Interim Financial
Report 2024
For the period
1 January - 30 June 2024
CVR no. 58 21 06 17
Company Announcement No. 6/2024
Contents
3 Highlights for H1 2024
7 Expectations for the year
8 Financial and operating data
9 Management's review
12 Development in B2B and B2C
14 Additional information
15 Management's statement
16 Income statement and statement of
comprehensive income
17 Balance sheet
19 Cash flow statement
20 Statement of changes in equity
21 Notes
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Interim financial report for H1 2024
92.6119.4
Q2 2023Q2 2022
75.1
Q2 2024
7.3 %
9.1%
5.8%
“
1,266.11,318.8
Q2 2023Q2 2022
1,301.8
Q2 2024
1.40
1.43 1.43
Highlights for the second quarter
and first half of 2024
Revenue (MDKK)
EBITDA (MDKK)
EBITDA
Margin
Net revenue
Revenue per employee
· Q2 revenue for both the B2B and B2C segments was
slightly higher than expected.
· As expected, the market activity in Q2 was similar
to same period last year. The timing of Easter meant
a good start whilst June had two working days less
than last year. All in all Q2 offered one more working
day compared to Q2 last year. The like-for-like sales
improved during the quarter and AO returned to posi-
tive growth towards the end of the quarter.
· Despite price pressure, earnings for Q2 and H1 were
in line with expectations.
· AO’s Danish B2B business continued to gain market
shares.
· The B2C segment achieved growth for the third
quarter in a row.
· Investments in AO’s network of stores continued,
and in Odense a major store opened at the end of Q2.
Both investments and the roll-out of the EA product
range will continue, and an increasing share of the EA
product range is sold through AO’s stores.
· In Q2, AO acquired three companies. With the acqui-
sition of Svenska VA-Grossisten AO Sweden gains a
foothold in the Stockholm area. Designkupp, situated
to the south of Oslo, will significantly increase AO’s
platform in Norway, and Workwear Group is expected to
step-change AO’s B2B and B2C segments offering sales
within workwear and Personal Protective Equipment
(PPE). The acquisition of Workwear Group has been
approved by the Danish competition authorities and will
be included in the AO Group as of August 2024.
In 2024, our sales development is in line with
expectations. A challenging Q1 was followed by
a Q2 similar to last year’s Q2. I am satisfied to
see AO returning to positive growth in the latter
part of Q2. During the period with head-wind,
AO continued to invest in its organisation and
stores, and therefore AO has a solid foundation
for growth.”
Niels A. Johansen, CEO
Interim financial report for H1 2024
82.0
39.3
2023
Acquisition of Designkupp AS
(VVSkupp.no) brings scale to
the Norwegian B2C business
AO has acquired 100 percent of Designkupp AS,
which operates VVSKupp.no, the leading online
store for bathroom products in Norway.
With the acquisition AO gains a leading position in
the Norwegian online market for bathroom and home
improvement products. VVSKupp.no offers a product
range of more than 70,000 items and will bring local
competencies to AO’s existing webshops BilligVVS.no
and Lampeguru.no. VVSKupp.no operates out of a site in
Grålum, a town to the south of Oslo.
Revenue in B2C
Norway (MDKK)
VVSkupp.no
AO B2C Norway
CEO Niels A. Johansen says:
“The acquisition of VVSKupp.no triples AO’s business in Norway bringing scale to AO. Combining AO´s
digital expertise with the competent local leadership from VVSKupp.no, we look forward to further
developing VVSKupp.no as well as AO’s existing webshops. We are happy to welcome VVSKupp.no and
the Norwegian team to AO.”
The new business allows AO to optimise the supply
chain by supplementing shipments from the central
warehouse in Denmark with direct procurement from
Norwegian suppliers.
Interim financial report for H1 2024
84
156
Expanding offerings within
workwear to B2B and B2C
customers
The acquisition of Workwear Group marks a step-change in
AO's offering of workwear to existing B2B customers as well
as adding new B2C business to the group.
Workwear Group operates the webshop Billig-ar-
bejdstøj.dk and is headquartered in Spjald. The
company has a modern and future-proof Autos-
tore solution that can facilitate future growth in
Workwear Group affecting both AO’s B2B and B2C
segments. The company which will be integrated
into AO’s omnichannel business model continues
at the same location and with the same organisa-
tion, just as Anders Lindhardsen will remain in his
position as CEO of Workwear Group.
Workwear Group’s online stores complement AO’s
own B2C online stores and contribute to AO being
able to offer B2B customers a one-stop shop
with an expanded range of workwear. With the
purchase of Workwear Group, AO also acquires a
new, automated warehouse in Jutland with signi
ficant unused capacity that can be integrated into
AO's overall logistics solution.
The acquisition is expected to positively affect
the AO Group's EBITDA by DKK 25-30 million on a
stand-alone basis in the first 12 months after the
acquisition.
Workwear Group revenue 2023
Denmark
Abroad
CEO Niels A. Johansen says:
“I am impressed by Workwear Group's journey. They are the leading player in online sales of workwear in Denmark and have a good position in Sweden and
Norway. In addition to complementing AO's own B2C online stores, I am pleased that we in future can offer a wide range of workwear to AO’s approximately
28,000 tradesmen through a B2B webshop tailored to their needs. Workwear Group has a broad range with more than 200,000 item numbers from more than 100
suppliers. AO has for a long time wanted to find the right partner in profile clothing and workwear, and with Workwear Group’s business model, logistics setup, and
many years of experience in both printing and embroidery we have found a perfect match.”
Approval from the Danish competition authorities
has been received and the company will be
included in the Group as of August 2024.
Interim financial report for H1 2024
M&A overview
Summing-up the rationale behind
AO´s three acquisitions in Q2:
Company
Svenska VA-Grossisten
Established in 2022
Company
Designkupp
Established in 2016
Company
Workwear Group
Established in 2009
Sales & investment
Sales of SEK 87m (DKK 57m)
Acquisition price of SEK 90m.
Sales & investment
Sales of NOK 125m (DKK 82m)
Acquisition price of NOK 75m
Sales & investment
Sales of approx. 265 MDKK
Acquisition price of approx 275 MDKK
Rationale
· AO has a leading position within the water and
drainage business in Southwestern Sweden.
The acquisition of Svenska VA-Grossisten
establishes AO in the Stockholm area.
· The ambition is to establish additional sites in
the Stockholm area. The next one is expected
to open in Q1, 2025.
Rationale
· Designkupp runs VVSKupp.no, the largest
Norwegian webshop within plumbing and
bathroom articles.
· The company has its own location in Grålum,
south of Oslo and it will significantly increase
AO´s presence in Norway.
· AO´s webshops BilligVVS.no and Lampeguru.
no will be handled from the new Grålum-
warehouse after integration.
Rationale
· Workwear Group is a leading Scandinavian
player within workwear. Operated out of a
modern warehouse with significant unlever-
aged capacity.
· AO has approx. 28,000 professional
customers to whom AO will be able to offer a
significantly improved product range as well
as improved capabilities through Workwear
Group.
AO’s capital guidelines set out targets for investments.
According to the guidelines a new investment should deliver
an EBITDA of at least 15% of the invested capital in year 3.
Interim financial report for H1 2024
Expectations for the year
The development in Q2 was slighty higher than the initial
expectations for 2024 detailed in the annual report for 2023. Revenue
and earnings showed a flat development and returned to like-for-like
positive growth at the end of Q2.
Guidance updated after
acquisitions
Revenue
Excluding the M&A effect revenue for 2024 is now
expected to be in the range of DKK 5,150 - 5,300m
compared to the previous guidance of DKK 5,000 -
5,200m.
Revenue impact from acquired companies is expected to
amount to DKK 150 - 200m. Revenue, including M&A, is
expected to amount to DKK 5,300 - 5,500m.
EBITDA and EBT
EBITDA and EBT for 2024 is expected to be unchanged
compared to previous guidance excluding M&A.
Earnings expectations are positively impacted by
increased revenue expectations. However, margin pres-
sure is expected to increase slightly in the second half of
2024. Furthermore, approximately DKK 20m in addi-
tional costs related to increased losses on receivables,
integration costs, and investment in new competencies
is included in the guidance. Consequently, EBITDA and
EBT guidance remain unchanged at DKK 340 - 370m and
DKK 200 - 230m, respectively.
Albertslund, 14 August 2024
Niels A. Johansen Per Toelstang
CEO CFO/Deputy CEO
Original guidance from
2023 annual report
Updated guidance
excl. acquisitions
Updated guidance
incl. acquisitions
Revenue (DKKm)
5,000 - 5,200 5,150 - 5,300 5,300 - 5,500
EBITDA (DKKm)
340 - 370 Unchanged Unchanged
EBT (DKKm)
200 - 230 Unchanged Unchanged
Interim financial report for H1 2024
Financial and operating data for the AO Group
(mDKK)
H1
2024
H1
2023
Q2
2024
Q2
2023
Full Year
2023
Key figures
Consolidated revenue 2,552.8 2,670.3 1,301.8 1,266.1 5,261.0
Gross margin 589.2 632.9 296.3 299.0 1,234.3
Earnings before interest, taxes, depreciation
and amortisation (EBITDA) 143.3 214.5 75.1 92.6 405.3
Profit or loss before financial income and expenses (EBIT) 86.3 154.6 45.6 65.1 292.2
Financial income and expenses, net (14.4) (13.7) (8.0) (7.6) (30.4)
Profit or loss before tax (EBT) 71.9 140.8 37.7 57. 5 261.8
Tax on profit or loss for the period (16.0) (30.3) (8.6) (12.1) (55.7)
Net profit or loss for the period 55.9 110.6 29.1 45.4 206.1
Non-current assets 1,948.8 1,771.8 1,948.8 1,771.8 1,805.9
Current assets 1,505.6 1,573.7 1,505.6 1,573.7 1,436.5
Total assets 3,454.4 3,345.5 3,454.4 3,345.5 3,242,4
Share capital 28.0 28.0 28.0 28.0 28.0
Equity 1,427.5 1,370.6 1,427.5 1,370.6 1,475.3
Non-current liabilities 555.2 534.5 555.2 534.5 535.2
Current liabilities 1,471.6 1,440.4 1,471.6 1,440.4 1,231.9
Cash flow from operating activities 14.1 (159.2) 68.0 (5.2) 346.4
Cash flow from investing activities (173.1) (68.8) (121.7) (37.6 ) (130.2)
Of which investments in property, plant and
equipment, net (67.7 ) (52.0) (19.8) (29.3) (94.8)
Cash flow from financing activities 105.4 193.3 44.9 42.7 (161.7)
Cash flow for the period (53.6) (34.7) (8.8) (0.1) 54.5
H1
2024
H1
2023
Q2
2024
Q2
2023
Full Year
2023
Financial ratios*
Gross profit margin 23.1% 23.7% 22.8% 23.6% 23.5%
EBITDA margin 5.6% 8.0% 5.8% 7.3 % 7.7 %
Profit margin 3.4% 5.8% 3.5% 5.1% 5.6%
Return on capital employed** 2.6% 4.6% 1.4% 2.1% 8.9%
Return on equity** 3.8% 8.0% 2.2% 3.6% 14.3%
Net gearing 2.4 2.0 2.4 2.0 1.3
Solvency ratio 41.3% 41.0% 41.3% 41.0% 45.5%
Book value 51.0 48.9 51.0 48.9 52.7
Share price at the end of the period 77.7 75.8 7 7.7 75.8 70.3
Earnings per share (EPS Basic), DKK*** 2.1 4.1 1.1 1.7 7.6
Diluted earnings per share (EPS-D), DKK*** 2.1 4.1 1.1 1.7 7.6
Average number of employees 836 844 846 841 841
Average number of employees, incl. external
temporary workers 905 910 913 902 912
* Other financial ratios have been calculated in accordance with CFA Society Denmark’s ‘Recommendations and Financial Ratios’.
** Not translated into full-year figures.
*** Basic EPS and diluted EPS have been calculated in accordance with IAS 33.
Interim financial report for H1 2024
1,266.11,318.8
Q2 2023Q2 2022
1,301.8
Q2 2024
1.40
1.43 1.43
Management’s review
Q2
Revenue
Organic revenue development adjusted for number of
working days was -1.6%, and revenue was DKK 1,302m
(DKK 1,266m). Q2 revenue includes two months of revenue
from the acquired business Svenska VA-Grossisten.
Total revenue growth in the quarter of 2.8% was satisfac-
Gross profit
Gross profit ended at DKK 296m (DKK 299m) corre-
sponding to a gross profit margin of 22.8% (23.6%).
Especially in the projects market, price competition has
put pressure on margins.
External costs and staff costs
In total, external operating costs and staff costs made
up DKK 221m or 17.0% of revenue (DKK 206m/16.3%).
Development is driven by the full year effect of salary
and cost inflation. Cost has increased in total and in
percentage of revenue. The increase is due to salary and
cost inflation as well as investments in future growth
areas, however to some extent remedied by cost control
initiatives.
Revenue (MDKK)
Net revenue
Revenue per employee
Second quarter revenue
and earnings were slightly
higher than expected.
Organic sales were in
line with last year with
improving market activity
over the quarter returning
to positive growth. AO
outperformed the Danish
B2B market while the B2C
segment achieved organic
growth.
Interim financial report for H1 2024
Number of FTEs was unchanged at 846 in Q2 compared
to Q2 2023 (841). 15 temporary workers within logistics
have been converted to permanent employees.
EBITDA
EBITDA ended at DKK 75m (DKK 93m), corresponding
to an EBITDA margin of 5.8% (7.3%). The decreased
EBITDA and EBITDA margin is due to lower margins from
price pressure and increased staff cost and external
expenses due to inflation.
Net financials
Net financials amounted to DKK -8m (DKK -8m).
Earnings before tax (EBT)
EBT ended at DKK 38m (DKK 58m).
Income tax
Income tax amounted to DKK -9m (DKK -12m), corre-
sponding to an effective tax rate of 22.7% (21.1%).
Earnings after tax (EAT)
EAT ended at DKK 29m (DKK 45m).
H1
Revenue
As expected, revenue declined by 4.4% to DKK 2,553m
(DKK 2,670m) in the first half of 2024. Revenue develop-
ment was under pressure in Q1 with double digit decline
but returned to positive growth by the end of the first
six months.
Gross profit
Gross profit ended at DKK 589m (DKK 633m) corre-
sponding to a gross profit margin of 23.1% (23.7%).
External expenses and staff costs
In total, external operating costs and staff costs made
up 17.8% of revenue (15.7%). Cost of doing business is
under pressure from cost inflation as well as increased
administrative burdens increasing administrative FTEs.
FTEs for the first half of 2024 were 836 (844).
EBITDA
EBITDA ended at DKK 143m (DKK 215m) corresponding
to an EBITDA margin of 5.6%. (8.0%).
Interim financial report for H1 2024
NIBD
Jun 30
NIBD
Apr 1
Dividend
payment
LeasingInvest-
ments
M&AOther
C/F
NWCEBITDA
-801
-717
75
-18
-91
-11
-30
-2617
Financials
Net financials amounted to DKK -14m (-14m). Interest
rates have been reduced resulting in unchanged net
financials despite higher average debt level following
investments.
Earnings before tax (EBT)
EBT ended at DKK 72m (DKK 141m).
Income tax
Income tax amounted to DKK -16m (DKK -30m) corre-
sponding to an effective tax rate of 22.3% (21.5%).
Earnings after tax (EAT)
EAT ended at DKK 56m (DKK 111m).
Equity
Equity end of June 2024 amounted to DKK 1,428m (DKK
1,371m). Thus, the solvency ratio at period-end was
41.3% (41.0%) and the target of maintaining a solvency
of 40%+ was achieved.
Cash flows
Net working capital at the end of the period was 7.6%
(12.1%) of LTM revenue.
Development in net debt
Cash flow from operating activities totalled DKK 14m
(DKK -159m).
Change in receivables was DKK -89m (DKK -43m) mainly
driven by activity level towards the end of the period.
Change in inventories contributed with DKK -2m (DKK
0m). Inventory level was reduced over 2023 and has
been kept stable in 2024.
Change in payables contributed with DKK 10m (DKK
-308m).
Cash flow from investing activities totalled DKK -173m
(DKK -69m). DKK 91m of the investment derive from the
finalised acquisitions of Svenska VA-Grossisten and
Designkupp.
Cash flow from financing activities was DKK 105m (DKK
193m) reflecting dividend payouts as well as increased
level of interest bearing debt after acquisitions.
Net interest bearing debt amounted to DKK 801m (DKK
940m) at period end. Financial gearing was 2.4 times
EBITDA (2.0 times).
At the end of the period AO had undrawn credit facilities
of more than DKK 700m.
Interim financial report for H1 2024
B2B Business Development
AO's B2B segment services the professional tradesmen as well as
large construction companies out of 55 stores in Denmark and six
stores in Sweden. In Denmark, AO is the wholesaler with the broadest
product range serving more trades than our competitors. Roughly
70% of the revenue originates from repair and maintenance and 30%
from projects. As a true omni-channel business almost half of the
sales in B2B are digital sales. In adverse market conditions the B2B
business continued to gain market shares.
Revenue
Segment revenue was DKK 1,156m (DKK 1,138m) for the
quarter. The development was in line with expectations
and better than the overall market. Revenue develop-
ment improved over the quarter.
Gross profit
Gross profit of DKK 257m (DKK 262m) corresponds to a
profit margin of 22.2% (23.1%). Margins are impacted
by price pressure on projects especially.
Direct expenses
Direct expenses were kept stable at DKK 128m (DKK
127m). Impact from salary inflation has been offset by
cost savings in the segment. It remains a priority for AO
to retain the team needed to cater for future growth.
EBITDA
Segment EBITDA ended at DKK 130m (DKK 136m).
Distribution of sales channels 2023
MDKK Q2 2024 Q2 2023
Revenue 1,155.9 1,138.3
Cost of goods sold (855.0) (836.2)
Product margin 300.9 302.1
Distribution (43.8) (39.7)
Gross profit 257.1 262.4
Direct expenses (127.5) (126.7)
EBITDA before indirect expenses 129.6 135.7
Key figures
Gross margin % 22.2% 23.1%
EBITDA % 11.2% 11.9%
Physical
57%
Digital
43%
Interim financial report for H1 2024
B2C performance
DKK
B2C Business Development
AO is the market leader within online home improvement DIY sales
in Denmark. Sales are done out of 11 webshops operating on a
shared back-end platform. The B2C segment has returned to a
growth trend which has continued in Q2 2024. Increased scale of
the B2C business will increase margins.
Revenue
Segment revenue was DKK 146m (DKK 128m) for
the period. The acquired business Designkupp was
included on the last day of Q2 and has not contributed
revenue.
Gross profit
Gross profit of DKK 39m (DKK 37m) corresponds to a
profit margin of 26.8% (28.7%). The profit margin in
the B2C segment was 4.6%-p higher than for the B2B
business (5.6%-p).
Direct expenses
The expense level has been under pressure for cost and
salary inflation but has been kept stable at DKK 29m
(DKK 29m)
EBITDA
Segment EBITDA ended at DKK 10m (DKK 7m). It is the
ambition that the segment EBITDA margin should reach
at least 10% which is to be achieved through growing
the top line.
MDKK Q2 2024 Q2 2023
Revenue 146.0 127.7
Cost of goods sold (96.3) (80.8)
Product margin 49.7 46.9
Distribution (10.5) (10.3)
Gross profit 39.2 36.6
Direct expenses (29.3) (29.2)
EBITDA before indirect expenses 9.9 7.4
Key figures
Gross margin % 26.8% 28.7%
EBITDA % 6.8% 5.8%
B2C revenue per quarter*
Revenue Revenue trend
* Growth is measured comparing the quarter to the same quarter last year.
Interim financial report for H1 2024
Additional information
Financial calendar
23 October 2024 Interim Financial Report for the period 1 January - 30 September 2024
Company announcements in 2024
2024-02-21 No. 1 Annual Report 2023
2024-02-21 No. 2 Notice of Annual General Meeting 2024
2024-03-20 No. 3 Annual General Meeting 2024
2024-04-24 No. 4 Interim financial report for Q1 2024
2024-06-24 No. 5 Brødrene A & O Johansen A/S acquires Workwear Group ApS
(Billig-arbejdstøj.dk)
Investor contacts
CEO Niels A. Johansen
CFO, Deputy CEO Per Toelstang
Head of IR Nicolaj Harmundal Petersen
IR@AO.dk
Brødrene A & O Johansen A/S
Rørvang 3, DK-2620 Albertslund, Denmark
CVR no. 58 21 06 17
Forward-looking
statements
This interim report contains statements relating to the
future, including statements regarding AO's future
operating results, financial position, cash flows,
business strategy and future targets. Such statements
are based on Management’s reasonable expectations
and forecasts at the time of release of this report.
Forward-looking statements are subject to risks and
uncertainties and a number of other factors, many of
which are beyond AO’s control. This may have the effect
that actual results may differ significantly from the
expectations expressed in the report. Without being
exhaustive, such factors include general economic and
commercial factors, including market and competitive
conditions, supplier issues and financial and regulatory
issues and IT failures.
Interim financial report for H1 2024
Management’s statement
Executive Board
CTO CHRO
Board of Directors
Interim financial report for H1 2024
Income statement and statement of
comprehensive income
DKK thousands Note
H1
2024
H1
2023
Q2
2024
Q2
2023
Full Year
2023
Revenue 3 2,552,762 2,670,323 1,301,849 1,266,050 5,261,016
Cost of sales (1,858,993 ) (1,935,730 ) (952,166 ) (917,446 ) (3,817,312 )
Distribution costs (105,977 ) (102,677 ) (54,270 ) (49,955 ) (211,468 )
Gross profit 587,792 631,916 295,413 298,649 1,232,236
Other operating income 1,413 985 912 311 2,029
Gross margin 589,205 632,901 296,325 298,960 1,234,265
External expenses (157,606 ) (147,516 ) (75,734 ) (72,782 ) (310,666 )
Staff costs (288,289 ) (270,838 ) (145,475 ) (133,581 ) (518,315 )
Earnings before interest, taxes, depreciation
and amortisation (EBITDA) 143,310 214,547 75,116 92,597 405,284
Depreciation and amortisation (57,045 ) (59,979 ) (29,487 ) (27,455 ) (113,079 )
Operating profit or loss (EBIT) 86,265 154,568 45,629 65,142 292,205
Financial income 5,807 1,844 3,079 922 3,338
Financial expenses (20,175 ) (15,563 ) (11,033 ) (8,537 ) (33,739 )
Profit or loss before tax (EBT) 71,897 140,849 37,675 57,527 261,804
Tax on profit or loss for the period (16,045 ) (30,294 ) (8,567 ) (12,130 ) (55,708 )
Net profit or loss for the period 55,852 110,555 29,108 45,397 206,096
DKK thousands Note
H1
2024
H1
2023
Q2
2024
Q2
2023
Full Year
2023
Other comprehensive income
Items reclassified to the income statement
Foreign currency translation adjustment relating
to foreign entities (3,466 ) (6,457 ) (2,453 ) (4,836 ) 987
Tax on other comprehensive income - -
Other comprehensive income after tax (3,466 ) (6,457 ) (2,453 ) (4,836 ) 987
Total comprehensive income 52,386 104,098 26,655 40,561 207,083
Earnings per share
Earnings per share (EPS) 2.1 4.1 1.1 1.7 7.6
Diluted earnings per share (EPS-D) 2.1 4.1 1.1 1.7 7.6
Interim financial report for H1 2024
Balance sheet
Assets
DKK thousands Note
2024.
06.30
2023.
06.30
2023.
12.31
Non-current assets
Intangible assets
Goodwill 4 608,417 508,539 508,539
Intellectual property rights 42,850 46,350 44,611
Software 86,240 67,704 82,913
Property, plant and equipment
Land and buildings 873,693 810,010 832,268
Leasehold improvements 14,824 18,119 15,530
Fixtures and operating equipment 227,341 228,262 221,966
Right-of-use assets 95,143 92,579 99,838
Other non-current assets
Other investments 247 247 247
Total non-current assets 1,948,755 1,771,810 1,805,912
DKK thousands Note
2024.
06.30
2023.
06.30
2023.
12.31
Current assets
Inventories 5 767,653 856,650 757,411
Trade receivables 6 641,323 674,204 542,788
Joint tax contribution 11,903 - -
Other receivables 15,958 14,313 20,573
Prepayments and accrued income 32,875 28,205 26,174
Cash and short-term deposits 35,911 306 89,504
Total current assets 1,505,623 1,573,678 1,436,450
Total assets 3,454,378 3,345,488 3,242,362
Interim financial report for H1 2024
Balance sheet
Equity and liabilities
DKK thousands Note
2024.
06.30
2023.
06.30
2023.
12.31
Equity
Share capital 28,000 28,000 28,000
Reserve for foreign currency translation adjustments (11,123 ) (15,101 ) (7,657 )
Retained earnings 1,410,655 1,357,659 1,349,956
Proposed dividend for the financial year - - 105,000
Total equity 1,427,532 1,370,558 1,475,299
Non-current liabilities
Deferred tax 70,292 63,656 70,098
Credit institutions 408,423 407,316 398,705
Lease liabilities 66,923 63,533 66,352
Other non-current liabilities 9,600 - -
Total non-current liabilities 555,238 534,505 535,155
DKK thousands Note
2024.
06.30
2023.
06.30
2023.
12.31
Current liabilities
Credit institutions 329,216 436,878 109,343
Lease liabilities 31,860 32,909 36,844
Trade payables 1,019,777 870,966 1,006,632
Corporation tax 5,063 2,566 8,357
Joint taxation contribution payable - 5,529 3,062
Other payables 85,192 88,851 67,170
Provisions for liabilities 500 2,726 500
Total current liabilities 1,471,608 1,440,425 1,231,908
Total liabilities 2,026,846 1,974,930 1,767,063
Total equity and liabilities 3,454,378 3,345,488 3,242,362
Interim financial report for H1 2024
Cash flow statement
DKK thousands Note
H1
2024
H1
2023
Q2
2024
Q2
2023
Full Year
2023
Operating profit or loss for the period 86,265 154,568 45,630 65,143 292,205
Depreciation and amortisation 57,045 59,979 29,487 27,455 113,079
Other non-cash operating items, net 1,757 (23 ) 878 (780 ) 3,393
Cash flow from operations before change in
working capital 145,067 214,524 75,995 91,818 408,677
Change in inventories (1,671 ) 449 (9,698 ) 63,531 99,688
Change in receivables (89,262 ) (42,570 ) (5,869 ) 40,813 84,617
Change in trade and other payables 10,326 (307,837 ) 32,334 (192,241 ) (191,014 )
Total change in working capital (80,607 ) (349,958 ) 16,767 (87,897 ) (6,709 )
Cash flow from operations 64,460 (135,434 ) 92,762 3,921 401,968
Net financials paid (14,368 ) (13,719 ) (7,953 ) (7,616 ) (30,401 )
Corporation tax paid (36,038 ) (10,046 ) (16,764 ) (1,500 ) (25,151 )
Cash flow from operating activities 14,054 (159,199 ) 68,045 (5,195 ) 346,416
DKK thousands Note
H1
2024
H1
2023
Q2
2024
Q2
2023
Full Year
2023
Purchase of intangible assets (14,147 ) (15,331 ) (10,665 ) (8,242 ) (33,934 )
Purchase of property, plant and equipment, net (67,669 ) (52,009 ) (19,774 ) (29,337 ) (94,819 )
Purchase of investments - 37 - - 37
Acquisition of enterprises (91,251 ) (1,500 ) (91,251 ) - (1,500 )
Cash flow from investing activities (173,067 ) (68,803 ) (121,690 ) (37,579 ) (130,216 )
Change in payables to credit institutions 227,654 352,494 74,124 75,351 16,348
Repayment of lease liabilities (20,324 ) (16,484 ) (11,036 ) (7,753 ) (35,342 )
Dividends paid (101,910 ) (142,675 ) (18,209 ) (24,900 ) (142,675 )
Cash flow from financing activities 105,420 193,335 44,879 42,698 (161,669 )
Cash flow for the period (53,593 ) (34,667 ) (8,766 ) (76 ) 54,531
Cash and short-term deposits at beginning
of period 89,504 34,973 44,677 382 34,973
Cash and short-terms deposits at end of period 35,911 306 35,911 306 89,504
Interim financial report for H1 2024
Statement of changes in equity
DKK thousands
Share
capital
Foreign
currency
translation
adjustment
Proposed
dividend
for the
financial
year
Retained
earnings Total equity
Equity at 1 January 2024 28,000 (7,657 ) 105,000 1,349,956 1,475,299
Net profit for the period - - - 55,852 55,852
Foreign currency translation adjustment - (3,466 ) - - (3,466 )
Total comprehensive income - (3,466 ) - 55,852 52,386
Dividend distribution - - (101,910 ) - (101,910 )
Dividend, treasury shares - - (3,090 ) 3,090 -
Share-based remuneration - - - 1,757 1,757
Total transactions with owners - - (105,000 ) 4,847 (100,153 )
Equity at 30 June 2024 28,000 (11,123 ) - 1,410,655 1,427,532
Equity at 1 January 2023 28,000 (8,644 ) 147,000 1,241,142 1,407,498
Net profit or loss for the period - - - 110,555 110,555
Foreign currency translation adjustment - (6,457 ) - - (6,457 )
Total comprehensive income - (6,457 ) - 110,555 104,098
Dividend distribution - - (142,675 ) - (142,675 )
Dividend, treasury shares - - (4,325 ) 4,325 -
Share-based remuneration - - - 1,637 1,637
Total transactions with owners - - (147,000 ) 5,962 (141,038 )
Equity at 30 June 2023 28,000 (15,101 ) - 1,357,659 1,370,558
DKK thousands
Share
capital
Foreign
currency
translation
adjustment
Proposed
dividend
for the
financial
year
Retained
earnings Total equity
Equity at 1 January 2023 28,000 (8,644 ) 147,000 1,241,142 1,407,498
Net profit or loss for the period - - 105,000 101,096 206,096
Foreign currency translation adjustment - 987 - - 987
Total comprehensive income - 987 105,000 101,096 207,083
Dividend distribution - - (142,675 ) - (142,675 )
Dividend, treasury shares - - (4,325 ) 4,325 -
Share-based remuneration - - - 3,393 3,393
Total transactions with owners - - (147,000 ) 7,718 (139,282 )
Equity at 31 December 2023 28,000 (7,657 ) 105,000 1,349,956 1,475,299
Interim financial report for H1 2024
Notes
1.0 Accounting policies
The interim financial report has been prepared in accord-
ance with IAS 34 ‘Interim Financial Reporting’ as adopted
by the EU and additional disclosure requirements in the
Danish Financial Statements Act.
The accounting policies are unchanged from the accounting
policies applied in the consolidated and parent company
financial statements for 2023, to which reference is made.
The consolidated and parent company financial statements
for 2023 contain a full description of the accounting poli-
cies.
2.0 Accounting estimates and judgements
Estimation uncertainty
In preparing these interim financial statements, manage-
ment has made accounting estimates and assumptions
which affect the application of accounting policies and
recognised assets, liabilities, income and expenses. Actual
results may deviate from these estimates.
The most significant judgements made by management
in applying the Group’s accounting policies and the key
sources of estimation uncertainty are the same as those
that applied to the consolidated financial statements
and parent company financial statements for 2023. For a
more detailed description of the estimation uncertainty,
reference is made to the consolidated and parent company
financial statements for 2023.
3.0 Segment information
The Group operates primarily in Denmark, and less than
10% of its revenue relates to foreign countries. This was
also the case in the first half of 2023.
The Group has not traded with any individual customer
representing more than 10% of the Group’s total revenue.
This was also the case in the first half of 2023.
The Group has activities within the B2B segment and the
B2C segment. The two segments share the same chief oper-
ating decision maker but are identified as separate oper-
ating segments in the internal management reporting.
Interim financial report for H1 2024
Notes
Segment information Q2 2024
DKK thousands B2B B2C Total
Revenue 1,155.9 146.0 1,301.9
Cost of goods sold (855.0) (96.3) (951.3)
Product margin 300.9 49.7 350.6
Distribution (43.8) (10.5) (54.3)
Gross margin 257.1 39.2 296.3
Direct expenses (12 7.5) (29.3) (156.8)
EBITDA before indirect expenses 129.6 9.9 139.5
Indirect expenses (64.4)
EBITDA 75.1
Key figures
Gross margin % 22.2% 26.8% 22.8%
EBITDA (before indirect expenses) % 11.2% 6.8% 10.7%
EBITDA % 5.8%
Segment information Q2 2023
DKK thousands B2B B2C Total
Revenue 1,138.3 12 7. 7 1,266.1
Cost of goods sold (836.2) (80.8) (9 17.0)
Product margin 302.1 46.9 349.0
Distribution (39.7) (10.3) (50.0)
Gross margin 262.4 36.6 299.0
Direct expenses (126.7) (29.2) (155.9)
EBITDA before indirect expenses 135.7 7.4 143.1
Indirect expenses (50.5)
EBITDA 92.6
Key figures
Gross margin % 23.1% 28.7% 23.6%
EBITDA (before indirect expenses) % 11.9% 5.8% 11.3%
EBITDA % 7.3 %
Interim financial report for H1 2024
Notes
Segment information H1 2024
DKK thousands B2B B2C Total
Revenue 2,253.9 298.9 2,552.8
Cost of goods sold (1,662.8) (194.8) (1,857.6)
Product margin 591.1 104.1 695.2
Distribution (83.8) (22.2) (106.0)
Gross margin 507.3 81.9) 589.2
Direct expenses (255.4) (63.1) (318.5)
EBITDA before indirect expenses 251.9 18.8 270.7
Indirect expenses (127. 4 )
EBITDA 143.3
Key figures
Gross margin % 22.5% 27. 4 % 23.1%
EBITDA (before indirect expenses) % 11.2% 6.3% 10.6%
EBITDA % 5.6%
Segment information H1 2023
DKK thousands B2B B2C Total
Revenue 2, 397.2 273.1 2,670.3
Cost of goods sold (1,760.7) (174.0) (1,934.7)
Product margin 636.5 99.1 735.6
Distribution (81.5) (21.2) (102.7)
Gross margin 555.0 77.9 632.9
Direct expenses (251.5) (61.6) (313.1)
EBITDA before indirect expenses 303.5 16.3 319.8
Indirect expenses (105.3)
EBITDA 214.5
Key figures
Gross margin % 23.2% 28.5% 23.7%
EBITDA (before indirect expenses) % 12.7% 6.0% 12.0%
EBITDA % 8.0%
Interim financial report for H1 2024
Notes
4.0 Goodwill and intangible assets
The annual impairment test of intangible assets, including
goodwill and intellectual property rights, is performed at
31 December 2024, after the completion of budgets and
strategy plans for the coming period.
At 30 June 2024, management is of the opinion that there
has been no indication of impairment of the carrying
amount of goodwill and intellectual property rights, and
therefore no impairment test of goodwill and intellectual
property rights has been performed at 30 June 2024. For a
more detailed description, reference is made to the consoli-
dated and parent company financial statements for 2023.
7.0 Acquisition of enterprises
On May 1 2024 the Group gained control of the Swedish
company Svenska VA-Grossisten AB by acquiring all the
shares in the company.
With the acquisition AO expands its operation to the
capital area of Sweden and will be a foundation for
geographic expansion of AO Sweden. Svenska VA-Gross-
isten is a specialist wholesaler within water and drainage
products based in the Stockholm area of Sweden.
In Svenska VA-Grossistens first financial year that ended
December 31 2023 a revenue of 57 MDKK and an EBITDA of
9 MDKK was achieved. On a stand alone basis the company
expects growth in 2024.
Svenska VA-Grossisten will be a part of AO Sweden and of
the B2B segment in AO.
The fair value of acquired assets, liabilities and contingent
liabilities, and aqusition price for Svenska VA-Grossisten
has been calculated and can be specified as follows:
DKK thousands 2024
Property, plant and equipment 2,934
Inventories 4,203
Trade receivables 8,282
Other receivables 2,105
Cash 6,664
Interest bearing debt inluding lease
liabilities -1,937
Trade payables -8,860
Other payables -4,547
Acquired net assets 8,844
Goodwill 53,483
Rights -
Deferred tax liabilities -
Price of acquisition 62,327
Cash paid on acquisition 52,727
Cash acquired -6,664
Net cash effect 2024 from acquisition 46,063
Earn out liability recognised in balance 9,600
5.0 Inventories
No unusual inventory write-downs or reversals of inventory
write-downs have been recorded in the period.
6.0 Trade receivables
An estimate is used to assess the recoverability of receiv-
ables according to the same principles as applied in the
financial statements for 2023.
Interim financial report for H1 2024
Notes
7.0 Acquisition of enterprises (continued) 8.0 Subsequent events
On August 5 the acquisition of Workwear Group was
approved by the Danish competition authorities. The trans-
action was carried out on August 13 and Workwear Group
will be consolidated in the AO Group as of August 2024.
On June 30 2024 the Group gained control of the Norwegian
company Designkupp AS by acquiring all the shares in the
company.
With the acquisition AO gains a leading position in the
Norwegian online market for bathroom and home improve-
ment products. Designkupp operates VVSKupp.no, the
leading online store for bathroom products in Norway.
In the financial year that ended December 31 2023
Designkupp had a revenue of 82 MDKK and an EBITDA of 3
MDKK.
Designkupp will together with AO's existing webshops in
Norway form the Norwegian part of AO's B2C segment.
The fair value of acquired assets, liabilities and contingent
liabilities, and aqusition price for Designkupp has been
calculated and can be specified as follows:
DKK thousands 2024
Property, plant and equipment 408
Inventories 4,368
Trade receivables 823
Other receivables 149
Cash 4,027
Trade payables -6,409
Provisions
Other payables -1,733
Acquired net assets 1,633
Goodwill 46,395
Price of acquisition 48,027
Cash paid on acquisition 48,027
Cash acquired -4,027
Net cash effect 2024 from acquisition 44,000
Interim financial report for H1 2024
Brødrene A & O Johansen A/S
Rørvang 3, DK-2620 Albertslund, Denmark
CVR no. 58 21 06 17