“We believe
in the
magic
of win win”
DK Company A/S, La Cours Vej 6, DK-7430 Ikast, CVR no. 24 43 11 18
ANNUAL REPORT 2023
Content
DK Company 02 / 81Annual Report 2023
05 Solid result
06 Financial highlights of the group
08 The Blooming Concept
10 Multi-brand strategy
11 Strategy summary
12 Brands
13 Report on profit and loss
15 Risk management
20 Statement on responsibility
21 Diversity, equality and inclusion
23 Statement of income and comprehensive income
24 Balance sheet • Assets and liabilities
25 Cash flow statement
26 Statement of changes in equity
27 Notes • Basis of preparation of the consolidated
financial statement
31 Notes • EBITDA, working capital and cash flows
38 Notes • Significant accounting estimates, assumptions
and adjustments
40 Notes • Invested capital
48 Notes • Capital structure
51 Notes • Tax
54 Notes • Other notes to the consolidated
financial statements
63 Statement of income
64 Balance sheet • Assets and liabilities
65 Statement and changes in equity
66 Notes to the parent company financial statements
77 Company information
79 Managements statement
80 Independent Auditor’s Report
MANAGEMENT’S REVIEW CONSOLIDATED FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS
COMPANY INFORMATION MANAGEMENT’S STATEMENT AND AUDITOR’S
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
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MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
DK Company 03 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
3.9%
DEVELOPMENT
IN REVENUE
(DKK MILLION)
ORGANIC GROWTH
DK Company has based the
business on selling to more
than 16,500 selling points.
One of DK Company’s strengths
is its strong geographical pres-
ence 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
440
32
32
32
32
32
3232
32
3232
32
32
32
32
3232
32
3232
32
32
32
32
10.9%
4.3%
5.1%
4.6%
12.4%
11.5%
21.1%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
13.8%
15.0%
1.3%
Distribution
by country
20232022202120202019
4,646
3,254
3,912
3,388
4,828
REVENUE
4,828
MIO. DKK
EBITDA
675
MIO. DKK
NEW TO THE
DK COMPANY
FAMILY:
26
BRANDS
20232022202120202019
4,646
3,254
3,912
3,388
4,828
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DK Company 04 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
MANAGEMENT’S REVIEW
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FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
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DK Company 04 / 81Annual Report 2023
MANAGEMENT’S
REVIEW
05 Solid result
06 Financial highlights of the group
08 The Blooming Concept
10 Multi-brand strategy
11 Strategy summary
12 Brands
13 Report on profi t and loss
15 Risk management
20 Statement on responsibility
21 Diversity, equality and inclusion
Solid result
Also 2023 was a record year for DK Company,
with revenue increasing by DKK 182 million to
DKK 4.8 billion corresponding to 4% growth.
EBITDA landed at DKK 675 million against last
year’s DKK 814 million, and the result before tax
totalled DKK 487 million, corresponding to a
profit margin of 10.5% against DKK 661 million
last year and a profit margin of 14.6%.
Group CEO and main shareholder Jens Poulsen
states: “We are satisfied to maintain revenue
growth in a very challenging market. It shows
that our core business is functioning with
growth within both wholesale and online. The
result lands solidly with a profit margin of 10.5%,
even though the year has been characterized
by market conditions beyond our influence. The
profit margin landed 4 percentage points lower
than last year, which is primarily caused by the
challenging currency market with a volatile US
dollar and a drop of over 10% in Norwegian and
Swedish kroner. This affects DK Company sig-
nificantly, as Norway and Sweden are two of our
main markets, with approx. 200 own stores.”
SIGNIFICANT INVESTMENT YEAR
“In 2023 DK Company has invested approx. 250
million DKK in robot technology and expanded
the storage facilities by 33,000 sq m. In addition,
investments have been made in office facilities,
showrooms and preparation for the increased
reporting requirements placed on our business
within the ESG area. With these significant
initiatives, DK Company is in a strong position to
manage the organic growth that the company is
achieving,” reports Jens Poulsen.
EXPECTATIONS FOR 2024
For 2024 DK Company expects a growth of 10 %
on both the top line and the bottom line.
DK Company is in a good place. Our organiza-
tion is focused, curious and ready for change
in relation to the fact that the abnormal has
become the normal.
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
Our win-win model is constantly in play when,
together with our customers and business part-
ners, we seek long-term solutions for the benefit
of all parties.
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DK Company 05 / 82Annual Report 2023
MANAGEMENT’S
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0
1000
2000
3000
4000
5000
2023
2022
2021
2020
2019
3,388
3,254
3,912
4,646
4,828
0
100
200
300
400
500
600
700
800
2023
2022
2021
2020
2019
195
333
629
677
506
-250
-200
-150
-100
-50
0
50
100
150
200
2023
2022
2021
2020
2019
192
181
-224
-8
15
2023
2022
2021
2020
2019
26.1
41.3
52.3 52.3
36.1
Revenue (DKK million)
Operating profi t (DKK million)
Total cash fl ow (DKK million)
Return on equity (%)
Financial highlights of the group
2023 2022 2021 2020 2019
2)
Revenue 4,828,458 4,646,260 3,911,731 3,254,339 3,388,058
Expenses -4,153,491 -3,837,973 -3,132,575 -2,753,003 -3,042,742
Other operating income 2,197 6,522 0 1,150 6,195
Other operating expenses -2,570 -728 -271 -4,079 -2,920
Profi t before depreciation, amortisation and fi nancial income and expenses 674,594 814,081 778,885 498,407 348,591
Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment -168,602 -137,440 -150,232 -165,648 -153,692
Operating profi t before special items 505,992 676,641 628,653 332,759 194,899
Special items 0 0 0 14,656 3,618
Operating profi t 505,992 676,641 628,653 347,415 198,517
Financial income and expenses, net amounts -19,206 -15,657 -16,882 -12,604 -16,180
Profi t before tax 486,786 660,984 611,771 334,811 182,337
Tax on pro t for the year -115,462 -146,504 -137,791 -50,413 -34,193
Profi t for the year incl. minority interests 371,324 514,480 473,980 284,398 148,144
Profi t/Loss attributable to shareholders of the parent 349,063 473,067 430,146 262,148 136,692
Non-current assets 968,671 672,304 538,525 604,379 736,840
Current assets 1,908,986 1,854,894 1,495,169 1,279,217 1,043,361
Total assets 2,877,657 2,527,198 2,033,694 1,883,596 1,780,201
Equity of shareholders of the parent 1,050,426 883,092 925,068 718,991 549,582
Minority interests 74,472 68,601 76,620 53,121 25,757
Total equity 1,124,898 951,693 1,001,688 772,112 575,339
Non-current liabilities 422,525 230,846 173,357 261,438 537,943
Current liabilities 1,330,235 1,344,659 858,649 850,046 666,920
Total equity and liabilities 2,877,657 2,527,198 2,033,694 1,883,596 1,780,202
Cash ows from operating activities 439,111 473,331 691,841 656,197 360,667
Cash ows for investing activities -97,117 -66,127 -53,149 -37,381 -54,478
Cash ows from nancing activities -350,281 -630,807 -457,441 -426,369 -291,413
Total cash fl ows -8,287 -223,603 181,251 192,447 14,776
Investments in property, plant and equipment -501,271 -318,139 -101,408 -75,175 -27,140
Depreciation on property, plant and equipment 168,453 136,287 145,149 160,943 146,178
Average number of employees 1,654 1,572 1,468 1,523 1,677
Financial ratios
Revenue growth (%) 3.9 18.8 20.2 -3.9 10.8
Gross margin (%) 53.0 55.4 57.3 54.9 53.0
Pro t margin (%) 10.5 14.6 16.1 10.7 5.9
Solvency ratio (%) 36.5 34.9 45.5 38.2 30.9
Return on equity (%)
1)
36.1 52.3 52.3 41.3 26.1
Dividend per share, DKK 31.2 78.1 46.7 8.1 10.9
1) Ratios are calculated on the profi t for the year distributed to the parent’s shareholders.
2) The fi gures are restated to refl ect the effect of implementation of IFRS 16.
Unless otherwise defi ned above, the fi nancial highlights have been defi ned and calculated in accordance with the recommendations issued by the Danish Society of Financial Analysts.
Reference is made to the defi nition of fi nancial ratios page at the end of the Annual Report.
Amounts in DKK thousands
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DK Company 06 / 82Annual Report 2023
MANAGEMENT’S
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“We are satisfied to maintain revenue
growth in a very challenging market.
It shows that our core business is
functioning with growth within both
wholesale and online.”
Jens Poulsen, Group CEO
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DK Company 07 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
The Blooming Concept
DK Company’s strategy is to be among the
leading multi-brand suppliers in Europe in the
mid-market. This strategy has proven strong, as
the diversification into 26 brands has ensured
increased earnings and revenue over the past
22 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 150
shops, which are wholly or partly owned by DK
Company or operated on a franchise basis.
A number of brands have a total of 292 con-
cession and consignment agreements with a
number of European department stores. All
the Group’s brands are sold on the Group’s
e-commerce platforms. In addition, most
brands are sold through partners’ web shops.
The Group has its own designers and buyers in
Denmark, and the collections are mainly pro-
duced 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 de-
livered directly to customers. Fulfilment centres
in Poland and Germany handles e-commerce
distribution.
DK Company sees more opportunities for growth
in all business areas. Being present in 35 markets
means there is untapped potential for additional
sales in the markets already established.
Having 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 distinc-
tive 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
Company’s dedicated staff know that growth and
a healthy economy depend on the Group’s values
and the active day-to-day efforts of the staff.
DK Company’s multi-brand strategy is primarily
based on brands providing ‘value for money’.
However, brands such as InWear, Part Two, Karen
by Simonsen and Gestuz put DK Company in the
high-end part of the mid-market, where focus is
on ‘luxury for less’. In both cases, the consumers
should feel they get more than they spend.
DK Company aims to build long-term ‘win-win’
relationships between the Company, its employ-
ees, 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 “
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DK Company 08 / 82Annual Report 2023
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THE BLOOMING CONCEPT
The strategy is based on ‘The Blooming Con-
cept’ 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
development of the overall business.
The flower requires care, attention and constant
development to maintain its unique attraction,
and to stay strong and straight, which will enable
us to make the most any advantages and stand
up to any adversity. The stem is a symbol of
corporate functions such as business solutions,
IT, HR, logistics, warehouses and the finance
department. The root system is the foundation
of the flower, which is made up of DK Company’s
suppliers and purchasing departments.
This foundation constitutes the competitive 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 earnings and growth. People,
networks and long-term relationships are there-
fore 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
adaptable to the increased activity. Consequent-
ly, 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 acqui-
sitions, 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 introduc-
ing a new brand which can be easily integrated
into the Group.
By means of its support functions and root sys-
tem, the Group is able to acquire and integrate
complementary 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
integrations more effective both in terms of cost
and time.
Through the development and acquisition of
retail concepts, the Group has strengthened the
sales channels of the individual brands, and in
combination with the partnership agreements,
the wide range of brands allows customers to do
business with a significant partner, thus creating
a win-win situation.
By applying the knowledge brought to the 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 Com-
pany’s business concept – that is the ability to
integrate and develop brands in a structured
and cost-effective way.
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DK Company 09 / 82Annual Report 2023
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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 geo-
graphical 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 has 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 geo-
graphical revenue diversification, which makes
DK Company less vulnerable to fluctuations in
the individual markets.
RETAIL
Historically speaking, most of the Group’s shops
have been run in collaboration with a third party,
either on a franchise basis or through shared
ownership with DK Company.
DK Company’s portfolio consists of 150 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 292 con-
cession and consignment agreements with a
number of European department stores.
When cooperating with a third party on the
operation of a shop, DK Company uses one of
two types of partnership agreements defined as
follows:
• Partly owned shops, where DK Company
participates by holding a controlling share
and running the shop in cooperation with a
local retailer.
• The franchise model, where partners run
shops in the local area through presence
and local knowledge.
The day-to-day business is supported by DK
Company’s retail organisation, for example via
initiatives such as a customer club, advertising
campaigns as well as accounting and other
finance services.
PARTNERSHIP AGREEMENTS
Historically, DK Company has based its business
on wholesale and is selling its goods to more
than 16,500 selling points primarily in Europe.
Most of the Group’s revenue originates from
such business.
In order to create maximum synergy in the
collaboration with external distributors, DK Com-
pany 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.
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DK Company 10 / 82Annual Report 2023
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Strategy summary
STRATEGY ADOPTION
ACQUISITION OF ENTERPRISES
EXPANSION VIA ECOMMERCE
PREFERRED PARTNER IN THE MID-SEGMENT
INCREASED COOPERATION
DEVELOPMENT OF MARKETS
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 opportu-
nities 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.
Through the DK Company Online Group, DK Company has an e-commerce platform which com-
prises 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 collabora-
tion with leading e-commerce partners both through partnerships.
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.
Increased cooperation with the Group’s wholesale customers.
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 North American mar-
ket, thus commencing sales activities in this market.
DEVELOPMENT OF RETAIL CONCEPTS
The Group intends to develop retail concepts and establish more shops in
strategically important markets. Strengthening and expanding of the
Group’s retail concepts.
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DK Company 11 / 82Annual Report 2023
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According to its strategy, the Group will concen-
trate 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 opportu-
nity for complementary sales.
The Group’s brands are; Atelier Rêve, BALL, Blend,
b.young, Bon’A Parte, Casual Friday, Cream, Cul-
ture, Fransa, FQ1924, Gestuz, Ichi, InWear, Kaffe,
Kaffe Curve, Karen by Simonsen, Lounge Nine,
Matinique, My Essential Wardrobe, Part Two,
Pulz Jeans, Soaked In Luxury, Saint Tropez, !Solid,
Sorbet and The JoggConcept.
The Group’s retail concepts are: !Solid,
b-young, Fransa, Ichi and the multi-brand con-
cepts 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”.
Brands
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DK Company 12 / 82Annual Report 2023
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REVENUE
The Group’s revenue was DKK 4.8 billion
(DKK 4.6 billion), which is an increase of
DKK 182 million on 2023. The increase was
generated from organic growth.
GROSS PROFIT
Gross profi t was DKK 2.6 billion (DKK 2.6
billion). The profi t margin landed 2.4 per-
centage points lower than last year, which
is primarily caused by the challenging
currency market with a volatile US dollar
and a drop of over 10 % in Norwegian and
Swedish kroner
COSTS
Other external expenses constituted DKK
1,001 million (DKK 960 million). The increase
is due to a higher level of activity of the
Group and offi ce facilities, showrooms and
preparation for the increased reporting re-
quirements placed on our business within
the ESG area
Depreciation, amortisation and impairment
losses for the year were DKK 168 million
(DKK 137 million).
FINANCIAL INCOME AND EXPENSES
PROFIT FOR THE YEAR
TAX
INVESTMENTS
Financial income and expenses represent a
net cost of DKK 19 million (a net cost of DKK
16 million).
Profi t before tax was DKK 487 million
(DKK 661 million).
In the fi nancial year, tax of DKK 115 million
(DKK 147 million) was recognised in the
income statement.
In 2023, DK Company invested DKK 93 mil-
lion (DKK 72 million) in non-current assets.
In 2023, DK Company’s revenue totalled DKK 4.8 billion
compared to last year’s revenue of DKK 4.6 billion. Profi t be-
fore tax was DKK 487 million (DKK 661 million), correspond-
ing to a profi t margin of 10.5% (14.6%).
Report on profi t and loss
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DK Company 13 / 82Annual Report 2023
MANAGEMENT’S
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2022
4.6
BILLION DKK
2023
4.8
BILLION DKK
PROFIT MARGIN
10.5%
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DK Company 14 / 82Annual Report 2023
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CASH FLOWS
TOTAL EQUITY
SUBSEQUENT EVENTS PENDING LAWSUITS
In 2023, the Group reduced its total liquidity
by DKK 8 million after a dividend off DKK
187 million paid out in 2023.
The Group generated cash flows from op-
erating activities of DKK 439 million in 2023
compared to DKK 473 million in 2022. The
lower cash flow development in 2023 is due
to investment in inventory.
Cash flows from investing activities
onstituted an expense of DKK 97 million
compared to an expense of DKK 66 million
in 2022.
Cash flows from financing activities were
DKK 350 million compared to DKK 631 mil-
lion in 2022. In 2023, the Group distributed
dividends of DKK 187 million (DKK 469
million).
The total cash flow changes for the year are
negative with DKK 8 million compared to a
negative DKK 224 million for 2022.
The Group’s total equity, exclusive of
minority interests, is determined at DKK
1,050 million (DKK 883 million), after distrut-
ed dividens of DKK 187 million. The solvency
ratio is 36.5% (34.9%).
No subsequent events have occured which
have an impact on the Financial Statement.
The Group has challenged 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 2023, the company realised revenue of
DKK 675 million (DKK 678 million). Profit
before tax was DKK 369 million (DKK 477
million). The results are considered
satisfactory.
DKK MIILLION 2023 2022
Reserve for net revaluation
according
to the equity method 41 227
Retained earnings 108 44
Proposed dividend for the
year 200 187
Total 349 458
PROPOSAL FOR DISTRIBUTION OF PROFIT
Risk management
The following contains a description of general risk factors related to con-
ducting business, risks associated with the fashion industry and special risks
of the DK Company Group. The risk factors and uncertainties mentioned
include those currently assessed by Management to be the most significant
risks. Effective tools have been implemented to manage and address the
various risks. The risk factors are not listed in order of priority.
CORE RISKS
DK Company has defined the following core
risks: fashion risk, risk of loss of brand value, risk
of loss of intellectual property rights, supplier
risk, risks related to logistics and inventories,
insurance risk, debtor risk and employee risk.
These risk factors are defined as inherent in the
Group’s operations.
DK Company manages the stated risks by
means of tools developed based on the Group’s
experience and competencies.
FASHION RISK
In the fashion industry, it is a basic condition
that a single collection may fail from a fashion
point of view. DK Company diversifies such risk
by annually designing 6 to 12 collections for
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 quanti-
ties 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 sig-
nificant 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 prompt-
ly to market signals indicating that its brand
development is not on track. As an example,
the sales department is actively involved in the
development of collections. Analyses of sales
in own shops are also used as input for design
development.
Negative media coverage or bad publicity among
core consumers may result in a significant loss
of brand value. Therefore, DK Company has
prepared corporate responsibility policies. These
policies reduce the risk of loss of brand value.
The policies are described in detail in the CSR
section of the webside. It is crucial to the brand
value that consumers maintain the belief that
our products provide value for money and luxury
for less.
DK Company gives priority to quality control
areas, as the Group depends on its continuous
delivery of high-quality products.
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DK Company 15 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
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 individ-
ual 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, BALL, Blend, Bon’A Parte,
b.young, Casual Friday, Culture, Gestuz, Fransa,
FQ1924, ICHI, InWear, Kaffe Curve, Lounge Nine,
Matinique, My Essential Wardrobe, Part Two, Pulz
Jeans, Saint Tropez, Soaked in Luxury, Solid, Sorbet
and The JoggConcept.
DK Company has an agreement with a trademark
agent regarding the monitoring of any infringe-
ment of the brands sold on the market.
SUPPLIER RISK
DK Company’s production is outsourced to
external suppliers, ensuring flexibility and risk
diversification. DK Company is extremely experi-
enced 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 depart-
ments in Turkey, China and Bangladesh. The
employees of the local purchasing departments
contribute with extensive experience, knowl-
edge and competencies, which means that the
Group achieves the most optimal combination
of price, quality and delivery reliability. This miti-
gates DK Company’s operational risks.
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DK Company 16 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
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 Compa-
ny 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 trans-
ported 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 logis-
tics 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 phys-
ical 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 en-
tered 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
contract for credit insurance of the Group’s cus-
tomers. 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 miti-
gates the risk of losses.
EMPLOYEE RISK
When key employees leave the Group or become
unable to discharge their duties, DK Company is
exposed to risk, since the success of the Group,
among other things, depends on the efforts,
industry knowledge and qualifications of
the employees.
The Group is subject to risk if DK Company
is unable to keep recruiting, developing and
retaining the right employees.
DK Company embraces the value of the whole
person and work-life balance. Human resources
are therefore a priority area for DK Company’s
management. The employees constitute essen-
tial knowledge resources to the Group. The HR
department has developed policies and guide-
lines 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 Compa-
ny’s intercompany transfer pricing policies be
questioned, it may have a significantly negative
impact on the operating profit.
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DK Company 17 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
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 mini-
mised. All material transaction risks are hedged.
DK Company’s currency risks are primarily
hedged by forward exchange contracts. Ex-
change rate and interest rate fluctuations may
have a negative impact on the results.
DK Company’s financial statements are pre-
sented in Danish kroner (DKK), meanwhile, a
significant portion of the Group’s income and
expenses are in other currencies, including
NOK, SEK, GBP, CHF, EUR, CAD and USD, which
means that DK Company may be exposed to
adverse fluctuations in foreign exchange rates.
Exchange rate fluctuations affect the translated
value of the operating results generated outside
Denmark. Fluctuations may also affect the
translation of the value of assets and liabilities in
foreign currencies.
DK Company buys many of its products from
suppliers whose products are priced in 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 obtaining floating rate debt and financial
instruments adapted to the interest rate risk of
the underlying investment.
LIQUIDITY RISK
The Group organises its cash resources and cap-
ital structure to safeguard planned investments
and ensure that the Group may continue as a
going concern. Reference is made to note 26
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
jurisdictions 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.
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DK Company 18 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
“DK Company is in a strong
position to manage the
organic growth that the
company is achieving,.”
Jens Poulsen, Group CEO
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DK Company 19 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
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DK Company 20 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
2023 2022
Total number of members, #
Percentage of under-represented gender, %
Target, %
Target year
Highest governing body (Board of Directors)
Other management levels
2023 2022
Total number of members, #
Percentage of under-represented gender, %
Target, %
Target year
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DK Company 21 / 82Annual Report 2023
MANAGEMENT’S
REVIEW
CONSOLIDATED FINANCIAL
STATEMENTS
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DK Company 22 / 82Annual Report 2023
23 Statement of income and comprehensive income
24 Balance sheet • Assets and liabilities
25 Cash fl ow statement
26 Statement of changes in equity
27 Notes • Basis of preparation of the consolidated
fi nancial statement
31 Notes • EBITDA, working capital and cash fl ows
38 Notes • Signifi cant accounting estimates, assumptions
and adjustments
40 Notes • Invested capital
48 Notes • Capital structure
51 Notes • Tax
54 Notes • Other notes to the consolidated
fi nancial statements
Note Income statement 2023 2022
1 Revenue 4,828,458 4,646,260
Cost of sales -2,255,386 -2,070,892
Gross profi t 2,573,072 2,575,368
Other external expenses
-1,014,003 -960,112
2 Staff costs -884,102 -806,969
3 Other operating income 2,197 6,522
4 Other operating expenses -2,570 -728
Profi t before depreciation, amortisation and fi nancial income and expenses 674,594 814,081
5 Depreciation, amortisation and impairment losses on intangible assets as well as property,
plant and equipment -168,602 -137,440
Operating profi t 505,992 676,641
15 Financial income 38,646 21,902
16 Financial expenses -57,852 -37,559
Financial income and expenses, net amounts -19,206 -15,657
Profi t before tax 486,786 660,984
20 Tax on pro t for the year
-115,462 -146,504
Profi t for the year 371,324 514,480
Profi t is attributable to:
Shareholders of the parent 349,063 473,067
Minority interests 22,261 41,413
Note
Statement of comprehensive income 2023 2022
Profi t of the year 371,324 514,480
Items that may be reclassi ed to the income statement:
Exchange adjustments from translation of foreign entities -3,383 -11,126
Fair value adjustments of hedging instruments:
Value adjustment for the year -118,265 -233,176
Any value adjustments reclassi ed to the income statement 130,333 185,420
Tax on other comprehensive income -2,655 10,506
Other comprehensive income 6,030 -48,376
Total comprehensive income 377,354 466,104
Profi t is attributable to:
Shareholders of the parent 354,313 428,280
Minority interests 23,041 37,824
Amounts in DKK thousands
DK Company 23 / 81
Annual Report 2023
Annual Report 2023
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AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Statement of income and comprehensive income
1 January - 31 December
Note
Assets 2023 2022
Non-current assets
11 Intangible assets 201,051 198,200
12 Property, plant and equipment 178,044 122,607
13 Leased assets 559,008 325,526
Other receivables 25,043 20,725
Receivables from group enterprises 980 980
21 Deferred tax assets 4,545 4,267
Non-current assets 968,671 672,305
Current assets
6 Inventories 1,047,806 1,148,464
7 Trade receivables 505,321 367,355
17 Other contract assets 22,368 19,416
Corporation tax receivable 8,747 4,169
8 Other receivables 87,187 69,977
Prepaid expenses 21,528 21,197
Cash 216,029 224,316
Current assets 1,908,986 1,854,894
Total assets
Note
Equity and liabilities 2023 2022
18 Equity
Share capital 60,000 60,000
Foreign currency translation reserves -26,225 -23,144
Hedging reserves -3,354 -11,597
Retained comprehensive income 820,005 670,933
Proposed dividend 200,000 186,900
Equity of shareholders of the parent 1,050,426 883,092
Minority interests 74,472 68,601
Equity 1,124,898 951,693
Liabilities
Non-current liabilities
21 Deferred tax liabilities 15,714 11,591
13 Lease liabilities 406,811 219,255
Non-current liabilities 422,525 230,846
Current liabilities
13 Lease liabilities 148,334 111,651
Prepayments received from customers 1,149 1,012
17 Other contract liabilities 57,901 46,726
Trade payables 537,931 579,100
Corporation tax 34,343 129,022
Payables to group enterprises 249,259 200,000
9 Other payables 301,317 277,148
Current liabilities 1,330,234 1,344,659
Liabilities 1,752,759 1,575,505
Total equity and liabilities 2,877,657 2,527,198
2023
2022
2021
2020
2019
2.527
1,884 2,034
1,780
2,878
Total assets (DKK million)
2023
2022
2021
2020
2019
575
772
1002
952
1125
Equity (DKK million)
Amounts in DKK thousands
DK Company 24 / 81
Annual Report 2023
Annual Report 2023
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MANAGEMENT’S
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Balance sheet • Assets and liabilities
at 31 December
Note
2023 2022
Pro t before tax 486,786 660,984
22 Adjustments and non-cash transactions 179,066 125,025
10 Change in working capital -3,651 -267,620
Cash fl ows from operating activities before fi nancial income and expenses 662,201 518,389
Interest income received 34,993 15,354
Interest expenses paid -44,739 -21,589
Cash fl ows from operating activities before tax 652,455 512,154
20 Corporation tax reimbursed/paid -213,344 -38,823
Cash fl ows from operating activities 439,111 473,331
Acquisitions of enterprises 0 -511
Acquisition of intangible assets -3,000 -1,118
Acquisition of property, plant and equipment -93,022 -71,979
Disposal of property, plant and equipment 3,248 5,205
Acquisition of nancial assets -5,112 -1,758
Sale of nancial assets 769 4,034
Cash fl ow for investing activities -97,117 -66,127
Changes in other long-term debt 0 -615
Repayment of lease liabilities -146,211 -116,531
Dividend paid to minority interests -17,170 -45,101
Dividend paid to shareholders of the parent -186,900 -468,560
Cach fl ows from fi nancing activities -350,281 -630,807
Cach fl ow for the year -8,287 -223,603
Cash and cash equivalents, beginning of year 224,316 447,919
Cash and cash equavalents, end of year 216,029 224,316
Cash and cash equivalents include:
Cash 216,029 224,316
The cash fl ow statement cannot be immediately derived from the published fi nancial statements.
Amounts in DKK thousands
DK Company 25 / 81
Annual Report 2023
Annual Report 2023
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Cash fl ow statement
1 January - 31 December
DK Company 26 / 81
Annual Report 2023
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Share capital
Foreign currency
translation
reserves
Hedging
reserves
Retained compre-
hensive income
Proposed
dividend
Equity of share-
holders of the
parent
Minority
interests
Total equity
Equity at 1 January 2023 60,000 -23,144 -11,597 670,933 186,900 883,092 68,601 951,693
Pro t for the year 0 0 0 149,063 200,000 349,063 22,261 371,324
Exchange adjustments from translation of foreign entities 0 -3,081 0 88 0 -2,993 -390 -3,383
Fair value adjustments of hedging instruments:
Value adjustment for the year 0 0 -104,174 0 0 -104,174 -14,091 -118,265
Value adjustments reclassi ed to the income statement 0 0 114,742 0 0 114,742 15,591 130,333
Tax on other comprehensive income 0 0 -2,325 0 0 -2,325 -330 -2,655
Other comprehensive income 0 -3,081 8,243 88 0 5,250 780 6,030
Comprehensive income for 2023 0 -3,081 8,243 149,151 200,000 354,313 23,041 377,354
Adjustment, beginning of year 0 0 0 -79 0 -79 0 -79
Dividend 0 0 0 0 -186,900 -186,900 -17,170 -204,070
Changes in equity for 2023 0 0 0 -79 -186,900 -186,979 -17,170 -204,149
Equity at 31 December 2023 60,000 -26,225 -3,354 820,005 200,000 1,050,426 74,472 1,124,898
Equity at 1 January 2022
Pro t for the year 0 0 0 286,167 186,900 473,067 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 reclassi ed 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
Capital contribution to subsidiary 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
Statement of changes in equity
Amounts in DKK thousands
DK Company 27 / 82
Annual Report 2023
Annual Report 2023
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MANAGEMENT’S
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The Consolidated Financial Statements of
DK Company A/S for 2023 are prepared in
accordance with IFRS Accounting Standards
as adopted by the EU and Danish disclosure
requirements for annual reports prepared in
accordance with the provisions applying to re-
porting class C (large enterprises), cf the Danish
Executive Order on Adoption of IFRS issued pur-
suant to the Danish Financial Statements 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).
With regards to the true and fair view of the
Financial Statements, certain reclassifi cations
have been made in the income statement and
notes. Comparative fi gures have been adjusted
accordingly.
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.
iXBRL reporting
The annual report for 2023 is presented in accor-
dance with the applicable requirements of the
European Single Electronic Format (ESEF). In ad-
dition to the annual report’s primary statements,
the notes are also tagged in 2023. The iXBRL
tagging was performed in accordance with the
ESEF taxonomy included in the ESEF Regulation
and developed on the basis of the IFRS taxono-
my issued by IFRS. Where fi nancial statement
items in the annual report are not defi ned in the
ESEF taxonomy, an extension has been made to
the taxonomy. Apart from extensions related to
subtotals, extensions to the taxonomy are linked
to elements of the ESEF taxonomy. The annual
report fi led with the Danish authorities consists
of a special technical zip fi le containing an XHT-
ML document.
Roundings and presentation in the prepara-
tion of the annual report DK Company uses
minimum amounts of DKK 1,000 in the mea-
surement of underlying data. As the annual
report is generally presented in thousands of
Danish kroner, all amounts provided have been
rounded, for which reason some additions may
not add up.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements
comprise DK Company A/S (parent) and the
companies (subsidiaries) over which the parent
has control.
The parent is considered to have control of an
entity if the Group is exposed, or has a right,
to variable returns from its involvement with
the entity and has the ability to affect those
returns through its power over the entity. When
assessing whether the Group has control, de
facto control and any potential voting rights of
substance actually existing at the balance sheet
date are taken into account.
Entities in respect of which the Group exercis-
es signifi cant infl uence, but not control, over
operational and fi nancial policies are classifi ed
as associates. Signifi cant infl uence 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 fi nancial statements
of DK Company A/S and its subsidiaries. The
Consolidated Financial Statements are prepared
by combining items of a uniform nature. The
fi nancial statements used for consolidation
are prepared in accordance with the Group’s
accounting policies.
Upon consolidation, elimination is made of inter-
company income and expenses, intercompany
balances and dividends as well as of realised and
unrealised profi ts and losses on transactions
between the consolidated enterprises.
The subsidiaries’ items are fully consolidated in
the Consolidated Financial Statements. Minority
interests’ share of profi t/loss for the year and of
equity in subsidiaries that are not fully owned is
included as part of the consolidated profi t and
equity, respectively, but is presented separately.
MINORITY INTERESTS
Minority interests are initially measured at fair
value or their proportionate share of the fair
value of the acquired entity’s identifi able assets,
liabilities and contingent liabilities.
In the fi rst 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’ ownership shares. The method is de-
termined for each transaction and disclosed in
the notes in connection with the description of
acquired entities.
Minority interests are subsequently adjusted
for their proportionate share of changes in the
subsidiary’s equity. Comprehensive income is al-
located 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 car-
rying 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 fi gures are not
restated for newly acquired entities. Entities sold
or wound up are recognised in the consolidated
comprehensive income statement up to the
date of disposal or date of winding-up, respec-
tively. 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 pur-
chase method under which the identifi ed assets,
liabilities and contingent liabilities of the newly
acquired entities are measured at fair value at
the time of acquisition. Identifi able 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.
Notes • Basis of preparation of the consolidated fi nancial statement
DK Company 28 / 82
Annual Report 2023
Annual Report 2023
Notes • Basis of preparation of the consolidated fi nancial statement
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
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 amor-
tised but is tested for impairment at least once
a year. The fi rst 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 rec-
ognition, 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 profi t for the year at the time
of acquisition.
The purchase consideration for an entity consists
of the fair value of the agreed consideration in
the form of assets transferred, liabilities assumed
and equity instruments issued. If the fi nal
determination of the consideration is subject to
one or more future events or to the fulfi lment of
conditions agreed, these will be recognised at
fair value at the time of acquisition. Subsequent-
ly, 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 uncer-
tainty as to the identifi cation or measurement
of acquired assets, liabilities or contingent
liabilities or the determination of the purchase
consideration, initial recognition is made on
the basis of provisionally determined values. If it
subsequently turns out that the identifi cation
or measurement of the purchase consideration,
acquired assets, liabilities or contingent liabi-
li-ties was not correct on initial recognition, the
statement is adjusted retrospectively, including
goodwill, for 12 months after the acquisition, and
any comparative fi gures are restated. After that,
goodwill is not adjusted. Changes in estimates
of contingent purchase consideration are rec-
ognised in profi t for the year.
Gains or losses on disposal or winding-up of
subsidiaries are calculated as the difference
between the consideration received and the car-
rying amount of net assets including goodwill at
the time of sale and expenses to sell or wind up.
The profi t or loss calculated is recognised in
profi t for the year, with accumulated exchange
adjustments previously recognised in other
comprehensive income.
TRANSLATION POLICIES
A functional currency is determined for each of
the Group’s reporting entities. The functional
currency is the currency used in the primary
economic environment in which the individual
reporting entity operates. Transactions in cur-
rencies 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 receivables, payables and
other monetary items denominated in foreign
currency which have not been settled at the bal-
ance 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 func-
tional currency at the exchange rate of the
date of transaction. Exchange rate differences
arising between the transaction date and the
date of payment and the balance sheet date,
respectively, are recognised in the profi t or loss
as revenue and costs of sale, respectively, in
respect of exchange differences relating to trade
receivables and trade payables. Other exchange
differences are recognised as fi nancial income
and expenses.
On recognition in the Consolidated Financial
Statements of entities with a functional curren-
cy other than Danish kroner (DKK), the state-
ments of comprehensive income are converted
using average exchange rates for the months,
unless these differ materially from the actual
exchange rates at the time of the transactions.
In case of the latter, the actual exchange rates
will be used. Balance sheet items are translated
at the exchange rates at the balance sheet date.
Exchange differences arising from the trans-
lation of the opening equity and balance
sheet items of foreign entities at closing rates
and exchange differences from the transla-
tion 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 shareholders’ shares
of equity.
The reserve for foreign currency translation
adjustments includes all exchange adjustments
resulting from the translation of fi nancial state-
ments of entities using a functional currency
other than DKK. With respect to full or partial
disposal of wholly-owned foreign entities, for
which control is ceded, exchange adjustments
which are recognised on an accumulated basis
in other comprehensive income and which are
attributable to the entity will be reclassifi ed
from other comprehensive income to profi t/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 transla-
tion reserve relating to minority interests is not
transferred to the income statement. In case of a
partial disposal of foreign subsidiaries for which
control is not ceded, a proportion of the foreign
currency translation reserve is transferred from
the parent company shareholders to the minori-
ty shareholders’ share of equity.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative fi nancial instruments are recognised
in the balance sheet as from the trade date and
are measured at fair value at the date of settle-
ment. Subsequently, derivative fi nancial instru-
ments are measured at fair value at the balance
sheet date. Positive and negative fair values of
derivative fi nancial instruments are included in
other receivables and other debt, respectively.
DK Company 29 / 82
Annual Report 2023
Annual Report 2023
Notes • Basis of preparation of the consolidated fi nancial statement
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Cash fl ow hedge
The share of fair value adjustments of derivative
fi nancial instruments classifi ed as and meeting
the requirements for hedges of expected
future cash fl ows and which ensure effi cient
changes to future cash fl ows are recognised in
other comprehensive income in equity under a
separate hedging reserve until the hedged cash
fl ows affect results. At this time, gains and losses
relating to such hedging transactions from
other comprehensive income are reclassifi ed
and recognised in the same item as the hedged
transactions.
If the hedging instrument no longer meets the
hedge accounting criteria, the hedging relation-
ship will be discontinued. The accumulated val-
ue change recognised in other comprehensive
income is reclassifi ed to the income statement
when the hedged cash fl ows affect the results or
are no longer probable.
The share of the value adjustment of a derivative
fi nancial instrument which is not part of a hedg-
ing relationship is presented under fi nancial
income and expenses.
OTHER DERIVATIVE FINANCIAL
INSTRUMENTS
Other derivative fi nancial instruments that do
not meet the criteria for treatment as hedging
instruments are considered trading portfo-
lios and measured at fair value with current
recognition of fair value adjustments in fi nancial
income and expenses in the income statement.
Dividends
Dividend is recognised as a liability when a reso-
lution approving the dividend has been adopted
by the Annual General Meeting of shareholders
(the time of declaration).
DK Company 30 / 82
Annual Report 2023
Annual Report 2023
Notes • Basis of preparation of the consolidated fi nancial statement
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
The nancial highlights have been calculated in accordance with the recommendations issued by the Danish Society of Financial
Analysts.
The nancial ratios stated in the Annual Report have been calculated as follows:
Revenue growth (%) =
Gross margin (%) =
Pro t margin (%) =
Solvency ratio (%) =
Return on equity (%) =
Net interest-bearing cash / debt position =
Gearing (%) =
Borrowing base (%) =
Dividend per share =
DEFINITION OF FINANCIAL RATIOS
(Revenue for the year - last year’s revenue) x 100
Last year’s revenue
Gross pro t/loss x 100
Revenue
Operating pro t/loss x 100
Revenue
Equity excluding non-controlling interests end of year x 100
Total assets at year end
Pro t/loss attributable to shareholders of the parent x 100
Average equity, excluding non-controlling interests
Current and non-current payables to credit institutions and lease
commitments less cash
Net interest-bearing cash / debt position
Pro t/Loss before depreciation/amortisation and nancial income and
expenses
Net interest-bearing cash / debt position
Inventories + trade receivables + trade payable
Parent’s dividend yield x nominal value of share
100
DK Company 31 / 82
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
This section of the annual report contains notes
relating to the Group’s primary operations. in-
clusing a breakdown by operating segments.
The following notes are presented in this section:
1. Revenue
2. Starff costs
3. Other operating income
4. Other operation expenses
5. Depreciation, amortisation and impairment
losses
6. Inventories
7. Trade receivables
8. Other receivables
9. Other payables
10. Changes in working capital
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
identifi able 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 identifi able performance obliga-
tions, which are recognised and measured
separately at the fair value of the agreed consid-
eration. 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 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 val-
ue of the consideration agreed, exclusive of VAT,
charges, etc. collected on behalf of third parties.
All types of discounts granted are recognised
in revenue. Exchange differences in receivables
from the sale of goods and services in foreign
currencies are recognised in revenue. Fair value
corresponds to the price agreed discounted to
net present value, where the terms of payment
exceed 12 months.
The part of total consideration that is variable,
for example in the form of discounts, bonus
payments, etc., is only recognised in revenue
when it is reasonably certain that there will be
no reversal thereof in subsequent periods. This
also applies to the goods that are expected to
be returned by fulfi lling the Group’s return obli-
gations 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
exceeds 12 months. As a result, the Group does
not adjust the contract price with a fi nancing
element.
Recognition of revenue is not associated with
signifi cant estimates and j udgements.
Cost of sales
Cost of sales include direct expenses incurred
to generate revenue for the year. Cost of sales
is recognised in line with revenue. Change in
inventories for the year is included in the cost
of sales. Exchange differences relating to trade
payables in foreign currencies are recognised in
cost of sales.
Other external expenses
Other external expenses include other expenses
incurred in the year for procurement, sales,
including commission to external sales agents,
distribution and advertising, administration, costs
for the retention of patent rights and bad debts,
etc. Lease payments made under operat-ing 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 fi nal commitment from
the compensation provider that it is likely that
the Group will meet the conditions attached to
the compensation and it is highly likely that the
compensation will not have to be repaid.
Other operating income and expenses
Other operating income and expenses comprise
income and expenses of a secondary nature to
the activities of the Group, including gains
and losses from current sale and replacement
of intangible assets and property, plant and
equipment. Gains and losses from the disposal of
intangible assets and property, plant and equip-
ment are calculated as the difference between
selling price less selling costs and the carrying
amount at the time of disposal.
Depreciation, amortisation and impairment
losses on intangiable assets as well as
property, plant and equipment
Depreciation, amortisation and impairment loss-
es on property, plant and equipment and intangi-
ble 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 profi t/loss from operating activities.
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 fi nished goods
comprises the cost of raw materials, consum-
ables, external production costs and delivery
costs.
Notes • EBITDA, working capital and cash fl ows
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
DK Company 32 / 82
Annual Report 2023
Annual Report 2023
Notes
•
EBITDA, working capital and cash fl ows
The net realisable value of inventories is calcu-
lated as expected selling price with deduction
of costs incurred to execute sales. The value is
determined allowing for marketability, obsoles-
cence 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 fi nancial
assets with fi xed or determinable payments
not listed in an active market and which are not
derivative fi nancial instruments.
Receivables are initially measured at fair value
and subsequently at amortised cost, usually
corresponding to nominal value less provisions
for bad debts. Impairment allowances are made
under the simplifi ed expected credit loss model
under which the total loss is recognised imme-
diately in profi t/loss at the time of recognition
in the balance sheet based on the expected loss
over the lifetime of the receivable. The fi nancial
asset relating to trade receivables is monitored
continuously in accordance with the Group’s
risk management until realisation. Write-down
is calculated on the basis of the expected loss
rate computed from historical data adjusted for
estimates of the impact of expected changes in
relevant parameters. Assessment of writedowns
for estimated bad debt is carried out using a
provisions account.
The revenue recognition of interest on impaired
receivables is calculated on the basis of the
impaired balance at the effective interest rate of
the individual receivable or portfolio.
Other contract assets
Other contract assets include refund assets.
Refund assets include the goods that are ex-
pected to be returned by fulfi lling the Group’s
return obligations based on historical experience
on actual return percentages and product mix.
Refund assets are determined as cost of the un-
derlying items, minus any necessary writedowns.
Prepaid expenses
Prepayments, recognised under assets, include
costs incurred relating to subsequent fi nancial
years. Prepaid expenses are measured at cost.
CASH FLOW STATEMENT
The cash fl ow statement shows the cash fl ows
broken down by operating, investing and fi nanc-
ing 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 fl ow effect of acquiring and selling
entities is shown separately under cash fl ows for
investing activities.
The cash fl ow statement includes cash fl ows
related to business acquisitions as from the date
of acquisition, and cash fl ows from businesses
sold are recognised up until the time of the sale.
Cash fl ows from operating activities are present-
ed according to the indirect method and are cal-
culated on the basis of the profi t/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 fl ows 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 equip-
ment, and other non-current assets, dividends
received and securities not presented as cash
and cash equivalents.
Cash fl ows from fi nancing activities comprise
changes in the size or composition of the parent’s
share capital and related costs, as well as the
raising and repayment of loans, repayments on
interest-bearing debt and lease commitments,
purchases and sales of treasury shares and
minority interests, and payment of dividend to
shareholders and minority shareholders.
Cash and cash equivalents include cash at bank
and in hand.
Cash fl ows in other currencies than the func-
tional currency are recognised in the cash fl ow
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.
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
DK Company 33 / 82
Annual Report 2023
Annual Report 2023
Notes
•
EBITDA, working capital and cash fl ows
1. REVENUE
In terms of geography, consolidated revenue may essentially be broken down as follows:
Growth Growth Share Share
Revenue 2023 2022 2023 2022 2023 2022
Denmark 719,687 628,971 14.4% -0.4% 15.0% 13.6%
Norway 667,622 743,737 -10.2% 32.3% 13.8% 16.0%
Germany 1,018,791 997,699 2.1% -1.3% 21.1% 21.5%
Sweden 557,070 545,077 2.2% 28.0% 11.5% 11.7%
Benelux 599,899 434,326 38.1% 31.4% 12.4% 9.3%
The UK 223,254 225,265 -0.9% 43.1% 4.6% 4.8%
Canada 243,942 240,655 1.4% 60.1% 5.1% 5.2%
France 208,749 174,345 19.7% 30.0% 4.3% 3.8%
Other markets in Europe 525,007 619,847 -15.3% 38.0% 10.9% 13.3%
Other markets outside Europe 64,437 36,338 77.3% -38.9% 1.3% 0.8%
4,828,458 4,646,260 3.9% 18.8% 100.0% 100.0%
The reported growth rates are calculated including the eff ect
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 diff er signi -
cantly from each other, and therefore no separate information
is provided about individual products or services.
The entire Group revenue relates to the sale of goods and is
recognised at a speci c time.
Primary customers
No single customer accounts for more than 10% of the
consolidated revenue.
3,8%
5,2%
4,8%
9,3%
11,7%
21,5%
Denmark
Norway
Germany
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
16,0%
13,6%
0,8%
13,3%
Other markets in
Europe
2022
10.9%
4.3%
5.1%
4.6%
12.4%
11.5%
21.1%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
13.8%
15.0%
1.3%
2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
DK Company 34 / 82
Annual Report 2023
Annual Report 2023
Notes
•
EBITDA, working capital and cash fl ows
2. STAFF COSTS 2023 2022
Wages and salaries 792,507 724,505
De ned contribution plans 57,438 51,304
Other social security expenses 34,157 31,160
884,102 806,969
Average number of employees 1,654 1,572
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).
Remuneration to the Board of Directors and Executive Board:
2023 Board of Directors Executive Board Total
Wages and salaries 675 6,180 6,855
De ned contribution plans 0 513 513
675 6,693 7,368
2022 Board of Directors Executive Board Total
Wages and salaries 475 6,171 6,646
De ned contribution plans 0 516 516
475 6,687 7,162
The above amounts include the value of employee benefi ts.
3. OTHER OPERATING INCOME 2023 2022
Gain on disposal of intangible assets and property, plant and equipment 2,197 3,521
Gain on disposal of other receivables 0 3,001
2,197 6,522
4. OTHER OPERATING EXPENSES
Loss on disposal of intangible assets and property, plant and equipment 2,570 728
2,570 728
0
500
1000
1500
2000
2023
2022
2021
2020
2019
1,572
1,523
1,468
1,677
1,652
Average numbers of employees
5. DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES ON
INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT 2023 2022
Trademarks rights 149 1,153
Buildings 572 765
Leasehold improvements 19,059 18,100
Other xtures and ttings, tools and equipment 11,781 9,726
Leased assets 137,041 107,696
Total depreciation and amortisation 168,602 137,440
Amounts in DKK thousands
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
DK Company 35 / 82
Annual Report 2023
Annual Report 2023
Notes
•
EBITDA, working capital and cash fl ows
6. INVENTORIES 2023 2022
Finished goods and goods for resale 791,205 831,316
Goods in transit 256,601 317,148
1,047,806 1,148,464
Movements for the year in inventory write-downs:
2023 2022
Inventory write-down at 1 January 108,495 76,930
Foreign currency translation adjustments -594 -1,071
Additions for the year 50,541 63,990
Disposals for the year -47,773 -31,354
Inventory write-down at 31 December 110,669 108,495
Amounts in DKK thousands
7. TRADE RECEIVABLES
Due between
2023 Not due 1-60 days 61-120 days > 120 days Total
Trade receivables 155,561 327,940 17,978 54,455 555,934
Impairment losses on trade receivables -1,281 -2,029 -4,888 -42,415 -50,613
Trade receivables, net 154,280 325,911 13,090 12,040 505,321
Proportion of total receivables expect-
ed to be settled 90.9%
Impairment rate 0.8% 0.6% 27.2% 77.9% 9.1%
Due between
2022 Not due 1-60 days 61-120 days > 120 days Total
Trade receivables
117,871 246,155 17,654 45,330 427,010
Impairment losses on trade receivables -2,948 -10,816 -6,535 -39,356 -59,655
Trade receivables, net 114,923 235,339 11,119 5,974 367,355
Proportion of total receivables expect-
ed to be settled 86.0%
Impairment rate 2.5% 4.4% 37.0% 86.8% 14.0%
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 recognised interest on unpaid trade receivables of DKK 2.8 million (DKK 1.9 million) for the year.
2023 2022
Impairment losses on trade receivables
Provision for bad debt under IFRS 9 at 1 January
59,655 50,780
Additions relating to acquisitions 0 55
Adjustments for the year recognised in the income statement. -9,042 8,820
Impairment losses at 31 December 50,613 59,655
2023 2022
The geographical distribution of trade receivables (net) is as follows:
Denmark
56,709 48,765
Norway 10,871 9,448
Germany 130,603 75,380
Sweden 28,266 21,431
Benelux 61,443 40,919
The UK 23,594 23,594
Canada 29,327 31,258
France 6,508 6,508
Other markets in Europe 154,676 104,207
Other markets outside Europe 3,324 5,845
505,321 367,355
7. TRADE RECEIVABLES, CONTINUED
Calculation of impairment loss is based on the simpli ed expected credit loss model under which the total loss is recognised
immediately in pro t/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.
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
DK Company 36 / 82
Annual Report 2023
Annual Report 2023
Notes
•
EBITDA, working capital and cash fl ows
Amounts in DKK thousands
8. OTHER RECEIVABLES 2023 2022
Receivables related to VAT, customs duties and A tax 4,859 3,573
Receivable related to cash collateral 1,006 944
Receivable from factoring 31,848 27,325
Other receivables 49,474 38,135
87,187 69,977
9. OTHER PAYABLES 2023 2022
VAT, customs duties and with holding tax on salaries 103,489 72,868
Salaries and wages, social security expenses and payable holiday pay 67,467 74,814
Derivative nancial instruments 14,967 19,098
Other payables 115,394 110,368
301,317 277,148
Expected maturity:
0-1 year 301,317 277,148
1-5 years 0 0
301,317 277,148
10. CHANGES IN WORKING CAPITAL
2023 2022
Changes in inventories 100,659 -490,342
Changes in receivables -147,893 -132,951
Changes in trade payables -41,156 114,952
Changes in other payables 84,739 240,721
-3,651 -267,620
It is Management’s assessment that the carrying amount of receivables in all materiality corresponds to the fair value.
DK Company 37 / 81
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
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 fac-
tors which Management considers appropriate
in the circumstances and which are inherently
uncertain and unpredictable. The assumptions
may be incomplete or inaccurate, and unexpect-
ed 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 26 ‘Financial
risks’ to the Consolidated Financial Statements.
The estimates made and the underlying as-
sumptions are continuously reassessed. Changes
to accounting estimates made are recognised
in the accounting period in which the change
takes place and in future accounting periods if
the change affects both the period in which the
change takes place and subsequent accounting
periods.
SIGNIFICANT ACCOUNTING ASSESSMENTS
ASSOCIATED WITH THE APPLICATION OF
ACCOUNTING POLICIES
In applying the Group’s accounting policies,
Management has not only carried out the esti-
mates described below but also the following
accounting assessments, which have had a mate-
rial 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
reassess this estimate in the event of signifi cant
events or signifi cant 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 loca-
tion, including whether it is deemed a strate-
gically 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 profi le.
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 fi xed in connection with subsequent
changes to the underlying contractual cash fl ows
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 modifi ed.
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 borrow-
ing 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 refl ects Management’s assessment of
what the most likely course of events will be. In
particular, the assumptions and uncertainties
set out below are signifi cant in the Consolidated
Financial Statements for 2023 as they have had
a signifi cant impact on the assets and liabilities
recognised in the Financial Statements and may
require adjustments in subsequent fi nancial
years if the courses of events assumed are not
realised as expected. No major changes have
been made to the Group’s assessment methods.
Notes • Signifi cant accounting estimates, assumptions and adjustments
DK Company 38 / 81
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
DK Company 39 / 81
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Goodwill
In connection with the annual impairment test
of goodwill, or when there is an indication of
impairment, estimates are made of whether the
parts of the enterprise (cash-generating units) to
which goodwill relates will be able to generate
suffi cient positive net cash fl ows 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 fl ows have to be estimated for many years
into the future, which naturally leads to some
uncertainty. T he uncertainty is refl ected in the
selected discount rate. The value has not been
subject to impairment in relation to the acqui-
sition cost for the fi nancial 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-gener-
ating units) to which the trademarks relate will
be able to generate suffi cient positive net cash
fl ows 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 fl ows have to be estimated for many years
into the future, which naturally leads to some
uncertainty.
The uncertainty is refl ected in the selected dis-
count rate. Due to impairment of the trademark
Bon’ A Parte the value of the trademark of DKK
8 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 fi nancial year.
Reference is made to note 11.
Inventories
Measurement of the Group’s inventories is
signifi cantly infl uenced 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 in-
dividual assessment of seasonality and age and
the risk of realisation assessed for the individual
product groups.
Receivables
Measurement of the Group’s trade receiv-
ables is associated with accounting estimates
of indications of impairment. The indication
of impairment is based on the simplifi ed
expected credit loss model under which the
total loss is recognised immediately in the
income statement at the time of recognition
in the balance sheet. The impairment in par-
ticular 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.
DK Company 40 / 82
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
This section of the annual report contains notes
relating to the Group’s invested capital
The following notes are presented in this
section:
11. Intangiable assets
12. Property, plant and equipment
13. Lease assets
14. Investments in subsidiaries, associates and
joint arrangements
BALANCE SHEET
Goodwill
Goodwill is initially recognised and measured as
the difference between, on the one hand, the
cost of the acquired entity, the value of minority
interests in the acquired entity and the fair value
of any previously acquired equity investments
and, on the other hand, the fair value of the
assets, liabilities and contingent liabilities ac-
quired, see the description in the consolidated
fi nancial statements section.
When recognised, goodwill is allocated to the
activities of the Group that generate inde-
pendent income (cash-generating units). The
defi nition of cash-generating units follows the
management structure and the internal fi nan-
cial 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 intangiable assets
Other intangible assets with indefi nite 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 ac-
quired, see the description in the consolidated
fi nancial statements section.
When recognised, the amount related to
trademark rights is allocated to the activities of
the Group that generate independent income
(cash-generating units). The defi nition of
cash-generating units follows the management
structure and the internal fi nancial manage-
ment policy and Group reporting. Subsequently,
trademark rights are measured at cost less ac-
cumulated 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 defi ned and identifi -
able are recognised as intangible assets if it is
likely that the product or process will generate
future economic benefi ts 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
associated hardware is considered intangible
assets, while other software without which
the computer cannot operate is included as
property, plant and equipment. Software under
intangible assets is measured at cost less accu-
mulated 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 benefi ts for the Group.
The replaced components are no longer rec-
ognised 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
Leasehold improvements
Plant and machinery
Other fi xtures and fi ttings,
tools and equipment
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 specifi c identifi able 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 benefi ts of the
use of the identifi ed asset and the right to make
decisions regarding the use of the identifi ed
asset.
Notes • Invested capital
20 - 30 years
2 - 10 years
5 - 15 years
2 - 7 years
DK Company 41 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Lease liabilities are initially measured at the
net present value of future lease payments
discounted at an alternative borrowing rate. The
following lease payments are recognised as part
of the lease liability:
• Fixed payments.
• Variable payments that fl uctuate in step
with changes to an index or interest rate,
based on the index or interest rate appli-
cable.
• 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 ex-
pects to exercise.
• Penalties related to a termination option
unless, with high probability, the Group
expects not to exercise the option.
The lease liability is measured at amortised cost
using the effective interest methodology. The
lease liability is reassessed when changes in the
underlying contractual cash fl ows arise owing to
changes in an index or interest rate,
if there are changes in the Group’s estimate
of a residual value guarantee, or if the Group
changes its assessment of whether the exercise
of a purchase, extension or termination option is
regarded as reasonably certain.
The leased asset is initially measured at cost,
which corresponds to the value of the lease
liability adjusted for prepaid lease payments,
plus directly related costs and estimated costs
for demolition, refurbishment or the like and less
discounts received or other types of incentive
pay from the lessor.
Subsequently, the asset is measured at cost
less accumulated depreciation and impairment
losses. The leased asset is depreciated over the
shorter of the lease term and the useful life of
the leased asset. Depreciation is recognised on a
straight-line basis in the income statement.
The leased asset is adjusted for changes in the
lease liability as a result of changes in the terms
of the lease or changes in the contract’s cash
fl ows 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.
Shop leases and showroom
Owner-occupied properties
Warehouse properties
The Group presents leased assets and lease
liabilities separately in the balance sheet.
The Group has chosen not to include low-val-
ue 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 Good-
will and intangiable assets with indefi nite
useful lives
For goodwill and intangible assets with indefi -
nite useful lives, the recoverable amount is de-
termined annually regardless of any indications
of impairment. The fi rst assessment is carried
out before the end of the year of acquisition.
The carrying amount of goodwill is tested for
impairment together with other non-current
assets in the cash-generating unit or the group
of cash-generating units to which the goodwill
has been allocated and is written down to the
recoverable amount over the income statement
in case of a higher carrying amount.
As a main rule, the recoverable amount is calcu-
lated as the net present value of expected future
net cash fl ows 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 defi nite useful lives are assessed
annually to determine whether there is any
indication of impairment. If this is the case,
the recoverable amount of the asset should be
calculated in order to determine the need for
impairment and the extent thereof. The recov-
erable 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 fl ows 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 ex-
tent that the new carrying amount of the asset
does not exceed the carrying amount that the
asset would have had after depreciation/amorti-
sation had the asset not been im-paired.
2 - 5 years
2 - 6 years
5 - 10 years
2 - 5 years
DK Company 42 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
11. INTANGIBLE ASSETS
Goodwill Trademark rights Software
Cost at 1 January 2023 64,322 135,591 11,837
Additions at cost 1,500 1,500 0
Cost at 31 December 2023 65,822 137,091 11,837
Amortisation and impairment losses at 1 January 2023 560 1,153 11,837
Amortisation for the year 0 149 0
Amortisation and impairment losses at 31 December 2023
560 1,302 11,837
Carrying amount at 31 December 2023 65,262 135,789 0
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
Goodwill:
Goodwill relating to acquisitions is, at the time of the acquisition, allocated to the cash-generating units which are expected to
achieve economic bene ts 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 ows that are compared with the carrying
amounts. Future cash ows are based on the Company’s business plans, budgets/forecasts for the nancial years 2024 - 2027
(2022: 2023 - 2026). The main parameters when calculating the value in use are revenue, EBITDA and the discount rate. In
calculating the value in use, a growth factor has been used during the terminal period of 2% at 31 December 2023 and 2% at
31 December 2022 and a discount rate after tax of 9.4% at 31 December 2023 and a discount rate after tax of 11.9% at 31
December 2022.
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-eff ectiveness has been incorporated over
the period as a result of continued optimisation in connection with increasing integration of the Group’s strategy in the form of
‘The Blooming Concept’.
Companys Retail AG:
The cash-generating unit 'Companys Retail AG' covers the operation of the Companys chain's retail activities in Switzerland.
Determination of the recoverable value of this cash-generating unit is based on a positive development of the activity owing
to continued focus in the market. The Company is intended to play a central role in the marketing of the Group’s brands to the
Swiss end user.
The impairment test has not given rise to any indications of impairment for neither 2023 nor 2022.
Carrying amount
2023 2022
DK Company Cph Group incl. DK Company Canada Inc. 32,518 32,518
DK Company Con A/S 953 953
Earnest money, retail 3,487 3,487
Companys Retail AG 15,646 15,646
Agencies and customer relations 12,658 11,158
Carrying amount of goodwill 65,262 63,762
Amounts in DKK thousands
DK Company 43 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
11. INTANGIABLE ASSETS, CONTINUED
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 bene ts from the acquisition. Trademark rights are considered to have an inde nite 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
2023 2022
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 7,630 7,779
Culture 8,400 8,400
Pulz 9,000 9,000
Saint Tropez 3,500 3,500
Solid 1,759 1,759
Ball 1,500 0
Carrying amount of trademark rights 135,789 134,438
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 ows that are compared with the carrying
amounts. Future cash ows are based on the Company’s business plans, budgets/forecasts for the nancial years 2024-2027
(2022: 2023-2026). 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 eff ect 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 2023 and 1.2% at 31 December 2022 and a discount rate before tax of 9.4%
at 31 December 2023 and 11.9% at 31 December 2022.
Impairment of the trademark rights of Bon´A Parte results in a impariment loss of 0.1 million in 2023 and 1 million in 2022 due to
expected lower activities in compared to previous years.
Besides this, the impairment test did not give rise to any indications of impairment for neither 2023 nor 2022.
Other intangible assets:
Neither in 2023 nor in 2022 did Management identify a need for impairment of other intangible assets.
12. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Leasehold
improvements
Other fi xtures and
fi ttings, tools
and equipment
Cost at 1 January 2023 18,232 149,583 43,853
Foreign currency translation adjustments 0 -2,530 -1,985
Additions at cost 900 28,915 63,207
Disposals at cost 0 -8,337 -8,688
Transfer between categories 0 0 0
Cost at 31 December 2023 19,132 167,631 96,387
Depreciation and impairment losses at 1 January 2023 1,117 64,260 23,684
Foreign currency translation adjustments 0 -1,380 -1,819
Depreciation for the year 572 19,059 11,781
Reversal of assets sold 0 -5,144 -7,024
Transfer between categories 0 -4 4
Depreciation and impairment losses at 31 December 2023 1,689 76,791 26,626
Carrying amount at 31 December 2023 17,443 90,840 69,761
Cost at 1 January 2022 27,840 100,667 49,921
Foreign currency translation adjustments 0 -1,124 -1,969
Additions relating to acquisitions 0 0 0
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
Amounts in DKK thousands
DK Company 44 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
13. LEASES
LEASED ASSETS Properties
Operating
equipment, etc. Total
Carrying amount at 1 January 2023 301,804 23,722 325,526
Foreign currency translation adjustments -4,820 -286 -5,106
Additions 260,074 148,175 408,249
Depreciation for the year -118,982 -18,059 -137,041
Disposals -31,575 -1,045 -32,620
Carrying amount at 31 December 2023 406,501 152,507 559,008
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
LEASE LIABILITIES
Expected maturity: 2023
2022
0-1 years 162,683 116,286
1-5 years 356,788 194,666
Over 5 years 80,834 29,887
Total non-discounted lease liability 600,305 340,839
Lease liability recognised in the balance sheet
Short-term 148,334 111,651
Long-term 406,811 219,255
555,145 330,906
AMOUNT RECOGNISED IN THE INCOME STATEMENT
Interest expenses relating to lease liabilities 8,296 4,192
Lease payments not recognised as part of the lease liability 36,371 34,562
44,667 38,754
For 2023, the Group has paid DKK 154.5 million in relation to leases, of which interest payments related to recognised lease
liabilities of DKK 8.3 million, and repayments of recognised lease liabilities of DKK 146.2 million.
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.
Amounts in DKK thousands
DK Company 45 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
14. INVESTMENTS IN OTHER ENTITIES
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 signi cant minority interests:
Statement of Comprehensive Income, etc. 2023 Revenue Profi t for the year Total comprehensive income
Minority interests’ share of
profi t for the year
Dividend paid
to minority interests’
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest) 45,348 3,799 3,799 1,899 1,724
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 19,5% ownership, minority interest) 51,650 2,280 2,280 445 722
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest) 1,201,080 102,184 111,507 12,903 13,100
Meinemarkenmode GmbH (DK Company Vejle Group)
(Germany, 24.9% ownership, minority interest) 577,622 22,636 22,636 5,636 0
Other subsidiaries that are individually immaterial 1,378 1,624
22,261 17,170
Balance Sheet 2023 Non-current assets Current assets Non-current liabilities Current liabilities
Carrying amount of
minority interests
Østfold Mote AS (DK Company Vejle Group)
(Norway, 50% ownership, minority interest) 2,042 10,546 0 7,974 2,307
DSM CPH 1 ApS (DK Company Retail Group)
(Ikast, Denmark, 19.5% ownership, minority interest) 3,514 11,166 54 4,929 1,891
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest) 353,884 485,686 40,090 484,680 40,977
Meinemarkenmode GmbH (DK Company Vejle Group)
(Germany, 24.9% ownership, minority interest) 627 278,069 0 173,364 26,228
Other subsidiaries that are individually immaterial 3,069
74,472
Amounts in DKK thousands
DK Company 46 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
14. INVESTMENTS IN OTHER ENTITIES, CONTINUED
Statement of Comprehensive Income, etc. 2022 Revenue Profi t for the year Total comprehensive income
Minority interests’ share of
profi t 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, 29.99% ownership, minority interest)
55,610 2,923 2,923 570 1,073
DK Company Vejle A/S
(Vejle, Denmark, 13.1% ownership, minority interest)
1,264,553 208,125 186,560 26,568 31,440
Meinemarkenmode GmbH - acquired on 29 February
2020
552,324 38,664 38,664 9,627 8,703
(Germany, 24.9% ownership, minority interest)
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, 29.99% 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 - acquired on 29 February
2020
(Germany, 24.9% ownership, minority interest)
678 217,456 0 135,599 20,551
Other subsidiaries that are individually immaterial 3,430
68,601
Amounts in DKK thousands
DK Company 47 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Invested capital
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Place of
registered offi ce Ownership
Ownership
subgroup Currency
Share capital
(1,000)
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
Place of
registered offi ce Ownership
Ownership
subgroup Currency
Sharecapital
(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
Ball IP ApS Denmark 100% DKK 40
DKV UK LTD UK 100% GBP 50
DK Company Vejle USA Inc. USA 100% USD 6
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.
Group subsidiaries
Amounts in DKK thousands
Ret formatet
DK Company 48 / 82
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
GROUP CHART AND
FINANCIAL RATIOS
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
This section of the annual report contains notes
relating to the Group’s capital structure.
The following notes are presented in
this section:
15. Financial income
16. Financial expenses
17. Contract assets and liabilities
18. Equity
19. Debt from fi nancing activities
FINANCIAL INCOME AND EXPENSES
Financial income and expenses include interest
income and expenses, the interest element of
fi nance lease payments, realised and unreal-
ised gains and losses, including amortisation
additions or deductions on liabilities and
transactions in foreign currencies other than
exchange differences in trade receivables and
trade payables recognised under revenue and
cost of sales, respectively. Moreover, interest
charges and reimbursements under the on-ac-
count tax scheme are recognised as fi nancial
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 fi nancial 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.
FAIR VALUE MEASUREMENT
The Group applies the fair value concept in con-
nection with certain disclosure requirements
and for the recognition of fi nancial instruments.
Fair value is defi ned 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-specifi c mea-
surement. The entity applies the assumptions
that market participants would make use of
when pricing the asset or liability on the basis of
existing market conditions, including assump-
tions regarding risks. Thus, when calculating fair
value, the entity’s intention of owning the asset
or settling the liability is not taken into account.
The fair value assessment is based on the
primary market. If no primary market exists, the
assessment is based on the most advantageous
market, being the market that maximises the
price of the asset or liability less transaction and
transport costs.
All assets and liabilities measured at fair value or
for which fair value is disclosed, are categorised
by the fair value hierarchy, as described below:
• Level 1: Value based on the market value of
similar assets/liabilities in a well-function-
ing market.
• Level 2: Value based on generally accepted
valuation methods on the basis of observ-
able market information.
• Level 3: Value based on generally accepted
valuation methods and reasonable esti-
mates (non-observable market informa-
tion).
Notes • Capital structure
DK Company 49 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Capital structure
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
15. FINANCIAL INCOME 2023 2022
Other interest income 34,993 15,354
Interest income from fi nancial assets not measured at fair value through profi t or loss 34,993 15,354
Foreign exchange gains and fair value adjustment of nancial instruments 3,653 6,548
38,646 21,902
16. FINANCIAL EXPENSES (DKK 1,000) 2023 2022
Interest expenses, lease liabilities 8,296 4,192
Other interest expenses 36,443 17,397
Interest expenses from fi nancial liabilities not measured at fair value through profi t or loss 44,739 21,589
Foreign exchange loss and fair value adjustment of nancial instruments 13,113 15,970
57,852 37,559
17. CONTRACT ASSETS AND LIABILITIES 2023 2022
RECONCILIATION OF CONTRACT ASSETS AND LIABILITIES
Contract assets:
Receivables included in trade receivables 505,321 367,355
Other contract assets:
Refund assets 22,368 19,416
527,689 386,771
Contract liabilities:
Prepayments received from customers 1,149 1,012
Other contract liabilities:
Refund liabilities 57,901 46,726
59,050 47,738
Dividends distributed for the year amounted to DKK 186.9 million compared to DKK 468.6 million last year.
Dividends distributed per share equals DKK 31.2 compared to DKK 78.1 last year.
It is proposed for this year to distribute dividends of DKK 200 million for the nancial year compared to DKK 186.9 million last
year.
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 diff erences occurring from trans-
lation of nancial 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 eff ective 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 ows, with the transaction hedged not having been realised yet.
The reserve will be dissolved when the secured transaction is realised, if the secured cash ows are no longer expected to be
realised or the hedging conditions are no longer eff ective.
18. EQUITY
No. (1,000) Nominal value
SHARE CAPITAL
2023 2022 2023 2022
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
Amounts in DKK thousands
DK Company 50 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Capital structure
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
19. DEBT FROM FINANCING ACTIVITIES
Non-cash changes
2023 Beginning of year Cash fl ows
Other additions and
disposals End of year
Lease liabilities 330,906 -151,390 375,629 555,145
330,906 -151,390 375,629 555,145
Non-cash changes
2022 Beginning of year Cash fl ows
Other additions and
disposals End of year
Long-term debt 615 -615 0 0
Lease liabilities 247,223 -118,515 202,198 330,906
247,838 -119,130 202,198 330,906
Amounts in DKK thousands
DK Company 51 / 82
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
This section of the annual report contains notes
relating to the Group’s taxation.
The following notes are presented in this section:
20. Tax on profi t/loss for the year
21. Deferred tax
TAX
Tax on profi t/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 includ-
ed in the on-account taxation scheme.
Tax for the year consists of current tax for the
year and any changes in deferred tax. In addi-
tion, 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 profi t for the year, in other
comprehensive income or directly in equity,
depending on where the transaction to which
tax for the year relates is recognised.
Tax payable and deferred tax
Current tax liabilities and receivables are 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 bal-
ance sheet date will be applied when calculat-
ing current tax for the year.
Deferred tax is measured under the balance
sheet liability method on the basis of all
temporary differences between the carrying
amounts and the tax bases of assets and lia-
bilities. However, no deferred tax is recognised
on temporary differences relating to goodwill
not deductible for tax purposes, or other items
where temporary differences – except in the
case of business combinations – have arisen at
the date of acquisition and affect neither the net
profi t 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 coun-
tries 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 profi t 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,
suffi cient taxable income will be generated for
the deferred tax asset to be utilised.
Uncertain tax positions are measured, depend-
ing on the type, either as a probability-weighted
average of possible outcomes or as the most
likely outcome. Uncertain tax positions are
recognised in the tax items to which they relate,
i.e. under current tax payable/receivable and/or
deferred tax liabilities/assets, respectively.
Notes • Tax
DK Company 52 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Tax
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
20. TAX ON PROFIT FOR THE YEAR 2023 2022
Current tax for the year 113,925 148,870
Change in deferred tax for the year 1,112 -2,923
Adjustment of tax relating to previous years 423 557
Tax on profi t for the year 115,462 146,504
The tax on profi t for the year can be explained as follows:
Tax rate of 22.0% on the pro t before tax 107,093 145,416
Adjustment of calculated tax in foreign group enterprises in relation
to 22.0% and pro t from associates 7,293 4,779
Tax eff ect of:
Non-taxable income -13 -681
Non-deductible expenses 794 941
Deferred tax asset not recognised -130 -4,508
Adjustment of tax relating to previous years 425 557
Tax on profi t for the year 115,462 146,504
Eff ective tax rate 23.7% 22.2%
Total tax for the year includes the following:
Tax on pro t/loss for the year, see above 115,462 146,504
Tax on other comprehensive income, see below 2,655 -10,506
118,117 135,998
Tax on fair value adjustments of hedging instruments 2,655 -10,506
Tax on other comprehensive income 2,655 -10,506
EXHAUSTIVE PRESENTATION OF INCOME TAXES PAID BY COUNTRY 2023 2022
Denmark 176,899 8,953
Norway 7,209 4,174
Sweden 1,794 1,795
Germany 15,579 16,108
Belgium 1,476 0
Netherlands 107 290
Finland 179 96
UK 990 507
Spain 668 568
Canada 4,130 2,713
Switzerland 47 24
France 1,826 2,179
China 2,440 1,416
213,344 38,823
Amounts in DKK thousands
DK Company 53 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Tax
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
21. DEFERRED TAX 2023 2022
Deferred tax at 1 January -7,324 -19,948
Correction beginning of year 85 -807
Foreign currency translation adjustments -163 3
Deferred tax for the year recognised in pro t/loss for the year
-5,653 2,922
Deferred tax for the year recognised in other comprehensive income -2,655 10,506
Deferred tax at 31 December -15,710 -7,324
Deferred tax is recognised as follows in the balance sheet:
Deferred tax assets 4,545 4,267
Deferred tax liabilities -15,714 -11,591
-11,169 -7,324
The Group has prepared an impairment test of deferred tax assets which shows that the losses with reasonable 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 diff erences can be speci ed as follows:
Deferred tax assets not recognised in the balance sheet:
2023 2022
Tax losses 1,004 2,097
1,004 2,097
2023
Balance Sheet
1. January
Correction begin-
ning of year
Foreign currency
translation adjust-
ments
Recognised in
profi t/loss for
the year
Recognised in other
comprehensive income-
Acquisition and sale of
enterprises, etc.
Balance Sheet
31. December
Intangible assets -31,823 85 -708 5,860 0 0 -26,586
Property, plant and equipment 10,868 0 242 -467 0 0 10,643
Inventories 7,626 0 170 -7,112 0 0 684
Receivables 823 0 18 583 0 0 1,424
Other current assets -277 0 -6 2,774 -2,655 0 -164
Other liabilities 7,426 0 165 -2,264 0 0 5,327
Tax losses 195 0 4 -288 0 0 -89
Retaxation liability -2,162 0 -48 -198 0 0 -2,408
-7,324 85 -163 -1,112 -2,655 0 -11,169
2022
Balance Sheet
1. January
Correction begin-
ning of year
Foreign currency
translation adjust-
ments
Recognised in
profi t/loss for
the year
Recognised in other
comprehensive income-
Acquisition and sale of
enterprises, etc.
Balance Sheet
31. December
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
Provision for deferred tax is by the Danish companies made at the tax rate at which temporary diff erences are expected realised
on the basis of the adopted corporation tax rate of 22%. The same applies to the Norwegian companies in the Group, whose
corporate tax rates are 22% and to the Group’s Swedish companies, whose corporate tax rates are 20.6%.
Amounts in DKK thousands
DK Company 54 / 82
Annual Report 2023
Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
This section of the annual report contains other
mandatory notes that do no fall within the
scope of the other sections of the report.
The following notes are presented in this sec-
tion:
22. Adjustment for non-cash transactions
23. Security
24. Contingent assets and liabilities
25. Acquisitions of enterprises
26. Financial risks
27. Related parties
28. Fee to auditors appointed at the annual
general meeting
29. Subsequent events
30. New accounting regulation
31. Shareholder information
32. Adoption of the annual report for publication
Provisions
Provisions are recognised when, in consequence
of events occurring in the fi nancial year or
previous years, the Group is under a legal or
constructive obligation, and it is probable that
the fi nancial resources of the Group will be
drawn on to settle the obligation. Provisions are
measured as best estimate of the expenses nec-
essary to settle the obligations on the balance
sheet date. Provisions with expected maturity
more than one year after the balance sheet date
are measured at net present value.
Other contract liabilities
Other contract liabilities cover return obligations
concerning goods that are expected to be re-
turned based on historical experience on actual
return percentages and product mix. Return
obligations are measured as the sales price of
the underlying items.
Other fi nancial liabilities
Other fi nancial liabilities include debt to credit
institutions, trade payables and other debt to
public authorities, etc. Other fi nancial liabili-
ties 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 dif-
ference between the proceeds and the nominal
value is recognised in the income statement as
fi nancial expenses over the loan term.
Pension obligations, etc.
The Group has entered into pension agree-
ments and similar agreements with the main
part of its employees.
As regards defi ned contribution plans, fi xed
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 ser-
vice entitling them to the pension contribution.
Amounts due are recognised in the balance
sheet under other liabilities. The Group has no
defi ned benefi t plans.
Deferred income
Deferred income, recognised under liabilities,
includes received income relating to sub-
sequent fi nancial years. Deferred income is
measured at cost.
Notes • Other notes to the consolidated fi nancial statements
DK Company 55 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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AND AUDITOR’S REPORT
MANAGEMENT’S
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22. ADJUSTMENTS AND NON-CASH TRANSACTIONS 2023 2022
Depreciation, amortisation and impairment losses on intangible assets as well as property, plant
and equipment 168,602 137,440
Gain on disposal of intangible assets and property, plant and equipment -2,197 -6,522
Loss on disposal of intangible assets and property, plant and equipment 2,570 728
Financial income -38,646 -21,902
Financial expenses 57,852 37,559
Other adjustments -9,115 -22,278
179,066 125,025
25. ACQUISITIONS OF ENTERPRISES
The DK Company A/S Group has not acquired any enterprises of a signi cant nature in 2023.
The DK Company A/S Group has not acquired any signi cant enterprises after the balance sheet date.
23. SECURITY
Security has been provided for rental obligations, etc. for a total of DKK 78.0 million (DKK 95.7 million).
24. CONTINGENT ASSETS AND LIABILITIES
Other contingent assets
None other than the deferred not recognised tax assets referred to in note 21.
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 2023, the total amount outstanding in joint
corporation tax is DKK -0.7 million compared to last year’s DKK 32.6 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 2023, the total liability concerning future payments for these commitments amounts to
DKK 84 million (DKK 87 million).
The Group has entered into agreements (letters of credit) for supplies of DKK 101.2 million compared with DKK 89.6 million last year.
Amounts in DKK thousands
DK Company 56 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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MANAGEMENT’S
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26. FINANCIAL RISKS 2023 2022
Categories of fi nancial instruments
ASSETS
Derivative nancial instruments (assets) 0 0
Hedge instruments measured at fair value concluded to hedge future cash fl ows 0 0
Trade receivables 505,321 367,355
Receivables from group enterprises 980 980
Other receivables 112,230 90,702
Cash 216,029 224,316
Financial assets measured at amortised cost 834,560 683,353
LIABILITIES
Derivative nancial instruments (liabilities) 14,967 19,098
Hedge instruments measured at fair value concluded to hedge future cash fl ows 14,967 19,098
Lease liabilities 555,145 330,919
Trade payables 537,931 579,087
Financial liabilities, measured at amortised cost 1,093,076 910,006
Risk management policy of the Group
As a result of its operations, investment and nancing, the Group is exposed to changes in exchange rates and interest rates.
The Group’s policy is not to speculate actively in nancial risks. The Group’s nancial management thus focuses on the manage-
ment of nancial risks related to operations and nancing.
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 2022.
Amounts in DKK thousands
DK Company 57 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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Nominal currency
positions at 31.12.2023
Sensitivity analysis
Cash and cash
equivalents and
receivables
Liabilities (non-
derivatives) Total
Likely change
in exchange
rate
Hypothetical impact on profi t/loss
for the year on equity
USD/DKK 26,009 -298,893 -272,884 +10% -21,285 -21,285
NOK/DKK 105,774 -106,040 -266 +10% -21 -21
SEK/DKK 94,443 -70,056 24,387 +10% 1,902 1,902
EUR/DKK 460,024 -308,959 151,065 +2% 2,357 2,357
Others 158,740 -58,547 100,193 +10% 7,815 7,815
844,990 -842,495 2,495 -9,232 -9,232
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 profi t/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
Currency risks
The Group’s foreign currency risks are handled centrally by the Group nance department. Activities carried out by the Group’s Danish companies are aff ected 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 aff ected by changes in exchange rates, as the pro ts/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 nancial 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:
26. FINANCIAL RISKS, CONTINUED
Amounts in DKK thousands
DK Company 58 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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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 eff ect on pro t/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 speci ed impact contains the eff ect 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 pro t/
loss for the year and equity, respectively.
Interest rate risk
The Group's interest rate risk is monitored by the nance department in accordance with the Group's policies in this area.
The Group’s nancial assets and nancial liabilities are oating-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 net dept portfolio consists of short-term net debt
to credit institutions. Sensitivity of an interest rate change of +/- 1% amounts to approx. DKK -2,2 million (DKK -2,2 million).
Credit risks
The Group's credit risks are partly related to receivables and derivative nancial instruments with positive fair value. The maxi-
mum credit risk related to nancial assets corresponds to the values recognised in the balance sheet.
The Group has no signi cant risks relating to a single customer or business partner. The Group’s policy for assuming credit risks
entails that all customers are as a general rule covered by credit insurance taken out with external business partners.
In some instances, the Group receives collateral for sale on credit, and security received is included in the assessment of the
requirement for a provision for bad debt. The maximum credit risk is re ected in the carrying amount of each nancial asset
included in the balance sheet.
Carrying amount 2023 2022
Trade receivables 505,321 367,355
Receivables from group enterprises 980 980
Other receivables 112,230 90,702
618,531 459,037
Note 7 shows the geographical distribution of trade receivables and the non-impaired receivables.
Liquidity risk
Due dates of nancial liabilities are speci ed below, broken down by the time intervals applied in connection with the
Group's cash
management. The speci ed amounts represent the amounts due for payment including interest, etc.
2023
Carrying
Amount
Contractual
cash fl ow 0-1 years 1-5 years After 5 years
Non-derivative fi nancial instruments
Lease liabilities 555,145 600,305 162,683 356,788 80,834
Trade payables 537,931 537,931 537,931 0 0
1,093,076 1,138,236 700,614 356,788 80,834
2022
Non-derivative fi nancial instruments
Lease liabilities 330,919 340,839 116,286 194,666 29,887
Trade payables 579,087 579,087 579,087 0 0
910,006 919,926 695,373 194,666 29,887
26. FINANCIAL RISKS, CONTINUED
Amounts in DKK thousands
DK Company 59 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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26. FINANCIAL RISKS, CONTINUED
Derivative fi nancial instruments meeting hedging requirements
The Group has concluded foreign currency hedging agreements that meet the criteria for hedge accounting. The fair value ad-
justment is recorded directly in equity and will be recognised as the nancial contracts are realised. The open forward exchange
contracts may be speci ed as follows:
2023 Residual maturity Contractual value Fair value
Currency risks:
USD 0-12 months 1,046,193 -3,753
SEK 0-12 months -217,855 -4,980
NOK 0-14 months -175,144 -3,975
GBP 0-9 months -76,352 374
CHF 0-20 months -121,410 -3,067
CAD 0-9 months -52,454 434
402,978 -14,967
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
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 nancial instruments exist only in the form of forward exchange contracts measured according to gener-
ally 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 ows are applied.
Derivative nancial instruments are recognised in other receivables and other payables.
The gains on derivative nancial instruments recognised in the income statement in revenue, cost of sales, nancial income and
nancial expenses appear from the statement of comprehensive income for 2023 and 2022, 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 pro t/loss before depreciation, amortisation and nancial income and
expenses.
Such gearing is determined as follows:
2023 2022
Credit institutions 555,145 330,919
Cash -216,029 -224,316
Net interest-bearing debt 339,116 106,603
Profi t before depreciation, amortisation and fi nancial
income and expenses
674,593 814,081
Gearing 0.5 0.1
Another nancial benchmark is the solvency ratio, which is calculated as follows:
Equity excluding minorities 1,050,426 883,092
Total assets 2,877,656 2,527,198
Solvency ratio (%) 36.5 34.9
A third nancial benchmark is the borrowing base, which is calculated as follows:
Net interest-bearing debt 339,116 106,603
Inventories 1,047,805 1,148,464
Trade receivables 505,321 367,355
Trade payables -537,931 -579,087
1,015,195 936,732
Borrowing base 0.3 0.1
Amounts in DKK thousands
DK Company 60 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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27. RELATED PARTIES
Related parties with control
Related parties with control over DK Company A/S:
Name Place of registered offi ce 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 nancial year, the Group has completed the following transactions with related parties with control over DK Compa-
ny 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 9.1 million (DKK
6.8 million) was paid in the nancial year. Total annual rent for lease with JP Ejendomme 2 A/S amounts to DKK 9.1 million
(DKK 6.8 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 gurative marks. The agreement on the right to use
trademarks and gurative marks is non-terminable, but may nonetheless be terminated if one of the parties is in material
default of its obligations under the agreement. As a consequence of the Group having undertaken to pay all costs of
maintaining and protecting the registrations of the trademarks and gurative 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 6 and 7. 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 2.
Subsidiaries
Transactions with subsidiaries are eliminated from the Consolidated Financial Statements.
28. FEE TO AUDITORS APPOINTED AT THE ANNUAL GENERAL MEETING
2023 2022
PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab
Statutory audit 3,016 2,750
Other assurance engagements 233 231
Tax and VAT-related advice 447 869
Other services 190 417
3,885 4,267
Other auditors in foreign subsidiaries
Statutory audit 1,608 947
Other assurance engagements 108 0
Tax and VAT-related advice 1,271 1,270
Other services 186 553
3,173 2,770
7,058 7,037
All material group enterprises are audited by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab. Fees relating
to other auditors concern local audits and consulting regarding certain foreign subsidiaries for which PricewaterhouseCoopers,
Statsautoriseret Revisionspartnerselskab is not appointed auditor.
29. SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially aff ect the assessment of the Annual Report.
Amounts in DKK thousands
DK Company 61 / 82
Annual Report 2023
Annual Report 2023
Notes
•
Other notes to the consolidated fi nancial statements
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30. NEW ACCOUNTING REGULATION
At the time of publication of this Annual Report, IASB has issued a number of new IFRS standards, amendments to existing
standards and IFRIC interpretations that are not yet mandatory for DK Company A/S when preparing the annual report for 2023.
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 eff ective date is diff erent 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 eff ect on recognition and measurement in DK Company A/S’ future annual
reports.
31. 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.
32. ADOPTION OF THE ANNUAL REPORT FOR PUBLICATION
At its board meeting on 16 May 2024, 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 16 May
2024.
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DK Company 62 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
63 Statement of income
64 Balance sheet • Assets and liabilities
65 Statement and changes in equity
66 Notes to the parent company fi nancial statements
DK Company 63 / 82Annual Report 2023
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Note
2023 2022
2 Revenue 675,025 678,125
Costs of goods for resale -403,556 -385,523
Other external expenses -104,895 -121,738
3 Other operating income 120,581 88,209
Gross profi t 287,155 259,073
4 Staff costs -188,911 -165,321
Depreciation, amortisation and impairment losses on intangible assets as well as property,
plant and equipment -9,717 -7,711
5 Other operating expenses -200 0
Profi t before fi nancial income and expenses 88,327 86,041
Share of pro t/loss after tax in group enterprises 277,922 387,441
6 Financial income 22,899 11,127
7 Financial expenses -20,267 -7,131
Financial income and expenses, net amounts 280,554 391,437
Profi t before tax 368,881 477,478
8 Tax on pro t for the year -20,305 -19,206
Profi t for the year 348,576 458,272
Statement of income
1 January - 31 December
Amounts in DKK thousands
DK Company 64 / 82Annual Report 2023
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Note
Assets
2023 2022
Non-current assets
Goodwill 1,680 2,520
9
Intangible assets 1,680 2,520
Land and buildings 11,427 11,000
Leasehold improvements 45,918 37,675
Other xtures and ttings, tools and equipment 101,875 6,559
10
Property, plant and equipment 159,220 55,234
11 Investments in subsidiaries 806,561 758,063
12 Other receivables 1,413 1,497
13 Deferred tax assets 0 3,107
Other non-current assets 807,974 762,667
Non-current assets 968,874 820,421
Current assets
Inventories 135,754 138,627
Inventories
135,754 138,627
Trade receivables 4,320 10,867
Receivables from group enterprises 357,017 181,941
Other receivables 12,984 9,611
Deferred income 5,630 5,492
Receivables 379,951 207,911
Cash 321,342 331,572
Current assets 837,047 678,110
Total assets 1,805,921 1,498,531
Note
Equity and liabilities
2023 2022
Equity
14 Share capital 60,000 60,000
Reserve for net revaluation under the equity method 468,834 249,137
Hedging reserves -2,611 -3,090
Retained earnings 175,531 241,044
Proposed dividend 200,000 186,900
Equity 901,754 733,991
Non-current liabilities
13 Deferred tax 276 0
11 Provision for negative investments in group enterprises 5,295 3,806
15 Credit institutions 61,213 110
Non-current liabilities 66,784 3,916
Current liabilities
15 Credit institutions 77,092 10,960
Prepayments received from customers 35 94
Trade payables 115,529 104,671
Payables to group enterprises 543,406 577,451
Corporation tax 16,157 19,264
Other payables 85,164 48,184
Current liabilities 837,383 760,624
Liablities 904,167 764,540
Total equity and liabilities 1,805,921 1,498,531
Balance sheet • Assets and liabilities
at 31 December
Amounts in DKK thousands
DK Company 65 / 82Annual Report 2023
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Share capital
Reserve for
net revaluation
under the equity
method
Hedging
reserves
Retained
earnings
Proposed
dividend Total equity
Equity at 1 January 2023 60,000 249,137 -3,090 241,044 186,900 733,991
Correction beginning of year 0 172,688 0 -172,688 0 0
Transferred from distribution of net pro t 0 41,022 0 107,554 200,000 348,576
Value adjustment of nancial instruments 0 0 614 0 0 614
Tax on nancial instruments 0 0 -135 0 0 -135
Exchange adjustments from translation of foreign entities 0 -1,697 0 -379 0 -2,076
Change in equity in group enterprises 0 7,684 0 0 0 7,684
Dividends distributed in the nancial year 0 0 0 0 -186,900 -186,900
Equity at 31 December 2023 60,000 468,834 -2,611 175,531 200,000 901,754
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 pro t 0 227,410 0 43,963 186,900 458,273
Value adjustment of nancial instruments 0 0 -20,108 0 0 -20,108
Tax on nancial instruments 0 0 4,424 0 0 4,424
Exchange adjustments from translation of foreign entities 0 -9,014 0 -1,535 0 -10,549
Change in equity in group enterprises 0 -20,436 0 0 0 -20,436
Dividends distributed in the nancial year 0 0 0 0 -468,560 -468,560
Equity at 31 December 2022 60,000 249,137 -3,090 241,044 186,900 733,991
Statement and changes in equity
Amounts in DKK thousands
61 Note 1 - Accounting policies
INCOME STATEMENT
BALANCE SHEET
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 profi t/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 profi t
69 Note 20 - Special items
Notes to the parent company fi nancial statements
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
DK Company 66 / 82Annual Report 2023
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The Financial Statements for 2023 of the parent
DK Company A/S are prepared in accordance
with the provisions of the Danish Financial State-
ments Act applying to enterprises of reporting
class C (large enterprises). The accounting poli-
cies are consistent with those of last year.
With regards to the true and fair view of the
Financial Statements, certain reclassifi cations
have been made in the income statement and
notes. Comparative fi gures have been adjusted
accordingly.
RECOGNTION AND MEASUREMENT
Income is recognised in the income statement
as earned, including value adjustments of
fi nancial assets and liabilities. Moreover, all
expenses incurred are recognised in the income
statement, including depreciation, amortisation,
impairment losses and provisions as well as
reversals due to changed accounting estimates
of amounts previously recognised in the income
statement.
Assets are recognised in the balance sheet when
it is probable that future economic benefi ts at-
tributable to the asset will fl ow 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 bene-
fi ts will fl ow 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 fi nancial assets and liabilities are
measured at amortised cost, which involves
the recognition of a constant effective interest
rate over the maturity period. Amortised cost is
calculated as original cost less any repayments
and with addition/deduction of the accumulated
amortisation of any difference between cost and
the nominal amount. Capital losses and gains
are thus allocated over the terms of the asset or
liability.
Recognition and measurement take into
account predictable losses and risks occurring
before the presentation of the Financial State-
ments 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 transac-
tion date rates and the rates at the dates of pay-
ment are recognised in the income state-ment.
If foreign exchange positions are considered
hedges of future cash fl ows, the value adjust-
ments are recognised directly in equity.
Receivables, payables and other monetary items
denominated in foreign currency which have
not been settled at the balance sheet date are
measured at the closing rate. Any differences
between the exchange rates at the balance
sheet date and the rates at the dates when the
receivables or the payables arose or at which
they were recognised in the latest fi nancial
statements are recognised in the income state-
ment.
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 trans-
lated 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 in-
come statements from average exchange rates
to the exchange rates on the balance sheet date
are recognised directly in equity.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative fi nancial instruments are initially
recognised in the balance sheet at cost and are
subsequently remeasured at their fair values.
Positive and negative fair values of derivative
fi nancial instruments are included in other
receivables and other payables, respectively.
Changes in fair values of derivative fi nancial in-
struments 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 fi nancial
instruments that are meant to hedge future as-
sets and liabilities are recognised in receivables
or payables as well as in equity. If the future
transaction results in the recognition of assets
or liabilities, amounts recognised in equity are
transferred from equity and recognised in the
cost of the asset or the liability, respectively. If the
future transaction results in income or expenses,
amounts recognised in equity are transferred to
the income statement in the period in which the
hedged item affects the income statement.
INCOME STATEMENT
Revenue
The Company’s revenue stems from the sale of
goods for resale in the textile industry. Revenue
is recognised when control of the individually
identifi able 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 identifi able performance
obligations, which are recognised and mea-
sured separately at fair value. Although sales
agreements for the sale of goods for resale often
set out multiple performance obligations, such
obligations are treated as a single performance
obligation owing to their concurrent delivery.
If a sales agreement contains multiple 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 val-
ue 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.
Notes to the parent company fi nancial statements
DK Company 67 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
The part of total consideration that is variable,
for example in the form of discounts, bonus
payments, etc., is only recognised in revenue
when it is reasonably certain that there will be
no reversal thereof in subsequent periods. This
also applies to the goods that are expected to be
returned by fulfi lling the Company’s return obli-
gations based on historical experience on actual
return percentages and product mix. Customers
are typically entitled to return online purchases
within two weeks, but when returning Christmas
presents purchased between 1 November and 23
December, they have 14-90 days.
COST OF GOODS FOR RESALE
Cost of goods for resale include expenses
incurred to generate revenue for the year. Cost
of goods for resale are recognised in line with
revenue. Change in inventories for the year is in-
cluded 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
Company’s employees.
DEPRECIATION, AMORTISATION AND
IMPAIRMENT LOSSES ON INTANGIBLE AS
SETS AS WELL AS PROPERTY, PLANT AND
EQUIPMENT
Depreciation, amortisation and impairment
losses on property, plant and equipment and
intangible assets include depreciation of prop-
erty, 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 OPERAT
ING EXPENSES
Other operating income and expenses comprise
income and expenses of a secondary nature to
the activities of the Company, including gains
or losses from current sale and replacement of
intangible assets and property, plant and equip-
ment. Gains or losses from the disposal of intan-
gible 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 compen-
sation, once the Company has obtained fi nal
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 PROFITLOSS AFTER TAX IN
GROUP ENTERPRISES
According to the equity method, a proportion
of profi t or loss after tax in the underlying
enterprises is to be recognised in the income
statement. Shares of profi t or loss after tax in
subsidiaries and associates are presented in the
income statement as separate line items.
Full elimination of intra-group profi t/loss is
made for investments in subsidiaries. For
investments in associates, only a proportionate
elimination of intra-group profi t/loss is made.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses comprise
interest income and expenses, the interest
element of fi nance lease payments, realised and
unrealised capital gains and losses in respect
of securities, debt and transactions in foreign
currencies, amortisation of fi nancial 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 fi nancial year.
TAX ON PROFITLOSS FOR THE YEAR
The parent is jointly taxed with its Danish subsid-
iaries and the ultimate Danish parent compa-
ny, 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 profi t for the
year is recognised in the income statement,
whereas the tax attributable to equity transac-
tions 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. Emphasis is placed on the Company’s
brands being well incorporated in the market
and providing satisfactory earnings. Goodwill
is written down to the lower of the recoverable
amount or carrying amount. However, goodwill
for agencies with a contractual term of 1 to 3
years is amortised over this period.
PROPERTY, PLANT AND EQUIPMENT
Leasehold improvements and other fi xtures and
fi ttings, 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 improvement 2 - 10 years
Other fi xtures and fi ttings,
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.
Notes to the parent company fi nancial statements
DK Company 68 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
If the period of depreciation or the residual
value changes, the effect on depreciation is
recognised prospectively as a change in the
accounting estimate.
Gains or losses from the disposal of property,
plant and equipment are calculated as the
difference between the selling price less selling
costs and the carrying amount at the time of
disposal. Profi t or losses are recognised in the in-
come statement under other operating income
and other operating expenses, respectively.
LEASES
The Company has chosen IAS 17 as interpre-
tation for the classifi cation and recognition of
leases.
Leases in respect of assets in terms of which
the Company assumes all substantial risks and
rewards of ownership (fi nance 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 bor-
rowing rate is applied as the discount rate. After
that, assets acquired under fi nance leases are
treated in the same way as the other assets of
the Company.
The capitalised lease obligation is recognised in
the balance sheet under debt, and the interest
element of the lease payment is charged over
the lease term to the income statement under
fi nance costs. After initial recognition, lease obli-
gations are measured at amortised cost.
All other leases are considered operating leases.
Payments made under operating leases and
other rental agreements are recognised in the
income statement over the lease term. The
Company’s total liability relating to operating
leases and rental agreements is disclosed under
contingent assets and liabilities, etc.
OTHER NONCURRENT 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 measure-
ment 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 fi nancial statements from
the date of acquisition or establishment. Enter-
prises sold or wound up are recognised until the
date of disposal. Comparative fi gures are not
restated for newly acquired, sold or wound-up
enterprises.
The date of acquisition is the date when the
Company obtains actual control of the entity
acquired.
Acquisitions of new group enterprises are
accounted for using the purchase method
under which the identifi ed assets and liabilities
of the newly acquired enterprises acquired are
measured at fair value at the date of acquisition.
Identifi able 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 identifi able assets, liabilities
and contingent liabilities acquired are rec-
ognised under investments in group enterprises.
The difference is amortised systematically in the
income statement according to an individual
estimation of the useful life determined on the
basis of 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 profi t or loss
after tax of group enterprises in the year of in-
currence. In contrast to the accounting policies
applied in the Consolidated Financial State-
ments, 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 identifi cation 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 subsequent-
ly turns out that the identifi cation or measure-
ment 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 profi t or loss after
tax deducting or adding unrealised intra-group
profi ts and losses.
Dividends received are deducted from the car-
rying amount. Investments in group enterprises
that are measured at equity value are subject
to impairment tests in case of indication of
impairment.
On divestment of group enterprises in which
control is no longer maintained, profi ts 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 fi nancial income
and expenses, net. If the Company continues to
hold investments in the divested group enter-
prise, 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 NONCURRENT ASSETS
The carrying amounts of intangible assets and
property, plant and equipment as well as invest-
ments in group enterprises are assessed annual-
ly 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.
Notes to the parent company fi nancial statements
DK Company 69 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
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 fl ows from the use of the as-
set or asset group and expected net cash fl ows
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 interpreta-
tion for the write-down of fi nancial 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 investments or changes in accounting esti-
mates.
This reserve cannot be recognised at a negative
amount.
EQUITY DIVIDEND
Dividend expected to be paid for the year is
disclosed as a separate equity item. Proposed
dividend is recognised as a liability when a reso-
lution 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 tempo-
rary differences between the carrying amount
and the tax base of assets and liabilities. Howev-
er, no deferred tax is recognised on temporary
differences relating to goodwill not deductible
for tax purposes, or other items where tempo-
rary differences – except in the case of busi-
ness acquisitions – have arisen at the date of
acquisition and affect neither the net profi t 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 intend-
ed 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 unre-
alised 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 ex-
pected 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 state-
ment as fi nancial expenses over the loan term.
Other payables are measured at net realisable
value.
CASH FLOW STATEMENT
According to section 86(4) of the Danish Finan-
cial Statements Act, no cash fl ow statement has
been prepared for the parent as such statement
is included in the cash fl ow statement for the
Group.
Notes to the parent company fi nancial statements
DK Company 70 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes to the parent company fi nancial statements
DK Company 71 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
2. REVENUE 2023 2022
By geography
Denmark 239,678 179,892
Norway 45,216 46,753
Germany 87,221 137,435
Sweden 52,346 73,180
The UK 40,905 47,337
Benelux 38,680 65,746
Canada 30,136 23,004
France 18,889 18,592
Other markets in Europe 109,160 73,263
Other markets outside Europe 12,794 12,923
675,025 678,125
3. OTHER OPERATING INCOME 2023 2022
Gain on sale of activities 160 158
COVID-19 compensation 0 3,001
Administration fee 120,421 85,050
120,581 88,209
4. STAFF COSTS 2023 2022
Wages and salaries 173,563 151,944
Pensions 12,813 10,878
Other social security expenses 2,535 2,499
188,911 165,321
Including remuneration to the Board of Directors 675 475
Including remuneration to the Executive Board 6,693 6,687
The above amounts include the value of employee bene ts.
Average number of employees 333 294
5. OTHER OPERATING COSTS 2023 2022
Loss on disposal of intangible assets and property, plant and equipment 200 0
200 0
6. FINANCIAL INCOME 2023 2022
Interest income from group enterprises 22,577 9,881
Other interest income 288 183
Foreign exchange gains 34 1,063
22,899 11,127
7. FINANCIAL EXPENSES 2023 2022
Interest expenses related to group enterprises 12,394 5,077
Other interest expenses 2,726 755
Foreign exchange losses 5,147 1,299
20,267 7,131
8. TAX ON PROFIT/LOSS FOR THE YEAR 2023 2022
Current tax for the year 17,057 19,264
Change in deferred tax for the year 3,248 -69
Adjustment of tax relating to previous years 0 11
20,305 19,206
Amounts in DKK thousands
Notes to the parent company fi nancial statements
DK Company 72 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
9. INTANGIBLE ASSETS
Goodwill
Cost at 1 January 2023 89,090
Disposals at cost -276
Cost at 31 December 2023 88,814
Amortisation and impairment losses at 1 January 2023 86,570
Amortisation for the year 840
Reversal of assets sold -276
87,134
Carrying amount at 31 December 2023 1,680
10. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Leasehold
improvements
Other fi xtures
and fi ttings,
tools and
equipment
Cost at 1 January 2023 11,500 51,513 42,256
Additions at cost 900 12,839 99,130
Disposals at cost 0 -89 -1,137
Cost at 31 December 2023 12,400 64,263 140,249
Depreciation and impairment losses at 1 January 2023 500 13,838 35,696
Depreciation for the year 473 4,596 3,808
Reversal of assets sold 0 -89 -1,130
Depreciation and impairment losses at 31 December 2023 973 18,345 38,374
Carrying amount at 31 December 2023 11,427 45,918 101,875
Carrying amount of leased assets 89,351
The leased assets relate primarily to inventory machines. The leased assets are provided as security for lease liabilities.
11. INVESTMENTS IN SUBSIDIARIES
Investments in
group
enterprises
Cost at 1 January 2023 332,432
Cost at 31 December 2023 332,432
Value adjustments at 1 January 2023 421,825
Exchange adjustments from translation of foreign entities -1,697
Share of pro t/loss for the year 277,922
Change in equity in group enterprises 7,684
Distribution from group enterprises -236,900
Value adjustments at 31 December 2023 468,834
Transferred to provisions 5,295
Carrying amount at 31 December 2023 806,561
DK Company A/S' share
Group enterprises are specifi ed as follows: Profi t/the year Equity
DKC Norway AS, Tønsberg, Norway, 100% 3,517 7,033
Miss O ApS, Ikast-Brande, Denmark, 100% -40 -509
DK Company Vejle A/S, Vejle, Denmark, 86,9% 86,619 267,052
DK Company Retail A/S, Ikast-Brande, Denmark, 100% 2,810 25,259
DK Company Shanghai Ltd., Shanghai, China, 100% -1,780 -4,786
DK Company Cph A/S, Copenhagen, Denmark, 100% 169,396 351,633
DK Company Canada Inc., Quebec, Canada, 100% 5,059 40,831
DK Company Online A/S, Ikast-Brande, Denmark, 100% 13,269 94,620
DK Company Con A/S, Ikast-Brande, Denmark, 100% 1,635 9,405
DK Company France Sarl, Paris, France, 100% 583 2,902
DK Company Germany Gmbh, Hamburg, Germany, 100% 357 607
Companys Retail AG, Baar, Switzerland, 100% 2,356 9,332
283,781 803,379
Adjustments to intercompany pro ts -4,807 -12,032
Tax on adjustments to intercompany pro ts 971 4,765
Adjustments for acquisitions in 2014 -363 1,393
Adjustments for acquisitions in 2015 -1,565 3,666
Adjustments for acquisitions in 2017 -95 95
Transferred to provisions 0 5,295
277,922 806,561
All subsidiaries are regarded separate entities.
Amounts in DKK thousands
Notes to the parent company fi nancial statements
DK Company 73 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
12. OTHER RECEIVABLES
Deposits
Cost at 1 January 2023 1,497
Additions at cost 0
Disposals at cost -84
Cost at 31 December 2023 1,413
Carrying amount at 31 December 2023 1,413
13. DEFERRED TAX 2023 2022
Deferred tax at 1 January 3,107 -1,386
Deferred tax for the year recognised in pro t/loss for the year -3,248 69
Deferred tax for the year recognised in equity -135 4,424
Deferred tax at 31 December -276 3,107
Deferred tax is recognised as follows in the balance sheet: 2023 2022
Deferred tax assets 0 3,107
Deferred tax liabilities -276 0
-276 3,107
Deferred tax relates to: 2023 2022
Intangible assets -247 -24
Property, plant and equipment -815 2,209
Other liabilities 786 922
-276 3,107
Provision for deferred tax is made at the tax rate at which temporary diff erences are expected realised on the basis of the
adopted corporation tax rate of 22%.
14. SHARE CAPITAL 2023 2022
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 nancial year.
15. DEBT 2023 2022
Credit institutions 138,305 11,070
138,305 11,070
The debt is expected to fall due for payment as follows:
0-1 year 77,092 10,960
1-5 year 61,213 110
138,305 11,070
16. SECURITY
The Company has entered into agreements (letters of credit) for the delivery of goods of DKK 14.8 million compared to DKK
16.5 million in 2022.
Investments in all signi cant group enterprises are provided as security for balances with credit institutions
Amounts in DKK thousands
Notes to the parent company fi nancial statements
DK Company 74 / 82Annual Report 2023
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
17. CONTINGENT ASSETS AND LIABILITIES
Other contingent assets
The company has no contingent assets.
Contingent liabilities
The Company has provided security to cover future lease obligations. Total security constitutes DKK 4.3 million compared to
DKK 23 million in 2022.
In connection with its previous banking activities, the Company has been involved in legal proceedings concerning the profes-
sional 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. TThe total liability amounted to DKK
77.1 million at 31 December (DKK 11 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 2023, the total amount
outstanding in joint corporation tax is DKK 16.2 million compared to the DKK 19.3 million at 31 December.
Operating lease liabilities comprise the following:
2023 2022
Shop leases and buildings:
0-1 year 17,065 16,238
1-5 year 42,750 46,344
Over 5 years 13,712 22,853
73,527 85,435
Leased operating equipment, etc.:
0-1 year 2,915 2,894
1-5 year 3,478 2,846
6,393 5,740
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 -9.9 million (a capital loss of DKK (-6.4 million), of which DKK -3.6 million (DKK -4.2 million) is recognised
directly in equity, while DKK -6.3 million (DKK -2.2 million) is recognised in the income statement.
2023 Residual maturity
Value of
currency Fair value
Currency risks:
USD 0-15 months 64,250 -1,941
SEK 0-12 months -252,000 -3,554
NOK 0-6 months -135,000 -1,986
GBP 0-9 months -5,200 203
CHF 0-24 months -14,780 -2,924
CAD 0-7 months -6,900 298
-9,904
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 0-15 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
Amounts in DKK thousands
Notes to the parent company fi nancial statements
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17. RELATED PARTIES
Related parties with control
Related parties with control over DK Company A/S:
Name Place of registered offi ce 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 nancial 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.
18. SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially aff ect the assessment of the Annual Report.
19. DISTRIBUTION OF PROFIT 2023 2022
Proposal for distribution of net profi t
Reserve for net revaluation under the equity method 41.022 43.963
Retained earnings 107.554 227.410
Proposed dividend for the year 200.000 186.900
348.576 458.273
Amounts in DKK thousands
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COMPANY DK Company A/S
Telephone: +45 96 600 700
CVR no: 24 4 3 11 18
Founded: 25 November 1958
Registered offi ce: 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
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
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CVR No 33 77 12 31
