The Annual Report was presented and adopted at the Annual General Meeting of the Company on 11 May 2022
ANNUAL REPORT 2021
Contents
MANAGEMENT’S REVIEW
04 DK Company celebrates its 20th
anniversary with a record result
05 Financial Highlights of the Group
08 The Blooming Concept
10 Multi-Brand Strategy
12 Brands
13 Report on Profit and Loss
15 Risk Management
20 Statement on Responsibility
CONSOLIDATED FINANCIAL
STATEMENTS
22 Consolidated Financial Statements
27 Notes to the Consolidated Financial
Statements
PARENT COMPANY FINANCIAL
STATEMENTS
58 Parent Company Financial Statements
62 Notes to the Parent Company Financial
Statements
GROUP CHART AND
FINANCIAL RATIOS
73 Company Information
74 Group Chart
76 Definition of Financial Ratios
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
78 Management’s Statement
79 Independent Auditor’s Report
DK Company 02 / 81
DK Company 03 / 81
MANAGEMENT’S REVIEW
04 DK Company celebrates its 20th anniversary with a record result
05 Financial Highlights of the Group
08 The Blooming Concept
10 Multi-Brand Strategy
12 Brands
13 Report on Profit and Loss
15 Risk Management
20 Statement on Responsibility
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
DK Company celebrates
its 20th anniversary
with a record result
DK Company A/S was founded in 2001
and was in 2021able to celebrate its
20th anniversary with a record result of
DKK 612 million before tax, which is a
signi ficant increase compared to 2020’s
record profit of DKK 335 million before
tax. The result is based on record revenue
of DKK 3.9 billion against last year’s
revenue of DKK 3.3 billion, a growth
rate of 20%. The profit is in line with
expectations.
Founder and CEO Jens Poulsen states:
“Based on the four-month Covid-19
closure of many stores in Europe, we are
both grateful, humble and extremely
satisfied with the results for the year. It
is a fantastic team performance, under
the leadership of the three co- owners
Kasper Philipsen, Jens Obel and Søren
Lauritsen, where our employees’ flexibility,
willingness to change and fight have
made the difference. I am pleased that
we have a strong wholesale business
based on all three domiciles in Ikast,
Copenhagen and Vejle as well as healthy
growth in both online and retail”.
Furthermore, Jens Poulsen says that:
“Despite the record result, it has been
the most challenging year in our 20
years of history. First, we struggled
with closedowns in Europe, followed
by historic chaos in logistics and freight
systems around the world, while facing
significant supply chain challenges for
the entire textile industry. It is with great
satisfaction that we have managed to find
constructive solutions with our partners
and customers based on our philosophy
of creating win-win for everyone.”
OUTLOOK FOR 2022
Looking into 2022. DK Company sees a
solid increase in the order backlog and
expects 10% top line growth with a profit
before tax on a par with 2021.
DK Company has a positive outlook on
the coming years and assesses that it is
time to invest further in our market and
Jens Poulsen
Founder and Majority shareholder
in DK Company Group
Group CEO
Jens Obel Jørgensen
Shareholder DK Company Group
CEO Ikast and Copenhagen
Søren Lauritsen
Shareholder DK Company Group
CFO
Kasper Philipsen
Shareholder and CEO DK Company Vejle A/S
brand positioning. In addition, a doubling
of the storage and administration
capacity in Ikast has been initiated and
is expected to be completed this summer.
Significant amounts have, moreover,
been set aside for investments in IT and
digitisation.
Our ESG work continues with
undiminished intensity in collaboration
with our many international partners
as well as focus on and expansion of
initiatives that minimise empty revenue.
DK Company 04 / 81DK Company celebrates
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
20172018201920202021
3,912
3,254
3,388
3,056
2,960
20172018201920202021
629
347
199
238
251
20172018201920202021
181
192
15
-5
2
20172018201920202021
52.3
41.3
26.1
38.2
41.5
REVENUE (DKK MILLION)
OPERATING PROFIT-LOSS (DKK MILLION)
TOTAL CASH FLOW (DKK MILLION)
RETURN ON EQUITY (%)
DK Company 05 / 81Financial Highlights of the Group
Financial Highlights
of the Group
(DKK 1,000) 2021 2020 2019
2)
2018
3)
2017
3)
Revenue 3,911,731 3,254,339 3,388,058 3,056,871 2,959,694
Expenses -3,132,575 -2,753,003 -3,042,742 -2,783,303 -2,658,000
Other operating income 0 1,150 6,195 461 699
Other operating expenses -272 -4,079 -2,921 -3,450 -3,313
Profit/Loss before depreciation, amortisation and financial income and
expenses 778,884 498,407 348,590 270,579 299,080
Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment -150,233 -165,648 -153,692 -30,301 -33,649
Operating profit/loss before special items 628,651 332,759 194,898 240,278 265,431
Special items 0 14,656 3,618 -1,961 -14,167
Operating profit/loss 628,651 347,415 198,516 238,317 251,264
Financial income and expenses, net amounts -16,882 -12,605 -16,179 2,124 -14,659
Profit/Loss before tax 611,769 334,810 182,337 240,441 236,605
Tax on profit/loss for the year -137,791 -50,413 -34,193 -49,251 -55,010
Profit/Loss for the year incl. minority interests 473,978 284,397 148,144 191,190 181,595
Profit/Loss attributable to shareholders of the parent 430,144 262,147 136,692 175,426 165,848
Non-current assets 538,525 604,378 736,840 293,116 309,160
Current assets 1,495,168 1,279,217 1,043,361 1,049,502 952,906
Total assets 2,033,693 1,883,595 1,780,201 1,342,618 1,262,066
Equity of shareholders of the parent 925,068 718,991 549,582 497,123 421,597
Minority interests 76,620 53,121 25,757 27,887 22,618
Total equity 1,001,688 772,112 575,339 525,010 444,215
Non-current liabilities 173,357 261,438 537,943 227,080 113,847
Current liabilities 858,648 850,045 666,920 590,528 704,004
Total equity and liabilities 2,033,693 1,883,595 1,780,202 1,342,618 1,262,066
Cash flows from operating activities 691,841 656,197 360,667 93,091 190,450
Cash flows for investing activities -53,149 -37,381 -54,478 -20,191 -77,255
Cash flows from financing activities -457,441 -426,369 -291,413 -77,597 -110,818
Total cash flows 181,251 192,447 14,776 -4,697 2,377
Investments in property, plant and equipment -101,408 -75,175 -27,140 -25,823 -36,555
Depreciation on property, plant and equipment 145,149 160,943 146,178 27,701 30,041
Average number of employees 1,464 1,523 1,677 1,550 1,496
Financial ratios
Revenue growth (%) 20.2 -3.9 10.8 3.3 6.7
Gross margin (%) 57.3 54.9 53.0 54.8 55.8
Profit margin (%) 16.1 10.7 5.9 7.8 8.5
Solvency ratio (%) 45.5 38.2 30.9 37.0 33.4
Return on equity (%)
1)
52.3 41.3 26.1 38.2 41.5
Dividend per share, DKK 46.7 8.1 10.9 77.7 8.0
1) Ratios are calculated on the profit for the year distributed to the parent’s shareholders.
2) The figures are restated to reflect the effect of implementation of IFRS 16.
3) ) The comparatives have not been restated to reflect the effect of implementing IFRS 16 according to the transitional provisions of this standard.
Unless otherwise defined above, the financial highlights have been defined and calculated in accordance with the recommendations issued by the Danish Society of Financial Analysts.
Reference is made to the definition of financial ratios page at the end of the Annual Report.
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
DK CompanyCelebrate 20th 06 / 81
CELEBRATE 20TH
ANNIVERSARY
25 BRANDS
20.2%
Development
in revenue
(DKK MILLION)
The record result for 2021 is based on
Organic growth
DK Company has based
the business on selling to
more than 16,500 selling
points.
1
2
3
One of DK Company’s
strengths is its strong
geographical presence in
more than 35 countries
worldwide.
DK Company’s portfolio
consists of 433 shops:
fully and partly owned,
franchises, consession and
consignment.
32
Selling points
16,500
Countries
35
Shops
433
1,6%
10,7%
3,4%
3,8%
4,0%
8,4%
10,8%
23,5%
14,4%
19,2%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
DISTRIBUTION
BY COUNTRY
20212020201920182017
3,254
3,057
3,388
2,960
3,912
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
We believe
in the magic
of win win
DK Company25 brands 07 / 81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
The Blooming Concept
DK Company’s strategy is to be among
the leading multi-brand suppliers in
Europe in the mid-market. This strategy
has proven strong, as the diversification
into 25 brands has ensured increased
earnings and revenue over the past
20 years. Moreover, DK Company’s
collections are represented in 35
markets, which reduces dependence on
individual markets, thus providing the
DK Company Group with considerable
risk diversification, which helps to ensure
continuous growth.
DK Company’s sales channels are divided
into wholesale, retail and e-commerce.
The main activities of wholesale are the
design, marketing, sale and distribution
of brands to both women and men.
The retail segment consists of 165 shops,
which are wholly or partly owned by
DK Company or operated on a
franchise basis.
A number of brands have a total of 268
concession and consignment agreements
with a number of European department
stores. All the Group’s brands are sold on
the Group’s e-commerce platforms.
In addition, several brands are sold
through partners’ web shops.
The Group has its own designers and
buyers in Denmark, and the collections
are mainly produced in China, India,
Bangladesh and Turkey. In China,
Bangladesh and Turkey, DK Company
has its own purchasing departments.
Most of the collections are delivered to
warehouses in Denmark, from where they
are distributed to customers. A minor part
of the collections is delivered directly to
customers. Fulfilment centres in Poland
and Germany handles e-commerce
distribution.
DK Company sees more opportunities
for growth in all business areas. Being
present in 35 markets means there is
untapped potential for additional sales in
the markets already established.
Having 25 well-established brands
provides the foundation for implemen-
tation of the strategic ambition of being
able to offer different retail concepts.
The individual concepts, primarily
designed for women and based on the
Group’s most distinctive brands, are:
b.young, Fransa and !Solid. The retail
concepts Companys and Designers
Market embrace most of the Group’s
remaining women’s brands and constitute
the Group’s primary multi-brand
concepts.
DK Company offers its partners several
exciting single or multi-brand concepts
and a variety of brands which may be
adapted to the needs and customer
base of the individual shop.
The partner concept is defined as a close
collaboration with partners each selling
several of the Group’s brands.
BUSINESS CONCEPT AND MISSION
DK Company is a fashion group with the
will and courage to stand out. Believing
in soft values and being willing to follow
the Blooming Concept are the hallmarks
of our corporate culture. DK Company’s
dedicated staff know that growth and a
healthy economy depend on the Group’s
values and the active day-to-day efforts of
the staff.
DK Company’s multi-brand strategy is
primarily based on brands providing
‘value for money’. However, brands such
as InWear, Part Two, Karen by Simonsen
and Gestuz put DK Company in the high-
end part of the mid-market, where focus
is on ‘luxury for less’. In both cases, the
consumers should feel they get more than
they spend.
DK Company aims to build long-term ‘win-
win’ relationships between the Company,
its employees, customers and suppliers
– it is from here, the strategic concept of
‘4 x win’ has emerged. The relationships
are based on trust, proximity and mutual
respect for the entire value chain.
DK Company is a fashion group with the will and
courage to stand out. Believing in soft values and
being willing to follow the Blooming Concept
DK Company 08 / 81The Blooming Concept
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
THE BLOOMING CONCEPT
The strategy is based on ‘The Blooming
Concept’ visualised by a flower. The flow-
er is a living, organic symbol of growth.
It has healthy roots and a stem, which is
strong enough to support and nourish the
colourful flowers.
The retail flower is raised slightly above
the other three flowers of the Group’s
brands. This is an illustration of how all
brands must be able to think and act as
retailers to contribute to the development
of the overall business.
The flower requires care, attention and
constant development to maintain its
unique attraction, and to stay strong and
straight, which will enable us to make the
most any advantages and stand up to any
adversity. The stem is a symbol of
corporate functions such as business
solutions, IT, HR, logistics, warehouses
and the finance department. The root
system is the foundation of the flower,
which is made up of DK Company’s
suppliers and purchasing departments.
This foundation constitutes the
competitive nourishment for the petals,
illustrating the individual brands which
must flourish for the benefit of shops and
customers worldwide. Customers are
illustrated by bees buzzing around the
flowers. The bees should be attracted to
the many different brands of the flower,
which are also meant to make the Group
an attractive partner.
The purpose of the Blooming Concept
is for the entire value chain from root
system to bees to experience ‘the magic
of win-win’. The primary resources in
this context are people, networks and
relationships. Without these, the flower
loses both energy and attraction, and
thus risks losing earnings and growth.
People, networks and long-term relation-
ships are therefore crucial to the Group.
STRENGTH OF THE
BLOOMING CONCEPT
Several years of experience have
provided DK Company with consider-
able expertise in the integration and
consolidation of acquisitions. This has
been made possible by the root system
and the corporate functions of the flower,
which have provided the foundation of
and been adaptable to the increased
activity. Consequently, the foundation
has strengthened existing and new petals
alike by providing greater bargaining
power over suppliers in addition to the
cost-effective systems which help create
success for the individual brands.
While integrating and consolidating its
acquisitions, DK Company has managed
to adapt the overall portfolio of brands.
When, for various reasons, a brand
cannot be further developed or it no
longer matches the Group strategically, it
will be discontinued. This provides room
for further attention to existing brands or
introducing a new brand which can be
easily integrated into the Group.
By means of its support functions
and root system, the Group is able to
acquire and integrate complementary
enterprises and/or brands which
benefit from the stability of the stem,
thus enabling the individual brands to
maintain focus on developing prod-
ucts for the sales channels. Likewise,
the work on harmonising the Group’s
IT platform, finance function and pur-
chasing procedures has contributed to
establishing a plug-and-play set-up,
which makes future integrations more
effective both in terms of cost and time.
Through the development and acquisition
of retail concepts, the Group has
strengthened the sales channels of the
individual brands, and in combination
with the partnership agreements, the
wide range of brands allows customers
to do business with a significant partner,
thus creating a win-win situation.
By applying the knowledge brought to
the individual brands by retail, whole-
sale is drawn closer to the market
development, which enables the supply
of the right products at the right time.
The establishment of the Group’s own
e-commerce platform, which may be
used by all the Group’s brands, has
strengthened this particular sales channel
in recent years.
The collaboration with external
e-commerce partners has been increasing
in the past couple of years.
This experience forms the basis of DK
Company’s business concept – that is the
ability to integrate and develop brands in
a structured and cost-effective way.
DK Company 09 / 81
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
Multi-Brand Strategy
DK Company’s multi-brand strategy is based on a
portfolio of 25 brands with a broad geographical
presence in 35 markets. The Blooming Concept
ensures that all brands retain their unique identity
and design DNA. Synergies are created by using
a number of corporate functions. The realised
synergies have made the Group more resilient
with respect to generating positive results.
STRONG GEOGRAPHICAL PRESENCE
One of DK Company’s strengths is its
strong geographical presence. Our
collections are sold to 35 countries
worldwide. The strategic acquisitions
of reputable brands in recent years,
including InWear, PartTwo, Matinique,
Saint Tropez and !Solid, have
strengthened DK Company’s position
especially in Norway and Germany, which
are also the Group’s largest
growth markets.
In addition, DK Company have realised
rather significant revenues in the other
European markets, where a major part
of the revenue related to, for example,
Blend was generated in Southern Europe.
This contributes to a geographical
revenue diversification, which makes DK
Company less vulnerable to fluctuations
in the individual markets.
RETAIL
Historically speaking, most of the Group’s
shops have been run in collaboration with
a third party, either on a franchise basis
or through shared ownership with DK
Company.
DK Company’s portfolio consists of 165
shops, the majority of which is located
in Norway, primarily in large shopping
centres. In Norway, b.young is the
prevailing concept. A number of brands
have entered into a total of 268 conces-
sion and consignment agreements with a
number of European department stores.
When cooperating with a third party on
the operation of a shop, DK Company
uses one of two types of partnership
agreements defined as follows:
• Partly owned shops, where DK
Company participates by holding a
controlling share and running the shop
in cooperation with a local retailer.
• The franchise model, where partners
run shops in the local area through
presence and local knowledge.
The day-to-day business is supported
by DK Company’s retail organisation, for
example via initiatives such as a customer
club, advertising campaigns as well as
accounting and other finance services.
PARTNERSHIP AGREEMENTS
Historically, DK Company has based its
business on wholesale and is selling its
goods to more than 16,500 selling points
primarily in Europe. Most of the Group’s
revenue originates from such business.
In order to create maximum synergy
in the collaboration with external
distributors, DK Company has entered
into partnership agreements with the
Group’s distributors. The purpose of
such agreements is to ensure a close
collaboration and create win-win
situations between DK Company and its
distributors. The agreements support the
collaboration by affiliating several brands
through a multi-brand agreement.
It is DK Company’s ambition to become
the preferred partner in the mid- segment.
Our goal is therefore to expand the
number of multi-brand agreements with
the Group’s wholesale customers to
create unique opportunities for
both parties.
DK Company 10 / 81Multi-Brand Strategy
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
• Increased cooperation with the Group’s wholesale customers.
• It is DK Company’s ambition to become the preferred partner in the
mid-segment. Our goal is therefore to expand the number of multi-
brand agreements with the Group’s wholesale customers to create unique
opportunities for both parties.
• Strengthening and expansion of the Group’s retail concepts.
• The Group intends to develop retail concepts and establish more shops in stra-
tegically important markets.
• Development of existing markets and establishment in new markets.
DK Company will continue to generate growth through development of
the individual brands in the Company’s brand portfolio. In recent years, DK
Company has established sales activities in several new markets. DK Company
primarily intends to develop its sales activities in the existing markets, but also
to enter new markets when the opportunity arises. DK Company has launched
several brands on the Canadian market, thus commencing sales activities
in this market.
• Acquisition of enterprises, brands and retail chains. Acquisition of enterprises,
brands and retail chains is part of DK Company’s DNA. DK Company therefore
always pays attention to any opportunities arising in the market. Based on the
experience gained through recent years’ acquisitions, DK Company has created
a set-up which facilitates an efficient and fast process for acquisitions.
The Group intends to continue creating growth through acquisition of
complementary enterprises, brands and major retail chains.
• Expansion via e-commerce. Through the DK Company Online Group,
DK Company has an e-commerce platform which comprises all the brands
of the DK Company Group. As a consequence, the Group has the option of
expanding its e-commerce activities in the future. In addition, the ambition is
to expand the collaboration with leading e-commerce partners both through
partnerships and through Meinemarkenmode GmbH.
Strategy Summary
DK CompanyMulti-Brand Strategy 11 / 81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
Brands
According to its strategy, the Group will concentrate on brands offering value for money and
luxury for less, as well as offer retail concepts matching these criteria.
Each brand has its own DNA, identity, unique characteristics and functions as a separate entity.
The individual brands are continuously developed, in part to avoid overlap resulting in internal
competition, and in part to create brands and collections which complement and support each
other. This increases the opportunity for complementary sales.
The Group’s brands are; Atelier Rêve, Blend, b.young, Bon’A Parte, Casual Friday, Cream, Culture,
Fransa, FQ1924, Gestuz, Ichi, InWear, Kaffe, Kaffe Curve, Karen by Simonsen, Lounge Nine,
Matinique, My Essential Wardrobe, Part Two, Pulz Jeans, Soaked In Luxury, Saint Tropez, !Solid,
Tailor & Originals and The JoggConcept.
The Group’s retail concepts are: !Solid, b-young, Fransa and the multi-brand concepts COMPANYS
and Designers Market.
All brands and retail concepts are described in detail at: www.dkcompany.com under “Brands”
while the retail concepts are found under “Retail”.
DK Company 12 / 81Brands
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
REVENUE
The Group’s revenue was DKK 3.9
billion (DKK 3.3 billion), which is an
increase of DKK 657 million on 2021.
The increase was generated from
organic growth.
GROSS PROFIT
Gross profit was DKK 2.2 billion
(DKK 1.8 billion). The Group realised
a higher profit due to a focus on
‘ empty’ revenue with an ensuing
lower profit.
COSTS
Other external expenses constituted
DKK 788 million (DKK 646 million).
The increase is due to a higher level
of activity of the Group.
Depreciation, amortisation and
impairment losses for the year were
DKK 150 million (DKK 166 million).
SPECIAL ITEMS
In 2021, the Group generated
revenue of DKK 0 million (DKK 15
million) related to special items,
which primarily consist of r ecognising
negative goodwill arising from
the acquisition of a new activity as
income.
FINANCIAL INCOME AND EXPENSES PROFIT FOR THE YEAR TAX INVESTMENTS
Financial income and expenses
represent a net cost of
DKK 17 million (a net cost of
DKK 13 million).
Profit before tax was DKK 612 million
(DKK 335 million).
In the financial year, tax of
DKK 138 million (DKK 50 million) was
recognised in the income statement.
In 2021, DK Company invested
DKK 51 million (DKK 26 million) in
non-current assets.
Report on Profit and Loss
In 2021, DK Company’s revenue totalled DKK 3.9 billion
compared to last year’s revenue of DKK 3.3 billion.
Profit before tax was DKK 612 million (DKK 335 million),
corresponding to a profit margin of 16.1% (10.7%).
DK CompanyReport on Profit and Loss 13 / 81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
CASH FLOWS
TOTAL EQUITY
SUBSEQUENT EVENTS PENDING LAWSUITS
In 2021, the Group improved its total
liquidity by DKK 181 million after a
dividend off DKK 280 million paid out
in 2021.
The Group generated cash flows
from operating activities of DKK
692 million in 2021 compared to
DKK 656 million in 2020. The cash
flow development in 2021 is in part
attributable to improved earnings.
Cash flows from investing activities
constituted an expense of DKK 53
million compared to an expense of
DKK 37 million in 2020.
Cash flows from financing activities
were DKK 457 million compared to
DKK 426 million in 2020. In 2021, the
Group distributed dividends of
DKK 304 million (DKK 52 million).
The total cash flow changes for the
year are positive by DKK 181 million
compared to DKK 192 million
for 2020.
The Group’s total equity, exclusive of
minority interests, is determined at
DKK 1,002 million (DKK 772 million).
The solvency ratio is 45,5% (38.2%).
No subsequent events have occured
which have an impact on the Financial
Statement.
The Group has appealed a decision by
the Norwegian customs authorities in a
case concerning the customs clearance of
goods in Norway.
The Group has recognised the preliminary
decision of the authorities but expects to
win the appeal.
The Group has no other pending cases of
significance, except ongoing collection
proceedings.
PARENT
In 2021, the company realised reve-
nue of DKK 519 million (DKK 397
million). Profit before tax was DKK
436 million (DKK 255 million).
The results are considered
satisfactory.
Proposal for distribution of profit:
Net profit for the year of DKK 416
million (DKK 251 million) is proposed
distributed as follows:
DKK MIILLION 2021 2020
Reserve for net
revaluation according
to the equity method
-175 186
Retained earnings 123 65
Proposed dividend for
the year
468 0
Total 416 251
DK CompanyReport on Profit and Loss 14 / 81
2021
1,002
DKK MILLION
2020
772
DKK MILLION
TOTAL EQUITY
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
Risk Management
The following contains a description of general risk factors
related to conducting business, risks associated with the
fashion industry and special risks of the DK Company Group.
The risk factors and uncertainties mentioned include those
currently assessed by Management to be the most significant
risks. Effective tools have been implemented to manage and
address the various risks. The risk factors are not listed in
order of priority.
CORE RISKS
DK Company has defined the following
core risks: fashion risk, risk of loss of
brand value, risk of loss of intellectual
property rights, supplier risk, risks related
to logistics and inventories, insurance
risk, debtor risk and employee risk. These
risk factors are defined as inherent in the
Group’s operations.
DK Company manages the stated risks by
means of tools developed based on the
Group’s experience and competencies.
FASHION RISK
In the fashion industry, it is a basic
condition that a single collection may fail
from a fashion point of view.
DK Company diversifies such risk by
annually designing 6 to 12 collections
for 25 different brands. In addition, the
individual brands appeal to different
target groups, both in terms of gender,
style, price and age. Moreover, DK
Company’s collections are currently sold
in 35 markets.
The Group’s brands also vary in terms of
fashionability. In general, DK Company’s
collections are developed on a commer-
cial and market-oriented basis, as it is
crucial for the Group’s profitability that
the individual brands can be produced in
quantities sufficient to provide economies
of scale.
Experience shows that DK Company
has been good at responding in time to
changes in consumer preferences as a
result of shifting fashion trends.
DK Company’s success is closely related
to its ability to respond quickly and be
flexible about changes in the market.
RISK OF LOSS OF BRAND VALUE
Another basic condition of the fashion
industry is the risk of losing brand value,
that consumers lose interest in the brand
and that the brand loses status.
DK Company’s brands have all been
around for a number of years, and
over time, the individual brands have
developed a rather significant intangible
value. As the collections are continually
developed, the loss of brand value is a
constant risk if such development does
not follow market trends.
DK Company has therefore put systems
in place to ensure that the Group will
respond promptly to market signals
indicating that its brand development is
not on track. As an example, the sales
department is actively involved in the
development of collections. Analyses of
sales in own shops are also used as input
for design development.
Negative media coverage or bad
publicity among core consumers may
result in a significant loss of brand value.
Therefore, DK Company has prepared
corporate responsibility policies.
These policies reduce the risk of loss of
brand value. The policies are described in
detail in the CSR section of the webside.
It is crucial to the brand value that
consumers maintain the belief that our
products provide value for money and
luxury for less.
DK Company gives priority to quality
control areas, as the Group depends on
its continuous delivery of high-quality
products.
DK Company 15 / 81Risk Management
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
RISK OF LOSS OF INTELLECTUAL
PROPERTY RIGHTS
For historical reasons, the DK Company
A/S Group does not own all the trade-
mark rights to the individual brands.
Therefore, DK Company has defined a
number of procedures which ensure the
continued right to use the trademarks.
DK Company A/S has entered into
non-terminable agreements on the right
of use of the following trademarks and
figurative marks: Kaffe, Cream and Karen
by Simonsen. These trademarks belong
to Jens Poulsen Holding ApS, which is
controlled 100% by CEO Jens Poulsen.
Jens Poulsen Holding ApS makes
the trademark rights available to the
Company for a small fee on the condition
that the Company incurs all costs
related to maintaining and protecting
the registration of the trademarks and
figurative marks.
The right of use agreements between
DK Company A/S and Jens Poulsen
Holding ApS are independent from
Jens Poulsen’s affiliation with the
Company. Should a change of control
take place in Jens Poulsen Holding ApS
as a result of Jens Poulsen’s transfer of
shares in this company, whereby Jens
Poulsen will hold less than 51% of the
shares in Jens Poulsen Holding ApS, DK
Company A/S has an option to acquire
the registered trademarks at a price
assessed by an independent valuer.
The DK Company A/S Group owns the
trademark rights to Atelier Rêve, Blend,
Bon’A Parte, b.young, Casual Friday,
Culture, Gestuz, Fransa, FQ1924, ICHI,
InWear, Kaffe Curve, Lounge Nine,
Matinique, My Essential Wardrobe,
Part Two, Pulz Jeans, Saint Tropez,
Soaked in Luxury, Solid, Tailor & Originals
and The JoggConcept.
DK Company has an agreement with
a trademark agent regarding the
monitoring of any infringement of the
brands sold on the market.
SUPPLIER RISK
DK Company’s production is outsourced
to external suppliers, ensuring flexibility
and risk diversification. DK Company is
extremely experienced in international
sourcing.
By using suppliers in different countries,
the risk of failing supplies is further
diversified, as the Group is not depen-
dent on the conditions and developments
in a single production country. It is the
Group’s policy that a single supplier must
account for a maximum of 30% of the
Group’s total production.
DK Company ensures proximity to
the factories by means of the Group’s
purchasing departments in Turkey, China
and Bangladesh. The employees of the
local purchasing departments contribute
with extensive experience, knowledge
and competencies, which means that
the Group achieves the most optimal
combination of price, quality and delivery
reliability. This mitigates DK Company’s
operational risks.
DK Company 16 / 81Risk Management
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
RISKS RELATED TO LOGISTICS
AND INVENTORIES
A significant part of DK Company’s
goods are ordered in advance by the
Group’s distributors, which minimises risks
related to inventories. However, when the
industry is under pressure, orders may
be cancelled.
Fashion clothes have limited useful life,
and reliability of delivery is therefore a
core area for DK Company. According
to the agreements, the collections
must be delivered to the shops within
certain deadlines. If the products are
not delivered on time, there is a risk that
they will be returned, resulting in an
increased amount of excess goods and
write-downs. DK Company has logistical
procedures in place, limiting the risk
of capital being tied up in inventory of
excess goods.
The collections are delivered either on
hangers or in flat packages. Most of the
production from Asia is transported by
sea freight, and a minor part is shipped
by air freight and rail to Europe.
Products from European countries are
transported by truck. The geographical
distribution and the flexibility of the
option of transferring the cargo from ship
to air freight and rail reduce risks related
to logistics.
DK Company has modern warehouse and
logistics facilities suitable for both flat
packages and ready-made clothing on
hangers in the Danish cities Ikast, Brande,
Kolding and Vejle.
In terms of managing revenue related
to e-commerce, the Group moreover
has agreements with third parties on
warehouse and logistics facilities in
Germany and Poland.
Most of the Group’s goods are sold con-
tinuously during the season. At the end
of a season, the goods are transferred to
the Group’s own physical outlet shops in
Denmark, Sweden, Norway and Switzer-
land or to DK Company’s online outlet.
Additional excess goods are sold through
brokers in markets where DK Company is
not represented.
In their entirety, DK Company’s planning
tools, warehouse facilities, know-how and
experience significantly reduce the risks
related to logistics and inventories.
INSURANCE RISK
Based on the Group’s increased
geographical distribution and, hence, its
growing need to take out local insurance
in areas where the Group’s companies
are located, DK Company has entered
into an agreement with the international
insurance partner AON.
In cooperation with AON, the Executive
Board conducts an annual review and
assessment of risks and cover.
In the Executive Board’s assessment,
the insurance taken out is estimated to
provide reasonable insurance cover to the
Group’s assets and operational base in
case of damage.
DEBTOR RISK
DK Company has entered into an
insurance contract for credit insurance
of the Group’s customers. The contract
implies that approximately 60-70% of
the Group’s total net sales are made to
customers covered by credit insurance.
The sum insured is 90% of the Group’s
receivables from insured customers.
The remaining part of the Group’s
revenue is distributed on customers from
whom the Group has historically received
payments on time, or where prepayment
has been agreed for the orders placed.
This mitigates the risk of losses.
EMPLOYEE RISK
When key employees leave the Group or
become unable to discharge their duties,
DK Company is exposed to risk, since
the success of the Group, among other
things, depends on the efforts, industry
knowledge and qualifications of the
employees.
The Group is subject to risk if DK
Company is unable to keep recruiting,
developing and retaining the
right employees.
DK Company embraces the value of
the whole person and work-life balance.
Human resources are therefore a priority
area for DK Company’s management.
The employees constitute essential
knowledge resources to the Group.
The HR department has developed
policies and guidelines for the
development and supplementary
training of the staff.
DK Company invests time and
resources in the personal and professional
development alike of employees, for
example by offering coaching.
The above holistic initiatives minimise
the risk of losing employees, including
key personnel.
NON-CORE RISKS LITIGATION AND
ARBITRATION
DK Company may become a party
to litigation and arbitration proceed-
ings. Although DK Company follows
a common transfer pricing practice, it
is not guaranteed that tax authorities
around the world will adopt the same
interpretations when considering the
Group’s pricing in relation to inter-
company trade. Should DK Company’s
intercompany transfer pricing policies be
questioned, it may have a significantly
negative impact on the operating profit.
DK Company 17 / 81Risk Management
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
FINANCIAL RISKS
The financial risks of the Group are
defined as currency, interest rate and
liquidity risks.
CURRENCY RISK
The Group has prepared a corporate
currency policy to ensure that currency
risks are minimised. All material trans-
action risks are hedged. DK Company’s
currency risks are primarily hedged by
forward exchange contracts. Exchange
rate and interest rate fluctuations may
have a negative impact on the results.
DK Company’s financial statements
are presented in Danish kroner (DKK),
meanwhile, a significant portion of the
Group’s income and expenses are in other
currencies, including NOK, SEK, GBP,
CHF, EUR, CAD and USD, which means
that DK Company may be exposed to
adverse fluctuations in foreign
exchange rates.
Exchange rate fluctuations affect the
translated value of the operating results
generated outside Denmark. Fluctuations
may also affect the translation of the
value of assets and liabilities in foreign
currencies.
DK Company buys many of its products
from suppliers whose products are priced
in currencies other than DKK, especially
USD and EUR. In addition, DK Company
sells many products in currencies other
than DKK, especially NOK, SEK, GBP,
CHF, CAD and EUR. Unfavourable
exchange rate fluctuations may therefore
result in lower earnings.
INTEREST RATE RISK
DK Company’s interest rate risks are
related to the Group’s interest-bearing
assets and liabilities.
The Group’s interest rate risks are
managed by obtaining floating rate debt
and financial instruments adapted
to the interest rate risk of the
underlying investment.
LIQUIDITY RISK
The Group organises its cash resources
and capital structure to safeguard
planned investments and ensure that
the Group may continue as a going
concern. Reference is made to note 30
to the Consolidated Financial Statements
for further information on the Group’s
financial risks on the balance sheet date.
POLITICAL RISKS
DK Company may be affected by new
trade restrictions or changed customs
tariffs and quotas.
There is a risk that such changes may
increase DK Company’s expenses, which
in turn may have an adverse effect on
future profit from operating activities and
the Group’s financial position.
Management is not in a position to
anticipate whether any of DK Company’s
production countries will become subject
to change, and therefore, it is not
possible to assess the specific impact of
any changes.
DK Company conducts business in
several jurisdictions worldwide.
Local tax rules and interpretations thereof
are changed on an ongoing basis, and
such changes may be implemented
retroactively. A risk exists that changes
to tax rules or the interpretation of those
rules, in one or more jurisdictions, may
result in an increased effective tax rate of
the Group or otherwise affect the Group’s
profit from operating activities.
IT RISK
DK Company has developed reliable
IT systems, which ensure reliable
performance of day-to-day operations,
including strengthening of the delivery re-
liability and an efficient supply chain. Work
is ongoing to cover IT risks, including virus
attacks, system crashes, etc.
Today, DK Company has a corporate IT
platform. The platform provides overview,
focus and effectivity while simplifying the
day-to-day tasks. In addition, the platform
ensures consistency when benchmarking
the 25 brands.
DK Company 18 / 81Risk Management
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
Despite the record result, it has been the most
challenging year in our 20 years of history.
First, we struggled with closedowns in Europe,
followed by historic chaos in logistics and freight
systems around the world, while facing significant
supply chain challenges for the entire textile industry.
It is with great satisfaction that we have managed to
find constructive solutions with our partners and
customers based on our philosophy of creating
win-win for everyone.
DK Company 19 / 81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
DK Company 20 / 81
Statement on Responsibility
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
23 Income Statement
23 Statement of Comprehensive Income
24 Balance Sheet
25 Statement of Changes in Equity
Consolidated Financial Statements
DK Company 22 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Income Statement (DKK 1,000)
Note 2021 2020
3 Revenue 3,911,731 3,254,339
Cost of sales -1,669,454 -1,469,115
Gross profit 2,242,277 1,785,224
Other external expenses -788,221 -646,333
4 Staff costs -674,900 -637,555
5 Other operating income 0 1,150
6 Other operating expenses -272 -4,079
Profit/Loss before depreciation, amortisation and financial income
and expenses
7 Depreciation, amortisation and impairment losses on intangible assets as
well as property, plant and equipment -150,233 -165,648
Operating profit/loss before special items 628,651 332,759
8 Special items 0 14,656
Operating profit/loss 628,651 347,415
9 Financial income 14,130 12,184
10 Financial expenses -31,012 -24,789
Financial income and expenses, net amounts -16,882 -12,605
Profit/loss before tax 611,769 334,810
11 Tax on profit/loss for the year -137,791 -50,413
PROFIT/LOSS FOR THE YEAR 473,978 284,397
Profit is attributable to:
Shareholders of the parent 430,144 262,147
Minority interests 43,834 22,250
Statement of Comprehensive
Income (DKK 1,000)
2021 2020
Profit/Loss for the year 473,978 284,397
Items that may be reclassified to the income statement:
Exchange adjustments from translation of foreign entities 6,057 -7,685
Fair value adjustments of hedging instruments:
Value adjustment for the year -140,643 -165,941
Any value adjustments reclassified to the income statement 210,562 128,964
Tax on other comprehensive income -15,382 8,135
Other comprehensive income 60,594 -36,527
Total comprehensive income 534,572 247,870
Profit is attributable to:
Shareholders of the parent 486,569 228,154
Minority interests 48,003 19,716
DK CompanyConsolidated Financial Statements 23 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Note 31.12.2021 31.12.2020
NON-CURRENT ASSETS
12 Intangible assets 197,453 202,848
13 Property, plant and equipment 83,730 59,846
14 Leased assets 233,361 313,403
Other receivables 23,001 20,034
Receivables from group enterprises 980 980
16 Deferred tax assets 0 7,268
NON-CURRENT ASSETS 538,525 604,379
CURRENT ASSETS
17 Inventories 658,122 600,404
18 Trade receivables 236,243 321,324
19 Other contract assets 17,689 15,030
Receivables from associates 3,287 0
Corporation tax receivable 0 5,359
20 Other receivables 110,932 55,135
Prepaid expenses 20,976 15,297
Cash 447,919 266,668
CURRENT ASSETS 1,495,168 1,279,217
TOTAL ASSETS 2,033,693 1,883,595
Note 31.12.2021 31.12.2020
21
EQUITY
Share capital 60,000 60,000
Foreign currency translation reserves -13,141 -18,710
Hedging reserves 22,828 -28,076
Retained comprehensive income 386,821 705,777
Proposed dividend 468,560 0
Equity of shareholders of the parent 925,068 718,991
Minority interests 76,620 53,121
EQUITY 1,001,688 772,112
LIABILITIES
NON-CURRENT LIABILITIES
16 Deferred tax liabilities 19,948 10,590
14 Lease liabilities 152,794 214,026
23 Other payables 615 36,822
NON-CURRENT LIABILITIES 173,357 261,438
CURRENT LIABILITIES
14 Lease liabilities 94,429 109,872
Prepayments received from customers 2,435 2,788
19 Other contract liabilities 37,750 31,165
Trade payables 464,147 414,301
Corporation tax 15,903 18,408
23 Other payables 243,984 273,511
CURRENT LIABILITIES 858,648 850,045
LIABILITIES 1,032,005 1,111,483
TOTAL EQUITY AND LIABILITIES 2,033,693 1,883,595
20212020201920182017
1,884
1,343
1,780
1,262
2,034
TOTAL ASSETS (DKK MILLION)
20212020201920182017
444
525
575
772
1,002
Liabilities and equity (DKK 1,000)
Balance Sheet
Assets (DKK 1,000)
EQUITY (DKK MILLION)
DK CompanyConsolidated Financial Statements 24 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyConsolidated Financial Statements 25 / 81
STATEMENT OF CHANGES IN EQUITY (DKK 1,000)
Share
capital
Foreign currency
translation
reserves
Hedging
reserves
Retained
comprehensive
income
Proposed
dividend
Equity of
shareholders
of the parent
Minority
interests
Total
equity
Equity at 1 January 2021 60,000 -18,710 -28,076 705,777 0 718,991 53,121 772,112
Profit or loss for the year 0 0 0 -38,416 468,560 430,144 43,834 473,978
Exchange adjustments from translation of foreign entities 0 5,569 0 -48 0 5,521 536 6,057
Fair value adjustments of hedging instruments:
Value adjustment for the year 0 0 -130,626 0 0 -130,626 -10,017 -140,643
Value adjustments reclassified to the income statement 0 0 195,888 0 0 195,888 14,674 210,562
Tax on other comprehensive income 0 0 -14,358 0 0 -14,358 -1,024 -15,382
Other comprehensive income 0 5,569 50,904 -48 0 56,425 4,169 60,594
Comprehensive income for 2021 0 5,569 50,904 -38,464 468,560 486,569 48,003 534,572
Adjustment, beginning of year 0 0 0 60 0 60 0 60
Capital contribution to subsidiary 0 0 0 -618 0 -618 -130 -748
Acquisition and sale of minority interests 0 0 0 416 0 416 -340 76
Dividend 0 0 0 -280,350 0 -280,350 -24,034 -304,384
Changes in equity for 2021 0 0 0 -280,492 0 -280,492 -24,504 -304.996
Equity at 31 December 2021 60,000 -13,141 22,828 386,821 468,560 925,068 76,620 1,001,688
Equity at 1 January 2020 60,000 -11,796 -1,278 502,656 0 549,582 25,756 575,338
Profit or loss for the year 0 0 0 262,147 0 262,147 22,250 284,397
Exchange adjustments from translation of foreign entities 0 -6,914 0 -281 0 -7,195 -490 -7,685
Fair value adjustments of hedging instruments:
Value adjustment for the year 0 0 -148,646 0 0 -148,646 -17,295 -165,941
Value adjustments reclassified to the income statement 0 0 114,290 0 0 114,290 14,674 128,964
Tax on other comprehensive income 0 0 7,558 0 0 7,558 577 8,135
Other comprehensive income 0 -6,914 -26,798 -281 0 -33,993 -2,534 -36,527
Comprehensive income for 2020 0 -6,914 -26,798 261,866 0 228,154 19,716 247,870
Adjustment, beginning of year 0 0 0 32 0 32 4 36
Capital contribution to subsidiary 0 0 0 -5,875 0 -5,875 5,875 0
Acquisition and sale of minority interests 0 0 0 -4,212 0 -4,212 5,467 1,255
Dividend 0 0 0 -48,690 0 -48,690 -3,697 -52,387
Changes in equity for 2020 0 0 0 -58,745 0 -58,745 7,649 -51,096
Equity at 31 December 2020 60,000 -18,710 -28,076 705,777 0 718,991 53,121 772,112
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Cash Flow Statement (DKK 1,000)
Note 2021 2020
Profit/Loss before tax 611,769 334,810
24 Adjustments and non-cash transactions 169,923 157,733
25 Change in working capital 51,753 211,341
Cash flows from operating activities before financial income and expenses 833,445 703,884
Interest income received 7,817 1,355
Interest expenses paid -15,070 -15,315
Cash flows from operating activities before tax 826,192 689,924
Corporation tax reimbursed/paid -134,351 -33,727
CASH FLOWS FROM OPERATING ACTIVITIES 691,841 656,197
26 Acquisitions of enterprises 0 -12,255
Acquisition of intangible assets -83 -545
Acquisition of property, plant and equipment -51,040 -26,224
Disposal of property, plant and equipment 832 478
Acquisition of financial assets -3,788 -1,280
Sale of financial assets 930 2,445
CASH FLOWS FOR INVESTING ACTIVITIES -53,149 -37,381
Changes in other long-term debt -36,207 22,733
Repayment of debt to credit institutions 0 -200,000
Repayment of lease liabilities -116,850 -126,087
Changes in short-term bank debt 0 -70,628
Dividend paid to minority interests -24,034 -3,697
Dividend paid to shareholders of the parent -280,350 -48,690
CASH FLOWS FROM FINANCING ACTIVITIES -457,441 -426,369
CASH FLOW FOR THE YEAR 181,251 192,447
Cash and cash equivalents, beginning of year 266,668 53,571
Additions of cash related to acquisitions 0 20,650
CASH AND CASH EQUIVALENTS, END OF YEAR 447,919 266,668
Cash and cash equivalents include:
Cash 447,919 266,668
The cash flow statement cannot be immediately derived from the published financial statements.
DK CompanyCash Flow Statement 26 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
60 Note 24 Adjustments and non-cash transactions
60 Note 25 Change in working capital
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
61 Note 26 Acquisitions of enterprises
63 Note 27 Security
64 Note 28 Contingent assets and liabilities
64 Note 29 Financial risks
68 Note 30 Related parties
68 Note 31 Fee to auditors appointed at the Annual General Meeting
68 Note 32 Subsequent events
68 Note 33 New accounting regulation
69 Note 34 Shareholder information
69 Note 35 Adoption of the Annual Report for publication
Notes to the Consolidated Financial Statements
28 Note 1 - Accounting policies
36 Note 2 - Significant accounting estimates, assumptions and adjustements
INCOME STATEMENT
BALANCE SHEET
CASH FLOW STATEMENT
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
39 Note 3 - Revenue
40 Note 4 - Staff costs
40 Note 5 - Other operating income
40 Note 6 - Other operating expenses
41 Note 7 - Depreciation, amortisation and impairment losses on
intangible assets and property, plant and equipment
41 Note 8 - Special items
41 Note 9 - Financial income
41 Note 10 - Financial expenses
41 Note 11 - Tax on profit for the year
42 Note 12 - Intangible assets
43 Note 12 - Intangible assets, continued
43 Note 13 – Property, plant and equipment
44 Note 14 - Leases
45 Note 15 - Investments in other entities
47 Note 16 – Deferred tax
48 Note 17 - Inventories
48 Note 18 - Trade receivables
49 Note 19 - Contract assets and liabilities
49 Note 20 - Other receivables
49 Note 21 - Equity
50 Note 22 - Debt from financing activities
50 Note 23 - Other payables
50 Note 24 - Adjustments and non-cash transactions
50 Note 25 - Changes in working capital
51 Note 26 - Acquisitions of enterprises
52 Note 27 - Security
52 Note 29 - Financial risks
56 Note 30 - Related parties
56 Note 31 - Fee to auditors appointed at the annual general meeting
56 Note 32 - Subsequent events
56 Note 33 - New accounting regulation
56 Note 34 - Shareholder information
56 Note 35 - Adoption of the annual report for publication
DK Company 27 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
The Consolidated Financial Statements of
DK Company A/S for 2021 are prepared
in accordance with International Financial
Reporting Standards as adopted by the
EU and Danish disclosure requirements
for annual reports prepared in accordance
with the provisions applying to reporting
class C (large enterprises), cf the Danish
Executive Order on Adoption of IFRS
issued pursuant to the Danish Financial
State-ments Act. DK Company A/S is
a public limited company domiciled in
The Parent Company Financial State-
ments have been prepared in accordance
with the provisions of the Danish Financial
Statements Act applying to enterprises of
reporting class C (large enterprises).
The accounting policies of the parent are
described separately in Note 1 to the
Parent Company Financial Statements.
The Consolidated Financial Statements
are presented in Danish kroner (DKK),
which is the presentation currency for
the Group’s activities and the functional
currency of the parent.
The Consolidated Financial Statements
are presented based on historical cost,
with the exception of derivative financial
instruments measured at fair value.
The accounting policies of the Group
are described further below.
The accounting policies remain
unchanged from last year.
CONSOLIDATED FINANCIAL
STATEMENTS
The Consolidated Financial Statements
comprise DK Company A/S (parent) and
the companies (subsidiaries) over which
the parent has control.
The parent is considered to have control
of an entity if the Group is exposed, or
has a right, to variable returns from its
involvement with the entity and has the
ability to affect those returns through its
power over the entity. When assessing
whether the Group has control, de facto
control and any potential voting rights of
substance actually existing at the balance
sheet date are taken into account.
Entities in respect of which the Group
exercises significant influence, but not
control, over operational and financial
policies are classified as associates.
Significant influence exists where the
Group directly or indirectly holds or
controls more than 20% of the voting
rights but less than 50%.
The Group chart is shown at the end
of the annual report, to which reference
is made.
CONSOLIDATION PRINCIPLES
The Consolidated Financial Statements
are prepared on the basis of financial
statements of DK Company A/S and its
subsidiaries. The Consolidated Financial
Statements are prepared by combining
items of a uniform nature. The financial
statements used for consolidation are
prepared in accordance with the Group’s
accounting policies.
Upon consolidation, elimination is made
of intercompany income and expenses,
intercompany balances and dividends as
well as of realised and unrealised profits
and losses on transactions between the
consolidated enterprises.
The subsidiaries’ items are fully consol-
idated in the Consolidated Financial
Statements. Minority interests’ share of
profit/loss for the year and of equity in
subsidiaries that are not fully owned is
included as part of the consolidated profit
and equity, respectively, but is presented
separately.
MINORITY INTERESTS
Minority interests are initially measured
at fair value or their proportionate share
of the fair value of the acquired entity’s
identifiable assets, liabilities and contin-
gent liabilities.
In the first case, goodwill relating to the
minority interests’ ownership shares in
the acquired entity is recognised, while in
the latter case no goodwill is recognised
in relation to minority interests’ owner-
ship shares. The method is determined
for each transaction and disclosed in the
notes in connection with the description
of acquired entities.
Minority interests are subsequently
adjusted for their proportionate share
of changes in the subsidiary’s equity.
Comprehensive income is allocated to
the minority interests, even where the
minority interest becomes negative as
a result.
The acquisition or sale of minority
interests in a subsidiary which does
not result in the cessation of control is
treated as an equity transaction in the
Consolidated Financial Statements, and
the difference between the consideration
and carrying amount is allocated to the
parent’s share of equity.
BUSINESS COMBINATIONS
Newly acquired or newly established
e ntities are recognised in the Consoli-
dated Financial Statements from the
date of acquisition or establishment,
re spectively. The date of acquisition is
the time when actual control of the entity
acquired is taken over. Comparative
figures are not restated for newly
acquired entities. Entities sold or wound
up are recognised in the consolidated
comprehensive income statement
up to the date of disposal or date of
winding-up, respectively. The date of
disposal is the time when actual control of
the entity acquired is taken over by a third
party. Discontinued operations and assets
held for sale are presented separately.
Acquisitions of new entities of which the
Group obtains control are accounted
for using the purchase method under
which the identified assets, liabilities
and contingent liabilities of the newly
acquired entities are measured at
fair value at the time of acquisition.
Identifiable intangible assets are
recognised if they can be separated
from or arise from a contractual right.
However, non-current assets acquired
for resale purposes are measured at fair
value less expected selling expenses.
Note 1 - Accounting policies
DK CompanyNotes 28 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Restructuring costs are recognised in the
pre-acquisition balance sheet only if they
constitute an obligation for the acquired
entity. Deferred tax is recognised on the
revaluations.
Positive differences (goodwill) between,
on the one hand, the purchase consider-
ation, the value of minority interests in the
acquired entity and the fair value of any
previously acquired equity investments
and, on the other hand, the fair value
of the assets, liabilities and contingent
liabilities acquired are recognised as
goodwill under intangible assets.
Goodwill is not amortised but is tested for
impairment at least once a year. The first
impairment test is carried out before the
end of the year of acquisition.
On acquisition, goodwill is allocated
to the cash-generating units which
subsequently provide the basis for the
impairment test. Goodwill and fair value
adjustments related to the acquisition of
a foreign entity with a different functional
currency than the Group’s presentation
currency are treated as assets and
liabilities of the foreign entity and, on
initial recognition, translated into the
functional currency of the foreign entity
at the exchange rate of the date of
transaction.
Negative differences (negative goodwill)
are recognised in the profit for the year at
the time of acquisition.
The purchase consideration for an entity
consists of the fair value of the agreed
consideration in the form of assets
transferred, liabilities assumed and equity
instruments issued. If the final determi-
nation of the consideration is subject
to one or more future events or to the
fulfilment of conditions agreed, these will
be recognised at fair value at the time
of acquisition. Subsequently, contingent
purchase consideration, which is not an
equity instrument, is measured at fair
value through the income statement.
Costs incurred in connection with
acquisitions of entities are recognised
in special items during the year of
incurrence.
If, at the time of the acquisition, there
is uncertainty as to the identification
or measurement of acquired assets,
liabilities or contingent liabilities or
the determination of the purchase
consideration, initial recognition is made
on the basis of provisionally determined
values. If it subsequently turns out that
the identification or measurement of the
purchase consideration, acquired assets,
liabilities or contingent liabili-ties was
not correct on initial recognition, the
statement is adjusted retrospectively,
including goodwill, for 12 months after
the acquisition, and any comparative
figures are restated. After that, goodwill
is not adjusted. Changes in estimates of
contingent purchase consideration are
recognised in profit for the year.
Gains or losses on disposal or winding-up
of subsidiaries are calculated as the
difference between the consideration
received and the carrying amount of net
assets including goodwill at the time of
sale and expenses to sell or wind up.
The profit or loss calculated is recognised
in profit for the year, with accumulat-
ed exchange adjustments previously
recognised in other comprehensive
income.
TRANSLATION POLICIES
A functional currency is determined for
each of the Group’s reporting entities.
The functional currency is the currency
used in the primary economic environ-
ment in which the individual reporting
entity operates. Transactions in currencies
other than the functional currency are
transactions in foreign currencies.
On initial recognition, transactions in
foreign currencies are translated to the
functional currency at the exchange rates
at the dates of transaction. Trade recei-
vables, payables and other monetary
items denominated in foreign currency
which have not been settled at the
balance sheet date are translated to
the functional currency at the closing
rate. Property, plant and equipment,
intangible assets, inventories and other
non-monetary assets purchased in foreign
currencies and measured on the basis
of historical cost are translated to the
functional currency at the exchange rate
of the date of transaction.
Exchange rate differences arising
between the transaction date and the
date of payment and the balance sheet
date, respectively, are recognised in the
profit or loss as revenue and costs of
sale, respectively, in respect of exchange
differences relating to trade receivables
and trade payables. Other exchange
differences are recognised as financial
income and expenses.
On recognition in the Consolidated
Financial Statements of entities with
a functional currency other than
Danish kroner (DKK), the statements of
comprehensive income are converted
using average exchange rates for the
months, unless these differ materially
from the actual exchange rates at the
time of the transactions. In case of the
latter, the actual exchange rates will be
used. Balance sheet items are translated
at the exchange rates at the balance
sheet date.
Exchange differences arising from
the translation of the opening equity
and balance sheet items of foreign
entities at closing rates and exchange
differences from the translation of
comprehensive income from average
rates to closing rates are recognised in
other comprehensive income in a sepa-
rate foreign currency translation reserve
under equity. The exchange adjustment
is divided between the parent’s and the
minority shareholders’ shares of equity.
The reserve for foreign currency
translation adjustments includes all
exchange adjustments resulting from
the translation of financial statements
of entities using a functional currency
other than DKK. With respect to full
or partial disposal of wholly-owned
foreign entities, for which control is
ceded, exchange adjustments which are
recognised on an accumulated basis in
other comprehensive income and which
are attributable to the entity will be
reclassified from other comprehensive
income to profit/loss for the year with any
gains or losses generated on the disposal.
In respect of disposal of partially owned
foreign subsidiaries for which control is
ceded, the part of the foreign currency
translation reserve relating to minority
interests is not transferred to the income
statement. In case of a partial disposal
of foreign subsidiaries for which control
is not ceded, a proportion of the foreign
currency translation reserve is transferred
from the parent company shareholders to
the minority shareholders’ share of equity.
DK CompanyNotes 29 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are
recognised in the balance sheet as
from the trade date and are measured
at fair value at the date of settlement.
Subsequently, derivative financial
instruments are measured at fair value
at the balance sheet date. Positive
and negative fair values of derivative
financial instruments are included in other
receivables and other debt, respectively.
CASH FLOW HEDGE
The share of fair value adjustments of
derivative financial instruments classified
as and meeting the requirements for
hedges of expected future cash flows
and which ensure efficient changes to
future cash flows are recognised in other
comprehensive income in equity under
a separate hedging reserve until the
hedged cash flows affect results.
At this time, gains and losses relating to
such hedging transactions from other
comprehensive income are reclassified
and recognised in the same item as the
hedged transactions.
If the hedging instrument no longer
meets the hedge accounting criteria, the
hedging relationship will be discontinued.
The accumulated value change
recognised in other comprehensive
income is reclassified to the income state-
ment when the hedged cash flows affect
the results or are no longer probable.
The share of the value adjustment of
a derivative financial instrument which
is not part of a hedging relationship is
presented under financial income and
expenses.
OTHER DERIVATIVE FINANCIAL
INSTRUMENTS
Other derivative financial instruments that
do not meet the criteria for treatment
as hedging instruments are considered
trading portfolios and measured at fair
value with current recognition of fair
value adjustments in financial income and
expenses in the income statement.
TAX
Tax on profit/loss for the year
DK Company A/S is taxed jointly with
all its Danish subsidiaries and the
parent Jens Poulsen Holding ApS as
administration company. The current
corporation tax is allocated to the jointly
taxed enterprises in proportion to their
taxable incomes. The jointly taxed
companies are included in the on-account
taxation scheme.
Tax for the year consists of current tax
for the year and any changes in deferred
tax. In addition, tax for the year consists
of changes to tax of previous years and
changes in the assessment of provisions
for uncertain tax positions. Tax for the
year is recognised in profit for the year,
in other comprehensive income or
directly in equity, depending on where
the transaction to which tax for the year
relates is recognised.
Tax payable and deferred tax
Current tax liabilities and receivables
are recognised in the balance sheet as
tax calculated on the taxable income for
the year, adjusted for tax on the taxable
income of previous years and for taxes
paid on account.
The tax rates and tax rules in force on the
balance sheet date will be applied when
calculating current tax for the year.
Deferred tax is measured under the
balance sheet liability method on
the basis of all temporary differences
between the carrying amounts and
the tax bases of assets and liabilities.
However, no deferred tax is recognised
on temporary differences relating to
goodwill not deductible for tax purposes,
or other items where temporary
differences – except in the case of
business combinations – have arisen at
the date of acquisition and affect neither
the net profit or loss nor the
taxable income.
Deferred tax on temporary differ-
ences associated with investments in
subsidiaries is recognised, unless the
parent is able to control when deferred
tax is realised and it is likely that deferred
tax will not be triggered as current tax in
the foreseeable future.
Deferred tax is determined on the basis
of the contemplated use of the individual
asset and settlement of the individual
liability.
Deferred tax is measured on the basis
of the tax rules and tax rates of the
respective countries that under the laws
adopted or in reality adopted at the
balance sheet date would be applicable
when the deferred tax is expected to
crystallise as current tax. Changes in
deferred tax as a result of changes in tax
rates or tax rules are recognised in the
profit or loss, unless the deferred tax is
attributable to transactions previously
recognised in other comprehensive
income or directly in equity. If the latter is
the case, the change is also recognised in
other comprehensive income or directly
in equity.
Deferred tax assets, including the tax
base of tax loss carry-forwards, are
recognised under other non-current
assets at the values at which the assets
are expected to be realised, either by
set-off against deferred tax liabilities
or as net tax assets by set-off against
future positive taxable income. It will
be assessed on each balance sheet
date whether it is probable that in
future, sufficient taxable income will be
generated for the deferred tax asset to
be utilised.
Uncertain tax positions are measured,
depending on the type, either as a
probability-weighted average of possible
outcomes or as the most likely outcome.
Uncertain tax positions are recognised
in the tax items to which they relate, i.e.
under current tax payable/receivable
and/or deferred tax liabilities/assets,
respectively.
INCOME STATEMENT
Revenue
The Group’s revenue stems from the sale
of goods for resale in the textile industry.
Revenue is recognised when control of
the individually identifiable performance
obligation set out in the sales agreement
passes to the customer, which according
to the terms of sale occurs at the time of
delivery.
The Group’s sales agreements are divided
into individually identifiable performance
obligations, which are recognised and
measured separately at the fair value
of the agreed consideration. Although
sales agreements for the sale of goods
for resale often set out multiple per-
formance obligations, such obligations
are treated as a single performance
obligation owing to their concurrent
DK CompanyNotes 30 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
delivery. If a sales agreement contains
multiple performance obligations, the
total sales value of the sales agreement is
allocated proportionally to its individual
performance obligations.
Recognised revenue is measured at the
fair value of the consideration agreed,
exclusive of VAT, charges, etc. collected
on behalf of third parties.
All types of discounts granted are
recognised in revenue. Exchange
differences in receivables from the sale of
goods and services in foreign currencies
are recognised in revenue.
Fair value corresponds to the price
agreed discounted to net present value,
where the terms of payment exceed
12 months.
The part of total consideration that is
variable, for example in the form of
discounts, bonus payments, etc., is
only recognised in revenue when it is
reasonably certain that there will be no
reversal thereof in subsequent periods.
This also applies to the goods that are
expected to be returned by fulfilling
the Group’s return obligations based on
historical experience on actual return
percentages and product mix.
Customers are typically entitled to return
online purchases within two weeks,
but when returning Christmas presents
purchased between 1 November and 23
December, they have 14-90 days.
The terms of payment in the Group’s
sales agreements with customers depend
in part on the underlying performance
obligation and in part on the underlying
customer relationship. The Group’s pay-
ment terms are typically net 30 days, but
up to 90 days for large customers.
The Group does not typically enter into
sales agreements under which the credit
period exceeds 12 months. As a result,
the Group does not adjust the contract
price with a financing element.
Recognition of revenue is not associated
with significant estimates and
j udgements.
Cost of sales
Cost of sales include direct expenses
incurred to generate revenue for the year.
Cost of sales is recognised in line with
revenue. Change in inventories for the
year is included in the cost of sales.
Exchange differences relating to trade
payables in foreign currencies are
recognised in cost of sales.
Other external expenses
Other external expenses include oth-
er expenses incurred in the year for
procurement, sales, including commission
to external sales agents, distribution
and advertising, administration, costs for
the retention of patent rights and bad
debts, etc. Lease payments made under
operat-ing leases are recognised in other
external expenses on a straight-line basis
over the lease term. Development costs
which do not qualify for recognition in
the balance sheet are recognised in other
external expenses
Staff costs
Staff costs include salaries, consider-
ations, pensions and other staff costs
related to the Group’s employees,
including the Executive Board and Board
of Directors.
Income in the form of compensation
received from public authorities
Compensation received from public
authorities is recognised and set off
against other external expenses and staff
costs in line with the costs associated
with the compensation, once the Group
has obtained final commitment from the
compensation provider that it is likely
that the Group will meet the conditions
attached to the compensation and it is
highly likely that the compensation will
not have to be repaid.
Other operating income and expenses
Other operating income and expenses
comprise income and expenses of a
secondary nature to the activities of
the Group, including gains and losses
from current sale and replacement of
intangible assets and property, plant and
equipment. Gains and losses from the
disposal of intangible assets and property,
plant and equipment are calculated as
the difference between selling price less
selling costs and the carrying amount at
the time of disposal.
Depreciation, amortisation and impair-
ment losses on intangible assets as well
as property, plant and equipment
Depreciation, amortisation and
impairment losses on property, plant and
equipment and intangible assets include
depreciation of property, plant and
equipment and amortisation of intangible
assets, as well as impairment losses for
the year as a result of impairment.
Special items
Special items include major revenue
and one-off costs, e.g. transaction
costs, incurred in connection with the
acquisition of subsidiaries and activities,
restructuring costs and negative goodwill
recognised upon acquisition. These items
are presented separately for the sake of
com-parability in the income statement,
including to give a clearer view of the
profit/loss from operating activities.
Financial income and expenses
Financial income and expenses include
interest income and expenses, the
interest element of finance lease
payments, realised and unrealised
gains and losses, including amortisation
additions or deductions on liabilities
and transactions in foreign currencies
other than exchange differences in
trade receivables and trade payables
recognised under revenue and cost of
sales, respectively. Moreover, interest
charges and reimbursements under the
on-account tax scheme are recognised as
financial income and expenses.
Interest income and expenses are accrued
based on the principal and the effec-
tive interest rate. The effective interest
rate is the discount rate to be used to
discount the expected future payments
linked to the financial asset or liability in
order for the net present value of these
to correspond to the carrying amounts of
the asset and the liability, respectively.
BALANCE SHEET
Goodwill
Goodwill is initially recognised and
measured as the difference between, on
the one hand, the cost of the acquired
entity, the value of minority interests in
the acquired entity and the fair value
of any previously acquired equity
investments and, on the other hand, the
fair value of the assets, liabilities and
contingent liabilities acquired, see the
description in the consolidated financial
statements section.
DK CompanyNotes 31 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
When recognised, goodwill is allocated to
the activities of the Group that generate
independent income (cash-generating
units). The definition of cash-generating
units follows the management structure
and the internal financial management
policy and Group reporting.
Subsequently, goodwill is measured at
cost less accumulated impairment losses.
Goodwill is not amortised but is tested
for impairment at least once a year, see
below.
Other intangible assets
Other intangible assets with indefinite
useful lives are initially recognised and
measured as the difference between,
on the one hand, the cost of the acquired
entity, the value of minority interests in
the acquired entity and the fair value
of any previously acquired equity
investments and, on the other hand, the
fair value of the assets, liabilities and
contingent liabilities acquired, see the
description in the consolidated financial
statements section.
When recognised, the amount related
to trademark rights is allocated to the
activities of the Group that generate inde-
pendent income (cash-generating units).
The definition of cash-generating units
follows the management structure and
the internal financial management policy
and Group reporting. Subsequently,
trademark rights are measured at cost
less accumulated impairment losses.
Trademark rights are not amortised but
tested for impairment at least once a
year, see below.
Development projects relating to
products and processes that are clearly
defined and identifiable are recognised
as intangible assets if it is likely that the
product or process will generate future
economic benefits to the Group, and
the development costs of each asset can
be measured reliably. Other develop-
ment costs are recognised in the income
statement as incurred. The Group has
no development projects that meet the
criteria for recognition of intangible assets
in the balance sheet.
Software that is not an integral part of
the associated hardware is considered
intangible assets, while other software
without which the computer cannot
operate is included as property, plant and
equipment. Software under intangible as-
sets is measured at cost less accumulated
amortisation and impairment losses.
Software under intangible assets is
amortised on a straight-line basis over its
expected useful life, which is up to
three years.
Property, plant and equipment
Property, plant and equipment are
measured at cost less accumulated
depreciation and impairment losses.
Cost comprises the cost of acquisition,
expenses directly related to the
acquisition and setup costs up until the
time when the asset is ready for use.
Subsequent costs for, e.g., the
replacement of a component of a
tangible asset are recognised in the
carrying amount of the asset concerned
when it is probable that the costs incurred
will lead to future economic benefits for
the Group. The replaced components
are no longer recognised in the balance
sheet, and the carrying amount is
transferred to the income statement.
All other costs of ordinary repair and
maintenance are recognised in the
income statement as incurred.
Where parts of an item of property, plant
and equipment have different useful
lives, they are depreciated as separate
items of property, plant and equipment.
Depreciation is calculated using the
straight-line method over the estimated
useful lives of the assets, which are:
Buildings 20 - 30 years
Leasehold improvements 2 - 10 years
Plant and machinery 5 - 15 years
Other fixtures and fittings,
tools and equipment 2 - 7 years
Land is not depreciated
The basis of depreciation is the cost
of the asset less the residual value and
any depreciation. The residual value is
the amount expected to be obtained
from the sale of the asset today after
deduction of selling costs if the asset
was already of the age and condition
expected after its useful life.
The depreciation method, useful life and
residual value are determined at the date
of acquisition and reassessed annually.
If the residual value exceeds the carrying
amount of the asset, depreciation is
discontinued.
If the period of depreciation or the
residual value changes, the effect on
depreciation is recognised prospectively
as a change in the accounting estimate.
Property, plant and equipment are written
down to the lower of the recoverable
amount or carrying amount, see the
section on impairment below.
Leases
Leased assets and lease liabilities are
recognised in the balance sheet when,
under a lease agreement for a specific
identifiable asset, the Group is provided
with the leased asset during the lease
period, and when the Group acquires the
right to virtually all the economic benefits
of the use of the identified asset and the
right to make decisions regarding the use
of the identified asset.
Lease liabilities are initially measured
at the net present value of future lease
payments discounted at an alternative
borrowing rate. The following lease
payments are recognised as part of
the lease liability:
• Fixed payments.
• Variable payments that fluctuate in
step with changes to an index or
interest rate, based on the index or
interest rate applicable.
• Amounts due under a residual value
guarantee.
• The exercise price of call options
that, with high probability, Manage-
ment expects to exercise.
• Payments covered by an extension
option that, with high probability, the
Group expects to exercise.
• Penalties related to a termination
option unless, with high probability,
the Group expects not to exercise the
option.
The lease liability is measured at
amortised cost using the effective interest
methodology. The lease liability is
DK CompanyNotes 32 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
reassessed when changes in the underly-
ing contractual cash flows arise owing to
changes in an index or interest rate,
if there are changes in the Group’s
estimate of a residual value guarantee,
or if the Group changes its assessment
of whether the exercise of a purchase,
extension or termination option is
regarded as reasonably certain.
The leased asset is initially measured
at cost, which corresponds to the
value of the lease liability adjusted for
prepaid lease payments, plus directly
related costs and estimated costs for
demolition, refurbishment or the like and
less discounts received or other types of
incentive pay from the lessor.
Subsequently, the asset is measured at
cost less accumulated depreciation and
impairment losses. The leased asset
is depreciated over the shorter of the
lease term and the useful life of the
leased asset. Depreciation is recognised
on a straight-line basis in the income
statement.
The leased asset is adjusted for changes
in the lease liability as a result of changes
in the terms of the lease or changes in the
contract’s cash flows in line with changes
in an index or interest rate.
Leased assets are depreciated on a
straight-line basis over the expected lease
terms which are as follows:
Operating equipment, etc. 2 - 5 years
Shop leases and showroom 2 - 6 years
Owner-occupied properties 5 - 10 years
Warehouse properties 2 - 5 years
The Group presents leased assets and
lease liabilities separately in the balance
sheet.
The Group has chosen not to include
low-value leased assets and short-term
leases in the balance sheet. Instead, lease
payments made under such leases are
recognised in the income statement on
a straight-line basis.
The Group has decided to apply the relief
adopted in 2020 regarding temporary
rent concession resulting from COVID-19.
As a result, no remeasurement has been
made of contracts for which temporary
rent concessions or rent postponement
have been granted.
Impairment test of non-current assets
Goodwill and intangible assets with
indefinite useful lives
For goodwill and intangible assets with
indefinite useful lives, the recoverable
amount is determined annually regardless
of any indications of impairment. The first
assessment is carried out before the end
of the year of acquisition.
The carrying amount of goodwill is tested
for impairment together with other
non-current assets in the cash-generating
unit or the group of cash-generating units
to which the goodwill has been allocated
and is written down to the recoverable
amount over the income statement in
case of a higher carrying amount.
As a main rule, the recoverable amount
is calculated as the net present value of
expected future net cash flows from the
enterprise or activity (cash-generating
unit) to which the goodwill relates.
Other non-current assets
The carrying amounts of other non-
current assets with definite useful lives are
assessed annually to determine whether
there is any indication of impairment.
If this is the case, the recoverable amount
of the asset should be calculated in order
to determine the need for impairment
and the extent thereof. The recoverable
value is determined as the higher value
of the fair value of the asset and the fair
value of the cash-generating unit, less
expected selling costs or value in use.
The value in use is calculated as the
net present value of expected future
cash flows from the asset or the cash-
generating unit to which the asset relates.
Recognition of impairment loss in the
income statement
If the recoverable amount of the
asset and the cash-generating unit,
respectively, is lower than the carrying
amount, the carrying amount is written
down to the recoverable amount.
Impairment losses are recognised in the
income statement.
An impairment loss in respect of good-
will is not reversed. Impairment of
other assets is reversed to the extent
that changes occur in assumptions and
estimates leading to the impairment
losses. Impairment losses are only
r eversed to the extent that the new
carrying amount of the asset does not
exceed the carrying amount that the asset
would have had after depreciation/amor-
tisation had the asset not been im-paired.
Inventories
Inventories are measured at the lower
of cost using the FIFO method and net
realisable value.
The cost of goods for resale, raw
materials and consumables consists of
purchase price plus direct delivery costs.
The cost of finished goods comprises
the cost of raw materials, consumables,
external production costs and
delivery costs.
The net realisable value of inventories is
calculated as expected selling price with
deduction of costs incurred to execute
sales. The value is determined allowing
for marketability, obsolescence and
development in expected sales sum.
Receivables
Receivables include trade receivables
and other receivables. Receivables are
included in the category of loans and
receivables, which are financial assets
with fixed or determinable payments not
listed in an active market and which are
not derivative financial instruments.
Receivables are initially measured at fair
value and subsequently at amortised cost,
usually corresponding to nominal value
less provisions for bad debts. Impairment
allowances are made under the simplified
expected credit loss model under which
the total loss is recognised immediately
in profit/loss at the time of recognition in
the balance sheet based on the expected
loss over the lifetime of the receivable.
The financial asset relating to trade
receivables is monitored continuously
in accordance with the Group’s risk
management until realisation. Write-down
is calculated on the basis of the expected
loss rate computed from historical data
adjusted for estimates of the impact of
expected changes in relevant parameters.
Assessment of writedowns for estimated
bad debt is carried out using
a provisions account.
DK CompanyNotes 33 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
The revenue recognition of interest on
impaired receivables is calculated on
the basis of the impaired balance at the
effective interest rate of the individual
receivable or portfolio.
Other contract assets
Other contract assets include refund
assets.
Refund assets include the goods that
are expected to be returned by fulfilling
the Group’s return obligations based on
historical experience on actual return
percentages and product mix. Refund
assets are determined as cost of the
underlying items, minus any necessary
writedowns.
Prepaid expenses
Prepayments, recognised under assets,
include costs incurred relating to
subsequent financial years. Prepaid
expenses are measured at cost.
Dividends
Dividend is recognised as a liability when
a resolution approving the dividend has
been adopted by the Annual General
Meeting of shareholders (the time of
declaration).
Provisions
Provisions are recognised when, in
consequence of events occurring in
the financial year or previous years, the
Group is under a legal or constructive
obligation, and it is probable that the
financial resources of the Group will
be drawn on to settle the obligation.
Provisions are measured as best estimate
of the expenses necessary to settle the
obligations on the balance sheet date.
Provisions with expected maturity more
than one year after the balance sheet
date are measured at net present value.
Other contract liabilities
Other contract liabilities cover return
obligations concerning goods that are
expected to be returned based on
historical experience on actual return
percentages and product mix. Return
obligations are measured as the sales
price of the underlying items.
Other financial liabilities
Other financial liabilities include debt
to credit institutions, trade payables
and other debt to public authorities,
etc. Other financial liabilities are initially
measured at fair value less any transac-
tion costs. In subsequent periods, the
liabilities are measured at amortised cost
using “the effective interest method”
so that the difference between the
proceeds and the nominal value is
recognised in the income statement as
financial expenses over the loan term.
Pension obligations, etc.
The Group has entered into pension
agreements and similar agreements with
the main part of its employees.
As regards defined contribution plans,
fixed contributions are paid regularly
to independent pension companies,
etc. Contributions are recognised in
the income statement for the period in
which the employees have performed
the service entitling them to the pen-
sion contribution. Amounts due are
recognised in the balance sheet under
other liabilities.
The Group has no defined benefit plans.
Deferred income
Deferred income, recognised under
liabilities, includes received income
relating to subsequent financial years.
Deferred income is measured at cost.
Fair value measurement
The Group applies the fair value concept
in connection with certain disclosure
requirements and for the recognition of
financial instruments. Fair value is defined
as the price obtainable by selling an asset
or payable for transferring a liability in
a normal transaction between market
participants (‘exit price’).
Fair value is a market-based and not an
entity-specific measurement. The entity
applies the assumptions that market
participants would make use of when
pricing the asset or liability on the basis
of existing market conditions, including
assumptions regarding risks. Thus, when
calculating fair value, the entity’s intention
of owning the asset or settling the liability
is not taken into account.
The fair value assessment is based on
the primary market. If no primary market
exists, the assessment is based on the
most advantageous market, being the
market that maximises the price of the
asset or liability less transaction and
transport costs.
All assets and liabilities measured at fair
value or for which fair value is disclosed,
are categorised by the fair value
hierarchy, as described below:
• Level 1: Value based on the market
value of similar assets/liabilities in a
well-functioning market.
• Level 2: Value based on generally ac-
cepted valuation methods on the ba-
sis of observable market information.
• Level 3: Value based on generally
accepted valuation methods and
reasonable estimates (non-
observable market information).
CASH FLOW STATEMENT
The cash flow statement shows the cash
flows broken down by operating, invest-
ing and financing activities for the year,
changes for the year in cash and cash
equivalents as well as cash and cash
equivalents at the beginning and end
of the year.
The cash flow effect of acquiring and
selling entities is shown separately under
cash flows for investing activities.
The cash flow statement includes cash
flows related to business acquisitions as
from the date of acquisition, and cash
flows from businesses sold are recognised
up until the time of the sale.
Cash flows from operating activities
are presented according to the indirect
method and are calculated on the basis
of the profit/loss before tax adjusted
for non-cash operating items, change
in working capital, interest received and
paid, including the interest element on
recog-nised lease liabilities, as well as any
refunded and paid corporation tax.
Cash flows for investing activities include
payments in connection with purchases
and sales of enterprises and activities,
purchases and sales of intangible assets,
property, plant and equipment, and other
non-current assets, dividends received
and securities not presented as cash and
cash equivalents.
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
and repayment of loans, repayments
on interest-bearing debt and lease
commitments, purchases and sales of
treasury shares and minority interests,
DK CompanyNotes 34 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
and payment of dividend to shareholders
and minority shareholders.
Cash and cash equivalents include cash at
bank and in hand.
Cash flows in other currencies than
the functional currency are recognised
in the cash flow statement by using
average exchange rates for the months,
unless these differ materially from the
actual exchange rates at the time of the
transactions. In case of the latter, the
actual exchange rates will be used.
FINANCIAL RATIOS
The financial highlights have been
defined and calculated in accordance
with the recommendations issued by the
Danish Society of Financial Analysts.
Reference is made to the ‘Definition of
Financial Ratios’.
Notes DK Company 35 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Note 2 -
Significant accounting estimates, assumptions and adjustements
In applying the Group’s accounting
policies described in note 1,
Management needs to make assessments
and estimates of, as well as prepare
assumptions for, the carrying amounts
of assets and liabilities that cannot be
immediately derived from other sources.
The estimates and assumptions made
are based on historical experience
and other relevant factors which
Management considers appropriate
in the circumstances and which are
inherently uncertain and unpredictable.
The assumptions may be incomplete or
inaccurate, and unexpected incidents or
circumstances may arise. As a result of the
risks and uncertainties to which the Group
is exposed, actual results may differ
from the estimates made. Special risks
for the Group are discussed in Manage-
ment’s Review in the ‘Risk management’
section and note 29 ‘Financial risks’ to the
Consolidated Financial Statements.
The estimates made and the underlying
assumptions are continuously reassessed.
Changes to accounting estimates made
are recognised in the accounting period
in which the change takes place and in
future accounting periods if the change
affects both the period in which the
change takes place and subsequent
accounting periods.
SIGNIFICANT ACCOUNTING
ASSESSMENTS ASSOCIATED
WITH THE APPLICATION OF
ACCOUNTING POLICIES
In applying the Group’s accounting
policies, Management has not only
carried out the estimates described
below but also the following accounting
assessments, which have had a material
impact on the amounts recognised in the
Consolidated Financial Statements:
Determining lease terms
The lease term covers the non-terminable
period of the lease agreement, periods
subject to an extension option that the
Group reasonably expects to exercise,
and periods subject to a termination
option that the Group reasonably
expects not to exercise.
A number of the Group’s property leases
are subject to options that entitle the
Group to an extension of the agreement
for an additional lease term of an average
of three to four years.
On initial recognition of the leased asset,
the Group assesses whether the exercise
of the extension option is reasonably
certain. The Group will reassess this
estimate in the event of significant events
or significant changes in circumstances
within the Group’s control.
The assessment of the property lease
term is carried out individually for each
lease entered into. The assessment of the
lease term for retail properties includes
an assessment of the location, including
whether it is deemed a strategically
important location. It also includes an
assessment of the expected development
of the business environment at
the location.
Determination of discount rate of
leases
The Group uses its alternative borrowing
rate to measure future lease payments
at net present value. When assessing the
alternative borrowing rate, the Group
divided its portfolio of leased assets into
two categories; the Group considers the
leases and the underlying assets of each
category to have the same characteristics
and risk profile. The categories are as
follows:
• Operating equipment, etc.
• Properties.
The Group sets the alternative borrowing
rate for the above categories of leases in
connection with the initial recognition of
a lease. Moreover, the rate is fixed in
connection with subsequent changes
to the underlying contractual cash flows
arising from changes to the Group’s
assessment of whether the exercise of a
purchase, extension or termination option
is regarded as reasonably certain, or
where a lease agreement is modified.
When assessing the Group’s alternative
borrowing rate, the Group has calculated
its alternative borrowing rate for its leases
of properties located in Denmark on the
basis of the interest rate on a mortgage
bond with a maturity corresponding to
the term of the lease. The interest rate
on the financed part for which a
mortgage cannot be used is estimated on
the basis of a reference interest rate plus
a credit margin derived from the Group’s
existing credit facilities.
The Group has calculated its alternative
borrowing rate for leases of operating
equipment, etc. based on a reference
interest rate plus a credit margin derived
from the Group’s existing credit facilities.
SIGNIFICANT ACCOUNTING
ESTIMATES, ASSUMPTIONS AND
UNCERTAINTIES
Recognition and measurement of assets
and liabilities are often dependent on
future events subject to some uncertainty.
In this context, it is necessary to assume
a course of events, etc. that reflects
Management’s assessment of what
the most likely course of events will
be. In par-ticular, the assumptions and
uncertainties set out below are significant
in the Consolidated Financial Statements
for 2021 as they have had a significant
impact on the assets and liabilities
recognised in the Financial State-
ments and may require adjustments in
subsequent financial years if the courses
of events assumed are not realised
as expected. No major changes have
been made to the Group’s assessment
methods.
DK CompanyNotes 36 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Goodwill
In connection with the annual impairment
test of goodwill, or when there is an
indication of impairment, estimates are
made of whether the parts of the enter-
prise (cash-generating units) to which
goodwill relates will be able to generate
sufficient positive net cash flows in the
future to support the value of goodwill
and other net assets in that part of the
enterprise.
Given the nature of the business,
expected cash flows have to be estimated
for many years into the future, which
naturally leads to some uncertainty.
The uncertainty is reflected in the
selected discount rate. The value has not
been subject to impairment in relation to
the acquisition cost for the financial year.
Reference is made to note 12.
Trademark rights
In connection with the annual impairment
test of trademark rights, or when there is
an indication of impairment, estimates are
made of whether the parts of the enter-
prise (cash-generating units) to which the
trademarks relate will be able to generate
sufficient positive net cash flows in the
future to support the value of the trade-
mark rights and other net assets in that
part of the enterprise.
Given the nature of the business,
expected cash flows have to be estimated
for many years into the future, which
naturally leads to some uncertainty.
The uncertainty is reflected in the
selected discount rate.
Due to impairment of the trademark
Blend She the value of the trademark of
DKK 1 million has been impaired and
written down to DKK 0. The value of
the other trademark rights has not been
subject to impairment in relation to the
acquisition cost for the financial year.
Reference is made to
note 12.
2020
20202021
2021
6 1. 2
DKK MILLION
136.6
DKK MILLION
6 1.9
DKK MILLION
13 5.6
DKK MILLION
DK CompanyNotes 37 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Inventories
Measurement of the Group’s inventories
is significantly influenced by estimates
regarding the need for writedown
to a lower net realisable value and
the assumptions used to calculate it.
Measurement of inventories is based
on an individual assessment of
seasonality and age and the risk of
realisation assessed for the individual
product groups.
Receivables
Measurement of the Group’s trade
receivables is associated with accounting
estimates of indications of impairment.
The indication of impairment is based on
the simplified expected credit loss model
under which the total loss is recognised
immediately in the income statement at
the time of recognition in the balance
sheet. The impairment in particular
implies an estimate of the expected loss
rate calculated on the basis of historical
data adjusted for estimates of the
impact of expected changes in relevant
parameters.
VALUE (DKK MILLION) VALUE (DKK MILLION)
2020202120202021
76.9
68.9
658.1
600.4
2020202120202021
287.0
393.1
50.8
71.6
2020202120202021
287.0
393.1
50.8
71.6
2020202120202021
76.9
68.9
658.1
600.4
DEPRECIATION (DKK MILLION) DEPRECIATION (DKK MILLION)
DK CompanyNotes 38 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
NOTE 3 - REVENUE (DKK 1,000)
In terms of geography, consolidated revenue may essentially be broken down as follows:
Growth Growth Share Share
Revenue 2021 2020 2021 2020 2021 2020
Denmark 754,186 583,893 29.2% -26.5% 19.2% 17.8%
Norway 562,264 479,930 17.2% -15.9% 14.4% 14.7%
Germany 919,706 766,781 19.9% 56.3% 23.5% 23.6%
Sweden 422,316 358,043 18.0% -6.4% 10.8% 11.0%
Benelux 329,837 286,534 15.1% -14.7% 8.4% 8.8%
The UK 157,403 135,905 15.8% -3.1% 4.0% 4.2%
Canada 150,278 97,347 54.4% -16.6% 3.8% 3.0%
France 134,115 100,946 32.9% -9.9% 3.4% 3.1%
Other markets in Europe 417,634 410,506 1.7% -1.0% 10.7% 12.6%
Other markets outside Europe 63,992 34,454 85.7% 13.3% 1.6% 1.1%
3,911,731 3,254,339 20.2% -3.9% 100.0% 100.0%
The reported growth rates are calculated including the effect
of acquired entities.
The Group is engaged in the sale of clothing within a number
of brands, all of which are categorised as 'Fashion Clothing'.
Thus, the Group has no products or services that differ signifi-
cantly from each other, and therefore no separate information
is provided about individual products or services.
The entire Group revenue relates to the sale of goods and is
recognised at a specific time.
Primary customers
No single customer accounts for more than 10% of
the consolidated revenue.
1,6%
10,7%
3,4%
3,8%
4,0%
8,4%
10,8%
23,5%
14,4%
19,2%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
1,1%
12,6%
3,1%
3,0%
4,2%
8,8%
11,0%
23,6%
14,7%
17,8%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
20202021
DK CompanyNotes 39 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
NOTE 4 - STAFF COSTS (DKK 1,000) 2021 2020
Wages and salaries 601,279 575,309
Defined contribution plans 47,033 36,648
Other social security expenses 26,588 25,598
674,900 637,555
Average number of employees 1,464 1,523
The above includes the Group's costs for furloughed employees during COVID-19 in the amount of DKK 24 million (DKK 63
million) less compensation in the amount of DKK 7 million (DKK 37 million).
Remuneration to the Board of Directors and Executive Board:
2021 Board of Directors Executive Board Total
Wages and salaries 475 6,243 6,718
Defined contribution plans 0 529 529
475 6,772 7,247
2020 Board of Directors Executive Board Total
Wages and salaries 625 6,325 6,950
Defined contribution plans 0 528 528
625 6,853 7,478
The above amounts include the value of employee benefits.
NOTE 5 - OTHER OPERATING INCOME (DKK 1,000) 2021 2020
Gain on disposal of intangible assets and property, plant and
equipment
0 1,150
0 1,150
NOTE 6 - OTHER OPERATING EXPENSES (DKK 1,000) 2021 2020
Loss on disposal of intangible assets and property, plant and
equipment
272 4,079
272 4,079
20212020201920182017
1,523
1,550
1,677
1,496
1,464
AVERAGE NUMBERS OF EMPLOYEES
DK CompanyNotes 40 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
NOTE 7 - DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSS-
ES ON INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIP-
MENT (DKK 1,000)
2021 2020
Software 5,083 4,705
Buildings 476 359
Leasehold improvements 12,791 14,778
Other fixtures and fittings, tools and equipment 11,693 12,740
Leased assets 120,189 133,066
Total depreciation and amortisation 150,232 165,648
NOTE 8 - SPECIAL ITEMS (DKK 1,000) 2021 2020
Negative goodwill related to acquisitions 0 14,656
0 14,656
NOTE 9 - FINANCIAL INCOME (DKK 1,000) 2021 2020
Other interest income 7,817 1,354
Interest income from financial assets not measured at fair value
through profit or loss
7,817 1,354
Foreign exchange gains and fair value adjustment of financial instruments 6,313 10,830
14,130 12,184
NOTE 10 - FINANCIAL EXPENSES (DKK 1,000) 2021 2020
Interest expenses, lease liabilities 4,721 6,594
Other interest expenses 10,349 8,721
Interest expenses from financial liabilities not measured at fair value
through profit or loss 15,070 15,315
Foreign exchange loss and fair value adjustment of financial instruments 15,942 9,474
31,012 24,789
DK CompanyNotes 41 / 81
NOTE 11 - TAX ON PROFIT FOR THE YEAR (DKK 1,000) 2021 2020
Current tax for the year 139,025 50,790
Change in deferred tax for the year 2,730 1,484
Adjustment of tax relating to previous years -3,964 -1,861
Tax on profit for the year 137,791 50,413
The tax on profit (loss) for the year can be explained as follows:
Tax rate of 22.0% on the profit/loss before tax 134,589 73,658
Adjustment of calculated tax in foreign group enterprises in relation to
22.0% and profit from associates 14,033 4,362
Tax effect of:
Non-taxable income -124 -4,522
Non-deductible expenses 487 566
Deferred tax asset not recognised -7,230 -21,790
Adjustment of tax relating to previous years -3,964 -1,861
Tax on profit for the year 137,791 50.413
Effective tax rate 22.5% 15.1%
Total tax for the year includes the following:
Tax on profit/loss for the year, see above 137,791 50,413
Tax on other comprehensive income, see below 15,382 -8,135
153,173 42,278
Tax on fair value adjustments of hedging instruments 15,382 -8,135
Tax on other comprehensive income 15,382 -8,135
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 42 / 81
NOTE 12 - INTANGIBLE ASSETS (DKK 1,000) Goodwill Trademark rights Software
Cost at 1 January 2021 61,734 136,591 11,853
Foreign currency translation adjustments 688 0 0
Additions at cost 0 0 83
Disposals at cost 0 0 -99
Cost at 31 December 2021 62,422 135,591 11,837
Amortisation and impairment losses at 1 January 2021 560 0 6,770
Amortisation for the year 0 1,000 5,083
Reversal of assets sold 0 0 -16
Amortisation and impairment losses at 31 December 2021
560 1,000 11,837
Carrying amount at 31 December 2021 61,862 135,591 0
Cost at 1 January 2020 62,919 136,591 23,942
Foreign currency translation adjustments -59 0 -1
Additions relating to acquisitions 0 0 0
Additions at cost 545 0 0
Disposals at cost -1,671 0 -12,088
Cost at 31 December 2020 61,734 136,591 11,853
Amortisation and impairment losses at 1 January 2020 560 0 14,146
Amortisation for the year 0 0 4,705
Reversal of assets sold 0 0 -12,081
Amortisation and impairment losses at 31 December 2020
560 0 6,770
Carrying amount at 31 December 2020 61,174 136,591 5,083
Goodwill:
Goodwill relating to acquisitions is, at the time of the acquisition, allocated to the cash-generating units which are expected to
achieve economic benefits from the acquisition.
The total carrying amount of goodwill is allocated to the following cash-generating units:
The recoverable amounts of each cash-generating unit to which the goodwill amounts are allocated are determined on the basis
of the calculation of the units’ value in use, i.e. discounting of expected future cash flows that are compared with the carrying
amounts. Future cash flows are based on the Company’s business plans and budgets/forecasts for the financial years 2022 -
2025 (2020: 2021 - 2024). The main parameters when calculating the value in use are revenue, EBITDA and the discount rate.
In calculating the value in use, a growth factor has been used during the terminal period of 2% at 31 December 2021 and 2%
at 31 December 2020 and a discount rate before tax of 11.9% at 31 December 2021 and 15.26% at 31 December 2020.
DK Company Cph Group incl. DK Company Canada Inc.:
The cash-generating unit 'DK Company Cph Group including DK Company Canada Inc.' holds the four brands: InWear,
Matinique, Part Two and Soaked in Luxury each of which are individual cash-generating units. Determination of the recoverable
value of this cash-generating unit is based on a positive development of the activity owing to continued focus on and
positioning of the brands in the market In addition, an expectation of improved cost-effectiveness has been incorporated over
the period as a result of continued optimisation in connection with increasing integration of the Group’s strategy in the form of
‘The Blooming Concept’.
Companys Retail AG:
The cash-generating unit 'Companys Retail AG' covers the operation of the Companys chain's retail activities in Switzerland.
Determination of the recoverable value of this cash-generating unit is based on a positive development of the activity owing to
continued focus in the market. The Company is intended to play a central role in the marketing of the Group’s brands to the
Swiss end user.
The impairment test has not given rise to any indications of impairment for neither 2021 nor 2020.
Carrying amount
31.12.2021 31.12.2020
DK Company Cph Group incl. DK Company Canada Inc. 32,515 32,498
DK Company Con A/S 953 953
Earnest money, retail 3,187 3,187
Companys Retail AG 14,867 14,196
Agencies and customer relations 10,340 10,340
Carrying amount of goodwill 61,862 61,174
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 43 / 81
NOTE 12 - INTANGIBLE ASSETS, CONTINUED (DKK 1,000)
Trademark rights:
Trademark rights relating to acquisitions are, at the time of the acquisition, allocated to the cash-gen-
erating units which are expected to achieve economic benefits from the acquisition. Trademark rights
are considered to have an indefinite useful life as the collections prepared for the individual brands
are being developed continuously taking into account the unique DNA of the brands to which the
trademark rights relate. Thus, no multi-year amortisation is provided on those trademarks, but solely
impairment to the extent that the calculated recoverable value does not at least match the carrying
amount.
The carrying amount of the trademark rights is thus allocated to the following cash-generating units:
Carrying amount
31.12.2021 31.12.2020
Blend He 23,000 23,000
ICHI 5,000 5,000
Blend She 0 1,000
Fransa 23,000 23,000
b.young 23,000 23,000
InWear 10,000 10,000
Matinique 8,000 8,000
Part Two 7,500 7,500
Soaked in Luxury 4,500 4,500
Bon'A Parte 8,932 8,932
Culture 8,400 8,400
Pulz 9,000 9,000
Saint Tropez 3,500 3,500
Solid 1,759 1,759
Carrying amount of trademark rights 135,591 136,591
The recoverable amounts of each cash-generating unit to which the trademark rights are allocated
are determined on the basis of the calculation of the units’ value in use, i.e. discounting of expected
future cash flows that are compared with the carrying amounts. Future cash flows are based on the
Company’s business plans and budgets/forecasts for the financial years 2022-2025 (2020: 2021-2024).
The main parameters when calculating the value in use are revenue, estimated royalty rate and the
discount rate. Overall, due to continued focus and positioning, a positive development of the activity
in the coming years is expected. In addition, a positive development in costs is expected in step with
the expansion of and compliance with ‘The Blooming Concept’, which has a positive effect on the
royalty rate applied. In calculating the value in use, a growth factor has been used during the termi-
nal period of 1.2% at 31 December 2021 and 1.96% at 31 December 2020 and a discount rate before
tax of 11.9% at 31 December 2021 and 15.26% at 31 December 2020.
During 2021, the Group chose to shut down Blend She as an independent unit, resulting in an impair-
ment loss of DKK 1 million in 2021.
Besides this, the impairment test did not give rise to any indications of impairment for neither 2021
nor 2020.
Other intangible assets:
Neither in 2021 nor in 2020 did Management identify a need for impairment of other intangible assets.
NOTE 13 – PROPERTY, PLANT AND EQUIPMENT (DKK 1,000)
Land and
buildings
Leasehold
improvements
Other fixtures and
fittings, tools
and equipment
Cost at 1 January 2021 16,340 77,759 54,263
Foreign currency translation adjustments 0 2,683 2,859
Additions relating to acquisitions 0 5 21
Additions at cost 11,500 32,709 6,805
Disposals at cost 0 -12,499 -13,997
Transfer between categories 0 10 -10
Cost at 31 December 2021 27,840 100,667 49,941
Depreciation and impairment losses at 1 January 2021 7,052 48,717 32,747
Foreign currency translation adjustments 0 2,036 2,690
Depreciation for the year 476 12,791 11,693
Reversal of assets sold 0 -10,509 -12,975
Transfer between categories 0 0 0
Depreciation and impairment
losses at 31 December 2021
7,528 53,035 34,155
Carrying amount at
31 December 2021
20,312 47,632 15,786
Cost at 1 January 2020 16,340 72,683 57,210
Foreign currency translation adjustments 0 -2,784 -3,730
Additions relating to acquisitions 0 0 681
Additions at cost 0 15,296 10,928
Disposals at cost 0 -7,472 -10,790
Transfer between categories 0 36 -36
Cost at 31 December 2020 16,340 77,759 54,263
Depreciation and impairment losses at 1 January 2020 6,693 41,565 33,185
Foreign currency translation adjustments 0 -1,832 -3,429
Depreciation for the year 359 14,778 12,740
Reversal of assets sold 0 -5,830 -9,713
Transfer between categories 0 36 -36
Depreciation and impairment
losses at 31 December 2020
7,052 48,717 32,747
Carrying amount at 31 December 2020 9,288 29,042 21,516
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 44 / 81
NOTE 14 - LEASES (DKK 1,000)
LEASED ASSETS Properties
Operating
equipment, etc. Total
Carrying amount at 1 January 2021 290,235 23,168 313,403
Foreign currency translation adjustments 5,306 141 5,446
Additions 43,593 6,801 50,394
Re-measurement of lease liability 2,067 0 2,067
Depreciation for the year -108,557 -11,632 -120,189
Disposals -17,269 -491 -17,760
Carrying amount at 31 December 2021 215,375 17,986 233,361
Carrying amount at 1 January 2020 409,811 25,092 434,903
Foreign currency translation adjustments -8,687 -250 -8,937
Additions relating to acquisitions 3,289 0 3,289
Additions 36,876 12,075 48,951
Re-measurement of lease liability 16,732 0 16,732
Depreciation for the year -119,879 -13,187 -133,066
Disposals -47,670 -799 -48,469
Carrying amount at 31 December 2020 290,472 22,931 313,403
We refer to note 2 for further details on:
- The scope of the Group's leases.
- Exposure to potential cash flows.
- Process for determining the discount rate.
LEASE LIABILITIES
Expected maturity: 2021 2020
0-1 years 98,917 114,413
1-5 years 144,907 203,674
Over 5 years 11,752 16,178
Total non-discounted lease liability 255,576 334,265
Lease liability recognised in the balance sheet 247,223 323,898
Short-term 94,429 109,872
Long-term 152,794 214,026
AMOUNT RECOGNISED IN THE INCOME STATEMENT
Interest expenses relating to lease liabilities 4,721 6,594
Lease payments not recognised as part of the lease liability 12,591 8,802
17,312 15,396
For 2021, the Group has paid DKK 121.5 million in relation to leases, of which interest payments related to
recognised lease liabilities of DKK 4.7 million, and repayments of recognised lease liabilities of DKK 116.9
million.
For 2020, the Group has paid DKK 132.7 million in relation to leases, of which interest payments related to
recognised lease liabilities of DKK 6.6 million, and repayments of recognised lease liabilities of DKK 126.1
million.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 45 / 81
NOTE 15 - INVESTMENTS IN OTHER ENTITIES (DKK 1,000)
INVESTMENTS IN SUBSIDIARIES
Disclosures on investments in subsidiaries appear from the group chart at the end of the Annual Report.
Information on the Group’s subsidiaries with significant minority interests:
Statement of Comprehensive Income, etc.
2021
Revenue
Profit/Loss for
the year
Total compre-
hensive income
Minority interests’ share of
profit/loss for the year
Dividend paid to
minority interests’
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest) 44,770 3,869 3,869 1,935 1,641
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 19,5% ownership, minority interest)
44,629 5,753 5,753 1,122 0
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
1,087,981 228,036 263,583 27,366 19,650
Meinemarkenmode GmbH (DK Company Vejle Group)
(Germany, 24.9% ownership, minority interest)
481,527 46,967 46,967 11,695 2,037
Other subsidiaries that are individually immaterial 1,716 706
43,834 24,034
Balance Sheet
2021
Non-current
assets
Current assets
Non-current
liabilities
Current liabilities
Carrying amount of
minority interests
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest)
1,516 9,822 0 6,893 2,223
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 19.5% ownership, minority interest)
3,710 17,754 69 7,700 2,670
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
203,275 244,586 4,937 65,028 49,504
Meinemarkenmode GmbH (DK Company Vejle Group)
(Germany, 24.9% ownership, minority interest)
291 121,703 0 43,163 16,226
Other subsidiaries that are individually immaterial 5,997
76,620
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 46 / 81
Statement of Comprehensive Income, etc.
2020
Revenue
Profit/Loss for
the year
Total compre-
hensive income
Minority interests’ share of
profit/loss for the year
Dividend paid to
minority interests’
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest)
36,176 3,060 3,060 1,530 1,622
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 29.99% ownership, minority interest)
39,944 2,362 2,362 708 720
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
822,762 107,332 87,327 12,525 1,310
DKV Mens Dept. A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
141,509 11,219 11,219 1,470 0
Meinemarkenmode GmbH - acquired on 29 February 2020 481,527 46,967 46,967 11,695 0
(Germany, 24.9% ownership, minority interest)
Other subsidiaries that are individually immaterial -191 45
27,737 3,697
Balance Sheet
2020
Non-current
assets
Current assets
Non-current
liabilities
Current liabilities
Carrying amount of
minority interests
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest)
2,090 8,221 0 6,708 1,802
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 29.99% ownership, minority interest)
3,842 15,009 688 10,033 2,438
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
147,378 290,974 7,917 147,109 34,489
DKV Mens Dept. A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
3,783 43,924 793 14,281 2,332
Meinemarkenmode GmbH - acquired on 29 February 2020
(Germany, 24.9% ownership, minority interest)
137 94,859 0 41,933 9,809
Other subsidiaries that are individually immaterial 2,251
53,121
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 47 / 81
NOTE 16 – DEFERRED TAX (DKK 1,000) 2021 2020
Deferred tax at 1 January -3,322 -10,385
Correction beginning of year 388 1,014
Foreign currency translation adjustments 1,538 -725
Additions relating to acquisitions 8 0
Deferred tax for the year recognised in profit/loss for the year
-3,178 -1,361
Deferred tax for the year recognised in other comprehensive income -15,382 8,135
Deferred tax at 31 December -19,948 -3,322
Deferred tax is recognised as follows in the balance sheet: 31.12.2021 31.12.2020
Deferred tax assets 0 7,268
Deferred tax liabilities -19,948 -10,590
-19,948 -3,322
The Group has prepared an impairment test of deferred tax assets which shows that the losses with reason-
able certainty will be realised in the foreseeable future, and thus the requirement of convincing evidence for
the recognition of deferred tax assets is considered met.
Deferred tax and movements in temporary differences can be specified as follows:
Provision for deferred tax is by the Danish companies made at the tax rate at which temporary differences
are expected realised on the basis of the adopted corporation tax rate of 22%. The same applies to the Nor-
wegian companies in the Group, whose corporate tax rates are 22% and to the Group’s Swedish companies,
whose corporate tax rate was reduced from 21.4% in 2020 to 20.6% in 2021.
Deferred tax assets not recognised in the balance sheet: 31.12.2021 31.12.2020
Tax losses 7,315 33,839
Other temporary differences: 0 -2,386
7,315 31,453
The above tax assets have not been recognised, as it is considered improbable that they will be used in tax-
able income in the foreseeable future. Of the not recognised deferred tax assets related to tax losses DKK 1.7
million expires in 2023. The remaining DKK 5.6 million is not subject to expiration.
2021
Balance
Sheet
01.01.2021
Correction
beginning of
year
Foreign currency
translation
adjustments
Recognised
in profit/loss
for the year
Recognised in other
comprehensive
income-
Acquisition and sale
of enterprises, etc.
Balance
Sheet
31.12.2021
Intangible assets -28,945 476 13,433 -16,998 0 0 -32,034
Property, plant and
equipment 11,648 97 -5,409 1,983 0 8 8,327
Inventories 2,989 -19 -1,387 3,575 0 0 5,158
Receivables 1,255 170 -582 439 0 0 1,282
Other current assets -523 0 243 15,227 -15,382 0 -435
Other liabilities 9,179 -366 -4,260 -10,220 0 0 -5,667
Tax losses 4,274 30 -1,984 1,393 0 0 3,713
Retaxation liability -3,199 0 1,484 1,423 0 0 -292
-3,322 388 1,538 -3,178 -15,382 8 -19,948
2020
Balance
Sheet
01.01.2020
Correction
beginning of
year
Foreign currency
translation
adjustments
Recognised
in profit/loss
for the year
Recognised in other
comprehensive
income-
Acquisition and sale
of enterprises, etc.
Balance
Sheet
31.12.2020
Intangible assets -26,924 -54 -1,879 -88 0 0 -28,945
Property, plant and
equipment 11,170 1,516 780 -1,818 0 0 11,648
Inventories 3,302 -173 231 -371 0 0 2,989
Receivables 1,230 -375 86 314 0 0 1,255
Other current assets -1,254 83 -88 -7,399 8,135 0 -523
Other liabilities -255 -5 -18 9,457 0 0 9,179
Tax losses 5,444 -41 380 -1,509 0 0 4,274
Retaxation liability -3,098 63 -217 53 0 0 -3,199
-10,385 1,014 -725 -1,361 8,135 0 -3,322
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 48 / 81
NOTE 17 - INVENTORIES (DKK 1,000) 31.12.2021 31.12.2020
Finished goods and goods for resale 456,800 442,210
Goods in transit 201,322 158,194
658,122 600,404
Movements for the year in inventory write-downs: 2021 2020
Inventory write-down at 1 January 68,932 58,093
Foreign currency translation adjustments -720 -936
Additions for the year 39,492 52,164
Disposals for the year -30,774 -40,389
Inventory write-down at 31 December 76,930 68,932
31.12.2021 31.12.2020
Carrying amount of inventories recognised at net realisable value 253,710 223,731
NOTE 18 - TRADE RECEIVABLES (DKK 1,000) 31.12.2021 31.12.2020
Trade receivables (gross) can be specified as follows:
Not due 167,535 251,821
Due between 1-60 days 63,283 74,377
Due between 61-120 days 10,939 15,089
Due after 120 days 45,266 51,860
287,023 393,147
Receivables do not carry interest until normally 30-60 days after the date of invoicing. Interest is subsequently added to the outstanding amount. The Group has rec-
ognised interest on unpaid trade receivables of DKK 1,2 million (DKK 0,6 million) for the year.
Changes in impairment losses related to trade receivables: 2021 2020
Provision for bad debt under IFRS 9 at 1 January 71,596 84,026
Foreign currency translation adjustments 6 -356
Adjustments for the year are recognised in the income statement. -20,822 -12,074
Impairment losses at 31 December 50,780 71,596
Calculation of impairment loss is based on the simplified expected credit loss model under which the total loss is recognised immediately in profit/loss at the time of recognition in the balance sheet based on the expected
loss over the useful life of the receivable. Impairment under IFRS 9 is continuously monitored according to the Group’s risk management until realisation and is calculated on the basis of the expected loss rate considering due
to historical data adjusted for estimates of the impact of expected changes in relevant parameters.
The carrying amount of the receivables is essentially equivalent to their fair values.
Trade receivables (net) can be specified as follows by the dates they fall due: 31.12.2021 Loss rate 2021 31.12.2020 Loss rate 2020
Not due 165,247 1.4% 246,570 2.1%
Due between 1-60 days 59,245 6.4% 65,633 11.8%
Due between 61-120 days 3,798 65.3% 1,913 87.3%
Due after 120 days 7,953 82.4% 7,435 85.7%
236,243 321,551
20202021
600
658
20202021
393
287
INVENTORIES (DKK MILLION)
TRADE RECEIVABLES
(DKK MILLION)
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 49 / 81
The geographical distribution of trade
receivables (net) is as follows: 31.12.2021 31.12.2020
Denmark 31,770 39,281
Norway 16,845 23,927
Germany 47,773 112,058
Sweden 19,681 33,296
Benelux 20,377 15,908
The UK 14,915 16,146
Canada 19,480 10,908
France 11,618 15,223
Other markets in Europe 33,858 50,503
Other markets outside Europe 19,926 4,073
236,243 321,323
Fair value of security 1,716 6,637
Debtor insurance has been taken out to cover approx. 60-70% of trade receivables.
NOTE 19 - CONTRACT ASSETS AND LIABILITIES (DKK 1,000) 31.12.2021 31.12.2020
RECONCILIATION OF CONTRACT ASSETS AND LIABILITIES
Contract assets:
Receivables included in trade receivables 236,243 321,323
Other contract assets:
Refund assets 17,689 15,030
253,932 336,353
Contract liabilities:
Prepayments received from customers 2,435 2,788
Other contract liabilities:
Refund liabilities 37,750 31,165
40,185 33,953
NOTE 20 - OTHER RECEIVABLES (DKK 1,000) 31.12.2021 31.12.2020
Receivables related to VAT, customs duties and A tax 9,100 10,130
Receivables related to wages and salaries, social security
expenses and holiday pay 244 257
Receivable related to cash collateral 897 857
Derivative financial instruments 34,114 0
Other receivables 66,577 43,902
110,932 55,146
NOTE 21 - EQUITY (DKK 1,000)
No. (1,000) Nominal value
SHARE CAPITAL 2021 2020 2021 2020
Share capital at 1 January 6,000 6,000 60,000 60,000
Share capital at 31 December 6,000 6,000 60,000 60,000
The share capital is distributed as follows:
6,000,000 shares of DKK 10 60,000 60,000
60,000 60,000
Dividends distributed for the year amounted to DKK 280.4 million compared to DKK 48.7 million last year.
Dividend distributed per share equals DKK 46.7 compared to 8.1 last year
It is proposed to distribute dividends of DKK 468.6 million for the financial year of 2021.
The share capital is fully paid up.
RESERVES
Dividends
Dividend is recognised as a liability when a resolution approving the dividend has been adopted by the Annual
General Meeting of shareholders (the time of declaration). Dividend proposed for distribution for the year is
disclosed as a separate equity item until adopted by the Annual General Meeting.
Foreign currency translation reserves
The foreign currency translation reserve comprises the parent shareholders’ share of exchange differences
occurring from translation of financial statements of entities stated in a functional currency other than DKK,
exchange adjustments regarding assets and liabilities which form part of the Group’s net investments in such
entities and exchange adjustments regarding hedging transactions which hedge the Group’s net investments
in such entities.
The reserve is dissolved through divestment of foreign entities or if the conditions for effective hedging have
ceased to exist.
Hedging reserves
The hedging reserve includes the accumulated net change in the fair value of hedging transactions which meet
the criteria for hedging future cash flows, with the transaction hedged not having been realised yet.
The reserve will be dissolved when the secured transaction is realised, if the secured cash flows are no longer
expected to be realised or the hedging conditions are no longer effective.
It is Management’s assessment that the carrying amount of receivables in all materiality corresponds to the
fair value.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 50 / 81
NOTE 23 - OTHER PAYABLES (DKK 1,000) 31.12.2021 31.12.2020
VAT, customs duties and with holding tax on salaries 60,433 86,251
Salaries and wages, social security expenses and payable holiday pay 61,048 47,509
Derivative financial instruments 0 46,627
Other payables 123,118 129,946
244,599 310,333
Expected maturity:
0-1 year 243,984 273,511
1-5 years 615 36,822
244,599 310,333
NOTE 24 - ADJUSTMENTS AND NON-CASH TRANSACTIONS
(DKK 1,000) 31.12.2021 31.12.2020
Depreciation, amortisation and impairment losses on intangible assets as
well as property, plant and equipment 150,233 165,648
Gain on disposal of intangible assets and property, plant and equipment 2,212 -1,150
Loss on disposal of intangible assets and property, plant and equipment 178 4,079
Financial income -14,130 -12,184
Financial expenses 31,012 24,789
Other adjustments 418 -23,449
169,923 157,733
NOTE 25 - CHANGES IN WORKING CAPITAL (DKK 1,000) 31.12.2021 31.12.2020
Changes in inventories -74,777 -6,295
Changes in receivables 82,919 -13,267
Changes in trade payables 66,905 152,416
Changes in other payables -23,294 78,487
51,753 211,341
NOTE 22 - DEBT FROM FINANCING ACTIVITIES (DKK 1,000)
Non-cash changes
2021
Beginning
of year Cash flows
Other ad-
ditions and
disposals
Foreign currency
translation
adjustments End of year
Long-term debt 36,822 -36,207 0 0 615
Lease liabilities 323,898 -111,499 34,701 123 247,223
360,720 -147,706 34,701 123 247,838
Non-cash changes
2020
Beginning
of year Cash flows
Other ad-
ditions and
disposals
Foreign currency
translation
adjustments End of year
Long-term debt 214,089 -200,000 22,733 0 36,822
Short-term debt 70,328 -70,328 0 0 0
Lease liabilities 439,471 -136,199 20,503 123 323,898
723,888 -406,527 43,236 123 360,720
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 51 / 81
NOTE 26 - ACQUISITIONS OF ENTERPRISES
The DK Company A/S Group has not acquired any enterprises of a significant nature in 2021.
BUSINESS COMBINATIONS IN 2020
Meinemarkenmode GmbH (the DK Company Vejle Group):
As at 29 February 2020, DK Company Vejle A/S has acquired all the activities of Meinemarkenmode GmbH for
DKK 12.3 million in cash from the trustee of Meinemarkenmode KS. The acquisition is expected to give the
Group increased coverage on European e-commerce platforms such as Zalando, Amazon and Otto Versand.
The company has become part of the DK Company Vejle Group with revenue of DKK 312 million and a profit
before tax of DKK 40 million for the period since the acquisition on 29 February 2020.
Determined pro forma as if the company were acquired on 1 January 2020, revenue and profit for the year
2020 for the companies acquired amount to DKK 342.6 million and DKK 6.0 million, respectively.
Specification of acquired assets and liabilities recognised at the date of acquisition
Value recognised at
the date of acqui-
sition
Property, plant and equipment 632
Inventories 53,982
Receivables 10,354
Other receivables 16,149
Trade payables -61,702
Other payables -13,094
Total net assets 6,321
Badwill -14,716
Purchase consideration -8,395
Of this, cash 20,650
Cash purchase price 12,255
The purchase price was paid to the seller in 2020.
White & Chase LLP and Ernst & Young Godkendt Revisionspartnerselskab have advised the DK Company A/S
Group in connection with the transaction. As a result of the acquisition, the Group has incurred transaction
costs of approx. DKK 3.1 million in relation to these advisers, which amount is recognised under other exter-
nal expenses.
After recognition of identifiable assets, liabilities and contingent liabilities at fair value, badwill is determined
at DKK 14.7 million in connection with the acquisition. Badwill has arisen as the DK Company A/S Group has
identified more net assets than those covered by the purchase price paid which must be seen in correlation
with the acquisition being completed in connection with the restructuring of the company. The amount is rec-
ognised under special items in the Group’s income statement for the financial year 1 January to 31 December
2020.
FAIR VALUE MEASUREMENT
In connection with the acquisition of the subsidiaries and activities mentioned above and below, the DK
Company A/S Group has measured identifiable intangible assets that are recognised at fair value in the
pre- acquisition balance sheet. The fair value of intangible assets is based on the discounted cash flows
expected to be derived from the continued use or sale of the assets. The Group’s WACC is used for
discounting purposes.
The fair value of property, plant and equipment is based on market values. The market value is the amount at
which assets can be traded in voluntary transactions between independent parties. The market value is based
on the going market price of comparable assets.
The fair value of acquired finished goods is determined on the basis of the selling prices expected for normal
business activity, less expected costs incurred to execute the sale and less a reasonable profit on sales efforts.
The fair value of acquired goods for resale is determined at replacement cost.
Receivables are measured at the net present value of the amounts expected to be received less the expected
costs of collection. The Group's WACC is used for discounting purposes. However, discounting is omitted
when the effect is insignificant.
Liabilities are measured at net present value of the amounts required to meet the liabilities. The Group's
WACC is used for discounting purposes. Discounting is omitted on current liabilities when the effect is
insignificant.
BUSINESS COMBINATIONS AFTER THE BALANCE SHEET DATE
The DK Company A/S Group has not acquired any enterprises after the balance sheet date.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 52 / 81
NOTE 27 - SECURITY (DKK 1,000)
Security has been provided for rental obligations, etc. at a total of DKK 97.5 million (DKK 94.4 million).
NOTE 28 - CONTINGENT ASSETS AND LIABILITIES (DKK 1,000)
Other contingent assets
None other than the deferred not recognised tax assets referred to in note 16.
Other contingent liabilities
The Group is jointly taxed with its parent Jens Poulsen Holding ApS as administration company and is jointly and severally liable with other jointly taxed companies for
payment of corporation tax as from the accounting period of 2013, as well as for withholding tax on interest, royalties and dividends falling due on or after 1 July 2012.
At 31 December 2021, the total amount outstanding in joint corporation tax is DKK 5.7 million compared to last year’s DKK 0.7 million.
The Group has entered into agreements on continuous consideration where the consideration does not meet the criteria for recognition in the income statement and
balance sheet as leased assets under IFRS 16. These agreements primarily concern logistics setup and access to sales channels. At 31 December 2021, the total liability
concerning future payments for these commitments amounts to DKK 80 million (DKK 74 million).
The Group has entered into agreements (letters of credit) for supplies of DKK 143.5 million compared with DKK 125.5 million last year.
NOTE 29 - FINANCIAL RISKS (DKK 1,000) 31.12.2021 31.12.2020
Categories of financial instruments
ASSETS
Derivative financial instruments (assets) 34,114 0
Hedge instruments measured at fair value concluded to hedge future cash flows 34,114 0
Trade receivables 236,243 321,324
Receivables from group enterprises 980 980
Receivables from associates 3,287 0
Other receivables 133,933 75,169
Cash 447,919 266,668
Financial assets measured at amortised cost 822,362 664,141
LIABILITIES
Derivative financial instruments (liabilities) 0 46,627
Hedge instruments measured at fair value concluded to hedge future cash flows 0 46,627
Lease liabilities 247,223 323,898
Trade payables 464,147 414,301
Financial liabilities, measured at amortised cost 711,370 738,199
Risk management policy of the Group
As a result of its operations, investment and financing, the Group is exposed to changes in exchange rates and interest rates. The Group’s policy is not to speculate
actively in financial risks. The Group’s financial management thus focuses on the management of financial risks related to operations and financing.
For a description of accounting policies and methods, including the recognition criteria and bases of measurement used, please see the accounting policies.
No changes have been made to the Group's risk exposure or risk management compared to 2020.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 53 / 81
Nominal currency positions at 31.12.2021 Sensitivity analysis
Cash and cash
equivalents and
receivables Liabilities (non-derivatives)
Likely change in
exchange rate Hypothetical impact on profit/loss
Total for the year on equity
USD/DKK 21,605 -154,532 -132,927 +10% -10,368 -10,368
NOK/DKK 103,528 -158,780 -55,252 +10% -4,310 -4,310
SEK/DKK 61,435 -35,487 25,948 +10% 2,024 2,024
EUR/DKK 225,590 -152,186 73,404 +2% 1,145 1,145
Others 93,572 -41,091 52,481 +10% 4,094 4,094
505,730 -542,076 -36,346 -7,415 -7,415
Nominal currency positions at 31.12.2020 Sensitivity analysis
Cash and cash
equivalents and
receivables Liabilities (non-derivatives)
Likely change in
exchange rate Hypothetical impact on profit/loss
Total for the year on equity
USD/DKK 14,346 -178,237 -163,891 +10% -12,783 -12,783
NOK/DKK 158,029 -135,899 22,130 +10% 1,726 1,726
SEK/DKK 48,748 -48,317 431 +10% 34 34
EUR/DKK 374,701 -113,163 261,538 +2% 4,080 4,080
Others 58,209 -57,152 1,057 +10% 82 82
654,033 -532,768 121,265 -6,861 -6,861
NOTE 29 - FINANCIAL RISKS, CONTINUED (DKK 1,000)
Currency risks
The Group's foreign currency risks are handled centrally by the Group's finance department.
Activities carried out by the Group's Danish companies are affected by exchange rate changes, as some revenue and the majority of the purchase of goods are made in
foreign currency, while other expenses, including salary and wages, are primarily incurred in Danish kroner.
The Group is also affected by changes in exchange rates, as the profits/losses for the year of foreign group enterprises are translated into Danish kroner on the basis
of average prices.
The Group's foreign currency risks are managed centrally and hedged primarily as a result of revenue and expenses incurred in the same currency as well as through
the use of derivative financial instruments. In accordance with a foreign exchange policy approved by the Board of Directors, foreign currency risks are hedged so that
currency positions are hedged as much as possible for up to 18 months.
The Group's foreign currency risks in the balance sheet can be shown as follows:
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 54 / 81
Sensitivity analysis of foreign currency
The assumptions applied to the sensitivity analysis are unchanged sales, price levels and interest rates.
The Group's main currency exposure relates to purchases in USD and EUR and sales in NOK, SEK and EUR.
The above sensitivity analysis shows the net effect on profit/loss for the year and equity, had the exchange
rate of the currencies concerned been 10% higher at the end of the year than the exchange rate actually
applied. 10% is the sensitivity factor used in the internal reporting of foreign currency risks. The specified
impact contains the effect of transactions concluded for the purpose of foreign currency hedging. Had the
rate been 10% lower than the actual rate, this would have had a corresponding negative net impact on profit/
loss for the year and equity, respectively.
Interest rate risk
The Group's interest rate risk is monitored by the finance department in accordance with the Group's policies
in this area. The Group’s financial assets and financial liabilities are floating-rate only and therefore consid-
ered to be subject to interest rate adjustments within one year. The Group’s interest rate risk relates to the
interest-bearing debt. The Group’s loan portfolio consists of short-term debt to credit institutions and debt to
group enterprises. Sensitivity of an interest rate change of +/- 1% amounts to approx. DKK -0.4 million (DKK
1.1 million).
Credit risks
The Group's credit risks are partly related to receivables and derivative financial instruments with positive fair
value. The maximum credit risk related to financial assets corresponds to the values recognised in the balance
sheet. The Group has no significant risks relating to a single customer or business partner. The Group’s policy
for assuming credit risks entails that all customers are as a general rule covered by credit insurance taken
out with external business partners. In some instances, the Group receives collateral for sale on credit, and
security received is included in the assessment of the requirement for a provision for bad debt. The maximum
credit risk is reflected in the carrying amount of each financial asset included in the balance sheet.
Carrying amount 31.12.2021 31.12.2020
Trade receivables 236,243 321,551
Receivables from group enterprises 980 980
Receivables from associates 3,287 0
Other receivables 133,933 75,180
374,443 397,711
Note 18 shows the geographical distribution of trade receivables and the non-impaired receivables.
Liquidity risk
Due dates of financial liabilities are specified below, broken down by the time intervals applied in connection
with the Group's cash management. The specified amounts represent the amounts due for payment including
interest, etc.
31.12.2021
Carrying
Amount
Contractual
cash flow 0-1 years 1-5 years After 5 years
Non-derivative financial instruments
Lease liabilities 247,223 255,576 98,917 144,907 11,752
Trade payables 464,147 464,147 464,147 0 0
711,370 719,723 563,064 144,907 11,752
31.12.2020
Non-derivative financial instruments
Lease liabilities 323,898 334,265 114,413 203,674 16,178
Trade payables 414,301 414,301 414,301 0 0
738,199 748,566 528,714 203,674 16,178
Derivative financial instruments
Forward contracts 46,627 46,627 46,627 0 0
Total 784,826 795,193 575,341 203,674 16,178
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 55 / 81
NOTE 29 - FINANCIAL RISKS, CONTINUED (DKK 1,000)
Derivative financial instruments meeting hedging requirements
The Group has concluded foreign currency hedging agreements that meet the criteria for hedge accounting.
The fair value adjustment is recorded directly in equity and will be recognised as the financial contracts are
realised. The open forward exchange contracts may be specified as follows:
31.12.2021 Residual maturity Contractual value Fair value
Currency risks:
USD 0-12 months 513,499 35,430
SEK 0-12 months -159,625 2,048
NOK 0-14 months -319,720 -2,184
GBP 0-9 months -44,443 -430
CHF 0-20 months -25,388 -691
CAD 0-9 months -38,477 -59
-74,154 34,114
31.12.2020
Currency risks:
USD 0-12 months 621,669 -42,013
SEK 0-10 months -94,434 -3,631
NOK 0-4 months -58,312 -1,365
GBP 0-9 months -9,196 139
CHF 0-2 months -8,415 77
CAD 0-8 months -13,899 166
437,413 -46,627
Positive contractual value refers to the purchase of the currency in question, and negative contractual value
refers to such sale.
Assets and liabilities measured at fair value
The Group’s derivative financial instruments exist only in the form of forward exchange contracts measured
according to generally accepted valuation techniques based on relevant observable exchange rates (fair value
hierarchy level 2). Both externally and internally calculated fair values based on discounting of future cash
flows are applied. Where internally calculated fair values are applied, these are reconciled quarterly with the
externally calculated fair values.
Derivative financial instruments are recognised in other receivables and other payables.
The gains on derivative financial instruments recognised in the income statement in revenue, cost of sales,
financial income and financial expenses appear from the statement of comprehensive income for 2021 and
2020, respectively.
Optimisation of capital structure
The Company’s management assesses on a current basis whether the Group’s capital structure is in accor-
dance with the interests of the Company and its shareholders. The overall goal is to ensure a capital structure
that supports long-term economic growth while maximising return to the Group’s stakeholders by optimising
the relationship between equity and debt. The Group’s overall strategy remains unchanged compared to last
year.
The Group's capital structure consists of debt that includes call loans from the Company's credit institutions,
including lease liabilities, as well as cash and equity.
The Company's Board of Directors continuously reviews the Group's capital structure and assesses the
Group's costs of capital and the risks associated with each type of capital. The Group’s objective is to operate
with gearing in the range of -0.5 - 2.5 measured as the ratio of net interest-bearing debt and profit/loss
before depreciation, amortisation and financial income and expenses. Such gearing is determined as follows:
31.12.2021 31.12.2020
Credit institutions 247,223 323,898
Cash -447,919 -266,668
Net interest-bearing debt -200,696 57,230
Profit/Loss before depreciation, amortisation and financial
income and expenses
778,884 498,407
Gearing (0,3) 0,1
Another financial benchmark is the solvency ratio, which is calculated as follows:
Equity excluding minorities 925,068 718,991
Total assets 2,033,693 1,883,833
Solvency ratio (%) 45.5 38.2
A third financial benchmark is the borrowing base, which is calculated as follows:
Net interest-bearing debt -200,696 57,230
Inventories 658,122 600,404
Trade receivables 236,243 321,551
Trade payables -464,147 -414,301
430,218 507,654
Borrowing base (0,5) 0,1
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 56 / 81
NOTE 30 - RELATED PARTIES
Related parties with control
Related parties with control over DK Company A/S:
Name Place of registered office Basis of control
DKC Holding 2011 A/S La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Holding ApS La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Søbjergvej 56, Ikast-Brande Shareholder with ultimate control over
DK Company A/S
Related party transactions
During the financial year, the Group has completed the following transactions with related parties with control
over DK Company A/S or other parties related to them:
- Rent in accordance with the ten-year lease with JP Ejendomme 2 A/S on an owner-occupied property in
Denmark. The lease is concluded on terms corresponding to market conditions for the area. Rent of DKK 5.3
million (DKK 5.2 million) was paid in the financial year. Total annual rent for lease with JP Ejendomme 2 A/S
amounts to DKK 5.3 million (DKK 5.2 million), and the lease is non-terminable until 1 February 2031.
- Use of trademark rights in return for the Group, vis-à-vis Jens Poulsen Holding ApS, undertaking to pay all
costs of maintaining and protecting the registrations of the trademarks and figurative marks. The agreement
on the right to use trademarks and figurative marks is non-terminable, but may nonetheless be terminated
if one of the parties is in material default of its obligations under the agreement. As a consequence of the
Group having undertaken to pay all costs of maintaining and protecting the registrations of the trademarks
and figurative marks, only a small annual fee is to be paid for such use. The trading was done on an arm’s
length basis.
- Balances appear from the balance sheets as receivables from group enterprises and payables to group en-
terprises. Interest on intercompany balances is disclosed in notes 9 and 10. Non-current receivables relate to
non-interest-bearing deposits regarding the above-mentioned leases. Other balances with group enterprises
are payable on demand and carry interest of approx. 4.0% per year.
In addition, ordinary management remuneration has been paid to CEO Jens Poulsen according to note 4.
Subsidiaries
Transactions with subsidiaries are eliminated from the Consolidated Financial Statements.
NOTE 31 - FEE TO AUDITORS APPOINTED AT THE ANNUAL GENER-
AL MEETING (DKK 1,000)
2021 2020
PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab
Statutory audit 2,569 0
Tax and VAT-related advice 12 0
2,581 0
Ernst & Young, Godkendt Revisionspartnerselskab
Statutory audit 425 2,583
Other assurance engagements 766 181
Tax and VAT-related advice 1,091 748
Other services 437 609
2,719 4,121
Other auditors in foreign subsidiaries 2021 2020
Statutory audit 790 704
Other assurance engagements 13 0
Tax and VAT-related advice 354 29
Other services 287 265
1,444 998
6,7464 5,119
All material group enterprises are audited by PricewaterhouseCoopers, Statsautoriseret Revisionspartner-
selskab. Fees relating to other auditors concern local audits and consulting regarding certain foreign subsid-
iaries for which PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab is not appointed auditor.
NOTE 32 - SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially affect the assessment of the Annual
Report.
NOTE 33 - NEW ACCOUNTING REGULATION
At the time of publication of this Annual Report, IASB has issued a number of new IFRS standards, amend-
ments to existing standards and IFRIC interpretations that are not yet mandatory for DK Company A/S when
preparing the annual report for 2021.
DK Company A/S expects to implement the adopted but not yet applicable standards and interpretations in
step with their adoption by the EU and subsequent mandatory application by DK Company A/S. Where the
effective date is different in the EU from that of the IASB, implementation of the changes is contemplated
after adoption in the EU. None of the new standards or interpretations are expected to have a material effect
on recognition and measurement in DK Company A/S’ future annual reports.
NOTE 34 - SHAREHOLDER INFORMATION
DK Company A/S' parent is DKC Holding 2011 A/S, Ikast-Brande, holding all share capital and voting rights.
The Company’s ultimate parent is Jens Poulsen Holding ApS, Ikast-Brande.
DK Company A/S has not registered other shareholders holding more than 5% of the voting rights or nominal
value of the share capital.
NOTE 35 - ADOPTION OF THE ANNUAL REPORT FOR PUBLICATION
At its board meeting on 11 May 2022, the Board of Directors approved this Annual Report for publication.
The Annual Report will be submitted to DK Company A/S' shareholders for approval at the Annual General
Meeting on 11 May 2022.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK Company 57 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
58 Parent Company Financial Statements
62 Notes to the Parent Company Financial Statements
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
DK CompanyIncome Statement 59 / 81
Note 2021 2020
2 Revenue 518,707 396,935
Costs of goods for resale -269,746 -214,090
Other external expenses -82,872 -81,814
3 Other operating income 4,553 12,276
Gross profit 170,642 113,307
4 Staff costs -70,114 -78,354
Depreciation, amortisation and impairment losses on intangible
assets as well as property, plant and equipment
-11,992 -15,318
5 Other operating expenses 0 -183
Profit/loss before financial income and expenses 88,536 19,452
Share of profit/loss after tax in group enterprises 348,216 236,718
6 Financial income 5,218 9,339
7 Financial expenses -6,353 -10,798
Financial income and expenses, net amounts 347,081 235,259
Profit/loss before tax 435,617 254,711
8 Tax on Profit/Loss for the year -19,284 -4,009
PROFIT/LOSS FOR THE YEAR 416,333 250,702
Income Statement (DKK 1,000)
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyBalance Sheet 60 / 81
Note 31.12.2021 31.12.2020
NON-CURRENT ASSETS
Goodwill 0 5,646
9 Intangible assets 0 5,646
Leasehold improvements 15,176 6,794
Other fixtures and fittings, tools and equipment 4,461 7,127
10 Property, plant and equipment 19,637 13,921
11 Investments in group enterprises 724,625 569,477
12 Other receivables 2,772 1,648
13 Deferred tax assets 0 4,658
Other non-current assets 727,397 575,783
NON-CURRENT ASSETS 747,034 595,350
CURRENT ASSETS
Inventories 76,582 78,813
Trade receivables 8,870 38,857
Receivables from group enterprises 79,026 33,250
Receivables from associates 3,287 0
Other receivables 24,766 3,318
Deferred income 3,643 2,320
Receivables 119,592 77,745
Cash 339,869 217,384
CURRENT ASSETS 536,043 373,942
TOTAL ASSETS 1,283,077 969,292
Liabilities and equity (DKK 1,000)
Balance Sheet
Assets (DKK 1,000)
Note 31.12.2021 31.12.2020
EQUITY
14 Share capital 60,000 60,000
Reserve for net revaluation under the equity method 50,478 225,641
Hedging reserves 12,594 -15,978
Retained earnings 198,619 326,880
Proposed dividend 468,560 0
EQUITY 790,251 596,543
NON-CURRENT LIABILITIES
13 Deferred tax 1,231 0
11 Provision for negative investments in group enterprises 3,384 2,927
15 Credit institutions 289 1,112
15 Other payables 0 11,037
NON-CURRENT LIABILITIES 4,904 15,076
CURRENT LIABILITIES
15 Credit institutions 13,555 7
Prepayments received from customers 594 998
Trade payables 75,875 85,310
Payables to group enterprises 354,492 210,239
Corporation tax 11,385 6,271
Other payables 32,021 54,848
CURRENT LIABILITIES 487,922 357,673
LIABILITIES 492,826 372,749
TOTAL EQUITY AND LIABILITIES 1,283,077 969,292
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyEquity 61 / 81
Statement of Changes in Equity (DKK 1,000)
Note Share capital
Reserve for
net revaluation
under the
equity method
Hedging
reserves
Retained
earnings
Proposed
dividend
Total
equity
Equity at 1 January 2021 60,000 225,641 -15,978 326,880 0 596,543
Correction beginning of year 0 0 60 0 60
Transferred from distribution of net profit 0 -175,392 0 123,165 468,560 416,333
Value adjustment of financial instruments 0 229 36,580 0 0 36,809
Tax on financial instruments 0 0 -8,008 0 0 -8,008
Exchange adjustments from translation of
foreign entities 0 0 0 4,972 0 4,972
Change in equity in group enterprises 0 0 0 23,892 0 23,892
Dividends distributed in the financial year 0 0 0 -280,350 0 -280,350
Equity at 31 December 2021 60,000 50,478 12,594 198,619 468,560 790,251
Equity at 1 January 2020 60,000 39,891 -1,100 341,588 0 440,379
Transferred from distribution of net profit 0 185,750 0 64,952 0 250,702
Value adjustment of financial instruments 0 0 -19,075 0 0 -19,075
Tax on financial instruments 0 0 4,197 0 0 4,197
Exchange adjustments from translation of
foreign entities 0 0 0 -7,356 0 -7,356
Change in equity in group enterprises 0 0 0 -23,614 0 -23,614
Dividends distributed in the financial year 0 0 0 -48,690 0 -48,690
Equity at 31 December 2020 60,000 225,641 -15,978 326,880 0 596,543
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Notes to the Parent Company Financial Statements
63 Note 1 - Accounting policies
INCOME STATEMENT
BALANCE SHEET
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
67 Note 2 - Revenue
67 Note 3 - Other operating income
67 Note 4 - Staff costs
67 Note 5 - Other operating costs
67 Note 6 - Financial income
67 Note 7 - Financial expenses
67 Note 8 - Tax on profit/loss for the year
68 Note 9 - Intangible assets
68 Note 10 - Property, plant and equipment
68 Note 11 - Investments in subsidiaries
69 Note 12 - Other non-current assets
69 Note 13 - Deferred tax
69 Note 14 - Share capital
69 Note 15 - Debt
69 Note 16 - Security
70 Note 17 - Contingent assets and liabilities
71 Note 18 - Related parties
71 Note 19 - Subsequent events
71 Note 20 - Distribution of profit
71 Note 21 - Special items
DK CompanyNotes 62 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
The Financial Statements for 2021 of the
parent DK Company A/S are prepared
in accordance with the provisions of the
Danish Financial Statements Act applying
to enterprises of reporting class C (large
enterprises). The accounting policies are
consistent with those of last year.
RECOGNTION AND MEASUREMENT
Income is recognised in the income
statement as earned, including value
adjustments of financial assets and
liabilities. Moreover, all expenses incurred
are recognised in the income statement,
including depreciation, amortisation,
impairment losses and provisions as well
as reversals due to changed accounting
estimates of amounts previously
recognised in the income statement.
Assets are recognised in the balance
sheet when it is probable that future
economic benefits attributable to the
asset will flow to the Company, and
the value of the asset can be measured
reliably.
Liabilities are recognised in the balance
sheet when it is probable that future
economic benefits will flow out of the
Company, and the value of the liability
can be measured reliably.
Assets and liabilities are initially measured
at cost. Subsequently, assets and
liabilities are measured as described
below for each item.
Certain financial assets and liabilities
are measured at amortised cost, which
involves the recognition of a constant
effective interest rate over the maturity
period. Amortised cost is calculated as
original cost less any repayments and with
addition/deduction of the accumulated
amortisation of any difference between
cost and the nominal amount. Capital
losses and gains are thus allocated over
the terms of the asset or liability.
Recognition and measurement take into
account predictable losses and risks
occurring before the presentation of the
Financial Statements which concern affairs
and conditions existing at the balance
sheet date.
The Annual Report is presented in
Danish kroner (DKK), which is also the
functional currency of the parent. All
other currencies are regarded as foreign
currencies.
TRANSLATION POLICIES
On initial recognition, foreign currency
transactions are translated applying the
exchange rate at the transaction date.
Exchange differences arising due to
differences between the transaction date
rates and the rates at the dates of pay-
ment are recognised in the income state-
ment. If foreign exchange positions are
considered hedges of future cash flows,
the value adjustments are recognised
directly in equity.
Receivables, payables and other
monetary items denominated in foreign
currency which have not been settled at
the balance sheet date are measured at
the closing rate. Any differences between
the exchange rates at the balance sheet
date and the rates at the dates when the
receivables or the payables arose or at
which they were recognised in the latest
financial statements are recognised in the
income statement.
Intangible assets and property, plant
and equipment purchased in foreign
currencies are translated at the exchange
rates at the dates of transaction.
If the foreign group enterprises meet
the criteria for legal entities, the income
statements are converted at an average
exchange rate for the month, and the
balance sheet items are translated at the
exchange rates on the balance sheet
date. Currency translation differences
arising on the translation of the opening
equity of foreign group enterprises at the
exchange rates on the balance sheet date
and on the translation of income state-
ments from average exchange rates to
the exchange rates on the balance sheet
date are recognised directly in equity.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are
initially recognised in the balance sheet at
cost and are subsequently remeasured at
their fair values. Positive and negative fair
values of derivative financial instruments
are included in other receivables and
other payables, respectively.
Changes in fair values of derivative
financial instruments that are meant to
hedge recognised assets or liabilities are
recognised in the income statement as
are any changes in the fair value of the
hedged asset or the hedged liability.
Changes in fair values of derivative
financial instruments that are meant to
hedge future assets and liabilities are
recognised in receivables or payables as
well as in equity. If the future transaction
results in the recognition of assets
or liabilities, amounts recognised in
equity are transferred from equity and
recognised in the cost of the asset or
the liability, respectively. If the future
transaction results in income or expenses,
amounts recognised in equity are
transferred to the income statement in
the period in which the hedged item
affects the income statement.
INCOME STATEMENT
Revenue
The Company’s revenue stems from the
sale of goods for resale in the textile
industry. Revenue is recognised when
control of the individually identifiable
performance obligation set out in the
sales agreement passes to the customer,
which according to the terms of sale
occurs at the time of delivery.
The Company’s sales agreements are
divided into individually identifiable
performance obligations, which are
recognised and measured separately at
fair value. Although sales agreements
for the sale of goods for resale often set
out multiple performance obligations,
such obligations are treated as a single
performance obligation owing to their
concurrent delivery.
If a sales agreement contains multiple
performance obligations, the total
sales value of the sales agreement is
allocated proportionally to its individual
performance obligations.
Note 1 - Accounting policies
DK CompanyNotes 63 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Recognised revenue is measured at the
fair value of the consideration agreed,
exclusive of VAT, charges, etc. collected
on behalf of third parties. All types of dis-
counts granted are recognised in revenue.
Exchange differences in receivables from
the sale of goods and services in foreign
currencies are recognised in revenue. Fair
value corresponds to the price agreed
discounted to net present value, where
the terms of payment exceed 12 months.
The part of total consideration that is
variable, for example in the form of
discounts, bonus payments, etc., is only
recognised in revenue when it is reason-
ably certain that there will be no reversal
thereof in subsequent periods. This also
applies to the goods that are expected
to be returned by fulfilling the Company’s
return obligations based on historical
experience on actual return percentages
and product mix. Customers are typically
entitled to return online purchases within
two weeks, but when returning Christmas
presents purchased between 1 November
and 23 December, they have 14-90 days.
COST OF GOODS FOR RESALE
Cost of goods for resale include
expenses incurred to generate revenue
for the year. Cost of goods for resale are
recognised in line with revenue. Change
in inventories for the year is included in
the cost of goods for resale. Exchange
differences relating to suppliers of goods
and services in foreign currencies are
recognised in cost of goods for resale.
OTHER EXTERNAL EXPENSES
Other external expenses include
expenses for distribution and advertising,
sale, administration, premises, losses on
trade receivables and rental expenses
under operating leases.
STAFF COSTS
Staff costs include salaries, consider-
ations, pensions and other staff costs
related to the Company’s employees.
DEPRECIATION, AMORTISATION AND
IMPAIRMENT LOSSES ON INTANGIBLE
ASSETS AS WELL AS PROPERTY,
PLANT AND EQUIPMENT
Depreciation, amortisation and
impairment losses on property, plant and
equipment and intangible assets include
depreciation of property, plant and
equipment and amortisation of intangible
assets, as well as impairment losses for
the year as a result of impairment.
OTHER OPERATING INCOME AND
OPERATING EXPENSES
Other operating income and expens-
es comprise income and expenses of
a secondary nature to the activities of
the Company, including gains or losses
from current sale and replacement of
intangible assets and property, plant
and equipment. Gains or losses from the
disposal of intangible assets and property,
plant and equipment are determined as
the difference between the selling price
less selling costs and the carrying amount
at the time of disposal.
INCOME IN THE FORM OF COMPEN-
SATION RECEIVED FROM PUBLIC
AUTHORITIES
Compensation received from public
authorities is recognised in other
operating income in line with the costs
associated with the compensation, once
the Company has obtained final commit-
ment from the compensation provider
that it is likely that the Company will meet
the conditions attached to the com-
pensation and it is highly likely that the
compensation will not have to be repaid.
SHARE OF PROFIT/LOSS AFTER TAX IN
GROUP ENTERPRISES
According to the equity method, a
proportion of profit or loss after tax in the
underlying enterprises is to be recognised
in the income statement. Shares of
profit or loss after tax in subsidiaries and
associates are presented in the income
statement as separate line items.
Full elimination of intra-group profit/loss
is made for investments in subsidiaries.
For investments in associates, only a
proportionate elimination of intra-group
profit/loss is made.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses comprise
interest income and expenses, the
interest element of finance lease pay-
ments, realised and unrealised capital
gains and losses in respect of securities,
debt and transactions in foreign
currencies, amortisation of financial assets
and liabilities as well as interest charges
and interest reimbursement under the
on-account taxation scheme.
Financial items are recognised at the
amounts relating to the financial year.
TAX ON PROFIT/LOSS FOR THE YEAR
The parent is jointly taxed with its Danish
subsidiaries and the ultimate Danish
parent company, Jens Poulsen Holding
ApS, as well as this parent’s other
Danish subsidiaries. The current Danish
corporation tax is allocated to the jointly
taxed Danish companies in proportion to
their taxable incomes.
The jointly taxed Danish enterprises
are included in the on-account
taxation scheme.
Tax for the year consists of current tax
for the year and any changes in deferred
tax for the year. The tax attributable to
the profit for the year is recognised in
the income statement, whereas the tax
attributable to equity transactions is
recognised directly in equity.
BALANCE
Intangible assets
GOODWILL
Goodwill is amortised on a straight-
line basis over the estimated useful life
determined on the basis of Manage-
ment’s experience with the individual
business areas. The amortisation period
is ten years. Management estimates a
useful life of at least ten years for the
Company’s goodwill. Emphasis is placed
on the Company’s brands being well
incorporated in the market and providing
satisfactory earnings. Goodwill is written
down to the lower of the recoverable
amount or carrying amount. However,
goodwill for agencies with a contractual
term of 1 to 3 years is amortised
over this period.
PROPERTY, PLANT AND EQUIPMENT
Leasehold improvements and other
fixtures and fittings, tools and equipment
are measured at cost less accumulated
depreciation and less any accumulated
impairment losses.
Cost comprises the cost of acquisition as
well as expenses directly related to the
acquisition up until the time when the
asset is ready for use.
Where parts of an item of property, plant
and equipment have different useful lives,
they are depreciated as separate items of
property, plant and equipment.
DK CompanyNotes 64 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Depreciation is calculated using the
straight-line method over the estimated
useful lives of the assets, which are:
Leasehold improvements
2 - 10 years
Other fixtures and fittings,
tools and equipment
3 - 6 years
The basis of depreciation is cost less
estimated residual value at the end of the
useful life and reduced by any impair-
ment loss. The depreciation period and
the residual value are determined at the
date of acquisition and are reassessed
annually. If the residual value exceeds
the carrying amount of the asset,
depreciation is discontinued.
If the period of depreciation or the
residual value changes, the effect on
depreciation is recognised prospectively
as a change in the accounting estimate.
Gains or losses from the disposal of
property, plant and equipment are
calculated as the difference between the
selling price less selling costs and the
carrying amount at the time of disposal.
Profit or losses are recognised in the
income statement under other operating
income and other operating expenses,
respectively.
LEASES
The Company has chosen IAS 17 as
interpretation for the classification and
recognition of leases.
Leases in respect of assets in terms
of which the Company assumes all
substantial risks and rewards of ownership
(finance leases) are initially recognised
in the balance sheet at the lower of the
assets’ fair value and the net present
value of the future minimum lease pay-
ments. When computing the net present
value, the interest rate implicit in the
lease or the alternative borrowing rate is
applied as the discount rate. After that,
assets acquired under finance leases are
treated in the same way as the other
assets of the Company.
The capitalised lease obligation is
recognised in the balance sheet under
debt, and the interest element of the
lease payment is charged over the lease
term to the income statement under
finance costs. After initial recognition,
lease obligations are measured at
amortised cost.
All other leases are considered operating
leases. Payments made under operating
leases and other rental agreements are
recognised in the income statement over
the lease term. The Company’s total
liability relating to operating leases and
rental agreements is disclosed under
contingent assets and liabilities, etc.
OTHER NON-CURRENT ASSETS
Investments in group enterprises
Investments in group enterprises are
measured according to the equity
method. The Company has chosen
the equity method as its
measurement method.
This implies that investments are
measured at cost on initial recogni-
tion. Cost is allocated according to the
purchase method.
Newly acquired or newly established
enterprises are recognised in the financial
statements from the date of acquisition
or establishment. Enterprises sold or
wound up are recognised until the date
of disposal. Comparative figures are
not restated for newly acquired, sold or
wound-up enterprises.
The date of acquisition is the date when
the Company obtains actual control of
the entity acquired.
Acquisitions of new group enterprises
are accounted for using the purchase
method under which the identified assets
and liabilities of the newly acquired
enterprises acquired are measured at
fair value at the date of acquisition.
Identifiable intangible assets are
recognised if they can be separated from
or arise from a contractual right. Deferred
tax is recognised on the revaluations.
Positive differences (goodwill) between
the cost and fair value of the identifiable
assets, liabilities and contingent
liabilities acquired are recognised under
investments in group enterprises.
The difference is amortised systematically
in the income statement according to
an individual estimation of the useful
life determined on the basis of Manage-
ment’s experience with the individual
business areas.
Negative differences (negative goodwill)
are recognised in the income statement
at the date of acquisition.
Costs incurred in connection with
acquisitions (transaction costs) are
recognised directly in the income state-
ment under shares of profit or loss after
tax of group enterprises in the year of
incurrence. In contrast to the accounting
policies applied in the Consolidated
Financial Statements, where such costs
are recognised directly in the income
statement under special items, the parent
discloses these special items only in a
separate note to the income statement.
If, at the date of the acquisition, there
is uncertainty as to the identification
or measurement of acquired assets,
liabilities, contingent liabilities or the
determination of the purchase consider-
ation, initial recognition is made on the
basis of provisionally determined values.
If it subsequently turns out that the iden-
tification or measurement of the purchase
consideration, acquired assets, liabilities
or contingent liabilities was not correct
on initial recognition, the statement is
adjusted retrospectively. Goodwill and
negative goodwill from acquired enter-
prises may be adjusted up to 12 months
after acquisition.
Cost is adjusted for shares of profit or loss
after tax deducting or adding unrealised
intra-group profits and losses.
Dividends received are deducted from
the carrying amount.
Investments in group enterprises that are
measured at equity value are subject to
impairment tests in case of indication of
impairment.
On divestment of group enterprises in
which control is no longer maintained,
profits or losses are determined as the
difference between the net selling price
on the one hand and the proportion of
the carrying amount of net assets on the
other. Gains or losses are recognised in
the income statement under financial
income and expenses, net. If the
Company continues to hold investments
in the divested group enterprise, the
remaining proportion of the carrying
amount forms the basis for measurement
of investments in group enterprises.
DK CompanyNotes 65 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
OTHER RECEIVABLES
Deposits are measured at amortised cost.
IMPAIRMENT OF NON-CURRENT
ASSETS
The carrying amounts of intangible assets
and property, plant and equipment as
well as investments in group enterprises
are assessed annually to determine
whether there is any indication of
impairment other than that expressed
by amortisation and depreciation.
In the event of indications of impairment,
an impairment test is carried out of
each individual asset or group of assets.
Write-down is made to the lower of the
recoverable amount or carrying amount.
The recoverable amount used is the
higher of net selling price and value in
use. The value in use is calculated as
the net present value of the expected
net cash flows from the use of the asset
or asset group and expected net cash
flows on the disposal of the asset or asset
group on expiry of the useful life.
Previously recognised impairment losses
are reversed when the basis for the
impairment loss no longer exists.
An impairment loss in respect of goodwill
is not reversed.
INVENTORIES
Inventories are measured at cost under
the FIFO method. If the net realisable
value of inventories is lower than cost,
write-down is made to this lower value.
The cost of inventories equals landed
cost.
The net realisable value of inventories is
calculated as the selling price less costs
of completion and costs incurred to
execute sales. The net realisable value
is determined allowing for marketability,
obsolescence and development in
expected selling price.
RECEIVABLES
Receivables are measured at amortised
cost.
The Company has chosen IAS 39 as inter-
pretation for the write-down of financial
receivables.
Write-down to net realisable value
is made for estimated bad debts.
Assessment of write-downs for estimated
bad debt is carried out at both individual
and portfolio level using a provisions
account.
DEFERERED INCOME
Deferred income that are recognised
under assets include expenses related to
subsequent reporting periods.
EQUITY – RESERVE FOR NET REVALUA-
TION UNDER THE EQUITY METHOD
Reserve for net revaluation under the
equity method includes net revaluation of
investments in group enterprises relative
to cost.The reserve may be eliminated in
case of loss, realisation of investments or
changes in accounting estimates.
This reserve cannot be recognised at a
negative amount.
EQUITY – DIVIDEND
Dividend expected to be paid for the
year is disclosed as a separate equity
item. Proposed dividend is recognised
as a liability when a resolution approving
the dividend has been adopted by the
general meeting (the time of declaration).
CORPORATION TAX AND
DEFERRED TAX
Current tax liabilities and receivables
are recognised in the balance sheet as
tax calculated on the taxable income for
the year, adjusted for tax on the taxable
income of previous years and for taxes
paid on account.
Deferred tax is measured under the
balance sheet liability method on
the basis of all temporary differences
between the carrying amount and the tax
base of assets and liabilities. However, no
deferred tax is recognised on temporary
differences relating to goodwill not de-
ductible for tax purposes, or other items
where temporary differences – except
in the case of business acquisitions –
have arisen at the date of acquisition
and affect neither the net profit for the
year nor the taxable income. In cases
where the computation of the tax base
may be made according to different tax
rules, deferred tax is measured on the
basis of Management’s intended use of
the asset and settlement of the liability,
respectively. Deferred tax assets as well
as deferred tax liabilities are recognised.
Deferred tax assets, including the tax
base of tax loss carry-forwards, are
recognised at the value at which they
are expected to be utilised, either by
elimination in tax on future earnings or
by set-off against deferred tax liabilities
within the same legal tax entity and
jurisdiction.
Deferred tax is adjusted for eliminations
of unrealised intra-group gains and
losses.
Deferred tax is measured on the basis of
the tax rules and tax rates of the respec-
tive countries that will be effective under
the legislation at the balance sheet date
when the deferred tax is expected to
crystallise as current tax. Any changes in
deferred tax due to changes to tax rates
are recognised in the income statement.
DEBT
Financial debts are initially measured
at fair value less any transaction costs.
In subsequent periods, the debts are
measured at amortised cost using “the
effective interest method” so that the
difference between the proceeds and the
nominal value is recognised in the income
statement as financial expenses over the
loan term.
Other payables are measured at net
realisable value.
CASH FLOW STATEMENT
According to section 86(4) of the Danish
Financial Statements Act, no cash flow
statement has been prepared for the
parent as such statement is included in
the cash flow statement for the Group.
DK CompanyNotes 66 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 67 / 81
NOTE 2 - REVENUE (DKK 1,000) 2021 2020
By geography
Denmark 122,004 75,148
Norway 31,858 27,627
Germany 134,702 129,339
Sweden 51,395 44,808
Benelux 49,720 42,215
Canada 17,399 7,716
Other markets in Europe 71,377 60,002
Other markets outside Europe 40,252 10,080
518,707 396,935
NOTE 3 - OTHER OPERATING INCOME (DKK 1,000) 2021 2020
Gain on sale of activities 30 0
COVID-19 compensation 787 8,562
Administration fee 3,736 3,713
4,553 12,275
NOTE 4 - STAFF COSTS (DKK 1,000) 2021 2020
Wages and salaries 59,527 68,323
Pensions 8,733 8,510
Other social security expenses 1,854 1,521
70,114 78,354
Including remuneration to the Board of Directors 475 625
Including remuneration to the Executive Board 6,772 6,853
The above amounts include the value of employee benefits.
Average number of employees 241 241
NOTE 5 - OTHER OPERATING COSTS (DKK 1,000) 2021 2020
Loss on disposal of intangible assets and property, plant and equipment 0 158
Loss on sale of activities 0 25
0 183
NOTE 6 - FINANCIAL INCOME (DKK 1,000) 2021 2020
Interest income from group enterprises 4,440 8,049
Other interest income 188 346
Foreign exchange gains 590 944
5,218 9,339
NOTE 7 - FINANCIAL EXPENSES (DKK 1,000) 2021 2020
Interest expenses related to group enterprises 0 5
Other interest expenses 3,488 10,459
Foreign exchange losses 2,865 334
6,353 10,798
NOTE 8 - TAX ON PROFIT/LOSS FOR THE YEAR (DKK 1,000) 2021 2020
Current tax for the year 21,385 6,271
Change in deferred tax for the year -2,119 -2,277
Adjustment of tax relating to previous years 18 15
19,284 4,009
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 68 / 81
NOTE 9 - INTANGIBLE ASSETS (DKK 1,000)
Goodwill
Cost at 1 January 2021 79,814
Cost at 31 December 2021 79,814
Amortisation and impairment losses at 1 January 2021 74,168
Amortisation for the year 5,646
Amortisation and impairment losses at 31 December 2021 79,814
Carrying amount at 31 December 2021 0
NOTE 10 - PROPERTY, PLANT AND EQUIPMENT (DKK 1,000)
Leasehold
improvements
Other fixtures and fittings,
tools and equipment
Cost at 1 January 2021 15,406 36,724
Additions at cost 10,911 1,152
Disposals at cost -827 -190
Cost at 31 December 2021 25,490 37,686
Depreciation and impairment losses at 1 January 2021 8,612 29,597
Depreciation for the year 2,529 3,818
Reversal of assets sold -827 -190
Depreciation and impairment losses at 31 December
2021
10,314 33,225
Carrying amount at 31 December 2021 15,176 4,461
Carrying amount of leased assets 556
The leased assets relate primarily to inventory and photo copying machines.
The leased assets are provided as security for lease liabilities.
NOTE 11 - INVESTMENTS IN SUBSIDIARIES (DKK 1,000)
Investments in group
enterprises
Cost at 1 January 2021 332,932
Disposal relating to merger, net -500
Cost at 31 December 2021 332,432
Value adjustments at 1 January 2021 225,641
Adjustments from merger 8,477
Correction beginning of year 60
Exchange adjustments from translation of foreign entities 4,972
Share of profit/loss for the year 348,216
Change in equity in group enterprises 23,893
Dividend from group enterprises -222,450
Value adjustments at 31 December 2021 388,809
Transferred to provisions 3,384
Carrying amount at 31 December 2021 724,625
DK Company A/S' share
Group enterprises are specified as follows:
Profit/loss the
year
Equity
DKC Norway AS, Tønsberg, Norway, 100% 2,736 6,024
Miss O ApS, Ikast-Brande, Denmark, 100% 148 1,956
DK Company Vejle A/S, Vejle, Denmark, 86,9% 178,543 318,654
DK Company Retail A/S, Ikast-Brande, Denmark, 100% 5,890 23,543
DK Company Shanghai Ltd., Shanghai, China, 100% 6 -3,384
DK Company Cph A/S, Copenhagen, Denmark, 100% 113,397 206,696
DK Company Canada Inc., Quebec, Canada, 100% 3,814 30,570
DK Company Online A/S, Ikast-Brande, Denmark, 100% 47,720 119,079
DK Company Con A/S, Ikast-Brande, Denmark, 100% 1,070 6,143
DK Company France Sarl, Paris, France, 100% 585 1,593
DK Company Germany Gmbh, Hamburg, Germany, 100% -28 81
Companys Retail AG, Baar, Switzerland, 100% 1,403 3,827
355,284 714,782
Adjustments to intercompany profits 1,960 -7,666
Tax on adjustments to intercompany profits -860 1,266
Adjustments for acquisitions in 2012 -5,889 2,886
Adjustments for acquisitions in 2014 -697 3,353
Adjustments for acquisitions in 2015 -1,487 6,334
Adjustments for acquisitions in 2017 -95 286
Transferred to provisions 0 3,384
348,216 724,625
All subsidiaries are regarded separate entities.
Reference is made to the ‘Group Chart’.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 69 / 81
NOTE 12 - OTHER NON-CURRENT ASSETS (DKK 1,000)
OTHER RECEIVABLES Deposits
Cost at 1 January 2021 1,648
Additions at cost 1,362
Disposals at cost -238
Cost at 31 December 2021 2,772
Carrying amount at 31 December 2021 2,772
NOTE 13 - DEFERRED TAX (DKK 1,000) 2021 2020
Deferred tax at 1 January 4,658 -1,811
Correction beginning of year 0 -5
Deferred tax for the year recognised in profit/loss for the year 2,119 2,277
Deferred tax for the year recognised in equity -8,008 4,197
Deferred tax at 31 December -1,231 4,658
Deferred tax is recognised as follows in the balance sheet: 31.12.2021 31.12.2020
Deferred tax assets 0 4,658
Deferred tax liabilities -1,231 0
-1,231 4,658
Deferred tax relates to: 31.12.2021 31.12.2020
Intangible assets 360 -748
Property, plant and equipment 1,911 1,278
Other current assets 0 -378
Other liabilities -3,502 4,506
-1,231 4,658
The Company has prepared an impairment test of deferred tax assets which shows that the losses will with
reasonable certainty/probability be realised in the foreseeable future, and thus the requirement of convincing
evidence for the recognition of deferred tax assets is considered met.
Provision for deferred tax is made at the tax rate at which temporary differences are expected realised on the
basis of the adopted corporation tax rate of 22%.
NOTE 14 - SHARE CAPITAL (DKK 1,000) 31.12.2021 31.12.2020
The share capital is distributed as follows: 6,000,000 shares of DKK 10 60,000 60,000
60,000 60,000
The share capital has changed as follows:
Share capital at formation 29,000 29,000
Cash capital increase 30.06.2006 6,000 6,000
Capital reduction 25.08.2008 500 500
Capital reduction to cover losses 27.09.2011 -34,300 -34,300
Capital increase through non-cash contribution 27.09.2011 59,995 59,995
Issuance of new shares in DK Company A/S to
IC Group A/S in connection with the acquisition
of an enterprise 30.06.2014 6,883 6,883
Capital reduction 29.07.2016 -8,078 -8,078
60,000 60,000
The Company holds no treasury shares at the balance sheet date. No acquisition or sale of treasury shares has
been completed during the financial year.
NOTE 15 - DEBT (DKK 1,000) 31.12.2021 31.12.2020
Credit institutions 13,347 1,119
Other payables 497 11,037
13,844 12,156
The debt is expected to fall due for payment as
follows:
0-1 year 13,555 7
1-5 year 289 1,112
Over 5 years 0 11,037
13,844 12,156
NOTE 16 - SECURITY
The Company has entered into agreements (letters of credit) for the delivery of goods of DKK 6.1 million
compared to DKK 1.2 million in 2020.
Investments in all significant group enterprises are provided as security for balances with credit institutions
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 70 / 81
NOTE 17 - CONTINGENT ASSETS AND LIABILITIES (DKK 1,000)
Other contingent assets
The company has no contingent assets.
Contingent liabilities
The Company has provided security to cover future lease obligations. The security constitutes DKK 32.2
million compared to DKK 42.8 million in 2020.
In connection with its previous banking activities, the Company has been involved in legal proceedings
concerning the professional liability of advisers. All prior proceedings have been closed by way of settlement.
If the Company becomes party to future litigation and arbitration proceedings, claims may be raised against
the Company.
The Company is jointly and severally liable with DK Company Vejle A/S, DKV Retail A/S, DKV Retail II A/S,
DKC Retail Norway AS, DK Company Cph A/S, DK Company Online A/S, DKC Wholesale A/S, Miss O ApS
and DK Company Retail A/S for the other group enterprises’ banking arrangements with Jyske Bank A/S.
The total liability amounted to DKK 13.6 million at 31 December 2021 (DKK 0 million) (Danske Bank A/S).
The Company is jointly taxed with its parent Jens Poulsen Holding ApS as administration company and is
jointly and severally liable with other jointly taxed companies for payment of corporation tax as from the
accounting period 2013, as well as for withholding tax on interest, royalties and dividends falling due on or
after 1 July 2012. At 31 December 2021, the total amount of outstanding joint corporation tax was
DKK 11.4 milion compared to DKK 6.3 million at 31 December 2020.
Operating lease liabilities comprise the following: 31.12.2021 31.12.2020
Shop leases and buildings:
0-1 year 13,368 10,281
1-5 year 30,738 26,158
44,106 36,439
Leased operating equipment, etc.:
0-1 year 1,808 1,939
1-5 year 1,156 1,855
2,964 3,794
The Company leases properties under operating leases. The typical lease term is between 1-10 years with the
possibility of extension upon expiry.
In addition, the Company leases operating equipment etc. under operating leases. The lease term is typically
between 1-4 years.
FINANCIAL INSTRUMENTS
The Company has entered into forward exchange contracts to hedge future purchases of goods in USD as
well as future sale of goods in SEK, NOK, GBP, CHF and CAD. In relation to the market price at the balance
sheet date, a capital gain is sustained in the amount of DKK 17 million (a capital loss of DKK -22.8 million),
of which DKK 15.9 million (DKK -20.5 million) is recognised directly in equity, while DKK 1.1 million (DKK -2.3
million) is recognised in the income statement.
31.12.2021 Residual maturity
Value of
currency
Fair value
Currency risks:
USD 0-12 months 41,750 17,536
SEK 0-12 months -157,000 1,509
NOK 0-14 months -236,700 -1,204
GBP 0-9 months -2,600 -229
CHF 0-20 months -2,875 -564
CAD 0-9 months -4,425 -48
17,000
31.12.2020 Residual maturity
Value of
currency
Fair value
Currency risks:
USD 0-12 months 46,100 -19,670
SEK 0-9 months -99,000 -2,694
NOK 0-12 months -42,000 -704
GBP 0-4 months -550 69
CHF 0-10 months -995 67
CAD 0-7 months -2,200 127
-22,805
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 71 / 81
NOTE 18 - RELATED PARTIES
Related parties with control
Related parties with control over DK Company A/S:
Name Place of registered office Basis of control
DKC Holding 2011 A/S La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Holding ApS La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Søbjergvej 56, Ikast-Brande Shareholder with ultimate control over
DK Company A/S
Related party transactions
During the financial year, the Company’s related party transactions were solely carried out on an arm’s length basis.
The Company is included in the Consolidated Financial Statements of Jens Poulsen Holding ApS, Ikast-Brande.
NOTE 19 - SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially affect the assessment of the Annual
Report.
NOTE 20 - DISTRIBUTION OF PROFIT (DKK 1,000) 2021 2020
Proposal for distribution of net profit
Reserve for net revaluation under the equity method -175,392 185,750
Retained earnings 123,165 64,952
Proposed dividend for the year 468,560 0
416,333 250,702
NOTE 21 - SPECIAL ITEMS (DKK 1,000) 2021 2020
Special items include material income and expenses of a special nature in relation to the parent's
revenue-generating operating activities, including significant one-off amounts which, in management’s view,
are not part of the parent’s operating activities.
As stated in Management's Review, net profit/loss for the year is affected by a number of factors that deviate
from what Management assesses as being part of the operating activities.
Special items for the year are specified below, including where these are recognised in the income statement.
Income
COVID-19 compensation 787 8,562
787 8,562
Special items are included in the following line items of
the financial statements
Other operating income 787 8,562
Profit or loss on special items, net 787 8,562
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyCompany Information 73 / 81
Company Information
Company DK Company A/S
DK-7430 Ikast
Telephone: +45 96 600 700
+45 96 600 700 24 43 11 18
Founded: 25 November 1958
Registered office: Ikast-Brande Municipality
Financial year: 1 January – 31 December
E-mail: info@dkcompany.com
Web: www.dkcompany.com
Executive Board Jens Poulsen, Group CEO
Jens Obel Jørgensen, CEO
Søren Bak Lauritsen, Group CFO
Jyske Bank A/S
Vestergade 8-16
DK-8600 Silkeborg
BNP Paribas Factor A/S
Stationsparken 21, 1
DK-2600 Glostrup
Midt Factoring A/S
Nygade 111
DK-7430 Ikast
Danske Bank A/S
Holmens Kanal 2
DK-1090 Copenhagen K
Board of Directors Bo Boulund Knudsen, Chairman
Jens Poulsen
Lars Radoor Sørensen
Kasper Toftekær Philipsen
Audit PricewaterhouseCoopers
DK-8000 Aarhus
Banks
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Group Chart
Place of
registered office
Owner-
ship
Ownership
subgroup Currency
Share capital
(DKK 1,000)
SUBSIDIARIES:
Companys Retail AG Switzerland 100% CHF 100
DK Company Canada Inc. Canada 100% CAD 2,200
DK Company Con A/S Denmark 100% DKK 600
DK Company France Sarl France 100% EUR 10
DK Company Germany GmbH Germany 100% EUR 13
DK Company Shanghai Ltd. China 100% RMB 1,282
Miss O ApS Denmark 100% DKK 1,664
DKC NORWAY GROUP:
DKC Norway AS Norway 100% NOK 100
DKC Retail Norge AS Norway 100% NOK 100
DK COMPANY CPH GROUP:
DK Company Cph A/S Denmark 100% DKK 18,000
DK Company Belgium NV Belgium 100% EUR 3,305
DK Company Finland OY Finland 100% EUR 600
DK Company Norge AS Norway 100% NOK 30
Romerike Mote AS Norway 100% NOK 200
DK Company Sweden AB Sweden 100% SEK 10,000
Charlottenberg Fashion AB Sweden 100% SEK 100
DKC Germany GmbH Germany 100% EUR 25
DK Company Netherlands B. V. The Netherlands 100% EUR 10
S T Sweden AB Sweden 100% SEK 100
TOG Clothing (UK) Ltd. UK 100% GBP 100
DK COMPANY ONLINE GROUP:
DK Company Online A/S Denmark 100% DKK 26,500
DK Company Online AB Sweden 100% SEK 200
DK Company Online AG Switzerland 100% CHF 100
DK Company Online AS Norway 100% NOK 100
DK Company Online B.V. The Netherlands 100% EUR 227
DK Company Online GmbH Germany 100% EUR 52
DKC Wholesale A/S Denmark 100% DKK 5,050
DK COMPANY RETAIL GROUP:
DK Company Retail A/S Denmark 100% DKK 16,100
DSM CPH 1 ApS Denmark 80.5% DKK 500
DK Company Retail II A/S Denmark 70% DKK 500
Common Company ApS Denmark 70% DKK 80
DK COMPANY VEJLE GROUP:
DK Company Vejle A/S Denmark 86,9% DKK 8,550
DK Company Málaga S.L. Spain 100% EUR 4
DK Company Norway AS Norway 100% NOK 100
DK Company Vejle Switzerland AG Switzerland 100% CHF 100
DKC Sweden AB Sweden 100% SEK 100
DKC Vejle Belgium NV Belgium 100% EUR 62
DKV Company Canada Inc. Canada 100% CAD 0
DKV France SARL France 100% EUR 1
DKV France Agency SAS France 60% EUR 100
DK CompanyGroup Chart 74 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Place of
registered office
Owner-
ship
Ownership
subgroup Currency
Sharecapital
(DKK 1,000)
DK COMPANY VEJLE GROUP,
continued:
Vennesla Mote AS Norway 50% NOK 300
Vestby Mote AS Norway 50% NOK 600
Vågsbygd Mote AS Norway 50% NOK 600
Østfold Mote AS Norway 50% NOK 600
Åkra Mote AS Norway 50% NOK 500
In companies with a 50% equity interest, DK Company Vejle A/S has control through DKC Retail Norway AS.
The accounts of all subsidiaries were closed at 31 December.
Place of
registered office
Owner-
ship
Ownership
subgroup Currency
Sharecapital
(DKK 1,000 )
DK COMPANY VEJLE GROUP,
continued:
DKV Germany GmbH Germany 100% EUR 25
Meinemarkenmode GmbH Germany 70% EUR 200
DKV Retail A/S Denmark 100% DKK 500
DKV Retail II A/S Denmark 100% DKK 500
DKV UK LTD UK 100% GBP 50
DKC Retail Norway AS Norway 100% NOK 2,600
Butikk Support AS Norway 100% NOK 100
DKV Retail Sweden AB Sweden 100% SEK 50
Dokka Mote AS Norway 100% NOK 100
Drøbak Mote AS Norway 100% NOK 300
Elverum Mote AS Norway 100% NOK 300
Farmandstredet Tekstil AS Norway 100% NOK 1,000
Furuset Mote AS Norway 100% NOK 300
Gjøvik Fashion AS Norway 100% NOK 200
Grimstad Mote AS Norway 100% NOK 399
Hamar Mote AS Norway 100% NOK 300
Haugesund Mote AS Norway 100% NOK 400
Herkules Mote AS Norway 100% NOK 400
Hønefoss Mote AS Norway 100% NOK 400
Johns Wear AS Norway 100% NOK 100
Kino Fashion AS Norway 100% NOK 100
Kino Fashion Oslo AS Norway 100% NOK 294
Kristiansand Mote AS Norway 100% NOK 300
Kristiansund Mote AS Norway 100% NOK 300
Kristiansund Tekstil AS Norway 100% NOK 1,000
Larvik Mote AS Norway 100% NOK 200
Lillehammer Mote AS Norway 100% NOK 400
Lillestrøm Mote AS Norway 100% NOK 400
Motedrift AS Norway 100% NOK 100
Nesodden Mote AS Norway 100% NOK 600
Orkanger Mote AS Norway 100% NOK 300
Oslo City Fashion AS Norway 100% NOK 200
Porten Mote AS Norway 100% NOK 200
Romsdal Mote AS Norway 100% NOK 400
Sandvika Mote AS Norway 100% NOK 200
Sentralbanestasjonen Tekstil AS Norway 100% NOK 601
Strømmen Mote AS Norway 100% NOK 150
Synic Mote AS Norway 100% NOK 100
Tinn Mote AS Norway 100% NOK 175
Trondheim Mote AS Norway 100% NOK 200
Tveita Mote AS Norway 100% NOK 200
Valentino AS Norway 100% NOK 350
Zikk Zakk AS Norway 100% NOK 751
Harstad Mote AS Norway 85.1% NOK 350
Bodø Mote AS Norway 75% NOK 400
Partner Mote AS Norway 75% NOK 200
Finnsnes Mote AS Norway 75% NOK 350
Narvik Mote AS Norway 75% NOK 300
Nord Mote AS Norway 75% NOK 30
Tromsø Tekstil AS Norway 75% NOK 100
Tromsø Mote AS Norway 65% NOK 100
Hammerfest Mote AS Norway 50% NOK 200
Steinkjer Mote AS Norway 50% NOK 200
DK CompanyGroup Chart 75 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyDefinition of Financial Ratios 76 / 81
Definition of Financial Ratios
The financial ratios stated in the Annual
Report have been calculated as follows:
(Revenue for the year - last year’s revenue) x 100
Revenue growth (%) = Last year’s revenue
Gross profit/loss x 100
Gross margin (%) = Revenue
Operating profit/loss x 100
Profit margin (%) = Revenue
Equity excluding non-controlling interests end of year x 100
Solvency ratio (%) = Total assets at year end
Profit/loss attributable to shareholders of the parent x 100
Return on equity (%) = Average equity, excluding non-controlling interests
Net interest-bearing cash / debt position =
Current and non-current payables to credit institutions and
lease commitments less cash
Net interest-bearing cash / debt position
Gearing (%) =
Profit/Loss before depreciation/amortisation and financial
income and expenses
Net interest-bearing cash / debt position
Borrowing base (%) = Inventories + trade receivables + trade payable
Parent’s dividend yield x nominal value of share
Dividend per share = 100
The financial highlights have been calculated in accordance with the recommendations issued
by the Danish Society of Financial Analysts.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyManagement’s Statement 78 / 81
Management’s
Statement
EXECUTIVE BOARD
BOARD OF DIRECTORS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyIndependent Auditor’s Report 79 / 81
Independent Auditor’s Report
OPINION
BASIS FOR OPINION
STATEMENT ON
MANAGEMENT’S REVIEW
MANAGEMENT’S RESPONSIBILITIES
FOR THE FINANCIAL STATEMENTS
AUDITOR’S RESPONSIBILITIES
FOR THE AUDIT OF THE
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyIndependent Auditor’s Report 80 / 81
CVR No 33 77 12 31
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
We believe in the magic of win-win