The Annual Report was presented and adopted at the Annual General Meeting of the Company on 11 May 2023
ANNUAL REPORT 2022
Contents
MANAGEMENT’S REVIEW
04 Another record year for DK Company Group
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 State-
ments
PARENT COMPANY FINANCIAL STATEMENTS
56 Parent Company Financial Statements
60 Notes to the Parent Company Financial
Statements
GROUP CHART AND
FINANCIAL RATIOS
71 Company Information
72 Group Chart
74 Definition of Financial Ratios
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
76 Management’s Statement
77 Independent Auditor’s Report
DK Company 02 / 81
DK Company 03 / 81
MANAGEMENT’S REVIEW
04 Another record year for DK Company Group
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
Another record year
for DK Company Group
The financial year 2022 was a record year for
DK Company with a turnover of DKK 4.6 billion
compared to last year DKK 3.9 billion and a result
of DKK 660 million against DKK 612 million
last year.
The expectation for 2022 was a growth in turnover
by 10% and a result at par with 2021.
Group CEO and main shareholder Jens Poulsen
states: “We are incredibly satisfied with and
proud of our result for 2022, which reflects an
organic growth of 18 %, where all activities from
wholesale to online and retail have contributed.
The result must be seen in the light of the major
challenges we have experienced throughout the
year; delays in the supply chain, high freight prices,
general challenges in terms of both US dollars and
Swedish and Norwegian kroner, and especially
in the second half of the year a reluctant buying
behavior among consumers.”
Growth in all divisions
In 2022 DK Company celebrated the 10th
anniversary of the takeover of the activities in
Vejle, which under the management of Kasper
Philipsen have tripled over the last 10 years and is
a significant part of the group’s total activities. “I
am impressed by the growth and the results that
the Vejle division has managed to create in 10
years,” says Jens Poulsen. The growth and results
come from all three Group divisions, which in
addition to the Vejle division consists of Ikast and
Copenhagen under the leadership of Jens Obel.
“I am delighted that we stand together and that
all activities contribute positively to growth. Our
employees have, as always, made an impressive
effort and contributed to securing the company’s
good results,” concludes Jens Poulsen.
Large investments in warehouse automation
During 2023, DK Company expects to invest
significantly in warehouse automation to meet the
continued growth, which is challenging the ware-
houses to the limit. In the beginning of 2023, DK
Company Vejle A/S has entered into a significant
agreement of automation of the warehouse in
Vejle by purchasing an Autostore solution and
taking over a 25,000 m2 warehouse in Kolding.
When the acquired Autostore and warehouse of
25,000 m2 are up running, DK Company Vejle A/S
will have a total of 120,000 m2 of warehouse.
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
Group CFO
Kasper Philipsen
Shareholder DK Company Vejle A/S
CEO Vejle
Expectations for 2023
In 2022 DK Company achieved another great
growth and bottom line. In 2023, our task
is to implement this growth and ensure that
our warehouse and logistics can keep up. DK
Company’s expectations for 2023 are that the
year will be a year of consolidation. We face
more challenging market conditions for all sales
channels and with high volatility in two of the
main currencies, NOK and USD, a result in the
level DKK 630-660 million is expected.
“At the same time, we will expand and invest
in both logistics and sales channels, so that the
group is ready for further growth and acquisi-
tions in the coming years.”
DK Company 04 / 81Another record year
MANAGEMENT’S REVIEW
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
20182019202020212022
4,646
3,911
3,254
3,388
3,056
20182019202020212022
677
629
347
199
238
20182019202020212022
181
192
15
-5
-224
20182019202020212022
52.3
52.3
41.3
26.1
38.2
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) 2022 2021 2020 2019
2)
2018
3)
Revenue 4,646,260 3,911,731 3,254,339 3,388,058 3,056,871
Expenses -3,837,973 -3,132,575 -2,753,003 -3,042,742 -2,783,303
Other operating income 6,522 0 1,150 6,195 461
Other operating expenses -728 -271 -4,079 -2,921 -3,450
Profit before depreciation, amortisation and financial income and expenses 814,081 778,885 498,407 348,590 270,579
Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment -137,440 -150,232 -165,648 -153,692 -30,301
Operating profit before special items 676,641 628,653 332,759 194,898 240,278
Special items 0 0 14,656 3,618 -1,961
Operating profit 676,641 628,653 347,415 198,516 238,317
Financial income and expenses, net amounts -15,657 -16,882 -12,605 -16,179 2,124
Profit before tax 660,984 611,771 334,810 182,337 240,441
Tax on profit for the year -146,504 -137,791 -50,413 -34,193 -49,251
Profit for the year incl. minority interests 514,480 473,980 284,397 148,144 191,190
Profit/Loss attributable to shareholders of the parent 473,067 430,146 262,147 136,692 175,426
Non-current assets 672,304 538,525 604,378 736,840 293,116
Current assets 1,854,894 1,495,169 1,279,217 1,043,361 1,049,502
Total assets 2,527,198 2,033,694 1,883,595 1,780,201 1,342,618
Equity of shareholders of the parent 883,092 925,068 718,991 549,582 497,123
Minority interests 68,601 76,620 53,121 25,757 27,887
Total equity 951,693 1,001,688 772,112 575,339 525,010
Non-current liabilities 230,846 173,357 261,438 537,943 227,080
Current liabilities 1,344,659 858,649 850,045 666,920 590,528
Total equity and liabilities 2,527,198 2,033,694 1,883,595 1,780,202 1,342,618
Cash flows from operating activities 473,331 691,841 656,197 360,667 93,091
Cash flows for investing activities -66,127 -53,149 -37,381 -54,478 -20,191
Cash flows from financing activities -630,807 -457,441 -426,369 -291,413 -77,597
Total cash flows -223,603 181,251 192,447 14,776 -4,697
Investments in property, plant and equipment -318,139 -101,408 -75,175 -27,140 -25,823
Depreciation on property, plant and equipment 136,287 145,149 160,943 146,178 27,701
Average number of employees 1,647 1,468 1,523 1,677 1,550
Financial ratios
Revenue growth (%) 18.8 20.2 -3.9 10.8 3.3
Gross margin (%) 55.4 57.3 54.9 53.0 54.8
Profit margin (%) 14.6 16.1 10.7 5.9 7.8
Solvency ratio (%) 34.9 45.5 38.2 30.9 37.0
Return on equity (%)
1)
52.3 52.3 41.3 26.1 38.2
Dividend per share, DKK 78.1 46.7 8.1 10.9 77.7
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 Company 06 / 81Another record year
ANOTHER RECORD
YEAR
26 BRANDS
18.8%
Development
in revenue
(DKK MILLION)
The record result for 2022 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 450 shops:
fully and partly owned,
franchises, consession and
consignment.
32
Selling points
16,500
Countries
35
Shops
450
13,3%
3,8%
5,2%
4,8%
9,3%
11,7%
21,5%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
16,0%
13,6%
0,8%
DISTRIBUTION
BY COUNTRY
20222021202020192018
3,912
3,388
3,254
3,057
4,646
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 Company 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 diversifica-
tion into 26 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 161
shops, which are wholly or partly owned by DK
Company or operated on a franchise basis.
A number of brands have a total of 289 conces-
sion and consignment agreements with a number
of European department stores. All the Group’s
brands are sold on the Group’s e-commerce plat-
forms. 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 cus-
tomers. 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 26 well-established brands provides the
foundation for implementation 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, Ichi 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 colla-
boration 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 Compa-
ny’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 em-
ployees, 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
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HR
HR
Finance
Control
HR
Retail
Control
Logistics
Warehouse
Finance
Department
Finance
Control
Logistics
Group
Finance
Group
Communication
HR
Finance
Control
DKC Purchase India
DK COMPANY
Ikast
DK COMPANY
Cph
RETAIL
ONLINE
new
opportunities
new
opportunities
new
opportunities
Concession
FEMALE
DK COMPANY
Vejle
Guangzhou
MALE
DK COMPANY
Vejle
Finance
Control
Finance
Department
Warehouse
Group CSR
Group IT
DKC Purchase India
Purchase Shanghai
Express
office
DKC Purchase Turkey
Eastern
DKC Purchase Bangladesh
DKC Purchase
Europe
Meine
Marken Mode
new
opportunities
brand shops
THE BLOOMING CONCEPT
The strategy is based on ‘The Blooming Concept’
visualised by a flower. The flower 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 develop-
ment 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 corpo-
rate 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 nour-
ishment 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 differ-
ent 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 earn-
ings and growth. People, networks and long-term
relationships are therefore crucial to the Group.
STRENGTH OF THE
BLOOMING CONCEPT
Several years of experience have provided
DK Company with considerable 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 ad-
aptable 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-ef-
fective systems which help create success for the
individual brands.
While integrating and consolidating its acquisi-
tions, 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 com-
plementary enterprises and/or brands which
benefit from the stability of the stem, thus en-
abling the individual brands to maintain focus
on developing products for the sales channels.
Likewise, the work on harmonising the Group’s
IT platform, finance function and purchasing
procedures has contributed to establishing a
plug-and-play set-up, which makes future integra-
tions 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 indi-
vidual brands by retail, wholesale 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-com-
merce 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-ef-
fective way.
09 / 81DK CompanyThe Blooming Concept
MANAGEMENT’S REVIEW
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Multi-Brand Strategy
DK Company’s multi-brand strategy is based on a
portfolio of 26 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 diversi-
fication, 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 161 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 289 concession and con-
signment agreements with a number of European
department stores.
When cooperating with a third party on the opera-
tion 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 collab-
oration 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
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• 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
strategically 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
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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, Fransa Plus
Size Selection, 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, Sorbet and The JoggConcept.
The Group’s retail concepts are: !Solid, b-young, Fransa, Ichi 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
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REVENUE
The Group’s revenue was DKK 4.6 billion
(DKK 3.9 billion), which is an increase of
DKK 735 million on 2022. The increase was
generated from organic growth.
GROSS PROFIT
Gross profit was DKK 2.6 billion (DKK 2.2 bil-
lion). The Group realised a higher profit due
to higher revenue generated from organic
growth
COSTS
Other external expenses constituted DKK
960 million (DKK 788 million). The increase is
due to a higher level of activity of the Group.
Depreciation, amortisation and impairment
losses for the year were DKK 137 million
(DKK 150 million).
FINANCIAL INCOME AND EXPENSES
PROFIT FOR THE YEAR TAX INVESTMENTS
Financial income and expenses represent a
net cost of DKK 16 million (a net cost of
DKK 17 million).
Profit before tax was DKK 661 million
(DKK 612 million).
In the financial year, tax of DKK 147 million
(DKK 138 million) was recognised in the
income statement.
In 2022, DK Company invested DKK 72 mil-
lion (DKK 51 million) in non-current assets.
Report on Profit and Loss
In 2022, DK Company’s revenue totalled DKK 4.6 billion
compared to last year’s revenue of DKK 3.9 billion.
Profit before tax was DKK 661 million (DKK 612 million),
corresponding to a profit margin of 14.6% (16.1%).
DK CompanyReport on Profit and Loss 13 / 81
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CASH FLOWS
TOTAL EQUITY
SUBSEQUENT EVENTS PENDING LAWSUITS
In 2022, the Group reduced its total liquidity
by DKK 224 million after a dividend off DKK
468 million paid out in 2022.
The Group generated cash flows from op-
erating activities of DKK 473 million in 2022
compared to DKK 692 million in 2021. The
lower cash flow development in 2022 is due
to investment in inventory.
Cash flows from investing activities constitut-
ed an expense of DKK 66 million compared
to an expense of DKK 53 million in 2021.
Cash flows from financing activities were DKK
631 million compared to DKK 457 million in
2021. In 2022, the Group distributed divi-
dends of DKK 468 million (DKK 304 million).
The total cash flow changes for the year are
negative with DKK 224 million compared to
DKK 181 million
for 2021.
The Group’s total equity, exclusive of
minority interests, is determined at DKK 952
million (DKK 1,002 million), after distruted
dividens of DKK 468 million. The solvency
ratio is 34.9% (45.5%).
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 2022, the company realised revenue of
DKK 683 million (DKK 591 million). Profit
before tax was DKK 477 million (DKK 439
million). The results are considered
satisfactory.
The company has in 2022 merged with the
subsidiarie DKC Wholesale A/S
Proposal for distribution of profit:
Net profit for the year of DKK 457 million
(DKK 416 million) is proposed distributed
as follows:
DKK MIILLION 2022 2021
Reserve for net
revaluation according
to the equity method 227 -175
Retained earnings 44 123
Proposed dividend for
the year 187 468
Total 458 416
DK CompanyReport on Profit and Loss 14 / 81
2022
952
DKK MILLION
2021
1,002
DKK MILLION
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 experi-
ence 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 26 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 fashion-
ability. In general, DK Company’s collections are
developed on a commercial 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 con-
sumer 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 develop-
ment is not on track. As an example, the sales de-
partment 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 pre-
pared 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
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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 trademark 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, Fransa Plus
Size Selection, FQ1924, ICHI, InWear, Kaffe Curve,
Lounge Nine, Matinique, My Essential Wardrobe,
Part Two, Pulz Jeans, Saint Tropez, Soaked in Luxury,
Solid, Sorbet 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 diversifi-
cation. 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 dependent 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 competen-
cies, 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
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FINANCIAL STATEMENTS
GROUP CHART AND
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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-com-
merce, 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 continuously
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
Switzerland 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 an international insurance
partner.
In cooperation with the insurance partner, 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 con-
tract 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 un-
able 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 de-
partment 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 proceedings. Although DK Com-
pany 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
intercompany trade. Should DK Company’s inter-
company 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
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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 transaction 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 transla-
tion of the value of assets and liabilities in foreign
currencies.
DK Company buys many of its products from
suppliers whose products are priced in curren-
cies 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 ob-
taining 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 28 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 re-
strictions 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 juris-
dictions worldwide. Local tax rules and inter-
pretations 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
reliability 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 26 brands.
DK Company 18 / 81Risk Management
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MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
We are incredibly satisfied with and proud of our
result for 2022, which reflects an organic growth of
18%, where all activities from wholesale to online and
retail have contributed. The result must be seen in the
light of the major challenges we have experienced
throughout the year; delays in the supply chain, high
freight prices, general challenges in terms of both
US dollars and Swedish and Norwegian kroner, and
especially in the second half of the year a reluctant
buying behavior among consumers.
DK Company 19 / 81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
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GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S REVIEW
DK Company 20 / 81
Statement on Responsibility
In accordance with sections 99a, 99b and 99d of the Danish
Financial Statements Act for the financial year 2022 the annual
report must contain a statutory statement on corporate social
responsibility, diversity and data ethics.
The statement is included in DK Company’s Responsibility
Report, which is a summary and provides insight into how the
DK Company Group works with responsibility. The journey to
become more responsible is an ongoing process during which
we continuously learn from experience and find new ways to
make an impact and improve our processes.
The responsibility report makes it possible to dive into our
work on the UN’s global goals. The statement contains
excerpts from our policies on corporate social responsibility,
which relate to human rights, social issues, employee relations,
environment, climate, and anti-corruption.
The report can be downloaded from the company’s website.
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 2022 2021
3 Revenue 4,646,260 3,911,731
Cost of sales -2,070,892 -1,669,454
Gross profit 2,575,368 2,242,277
Other external expenses
-960,112 -788,221
4 Staff costs -806,969 -674,900
5 Other operating income 6,522 0
6 Other operating expenses -728 -271
Profit before depreciation, amortisation and financial income and expenses 814,081 778,885
7 Depreciation, amortisation and impairment losses on intangible assets as well
as property, plant and equipment -137,440 -150,232
Operating profit 676,641 628,653
8 Financial income 21,902 14,130
9 Financial expenses -37,559 -31,012
Financial income and expenses, net amounts -15,657 -16,882
Profit before tax 660,984 611,771
10 Tax on profit for the year -146,504 -137,791
PROFIT FOR THE YEAR 514,480 473,980
Profit is attributable to:
Shareholders of the parent 473,067 430,146
Minority interests 41,413 43,834
Statement of Comprehensive
Income (DKK 1,000)
2022 2021
Profit for the year 514,480 473,980
Items that may be reclassified to the income statement:
Exchange adjustments from translation of foreign entities -11,126 6,057
Fair value adjustments of hedging instruments:
Value adjustment for the year -233,176 -140,643
Any value adjustments reclassified to the income statement 185,420 210,562
Tax on other comprehensive income 10,506 -15,382
Other comprehensive income -48,376 60,594
Total comprehensive income 466,104 534,574
Profit is attributable to:
Shareholders of the parent 428,280 486,571
Minority interests 37,824 48,003
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 31.12.2022 31.12.2021
NON-CURRENT ASSETS
11 Intangible assets 198,200 197,453
12 Property, plant and equipment 122,607 83,730
13 Leased assets 325,525 233,361
Other receivables 20,725 23,001
Receivables from group enterprises 980 980
15 Deferred tax assets 4,267 0
NON-CURRENT ASSETS 672,304 538,525
CURRENT ASSETS
16 Inventories 1,148,464 658,122
17 Trade receivables 367,355 236,268
18 Other contract assets 19,416 17,689
Receivables from associates 0 3,287
Corporation tax receivable 4,169 0
19 Other receivables 69,977 110,908
Prepaid expenses 21,197 20,976
Cash 224,316 447,919
CURRENT ASSETS 1,854,894 1,495,169
TOTAL ASSETS 2,527,198 2,033,694
Note 31.12.2022 31.12.2021
20
EQUITY
Share capital 60,000 60,000
Foreign currency translation reserves -23,144 -13,141
Hedging reserves -11,597 22,828
Retained comprehensive income 670,933 386,821
Proposed dividend 186,900 468,560
Equity of shareholders of the parent 883,092 925,068
Minority interests 68,601 76,620
EQUITY 951,693 1,001,688
LIABILITIES
NON-CURRENT LIABILITIES
15 Deferred tax liabilities 11,591 19,948
13 Lease liabilities 219,255 152,794
22 Other payables 0 615
NON-CURRENT LIABILITIES 230,846 173,357
CURRENT LIABILITIES
13 Lease liabilities 111,651 94,429
Prepayments received from customers 1,012 2,435
18 Other contract liabilities 46,726 37,750
Trade payables 579,100 464,147
Corporation tax 129,022 15,903
Payables to group enterprises 200,000 0
22 Other payables 277,148 243,985
CURRENT LIABILITIES 1,344,659 858,649
LIABILITIES 1,575,505 1,032,006
TOTAL EQUITY AND LIABILITIES 2,527,198 2,033,694
20222021202020192018
2,034
1,780
1,884
1,343
2,527
TOTAL ASSETS (DKK MILLION)
20222021202020192018
525
575
772
1,002
952
Equity and Liabilities (DKK 1,000)
Balance Sheet
Assets (DKK 1,000)
EQUITY (DKK MILLION)
DK CompanyConsolidated Financial Statements 24 / 81
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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 2022 60,000 -13,141 22,828 386,821 468,560 925,068 76,620 1,001,688
Profit for the year 0 0 0 286,168 186,900 473,067 41,413 514,480
Exchange adjustments from translation of foreign entities 0 -10,003 0 -359 0 -10,362 -764 -11,126
Fair value adjustments of hedging instruments:
Value adjustment for the year 0 0 -215,658 0 0 -215,658 -17,518 -233,176
Value adjustments reclassified to the income statement 0 0 171,524 0 0 171,524 13,896 185,420
Tax on other comprehensive income 0 0 9,709 0 0 9,709 797 10,506
Other comprehensive income 0 -10,003 -34,425 -359 0 -44,787 -3,589 -48,376
Comprehensive income for 2022 0 -10,003 -34,425 285,808 186,900 428,280 37,824 466,104
Adjustment, beginning of year 0 0 0 -208 0 -208 0 -208
Capital contribution to subsidiary 0 0 0 0 0 0 -231 -231
Closure of companies 0 0 0 -1,488 0 -1,488 0 -1,488
Acquisition and sale of minority interests 0 0 0 0 0 0 -511 -511
Dividend 0 0 0 0 -468,560 -468,560 -45,101 -513,661
Changes in equity for 2022 0 0 0 -1,696 -468,560 -470,256 -45,843 -516,099
Equity at 31 December 2022 60,000 -23,144 -11,597 670,933 186,900 883,092 68,601 951,693
Equity at 1 January 2021 60,000 -18,710 -28,076 705,775 0 718,989 53,121 772,110
Profit for the year 0 0 0 -38,414 468,560 430,146 43,834 473,980
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 -38,462 468,560 486,571 48,003 534,574
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
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 2022 2021
Profit before tax 660,984 611,771
24 Adjustments and non-cash transactions 125,025 169,922
25 Change in working capital -267,620 51,753
Cash flows from operating activities before financial income and expenses 518,389 833,446
Interest income received 15,354 7,817
Interest expenses paid -21,589 -15,070
Cash flows from operating activities before tax 512,154 826,193
Corporation tax reimbursed/paid -38,823 -134,352
CASH FLOWS FROM OPERATING ACTIVITIES 473,331 691,841
26 Acquisitions of enterprises -511 0
Acquisition of intangible assets -1,118 -83
Acquisition of property, plant and equipment -71,979 -51,040
Disposal of property, plant and equipment 5,205 832
Acquisition of financial assets -1,758 -3,788
Sale of financial assets 4,034 930
CASH FLOWS FOR INVESTING ACTIVITIES -66,127 -53,149
Changes in other long-term debt -615 -36,207
Repayment of lease liabilities -116,531 -116,850
Dividend paid to minority interests -45,101 -24,034
Dividend paid to shareholders of the parent -468,560 -280,350
CASH FLOWS FROM FINANCING ACTIVITIES -630,807 -457,441
CASH FLOW FOR THE YEAR -223,603 181,251
Cash and cash equivalents, beginning of year 447,919 266,668
CASH AND CASH EQUIVALENTS, END OF YEAR 224,316 447,919
Cash and cash equivalents include:
Cash 224,316 447,919
The cash flow statement cannot be immediately derived from the published financial statements.
DK CompanyCash Flow Statement 26 / 81
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GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
Notes to the Consolidated Financial Statements
28 Note 1 - Accounting policies
35 Note 2 - Significant accounting estimates, assumptions and adjustements
INCOME STATEMENT
BALANCE SHEET
CASH FLOW STATEMENT
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
38 Note 3 - Revenue
39 Note 4 - Staff costs
39 Note 5 - Other operating income
39 Note 6 - Other operating expenses
40 Note 7 - Depreciation, amortisation and impairment losses on
intangible assets and property, plant and equipment
40 Note 8 - Financial income
40 Note 9 - Financial expenses
40 Note 10 - Tax on profit for the yearw
41 Note 11 - Intangible assets
42 Note 11 - Intangible assets, continued
42 Note 12 - Property, plant and equipment
43 Note 13 - Leases
44 Note 14 - Investments in other entities
46 Note 15 - Deferred tax
47 Note 16 - Inventories
47 Note 17 - Trade receivables
48 Note 18 - Contract assets and liabilities
48 Note 19 - Other receivables
48 Note 20 - Equity
49 Note 21 - Debt from financing activities
49 Note 22 - Other payables
49 Note 23 - Adjustments and non-cash transactions
49 Note 24 - Changes in working capital
49 Note 25 - Acquisitions of enterprises
50 Note 26 - Security
50 Note 27 - Contingent assets and liabilities
50 Note 28 - Financial risks
54 Note 29 - Related parties
54 Note 30 - Fee to auditors appointed at the annual general meeting
54 Note 31 - Subsequent events
54 Note 32 - New accounting regulation
54 Note 33 - Shareholder information
54 Note 34 - Adoption of the annual report for publication
DK Company 27 / 81
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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 2022 are prepared in accor-
dance with International Financial Reporting
Standards as adopted by the EU and Danish dis-
closure 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 Denmark.
The Parent Company Financial Statements 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 de-
scribed separately in Note 1 to the Parent Compa-
ny 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 pre-
sented based on historical cost, with the excep-
tion of derivative financial instruments measured
at fair value.
The accounting policies of the Group are de-
scribed 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 actu-
ally existing at the balance sheet date are taken
into account.
Entities in respect of which the Group exercis-
es 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 Con-
solidated 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, intercompa-
ny balances and dividends as well as of realised
and unrealised profits and losses on transactions
between the consolidated enterprises.
The subsidiaries’ items are fully consolidated 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 val-
ue or their proportionate share of the fair value of
the acquired entity’s identifiable assets, liabilities
and contingent 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’ own-
ership shares. The method is determined for each
transaction and disclosed in the notes in connec-
tion with the description of acquired entities.
Minority interests are subsequently adjusted for
their proportionate share of changes in the sub-
sidiary’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 State-
ments from the date of acquisition or establish-
ment, 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 compre-
hensive 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. 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 consideration, 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.
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
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 determina-
tion 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 uncertain-
ty as to the identification or measurement of ac-
quired assets, liabilities or contingent liabilities or
the determination of the purchase consideration,
initial recognition is made on the basis of pro-
visionally 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 con-
sideration are recognised in profit for the year.
Gains or losses on disposal or winding-up of
subsidiaries are calculated as the difference be-
tween 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 accumulated exchange adjust-
ments previously recognised in other comprehen-
sive 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 environment in which the individual re-
porting 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 aris-
ing 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 rec-
ognised 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 aver-
age 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 separate foreign currency translation reserve
under equity. The exchange adjustment is divided
between the parent’s and the minority sharehold-
ers’ shares of equity.
The reserve for foreign currency translation adjust-
ments includes all exchange adjustments resulting
from the translation of financial statements of en-
tities using a functional currency other than DKK.
With respect to full or partial disposal of whol-
ly-owned foreign entities, for which control is ced-
ed, 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 in-
terests 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.
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 deriv-
ative 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 comprehen-
sive 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 rela-
tionship will be discontinued. The accumulated
value change recognised in other comprehensive
income is reclassified to the income statement
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 compre-
hensive income or directly in equity, depending
on where the transaction to which tax for the year
relates is recognised.
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
Tax payable and deferred tax
Current tax liabilities and receivables are rec-
ognised 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 cur-
rent 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 com-
binations – have arisen at the date of acquisition
and affect neither the net profit or loss nor the
taxable income.
Deferred tax on temporary differences 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 av-
erage 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 performance ob-
ligations, 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.
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 pay-
ments, 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
payment 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 ex-
ceeds 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 inven-
tories 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 other expens-
es 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 leas-
es are recognised in other external expenses on a
straight-line basis over the lease term. Develop-
ment costs which do not qualify for recognition in
the balance sheet are recognised in other external
expenses
Staff costs
Staff costs include salaries, considerations, pen-
sions 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 com-
pensation 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 intan-
gible 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.
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
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.
Special items
Special items include major revenue and one-off
costs, e.g. transaction costs, incurred in connec-
tion with the acquisition of subsidiaries and ac-
tivities, restructuring costs and negative goodwill
recognised upon acquisition. These items are pre-
sented 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 for-
eign 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 effective 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 as-
sets, liabilities and contingent liabilities acquired,
see the description in the consolidated financial
statements section.
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 state-
ments section.
When recognised, the amount related to
trademark rights is allocated to the activities of
the Group that generate independent in-
come (cash-generating units). The definition of
cash-generating units follows the management
structure and the internal financial management
policy and Group reporting. Subsequently, trade-
mark rights are measured at cost less accumulat-
ed 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 identifi-
able 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 development 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 asso-
ciated hardware is considered intangible assets,
while other software without which the computer
cannot operate is included as property, plant and
equipment. Software under intangible assets 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 impair-
ment 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 mainte-
nance 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 agree-
ment 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
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
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 guar-
antee.
• The exercise price of call options that, with
high probability, Management expects to
exercise.
• Payments covered by an extension option
that, with high probability, the Group expects
to exercise.
• Penalties related to a termination option un-
less, 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 reassessed when changes in the
underlying 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 pur-
chase, 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 liabili-
ties 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.
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 impair-
ment. 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 recover-
able amount over the income statement in case of
a higher carrying amount.
As a main rule, the recoverable amount is calcu-
lated 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 ex-
tent 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 goodwill 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/amortisation
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 calcu-
lated as expected selling price with deduction of
costs incurred to execute sales. The value is de-
termined allowing for marketability, obsolescence
and development in expected sales sum.
Receivables
Receivables include trade receivables and other
receivables. Receivables are included in the cate-
gory of loans and receivables, which are financial
assets with fixed or determinable payments not
listed in an active market and which are not deriv-
ative financial instruments.
Receivables are initially measured at fair value and
subsequently at amortised cost, usually corre-
sponding 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 life-
time 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 im-
pact of expected changes in relevant parameters.
Assessment of writedowns for estimated bad debt
is carried out using a provisions account.
The revenue recognition of interest on impaired
receivables is calculated on the basis of the im-
paired balance at the effective interest rate of the
individual receivable or portfolio.
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
Other contract assets
Other contract assets include refund assets.
Refund assets include the goods that are expect-
ed to be returned by fulfilling the Group’s return
obligations based on historical experience on ac-
tual 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 resolu-
tion 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 obliga-
tions 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 in-
stitutions, trade payables and other debt to public
authorities, etc. Other financial liabilities are
initially measured at fair value less any transaction
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 rec-
ognised in the income statement for the period
in which the employees have performed the
service entitling them to the pension 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 con-
nection 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-spe-
cific measurement. The entity applies the assump-
tions 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 set-
tling the liability is not taken into account.
The fair value assessment is based on the primary
market. If no primary market exists, the assess-
ment 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 accepted
valuation methods on the basis 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 bro-
ken down by operating, investing 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 re-
lated 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 present-
ed 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 pay-
ments 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 minori-
ty interests,
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 func-
tional 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 recommenda-
tions issued by the Danish Society of Financial
Analysts.
Reference is made to the ‘Definition of Financial
Ratios’.
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
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
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 uncer-
tain 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 Management’s Review in the ‘Risk
management’ section and note 28 ‘Financial risks’
to the Consolidated Financial Statements.
The estimates made and the underlying assump-
tions 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, Man-
agement 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 ex-
tension 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 reas-
sess 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 as-
sets 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 borrow-
ing 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 fi-
nanced 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 State-
ments for 2022 as they have had a significant im-
pact on the assets and liabilities recognised in the
Financial Statements 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 35 / 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 impair-
ment, estimates are made of whether the parts
of the enterprise (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 uncertain-
ty. T he 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 11.
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 enterprise (cash-generating units) to
which the trademarks relate will be able to gener-
ate sufficient positive net cash flows in the future
to support the value of the trademark 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 dis-
count rate.
Due to impairment of the trademark Bon’ A Parte
the value of the trademark of DKK 9 million has
been impaired and written down to DKK 8. 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 11.
2021
20212022
2022
6 1. 9
DKK MILLION
135.6
DKK MILLION
63.8
DKK MILLION
134.4
DKK MILLION
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
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 indica-
tions of impairment. The indication of impairment
is based on the simplified expected credit loss
model under which the total loss is recognised im-
mediately 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)
2021202220212022
108
77
1,148
658
2021202220212022
60
51
427
287
2021202220212022
60
51
427
287
2021202220212022
108
77
1,148
658
DEPRECIATION (DKK MILLION)
DEPRECIATION (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
NOTE 3 - REVENUE (DKK 1,000)
In terms of geography, consolidated revenue may essentially be broken down as follows:
Growth Growth Share Share
Revenue 2022 2021 2022 2021 2022 2021
Denmark 628,971 631,416 -0.4% 8.1% 13.6% 16.2%
Norway 743,737 562,264 32.3% 17,2% 16.0% 14.4%
Germany 997,699 1,010,962 -1.3% 31.8% 21.5% 25.8%
Sweden 545,077 426,003 28.0% 19.0% 11.7% 10.9%
Benelux 434,326 330,617 31.4% 15.4% 9.3% 8.5%
The UK 225,265 157,403 43.1% 15.8% 4.8% 4.0%
Canada 240,655 150,278 60.1% 54.4% 5.2% 3.8%
France 174,345 134,115 30.0% 32.9% 3.8% 3.4%
Other markets in Europe 619,847 449,198 38.0% 9.4% 13.3% 11.5%
Other markets outside Europe 36,338 59,475 -38.9% 72.6% 0.8% 1.5%
4,646,260 3,911,731 18.8% 20.2% 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 significantly 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.
13,3%
3,8%
5,2%
4,8%
9,3%
11,7%
21,5%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
16,0%
13,6%
0,8%
11,5%
3,4%
3,8%
4,0%
8,5%
10,9%
25,8%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
14,4%
16,2%
1,5%
2022 2021
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 4 - STAFF COSTS (DKK 1,000) 2022 2021
Wages and salaries 724,505 601,279
Defined contribution plans 51,304 47,033
Other social security expenses 31,160 26,588
806,969 674,900
Average number of employees 1,647 1,468
The above includes the Group's costs for furloughed employees during COVID-19 in the amount of DKK 0
million (DKK 24 million) less compensation in the amount of DKK -1 million (DKK 7 million).
2022 Board of Directors Executive Board Total
Wages and salaries 475 6,171 6,646
Defined contribution plans 0 516 516
475 6,687 7,162
2021 Board of Directors Executive Board Total
Wages and salaries 475 6,243 6,718
Defined contribution plans 0 529 529
625 6,772 7,247
The above amounts include the value of employee benefits.
NOTE 5 - OTHER OPERATING INCOME (DKK 1,000) 2022 2021
Gain on disposal of intangible assets and property, plant and equipment 3,521 0
Gain on disposal of other receivables 3,001 0
6,522 0
NOTE 6 - OTHER OPERATING EXPENSES (DKK 1,000) 2022 2021
Loss on disposal of intangible assets and property, plant and equipment 728 271
728 271
20222021202020192018
1,468
1,677
1,523
1,550
1,647
AVERAGE NUMBERS OF EMPLOYEES
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 7 - DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES ON
INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT (DKK 1,000) 2022 2021
Trademarks rights 1,153 0
Software 0 5,083
Buildings 765 476
Leasehold improvements 18,100 12,791
Other fixtures and fittings, tools and equipment 9,726 11,693
Leased assets 107,696 120,189
Total depreciation and amortisation 137,440 150,232
NOTE 8 - FINANCIAL INCOME (DKK 1,000) 2022 2021
Other interest income 15,354 7,817
Interest income from financial assets not measured at fair value through profit or loss 15,354 7,817
Foreign exchange gains and fair value adjustment of financial instruments 6,548 6,313
21,902 14,130
NOTE 9 - FINANCIAL EXPENSES (DKK 1,000) 2022 2021
Interest expenses, lease liabilities 4,192 4,721
Other interest expenses 17,397 10,349
Interest expenses from financial liabilities not measured at fair value through profit or
loss 21,589 15,070
Foreign exchange loss and fair value adjustment of financial instruments 15,970 15,942
37,559 31,012
DK CompanyNotes 40 / 81
NOTE 10 - TAX ON PROFIT FOR THE YEAR (DKK 1,000) 2022 2021
Current tax for the year 148,870 139,025
Change in deferred tax for the year -2,923 2,730
Adjustment of tax relating to previous years 557 -3,964
Tax on profit for the year 146,504 137,791
The tax on profit for the year can be explained as follows:
Tax rate of 22.0% on the profit before tax 145,416 134,589
Adjustment of calculated tax in foreign group enterprises in relation
to 22.0% and profit from associates 4,779 14,033
Tax effect of:
Non-taxable income -681 -124
Non-deductible expenses 941 487
Deferred tax asset not recognised -4,512 -7,230
Adjustment of tax relating to previous years 557 -3,964
Tax on profit for the year 146,504 137,791
Effective tax rate 22.2% 22.5%
Total tax for the year includes the following:
Tax on profit/loss for the year, see above 146,504 137,791
Tax on other comprehensive income, see below -10,506 15,382
135,998 153,173
Tax on fair value adjustments of hedging instruments -10,506 15,382
Tax on other comprehensive income -10,506 15,382
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 41 / 81
NOTE 11 - INTANGIBLE ASSETS (DKK 1,000) Goodwill
Trademark
rights Software
Cost at 1 January 2022 62,422 135,591 11,837
Foreign currency translation adjustments 782 0 0
Additions at cost 1,118 0 0
Cost at 31 December 2022 64,322 135,591 11,837
Amortisation and impairment losses at 1 January 2022 560 0 11,837
Amortisation for the year 0 1,153 0
Amortisation and impairment losses at 31 December 2022
560 1,153 11,837
Carrying amount at 31 December 2022 63,762 134,438 0
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 -1,000 -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 0 5,083
Reversal of assets sold 0 0 -16
Amortisation and impairment losses at 31 December 2021
560 0 11,837
Carrying amount at 31 December 2021 61,862 135,591 0
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,budgets/forecasts for the financial years 2023 - 2026 (2021: 2022 - 2025). 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 1.2% at 31 December 2022 and 1.2% at 31 Decem-
ber 2021 and a discount rate before tax of 11.9% at 31 December 2022 and 11.9% at 31 December 2021.
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 de-
velopment 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 2022 nor 2021.
Carrying amount
31.12.2022 31.12.2021
DK Company Cph Group incl. DK Company Canada Inc. 32,518 32,515
DK Company Con A/S 953 953
Earnest money, retail 3,487 3,187
Companys Retail AG 15,646 14,867
Agencies and customer relations 11,158 10,340
Carrying amount of goodwill 63,762 61,862
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 11 - INTANGIBLE ASSETS, CONTINUED (DKK 1,000)
Trademark rights:
Trademark rights relating to acquisitions are, at the time of the acquisition, allocated to the cash-
generating 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
31.12.2022 31.12.2021
Blend He 23,000 23,000
ICHI 5,000 5,000
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 7,779 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 134,438 135,591
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, budgets/forecasts for the financial years 2023-2026 (2021: 2022-2025).
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 line 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 terminal
period of 1.2% at 31 December 2022 and 1.2% at 31 December 2021 and a discount
rate before tax of 11.9% at 31 December 2022 and 11.9% at 31 December 2021.
Impairment of the trademark rights of Bon´A Parte results in a impariment loss of 1 million in 2022
due to expected lower activities in 2023 compared to previous years.
During 2021, the Group has chosen to close 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 2022
nor 2021.
Other intangible assets:
Neither in 2022 nor in 2021 did Management identify a need for impairment of other intangible assets.
NOTE 12 – PROPERTY, PLANT AND EQUIPMENT (DKK 1,000)
Land and
buildings
Leasehold
improvements
Other fixtures and
fittings, tools
and equipment
Cost at 1 January 2022 27,840 100,667 49,941
Foreign currency translation adjustments 0 -1,124 -1,969
Additions at cost 147 56,257 15,575
Disposals at cost -9,755 -5,580 -20,311
Transfer between categories 0 -637 637
Cost at 31 December 2022 18,232 149,583 -43,853
Depreciation and impairment losses at 1 January 2022 7,528 53,035 34,155
Foreign currency translation adjustments 0 -961 -1,911
Depreciation for the year 765 18,100 9,726
Reversal of assets sold -7,176 -4,807 -19,393
Transfer between categories 0 -1,107 1,107
Depreciation and impairment losses at 31 December
2022
1,117 64,260 23,684
Carrying amount at 31 December 2022 17,115 85,323 20,169
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
Depreciation and impairment losses at 31 December
2021
7,528 53,025 34,155
Carrying amount at 31 December 2021 20,312 47,632 15,786
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 13 - LEASES (DKK 1,000)
LEASED ASSETS Properties
Operating
equipment, etc. Total
Carrying amount at 1 January 2022 215,374 17,987 233,361
Foreign currency translation adjustments -2,133 -202 -2,335
Additions 229,727 16,433 246,160
Depreciation for the year -97,467 -10,231 -107,698
Disposals -43,697 -265 -43,962
Carrying amount at 31 December 2022 301,804 23,722 325,526
Carrying amount at 1 January 2021 290,235 23,168 313,403
Foreign currency translation adjustments 5,305 141 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 215,374 17,987 233,361
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: 2022 2021
0-1 years 116,286 98,917
1-5 years 194,666 144,907
Over 5 years 29,887 11,752
Total non-discounted lease liability 340,839 255,576
Lease liability recognised in the balance sheet
Short-term 111,651 94,429
Long-term 219,255 152,794
330,906 247,223
AMOUNT RECOGNISED IN THE INCOME STATEMENT
Interest expenses relating to lease liabilities 4,192 4,721
Lease payments not recognised as part of the lease liability 34,562 12,591
38,754 17,312
For 2022, the Group has paid DKK 120.7 million in relation to leases, of which interest payments related to
recognised lease liabilities of DKK 4.1 million, and repayments of recognised lease liabilities of DKK 116.5
million.
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.
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 - 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. 2022
Revenue
Profit for the
year
Total compre-
hensive income
Minority interests’ share of
profit for the year
Dividend paid to
minority interests’
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest) 49,767 3,913 3,913 1,956 1,839
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 19,5% ownership, minority interest)
55,610 2,923 2,923 570 1,073
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
1,264,533 208,125 243,672 26,568 31,440
Meinemarkenmode GmbH (DK Company Vejle Group)
(Germany, 24.9% ownership, minority interest)
552,324 38,664 38,664 9,627 8,703
Other subsidiaries that are individually immaterial 2,692 2,046
41,413 45,101
Balance Sheet 2022
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)
1,775 11,726 0 9,230 2,136
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 19.5% ownership, minority interest)
3,931 16,102 96 8,819 2,168
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
243,507 525,324 2,831 458,242 40,316
Meinemarkenmode GmbH (DK Company Vejle Group)
(Germany, 24.9% ownership, minority interest)
678 217,456 0 135,599 20,551
Other subsidiaries that are individually immaterial 3,430
68,601
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
Statement of Comprehensive Income, etc. 2021
Revenue
Profit for the
year
Total compre-
hensive income
Minority interests’ share of
profit 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, 29.99% 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 - acquired on 29 February 2020 481,527 46,967 46,967 11,695 2,037
(Germany, 24.9% ownership, minority interest)
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, 29.99% 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 - acquired on 29 February 2020
(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
NOTE 15 – DEFERRED TAX (DKK 1,000) 2022 2021
Deferred tax at 1 January -19,948 -3,322
Correction beginning of year -807 388
Foreign currency translation adjustments 2 1,538
Additions relating to acquisitions 0 8
Deferred tax for the year recognised in profit/loss for the year
2,923 -3,178
Deferred tax for the year recognised in other comprehensive income 10,506 -15,382
Deferred tax at 31 December -7,324 -19,948
Deferred tax is recognised as follows in the balance sheet: 31.12.2022 31.12.2021
Deferred tax assets 4,267 0
Deferred tax liabilities -11,591 -19,948
-7,324 -19,948
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 rates are 20.6%.
Deferred tax assets not recognised in the balance sheet: 31.12.2022 31.12.2021
Tax losses 2,097 7,315
2,097 7,315
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 1.5 million expires in 2023. The remaining
DKK 5.6 million is not subject to expiration.
2022
Balance
Sheet
01.01.2022
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
31.12.2022
Intangible assets -32,034 58 3 150 0 0 -31,823
Property, plant and equipment 8,327 -1 -1 2,543 0 0 10,868
Inventories 5,158 0 -1 2,469 0 0 7,626
Receivables 1,282 0 0 -459 0 0 823
Other current assets -435 0 0 -10,348 10,506 0 -277
Other liabilities -5,667 0 1 13,092 0 0 7,426
Tax losses 3,713 -994 0 -2,524 0 0 195
Retaxation liability -292 130 0 -2,000 0 0 -2,162
-19,948 -807 2 2,923 10,506 0 -7,324
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
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 - INVENTORIES (DKK 1,000) 31.12.2022 31.12.2021
Finished goods and goods for resale 831,316 456,800
Goods in transit 317,148 201,322
1,148,464 658,122
Movements for the year in inventory write-downs: 2022 2021
Inventory write-down at 1 January 76,930 68,932
Foreign currency translation adjustments -1,071 -720
Additions for the year 63,990 39,492
Disposals for the year -31,354 -30,774
Inventory write-down at 31 December 108,495 76,930
NOTE 17 - TRADE RECEIVABLES (DKK 1,000) 31.12.2022 31.12.2021
Trade receivables (gross) can be specified as follows:
Not due 117,871 167,560
Due between 1-60 days 246,155 63,283
Due between 61-120 days 17,654 10,939
Due after 120 days 45,330 45,266
427,010 287,048
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 1,9 million (DKK 1,2 million) for the year.
Changes in impairment losses related to trade receivables: 2022 2021
Provision for bad debt under IFRS 9 at 1 January 50,780 71,596
Additions relating to acquisitions 55 0
Foreign currency translation adjustments 0 6
Adjustments for the year are recognised in the income statement. 8,820 -20,822
Impairment losses at 31 December 59,655 50,780
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: 31.12.2022 Loss rate 2022 31.12.2021 Loss rate 2021
Not due 114,923 2.5% 165,272 1.4%
Due between 1-60 days 235,339 4.4% 56,142 11.3%
Due between 61-120 days 11,119 37.0% 6,901 36.9%
Due after 120 days 5,974 86.8% 7,953 82.4%
367,355 236,268
20212022
658
1,148
20212022
287
427
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 48 / 81
The geographical distribution of trade
receivables (net) is as follows: 31.12.2022 31.12.2021
Denmark 48,765 31,795
Norway 9,448 16,845
Germany 75,380 47,773
Sweden 21,431 19,681
Benelux 40,919 20,377
The UK 23,594 14,915
Canada 31,258 19,480
France 6,508 11,618
Other markets in Europe 104,207 33,858
Other markets outside Europe 5,845 19,926
367,355 236,268
Fair value of security 1,202 1,716
Debtor insurance has been taken out to cover approx. 60-70% of trade receivables.
NOTE 18 - CONTRACT ASSETS AND LIABILITIES (DKK 1,000) 31.12.2022 31.12.2021
RECONCILIATION OF CONTRACT ASSETS AND LIABILITIES
Contract assets:
Receivables included in trade receivables 367,355 236,268
Other contract assets:
Refund assets 19,416 17,689
386,771 253,957
Contract liabilities:
Prepayments received from customers 1,012 2,435
Other contract liabilities:
Refund liabilities 46,726 37,750
47,738 40,185
NOTE 19 - OTHER RECEIVABLES (DKK 1,000) 31.12.2022 31.12.2021
Receivables related to VAT, customs duties and A tax 3,573 9,100
Receivables related to wages and salaries, social security
expenses and holiday pay 0 244
Receivable related to cash collateral 944 897
Derivative financial instruments 0 34,114
Other receivables 65,460 66,553
69,977 110,908
NOTE 20 - EQUITY (DKK 1,000)
No. (1,000) Nominal value
SHARE CAPITAL 2022 2021 2022 2021
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 468.6 million compared to DKK 280.4 million last year.
Dividend distributed per share equals DKK 78.1 compared to 46.7 last year.
It is proposed to distribute dividends of DKK 186.9 million for the financial year of 2022.
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 49 / 81
NOTE 22 - OTHER PAYABLES (DKK 1,000) 31.12.2022 31.12.2021
VAT, customs duties and with holding tax on salaries 58,565 60,433
Salaries and wages, social security expenses and payable holiday pay 73,402 61,048
Derivative financial instruments 19,098 0
Other payables 126,083 123,119
277,148 244,600
Expected maturity:
0-1 year 277,148 243,985
1-5 years 0 615
277,148 244,600
NOTE 23 - ADJUSTMENTS AND NON-CASH TRANSACTIONS (DKK 1,000) 31.12.2022 31.12.2021
Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment 137,440 150,232
Gain on disposal of intangible assets and property, plant and equipment -6,522 0
Loss on disposal of intangible assets and property, plant and equipment 728 2,390
Financial income -21,902 -14,130
Financial expenses 37,559 31,012
Other adjustments -22,278 418
125,025 169,922
NOTE 24 - CHANGES IN WORKING CAPITAL (DKK 1,000) 31.12.2022 31.12.2021
Changes in inventories -490,342 -74,777
Changes in receivables -132,951 82,919
Changes in trade payables 114,952 66,905
Changes in other payables 240,721 -23,294
-267,620 51,753
NOTE 21 - DEBT FROM FINANCING ACTIVITIES (DKK 1,000)
Non-cash changes
2022
Beginning
of year Cash flows
Other ad-
ditions and
disposals
Foreign currency
translation
adjustments End of year
Long-term debt 615 -615 0 0 0
Lease liabilities 247,223 -118,515 202,198 0 330,906
247,838 -119,130 202,198 0 330,906
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
NOTE 25 - ACQUISITIONS OF ENTERPRISES
The DK Company A/S Group has not acquired any enterprises of a significant nature in 2022.
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 50 / 81
NOTE 26 - SECURITY (DKK 1,000)
Security has been provided for rental obligations, etc. for a total of DKK 95.7 million (DKK 97.5 million).
NOTE 27 - CONTINGENT ASSETS AND LIABILITIES (DKK 1,000)
Other contingent assets
None other than the deferred not recognised tax assets referred to in note 15.
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 2022, the total amount outstanding in joint corporation tax is DKK 32.6 million compared to last year’s
DKK 5.7 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 2022, the
total liability concerning future payments for these commitments amounts to DKK 87 million (DKK 80 million).
The Group has entered into agreements (letters of credit) for supplies of DKK 89.6 million compared with DKK 143.5 million last year.
NOTE 28 - FINANCIAL RISKS (DKK 1,000) 31.12.2022 31.12.2021
Categories of financial instruments
ASSETS
Derivative financial instruments (assets) 0 34,114
Hedge instruments measured at fair value concluded to hedge future cash flows 0 34,114
Trade receivables 367,355 236,268
Receivables from group enterprises 980 980
Receivables from associates 0 3,287
Other receivables 90,702 133,909
Cash 224,316 447,919
Financial assets measured at amortised cost 683,353 822,363
LIABILITIES
Derivative financial instruments (liabilities) 19,098 0
Hedge instruments measured at fair value concluded to hedge future cash flows 19,098 0
Lease liabilities 330,906 247,223
Trade payables 579,100 464,147
Financial liabilities, measured at amortised cost 910,006 711,370
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 2021.
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
Nominal currency positions at 31.12.2022 Sensitivity analysis
Cash and cash
equivalents and
receivables Liabilities (non-derivatives) Total
Likely change in
exchange rate
Hypothetical impact on profit/
loss
for the year on equity
USD/DKK 26,757 -195,356 -168,599 +10% -13,151 -13,151
NOK/DKK 93,534 -156,187 -62,653 +10% -4,887 -4,887
SEK/DKK 62,296 -18,626 43,670 +10% 3,406 3,406
EUR/DKK 450,265 -274,116 176,149 +2% 2,748 2,748
Others 168,044 -51,341 116,703 +10% 9,103 9,103
800,896 -695,626 105,270 -2,781 -2,781
Nominal currency positions at 31.12.2021 Sensitivity analysis
Cash and cash
equivalents and
receivables Liabilities (non-derivatives) Total
Likely change in
exchange rate
Hypothetical impact on profit/
loss
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
NOTE 28 - FINANCIAL RISKS, CONTINUED (DKK 1,000)
Currency risks
The Group’s foreign currency risks are handled centrally by the Group 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 52 / 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 considered 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 -2.2 million (DKK -0.4 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 as-
sessment 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 31.12.2022 31.12.2021
Trade receivables 367,355 236,268
Receivables from group enterprises 980 980
Receivables from associates 0 3,287
Other receivables 90,702 133,909
459,037 374,444
Note 17 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.
31.12.2022
Carrying
Amount
Contractual
cash flow 0-1 years 1-5 years
After 5
years
Non-derivative financial instruments
Lease liabilities 330,906 340,839 116,286 194,666 29,887
Trade payables 579,100 579,100 579,100 0 0
910,006 919,939 695,386 194,666 29,887
31.12.2021
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
NOTE 28 - FINANCIAL RISKS, CONTINUED (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 CompanyNotes 53 / 81
NOTE 28 - 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:
31.12.2022 Residual maturity Contractual value Fair value
Currency risks:
USD 0-12 months 1,187,151 -34,195
SEK 0-12 months -9,250 565
NOK 0-14 months -244,124 11,595
GBP 0-9 months -39,367 1,363
CHF 0-20 months -23,478 -633
CAD 0-9 months -42,053 2,207
828,879 -19,098
31.12.2021
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
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.
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 2022 and
2021, respectively.
Optimisation of capital structure
The Company’s management assesses on a current basis whether the Group’s capital structure is in
accordance 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:
31.12.2022 31.12.2021
Credit institutions 330,906 247,223
Cash -224,316 -447,919
Net interest-bearing debt 106,590 -200,696
Profit before depreciation, amortisation and financial
income and expenses
814,081 778,885
Gearing 0.1 (0.3)
Another financial benchmark is the solvency ratio, which is calculated as follows:
Equity excluding minorities 883,092 925,068
Total assets 2,527,198 2,033,694
Solvency ratio (%) 34.9 45.5
A third financial benchmark is the borrowing base, which is calculated as follows:
Net interest-bearing debt 106,590 -200,696
Inventories 1,148,464 658,122
Trade receivables 367,355 236,268
Trade payables -579,100 -464,147
936,719 430,243
Borrowing base 0.1 (0.5)
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
NOTE 29 - 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
6.8 million (DKK 5.3 million) was paid in the financial year. Total annual rent for lease with JP Ejendomme
2 A/S amounts to DKK 6.8 million (DKK 5.3 million), and 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 regis-
trations 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
enterprises. 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 30 - FEE TO AUDITORS APPOINTED AT THE ANNUAL GENERAL
MEETING (DKK 1,000) 2022 2021
PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab
Statutory audit 2,750 2,569
Other assurance engagements 231 0
Tax and VAT-related advice 869 12
Other services 417 0
4,267 2,581
Other auditors in foreign subsidiaries
Statutory audit 947 1,215
Other assurance engagements 0 779
Tax and VAT-related advice 1,270 1,445
Other services 553 724
2,770 4,163
7,037 6,744
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 31 - SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially affect the assessment of the Annual
Report.
NOTE 32 - 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 2022.
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 33 - 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 34 - ADOPTION OF THE ANNUAL REPORT FOR PUBLICATION
At its board meeting on 11 May 2023, 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 2023.
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK Company 55 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
56 Parent Company Financial Statements
60 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 57 / 81
Note 2022 2021
2 Revenue 683,135 591,823
Costs of goods for resale -387,729 -314,506
Other external expenses -124,542 -86,851
3 Other operating income 6,975 4,553
Gross profit 177,839 195,019
4 Staff costs -84,087 -75,565
Depreciation, amortisation and impairment losses on intangible assets as
well as property, plant and equipment -7,711 -12,743
Profit/loss before financial income and expenses 86,041 106,711
Share of profit/loss after tax in group enterprises 387,441 334,778
5 Financial income 11,127 5,245
6 Financial expenses -7,131 -7,325
Financial income and expenses, net amounts 391,437 332,698
Profit/loss before tax 477,478 439,409
7 Tax on Profit/Loss for the year -19,206 -23,077
PROFIT/LOSS FOR THE YEAR 458,272 416,332
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 58 / 81
Note 31.12.2021 31.12.2021
NON-CURRENT ASSETS
Goodwill 2,520 3,360
8 Intangible assets 2,520 3,360
Land and buildings 11,000 11,461
Leasehold improvements 37,675 15,176
Other fixtures and fittings, tools and equipment 6,559 4,461
9 Property, plant and equipment 55,234 31,098
10 Investments in group enterprises 758,063 695,593
11 Other receivables 1,497 2,772
12 Deferred tax assets 3,107 0
Other non-current assets 762,667 698,365
NON-CURRENT ASSETS 820,421 732,823
CURRENT ASSETS
Inventories 138,627 90,769
Trade receivables 10,867 10,841
Receivables from group enterprises 181,941 95,681
Receivables from associates 0 3,287
Other receivables 9,611 24,744
Deferred income 5,492 5,033
Receivables 207,911 139,586
Cash 331,572 506,310
CURRENT ASSETS 678,110 736,665
TOTAL ASSETS 1,498,531 1,469,488
Equity and Liabilities (DKK 1,000)
Balance Sheet
Assets (DKK 1,000)
Note 31.12.2021 31.12.2021
EQUITY
13 Share capital 60,000 60,000
Reserve for net revaluation under the equity method 247,602 50,480
Hedging reserves -3,090 12,594
Retained earnings 242,579 198,616
Proposed dividend 186,900 468,560
EQUITY 733,991 790,250
NON-CURRENT LIABILITIES
12 Deferred tax 0 1,386
10 Provision for negative investments in group enterprises 3,806 3,384
14 Credit institutions 110 1,095
NON-CURRENT LIABILITIES 3,916 5,865
CURRENT LIABILITIES
14 Credit institutions 10,960 13,555
Prepayments received from customers 94 680
Trade payables 104,671 88,688
Payables to group enterprises 577,451 520,395
Corporation tax 19,264 15,005
Other payables 48,184 35,050
CURRENT LIABILITIES 760,624 673,373
LIABILITIES 764,540 679,238
TOTAL EQUITY AND LIABILITIES 1,498,531 1,469,488
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyEquity 59 / 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 2022 60,000 50,480 12,594 198,616 468,560 790,250
Correction beginning of year 0 697 0 0 0 697
Transferred from distribution of net profit 0 227,410 0 43,963 186,900 458,273
Value adjustment of financial instruments 0 -1,535 -20,108 0 0 -21,643
Tax on financial instruments 0 0 4,424 0 0 4,424
Exchange adjustments from translation of foreign entities 0 -9,014 0 0 0 -9,014
Change in equity in group enterprises 0 -20,436 0 0 0 -20,436
Dividends distributed in the financial year 0 0 0 0 -468,560 -468,560
Equity at 31 December 2022 60,000 247,602 -3,090 242,579 186,900 733,991
Equity at 1 January 2021 60,000 225,641 -15,978 326,878 0 596,541
Correction beginning of year 0 0 0 60 0 60
Transferred from distribution of net profit 0 -175,392 0 123,164 468,560 416,332
Value adjustment of financial instruments 0 231 36,580 0 0 36,811
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 50,480 12,594 198,616 468,560 790,250
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
61 Note 1 - Accounting policies
INCOME STATEMENT
BALANCE SHEET
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
65 Note 2 - Revenue
65 Note 3 - Other operating income
65 Note 4 - Staff costs
65 Note 5 - Financial income
65 Note 6 - Financial expenses
65 Note 7 - Tax on profit/loss for the year
66 Note 8 - Intangible assets
66 Note 9 - Property, plant and equipment
66 Note 10 - Investments in subsidiaries
67 Note 11 - Other non-current assets
67 Note 12 - Deferred tax
67 Note 13 - Share capital
67 Note 14 - Debt
67 Note 15 - Security
68 Note 16 - Contingent assets and liabilities
69 Note 17 - Related parties
69 Note 18 - Subsequent events
69 Note 19 - Distribution of profit
69 Note 20 - Special items
DK CompanyNotes 60 / 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 2022 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 previ-
ously recognised in the income statement.
Assets are recognised in the balance sheet when
it is probable that future economic benefits attrib-
utable 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 mea-
sured at amortised cost, which involves the rec-
ognition of a constant effective interest rate over
the maturity period. Amortised cost is calculated
as original cost less any repayments and with ad-
dition/deduction of the accumulated amortisation
of any difference between cost and the nominal
amount. Capital losses and gains are thus allocat-
ed 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 transac-
tions 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 payment are
recognised in the income state-ment. If foreign
exchange positions are considered hedges of
future cash flows, the value adjustments are rec-
ognised directly in equity.
Receivables, payables and other monetary items
denominated in foreign currency which have not
been settled at the balance sheet date are mea-
sured 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
statements 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. Posi-
tive 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 instru-
ments 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 lia-
bility, 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 perfor-
mance obligations, such obligations are treated
as a single performance obligation owing to their
concurrent delivery.
If a sales agreement contains multiple perfor-
mance 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 pay-
ments, 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 ful-
filling 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.
Note 1 - Accounting policies
DK CompanyNotes 61 / 81
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
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, considerations,
pensions and other staff costs related to the Com-
pany’s employees.
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.
OTHER OPERATING INCOME AND OPERATING
EXPENSES
Other operating income and expenses comprise
income and expenses of a secondary nature to the
activities of the Company, including gains or loss-
es 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 COMPENSATION
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 commitment from
the compensation provider that it is likely that the
Company will meet the conditions attached to
the compensation 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 enterpris-
es 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 payments, realised and unrealised
capital gains and losses in respect of securities,
debt and transactions in foreign currencies, amor-
tisation 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 subsid-
iaries 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 rec-
ognised 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 Management’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. Em-
phasis 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.
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 impairment 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 differ-
ence between the selling price less selling costs
and the carrying amount at the time of disposal.
Profit or losses are recognised in the income state-
ment 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
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
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 to-
tal 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 recognition. 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. Enterpris-
es 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 Com-
pany 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 esti-
mation of the useful life determined on the basis
of Management’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 statement 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 uncer-
tainty 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 identification 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 enterprises 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 carry-
ing amount.
Investments in group enterprises that are mea-
sured 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.
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 invest-
ments 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 calcu-
lated as the selling price less costs of comple-
tion 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 interpretation
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 REVALUATION
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 invest-
ments 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
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
disclosed as a separate equity item. Proposed div-
idend 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 rec-
ognised 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 differ-
ences relating to goodwill not deductible for tax
purposes, or other items where temporary differ-
ences – 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 unreal-
ised intra-group gains and losses.
Deferred tax is measured on the basis of the tax
rules and tax rates of the respective 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 64 / 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 65 / 81
NOTE 2 - REVENUE (DKK 1,000) 2022 2021
By geography
Denmark 179,892 146,627
Norway 46,753 38,464
Germany 137,435 144,044
Sweden 73,180 61,192
Benelux 65,746 53,424
Canada 23,004 19,916
Other markets in Europe 96,507 76,379
Other markets outside Europe 60,618 51,777
683,135 591,823
NOTE 3 - OTHER OPERATING INCOME (DKK 1,000) 2022 2021
Gain on sale of activities 158 30
COVID-19 compensation 0 787
Administration fee 3,816 3,736
6,975 4,553
NOTE 4 - STAFF COSTS (DKK 1,000) 2022 2021
Wages and salaries 70,711 64,452
Pensions 10,877 9,177
Other social security expenses 2,499 1,936
84,087 75,565
Including remuneration to the Board of Directors 475 475
Including remuneration to the Executive Board 6,687 6,772
The above amounts include the value of employee benefits.
Average number of employees 294 252
NOTE 5 - FINANCIAL INCOME (DKK 1,000) 2022 2021
Interest income from group enterprises 9,881 4,440
Other interest income 183 215
Foreign exchange gains 1,063 590
11,127 5,245
NOTE 6 - FINANCIAL EXPENSES (DKK 1,000) 2022 2021
Other interest expenses 5,832 3,569
Foreign exchange losses 1,299 3,756
7,131 7,325
NOTE 7 - TAX ON PROFIT/LOSS FOR THE YEAR (DKK 1,000) 2022 2021
Current tax for the year 19,264 25,005
Change in deferred tax for the year -69 -1,945
Adjustment of tax relating to previous years 11 17
19,206 23,077
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S REVIEW
DK CompanyNotes 66 / 81
NOTE 8 - INTANGIBLE ASSETS (DKK 1,000)
Goodwill
Cost at 1 January 2022 79,814
Additions from merger 9,276
Additions at cost 0
Cost at 31 December 2022 89,090
Amortisation and impairment losses at 1 January 2022 79,814
Additions from merger 5,916
Amortisation for the year 840
Amortisation and impairment losses at 31 December 2022 86,570
Carrying amount at 31 December 2022 2,520
NOTE 9 - PROPERTY, PLANT AND EQUIPMENT (DKK 1,000)
Land and
buildings
Leasehold
improvements
Other fixtures
and fittings,
tools and
equipment
Cost at 1 January 2022 0 25,490 37,686
Additions from merger 11,500 0 147
Additions at cost 0 26,023 5,021
Disposals at cost 0 0 -598
Cost at 31 December 2022 11,500 51,513 42,256
Depreciation and impairment losses at 1 January 2022 0 10,314 33,225
Additions from merger 39 0 147
Depreciation for the year 461 3,524 2,885
Reversal of assets sold 0 0 -560
Depreciation and impairment losses at 31 December
2022
500 13,838 35,697
Carrying amount at 31 December 2022 11,000 37,675 6,559
Carrying amount of leased assets 251
The leased assets relate primarily to inventory and photo copying machines.
The leased assets are provided as security for lease liabilities.
NOTE 10 - INVESTMENTS IN SUBSIDIARIES (DKK 1,000)
Investments in
group
enterprises
Cost at 1 January 2022 332,432
Cost at 31 December 2022 332,432
Value adjustments at 1 January 2022 388,809
Correction beginning of year 697
Exchange adjustments from translation of foreign entities -9,014
Share of profit/loss for the year 387,441
Period result regarding merger 17,806
Change in equity in group enterprises -20,436
Distribution from group enterprises -343,478
Value adjustments at 31 December 2022 421,825
Transferred to provisions 3,806
Carrying amount at 31 December 2022 758,063
DK Company A/S' share
Group enterprises are specified as follows: Profit/the year Equity
DKC Norway AS, Tønsberg, Norway, 100% 3,749 3,997
Miss O ApS, Ikast-Brande, Denmark, 100% -2,425 -469
DK Company Vejle A/S, Vejle, Denmark, 86,9% 174,133 261,609
DK Company Retail A/S, Ikast-Brande, Denmark, 100% 3,907 27,449
DK Company Shanghai Ltd., Shanghai, China, 100% 616 -3,337
DK Company Cph A/S, Copenhagen, Denmark, 100% 146,382 273,084
DK Company Canada Inc., Quebec, Canada, 100% 6,117 36,214
DK Company Online A/S, Ikast-Brande, Denmark, 100% 72,166 136,413
DK Company Con A/S, Ikast-Brande, Denmark, 100% 1,627 7,770
DK Company France Sarl, Paris, France, 100% 720 2,311
DK Company Germany Gmbh, Hamburg, Germany, 100% 169 249
Companys Retail AG, Baar, Switzerland, 100% 2,397 6,412
409,558 751,702
Adjustments to intercompany profits -684 -8,274
Tax on adjustments to intercompany profits 2,515 3,781
Adjustments for acquisitions in 2012 -2,886 0
Adjustments for acquisitions in 2014 -1,596 1,756
Adjustments for acquisitions in 2015 -1,565 5,101
Adjustments for acquisitions in 2017 -95 191
Transferred to provisions 0 3,806
405,247 758,063
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 67 / 81
NOTE 11 - OTHER NON-CURRENT ASSETS (DKK 1,000)
OTHER RECEIVABLES Deposits
Cost at 1 January 2022 2,772
Additions at cost 50
Disposals at cost -1,325
Cost at 31 December 2022 1,497
Carrying amount at 31 December 2022 1,497
NOTE 12 - DEFERRED TAX (DKK 1,000) 2022 2021
Deferred tax at 1 January -1,386 4,677
Deferred tax for the year recognised in profit/loss for the year 69 1,945
Deferred tax for the year recognised in equity 4,424 -8,008
Deferred tax at 31 December 3,107 -1,386
Deferred tax is recognised as follows in the balance sheet: 31.12.2022 31.12.2021
Deferred tax assets 3,107 0
Deferred tax liabilities 0 -1,386
3,107 -1,386
Deferred tax relates to: 31.12.2022 31.12.2021
Intangible assets -24 204
Property, plant and equipment 2,209 1,912
Other liabilities 922 -3,502
3,107 -1,386
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 13 - SHARE CAPITAL (DKK 1,000) 31.12.2022 31.12.2021
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 increase 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 14 - DEBT (DKK 1,000) 31.12.2022 31.12.2021
Credit institutions 11,070 14,150
Other payables 0 500
11,070 14,650
The debt is expected to fall due for payment as follows:
0-1 year 10,960 13,555
1-5 year 110 1,095
11,070 14,650
NOTE 15 - SECURITY
The Company has entered into agreements (letters of credit) for the delivery of goods of DKK 16.5 million
compared to DKK 6.1 million in 2021.
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 68 / 81
NOTE 16 - 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 23.0
million compared to DKK 32.2 million in 2021.
In connection with its previous banking activities, the Company has been involved in legal proceedings con-
cerning 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, DK Company Cph A/S, DK Company
Online A/S and DK Company Retail A/S for all group enterprises’ banking arrangements with Jyske Bank A/S.
The total liability amounted to DKK 11 million at 31 December 2022 (DKK 13.6 million).
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 of 2013, as well as for withholding tax on interest, royalties and dividends falling due
on or after 1 July 2012. At 31 December 2022, the total amount outstanding in joint corporation tax is DKK
19.3 million compared to the DKK 11.4 million at 31 December 2021.
Operating lease liabilities comprise the following: 31.12.2022 31.12.2021
Shop leases and buildings:
0-1 year 16,238 13,368
1-5 year 46,344 30,738
Over 5 years 22,853 30,822
85,435 74,928
Leased operating equipment, etc.:
0-1 year 2,894 1,808
1-5 year 2,846 1,156
5,740 2,964
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 loss is sustained in the amount of DKK -6.4 million (a capital gain of DKK 17 million),
of which DKK -4.2 million (DKK 15.9 million) is recognised directly in equity, while DKK -2.2 million (DKK 1.1
million) is recognised in the income statement.
31.12.2022 Residual maturity
Value of
currency Fair value
Currency risks:
USD 0-15 months 75,750 -14,917
SEK 0-4 months 0 0
NOK 0-11 months -198,200 7,014
GBP 0-7 months -2,450 716
CHF 0-16 months -2,560 -542
CAD 0-6 months -4,800 1,330
-6,399
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 0-12 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
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 17 - 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 18 - SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially affect the assessment of the Annual
Report.
NOTE 19 - DISTRIBUTION OF PROFIT (DKK 1,000) 2022 2021
Proposal for distribution of net profit
Reserve for net revaluation under the equity method 43,963 -175,392
Retained earnings 227,410 123,164
Proposed dividend for the year 186,900 468,560
458,273 416,332
NOTE 20 - SPECIAL ITEMS (DKK 1,000) 2022 2021
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 0 787
0 787
Special items are included in the following line items of the
financial statements
Other operating income 0 787
Profit or loss on special items, net 0 787
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 71 / 81
Company Information
Company DK Company A/S
La Cours Vej 6
DK-7430 Ikast
Telephone: +45 96 600 700
CVR no: 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
Board of Directors Bo Boulund Knudsen, Chairman
Lars Radoor Sørensen
Marianne Tochtermann
Jens Poulsen
Kasper Toftekær Philipsen
Audit PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Jens Chr. Skous Vej 1
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
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 B.V. The Netherlands 100% EUR 10
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
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
MISS O. GROUP:
Miss O ApS Denmark 100% DKK 1,664
Trendmatch ApS Denmark 70% DKK 83
DK CompanyGroup Chart 72 / 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:
DK Company Vejle A/S Denmark 86,9% DKK 8,550
DK Company Málaga S.L. Spain 100% EUR 4
DKV 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
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
DKV Retail Norway AS Norway 100% NOK 2,600
b.young Retail Norway AS Norway 100% NOK 200
Ichi Retail Norway AS Sweden 100% NOK 601
Fransa Retail Norway AS Norway 100% NOK 100
Motedrift AS Norway 100% NOK 100
Solid Retail Norway AS Norway 100% NOK 300
Tromsø Mote AS Norway 90% NOK 100
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
Hammerfest Mote AS Norway 50% NOK 200
Steinkjer Mote AS Norway 50% NOK 200
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 DKV Retail Norway AS.
The accounts of all subsidiaries were closed at 31 December.
DK CompanyGroup Chart 73 / 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 74 / 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 76 / 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 77 / 81
Independent Auditor’s Report
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 78 / 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
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