Annual Report
2025
Brødrene A & O Johansen A/S
Rørvang 3, DK-2620 Albertslund, Denmark
CVR no. 58 21 06 17
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The customer
is at the centre of
everything that
we do at AO and
has been at the
core ever since we
were founded
Tradesmen
B2B
Construction
B2B
AO
employee
Consumers
B2C
Business
model
AO's omni-channel business model secures a
coherent customer experience for all customers
across touchpoints.
AO works with more than 1,000 suppliers and is continuously expanding our
range of products to target more customers and support one-stop-shopping.
The automated central warehouse in Albertslund and the logistics centre in
Horsens are corner stones in AO. 90% of all products are picked automatically,
thus ensuring both high ser vice quality and efficiency.
AO's product range and service are promoted across a number of different sales
channels that support the individual customer's preference.
AO is providing the best of two worlds via value-added digital services and close
customer relations through our local stores.
Moder n wholesaling is a matter of offering the right products at the right prices
and making customers’ lives as simple and as flexible as possible. The AO365
concept is one such example. With AO365, customers hold a digital key to all AO
stores, - securing both convenience and f lexibility for the individual customer.
AO's employees are a key ressource in ensuring that the business model works.
The knowledge and experience with the team is a significant value-add for the
entire value chain.
1.
Suppliers
More than 1,000 suppliers
provide the widest product
range in the wholesale
business
3.
Sales
channels
Omnichannel business
with 54 physical stores
in Denmark and sixe in
Sweden enabling 9,000
daily customer interactions.
Digital share of sales makes
up 53% of revenue. B2C
customers are served out
of more than 20 unique
webshops
2.
Central
warehouse
Automated warehouse
solution ready to serve
growth. 600,000 SKUs
available for sale
4.
Services
As a true omnichannel
business AO offers a
wide range of ser vices
from selfservice through
AO365 to advanced
project advice via our
compentency centres
In brief Performance Corporate governance Sustainabilit y statements
Strateg y
Financial statementsAnnual Report 2024
13
In brief
4 Our purpose
5 At a glance
6 Performance highlights
7 ESG highlights
8 Letter from the CEO
9 Highlights of the year
10 Five year summary
11 Outlook for 2026
Strategy
13 Business model
14 Industry and market trends
15 Corporate strategy
17 Strategic ambitions
Performance
19 Financial results
21 Q4 financials
22 B2B performance
23 B2C performance
Corporate governance
25 Risk management
29 Corporate governance
31 Board of Directors
36 Executive Board
37 Shareholder information
Sustainability statement
41 Executive summary
49 General
65 Environment
83 Social
98 Governance
Financial statements
105 Consolidated financial
statements
147 Parent company financial
statements
Management’s statement
and Auditor’s reports
176 Management’s statement
177 Independent Auditor’s Reports
180 Independent Auditor's limited
assurance report on the
Sustainability Statement
Company information
183 Company information
Contents
Follow us
→
Business model
13
Sustainability Statements
40
Management's review Financial statements
2AO Annual Report 2025
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
4 Our purpose
5 At a glance
6 Performance highlights
7 ESG highlights
8 Letter from the CEO
9 Highlights of the year
10 Five year summary
11 Outlook for 2026
In brief
AO Annual Report 2025 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Our purpose
AO was founded in 1914 with the purpose of creating value for our
customers. The purpose remains as relevant today as it was then.
In AO, we lend a hand. We are determined to contribute to making
our customers' lives easier. No matter the market conditions or the
current mega trends, walking an extra mile for the customer will always
be the AO way. AO is proud to be part of the customer team!
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
4AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
2025
Q4
At a glance
DK East
30
DK West
25
Sweden
9
Our long-term ambitions
Beat the market by
2%
year by year
EBITDA margin of
10%
9,30 0
daily customer interactions in our stores
Denmark 11
Norway 5
Sweden 4
Germany 2
Other 2
Showrooms 2
Stores
Solvency
40%+
and a net interest
bearing debt
of between 1.0-2.5
times EBITDA
Segments
24 B2C Webshops and 2 showrooms
B2B
82.1%
Serving the construction
industry and professional
tradesmen
B2B
79.4%
Serving the construction
industry and professional
tradesmen
B2C
17.9 %
Serving private DIY
consumers
B2C
20.6%
Serving private DIY
consumers
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
5AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
4,800
1,485
2021
5,375
1,119
417
702
2022
5,261
1,310
492
819
2023
5,429
1,234
405
829
2024
6,121
1,266
366 434
900 1,051
2025
6.1
784 889 912 968
24.3%
14.6%
6.0
8.7%
23.3%
15.2%
5.8
9.1%
24.4%
15.8%
5.6
5.7
7.7%
23.5%
16.6%
1,078
6.7%
7.1%
23.3%
17.2%
FTE
2021 2022 2023 2024 2025
2021 2022 2023 2024 2025
2021 2022 2023 2024 2025
Revenue
(MDKK)
Gross profit
(MDKK)
EBITDA
(MDKK)
Cost of doing
business* (MDKK)
Gross profit
Gross profit margin
EBITDA
Margin
Cost of doing business
Cost of doing business ratio
Net revenue
Revenue per employee
Performance highlights
* Defined as the difference between Gross profit and EBITDA.
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
6AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
Scope 3 results
overview*
t CO
2
e
Ta rget
2025
-64%
2020
Baseline
1,835
tonnes CO
2
1,794
tonnes CO
2
1,692
tonnes CO
2
1,563
tonnes CO
2
965
tonnes CO
2
2021 2022 2023 2024
660
tonnes CO
2
ESG highlights
AO’s first official CO₂ reduction target was to reduce emissions
in Denmark by 50% by 2025, which has now been achieved:
Scope 3 distribution on group level mapped for 2025:
Use of sold products is the main contributor to our scope 3 emissions
Purchasing patterns:
18%
Asia
1%
Other countries
81%
of our purchases
originates from Europe
73%
Cat 11 - Use of Sold
Products
23%
Cat 1 - Purchased
G&S
3%
Cat 4 - Upstream
transportation
1%
Other categories
■ Fuel for company vehicles ■ Fuel for forklifts ■ Gas for heating
■ Electricity ■ District Heating ■ Electricity for company vehicles
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
7AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
Geopolitical uncertainty remained
unusually high throughout 2025.
While we hope for a more stable
environment, it is our assessment
that rapid changes in business
dynamics will continue to be a
condition we must adapt to going
forward.
I am pleased to note that AO
delivered strong growth of 13%
in 2025. Both organic growth and
growth from acquired businesses
contributed positively to the
development.
For the first time ever, B2B activities surpassed the DKK
5 billion revenue milestone, and B2C exceeded DKK 1
billion in revenue.
I am particularly satisfied that AO strengthened its gross
margin, which increased from 23.3% in 2024 to 24.3% in
2025. This development reflects the successful execu-
tion of several strategic initiatives.
Our new family members, AO Workwear, VVS Kupp and
Svenska VA Grossisten, all delivered strong performances.
We saw high growth across the companies, and both AO
Workwear and VVS Kupp more than doubled earnings
compared to 2024. In AO Sweden, 2025 was a historic year
with three new sites opened in the Stockholm area.
In times of uncertainty, it becomes even more important
to remain clear on what AO aims to achieve and how we
position the company for the future.
In 2025, we reshaped our growth initiatives and the initi-
atives enabling future growth. Our ambition is to accel-
erate across all key areas – sales, profitability, speed
and competencies.
Letter from the CEO
AO reached important
milestones in 2025
In 2026, we will continue strengthening AO’s core
business while accelerating investments to prepare for
the future. In addition to normal cost inflation, I expect
extraordinary SG&A spending of at least DKK 25 million
related to new technology, further IT modernisation
and the addition of new competencies to support future
growth. In the short term, this will impact results, but
over time it will position AO even stronger to grow profit-
ably and achieve our ambitions.
We expect the market in 2026 to show modest organic
growth. However, as AO aims to grow faster than the
market, we expect revenue growth of 5% to 8% in 2026
and an EBITDA in the range of DKK 460–500m.
Finally, I would like to personally thank all AO employees
for their loyalty, dedication and hard work throughout
2025.
Best regards,
Niels A. Johansen
CEO
Niels A. Johansen CEO
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
8AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
Highlights of the year
AO saw a high growth in 2025,
with sales now 50% higher than in
2020.
During 2025, AO took important,
strategic steps to facilitate our
future growth agenda.
The acquisition of Svenska VA Grossisten in
Vallentuna in 2024 marked AO´s entrance to
the Stockholm area. In 2025, three additional
stores have been opened in Västerås, Uppsala
and Örebro.
In mid-2025, AO announced the acquisition of
the Danish website VVS-Eksperten, effective
from 2 January 2026. The acquisition will further
strengthen the portfolio of webshops within the
Danish B2C business.
The three companies acquired in 2024 have
proved to be a valuable addition to AO. Their
combined revenues in 2025 have been 23%
higher than their full year revenues for 2024,
and their earnings improved 85% compared
to full year numbers for 2024.
The 55 B2B stores in Denmark have ensured
significant growth in B2B and further strength-
ened the leading position AO holds within
ReMoVe. Customer visits increased to an average
of 9,300 daily customer interactions.
Two new B2C showrooms opened during 2025
in Lyngby and Ishøj. The showroom experience
is a valued offering to customers seeking a
“touch and feel” experience as part of their
purchase decision.
Additional warehouse capacity of 5,500 m
2
(70,000 m
3
) is being established to facilitate
further growth and efficiency.
Strategic steps
preparing for the future
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
9AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
Five year summary
(mDKK) 2025 2024 2023 2022 2021
Key figures
Revenue 6,120.8 5,429.3 5,261.0 5,375.0 4,800.5
Gross margin 1,485.0 1,266.3 1,234.3 1,310.3 1,119.3
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) 434.0 366.0 405.3 491.6 417.2
Operating profit or loss (EBIT) 292.6 246.1 292.2 383.6 316.7
Financial income and expenses, net (32.5) (36.0) (30.4) (6.1) 9.4
Profit or loss before tax (EBT) 260.1 210.1 261.8 37 7.4 326.1
Tax on profit or loss for the year (59.4) (46.7) (55.7) (83.0) (72.3)
Net profit or loss for the year 200.7 163.4 206.1 294.5 253.8
Non-current assets 2,378.5 2,231.1 1,805.9 1,727.3 1,472.7
Current assets 1,717.5 1,556.3 1,436.5 1,591.0 1,235.9
Total assets 4,096.0 3,787.4 3,242.4 3,318.3 2,708.5
Share capital 28.0 28.0 28.0 28.0 28.0
Equity 1,668.0 1,536.3 1,475.3 1,407.5 1,239.9
Non-current liabilities 766.4 831.6 535.2 539.5 295.9
Net Interest bearing debt 1,049.0 992.6 521.7 542.5 331.7
Current liabilities 1,661.6 1,419.5 1,231.9 1,371.4 1,172.7
Cash flow from operating activities 312.4 199.2 346.4 215.8 308.1
Cash flow from investing activities (200.1) (465.4) (130.2) (333.3) (212.7)
Of which investments in property, plant and
equipment, net (134.5) (116.2) (94.8) (164.5) (170.5)
Cash flow from financing activities (106.3) 232.1 (161.7) 15.5 (91.6)
Cash flow for the year 6.0 (34.1) 54.5 (102.0) 3.7
2025 2024 2023 2022 2021
Financial ratios
Organic growth 8.4% (1.0%) (5.1%) 7.7% 16.3%
Gross profit margin 24.3% 23.3% 23.5% 24.4% 23.3%
EBITDA margin 7.1% 6.7% 7.7% 9.1% 8.7%
EBIT margin 4.8% 4.5% 5.6% 7.1% 6.6%
Return on capital employed 7.4% 7.0% 8.9% 12.7% 12.4%
Return on equity 12.5% 10.9% 14.3% 22.2% 22.4%
Net gearing 2.4 2.7 1.3 1.1 0.5
Solvency ratio 40.7% 40.6% 45.5% 42.4% 45.8%
Book value* 59.6 54.9 52.7 50.3 44.3
Share price at the end of the year** 94.4 78.6 70.3 83.1 136.0
Price Earnings Basic (P/E Basic) 12.8 13.1 9.3 7.7 14.6
Dividend per DKK 1 share ** 3.75 3.0 3.75 5.25 4.5
Earnings per share (EPS Basic), DKK ** 7.4 6.0 7.6 10.8 9.3
Diluted earnings per share (EPS-D), DKK ** 7.3 6.0 7.6 10.8 9.3
Number of employees (FTE average) 1,078 968 912 889 784
Number of employees excluding temporary
workers (FTE average) 1,004 899 841 822 705
Number of employees at year-end (FTE) 1,018 981 833 850 734
Basic EPS and diluted EPS have been calculated in accordance with IAS 33. Other financial ratios have been prepared in accordance with the CFA
Society Denmark's 'Recommendations and Financial Ratios'. See definition of key figures on page 168
* Financial ratios for the respective periods have been restated retroactively for the share split.
** Comparative figures related to shares have been restated to reflect share split in 2022.
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
10AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
Outlook for 2026
Sensitivity to the outlook for 2026:
Geopolitical and macroeconomic tensions bring higher uncertainty to estimates than normally.
Continued change in the geopolitical and macroeconomic climate, supply disruptions and devel-
opments in raw material prices and interest rates may impact outlook for 2026.
Organic growth and gross margins are sensitive to revenue mix from ReMoVe versus projects and
to price pressure driven by competition.
Follow-up on previously announced outlook for 2025
Revenue ended at DKK 6,121m, corresponding to revenue
growth of 13%.
EBITDA for the year amounted to DKK 434m, corre-
sponding to 7.1% of net sales, and profit before tax
amounted to DKK 260m, corresponding to 4.2% of
net sales of DKK 6,121m. This is in line with the latest
outlook announced on 29 October 2025 of net sales of
DKK 6,000–6,100m, EBITDA of DKK 420–440m, and
profit before tax in the range of DKK 245–265m.
2026 outlook
AO is in a strong position to continue growing the busi-
ness, supported by the current momentum in the Group.
It remains AO’s ambition to achieve annual growth at
least 2% above market growth.
Market activity is expected to show moderate growth of
1–3% in 2026. AO’s momentum and the full-year effect
from acquired companies are expected to drive total
revenue growth of 5–8%.
Competition and pressure on gross profit margins
are expected to remain fierce. However, as residen-
tial construction and project activity are expected to
increase and interest rates are expected to remain
stable, customer demand and wholesale supply are
expected to gradually become more balanced.
In addition to normal cost inflation, additional costs of at
least DKK 25m are expected, primarily related to invest-
ments in new technology and the recruitment of new
competencies to support future growth.
Depreciation and amortisation are expected to increase
by approximately DKK 25m compared to 2025, reflecting
the higher investment levels in previous years.
Based on the above estimates and assumptions, AO
expects revenue of DKK 6,400–6,600m, EBITDA in the
range of DKK 460–500m, and profit before tax in the
range of DKK 260–300m.
The 2026 guidance is as follows
2025
Revenue, (mDKK)
6,121
EBITDA, (mDKK)
434
EBT, (mDKK)
260
Outlook 2026
6,400 – 6,600
Growth 4.6% to 7.8%
460 – 500
EBITDA margin 7.0% to 7.8%
260 – 300
EBT margin 3.9% to 4.7%
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
11AO Annual Report 2025
Our purpose At a glance Performance highlights ESG highlights Letter from the CEO Highlights of the year Five year summary Outlook for 2026
13 Business model
14 Industry and market trends
15 Corporate strategy
17 Strategic ambitions
Strategy
AO Annual Report 2025 12
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Business model Industry and market trends Corporate strategy Strategic ambitions
14AO Annual Report 2025
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Business model Industry and market trends Corporate strategy Strategic ambitions
15AO Annual Report 2025
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Business model Industry and market trends Corporate strategy Strategic ambitions
16AO Annual Report 2025
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Business model Industry and market trends Corporate strategy Strategic ambitions
17AO Annual Report 2025
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Business model Industry and market trends Corporate strategy Strategic ambitions
19 Financial results
21 Q4 financials
22 B2B performance
23 B2C performance
Performance
AO Annual Report 2025 18
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Financial results
Financial results
Revenue
Organic revenue development was +8.4% (-1.0%) and
revenue for 2025 was DKK 6,121m (DKK 5,429m) just
above latest outlook from the Q3 report. On an organic
level, revenue development sustained the momentum
with 8.4% growth in the second half of the year.
Gross profit
Gross profit ended at DKK 1,485m (DKK 1,266m) corre-
sponding to a gross profit margin of 24.3% (23.3%).
Adjusted for the one-off gain from sale of real estate
in 2024 the gross profit margin improved by 1.2%-p.
Despite intense competition, the margin erosion within
the B2B sector has been successfully halted. Margins in
the B2C business have substantially improved helped by
full year effect from acquisitions.
External costs and staff costs
In total, the cost of doing business measured as external
operating costs and staff costs accounted for 17.2%
of revenue (16.6%). Cost levels are structurally higher
in the B2C business, and the increased share of B2C
revenue therefore drove a higher cost of doing business
for the Group. Approximately one third of the increase
in external operating costs and staff costs related to the
full-year effect of businesses acquired in 2024.
In 2025, AO delivered strong revenue growth of 12.7%, underpinned
by solid organic development and the full-year effect of acquisitions
completed in 2024. Approximately one third of the growth was
attributable to prior-year acquisitions. EBITDA amounted to DKK 434m
(DKK 366m), and the gross profit margin ended at 24.3% (23.3%).
Organic momentum was sustained throughout the year.
Strong growth underpinned
by organic momentum and
full-year acquisition effects
19
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Financial results Q4 financials B2B performance B2C performance
Year end FTEs were 1,018 (981) after opening additional
stores in Sweden.
EBITDA
EBITDA ended at DKK 434m (DKK 366m), corresponding
to an EBITDA margin of 7.1% (6.7%). Adjusted for the gain
from the sale of a builiding in 2024 the EBITDA margin
improved 0.6%-p. EBITDA margins have continued to
improve in the B2C business where a new scale has been
reached after the acquisitions during 2024. The results of
the segments are presented in the following pages.
Financials
Net financials amounted to DKK -33m (DKK -36m).
Interest rates have decreased slightly compared to 2024,
while the average debt level has been kept stable.
Earnings before tax (EBT)
EBT ended at DKK 260m (DKK 210m).
Income tax
Income tax amounted to DKK -59m (DKK -54m), corre-
sponding to an effective tax rate of 22.8% (22.2%).
Earnings after tax (EAT)
EAT ended at DKK 201m (DKK 163m).
Equity
At the end of the year equity amounted to DKK 1,668m
(DKK 1,536m). Thus, the solvency ratio at year-end was
40.7% (40.6%) and the target of maintaining a solvency
of 40%+ was achieved.
Cash flows
Average net working capital for the year was 7.0% (6.3%)
of revenue. Net working capital at the end of the year was
7.6% (7.1%) of revenue.
Cash flow from operating activities totalled DKK 312m
(DKK 199m) corresponding to 4.9% of revenue (3.7%).
Change in receivables was DKK -82m (DKK -65m) driven
by the Q4 activity as well as timing of payments.
Change in inventories contributed with a cash flow of
DKK -82m (DKK -2m).
Change in trade payables contributed with a cash flow of
DKK +114m (DKK -12m)
Cash flow from investing activities totalled DKK -200m
(DKK -465m) impacted by the investments in expansion
of the automated warehouse in Albertslund as well as IT
investments in integrations and new IT solutions.
Cash flow from financing activities was DKK -106m (DKK
+232m) reflecting a high level of dividend payouts.
Net interest bearing debt amounted to DKK 1,048m
(DKK 993m) at year-end. Financial gearing was 2.4 times
EBITDA (2.7 times). AO has a target gearing between 1.0
and 2.5 times EBITDA.
20
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Financial results Q4 financials B2B performance B2C performance
Q4 financials
Organic momentum carried into Q4 resulting in revenue growth of
7.9%. Solid B2B sales and growth in market share was supported by
satisfactory Black Week sales in the B2C segment. Margins improved
compared to last year further increasing the earnings for the quarter.
Revenue
Organic revenue development was +7.9% (+4.1%)
with growth in both segments. Q4 Revenue was DKK
1,673m (DKK 1,550m) and 2025 organic revenue
growth has been achieved in all four quarters of 2025.
Gross profit
Gross profit of DKK 429m (DKK 374m) corresponds to
a profit margin of 25.6% (24.1%). Strong B2C perfo-
mance as well as margin initiatives have increased
margins.
External expenses and staff costs
Driven by acquisitions external expenses and staff
cost in Q4 increased to DKK 280m (DKK 251m) corre-
sponding to a cost of doing business ratio of 16.7%
(16.2%). Higher share of B2C revenue increases cost
of doing business ratio driven by sales related costs.
EBITDA
EBITDA ended at DKK 149m (DKK 123m), corre-
sponding to an EBITDA margin of 8.9% (7.9%).
Earnings before tax (EBT)
EBT of the quarter ended at DKK 106m (DKK 80m).
MDKK Q4 2025 Q4 2024
Revenue 1,672.8 1,550.4
Cost of sales (1,244.2) (1,176.8)
Gross profit 428.6 373.6
Other operating income 0.4 0.4
Gross margin 429.1 374.0
External expenses (108.0) (92.2)
Staff costs (171.8) (158.7)
Earnings before interest, taxes, depreciation and amortisation (EBITDA) 149.3 123.1
Depreciation and amortisation (37.1) (32.5)
Operating profit or loss (EBIT) 112.2 90.6
Financial income 3.0 5.4
Financial expenses (9.5) (16.0)
Profit or loss before tax (EBT) 105.8 80.0
Tax on profit or loss for the year (21.4) (18.5)
Net profit or loss for the year 84.4 61.5
21
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Financial results Q4 financials B2B performance B2C performance
B2B performance
B2B
The B2B business services the professional tradesmen as well as
large construction companies through our omni-channel business
model. In Denmark, AO is the wholesaler with the broadest product
range serving more trades than our competitors. The B2B segment has
roughly 70% of its revenue within repair and maintenance and 30%
within projects. AO has gained market share in the Danish B2B market
for the full year as well as in Q4.
Revenue
Segment revenue was DKK 5,028m (DKK 4,623m) for
the year and DKK 1,329m (DKK 1,246m) for the quarter.
Organic momentum has been carrried through the year
and segment revenue exceeded 5bn for the first time.
Gross profit
Gross profit of DKK 1,123m (DKK 1,012m) corresponds
to a profit margin of 22.3% (21.9%) for the year. Fierce
competition remains but initiatives are taking effect.
Gross profit margin in Q4 at 22.9% (22.2%).
Direct expenses
Cost inflation as well as new hires have contributed to
an increase in direct expenses which ended at DKK 554m
(DKK 508m). Three new stores have been opened in
Sweden.
EBITDA
Segment EBITDA ended at DKK 568m (DKK 507m).
Distribution of sales channels
MDKK 2025 2024 Q4 2025 Q4 2024
Revenue 5,027.6 4,623.5 1,328.8 1,246.3
Cost of goods sold (3,706.6) (3,438.7) (970.8) (927.0)
Product margin 1,321.0 1,184.8 358.0 319.3
Distribution (198.5) (173.0) (53.1) (42.9)
Gross profit 1,122.5 1,011.8 304.9 276.4
Direct expenses (554.3) (504.7) (141.2) (128.2)
EBITDA before indirect expenses 568.2 507.1 163.7 148.2
Key figures
Gross margin % 22.3% 21.9% 22.9% 22.2%
EBITDA % 11.3% 11.0% 12.3% 11.9%
Physical
54%
Digital
46%
22
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Financial results Q4 financials B2B performance B2C performance
B2C performance
B2C
AO is the market leader within online DIY sales in Denmark and has
further strengthened its position across its core B2C categories during the
year. The Group holds leading positions within online DIY bathroom sales
in Norway and within workwear in Denmark. The B2C platform features an
extensive portfolio of specialized websites that address diverse customer
needs and markets. Supported by robust organic growth, this segment
has consistently expanded its contribution to Group revenue.
Revenue
Segment revenue was DKK 1,093m (DKK 806m) for the
year and DKK 344m (DKK 304m) for the quarter. The B2C
segment delivered a strong Q4, supported by solid 'Black
Week' sales. As a result, the B2C segment accounted for
more than 20% of Group revenue in Q4.
Gross profit
Gross profit of DKK 363m (DKK 240m) corresponds to a
profit margin of 33.2% (29.8%). A higher share of work-
wear and clothing increased the segment margins.
Direct expenses
In 2025, direct expenses increased to DKK 235m (DKK
168m). In the B2C segment, direct expenses comprise
Google-related costs that correlate with revenue growth.
Direct expenses in relation to the revenue were 21.5%
(20.9%).
EBITDA
Segment EBITDA ended at DKK 127m (DKK 72m) for the
year. New top line scale to the B2C business has shifted
the earning margins to be higher in the B2C segment.
Segment EBITDA margin grew to 15.8% (12.1%) in Q4.
Number of households serviced
MDKK 2025 2024 Q4 2025 Q4 2024
Revenue 1,093.2 805.8 344.0 304.1
Cost of goods sold (658.0) (504.7) (197.7) (182.7)
Product margin 435.2 301.1 146.3 121.4
Distribution (72.7) (60.8) (22.3) (23.6)
Gross profit 362.5 240.3 124.0 97.8
Direct expenses (235.1) (168.1) (69.7) (61.1)
EBITDA before indirect expenses 127.3 72.2 54.2 36.7
Key figures
Gross margin % 33.2% 29.8% 36.0% 32.2%
EBITDA % 11.6% 9.0% 15.8% 12.1%
460,7002024
520,6242025
23
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Financial results Q4 financials B2B performance B2C performance
25 Risk management
29 Corporate governance
31 Board of Directors
36 Executive Board
37 Shareholder information
Corporate
governance
AO Annual Report 2025 24
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Risk management
The identification and management of business
risks form part of the annual strategic plan for
the Group, which is approved by the Board of
Directors. The Executive Board and the Board
of Directors also establish the framework for
determination of credit risk, currency risk, interest
rate risk and liquidity risk.
Risk management is an integral part of the business management at AO.
We prioritise having the necessary competencies within the business areas
in which we operate. A yearly reassessment of risks and methods for risk
identification and management is conducted. To define risk appetite and
assess risks, risks are mapped in a classical risk model based on probability
(frequency) and financial impact.
Risk identification
The focus of the risk management process is to identify and evaluate opera-
tional and strategic risks for AO in the short, medium, and long term. These
risks are defined as events or developments that have a significant negative
impact on AO's ability to:
· achieve profit goals
· execute on the strategy
· maintain a 'license to operate'.
Both gross risks (inherent risk) and net risks (residual risk) are considered.
Gross risks are defined as the product of the consequence and probability of a
risk, assuming that no risk mitigation measures are in place. Net risks are the
product of the remaining risk after risk-reducing measures. Net risks should
align with AO's risk appetite.
Risk assessment
The significance of risks is assessed as a combination of the probability of the
risk materialising and the consequences if it does. The probability is evalu-
ated based on the frequency with which AO expects the risk to occur, while
the consequences are assessed on various parameters:
· impact on results (direct or indirect financial effect)
· impact on reputation
· compliance (license to operate, including personal safety).
Risk Management
The purpose of identifying, assessing, and subsequently managing risks is
to reduce net risk to an acceptable level in accordance with the decided level
of risk appetite. In the risk management system, we employ four strategies to
handle risks:
· avoid – cease or make changes to activities that pose risks.
· transfer – shift risk to a third party.
· mitigate – seek to minimise identified risks to an acceptable level.
· accept – monitor risk and create contingency plans if the risk occurs.
Dynamic risk adaption
Mitigation
Devise and
implement stra
tegies to reduce
the impact of
risks.
Reporting
Communication
of identified
risks and results
from analysis to
stakeholders.
Analysis
Evaluation of risk
nature, proba-
bility, and impact
across various
business aspects.
Identification
Systematic
recognition of
potential risks
within AO's
operations.
Ongoing key risk reassessment Tracking
25
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
A
B
C
D
E
F
G
H
Probability of Ocurrence
Severity of Impact
Low High
High
Net risks
Changes to previously
identified risks
The risk assessment remains unchanged compared with the
previous year, with the same key risks identified and with no
material changes to the associated risk ratings.
A
Market and competition dynamics
B
Geopolitical and macroeconomic uncertainty
C
Credit Management
D
Global supply chain
E
Environmental & products master data
F
IT risks
G
Cyberattack
H
Dependency on service providers
Risk map
26
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
Market and competition
dynamics
Geopolitical and
macroeconomic uncertainty
Credit
Management
Global supply chain
Description
Risk of new competitors entering into or expanding
in the Danish market. Continued and accelerating
consolidation amongst customer groups.
The risk is unchanged
Risk of market decline due to geopolitical or macro-
economic uncertainties.
The risk is unchanged
Risk of losses associated with extending credit to
customers.
The risk is unchanged
Risk of product unavailability due to supply chain
uncertainties.
The risk is unchanged
Impact
The risk of increased consolidation in the Danish
market creating stronger competitors and customers
with higher bargaining power could mean that AO
loses competitive advantages and is unable to meet
the goal of gaining market share or maintaining profit
margins.
Probability:
■ High
Impact:
■ High
Geopolitical uncertainties can lead to macroe-
conomic downturns involving inflation, rising
interest rates, increasing energy costs, etc. This
could impact the construction industry overall and
decrease market demand.
Probability:
■ High
Impact:
■ Medium
Customer credits are an established part of the
wholesale industry, and the majority of the group's
sales are conducted on credit. The risk increases
during downturns in the construction industry,
where the likelihood of sudden bankruptcies
among the customer base rises.
Probability:
■ Medium
Impact:
■ Medium
In the event that AO cannot supply the products
customers need, there is a risk of losing customers
to competitors, ultimately affecting revenue and
earnings.
Probability:
■ High
Impact:
■ Medium
Risk response
Mitigation
To minimise the potential impact, AO aims to continue
making it as easy and transparent as possible for
customers to trade with AO. Emphasis on streamlining
the supply chain and overhead costs is intended to
ensure that AO can remain competitive in terms of
pricing, even compared to larger competitors.
Acceptance
AO acknowledges that the risk cannot be entirely
avoided and actively monitors the actions of existing
and potential new competitors.
Acceptance
AO acknowledges that the risk cannot be entirely
avoided and actively works to monitor market
developments. In budgets and forecasts, AO estab-
lishes the foundation for business initiatives. AO
aims to have a scalable business with lower over-
head costs than competitors, which can mitigate
the impact.
Mitigation
AO has established a credit policy and continu-
ously monitors customers' outstanding balances.
Accounts with overdue balances are closed,
reducing the risk of further losses.
Transfer
AO insures larger customer engagements through
credit insurance, providing coverage against signif-
icant individual losses.
Acceptance
There is an acceptance of a certain level of risk in
customer credits.
Mitigation
AO collaborates closely with its key suppliers,
gaining an understanding of their supply situations.
In dialogue with the sales and procurement organ-
isation, min/max inventory levels are established,
and shortages are monitored. Where possible,
efforts are made to have alternative products and
suppliers for essential items. During crisis periods,
buffer stocks are built up to ensure AO can fulfil
customer orders.
■ High
■ Medium
DCA B
27
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
High
Medium
HGE F
Environmental &
products master data
IT risks Cyberattack
Dependency on
service providers
Description
Risk of not being able to adhere to regulatory and
customer driven demands for detailed data on envi-
ronmental impact of the products sold.
The risk is unchanged
Risk of breakdowns in business-critical systems,
including the failure to fully leverage IT integra-
tions.
The risk is unchanged
Risk of IT breakdown due to a cyberattack.
The risk is unchanged
Risk of discontinued service from key service
providers causing business disruptions.
The risk is unchanged
Impact
Inadequate product documentation can reduce
transparency in the assortment, making it harder
for customers to assess a product's environmental
impact. This may lead to lost business opportunities
as customers' expectations are not met. Additionally,
the required data collection from suppliers can be
challenging and requires significant effort in data
registration and validation.
Probability:
■ Medium
Impact:
■ Medium
Frequent but short-term IT outages resulting in
operational losses, leading to an inability to main-
tain the desired efficiency and service level for AO's
customers. There is a risk that the lack of optimisa-
tion in operations could result in productivity loss.
Probability:
■ Medium
Impact:
■ High
Business disruption due to compromised data,
denial-of-service attacks, ransomware, etc. are
among the consequences of a cyberattack. The
duration of such a business disruption can be
lengthy and have significant impact on AO's
ability to conduct business.
Probability:
■ High
Impact:
■ Medium
Sudden discontinued service from key service
providers could disrupt AO's ability to deliver
goods timely or negatively impact the efficiency
of the logistics. A lack of ability to live up to AO's
commitments towards customers could result in
loss of business affecting revenue and earnings.
Probability:
■ Medium
Impact:
■ High
Risk response
Mitigation
AO works primarily with major suppliers and a profes-
sional collaboration is established in order to get high
quality product documentation. Every effort is being
made to get EPDs (Environmental Product Documenta-
tion) on the products as well as information relevant
for certified construction projects such as Swan-la-
beled construction and DGNB.
AO is educating its own work force to support
customers in their efforts towards legal and regulatory
compliance. Master Data Governance plays an integral
part in ensuring availability of documentation.
Mitigation
AO collaborates closely with its key partners and
works on expanding a robust IT organisation to
support AO's activities.
Mitigation
AO has established an IT Security Council reporting
to AO's management, which provides guidelines for
AO's IT security. Business Continuity Plans are in
place to mitigate the impact.
Transfer
AO has obtained insurance coverage against
cyberattacks, thus reducing but not eliminating the
potential impact.
Mitigation
AO has a close collaboration with its key service
providers. On an ongoing basis AO coordinates
future demands for services with its suppliers in
order to ensure that needs are met. Alternative
suppliers are identified for key services.
28
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
Corporate governance
The Board of Directors/Audit Committee and the Executive Board
have overall responsibility for the Group’s internal controls and risk
management in connection with the financial reporting process,
including compliance with applicable legislation and other regulations
in relation to financial reporting.
AO has established internal control and risk management
systems to ensure that financial reporting is carried out
in accordance with IFRS and other accounting regulations
applicable to listed Danish companies. In addition, the
systems increase the certainty that the internal and
external financial reporting provides a true and fair pres-
entation that is free from material misstatement.
The Audit Committee monitors the control and risk
management systems in the Group on an ongoing basis.
In this context, risks that may affect the Group’s financial
reporting process are likewise assessed on an ongoing
basis. The risk assessment is based on significant items
and other business-critical areas.
Two-tier governance structure
Shareholders
Executive Board
Organisation
Audit Committee Nomination Committee Remuneration Committee
Recommendations on corporate governance
All recommendations have been analysed and consid-
ered by the Board of Directors and the Executive Board of
Brødrene A & O Johansen A/S, and the Board of Directors
is of the opinion that the management of Brødrene A & O
Johansen A/S complies with the most important recom-
mendations in the report.
The company has opted to implement another approach
to five areas of the Danish Corporate Governance recom-
mendations in 2025, unchanged compared to 2024.
Board of Directors
Group Management
29
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
A summary of the areas where the Group has chosen
to follow a different practice is provided below:
· Given the company’s ownership structure, the Board
reserves the right to reject takeover bids in certain
cases without submission to shareholders.
· The Chief Executive Officer is responsible for the
general management of the company while also
serving as a member of the Board.
· 3 out of 5 of the Directors elected by the Annual
General Meeting are not independent as they have
been members for more than 12 years.
· 2 out of 4 of the members of the Audit Committee are
not independent. This committee is made up solely of
members of the company’s Board of Directors, which
is why there is no requirement for independence. The
chair of the Audit Committee is independent.
Brødrene A & O Johansen A/S has prepared a full report
on corporate governance for the 2025 financial year
under Section 107b of the Danish Financial Statements
Act. This can be viewed or downloaded at:
→ Corporate Governance 2025
Reporting on the Danish Financial
Statements Act 107f:
AO’s Board of Directors consists of eight members, of
whom five are elected by the Annual General Meeting and
three are employee-elected. Among the board members
elected by the Annual General Meeting, one member
is female, and the underrepresented gender therefore
represents 20%. Of the three employee-elected board
members, one member is female, and the underrepre-
sented gender therefore represents 33%.
Under the Danish Gender Balance Act, this composition is
considered an even gender distribution with regard to the
employee-elected board members, whereas AO does not
yet have an even gender distribution among the members
elected by the Annual General Meeting.
At present, the Executive Board consists of four
members, of whom one member is female.
In accordance with the definition in the Danish Gender
Balance Act, AO has six female members (30.0%) and 14
male members (70.0%) at other management levels. The
gender distribution at other management levels is not yet
considered even under the Danish Gender Balance Act.
Management has set a target for 30 June 2026 to increase
the representation of the underrepresented gender at
other management levels to more than 30%.
During 2025, Management adjusted the hiring process and
the internal promotion assessment process to support an
increase in the representation of the underrepresented
gender, including by ensuring that candidates from the
underrepresented gender are explicitly included among
the final candidates. Furthermore, the Board of Directors
will be considering options to increase the representa-
tion of the underrepresented gender among the board
members elected by the Annual General Meeting.
30
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
31
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
32
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
33
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
Members of the Board of Directors
GOV-1
34
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
Members of the Board of Directors
GOV-1
35
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
36
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
Shareholder information
Dividend
The Board of Directors proposes that a dividend of DKK
3.75 per DKK 1 share be distributed for 2025 corre-
sponding to a payout ratio of 52.3%. The proposal is
in line with the capital allocation policy which states a
payout ratio of 33% - 50%.
Shareholders, capital, and voting rights
AO has two classes of shares. Class A shares cannot be
negotiated without the approval of the Board, whereas
Class B shares are freely negotiable. In addition, the B
share class carries special rights in the form of payment
of cumulative dividends.
The Company’s nominal share capital is DKK 28,000k. Of
which DKK 5,640k are Class A shares and DKK 22,360k
are Class B shares. Each class A share of DKK 100 carries
1,000 votes, whereas each Class B share of DKK 1 carries
1 vote. In addition to the difference in the number of votes,
the two share classes differ in the following respects:
The Class A shares are non-negotiable instruments,
whereas the Class B shares are listed on Nasdaq Copen-
hagen under ID code DK0061686714.
The holders of Class B shares have a preferential cumu-
lative dividend right of 6%. This means that no dividend
will be paid for Class A shares until the Class B shares
have achieved a cumulative dividend of 6%.
In the event of liquidation, Class B shares take prece-
dence over Class A shares.
Changes to the Company’s Articles of Association
require that two thirds of cast votes and two thirds of the
represented capital at a general meeting are in favour of
the change.
The Company’s Board of Directors consists of eight
members who do not have to be shareholders. Five
members are elected by the Annual General Meeting,
and three members are elected by the staff. Holders
of Class B shares are entitled to appoint and elect one
Board member, while holders of Class A shares elect the
remaining Board members elected by the Annual General
Meeting.
A share B share
Shares 56,400 22,360,000
Nominal value per share (DKK) 100 1
Nominal value (DKK) 5,640,000 22,360,000
Votes per share 1,000 1
Treasury shares 761,062
Stock Exchange Nasdaq Copenhagen
Ticker: AOJ B
ISIN: DK0061686714
Share price year-end (DKK) 94.4
Market Cap year-end (MDKK) 532.4 2,110.8
AO shares
Dividend payments
MDKK 2025 2024 2023 2022 2021
Dividend 105.0 84.0 105.0 147.0 126.0
Payout ratio 52% 51% 50% 50% 50%
37
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
0
50000
100000
150000
200000
250000
Jan
DKK Shares
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
40
50
60
70
80
90
100
110
By making factual, relevant, and reliable information
available to shareholders and other stakeholders, the
management of Brødrene A & O Johansen A/S aims
at giving the share market the best possible basis for
pricing the Company’s shares fairly.
Brødrene A & O Johansen A/S’s Investor Relations
activities are designed to ensure that the disclosure of
information is in accordance with the current disclosure
requirements established by Nasdaq Copenhagen A/S.
Brødrene A & O Johansen A/S’s financial communication
with stakeholders takes place mainly through company
announcements, quarterly webcasts, and investor
meetings.
Brødrene A & O Johansen A/S does not comment on any
information relating to financial results or expectations
in the period between the end of an accounting period
and the date on which results are published. The Compa-
ny’s management will refrain from holding investor
meetings and the like in this period. The Company will
also be reluctant to arrange meetings in periods where it
is dealing with matters that could result in decisions that
are to be announced to the public.
Investor relations policy
Financial calendar
26/2 2026 Annual Report
20/3 2026 Annual General Meeting
30/4 2026 Quarterly Report Q1 2026
17/8 2026 Quarterly Report Q2 2026
28/10 2026 Quarterly Report Q3 2026
Analysts
The AO share is covered by the following
financial institutions:
· SEB
Investor contacts
CEO Niels A. Johansen
CFO, Deputy CEO Per Toelstang
Head of IR Nicolaj Harmundal Petersen
IR@AO.dk
Number
of Class A
shares
(DKK 100)
Number
of Class B
shares
(DKK 1)
Number of
shares –
nominal value Capital, % Votes, %
Avenir Invest ApS 56,220 208,000 5,830,000 20.82% 71.65%
Niels A. Johansen 160 2,706,400 2,722,400 9.72% 3.64%
Other registered
shares 20 17,062,594 17,0 6 4,594 60.94% 21.69%
Unregistered shares 0 1,621,944 1,621,944 5.79% 2.06%
Total, excluding
treasury shares 56,400 21,598,938 27,238,938 97.28% 99.03%
Treasury shares 0 761,062 761,062 2.72% 0.97%
Total 56,400 22,360,000 28,000,000 100.00% 100.00%
Total volume Closing price
AO share price 2025
38
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Risk management Corporate governance Board of Directors Executive Board Shareholder information
Risk management Corporate governance Board of Directors Executive Board Shareholder information
39
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
49 General
65 Environment
83 Social
98 Governance
Annual Report 2025 40
Executive summary General Environment Social Governance
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Executive summary
Highlights of 2025 include:
→ AO Denmark has reached our original CO
2
-target for Scope 1 & 2 by
reduction CO
2
-emissions by 64% from 2020-2025
→ Fossil fuels across Denmark, Sweden, and Norway are almost elimi-
nated with the only exceptions of gas heating in a few locations and a
few heavy vehicles that cannot be electrified yet.
→ ISO Certification expanded to include the new swedish stores and AO
Workwear
→ 52% of AO's employees have worked for AO for more than 5 years
→ AO implemented a supplier assessment system to support the risk
assessment of our value chain
→ AO continues to strengthen its position as the Everyday Green Partner
by increasing the efforts to meet customers’ demands for environmental
data and services for sustainability certified construction projects. This
will continue to be a key priority in the years to come
41
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AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
Executive summary General Environment Social Governance
42
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
43
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
Executive summary General Environment Social Governance
44
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
Executive summary General Environment Social Governance
45
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
46
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
47
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
I
M
a
n
48
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
Executive summary General Environment Social Governance Executive summary
51 General disclosures
General
Annual Report 2025 49
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Executive summary General Environment Social Governance
ESRS 2 General disclosures
Section/
report Page
BP-1 General basis for preparation of sustainability statements SUS 51
BP-2 Disclosures in relation to specific circumstances SUS 51-52
Datapoints that derive from other EU legislation SUS 62-64
GOV-1
The role of the administrative, management and supervisory
bodies SUS
54
GOV-2
Information provided to and sustainability matters addressed
by the undertaking’s administrative, management and super-
visory bodies SUS 53-54
GOV-3
Integration of sustainability-related performance in incentive
schemes SUS 54
GOV-4 Statement on sustainability due diligence SUS 54
GOV-5
Risk management and internal controls over sustainability
reporting SUS 54
SBM-1 Strategy, business model and value chain MR 13-17
SBM-2 Interests and views of stakeholders SUS 56
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model SUS 58-61
IRO-1
Description of the process to identify and assess material
impacts, risks and opportunities SUS 57
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement SUS 50
ESRS E1 Climate change
Section/
report Page
ESRS 2
GOV-3
Integration of sustainability-related performance in incentive
schemes SUS 54
E1-1 Transition plan for climate change mitigation SUS 67
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model SUS 58, 66
ESRS 2
IRO-1
Description of the processes to identify and assess material
climate-related impacts, risks and opportunities SUS 66
E1-2
Disclosure Requirement E1-2 – Policies related to climate
change mitigation and adaptation SUS 67
E1-3
Disclosure Requirement E1-3 – Actions and resources in
relation to climate change policies SUS 67-68
E1-4 Targets related to climate change mitigation and adaptation SUS 68
E1-5 Energy consumption and mix SUS 68
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions SUS 69-71
E1-7
GHG removals and GHG mitigation projects financed through
carbon credits - -
E1-8 Internal carbon pricing - -
E1-9
Anticipated financial effects from material physical and
transition risks and potential - -
ESRS E2 Pollution
Section/
report Page
ESRS 2
IRO-1
Description of the processes to identify and assess material
pollution-related impacts, risks and opportunities SUS 73
E2-1 Policies related to pollution SUS 73
E2-2 Actions and resources related to pollution SUS 74
E2-3 Targets related to pollution SUS 74
E2-4 Pollution of air, water and soil - -
E2-5 Substances of concern and substances of very high concern SUS 75
E2-6
Anticipated financial effects from pollution-related impacts,
risks and opportunities - -
ESRS E5 Resource use and circular economy
Section/
report Page
ESRS 2
IRO-1
Description of the processes to identify and assess material
resource use and circular economy-related impacts, risks and
opportunities SUS 76
E5-1 Policies related to resource use and circular economy SUS 76
E5-2
Actions and resources related to resource use and circular
economy SUS 76-77
E5-3 Targets related to resource use and circular economy SUS 77
E5-4 Resource inflows SUS 78
E5-5 Resource outflows SUS 78
E5-6
Anticipated financial effects from resource use and circular
economy-related impacts, risks and opportunities - -
ESRS S1 Own workforce
Section/
report Page
ESRS 2
SBM-2 Interests and views of stakeholders SUS 84
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model SUS 84
S1-1 Policies related to own workforce SUS 84-85
S1-2
Processes for engaging with own workforce and workers’
representatives about impacts SUS 86
S1-3
Processes to remediate negative impacts and channels for own
workforce to raise concerns SUS 87
S1-4
Taking action on material impacts on own workforce, and
approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of
those actions SUS 88
S1-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities SUS 89
S1-6 Characteristics of the undertaking’s employees SUS 89-90
IRO-2
S1-7
Characteristics of non-employees in the undertaking’s own
workforce SUS 91
S1-8 Collective bargaining coverage and social dialogue SUS 91
S1-9 Diversity metrics SUS 90
S1-10 Adequate wages SUS 85
S1-11 Social protection SUS 85
S1-12 Persons with disabilities - -
S1-13 Training and skills development metrics SUS 91
S1-14 Health and safety metrics SUS 92
S1-15 Work-life balance metrics SUS 92
S1-16 Remuneration metrics (pay gap and total remuneration) SUS 93
S1-17 Incidents, complaints and severe human rights impacts SUS 93
ESRS S2 Workers in the value chain
Section/
report Page
ESRS 2
SBM-2 Interests and views of stakeholders SUS 96
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction
with strategy and business model SUS 96
S2-1 Policies related to value chain workers SUS 96
S2-2 Processes for engaging with value chain workers about impacts SUS 96-97
S2-3
Processes to remediate negative impacts and channels for value
chain workers to raise concerns SUS -
S2-4
Taking action on material impacts on value chain workers,
and approaches to managing material risks and pursuing
material opportunities related to value chain workers, and
effectiveness of those actions SUS 97
S2-5
Targets related to managing material negative impacts,
advancing positive impacts, and managing material risks and
opportunities SUS 97
ESRS G1 Business conduct
Section/
report Page
ESRS 2
GOV-1
The role of the administrative, supervisory and management
bodies MR 99
ESRS 2
IRO-1
Description of the processes to identify and assess material
impacts, risks and opportunities SUS 99
G1-1 Business conduct policies and corporate culture SUS 100
G1-2 Management of relationships with suppliers - 101
G1-3 Prevention and detection of corruption and bribery SUS 102-103
G1-4 Incidents of corruption or bribery SUS 102-103
G1-5 Political influence and lobbying activities - -
G1-6 Payment practices SUS 101
Cross-cutting and topical standards
51
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
52
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
53
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
54
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
55
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
Customers Employees Suppliers Environment Shareholders
56
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
IMPACT ON THE ENVIRONMENT & PEOPLE
57
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
58
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
59
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
60
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
61
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
62
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
63
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
64
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
General disclosuresExecutive summary General Environment Social Governance
66 E1 Climate change
73 E2 Pollution
76 E5 Resource use and circular economy
79 EU Taxonomy
Environment
Annual Report 2025 65
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Executive summary General Environment Social Governance
66
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
67
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
68
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
69
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
70
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
71
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
Ta rget
AO Denmark
The carbon emissions for scope 1 and 2
2025
-64%
2020
Baseline
1,835
tonnes CO
2
1,794
tonnes CO
2
1,692
tonnes CO
2
1,563
tonnes CO
2
965
tonnes CO
2
2021 2022 2023 2024
660
tonnes CO
2
■ Fuel for company vehicles ■ Fuel for forklifts ■ Gas for heating
■ Electricity ■ District Heating ■ Electricity for company vehicles
72
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E1 Climate changeExecutive summary General Environment Social Governance
73
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E2 PollutionExecutive summary General Environment Social Governance
74
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E2 PollutionExecutive summary General Environment Social Governance
75
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E2 PollutionExecutive summary General Environment Social Governance
76
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E5 Resource use and circular economyExecutive summary General Environment Social Governance
“AO's target is to have 90% of waste sorted for
further treatment by 2030 and residual waste
should be no more than 10 % of all waste
produced by AO. This relates to recycling in the
waste hierarchy.”
Waste sorted for further treatment
86%
2025
2030
90%
77
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E5 Resource use and circular economyExecutive summary General Environment Social Governance
78
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
E5 Resource use and circular economyExecutive summary General Environment Social Governance
79
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
EU TaxonomyExecutive summary General Environment Social Governance
Total
2
mDKK
Proportion of Taxonomy
eligible activities
3
Taxonomy aligned
activities
4
Currency
Proportion of Taxonomy
aligned activities
5
Mitigation
Climate Change
6
Adaptation
Climate Change
7
Water
8
Economy Circular
9
Pollution
10
Biodiversity
11
Proportion of enabling
activities
12
Proportion of
transitional activities
13
Not assessed activities
considered non-material
14
Taxonomy aligned
activities in previous
financial year (N-1)
15
mDKK
Proportion of Taxonomy
aligned activities in
previous financial year
(N-1)
16
80
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
EU TaxonomyExecutive summary General Environment Social Governance
Code
2
Taxonomy eligible KPI
(Proportion of Taxonomy
eligible Turnover, OpEx &
CapEx)
3
Taxonomy aligned KPI
(monetary value of
Turnover, OpEx & CapEx)
4
mDKK
Taxonomy aligned KPI
(Proportion of Taxonomy
aligned Turnover, OpEx &
CapEx)
5
Mitigation
Climate Change
6
Adaptation
Climate Change
7
Water
8
Circular Economy
9
Pollution
10
Biodiversity
11
Enabling activity
12
Transitional activity
13
Proportion of Taxonomy
aligned in Taxonomy
eligible
14
81
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
EU TaxonomyExecutive summary General Environment Social Governance
82
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
EU TaxonomyExecutive summary General Environment Social Governance
84 S1 Own workforce
96 S2 Workers in the value chain
Social
Annual Report 2025 83
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Executive summary General Environment Social Governance
84
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
85
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
86
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
87
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AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
9.7
years
Average seniority
in AO Group
25% 24% 19% 33%
0-2 years 3-5 years 6-10 years More than 10 years
Seniority levels amongst our employees
88
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
89
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
90
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
91
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
92
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
93
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
94
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
95
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S1 Own workforceExecutive summary General Environment Social Governance
96
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S2 Workers in the value chainExecutive summary General Environment Social Governance
97
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
S2 Workers in the value chainExecutive summary General Environment Social Governance
99 G1 Business Conduct
Governance
Annual Report 2025 98
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Executive summary General Environment Social Governance
99
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
G1 Business ConductExecutive summary General Environment Social Governance
100
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
G1 Business ConductExecutive summary General Environment Social Governance
101
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
G1 Business ConductExecutive summary General Environment Social Governance
102
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
G1 Business ConductExecutive summary General Environment Social Governance
103
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
AO Annual Report 2025
G1 Business ConductExecutive summary General Environment Social Governance
105 Consolidated financial statements
147 Parent company financial statements
175 Management’s statement and Auditor’s reports
183 Company information
Financial
statements
AO Annual Report 2025 104
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
Consolidated
financial statements
Income statement
Statement of comprehensive income
Balance sheet as at 31 December
Cash flow statement
Consolidated statement of changes in equity
Primary statements Notes
1 Basis of preparation
1.1 Accounting policies
1.2 Significant estimated uncertainties and judge-
ments
2 Income statement
2.1 Segment information
2.2 Cost of sales
2.3 Other operating income
2.4 External expenses
2.5 Staff costs
2.6 Depreciation and amortisation
2.7 Tax on profit or loss for the year
3 Invested capital
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Inventories
3.5 Trade receivables
3.6 Earnings per share
3.7 Corporation tax receivable/payable
3.8 Deferred tax
3.9 Other payables
4 Capital structure and financing
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
5 Other notes
5.1 Contingent liabilities, security, etc.
5.2 Share based remuneration
5.3 Related parties
5.4 Subsequent events
5.5 New accounting regulation
AO Annual Report 2025 105
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
Income statement
DKK millions Note 2025 2024
Revenue 2.1 6,120.8 5,429.3
Cost of sales 2.2 (4,637.5 ) (4,179.4 )
Gross profit 1,483.3 1,249.9
Other operating income 2.3 1.7 16.4
Gross margin 1,485.0 1,266.3
External expenses 2.4 (398.0 ) (331.1 )
Staff costs 2.5 (653.0 ) (569.2 )
Earnings before interest, taxes, depreciation
and amortisation (EBITDA) 434.0 366.0
Depreciation and amortisation 2.6 (141.4 ) (119.9 )
Operating profit or loss (EBIT) 292.6 246.1
Financial income 4.4 8.0 12.3
Financial expenses 4.5 (40.5 ) (48.3 )
Profit or loss before tax (EBT) 260.1 210.1
Tax on profit or loss for the year 2.7 (59.4 ) (46.7 )
Net profit or loss for the year 200.7 163.4
Earnings per share 3.6
Earnings per share (EPS) 7.4 6.0
Diluted earnings per share (EPS-D) 7.3 6.0
For 1 January – 31 December
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
106
AO Annual Report 2025
Income statement
DKK millions Note 2025 2024
Other comprehensive income
Net profit or loss for the year 200.7 163.4
Items which will be reclassified to the income statement
Foreign currency translation adjustment relating
to foreign entities 8.3 (4.1 )
Tax on other comprehensive income 0 0
Other comprehensive income after tax 8.3 (4.1 )
Total comprehensive income 209.0 159.4
Statement of comprehensive income
For 1 January – 31 December
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
107
AO Annual Report 2025
Statement of comprehensive Income
DKK millions Note 2025 2024
Non-current assets
Intangible assets 3.1
Goodwill 760.9 757.5
Intellectual property rights 60.4 63.9
Software 138.6 106.6
Property, plant and equipment 3.2
Land and buildings 1,041.4 941.9
Leasehold improvements 12.7 15.2
Fixtures and operating equipment 233.0 254.7
Right-of-use assets 3.3 131.3 91.1
Other non-current assets
Other investments 0.2 0.2
Total non-current assets 2,378.5 2,231.1
DKK millions Note 2025 2024
Current assets
Inventories 2.2, 3.4 896.6 814.5
Trade receivables 3.5 696.6 608.2
Joint tax contribution 7.0 16.4
Other receivables 29.9 36.5
Prepayments and accrued income 26.0 25.3
Cash and short-term deposits 61.4 55.4
Total current assets 1,717.5 1,556.3
Total assets 4,096.0 3,787.4
Balance sheet as at 31 December
Assets
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
108
AO Annual Report 2025
Balance sheet
DKK millions Note 2025 2024
Equity 4.1
Share capital 28.0 28.0
Reserve for foreign currency translation adjustments (3.5 ) (11.7 )
Retained earnings 1,538.5 1,436.0
Proposed dividend for the financial year 105.0 84.0
Total equity 1,668.0 1,536.3
Non-current liabilities
Deferred tax 3.8 94.5 83.2
Credit institutions 4.2 548.0 643.6
Lease liabilities 3.3, 4.2 113.5 93.7
Other non-current liabilities 10.4 11.1
Total non-current liabilities 766.4 831.6
DKK millions Note 2025 2024
Current liabilities
Credit institutions 4.2 401.0 278.9
Lease liabilities 3.3, 4.2 47.9 31.8
Trade payables 4.2, 4.3 1,127.2 1,036.8
Corporation tax payable 3.7 2.8 8.2
Provisions for liabilities 3.9 0.5 0.5
Other payables 3.9 82.2 63.3
Total current liabilities 1,661.6 1,419.5
Total liabilities 2,428.0 2,251.1
Total equity and liabilities 4,096.0 3,787.4
Segment information 2.1
Contingent liabilities, security, etc. 5.1
Notes without reference 5.2-5.5
Balance sheet as at 31 December
Equity and liabilities
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
109
AO Annual Report 2025
Balance sheet
Cash flow statement
DKK millions Note 2025 2024
Cash flow from operating activities
Operating profit or loss (EBIT) 292.6 246.1
Depreciation and amortisation 2.6 141.4 119.9
Other non-cash operating items, net 4.3 3.5
Cash flow from operations before change in working capital 438.3 369.5
Change in inventories (82.1 ) (2.4 )
Change in receivables (82.4 ) (65.0 )
Change in trade payables and other current payables 113.7 (11.7 )
Change in working capital (50.8 ) (79.1 )
Cash flow from operations 387.5 290.4
Financial income received 8.0 12.3
Financial expenses paid (42.1 ) (48.3 )
Corporation tax paid (41.0 ) (55.2 )
Cash flow from operating activities 312.4 199.2
DKK millions Note 2025 2024
Cash flow from investing activities
Purchase of intangible assets (65.7 ) (44.1 )
Purchase of property, plant and equipment (134.4 ) (116.2 )
Acquisition of enterprise 0 (305.1 )
Cash flow from investing activities (200.1 ) (465.4 )
Cash flow from financing activities
Change of debt to credit institutions 26.6 16.0
Raising of loans from credit institutions 0 359.7
Repayment of lease liabilities (51.2 ) (41.7 )
Dividends paid (81.6 ) (101.9 )
Cash flow from financing activities (106.3 ) 232.1
Cashflow for the year 6.0 (34.1 )
Cash and short-term deposits at beginning of year 55.4 89.5
Cash and short-term deposits at end of year 61.4 55.4
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
110
AO Annual Report 2025
Cash flow statement
DKK millions
Share
capital
Foreign
currency
translation
adjustment
Proposed
dividend for
the year
Retained
earnings Total equity
Equity at 1 January 2025 28.0 (11.7 ) 84.0 1,436.0 1,536.3
Net profit for the year 0 0 105.0 95.7 200.7
Foreign currency translation adjustment 0 8.3 0 0 8.3
Total comprehensive income 0 8.3 105.0 95.7 209.0
Dividend distribution 0 0 (81.6 ) 0 (81.6 )
Dividend, treasury shares 0 0 (2.4 ) 2.4 0
Sharebased remuneration 0 0 0 4.3 4.3
Total transactions with owners 0 0 (84.0 ) 6.7 (77.3 )
Equity at 31 December 2025 28.0 (3.4 ) 105.0 1,538.5 1,668.0
Equity at 1 January 2024 28.0 (7.6 ) 105.0 1,349.9 1,475.3
Net profit for the year 0 0 84.0 79.4 163.4
Foreign currency translation adjustment 0 (4.1 ) 0 0 (4.1 )
Total comprehensive income 0 (4.1 ) 84.0 79.4 159.4
Dividend distribution 0 0 (101.9 ) 0 (101.9 )
Dividend, treasury shares 0 0 (3.1 ) 3.1 0
Sharebased remuneration 0 0 0 3.5 3.5
Total transactions with owners 0 0 (105.0 ) 6.6 (98.4 )
Equity at 31 December 2024 28.0 (11.7 ) 84.0 1,436.0 1,536.3
Consolidated statement of changes in equity
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
111
AO Annual Report 2025
Consolidated statement of changes in equity
Notes – Section 1
Basis of preparation
1.1 Accounting policies
1.2 Significant estimated uncertainties and judgements
1 Basis of preparation
AO Annual Report 2025 112
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 1 – Basis of preparation
Notes – Section 1
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
113
AO Annual Report 2025
Notes – Section 1 – Basis of preparation
1.1 Accounting policies (continued)
Notes – Section 1
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
114
AO Annual Report 2025
Notes – Section 1 – Basis of preparation
Notes – Section 1
1.1 Accounting policies (continued)
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
115
AO Annual Report 2025
Notes – Section 1 – Basis of preparation
Notes – Section 1
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
116
AO Annual Report 2025
Notes – Section 1 – Basis of preparation
Notes – Section 2
Income statement
2.1 Segment information
2.2 Cost of sales
2.3 Other operating income
2.4 External expenses
2.5 Staff costs
2.6 Depreciation and amortisation
2.7 Tax on profit or loss for the year
2 Income statement
AO Annual Report 2025 117
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 2 – Income statement
Notes – Section 2
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
118
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Notes – Section 2 – Income statement
Notes – Section 2
2.1 Segment information (continued)
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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119
AO Annual Report 2025
Notes – Section 2 – Income statement
Notes – Section 2
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
120
AO Annual Report 2025
Notes – Section 2
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
121
AO Annual Report 2025
Notes – Section 2 – Income statement
Notes – Section 2
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
122
AO Annual Report 2025
Notes – Section 2 – Income statement
Notes – Section 2
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
123
AO Annual Report 2025
Notes – Section 2 – Income statement
Notes – Section 2
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
124
AO Annual Report 2025
Notes – Section 2 – Income statement
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Inventories
3.5 Trade receivables
3.6 Earnings per share
3.7 Corporation tax receivable/payable
3.8 Deferred tax
3.9 Other payables
Notes – Section 3
Invested capital
3 Invested capital
AO Annual Report 2025 125
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 3 – Invested capital
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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126
AO Annual Report 2025
Notes – Section 3 – Invested capital
3.1 Intangible assets (continued)
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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127
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Notes – Section 3 – Invested capital
3.1 Intangible assets (continued)
Notes – Section 3
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128
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Notes – Section 3 – Invested capital
Notes – Section 3
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129
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Notes – Section 3 – Invested capital
3.2 Property, plant and equipment (continued)
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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130
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Notes – Section 3 – Invested capital
3.2 Property, plant and equipment (continued)
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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131
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Notes – Section 3 – Invested capital
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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132
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Notes – Section 3 – Invested capital
3.3 Right-of-use assets and lease liabilities (continued)
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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133
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Notes – Section 3 – Invested capital
Key accounting judgments and estimates
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
134
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Notes – Section 3 – Invested capital
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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135
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Notes – Section 3 – Invested capital
3.5 Trade receivables (continued)
Key accounting judgments and estimates
Notes – Section 3
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
136
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Notes – Section 3 – Invested capital
Notes – Section 3
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137
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Notes – Section 3 – Invested capital
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
Notes – Section 4
Capital structure
and financing
4 Capital structure and financing
AO Annual Report 2025 138
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 4 – Capital structure and financing
Notes – Section 4
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139
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Notes – Section 4 – Capital structure and financing
4.1 Equity (continued)
Notes – Section 4
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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140
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Notes – Section 4 – Capital structure and financing
Notes – Section 4
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141
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Notes – Section 4 – Capital structure and financing
4.3 Financial risks (continued)
Notes – Section 4
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
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142
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Notes – Section 4 – Capital structure and financing
4.3 Financial risks (continued)
Notes – Section 4
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143
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Notes – Section 4 – Capital structure and financing
5.1 Contingent liabilities, security, etc.
5.2 Share based remuneration
5.3 Related parties
5.4 Subsequent events
5.5 New accounting regulation
Notes – Section 5
Other notes
5 Other notes
AO Annual Report 2025 144
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 5 – Other notes
Notes – Section 5
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
145
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Notes – Section 5 – Other notes
Notes – Section 5
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
146
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Notes – Section 5 – Other notes
Parent company
financial statements
1 Basis of preparation
1.1 Accounting policies
1.2 Significant estimated uncertainties and assump-
tions
2 Income statement
2.1 Cost of sales
2.2 Other operating income
2.3 External expenses
2.4 Staff costs
2.5 Depreciation and amortisation
2.6 Tax on profit or loss for the year
3 Invested capital
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Investments in subsidiaries
3.5 Inventories
3.6 Trade receivables
3.7 Deferred tax
3.8 Other payables
4 Capital structure and financing
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
5 Other notes
5.1 Contingent liabilities, security, etc.
5.2 Related parties
5.3 Subsequent events
Primary statements Notes
Income statement
Statement of comprehensive income
Balance sheet as at 31 December
Cash flow statement
Company statement of changes in equity
AO Annual Report 2025 147
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
DKK millions Note 2025 2024
Revenue 5,283.7 4,907.7
Cost of sales 2.1 (4,071.6) (3,824.3)
Gross profit 1,212.1 1,083.4
Other operating income 2.2 1.4 1.3
Gross margin 1,213.5 1,084.7
External expenses 2.3 (321.3) (284.8)
Staff costs 2.4 (566.6) (520.4)
Earnings before interest, taxes, depreciation
and amortisation (EBITDA) 325.6 279.5
Depreciation and amortisation 2.5 (123.7) (153.5)
Operating profit or loss (EBIT) 201.9 126.0
Subsidiaries' profit after tax 3.4 72.9 80.7
Financial income 4.4 4.4 17.3
Financial expenses 4.5 (38.8) (36.4)
Profit or loss before tax (EBT) 240.4 187.6
Tax on profit or loss for the year 2.6 (39.7) (24.2)
Net profit or loss for the year 200.7 163.4
Income statement
For 1 January – 31 December
Sales channels
The Company uses both digital and physical sales channels.
Digital sales channels are defined as sales through websites
and apps. In 2025, sales through digital channels amounted
to DKK 3,302.2m (2024: DKK 2,630.1m), while sales through
physical channels amounted to DKK 1,981.5m (2024: DKK
2,277.6m).
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Income statement
DKK millions Note 2025 2024
Other comprehensive income
Net profit or loss for the year 200.7 163.4
Items which will be reclassified to the income statement
Foreign currency translation adjustment relating
to foreign entities 8.3 (4.1)
Tax on other comprehensive income 0 0
Other comprehensive income after tax 8.3 (4.1)
Total comprehensive income 209.0 159.4
Statement of comprehensive income
For 1 January – 31 December
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Statement of comprehensive Income
DKK millions Note 2025 2024
Non-current assets
Intangible assets 3.1
Goodwill 464.8 464.8
Intellectual property rights 37.2 40.7
Software 137.0 104.6
639.0 610.1
Property, plant and equipment 3.2
Land and buildings 984.6 146.7
Leasehold improvements 12.4 16.2
Fixtures and operating equipment 185.3 208.0
Right-of-use assets 3.3 107.8 168.7
1,290.1 539.6
Other non-current assets
Investments in subsidiaries 3.4 549.4 675.1
Other investments 0.2 0.2
549.6 675.3
Total non-current assets 2,478.7 1,825.1
DKK millions Note 2025 2024
Current assets
Inventories 2.1, 3.5 772.7 721.0
Trade receivables 3.6 647.9 571.6
Receivables from subsidiaries 3.6 0 167.5
Joint tax contribution 17.7 26.3
Other receivables 25.8 31.4
Prepayments and accrued income 20.9 22.3
Cash and short-term deposits 8.1 26.8
Total current assets 1,493.1 1,566.8
Total assets 3,971.8 3,391.9
Balance sheet as at 31 December
Assets
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Balance sheet
DKK millions Note 2025 2024
Equity 4.1
Share capital 28.0 28.0
Reserve according to the equity method 233.0 284.4
Reserve for development costs 95.3 67.2
Retained earnings 1,206.7 1,072.7
Proposed dividend for the financial year 105.0 84.0
Total equity 1,668.0 1,536.3
Non-current liabilities
Deferred tax 3.7 88.8 40.0
Credit institutions 4.2 548.0 306.1
Lease liabilities 3.3, 4.2 74.1 114.9
Other non-current liabilities
Total non-current liabilities 710.9 461.0
DKK millions Note 2025 2024
Current liabilities
Credit institutions 4.2 391.3 263.8
Lease liabilities 3.3, 4.2 38.9 57.2
Trade payables 4.2 1,040.9 979.3
Amounts owed to subsidiaries 68.0 48.3
Provisions for liabilities 0.5 0.5
Other payables 3.8 53.3 45.6
Total current liabilities 1,592.9 1,394.6
Total liabilities 2,303.8 1,855.6
Total equity and liabilities 3,971.8 3,391.9
Contingent liabilities, security, etc. 5.1
Notes without reference 5.2 - 5.3
Balance sheet as at 31 December
Equity and liabilities
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Balance sheet
DKK millions Note 2025 2024
Cash flow from operating activities
Operating profit or loss (EBIT) 201.9 126.0
Depreciation and amortisation 2.5 123.7 153.5
Other non-cash operating items, net 4.3 3.5
Cash flow from operations before change in working capital 329.9 283.0
Change in inventories (51.7) 2.9
Change in receivables (69.1) (69.1)
Change in trade payables and other current payables 75.1 (9.9)
Change in working capital (45.7) (76.1)
Cash flow from operations 284.2 206.9
Financial income received 4.4 17.3
Financial expenses paid (38.1) (36.4)
Corporation tax paid (30.4) (46.5)
Cash flow from operating activities 220.1 141.4
DKK millions Note 2025 2024
Cash flow from investing activities
Purchase of intangible assets (65.7) (44.1)
Purchase of property, plant and equipment (123.8) (35.9)
Change in receivables from subsidiaries 48.0 (32.5)
Dividends received 0 14.0
Acquisition of enterprise 0 (263.0)
Cash flow from investing activities (141.4) (361.5)
Cash flow from financing activities
Repayment of debt to credit institutions 25.2 70.5
Raising of loans from credit institutions 0 319.8
Repayment of lease liabilities (40.9) (88.4)
Dividends paid (81.6) (101.9)
Cash flow from financing activities (97. 3) 200.0
Cashflow for the year (18.7) (20.0)
Cash and short-term deposits at beginning of year 26.8 46.8
Cash and short-term deposits at end of year 8.1 26.8
Cash flow statement
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Cash flow statement
DKK millions
Share
capital
Equity
method
Reserve for
development
costs
Proposed
dividend for
the year
Retained
earnings Total equity
Equity at 1 January 2025 28.0 284.4 67.2 84.0 1,072.7 1,536.3
Net profit for the year 0 72.9 0 105.0 22.8 200.7
Movement for the year 0 0 28.1 0 (28.1) 0
Foreign currency translation adjustment 0 8.3 0 0 0 8.3
Total comprehensive income 0 81.2 28.1 105.0 (5.3) 209.0
Disposals due to merger 0 (132.6) 0 0 132.6 0
Dividend distribution 0 0 0 (81.6) 0 (81.6)
Dividend treasury shares 0 0 0 (2.4) 2.4 0
Dividend received 0 0 0 0 0 0
Sharebased remuneration 0 0 0 0 4.3 4.3
Total transactions with owners 0 (132.6) 0 (84.0) 139.3 (77.3)
Equity at 31 December 2025 28.0 233.0 95.3 105.0 1,206.7 1,668.0
Equity at 1 January 2024 28.0 221.8 62.9 105.0 1,057.6 1,475.3
Net profit for the year 0 80.7 84.0 (1.3) 163.4
Movement for the year 0 0 4.3 0 (4.3) 0
Foreign currency translation adjustment 0 (4.1) 0 0 0 (4.1)
Total comprehensive income 0 76.6 4.3 84.0 (5.5) 159.4
Dividend distribution 0 0 0 (101.9) 0 (101.9)
Dividend treasury shares 0 0 0 (3.1) 3.1 0
Dividend received 0 (14.0) 0 0 14.0 0
Sharebased remuneration 0 0 0 0 3.5 3.5
Total transactions with owners 0 (14.0) 0 (105.0) 20.6 (98.4)
Equity at 31 December 2024 28.0 284.4 67.2 84.0 1,072.7 1,536.3
Company statement of changes in equity
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153
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Company statement of changes in equity
Notes – Section 1
Basis of preparation
1.1 Accounting policies
1.2 Significant estimated uncertainties and assumptions
1 Basis of preparation
AO Annual Report 2025 154
In brief Strategy Performance Corporate governance Sustainability statements Financial statements
Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 1 – Basis of preparation
1.1 Accounting policies
The financial statements of the parent company Brødrene
A & O Johansen A/S for 2024 are presented in accordance
with International Financial Reporting Standards (IFRS) as
adopted by the EU and additional disclosure requirements in
the Danish Financial Statements Act.
The accounting policies of the parent company remain
unchanged from last year. Significant accounting policies are
identical to those applied by the AO Group except for those
mentioned below. A general description of accounting poli-
cies can be found in note 1.1 of the consolidated financial
statements.
Result of investments in subsidiaries
In the parent company’s income statement, the propor-
tionate share of the individual subsidiaries’ profit/(loss)
after tax is recognised after the full elimination of internal
gains/losses.
Investments in subsidiaries in the parent
company’s financial statements
Investments in subsidiaries are measured according to the
equity method.
Investments in subsidiaries are measured at the propor-
tionate share of the companies’ net worth calculated
according to the Group’s accounting policies with the
addition or deduction of unrealised intra-group profits and
losses, and the addition or deduction of the remaining value
of positive or negative goodwill calculated according to the
acquisition method.
1.2 Significant estimated uncertainties
and assumptions
When calculating the carrying amount of certain assets and
liabilities, estimates are made of how future events affect
the value of these assets and liabilities at the balance sheet
date.
The estimates and assumptions may have a significant
effect on the financial reporting and can be categorised as
significant accounting judgements or significant accounting
estimates and assumptions.
The estimates made are based on historical experience and
other factors that the management considers reasonable
in the circumstances, but which are inherently uncertain
and unpredictable. The assumptions may be incomplete or
inaccurate, and unexpected events or circumstances may
arise. Furthermore, the company is subject to risks and
uncertainties that may cause actual results to differ from
those estimates.
It may be necessary to change previous estimates due to
changes in the circumstances underlying them or due to new
knowledge or subsequent events.
Significant accounting judgements,
estimates and assumptions
Significant accounting estimates and judgements include
assumptions and estimates of the future and other uncer-
tainty, that could potentially affect the company within the
next 12 months. Estimates that are material to the financial
reporting are made, inter alia, by valuing the impairment
testing of goodwill, receivables, and inventories and by
calculating depreciation and impairment.
The following estimates and accompanying assessments are
deemed material for the preparation of the financial state-
ments:
· Impairment testing for goodwill and other intangible
assets
· Valuation of receivables
· Inventory valuation
These estimates and assessments are described in the
following notes:
Note 3.1 Intangible assets
Note 3.5 Inventories
Note 3.6 Trade receivables
Notes – Section 1
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Notes – Section 1 – Basis of preparation
2.1 Cost of sales
2.2 Other operating income
2.3 External expenses
2.4 Staff costs
2.5 Depreciation and amortisation
2.6 Tax on profit or loss for the year
Notes – Section 2
Income statement
2 Income statement
AO Annual Report 2025 156
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 2 – Income statement
2.2 Other operating income
The item includes property rental income.
2.3 External expenses
DKK millions 2025 2024
Remuneration for the auditor elected by the annual general meeting:
Total remuneration may be specified as follows:
Statutory audit (1.4) (1.3)
Tax and VAT related advisory services (0.1) (0.1)
Other assurance engagements (0.9) (0.9)
Other services (0.1) (0.1)
Total (2.5) (2.4)
Other assurance engagements' primarily included statutory
limited assurance over the sustainability statements and to
a limited degree assurance services related to WEEE declara-
tion. Tax and VAT related advisory services related to minor
advice on general tax and VAT matters.
2.1 Cost of sales
DKK millions 2025 2024
Cost of goods purchased during the year (3,895.8) (3,599.1)
Distribution costs (220.8) (203.6)
(4,116.6) (3,802.7)
Change in inventories:
Inventory at the beginning of the year 721.0 723.9
Change in cost during the year 4.3 13.9
Inventory writedown, net 2.4 4.7
Inventory at the end of the year 772.7 721.0
Change in inventory for the year 45.0 (21.6)
Cost of sales for the year (4,071.6) (3,824.3)
Notes – Section 2
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157
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Notes – Section 2 – Income statement
2.4 Staff costs
DKK millions 2025 2024
Wages and salaries (462.2) (427.7)
Pension contributions (40.6) (37.4)
Share-based remuneration (4.4) (3.5)
Other social security costs (6.7) (5.8)
Other staff expenses (3.3) (3.3)
Staff costs excl. temporary employees (517.2) (477.7)
Wages temporary employees (49.5) (42.7)
Staff costs total (566.7) (520.4)
Wages and salaries include remuneration for:
Board of Directors (4.0) (2.6)
Board of Directors total (4.0) (2.6)
Executive Board (28.3) (25.4)
Share-based remuneration (1.5) (1.2)
Pension contributions (1.6) (1.6)
Benefits (0.6) (0.6)
Executive Board total (32.0) (28.8)
Board of Directors and Executive Board total (36.0) (31.4)
Average number of full-time employees incl. temporary employees 915 884
Average number of full-time employees 841 815
The Company only has defined contribution plans.
Notes – Section 2
2.5 Depreciation and amortisation
DKK millions 2025 2024
Intangible assets (35.4) (25.8)
Property, plant and equipment (49.6) (39.7)
Right-of-use assets, external (39.7) (38.6)
Right-of-use assets, subsidiaries 0 (49.8)
Gains/losses from the disposal of assets 1.0 0.4
Total 123.7 (153.5)
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Notes – Section 2 – Income statement
2.6 Tax on profit or loss for the year
DKK millions 2025 2024
Current tax for the year (27.3) (16.1)
Adjustment related to previous years (1.7) (0.5)
(29.0) (16.6)
Adjustment of deferred tax for the year (10.7) (7.3)
Adjustment of deferred tax for previous years 0 (0.3)
Total (39.7) (24.2)
Tax on profit/loss for the year can be explained as follows:
Calculated tax on profit/loss before tax, not incl. subsidiaries' profits 37.2 23.5
Tax effect of:
Non-taxable income (0.5) (0.7)
Other non-deductible costs 1.3 0.6
Adjustment of tax for previous years 1.7 0.8
39.7 24.2
Effective tax rate 23.7% 22.2%
Taxes paid during the financial year (30.4) (46.5)
Notes – Section 2
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159
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Notes – Section 2 – Income statement
3.1 Intangible assets
3.2 Property, plant and equipment
3.3 Right-of-use assets and lease liabilities
3.4 Investments in subsidiaries
3.5 Inventories
3.6 Trade receivables
3.7 Deferred tax
3.8 Other payables
Notes – Section 3
Invested capital
3 Invested capital
AO Annual Report 2025 160
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 3 – Invested capital
3.1 Intangible assets
DKK millions Goodwill
Intellectual
property
rights Software
Cost at 1 January 2025 464.8 68.5 333.1
Additions during the year 0 0 65.7
Disposals during the year 0 0 (1.4)
Cost at 31 December 2025 464.8 68.5 397.4
Amortisation and depreciation at 1 January 2025 0 (27.8) (228.4)
Amortisation and depreciation for the year 0 (3.5) (31.9)
Disposals during the year 0 0 0
Amortisation and depreciation at 31 December 2025 0 (31.3) (260.3)
Carrying amount at 31 December 2025 464.8 37.2 136.9
DKK millions Goodwill
Intellectual
property
rights Software
Cost at 1 January 2024 464.8 68.5 330.4
Additions during the year 0 0 44.1
Disposals during the year 0 0 (41.4)
Cost at 31 December 2024 464.8 68.5 333.1
Amortisation and depreciation at 1 January 2024 0 (24.3) (247.5)
Amortisation and depreciation for the year 0 (3.5) (22.4)
Disposals during the year 0 0 41.4
Amortisation and depreciation at 31 December 2024 0 (27.8) (228.4)
Carrying amount at 31 December 2024 464.8 40.7 104.6
Apart from goodwill, all intangible assets are considered to
have definite useful lives. No significant changes have been
made in estimates relating to intangible assets. Intellectual
property rights relate to Billig VVS', Greenline's, LampeGu-
ru's and EA Værktøj's trademarks, domain names, etc.
Notes – Section 3
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Notes – Section 3 – Invested capital
3.1 Intangible assets (continued)
Development costs
Development costs are included in "Software". The net value
of capitalised development costs may be illustrated as
follows:
DKK millions 2025 2024
Company Completed
Work in
progress Completed
Work in
progress
Cost at 1 January 167.0 32.2 162.2 36.8
Additions during the year 0.5 65.1 0 47.5
Transfer 51.8 (53.2) 47. 9 (52.1)
Disposals 0 0 (43.1) 0
Cost at 31 December 219.3 44.1 167.0 32.2
Amortisation and depreciation at 1 January (113.1) 0 (118.3) 0
Amortisation and depreciation for the year (28.1) 0 (23.1) 0
Transfer 0 0 (12.3) 0
Amortisation and depreciation related to disposals 0 0 40.7 0
Amortisation and depreciation
at 31 December (141.2) 0 (113.1) 0
Carrying amount at 31 December 78.1 44.1 53.9 32.2
Accounting policy
Impairment testing for goodwill and other intangible assets
In the annual impairment tests of intangible assets,
including goodwill and rights, estimates are made of how
the parts of the business (cash-generating units) to which
goodwill and rights are attributed will be able to generate
sufficient positive net cash flows in the future to support the
value of the goodwill and rights.
Due to the nature of the business, expected cash flows must
be estimated for many years to come, leading to some uncer-
tainty. This uncertainty is reflected by the chosen discount
rate.
Impairment testing has been described in note 3.1 of the
consolidated financial statements.
Notes – Section 3
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162
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Notes – Section 3 – Invested capital
3.2 Property, plant and equipment
DKK millions
Land and
buildings
Leasehold
improve-
ments
Fixtures and
operating
equipment
Cost at 1 January 2025 205.3 31.8 565.2
Changes due to merger 925.3 0 0
Additions during the year 113.8 3.6 6.4
Disposals during the year 0 (0.4) (4.4)
Change of classification 0 (11.5) 11.5
Cost at 31 December 2025 1,244.4 23.5 578.7
Amortisation and depreciation at 1 January 2025 (58.6) (15.6) (357.2)
Changes due to merger (187.7) 0 0
Change of classification 0 6.2 (6.2)
Amortisation and depreciation for the year (13.5) (2.1) (33.9)
Disposals during the year 0 0.4 4.0
Amortisation and depreciation at 31 December 2025 (259.8) (11.1) (393.3)
Carrying amount at 31 December 2025 984.6 12.4 185.4
DKK millions
Land and
buildings
Leasehold
improve-
ments
Fixtures and
operating
equipment
Cost at 1 January 2024 195.2 34.2 588.9
Additions during the year 10.2 3.8 21.9
Disposals during the year (0.1) (6.2) (45.6)
Cost at 31 December 2024 205.3 31.8 565.2
Amortisation and depreciation at 1 January 2024 (56.4) (17.7) (369.2)
Amortisation and depreciation for the year (2.4) (4.0) (33.2)
Disposals during the year 0.2 6.2 45.2
Amortisation and depreciation at 31 December 2024 (58.6) (15.6) (357.2)
Carrying amount at 31 December 2024 146.7 16.2 208.0
Notes – Section 3
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Notes – Section 3 – Invested capital
3.3 Right-of-use assets and lease liabilities
Right-of-use assets
Land and
buildings
Fixtures and
operating
equipment Total
Balance at 1 January 2025 122.1 46.6 168.7
Additions during the year 2.6 18.6 21.2
Disposals during the year (66.3) (0.5) (66.8)
Remeasurement of lease liability 24.2 0.3 24.5
Amortisation and depreciation for the year (22.0) (17.7) (39.7)
Carrying amount at 31 December 2025 60.6 47.3 107.9
Right-of-use assets
Land and
buildings
Fixtures and
operating
equipment Total
Balance at 1 January 2024 157.1 38.9 196.0
Additions during the year 30.5 23.8 54.3
Disposals during the year (1.2) (0.8) (2.0)
Remeasurement of lease liability 8.0 0.8 8.8
Amortisation and depreciation for the year (72.3) (16.1) (88.4)
Carrying amount at 31 December 2024 122.1 46.6 168.7
Lease liabilities 2025 2024
Maturity of lease liabilities
0-1 year 40.2 57. 9
1-5 years 68.5 98.1
>5 years 15.0 30.9
Total un-discounted lease liabilities at 31 December 123.7 186.8
Short-term lease liabilities, less than 1 year 38.9 57. 8
Long-term lease liabilities, more than 1 year 74.1 114.3
Lease liabilities recognised in the balance sheet 113.0 172.1
Amounts recognised in the income statement
Interest expenses on lease liabilities (4.1) (5.1)
Expenses related to low value leasing arrangements (0.1) (0.2)
Expenses related to short term leasing arrangements (0.3 (1.0)
Depreciation related to right-of-use assets (41.0) (85.2)
Total (45.5) (91.5)
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Notes – Section 3 – Invested capital
3.4 Investments in subsidiaries
DKK millions 2025 2024
Cost at 1 January 390.7 127.6
Additions during the year 0 263.1
Disposal due to merger (74.3) 0
Cost at 31 December 316.4 390.7
Value adjustment at 1 January 284.4 221.8
Disposal due to merger (132.6) 0
Dividends 0 (14.0)
Forign currency translation adjustments 8.3 (4.1)
Subsidiaries' results 72.9 80.7
Value adjustment at 31 December 233.0 284.4
Carrying amount at 31 December 549.4 675.1
2025 2024
Name Registered office
Ownership
interest
Ownership
interest
AO Invest A/S* Denmark N/A 100%
AO Sverige AB Sweden 100% 100%
VVSochBAD Sverige AB Sweden 100% 100%
Billig VVS AS* Norway N/A 100%
LampeGuru AS* Norway N/A 100%
Designkupp AS Norway 100% 100%
AO Workwear A/S Denmark 100% 100%
* Merged with other Group companies in 2025.
3.5 Inventories
DKK millions 2025 2024
Carrying amount of inventories recognised at net selling price 33.7 32.3
Accounting policy
Inventories
The estimated uncertainty of inventories relates primarily to
slow-moving goods and thus to impairment to the net realis-
able value.
Impairment requirements are continuously assessed on
inventories based on historical sales and the assessment of
future sales.
Key accounting judgments and estimates
Supplier bonus
Reporting from suppliers as well as AO’s own records are
used when assessing the supplier bonus that is due to AO.
Estimates are used when reporting from suppliers have not
been received or when the reporting from suppliers do not
reconcile with AO’s records. Ongoing retrospective reviews
are performed to ensure that supplier bonus is included
correctly in the financial statements.
Notes – Section 3
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165
AO Annual Report 2025
Notes – Section 3 – Invested capital
3.6 Trade receivables
Trade receivables consist of sale of goods to business
customers which, in essence, have the same risk profile.
Provisions for bad debts are made in accordance with the
simplified expected credit loss model, taking into account
AO's credit policy and debt collection procedure. AO has
taken up credit insurance on customers with large balances.
Historically, the Company has incurred no losses on receiva-
bles from subsidiaries, and is not expected to going forward.
Calculated on the basis of a weighted loss ratio, the expected
credit losses on trade receivables are as follows:
DKK millions Loss ratio
Receivable
amount
Expected
loss Total
2025
Not yet due 0.1% 613.7 (0.9) 612.8
Due within 1-30 days 1.7% 22.1 (0.4) 21.7
Due within 31-60 days 7.0% 2.2 (0.2) 2.0
Due in more than 60 days 73.9% 43.4 (32.1) 11.3
Total at 31 December 2025 681.4 (33.6) 6 47.8
2024
Not yet due 0.4% 547.2 (2.4) 544.7
Due within 1-30 days 1.8% 15.4 (0.3) 15.2
Due within 31-60 days 34.8% 2.7 (0.9) 1.7
Due in more than 60 days 73.0% 37.1 (27.1) 10.0
Total at 31 December 2024 602.4 (30.7) 571.6
* Expected losses are shown including VAT.
Notes – Section 3
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Notes – Section 3 – Invested capital
3.6 Trade receivables (continued)
DKK millions 2025 2024
Provision for losses on receivables:
Provision for losses on receivables at 1 January excl. VAT 24.7 33.5
Realised loss during the year - use of previous provision (4.7) (14.5)
Adjustment of provisions for losses 7.0 5.7
Provision for losses on receivables at 31 December 27.0 24.7
Recognised previously written-off receivables (0.3) (0.3)
Losses recognised in the year and not previously provided for (0.1) 0
Operating effect, net from loss and provision for losses on receivables 6.6 5.4
Accounting policy
Receivables
Estimates are used when assessing the probability of receiv-
ables. Due to the financial situation in society, the risk of
losses on doubtful receivables remains high, which has been
taken into account when assessing new customers, by way
of impairment losses at the balance sheet date, and in the
day-to-day governance and control of the receivables.
Customer bonus
Estimates are used in relation to the determination of the
bonus levels reached on bonus agreements with a duration
of more than one year. The applied estimates are reviewed on
an ongoing basis to ensure a correct valuation of bonus due
to customers.
3.7 Deferred tax
DKK millions 2025 2024
Deferred tax at 1 January 39.9 32.4
Foreign currency translation adjustment 0 0
Merger / acquisition of enterprise 38.2 0
Change in deferred tax for the year 10.7 7.3
Change in deferred tax relating to previous years 0 (0.3)
Deferred tax at 31 December 88.8 40.0
Deferred tax relates to:
Intangible assets 46.4 31.7
Property, plant and equipment 49.8 14.4
Receivables (3.7) (4.1)
Liabilities (3.7) (2.0)
Tax deficit 0 0
Deferred tax at the end of the year 88.8 40.0
Notes – Section 3
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Notes – Section 3 – Invested capital
3.8 Other payables
DKK millions 2025 2024
Holiday allowance 22.8 19.7
Salary-related items 13.2 12.1
VAT and taxes 5.4 10.7
Other payables 11.8 3.1
Total 53.3 45.6
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Notes – Section 3 – Invested capital
4.1 Equity
4.2 Financing activities
4.3 Financial risks
4.4 Financial income
4.5 Financial expenses
Notes – Section 4
Capital structure
and financing
4 Capital structure and financing
AO Annual Report 2025 169
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Consolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports Notes – Section 4 – Capital structure and financing
4.1 Equity
Share capital
The share capital consists of the following classes:
k DKK
Class A-share capital:
56,400 shares of DKK 100 each 5,640
Class B-share capital:
22,360,000 shares of DKK 1 each 22,360
Total share capital 28,000
Of the Company's share capital of DKK 28,000k DKK 5,640k
is in the form of Class A-shares and DKK 22,360k is in the
form of Class B-shares. Each A-share of DKK 100 carries
1,000 votes whereas each Class B-share of DKK 1 carries one
vote. In addition to the the difference in the number of voting
rights, the two share classes differ in the following respects:
The Class A-shares are non-negotiable securities. The
Class B-shares are listed on Nasdaq Copenhagen. The
Class B-share capital has a preferential dividend right of
6%. In case of liquidation, Class B-shares take precedence
over Class A-shares. As at December 31 2025 there are no
outstanding obligations related to preferential dividends to
Class B-shares.
Notes – Section 4
An alteration to the Company's Articles of Association
requires that two thirds of cast votes and two thirds of the
represented capital at a general meeting are in favour of the
alteration.
Holders of Class B-shares are entitled to appoint and elect
one member of the Board of Directors, while holders of Class
A-shares elect the remaining Board members.
Number of shares
Nomimal value
(DKK thousands) % of share capital
Treasury shares 2025 2024 2025 2024 2025 2024
1 January 823,900 823,900 824 824 2.9% 2.9%
Holding at 31 December 761,062 823,900 761 824 2.7% 2.9%
In 2025, treasury shares were used to settle share awards
under the RSU programme. Pursuant to the authorisation
granted by the Annual General Meeting, Brødrene A & O
Johansen A/S is permitted to acquire treasury shares up to a
total holding of 10% of the share capital.
Dividend
The payment of dividends to the Company's shareholders
has no tax implication for Brødrene A & O Johansen A/S.
Proposed dividend for 2025 amounts to TDKK 105,000 corre-
sponding to DKK 3.75 per share.
Other reserves
Reserve for net revaluation according to the equity method
contains value adjustments related to investments in
subsidiaries. Included in reserve for development costs is
an amount corresponding to capitalised intangible assets
meeting the criteria for being defined as a development
project.
Reserve for net revaluation according to the equity method
and reserve for development costs are unavailable for distri-
bution to shareholders.
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Notes – Section 4 – Capital structure and financing
4.2 Financing activities
DKK millions 2025 2024
Mortgage loans - floating interest rate - 5 years 405.2 85.7
Revolving credit facility - floating short-term interest rate 534.2 484.2
Lease liabilities - floating interest rate 112.9 172.1
1,052.3 742.0
Payables relating to financing activities:
Beginning-of-year 742.0 378.9
Repayment of debt to credit institutions 25.3 390.3
Raising of loans from credit institutions 344.2 0
Addition, lease liabilities, net (18.2) 61.2
Repayment, lease liabilities (41.0) (88.4)
Year-end 1,052.3 742.0
According to the leases there are no contingent rents. The
contractual cash flows appear from note 4.3.
Notes – Section 4
4.3 Financial risks
The companys payables fall due as follows:
DKK millions
Carrying
amount
Contractual
cash flows
Less than
1 year
1 to
5 years
More than
5 years
2025
Mortgage loans 405.2 510.3 37.3 148.1 324.9
Revolving credit facility 534.2 534.2 366.5 167.7 0
Lease liabilities 112.9 123.7 40.2 68.5 15.0
Trade payables 1,040.9 1,040.9 1,040.9 0 0
Intra-group balances 67.9 67. 9 0 67.9 0
31 December 2,161.1 2,277.0 1,484.9 452.2 339.9
2024
Mortgage loans 85.7 109.9 7.8 30.9 71.3
Revolving credit facility 484.2 484.2 258.4 225.8 0
Lease liabilities 172.1 186.8 57.9 98.1 30.9
Trade payables 979.3 979.3 979.3 0 0
Intra-group balances 48.3 48.3 0 48.3 0
31 December 1,769.6 1,808.5 1,303.3 403.1 102.1
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Notes – Section 4 – Capital structure and financing
4.4 Financial income
DKK millions 2025 2024
Interest income from current assets 3.7 10.2
Interest income from subsidiaries 0 5.9
Foreign exchange gains, net 0.8 1.3
Total 4.4 17.4
4.5 Financial expenses
DKK millions 2025 2024
Interest expenses on liabilities (34.1) (31.3)
Expenses, lease liabilities, external (3.5) (2.4)
Expenses, lease liabilities, subsidiaries (0.6) (2.6)
Other interest expenses (0.6) (0.1)
Total (38.8) (36.4)
Notes – Section 4
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Notes – Section 4 – Capital structure and financing
5.1 Contingent liabilities, security, etc.
5.2 Related parties
5.3 Subsequent events
Notes – Section 5
Other notes
5 Other notes
AO Annual Report 2025 173
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5.1 Contingent liabilities, security, etc.
Land and buildings with a total carrying amount of DKK
752.0m (2024: DKK 106.1m) are provided as security for the
Company's payables to mortgage credit institutions and
finance lease liabilities.
As a normal part of doing business AO can be involved in
disputes or legal proceedings. The outcome of pending legal
actions is not expected to have any material impact on the
financial position of the Company.
The company is jointly taxed with AO Workwear A/S and the
ultimate Danish parent company Avenir Invest ApS, which is
the administration company for joint taxation purposes. The
company is unlimited, jointly and severally liable with other
jointly taxed companies towards the Danish tax authorities
for the total corporation tax. Payable corporation taxes
within the joint taxation group amounted to DKK -7.0m at 31
December 2025 (2024: DKK -16.4m).
Any adjustment to the taxable income subject to joint taxa-
tion might entail an increase in the Company's liability.
Group companies are not subject to withholding tax on divi-
dends. Transactions appear from note 5.2.
The company manages cash pooling for the Group entities
and is jointly and severally liable for this. At 31 December
2025, the cash-pool arrangement amounts to DKK 46.4m
(2024: DKK 43.9m).
5.2 Related parties
The Company's related parties comprise the parent company
Avenir Invest ApS (Axeltorv 2, DK-1607 Copenhagen V,
Denmark), the Board of Directors, the Executive Board and
management employees.
Avenir Invest ApS has control over the company through its
ownership of the majority of the voting rights. During the
year, no transactions were carried out with Avenir Invest ApS
apart from payment of dividends and corporate tax.
Notes – Section 5
During the year, no significant transactions were carried out
with the Board of Directors, the Executive Board, manage-
ment employees or major shareholders apart from normal
management remuneration, cf. note 2.4, and dividend
payments.
In addition, related parties are the Company's subsidiaries to
whom letters of subordination have been submitted. Trading
with subsidiaries comprises the following:
DKK millions 2025 2024
Sale of goods 143.0 114.1
Rental expenses 0.0 53.1
Management fee 3.1 5.1
Transactions with subsidiaries are eliminated in the
consolidated financial statements in accordance with the
accounting policies.
The Company's balances with subsidiaries at 31 December
can be seen in the balance sheet. Balances with subsidiaries
comprise ordinary trading balances related to the sale of
goods. Ordinary trading balances attract no interest and
are subject to the same terms of trade as other customers of
the Company. Balances with subsidiaries also comprise the
construction and conversion of buildings. Return on balances
appears from notes 4.4 and 4.5.
As the Company is jointly taxed with other Danish Group enti-
ties, it is liable to pay taxes of DKK 7.8m (2024: DKK -26.3m).
5.3 Subsequent events
No events have occurred after 31 December 2025 that are
considered to have a material effect on the annual report for
2025.
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Notes – Section 5 – Other notes
Management’s statement and Auditor’s reports
176 Management’s statement
177 Independent Auditor’s Reports
180 Independent Auditor's limited assurance report on the
Sustainability Statement
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Executive Board
Board of Directors
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Independent Auditor’s Reports
Report on the audit of
the Financial Statements
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Company information
DK-2620 Albertslund
Phone: +45 70 28 00 00
Website: www.ao.dk
CVR number: 58 21 0 6 1 7
LEI code 5299 00 4B6 ZEG VCR 9ZR 75
ID code: DK0060803831
Founded: 1914
Registered Office: Albertslund
Board of Directors
Henning Dyremose, Chair
Erik Holm, Deputy Chair
René Alberg
Ann Fogelgren
Peter Gath
Leif Hummel
Marlene L. Jakobsen
Niels A. Johansen
Executive Board
Niels A. Johansen, Chief Executive Officer
Stefan Funch Jensen, Chief Transformation Officer
Lili Johansen, Chief Human Resources Officer
Per Toelstang, Chief Financial Officer/Deputy Chief Executive Officer
Auditors
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Annual General Meeting
The Annual General Meeting will be held on 20 March 2026.
Company information
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Company informationConsolidated financial statements Parent company financial statements Management’s statement and Auditor’s reports
Brødrene A & O Johansen A/S
Rørvang 3, DK-2620 Albertslund, Denmark
CVR no. 58 21 06 17