1.1
Basis of reporting
The Consolidated Financial Statements of Scandinavian Tobacco Group have been prepared in accordance with IFRS Accounting Standards, as adopted by the European Union (EU) and additional Danish disclosure requirements for listed companies and further requirements in the Danish Financial Statements Act.
Recognition and measurement
The Consolidated Financial Statements have been pre-pared under the historical cost basis except when IFRS explicitly require the use of fair value. Danish kroner is the Group\u2019s presentation currency and the functional currency of the Parent Company. The principal accounting policies set out below have been applied consistently in the preparation of the Consolidated Financial Statements for all the years presented.
Principal accounting policies
The Group\u2019s accounting policies are described in relation to the individual notes to the Consolidated Financial Statements. Considering all the accounting policies applied in the preparation of the Consolidated Financial Statements, Executive Management regards the following as the most material accounting policy information for the recognition and measurement of reported amounts as well as relevant to an under-standing of the Consolidated Financial Statements:
Gross profit (net sales and cost of goods sold) (note\u00a02.1)
Income and deferred income taxes (note 2.6)
Intangible assets and property, plant and equipment including impairment (note 3.1and 3.2)
Inventories (note 3.4).
Changes in accounting policies and disclosures
Impact of new accounting standards
Based on an assessment of new or amended and revised accounting standards and interpretations (\u2018IFRS\u2019) issued
by the International Accounting Standards Board (IASB) and IFRSs endorsed by the European Union effective on or after 1 january 2025, it has been assessed that the application of these new IFRSs has not had a material impact on the Consolidated Financial Statements in 2025, and the Group does not anticipate any significant impact on future periods from the adoption of these new IFRSs. The Group has adopted all new, amended and revised standards and interpretations.
New or amended IFRSs that have been issued but have not yet come into effect and have not been early adopted
The IASB has issued a number of new or amended and revised accounting standards and interpretations that have not yet come into effect. It has been assessed that the application of these new IFRSs will not have a material impact on future reporting periods, except from IFRS 18 described below.
The IASB has issued IFRS 18, Presentation and Disclosure in Financial Statements. This new standard replaces the current IAS 1, Presentation of Financial Statements, and it implements a set of new requirements for presentation and disclosures in the financial statements. The new standard requires the income statement to be structured into five categories, while also introducing two new subtotals. Furthermore, the new term \u201cManagement Performance Measures (MPM)\u201d is introduced, which must be disclosed in the notes of the financial statements. The new requirements for presentation and disclosures are applicable for all financial statements, including consolidated financial statements, separate financial statements and interim financial statements.
The new IFRS 18 has not been endorsed by the European Union yet but is expected to come into effect for financial statements starting on or after 1 January 2027.
IFRS 18 will revise the presentation of the Group\u2019s Consolidated Income Statement mainly due to the new required subtotal \u201coperating profit\u201d which will include depreciation, amortisation, special items as well as part of the current financial income and expenses. Furthermore, additional new line items will be introduced for financial income and expenses related to the investing and financing categories. However, the reported net result will remain unaffected.
Subtotals and alternative performance measures
In the Annual Report, the Group presents certain financial performance measures such as subtotals and key ratios which are not required or defined under IFRS. It is considered that these alternative measures provide relevant supplementary information for the stakeholders of the Group. Significant income and expenses which, by their nature, are assessed not to be related to the Group\u2019s core performance are presented in the income statement in a separate line item called \u2018Special items incl. Impairment, net costs\u2019 in order to distinguish these items from other income statement items. Please refer to note 2.5for more details on Special items.
The income statement includes the subtotals \u201cGross profit before special items\u201d, \u201cEarnings before interest, tax, depreciation, amortisation and special items (EBITDA before special items)\u201d, \u201cEarnings before interest, tax, amortisation and special items (EBITA before special items)\u201d and \u201cEarnings before interest, tax and special items (EBIT before special items)\u201d as these are assessed to provide a more transparent and comparable view of the Group\u2019s recurring earnings. In note 2.5it is disclosed how the line items in the income statement would have been affected if \u201cSpecial items\u201d had not been presented in a separate line item.
For definitions of key ratios please refer to \u201cfive-year summary\u201d and note 5.8.
Basis of consolidation
Subsidiaries are all entities (including structured entities) which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associated companies. At consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises.
The Parent Company\u2019s investments in the consolidated subsidiaries are set off against the Parent Company\u2019s
share of the net asset value of subsidiaries stated at the time of consolidation.
On the acquisition of subsidiaries, the difference between cost and net asset value of the enterprise acquired is determined at the date of acquisition after the individual assets and liabilities have been adjusted to fair value (the acquisition method). Transaction costs relating to the acquisition of subsidiaries are not included in the value of the acquired assets. All acquisition-related costs are expensed in the period in which they incur. Any remaining positive differences are recognised as goodwill in intangible assets in the balance sheet. Goodwill is not amortised, but instead tested for impairment on an annual basis and when there is an indication of impairment.
Positive and negative differences from enterprises
acquired may, due to changes to the recognition and
measurement of net assets, be adjusted until one year
from the acquisition date. These adjustments are also
reflected in the value of goodwill.
Translation policies
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement.
Income statements of foreign subsidiaries and associated companies are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising from the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.
Other external costs
Other external costs comprise expenses for premises, sales, marketing, distribution and bad debt allowance as well as office expenses, fee to statutory auditor, etc.
Other income
Other income consists mainly of items of a secondary nature to the core activities, including gains on the sale of intangible assets, property, plant and equipment.
Equity
Proposed dividend is recognised as a liability at the time of approval by the general meeting. Dividend which is expected to be distributed for the year is disclosed in note 4.5.
The reserve for currency translation in the Consolidated Financial Statements comprises foreign exchange differences arising from translation of financial statements of foreign enterprises from their functional currencies to the presentation currency of the Group (Danish kroner).
When there is full or partial disposal of the net investment, the foreign exchange adjustments are recognised in the income statement.
Cost of acquisition and proceeds from sale of treasury shares are recognised in reserve for treasury shares. Dividends received in relation to treasury shares are recognised in retained earnings.
Cash flow statement
The cash flow statement shows the Group\u2019s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group\u2019s cash and cash equivalents at the beginning and end of the year.
Cash flow from operating activitiesis determined as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses and provisions. Working capital comprises current assets less
current liabilities excluding items included in cash and cash equivalents, prepaid tax, other provisions, lease liabilities and corporate tax liabilities.
Cash flow from investing activitiescomprises cash flows from addition and disposals of intangible assets, property, plant and equipment, fixed asset investments, acquisition of entities, as well as dividends from associated companies.
Cash flow from financing activitiescomprises cash flows from repayment of lease liabilities, other financing, the raising and repayment of debt as well as payments to and from shareholders.
Cash and cash equivalentscomprises \u2018cash at bank and in hand\u2019.
The cash flow statement cannot be derived directly from the Consolidated Financial Statements.
Reporting under ESEF regulation
According to the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) a single electronic reporting format for the Annual Reports of issuers with securities listed on the EU regulated markets has to be applied.
The single electronic reporting format combines a XHTML format with iXBRL tags, which makes the annual financial reports readable by both humans and machines, thus enhancing accessibility, analysis and comparability of the information included in the annual financial reports.
The Group\u2019s iXBRL tags have been prepared in accordance with the ESEF taxonomy, which is part of the ESEF regulation and developed based on the
IFRS taxonomy, published by the IFRS Foundation. Furthermore, iXBRL tags have been prepared according to additional Danish disclosure requirements.
The line items in the Consolidated Financial Statement have been tagged to elements in the ESEF taxonomy. For financial statement line items, that are not directly defined in the ESEF taxonomy, an extension to the taxonomy has been created. Extensions are anchored to elements in the ESEF taxonomy, except for extensions which are subtotals.
The Annual Report submitted to the Danish Financial Supervisory Authority (the officially appointed mechanisms) consists of the XHTML document together with the technical files, all included in the ZIP-file named; 5299003KG4JS99TRML67-2025-12-31-en.zip.
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
Accounting policies
Staff costs comprise wages and salaries as well as payroll
expenses other than production wages, and staff costs capitalised on assets.
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
Accounting policies
Special items are used in connection with the presentation of profit or loss for the year to distinguish consolidated EBITDA and EBIT from special items, which by their nature are not related to the Group\u2019s core performance.
Accounting policies
Income taxes
The tax expense for the year comprises current and deferred tax including adjustments to previous years and changes in liability for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income.
Any changes in deferred tax due to changes in tax rates are recognised in the income statement or in other compre-hensive income depending on the original recognition.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year and prior year adjust-ments. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the
balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss car-ryforwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.
Accounting policies
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
Accounting policies
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. Based on the contract the right-of-use asset and the lease liability are recognised at commencement of the lease. The initial measurement of the right-of-use asset is at cost and comprises the initial value of the lease liability and lease payments made at or before the commencement date. The right-of-use assets are depreciated on a straight-line basis over the shorter period of the lease term or the useful life of the underlying asset.
The lease liabilities are initially measured at the present value of lease payments that are not paid at the com-mencement date. Lease payments include fixed payments and variable payments that depend on an index such as an inflation index as well as lease payments from an extension option that the Group considers reasonably certain to be exercised.
Extension and termination options exist for a number of leases, particular for offices and warehouses.
In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Lease terms can be subject to changes following the occurrence of significant events or circumstances.
The Group applies the recognition exemption to short-term leases and low-value leases.
Impairment of right-of-use assets
The carrying amounts are reviewed on an annual basis to determine whether there is any indication of impair-ment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the right-of-use asset is written down to its lower recoverable amount.
Accounting policies
Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected sales prices.
The cost of goods for resale, raw materials and consumables equals landed cost.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect produc-tion costs comprise the cost of labour, maintenance and depreciation of the machinery, factory buildings, equipment and right-of-use assets used in the manufacturing process as well as costs of factory administration and management.
Accounting policies
Trade receivables are measured in the balance sheet at amortised cost less provisions for expected credit losses. Expected credit losses are determined by using the simplified expected credit loss model (ECL), which has the approach of assessing the lifetime expected credit loss.
The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both
historical as well as forward-looking information. The estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
3.6
PREPAYMENTS
Accounting policies
Prepayments are measured at cost and comprise prepaid costs concerning licences, insurance premiums, subscrip-tions, etc.
Accounting policies
Provisions are recognised when \u2013 in consequence of an event occurred before or on the balance sheet date \u2013 the Group has a legal or constructive obligation and it is prob-able that economic benefits must be given up to settle the obligation. Provisions are measured at the present value of the anticipated expenditure for settlement of the legal or constructive obligation based on Management\u2019s best esti-mate. If considered material, the anticipated future expen-diture is discounted, using a pretax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.
Accounting policies
Under a defined benefit plan, the amount of retirement benefit that will be received by an employee is defined with respect to period of service and final salary. The amount recognised in the balance sheet is the difference between the present value of the defined benefit obliga-tion at the balance sheet date and the fair value of the scheme assets.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obliga-tion is determined by discounting the estimated future cash outflows.
The service cost of providing retirement benefits to employees during the year is charged to operating profit. The costs for the year for defined benefit plans are deter-mined using the projected unit credit method.
Past service costs are recognised immediately in the income statement.
All actuarial gains and losses are recognised immediately in full in the statement of other comprehensive income for the period in which they arise.
Pension assets are only recognised to the extent that the Group is able to derive future economic benefits such as refunds from the plan or reductions of future contribu-tions. The Group\u2019s most significant defined benefit pension plans are financed by payments from Group companies and by employees to funds which are independent of the\u00a0Group.
Contributions for defined contribution plans are reported as expenses in the income statement when they occur.
Post-employment employee benefits
The Group has defined benefit pension plans in a number of subsidiaries, through which the employees are entitled to post-employment benefits based on their pensionable income and the number of years of service.
Provisions for post-employment defined benefit plans are reported based on actuarial valuations. The Group recognises the full amount of actuarial gains and losses in other comprehensive income, i.e. the net pension liability in the balance sheet includes all cumulative actuarial gains and losses.
The Group does not plan for any new defined benefit plans.
Accounting policies
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently at amortised cost using the effective interest method.
Any difference between the proceeds initially received and the nominal value is recognised in financial costs over the term of the loan.
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
Accounting policies
Investments in associated companies are recognised and measured under the equity method.
The item \u2018Investments in associated companies\u2019 in the balance sheet includes the proportionate ownership share of the net asset value of the enterprises with deduction or addition of unrealised intercompany profits or losses and with addition of any remaining value of positive differ-ences (goodwill) and deduction of any remaining value of
negative differences (negative goodwill) calculated on the basis of the fair values of identifiable net assets at the time of acquisition.
The item \u2018Share of profit of associated companies, net of tax\u2019 in the income statement includes the proportionate share of the profit after tax for the year regarding the associated companies.
Accounting policies
Financial income and costs comprise interests, realised and unrealised exchange adjustments, hedging costs, interest part of pension costs, lease interest costs and other financial income and costs.
Accounting policies
Working capital is defined as current assets less current liabilities. It measures how much in liquid assets the Group has available for the business.
Accounting policies
Business combinations are accounted for using the acqui-sition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measued at acquisition date fair value.
Acquisition-related costs are expensed as incurred and, if material, included in \u201cSpecial items\u201d in the Income statement.
Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. If uncertainties exist at the acquisition date regarding identification or measurement of identifiable assets, liabilities and contingent liabilities or regarding the consideration transferred, initial recognition will take place on the basis of provisionally determined fair values. If identifiable assets, liabilities and contingent liabilities are subsequently determined to have a different fair value at the acquisition date from that first assumed, goodwill is adjusted up until 12 months after the acquisition date. Thereafter no adjustments are made to goodwill, and changes in estimates of contingent consideration relating to business combinations are recognised under \u201cOther income and costs\u201d.
Goodwill is initially measured at cost. If the fair value of the net assets acquired is in excess of the aggregate consid-eration transferred, the Group reassesses whether it has correctly identified all assets acquired and all liabilities assumed, and the Group reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consid-eration transferred, the gain is recognised in the income statement. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units that are expected to benefit from the combination.
Gross margin
before special
Items
EBIT margin
Cash
Conversion
Net interest-
Bearing Debt
CFFO before interest and tax, excluding payment of special items \u2013 Maintenance
CAPEX
Gross profit before
special items
Net sales
EBIT
Net sales
Adjusted operating
profit (EBITA before
special items)
Interest-bearing
liabilites and
pensions less cash
equivalents and
interest-bearing
receivables
Basic earnings
per share
Leverage ratio
Dividend per share
EBITDA margin
Before special
Items
Tax
Percentage
Net profit
NIBD
Average number of
shares outstanding
EBITDA before special items
Proposed and
interim dividend
Number of shares issued
EBITDA before
special items
Net sales
Tax
Profit before tax
Equity
Ratio
ROIC
ROIC ex.
Goodwill
Adjusted
earnings
per share
Net profit adjusted for special items and fair value adjustments and currency gains/losses, net of tax
Equity
Total assets
EBIT
12 months average
invested capital*
EBIT
12 months average
invested capital* ex. goodwill
Average number of
shares outstanding
* Average invested capital comprises intangible assets, property, plant and equipment, right-of-use assets, inventories, receivables (excluding receivables recognised at fair value) and prepayments less trade creditors, provisions and other liabilities (excluding other liabilities recognised at fair value).
Diluted
earnings
per share
Pay-out
Ratio
Organic net sales growth
is defined as Growth in net sales before special items and Impact from currencies, acquisitions and Changes in accounting policies
Organic EBITDA growth
is defined as growth in EBITDA before special items and impact from currencies, acquisitions and changes in accounting policies
Net profit
Average number of shares outstanding + dilutive effect of the outstanding performance stock units (PSUs)
Dividend per share
Adjusted earnings per share
5.8
Explanation of financial ratios
9
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Basis of reporting
The Consolidated Financial Statements of Scandinavian Tobacco Group have been prepared in accordance with IFRS Accounting Standards, as adopted by the European Union (EU) and additional Danish disclosure requirements for listed companies and further requirements in the Danish Financial Statements Act.
Recognition and measurement
The Consolidated Financial Statements have been pre-pared under the historical cost basis except when IFRS explicitly require the use of fair value. Danish kroner is the Group\u2019s presentation currency and the functional currency of the Parent Company. The principal accounting policies set out below have been applied consistently in the preparation of the Consolidated Financial Statements for all the years presented.
Principal accounting policies
The Group\u2019s accounting policies are described in relation to the individual notes to the Consolidated Financial Statements. Considering all the accounting policies applied in the preparation of the Consolidated Financial Statements, Executive Management regards the following as the most material accounting policy information for the recognition and measurement of reported amounts as well as relevant to an under-standing of the Consolidated Financial Statements:
Gross profit (net sales and cost of goods sold) (note\u00a02.1)
Income and deferred income taxes (note 2.6)
Intangible assets and property, plant and equipment including impairment (note 3.1and 3.2)
Inventories (note 3.4).
Changes in accounting policies and disclosures
Impact of new accounting standards
Based on an assessment of new or amended and revised accounting standards and interpretations (\u2018IFRS\u2019) issued
by the International Accounting Standards Board (IASB) and IFRSs endorsed by the European Union effective on or after 1 january 2025, it has been assessed that the application of these new IFRSs has not had a material impact on the Consolidated Financial Statements in 2025, and the Group does not anticipate any significant impact on future periods from the adoption of these new IFRSs. The Group has adopted all new, amended and revised standards and interpretations.
New or amended IFRSs that have been issued but have not yet come into effect and have not been early adopted
The IASB has issued a number of new or amended and revised accounting standards and interpretations that have not yet come into effect. It has been assessed that the application of these new IFRSs will not have a material impact on future reporting periods, except from IFRS 18 described below.
The IASB has issued IFRS 18, Presentation and Disclosure in Financial Statements. This new standard replaces the current IAS 1, Presentation of Financial Statements, and it implements a set of new requirements for presentation and disclosures in the financial statements. The new standard requires the income statement to be structured into five categories, while also introducing two new subtotals. Furthermore, the new term \u201cManagement Performance Measures (MPM)\u201d is introduced, which must be disclosed in the notes of the financial statements. The new requirements for presentation and disclosures are applicable for all financial statements, including consolidated financial statements, separate financial statements and interim financial statements.
The new IFRS 18 has not been endorsed by the European Union yet but is expected to come into effect for financial statements starting on or after 1 January 2027.
IFRS 18 will revise the presentation of the Group\u2019s Consolidated Income Statement mainly due to the new required subtotal \u201coperating profit\u201d which will include depreciation, amortisation, special items as well as part of the current financial income and expenses. Furthermore, additional new line items will be introduced for financial income and expenses related to the investing and financing categories. However, the reported net result will remain unaffected.
Subtotals and alternative performance measures
In the Annual Report, the Group presents certain financial performance measures such as subtotals and key ratios which are not required or defined under IFRS. It is considered that these alternative measures provide relevant supplementary information for the stakeholders of the Group. Significant income and expenses which, by their nature, are assessed not to be related to the Group\u2019s core performance are presented in the income statement in a separate line item called \u2018Special items incl. Impairment, net costs\u2019 in order to distinguish these items from other income statement items. Please refer to note 2.5for more details on Special items.
The income statement includes the subtotals \u201cGross profit before special items\u201d, \u201cEarnings before interest, tax, depreciation, amortisation and special items (EBITDA before special items)\u201d, \u201cEarnings before interest, tax, amortisation and special items (EBITA before special items)\u201d and \u201cEarnings before interest, tax and special items (EBIT before special items)\u201d as these are assessed to provide a more transparent and comparable view of the Group\u2019s recurring earnings. In note 2.5it is disclosed how the line items in the income statement would have been affected if \u201cSpecial items\u201d had not been presented in a separate line item.
For definitions of key ratios please refer to \u201cfive-year summary\u201d and note 5.8.
Basis of consolidation
Subsidiaries are all entities (including structured entities) which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associated companies. At consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises.
The Parent Company\u2019s investments in the consolidated subsidiaries are set off against the Parent Company\u2019s
share of the net asset value of subsidiaries stated at the time of consolidation.
On the acquisition of subsidiaries, the difference between cost and net asset value of the enterprise acquired is determined at the date of acquisition after the individual assets and liabilities have been adjusted to fair value (the acquisition method). Transaction costs relating to the acquisition of subsidiaries are not included in the value of the acquired assets. All acquisition-related costs are expensed in the period in which they incur. Any remaining positive differences are recognised as goodwill in intangible assets in the balance sheet. Goodwill is not amortised, but instead tested for impairment on an annual basis and when there is an indication of impairment.
Positive and negative differences from enterprises
acquired may, due to changes to the recognition and
measurement of net assets, be adjusted until one year
from the acquisition date. These adjustments are also
reflected in the value of goodwill.
Translation policies
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement.
Income statements of foreign subsidiaries and associated companies are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising from the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.
Other external costs
Other external costs comprise expenses for premises, sales, marketing, distribution and bad debt allowance as well as office expenses, fee to statutory auditor, etc.
Other income
Other income consists mainly of items of a secondary nature to the core activities, including gains on the sale of intangible assets, property, plant and equipment.
Equity
Proposed dividend is recognised as a liability at the time of approval by the general meeting. Dividend which is expected to be distributed for the year is disclosed in note 4.5.
The reserve for currency translation in the Consolidated Financial Statements comprises foreign exchange differences arising from translation of financial statements of foreign enterprises from their functional currencies to the presentation currency of the Group (Danish kroner).
When there is full or partial disposal of the net investment, the foreign exchange adjustments are recognised in the income statement.
Cost of acquisition and proceeds from sale of treasury shares are recognised in reserve for treasury shares. Dividends received in relation to treasury shares are recognised in retained earnings.
Cash flow statement
The cash flow statement shows the Group\u2019s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group\u2019s cash and cash equivalents at the beginning and end of the year.
Cash flow from operating activitiesis determined as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses and provisions. Working capital comprises current assets less
current liabilities excluding items included in cash and cash equivalents, prepaid tax, other provisions, lease liabilities and corporate tax liabilities.
Cash flow from investing activitiescomprises cash flows from addition and disposals of intangible assets, property, plant and equipment, fixed asset investments, acquisition of entities, as well as dividends from associated companies.
Cash flow from financing activitiescomprises cash flows from repayment of lease liabilities, other financing, the raising and repayment of debt as well as payments to and from shareholders.
Cash and cash equivalentscomprises \u2018cash at bank and in hand\u2019.
The cash flow statement cannot be derived directly from the Consolidated Financial Statements.
Reporting under ESEF regulation
According to the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) a single electronic reporting format for the Annual Reports of issuers with securities listed on the EU regulated markets has to be applied.
The single electronic reporting format combines a XHTML format with iXBRL tags, which makes the annual financial reports readable by both humans and machines, thus enhancing accessibility, analysis and comparability of the information included in the annual financial reports.
The Group\u2019s iXBRL tags have been prepared in accordance with the ESEF taxonomy, which is part of the ESEF regulation and developed based on the
IFRS taxonomy, published by the IFRS Foundation. Furthermore, iXBRL tags have been prepared according to additional Danish disclosure requirements.
The line items in the Consolidated Financial Statement have been tagged to elements in the ESEF taxonomy. For financial statement line items, that are not directly defined in the ESEF taxonomy, an extension to the taxonomy has been created. Extensions are anchored to elements in the ESEF taxonomy, except for extensions which are subtotals.
The Annual Report submitted to the Danish Financial Supervisory Authority (the officially appointed mechanisms) consists of the XHTML document together with the technical files, all included in the ZIP-file named; 5299003KG4JS99TRML67-2025-12-31-en.zip.
1.1
Basis of reporting
The Consolidated Financial Statements of Scandinavian Tobacco Group have been prepared in accordance with IFRS Accounting Standards, as adopted by the European Union (EU) and additional Danish disclosure requirements for listed companies and further requirements in the Danish Financial Statements Act.
Recognition and measurement
The Consolidated Financial Statements have been pre-pared under the historical cost basis except when IFRS explicitly require the use of fair value. Danish kroner is the Group\u2019s presentation currency and the functional currency of the Parent Company. The principal accounting policies set out below have been applied consistently in the preparation of the Consolidated Financial Statements for all the years presented.
Principal accounting policies
The Group\u2019s accounting policies are described in relation to the individual notes to the Consolidated Financial Statements. Considering all the accounting policies applied in the preparation of the Consolidated Financial Statements, Executive Management regards the following as the most material accounting policy information for the recognition and measurement of reported amounts as well as relevant to an under-standing of the Consolidated Financial Statements:
Gross profit (net sales and cost of goods sold) (note\u00a02.1)
Income and deferred income taxes (note 2.6)
Intangible assets and property, plant and equipment including impairment (note 3.1and 3.2)
Inventories (note 3.4).
Changes in accounting policies and disclosures
Impact of new accounting standards
Based on an assessment of new or amended and revised accounting standards and interpretations (\u2018IFRS\u2019) issued
by the International Accounting Standards Board (IASB) and IFRSs endorsed by the European Union effective on or after 1 january 2025, it has been assessed that the application of these new IFRSs has not had a material impact on the Consolidated Financial Statements in 2025, and the Group does not anticipate any significant impact on future periods from the adoption of these new IFRSs. The Group has adopted all new, amended and revised standards and interpretations.
New or amended IFRSs that have been issued but have not yet come into effect and have not been early adopted
The IASB has issued a number of new or amended and revised accounting standards and interpretations that have not yet come into effect. It has been assessed that the application of these new IFRSs will not have a material impact on future reporting periods, except from IFRS 18 described below.
The IASB has issued IFRS 18, Presentation and Disclosure in Financial Statements. This new standard replaces the current IAS 1, Presentation of Financial Statements, and it implements a set of new requirements for presentation and disclosures in the financial statements. The new standard requires the income statement to be structured into five categories, while also introducing two new subtotals. Furthermore, the new term \u201cManagement Performance Measures (MPM)\u201d is introduced, which must be disclosed in the notes of the financial statements. The new requirements for presentation and disclosures are applicable for all financial statements, including consolidated financial statements, separate financial statements and interim financial statements.
The new IFRS 18 has not been endorsed by the European Union yet but is expected to come into effect for financial statements starting on or after 1 January 2027.
IFRS 18 will revise the presentation of the Group\u2019s Consolidated Income Statement mainly due to the new required subtotal \u201coperating profit\u201d which will include depreciation, amortisation, special items as well as part of the current financial income and expenses. Furthermore, additional new line items will be introduced for financial income and expenses related to the investing and financing categories. However, the reported net result will remain unaffected.
Subtotals and alternative performance measures
In the Annual Report, the Group presents certain financial performance measures such as subtotals and key ratios which are not required or defined under IFRS. It is considered that these alternative measures provide relevant supplementary information for the stakeholders of the Group. Significant income and expenses which, by their nature, are assessed not to be related to the Group\u2019s core performance are presented in the income statement in a separate line item called \u2018Special items incl. Impairment, net costs\u2019 in order to distinguish these items from other income statement items. Please refer to note 2.5for more details on Special items.
The income statement includes the subtotals \u201cGross profit before special items\u201d, \u201cEarnings before interest, tax, depreciation, amortisation and special items (EBITDA before special items)\u201d, \u201cEarnings before interest, tax, amortisation and special items (EBITA before special items)\u201d and \u201cEarnings before interest, tax and special items (EBIT before special items)\u201d as these are assessed to provide a more transparent and comparable view of the Group\u2019s recurring earnings. In note 2.5it is disclosed how the line items in the income statement would have been affected if \u201cSpecial items\u201d had not been presented in a separate line item.
For definitions of key ratios please refer to \u201cfive-year summary\u201d and note 5.8.
Basis of consolidation
Subsidiaries are all entities (including structured entities) which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associated companies. At consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises.
The Parent Company\u2019s investments in the consolidated subsidiaries are set off against the Parent Company\u2019s
share of the net asset value of subsidiaries stated at the time of consolidation.
On the acquisition of subsidiaries, the difference between cost and net asset value of the enterprise acquired is determined at the date of acquisition after the individual assets and liabilities have been adjusted to fair value (the acquisition method). Transaction costs relating to the acquisition of subsidiaries are not included in the value of the acquired assets. All acquisition-related costs are expensed in the period in which they incur. Any remaining positive differences are recognised as goodwill in intangible assets in the balance sheet. Goodwill is not amortised, but instead tested for impairment on an annual basis and when there is an indication of impairment.
Positive and negative differences from enterprises
acquired may, due to changes to the recognition and
measurement of net assets, be adjusted until one year
from the acquisition date. These adjustments are also
reflected in the value of goodwill.
Translation policies
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement.
Income statements of foreign subsidiaries and associated companies are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising from the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.
Other external costs
Other external costs comprise expenses for premises, sales, marketing, distribution and bad debt allowance as well as office expenses, fee to statutory auditor, etc.
Other income
Other income consists mainly of items of a secondary nature to the core activities, including gains on the sale of intangible assets, property, plant and equipment.
Equity
Proposed dividend is recognised as a liability at the time of approval by the general meeting. Dividend which is expected to be distributed for the year is disclosed in note 4.5.
The reserve for currency translation in the Consolidated Financial Statements comprises foreign exchange differences arising from translation of financial statements of foreign enterprises from their functional currencies to the presentation currency of the Group (Danish kroner).
When there is full or partial disposal of the net investment, the foreign exchange adjustments are recognised in the income statement.
Cost of acquisition and proceeds from sale of treasury shares are recognised in reserve for treasury shares. Dividends received in relation to treasury shares are recognised in retained earnings.
Cash flow statement
The cash flow statement shows the Group\u2019s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group\u2019s cash and cash equivalents at the beginning and end of the year.
Cash flow from operating activitiesis determined as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses and provisions. Working capital comprises current assets less
current liabilities excluding items included in cash and cash equivalents, prepaid tax, other provisions, lease liabilities and corporate tax liabilities.
Cash flow from investing activitiescomprises cash flows from addition and disposals of intangible assets, property, plant and equipment, fixed asset investments, acquisition of entities, as well as dividends from associated companies.
Cash flow from financing activitiescomprises cash flows from repayment of lease liabilities, other financing, the raising and repayment of debt as well as payments to and from shareholders.
Cash and cash equivalentscomprises \u2018cash at bank and in hand\u2019.
The cash flow statement cannot be derived directly from the Consolidated Financial Statements.
Reporting under ESEF regulation
According to the Commission Delegated Regulation (EU) 2019/815 on the European Single Electronic Format (ESEF Regulation) a single electronic reporting format for the Annual Reports of issuers with securities listed on the EU regulated markets has to be applied.
The single electronic reporting format combines a XHTML format with iXBRL tags, which makes the annual financial reports readable by both humans and machines, thus enhancing accessibility, analysis and comparability of the information included in the annual financial reports.
The Group\u2019s iXBRL tags have been prepared in accordance with the ESEF taxonomy, which is part of the ESEF regulation and developed based on the
IFRS taxonomy, published by the IFRS Foundation. Furthermore, iXBRL tags have been prepared according to additional Danish disclosure requirements.
The line items in the Consolidated Financial Statement have been tagged to elements in the ESEF taxonomy. For financial statement line items, that are not directly defined in the ESEF taxonomy, an extension to the taxonomy has been created. Extensions are anchored to elements in the ESEF taxonomy, except for extensions which are subtotals.
The Annual Report submitted to the Danish Financial Supervisory Authority (the officially appointed mechanisms) consists of the XHTML document together with the technical files, all included in the ZIP-file named; 5299003KG4JS99TRML67-2025-12-31-en.zip.
Changes in accounting policies and disclosures
Impact of new accounting standards
Based on an assessment of new or amended and revised accounting standards and interpretations (\u2018IFRS\u2019) issued
by the International Accounting Standards Board (IASB) and IFRSs endorsed by the European Union effective on or after 1 january 2025, it has been assessed that the application of these new IFRSs has not had a material impact on the Consolidated Financial Statements in 2025, and the Group does not anticipate any significant impact on future periods from the adoption of these new IFRSs. The Group has adopted all new, amended and revised standards and interpretations.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__20-1": { "value": "Changes in accounting policies and disclosures
Impact of new accounting standards
Based on an assessment of new or amended and revised accounting standards and interpretations (\u2018IFRS\u2019) issued
by the International Accounting Standards Board (IASB) and IFRSs endorsed by the European Union effective on or after 1 january 2025, it has been assessed that the application of these new IFRSs has not had a material impact on the Consolidated Financial Statements in 2025, and the Group does not anticipate any significant impact on future periods from the adoption of these new IFRSs. The Group has adopted all new, amended and revised standards and interpretations.
Assessment of useful economic lives for trademarks \u2013 change in accounting estimates
During the fourth quarter of 2025, Management has reassessed the useful lives of the Group\u2019s strategic trademarks. Historically, a number of trademarks have been classified as having indefinite useful lives, reflecting Management\u2019s expectation that these trademarks would generate net cash inflows for the Group over an unforeseeable period. As part of the implementation of the Group\u2019s new strategic direction, Focus2030, and based on expected future market developments etc., Management now considers it appropriate to classify the majority of these trademarks as having finite useful lives.
As a result, all machine-rolled cigar trademarks and trademarks outside the strategic focus have been reclassified as trademarks with a finite useful life of 25 years and will be amortised on a straight-line basis from 1 January 2026. The four handmade-cigar Power Brands (Macanudo, CAO, Cohiba, and Alec Bradley) will remain classified as having indefinite useful lives.
In accordance with IAS 36, Impairment of assets, and IAS 38, Intangible assets, an impairment test was carried out at the time of reclassification. The impairment test did not give rise to any impairment of the affected trademarks.
The annual amortisation resulting from this change is estimated at approximately DKK 73 million commencing 1 January 2026.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesAccountingEstimatesAndErrorsExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__21": { "value": "New or amended IFRSs that have been issued but have not yet come into effect and have not been early adopted
The IASB has issued a number of new or amended and revised accounting standards and interpretations that have not yet come into effect. It has been assessed that the application of these new IFRSs will not have a material impact on future reporting periods, except from IFRS 18 described below.
The IASB has issued IFRS 18, Presentation and Disclosure in Financial Statements. This new standard replaces the current IAS 1, Presentation of Financial Statements, and it implements a set of new requirements for presentation and disclosures in the financial statements. The new standard requires the income statement to be structured into five categories, while also introducing two new subtotals. Furthermore, the new term \u201cManagement Performance Measures (MPM)\u201d is introduced, which must be disclosed in the notes of the financial statements. The new requirements for presentation and disclosures are applicable for all financial statements, including consolidated financial statements, separate financial statements and interim financial statements.
The new IFRS 18 has not been endorsed by the European Union yet but is expected to come into effect for financial statements starting on or after 1 January 2027.
IFRS 18 will revise the presentation of the Group\u2019s Consolidated Income Statement mainly due to the new required subtotal \u201coperating profit\u201d which will include depreciation, amortisation, special items as well as part of the current financial income and expenses. Furthermore, additional new line items will be introduced for financial income and expenses related to the investing and financing categories. However, the reported net result will remain unaffected.
", "dimensions": { "concept": "ifrs-full:DescriptionOfExpectedImpactOfInitialApplicationOfNewStandardsOrInterpretations", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__22": { "value": "Basis of consolidation
Subsidiaries are all entities (including structured entities) which the Group controls. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Enterprises in which the Group holds between 20% and 50% of the votes and exercises significant influence but not control are classified as associated companies. At consolidation, items of a uniform nature are combined. Elimination is made of intercompany income and expenses, shareholdings, dividends and accounts as well as of realised and unrealised profits and losses on transactions between the consolidated enterprises.
The Parent Company\u2019s investments in the consolidated subsidiaries are set off against the Parent Company\u2019s
share of the net asset value of subsidiaries stated at the time of consolidation.
On the acquisition of subsidiaries, the difference between cost and net asset value of the enterprise acquired is determined at the date of acquisition after the individual assets and liabilities have been adjusted to fair value (the acquisition method). Transaction costs relating to the acquisition of subsidiaries are not included in the value of the acquired assets. All acquisition-related costs are expensed in the period in which they incur. Any remaining positive differences are recognised as goodwill in intangible assets in the balance sheet. Goodwill is not amortised, but instead tested for impairment on an annual basis and when there is an indication of impairment.
Positive and negative differences from enterprises
acquired may, due to changes to the recognition and
measurement of net assets, be adjusted until one year
from the acquisition date. These adjustments are also
reflected in the value of goodwill.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__23": { "value": "Translation policies
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement.
Income statements of foreign subsidiaries and associated companies are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising from the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__24": { "value": "Translation policies
Transactions in foreign currencies are translated at the exchange rates at the dates of transaction. Gains and losses arising due to differences between the transaction date rates and the rates at the dates of payment are recognised in financial income and expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies that have not been settled at the balance sheet date are translated at the exchange rates at the balance sheet date. Any differences between the exchange rates at the balance sheet date and the transaction date rates are recognised in financial income and expenses in the income statement.
Income statements of foreign subsidiaries and associated companies are translated at transaction date rates or approximated average exchange rates. Balance sheet items are translated at the exchange rates at the balance sheet date. Exchange adjustments arising from the translation of the opening equity and exchange adjustments arising from the translation of the income statements at the exchange rates at the balance sheet date are recognised directly in equity.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFunctionalCurrencyExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__25-1": { "value": "Other external costs
Other external costs comprise expenses for premises, sales, marketing, distribution and bad debt allowance as well as office expenses, fee to statutory auditor, etc.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Accounting policies
Staff costs comprise wages and salaries as well as payroll
expenses other than production wages, and staff costs capitalised on assets.
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
Equity
Proposed dividend is recognised as a liability at the time of approval by the general meeting. Dividend which is expected to be distributed for the year is disclosed in note 4.5.
The reserve for currency translation in the Consolidated Financial Statements comprises foreign exchange differences arising from translation of financial statements of foreign enterprises from their functional currencies to the presentation currency of the Group (Danish kroner).
When there is full or partial disposal of the net investment, the foreign exchange adjustments are recognised in the income statement.
Cost of acquisition and proceeds from sale of treasury shares are recognised in reserve for treasury shares. Dividends received in relation to treasury shares are recognised in retained earnings.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDividendsExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__27-1": { "value": "Cash flow statement
The cash flow statement shows the Group\u2019s cash flows for the year broken down by operating, investing and financing activities, changes for the year in cash and cash equivalents as well as the Group\u2019s cash and cash equivalents at the beginning and end of the year.
Cash flow from operating activitiesis determined as the net profit/loss for the year adjusted for changes in working capital and non-cash operating items such as depreciation, amortisation and impairment losses and provisions. Working capital comprises current assets less
current liabilities excluding items included in cash and cash equivalents, prepaid tax, other provisions, lease liabilities and corporate tax liabilities.
Cash flow from investing activitiescomprises cash flows from addition and disposals of intangible assets, property, plant and equipment, fixed asset investments, acquisition of entities, as well as dividends from associated companies.
Cash flow from financing activitiescomprises cash flows from repayment of lease liabilities, other financing, the raising and repayment of debt as well as payments to and from shareholders.
Cash and cash equivalentscomprises \u2018cash at bank and in hand\u2019.
The cash flow statement cannot be derived directly from the Consolidated Financial Statements.
Accounting policies
Working capital is defined as current assets less current liabilities. It measures how much in liquid assets the Group has available for the business.
Cash and cash equivalentscomprises \u2018cash at bank and in hand\u2019.
The cash flow statement cannot be derived directly from the Consolidated Financial Statements.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyToDetermineComponentsOfCashAndCashEquivalents", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__29": { "value": "1.2
CRITICAL ACCOUNTING
ESTIMATES AND JUDGEMENTS
When preparing the Group\u2019s Consolidated Financial Statements, Management makes various accounting estimates, judgements and assumptions which form the basis of presentation, recognition and measurement of the Group\u2019s assets and liabilities. Accounting estimates and underlying assumptions are reviewed on an ongoing basis. In some circumstances, a change in the estimates may be necessary because of changes in the underlying assumptions.
Estimation uncertainty
Determining the carrying amount of some assets and
liabilities requires judgements, estimates and assumptions concerning future events.
The judgements, estimates and assumptions are
based on historical experience and other factors which
Management assesses to be reliable, but which by their
very nature are associated with uncertainty and unpredictability. These assumptions may prove incomplete or incorrect, and unexpected events or circumstances may arise.
The Group is also subject to risks and uncertainties
which may lead to actual results differing from these
estimates, both positively and negatively. Assumptions
about the future and estimation uncertainty on the
balance sheet date are described in the notes if there is
a significant risk of changes that could result in material adjustments to the carrying amount of assets or liabilities within the next financial year.
Management regards the following areas to include the key accounting estimates and assumptions used in the preparation of the Consolidated Financial Statements:
Income and deferred income taxes (note 2.6)
Goodwill (note 3.1)
Trademarks (note 3.1)
Property, plant and equipment (note 3.2)
Inventories (note 3.4)
Pension obligations (note 3.8)
Business combinations (note 5.1)
Please refer to the specific notes for further information on the key accounting estimates and assumptions applied.
Defining materiality
The Consolidated Financial Statements are a result of
processing large numbers of transactions and aggregating those transactions into classes according to their nature or function. When aggregated, the transactions are presented in classes of similar items in the Consolidated Financial Statements. If a line item is not individually material, it is aggregated with other items of a similar nature in the Consolidated Financial Statements or in the notes. There are substantial disclosure requirements throughout the IFRS. Management provides the specific disclosures required by the IFRS unless the information is considered immaterial to the economic decision making of the users of these financial statements or not applicable.
Management has made estimates in determining the lia-bilities for uncertain tax positions, deferred tax assets and deferred tax liabilities and the extent to which deferred tax assets are recognised. The Group recognises only deferred tax assets if these tax assets can be offset against positive taxable income in the foreseeable future. The estimates are made on the basis of business plans for the forthcoming years.
Key accounting estimates
Impairment of intangible assets
The carrying amounts of all intangible assets are reviewed on an annual basis to determine whether there is any indi-cation of impairment other than that expressed by amorti-sation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recov-erable amount. The impairment test includes significant judgments made by Management, such as assumption of
projected future cash flows used in the valuation of the intangible assets in question. Future events could cause Management to conclude that impairment indicators exist and that intangible assets are impaired. Any resulting impairment loss could have a material impact on the financial condition and on the result of operations. Goodwill and trademarks with indefinite useful lifetime are tested annually for impairment. Refer to following sections regarding accounting estimates for these assets.
Impairment test of goodwill
In the annual impairment test of goodwill, an estimate is made to determine how the Group will be able to generate sufficient positive net cash flow in the future to support the value of goodwill, trademarks and other net assets. For the purpose of the annual impairment test of goodwill, the costs and income in each operating segment according to note 2.1have been allocated to each cash generating unit based on either direct allocation or by using relevant
allocation keys. The estimates of the anticipated future net cash flow are based on forecasts, business plans as well as Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices as well as operating cost development for each market in each of the defined cash generating units. The discount rate is assessed based on updated market data. The impairment test includes significant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that goodwill is impaired. Any resulting impairment loss could have a material impact on the financial condi-tion and on the result of operations.
In 2025, as well as in 2024, Management did not identify any impairments.
Key accounting estimates
Impairment test of trademarks with indefinite useful lives
In the annual impairment test of trademarks with indefinite useful lives, an estimate is made to determine how the trademarks will be able to generate sufficient positive net cash flow in the future to support the value of the trademark in question. The estimates of the anticipated future net cash flow are based on Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices for each trademark. The impairment test includes sig-nificant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that some trademarks are impaired.
In 2025, as well as in 2024, Management did not identify any impairments.
Other trademarks with finite useful lives and other intangible assets
Acquired trademarks with a finite useful lifetime and other intangible assets are in general amortised over their useful lives according to the Group\u2019s accounting principles. The trademarks and other intangible assets are tested for impairment when circumstances indicate that the value might be impaired.
In 2025, as well as in 2024, Management did not identify any indications of impairment.
Key accounting estimates
Impairment of property, plant and equipment
The carrying amounts of property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recoverable amount. The impairment test includes significant judgments made by Management, such as assumption of projected future cash flows used in the valuation.
Key accounting estimates
Inventories are measured at the lower of cost price under
the FIFO method and net realisable value.
The estimated uncertainty in inventories is related to the
write-down to net realisable value. Inventories are written
down in accordance with Group policy, including individ-ual assessment of inventories for potential losses due to
obsolescence.
Actuarial assumptions
The discount rate is set per country with reference to high quality corporate bond yields of appropriate duration or government bond yields for countries where a deep mar-ket of high quality corporate bonds is not available.
Key accounting estimates
The most significant assets acquired generally comprise goodwill, trademarks, tradenames, know-how, customer relations and inventories. As no active market exists for the majority of acquired assets, the fair value is based on Management\u2019s projections and estimates. The methods applied are based on the present value of future cash flows related to the specific asset. Estimates of fair value are associated with uncertainty and may be adjusted subsequently.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.2
Staff costs
Remuneration of the Board of Directors
and Executive Board
Total fees to the Board of Directors and Executive Board amounted to DKK 39.5 million (DKK\u00a051.1\u00a0million).
Executive Board
The members of the Executive Management are subject to a notice period of 12-24 months and other Executive Board members to 6-12 months notice.
Remuneration of the members of the Executive Management complies with the principles of the company\u2019s Remuneration Policy.
For the year 2025, the total cost of remuneration for the Executive Board amounts to DKK 32.7 million (DKK 44.4 million).
DKK million | 2025 | 2024 |
Wages and salaries | 1,613.5 | 1,547.7 |
Pensions - defined contribution plans | 69.1 | 74.1 |
Pensions - defined benefit plans | 23.8 | 22.9 |
Social security costs | 234.6 | 237.5 |
Total staff costs for the year | 1,941.0 | 1,882.2 |
Staff cost included in intangible assets | -3.2 | -3.4 |
Change in employee costs included in inventories | -20.4 | 2.1 |
Total staff costs expensed to the income statement | 1,917.4 | 1,880.9 |
DKK million | 2025 | 2024 |
Included in the income statement: | ||
Cost of goods sold | 894.1 | 823.7 |
Staff costs | 1,023.3 | 1,057.2 |
Total included in the income statement | 1,917.4 | 1,880.9 |
Average number of employees in the Group | 9,144 | 9,630 |
Employees per region
(%)
Americas 50% (53%)
Europe 20% (18%)
Rest of world 30% (29%)
Accounting policies
Staff costs comprise wages and salaries as well as payroll
expenses other than production wages, and staff costs capitalised on assets.
Board of Directors
Members of the Board of Directors receive fixed annual
Fees. Remuneration of the members of the Board of Directors may not include any incentive element. Ordinary members receive a fixed annual fee while the Chairman receives multiples thereof. Board members who are also members of a Board Committee as Chairperson or ordinary committee member receive an additional fixed fee reflecting the additional work and responsibility that follows from being on a committee.
Board of Directors DKK thousand | Position | Joined the Board | Left the Board | Board | Committees | Other | Total |
Henrik Brandt | Chairman | Apr 2017 | 1,320 | 440 | - | 1,760 | |
Dianne Neal Blixt | Board member | Feb 2016 | 440 | 385 | - | 825 | |
Anders C. Obel | Board member | Apr 2018 | 440 | 220 | - | 660 | |
Marlene Forsell | Board member | Apr 2019 | 440 | 330 | - | 770 | |
Henrik Amsinck | Board member | Apr 2021 | Apr 2025 | 121 | - | 30 | 151 |
J\u00f6rg Biebernick | Board member | Apr 2024 | 440 | 165 | - | 605 | |
Ricardo Oberlander | Board member | Apr 2025 | 319 | 156 | - | 475 | |
Thomas Thomsen | Employee-elected | Apr 2023 | 440 | - | - | 440 | |
Mark Draper | Employee-elected | Apr 2023 | Oct 2025 | 367 | - | - | 367 |
Karsten Dam Larsen | Employee-elected | Jun 2023 | 440 | - | - | 440 | |
Hanne Malling | Employee-elected | Nov 2025 | 73 | - | - | 73 | |
Total 2025 | 4,840 | 1,696 | 30 | 6,566 | |||
Total 2024 | 4,840 | 1,540 | 110 | 6,490 |
Social security taxes and similar taxes
In addition to the above remuneration to the Board of Directors, the Company may pay social security taxes and similar taxes imposed by non-Danish
In 2025, members of the Board of Directors and the board committees received fixed annual fees in the aggregate amount of DKK 6.6 million (DKK 6.5 million).
DKK 0.2 million (DKK 0.2 million) was paid during 2025
related to social security taxes and similar taxes imposed by non-danish authorities in relation to the
remuneration.
authorities in relation to the remuneration. In 2025, the Company paid DKK 242 thousand compared to DKK\u00a0240\u00a0thousand in 2024.
2.5
Special items
DKK million | 2025 | 2024 |
Integration and transactions costs (Mac Baren) | 34.5 | 40.4 |
One Commercial Organisation | 4.3 | 53.5 |
Solution Delivery Organisation | 30.8 | 53.0 |
OneProcess | 130.1 | 132.1 |
Total special items incl. impairment, net costs | 199.7 | 279.0 |
DKK million | 2025 | 2024 |
Specified by line items in the consolidated income statement | ||
Cost of goods sold | 19.1 | 16.4 |
Other external costs | 107.8 | 128.6 |
Staff costs | 72.8 | 134.0 |
Total special items incl. impairment, net costs | 199.7 | 279.0 |
Accounting policies
Special items are used in connection with the presentation of profit or loss for the year to distinguish consolidated EBITDA and EBIT from special items, which by their nature are not related to the Group\u2019s core performance.
Special items are by nature of a significant character and comprise restructuring costs from larger structural and M&A reorganisations, M&A transaction costs, impairment losses, gains or losses from sale of assets and other non-recurring items.
2.1
GROSS PROFIT (NET SALES AND COST OF GOODS SOLD)
2025 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,748.9 | 3,016.9 | 3,269.9 | - | 9,035.7 |
Cost of goods sold | -1,702.5 | -1,628.5 | -1,703.5 | - | -5,034.5 |
Gross profit before special items | 1,046.4 | 1,388.4 | 1,566.4 | - | 4,001.2 |
Staff and other external costs | -699.3 | -507.3 | -917.0 | -143.9 | -2,267.5 |
Other income | - | 57.3 | - | - | 57.3 |
EBITDA before special items | 347.1 | 938.4 | 649.4 | -143.9 | 1,791.0 |
Depreciation and impairment | -252.1 | -252.1 | |||
Amortisation and impairment | -197.0 | -197.0 | |||
EBIT before special items | -593.0 | 1,341.9 | |||
Special items incl. impairment, net costs | -199.7 | -199.7 | |||
EBIT | -792.7 | 1,142.2 | |||
Share of profit of associated companies, net of tax | 23.2 | 23.2 | |||
Financial income | 71.3 | 71.3 | |||
Financial costs | -358.9 | -358.9 | |||
Profit before tax | -1,057.1 | 877.8 |
Net sales
DKK million
9,036
2024 DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Group costs / not allocated | Total |
Net sales | 2,973.3 | 3,138.8 | 3,090.0 | - | 9,202.1 |
Cost of goods sold | -1,809.3 | -1,544.0 | -1,570.3 | - | -4,923.6 |
Gross profit before special items | 1,164.0 | 1,594.8 | 1,519.7 | - | 4,278.5 |
Staff and other external costs | -723.0 | -513.5 | -871.0 | -140.5 | -2,248.0 |
Other income | - | 48.5 | - | - | 48.5 |
EBITDA before special items | 441.0 | 1,129.8 | 648.7 | -140.5 | 2,079.0 |
Depreciation and impairment | -236.3 | -236.3 | |||
Amortisation and impairment | -183.5 | -183.5 | |||
EBIT before special items | -560.3 | 1,659.2 | |||
Special items incl. impairment, net costs | -279.0 | -279.0 | |||
EBIT | -839.3 | 1,380.2 | |||
Share of profit of associated companies, net of tax | 25.4 | 25.4 | |||
Financial income | 130.2 | 130.2 | |||
Financial costs | -316.5 | -316.5 | |||
Profit before tax | -1,000.2 | 1,219.3 |
Net sales per division
DKK million
North America Online & Retail 2,749 (2,973)
North America Branded & RoW 3,017 (3,139)
Europe Branded 3,270 (3,090)
Net sales per region
DKK million
Americas 4,538 (4,912)
Europe 3,934 (3,756)
Rest of world 564 (534)
Total | ||||
2,060.0 | 986.7 | 117.5 | 3,164.1 | |
362.6 | 1,494.9 | 2,684.0 | 4,541.5 | |
- | 47.6 | 380.6 | 428.2 | |
326.4 | 487.7 | 87.9 | 902.0 | |
2,748.9 | 3,016.9 | 3,269.9 | 9,035.7 | |
* Licence income and other sales included | - | 18.2 | - | 18.2 |
** Licence income and other sales included | 30.9 | 30.6 | 10.5 | 72.0 |
Total Licence income and other sales included | 30.9 | 48.8 | 10.5 | 90.2 |
Other**
Total | ||||
2,126.9 | 1,031.1 | 141.5 | 3,299.5 | |
367.3 | 1,457.7 | 2,606.2 | 4,431.2 | |
132.0 | 52.5 | 236.4 | 420.9 | |
347.1 | 597.5 | 105.9 | 1,050.5 | |
2,973.3 | 3,138.8 | 3,090.0 | 9,202.1 | |
* Licence income and other sales included | - | 19.6 | - | 19.6 |
** Licence income and other sales included | 36.5 | 30.9 | 8.4 | 75.8 |
Total Licence income and other sales included | 36.5 | 50.4 | 8.4 | 95.4 |
Other**
DKK million | 2025 | 2024 |
Geographical split, net sales | ||
Americas | 4,538.1 | 4,911.9 |
Europe | 3,933.6 | 3,756.2 |
Rest of world | 564.0 | 534.0 |
Total net sales | 9,035.7 | 9,202.1 |
DKK million | 2025 | 2024 |
Non-current assets1 | ||
Denmark | 2,403.8 | 2,616.0 |
Americas | 4,590.3 | 5,183.0 |
Europe | 3,806.8 | 3,783.8 |
Rest of world | 46.8 | 60.4 |
Total non-current assets | 10,847.7 | 11,643.2 |
1. Non-current assets other than deferred income tax. |
Geographic information
In the table above, sales to external customers are attributable to the country of the customers\u2019 domicile, and in the table below, non-current assets are based on the country of the entities\u2019 domicile.
The Group is domiciled in Denmark. Net sales from external customers in Denmark amount to DKK 222.3\u00a0million (DKK 195.7 million), and net sales from external customers outside Denmark amount to DKK\u00a08,813.4 million (DKK 9,006.4 million). Individual, material country (>10% of total net sales) is the US DKK 4,230.4 million (DKK 4,511.5 million). Individual, material countries (>10% of total non-current assets)
are the US DKK 4,367.0 million (DKK\u00a04,931.2\u00a0million) and the Netherlands DKK 2,725.3 million (DKK 2,809.4\u00a0million).
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
Cost of goods sold
Cost of goods sold comprises costs incurred to achieve revenue for the year. Cost comprises raw materials, con-sumables, direct labour costs and indirect production costs such as maintenance as well as operation, administration and management of factories.
Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
3.2
PROPERTY, PLANT AND EQUIPMENT
2025 DKK million | Land and buildings | Plant and machinery | Equipment, tools and fixtures | Leasehold improve-ments | Construc-tion in progress | Total |
Accumulated cost at 1 January | 1,143.5 | 912.8 | 295.3 | 94.5 | 100.2 | 2,546.3 |
Exchange rate adjustment | -60.6 | -26.2 | -24.6 | -8.5 | -8.5 | -128.4 |
Acquisition | - | - | - | - | - | - |
Additions | 2.9 | 4.3 | 2.5 | 2.9 | 145.5 | 158.1 |
Disposals | -29.7 | -15.4 | -18.4 | -3.2 | -3.7 | -70.4 |
Transfers | -12.7 | -46.3 | 161.0 | 21.2 | -123.2 | - |
Accumulated cost at 31 December | 1,043.4 | 829.2 | 415.8 | 106.9 | 110.3 | 2,505.6 |
Accumulated depreciation and impairment at 1 January | 312.0 | 405.5 | 128.4 | 35.9 | 0.3 | 882.1 |
Exchange rate adjustment | -11.7 | -14.0 | -9.5 | -3.5 | - | -38.7 |
Depreciation | 39.6 | 85.9 | 27.6 | 11.4 | - | 164.5 |
Disposals | -4.3 | -15.4 | -18.0 | -3.1 | - | -40.8 |
Impairment | - | - | - | - | - | - |
Transfers | -40.7 | -76.9 | 117.6 | - | - | - |
Accumulated amortisation and impairment at 31 December | 294.9 | 385.1 | 246.1 | 40.7 | 0.3 | 967.1 |
Carrying amount at 31 December | 748.5 | 444.1 | 169.7 | 66.2 | 110.0 | 1,538.5 |
2024 DKK million | Land and buildings | Plant and machinery | Equipment, tools and fixtures | Leasehold improve-ments | Construc-tion in progress | Total |
Accumulated cost at 1 January | 971.8 | 724.5 | 296.4 | 81.0 | 196.8 | 2,270.5 |
Exchange rate adjustment | 26.3 | 7.2 | 12.1 | 4.2 | 4.8 | 54.6 |
Acquisition | 19.5 | 70.9 | - | - | 1.7 | 92.1 |
Additions | 1.2 | 6.8 | 5.7 | 1.0 | 201.3 | 216.0 |
Disposals | -0.6 | -47.3 | -37.0 | -0.9 | -1.1 | -86.9 |
Transfers | 125.3 | 150.7 | 18.1 | 9.2 | -303.3 | - |
Accumulated cost at 31 December | 1,143.5 | 912.8 | 295.3 | 94.5 | 100.2 | 2,546.3 |
Accumulated depreciation and impairment at 1 January | 267.9 | 359.4 | 142.4 | 25.4 | 0.3 | 795.4 |
Exchange rate adjustment | 3.9 | 4.2 | 4.7 | 1.7 | - | 14.5 |
Depreciation | 40.8 | 78.6 | 24.7 | 9.7 | - | 153.8 |
Disposals | -0.6 | -46.1 | -36.1 | -0.9 | - | -83.7 |
Impairment | - | 2.1 | - | - | - | 2.1 |
Transfers | - | 7.3 | -7.3 | - | - | - |
Accumulated amortisation and impairment at 31 December | 312.0 | 405.5 | 128.4 | 35.9 | 0.3 | 882.1 |
Carrying amount at 31 December | 831.5 | 507.3 | 166.9 | 58.6 | 99.9 | 1,664.2 |
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
Key accounting estimates
Impairment of property, plant and equipment
The carrying amounts of property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recoverable amount. The impairment test includes significant judgments made by Management, such as assumption of projected future cash flows used in the valuation.
Additions
DKK million
158.1
Impairment
In 2024, impairment costs of DKK 2.1 million were recognised in the income statement. Management did not identify any other indications of impairment.
Impairment
Management did not identify any indications of impairment in 2025.
3.3
RIGHT-OF-USE ASSETS
The group as a lessee
The Group has entered into lease contracts for land, offices, warehouses, motor vehicles and other equipment utilised across the entire Group. Leases of land have lease terms up to 20 years, offices and warehouses generally have lease terms between three and ten years, while motor vehicles and other equipment generally have lease terms between three
and five years. Lease contracts that include extension and termination options are recognised based on the outcome of the lease term that is considered reasonably certain at the commencement date.
Information on the corresponding lease liabilities is included in note 4.2 financial risks and instruments.
2025 DKK million | Land, buildings, offices and warehouses | Motor vehicles | Other equipment | Total |
Carrying amount at 1 January | 349.9 | 50.6 | 1.8 | 402.3 |
Exchange rate adjustment | -29.4 | -1.0 | - | -30.4 |
Aquisition | - | - | - | - |
Additions | 83.7 | 24.8 | 1.0 | 109.5 |
Disposals | -22.2 | -2.7 | - | -24.9 |
Depreciation | -58.4 | -28.1 | -1.1 | -87.6 |
Carrying amount at 31 December | 323.6 | 43.6 | 1.7 | 368.9 |
2024 DKK million | Land, buildings, offices and warehouses | Motor vehicles | Other equipment | Total |
Carrying amount at 1 January | 238.3 | 43.8 | 2.5 | 284.6 |
Exchange rate adjustment | 14.3 | 0.4 | - | 14.7 |
Aquisition | 23.4 | 6.5 | - | 29.9 |
Additions | 126.4 | 30.6 | 1.3 | 158.3 |
Disposals | -0.1 | -4.6 | -0.1 | -4.8 |
Depreciation | -52.4 | -26.1 | -1.9 | -80.4 |
Carrying amount at 31 December | 349.9 | 50.6 | 1.8 | 402.3 |
The following amounts are recognised in the income statement: | ||
DKK million | 2025 | 2024 |
Depreciation expense of right-of-use assets | 87.6 | 80.4 |
Interest expense on lease liabilities | 6.3 | 9.5 |
Expense relating to short-term leases | 7.2 | 4.0 |
Expense relating to leases of low-value assets | 0.1 | 0.2 |
Total amount recognised in the income statement | 101.2 | 94.1 |
In 2025, the Group had total cash outflows for leases of DKK 94.1 million (DKK 108.0 million). The Group has entered into lease contracts at a value of DKK 2.7 million (DKK 0.7 million) that have not yet commenced.
The Group has extension options of a total value of DKK 25.8 million (DKK 25.5 million) that are not included in the recognised leases, as it is not considered reasonable certain that the Group will exercise the options.
Accounting policies
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. Based on the contract the right-of-use asset and the lease liability are recognised at commencement of the lease. The initial measurement of the right-of-use asset is at cost and comprises the initial value of the lease liability and lease payments made at or before the commencement date. The right-of-use assets are depreciated on a straight-line basis over the shorter period of the lease term or the useful life of the underlying asset.
The lease liabilities are initially measured at the present value of lease payments that are not paid at the com-mencement date. Lease payments include fixed payments and variable payments that depend on an index such as an inflation index as well as lease payments from an extension option that the Group considers reasonably certain to be exercised.
Extension and termination options exist for a number of leases, particular for offices and warehouses.
In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Lease terms can be subject to changes following the occurrence of significant events or circumstances.
The Group applies the recognition exemption to short-term leases and low-value leases.
Impairment of right-of-use assets
The carrying amounts are reviewed on an annual basis to determine whether there is any indication of impair-ment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the right-of-use asset is written down to its lower recoverable amount.
Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__39": { "value": "Accounting policies
Net sales
The Group derives revenue from the transfer of goods at a point in time. Revenue is measured at the fair value of the consideration received or receivable and is recognised exclusive of vat, excise and net of discounts/rebates relating to the sale. Revenue from retail activities includes excise. Revenue from external customers come from the
sale of goods on the basis of wholesale, retail, online & catalogue and business to business.
Revenue from the sale of goods is recognised in the income
statement when the control of the goods has been trans-ferred to the customer.
The Group does not have any contracts where the period between the transfer of the goods to the customer and payment by the customer exceeds one year. As a conse-quence, the Group does not adjust any of the transaction prices for the time value of money.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDiscountsAndRebatesExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__41": { "value": "Segments
The segment reporting is prepared in a manner consistent with the Group\u2019s internal management and reporting structure, thus our reportable segments are equal to our three commercial divisions, which are generally managed based on geographical areas combined with type of sales/customers. Segment performance is evaluated on the basis of EBITDA before special items consistent with the Consolidated Financial Statements.
The executive board is considered to be the chief operating
decision maker.
Division North America Online & Retail includes direct to
Consumer sales of all product categories sold via the
online, catalogue and retail channel in North America.
Division north America Branded & Rest of World includes sales of all product categories to wholesalers and distrib-utors that supply retail in the US, Canada, Australia, New Zealand, International Sales (amongst others Norway, Finland, Switzerland and Israel), Asia, Global Travel Retail and contract manufacturing for third parties.
Division Europe Branded includes sales of all product cat-egories to wholesalers and distributors that supply retail in Germany, Denmark, Sweden, France, Italy, Belgium, the Netherlands, Luxembourg, Spain, Portugal, as well as the UK and Ireland.
Operating expenses that are not directly inherent in the divisions/segments are to some extent allocated to the divisions/segments based on allocation keys defined by activities or other relevant components. Certain costs relating to group functions are managed on group level. These items are not included in the reportable divisions/segments and therefore reported as 'Group costs'.
Depreciation, amortisation, impairment costs, special items, share of profit of associated companies, net of tax and finan-cial items are not allocated to the divisions/segments.
No operating segments have been aggregated to form the
Reported business segments.
No assets and liabilities are allocated to divisions/seg-ments in the internal reporting.
2.2
Staff costs
Remuneration of the Board of Directors
and Executive Board
Total fees to the Board of Directors and Executive Board amounted to DKK 39.5 million (DKK\u00a051.1\u00a0million).
Executive Board
The members of the Executive Management are subject to a notice period of 12-24 months and other Executive Board members to 6-12 months notice.
Remuneration of the members of the Executive Management complies with the principles of the company\u2019s Remuneration Policy.
For the year 2025, the total cost of remuneration for the Executive Board amounts to DKK 32.7 million (DKK 44.4 million).
DKK million | 2025 | 2024 |
Wages and salaries | 1,613.5 | 1,547.7 |
Pensions - defined contribution plans | 69.1 | 74.1 |
Pensions - defined benefit plans | 23.8 | 22.9 |
Social security costs | 234.6 | 237.5 |
Total staff costs for the year | 1,941.0 | 1,882.2 |
Staff cost included in intangible assets | -3.2 | -3.4 |
Change in employee costs included in inventories | -20.4 | 2.1 |
Total staff costs expensed to the income statement | 1,917.4 | 1,880.9 |
DKK million | 2025 | 2024 |
Included in the income statement: | ||
Cost of goods sold | 894.1 | 823.7 |
Staff costs | 1,023.3 | 1,057.2 |
Total included in the income statement | 1,917.4 | 1,880.9 |
Average number of employees in the Group | 9,144 | 9,630 |
Employees per region
(%)
Americas 50% (53%)
Europe 20% (18%)
Rest of world 30% (29%)
Accounting policies
Staff costs comprise wages and salaries as well as payroll
expenses other than production wages, and staff costs capitalised on assets.
Board of Directors
Members of the Board of Directors receive fixed annual
Fees. Remuneration of the members of the Board of Directors may not include any incentive element. Ordinary members receive a fixed annual fee while the Chairman receives multiples thereof. Board members who are also members of a Board Committee as Chairperson or ordinary committee member receive an additional fixed fee reflecting the additional work and responsibility that follows from being on a committee.
Board of Directors DKK thousand | Position | Joined the Board | Left the Board | Board | Committees | Other | Total |
Henrik Brandt | Chairman | Apr 2017 | 1,320 | 440 | - | 1,760 | |
Dianne Neal Blixt | Board member | Feb 2016 | 440 | 385 | - | 825 | |
Anders C. Obel | Board member | Apr 2018 | 440 | 220 | - | 660 | |
Marlene Forsell | Board member | Apr 2019 | 440 | 330 | - | 770 | |
Henrik Amsinck | Board member | Apr 2021 | Apr 2025 | 121 | - | 30 | 151 |
J\u00f6rg Biebernick | Board member | Apr 2024 | 440 | 165 | - | 605 | |
Ricardo Oberlander | Board member | Apr 2025 | 319 | 156 | - | 475 | |
Thomas Thomsen | Employee-elected | Apr 2023 | 440 | - | - | 440 | |
Mark Draper | Employee-elected | Apr 2023 | Oct 2025 | 367 | - | - | 367 |
Karsten Dam Larsen | Employee-elected | Jun 2023 | 440 | - | - | 440 | |
Hanne Malling | Employee-elected | Nov 2025 | 73 | - | - | 73 | |
Total 2025 | 4,840 | 1,696 | 30 | 6,566 | |||
Total 2024 | 4,840 | 1,540 | 110 | 6,490 |
Social security taxes and similar taxes
In addition to the above remuneration to the Board of Directors, the Company may pay social security taxes and similar taxes imposed by non-Danish
In 2025, members of the Board of Directors and the board committees received fixed annual fees in the aggregate amount of DKK 6.6 million (DKK 6.5 million).
DKK 0.2 million (DKK 0.2 million) was paid during 2025
related to social security taxes and similar taxes imposed by non-danish authorities in relation to the
remuneration.
authorities in relation to the remuneration. In 2025, the Company paid DKK 242 thousand compared to DKK\u00a0240\u00a0thousand in 2024.
2.3
SHARE-BASED PAYMENTS
Value of the programmes and impact on the income statement | ||||
LTIP 2022 | LTIP 2023 | LTIP 2024 | LTIP 2025 | |
Total PSUs granted | 106,460 | 117,155 | 124,648 | 143,440 |
Fair value of PSUs expected to vest at grant date, DKK million | 13.0 | 11.5 | 10.5 | 12.5 |
Fair value of PSUs expected to vest at 31 December 2025, DKK million | 2.0 | 1.9 | 11.7 | 13.7 |
Recognised in the income statement in 2025, DKK million | - | -5.7 | 4.4 | 4.6 |
Not yet recognised in respect of PSUs expected to vest, DKK million | - | - | 4.5 | 9.1 |
* DKK 3.3 million (DKK 1.1 million) was recognised in staff costs. |
Executive Board | |||||
LTIP 2022 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2024 | 26,819 | 12,931 | 17,999 | 30,649 | 88,398 |
Transferred | - | - | -10,125 | 10,125 | - |
Granted | 2,024 | 976 | 594 | 3,659 | 7,253 |
Forefeited | - | - | - | -299 | -299 |
Adjustment | -24,517 | -11,821 | -7,198 | -37,768 | -81,304 |
Outstanding at 31 December 2024 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Outstanding at 1 January 2025 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Forefeited | - | - | - | -159 | -159 |
Vested | -4,326 | -2,086 | -1,270 | -6,207 | -13,889 |
Outstanding at 31 December 2025 | - | - | - | - | - |
Executive Board | |||||
LTIP 2025 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2025 | - | - | - | - | - |
Granted | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
Outstanding at 31 December 2025 | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
All of the outstanding PSUs at 31 December 2025 are hedged by treasury shares. |
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Applied assumptions at the time of grant | ||||
LTIP 2025 | LTIP 2024 | LTIP 2023 | LTIP 2022 | |
Share price (DKK) | 95.2 | 97.0 | 120.6 | 146.9 |
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
3.8
PENSION OBLIGATIONS
Post-employment defined benefit \u2013 recognised in the balance sheet | ||
DKK million | 2025 | 2024 |
Present value of funded obligations | 362.1 | 346.5 |
Fair value of plan assets | -210.5 | -195.8 |
Deficit (+) / surplus (-) | 151.7 | 150.8 |
Present value of unfunded obligations | 42.9 | 62.9 |
Net asset (-) / liability (+) in the balance sheet | 194.6 | 213.7 |
Amounts in the balance sheet | ||
Liabilities | 194.6 | 213.7 |
Assets | - | - |
Net asset (-) / liability (+) in the balance sheet | 194.6 | 213.7 |
DKK million | 2025 | 2024 |
Movement during the period in the net asset (-)/ liability (+) | ||
Balance at 1 January | 213.7 | 195.3 |
Recognised in the income statement | 32.5 | 35.1 |
Actuarial gain recognised in other comprehensive income, financial assumptions | -9.7 | 10.6 |
Benefit payments to employees | -13.9 | -19.2 |
Employer contributions | -14.5 | -12.2 |
Other | 0.8 | 0.6 |
Exchange rate adjustment | -14.4 | 3.5 |
Balance at 31 December | 194.6 | 213.7 |
Actuarial assumptions | ||
Actuarial assumptions used for valuation (expressed as weighted averages and in %) | 2025 | 2024 |
Discount rate | 3.7 | 3.9 |
Future salary increases | 2.4 | 3.3 |
Significant actuarial assumptions regarding the determination of the pension obligation are the discount rate and future salary increase. The sensitivity analysis below has been determined based on likely changes in the discount rate and future salary increase occurring at the end of the period.
2025 | 2024 | |||
DKK million | 1%-point increase | 1%-point decrease | 1%-point increase | 1%-point decrease |
Discount rate | -26.1 | 32.0 | -27.5 | 35.0 |
Future salary increases | 23.2 | -18.4 | 24.4 | -17.5 |
DKK million | 2025 | 2024 |
Change in the defined benefit obligations and plan assets | ||
Defined benefit obligations \u2013 movements | ||
Balance at 1 January | 409.5 | 381.5 |
Current service costs | 25.1 | 25.1 |
Interest cost | 15.2 | 17.5 |
Change in plan provisions | 1.7 | - |
Actuarial losses (+)/gains (-) | -7.6 | 10.4 |
Benefits paid | -22.6 | -29.1 |
Settlements | -2.6 | 0.6 |
Other | 0.5 | - |
Exchange rate adjustment | -14.1 | 3.7 |
Balance at 31 December | 405.1 | 409.5 |
DKK million | 2025 | 2024 |
Plan assets \u2013 movements in fair value | ||
Balance at 1 January | 195.8 | 186.2 |
Interest income | 6.5 | 7.6 |
Actuarial losses (-)/gains (+) | 2.1 | -0.4 |
Employer contributions | 27.5 | 26.4 |
Benefits paid | -21.7 | -24.1 |
Exchange rate adjustment | 0.3 | 0.2 |
Balance at 31 December | 210.5 | 195.8 |
The actual return on plan assets in 2025 was a gain of DKK 8.5 million (DKK 7.2 million). |
Categories of plan assets: | ||
DKK million | 2025 | 2024 |
Other* | 210.5 | 195.8 |
Total | 210.5 | 195.8 |
* Plan assets primarily relates to pension plans in Belgium and Germany. The pension plans, including plan assets, are administrated by different insurance companies and funded via Group insurance contracts and life insurance contracts why no further information can be given on categories of plan assets. |
The weighted average duration of the defined benefit obligation is 9.9 years (9.7 years). | ||
DKK million | 2025 | 2024 |
Post-employment benefit plans recognised in income statement | ||
Current service costs | 25.1 | 25.1 |
Interest on net obligation | 8.7 | 9.9 |
Change in plan provisions | 1.1 | - |
Settlements | -2.6 | 0.6 |
Recognised net actuarial gain/loss | 0.2 | -0.5 |
Net income (-)/expense (+) reported in the income statement | 32.5 | 35.1 |
DKK million | 2025 | 2024 |
The income/expenses for defined benefit plans are reported under the following headings in the income statement: | ||
Staff costs | 23.8 | 25.2 |
Financial costs | 8.7 | 9.9 |
Net income (-)/expense (+) reported in the income statement | 32.5 | 35.1 |
Amounts recognised in other comprehensive income | ||
For the post-employement defined benefit plans all actuarial gains and losses are recognised in othercomprehensive income as they occur in accordance with the year-end valuation. | ||
Net actuarial losses (+)/ gains (-) | -9.7 | 11.1 |
Expected contribution next year
Expected contributions to post-employment benefit Plans for the year ending 31 december 2026 amount to DKK 22.8 million.
Defined contribution plans
The Group has certain obligations under defined Contributions plans. Contributions to these plans are determined by provisions in the respective plans. Costs for defined contribution plans charged to the income statement for the year amount to DKK 69.1 million (DKK 74.1 million).
Defined benefit plans in primarily Belgium, Germany, France, indonesia, the Dominican Republic and the US
The Group operates a number of defined contribution plans throughout the world. In a few countries, the Group also operates defined benefit plans, which are effective in primarily Belgium, Germany, France, Indonesia, the Dominican Republic and the US. The defined benefit plans for Belgium total six different step-rate plans covering both blue and white collar employees and one offset defined benefit plan
for Managers. Furthermore, a number of defined contribution plans with minimum guarantee (imposed by law) exists. These plans are insured but the guarantee given by the insurance company does not cover the full guarantee required under the pension law, why these are considered and treated as defined benefit plans. The defined benefit plans for Germany cover employees who entered service before august 1991 and have since then been closed for new employees. Further, a defined benefit plan exist for former agio employees in Germany, where all employees of the company on 1 april 2003 qualify for benefits. The defined benefit plan in France is mandatory for all employees and has no minimum requirements for years of service with the company. The defined benefit plans for Indonesia cover all employees in the form of severance and gratuity in accordance with labour regulation (Labour Law 11/2020). The defined benefit plans for the Dominican Republic are enacted by law and cover all employees with at least three months of service. The defined benefit plans in the US are non-qualified plans that cover a small group of inactive employee benefits which are paid out of corporate assets.
Accounting policies
Under a defined benefit plan, the amount of retirement benefit that will be received by an employee is defined with respect to period of service and final salary. The amount recognised in the balance sheet is the difference between the present value of the defined benefit obliga-tion at the balance sheet date and the fair value of the scheme assets.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obliga-tion is determined by discounting the estimated future cash outflows.
The service cost of providing retirement benefits to employees during the year is charged to operating profit. The costs for the year for defined benefit plans are deter-mined using the projected unit credit method.
Past service costs are recognised immediately in the income statement.
All actuarial gains and losses are recognised immediately in full in the statement of other comprehensive income for the period in which they arise.
Pension assets are only recognised to the extent that the Group is able to derive future economic benefits such as refunds from the plan or reductions of future contribu-tions. The Group\u2019s most significant defined benefit pension plans are financed by payments from Group companies and by employees to funds which are independent of the\u00a0Group.
Contributions for defined contribution plans are reported as expenses in the income statement when they occur.
Post-employment employee benefits
The Group has defined benefit pension plans in a number of subsidiaries, through which the employees are entitled to post-employment benefits based on their pensionable income and the number of years of service.
Provisions for post-employment defined benefit plans are reported based on actuarial valuations. The Group recognises the full amount of actuarial gains and losses in other comprehensive income, i.e. the net pension liability in the balance sheet includes all cumulative actuarial gains and losses.
The Group does not plan for any new defined benefit plans.
Key accounting estimates
Actuarial assumptions
The discount rate is set per country with reference to high quality corporate bond yields of appropriate duration or government bond yields for countries where a deep mar-ket of high quality corporate bonds is not available.
2.2
Staff costs
Remuneration of the Board of Directors
and Executive Board
Total fees to the Board of Directors and Executive Board amounted to DKK 39.5 million (DKK\u00a051.1\u00a0million).
Executive Board
The members of the Executive Management are subject to a notice period of 12-24 months and other Executive Board members to 6-12 months notice.
Remuneration of the members of the Executive Management complies with the principles of the company\u2019s Remuneration Policy.
For the year 2025, the total cost of remuneration for the Executive Board amounts to DKK 32.7 million (DKK 44.4 million).
DKK million | 2025 | 2024 |
Wages and salaries | 1,613.5 | 1,547.7 |
Pensions - defined contribution plans | 69.1 | 74.1 |
Pensions - defined benefit plans | 23.8 | 22.9 |
Social security costs | 234.6 | 237.5 |
Total staff costs for the year | 1,941.0 | 1,882.2 |
Staff cost included in intangible assets | -3.2 | -3.4 |
Change in employee costs included in inventories | -20.4 | 2.1 |
Total staff costs expensed to the income statement | 1,917.4 | 1,880.9 |
DKK million | 2025 | 2024 |
Included in the income statement: | ||
Cost of goods sold | 894.1 | 823.7 |
Staff costs | 1,023.3 | 1,057.2 |
Total included in the income statement | 1,917.4 | 1,880.9 |
Average number of employees in the Group | 9,144 | 9,630 |
Employees per region
(%)
Americas 50% (53%)
Europe 20% (18%)
Rest of world 30% (29%)
Accounting policies
Staff costs comprise wages and salaries as well as payroll
expenses other than production wages, and staff costs capitalised on assets.
Board of Directors
Members of the Board of Directors receive fixed annual
Fees. Remuneration of the members of the Board of Directors may not include any incentive element. Ordinary members receive a fixed annual fee while the Chairman receives multiples thereof. Board members who are also members of a Board Committee as Chairperson or ordinary committee member receive an additional fixed fee reflecting the additional work and responsibility that follows from being on a committee.
Board of Directors DKK thousand | Position | Joined the Board | Left the Board | Board | Committees | Other | Total |
Henrik Brandt | Chairman | Apr 2017 | 1,320 | 440 | - | 1,760 | |
Dianne Neal Blixt | Board member | Feb 2016 | 440 | 385 | - | 825 | |
Anders C. Obel | Board member | Apr 2018 | 440 | 220 | - | 660 | |
Marlene Forsell | Board member | Apr 2019 | 440 | 330 | - | 770 | |
Henrik Amsinck | Board member | Apr 2021 | Apr 2025 | 121 | - | 30 | 151 |
J\u00f6rg Biebernick | Board member | Apr 2024 | 440 | 165 | - | 605 | |
Ricardo Oberlander | Board member | Apr 2025 | 319 | 156 | - | 475 | |
Thomas Thomsen | Employee-elected | Apr 2023 | 440 | - | - | 440 | |
Mark Draper | Employee-elected | Apr 2023 | Oct 2025 | 367 | - | - | 367 |
Karsten Dam Larsen | Employee-elected | Jun 2023 | 440 | - | - | 440 | |
Hanne Malling | Employee-elected | Nov 2025 | 73 | - | - | 73 | |
Total 2025 | 4,840 | 1,696 | 30 | 6,566 | |||
Total 2024 | 4,840 | 1,540 | 110 | 6,490 |
Social security taxes and similar taxes
In addition to the above remuneration to the Board of Directors, the Company may pay social security taxes and similar taxes imposed by non-Danish
In 2025, members of the Board of Directors and the board committees received fixed annual fees in the aggregate amount of DKK 6.6 million (DKK 6.5 million).
DKK 0.2 million (DKK 0.2 million) was paid during 2025
related to social security taxes and similar taxes imposed by non-danish authorities in relation to the
remuneration.
authorities in relation to the remuneration. In 2025, the Company paid DKK 242 thousand compared to DKK\u00a0240\u00a0thousand in 2024.
Remuneration of the Board of Directors
and Executive Board
Total fees to the Board of Directors and Executive Board amounted to DKK 39.5 million (DKK\u00a051.1\u00a0million).
Executive Board
The members of the Executive Management are subject to a notice period of 12-24 months and other Executive Board members to 6-12 months notice.
Remuneration of the members of the Executive Management complies with the principles of the company\u2019s Remuneration Policy.
For the year 2025, the total cost of remuneration for the Executive Board amounts to DKK 32.7 million (DKK 44.4 million).
Board of Directors
Members of the Board of Directors receive fixed annual
Fees. Remuneration of the members of the Board of Directors may not include any incentive element. Ordinary members receive a fixed annual fee while the Chairman receives multiples thereof. Board members who are also members of a Board Committee as Chairperson or ordinary committee member receive an additional fixed fee reflecting the additional work and responsibility that follows from being on a committee.
Board of Directors DKK thousand | Position | Joined the Board | Left the Board | Board | Committees | Other | Total |
Henrik Brandt | Chairman | Apr 2017 | 1,320 | 440 | - | 1,760 | |
Dianne Neal Blixt | Board member | Feb 2016 | 440 | 385 | - | 825 | |
Anders C. Obel | Board member | Apr 2018 | 440 | 220 | - | 660 | |
Marlene Forsell | Board member | Apr 2019 | 440 | 330 | - | 770 | |
Henrik Amsinck | Board member | Apr 2021 | Apr 2025 | 121 | - | 30 | 151 |
J\u00f6rg Biebernick | Board member | Apr 2024 | 440 | 165 | - | 605 | |
Ricardo Oberlander | Board member | Apr 2025 | 319 | 156 | - | 475 | |
Thomas Thomsen | Employee-elected | Apr 2023 | 440 | - | - | 440 | |
Mark Draper | Employee-elected | Apr 2023 | Oct 2025 | 367 | - | - | 367 |
Karsten Dam Larsen | Employee-elected | Jun 2023 | 440 | - | - | 440 | |
Hanne Malling | Employee-elected | Nov 2025 | 73 | - | - | 73 | |
Total 2025 | 4,840 | 1,696 | 30 | 6,566 | |||
Total 2024 | 4,840 | 1,540 | 110 | 6,490 |
Social security taxes and similar taxes
In addition to the above remuneration to the Board of Directors, the Company may pay social security taxes and similar taxes imposed by non-Danish
In 2025, members of the Board of Directors and the board committees received fixed annual fees in the aggregate amount of DKK 6.6 million (DKK 6.5 million).
DKK 0.2 million (DKK 0.2 million) was paid during 2025
related to social security taxes and similar taxes imposed by non-danish authorities in relation to the
remuneration.
authorities in relation to the remuneration. In 2025, the Company paid DKK 242 thousand compared to DKK\u00a0240\u00a0thousand in 2024.
2.3
SHARE-BASED PAYMENTS
Value of the programmes and impact on the income statement | ||||
LTIP 2022 | LTIP 2023 | LTIP 2024 | LTIP 2025 | |
Total PSUs granted | 106,460 | 117,155 | 124,648 | 143,440 |
Fair value of PSUs expected to vest at grant date, DKK million | 13.0 | 11.5 | 10.5 | 12.5 |
Fair value of PSUs expected to vest at 31 December 2025, DKK million | 2.0 | 1.9 | 11.7 | 13.7 |
Recognised in the income statement in 2025, DKK million | - | -5.7 | 4.4 | 4.6 |
Not yet recognised in respect of PSUs expected to vest, DKK million | - | - | 4.5 | 9.1 |
* DKK 3.3 million (DKK 1.1 million) was recognised in staff costs. |
Executive Board | |||||
LTIP 2022 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2024 | 26,819 | 12,931 | 17,999 | 30,649 | 88,398 |
Transferred | - | - | -10,125 | 10,125 | - |
Granted | 2,024 | 976 | 594 | 3,659 | 7,253 |
Forefeited | - | - | - | -299 | -299 |
Adjustment | -24,517 | -11,821 | -7,198 | -37,768 | -81,304 |
Outstanding at 31 December 2024 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Outstanding at 1 January 2025 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Forefeited | - | - | - | -159 | -159 |
Vested | -4,326 | -2,086 | -1,270 | -6,207 | -13,889 |
Outstanding at 31 December 2025 | - | - | - | - | - |
Executive Board | |||||
LTIP 2025 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2025 | - | - | - | - | - |
Granted | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
Outstanding at 31 December 2025 | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
All of the outstanding PSUs at 31 December 2025 are hedged by treasury shares. |
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Applied assumptions at the time of grant | ||||
LTIP 2025 | LTIP 2024 | LTIP 2023 | LTIP 2022 | |
Share price (DKK) | 95.2 | 97.0 | 120.6 | 146.9 |
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
2.4
MANAGEMENT\u2019S HOLDINGS OF STG SHARES
Management\u2019s Holdings of Shares | At the beginning of the year | Additions during the year | Disposals during the year | At the end of the year | Market value1DKK million |
Henrik Brandt | 112,670 | - | - | 112,670 | 10.8 |
Marlene Forsell | 3,250 | - | - | 3,250 | 0.3 |
Dianne Neal Blixt | 1,700 | - | - | 1,700 | 0.2 |
Anders C. Obel | 20,270 | - | - | 20,270 | 1.9 |
J\u00f6rg Biebernick | - | - | - | - | - |
Ricardo Oberlander | - | 1,520 | - | 1,520 | 0.1 |
Karsten Dam Larsen | 1,600 | 5,000 | - | 6,600 | 0.6 |
Hanne Malling | 250 | - | - | 250 | 0.0 |
Thomas Thomsen | 6,000 | 4,000 | - | 10,000 | 1.0 |
Board of Directors in total | 145,740 | 10,520 | - | 156,260 | 14.9 |
Niels Frederiksen | 326,365 | 4,326 | - | 330,691 | 31.6 |
Marianne R\u00f8rslev Bock | 71,372 | 2,086 | - | 73,458 | 7.0 |
R\u00e9gis Broersma | 21,165 | - | -4,930 | 16,235 | 1.6 |
Yulia Lyusina | - | - | - | - | - |
Jesper Madsen | - | - | - | - | - |
Thomas Kolber | - | - | - | - | - |
Executive Board in total | 418,902 | 6,412 | -4,930 | 420,384 | 40.2 |
Total Board of Directors and Executive Board | 564,642 | 16,932 | -4,930 | 576,644 | 55.1 |
1) Calculation of market value is based on the quoted share price of DKK 95.5 at the end of the year. |
5.4
RELATED-PARTY TRANSACTIONS
The Group has had the following transactions with
related parties, income/expense (+/-):
DKK million | 2025 | 2024 |
Caribbean Cigar Holdings Group Co. S.A. | ||
Purchase of products by Scandinavian Tobacco Group | -125.4 | -123.1 |
!Act A/S | ||
Purchase of products by Scan-dinavian Tobacco Group | - | -1.3 |
Sale of services provided by Scandinavian Tobacco Group | - | 1.9 |
The Group has the following balances with
related parties, receivables/payables (+/-):
DKK million | 2025 | 2024 |
Caribbean Cigar Holdings Group Co. S.A. | ||
Payables for products to Scandinavian Tobacco Group | -5.4 | -5.4 |
!Act A/S | ||
Receivables for services provided by Scandinavian Tobacco Group | - | - |
During 2025 Scandinavian Tobacco Group A/S has purchased nil (1,923,388) own shares from Chr. Augustinus Fabrikker A/S at a market value of DKK nil (DKK\u00a0205.3\u00a0million).
Related parties comprise companies controlled by the Augustinus Foundation, key management and the associated companies Caribbean Cigar Holdings Group Co. S.A and !Act A/S.
As per 18 December 2024 the Group acquired the remaining 50% of !Act A/S, and by the end of 2024 the company is included in the Consolidated Financial Statements as a wholly owned subsidiary. Disclosed transactions with !Act A/S for 2024 therefore cover the period 1 January - 18 December 2024.
Key management is Scandinavian Tobacco Group A/S\u2019 Board of Directors and Executive Board as well as management in the controlling companies.
For information on remuneration to the Management
of Scandinavian Tobacco Group A/S, please refer to
note 2.2and note 2.3. For an overview of Group
companies, please refer to note 5.7. There have not
been and there are no loans to key management
personnel in 2025 or 2024.
Dividends to shareholders have not been included in
the above overview. For further information around dividends received from associated companies, please refer to note 4.3.
Ownership and consolidated financial statements
For information concerning major shareholders, please
refer to Shareholder information in the Management Report. No major shareholders have controlling influence on the Group.
Remuneration of the Board of Directors
and Executive Board
Total fees to the Board of Directors and Executive Board amounted to DKK 39.5 million (DKK\u00a051.1\u00a0million).
Executive Board
The members of the Executive Management are subject to a notice period of 12-24 months and other Executive Board members to 6-12 months notice.
Remuneration of the members of the Executive Management complies with the principles of the company\u2019s Remuneration Policy.
For the year 2025, the total cost of remuneration for the Executive Board amounts to DKK 32.7 million (DKK 44.4 million).
Board of Directors
Members of the Board of Directors receive fixed annual
Fees. Remuneration of the members of the Board of Directors may not include any incentive element. Ordinary members receive a fixed annual fee while the Chairman receives multiples thereof. Board members who are also members of a Board Committee as Chairperson or ordinary committee member receive an additional fixed fee reflecting the additional work and responsibility that follows from being on a committee.
Board of Directors DKK thousand | Position | Joined the Board | Left the Board | Board | Committees | Other | Total |
Henrik Brandt | Chairman | Apr 2017 | 1,320 | 440 | - | 1,760 | |
Dianne Neal Blixt | Board member | Feb 2016 | 440 | 385 | - | 825 | |
Anders C. Obel | Board member | Apr 2018 | 440 | 220 | - | 660 | |
Marlene Forsell | Board member | Apr 2019 | 440 | 330 | - | 770 | |
Henrik Amsinck | Board member | Apr 2021 | Apr 2025 | 121 | - | 30 | 151 |
J\u00f6rg Biebernick | Board member | Apr 2024 | 440 | 165 | - | 605 | |
Ricardo Oberlander | Board member | Apr 2025 | 319 | 156 | - | 475 | |
Thomas Thomsen | Employee-elected | Apr 2023 | 440 | - | - | 440 | |
Mark Draper | Employee-elected | Apr 2023 | Oct 2025 | 367 | - | - | 367 |
Karsten Dam Larsen | Employee-elected | Jun 2023 | 440 | - | - | 440 | |
Hanne Malling | Employee-elected | Nov 2025 | 73 | - | - | 73 | |
Total 2025 | 4,840 | 1,696 | 30 | 6,566 | |||
Total 2024 | 4,840 | 1,540 | 110 | 6,490 |
Social security taxes and similar taxes
In addition to the above remuneration to the Board of Directors, the Company may pay social security taxes and similar taxes imposed by non-Danish
In 2025, members of the Board of Directors and the board committees received fixed annual fees in the aggregate amount of DKK 6.6 million (DKK 6.5 million).
DKK 0.2 million (DKK 0.2 million) was paid during 2025
related to social security taxes and similar taxes imposed by non-danish authorities in relation to the
remuneration.
authorities in relation to the remuneration. In 2025, the Company paid DKK 242 thousand compared to DKK\u00a0240\u00a0thousand in 2024.
2.3
SHARE-BASED PAYMENTS
Value of the programmes and impact on the income statement | ||||
LTIP 2022 | LTIP 2023 | LTIP 2024 | LTIP 2025 | |
Total PSUs granted | 106,460 | 117,155 | 124,648 | 143,440 |
Fair value of PSUs expected to vest at grant date, DKK million | 13.0 | 11.5 | 10.5 | 12.5 |
Fair value of PSUs expected to vest at 31 December 2025, DKK million | 2.0 | 1.9 | 11.7 | 13.7 |
Recognised in the income statement in 2025, DKK million | - | -5.7 | 4.4 | 4.6 |
Not yet recognised in respect of PSUs expected to vest, DKK million | - | - | 4.5 | 9.1 |
* DKK 3.3 million (DKK 1.1 million) was recognised in staff costs. |
Executive Board | |||||
LTIP 2022 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2024 | 26,819 | 12,931 | 17,999 | 30,649 | 88,398 |
Transferred | - | - | -10,125 | 10,125 | - |
Granted | 2,024 | 976 | 594 | 3,659 | 7,253 |
Forefeited | - | - | - | -299 | -299 |
Adjustment | -24,517 | -11,821 | -7,198 | -37,768 | -81,304 |
Outstanding at 31 December 2024 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Outstanding at 1 January 2025 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Forefeited | - | - | - | -159 | -159 |
Vested | -4,326 | -2,086 | -1,270 | -6,207 | -13,889 |
Outstanding at 31 December 2025 | - | - | - | - | - |
Executive Board | |||||
LTIP 2025 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2025 | - | - | - | - | - |
Granted | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
Outstanding at 31 December 2025 | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
All of the outstanding PSUs at 31 December 2025 are hedged by treasury shares. |
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Applied assumptions at the time of grant | ||||
LTIP 2025 | LTIP 2024 | LTIP 2023 | LTIP 2022 | |
Share price (DKK) | 95.2 | 97.0 | 120.6 | 146.9 |
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
2.4
MANAGEMENT\u2019S HOLDINGS OF STG SHARES
Management\u2019s Holdings of Shares | At the beginning of the year | Additions during the year | Disposals during the year | At the end of the year | Market value1DKK million |
Henrik Brandt | 112,670 | - | - | 112,670 | 10.8 |
Marlene Forsell | 3,250 | - | - | 3,250 | 0.3 |
Dianne Neal Blixt | 1,700 | - | - | 1,700 | 0.2 |
Anders C. Obel | 20,270 | - | - | 20,270 | 1.9 |
J\u00f6rg Biebernick | - | - | - | - | - |
Ricardo Oberlander | - | 1,520 | - | 1,520 | 0.1 |
Karsten Dam Larsen | 1,600 | 5,000 | - | 6,600 | 0.6 |
Hanne Malling | 250 | - | - | 250 | 0.0 |
Thomas Thomsen | 6,000 | 4,000 | - | 10,000 | 1.0 |
Board of Directors in total | 145,740 | 10,520 | - | 156,260 | 14.9 |
Niels Frederiksen | 326,365 | 4,326 | - | 330,691 | 31.6 |
Marianne R\u00f8rslev Bock | 71,372 | 2,086 | - | 73,458 | 7.0 |
R\u00e9gis Broersma | 21,165 | - | -4,930 | 16,235 | 1.6 |
Yulia Lyusina | - | - | - | - | - |
Jesper Madsen | - | - | - | - | - |
Thomas Kolber | - | - | - | - | - |
Executive Board in total | 418,902 | 6,412 | -4,930 | 420,384 | 40.2 |
Total Board of Directors and Executive Board | 564,642 | 16,932 | -4,930 | 576,644 | 55.1 |
1) Calculation of market value is based on the quoted share price of DKK 95.5 at the end of the year. |
5.4
RELATED-PARTY TRANSACTIONS
The Group has had the following transactions with
related parties, income/expense (+/-):
DKK million | 2025 | 2024 |
Caribbean Cigar Holdings Group Co. S.A. | ||
Purchase of products by Scandinavian Tobacco Group | -125.4 | -123.1 |
!Act A/S | ||
Purchase of products by Scan-dinavian Tobacco Group | - | -1.3 |
Sale of services provided by Scandinavian Tobacco Group | - | 1.9 |
The Group has the following balances with
related parties, receivables/payables (+/-):
DKK million | 2025 | 2024 |
Caribbean Cigar Holdings Group Co. S.A. | ||
Payables for products to Scandinavian Tobacco Group | -5.4 | -5.4 |
!Act A/S | ||
Receivables for services provided by Scandinavian Tobacco Group | - | - |
During 2025 Scandinavian Tobacco Group A/S has purchased nil (1,923,388) own shares from Chr. Augustinus Fabrikker A/S at a market value of DKK nil (DKK\u00a0205.3\u00a0million).
Related parties comprise companies controlled by the Augustinus Foundation, key management and the associated companies Caribbean Cigar Holdings Group Co. S.A and !Act A/S.
As per 18 December 2024 the Group acquired the remaining 50% of !Act A/S, and by the end of 2024 the company is included in the Consolidated Financial Statements as a wholly owned subsidiary. Disclosed transactions with !Act A/S for 2024 therefore cover the period 1 January - 18 December 2024.
Key management is Scandinavian Tobacco Group A/S\u2019 Board of Directors and Executive Board as well as management in the controlling companies.
For information on remuneration to the Management
of Scandinavian Tobacco Group A/S, please refer to
note 2.2and note 2.3. For an overview of Group
companies, please refer to note 5.7. There have not
been and there are no loans to key management
personnel in 2025 or 2024.
Dividends to shareholders have not been included in
the above overview. For further information around dividends received from associated companies, please refer to note 4.3.
Ownership and consolidated financial statements
For information concerning major shareholders, please
refer to Shareholder information in the Management Report. No major shareholders have controlling influence on the Group.
Average number of employees in the Group
9,144
9,630
", "dimensions": { "concept": "ifrs-full:DisclosureOfInformationAboutEmployeesExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__48-1": { "value": "Accounting policies
Staff costs comprise wages and salaries as well as payroll
expenses other than production wages, and staff costs capitalised on assets.
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
Accounting policies
Under a defined benefit plan, the amount of retirement benefit that will be received by an employee is defined with respect to period of service and final salary. The amount recognised in the balance sheet is the difference between the present value of the defined benefit obliga-tion at the balance sheet date and the fair value of the scheme assets.
The defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the defined benefit obliga-tion is determined by discounting the estimated future cash outflows.
The service cost of providing retirement benefits to employees during the year is charged to operating profit. The costs for the year for defined benefit plans are deter-mined using the projected unit credit method.
Past service costs are recognised immediately in the income statement.
All actuarial gains and losses are recognised immediately in full in the statement of other comprehensive income for the period in which they arise.
Pension assets are only recognised to the extent that the Group is able to derive future economic benefits such as refunds from the plan or reductions of future contribu-tions. The Group\u2019s most significant defined benefit pension plans are financed by payments from Group companies and by employees to funds which are independent of the\u00a0Group.
Contributions for defined contribution plans are reported as expenses in the income statement when they occur.
Post-employment employee benefits
The Group has defined benefit pension plans in a number of subsidiaries, through which the employees are entitled to post-employment benefits based on their pensionable income and the number of years of service.
Provisions for post-employment defined benefit plans are reported based on actuarial valuations. The Group recognises the full amount of actuarial gains and losses in other comprehensive income, i.e. the net pension liability in the balance sheet includes all cumulative actuarial gains and losses.
The Group does not plan for any new defined benefit plans.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__55": { "value": "2.3
SHARE-BASED PAYMENTS
Value of the programmes and impact on the income statement | ||||
LTIP 2022 | LTIP 2023 | LTIP 2024 | LTIP 2025 | |
Total PSUs granted | 106,460 | 117,155 | 124,648 | 143,440 |
Fair value of PSUs expected to vest at grant date, DKK million | 13.0 | 11.5 | 10.5 | 12.5 |
Fair value of PSUs expected to vest at 31 December 2025, DKK million | 2.0 | 1.9 | 11.7 | 13.7 |
Recognised in the income statement in 2025, DKK million | - | -5.7 | 4.4 | 4.6 |
Not yet recognised in respect of PSUs expected to vest, DKK million | - | - | 4.5 | 9.1 |
* DKK 3.3 million (DKK 1.1 million) was recognised in staff costs. |
Executive Board | |||||
LTIP 2022 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2024 | 26,819 | 12,931 | 17,999 | 30,649 | 88,398 |
Transferred | - | - | -10,125 | 10,125 | - |
Granted | 2,024 | 976 | 594 | 3,659 | 7,253 |
Forefeited | - | - | - | -299 | -299 |
Adjustment | -24,517 | -11,821 | -7,198 | -37,768 | -81,304 |
Outstanding at 31 December 2024 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Outstanding at 1 January 2025 | 4,326 | 2,086 | 1,270 | 6,366 | 14,048 |
Forefeited | - | - | - | -159 | -159 |
Vested | -4,326 | -2,086 | -1,270 | -6,207 | -13,889 |
Outstanding at 31 December 2025 | - | - | - | - | - |
Executive Board | |||||
LTIP 2025 (number of PSUs) | Niels Frederiksen | Marianne R\u00f8rslev Bock | Other Key Management | Senior Management | Total |
Outstanding at 1 January 2025 | - | - | - | - | - |
Granted | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
Outstanding at 31 December 2025 | 41,216 | 20,440 | 32,932 | 48,852 | 143,440 |
All of the outstanding PSUs at 31 December 2025 are hedged by treasury shares. |
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Applied assumptions at the time of grant | ||||
LTIP 2025 | LTIP 2024 | LTIP 2023 | LTIP 2022 | |
Share price (DKK) | 95.2 | 97.0 | 120.6 | 146.9 |
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
Accounting policies
Scandinavian Tobacco Group operates a number of equity-settled, share-based compensation plans.
The value of services received in exchange for granted
performance-based share units (PSUs) is measured at fair value at the grant date and recognised in the income statement under staff costs over the vesting period with a corresponding increase in equity.
The fair value of granted PSUs is measured at the share price at grant date.
On initial recognition, an estimate is made of the number of PSUs expected to vest. The estimated number is subsequently revised for changes in the number of PSUs expected to vest due to non-market based vesting conditions.
Share-based Incentive Programmes
Scandinavian Tobacco Group has a Long-Term Incentive
Programme (LTIP) for members of the Executive Board
and members of senior management.
Upon vesting, each PSU entitles the holder to receive one share in Scandinavian Tobacco Group at no cost. The actual number of shares vesting may range between 0 and 200% of the grant and is determined by a service period of 3 years and the achievement of certain performance indicators which for LTIP 2022, LTIP 2023 and LTIP 2024 are organic EBITDA growth, ROIC growth, EPS growth and ESG scorecard, and for LTIP 2025 free cashflow before acquis-tions and special items, ROIC and CO2emission reduction.
During 2025, PSUs granted under the LTIP 2022 were vested and the participants received shares at no cost. The shares received corresponded to 15% of the grant, based on the actual achieved performance. Consequently the programme has lapsed.
Under the LTIP programme, new PSUs were granted to participants in 2025. This was the tenth grant following the IPO in 2016.
Prior to vesting, holders of PSUs are not entitled to any of the rights which shareholders hold, except from the right to dividends which will be converted into additional PSUs (both ordinary and extraordinary dividends).
2.5
Special items
DKK million | 2025 | 2024 |
Integration and transactions costs (Mac Baren) | 34.5 | 40.4 |
One Commercial Organisation | 4.3 | 53.5 |
Solution Delivery Organisation | 30.8 | 53.0 |
OneProcess | 130.1 | 132.1 |
Total special items incl. impairment, net costs | 199.7 | 279.0 |
DKK million | 2025 | 2024 |
Specified by line items in the consolidated income statement | ||
Cost of goods sold | 19.1 | 16.4 |
Other external costs | 107.8 | 128.6 |
Staff costs | 72.8 | 134.0 |
Total special items incl. impairment, net costs | 199.7 | 279.0 |
Accounting policies
Special items are used in connection with the presentation of profit or loss for the year to distinguish consolidated EBITDA and EBIT from special items, which by their nature are not related to the Group\u2019s core performance.
Special items are by nature of a significant character and comprise restructuring costs from larger structural and M&A reorganisations, M&A transaction costs, impairment losses, gains or losses from sale of assets and other non-recurring items.
Accounting policies
Special items are used in connection with the presentation of profit or loss for the year to distinguish consolidated EBITDA and EBIT from special items, which by their nature are not related to the Group\u2019s core performance.
2.6
Income and deferred income taxes
DKK million | 2025 | 2024 |
Tax expense | ||
Current income tax | 227.8 | 266.2 |
Deferred income tax | -16.4 | 11.4 |
Total | 211.4 | 277.6 |
Tax is allocated as follows | ||
Tax in the income statement | 208.4 | 279.6 |
Tax in equity - share-based payments | - | - |
Tax on other comprehensive income related to | ||
Actuarial gains and losses on pension obligations | 3.0 | -2.0 |
Total | 211.4 | 277.6 |
Income tax receivable/payable (net) - in the balance sheet | ||
Corporate tax receivables | 143.0 | 97.4 |
Corporate tax payables | 30.4 | 85.1 |
Total (net) | -112.6 | -12.3 |
Effective tax rate
(%)
23.7
Income statement tax expense
DKK million
208.4
DKK million | 2025 | 2024 |
Income tax receivable/payable (net) | ||
Balance at 1 January | -12.3 | 57.0 |
Currency adjustments | -0.1 | 8.3 |
Prior-year tax adjustment | 34.4 | -7.7 |
Tax paid on account in current year | -341.0 | -317.3 |
Received regarding previous years | 93.3 | 117.8 |
Paid regarding previous years | -74.9 | -151.6 |
Acquisition of entities | -5.4 | 7.3 |
Current income tax | 193.4 | 273.9 |
Balance at 31 December | -112.6 | -12.3 |
Deferred tax (net) \u2013 in the balance sheet | ||
Deferred income tax assets | 114.2 | 129.8 |
Deferred income tax liabilities | 701.7 | 742.3 |
Deferred income tax liabilities (net) | 587.5 | 612.5 |
Deferred tax (net) | ||
Balance 1 January | 612.5 | 613.1 |
Currency adjustments | -11.7 | 7.8 |
Acquisition of entities | 3.1 | -19.8 |
Change in deferred tax charge | -16.4 | 11.4 |
Balance at 31 December | 587.5 | 612.5 |
Breakdown of deferred income tax liabilities (net) | ||
Intangible assets | 762.8 | 794.7 |
Property, plant and equipment | 33.2 | 30.7 |
Inventories | -35.6 | -47.2 |
Receivables | -4.1 | -5.9 |
Pensions | -31.0 | -40.0 |
Other liabilities | -30.7 | -17.5 |
Tax losses to be carried forward | -49.0 | -53.2 |
Other | -58.1 | -49.1 |
Total (net) | 587.5 | 612.5 |
Uncertain tax positions
As an international business, the Group is exposed to uncertain tax positions and changes in legislation in the jurisdictions in which it operates. The Group\u2019s uncertain tax positions relate to cross-border transfer pricing, interpretation of new or complex tax legislation and tax arising on the valuation of assets. The assessment of uncertain tax positions is subjective and significant management judgement is required. This judgement is based on interpretation of legislation, management experience and professional advice.
1.2 | 0.5 | |
-12.5 | -4.3 |
Uncertain tax positions are considered separately and the most likely amount is the basis for the calculated provision. The judgements, methods and assumptions are unchanged from the previous year.
Provisions arising from uncertain tax positions reflected in the calculation of tax assets and liabilities are included in current corporate tax liabilities.
It is possible that amounts paid will be different from the amounts provided.
OECD Pillar Two
The Group is within the scope of the OECD Pillar Two model rules, and it applies the IAS 12 exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its GloBE (Global Anti-
Accounting policies
Income taxes
The tax expense for the year comprises current and deferred tax including adjustments to previous years and changes in liability for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income.
Any changes in deferred tax due to changes in tax rates are recognised in the income statement or in other compre-hensive income depending on the original recognition.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year and prior year adjust-ments. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the
Base Erosion Rules) effective tax rate in each jurisdiction and the 15% minimum tax rate.
All entities within the Group have fully met the Safe Harbour requirements under the Pillar Two framework. No top-up tax has been recognised for the financial year ended 31 December 2025.
balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss car-ryforwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.
Key accounting estimates
Management has made estimates in determining the lia-bilities for uncertain tax positions, deferred tax assets and deferred tax liabilities and the extent to which deferred tax assets are recognised. The Group recognises only deferred tax assets if these tax assets can be offset against positive taxable income in the foreseeable future. The estimates are made on the basis of business plans for the forthcoming years.
2.6
Income and deferred income taxes
DKK million | 2025 | 2024 |
Tax expense | ||
Current income tax | 227.8 | 266.2 |
Deferred income tax | -16.4 | 11.4 |
Total | 211.4 | 277.6 |
Tax is allocated as follows | ||
Tax in the income statement | 208.4 | 279.6 |
Tax in equity - share-based payments | - | - |
Tax on other comprehensive income related to | ||
Actuarial gains and losses on pension obligations | 3.0 | -2.0 |
Total | 211.4 | 277.6 |
Income tax receivable/payable (net) - in the balance sheet | ||
Corporate tax receivables | 143.0 | 97.4 |
Corporate tax payables | 30.4 | 85.1 |
Total (net) | -112.6 | -12.3 |
Effective tax rate
(%)
23.7
Income statement tax expense
DKK million
208.4
DKK million | 2025 | 2024 |
Income tax receivable/payable (net) | ||
Balance at 1 January | -12.3 | 57.0 |
Currency adjustments | -0.1 | 8.3 |
Prior-year tax adjustment | 34.4 | -7.7 |
Tax paid on account in current year | -341.0 | -317.3 |
Received regarding previous years | 93.3 | 117.8 |
Paid regarding previous years | -74.9 | -151.6 |
Acquisition of entities | -5.4 | 7.3 |
Current income tax | 193.4 | 273.9 |
Balance at 31 December | -112.6 | -12.3 |
Deferred tax (net) \u2013 in the balance sheet | ||
Deferred income tax assets | 114.2 | 129.8 |
Deferred income tax liabilities | 701.7 | 742.3 |
Deferred income tax liabilities (net) | 587.5 | 612.5 |
Deferred tax (net) | ||
Balance 1 January | 612.5 | 613.1 |
Currency adjustments | -11.7 | 7.8 |
Acquisition of entities | 3.1 | -19.8 |
Change in deferred tax charge | -16.4 | 11.4 |
Balance at 31 December | 587.5 | 612.5 |
Breakdown of deferred income tax liabilities (net) | ||
Intangible assets | 762.8 | 794.7 |
Property, plant and equipment | 33.2 | 30.7 |
Inventories | -35.6 | -47.2 |
Receivables | -4.1 | -5.9 |
Pensions | -31.0 | -40.0 |
Other liabilities | -30.7 | -17.5 |
Tax losses to be carried forward | -49.0 | -53.2 |
Other | -58.1 | -49.1 |
Total (net) | 587.5 | 612.5 |
Uncertain tax positions
As an international business, the Group is exposed to uncertain tax positions and changes in legislation in the jurisdictions in which it operates. The Group\u2019s uncertain tax positions relate to cross-border transfer pricing, interpretation of new or complex tax legislation and tax arising on the valuation of assets. The assessment of uncertain tax positions is subjective and significant management judgement is required. This judgement is based on interpretation of legislation, management experience and professional advice.
1.2 | 0.5 | |
-12.5 | -4.3 |
Uncertain tax positions are considered separately and the most likely amount is the basis for the calculated provision. The judgements, methods and assumptions are unchanged from the previous year.
Provisions arising from uncertain tax positions reflected in the calculation of tax assets and liabilities are included in current corporate tax liabilities.
It is possible that amounts paid will be different from the amounts provided.
OECD Pillar Two
The Group is within the scope of the OECD Pillar Two model rules, and it applies the IAS 12 exception to recognising and disclosing information about deferred tax assets and liabilities related to Pillar Two income taxes.
Under the legislation, the Group is liable to pay a top-up tax for the difference between its GloBE (Global Anti-
Accounting policies
Income taxes
The tax expense for the year comprises current and deferred tax including adjustments to previous years and changes in liability for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income.
Any changes in deferred tax due to changes in tax rates are recognised in the income statement or in other compre-hensive income depending on the original recognition.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year and prior year adjust-ments. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the
Base Erosion Rules) effective tax rate in each jurisdiction and the 15% minimum tax rate.
All entities within the Group have fully met the Safe Harbour requirements under the Pillar Two framework. No top-up tax has been recognised for the financial year ended 31 December 2025.
balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss car-ryforwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.
Key accounting estimates
Management has made estimates in determining the lia-bilities for uncertain tax positions, deferred tax assets and deferred tax liabilities and the extent to which deferred tax assets are recognised. The Group recognises only deferred tax assets if these tax assets can be offset against positive taxable income in the foreseeable future. The estimates are made on the basis of business plans for the forthcoming years.
Income tax receivable/payable (net) - in the balance sheet
Corporate tax receivables
143.0
97.4
Corporate tax payables
30.4
85.1
Total (net)
-112.6
-12.3
Effective tax rate
(%)
23.7
Income statement tax expense
DKK million
208.4
DKK million
2025
2024
Income tax receivable/payable (net)
Balance at 1 January
-12.3
57.0
Currency adjustments
-0.1
8.3
Prior-year tax adjustment
34.4
-7.7
Tax paid on account in current year
-341.0
-317.3
Received regarding previous years
93.3
117.8
Paid regarding previous years
-74.9
-151.6
Acquisition of entities
-5.4
7.3
Current income tax
193.4
273.9
Balance at 31 December
-112.6
-12.3
", "dimensions": { "concept": "ifrs-full:DisclosureOfTaxReceivablesAndPayablesExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__76-1": { "value": "Accounting policies
Income taxes
The tax expense for the year comprises current and deferred tax including adjustments to previous years and changes in liability for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income.
Any changes in deferred tax due to changes in tax rates are recognised in the income statement or in other compre-hensive income depending on the original recognition.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year and prior year adjust-ments. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the
balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss car-ryforwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForIncomeTaxExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__77-1": { "value": "Accounting policies
Income taxes
The tax expense for the year comprises current and deferred tax including adjustments to previous years and changes in liability for uncertain tax positions. Tax is recognised in the income statement, except to the extent that it relates to items recognised in other comprehensive income.
Any changes in deferred tax due to changes in tax rates are recognised in the income statement or in other compre-hensive income depending on the original recognition.
Current tax receivables and liabilities
Current tax receivables and liabilities are recognised in the balance sheet at the amount calculated on the basis of the expected taxable income for the year and prior year adjust-ments. Tax receivables and liabilities are offset if there is a legally enforceable right of set-off and an intention to settle on a net basis or simultaneously.
Deferred tax assets and liabilities
Deferred tax is recognised in respect of all temporary differences between the carrying amount and the tax base of assets and liabilities.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the
balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss car-ryforwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDeferredIncomeTaxExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__81": { "value": "3.1
INTANGIBLE ASSETS
Additions
DKK million
23.7
2025 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Exchange rate adjustment | -338.1 | -163.8 | -9.9 | -28.9 | -0.1 | -540.8 |
Acquisition | - | - | - | - | - | - |
Additions | - | - | 0.8 | - | 22.9 | 23.7 |
Disposals | - | - | -32.9 | -1.2 | - | -34.1 |
Transfers | - | - | 141.3 | - | -141.3 | - |
Accumulated cost at 31 December | 5,072.7 | 5,131.6 | 496.3 | 744.2 | 97.0 | 11,541.8 |
Accumulated amortisation and impairment at 1 January | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Exchange rate adjustment | - | -72.0 | -9.9 | -14.8 | - | -96.7 |
Amortisation | - | 129.3 | 27.0 | 40.7 | - | 197.0 |
Disposals | - | - | -32.2 | -1.2 | - | -33.4 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,128.6 | 316.6 | 399.0 | - | 2,845.1 |
Carrying amount at 31 December | 5,071.8 | 3,003.0 | 179.7 | 345.2 | 97.0 | 8,696.7 |
* By the end of 2025 capitalised internal resources amounts to DKK 18.7 million (DKK 15.5 million).
2024 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,236.5 | 5,131.2 | 384.5 | 731.6 | 183.1 | 11,666.9 |
Exchange rate adjustment | 173.5 | 83.1 | 5.1 | 14.3 | 0.2 | 276.2 |
Acquisition | 0.8 | 81.6 | - | 19.8 | - | 102.2 |
Additions | - | 0.1 | - | 7.6 | 40.6 | 48.3 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Transfers | - | -0.6 | 8.0 | 1.0 | -8.4 | - |
Accumulated cost at 31 December | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Accumulated amortisation and impairment at 1 January | 0.9 | 1,905.1 | 310.1 | 327.6 | - | 2,543.7 |
Exchange rate adjustment | - | 39.2 | 4.9 | 7.5 | - | 51.6 |
Amortisation | - | 127.0 | 17.3 | 39.2 | - | 183.5 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Carrying amount at 31 December | 5,409.9 | 3,224.1 | 65.3 | 400.0 | 215.5 | 9,314.8 |
* By the end of 2024 capitalised internal resources amounts to DKK 15.5 million (DKK 12.1 million).
Accounting policies
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Key accounting estimates
Impairment of intangible assets
The carrying amounts of all intangible assets are reviewed on an annual basis to determine whether there is any indi-cation of impairment other than that expressed by amorti-sation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recov-erable amount. The impairment test includes significant judgments made by Management, such as assumption of
projected future cash flows used in the valuation of the intangible assets in question. Future events could cause Management to conclude that impairment indicators exist and that intangible assets are impaired. Any resulting impairment loss could have a material impact on the financial condition and on the result of operations. Goodwill and trademarks with indefinite useful lifetime are tested annually for impairment. Refer to following sections regarding accounting estimates for these assets.
Goodwill
The main part of the Group\u2019s goodwill is attributable to the merger between Scandinavian Tobacco Group and Swedish Match in 2010, and the subsequent acquisitions of Lane Ltd. (2011), Verellen N.V. (2014), Thompson Cigar (2018), Agio Cigars (2020) and Moderno Opificio del Sigaro Italiano (2021).
Goodwill is tested for impairment annually and if there is an indication of impairment.
The carrying amount of goodwill at 31 December 2025 amounted to DKK 5,071.8 million (DKK 5,409.9 million).
When carrying out the impairment test for goodwill, the Group is seen as several cash generating units split according to the internal segment reporting. The carrying values of the individual cash generating units are compared to the values in use (discounted value of future cash flows). If the carrying values are higher, the difference is charged to the income statement. The
values in use are calculated using a valuation model based on discounted expected future cash flows (DCF-model covering a five-year budget period) based on Management\u2019s projections.
When goodwill was tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for the individual cash generating units and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value per segment.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use. The applied key assumptions, both overall as well as for each individual cash generating unit, are described in the tables below.
DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Total |
2025 | 1,596.4 | 1,341.9 | 2,133.5 | 5,071.8 |
2024 | 1,780.5 | 1,497.4 | 2,132.0 | 5,409.9 |
As per 31 December 2025 the carrying amount of goodwill was allocated to the operating segments as showed in above table.
Key accounting estimates
Impairment test of goodwill
In the annual impairment test of goodwill, an estimate is made to determine how the Group will be able to generate sufficient positive net cash flow in the future to support the value of goodwill, trademarks and other net assets. For the purpose of the annual impairment test of goodwill, the costs and income in each operating segment according to note 2.1have been allocated to each cash generating unit based on either direct allocation or by using relevant
allocation keys. The estimates of the anticipated future net cash flow are based on forecasts, business plans as well as Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices as well as operating cost development for each market in each of the defined cash generating units. The discount rate is assessed based on updated market data. The impairment test includes significant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that goodwill is impaired. Any resulting impairment loss could have a material impact on the financial condi-tion and on the result of operations.
In 2025, as well as in 2024, Management did not identify any impairments.
2024 Applied key assumptions \u2013 Goodwill impairment test | North America Online & Retail | North America Branded & RoW | Europe Branded |
EBITDA Growth An average growth rate of 5.2% in the five-year budget period has been applied for EBITDA for the overall Group (accumulated for the three cash generating units). The growth projection is expected to be reached through growth in the underlying business, driven by price increases across all divisions and product groups, volume growth and opening of new Superstores in the US. Furthermore, volume growth in the Next Generation Product category, cost saving initiatives, and development in acquired businesses will add to the projected growth. | |||
Terminal growth (based on adjusted historical development taking into account expected future development) | 1.0% | 0.0% | 0.0% |
Discount rate after-tax (%) | 8.8% | 8.8% | 7.8% |
Discount rate pre-tax (%) | 10.6% | 11.0% | 9.8% |
Trademarks
The main part of the Group\u2019s trademarks is attributable to the merger between Scandinavian Tobacco Group and Swedish Match in 2010, the acquisition of Lane Ltd. in 2011, Agio Cigars in 2020 and Alec Bradley in 2023. In connection with the merger and the acquisitions, intangible assets were identified and measured at fair value at the date of the merger/acquisition. Strategic trademarks with indefinite useful lives are not amortised but are reviewed annually for impairment. Other trademarks are amortised in a straight line over the expected useful lives.
Assessment of useful economic lives for trademarks \u2013 change in accounting estimates
During the fourth quarter of 2025, Management has reassessed the useful lives of the Group\u2019s strategic trademarks. Historically, a number of trademarks have been classified as having indefinite useful lives, reflecting Management\u2019s expectation that these trademarks would generate net cash inflows for the Group over an unforeseeable period. As part of the implementation of the Group\u2019s new strategic direction, Focus2030, and based on expected future market developments etc., Management now considers it appropriate to classify the majority of these trademarks as having finite useful lives.
As a result, all machine-rolled cigar trademarks and trademarks outside the strategic focus have been reclassified as trademarks with a finite useful life of 25 years and will be amortised on a straight-line basis from 1 January 2026. The four handmade-cigar Power Brands (Macanudo, CAO, Cohiba, and Alec Bradley) will remain classified as having indefinite useful lives.
In accordance with IAS 36, Impairment of assets, and IAS 38, Intangible assets, an impairment test was carried out at the time of reclassification. The impairment test did not give rise to any impairment of the affected trademarks.
The annual amortisation resulting from this change is estimated at approximately DKK 73 million commencing 1 January 2026.
The carrying amount of trademarks at 31 December 2025 amounted to DKK 3,003.0 million (DKK\u00a03,224.1\u00a0million).
As per 31 December the carrying amount of trademarks with indefinite useful lives was allocated to the reportable segments as follows:
DKK million | North America Online & Retail | North America Branded & Ro | Europe Branded | Total |
2025 | 173.9 | 292.6 | 17.9 | 484.4 |
2024 | 252.6 | 1,173.5 | 973.3 | 2,399.4 |
Trademarks with the highest carrying amounts are listed below. | ||||
Carrying amount | ||||
DKK million | Trademarks allocated segment* | Remaining amortisation period | 2025 | 2024 |
Captain Black and Bugler | 1,2 | 25 years / 5 years | 642.3 | 711.3 |
Caf\u00e9 Cr\u00e8me/Signature | 2,3 | 25 years | 482.4 | 482.4 |
Mehari\u2019s | 2,3 | 25 years | 357.8 | 357.4 |
Alec Bradley | 1,2,3 | Indefinite | 291.3 | 291.3 |
La Paz | 2,3 | 25 years | 215.2 | 215.2 |
Other trademarks | 1,2,3 | Indefinite / 1-25 years | 1,014.0 | 1,166.5 |
Total | 3,003.0 | 3,224.1 | ||
* 1) North America Online & Retail, 2) North America Branded & Rest of World , 3) Europe Branded |
Trademarks with indefinite useful lives are tested for
impairment annually and whenever there is an indication of impairment.
When carrying out the impairment test for trademarks with indefinite useful lives, each trademark is seen as a separate asset capable of generating cash flow. The carrying value of each trademark is compared to it's value in use (discounted value of future cash flows). If the carrying value is higher, the difference is charged to the income statement.
The value in use for each trademark is calculated by using a valuation model based on discounted expected future cash flows (Multi-period Excess Earnings-Method (\u201cMEEM\u201d) in an adapted form, covering a five-year budget period) based on Management\u2019s projections.
When trademarks with indefinite useful lives were tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for each of the individual trademarks and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value for each individual trademark.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use.
Management has used a discount rate (WACC after tax) between 8.5% and 8.6% (pre-tax WACC between 10.4% and 10.6%). Terminal growth in EBITDA is set at 1.0% and is based on historical development and expected future development.
Key accounting estimates
Impairment test of trademarks with indefinite useful lives
In the annual impairment test of trademarks with indefinite useful lives, an estimate is made to determine how the trademarks will be able to generate sufficient positive net cash flow in the future to support the value of the trademark in question. The estimates of the anticipated future net cash flow are based on Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices for each trademark. The impairment test includes sig-nificant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that some trademarks are impaired.
In 2025, as well as in 2024, Management did not identify any impairments.
Other trademarks with finite useful lives and other intangible assets
Acquired trademarks with a finite useful lifetime and other intangible assets are in general amortised over their useful lives according to the Group\u2019s accounting principles. The trademarks and other intangible assets are tested for impairment when circumstances indicate that the value might be impaired.
In 2025, as well as in 2024, Management did not identify any indications of impairment.
3.1
INTANGIBLE ASSETS
Additions
DKK million
23.7
2025 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Exchange rate adjustment | -338.1 | -163.8 | -9.9 | -28.9 | -0.1 | -540.8 |
Acquisition | - | - | - | - | - | - |
Additions | - | - | 0.8 | - | 22.9 | 23.7 |
Disposals | - | - | -32.9 | -1.2 | - | -34.1 |
Transfers | - | - | 141.3 | - | -141.3 | - |
Accumulated cost at 31 December | 5,072.7 | 5,131.6 | 496.3 | 744.2 | 97.0 | 11,541.8 |
Accumulated amortisation and impairment at 1 January | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Exchange rate adjustment | - | -72.0 | -9.9 | -14.8 | - | -96.7 |
Amortisation | - | 129.3 | 27.0 | 40.7 | - | 197.0 |
Disposals | - | - | -32.2 | -1.2 | - | -33.4 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,128.6 | 316.6 | 399.0 | - | 2,845.1 |
Carrying amount at 31 December | 5,071.8 | 3,003.0 | 179.7 | 345.2 | 97.0 | 8,696.7 |
* By the end of 2025 capitalised internal resources amounts to DKK 18.7 million (DKK 15.5 million).
2024 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,236.5 | 5,131.2 | 384.5 | 731.6 | 183.1 | 11,666.9 |
Exchange rate adjustment | 173.5 | 83.1 | 5.1 | 14.3 | 0.2 | 276.2 |
Acquisition | 0.8 | 81.6 | - | 19.8 | - | 102.2 |
Additions | - | 0.1 | - | 7.6 | 40.6 | 48.3 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Transfers | - | -0.6 | 8.0 | 1.0 | -8.4 | - |
Accumulated cost at 31 December | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Accumulated amortisation and impairment at 1 January | 0.9 | 1,905.1 | 310.1 | 327.6 | - | 2,543.7 |
Exchange rate adjustment | - | 39.2 | 4.9 | 7.5 | - | 51.6 |
Amortisation | - | 127.0 | 17.3 | 39.2 | - | 183.5 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Carrying amount at 31 December | 5,409.9 | 3,224.1 | 65.3 | 400.0 | 215.5 | 9,314.8 |
* By the end of 2024 capitalised internal resources amounts to DKK 15.5 million (DKK 12.1 million).
Key accounting estimates
Impairment of intangible assets
The carrying amounts of all intangible assets are reviewed on an annual basis to determine whether there is any indi-cation of impairment other than that expressed by amorti-sation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recov-erable amount. The impairment test includes significant judgments made by Management, such as assumption of
projected future cash flows used in the valuation of the intangible assets in question. Future events could cause Management to conclude that impairment indicators exist and that intangible assets are impaired. Any resulting impairment loss could have a material impact on the financial condition and on the result of operations. Goodwill and trademarks with indefinite useful lifetime are tested annually for impairment. Refer to following sections regarding accounting estimates for these assets.
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Goodwill
The main part of the Group\u2019s goodwill is attributable to the merger between Scandinavian Tobacco Group and Swedish Match in 2010, and the subsequent acquisitions of Lane Ltd. (2011), Verellen N.V. (2014), Thompson Cigar (2018), Agio Cigars (2020) and Moderno Opificio del Sigaro Italiano (2021).
Goodwill is tested for impairment annually and if there is an indication of impairment.
The carrying amount of goodwill at 31 December 2025 amounted to DKK 5,071.8 million (DKK 5,409.9 million).
When carrying out the impairment test for goodwill, the Group is seen as several cash generating units split according to the internal segment reporting. The carrying values of the individual cash generating units are compared to the values in use (discounted value of future cash flows). If the carrying values are higher, the difference is charged to the income statement. The
values in use are calculated using a valuation model based on discounted expected future cash flows (DCF-model covering a five-year budget period) based on Management\u2019s projections.
When goodwill was tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for the individual cash generating units and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value per segment.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use. The applied key assumptions, both overall as well as for each individual cash generating unit, are described in the tables below.
DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Total |
2025 | 1,596.4 | 1,341.9 | 2,133.5 | 5,071.8 |
2024 | 1,780.5 | 1,497.4 | 2,132.0 | 5,409.9 |
As per 31 December 2025 the carrying amount of goodwill was allocated to the operating segments as showed in above table.
Key accounting estimates
Impairment test of goodwill
In the annual impairment test of goodwill, an estimate is made to determine how the Group will be able to generate sufficient positive net cash flow in the future to support the value of goodwill, trademarks and other net assets. For the purpose of the annual impairment test of goodwill, the costs and income in each operating segment according to note 2.1have been allocated to each cash generating unit based on either direct allocation or by using relevant
allocation keys. The estimates of the anticipated future net cash flow are based on forecasts, business plans as well as Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices as well as operating cost development for each market in each of the defined cash generating units. The discount rate is assessed based on updated market data. The impairment test includes significant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that goodwill is impaired. Any resulting impairment loss could have a material impact on the financial condi-tion and on the result of operations.
In 2025, as well as in 2024, Management did not identify any impairments.
2024 Applied key assumptions \u2013 Goodwill impairment test | North America Online & Retail | North America Branded & RoW | Europe Branded |
EBITDA Growth An average growth rate of 5.2% in the five-year budget period has been applied for EBITDA for the overall Group (accumulated for the three cash generating units). The growth projection is expected to be reached through growth in the underlying business, driven by price increases across all divisions and product groups, volume growth and opening of new Superstores in the US. Furthermore, volume growth in the Next Generation Product category, cost saving initiatives, and development in acquired businesses will add to the projected growth. | |||
Terminal growth (based on adjusted historical development taking into account expected future development) | 1.0% | 0.0% | 0.0% |
Discount rate after-tax (%) | 8.8% | 8.8% | 7.8% |
Discount rate pre-tax (%) | 10.6% | 11.0% | 9.8% |
Trademarks
The main part of the Group\u2019s trademarks is attributable to the merger between Scandinavian Tobacco Group and Swedish Match in 2010, the acquisition of Lane Ltd. in 2011, Agio Cigars in 2020 and Alec Bradley in 2023. In connection with the merger and the acquisitions, intangible assets were identified and measured at fair value at the date of the merger/acquisition. Strategic trademarks with indefinite useful lives are not amortised but are reviewed annually for impairment. Other trademarks are amortised in a straight line over the expected useful lives.
Assessment of useful economic lives for trademarks \u2013 change in accounting estimates
During the fourth quarter of 2025, Management has reassessed the useful lives of the Group\u2019s strategic trademarks. Historically, a number of trademarks have been classified as having indefinite useful lives, reflecting Management\u2019s expectation that these trademarks would generate net cash inflows for the Group over an unforeseeable period. As part of the implementation of the Group\u2019s new strategic direction, Focus2030, and based on expected future market developments etc., Management now considers it appropriate to classify the majority of these trademarks as having finite useful lives.
As a result, all machine-rolled cigar trademarks and trademarks outside the strategic focus have been reclassified as trademarks with a finite useful life of 25 years and will be amortised on a straight-line basis from 1 January 2026. The four handmade-cigar Power Brands (Macanudo, CAO, Cohiba, and Alec Bradley) will remain classified as having indefinite useful lives.
In accordance with IAS 36, Impairment of assets, and IAS 38, Intangible assets, an impairment test was carried out at the time of reclassification. The impairment test did not give rise to any impairment of the affected trademarks.
The annual amortisation resulting from this change is estimated at approximately DKK 73 million commencing 1 January 2026.
The carrying amount of trademarks at 31 December 2025 amounted to DKK 3,003.0 million (DKK\u00a03,224.1\u00a0million).
As per 31 December the carrying amount of trademarks with indefinite useful lives was allocated to the reportable segments as follows:
DKK million | North America Online & Retail | North America Branded & Ro | Europe Branded | Total |
2025 | 173.9 | 292.6 | 17.9 | 484.4 |
2024 | 252.6 | 1,173.5 | 973.3 | 2,399.4 |
Trademarks with the highest carrying amounts are listed below. | ||||
Carrying amount | ||||
DKK million | Trademarks allocated segment* | Remaining amortisation period | 2025 | 2024 |
Captain Black and Bugler | 1,2 | 25 years / 5 years | 642.3 | 711.3 |
Caf\u00e9 Cr\u00e8me/Signature | 2,3 | 25 years | 482.4 | 482.4 |
Mehari\u2019s | 2,3 | 25 years | 357.8 | 357.4 |
Alec Bradley | 1,2,3 | Indefinite | 291.3 | 291.3 |
La Paz | 2,3 | 25 years | 215.2 | 215.2 |
Other trademarks | 1,2,3 | Indefinite / 1-25 years | 1,014.0 | 1,166.5 |
Total | 3,003.0 | 3,224.1 | ||
* 1) North America Online & Retail, 2) North America Branded & Rest of World , 3) Europe Branded |
Trademarks with indefinite useful lives are tested for
impairment annually and whenever there is an indication of impairment.
When carrying out the impairment test for trademarks with indefinite useful lives, each trademark is seen as a separate asset capable of generating cash flow. The carrying value of each trademark is compared to it's value in use (discounted value of future cash flows). If the carrying value is higher, the difference is charged to the income statement.
The value in use for each trademark is calculated by using a valuation model based on discounted expected future cash flows (Multi-period Excess Earnings-Method (\u201cMEEM\u201d) in an adapted form, covering a five-year budget period) based on Management\u2019s projections.
When trademarks with indefinite useful lives were tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for each of the individual trademarks and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value for each individual trademark.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use.
Management has used a discount rate (WACC after tax) between 8.5% and 8.6% (pre-tax WACC between 10.4% and 10.6%). Terminal growth in EBITDA is set at 1.0% and is based on historical development and expected future development.
Key accounting estimates
Impairment test of trademarks with indefinite useful lives
In the annual impairment test of trademarks with indefinite useful lives, an estimate is made to determine how the trademarks will be able to generate sufficient positive net cash flow in the future to support the value of the trademark in question. The estimates of the anticipated future net cash flow are based on Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices for each trademark. The impairment test includes sig-nificant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that some trademarks are impaired.
In 2025, as well as in 2024, Management did not identify any impairments.
Other trademarks with finite useful lives and other intangible assets
Acquired trademarks with a finite useful lifetime and other intangible assets are in general amortised over their useful lives according to the Group\u2019s accounting principles. The trademarks and other intangible assets are tested for impairment when circumstances indicate that the value might be impaired.
In 2025, as well as in 2024, Management did not identify any indications of impairment.
3.1
INTANGIBLE ASSETS
Additions
DKK million
23.7
2025 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Exchange rate adjustment | -338.1 | -163.8 | -9.9 | -28.9 | -0.1 | -540.8 |
Acquisition | - | - | - | - | - | - |
Additions | - | - | 0.8 | - | 22.9 | 23.7 |
Disposals | - | - | -32.9 | -1.2 | - | -34.1 |
Transfers | - | - | 141.3 | - | -141.3 | - |
Accumulated cost at 31 December | 5,072.7 | 5,131.6 | 496.3 | 744.2 | 97.0 | 11,541.8 |
Accumulated amortisation and impairment at 1 January | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Exchange rate adjustment | - | -72.0 | -9.9 | -14.8 | - | -96.7 |
Amortisation | - | 129.3 | 27.0 | 40.7 | - | 197.0 |
Disposals | - | - | -32.2 | -1.2 | - | -33.4 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,128.6 | 316.6 | 399.0 | - | 2,845.1 |
Carrying amount at 31 December | 5,071.8 | 3,003.0 | 179.7 | 345.2 | 97.0 | 8,696.7 |
* By the end of 2025 capitalised internal resources amounts to DKK 18.7 million (DKK 15.5 million).
2024 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,236.5 | 5,131.2 | 384.5 | 731.6 | 183.1 | 11,666.9 |
Exchange rate adjustment | 173.5 | 83.1 | 5.1 | 14.3 | 0.2 | 276.2 |
Acquisition | 0.8 | 81.6 | - | 19.8 | - | 102.2 |
Additions | - | 0.1 | - | 7.6 | 40.6 | 48.3 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Transfers | - | -0.6 | 8.0 | 1.0 | -8.4 | - |
Accumulated cost at 31 December | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Accumulated amortisation and impairment at 1 January | 0.9 | 1,905.1 | 310.1 | 327.6 | - | 2,543.7 |
Exchange rate adjustment | - | 39.2 | 4.9 | 7.5 | - | 51.6 |
Amortisation | - | 127.0 | 17.3 | 39.2 | - | 183.5 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Carrying amount at 31 December | 5,409.9 | 3,224.1 | 65.3 | 400.0 | 215.5 | 9,314.8 |
* By the end of 2024 capitalised internal resources amounts to DKK 15.5 million (DKK 12.1 million).
Key accounting estimates
Impairment of intangible assets
The carrying amounts of all intangible assets are reviewed on an annual basis to determine whether there is any indi-cation of impairment other than that expressed by amorti-sation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recov-erable amount. The impairment test includes significant judgments made by Management, such as assumption of
projected future cash flows used in the valuation of the intangible assets in question. Future events could cause Management to conclude that impairment indicators exist and that intangible assets are impaired. Any resulting impairment loss could have a material impact on the financial condition and on the result of operations. Goodwill and trademarks with indefinite useful lifetime are tested annually for impairment. Refer to following sections regarding accounting estimates for these assets.
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Goodwill
The main part of the Group\u2019s goodwill is attributable to the merger between Scandinavian Tobacco Group and Swedish Match in 2010, and the subsequent acquisitions of Lane Ltd. (2011), Verellen N.V. (2014), Thompson Cigar (2018), Agio Cigars (2020) and Moderno Opificio del Sigaro Italiano (2021).
Goodwill is tested for impairment annually and if there is an indication of impairment.
The carrying amount of goodwill at 31 December 2025 amounted to DKK 5,071.8 million (DKK 5,409.9 million).
When carrying out the impairment test for goodwill, the Group is seen as several cash generating units split according to the internal segment reporting. The carrying values of the individual cash generating units are compared to the values in use (discounted value of future cash flows). If the carrying values are higher, the difference is charged to the income statement. The
values in use are calculated using a valuation model based on discounted expected future cash flows (DCF-model covering a five-year budget period) based on Management\u2019s projections.
When goodwill was tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for the individual cash generating units and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value per segment.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use. The applied key assumptions, both overall as well as for each individual cash generating unit, are described in the tables below.
DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Total |
2025 | 1,596.4 | 1,341.9 | 2,133.5 | 5,071.8 |
2024 | 1,780.5 | 1,497.4 | 2,132.0 | 5,409.9 |
As per 31 December 2025 the carrying amount of goodwill was allocated to the operating segments as showed in above table.
Key accounting estimates
Impairment test of goodwill
In the annual impairment test of goodwill, an estimate is made to determine how the Group will be able to generate sufficient positive net cash flow in the future to support the value of goodwill, trademarks and other net assets. For the purpose of the annual impairment test of goodwill, the costs and income in each operating segment according to note 2.1have been allocated to each cash generating unit based on either direct allocation or by using relevant
allocation keys. The estimates of the anticipated future net cash flow are based on forecasts, business plans as well as Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices as well as operating cost development for each market in each of the defined cash generating units. The discount rate is assessed based on updated market data. The impairment test includes significant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that goodwill is impaired. Any resulting impairment loss could have a material impact on the financial condi-tion and on the result of operations.
In 2025, as well as in 2024, Management did not identify any impairments.
2024 Applied key assumptions \u2013 Goodwill impairment test | North America Online & Retail | North America Branded & RoW | Europe Branded |
EBITDA Growth An average growth rate of 5.2% in the five-year budget period has been applied for EBITDA for the overall Group (accumulated for the three cash generating units). The growth projection is expected to be reached through growth in the underlying business, driven by price increases across all divisions and product groups, volume growth and opening of new Superstores in the US. Furthermore, volume growth in the Next Generation Product category, cost saving initiatives, and development in acquired businesses will add to the projected growth. | |||
Terminal growth (based on adjusted historical development taking into account expected future development) | 1.0% | 0.0% | 0.0% |
Discount rate after-tax (%) | 8.8% | 8.8% | 7.8% |
Discount rate pre-tax (%) | 10.6% | 11.0% | 9.8% |
3.1
INTANGIBLE ASSETS
Additions
DKK million
23.7
2025 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Exchange rate adjustment | -338.1 | -163.8 | -9.9 | -28.9 | -0.1 | -540.8 |
Acquisition | - | - | - | - | - | - |
Additions | - | - | 0.8 | - | 22.9 | 23.7 |
Disposals | - | - | -32.9 | -1.2 | - | -34.1 |
Transfers | - | - | 141.3 | - | -141.3 | - |
Accumulated cost at 31 December | 5,072.7 | 5,131.6 | 496.3 | 744.2 | 97.0 | 11,541.8 |
Accumulated amortisation and impairment at 1 January | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Exchange rate adjustment | - | -72.0 | -9.9 | -14.8 | - | -96.7 |
Amortisation | - | 129.3 | 27.0 | 40.7 | - | 197.0 |
Disposals | - | - | -32.2 | -1.2 | - | -33.4 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,128.6 | 316.6 | 399.0 | - | 2,845.1 |
Carrying amount at 31 December | 5,071.8 | 3,003.0 | 179.7 | 345.2 | 97.0 | 8,696.7 |
* By the end of 2025 capitalised internal resources amounts to DKK 18.7 million (DKK 15.5 million).
2024 DKK million | Goodwill | Trade-marks | IT soft-ware | Other in-tangible assets | Intangible assets under construction* | Total |
Accumulated cost at 1 January | 5,236.5 | 5,131.2 | 384.5 | 731.6 | 183.1 | 11,666.9 |
Exchange rate adjustment | 173.5 | 83.1 | 5.1 | 14.3 | 0.2 | 276.2 |
Acquisition | 0.8 | 81.6 | - | 19.8 | - | 102.2 |
Additions | - | 0.1 | - | 7.6 | 40.6 | 48.3 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Transfers | - | -0.6 | 8.0 | 1.0 | -8.4 | - |
Accumulated cost at 31 December | 5,410.8 | 5,295.4 | 397.0 | 774.3 | 215.5 | 12,093.0 |
Accumulated amortisation and impairment at 1 January | 0.9 | 1,905.1 | 310.1 | 327.6 | - | 2,543.7 |
Exchange rate adjustment | - | 39.2 | 4.9 | 7.5 | - | 51.6 |
Amortisation | - | 127.0 | 17.3 | 39.2 | - | 183.5 |
Disposals | - | - | -0.6 | - | - | -0.6 |
Accumulated amortisation and impairment at 31 December | 0.9 | 2,071.3 | 331.7 | 374.3 | - | 2,778.2 |
Carrying amount at 31 December | 5,409.9 | 3,224.1 | 65.3 | 400.0 | 215.5 | 9,314.8 |
* By the end of 2024 capitalised internal resources amounts to DKK 15.5 million (DKK 12.1 million).
Accounting policies
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Key accounting estimates
Impairment of intangible assets
The carrying amounts of all intangible assets are reviewed on an annual basis to determine whether there is any indi-cation of impairment other than that expressed by amorti-sation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recov-erable amount. The impairment test includes significant judgments made by Management, such as assumption of
projected future cash flows used in the valuation of the intangible assets in question. Future events could cause Management to conclude that impairment indicators exist and that intangible assets are impaired. Any resulting impairment loss could have a material impact on the financial condition and on the result of operations. Goodwill and trademarks with indefinite useful lifetime are tested annually for impairment. Refer to following sections regarding accounting estimates for these assets.
Goodwill
The main part of the Group\u2019s goodwill is attributable to the merger between Scandinavian Tobacco Group and Swedish Match in 2010, and the subsequent acquisitions of Lane Ltd. (2011), Verellen N.V. (2014), Thompson Cigar (2018), Agio Cigars (2020) and Moderno Opificio del Sigaro Italiano (2021).
Goodwill is tested for impairment annually and if there is an indication of impairment.
The carrying amount of goodwill at 31 December 2025 amounted to DKK 5,071.8 million (DKK 5,409.9 million).
When carrying out the impairment test for goodwill, the Group is seen as several cash generating units split according to the internal segment reporting. The carrying values of the individual cash generating units are compared to the values in use (discounted value of future cash flows). If the carrying values are higher, the difference is charged to the income statement. The
values in use are calculated using a valuation model based on discounted expected future cash flows (DCF-model covering a five-year budget period) based on Management\u2019s projections.
When goodwill was tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for the individual cash generating units and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value per segment.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use. The applied key assumptions, both overall as well as for each individual cash generating unit, are described in the tables below.
DKK million | North America Online & Retail | North America Branded & RoW | Europe Branded | Total |
2025 | 1,596.4 | 1,341.9 | 2,133.5 | 5,071.8 |
2024 | 1,780.5 | 1,497.4 | 2,132.0 | 5,409.9 |
As per 31 December 2025 the carrying amount of goodwill was allocated to the operating segments as showed in above table.
Key accounting estimates
Impairment test of goodwill
In the annual impairment test of goodwill, an estimate is made to determine how the Group will be able to generate sufficient positive net cash flow in the future to support the value of goodwill, trademarks and other net assets. For the purpose of the annual impairment test of goodwill, the costs and income in each operating segment according to note 2.1have been allocated to each cash generating unit based on either direct allocation or by using relevant
allocation keys. The estimates of the anticipated future net cash flow are based on forecasts, business plans as well as Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices as well as operating cost development for each market in each of the defined cash generating units. The discount rate is assessed based on updated market data. The impairment test includes significant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that goodwill is impaired. Any resulting impairment loss could have a material impact on the financial condi-tion and on the result of operations.
In 2025, as well as in 2024, Management did not identify any impairments.
2024 Applied key assumptions \u2013 Goodwill impairment test | North America Online & Retail | North America Branded & RoW | Europe Branded |
EBITDA Growth An average growth rate of 5.2% in the five-year budget period has been applied for EBITDA for the overall Group (accumulated for the three cash generating units). The growth projection is expected to be reached through growth in the underlying business, driven by price increases across all divisions and product groups, volume growth and opening of new Superstores in the US. Furthermore, volume growth in the Next Generation Product category, cost saving initiatives, and development in acquired businesses will add to the projected growth. | |||
Terminal growth (based on adjusted historical development taking into account expected future development) | 1.0% | 0.0% | 0.0% |
Discount rate after-tax (%) | 8.8% | 8.8% | 7.8% |
Discount rate pre-tax (%) | 10.6% | 11.0% | 9.8% |
Trademarks with indefinite useful lives are tested for
impairment annually and whenever there is an indication of impairment.
When carrying out the impairment test for trademarks with indefinite useful lives, each trademark is seen as a separate asset capable of generating cash flow. The carrying value of each trademark is compared to it's value in use (discounted value of future cash flows). If the carrying value is higher, the difference is charged to the income statement.
The value in use for each trademark is calculated by using a valuation model based on discounted expected future cash flows (Multi-period Excess Earnings-Method (\u201cMEEM\u201d) in an adapted form, covering a five-year budget period) based on Management\u2019s projections.
When trademarks with indefinite useful lives were tested for impairment in 2025 (and 2024), the value in use exceeded the carrying value for each of the individual trademarks and no basis for impairment was found.
When performing sensitivity analysis by increasing/lowering the discount rate or terminal growth or EBITDA growth by 1 percentage point the value in use still exceeded the carrying value for each individual trademark.
EBITDA growth in the budget period, terminal growth and discount rate constitute the key assumptions in calculating the value in use.
Management has used a discount rate (WACC after tax) between 8.5% and 8.6% (pre-tax WACC between 10.4% and 10.6%). Terminal growth in EBITDA is set at 1.0% and is based on historical development and expected future development.
Key accounting estimates
Impairment test of trademarks with indefinite useful lives
In the annual impairment test of trademarks with indefinite useful lives, an estimate is made to determine how the trademarks will be able to generate sufficient positive net cash flow in the future to support the value of the trademark in question. The estimates of the anticipated future net cash flow are based on Management\u2019s projections for the coming years. Contribution expectations are based upon projections made on the development in volume, average sales and cost prices for each trademark. The impairment test includes sig-nificant judgments made by Management and future events could cause Management to conclude that impairment indicators exist and that some trademarks are impaired.
In 2025, as well as in 2024, Management did not identify any impairments.
Other trademarks with finite useful lives and other intangible assets
Acquired trademarks with a finite useful lifetime and other intangible assets are in general amortised over their useful lives according to the Group\u2019s accounting principles. The trademarks and other intangible assets are tested for impairment when circumstances indicate that the value might be impaired.
In 2025, as well as in 2024, Management did not identify any indications of impairment.
3.2
PROPERTY, PLANT AND EQUIPMENT
2025 DKK million | Land and buildings | Plant and machinery | Equipment, tools and fixtures | Leasehold improve-ments | Construc-tion in progress | Total |
Accumulated cost at 1 January | 1,143.5 | 912.8 | 295.3 | 94.5 | 100.2 | 2,546.3 |
Exchange rate adjustment | -60.6 | -26.2 | -24.6 | -8.5 | -8.5 | -128.4 |
Acquisition | - | - | - | - | - | - |
Additions | 2.9 | 4.3 | 2.5 | 2.9 | 145.5 | 158.1 |
Disposals | -29.7 | -15.4 | -18.4 | -3.2 | -3.7 | -70.4 |
Transfers | -12.7 | -46.3 | 161.0 | 21.2 | -123.2 | - |
Accumulated cost at 31 December | 1,043.4 | 829.2 | 415.8 | 106.9 | 110.3 | 2,505.6 |
Accumulated depreciation and impairment at 1 January | 312.0 | 405.5 | 128.4 | 35.9 | 0.3 | 882.1 |
Exchange rate adjustment | -11.7 | -14.0 | -9.5 | -3.5 | - | -38.7 |
Depreciation | 39.6 | 85.9 | 27.6 | 11.4 | - | 164.5 |
Disposals | -4.3 | -15.4 | -18.0 | -3.1 | - | -40.8 |
Impairment | - | - | - | - | - | - |
Transfers | -40.7 | -76.9 | 117.6 | - | - | - |
Accumulated amortisation and impairment at 31 December | 294.9 | 385.1 | 246.1 | 40.7 | 0.3 | 967.1 |
Carrying amount at 31 December | 748.5 | 444.1 | 169.7 | 66.2 | 110.0 | 1,538.5 |
2024 DKK million | Land and buildings | Plant and machinery | Equipment, tools and fixtures | Leasehold improve-ments | Construc-tion in progress | Total |
Accumulated cost at 1 January | 971.8 | 724.5 | 296.4 | 81.0 | 196.8 | 2,270.5 |
Exchange rate adjustment | 26.3 | 7.2 | 12.1 | 4.2 | 4.8 | 54.6 |
Acquisition | 19.5 | 70.9 | - | - | 1.7 | 92.1 |
Additions | 1.2 | 6.8 | 5.7 | 1.0 | 201.3 | 216.0 |
Disposals | -0.6 | -47.3 | -37.0 | -0.9 | -1.1 | -86.9 |
Transfers | 125.3 | 150.7 | 18.1 | 9.2 | -303.3 | - |
Accumulated cost at 31 December | 1,143.5 | 912.8 | 295.3 | 94.5 | 100.2 | 2,546.3 |
Accumulated depreciation and impairment at 1 January | 267.9 | 359.4 | 142.4 | 25.4 | 0.3 | 795.4 |
Exchange rate adjustment | 3.9 | 4.2 | 4.7 | 1.7 | - | 14.5 |
Depreciation | 40.8 | 78.6 | 24.7 | 9.7 | - | 153.8 |
Disposals | -0.6 | -46.1 | -36.1 | -0.9 | - | -83.7 |
Impairment | - | 2.1 | - | - | - | 2.1 |
Transfers | - | 7.3 | -7.3 | - | - | - |
Accumulated amortisation and impairment at 31 December | 312.0 | 405.5 | 128.4 | 35.9 | 0.3 | 882.1 |
Carrying amount at 31 December | 831.5 | 507.3 | 166.9 | 58.6 | 99.9 | 1,664.2 |
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
Key accounting estimates
Impairment of property, plant and equipment
The carrying amounts of property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recoverable amount. The impairment test includes significant judgments made by Management, such as assumption of projected future cash flows used in the valuation.
Additions
DKK million
158.1
Impairment
In 2024, impairment costs of DKK 2.1 million were recognised in the income statement. Management did not identify any other indications of impairment.
Impairment
Management did not identify any indications of impairment in 2025.
Accounting policies
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Accounting policies
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. Based on the contract the right-of-use asset and the lease liability are recognised at commencement of the lease. The initial measurement of the right-of-use asset is at cost and comprises the initial value of the lease liability and lease payments made at or before the commencement date. The right-of-use assets are depreciated on a straight-line basis over the shorter period of the lease term or the useful life of the underlying asset.
The lease liabilities are initially measured at the present value of lease payments that are not paid at the com-mencement date. Lease payments include fixed payments and variable payments that depend on an index such as an inflation index as well as lease payments from an extension option that the Group considers reasonably certain to be exercised.
Extension and termination options exist for a number of leases, particular for offices and warehouses.
In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Lease terms can be subject to changes following the occurrence of significant events or circumstances.
The Group applies the recognition exemption to short-term leases and low-value leases.
Impairment of right-of-use assets
The carrying amounts are reviewed on an annual basis to determine whether there is any indication of impair-ment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the right-of-use asset is written down to its lower recoverable amount.
Accounting policies
Trade receivables are measured in the balance sheet at amortised cost less provisions for expected credit losses. Expected credit losses are determined by using the simplified expected credit loss model (ECL), which has the approach of assessing the lifetime expected credit loss.
The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both
historical as well as forward-looking information. The estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
Accounting policies
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Accounting policies
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. Based on the contract the right-of-use asset and the lease liability are recognised at commencement of the lease. The initial measurement of the right-of-use asset is at cost and comprises the initial value of the lease liability and lease payments made at or before the commencement date. The right-of-use assets are depreciated on a straight-line basis over the shorter period of the lease term or the useful life of the underlying asset.
The lease liabilities are initially measured at the present value of lease payments that are not paid at the com-mencement date. Lease payments include fixed payments and variable payments that depend on an index such as an inflation index as well as lease payments from an extension option that the Group considers reasonably certain to be exercised.
Extension and termination options exist for a number of leases, particular for offices and warehouses.
In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Lease terms can be subject to changes following the occurrence of significant events or circumstances.
The Group applies the recognition exemption to short-term leases and low-value leases.
Impairment of right-of-use assets
The carrying amounts are reviewed on an annual basis to determine whether there is any indication of impair-ment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the right-of-use asset is written down to its lower recoverable amount.
Accounting policies
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
Trademarks
Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
Goodwill
Goodwill represents any cost in excess of identifiable net assets, measured at fair value, in the acquired company. Goodwill is valued at acquisition value less any accumu-lated impairment losses. Goodwill is tested annually, or upon indication, for impairment.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__94": { "value": "Trademarks are measured at cost less accumulated amortisation and less any accumulated impairment losses. Strategic trademarks with indefinite lives are not amortised, but are tested annually for impairment. Strategic trade-marks are defined as trademarks of a sizeable significance
measured on contribution and the trademarks potential to grow across geographies. Other trademarks are amortised on a straight-line basis over the estimated useful lives deter-mined on the basis of Management\u2019s experience with the individual trademarks. The amortisation period is typically in the range of 5\u201325 years.
IT software
IT software is measured at cost less accumulated amorti-sation and less any accumulated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the software for its intended use. The cost of IT software includes capitalised
internal resources, being an internally generated intan-gible asset. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5-10 years.
Other intangible assets
Other intangible assets mainly comprise acquired name rights, know-how, customer relations and distribution rights. Other intangible assets are measured at cost less accumulated amortisation and less any accumulated impairment losses. Amortisation is calculated on a straight-line basis over the expected useful lives of the assets, which are typically in the range of 5\u201320 years.
Intangible assets under construction
Intangible assets under construction comprise IT software in progress and are measured at cost less any accumu-lated impairment losses. Cost comprises payments for the IT software and other directly attributable expenses of preparing the IT software for its intended use. The cost of IT software includes capitalised internal resources, being an internally generated intangible asset. When the IT software is finalised, it is amortised on a straight-line basis as IT software.
3.2
PROPERTY, PLANT AND EQUIPMENT
2025 DKK million | Land and buildings | Plant and machinery | Equipment, tools and fixtures | Leasehold improve-ments | Construc-tion in progress | Total |
Accumulated cost at 1 January | 1,143.5 | 912.8 | 295.3 | 94.5 | 100.2 | 2,546.3 |
Exchange rate adjustment | -60.6 | -26.2 | -24.6 | -8.5 | -8.5 | -128.4 |
Acquisition | - | - | - | - | - | - |
Additions | 2.9 | 4.3 | 2.5 | 2.9 | 145.5 | 158.1 |
Disposals | -29.7 | -15.4 | -18.4 | -3.2 | -3.7 | -70.4 |
Transfers | -12.7 | -46.3 | 161.0 | 21.2 | -123.2 | - |
Accumulated cost at 31 December | 1,043.4 | 829.2 | 415.8 | 106.9 | 110.3 | 2,505.6 |
Accumulated depreciation and impairment at 1 January | 312.0 | 405.5 | 128.4 | 35.9 | 0.3 | 882.1 |
Exchange rate adjustment | -11.7 | -14.0 | -9.5 | -3.5 | - | -38.7 |
Depreciation | 39.6 | 85.9 | 27.6 | 11.4 | - | 164.5 |
Disposals | -4.3 | -15.4 | -18.0 | -3.1 | - | -40.8 |
Impairment | - | - | - | - | - | - |
Transfers | -40.7 | -76.9 | 117.6 | - | - | - |
Accumulated amortisation and impairment at 31 December | 294.9 | 385.1 | 246.1 | 40.7 | 0.3 | 967.1 |
Carrying amount at 31 December | 748.5 | 444.1 | 169.7 | 66.2 | 110.0 | 1,538.5 |
2024 DKK million | Land and buildings | Plant and machinery | Equipment, tools and fixtures | Leasehold improve-ments | Construc-tion in progress | Total |
Accumulated cost at 1 January | 971.8 | 724.5 | 296.4 | 81.0 | 196.8 | 2,270.5 |
Exchange rate adjustment | 26.3 | 7.2 | 12.1 | 4.2 | 4.8 | 54.6 |
Acquisition | 19.5 | 70.9 | - | - | 1.7 | 92.1 |
Additions | 1.2 | 6.8 | 5.7 | 1.0 | 201.3 | 216.0 |
Disposals | -0.6 | -47.3 | -37.0 | -0.9 | -1.1 | -86.9 |
Transfers | 125.3 | 150.7 | 18.1 | 9.2 | -303.3 | - |
Accumulated cost at 31 December | 1,143.5 | 912.8 | 295.3 | 94.5 | 100.2 | 2,546.3 |
Accumulated depreciation and impairment at 1 January | 267.9 | 359.4 | 142.4 | 25.4 | 0.3 | 795.4 |
Exchange rate adjustment | 3.9 | 4.2 | 4.7 | 1.7 | - | 14.5 |
Depreciation | 40.8 | 78.6 | 24.7 | 9.7 | - | 153.8 |
Disposals | -0.6 | -46.1 | -36.1 | -0.9 | - | -83.7 |
Impairment | - | 2.1 | - | - | - | 2.1 |
Transfers | - | 7.3 | -7.3 | - | - | - |
Accumulated amortisation and impairment at 31 December | 312.0 | 405.5 | 128.4 | 35.9 | 0.3 | 882.1 |
Carrying amount at 31 December | 831.5 | 507.3 | 166.9 | 58.6 | 99.9 | 1,664.2 |
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
Key accounting estimates
Impairment of property, plant and equipment
The carrying amounts of property, plant and equipment are reviewed on an annual basis to determine whether there is any indication of impairment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the asset is written down to its lower recoverable amount. The impairment test includes significant judgments made by Management, such as assumption of projected future cash flows used in the valuation.
Additions
DKK million
158.1
Impairment
In 2024, impairment costs of DKK 2.1 million were recognised in the income statement. Management did not identify any other indications of impairment.
Impairment
Management did not identify any indications of impairment in 2025.
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
Accounting policies
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated impair-ment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses for labour, materials, compo-nents and sub-suppliers.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected useful lives of the assets, which are:
Buildings 10\u201340 years
Plant and machinery 12\u201320 years
Equipment, tools and fixtures\t3\u201320 years
Leasehold improvements 1\u201310 years
Assessment of residual value and useful life is performed annually for assets under property, plant and equipment.
3.3
RIGHT-OF-USE ASSETS
The group as a lessee
The Group has entered into lease contracts for land, offices, warehouses, motor vehicles and other equipment utilised across the entire Group. Leases of land have lease terms up to 20 years, offices and warehouses generally have lease terms between three and ten years, while motor vehicles and other equipment generally have lease terms between three
and five years. Lease contracts that include extension and termination options are recognised based on the outcome of the lease term that is considered reasonably certain at the commencement date.
Information on the corresponding lease liabilities is included in note 4.2 financial risks and instruments.
2025 DKK million | Land, buildings, offices and warehouses | Motor vehicles | Other equipment | Total |
Carrying amount at 1 January | 349.9 | 50.6 | 1.8 | 402.3 |
Exchange rate adjustment | -29.4 | -1.0 | - | -30.4 |
Aquisition | - | - | - | - |
Additions | 83.7 | 24.8 | 1.0 | 109.5 |
Disposals | -22.2 | -2.7 | - | -24.9 |
Depreciation | -58.4 | -28.1 | -1.1 | -87.6 |
Carrying amount at 31 December | 323.6 | 43.6 | 1.7 | 368.9 |
2024 DKK million | Land, buildings, offices and warehouses | Motor vehicles | Other equipment | Total |
Carrying amount at 1 January | 238.3 | 43.8 | 2.5 | 284.6 |
Exchange rate adjustment | 14.3 | 0.4 | - | 14.7 |
Aquisition | 23.4 | 6.5 | - | 29.9 |
Additions | 126.4 | 30.6 | 1.3 | 158.3 |
Disposals | -0.1 | -4.6 | -0.1 | -4.8 |
Depreciation | -52.4 | -26.1 | -1.9 | -80.4 |
Carrying amount at 31 December | 349.9 | 50.6 | 1.8 | 402.3 |
The following amounts are recognised in the income statement: | ||
DKK million | 2025 | 2024 |
Depreciation expense of right-of-use assets | 87.6 | 80.4 |
Interest expense on lease liabilities | 6.3 | 9.5 |
Expense relating to short-term leases | 7.2 | 4.0 |
Expense relating to leases of low-value assets | 0.1 | 0.2 |
Total amount recognised in the income statement | 101.2 | 94.1 |
In 2025, the Group had total cash outflows for leases of DKK 94.1 million (DKK 108.0 million). The Group has entered into lease contracts at a value of DKK 2.7 million (DKK 0.7 million) that have not yet commenced.
The Group has extension options of a total value of DKK 25.8 million (DKK 25.5 million) that are not included in the recognised leases, as it is not considered reasonable certain that the Group will exercise the options.
Accounting policies
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. Based on the contract the right-of-use asset and the lease liability are recognised at commencement of the lease. The initial measurement of the right-of-use asset is at cost and comprises the initial value of the lease liability and lease payments made at or before the commencement date. The right-of-use assets are depreciated on a straight-line basis over the shorter period of the lease term or the useful life of the underlying asset.
The lease liabilities are initially measured at the present value of lease payments that are not paid at the com-mencement date. Lease payments include fixed payments and variable payments that depend on an index such as an inflation index as well as lease payments from an extension option that the Group considers reasonably certain to be exercised.
Extension and termination options exist for a number of leases, particular for offices and warehouses.
In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Lease terms can be subject to changes following the occurrence of significant events or circumstances.
The Group applies the recognition exemption to short-term leases and low-value leases.
Impairment of right-of-use assets
The carrying amounts are reviewed on an annual basis to determine whether there is any indication of impair-ment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the right-of-use asset is written down to its lower recoverable amount.
Accounting policies
At the inception of a contract, the Group assesses whether the contract is, or contains, a lease. Based on the contract the right-of-use asset and the lease liability are recognised at commencement of the lease. The initial measurement of the right-of-use asset is at cost and comprises the initial value of the lease liability and lease payments made at or before the commencement date. The right-of-use assets are depreciated on a straight-line basis over the shorter period of the lease term or the useful life of the underlying asset.
The lease liabilities are initially measured at the present value of lease payments that are not paid at the com-mencement date. Lease payments include fixed payments and variable payments that depend on an index such as an inflation index as well as lease payments from an extension option that the Group considers reasonably certain to be exercised.
Extension and termination options exist for a number of leases, particular for offices and warehouses.
In determining lease terms, all facts and circumstances offering economic incentives for exercising extension options or not exercising termination options are taken into account. Lease terms can be subject to changes following the occurrence of significant events or circumstances.
The Group applies the recognition exemption to short-term leases and low-value leases.
Impairment of right-of-use assets
The carrying amounts are reviewed on an annual basis to determine whether there is any indication of impair-ment other than that expressed by depreciation. If so, an impairment test is carried out to determine whether the recoverable amount is lower than the carrying amount and the right-of-use asset is written down to its lower recoverable amount.
3.4
INVENTORIES
Inventories at 31 December, net of allowances for obsolescence, comprise the following items: | ||
DKK million | 2025 | 2024 |
Raw materials and consumables | 1,413.3 | 1,412.2 |
Work in progress | 373.7 | 405.6 |
Finished goods, goods for resale and excise stamps | 1,423.7 | 1,660.4 |
Total | 3,210.7 | 3,478.2 |
Movements in the Group provision for obsolete stock are as follows: | ||
Provision for obsolete stock 1 January | -63.9 | -55.1 |
Additions for the year | -46.9 | -39.2 |
Reversal for the year | 6.2 | 2.4 |
Write-downs during the year | 23.8 | 29.5 |
Effect of exchange rate adjustments | 1.6 | -1.5 |
Total provision at 31 December | -79.2 | -63.9 |
The net movement in the year in respect of inventory provision is included in \u2018cost of goods sold\u2019. The cost of inventories recognised as cost and included in \u2018cost of goods sold\u2019 amounted to DKK 4,140.4 million (DKK\u00a04,099.9\u00a0million).
Accounting policies
Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected sales prices.
The cost of goods for resale, raw materials and consumables equals landed cost.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect produc-tion costs comprise the cost of labour, maintenance and depreciation of the machinery, factory buildings, equipment and right-of-use assets used in the manufacturing process as well as costs of factory administration and management.
Key accounting estimates
Inventories are measured at the lower of cost price under
the FIFO method and net realisable value.
The estimated uncertainty in inventories is related to the
write-down to net realisable value. Inventories are written
down in accordance with Group policy, including individ-ual assessment of inventories for potential losses due to
obsolescence.
Accounting policies
Inventories are measured at the lower of cost under the FIFO method and net realisable value. The net realisable value of inventories is calculated at the amount expected to be generated by sale in the process of normal operations with deduction of selling expenses and costs of completion. The net realisable value is determined allowing for marketability, obsolescence and development in expected sales prices.
The cost of goods for resale, raw materials and consumables equals landed cost.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct labour with addition of indirect production costs. Indirect produc-tion costs comprise the cost of labour, maintenance and depreciation of the machinery, factory buildings, equipment and right-of-use assets used in the manufacturing process as well as costs of factory administration and management.
3.5
TRADE RECEIVABLES
ww
DKK million | 2025 | 2024 |
Trade receivables (net) at 31 December comprise the following: | ||
Trade receivables (gross) | 1,453.2 | 1,232.3 |
Provision for bad debt | -23.6 | -18.6 |
Trade receivables (net) | 1,429.6 | 1,213.7 |
Movements in the Group provision for bad debt are as follows: | ||
Provision for bad debt at 1 January | -18.6 | -17.9 |
Additions for the year | -8.0 | -1.6 |
Reversal for the year | 1.0 | 1.3 |
Confirmed losses | 1.1 | - |
Effect of exchange rate adjustments | 0.9 | -0.4 |
Total provision at 31 December | -23.6 | -18.6 |
2025 Impairment of trade receivables can be specified as follows | Receivables, DKK million | Loss rate, % | Provision, DKK million | |
Current | 1,051.6 | 0.1% | -0.9 | |
Overdue < 30 days | 152.0 | 0.1% | -0.2 | |
Overdue 31 - 60 days | 82.9 | 1.2% | -1.0 | |
Overdue 61 - 90 days | 60.8 | 3.0% | -1.8 | |
Overdue 91 - 180 days | 68.9 | 6.2% | -4.3 | |
Overdue > 180 days | 37.0 | 41.8% | -15.4 | |
Total | 1,453.2 | -23.6 |
2024 Impairment of trade receivables can be specified as follows | Receivables, DKK million | Loss rate, % | Provision, DKK million | |
Current | 948.2 | 0.1% | -0.9 | |
Overdue < 30 days | 165.5 | 0.1% | -0.2 | |
Overdue 31 - 60 days | 43.6 | 1.0% | -0.5 | |
Overdue 61 - 90 days | 21.9 | 9.2% | -2.0 | |
Overdue 91 - 180 days | 21.9 | 9.6% | -2.1 | |
Overdue > 180 days | 31.2 | 41.3% | -12.9 | |
Total | 1,232.3 | -18.6 |
Accounting policies
Trade receivables are measured in the balance sheet at amortised cost less provisions for expected credit losses. Expected credit losses are determined by using the simplified expected credit loss model (ECL), which has the approach of assessing the lifetime expected credit loss.
The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both
historical as well as forward-looking information. The estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
3.5
TRADE RECEIVABLES
ww
DKK million | 2025 | 2024 |
Trade receivables (net) at 31 December comprise the following: | ||
Trade receivables (gross) | 1,453.2 | 1,232.3 |
Provision for bad debt | -23.6 | -18.6 |
Trade receivables (net) | 1,429.6 | 1,213.7 |
Movements in the Group provision for bad debt are as follows: | ||
Provision for bad debt at 1 January | -18.6 | -17.9 |
Additions for the year | -8.0 | -1.6 |
Reversal for the year | 1.0 | 1.3 |
Confirmed losses | 1.1 | - |
Effect of exchange rate adjustments | 0.9 | -0.4 |
Total provision at 31 December | -23.6 | -18.6 |
2025 Impairment of trade receivables can be specified as follows | Receivables, DKK million | Loss rate, % | Provision, DKK million | |
Current | 1,051.6 | 0.1% | -0.9 | |
Overdue < 30 days | 152.0 | 0.1% | -0.2 | |
Overdue 31 - 60 days | 82.9 | 1.2% | -1.0 | |
Overdue 61 - 90 days | 60.8 | 3.0% | -1.8 | |
Overdue 91 - 180 days | 68.9 | 6.2% | -4.3 | |
Overdue > 180 days | 37.0 | 41.8% | -15.4 | |
Total | 1,453.2 | -23.6 |
2024 Impairment of trade receivables can be specified as follows | Receivables, DKK million | Loss rate, % | Provision, DKK million | |
Current | 948.2 | 0.1% | -0.9 | |
Overdue < 30 days | 165.5 | 0.1% | -0.2 | |
Overdue 31 - 60 days | 43.6 | 1.0% | -0.5 | |
Overdue 61 - 90 days | 21.9 | 9.2% | -2.0 | |
Overdue 91 - 180 days | 21.9 | 9.6% | -2.1 | |
Overdue > 180 days | 31.2 | 41.3% | -12.9 | |
Total | 1,232.3 | -18.6 |
Accounting policies
Trade receivables are measured in the balance sheet at amortised cost less provisions for expected credit losses. Expected credit losses are determined by using the simplified expected credit loss model (ECL), which has the approach of assessing the lifetime expected credit loss.
The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both
historical as well as forward-looking information. The estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
2025 Impairment of trade receivables can be specified as follows | Receivables, DKK million | Loss rate, % | Provision, DKK million | |
Current | 1,051.6 | 0.1% | -0.9 | |
Overdue < 30 days | 152.0 | 0.1% | -0.2 | |
Overdue 31 - 60 days | 82.9 | 1.2% | -1.0 | |
Overdue 61 - 90 days | 60.8 | 3.0% | -1.8 | |
Overdue 91 - 180 days | 68.9 | 6.2% | -4.3 | |
Overdue > 180 days | 37.0 | 41.8% | -15.4 | |
Total | 1,453.2 | -23.6 |
2024 Impairment of trade receivables can be specified as follows | Receivables, DKK million | Loss rate, % | Provision, DKK million | |
Current | 948.2 | 0.1% | -0.9 | |
Overdue < 30 days | 165.5 | 0.1% | -0.2 | |
Overdue 31 - 60 days | 43.6 | 1.0% | -0.5 | |
Overdue 61 - 90 days | 21.9 | 9.2% | -2.0 | |
Overdue 91 - 180 days | 21.9 | 9.6% | -2.1 | |
Overdue > 180 days | 31.2 | 41.3% | -12.9 | |
Total | 1,232.3 | -18.6 |
Credit risk
The Group\u2019s credit risk is primarily related to receivables, bank deposits and derivative financial instruments and can be divided into two main risk types.
Operational credit risk
The Group\u2019s balance sheet at 31 december 2025 included trade receivables with a net book value of DKK 1,429.6 million (DKK 1,213.7 million), representing a gross receivable balance of DKK 1,453.2 million (DKK 1,232.3 million) and a provision for expected credit losses of DKK 23.6 million (DKK 18.6 million), based on the expected credit loss model (ECL). The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both historical as well as forward-looking information. The
estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
The Group\u2019s net sales primarily comprise sales of tobacco to different distributors, retailers and direct to consumers. The Group has historically experienced limited risk with regard to the solvency of its customers. As part of the Group\u2019s internal procedures regarding risk management, the operational credit risk relating to customers is monitored on a monthly basis. The Group has no significant concentration of credit exposure as the exposure has been spread on a large number of creditworthy trading partners.
Financial credit risk
Financial credit risk management has the objective of minimising financial loss through a financial distress or the default of a financial counterparty whether due to the financial insolvency of the counterparty, the inability of the counterparty to perform due to changed national legislation or any other circumstance.
The Group\u2019s exposure to counterparty risk is managed by establishing approved counterparty limits detailing the maximum exposure that the group is prepared to accept with respect to the individual counterparty.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__119": { "value": "Accounting policies
Trade receivables are measured in the balance sheet at amortised cost less provisions for expected credit losses. Expected credit losses are determined by using the simplified expected credit loss model (ECL), which has the approach of assessing the lifetime expected credit loss.
The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both
historical as well as forward-looking information. The estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
3.6
PREPAYMENTS
Accounting policies
Prepayments are measured at cost and comprise prepaid costs concerning licences, insurance premiums, subscrip-tions, etc.
3.7
OTHER PROVISIONS
DKK million | 2025 | 2024 |
Balance at 1 January | 63.3 | 35.7 |
Addition during the year | 8.8 | 43.2 |
Utilised during the year | -28.3 | -10.0 |
Reversed provision unused | -8.9 | -5.6 |
Carrying amount at 31 December | 34.9 | 63.3 |
Non-current | 16.5 | 16.4 |
Current | 18.4 | 46.9 |
Total | 34.9 | 63.3 |
Other provisions mainly consist of restructuring costs, reestablishment costs and other items. The restructuring costs are primarily related to redundancy payments expected to take place in 2026. The amounts and timing of the restructurings depend on negotiations with the affected employees.
Accounting policies
Provisions are recognised when \u2013 in consequence of an event occurred before or on the balance sheet date \u2013 the Group has a legal or constructive obligation and it is prob-able that economic benefits must be given up to settle the obligation. Provisions are measured at the present value of the anticipated expenditure for settlement of the legal or constructive obligation based on Management\u2019s best esti-mate. If considered material, the anticipated future expen-diture is discounted, using a pretax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.
Accounting policies
Provisions are recognised when \u2013 in consequence of an event occurred before or on the balance sheet date \u2013 the Group has a legal or constructive obligation and it is prob-able that economic benefits must be given up to settle the obligation. Provisions are measured at the present value of the anticipated expenditure for settlement of the legal or constructive obligation based on Management\u2019s best esti-mate. If considered material, the anticipated future expen-diture is discounted, using a pretax rate that reflects current market assessments of the time value of money and the risks specific to the obligation. The increase in the provision due to the passage of time is recognised as interest expense.
3.9
Assets classified as held for sale
In 2025 Management decided to sell the land and buildings in Sutliff, the US as the close-down of production at this site was completed as part of integrating Mac Baren Tobacco Company, acquired in 2024.
The sale is expected to be completed before the end of 2026. Land and buildings classified as held for sale during the reporting period were measured at their carrying amount at the time of reclassification.
Non-current assets held for sale | ||
DKK million | 2025 | 2024 |
Land and buildings | 35.3 | - |
Total | 35.3 | - |
3.9
Assets classified as held for sale
In 2025 Management decided to sell the land and buildings in Sutliff, the US as the close-down of production at this site was completed as part of integrating Mac Baren Tobacco Company, acquired in 2024.
The sale is expected to be completed before the end of 2026. Land and buildings classified as held for sale during the reporting period were measured at their carrying amount at the time of reclassification.
Non-current assets held for sale | ||
DKK million | 2025 | 2024 |
Land and buildings | 35.3 | - |
Total | 35.3 | - |
4.1
BORROWINGS
DKK million | 2025 | 2024 | |||
Borrowings are recognised in the balance sheet as follows: | |||||
Non-current liabilities | 3,726.6 | 3,710.6 | |||
Current liabilities | 1,150.0 | 1,247.8 | |||
Total | 4,876.6 | 4,958.4 | |||
The Group has the following external borrowings at 31 December: |
Carrying amount | |||||
Currency | Fixed/ floating | Term/revolving credit facility/annuity | Maturitydate | 2025 | 2024 |
USD | Floating | RCF | 22/10/2030 | 763.1 | 785.7 |
DKK | Floating | RCF | 22/10/2030 | 730.0 | 685.0 |
DKK | Floating | STL | 16/02/2026 | 350.0 | 400.0 |
DKK | Floating | Term | 30/10/2026 | 600.0 | - |
DKK | Floating | Term | 06/11/2026 | 200.0 | - |
EUR | Floating | Term | 20/01/2027 | 1.2 | 3.4 |
EUR | Fixed | Bond | 24/09/2025 | - | 847.8 |
EUR | Fixed | Bond | 12/09/2029 | 2,232.3 | 2,227.3 |
USD | Fixed | Annuity | 04/12/2034 | - | 9.2 |
Total | 4,876.6 | 4,958.4 |
Accounting policies
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently at amortised cost using the effective interest method.
Any difference between the proceeds initially received and the nominal value is recognised in financial costs over the term of the loan.
4.7
NET INTEREST-BEARING DEBT
DKK million | 2025 | 2024 |
Interest-bearing liabilities, net | 5,260.5 | 5,369.5 |
Pensions | 194.6 | 213.7 |
Cash equivalents | 6.3 | -160.1 |
Total | 5,461.4 | 5,423.1 |
Financial Policy
According to the Financial Policy, the Group has a leverage ratio target of 2.5 (measured as net interest-bearing debt divided by EBITDA before special items)
while maintaining flexibility to increase leverage temporarily, for example to pursue acquisitions. At 31\u00a0December 2025, the ratio was 3.0 (2.6).
Accounting policies
Borrowings are recognised initially at fair value, net of transaction costs incurred, and subsequently at amortised cost using the effective interest method.
Any difference between the proceeds initially received and the nominal value is recognised in financial costs over the term of the loan.
4.2
FINANCIAL RISKS AND INSTRUMENTS
881.9
Maturity at 31 december 2024 | 0-1 Year | 2-5 Years | After 5 years | Total* | Fair value level 1 | Fair value level 2** | Carrying amount |
Liquidity | |||||||
Recognised at amortised cost | |||||||
Financial institutions | 478.7 | 1,571.4 | - | 2,050.1 | - | 1,883.4 | 1,883.4 |
Bonds | 964.0 | 2,641.7 | - | 3,605.7 | 3,119.3 | - | 3,075.0 |
Trade payables | 383.6 | - | - | 383.6 | - | - | 383.6 |
Lease liabilities | 66.7 | 136.1 | 217.7 | 420.5 | - | - | 410.7 |
Other liabilities | 996.8 | 37.3 | - | 1,034.1 | - | - | 1,029.3 |
Total | 2,889.8 | 4,386.5 | 217.7 | 7,494.0 | 3,119.3 | 1,883.4 | 6,782.0 |
Recognised at fair value | |||||||
Currency swaps | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total financial liabilities | 2,890.4 | 4,386.5 | 217.7 | 7,494.6 | 3,119.3 | 1,884.0 | 6,782.6 |
Recognised at amortised cost | |||||||
Cash and cash equivalents | 160.1 | - | - | 160.1 | - | - | 160.1 |
Trade receivables | 1,213.7 | - | - | 1,213.7 | - | - | 1,213.7 |
Other receivables | 206.7 | - | - | 206.7 | - | - | 206.7 |
Total | 1,580.5 | - | - | 1,580.5 | - | - | 1,580.5 |
Recognised at fair value | |||||||
Currency swaps | 0.3 | - | - | 0.3 | - | 0.3 | 0.3 |
Total | 0.3 | 0.3 | - | 0.3 | 0.3 | ||
Total financial assets | 1,580.8 | - | - | 1,580.8 | - | 0.3 | 1,580.8 |
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies are calculated based on the rates at the balance sheet date. ** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, other liabilities, trade receivables and other receivables which are stated at the net carrying amount at year-end. |
Financial risks
Financial risk management policy and strategy
The Group has centralised the management of financial risks. The overall objectives and policies for the Group\u2019s financial risk management are outlined in the Treasury Policy approved by the Board of Directors.
The Group do not engage in financial transactions or manage risk exposures that are not related to the underlying business driven risks, and consequently, the Group does not enter into any speculative transactions.
The Group\u2019s financial risks is managed with the aim of protecting the value and financial stability of the Group, taking into consideration the cost and accounting consequences of such transactions.
The main financial risks that the Group is exposed to include foreign exchange risk, credit risk, interest rate risk and liquidity risk.
Foreign exchange risk
Fluctuating currency rates influence the Group\u2019s reported income statement, balance sheet and value of future cash flows denominated in foreign currencies.
The Group closely monitors the foreign exchange risk mainly related to USD, NOK, GBP, CAD and AUD. The Group considers both DKK and EUR as base currencies due to the fixed currency band between DKK and EUR.
Key currencies | ||
Movement of exchange rates against DKK | ||
Exchange rate DKK | 2025 | 2024 |
USD | ||
Average | 661.81 | 689.45 |
Year-end | 635.93 | 714.29 |
Average change | -4.0% | 0.1% |
NOK | ||
Average | 63.70 | 64.18 |
Year-end | 63.06 | 62.98 |
Average change | -0.8% | -1.7% |
GBP | ||
Average | 871.65 | 881.25 |
Year-end | 856.91 | 899.34 |
Average change | -1.1% | 2.9% |
CAD | ||
Average | 473.37 | 503.41 |
Year-end | 463.35 | 496.18 |
Average change | -6.0% | -1.4% |
AUD | ||
Average | 426.45 | 454.94 |
Year-end | 424.38 | 445.21 |
Average change | -6.3% | -0.6% |
Foreign exchange exposure in the Group consists of two types of risk (a) translation risk and (b) transaction risk.
Translation risk
Translation risk arises from the translation of subsidiaies\u2019 income statement and net assets into DKK. The single most significant currency is USD.
The Group does not hedge with financial contracts against translation effects, although borrowings in currencies other than DKK are used to partly mitigate translation risk.
Sensitivity Analysis on Exchange | |||
2025 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 224.9 | 45.7 |
NOK | 5% | 8.8 | 8.7 |
GBP | 5% | 14.4 | 11.0 |
CAD | 5% | 9.5 | 5.7 |
AUD | 5% | 5.4 | 5.3 |
2024 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 231.1 | 55.1 |
NOK | 5% | 8.6 | 8.6 |
GBP | 5% | 14.2 | 11.5 |
CAD | 5% | 11.1 | 7.2 |
AUD | 5% | 7.8 | 7.7 |
Transaction risk
Transaction risk arises from cash flows in currencies other than the functional currencies of the Group\u2019s subsidiaries. Transaction risk is not hedged with financial contracts as the impact from transaction risk is considered to be within the Group\u2019s risk appetite. The sensitivity analysis below shows the gain/loss on net profit for the year and other comprehensive income of a 5% percent increase in the specified currencies towards DKK.
31 December 2025 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -4.9 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.3 | - |
GBP | 5% | -2.1 | - |
NOK | 5% | -1.1 | - |
31 December 2024 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -1.7 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.4 | - |
GBP | 5% | -0.2 | - |
NOK | 5% | 0.2 | - |
The sensitivity analysis does not include financial assets and liabilities in the functional currency of the Group\u2019s subsidiaries or translation risk from consolidation of income statement.
Interest rate risk
The Group\u2019s interest-bearing assets / liabilities consist of cash & cash equivalents, bank loans, revolving credit facility (RCF) at floating rate and EUR bond issued at fixed rate.
As of 31 december 2025, the Group has 46% of the total debt with fixed interest rate.
An increase in relevant interest rates of 1%-point would have decreased net profit by DKK 17.4 million (DKK 17.7 million). The estimate was based on the group\u2019s average floating rate loans and borrowings, i.e. disregarding cash and cash equivalents. The analysis assumes that all other variables remain constant.
Credit risk
The Group\u2019s credit risk is primarily related to receivables, bank deposits and derivative financial instruments and can be divided into two main risk types.
Operational credit risk
The Group\u2019s balance sheet at 31 december 2025 included trade receivables with a net book value of DKK 1,429.6 million (DKK 1,213.7 million), representing a gross receivable balance of DKK 1,453.2 million (DKK 1,232.3 million) and a provision for expected credit losses of DKK 23.6 million (DKK 18.6 million), based on the expected credit loss model (ECL). The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both historical as well as forward-looking information. The
estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
The Group\u2019s net sales primarily comprise sales of tobacco to different distributors, retailers and direct to consumers. The Group has historically experienced limited risk with regard to the solvency of its customers. As part of the Group\u2019s internal procedures regarding risk management, the operational credit risk relating to customers is monitored on a monthly basis. The Group has no significant concentration of credit exposure as the exposure has been spread on a large number of creditworthy trading partners.
Financial credit risk
Financial credit risk management has the objective of minimising financial loss through a financial distress or the default of a financial counterparty whether due to the financial insolvency of the counterparty, the inability of the counterparty to perform due to changed national legislation or any other circumstance.
The Group\u2019s exposure to counterparty risk is managed by establishing approved counterparty limits detailing the maximum exposure that the group is prepared to accept with respect to the individual counterparty.
Liquidity risk
The Group ensures the availability of the required
liquidity through a combination of cash management
and uncommitted as well as committed credit facilities. To centralise and optimise liquidity, the Group utilises cash pooling, currency swaps, intercompany lending and borrowing.
The Group ensures diversification of debt portfolio,
maturity dates and lenders to reduce refinancing risk.
The Group has a committed revolving credit facility of
EUR 500.0 million (EUR 450.0 million) maturing in 2030
equally split between providers. The undrawn amount
of the credit facility at 31 December 2025 was EUR 300.1 million (EUR 252.9 million).
In addition, the Group has issued a rated bond of EUR
300 million maturing in 2029.
Financial instruments measured at fair value are broken down according to the following measuring hierarchy:
Level 1: Observable market prices of identical instruments.
Level 2: Valuation models primarily based on observable prices or traded prices of comparable instruments.
Level 3: Valuation models primarily based on non-observable prices.
The fair value of the Group\u2019s financial instruments
(currency swaps) are considered a level 2 fair value measurement as the fair value is determined directly based on the published exchange rates, quoted swap and forward rates on the balance sheet date. There are no financial instruments in level 3 (none).
Other transactions
The Group uses financial transactions which do not
qualify as hedge accounting according to the IFRS.
The Group uses currency swaps to manage and centralise liquidity. These swaps are in USD, NOK, CAD, SEK, GBP to DKK and are actively managed. As of 31 December, the fair value of outstanding currency swaps was as stated below.
2025 | ||
DKK million (fair value) | Nominal | Fair value |
Currency swaps, USD | -34.5 | 0.7 |
Currency swaps, NOK | 19.8 | 0.0 |
Currency swaps, CAD | 3.0 | 0.1 |
Currency swaps, SEK | 34.0 | -0.1 |
Currency swaps, GBP | -6.8 | -0.5 |
Total | 0.1 |
2024 | ||
DKK million (fair value) | Nominal | Fair value |
Currency swaps, USD | 17.1 | -0.2 |
Currency swaps, NOK | 22.5 | 0.1 |
Currency swaps, CAD | 15.9 | -0.2 |
Currency swaps, SEK | 38.0 | -0.2 |
Currency swaps, GBP | 4.2 | 0.0 |
Total | -0.5 |
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
4.2
FINANCIAL RISKS AND INSTRUMENTS
881.9
Maturity at 31 december 2024 | 0-1 Year | 2-5 Years | After 5 years | Total* | Fair value level 1 | Fair value level 2** | Carrying amount |
Liquidity | |||||||
Recognised at amortised cost | |||||||
Financial institutions | 478.7 | 1,571.4 | - | 2,050.1 | - | 1,883.4 | 1,883.4 |
Bonds | 964.0 | 2,641.7 | - | 3,605.7 | 3,119.3 | - | 3,075.0 |
Trade payables | 383.6 | - | - | 383.6 | - | - | 383.6 |
Lease liabilities | 66.7 | 136.1 | 217.7 | 420.5 | - | - | 410.7 |
Other liabilities | 996.8 | 37.3 | - | 1,034.1 | - | - | 1,029.3 |
Total | 2,889.8 | 4,386.5 | 217.7 | 7,494.0 | 3,119.3 | 1,883.4 | 6,782.0 |
Recognised at fair value | |||||||
Currency swaps | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total financial liabilities | 2,890.4 | 4,386.5 | 217.7 | 7,494.6 | 3,119.3 | 1,884.0 | 6,782.6 |
Recognised at amortised cost | |||||||
Cash and cash equivalents | 160.1 | - | - | 160.1 | - | - | 160.1 |
Trade receivables | 1,213.7 | - | - | 1,213.7 | - | - | 1,213.7 |
Other receivables | 206.7 | - | - | 206.7 | - | - | 206.7 |
Total | 1,580.5 | - | - | 1,580.5 | - | - | 1,580.5 |
Recognised at fair value | |||||||
Currency swaps | 0.3 | - | - | 0.3 | - | 0.3 | 0.3 |
Total | 0.3 | 0.3 | - | 0.3 | 0.3 | ||
Total financial assets | 1,580.8 | - | - | 1,580.8 | - | 0.3 | 1,580.8 |
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies are calculated based on the rates at the balance sheet date. ** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, other liabilities, trade receivables and other receivables which are stated at the net carrying amount at year-end. |
Liquidity risk
The Group ensures the availability of the required
liquidity through a combination of cash management
and uncommitted as well as committed credit facilities. To centralise and optimise liquidity, the Group utilises cash pooling, currency swaps, intercompany lending and borrowing.
", "dimensions": { "concept": "ifrs-full:DisclosureOfLiquidityRiskExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__136-1": { "value": "4.2
FINANCIAL RISKS AND INSTRUMENTS
881.9
Maturity at 31 december 2024 | 0-1 Year | 2-5 Years | After 5 years | Total* | Fair value level 1 | Fair value level 2** | Carrying amount |
Liquidity | |||||||
Recognised at amortised cost | |||||||
Financial institutions | 478.7 | 1,571.4 | - | 2,050.1 | - | 1,883.4 | 1,883.4 |
Bonds | 964.0 | 2,641.7 | - | 3,605.7 | 3,119.3 | - | 3,075.0 |
Trade payables | 383.6 | - | - | 383.6 | - | - | 383.6 |
Lease liabilities | 66.7 | 136.1 | 217.7 | 420.5 | - | - | 410.7 |
Other liabilities | 996.8 | 37.3 | - | 1,034.1 | - | - | 1,029.3 |
Total | 2,889.8 | 4,386.5 | 217.7 | 7,494.0 | 3,119.3 | 1,883.4 | 6,782.0 |
Recognised at fair value | |||||||
Currency swaps | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total financial liabilities | 2,890.4 | 4,386.5 | 217.7 | 7,494.6 | 3,119.3 | 1,884.0 | 6,782.6 |
Recognised at amortised cost | |||||||
Cash and cash equivalents | 160.1 | - | - | 160.1 | - | - | 160.1 |
Trade receivables | 1,213.7 | - | - | 1,213.7 | - | - | 1,213.7 |
Other receivables | 206.7 | - | - | 206.7 | - | - | 206.7 |
Total | 1,580.5 | - | - | 1,580.5 | - | - | 1,580.5 |
Recognised at fair value | |||||||
Currency swaps | 0.3 | - | - | 0.3 | - | 0.3 | 0.3 |
Total | 0.3 | 0.3 | - | 0.3 | 0.3 | ||
Total financial assets | 1,580.8 | - | - | 1,580.8 | - | 0.3 | 1,580.8 |
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies are calculated based on the rates at the balance sheet date. ** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, other liabilities, trade receivables and other receivables which are stated at the net carrying amount at year-end. |
The Group ensures diversification of debt portfolio,
maturity dates and lenders to reduce refinancing risk.
The Group has a committed revolving credit facility of
EUR 500.0 million (EUR 450.0 million) maturing in 2030
equally split between providers. The undrawn amount
of the credit facility at 31 December 2025 was EUR 300.1 million (EUR 252.9 million).
In addition, the Group has issued a rated bond of EUR
300 million maturing in 2029.
Financial instruments measured at fair value are broken down according to the following measuring hierarchy:
Level 1: Observable market prices of identical instruments.
Level 2: Valuation models primarily based on observable prices or traded prices of comparable instruments.
Level 3: Valuation models primarily based on non-observable prices.
The fair value of the Group\u2019s financial instruments
(currency swaps) are considered a level 2 fair value measurement as the fair value is determined directly based on the published exchange rates, quoted swap and forward rates on the balance sheet date. There are no financial instruments in level 3 (none).
Other transactions
The Group uses financial transactions which do not
qualify as hedge accounting according to the IFRS.
The Group uses currency swaps to manage and centralise liquidity. These swaps are in USD, NOK, CAD, SEK, GBP to DKK and are actively managed. As of 31 December, the fair value of outstanding currency swaps was as stated below.
2025 | ||
DKK million (fair value) | Nominal | Fair value |
Currency swaps, USD | -34.5 | 0.7 |
Currency swaps, NOK | 19.8 | 0.0 |
Currency swaps, CAD | 3.0 | 0.1 |
Currency swaps, SEK | 34.0 | -0.1 |
Currency swaps, GBP | -6.8 | -0.5 |
Total | 0.1 |
2024 | ||
DKK million (fair value) | Nominal | Fair value |
Currency swaps, USD | 17.1 | -0.2 |
Currency swaps, NOK | 22.5 | 0.1 |
Currency swaps, CAD | 15.9 | -0.2 |
Currency swaps, SEK | 38.0 | -0.2 |
Currency swaps, GBP | 4.2 | 0.0 |
Total | -0.5 |
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
4.2
FINANCIAL RISKS AND INSTRUMENTS
881.9
Maturity at 31 december 2024 | 0-1 Year | 2-5 Years | After 5 years | Total* | Fair value level 1 | Fair value level 2** | Carrying amount |
Liquidity | |||||||
Recognised at amortised cost | |||||||
Financial institutions | 478.7 | 1,571.4 | - | 2,050.1 | - | 1,883.4 | 1,883.4 |
Bonds | 964.0 | 2,641.7 | - | 3,605.7 | 3,119.3 | - | 3,075.0 |
Trade payables | 383.6 | - | - | 383.6 | - | - | 383.6 |
Lease liabilities | 66.7 | 136.1 | 217.7 | 420.5 | - | - | 410.7 |
Other liabilities | 996.8 | 37.3 | - | 1,034.1 | - | - | 1,029.3 |
Total | 2,889.8 | 4,386.5 | 217.7 | 7,494.0 | 3,119.3 | 1,883.4 | 6,782.0 |
Recognised at fair value | |||||||
Currency swaps | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total financial liabilities | 2,890.4 | 4,386.5 | 217.7 | 7,494.6 | 3,119.3 | 1,884.0 | 6,782.6 |
Recognised at amortised cost | |||||||
Cash and cash equivalents | 160.1 | - | - | 160.1 | - | - | 160.1 |
Trade receivables | 1,213.7 | - | - | 1,213.7 | - | - | 1,213.7 |
Other receivables | 206.7 | - | - | 206.7 | - | - | 206.7 |
Total | 1,580.5 | - | - | 1,580.5 | - | - | 1,580.5 |
Recognised at fair value | |||||||
Currency swaps | 0.3 | - | - | 0.3 | - | 0.3 | 0.3 |
Total | 0.3 | 0.3 | - | 0.3 | 0.3 | ||
Total financial assets | 1,580.8 | - | - | 1,580.8 | - | 0.3 | 1,580.8 |
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies are calculated based on the rates at the balance sheet date. ** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, other liabilities, trade receivables and other receivables which are stated at the net carrying amount at year-end. |
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
4.2
FINANCIAL RISKS AND INSTRUMENTS
881.9
Maturity at 31 december 2024 | 0-1 Year | 2-5 Years | After 5 years | Total* | Fair value level 1 | Fair value level 2** | Carrying amount |
Liquidity | |||||||
Recognised at amortised cost | |||||||
Financial institutions | 478.7 | 1,571.4 | - | 2,050.1 | - | 1,883.4 | 1,883.4 |
Bonds | 964.0 | 2,641.7 | - | 3,605.7 | 3,119.3 | - | 3,075.0 |
Trade payables | 383.6 | - | - | 383.6 | - | - | 383.6 |
Lease liabilities | 66.7 | 136.1 | 217.7 | 420.5 | - | - | 410.7 |
Other liabilities | 996.8 | 37.3 | - | 1,034.1 | - | - | 1,029.3 |
Total | 2,889.8 | 4,386.5 | 217.7 | 7,494.0 | 3,119.3 | 1,883.4 | 6,782.0 |
Recognised at fair value | |||||||
Currency swaps | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total financial liabilities | 2,890.4 | 4,386.5 | 217.7 | 7,494.6 | 3,119.3 | 1,884.0 | 6,782.6 |
Recognised at amortised cost | |||||||
Cash and cash equivalents | 160.1 | - | - | 160.1 | - | - | 160.1 |
Trade receivables | 1,213.7 | - | - | 1,213.7 | - | - | 1,213.7 |
Other receivables | 206.7 | - | - | 206.7 | - | - | 206.7 |
Total | 1,580.5 | - | - | 1,580.5 | - | - | 1,580.5 |
Recognised at fair value | |||||||
Currency swaps | 0.3 | - | - | 0.3 | - | 0.3 | 0.3 |
Total | 0.3 | 0.3 | - | 0.3 | 0.3 | ||
Total financial assets | 1,580.8 | - | - | 1,580.8 | - | 0.3 | 1,580.8 |
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies are calculated based on the rates at the balance sheet date. ** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, other liabilities, trade receivables and other receivables which are stated at the net carrying amount at year-end. |
4.2
FINANCIAL RISKS AND INSTRUMENTS
881.9
Maturity at 31 december 2024 | 0-1 Year | 2-5 Years | After 5 years | Total* | Fair value level 1 | Fair value level 2** | Carrying amount |
Liquidity | |||||||
Recognised at amortised cost | |||||||
Financial institutions | 478.7 | 1,571.4 | - | 2,050.1 | - | 1,883.4 | 1,883.4 |
Bonds | 964.0 | 2,641.7 | - | 3,605.7 | 3,119.3 | - | 3,075.0 |
Trade payables | 383.6 | - | - | 383.6 | - | - | 383.6 |
Lease liabilities | 66.7 | 136.1 | 217.7 | 420.5 | - | - | 410.7 |
Other liabilities | 996.8 | 37.3 | - | 1,034.1 | - | - | 1,029.3 |
Total | 2,889.8 | 4,386.5 | 217.7 | 7,494.0 | 3,119.3 | 1,883.4 | 6,782.0 |
Recognised at fair value | |||||||
Currency swaps | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total | 0.6 | - | - | 0.6 | - | 0.6 | 0.6 |
Total financial liabilities | 2,890.4 | 4,386.5 | 217.7 | 7,494.6 | 3,119.3 | 1,884.0 | 6,782.6 |
Recognised at amortised cost | |||||||
Cash and cash equivalents | 160.1 | - | - | 160.1 | - | - | 160.1 |
Trade receivables | 1,213.7 | - | - | 1,213.7 | - | - | 1,213.7 |
Other receivables | 206.7 | - | - | 206.7 | - | - | 206.7 |
Total | 1,580.5 | - | - | 1,580.5 | - | - | 1,580.5 |
Recognised at fair value | |||||||
Currency swaps | 0.3 | - | - | 0.3 | - | 0.3 | 0.3 |
Total | 0.3 | 0.3 | - | 0.3 | 0.3 | ||
Total financial assets | 1,580.8 | - | - | 1,580.8 | - | 0.3 | 1,580.8 |
* All cash flows are non-discounted and include all liabilities according to contracts. The DKK values of future interest and principal of loans in foreign currencies are calculated based on the rates at the balance sheet date. ** The fair value of the financial liabilities is the present value of the expected future instalments and interest payments except for trade payables, other liabilities, trade receivables and other receivables which are stated at the net carrying amount at year-end. |
Financial instruments measured at fair value are broken down according to the following measuring hierarchy:
Level 1: Observable market prices of identical instruments.
Level 2: Valuation models primarily based on observable prices or traded prices of comparable instruments.
Level 3: Valuation models primarily based on non-observable prices.
The fair value of the Group\u2019s financial instruments
(currency swaps) are considered a level 2 fair value measurement as the fair value is determined directly based on the published exchange rates, quoted swap and forward rates on the balance sheet date. There are no financial instruments in level 3 (none).
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueMeasurementExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__140": { "value": "Financial risks
Financial risk management policy and strategy
The Group has centralised the management of financial risks. The overall objectives and policies for the Group\u2019s financial risk management are outlined in the Treasury Policy approved by the Board of Directors.
The Group do not engage in financial transactions or manage risk exposures that are not related to the underlying business driven risks, and consequently, the Group does not enter into any speculative transactions.
The Group\u2019s financial risks is managed with the aim of protecting the value and financial stability of the Group, taking into consideration the cost and accounting consequences of such transactions.
The main financial risks that the Group is exposed to include foreign exchange risk, credit risk, interest rate risk and liquidity risk.
Foreign exchange risk
Fluctuating currency rates influence the Group\u2019s reported income statement, balance sheet and value of future cash flows denominated in foreign currencies.
The Group closely monitors the foreign exchange risk mainly related to USD, NOK, GBP, CAD and AUD. The Group considers both DKK and EUR as base currencies due to the fixed currency band between DKK and EUR.
Key currencies | ||
Movement of exchange rates against DKK | ||
Exchange rate DKK | 2025 | 2024 |
USD | ||
Average | 661.81 | 689.45 |
Year-end | 635.93 | 714.29 |
Average change | -4.0% | 0.1% |
NOK | ||
Average | 63.70 | 64.18 |
Year-end | 63.06 | 62.98 |
Average change | -0.8% | -1.7% |
GBP | ||
Average | 871.65 | 881.25 |
Year-end | 856.91 | 899.34 |
Average change | -1.1% | 2.9% |
CAD | ||
Average | 473.37 | 503.41 |
Year-end | 463.35 | 496.18 |
Average change | -6.0% | -1.4% |
AUD | ||
Average | 426.45 | 454.94 |
Year-end | 424.38 | 445.21 |
Average change | -6.3% | -0.6% |
Foreign exchange exposure in the Group consists of two types of risk (a) translation risk and (b) transaction risk.
Translation risk
Translation risk arises from the translation of subsidiaies\u2019 income statement and net assets into DKK. The single most significant currency is USD.
The Group does not hedge with financial contracts against translation effects, although borrowings in currencies other than DKK are used to partly mitigate translation risk.
Sensitivity Analysis on Exchange | |||
2025 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 224.9 | 45.7 |
NOK | 5% | 8.8 | 8.7 |
GBP | 5% | 14.4 | 11.0 |
CAD | 5% | 9.5 | 5.7 |
AUD | 5% | 5.4 | 5.3 |
2024 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 231.1 | 55.1 |
NOK | 5% | 8.6 | 8.6 |
GBP | 5% | 14.2 | 11.5 |
CAD | 5% | 11.1 | 7.2 |
AUD | 5% | 7.8 | 7.7 |
Transaction risk
Transaction risk arises from cash flows in currencies other than the functional currencies of the Group\u2019s subsidiaries. Transaction risk is not hedged with financial contracts as the impact from transaction risk is considered to be within the Group\u2019s risk appetite. The sensitivity analysis below shows the gain/loss on net profit for the year and other comprehensive income of a 5% percent increase in the specified currencies towards DKK.
31 December 2025 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -4.9 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.3 | - |
GBP | 5% | -2.1 | - |
NOK | 5% | -1.1 | - |
31 December 2024 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -1.7 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.4 | - |
GBP | 5% | -0.2 | - |
NOK | 5% | 0.2 | - |
The sensitivity analysis does not include financial assets and liabilities in the functional currency of the Group\u2019s subsidiaries or translation risk from consolidation of income statement.
Interest rate risk
The Group\u2019s interest-bearing assets / liabilities consist of cash & cash equivalents, bank loans, revolving credit facility (RCF) at floating rate and EUR bond issued at fixed rate.
As of 31 december 2025, the Group has 46% of the total debt with fixed interest rate.
An increase in relevant interest rates of 1%-point would have decreased net profit by DKK 17.4 million (DKK 17.7 million). The estimate was based on the group\u2019s average floating rate loans and borrowings, i.e. disregarding cash and cash equivalents. The analysis assumes that all other variables remain constant.
Credit risk
The Group\u2019s credit risk is primarily related to receivables, bank deposits and derivative financial instruments and can be divided into two main risk types.
Operational credit risk
The Group\u2019s balance sheet at 31 december 2025 included trade receivables with a net book value of DKK 1,429.6 million (DKK 1,213.7 million), representing a gross receivable balance of DKK 1,453.2 million (DKK 1,232.3 million) and a provision for expected credit losses of DKK 23.6 million (DKK 18.6 million), based on the expected credit loss model (ECL). The ECLs on trade receivables are estimated by using a matrix based on aging of customers, and includes both historical as well as forward-looking information. The
estimation takes into account geography, past default experience, analysis of the debtor\u2019s current financial position, factors that are specific to the debtors, general economic conditions in which the debtors operate and an assessment of the forecast direction of developments at the reporting date.
The Group\u2019s net sales primarily comprise sales of tobacco to different distributors, retailers and direct to consumers. The Group has historically experienced limited risk with regard to the solvency of its customers. As part of the Group\u2019s internal procedures regarding risk management, the operational credit risk relating to customers is monitored on a monthly basis. The Group has no significant concentration of credit exposure as the exposure has been spread on a large number of creditworthy trading partners.
Financial credit risk
Financial credit risk management has the objective of minimising financial loss through a financial distress or the default of a financial counterparty whether due to the financial insolvency of the counterparty, the inability of the counterparty to perform due to changed national legislation or any other circumstance.
The Group\u2019s exposure to counterparty risk is managed by establishing approved counterparty limits detailing the maximum exposure that the group is prepared to accept with respect to the individual counterparty.
Liquidity risk
The Group ensures the availability of the required
liquidity through a combination of cash management
and uncommitted as well as committed credit facilities. To centralise and optimise liquidity, the Group utilises cash pooling, currency swaps, intercompany lending and borrowing.
The Group ensures diversification of debt portfolio,
maturity dates and lenders to reduce refinancing risk.
The Group has a committed revolving credit facility of
EUR 500.0 million (EUR 450.0 million) maturing in 2030
equally split between providers. The undrawn amount
of the credit facility at 31 December 2025 was EUR 300.1 million (EUR 252.9 million).
In addition, the Group has issued a rated bond of EUR
300 million maturing in 2029.
Financial instruments measured at fair value are broken down according to the following measuring hierarchy:
Level 1: Observable market prices of identical instruments.
Level 2: Valuation models primarily based on observable prices or traded prices of comparable instruments.
Level 3: Valuation models primarily based on non-observable prices.
The fair value of the Group\u2019s financial instruments
(currency swaps) are considered a level 2 fair value measurement as the fair value is determined directly based on the published exchange rates, quoted swap and forward rates on the balance sheet date. There are no financial instruments in level 3 (none).
Other transactions
The Group uses financial transactions which do not
qualify as hedge accounting according to the IFRS.
The Group uses currency swaps to manage and centralise liquidity. These swaps are in USD, NOK, CAD, SEK, GBP to DKK and are actively managed. As of 31 December, the fair value of outstanding currency swaps was as stated below.
2025 | ||
DKK million (fair value) | Nominal | Fair value |
Currency swaps, USD | -34.5 | 0.7 |
Currency swaps, NOK | 19.8 | 0.0 |
Currency swaps, CAD | 3.0 | 0.1 |
Currency swaps, SEK | 34.0 | -0.1 |
Currency swaps, GBP | -6.8 | -0.5 |
Total | 0.1 |
2024 | ||
DKK million (fair value) | Nominal | Fair value |
Currency swaps, USD | 17.1 | -0.2 |
Currency swaps, NOK | 22.5 | 0.1 |
Currency swaps, CAD | 15.9 | -0.2 |
Currency swaps, SEK | 38.0 | -0.2 |
Currency swaps, GBP | 4.2 | 0.0 |
Total | -0.5 |
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
Financial risk management policy and strategy
The Group has centralised the management of financial risks. The overall objectives and policies for the Group\u2019s financial risk management are outlined in the Treasury Policy approved by the Board of Directors.
The Group do not engage in financial transactions or manage risk exposures that are not related to the underlying business driven risks, and consequently, the Group does not enter into any speculative transactions.
The Group\u2019s financial risks is managed with the aim of protecting the value and financial stability of the Group, taking into consideration the cost and accounting consequences of such transactions.
The main financial risks that the Group is exposed to include foreign exchange risk, credit risk, interest rate risk and liquidity risk.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__142": { "value": "Foreign exchange risk
Fluctuating currency rates influence the Group\u2019s reported income statement, balance sheet and value of future cash flows denominated in foreign currencies.
The Group closely monitors the foreign exchange risk mainly related to USD, NOK, GBP, CAD and AUD. The Group considers both DKK and EUR as base currencies due to the fixed currency band between DKK and EUR.
Key currencies | ||
Movement of exchange rates against DKK | ||
Exchange rate DKK | 2025 | 2024 |
USD | ||
Average | 661.81 | 689.45 |
Year-end | 635.93 | 714.29 |
Average change | -4.0% | 0.1% |
NOK | ||
Average | 63.70 | 64.18 |
Year-end | 63.06 | 62.98 |
Average change | -0.8% | -1.7% |
GBP | ||
Average | 871.65 | 881.25 |
Year-end | 856.91 | 899.34 |
Average change | -1.1% | 2.9% |
CAD | ||
Average | 473.37 | 503.41 |
Year-end | 463.35 | 496.18 |
Average change | -6.0% | -1.4% |
AUD | ||
Average | 426.45 | 454.94 |
Year-end | 424.38 | 445.21 |
Average change | -6.3% | -0.6% |
Foreign exchange exposure in the Group consists of two types of risk (a) translation risk and (b) transaction risk.
Translation risk
Translation risk arises from the translation of subsidiaies\u2019 income statement and net assets into DKK. The single most significant currency is USD.
The Group does not hedge with financial contracts against translation effects, although borrowings in currencies other than DKK are used to partly mitigate translation risk.
Sensitivity Analysis on Exchange | |||
2025 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 224.9 | 45.7 |
NOK | 5% | 8.8 | 8.7 |
GBP | 5% | 14.4 | 11.0 |
CAD | 5% | 9.5 | 5.7 |
AUD | 5% | 5.4 | 5.3 |
2024 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 231.1 | 55.1 |
NOK | 5% | 8.6 | 8.6 |
GBP | 5% | 14.2 | 11.5 |
CAD | 5% | 11.1 | 7.2 |
AUD | 5% | 7.8 | 7.7 |
Transaction risk
Transaction risk arises from cash flows in currencies other than the functional currencies of the Group\u2019s subsidiaries. Transaction risk is not hedged with financial contracts as the impact from transaction risk is considered to be within the Group\u2019s risk appetite. The sensitivity analysis below shows the gain/loss on net profit for the year and other comprehensive income of a 5% percent increase in the specified currencies towards DKK.
31 December 2025 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -4.9 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.3 | - |
GBP | 5% | -2.1 | - |
NOK | 5% | -1.1 | - |
31 December 2024 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -1.7 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.4 | - |
GBP | 5% | -0.2 | - |
NOK | 5% | 0.2 | - |
The sensitivity analysis does not include financial assets and liabilities in the functional currency of the Group\u2019s subsidiaries or translation risk from consolidation of income statement.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEffectOfChangesInForeignExchangeRatesExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__143": { "value": "Foreign exchange risk
Fluctuating currency rates influence the Group\u2019s reported income statement, balance sheet and value of future cash flows denominated in foreign currencies.
The Group closely monitors the foreign exchange risk mainly related to USD, NOK, GBP, CAD and AUD. The Group considers both DKK and EUR as base currencies due to the fixed currency band between DKK and EUR.
Key currencies | ||
Movement of exchange rates against DKK | ||
Exchange rate DKK | 2025 | 2024 |
USD | ||
Average | 661.81 | 689.45 |
Year-end | 635.93 | 714.29 |
Average change | -4.0% | 0.1% |
NOK | ||
Average | 63.70 | 64.18 |
Year-end | 63.06 | 62.98 |
Average change | -0.8% | -1.7% |
GBP | ||
Average | 871.65 | 881.25 |
Year-end | 856.91 | 899.34 |
Average change | -1.1% | 2.9% |
CAD | ||
Average | 473.37 | 503.41 |
Year-end | 463.35 | 496.18 |
Average change | -6.0% | -1.4% |
AUD | ||
Average | 426.45 | 454.94 |
Year-end | 424.38 | 445.21 |
Average change | -6.3% | -0.6% |
Foreign exchange exposure in the Group consists of two types of risk (a) translation risk and (b) transaction risk.
Translation risk
Translation risk arises from the translation of subsidiaies\u2019 income statement and net assets into DKK. The single most significant currency is USD.
The Group does not hedge with financial contracts against translation effects, although borrowings in currencies other than DKK are used to partly mitigate translation risk.
Sensitivity Analysis on Exchange | |||
2025 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 224.9 | 45.7 |
NOK | 5% | 8.8 | 8.7 |
GBP | 5% | 14.4 | 11.0 |
CAD | 5% | 9.5 | 5.7 |
AUD | 5% | 5.4 | 5.3 |
2024 | |||
DKK million | Change in exchange rate | Net sales | EBITDA |
USD | 5% | 231.1 | 55.1 |
NOK | 5% | 8.6 | 8.6 |
GBP | 5% | 14.2 | 11.5 |
CAD | 5% | 11.1 | 7.2 |
AUD | 5% | 7.8 | 7.7 |
Transaction risk
Transaction risk arises from cash flows in currencies other than the functional currencies of the Group\u2019s subsidiaries. Transaction risk is not hedged with financial contracts as the impact from transaction risk is considered to be within the Group\u2019s risk appetite. The sensitivity analysis below shows the gain/loss on net profit for the year and other comprehensive income of a 5% percent increase in the specified currencies towards DKK.
31 December 2025 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -4.9 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.3 | - |
GBP | 5% | -2.1 | - |
NOK | 5% | -1.1 | - |
31 December 2024 | |||
DKK million | Change in exchange rate | Net profit | Other comprehen-sive income |
USD | 5% | -1.7 | - |
CAD | 5% | -0.1 | - |
AUD | 5% | -2.4 | - |
GBP | 5% | -0.2 | - |
NOK | 5% | 0.2 | - |
The sensitivity analysis does not include financial assets and liabilities in the functional currency of the Group\u2019s subsidiaries or translation risk from consolidation of income statement.
Interest rate risk
The Group\u2019s interest-bearing assets / liabilities consist of cash & cash equivalents, bank loans, revolving credit facility (RCF) at floating rate and EUR bond issued at fixed rate.
As of 31 december 2025, the Group has 46% of the total debt with fixed interest rate.
An increase in relevant interest rates of 1%-point would have decreased net profit by DKK 17.4 million (DKK 17.7 million). The estimate was based on the group\u2019s average floating rate loans and borrowings, i.e. disregarding cash and cash equivalents. The analysis assumes that all other variables remain constant.
", "dimensions": { "concept": "ifrs-full:DisclosureOfMarketRiskExplanatory", "language": "en", "entity": "scheme:5299003KG4JS99TRML67", "period": "2025-01-01T00:00:00/2026-01-01T00:00:00" } }, "f0__s8__7__149": { "value": "Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
Accounting policies
Derivative financial instruments
Derivative financial instruments are initially recognised in the balance sheet at fair value and are subsequently remeasured at their fair values. Positive and negative fair values of derivative financial instruments are classified as other receivables/financial fixed assets and other liabili-ties, respectively.
Changes in the fair values of derivative financial instru-ments are recognised in the income statement unless the derivative financial instrument is designated and qualifies as hedge accounting, see below.
4.3
FINANCIAL FIXED ASSETS
2025 DKK million | Investments in assocated companies |
Cost at 1 January | 92.6 |
Accumulated cost at 31 December | 92.6 |
Accumulated revaluation and impairment at 1 January | 169.3 |
Dividends | -12.6 |
Currency translation | -28.9 |
Profit after tax | 23.2 |
Accumulated revaluation and impairment at 31 December | 151.0 |
Carrying amount at 31 December | 243.6 |
2024 DKK million | Investments in assocated companies |
Cost at 1 January | 93.9 |
Disposal | -1.3 |
Accumulated cost at 31 December | 92.6 |
Accumulated revaluation and impairment at 1 January | 140.1 |
Disposal | 2.5 |
Dividends | -12.9 |
Currency translation | 14.2 |
Profit after tax | 25.4 |
Accumulated revaluation and impairment at 31 December | 169.3 |
Carrying amount at 31 December | 261.9 |
In 2024 STG A/S acquired the remaining 50% of !Act A/S and by the end of 2024 the company was a wholly owned subsidiary. |
Name and country of incorporation
Accounting policies
Investments in associated companies are recognised and measured under the equity method.
The item \u2018Investments in associated companies\u2019 in the balance sheet includes the proportionate ownership share of the net asset value of the enterprises with deduction or addition of unrealised intercompany profits or losses and with addition of any remaining value of positive differ-ences (goodwill) and deduction of any remaining value of
negative differences (negative goodwill) calculated on the basis of the fair values of identifiable net assets at the time of acquisition.
The item \u2018Share of profit of associated companies, net of tax\u2019 in the income statement includes the proportionate share of the profit after tax for the year regarding the associated companies.
Dividend
DKK million
12.6
Accounting policies
Investments in associated companies are recognised and measured under the equity method.
The item \u2018Investments in associated companies\u2019 in the balance sheet includes the proportionate ownership share of the net asset value of the enterprises with deduction or addition of unrealised intercompany profits or losses and with addition of any remaining value of positive differ-ences (goodwill) and deduction of any remaining value of
negative differences (negative goodwill) calculated on the basis of the fair values of identifiable net assets at the time of acquisition.
The item \u2018Share of profit of associated companies, net of tax\u2019 in the income statement includes the proportionate share of the profit after tax for the year regarding the associated companies.
Accounting policies
Investments in associated companies are recognised and measured under the equity method.
The item \u2018Investments in associated companies\u2019 in the balance sheet includes the proportionate ownership share of the net asset value of the enterprises with deduction or addition of unrealised intercompany profits or losses and with addition of any remaining value of positive differ-ences (goodwill) and deduction of any remaining value of
negative differences (negative goodwill) calculated on the basis of the fair values of identifiable net assets at the time of acquisition.
The item \u2018Share of profit of associated companies, net of tax\u2019 in the income statement includes the proportionate share of the profit after tax for the year regarding the associated companies.
4.4
Financial income and costs
DKK million | 2025 | 2024 |
Financial income | ||
Interest on deposits in financial institutions etc. | 3.3 | 3.1 |
Exchange gains | 65.4 | 82.5 |
Other financial income | 2.6 | 44.6 |
Total | 71.3 | 130.2 |
Accounting policies
Financial income and costs comprise interests, realised and unrealised exchange adjustments, hedging costs, interest part of pension costs, lease interest costs and other financial income and costs.
4.4
Financial income and costs
DKK million | 2025 | 2024 |
Financial income | ||
Interest on deposits in financial institutions etc. | 3.3 | 3.1 |
Exchange gains | 65.4 | 82.5 |
Other financial income | 2.6 | 44.6 |
Total | 71.3 | 130.2 |
Accounting policies
Financial income and costs comprise interests, realised and unrealised exchange adjustments, hedging costs, interest part of pension costs, lease interest costs and other financial income and costs.
4.4
Financial income and costs
DKK million | 2025 | 2024 |
Financial income | ||
Interest on deposits in financial institutions etc. | 3.3 | 3.1 |
Exchange gains | 65.4 | 82.5 |
Other financial income | 2.6 | 44.6 |
Total | 71.3 | 130.2 |
4.4
Financial income and costs
DKK million | 2025 | 2024 |
Financial income | ||
Interest on deposits in financial institutions etc. | 3.3 | 3.1 |
Exchange gains | 65.4 | 82.5 |
Other financial income | 2.6 | 44.6 |
Total | 71.3 | 130.2 |
Accounting policies
Financial income and costs comprise interests, realised and unrealised exchange adjustments, hedging costs, interest part of pension costs, lease interest costs and other financial income and costs.
Accounting policies
Financial income and costs comprise interests, realised and unrealised exchange adjustments, hedging costs, interest part of pension costs, lease interest costs and other financial income and costs.
Accounting policies
Financial income and costs comprise interests, realised and unrealised exchange adjustments, hedging costs, interest part of pension costs, lease interest costs and other financial income and costs.
4.5
SHARE CAPITAL, TREASURY SHARES, DIVIDEND AND EARNINGS PER SHARE
Proposed dividend
DKK million
360
DKK million | Development in share capital |
2021 | 97.5 |
2022 reduction | -4.5 |
2023 reduction | -6.0 |
2024 reduction | -1.0 |
At the beginning of the year | 86.0 |
2025 reduction | -6.0 |
At the end of the year | 80.0 |
At the Annual General Meeting on 9 April 2025, it was decided to reduce the share capital by DKK 6,000,000. The reduction of the share capital was effectuated
15 May 2025. At 31 December 2025, the share capital consists of 80,000,000 shares of a nominal value of DKK 1. No shares carry any special rights.
Treasury shares | ||||
Nominal value (DKK million) | Number of shares (in thou-sands) | Purchase price (DKK million) | % of share capital | |
Treasury shares at 1 January 2025 | 7.3 | 7,266 | 787.8 | 8.4 |
Addition | - | - | - | - |
Settlement of vested PSUs | - | -13 | -1.4 | -0.0 |
Share capital reduction | -6.0 | -6,000 | -751.4 | -7.0 |
Treasury shares at 31 December 2025 | 1.3 | 1,253 | 35.0 | 1.6 |
The market value of treasury shares at 31 December 2025 was DKK 119.6 million (DKK 692.4 million). Treasury shares are acquired for the purpose of adjusting the Company\u2019s capital structure and to hedge the Group\u2019s share-based incentive programmes. According to the authorisation granted by the General Meeting, the Board of Directors may allow the Company to acquire treasury
shares up to a total holding of 10% of the nomimal share capital at a price quoted on Nasdaq Copenhagen at the time of acquisition with a deviation of up to 10%.
In addition, the Board of Directors is authorised to increase the share capital by up to 10%. The authorisation granted to the Board of Directors is in effect until 9 April 2030.
Dividend | Per share | |
DKK million | DKK | |
2021 (proposed dividend in 2020 Annual Report) | 650.0 | 6.5 |
2022 (proposed dividend in 2021 Annual Report) | 731.3 | 7.5 |
2023 (proposed dividend in 2022 Annual Report) | 767.3 | 8.3 |
2024 (proposed dividend in 2023 Annual Report) | 730.8 | 8.4 |
2025 (proposed dividend in 2024 Annual Report) | 731.0 | 8.5 |
Retained earnings end of 2025 include proposed dividend of DKK 360million (DKK 4.5per share). |
Earnings per share:
Earnings per share are presented as both basic and diluted earnings per share. Basic earnings per share are calculated as net profit divided by the average number of shares outstanding. Diluted earnings per share are calculated as net profit divided by the sum of average
DKK million | 2025 | 2024 |
Net profit for the year | 669.4 | 939.7 |
Average number of shares outstanding (in 1,000 shares) | 82,203 | 86,355 |
Average number of treasury shares (in 1,000 shares) | -3,462 | -4,293 |
Average number of shares - basic (in 1,000 shares) | 78,741 | 82,062 |
Dilutive effect of outstanding PSUs (in 1,000 shares) | 87 | 100 |
Average number of shares outstanding, including dilutive effect of PSUs (in 1,000 shares) | 78,828 | 82,162 |
Basic earnings per share (DKK) | 8.5 | 11.5 |
Diluted earnings per share (DKK) | 8.5 | 11.4 |
number of shares outstanding, including the dilutive effect of outstanding share bonus programmes. Please refer to note 5.8 \u2018Explanation of financial ratios\u2019for a description of the calculation of basic and diluted earnings per share.
4.5
SHARE CAPITAL, TREASURY SHARES, DIVIDEND AND EARNINGS PER SHARE
Proposed dividend
DKK million
360
DKK million | Development in share capital |
2021 | 97.5 |
2022 reduction | -4.5 |
2023 reduction | -6.0 |
2024 reduction | -1.0 |
At the beginning of the year | 86.0 |
2025 reduction | -6.0 |
At the end of the year | 80.0 |
At the Annual General Meeting on 9 April 2025, it was decided to reduce the share capital by DKK 6,000,000. The reduction of the share capital was effectuated
15 May 2025. At 31 December 2025, the share capital consists of 80,000,000 shares of a nominal value of DKK 1. No shares carry any special rights.
Treasury shares | ||||
Nominal value (DKK million) | Number of shares (in thou-sands) | Purchase price (DKK million) | % of share capital | |
Treasury shares at 1 January 2025 | 7.3 | 7,266 | 787.8 | 8.4 |
Addition | - | - | - | - |
Settlement of vested PSUs | - | -13 | -1.4 | -0.0 |
Share capital reduction | -6.0 | -6,000 | -751.4 | -7.0 |
Treasury shares at 31 December 2025 | 1.3 | 1,253 | 35.0 | 1.6 |
The market value of treasury shares at 31 December 2025 was DKK 119.6 million (DKK 692.4 million). Treasury shares are acquired for the purpose of adjusting the Company\u2019s capital structure and to hedge the Group\u2019s share-based incentive programmes. According to the authorisation granted by the General Meeting, the Board of Directors may allow the Company to acquire treasury
shares up to a total holding of 10% of the nomimal share capital at a price quoted on Nasdaq Copenhagen at the time of acquisition with a deviation of up to 10%.
In addition, the Board of Directors is authorised to increase the share capital by up to 10%. The authorisation granted to the Board of Directors is in effect until 9 April 2030.
Dividend | Per share | |
DKK million | DKK | |
2021 (proposed dividend in 2020 Annual Report) | 650.0 | 6.5 |
2022 (proposed dividend in 2021 Annual Report) | 731.3 | 7.5 |
2023 (proposed dividend in 2022 Annual Report) | 767.3 | 8.3 |
2024 (proposed dividend in 2023 Annual Report) | 730.8 | 8.4 |
2025 (proposed dividend in 2024 Annual Report) | 731.0 | 8.5 |
Retained earnings end of 2025 include proposed dividend of DKK 360million (DKK 4.5per share). |
Earnings per share:
Earnings per share are presented as both basic and diluted earnings per share. Basic earnings per share are calculated as net profit divided by the average number of shares outstanding. Diluted earnings per share are calculated as net profit divided by the sum of average
DKK million | 2025 | 2024 |
Net profit for the year | 669.4 | 939.7 |
Average number of shares outstanding (in 1,000 shares) | 82,203 | 86,355 |
Average number of treasury shares (in 1,000 shares) | -3,462 | -4,293 |
Average number of shares - basic (in 1,000 shares) | 78,741 | 82,062 |
Dilutive effect of outstanding PSUs (in 1,000 shares) | 87 | 100 |
Average number of shares outstanding, including dilutive effect of PSUs (in 1,000 shares) | 78,828 | 82,162 |
Basic earnings per share (DKK) | 8.5 | 11.5 |
Diluted earnings per share (DKK) | 8.5 | 11.4 |
number of shares outstanding, including the dilutive effect of outstanding share bonus programmes. Please refer to note 5.8 \u2018Explanation of financial ratios\u2019for a description of the calculation of basic and diluted earnings per share.
4.6
CHANGES IN WORKING CAPITAL (CASH FLOW STATEMENT)
DKK million | 2025 | 2024 |
Change in receivables | -253.9 | -148.3 |
Change in inventories | 70.4 | 135.5 |
Change in liabilities | -30.4 | -125.6 |
Total | -213.9 | -138.4 |
Accounting policies
Working capital is defined as current assets less current liabilities. It measures how much in liquid assets the Group has available for the business.
4.8
CHANGES IN FINANCING LIABILITIES
2025 | Cash movements | Non-cash movements | |||||||
DKK million | Beginning of the year | Proceeds | Repay-ments | Additions | Disposals | Aquisitions | Exchange rate adjustment | Other | End of the year |
Lease liabilities | 410.7 | - | -80.3 | 112.7 | -26.9 | - | -32.1 | - | 384.1 |
Issued bonds | 3,075.1 | - | -846.9 | - | - | - | 3.3 | 0.8 | 2,232.3 |
RCF | 1,470.7 | 110.4 | - | - | - | - | -88.0 | - | 1,493.1 |
Bank loans | 412.6 | 750.0 | -10.5 | - | - | - | -0.9 | - | 1,151.2 |
Total financing liabilities | 5,369.1 | 860.4 | -937.7 | 112.7 | -26.9 | - | -117.7 | 0.8 | 5,260.7 |
2024 | Cash movements | Non-cash movements | |||||||
DKK million | Beginning of the year | Proceeds | Repay-ments | Additions | Disposals | Aquisitions | Exchange rate adjustment | Other | End of the year |
Lease liabilities | 304.9 | - | -94.3 | 142.6 | 11.3 | 29.9 | 16.3 | - | 410.7 |
Issued bonds | 2,227.7 | 2,233.0 | -1,355.0 | - | - | - | 0.8 | -31.4 | 3,075.1 |
RCF | 1,421.9 | 5.0 | - | - | - | - | 43.8 | - | 1,470.7 |
Bank loans | 7.1 | 400.0 | -4.1 | - | - | 9.3 | 0.3 | - | 412.6 |
Total financing liabilities | 3,961.6 | 2,638.0 | -1,453.4 | 142.6 | 11.3 | 39.2 | 61.2 | -31.4 | 5,369.1 |
5.2
CASH FLOW ADJUSTMENTS
For the purpose of presenting the cash flow statement, non-cash items with effect on the income statement must be reversed to identify the actual cash flow effect from the income statement. The adjustments are specified as follows:
DKK million | 2025 | 2024 |
Financial items, net | 287.6 | 186.3 |
Share of profit of associated companies, net of tax | -23.2 | -25.4 |
Income taxes | 208.4 | 279.6 |
(Gains)/losses from sale of fixed assets | -2.8 | -1.7 |
Special items, paid | 242.2 | 211.0 |
Other provisions movement | -28.4 | 27.6 |
Bad debt allowance and provision for obsolete stock movements | -8.4 | 4.3 |
Other adjustments | 12.2 | 13.1 |
Total | 687.6 | 694.8 |
5.1
Business combinations
2025
There has been no business combinations during 2025. Though, the Group has during 2025 received a closing balance adjustment of DKK 35.8m in cash, related to the Mac Baren acquisition. This was in the 2024 Annual Report presented as \u201creceivable closing balance adjustment\u201d.
2024
Mac Baren Tobacco company A/S
With effect from 1 July 2024, Scandinavian Tobacco Group A/S acquired all the shares of Mac Baren Tobacco Company A/S (\u201cMac Baren\u201d) from Halberg A/S. The total consideration of DKK 491 million was paid in cash.
Mac Baren
Mac Baren was a family-owned business founded in 1826 and is a leading global smoking tobacco company, which includes pipe tobacco brands such as Mac Baren, Amphora and Holger Danske as well as fine-cut tobacco brands like Amsterdamer, Choice and Opal. The company also produces and sells nicotine pouches with the brands ACE and GRITT.
Mac Baren\u2019s products are sold in 74 countries with the majority of net sales generated in the US, Denmark and Germany. Other key markets include the UK, France, Spain and Italy. The company is based in Svendborg, Denmark with production facilities in Denmark and in Richmond, Virginia in the US. At the time of the acquisition, the company had approximately 200 full-time employees.
Impact on consolidated income statement
The Financial Statements include net sales of DKK 333 million and net profit of DKK 15 million from the acquisition for the period 1 July to 31 December 2024.
On a proforma basis, if the acquisition had been effective from 1 January 2024 the business of Mac Baren would in 2024 have contributed with DKK 670 million to net sales and DKK 24 million on net profit.
Transaction costs
Total transaction costs related to the acquisition amount to DKK 7.0 million recognised in \u201cSpecial Items\u201d during 2024.
!Act A/S
With effect from 18 December 2024, the Group acquired the remaining 50% of !Act A/S, and by the end of 2024 the company is included in the Consolidated Financial Statements as a wholly owned subsidiary.
Net sales of !Act A/S constitute less than 1% of the Group\u2019s net sales and total assets of !Act constitute less than 1% of the Group's total assets.
Given the financial insignificance of the acquisition, no
information according to IFRS 3, Business Combinations has been disclosed.
Key accounting estimates
The most significant assets acquired generally comprise goodwill, trademarks, tradenames, know-how, customer relations and inventories. As no active market exists for the majority of acquired assets, the fair value is based on Management\u2019s projections and estimates. The methods applied are based on the present value of future cash flows related to the specific asset. Estimates of fair value are associated with uncertainty and may be adjusted subsequently.
Accounting policies
Business combinations are accounted for using the acqui-sition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measued at acquisition date fair value.
Acquisition-related costs are expensed as incurred and, if material, included in \u201cSpecial items\u201d in the Income statement.
Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. If uncertainties exist at the acquisition date regarding identification or measurement of identifiable assets, liabilities and contingent liabilities or regarding the consideration transferred, initial recognition will take place on the basis of provisionally determined fair values. If identifiable assets, liabilities and contingent liabilities are subsequently determined to have a different fair value at the acquisition date from that first assumed, goodwill is adjusted up until 12 months after the acquisition date. Thereafter no adjustments are made to goodwill, and changes in estimates of contingent consideration relating to business combinations are recognised under \u201cOther income and costs\u201d.
Goodwill is initially measured at cost. If the fair value of the net assets acquired is in excess of the aggregate consid-eration transferred, the Group reassesses whether it has correctly identified all assets acquired and all liabilities assumed, and the Group reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consid-eration transferred, the gain is recognised in the income statement. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units that are expected to benefit from the combination.
Accounting policies
Business combinations are accounted for using the acqui-sition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measued at acquisition date fair value.
Acquisition-related costs are expensed as incurred and, if material, included in \u201cSpecial items\u201d in the Income statement.
Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. If uncertainties exist at the acquisition date regarding identification or measurement of identifiable assets, liabilities and contingent liabilities or regarding the consideration transferred, initial recognition will take place on the basis of provisionally determined fair values. If identifiable assets, liabilities and contingent liabilities are subsequently determined to have a different fair value at the acquisition date from that first assumed, goodwill is adjusted up until 12 months after the acquisition date. Thereafter no adjustments are made to goodwill, and changes in estimates of contingent consideration relating to business combinations are recognised under \u201cOther income and costs\u201d.
Goodwill is initially measured at cost. If the fair value of the net assets acquired is in excess of the aggregate consid-eration transferred, the Group reassesses whether it has correctly identified all assets acquired and all liabilities assumed, and the Group reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consid-eration transferred, the gain is recognised in the income statement. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units that are expected to benefit from the combination.
Accounting policies
Business combinations are accounted for using the acqui-sition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measued at acquisition date fair value.
Acquisition-related costs are expensed as incurred and, if material, included in \u201cSpecial items\u201d in the Income statement.
Any contingent consideration to be transferred by the acquirer is recognised at fair value at the acquisition date. If uncertainties exist at the acquisition date regarding identification or measurement of identifiable assets, liabilities and contingent liabilities or regarding the consideration transferred, initial recognition will take place on the basis of provisionally determined fair values. If identifiable assets, liabilities and contingent liabilities are subsequently determined to have a different fair value at the acquisition date from that first assumed, goodwill is adjusted up until 12 months after the acquisition date. Thereafter no adjustments are made to goodwill, and changes in estimates of contingent consideration relating to business combinations are recognised under \u201cOther income and costs\u201d.
Goodwill is initially measured at cost. If the fair value of the net assets acquired is in excess of the aggregate consid-eration transferred, the Group reassesses whether it has correctly identified all assets acquired and all liabilities assumed, and the Group reviews the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consid-eration transferred, the gain is recognised in the income statement. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group\u2019s cash-generating units that are expected to benefit from the combination.
5.3
CONTINGENT LIABILITIES
Guarantee obligations
The Group has (via 3rd parties) issued guarantees totalling DKK 1,028.2 million (DKK 1,059.8 million), which are primarily issued towards local tax authorities in relation to excise and tax stamps.
Lawsuits etc.
From time to time, the Group faces legal claims and disputes as part of the ordinary course of business, mainly related to employees and trademarks. Management continuously assesses the risks associated with the legal claims and disputes and their likely outcome. It is the opinion of Management that, apart from items recognised in the financial statements, the outcome of any of these legal claims and disputes is highly uncertain and/or cannot be reliably estimated in terms of amount or timing.
Scandinavian Tobacco Group has disposed tobacco waste without respecting the correct formalities. This is currently being audited by the Belgian customs and excise authorities and there is a risk that they will require the Group to pay excise duties (estimated at EUR 7-9 million) as if the waste had been sold on the market plus penalties and interest. The Group does not consider it is liable for excise taxes. However, the outcome of the case is uncertain based on Belgium legal practice and therefore no provision has been recognised.
The Group does not expect any of the pending claims or disputes to have a material impact on the Consolidated Financial Statements.
Disclosure regarding change of control
The Group\u2019s loan facilities at financial institutions and issued bonds are subject to change of control clauses.
The Group\u2019s investments in associated companies are subject to change of control clauses.
5.3
CONTINGENT LIABILITIES
Guarantee obligations
The Group has (via 3rd parties) issued guarantees totalling DKK 1,028.2 million (DKK 1,059.8 million), which are primarily issued towards local tax authorities in relation to excise and tax stamps.
Lawsuits etc.
From time to time, the Group faces legal claims and disputes as part of the ordinary course of business, mainly related to employees and trademarks. Management continuously assesses the risks associated with the legal claims and disputes and their likely outcome. It is the opinion of Management that, apart from items recognised in the financial statements, the outcome of any of these legal claims and disputes is highly uncertain and/or cannot be reliably estimated in terms of amount or timing.
Scandinavian Tobacco Group has disposed tobacco waste without respecting the correct formalities. This is currently being audited by the Belgian customs and excise authorities and there is a risk that they will require the Group to pay excise duties (estimated at EUR 7-9 million) as if the waste had been sold on the market plus penalties and interest. The Group does not consider it is liable for excise taxes. However, the outcome of the case is uncertain based on Belgium legal practice and therefore no provision has been recognised.
The Group does not expect any of the pending claims or disputes to have a material impact on the Consolidated Financial Statements.
Disclosure regarding change of control
The Group\u2019s loan facilities at financial institutions and issued bonds are subject to change of control clauses.
The Group\u2019s investments in associated companies are subject to change of control clauses.
5.3
CONTINGENT LIABILITIES
Guarantee obligations
The Group has (via 3rd parties) issued guarantees totalling DKK 1,028.2 million (DKK 1,059.8 million), which are primarily issued towards local tax authorities in relation to excise and tax stamps.
Lawsuits etc.
From time to time, the Group faces legal claims and disputes as part of the ordinary course of business, mainly related to employees and trademarks. Management continuously assesses the risks associated with the legal claims and disputes and their likely outcome. It is the opinion of Management that, apart from items recognised in the financial statements, the outcome of any of these legal claims and disputes is highly uncertain and/or cannot be reliably estimated in terms of amount or timing.
Scandinavian Tobacco Group has disposed tobacco waste without respecting the correct formalities. This is currently being audited by the Belgian customs and excise authorities and there is a risk that they will require the Group to pay excise duties (estimated at EUR 7-9 million) as if the waste had been sold on the market plus penalties and interest. The Group does not consider it is liable for excise taxes. However, the outcome of the case is uncertain based on Belgium legal practice and therefore no provision has been recognised.
The Group does not expect any of the pending claims or disputes to have a material impact on the Consolidated Financial Statements.
Disclosure regarding change of control
The Group\u2019s loan facilities at financial institutions and issued bonds are subject to change of control clauses.
The Group\u2019s investments in associated companies are subject to change of control clauses.
5.5
EVENTS AFTER THE REPORTING PERIOD
The Group has not experienced any significant events after 31 December 2025 which have an impact on the Annual Report.
5.6
FEE TO STATUTORY AUDITOR
Fees for services other than the statutory audit of the financial statements provided by PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab to the Group amounted to DKK 3.6 million. This includes other assurance opinions including limited assurance on the sustainability statement.
5.7
ENTITIES IN SCANDINAVIAN TOBACCO GROUP
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
Parent company | ||||||
Scandinavian Tobacco Group A/S | Denmark | \u2013 | ||||
Subsidiaries by region | ||||||
Europe | ||||||
Scandinavian Tobacco Group Belux N.V. | Belgium | 100% | ||||
Scandinavian Tobacco Group Belgium Manufacturing N.V. | Belgium | 100% | ||||
Scandinavian Tobacco Group Belgium Services N.V. | Belgium | 100% | ||||
Insurgent Ventures II A/S | Denmark | 100% | ||||
!Act A/S | Denmark | 100% | ||||
Mac Baren Tobacco Company A/S | Denmark | 100% | ||||
Peter Stokkebye Tobaksfabrik A/S | Denmark | 100% | ||||
Scandinavian Tobacco Group France S.A.S | France | 100% | ||||
Mac Baren Germany GmbH | Germany | 100% | ||||
Scandinavian Tobacco Group Deutschland GmbH | Germany | 100% | ||||
Scandinavian Tobacco Group Italy S.R.L. | Italy | 100% | ||||
Moderno Opificio del Sigaro Italiano S.r.l. ** | Italy | 85% | ||||
Scandinavian Tobacco Group Norway AS | Norway | 100% | ||||
STG Portugal S.A. | Portugal | 100% | ||||
STG Business Services S.A. | Portugal | 100% | ||||
Scandinavian Tobacco Group Spain S.A.U. | Spain | 100% | ||||
Mac Baren Ministry Of Snus AB | Sweden | 100% | ||||
STG Sweden AB | Sweden | 100% | ||||
Agio Beheer B.V. | The Netherlands | 100% | ||||
Agio Sigarenfabrieken N.V. | The Netherlands | 100% |
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
P.G.C. Hajenius B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group Eersel B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group Nederland B.V. | The Netherlands | 100% | ||||
ST Cigar Group Holding B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group Bethlehem Sales B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group United Kingdom Limited | United Kingdom | 100% | ||||
Asia | ||||||
Scandinavian Tobacco Group Hong Kong Limited | Hong Kong | 100% | ||||
PT Scandinavian Tobacco Group Indonesia | Indonesia | 100% | ||||
Agio Tobacco Processing Company Ltd. | Sri Lanka | 100% | ||||
Australia and New Zealand | ||||||
Scandinavian Tobacco Group Australia Pty Ltd | Australia | 100% | ||||
America | ||||||
Agio Caribbean Tobacco Company Ltd.* | British Virgin Islands | 100% | ||||
Scandinavian Tobacco Group Canada Holding Inc. | Canada | 100% | ||||
Scandinavian Tobacco Group Canada Inc. | Canada | 100% | ||||
General Cigar Dominicana S.A.S. | The Dominican Republic | 100% | ||||
Honduras American Tabaco SA de CV | Honduras | 100% | ||||
Scandinavian Tobacco Group Danli S.A. | Honduras | 100% | ||||
Scandinavian Tobacco Group Esteli, S.A. | Nicaragua | 100% | ||||
Scandinavian Tobacco Group US Holding, Inc. | United States | 100% | ||||
General Cigar Co, Inc. | United States | 100% |
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
GCMM Co., Inc. | United States | 100% | ||||
Club Macanudo, Inc. | United States | 100% | ||||
Henri Wintermans Cigars USA, Inc. | United States | 100% | ||||
M&D Wholesale Distributors, Inc. | United States | 100% | ||||
Bethlehem Shared Services, LLC | United States | 100% | ||||
Bethlehem Sales, LLC | United States | 100% | ||||
Specialty Cigars, LLC | United States | 100% | ||||
BPA Sales, LP | United States | 100% | ||||
Bethlehem IP Holdings, LLC | United States | 100% | ||||
LVPenn Sales, LLC | United States | 100% | ||||
Scandinavian Tobacco Group Lane Holding, Inc. | United States | 100% | ||||
Scandinavian Tobacco Group Lane Ltd | United States | 100% | ||||
Mac Baren USA, Inc. | United States | 100% | ||||
Sutliff Tobacco Company, LLC | United States | 100% | ||||
STC Property, LLC | United States | 100% | ||||
STC Holding, LLC | United States | 100% | ||||
Cigar Smokers Restaurant Holdings, Inc. | United States | 100% | ||||
Cigars International Kentucky, LLC | United States | 100% | ||||
Cigars International Missouri, LLC | United States | 100% | ||||
Cigars International Ohio, LLC | United States | 100% | ||||
Cigars International Texas, LLC | United States | 100% | ||||
Cigars International Tennessee, LLC | United States | 100% | ||||
Bethlehem Restaurant Corporation, Inc. | United States | 100% | ||||
Cl Hamburg Superstore Louge, LLC | United States | 100% | ||||
CI Florida, LLC | United States | 100% | ||||
Lilly Online, LLC | United States | 100% |
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
Insurgent Ventures Holdings, Inc. | United States | 100% | |||
Insurgent Ventures, Inc. | United States | 100% | |||
*\tDoing business in the Dominican Republic. **\tThe non-controlling shareholder holds a put option which is accounted for as if the put option has already been exercised. Accordingly, the subsidiary is consolidated with no non-controlling interest. |
5.7
ENTITIES IN SCANDINAVIAN TOBACCO GROUP
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
Parent company | ||||||
Scandinavian Tobacco Group A/S | Denmark | \u2013 | ||||
Subsidiaries by region | ||||||
Europe | ||||||
Scandinavian Tobacco Group Belux N.V. | Belgium | 100% | ||||
Scandinavian Tobacco Group Belgium Manufacturing N.V. | Belgium | 100% | ||||
Scandinavian Tobacco Group Belgium Services N.V. | Belgium | 100% | ||||
Insurgent Ventures II A/S | Denmark | 100% | ||||
!Act A/S | Denmark | 100% | ||||
Mac Baren Tobacco Company A/S | Denmark | 100% | ||||
Peter Stokkebye Tobaksfabrik A/S | Denmark | 100% | ||||
Scandinavian Tobacco Group France S.A.S | France | 100% | ||||
Mac Baren Germany GmbH | Germany | 100% | ||||
Scandinavian Tobacco Group Deutschland GmbH | Germany | 100% | ||||
Scandinavian Tobacco Group Italy S.R.L. | Italy | 100% | ||||
Moderno Opificio del Sigaro Italiano S.r.l. ** | Italy | 85% | ||||
Scandinavian Tobacco Group Norway AS | Norway | 100% | ||||
STG Portugal S.A. | Portugal | 100% | ||||
STG Business Services S.A. | Portugal | 100% | ||||
Scandinavian Tobacco Group Spain S.A.U. | Spain | 100% | ||||
Mac Baren Ministry Of Snus AB | Sweden | 100% | ||||
STG Sweden AB | Sweden | 100% | ||||
Agio Beheer B.V. | The Netherlands | 100% | ||||
Agio Sigarenfabrieken N.V. | The Netherlands | 100% |
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
P.G.C. Hajenius B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group Eersel B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group Nederland B.V. | The Netherlands | 100% | ||||
ST Cigar Group Holding B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group Bethlehem Sales B.V. | The Netherlands | 100% | ||||
Scandinavian Tobacco Group United Kingdom Limited | United Kingdom | 100% | ||||
Asia | ||||||
Scandinavian Tobacco Group Hong Kong Limited | Hong Kong | 100% | ||||
PT Scandinavian Tobacco Group Indonesia | Indonesia | 100% | ||||
Agio Tobacco Processing Company Ltd. | Sri Lanka | 100% | ||||
Australia and New Zealand | ||||||
Scandinavian Tobacco Group Australia Pty Ltd | Australia | 100% | ||||
America | ||||||
Agio Caribbean Tobacco Company Ltd.* | British Virgin Islands | 100% | ||||
Scandinavian Tobacco Group Canada Holding Inc. | Canada | 100% | ||||
Scandinavian Tobacco Group Canada Inc. | Canada | 100% | ||||
General Cigar Dominicana S.A.S. | The Dominican Republic | 100% | ||||
Honduras American Tabaco SA de CV | Honduras | 100% | ||||
Scandinavian Tobacco Group Danli S.A. | Honduras | 100% | ||||
Scandinavian Tobacco Group Esteli, S.A. | Nicaragua | 100% | ||||
Scandinavian Tobacco Group US Holding, Inc. | United States | 100% | ||||
General Cigar Co, Inc. | United States | 100% |
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
GCMM Co., Inc. | United States | 100% | ||||
Club Macanudo, Inc. | United States | 100% | ||||
Henri Wintermans Cigars USA, Inc. | United States | 100% | ||||
M&D Wholesale Distributors, Inc. | United States | 100% | ||||
Bethlehem Shared Services, LLC | United States | 100% | ||||
Bethlehem Sales, LLC | United States | 100% | ||||
Specialty Cigars, LLC | United States | 100% | ||||
BPA Sales, LP | United States | 100% | ||||
Bethlehem IP Holdings, LLC | United States | 100% | ||||
LVPenn Sales, LLC | United States | 100% | ||||
Scandinavian Tobacco Group Lane Holding, Inc. | United States | 100% | ||||
Scandinavian Tobacco Group Lane Ltd | United States | 100% | ||||
Mac Baren USA, Inc. | United States | 100% | ||||
Sutliff Tobacco Company, LLC | United States | 100% | ||||
STC Property, LLC | United States | 100% | ||||
STC Holding, LLC | United States | 100% | ||||
Cigar Smokers Restaurant Holdings, Inc. | United States | 100% | ||||
Cigars International Kentucky, LLC | United States | 100% | ||||
Cigars International Missouri, LLC | United States | 100% | ||||
Cigars International Ohio, LLC | United States | 100% | ||||
Cigars International Texas, LLC | United States | 100% | ||||
Cigars International Tennessee, LLC | United States | 100% | ||||
Bethlehem Restaurant Corporation, Inc. | United States | 100% | ||||
Cl Hamburg Superstore Louge, LLC | United States | 100% | ||||
CI Florida, LLC | United States | 100% | ||||
Lilly Online, LLC | United States | 100% |
Activity | ||||||
Company | Country | Owner-ship | Produc-tion | Sales and market-ing | Adminis-tration | Finance |
Insurgent Ventures Holdings, Inc. | United States | 100% | |||
Insurgent Ventures, Inc. | United States | 100% | |||
*\tDoing business in the Dominican Republic. **\tThe non-controlling shareholder holds a put option which is accounted for as if the put option has already been exercised. Accordingly, the subsidiary is consolidated with no non-controlling interest. |