaries 1.209
1.248
Total loans and receiveables, subsidiaries
3.309 3.748
37 Interest bearing debt
EUR '000
Payable
after 5 years
Payable
between 2
and 5 years
Payable
within 1
year
Total
Debt at December 31, 2023
Other non-current debt: 0 1.832 671 2.502
Credit institutions, current:
0 0 0 0
0 1.832 671 2.502
Debt at December 31, 2024
Other non-current debt: 0 1.830 670 2.500
Credit institutions, current:
0 0 0 0
0 1.830 670 2.500
41 Related parties and ownership
EUR '000
2024 2023
2.100 2.500
126 125
1.209 1.248
64 262
0 0
0 0
Management services charged to the Company:
O. services or reinvoiced costs from the Company
to subsidiaries:
Reference is made to note 26 (Note to the Consolidated Financial Statements) for
details of the Groups transactions with the related parties.
Interest for the year amounts to:
Other interest bearing debt and intercompany
amounts from the Company:
Outstanding amount at Year-end:
Financial expenses for the year amounts to:
The subsidiaries have provided management
services to the Company and the Company
provided other services to the subsidiaries:
Transactions between the
company and the subsidiaries:
The subsidiaries have obtained subordinate
loans from the Company:
Outstanding amount at Year-end:
Financial Highlights
Annual Report 2024
Annual Report 2024
Annual reportAuditor's report on audited financial statementsParsePort XBRL Converter2024-01-012024-12-312023-01-012023-12-31213800HW8TWW9K5AQL18Reporting class C, large enterpriseOpinionBasis for Opinion2025-04-032025-03-102025-03-1033963556213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember213800HW8TWW9K5AQL182024-01-012024-12-31213800HW8TWW9K5AQL182023-01-012023-12-31213800HW8TWW9K5AQL182024-12-31213800HW8TWW9K5AQL182023-12-31213800HW8TWW9K5AQL182022-12-31ifrs-full:IssuedCapitalMemberifrs-full:PreviouslyStatedMember213800HW8TWW9K5AQL182023-01-012023-12-31ifrs-full:IssuedCapitalMember213800HW8TWW9K5AQL182023-12-31ifrs-full:IssuedCapitalMember213800HW8TWW9K5AQL182022-12-31ifrs-full:RevaluationSurplusMemberifrs-full:PreviouslyStatedMember213800HW8TWW9K5AQL182023-01-012023-12-31ifrs-full:RevaluationSurplusMember213800HW8TWW9K5AQL182023-12-31ifrs-full:RevaluationSurplusMember213800HW8TWW9K5AQL182022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMemberifrs-full:PreviouslyStatedMember213800HW8TWW9K5AQL182023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800HW8TWW9K5AQL182023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800HW8TWW9K5AQL182022-12-31ifrs-full:ReserveOfCashFlowHedgesMemberifrs-full:PreviouslyStatedMember213800HW8TWW9K5AQL182023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800HW8TWW9K5AQL182023-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800HW8TWW9K5AQL182022-12-31ifrs-full:RetainedEarningsMemberifrs-full:PreviouslyStatedMember213800HW8TWW9K5AQL182023-01-012023-12-31ifrs-full:RetainedEarningsMember213800HW8TWW9K5AQL182023-12-31ifrs-full:RetainedEarningsMember213800HW8TWW9K5AQL182022-12-31ifrs-full:PreviouslyStatedMember213800HW8TWW9K5AQL182024-01-012024-12-31ifrs-full:IssuedCapitalMember213800HW8TWW9K5AQL182024-12-31ifrs-full:IssuedCapitalMember213800HW8TWW9K5AQL182024-01-012024-12-31ifrs-full:RevaluationSurplusMember213800HW8TWW9K5AQL182024-12-31ifrs-full:RevaluationSurplusMember213800HW8TWW9K5AQL182024-01-012024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800HW8TWW9K5AQL182024-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember213800HW8TWW9K5AQL182024-01-012024-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800HW8TWW9K5AQL182024-12-31ifrs-full:ReserveOfCashFlowHedgesMember213800HW8TWW9K5AQL182024-01-012024-12-31ifrs-full:RetainedEarningsMember213800HW8TWW9K5AQL182024-12-31ifrs-full:RetainedEarningsMember213800HW8TWW9K5AQL182022-12-31213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember1213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember2213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember1213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember2213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember3213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember4213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember5213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember1213800HW8TWW9K5AQL182024-01-012024-12-31cmn:ConsolidatedMember2iso4217:EUR