Integrated reporting on our progress
Our annual reporting is published in a
single integrated report covering financials,
sustainability and corporate governance in
one publication.
This provides our stakeholders with a
holistic view on Faerch’s value creation,
strategic aspirations and performance, while
demonstrating our objective to conduct our
activities in a financially, environmentally
and socially responsible way.
3Faerch Corporate Annual Report 2025
4 Faerch at a glance
6 Letter from the Chair and CEO
10 Key figures and consolidated statement
of sustainability performance
12 We create value through
circularity and scale
14 Financial performance
18 Oversight, internal control and risk
management
22 Outlook
24 General disclosures
32 Environment
42 Social
48 Governance
58 Consolidated financial statements
64 Notes to consolidated financial statements
94 Notes to the consolidated
sustainability statement
103 Independent limited assurance report on
Selected ESG data in the consolidated
statement of sustainability performance
104 Financial statements - parent company
109 Notes to financial statements
- parent company
119 Management statement
120 Independent auditor’s report on
the financial statement
122 About this report
Contents
06
10
Management review
Letter from the Chair and CEO Key figures
Sustainability statement
Consolidated statements and additional information
A joint message from the Chair and CEO outlining the
Group’s strategic direction, key developments in 2025 and
priorities for the year ahead.
Overview of key financial, operational and
sustainability figures for the reporting year.
4 Faerch Corporate Annual Report 20254
Faerch
at a glance
Over the past five decades, we have served leading
food manufacturers and retailers with innovative
rigid food packaging, designed to ensure
food safety, minimise food waste and advance
sustainability through circular solutions.
+5
,
000
+4
,
000
+80
Valued customers globally
Countries with sales presence
25
Production sites
Dedicated employees
As of 31/12/2025
5Faerch Corporate Annual Report 2025
26
,
850
,
000~20
,
000
60
,
000
Tonnes annual recycling capacity
We are pioneering
circularity in food packaging
with our unique recycling
capabilities in Cirrec
Product designs available
Food packaging pieces produced for circularity - every day
6 Faerch Corporate Annual Report 2025
2025 was a year of continued geopolitical uncertainty
and subdued consumer sentiment in Europe and
North America. Cost of living remains a concern for
many consumers and it results in cautious spending
behaviours. This also limits growth in the end
markets that Faerch serves. In this challenging market
environment, Faerch stays focused on reinforcing its
competitiveness and capitalising on our cost effective,
innovative, and reliable packaging solutions with
industry leading levels of circular content.
Staying the
course in
unpredictable
times
Pernille Lind Olsen
Chief Executive Officer
Henrik Poulsen
Chair of the Board of Directors
Letter from the Chair and CEO
7Faerch Corporate Annual Report 2025
In 2025, the sluggish market environment
and optimisation of the company's
product and customer portfolios as well
as structural changes led to a decline in
revenues of 4.7%. Net revenue amounted to
EUR 1,187m, reflecting a strategic decision
to focus on profitable volumes and higher
margin business.
Consequently, EBITDA declined from EUR
188m in 2024 to EUR 174m in 2025. Despite
persistent cost inflation and softened
demand, we successfully maintained a solid
operating margin of 14.7%, demonstrating
the resilience of our business model.
The net loss of EUR 42.8m was caused by
investment activities in previous years,
restructuring charges, and the company's
financial leverage driving negative net
financials. The ongoing efforts to reach a
positive net result will continue in 2026.
We expect to return to modest volume
growth in 2026 fuelled by commercial
initiatives launched during the latter half of
2025.
Advancing integration and
optimising our footprint
Since 2015, Faerch has acquired 7
companies and over 30 factories. Hence
integration and footprint optimisation
continues to be high on the agenda to fully
leverage our scale and capabilities. In 2025
this included the continued standardisation
of operating processes and technologies
across Faerch's global footprint with a
strategic focus on PET and PP as the two
primary substrates. We will provide our
customers with one shared and consistent
product range committed to high quality
and leverage the company's extensive
expertise and best practices across markets.
As part of our strategic optimisation in 2025,
we announced the closure of two sites, in
France and the Netherlands, respectively,
and divested non-core operations in
Hungary. These steps, along with the
successful transfer of coffee capsule
production to the US, will support the
alignment of Faerch's footprint with future
strategic goals.
Finally, to reflect that we are one company,
we have taken significant steps towards
one common brand architecture and visual
identity.
Strategic commitment to
sustainability and circularity
The packaging landscape continues to
evolve rapidly. Regulatory developments
such as the Packaging & Packaging Waste
Regulation (PPWR) combined with the
implementation of Extended Producer
Responsibility (EPR) schemes, and
changing consumer patterns, present
several opportunities but also challenges.
While many recyclers across Europe
faced significant market pressure in 2025,
Faerch’s integrated recycling facility, Cirrec,
continued to demonstrate stable output
and quality performance and we steadily
increased levels of truly circular content in
our products.
We stay committed to offering our customers
and the end consumers industry leading
circular solutions. As an integrated recycler
and converter, we deliver consistent quality
and supply of our recycled CIRPET+ content
and protect customers from market volatility
while supporting their decarbonisation
journeys and sustainability focused
marketing efforts.
In 2025, we reduced
total market based
emissions by 20%
compared to the 2022
base year.
8 Faerch Corporate Annual Report 2025
Faerch also remains committed to its
science-based targets and the company
is on track to reach the near-term goal
of a 50% reduction by 2030. In 2025, we
reduced total market based emissions by
20% compared to the 2022 base year. In
2025, we achieved significant permanent
reductions through renewable energy
initiatives among others, through three
new Power Purchase Agreements (PPAs)
in the UK, Poland, and Hungary, leading to
a 29% reduction in scope 2 market based
emissions compared to the previous year.
Igniting our potential
2025 marked a change in leadership at
Faerch. After 16 years of highly dedicated
service, Lars Gade Hansen stepped down as
CEO, and Pernille Lind Olsen took over.
During Q4, Pernille and the Group Senior
Management Team developed a revised
strategy ‘Ignite our potential’, building
on the strong foundation already in place
while sharpening our focus for the years
ahead. Our strategy aims at unlocking
Faerch's full potential through a dedicated
focus on our customers, operational
excellence, sustainability, and fully
becoming one team. This will allow Faerch
to drive organic growth and create material
long-term value for our customers,
employees, and shareholders, while
remaining a company that delivers positive
impact to society.
Finally, we would like to extend our sincere
appreciation to our customers and partners
for their trust and collaboration, and to
our colleagues across the organisation, for
their continued dedication, resilience and
commitment. We remain confident and
excited about the journey ahead and the
potential of Faerch's significant market
position and industry leading capabilities.
Henrik Poulsen
Chair of the Board of Directors
Pernille Lind Olsen
Chief Executive Officer
9Faerch Corporate Annual Report 2025
Our strategy aims at unlocking
Faerch's full potential through a
dedicated focus on our customers,
operational excellence, sustainability,
and fully becoming one team.
10 Faerch Corporate Annual Report 2025
Key figures
The figures and ratios have been compiled based on the following
definitions and formulas:
Gross margin = Gross profit
Revenue
EBITDA margin before special items = EBITDA before special items
Revenue
EBIT margin before special items = EBIT before special items
Revenue
EBIT margin = EBIT
Revenue
Net interest-bearing debt = Bank debt + leasing + mortgages - cash and cash equivalents
Net working capital ratio = Net working capital
Revenue
Return on equity (ROE)= Profit / (loss) for the year
Equity
Net working capital consists of inventories, trade receivables, other receivables
and deducted with trade payables and other short term debt.
2022
(a)
reflects ownership of Paccor for the period September to December and MCP USA Inc. for December.
20212022
(a)
202320242025
EURm
Income statement
Revenue 1,186.8 1,245.0 1,292.5 892.8 558.8
Gross profit 212.9 226.5 247.4 139.6 129.7
EBITDA before special items 173.9 188.2 202.0 101.0 100.3
EBIT before special items 29.0 28.5 56.1 0.6 33.1
EBIT -11.3 4.3 44.4 -21.9 21.6
Financial items, net -57.1 -79.7 -78.9 -26.6 -47.1
Profit / (loss) for the year -42.8 -67.1 -39.7 -44.4 -26.0
Financial position at 31 December
Total assets 2,667.9 2,872.3 2,813.5 2,854.7 1,464.6
Net working capital 60.0 37.3 60.7 95.9 73.9
Equity 1,229.5 1,283.9 1,158.2 1,196.7 654.2
Net interest-bearing debt 882.9 887.3 1,113.1 1,094.2 541.5
Cash flow and investment
Cash flow from operating activities 66.2 99.8 138.3 32.3 32.4
Cash flow from investing activities -46.1 -47.9 -122.0 -290.6 -192.3
Investment in property, plant and equipment
-45.4 -54.7 -123.8 -73.9 -39.2
Free cash flow, excluding acquisitions 20.1 43.6 16.1 -45.0 -7.7
Key ratio
Revenue growth -4.7% -3.7% 44.8% 59.8% 50.9%
Gross margin 17.9% 18.3% 19.1% 15.6% 23.2%
EBITDA margin before special items 14.7% 15.1% 15.6% 11.3% 18.0%
EBIT margin before special items 2.4% 2.3% 4.3% 0.1% 5.9%
EBIT margin -1.0% 0.3% 3.4% -2.5% 3.9%
Net working capital ratio 5.1% 3.0% 4.7% 10.7% 13.2%
Return on equity (ROE) -3.5% -5.2% -3.4% -3.7% -4.0%
Average number of employees 5,439 5,264 5,576 3,411 2,237
Financial key figures Definition of key figures and ratio
11Faerch Corporate Annual Report 2025
Note 2025 2024 2023 2022
Climate and environmental performance
Resources
6.1 Energy consumption for operations (MWh) 576,182 593,428 584,130 656,113 -
6.2 Waste from production (tonnes) 35,663 31,223 21,759 23,719 -
6.2 Ratio of own waste recovered vs. sent for disposal (%) 91% 93% 90% 85% -
6.3 Water consumption for production (m
3
) 358,994 367,581 314,658 331,708 -
Greenhouse Gas (GHG) Emissions (tCO2e)
6.4 Scope 1 GHG emissions* 8,265 12,927 14,336 10,109 -18.2%
6.4 Scope 2 GHG emissions (location-based)* 143,035 143,313 166,567 179,309 -20.2%
6.4 Scope 2 GHG emissions (market-based)* 119,035 168,699 177,189 203,509 -41.5%
6.4 Scope 3 GHG emissions* 997,996 1,020,035 1,087,017 1,192,573 -16.3%
6.4 Total GHG emissions (location-based)* 1,149,297 1,176,275 1,267,920 1,381,991 -16.8%
6.4 Total GHG emissions (market-based)* 1,125,297 1,201,661 1,278,542 1,406,191 -20.0%
6.4 Total GHG emission reductions vs. 2022 base year (market-based) * -280.894 -204.530 -127.649 -20.0%
Non-GHG emissions (tonnes)
6.5 VOC emissions 38.2 30.3 - - -
Circularity
6.6 Output of tray recycled PET from Recycling Division (ktonnes)* 22.0 19.4 12.1 10.3 -
6.7 Share of products designed for circularity (%)* 48% 46% 44% 40% -
Social performance
Human Capital
7.1 Number of employees (FTEs)** 5,274 5,440 5,487 5,566 -
Diversity, Equity & Inclusion
7.2 Gender on the Board of Directors (female/total) 33% 33% 33% 33% -
7.2 Gender at the two management layers below the Board (female/total) 28% 18% 20% 25% -
Health & Safety
7.3 Lost Time Injury Frequency Rate (LTIFR) 8.6 8.9 8.5 9.4 -
Consolidated statement of sustainability performance
* Data within PwC’s limited assurance scope
** Includes blue-collar and white-collar employees as well as agency workers
For more insights on our
environmental, social and governance
performance metrics see the
"Sustainability statement" on page 24
% change
2025 vs. 2022
base year
12 Faerch Corporate Annual Report 2025
We create value
through circularity
and scale
Faerch helps food producers, and
retailers in their transition to circular
rigid food packaging. Our ambition
is to make circular food packaging
commonplace, and our business
model is designed to support this
ambition by ensuring food safety,
consumer convenience and reliable
performance across applications.
Our people
• +5,000 employees across Europe and the US
• Extrusion, thermoforming, design and recycling
expertise
• Material science expertise, and product food
safety and performance
Our infrastructure and assets
• 25 production sites*
• 2 industrial post-consumer PET recycling lines
• 60,000t annual recycling capacity
• Advanced material design and tooling
capabilities
Our materials and supply partners
• Long-term supplier partnerships secures high
quality materials and enables innovation
• Stable, quality supply through integrated
recycling capabilities at Cirrec
Collection
Sorting
Recycling
Supply Production
Food Packing
Retail/
Distribution
Use
-
C
I
R
C
U
L
A
R
V
A
L
U
E
C
H
A
I
N
-
C
I
R
C
U
L
A
R
V
A
L
U
E
C
H
A
I
N
-
C
I
R
C
U
L
A
R
V
A
L
U
E
C
H
A
I
N
What we depend on
Key resources - inputs
* As of 31/12/2025 - some sites closed or sold during the year
13Faerch Corporate Annual Report 2025
We design, produce and recycle rigid food packaging for leading food
manufacturers and retailers. Our integrated recycling model enables
closed-loop recycling at industrial scale.
Customer
collaboration
Building strong,
strategic
partnerships that
drive innovation
and value.
Design &
Innovation
Innovating
packaging
engineered for food
safety, performance
and recycling.
Material
sourcing
Sourcing various
high quality raw
materials and
delivering recycled
material and
innovation to the
supply chain.
Production
Manufacturing
broad range of food
packaging for the
fresh meat and
protein, ready
meals, dairy, food to
go and foodservice
markets.
Circularity
at scale
Enabling closed
loops by converting
post-consumer PET
into high-purity rPET
through our
recycling facility
Cirrec.
For customers
• Trusted high quality, food safe solutions for protecting
food
• Reliable and flexible supply for operational continuity
• Access to certified, food-grade recycled materials
supporting compliance and brand commitments
• Low-carbon, circular solutions enabling sustainability
ambitions and ensuring legislative compliance
• Broad portfolio of ~20,000 designs across food
categories enabling product differentiation and tailored
solutions for diverse needs
For the environment
• Protecting food and minimising food waste
• 22 kt circular material from Cirrec used in production
• 20% CO2e reduction vs 2022 baseline
• Reduced reliance on virgin plastic through high
PCR content in portfolio
• 131.7 GWh renewable energy sourced
• 94.3% of products designed for recycling
For society
• Contribution to local communities by being a
responsible employer that develops people and
promotes inclusion
• Partnerships supporting European recycling systems
• Investment into recycling infrastructure accelerating the
circular and green transition
The value we create
Outputs & outcomes – measurable effects
Activities – the operational engine
14 Faerch Corporate Annual Report 2025
Financial
performance
2025 was characterised by geopolitical
uncertainty and a sluggish market
sentiment, which together with strategic
portfolio optimisation led to a drop in our
volumes in 2025.
While the 2024 outlook anticipated a more
stable consumer environment, sustained
cost-of-living pressures led to a shift in
consumer behaviour. This resulted in
subdued volumes for rigid packaging across
Europe as the market adjusted to lower
consumer spending power. This trend was
further compounded by ongoing economic
uncertainty.
Revenue
Net revenue in 2025 amounted to EUR
1,187m resulting in a negative growth of
4.7% compared to last year. This decline
was primarily driven by reduction in sales
volume, and lower resin prices passed
through to customers.
Sales in Europe
In the 2024 Outlook, we anticipated
a modest organic growth. The actual
performance showed a 3.9% revenue
decline. This decline reflects a strategic
focus on profitable volumes. Italy and
Scandinavia, and the Dairy segment
continued to perform well, primarily
supported by key partnerships.
Sales in North America
The projected organic growth for the
US did not materialise. Revenue in 2025
decreased by 16.1% compared to 2024,
amid challenging trading conditions shaped
by geopolitical uncertainty and shifting
customer demand.
Production costs
The projected profit growth for the period
was not fully realised. Total production
costs for the year decreased by 4.4% to EUR
973.9m. We saw a slight compression of the
gross profit margin, which decreased from
18.3% in 2024 to 17.9% in 2025.
The slight margin compression reflects the
combined impact of lower volumes and
inflationary pressure on wages, which we
were close to offsetting with procurement
efficiencies.
2021 2022 2023 2024 2025
1,187
Revenue
EUR in millions
1,293
1,245
559
893
2021 2022 2023 2024 2025
9,892
14,094
23,882
23,400
Volume
Units in millions
22,089
Faerch Corporate Annual Report 2025
EBITDA and EBIT
EBITDA before special items decreased
from EUR 188.2m in 2024 to EUR 173.9m
representing a negative growth of 7.6%.
This decline is mainly attributable to higher
input costs and lower sales volumes, partly
driven by portfolio optimisation initiatives
and structural changes implemented during
the year.
The operating profit before special items
remained stable at EUR 29.0m. This
represents a slight growth of 1.7%.
15
2024 2025 2024 2025
Operational costs
EUR in millions
119.9
67.4
115.8
73.1
Sales and
distribution costs
Administrative
costs
2021 2022 2023 2024 2025
101.0
202.0
EBITDA (before special items)
EUR in millions
100.3
18.0%
11.3%
15.6%
188.2
173.9
15.1%
14.7%
Results of the year
Driven by strategic investments in prior
year, our result for the year amounted to
EUR -42.8m, with an improvement over
last year (EUR -67.0m). The Group recorded
significant restructuring costs in 2025,
related to the closure of two sites in France
and the Netherlands.
16 Faerch Corporate Annual Report 2025
Cash flow
Net cash generated from operating activities
amounted to EUR 66.2m.
Overall, the Group demonstrated stable operational
cash generation capabilities in 2025.
Net cash outflow from investing activities amounted
to EUR 46.1m (2024: EUR 47.9m), remaining broadly
stable year-on-year. Capital expenditure (including
right of use assets) decreased to EUR 61.4m
(2024: EUR 76.6m), reflecting lower investment in
tangible assets of EUR 45.4m (2024: EUR 54.7m) and
intangible assets of EUR 2.2m (2024: EUR 5.5m).
Investments were, to a large degree, capacity related
to supporting long-term growth. The investment
outlook for 2025 was EUR 70.0m (excl. right-of-use
assets).
The Group maintained a positive free cash flow of
EUR 20.1m for the year.
12%
40.7
13.6
10%
10%
CAPEX
EUR in millions
2021 2022 2023 2024 2025
Free cash flow (excluding acquisitions)
EUR in millions
16.1
20.1
-45.0-7.7
51.9
2021 2022 2023 2024 2025
53.7
88.8
16.5
14.3
10.8
22.9
4.1
11.6
22.3
40.0
97.3
Growth (excl. capex
invested in acquired entities)
Maintenance, incl. extension
of right-of-use assets
Capex invested in acquired
entities (none in 2023,
2024 and 2025)
% of revenue
6.2%
5.2%
76.6
61.4
31.1
30.3
9.1
36.4
30.6
0.5
Automation/optimisation
151.6
17Faerch Corporate Annual Report 2025
In a year defined by geopolitical
uncertainties and subdued consumer
demands, our focus remained
on maintaining a stable margin
performance and strengthening our
financial position.
18 Faerch Corporate Annual Report 202518
Oversight
Faerch operates under a unified governance model
consisting of a Board of Directors and an Executive
Management Team (EMT). These bodies function
independently, and no individual holds a position in both.
The Board of Directors supervises Faerch and the EMT on
behalf of the shareholders. The EMT handles day-to-day
operations. Together, they define Faerch's strategy, set
objectives, and approve budgets and operational plans
ensuring governance and performance management
are aligned across the business, including sustainability
priorities.
For more insights see the "Board of Directors" and
"Executive Management" sections on page 54-57
To ensure effective oversight, the Board is regularly
informed about stakeholder feedback through structured
reporting and dedicated updates. This process enables
the Board to integrate stakeholder insights into decision-
making and governance, ensuring alignment across
strategic pillars.
The Audit Committee oversees risks, reporting, data
quality and internal controls including ESG. The
Nomination & Remuneration Committee oversees
executive remuneration, performance and succession
including approval of the individual bonus objective for
each EMT member, for some that connects to recycled
material or CO2e reductions.
Oversight, internal
control and risk
management
Category Group owner
Energy Procurement
Climate change ESG
Environment ESG
Category Group owner
Business ethics Legal
Data ethics and security IT
Direction
Policy
Category Group owner
Human capital HR
DEI HR
Employee relations
and conditions
HR
Work safety Health & Safety
Responsible supply chain Procurement
Operations
Operational levels are responsible for execution and to provide bottom up information for management, monitoring and reporting.
Audit Committee
Group ESG
Coordinates sustainability actions,
while keeping oversight and
enabling category owners.
Group Strategy Group Finance
SocialEnvironment
Risk Committee
CAPEX Committee
Governance
Strategy
Monitoring
Reporting
Coordination
Responsible
Action Plans
Execution
Nomination & Remuneration
Committee
Integrity Committee
Executive Management
Defines an integrated strategy and
oversees implementation.
The Board of Directors
Endorses the strategic direction
including sustainability.
Governance and sustainability oversight
19Faerch Corporate Annual Report 2025 19
The Risk Committee oversees the risk
management framework to ensure key
risks are identified, monitored, and
mitigated within the approved risk
appetite. The CAPEX Committee reviews
major investments to ensure they are
strategically aligned, financially sound,
and well governed. In both committees,
sustainability is continuously being
integrated. The purpose of the Integrity
Committee is to govern matters of
misconduct reported within the Group.
To drive sustainable actions forward,
employees eligible for bonus, have
an incentive scheme that links their
remuneration to sustainability, with 15%
of the annual cash bonus tied to CO2e
reductions.
Internal controls and risk
management
The Board of Directors and the Executive
Management are responsible for ensuring
that the Group’s governance structure,
risk management and internal control
systems are appropriate and effective. An
annual planning and budgeting process is
in place, with performance monitored on a
regular basis through financial reporting,
focusing on developments in sales and
earnings. To support high-quality financial
reporting, Group-wide policies, procedures
and accounting principles have been
implemented to ensure consistency and
transparency within whole Group.
1
2
3
4
5
Heat map - risk assessment
Likelihood
Significance
Low High
High
Hazardous events and natural disasters
Instability of geopolitical environment
Disruption of supply chain
Plastic reputation and regulation
Cyber and IT security
1
2
3
4
5
Sustainability considerations are
increasingly embedded in our corporate
strategy and risk management processes.
Our risk management process now includes
a double materiality assessment, which
identifies both the financial impact of ESG
factors on the Group and our impact on
people and the environment.
For more insights see the Double
Materiality Assessment in the
IRO-1 section, on page 28 and the
associated internal controls over ESG
data in the GOV-4 section on page 97
Identifying and managing key risks
Faerch Group’s business is subject to risks
that could impact the Group in both the
short and long term. Our risk management
process ensures these risks are identified
and addressed in a timely manner.
In 2025, we updated our Risk Management
programme to further refine our
assessment. This involved consultation
with managers at local, regional, and Group
levels. Risks were identified, categorised,
and evaluated based on their likelihood,
potential financial impact, and the time
required to recover operations.
Key risk assessment
We have identified five key risks with the
most significant combined potential effect
on our sales, profits, market position, and
sustainability goals.
20 Faerch Corporate Annual Report 2025
Risk Area Description Impact Mitigation Actions
Hazardous events and
natural disasters
Natural disasters (earthquakes,
thunderstorms, floods) and human-origin
disasters (fires).
Damage to sites and operational capabilities, leading to
financial loss and risks to employee safety. In alignment
with UNECE standards, these impacts are categorised
across three dimensions to ensure comprehensive risk
monitoring and disaster-loss accounting:
Human impact: Risks to employee safety and well-being,
including death, injury, and mental health impacts.
Physical impact: Direct damage to sites, machinery,
and material assets, as well as associated environmental
damages.
Economic impact: Significant financial loss arising from
business interruption, supply chain disruptions, market
volatility, and increased operational costs.
The Group uses long-term preventive measures: seismic monitoring, building
upgrades, and IT security. Key focus areas include:
Fire prevention: housekeeping programmes, sprinkler systems, and regular safety
inspections.
Supply continuity: ability to supply from other sites and backup warehouses to
ensure delivery despite local site damage.
Risk transfer: property risk insurances are in place to cover the property damage,
business interruption and ancillary risks typically arising from a potential disaster.
Instability of geopolitical
environment
Uncertainty and volatility of the political
and economic landscape within and
between nations on a worldwide basis
leads to unpredictable changes in policies,
regulations, and international relations.
Economic impact: Market volatility, trade tensions and
sanctions may increase costs, limit market access, and
fuel inflation. Uncertainty can weaken investor confidence,
affect capital allocation, and tighten financing conditions.
Operational impact: Supply chain disruptions and
unpredictable regulatory or policy changes may hinder
business continuity and operational planning.
The Group mitigates geopolitical risks through a multi-layered approach, including
diversification of supply chains to reduce regional dependency, financial and
energy hedging strategies, development of strategic partnerships with local and
trusted counterparts, crisis management and business continuity plans tailored to
geopolitical risks.
Disruption of supply chain
Risk arising from strong competition for raw
materials, declining production capacity
in Europe, and exposure to transport
constraints or trade barriers.
Raw material availability: Risk of insufficient or unsuitable
supply through raw material and product shortages, trade
barriers, or transport disruptions.
Ability to deliver: Impacts on timely and full delivery
to customers, affecting reputation as a reliable partner,
delivering high-quality products on time and in full.
The Group balances efficiency with resilience through:
Regional/local footprint: Prioritising local suppliers to reduce reliance on
vulnerable global chains.
Diversification: Engaging multiple suppliers across different regions to avoid
single-source dependency.
Risk assessment: Evaluating suppliers' financial stability and recovery plans.
Inventory and logistics: Managing buffers of critical materials and maintaining
flexible transport strategies.
Collaboration: Fostering long-term, high-trust relationships with key partners.
Plastic reputation and
regulations
Public concern over plastic pollution and
potential health impacts. Continuous
regulatory developments governing plastics
and consumer safety.
Commitments to reduce plastic use, shifting consumer
sentiment, and activist pressure may drive demand
toward plastic-free packaging, affecting customer loyalty,
market share, and investment. Non-compliance with
evolving regulations, including polluter-pays and extended
producer responsibility schemes, could lead to fines,
reputational damage, and reduced competitiveness.
Faerch Group proactively manages plastic-related risks through its circularity
strategy focused on recyclability and transparency. The Group closely monitors
legislative developments, engages with regulators and industry bodies, and
invests in recyclable packaging design, recycled content, and recycling capacity.
Regulatory impact assessments are integrated into strategic planning to ensure
timely compliance and address financial and operational implications.
UNCHANGED RISK
1
UNCHANGED RISK
3
2
NEW RISK
NEW RISK
4
21Faerch Corporate Annual Report 2025
Risk Area Description Impact Mitigation Actions
Cyber and
IT security
Disruptions to IT systems caused by
cyberattacks, ransomware, or infrastructure
failures, including those affecting service
providers.
Such incidents can impact operations, data security,
and the Group’s reputation.
In line with NIS2 (Art. 21), the Group employs real-time monitoring and threat detection.
To ensure infrastructure mitigation, the Group maintains resilient hardware, network
segmentation, and redundant data storage. Any incident affecting data integrity is
escalated via internal procedures.
The Group maintains a robust training programme; all white-collar employees
completed cybersecurity training in Q4/2025. The governance framework includes
formal policies on IT usage, risk management, and incident response.
Financial risks
incl. currency risk, liquidity risk,
interest rate, credit risk, tax
Risks associated with potential financial
losses. Exposure to market, financial and
tax risks, including currency, interest rate,
credit, liquidity and transfer pricing risks.
Potential adverse impact on Group earnings, cash
flow and financial position, including exposure to FX
and interest rate volatility, customer non-payment,
liquidity constraints, debt renegotiation or default, and
additional tax liabilities.
For more insights see note 3.3 "Financial risks
and instruments" on page 81
The Group manages financial risks through a Board-approved Treasury Policy. This
includes fixing at least 75% of short-term debt via a descending hedge ladder and
IRS (Interest Rate Swap), along with credit risk mitigation through insurance and
guarantees with high-rated counterparties.
Liquidity is ensured via cash pooling and committed facilities, while tax risks are
addressed through a transfer pricing model and active engagement with authorities.
UNCHANGED RISK
5
BUSINESS RISK
22 Faerch Corporate Annual Report 2025
Outlook
Looking ahead, with our revised strategy
we will drive transformative change
and growth through stronger customer
partnerships. Scaled operational excellence,
increased recycled content and a lower
carbon footprint, strengthen our role as a
strategic partner in the transition to circular
food packaging. At the same time, we are
building one unified company anchored in
shared values and leadership behaviours.
As we look toward 2026, we anticipate
a gradual return to growth across our
primary markets in Europe and North
America. Our approach remains focused on
steady margin improvement and the careful
execution of our long-term commercial
strategy. For the full year 2026, we expect
revenue to grow by low single digits and
anticipate an improvement in operating
margins.
Capital expenditure for the coming
year is expected to be in line with 2025
levels or slightly higher, supporting key
infrastructure projects and operational
efficiency.
We stay committed to leading the industry
transformation to circularity. This is a key
lever for achieving our near-term science-
based target in 2030, alongside increased
use of renewable energy and improved
operational efficiency.
At the same time, we are strengthening
our responsible sourcing practices and
implementing a new risk assessment tool to
enhance transparency and systematically
manage environmental and social risks in
our supply chain. We will also continue to
strengthen our safety culture and reinforce
our shared values across the Group, in order
to leverage our full team and capabilities in
the execution of our strategy.
2026
Building
excellence
2028 2030
Changing the
industry together
2027
Accelerating
impact
We have the
Customer
as our North Star
We deliver
operational
excellence
We positively
contribute to
the world
We work as
one team with
shared values
Revised strategy
23Faerch Corporate Annual Report 2025
24 Faerch Corporate Annual Report 2025
Basis for preparation
BP-1 Basis for preparation of sustainability statement 25
BP-2 Disclosures in relation to specific circumstances 25
Governance
GOV-1 The role of administrative, management and supervisory bodies 18
GOV-2 Integration of sustainability-related performance in incentive schemes 18
GOV-3 Statement on due diligence 96
GOV-4 Risk management and internal controls over sustainability reporting 97
Strategy & business model
SBM-1 Strategy, business model and value chain 12
SBM-2 Interests and views of stakeholders 18
SBM-3 Interaction of material impacts, risks, opportunities with strategy and business model and financial effects 26
Impacts, risks and opportunities
IRO-1 Process to identify and assess material IROs 28
IRO-2 Material impacts, risks and opportunities 30
General disclosures
25Faerch Corporate Annual Report 2025
BP-1 BP-2
26 Faerch Corporate Annual Report 2025
SBM-3
While we support and have a positive impact on several of the
SDGs, our strategic focus is on Goal 12 and 13, where we are able to
have the most impact through our core solutions and ambitions.
27Faerch Corporate Annual Report 2025
28 Faerch Corporate Annual Report 2025
IRO-1
29Faerch Corporate Annual Report 2025
Impact materality
30 Faerch Corporate Annual Report 2025
Positive effect Negative effect
IRO-2
31Faerch Corporate Annual Report 2025
Positive effect Negative effect
32 Faerch Corporate Annual Report 2025
33Faerch Corporate Annual Report 2025
E1
E5
Learn more about our Science Based Targets here
34 Faerch Corporate Annual Report 2025
E1-1
E1
E1-4
35
E1-8
35
Faerch Corporate Annual Report 2025
36 Faerch Corporate Annual Report 2025
E1-8
1 The emission factor for ”CIRPET+” material was calculated based on data from Cirrec and has received a Certificate of Authenticity by Sphera. For the comparison, we have benchmarked our CIRPET+ emission factor
with emission factors for average virgin and bottle PET material in EcoInvent and MLC by Sphera databases. For more information, please contact sustainability@faerch.com
2 The percentage states how much our signed PPA's will cover out of our current electricity usage (app. 536 GWh in 2025),
when all PPA’s are fully operational.
E1-7
37Faerch Corporate Annual Report 2025
Strategic focus towards 2030 Beyond 2030
SCOPE 3
703,096
1,406,191
Total emissions
(market based)
2022
Total emissions
2030
Volume
growth
Own
operations
Energy
Materials
Transport
packaging
Other fuels
Transport
End-of-life
Other
developments
Near-term target
2030
Net zero target
2040
E1-1
SCOPE 2SCOPE 1
38 Faerch Corporate Annual Report 2025
E5
E5-1
39Faerch Corporate Annual Report 2025
E5-2
40 Faerch Corporate Annual Report 2025
E5-4
E5-4
E5-5
41Faerch Corporate Annual Report 2025
42 Faerch Corporate Annual Report 2025
43Faerch Corporate Annual Report 2025
S1-4
S2-4
44 Faerch Corporate Annual Report 2025
S1-1
S1
Equal treatment and opportunities for all
Working conditions for own workers
Health and safety of own workers
S1-5, S1-8
S1-12
45Faerch Corporate Annual Report 2025
S1-3 S1-4
S1-16
S1-13
46 Faerch Corporate Annual Report 2025
S2
S2-4
47
S2-2 S2-3
Faerch Corporate Annual Report 2025
48 Faerch Corporate Annual Report 2025
49Faerch Corporate Annual Report 2025
G1-3
50 Faerch Corporate Annual Report 2025
SG-1
G1
51Faerch Corporate Annual Report 2025
G1-2
Our approach to ethical business conduct
52 Faerch Corporate Annual Report 2025
53Faerch Corporate Annual Report 2025
* Not resulting from our Double Materiality Assessment. Reporting under Section 99(d) of the Danish Financial Statements Act.
54 Faerch Corporate Annual Report 2025
Board of
Directors
From left to right: Allan Sulkjær, Karin Rossau, Charlotte Strand, Sven Seidel, Ruud Sondag, Henrik Poulsen,
Jan Thorsgaard Nielsen, Marianne Kirkegaard, Thomas Skovgaard Lauridsen
55Faerch Corporate Annual Report 2025
Henrik Poulsen (1967)
Chair of Board of Directors and
Nomination & Remuneration Committee
Member since:
2021
Current position:
Senior Advisor, A.P. Møller Holding
Other Board Positions:
Chair, Carlsberg
Chair, Flatpay
Bertelsmann & Co.
Jan Thorsgaard Nielsen (1974)
Deputy Chair of Board of Directors and member
of Nomination & Remuneration Committee
Member since:
2021
Current position:
CIO, A.P. Møller Holding
Other Board Positions:
Chair, C2X
Vice Chair, Unilabs
Concentric
LEGO
Copenhagen International School
Vice Chair, Iv3 Aqua
Charlotte Strand (1961)
Chair of Audit Committee
Member since:
2023
Current position:
Non-Executive Director
Other Board positions:
Per Aarsleff
Reventus Power
Aibel
Nordsøfonden
North Star Advisory Board
Marianne Kirkegaard (1968)
Member of Nomination & Remuneration
Committee
Member since:
2021
Current position:
Partner, Rhone Capital
Other Board Positions:
Pandora
Sven Seidel (1973)
Member of Audit Committee
Member since:
2018
Current position:
CEO, PHOENIX Pharma SE
Other Board Positions:
Supervisory Board,
ALDI Nord Holding Stiftung & Co. KG
Ruud Sondag (1962)
Member of Audit Committee
Member since:
2023
Current position:
Various Board Memberships and Advisory roles
Other Board positions:
Chair, Eteck Group
Lead Operating Partner, Partners Group
Advisory Board, Scelta Mushrooms
Senior Advisory Board, Apheon
Senior Advisor, Oliver Wyman
Nacero
Karin Rossau (1965)
Employee Representative
Member since: 2023
Current position: Packaging Designer
Allan Sulkjær (1975)
Employee Representative
Member since: 2023
Current position: Thermoform Technician
Thomas Skovgaard
Lauridsen (1975)
Employee Representative
Member since: 2019
Current position: Technician
56 Faerch Corporate Annual Report 2025
Executive
Management
Back from left to right: Jesper Emil Jensen, Kilian Braunsdorf, Jette Lydersen, Thomas Rüdiger Smith, Tim Rademacker
Front from left to right Sonja Østergaard, Pernille Lind Olsen
57Faerch Corporate Annual Report 2025
Pernille Lind Olsen (1973)
Chief Executive Officer
Member since:
2025
Previous experience:
Henkel (USA) - Senior Corporate Vice President,
Packaging & Consumer Goods and North
America Henkel President
Henkel (Germany) - Corporate Vice President,
Metals Strategic Business Unit
Hempel (Denmark) - Group Vice President
Europe & Africa
Hempel (Singapore) - Group Vice President South
& East Asia
Hempel - Group Product & Portfolio Director
Novozymes - Various roles incl Strategic Account
Manager, Global Marketing Manager, Business
Development Manager and Executive Assistant
Tim Rademacker (1978)
EVP Circular Solutions
Member since:
2024
Previous experience:
Mitsubishi Chemical Advanced Materials
- Sales Director, Composites EMEA
Mitsubishi Chemical Advanced Materials
- General Manager, Carbon Fiber Recycling
Karl Meyer Group – Managing Director,
Composites Recycling and Innovation
Veolia - Head of Marketing and Sales at
BioCycling
Beiersdorf Consumer Products South Africa -
Manager Sales and Category Management
Sonja Østergaard (1980)
Chief Finance Officer
Member since:
2025
Previous experience:
Universal Robots - CFO
Vestas – Vice President, Head of Strategy &
Portfolio in Digital Solutions
Vestas - Vice President, Head of COO Finance
Vestas - Senior Director Supply Chain Finance
Vestas - Finance Director Procurement, Quality
& CAPEX
Vestas - Finance Business partner
Novo Nordisk - Finance Specialist
Jette Lydersen (1976)
Chief People Officer
Member since:
2024
Previous experience:
Carlsberg Group - Group Vice President,
Talent, Leadership, Inclusion & Internal
Communications
Vestas – Vice President, Global Head
of Talent and L&D
Vestas - HR Senior Specialist, Talent Mngt, People
and Org. Development
Vestas – HR Manager
Vestas – HR Business Partner
Jesper Emil Jensen (1978)
Chief Commercial Officer
Member since:
2018
Previous experience:
Faerch - Sales and Marketing Director North
Faerch - Vice President NPI and NPD
Faerch - Sales Director Central
Faerch - Product Manager
Thomas Rüdiger Smith (1984)
Chief Strategy & Transformation Officer
Member since:
2024
Previous experience:
McKinsey & Company - Partner
McKinsey & Company - Associate Partner
McKinsey & Company - Engagement Manager
McKinsey & Company - Associate
Kilian Braunsdorf (1975)
Chief Operations Officer
Member since:
2022
Previous experience:
Paccor - CEO
Paccor - CFO
Constantia Flexibles Group - Senior Vice
President Finance
Constantia Flexibles Germany - Managing
Director
Arthur Andersen & Ernst & Young - Manager
58 Faerch Corporate Annual Report 2025
Consolidated
financial
statements
59Faerch Corporate Annual Report 2025
Table of contents - Consolidated financial statements
Note
Section 3 - Financial matters
3.1 Financial items 76
3.2 Financial assets and liabilities 77
3.3 Financial risks and instruments 80
3.4 Other short term debt 81
3.5 Provisions 82
3.6 Share capital 82
Section 4 - Other areas
4.1 Business Combinations 83
4.2 Adjustment for non-cash transactions 84
4.3 Tax 85
4.4 Fees to auditors appointed by the board of directors 88
4.5 Related parties 88
4.6 Contractual commitments and contingent liabilities 89
4.7 Events after the balance sheet date 89
4.8 Material accounting policy information 90
4.9 Significant accounting estimates and judgements 92
4.10 Group structure 92
Note
Consolidated income statement and other comprehensive income 60
Consolidated balance sheet 61
Consolidated statement of changes in equity 62
Consolidated cash flow statement 63
Section 1 - Operating profit
1.1 Revenue 64
1.2 Expenses 65
1.3 Other operating income and expenses 66
1.4 Special items 67
Section 2 - Operating assets and liabilities
2.1 Intangible assets 68
2.2 Impairment tests 70
2.3 Tangible assets 72
2.4 Inventories 74
2.5 Trade receivables 75
2.6 Working capital change 76
60 Faerch Corporate Annual Report 2025
Note EURm 2025 2024
Statement of comprehensive income
Profit / (loss) for the year -42.8 -67.1
Items that will be reclassified subsequently to
the income statement when specific conditions are met:
Unrealised gain / (loss) on hedging reserves -1.6 -10.5
Tax on unrealised gain / (loss) on hedging reserves 0.4 2.3
Foreign exchange adjustment on translation -11.3 6.3
Tax on foreign exchange adjustment 1.0 -1.4
Total comprehensive income for the year -54.4 -70.3
Of which:
Non-controlling interest - 0.6
Owners of Faerch A/S’ share -54.4 -70.9
1 JANUARY - 31 DECEMBER
Note EURm 2025 2024
1.1 Revenue 1,186.8 1,245.0
1.2 Production costs -973.9 -1,018.5
Gross profit 212.9 226.5
1.2 Sales and distribution expenses -115.8 -119.9
1.2 Administrative expenses -73.1 -67.4
1.3 Other operating income 6.9 6.9
1.3 Other operating expenses -0.9 -3.6
Gain/loss on sale of non-current assets -1.0 -14.0
Operating profit (EBIT) before special items 29.0 28.5
Specification:
Earnings before interest, tax, depreciation and amortisation (EBITDA) 173.9 188.2
1.2 Depreciation, amortisation and impairment losses, net -143.9 -145.7
Gain/loss on sale of non-current assets -1.0 -14.0
Operating profit (EBIT) before special items 29.0 28.5
1.4 Special items -40.3 -24.2
Operating profit / (loss) (EBIT) -11.3 4.3
3.1 Financial income 18.3 8.3
3.1 Financial expenses -75.4 -88.0
Profit / (loss) before income tax -68.4 -75.3
4.3 Tax on profit / (loss) for the year 25.6 8.2
Profit / (loss) for the year -42.8 -67.1
Of which:
Non-controlling interest - -0.1
Owners of Faerch A/S' share of the profit / (loss) -42.8 -67.0
Consolidated income statement and consolidated
statement of other comprehensive income
61Faerch Corporate Annual Report 2025
Note EURm 2025 2024
Equity and liabilities
3.6 Share capital 10.7 10.7
Reserve for currency translation 6.4 16.8
Retained earnings 1,212.4 1,256.4
Equity attributable to Faerch A/S 1,229.5 1,283.9
3.2 Borrowings 978.0 983.1
3.5 Provisions 2.7 2.5
4.3 Deferred tax liabilities 153.5 161.7
3.2 Derivatives, non-current 4.9 4.9
Total non-current liabilities 1,139.1 1,152.2
3.2 Borrowings 21.6 164.6
3.2 Debt to Parent Company 5.8 4.5
3.2 Trade payables 136.6 159.2
Current tax liabilities 15.0 13.4
3.2 Derivatives, current 2.4 4.0
3.5 Provisions 21.9 1.9
3.2, 3.4 Other short term debt 91.0 87.6
3.2 Deferred revenue 5.0 5.5
Total current liabilities 299.3 440.7
Total liabilities 1,438.4 1,592.9
Total equity and liabilities 2,667.9 2,876.8
31 DECEMBER
Note EURm 2025 2024
Assets
Goodwill 1,019.8 1,023.9
Brand 155.1 155.4
Customer relations 345.7 383.4
Other intangible assets 14.5 17.9
2.1, 2.2 Intangible assets 1,535.1 1,580.6
Land and buildings 226.1 227.1
Plant and machinery 360.6 403.2
Fixtures and fittings, tools and equipment 24.7 28.9
Fixed assets under construction 26.7 27.6
2.3 Tangible assets 638.1 686.8
4.3 Deferred tax assets 60.9 34.4
3.2 Derivatives, non-current - 1.3
Other non-current assets 3.9 1.6
Total non-current assets 2,238.0 2,304.7
2.4 Inventories 152.1 153.6
2.5, 3.2 Trade receivables 100.6 106.3
3.2 Other receivables 24.5 24.8
3.2 Derivatives, current 1.3 5.1
3.2 Prepayments 10.3 4.4
Current tax assets 18.5 13.2
3.2 Cash at banks 122.5 264.9
Total current assets 429.9 572.2
Total assets 2,667.9 2,876.8
Consolidated balance sheet
62 Faerch Corporate Annual Report 2025
Consolidated statement of changes in equity
EURm
Equity at 1 January 2025 10.7 16.8 1,256.4 - 1,283.9
Profit / (loss) for the year - - -42.8 - -42.8
Hedging reserves - - -1.6 - -1.6
Tax on hedging reserves - - 0.4 - 0.4
Other comprehensive income - -11.3 - - -11.3
Tax on other comprehensive income - 1.0 - - 1.0
Total comprehensive income for the period - -10.4 -44.1 - -54.4
Sale of non-controlling interest - - - - -
Equity at 31 December 2025 10.7 6.4 1,212.4 - 1,229.5
Equity at 1 January 2024 10.7 11.9 1,131.5 4.1 1,158.2
Profit / (loss) for the year - - -67.0 -0.1 -67.1
Hedging reserves - - -10.5 - -10.5
Tax on hedging reserves - - 2.3 - 2.3
Capital increase - - 200.1 - 200.1
Other comprehensive income - 5.6 - 0.7 6.3
Tax on other comprehensive income - -1.4 - - -1.4
Total comprehensive income for the period - 4.3 124.9 0.6 129.7
Sale of non-controlling interest - 0.7 - -4.6 -4.0
Equity at 31 December 2024 10.7 16.8 1,256.4 - 1,283.9
Total
Equity
Non
controlling
interest
Retained
earnings
Reserve for
currency
translation
Share
capital
63Faerch Corporate Annual Report 2025
Consolidated cash flow statement
Note EURm 2025 2024
Proceeds from capital increase / shareholder contribution - 200.0
Proceeds from borrowings 20.0 30.1
Borrowings from parent company 1.3 -0.8
Repayments of borrowings -169.1 -88.9
Cash flow from financing activities -147.8 140.4
Net increase in cash and cash equivalents -127.7 192.2
Cash and cash equivalents at 1 January 249.9 57.1
Foreign exchange rate adjustments on cash and cash equivalents -4.9 0.6
Cash and cash equivalents at 31 December 117.3 249.9
Cash and cash equivalents are specified as follows:
Cash at banks 122.5 264.9
Credit institutions -5.2 -14.9
Cash and cash equivalents at 31 December 117.3 249.9
1 JANUARY - 31 DECEMBER
Note EURm 2025 2024
Profit / (loss) before tax -68.4 -75.3
4.2 Adjustments for non-cash transactions 203.4 238.2
2.6 Change in working capital -16.5 19.9
Interest paid -62.5 -72.6
Interest received 1.4 2.1
Income taxes paid -11.4 -9.0
Change in provisions 20.2 -3.5
Cash flow from operating activities 66.2 99.8
2.1 Purchase of intangible assets -2.2 -5.5
2.3 Purchase of tangible assets -45.4 -54.7
Proceeds from sale of tangible assets 3.7 5.2
Sale / (Acquisition) of subsidiaries - 8.3
Change in other non current assets -2.3 -1.2
Cash flow from investing activities -46.1 -47.9
Free cash flow 20.1 51.9
64 Faerch Corporate Annual Report 2025
Note 1.1 // Revenue
ACCOUNTING POLICIES
Revenue recognition
Revenue from the sale of post, tubs, trays, sheets, flakes and other similar products is recognised in the income
statement, when delivery and risk of the products have passed to the buyer, the amount of revenue can be
measured reliably, and collection is probable. Revenue comprises invoiced sales for the year less sales rebates,
cash discounts, VAT and duties.
The geographical distribution of "Total revenue" is based on the external customers country of residence.
No customer exceeds 10% of the group's net sales neither this year nor last year.
EURm 2025 2024
Sale of goods 1,186.8 1,245.0
Sale of goods per region
Europe 1,078.8 1,120.4
North America 59.3 69.5
Rest of the world 48.7 55.1
Total 1,186.8 1,245.0
Unallocated &
Sale of goods by segment Europe North America eliminations Total
2025 1,127.9 60.5 -1.6 1,186.0
2024 1,176.8 69.5 -1.4 1,245.0
65Faerch Corporate Annual Report 2025
Note 1.2.a // Staff expenses
ACCOUNTING POLICIES
Production costs
Production costs comprise cost incurred to achieve revenue for the year. Costs comprises raw materials,
consumables, direct labour costs and indirect production costs such as maintenance, depreciation and
amortisations etc.
Sales and distribution expenses
Sales and distribution expenses comprise costs related to distribution of products sold during the year and
sales staff, research and development, advertising and exhibition expenses etc., including depreciations and
amortisations. Furthermore, provisions for bad debt are included.
Administration expenses
Administration expenses incurred in the course of the year relate to management and administration, including
administrative staff, office premises and office costs, as well as depreciations and amortisations.
EURm 2025 2024
Wages, salaries and remuneration 226.7 201.8
Pension contribution 13.9 12.9
Other social security costs 21.2 23.6
Total staff costs 261.8 238.2
Staff costs relate to:
Production costs 184.2 181.2
Sales and distribution expenses 19.1 18.1
Administrative expenses 36.3 33.9
239.6 233.2
Staff cost recognised as inventory or fixed assets 1.4 2.0
Staff cost recognised as special items 20.3 3.0
Total staff costs 261.2 238.2
Average number of full time employees 5,012 5,264
Total number of employees as of end of the year 4,942 4,995
Remuneration for Key Management Personnel (Executive Management)
Salaries and wages 5.1 4.3
Pension expenses 0.2 0.2
Total 5.3 4.5
Fee to Board of Directors 0.5 0.5
Total remuneration for registered members of the Group Executive Team amounts to EUR 2.8m (2024: EUR 3m).
66 Faerch Corporate Annual Report 2025
Note 1.2.b // Depreciation, amortisation and
impairment losses
Note 1.2.c // Research and developments costs
Note 1.3 // Other operating income and expenses
ACCOUNTING POLICIES
Research and development expenses are expenses that do not meet the criteria for asset recognition. These are
expensed as incurred and include costs like wages, salaries and consumables.
ACCOUNTING POLICIES
Other operating income and expenses comprise items secondary to the Group's primary activities.
These items comprise gains and losses relating to:
- Divestment of intangible assets and property, plant and equipment
- Cost of non-recurring or non-operational income
- Income incl. subsidies of a non-operating nature
EURm 2025 2024
Intangible assets, amortisation 42.5 42.5
Property, plant and equipment, depreciation 96.9 101.6
Property, plant and equipment, impairment 4.5 1.7
Total depreciation, amortisation and impairment losses 143.9 145.7
Depreciation/amortisation and impairment losses relate to:
Production costs 98.1 100.9
Sales and distribution expenses 36.9 37.6
Administrative expenses 8.9 7.3
Total depreciation, amortisation and impairment losses 143.9 145.7
EURm 2025 2024
Research and development costs expensed during the year 0.8 0.8
0.8 0.8
EURm 2025 2024
Gain on disposal of intangible assets and property, plant and equipment - 0.9
Rent and other secondary income 0.4 -
Covernment grant 0.7 -
Other items 5.8 5.9
Total other operating income 6.9 6.9
Loss on disposal of intangible assets and property, plant and equipment - 0.1
Other items 0.9 3.5
Total other operating expenses 0.9 3.6
67Faerch Corporate Annual Report 2025
Note 1.4 // Special items
ACCOUNTING POLICIES
Special items include income and expenses of a special non-recurring nature which cannot be attributed directly
to the Group’s ordinary operating activities. Such income and expenses include restructuring costs related to
closure of factories.
These items are classified separately in the income statement, in order to provide a more transparent view of the
Group’s recurring operating profit.
EURm 2025 2024
Restructuring -28.1 -3.0
Integration - -1.9
Redundancy - -2.7
Strategic rebalancing of inventory positions - -7.8
Fire and flooding -2.6 -2.9
Claims -2.6 -1.8
Other cost -7.0 -4.0
Total Special items -40.3 -24.2
68 Faerch Corporate Annual Report 2025
Note 2.1 // Intangible assets
ACCOUNTING POLICIES
Goodwill
Goodwill is initially recognised at the amount by which the purchase price for a business combination exceeds
the recognised value of the identifiable assets, liabilities and contingent liabilities. Subsequently to initial
recognition goodwill is measured at cost less impairment losses. The carrying amount of goodwill is allocated to
the Group’s cash-generating units that follow the management structure and internal financial reporting.
Goodwill is not amortised and impairment loss charges in previous years are not reversed.
Brand
Brand is initially recognised at cost. It is estimated that the Faerch brand will generate net cash inflows for the
group for an indefinite period. Therefore, the brand is carried at cost without amortisation, but is tested for
impairment in accordance with note 2.2.
Customer relations
Customer relations are amortized on a straight-line basis over the expected useful life, which is typically a period
of 15 to 20 years.
Other intangible assets
Projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a
potential future commercial or utilization opportunity within the Group is demonstrated, and where the Group
intends to produce, market or use the project, are recognized as intangible assets provided that future benefits
are probable.
Completed projects are amortised on a straight-line basis over 3 years. Projects in progress are not amortised,
but are annually tested for impairment.
Total
Other
intangible
assets
Customer
relationsBrandGoodwill
EURm
2025
Cost at 1 January 1,023.9 191.9 548.7 43.7 1,808.2
Exchange rate adjustments -4.1 -0.3 -1.8 0.0 -6.1
Additions - - - 2.2 2.2
Transfer - - - 0.6 0.6
Disposals - - - -1.1 -1.1
Cost at 31 December 1,019.8 191.6 546.9 45.4 1,803.7
Amortisation and impairment at 1 January - 36.5 165.4 25.8 227.6
Exchange rate adjustments - -0.0 -0.4 -0.0 -0.5
Amortization and impairment for the year - 0.1 36.3 6.2 42.5
Transfer - - - 0.1 0.1
Sale/Diposals - - -1.1 -1.1
Amortisation and impairment at 31 December - 36.6 201.2 30.9 268.7
Carrying amount at 31 December 1,019.8 155.1 345.7 14.5 1,535.1
2024
Cost at 1 January 1,031.2 192.0 547.8 38.2 1,809.2
Exchange rate adjustments 2.6 -0.1 0.9 0.2 3.5
Additions - - - 5.5 5.5
Transfer - - - 0.7 0.7
Disposals -9.9 - - -0.9 -10.8
Cost at 31 December 1,023.9 191.9 548.7 43.7 1,808.2
Amortisation and impairment at 1 January - 36.0 128.7 21.1 185.8
Exchange rate adjustments - -0.0 0.1 0.1 0.2
Amortisation and impairment for the year - 0.5 36.6 5.3 42.5
Sale/Diposals - - - -0.8 -0.8
Amortisation and impairment at 31 December - 36.5 165.4 25.8 227.6
Carrying amount at 31 December 1,023.9 155.4 383.4 17.9 1,580.6
69Faerch Corporate Annual Report 2025
70 Faerch Corporate Annual Report 2025
The average revenue growth rates in the forecast period (2026-2030) are generally kept unchanged compared to
prior year, management considers the average growth rates for reasonability based on the business and market
plans at hand.
The long-term growth rate in the terminal period has been set to equal the expected long-term rate of inflation of
2% for the euro region.
A discount rate (WACC) of 7.0% is applied for the specific business areas based on assumptions about interest
rates, tax rates and risks premiums. The impairment tests did not show any need for impairment losses to be
recognised. In Management’s opinion, reasonable changes in key assumptions mentioned above will not cause
material impairment losses for the Group.
Significant accounting estimates and adjustments
Due to the nature of the business, estimates are made on anticipated cash flows together with an assessment
of the long-term growth rate and profitability. Additionally, an assessment of a reasonable discount rate is made,
reflecting the risks inherent in the asset or cash-generating unit. This naturally result in a degree of uncertainty.
Changes in the future cash flow or discount rate estimates used may result in materially different values.
Development projects in progress
For development projects in progress, Management estimates on an ongoing basis whether each project is likely
to generate future economic benefits for the Group in order to qualify for recognition. The development projects
are evaluated on technical as well as commercial criteria. In Management’s opinion, the development projects
qualify for recognition.
The most significant allocations of intangible assets as well as the most significant assumptions for the performed
impairment tests are summarized below.
Note 2.2 // Impairment tests
ACCOUNTING POLICIES
At each reporting date, the Group assesses whether there is any indication that an asset may be impaired. If any
indication exists, or when annual impairment testing of an asset is required, the Group estimates the recoverable
amount of the asset.
Goodwill
Goodwill relates to the two Cash Generating Units “Europe” and “North America”.
Brand
The brand value relates to the acquisition of Faerch Plast Group A/S in 2017. All brand value is allocated
to European Business.
Customer relations and other
The value related the acquisition of Faerch Plast Group A/S and CGL Pack Service SAS are allocated to Europe, the
value related the acquisition of MCP USA inc to North America and the value related the acquisition of PACCOR
Group are split into both Europe and North America based on a fair value calculation.
Other intangible assets
Other intangible assets consist of internal development projects all placed within the European Business.
Testing method
The carrying amount of intangibles is tested annually for impairment. For the purposes of assessing impairment,
assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash generating
units). The recoverable amount is calculated as the present value of future net cash flows from the cash-
generating unit to which the intangible asset is related.
The estimated future free net cash flows are based on budgets for 2026 and business plans and projections for
2027-2030. The business plans and projections are based on a market by market approach, assessing the organic
business potential for each of key markets and segments, and estimating the volume growth, sales prices and
contribution margins for each segment. Also the capital expenditure and working capital required to maintain and
organically grow the business is considered.
Cash tax outflows are calculated using the current tax rates per jurisdiction, taking into account the cash effect of
any significant tax loss carry forwards.
71Faerch Corporate Annual Report 2025
Note 2.2 // Impairment tests (continued)
Discount
rate
after tax
Discount
rate
before tax
Average
revenue
growth in
forecast
period in %
Revenue
growth in
residual
period in %
Carrying
amount
other
intangible
assets
Carrying
amount
customer
relations
Carrying
amount
Brand
Carrying
amount
goodwill
EURm
2025
Europe 978.7 155.1 324.2 14.5 7.0% 8.0% 2.7% 2%
North America 41.2 - 21.5 - 7.0% 8.0% 17.9% 2%
Total carrying amount at 31 December 1,019.8 155.1 345.7 14.5 - - - -
2024
Tray Business 938.6 155.4 383.4 17.9 7.0% 8.4% 6.3% 2%
Recycling Business 85.3 - - - 7.0% 8.3% 8.2% 2%
Total carrying amount at 31 December 1,023.9 155.4 383.4 17.9 - - - -
Significant estimate: impact of possible changes in key assumptions
Estimation uncertainty is present due to the nature of the inputs into the calculation, consisting of budgeted
and forecasted information, which is inherently uncertain. Multiple sensitivity tests have been performed. The
sensitivity tests have been performed split by Tray and Recycling using a different WACC, different growth rates in
the residual year, different EBITDA margins and different revenues in the residual year.
The sensitivity tests performed, shows that there is reasonable headroom for changes in the key assumptions
individually, as illustrated in the table below. Applying the discounted cash flow approach, the table indicates the
scenarios where the enterprise value of the CGU’s would equal the invested capital of the CGU’s by changes in
the key assumptions individually.
from to from to
Discount rate, after tax (WACC) 7.0% 8.8% 7.0% 9.2%
Growth in residual period (%) 2.0% -0.5% 2.0% -0.5%
Change in EBITDA margin in residual year (%) 20.1% 15.2% 18.4% 15.0%
Change in revenue in residual year (EURm) 1,371.7 1,033.6 158.5 129.5
Europe North America
72 Faerch Corporate Annual Report 2025
Note 2.3 // Tangible assets
ACCOUNTING POLICIES
Property, plant and equipment are measured at cost less accumulated depreciation and impairment. Assets in
progress and land are not depreciated.
Cost
Cost comprises the acquisition price as well as cost directly associated with the asset until such time as the
asset is ready for its intended use. In case of self-constructed assets, cost comprises direct and indirect costs
related to materials, components and payroll that directly concerns the construction of assets. Subsequent
expenditure items of property, plant and equipment are only recognised as an addition to the carrying amount of
the item, when it is likely that incurring the cost will result in future financial benefits for the Group. Other costs
such as general repair and maintenance are recognised in the income statement when incurred.
Depreciation
The basis of deprecation is cost less estimated residual value. Property, plant and equipment are depreciated on
a straight-line basis from the time of acquisition, or when the assets are available for use based on an assessment
of the anticipated useful life.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as
separate items of property, plant and equipment.
The estimated useful lives are as follows:
- Buildings 30 years
- Plant and machinery 10-20 years
- Fixtures and fitting, tools and equipment 3-5 years
Right-of-use assets
Right-of-use assets are generally depreciated over the shorter of the asset’s useful life and the lease term on
a straight-line basis. If the group is reasonably certain to exercise a purchase option, the right-of-use asset is
depreciated over the underlying asset’s useful life.
Payments associated with short-term leases of equipment and vehicles and all leases of low-value assets are
recognised on a straight-line basis as an expense in income statement. Short-term leases are leases with a lease
term of 12 months or less without a purchase option. Low-value assets comprise IT equipment and small items of
office furniture.
Uncertainties and estimates
Estimates are made in assessing the useful lives of property, plant at equipment that determine the period over
which the depreciable amount of the asset is expensed to the income statement. The depreciable amount of an
item of property, plant and equipment is a function of the asset’s cost or carrying amount and its residual value.
Estimates are made in assessing the amount that the Group can recover at the end of the useful life of an asset.
An annual review of the appropriateness of the depreciation method, useful life and residual values of items
property, plant and equipment is undertaken.
73Faerch Corporate Annual Report 2025
Note 2.3 // Tangible assets (continued)
Total
Fixed assets
under
construction
Fixtures
and fitting,
tools and
equipment
Plant and
machinery
Land and
buildings
EURm
2025
Cost at 1 January 281.6 649.1 104.5 27.6 1,062.9
Exchange rate adjustments -1.9 -2.5 -1.4 -1.2 -6.9
Additions 16.1 12.6 6.2 24.3 59.2
Transfer 4.6 18.5 2.6 -24.0 1.7
Disposals -3.5 -14.7 -4.1 -0.0 -22.4
Cost at 31 December 297.0 663.0 107.8 26.7 1,094.5
Depreciation and impairment at 1 January 54.5 246.0 75.6 - 376.1
Exchange rate adjustments -0.1 -2.9 -1.9 - -4.9
Depreciation for the year 17.4 67.1 12.3 - 96.9
Impairment losses 0.0 3.6 0.8 - 4.5
Transfer 1.4 0.9 -0.1 - 2.2
Depreciation on disposals -2.3 -12.4 -3.6 - -18.4
Depreciation and impairment at 31 December 70.9 302.5 83.1 - 456.5
Carrying amount at 31 December 226.1 360.6 24.7 26.7 638.1
Of which related to right-of-use assets 33.0 13.9 6.0 - 52.9
Depreciation for the year related to right-of-use assets 10.1 4.0 3.1 - 17.2
Addition of right-of-use assets 13.4 2.5 3.0 - 18.9
Cash outflow for right-of-use assets for the period 2025
- - - - 20.5
Interest expense for right-of-use assets for the period 2025
- - - - 3.6
Expenses relating to short-term leases for the period 2025 -
- - - 0.5
Total
Fixed assets
under
construction
Fixtures
and fitting,
tools and
equipment
Plant and
machinery
Land and
buildings
EURm
2024
Cost at 1 January 280.6 632.1 98.1 48.2 1,059.1
Exchange rate adjustments 1.8 3.1 0.6 -0.6 4.9
Additions 8.8 22.0 6.4 26.0 63.2
Transfer 9.8 31.4 3.8 -45.7 -0.7
Disposals -19.3 -39.5 -4.5 -0.2 -63.6
Cost at 31 December 281.6 649.1 104.5 27.6 1,062.9
Depreciation and impairment at 1 January 40.5 205.6 67.2 - 313.4
Exchange rate adjustments -0.2 2.6 0.6 - 3.0
Depreciation for the year 19.4 69.4 12.8 - 101.6
Impairment losses 0.2 1.5 0.0 - 1.7
Transfer 0.6 -0.1 -0.5 - 0.0
Depreciation on disposals -6.1 -33.0 -4.5 - -43.5
Depreciation and impairment at 31 December 54.5 246.0 75.6 - 376.1
Carrying amount at 31 December 227.1 403.2 28.9 27.6 686.8
Of which related to right-of-use assets 31.1 9.6 6.2 - 46.9
Depreciation for the year related to right-of-use assets 12.7 4.1 3.1 - 19.8
Addition of right-of-use assets 7.5 3.0 2.9 - 13.4
Cash outflow for right-of-use assets for the period 2024
- - - - 21.8
Interest expense for right-of-use assets for the period 2024
- - - - 3.2
Expenses relating to short-term leases for the period 2024 -
- - - 0.6
74 Faerch Corporate Annual Report 2025
Note 2.4 // Inventories
ACCOUNTING POLICIES
Inventories are measured at the lower of cost price according to the FIFO principle and net realisable value. The
cost price of raw materials, consumable and purchased goods comprises the acquisition price including delivery
costs. The cost price of finished goods and work in progress comprises costs of materials and direct labour plus
production costs.
Production costs include indirect materials and wages, maintenance, depreciation on plant and machinery,
factory buildings and other equipment used in the production process as well as cost of factory administration
and management.
The net realisable value of inventories is calculated as the expected selling price less cost of completion and
costs necessary to make the sale.
Significant accounting estimates and judgements
Indirect production costs are calculated based on relevant assumptions with respect to capacity utilisation and
other factors characteristic to the product type.
The assessment of the net realisable value requires judgement in relation to the estimate of the selling price of
certain raw materials.
EURm 2025 2024
Raw materials and consumables 53.3 54.0
Work in progress 25.0 25.7
Finished goods 59.9 61.0
Other inventory 13.9 12.9
Total inventory 152.1 153.6
Amounts recognised in profit or loss
Cost of goods sold included in cost of sales 856.2 904.0
Semi-finished and finished goods are regularly reprocessed together
with scrap from the production process as a normal part of the
process of re-using materials in the production of sheets and trays.
The cost hereoff including write-downs on slow-moving goods etc. amounts to -4.3 -4.8
75Faerch Corporate Annual Report 2025
Note 2.5 // Trade receivables
EURm 2025 2024
Trade receivables before provision for bad debts 105.3 111.1
Loss allowance -4.7 -4.8
Total trade receivables, net 100.6 106.3
The carrying amount of the trade receivables include receivables which are subject to a non-recourse factoring arrangement.
Under this arrangement, the Group has transferred the relevant receivables to the factor in exchange of cash and is prevented
from selling or pleding the receivables.
Loss allowance for bad debts at 1 January -4.8 -5.3
Change in write-downs 0.0 0.3
Realised loss 0.1 0.2
Loss allowance for bad debts at 31 December -4.7 -4.8
31. December 2025
Expected loss rate 0% 3% 12% 1% 99% 96% 5%
Gross carrying amount - trade receivables 84.1 14.1 1.9 1.1 0.4 3.8 105.4
Loss allowance -0.1 -0.4 -0.2 -0.0 -0.4 -3.6 -4.7
31. December 2024
Expected loss rate 0% 2% 30% 42% 87% 100% 4%
Gross carrying amount - trade receivables 85.9 20.3 0.5 0.2 0.1 4.2 111.1
Loss allowance -0.1 -0.3 -0.1 -0.1 -0.1 -4.2 -4.8
Between
61-90 days
Overdue
91-365 days
Overdue
more than
1 year Total
Overdue
31-60 days
Overdue
0-30 days
Not
overdue
ACCOUNTING POLICIES
On initial recognition, the receivables are measured at fair value and subsequently at amortised cost, which normally correspond to fair value less
provisions for expected losses. Provisions for expected losses are based on an individual assessment of each outstanding account.
Credit risk
The expected loss rates are based on individual assements of each outstanding account, on that basis,
the loss allowance as at 31 December 2025 and 31 December 2024 was determined as follows for trade receivables.
76 Faerch Corporate Annual Report 2025
Note 2.6 // Working capital change
EURm 2025 2024
Change in inventories -0.1 17.0
Change in trade receivables 2.6 5.2
Change in other receivables -0.2 5.8
Change in prepayments -5.9 -0.2
Change in trade payables -19.9 -4.5
Change in other payables 7.1 -3.4
Total -16.5 19.9
Note 3.1 // Financial items
ACCOUNTING POLICIES
Financial income and financial expenses
Interest income and expenses as well as capital gains and losses are recognised in the income statement at the
amounts that can be attributed to the period. Additionally, financial items comprise realised and unrealised fair
value adjustments of securities and currency adjustments on financial assets and financial liabilities as well as the
interest portion of financial lease payments.
Additionally, realised gains and losses on derivative financial instruments contracts are included. Borrowing costs
from general borrowing, or loans that directly relate to the acquisition, construction or development of qualified
assets are attributed to the cost of such assets, and are therefore not included in financial expenses.
Exchange differences arising on a monetary item that is a receivable from or payable to a foreign operation and
forms part as a net investment in a foreign operation, is initially recognised in other comprehensive income and
reclassified from equity to the income statement on disposal of the net investment in accordance with IAS 21.
EURm 2025 2024
Interest of financial assets measured at amortised cost 0.8 1.7
Foreign exchange adjustments 16.4 5.8
Other financial income 1.1 0.8
Total financial income 18.3 8.3
Interest on financial liabilities measured at amortised cost 57.3 69.4
Foreign exchange adjustments 12.4 14.4
Other financial expenses 5.7 4.2
Total financial expenses 75.4 88.0
Other financial expenses mainly include amortised loan cost and letter of credit fees as well as bank commitment fees.
77Faerch Corporate Annual Report 2025
Lease liabilities
The group leases various offices, production facilities, equipment and vehicles. Rental contracts are typically
made for fixed periods of 12 months to 20 years but may include extension options.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include
the net present value of the following lease payments:
- fixed payments (including in-substance fixed payments), less any lease incentives receivable
- variable lease payment that are based on an index or a rate, initially measured using the index or rate as at the
commencement date
- amounts expected to be payable by the group under residual value guarantees
- the exercise price of a purchase option if the group is reasonably certain to exercise that option, and
- payments of penalties for terminating the lease, if the lease term reflects the group exercising that option.
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be readily
determined, which is generally the case for leases in the group, the lessee’s incremental borrowing rate is used,
being the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset
of similar value to the right-of-use asset in a similar economic environment with similar terms, security and
conditions.
The Group has decided not to recognize a lease liability for short-term leases (leases with an expected term
of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a
straight-line basis.
Uncertainties and estimates
The maturity analysis is based on all undiscounted cash flows, including estimated interest payments, which are
estimated based on the current market conditions.
The undiscounted cash flows from derivative financial instruments are presented in gross amounts.
ACCOUNTING POLICIES
Loans and receivables
Loans and receivables are measured at amortised cost using the effective interest method, less any impairment.
Loans and receivables are assessed for indicators of impairment at the end of each reporting period.
Bank debt and other financial liabilities
Bank debt and other financial liabilities are initially recognized at fair value less transaction cost and subsequently
measured at amortised cost using the effective interest method. The difference between proceeds and the
nominal value is recognised as a financial expense over the term of the loan. Other debt is recognised as a
financial expense over the term of the loan. Other debt is recognised at amortised costs.
Derivative financial instruments
Derivative financial instruments are recognised and measured in the balance sheet at fair value. Positive and
negative fair values of derivative financial instruments are included in other receivables and other payables,
respectively, and positive and negative values are set off (only relevant to currency hedging with banks) only
where the enterprise has the right and the intention to settle several financial instruments on a net basis.
Fair values of derivative financial instruments are calculated on the basis of observable data applying generally
accepted valuation methods.
Changes in the fair values of derivative financial instruments that are designated and qualify as hedges of
expected future cash flows and effectively hedge changes in the value of the hedged item are recognised in other
comprehensive income. Profits or losses on such hedging transactions are transferred from the hedging reserve
on realisation of the hedged item and are recognised in the same item as the hedged item.
Derivative financial instruments are recognised as other receivables/payables and measured at fair value.
Changes in the fair values of currency derivative financial instruments entered into for the purpose of hedging
commercial cash flow which do not qualify for hedge accounting are recognised as they arise in other income and
expenses in the income statement. Gains and losses on other derivative financial instruments are recognised as
they arise in financial income and expense.
Note 3.2 // Financial assets and liabilities
78 Faerch Corporate Annual Report 2025
Note 3.2 // Financial assets and liabilities (continued)
Total
contractual
cash flows
Due
within
1 year
Due
between
1 and 5
years
Maturity
Due
after
5 years
Fair
value
Carrying
amount
EURm
2025
Measured at amortised cost (receivables):
Trade receivables 100.6 100.6 100.6 100.6 - -
Other receivables 24.5 24.5 24.5 24.5 - -
Prepayments 10.3 10.3 10.3 10.3 - -
Cash at banks 122.5 122.5 122.5 122.5
257.9 257.9 257.9 257.9 - -
Derivative financial instruments:
Measured at fair value through the income statement 1.3 1.3 1.3 1.3 - -
1.3 1.3 1.3 1.3 - -
Total financial assets 259.2 259.2 259.2 259.2 - -
Measured at amortised cost (liabilities):
Mortgage credit institutions 27.7 27.7 35.7 0.4 9.9 25.4
Bank borrowings 925.3 925.3 996.2 54.3 941.9 -
Lease liabilities 46.6 46.6 54.5 10.8 31.8 11.8
Borrowings from parent company 5.8 5.8 5.8 5.8 - -
Deferred revenue 5.0 5.0 5.0 5.0 - -
Trade payables 136.6 136.6 136.6 136.6 - -
Other short term debt 91.0 91.0 91.0 91.0 - -
Total financial liabilities 1,238.0 1,238.0 1,324.8 303.9 983.6 37.2
Derivative financial instruments:
Measured at fair value through the income statement 5.5 5.5 5.5 2.4 3.1 -
5.5 5.5 5.5 2.4 3.1 -
Total financial assets 1,243.5 1,243.5 1,330.3 306.3 986.7 37.2
79Faerch Corporate Annual Report 2025
Note 3.2 // Financial assets and liabilities (continued)
Total
contractual
cash flows
Due
within
1 year
Due
between
1 and 5
years
Maturity
Due
after
5 years
Fair
value
Carrying
amount
Financial assets and liabilities measured at fair value relate to derivatives. Calculation of fair value of these derivatives is based on observable
inputs such as interest rates, currency rates etc.
The Group’s exposure to various risks associated with the financial instruments is discussed in note 3.3. The maximum exposure to credit risk at
the end of the reporting period is the carrying amount of each class of financial assets mentioned above.
Net interest-bearing debt
EURm 2025 2024
Cash at banks -122.5 -264.9
Long-term borrowings 978.0 983.1
Short-term borrowings
Borrowings from Parent Company 5.8 4.5
Credit institutions 5.2 14.9
Finance lease liabilities 9.5 15.0
Payments due within 1 year from
long term debt 6.9 134.7
Total net interest-bearing debt 882.9 887.3
EURm
2024
Measured at amortised cost (receivables):
Trade receivables 106.3 106.3 106.3 106.3 - -
Other receivables 24.8 24.8 24.8 24.8 - -
Prepayments 4.4 4.4 4.4 4.4 - -
Cash at banks 264.9 264.9 264.9 264.9 - -
400.3 400.3 400.3 400.3 - -
Derivative financial instruments:
Measured at fair value through the income statement 6.3 6.3 6.3 5.1 1.3 -
6.3 6.3 6.3 5.1 1.3 -
Total financial assets 406.7 406.7 406.7 405.4 1.3 -
Measured at amortised cost (liabilities):
Mortgage credit institutions 27.8 27.8 37.6 0.4 8.0 29.2
Bank borrowings 1,074.1 1,074.1 1,238.4 181.2 1,056.0 1.2
Lease liabilities 45.9 45.9 51.5 16.9 28.5 6.2
Borrowings from parent company 4.5 4.5 4.5 4.5 - -
Deferred revenue 5.5 5.5 5.5 5.5 - -
Trade payables 159.2 159.2 159.2 159.2 - -
Other short term debt 87.6 87.6 87.6 87.6 - -
Total financial liabilities 1,404.5 1,404.5 1,584.4 455.3 1,092.5 36.6
Derivative financial instruments:
Measured at fair value through the income statement 8.9 8.9 8.9 4.0 4.9 -
8.9 8.9 8.9 4.0 4.9 -
Total financial assets 1,413.4 1,413.4 1,593.3 459.3 1,097.4 36.6
80 Faerch Corporate Annual Report 2025
The sensitivity analysis below shows the impact on net profit of a change of 10% in the EUR versus GBP, which is
the main currency to which the Group was exposed on 31 December 2025 adjusted for hedge accounting.
The sensitivity analysis reflects the transaction and translation risk, and it assumes that the exchange rates are
changed on 31 December 2025, and that all other variables remain constant. A similar negative change in exchange
rates would have a similar opposite effect on profit / (loss) before tax and equity.
Interest rate risk
Interest rate risk concerns the interest-bearing assets and liabilities of the Group. The interest-bearing financial
assets consist primarily of cash in financial institutions, and the interest-bearing liabilities mainly consist of bank
and mortgage debt, as set out in note 3.2. The main funding currencies of the Group are DKK, EUR and GBP.
In accordance with the Treasury Policy, the Group targets to have a minimum of 50% gross debt at fixed interest
rate throughout the remaining tenor of drawn debt and based on the scheduled repayment profile. In addition,
the Group targets to have a minimum of 75% gross debt at fixed rate for the next 12 months period.
As of 31 December 2025, 83% of Faerch Group’s loans were hedged to a fixed rate until the end of 2025, 55% were
hedged to a fixed rate until the end of 2026 and 2027, and 77% of loans were hedged to a fixed rate until the end
of 2028. Hedging of the interest risk is managed by entering fixed-rate loans and interest rate swaps.
Interest rate swaps are used to hedge the risk related to changes in interest rates. On 31 December 2025, the
outstanding interest swaps had the following market value:
Financial risk management
Managing financial risks are an inherent part of the Group’s operating activities. We are exposed to financial
risks that impact the Group’s profit such as developments in currencies, interest rates and certain types
of commodities. The global financial markets are volatile and thus, it is critical for the Group to have a well
implemented financial risk management approach to mitigate short-term market volatilities.
The Group’s comprehensive financial risk management strategy builds on a thorough understanding of the
interaction between the Group’s operating activities and the financial risks.
The Treasury Policy is approved by the Board of Directors, and it sets the limits for the various financial risks and
the derivatives used to hedge the risks. The Treasury Policy is adjusted on an ongoing basis and discussed in the
Audit Committee to adapt to the market situation and states risk limits for each type of financial risk, permitted
financial instruments and counterparties. The Treasury Policy was approved in December 2025.
Currency risk
Currency risk arises due to imbalances between income and costs in each individual currency and due to
imbalance between assets and liabilities. Hedging of currency risk is carried out in currencies, where the Group
has a material exposure. Materiality is defined as net exposure per currency exceeding equivalent of EUR 3 million
per quarter. The hedging is managed by entering derivatives such as forward contracts, currency options and
swaps. Loans and deposits in foreign currencies are also utilised as hedging. Hedge effectiveness is assessed on
a regular basis.
The Group hedges material currency exposure using the following descending hedging ladder methodology:
Exposure horizon Hedge ratio range
Up to 3 month: 70-90%
4 to 6 month: 60-80%
7 to 9 month: 50-70%
10 to 12 month: 40-60%
Forward contracts are continually used for this hedging and for commercial and financial transactions.
Besides the foreign exchange rate risk relating to current transactions, the Group’s equity is affected by foreign
exchange rate risks relating to the translation of the Group’s foreign subsidiaries from local currencies to EUR.
This exchange risk has not been hedged. In addition, the currency exposure arising from debt in other currency
than EUR is not hedged. The group has debt in EUR (82,5%), GBP (14,6%), DKK (2.9%).
Note 3.3 // Financial risks and instruments
Fair value
adjustments
recognised
in other
comprehensive
income
Carrying
amount
Contract
value
EURm
Forward exchange contracts - GBP
2025 22.8 0.1 0.7
2024 25.7 -0.7 -0.8
Equity
Profit /
(loss)
before taxEquity
Profit /
(loss)
before tax
Change in
exchange
rate
EURm
Exchange rate analysis on assets and liabilities
GPB 10.0% 4.0 -14.9 4.5 -14.5
20242025
81Faerch Corporate Annual Report 2025
Liquidity risk
Liquidity risk results from the Groups inability to cover its financial liabilities with cash (please refer to note 3.2).
The financial reserve is continually assessed and managed by the treasury department. It is ensured, that the
Group at all times has sufficient and flexible financial resources at its disposal to ensure continuous operations
and honour obligations when due. The treasury department manages its short-term liability risks through cash
pool arrangements in various currencies and by having short-term overdraft facilities in place with various
financial institutions. Long-term liquidity risk is managed through committed financial facilities.
Leverage covenants
The Groups loan portfolio is subject to financial covenants that are common and expected for a company the size
of the group. The Group has complied with this covenant in 2025 and expect to be compliant with this in 2026.
Note 3.3 // Financial risks and instruments (continued)
The sensitivity analysis below has been determined based on the exposure to interest rate for financial
instruments at the end of the reporting period. For floating rate liabilities, the analysis is prepared assuming that
the amount of the outstanding liability at the end of the reporting period was outstanding for the entire year.
An increase of 1 percentage in the average interest rate of the Group’s net bearing-debt would have a negative
effect on profit / (loss) before tax of EUR 1.9m (2024: 2.0m) and a positive effect on equity of EUR 10.5m (2024:
17.5m). A decrease of 1 percentage in the average interest of the Group’s net bearing debt would have a positive
effect on profit / (loss) before tax of EUR 1.9m (2024: EUR 2.0m) and a negative effect on equity of EUR 10.8m
(2024: EUR 18.1m).
Credit risk
The Group’s balance sheet items that are subject to credit risk are primarily trade receivable and bank deposits.
The Group is also exposed to commercial credit risks, which arise from customers not paying their receivables.
However, no customers exceed 10% of the Group’s net sales neither in 2025 nor last year.
Moreover, the credit risk related to trade receivables is managed by continuous risk assessment and credit
evaluation of major customers. Credit risk on counterparties other than banks are minimised to the extent
possible using credit insurance and guarantees. Historically, the Group has only had limited losses on bad debts.
On 31 December 2025, 88.9% (2024: 86.9%) of the trade receivables have been credit insured.
Funds are placed with financial institutions with high credit ratings. Derivatives, including foreign exchange forward
contracts and interest rate swaps, are only entered into with such institutions. Therefore, it is deemed that the
credit risk related to funds is of no significance to the annual report.
Fair value
adjustments
recognised
in other
comprehensive
income
Carrying
amount
Contract
value
EURm
Interest rate swaps
2025 850.0 -4.3 -9.7
2024 850.0 -1.9 -9.7
Note 3.4 // Other short term debt
EURm 2025 2024
Wage-related payables and other charges 34.0 34.3
VAT and other indirect taxes 5.4 5.5
Customer discounts and rebates 14.4 11.3
Other current liabilities 37.3 36.6
91.0 87.6
82 Faerch Corporate Annual Report 2025
Note 3.5 // Provisions
Note 3.6 // Share capital
ACCOUNTING POLICIES
Dividends
No dividend payments were made during 2025 and the board of directors have not distributed any dividends in
2026 and is not expecting to distribute any dividends up until the date of the financial statements.
Reserve for currency translation
The reserve for exchange adjustments consists of exchange rate differences that occur when translating the foreign
subsidiaries financial statements from their functional currency into the Faerch Group’s presentation currency.
Reserve for hedge accounting
Reserve for cash flow hedges comprises accumulated changes in fair value of derivative financial instruments,
which meets the conditions for hedging of future cash flows, where the hedged position has not yet been realised.
The changes in fair value are transferred to the income statement, when the hedged positions are realised.
The share capital consists of shares of DKK 1.000.000 or multiples thereof.
The shares have been divided into classes:
ACCOUNTING POLICIES
Restructuring includes provisions for decided and publicly announced restructurings. Legal disputes, etc. include,
among other things, uncertain indirect and corporate income-tax positions.
Other includes provisions for various contractual obligations where there is uncertainty of the total amount and
timing hereoff.
The provisions are subject to considerable uncertainty.
All shares are fully paid up.
Each Class A Preference Share entitles the holder to ten votes at the general meeting. Each Class B Preference
Share entitles the holder to one vote at the general meeting.
As per the Articles of Association each share class holds the same rights to dividends and proceeds.
DKKm Number Nominal value
A-shares 13 13
B-shares 66 66
79 79
EURm 2025 2024
Share capital at 1 January 10.7 10.7
Share capital at 31 December 10.7 10.7
EURm
Provision at 1 January 2025 0.6 2.7 1.1 4.4
Provision made 19.1 0.4 1.9 21.4
Amount used -0.2 -0.4 -0.5 -1.1
Amount reversed -0.0 - -0.2 -0.2
Exchange rate adjustment 0.0 0.0 0.0 0.0
Total movements for the period 18.9 0.1 1.2 20.2
Provision at 31 December 2025 19.6 2.8 2.2 24.6
Of which:
Classified as non-current - 2.4 0.3 2.7
Classified as current 19.6 0.4 2.0 21.9
Provision at 1 January 2024 2.1 3.8 2.1 8.0
Provision made 0.7 0.4 0.7 1.8
Amount used -2.1 -0.4 -1.1 -3.7
Amount reversed -0.1 -1.1 -0.5 -1.6
Exchange rate adjustment 0.0 0.0 0.0 0.0
Total movements for the period -1.5 -1.1 -1.0 -3.6
Provision at 31 December 2024 0.6 2.7 1.1 4.4
Of which:
Classified as non-current - 2.2 0.3 2.5
Classified as current 0.6 0.5 0.8 1.9
TotalOther
Legal
disputes,
etc.
Restruc-
turing
83Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
Recognition date and considerations
Newly acquired companies are recognised in the consolidated financial statement at the date, when the group
obtains control. The purchase consideration is generally at fair value. If an agreement relation to a business
combination requires that the purchase consideration be adjusted in connection with future events of the
performance of certain obligation (contingent obligations), this portion of the purchase consideration is
recognised at fair value at the date of acquisition. Changes in estimates relating to a contingent consideration is
recognised in the income statement. Cost directly attributable to the acquisition are recognised in the income
statement as incurred. Transaction cost have been recognised as special items in the income statement.
The acquired assets, liabilities and contingent liabilities are generally measured at their fair value at the date of
acquisition.
Goodwill arises when the aggregate of the fair value of consideration transferred exceeds the fair value of the
identifiable net assets of the acquired company. Any goodwill that arises, which is not amortised, is tested
annually for impairment.
Uncertainties and estimates
For acquisitions where the group acquires control of the company in question, the purchase method is applied.
There can be uncertainty associated with the identification of assets, liabilities and contingent liabilities, and with
measuring the fair value at the time of acquisition. Significant estimates are made in the measurement of the fair
value of the consideration transferred by the group in the acquisition.
Acquisitions in 2025
No acquisitions were made during 2025.
Acquisitions in 2024
No acquisitions were made during 2024.
Note 4.1 // Business combinations
84 Faerch Corporate Annual Report 2025
Note 4.2 // Adjustment for non-cash transactions
EURm 2025 2024
Depreciation/amortization and impairment 143.9 145.7
Gain(-)/loss on disposal of tangible assets 1.1 13.2
Financial income -18.3 -8.3
Financial expenses 75.4 88.0
Other including provisions 1.3 -0.4
Total 203.4 238.2
85Faerch Corporate Annual Report 2025
Note 4.3 // Tax
ACCOUNTING POLICIES
The income tax expense or credit for the period is the tax payable on the current period’s taxable income, based
on the applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities
attributable to temporary differences and to unused tax losses.
The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at
the end of the reporting period in the countries where the company and its subsidiaries and associates operate
and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to
situations in which applicable tax regulation is subject to interpretation and considers whether it is probable that
a taxation authority will accept an uncertain tax treatment. The group measures its tax balances either based on
the most likely amount or the expected value, depending on which method provides a better prediction of the
resolution of the uncertainty.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However,
deferred tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income
tax is also not accounted for if it arises from initial recognition of an asset or liability in a transaction other than
a business combination that, at the time of the transaction, affects neither accounting nor taxable profit or loss.
Deferred income tax is determined using tax rates (and laws) that have been enacted or substantively enacted by
the end of the reporting period and are expected to apply when the related deferred income tax asset is realised
or the deferred income tax liability is settled.
Deferred tax assets are recognised only if it is probable that future taxable amounts will be available to utilise
those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and
tax bases of investments in foreign operations where the company is able to control the timing of the reversal of
the temporary differences and it is probable that the differences will not reverse in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current
tax assets and liabilities and where the deferred tax balances relate to the same taxation authority.
Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset
and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Current and deferred tax is recognised in profit or loss, except to the extent that it relates to items recognised in
other comprehensive income or directly in equity. In this case, the tax is also recognised in other comprehensive
income or directly in equity, respectively.
EURm 2025 2024
Current tax -7.8 -9.0
Adjustment to current tax concerning previous years -1.0 0.7
Change in deferred tax 18.8 11.8
Adjustment to deferred tax concerning previous years 15.6 4.8
Total 25.6 8.2
Reconcilation of effective tax rate in the income statement
EURm ETR in % 2025 ETR in % 2024
Profit/(loss) before tax - -68.4 - -75.3
Calculated 22% on profit before tax 22.0% 15.0 22.0% 16.6
Adjustment of tax to local tax rate
compared with group tax rate of 22% 0.5% 0.3 1.5% 1.2
Non-taxable income and non-deductible expenses
-2.7% -1.8 -9.6% -7.3
Impact of changes in the tax rate 0.0% - 0.0% 0.0
Impact of tax losses not recognised
to be carried forward 0.0% - 3.1% -2.4
Impact of interest restriction (forwardable) -1.4% -1.0 -9.8% -7.4
Reassesment of recoverability of deferred tax assets
19.4% 13.3 - -
Adjustment concerning previous years 1.9% 1.3 7.3% 5.5
Utilized not previously capitalized deferred tax assets
1.8% 1.2 1.8% 1.3
Other -4.0% -2.8 0.9% 0.7
Total 37.4% 25.6 10.9% 8.2
Tax on profit / (loss) for the year (income statement)
25.6 8.2
Tax on fair value adjustment of hedging instruments
(other comprehensive income)
0.4 2.3
Tax on foreign exchange adjustment
(other comprehensive income)
0.4 -1.5
Deferred tax recognised in
(other comprehensive income)
0.5 0.2
Total taxes 26.9 9.2
Tax on profit for the year
86 Faerch Corporate Annual Report 2025
GLOBAL MINIMUM TAXATION (OECD PILLAR TWO)
Denmark has implemented Global Minimum Tax rules from 1 January 2024. This means that A.P. Moller Holding and
its portfolio companies income is subject to the minimum tax rules, for all jurisdictions via Danish implementation
for the financial year 2024. It is expected that many jurisdictions will implement similar legislation. Because
the Danish implementation covers the A.P. Moller Holding and its portfolio companies global activities, it is not
expected that other national implementations will have a significant additional impact to the global tax payments
of the Group. It may however have an impact on where potential additional taxes will be paid.
The main impact from the implementation of the Global Minimum Taxation rules is expected to be related to the
Danish tonnage taxation rules. The Global Minimum Taxation rules do exempt international shipping income from
the GloBE income; however, the definition of shipping income is different from the definition in the Danish tonnage
taxation rules. The difference in definitions between the rules increases the risk of exposure to a potential top-up tax.
The actual amount subject to a top-up taxation, is not yet concluded due to the new classification of shipping
income and the uncertainty related to forecasts that predict which countries are so-called safe harbours. Further
guidance on the application of the shipping income provision is awaiting further guidelines from the OECD
Secretariat. A potential top-up tax caused by the share of income will depend on the tonnage based effective
tax rate, which due to the design of the tonnage taxation fluctuates depending on the yearly results and will in
addition be calculated on consolidated basis on a jurisdictional level, in accordance with the Global Minimum
Taxation rules.
Based on preliminary assessments, which are based on available data and forecasts, it is not expected that the
Global Minimum Taxation rules, will have a material impact on the overall tax payment on A.P. Moller Holding
consolidated level.
The group has applied the temporary exception from the accounting requirements for deferred taxes in IAS 12.
Accordingly, the Group neither recognizes nor discloses information about deferred tax assets and liabilities
related to Global Minimum Taxation income taxes.
The group is continuing to assess the impact of the Global Minimum Taxation income taxes legislation on its
future financial performance.
Note 4.3 // Tax (continued)
Deferred tax
EURm 2025 2024
Deferred tax, net at 1 January -127.3 -145.1
Exchange rate adjustments -0.3 0.0
Adjustments concerning previous years 15.6 4.8
Impact from sale of subsidiaries - 1.0
Deferred tax recognised in the income statement 18.9 11.8
Deferred tax recognised in other comprehensive income 0.5 0.2
Deferred tax, net at 31 December -92.6 -127.3
Classified as:
EURm 2025 2024
Deferred tax assets 60.9 34.4
Deferred tax liabilities -153.5 -161.7
Total -92.6 -127.3
87Faerch Corporate Annual Report 2025
Deferred tax Deferred tax Deferred tax Deferred tax
EURm assets liabilities net
2025
Intangible assets 0.6 -113.3 -112.7
Property plant and equipment 3.2 -42.6 -39.4
ROU assets 0.0 -3.2 -3.2
Liabilities (ROU assets) 3.5 -0.0 3.5
Inventories 0.6 -0.3 0.3
Foreign exchange hedging - -0.0 -0.0
Tax losses to be carried forward 45.1 - 45.1
Other 14.3 -0.6 13.7
Temporary differences 67.3 -159.9 -92.6
Offset -6.4 6.4 -
Total 60.9 -153.5 -92.6
Deferred tax Deferred tax Deferred tax Deferred tax
EURm assets liabilities net
2024
Intangible assets 0.0 -122.2 -122.2
Property plant and equipment 2.9 -44.3 -41.4
ROU assets 0.0 -4.8 -4.8
Lease liabilities 5.3 -0.0 5.3
Inventories 0.6 -0.3 0.3
Foreign exchange hedging 0.2 - 0.2
Tax losses to be carried forward 22.2 - 22.2
Other 14.7 -1.5 13.2
Temporary differences 45.9 -173.2 -127.3
Offset -11.5 11.5 -
Total 34.4 -161.7 -127.3
Unrecognised deferred tax assets split by country
EURm 2025 2024
Netherlands 0.4 13.2
Italy 1.0 1.5
France 20.2 20.2
Finland 4.5 3.6
Spain 3.7 3.5
USA 4.6 4.7
Germany 15.1 28.1
UK 10.4 8.4
Total 60.0 83.2
None of the unrecognised deferred tax assets have time limitations.
Note 4.3 // Tax (continued)
88 Faerch Corporate Annual Report 2025
Related parties exercising control
Faerch A/S is subject to controlling influence by Faerch Group Holding A/S which holds 100% of the share capital.
Faerch A/S has registered the following shareholders who hold 5% or more of the share capital:
- Faerch Group Holding A/S, Rasmus Færchs Vej 1, 7500 Holstebro, Denmark
During 2025 there were transactions with the controlling shareholder Faerch Group Holding A/S. Faerch Group
Holding A/S charged management fees of 3.1m EUR (2024: 2.3m EUR) to Faerch A/S during 2025.
Related parties exercising significant influence
Related parties in Faerch A/S with significant influence include the Group’s Executive Management and Board
of Directors and their close relatives. Related parties also comprise companies in which these individuals have
material interests.
Other related parties
The Board of Directors and the Executive Management of A.P. Møller og Hustru Chastine Mc-Kinney Møllers Fond
til almene Formaal, A.P. Møller Holding A/S, APMH Invest A/S, and their close relatives including undertakings under
their significant influence are also considered related parties. This includes subsidiaries and affiliates to A.P. Møller
Holding A/S, including A.P. Møller - Mærsk A/S and its subsidiaries and affiliates and Danske Bank A/S.
Transactions with Key Management Personnel
There have been no transactions with the board of Directors or Executive Management besides remuneration. For
information about the salaries of the Board of Directors and Executive Management, please refer to Remuneration
of Group Management in note 1.2a.
A.P. Moller Holding Group has introduced certain co-investment programmes for Faerch Group management and
key employees based on fair market value. Due to service conditions, among other things, the programmes are
defined as share-based payment programmes. The company has no obligation to settle the transactions with its
employees, and accordingly, the programmes have no impact on the annual report.
Terms and conditions
All transactions were made on normal commercial terms and at market rates.
Note 4.4 // Fees to auditors appointed
by the board of directors
Note 4.5 // Related parties
EURm 2025 2024
Statutory audit of financial statements 1.4 1.4
Other assurance engagements 0.3 0.2
Tax advisory services 0.5 0.3
Other services 0.3 0.3
2.4 2.2
EURm
Income statement
Costs 3.1 2.3 - -
Financial income - - 14.9 -
Financial expenses 0.1 0.2 13.0 1.1
Assets
Derivatives - - - 1.0
Cash and bank balances - - 19.6 151.6
Liabilities
Borrowings - - -179.1 -205.7
Derivatives - - -4.0 -1.8
2024202520242025
Associates
Parties with significant
influence
89Faerch Corporate Annual Report 2025
Subsequent to December 31, 2025 there have been no further events with any significant effect on
the financial statements beyond what has been recognized and disclosed in the Annual report.
Note 4.6 // Contractual commitments
and contingent liabilities
Note 4.7 // Events after the balance sheet date
The Group has concluded contracts with a number of suppliers. The contracts do not entail any obligations
other than those normally involved in trading relationships.
Certain subsidiaries in the group are guarantors as principal obligor for the parent company’s external banking
facility of EUR 1,250m of which EUR 918m are drawn as of 31 December 2025. The net assets of the guarantor’s
amount to EUR 151.8m as of 31 December 2025.
The Group is not involved in any lawsuits which are expected to have a material effect
on the financial position of the Company or the Group.
Through participation in a joint taxation scheme with A.P. Møller Holding A/S, the Danish companies are jointly and
severally liable for taxes payable in Denmark.
Through participation in a joint taxation scheme with SWISSLAB HOLDCO, S.A, the spanish Companies are jointly
and severally liable for taxes payable in Spain.
The Group has entered into a number of solar and wind energy contracts, for agreed upon terms of between 10
and 12 years. The contracts’ terms expose the group to the variability of sunlight and wind speed respectively,
which could create a potential for over-, or under-supply due to fluctuating weather patterns. In periods of
over-supply, the Group will have to sell unused electricity as market design does not offer any alternatives and
the group has no practical ability to store electricity. Conversely, in periods of under-supply, the Group will have
to procure its required energy through other sources, which could result in fluctuating impacts to the Group’s
electricity costs. Overall, during the year, the Group remains a net purchaser of electricity under all its contracts.
As of 31 December 2025, for some of these contracts, the agreed upon fixed purchase price of the electricity
under the contract is higher than the current forward-looking market prices, however the impact of these are
not currently expected to be material to the financial statements. This conclusion is continually re-assessed by
management as market conditions change over time.
The group has committed future cash outflows from buying electricity under these contracts as follows:
EURm 2025 2024
Carrying amount of land and buildings pledged
as security for bank loans and mortgages 26.6 27.5
Carrying amount of plant and machinery pledged
as security for bank loans and mortgages 17.5 19.9
Leased assets pledged as security for leasing commitments. 52.9 46.9
Bank guarantee commitments - -
Commitments in relation to agreements on the purchase of intangible assets 0.8 -
Commitments in relation to agreements on the purchase of property,
plant and equipment 8.1 13.2
Total commitment in relation to agreement 8.9 13.2
EURm 2025 2024
Less than 1 year 11.0 10.8
2 - 5 years 46.9 46.2
More than 5 years 46.5 58.8
90 Faerch Corporate Annual Report 2025
Further amendments to IFRS 9 and IFRS 7 clarify aspects of classification, measurement and derecognition of
financial instruments and introduce additional disclosure requirements. The amendments are effective from 1
January 2026 and are not expected to have a material impact.
IFRS 18, ‘Presentation and Disclosure in Financial Statements’ introduces new presentation requirements which aims
to increase comparability of the financial performance of similar entities, especially related to how operating profit
or loss is defined. The new disclosure requirements for ‘management-defined performance measures’ will enhance
transparency. IFRS 18 is effective from 1 January 2027 and has not yet been adopted by the group. The Group is in
the process of determining the impact of applying IFRS 18.
Accounting policies
Accounting policies related to specific line items are described in connection with the notes to which they relate.
The description of accounting policies in the notes form part of the overall description of accounting policies.
Accounting policies not directly related to a specific line item covered by a note are presented below.
Basis for consolidation
The consolidated financial statement comprise the financial statement of the parent company Faerch A/S
and subsidiaries controlled by the parent company. Subsidiaries controlled by the parent company are fully
consolidated from the date on which the parent company obtains control, and continue to be consolidated until
the date that such control ceases. Control is obtained when the parent company directly or indirectly owns
or controls more than 50% of the voting rights in the subsidiary or has control in some other way. The financial
statements of the controlled subsidiaries are prepared for the same reporting period as the parent company, using
consistent accounting policies.
Inter-company transactions, balances and unrealised gains on transactions between group companies are
eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the
transferred asset. Accounting policies of subsidiaries have been changed where necessary to ensure consistency
with the policies adopted by the group.
Upon loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling
interests and the other components of equity related to the subsidiary. Any resulting gain or loss is recognised
in the income statement. Any interest retained in the former subsidiary is measured at fair value at the date that
control is lost.
The Annual Report for the period 1 January - 31 December 2025 comprises the consolidated financial statement
of the parent company Faerch A/S and subsidiaries controlled by the parent company (the Group) as well as
separate financial statements for the parent company, Faerch A/S.
Statement of compliance
The consolidated financial statement have been prepared in accordance with IFRS Accounting Standards (IFRS)
as adopted by the EU and additional Danish disclosure requirements.
The Annual Report is the 9th Annual Report presented in accordance with IFRS.
The Annual Report for 2025 was discussed and approved by the Executive Management and the Board of
Directors (the Board) on 26 February 2026 and will be presented for approval at the subsequent Annual General
Meeting on 9 March 2026.
Basis for measurement
The consolidated financial statement are presented in EURO (EUR), which reflects that the main part of the Group’s
revenue is generated outside of Denmark and that EUR is the prevailing functional currency within the Group.
Consequently, the Annual Report is presented in EUR, rounded to the nearest millon unless otherwise indicated.
The consolidated financial statements have been prepared on the historical cost basis except for financial
instruments which are measured at fair value.
Adoption of new or amended IFRSs
Management has assessed the impact of new or amended and revised accounting standards and interpretations
(IFRSs) issued by the (IASB), and IFRSs endorsed by the European Union.
Amendments to IFRS 9 and IFRS 7 in relation to contracts referencing nature-dependent electricity, which is
effective from 1 January 2026, have been early adopted for the Group’s 31 December 2025 financial year.
The amendments clarify the application of the ‘own-use’ criteria to nature-dependent electricity contracts
and permit hedge accounting if these contracts are used as hedging instruments. Since adoption, the Group
will continue to apply the own-use exception for its accounting purposes and this early adoption has not had
a material impact to the Group’s financial statements.
Certain other new accounting standards, amendments to accounting standards and interpretations have been
published that are not mandatory for 31 December 2025 reporting periods and no other accounting standards
and interpretations have been early adopted by the group. These other standards, amendments or interpretations
are not expected to have a material impact on the entity in the current or future reporting periods and on
foreseeable future transactions.
Note 4.8 // Material accounting policy information
91Faerch Corporate Annual Report 2025
Translation policies
Functional currency and presentation currency
Assets, liabilities and transactions of each of the reporting entities of the Group are measured in the currency
of the primary economic environment in which the entity operates (the functional currency). Transactions in
currencies other than the functional currency are transactions in foreign currencies. The functional currency of
the parent company is Danish kroner (DKK) and the presentation currency of the group is EURO (EUR).
Translation of transactions and amounts
Transactions in foreign currencies are initially translated into the functional currency at the exchange rates at the
dates of transaction. Exchange adjustments arising due to differences between the transaction date rates and the
rates at the date of payment are recognised as financial income or financial expenses in the income statement.
Receivables, payables and other monetary items in foreign currencies not settled at the balance sheet date are
translated at the exchange rates at the balance sheet date. Exchange adjustments arising due to differences
between the rates at the balance sheet date and the transaction date rates are recognised as financial income or
financial expenses in the income statement.
Translation of Group entities
On recognition in the consolidated financial statements of the foreign entities with a functional currency that
differs from the presentation currency of the Group, income statements are translated at transaction date rates,
and balance sheet items are translated at the exchange rates at the balance sheet date. The transaction date
rates are based on average rates for the individual months to the extent that this does not materially distort the
presentation of the underlying transaction. Exchange adjustments arising on the translation of the opening equity
of foreign entities at exchange rates at the balance sheet date and on the translation of income statements
from transaction date rates to exchange rates at the balance sheet date are recognised in other comprehensive
income.
Cash flow statement
The cash flow statement shows the Group’s cash flows for the year broken down by operating, investing and
financing activities, changes for the year in cash and cash equivalents as well as the Group’s cash and cash
equivalents at the beginning and end of the year. The cash flow effect of acquisitions and disposals of companies
is shown separately under cash flows from investing activities.
Cash flow relating to acquired companies are recognized in the cash flow statement at the acquisition date, and
cash flows relating to divested companies are included until the disposal date.
Cash flow from operating activities
Cash flow from operating activities are calculated according to the indirect method on the basis of profit before
tax and adjusted for non-cash operating items, changes in working capital, paid financial items, received dividend
and paid corporation taxes.
Cash flows from investing activities
Cash flows from investing activities comprise payment in connection with the acquisition and disposal of
companies and activities, intangible assets and property, plant and equipment.
Cash flows from financing activities
Cash flows from financing activities comprise changes in the size or composition of the share capital, the raising
and repayment of long-term bank debt and payment of dividends to shareholders.
Cash and cash equivalents
Cash and cash equivalents comprise bank account deposits and cash balances and the portion of the liability
“borrowings” which constitutes overdraft facilities.
Note 4.8 // Material accounting policy information (continued)
92 Faerch Corporate Annual Report 2025
Name of entity Ownership share Country
Faerch Portage, Inc. 100% USA
Faerch Ravensburg GmbH
100% Germany
Faerch Standdaarbuiten B.V. 100% Netherlands
Faerch Turkey AMB. SAN. A.S. 100% Turkey
Faerch UK Ltd. 100% United Kingdom
Faerch UKco I Ltd. (dormant) 100% United Kingdom
Faerch UKco II Ltd. (dormant) 100% United Kingdom
Faerch UKco III Ltd. (dormant) 100% United Kingdom
Faerch US, Inc. 100% USA
FP1988UK Ltd. 100% United Kingdom
FPH 2017 Ltd. 100% United Kingdom
Inmobiliaria Frank Lloyd S.L. 100% Spain
Paccor France SAS 100% France
Paccor Iberia S.A. 100% Spain
Paccor Ukraine LLC 100% Ukraine
Investment in group companies comprise the following at 31 December 2025
The consolidated financial statements have been prepared to given a true and fair
view of the Group’s assets, liabilities and financial position at 31 December 2024.
The Executive Management makes various accounting estimates and judgments
which affect the consolidated financial statements.
The judgements, estimates and assumptions made are based on historical
experience and other factors that the Executive Management considers to be
reasonable under the given circumstances. The actual outcome can differ from the
estimates.
The estimates made and the underlying assumptions are reviewed on a continuous
basis. Changes made to the accounting estimates are recognised in the financial
period, where the change takes place and future financial periods, if the change
affects both the period, where the change takes place, and the following financial
periods.
The critical accounting estimates and judgements are described under the
sections to which they relate.
Note 4.9 // Significant accounting
estimates and judgements
Note 4.10 // Group structure
Accounting estimate/judgement Note
Intangible assets 2.1
Impairment tests 2.2
Tangible assets 2.3
Inventories 2.4
Trade receivables 2.5
Name of entity Ownership share Country
Cirrec Germany GmbH 100% Germany
Cirrec Netherlands B.V. 100% Netherlands
DSF Extrusion B.V. 100% Netherlands
Faerch Annecy SAS 100% France
Faerch Belgium NV 100% Belgium
Faerch Buñol S.L.U. 100% Spain
Faerch Bydgoszcz Sp. z o.o. 100% Poland
Faerch Deutschland GmbH 100% Germany
Faerch Durham Ltd. 100% United Kingdom
Faerch Excelsior, Inc. 100% USA
Faerch Finland Oy 100% Finland
Faerch France SAS 100% France
Faerch Group Germany GmbH 100% Germany
Faerch Group US, Inc.
100% USA
Faerch Hungary Kft 100% Hungary
Faerch Italy Holding S.r.l. 100% Italy
Faerch Italy S.r.l. 100% Italy
Faerch Liberec s.r.o. 100% Czech Republic
Faerch Lithuania UAB 100% Lietuva
Faerch London Ltd. 100% United Kingdom
Faerch Lorient SAS 100% France
Faerch Murowana Goślina Sp. z o.o. 100% Poland
Faerch Netherlands Holding B.V. 100% Netherlands
Faerch Norway AS 100% Norway
Faerch Polska Sp.z o.o. 100% Poland
Faerch Poole Ltd. 100% United Kingdom
93Faerch Corporate Annual Report 2025
Note 4.10 // Group structure (continued)
94 Faerch Corporate Annual Report 2025
95Faerch Corporate Annual Report 2025
Consolidated
sustainability
statements
96 Faerch Corporate Annual Report 2025
Reporting period
Faerch A/S sustainability performance data reporting covers the period from 1 January to 31 December 2025.
Principles of consolidation
The sustainability performance data includes consolidated data from the parent company, Faerch A/S, and entities
controlled by Faerch. Data is collected per legal entity per activity, and the figures are consolidated line-by-line.
The disclosures of energy consumption, greenhouse gas (GHG) emissions, and water consumption cover
operations. The disclosure of waste, circularity inflow and circularity outflow covers production sites, where
recycled PET output from our Recycling Division only applies to our recycling plant Cirrec in the Netherlands.
The consolidation of the GHG emission data is based on the operational consolidation approach and stated in
accordance with the GHG Protocol. Consolidation of GHG emission data using the operational control approach
implies that everything where Faerch A/S or one of its subsidiaries has complete authority to create and apply
operating policies is included.
The social-related disclosures covers Faerch A/S and entities controlled by Faerch A/S.
Reporting data accuracy
Faerch aims to disclose data as accurately as possible. We have calculated our emissions in line with the
standards in the GHG Protocol, by using the most accurate calculation method our available data has allowed.
The vast majority is based on activity data, but in some cases, we have applied the spend-based method, and
due to data limitations, we have used estimates in our reporting. Due to the fast closing of our books, we have not
been able to collect actual electricity, natural gas and water consumption invoices for some of our entities for
December – in these cases consumption is estimated based on the average consumption for the same period in
the previous year in the same location. Despite the uncertainty associated with estimates and the spend-based
method, we firmly believe that our report appropriately reflects the GHG emissions of our activities and serves
the needs of decision-making users. A minor subsidiary was divested in 2025. Its sustainability data is included
for
the period until it remained under our operational control. The impact on year-on-year comparability is not material.
Changes in reporting or reporting errors
Materiality thresholds have been defined for when to restate quantitative information together with procedures
for how a restatement should be performed, including how to handle errors from previous periods. Any restated
data will be clearly disclosed.
Phase-in options and omitted disclosures
Although we are not yet required to report under CSRD, we have voluntarily tried to align our sustainability
reporting
with the ESRS standards to ensure transparency and systematically prepare for future mandatory reporting.
As this is our first year of voluntary ESRS adoption, our disclosures are not yet fully comprehensive. We are applying
phase-in provisions to progressively build our data collection capabilities and reporting infrastructure.
While no options to omit information of a sensitive character have been utilised, the option to apply the
transitional provision has been used, for specific disclosure requirements, as below:
GOV-3
Statement on due diligence
We have implemented key elements of a sustainability due diligence process, through a comprehensive due
diligence framework covering the full value chain, which is still under development. Current due diligence
practices reflected in this sustainability statement include:
Note 5.0 // Basis of preparation
BP-1
Omitted disclosure requirement Planned implementation
E1-2
– Identication of climate-related
risks and scenario analysis
Subject to phased implementation per ESRS requirements.
Planned for future reporting periods.
E1-3
– Resilience in relation to
climate change
Subject to phased implementation per ESRS requirements.
Planned for future reporting periods.
E1-10
– Internal carbon pricing
We do not currently apply an internal carbon pricing (ICP)
scheme. We did not undertake, nance, or purchase any
carbon credit projects do far. We will evaluate introducing
an ICP as part of our future decarbonisation strategy.
E1-11
–
Anticipated nancial effects from material
physical and transition risks and
potential climate-related opportunities
Subject to phased implementation per ESRS requirements.
Planned for future reporting periods.
S1-14
– Work-life balance metrics
Subject to phased implementation per ESRS requirements.
Data on the percentage of employees entitled to family-
related leave is omitted for this reporting period. Currently
managed at the local level per national regulations, this data
cannot be aggregated globally without undue cost and/or effort.
S1-15
– Remuneration metrics
The analysis of the gender pay gap and remuneration
inequality is planned for 2026.
Due diligence element Current approach Reference
Assessment of impacts,
risks and opportunities
Double materiality assessment conducted in
2024/2025
IRO-1, IRO-2
Policies Policies for material topics GDR-P across topics
Actions Mitigation and prevention measures GDR-A, topic-specific
DRs
Monitoring Tracking through KPIs and targets GDR-M, GDR-T
Communication Annual sustainability reporting
Stakeholder engagement
Engagement with employees and key stakeholders
SBM-2, IRO-1
97Faerch Corporate Annual Report 2025
In 2025, the total volume of waste generated increased compared to the previous year by 14.2%. This increase
in waste is composed of a 3.1% rise from production company sites and a 27.1% increase from the recycling
company due to higher processing volumes. The increase in residual waste is due to the removal of non-PET
materials and contaminants from incoming post-consumer bales. This does not reflect a rise in actual waste
generation but results from processing more recycled material.
This year, 91.5% of waste was sent for recovery, while 8.5% was disposed of. The main types of waste generated
included plastics, oil and liquid emulsions, paper, wood, metal, and mixed waste. Hazardous waste accounted for
20.3% of the total, primarily consisting of oils and absorbents.
ACCOUNTING POLICIES
Waste is measured as the total weight of all waste (excluding wastewater) disposed of at production sites based
on weight receipts.
Waste-related activities are classified as either Recovery (R) or Disposal (D) according to the EU Waste
Framework Directive 2008/98. Recovery (R) refers to any operation where the principal outcome is that
waste serves a useful purpose by replacing other materials which would otherwise be used, or where waste is
prepared to fulfil such a function within the plant or the wider economy. Disposal (D) covers any operation that
is not classified as recovery, even if it results incidentally in the reclamation of substances or energy. The waste
operations are further categorised as follows: Recycling (R): Processing waste materials to create new products
or materials (e.g., organic substances, metals, plastics). Other Recovery (R): Recovery operations other than
recycling, such as energy recovery (incineration with energy use), solvent reclamation, oil re-refining, and storage
pending recovery. Landfill (D): Disposal by depositing waste onto or into the land, including engineered landfills
and mines. Incineration (D): Thermal treatment of waste to reduce volume/hazard, without energy recovery.
Other Disposal (D): Other methods such as land treatment (spreading waste on soil without benefit), biological or
physico-chemical treatment, blending, mixing, and storage pending disposal.
In tonnes 2025 2024
Recovery, incl.: 5,730 26,888 32,619 91.5% 6,401 22,722 29,124 93.3%
Recycling 299 4,718 5,017 14.1% 199 6,415 6,614 18.5%
Other recovery 5,431 22,170 27,602 77.4% 6,203 16,307 22,510 63.1%
Disposal, incl.: 1,522 1,522 3,044 8.5% 156 1,943 2,100 6.7%
Incineration
1,436 22 1,458 4.1% 83 636 720 2.0%
Landfill 36 1,331 1,367 3.8% 23 1,009 1,032 2.9%
Other disposal 50 169 219 0.6% 50 299 348 1.0%
Total waste from production:
7,253 28,410 35,663 100.0% 6,557 24,666 31,223 100.0%
Non-
hazardous
Non-
hazardousTotal Total
Share of
Total (%)
Share of
Total (%)
Hazardous Hazardous
The share of renewable energy increased to 22.9% (from 6.7% in the prior year), driven primarily by three Power
Purchase Agreements (PPAs) that came into effect in 2025.
ACCOUNTING POLICIES
Total energy consumption covers final energy use within Faerch own operations. For data collection, see
descriptions under Scope 1 and Scope 2 in note 6.4. For Scope 1.1, actual fuel consumption data were converted
into MWh using standard conversion factors.
For Scope 1.2, where actual fuel consumption data were available, these were used directly. Where only distance
travelled data were available, fuel consumption was estimated using average consumption factors (from the European
Commission database). For Scope 2, total purchased electricity, steam and heating were converted into MWh based on
final energy consumption. Fossil sources cover the Group’s consumption of diesel, petrol, heating fuel and natural gas and
the share of fossil sources in the energy mix in the market-based environmental declarations for electricity and heating.
Renewable energy includes exclusively electricity purchased under Power Purchase Agreements (PPAs). All other energy
consumption is classified as non-renewable. The renewable share is determined using a market-based approach.
In 2025, the methodology for calculating Energy consumption for operations (MWh), was updated to align
with the requirements of the ESRS E1-7. As a result, comparative data for 2024 have been restated to ensure
consistency and comparability. The restatement reflects methodological changes only and does not result from
the correction of errors.
GOV-4
Internal controls over ESG reporting
To ensure high-quality reporting, the Group is also implementing internal controls over ESG data. This framework
is governed by a central function that oversees:
- Standardised data collection: implementation of Group-wide accounting principles for sustainability, ensuring
consistency across all entities.
- Data integrity and accuracy: controls addressing the completeness and integrity of non-financial data.
- Assurance readiness: our internal controls will support limited external assurance, bridging the gap between
operational sustainability data and audited financial statements. For the 2025 reporting period, limited external
assurance has been obtained for selected key ESG data.
Note 5.0 // Basis of preparation
BP-1
(continued)
Note 6.1 // Energy consumption and mix
E1-7
Note 6.2 // Resource outflow
E5-5
In MWh 2025 Share of Total (%) 2024 Share of Total (%)
Energy consumption from fossil sources 444,476 77.1% 553,428 93.3%
Energy consumption from renewable sources 131,706 22.9% 40,000 6.7%
Total energy consumption: 576,182 100.0% 593,428 100.0%
98 Faerch Corporate Annual Report 2025
GHG emissions by scope 1, 2 and 3
Scope 1 GHG emissions 8,265 -1,844 -18.2%
Scope 2 GHG emissions (location-based) 143,035 -36,274 -20.2%
Scope 2 GHG emissions (market-based) 119,035 -84,474 -41.5%
Scope 3 GHG emissions 997,996 -194,577 -16.3%
3.1 Purchased goods and services 773,459 -97,104 -11.2%
3.2 Capital goods 12,200 -4,870 -28.5%
3.3 Fuel and energy related activities 44,176 -19,249 -30.3%
3.4 Upstream transportation and distribution 90,651 -34,722 -27.7%
3.5 Waste generated in operations 6,559 2,356 56.0%
3.6 Business travel 809 -245 -23.2%
3.7 Employee commuting 8,653 -4,576 -34.6%
3.8 Upstream leased assets 4,898 2,999 157.9%
3.9 Downstream transportation and distribution 12,016 208 1.8%
3.12 End-of-life treatment of sold products 44,438 -39,509 -47.1%
3.13 Downstream leased assets 136 136 -
Total GHG emissions (location-based) 1,149,297 -232,695 -16.8%
Total GHG emissions (market-based) 1,125,297 -280,894 -20.0%
GHG emission reductions vs. 2022 baseline (market-based) -280,894 -20.0%
Note 6.2 //
Resource outflow
E5-5
(continued)
Note 6.3 // Water consumption
E3-4
*
Note 6.4 // Scope 1, 2 and 3 emissions
E1-8
Direct GHG emissions (scope 1)
Scope 1 emissions comprise of direct CO2e emissions from sources that are owned or controlled by Faerch A/S.
Emissions are calculated based on the amount of direct energy used for stationary combustion from meter
readings and invoices.
For mobile combustion, emissions are based on fuel consumption, kilometre readings or, if not available, the
maximum annual kilometres in the leasing contract. The scope also includes fugitive emissions coming primarily
from recharging of cooling systems. The emission factors used are sourced mainly from DESNZ.
Indirect GHG emissions (scope 2) - location-based
Scope 2 GHG emissions (location-based) are the CO2e emissions calculated based on consumed electricity, steam and
district heating bought from a third party and using the total IEA emission factor based on location.
Production sites in Spain and Turkey are situated in regions identified as having a high risk of water scarcity, based
on assessments from the WWF Water Risk Filter.
They account for 4.6% of Faerch’s total water consumption. A significant part of the water consumption comes
from Cirrec, our mechanical recycling division, which focuses on recycling household food packaging waste into a
valuable resource.
*Not resulting from the materiality assessment
ACCOUNTING POLICIES
Water consumption is measured based on meter readings and invoices and covers both production sites and
offices. Where water invoices were unavailable or where billing periods did not align with the reporting year,
consumption was estimated using prior-year invoices. In some cases, billing periods covered non-standard
intervals, requiring cut-off adjustments.
For rented office spaces without invoices, water consumption was estimated based on the
number of people in
the office, average water consumption per person, and the number of days in the reporting year.
Ratio of own waste recovered vs. sent for disposal is calculated as the proportion of waste classified under
Recovery (R) to waste classified under Disposal (D).
Designed Recyclability Rate represents the share of Faerch’s products that are designed to be compatible
with currently widely used plastic packaging sorting and recycling systems. The calculation is based on Faerch’s
technical product knowledge and excludes multilayer plastic products and products not identifiable by near-
infrared (NIR) sorting technology. The metric is calculated as the net weight of products designed for recyclability
sold, divided by the total net weight of plastic products sold during the reporting period.
2025 2024
Water consumption for production (m
3
) 358,994 367,581
Emission
Reductions
vs. 2022
baseline
(tCO2e)
2025
(tCO2e)
% change
(2025
vs 2022
baseline)
99Faerch Corporate Annual Report 2025
Note 6.4 // Scope 1, 2 and 3 emissions
E1-8
(continued)
Note 6.4 // Scope 1, 2 and 3 emissions
E1-8
Scope 2 GHG emissions (scope 2) – market-based
Scope 2 GHG emissions (market-based) are the CO2e emissions calculated based on consumed electricity, steam and
district heating bought from a third party and using the supplier specific grid mix stated at the latest invoice using IEA
emission factors. If specific grid mix is unavailable, the total IEA emission factor is used based on location.
Scope 3 GHG emissions
Scope 3 GHG emissions are the CO2e emissions from value chain activities. Of the 15 scope 3 categories in the
GHG Protocol, 11 categories are determined as applicable to Faerch’s business model and activities. The excluded
categories are category 10: processing of sold products, category 11: use of sold products, category 14: franchises
and category 15: investment. The scope 3 GHG emissions comprise emissions related to:
3.1 Purchased goods and services
Purchased goods and services include emissions related to all purchases from external suppliers except for
investments and travel categories. Scope of purchased goods and services within the “Bill of Material” (BOM)
includes emissions related to the purchased weight from the supplier using Ecoinvent for emission factors
supplemented by DESNZ. For the purchased goods and services outside BOM (not directly related to the product
e.g. IT equipment), a spend-based approach is applied, when no weight can be obtained.
3.2 Capital goods
Capital goods include emissions related to all indirect investment spend from external suppliers, specifically
production utilities and equipment. Indirect spend is converted via the average spend-based method into CO2e
emissions using emission factors from EPA. We include the full scope 3 impact in the first year of the CAPEX
investment in line with the GHG protocol.
3.3 Fuel and energy related activities
Fuel and energy related activities include all upstream CO2e emissions of purchased fuels, electricity, steam and
district heating (beyond scope 1 and 2 emissions). The energy consumption is converted to kWh and multiplied
with DESNZ relevant Well-to-Tank (WTT) emission factor to assess CO2e emissions. The category also covers the
upstream emissions from transportation and distribution of electricity, steam and district heating using relevant
emission factors from IEA and DESNZ.
3.4 Upstream transportation and distribution
Upstream transportation and distribution includes CO2e emissions from product distribution and transportation
from tier 1 suppliers to Faerch facilities, between Faerch facilities and from Faerch facilities to customers, where
Faerch pays for the freight. Only emissions connected to transportation are calculated. CO2e emissions from
inbound transportation are based on the calculated distance from supplier addresses and the purchased weight.
Assumptions are made on inbound transportation mode.
CO2e emissions from intercompany and outbound transportation are based on the calculated distance between
locations and the sold weight. Calculations are based on actual transportation mode reported. All emission
factors, for inbound, intercompany and outbound are based on specific transportation mode type. DESNZ
emission factors have been applied.
3.5 Waste generated in operations
Waste generated in own operations include CO2e emissions associated with third-party disposal and treatment of
waste, which is reported based on waste amounts, type of waste and disposal method. In most cases EPA emission
factors are used based on type of waste and disposal method. For wastewater Ecoinvent is used.
3.6 Business travel
CO2e emissions from business travel are calculated using both, activity-based and spend-based methodologies.
Activity-based method is used for detailed activities sourced by the group travel agency, focusing on business
flights and hotel accommodation. Spend-based method is used for the remaining business travel costs, which are
sourced directly from financial system. DESNZ emission factors have been applied.
CO2e emissions from business flights are calculated based on distance between airports multiplied by emission
factors for short- and long-haul flights. For hotel stays, the emission calculations are based on the number of
nights spent in each country together with their relevant DESNZ emission factor. For the remaining travel not
covered by the above, the spend-based method is used for completeness.
3.7 Employee commuting
Employee commuting includes CO2e emissions associated with commuting by all employees except the amount
of employees having company cars, since these emissions are already reported under scope 1 emissions. The
CO2e emissions are based on the distance to work using employee addresses, and making assumptions on
transportation mode and working days while using DESNZ for emission factors.
3.8 Upstream leased assets
Upstream leased assets are reported based on operation of assets that are leased by Faerch (acting as lessee) and
not reported in scope 1 and 2. CO2e emissions have been calculated using spend-based emission factors from EPA.
3.9 Downstream transportation and distribution
Downstream transportation and distribution includes CO2e emissions that occur from transportation and
distribution of sold products in vehicles and facilities not owned or controlled by Faerch, where the customer
pays for freight. Only transportation emissions are included in the calculations, specifically from the first receiving
warehouse to customers. CO2e emissions from downstream transportation are based on the calculated distance
between locations and the sold weight. For water transportation with unknown distance, an average ship distance
has been applied. Emission factors are based on actual transportation mode type reported. DESNZ emission
factors have been applied.
100 Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
It is the weight of products (kg), where the recycled material can feed a closed-loop scheme to be used in
the same quality applications (e.g. tray-to-tray). Currently, it is only mono-PET products that are accepted as
products designed for circularity. This is taken relatively to the total weight sold by Faerch.
Note 6.7 // Share of products designed for circularity
ACCOUNTING POLICIES
It is the volume of tray recycled PET (rPET) output (%) material derived from Faerch’s Recycling Division. The
output material “tray rPET” is derived from post-consumer PET packaging collected from European kerbside
collection and closed-loop systems (ISO 14021:2016) excluding input material from the deposit system of bottles.
ACCOUNTING POLICIES
Calculated utilizing various measurement methods across multiple production sites. Direct measurements from
certain sites are used to extrapolate emissions data for the entire Group due to similar processes across. The
machine production output is determined based on the average output per hour. For thermoforming processes,
an additional factor is applied as proxy to account for regrind. It should be noted that emissions from injection
and blow molding processes are excluded from the VOC calculations due to lack of quality data at the moment.
Note 6.6 // Output from tray recycled PET
from our Recycling Division
Note 6.4 // Scope 1, 2 and 3 emissions
E1-8
(continued)
Note 6.5 // Volatile Organic Compound (VOC)
3.12 End-of-life treatment of sold products
End-of-life treatment of sold products include CO2e emissions from end-of-life treatment of our sold products
on the markets and by-products from our production which we sell to others. The amount of sold products is
based on actual sales data. It is assumed that the products are discarded in the countries, where they are sold.
The end-of-life treatment for EU27+3 countries follows the post-consumer plastic waste treatment per country
covering the vast majority of sold amounts. The end-of-life waste treatment for the remaining countries follows
the end-of-life fates for plastic waste on the corresponding regional level from the OECD database. DESNZ or EPA
are used for emission factors dependent on the disposal method for both products and by-products.
3.13 Downstream leased assets
Downstream leased assets are reported based on operation of assets that are owned by Faerch (acting as lessor)
and leased to other entities, and are not reported in scope 1 and 2. CO2e emissions have been calculated using
spend-based emission factors from EPA.
ACCOUNTING POLICIES
Total GHG Emissions – location-based
Total GHG emissions is the sum of reported scope 1, scope 2 – location-based and scope 3 emissions.
Total GHG Emissions – market-based
Total GHG emissions is the sum of reported scope 1, scope 2 – market-based and scope 3 emissions.
GHG emission reductions vs. 2022 baseline (market-based)
Calculated as the absolute difference between the total GHG emissions in tCO2e in the reporting year and the
fixed 2022 baseline year.
2025 2024
VOC emissions (tonnes) 38.2 30.3
101Faerch Corporate Annual Report 2025
Note 7.1 // Characteristics of the undertaking’s
employees
S1-15
Employee distribution by gender
Gender 2025 2024
Male 3,437 3,558
Female 1,499 1,494
Total employees 4,936 5,052
Employee turnover rate
Year Percentage
2025 15,73%
2024 14,90%
ACCOUNTING POLICIES
Total employees by gender and country the number of employees is recorded as all employees in headcount
end of the year.
Workforce composition by employment type and gender based on headcount and reflects the number
of employees by contract type at the reporting date, where permanent is for employment contracts with no
predetermined end date and temporary for fixed-term employment contracts with a specified end date.
Employee turnover rate calculated by dividing the number of employees who left the company during the
period (including voluntary departures, dismissals, retirements, and deaths in service) by the average employee
headcount.
Workforce composition by employment type and gender
2025 2024
Gender Female Male Total Female Male Total
Permanent 1,449 3,346 4,795 1,461 3,510 4,971
Temporary 50 91 141 33 48 81
Total employees 1,499 3,437 4,936 1,494 3,558 5,052
Employee distribution by country
Country* 2025 2024
Poland 1,277 1,316
United Kingdom 616 636
Hungary 452 563
France 439 452
Denmark 362 365
Italy 348 325
Spain 262 278
Belgium 219 206
Finland 208 201
United States of America 195 157
*top 10 largest countries by employee count (with at least 50 employees)
102 Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
The share of female Board members is calculated as the number of shareholder-elected female Board
members taken relatively to the total number of shareholder-elected Board members as of end of the year.
The share of females at the two management layers below the Board is calculated as the number of females
on the first and secondary management level, meaning our Executive Management Team and people with
personnel responsibilities who report directly to the first management level, respectively. This is taken relatively to
the total number of people at the two management layers below the Board.
ACCOUNTING POLICIES
OSH Management System Coverage (rate) represents the percentage of total headcount plus agency workers
covered by the Group’s Health and Safety Management System, which is based on ISO 45001 principles and
supplemented by the Worldlex and Assure systems.
Work-related fatalities represents the total number of employee fatalities in the reporting year resulting from
work-related accidents or work-related ill health.
Recordable work-related accidents and ill health cases represents the number of work-related accidents
that result in death, days away from work, restricted work, job transfer, medical treatment beyond first aid, loss of
consciousness, or a significant injury or ill health diagnosed by a healthcare professional.
Recordable work-related accidents (rate) calculated by dividing the total number of recordable cases by the
total hours worked by the company’s own workforce, then multiplying the result by 1,000,000.
Days lost due to work-related accidents and ill health represents the number of cases of work-related ill health
identified during the reporting year, such as musculoskeletal disorders, that meet the criteria for recordability as
diagnosed by a healthcare professional.
Lost Time Injury Frequency Rate (LTIFR) measured as the reported number of accidents with absence per million
nominal working hours. A lost-time injury is any work-related accident causing at least one day of absence in
addition to the day of the accident.
ACCOUNTING POLICIES
Data is collected through a digital reporting system accessible via Faerch Group’s public websites.
This ensures that the scheme is available to all employees, business partners, and third-party stakeholders
regardless of their location.
Filings are categorized as “substantiated” only after a formal investigation by the Whistleblower Unit confirms that
the reported conduct violated the Group’s Code of Conduct or applicable laws.
Gender at Top Management level Headcount Percentage
Male 29 72%
Female 11 28%
Total 40 100%
Gender on the Board of Directors Headcount Percentage
Male 6 67%
Female 3 33%
Total 9 100%
Metric Unit Value
OSH Management System Coverage (%) rate 100%
Work-related fatalities from accidents (number) number 0
Work-related fatalities from ill health (number) number 0
Recordable work-related ill health cases (number) number 0
Recordable work-related accidents (number) number 129
Recordable work-related accidents (rate) rate 15.1
Days lost due to work-related accidents and ill health number 2,457
Note 7.2 // Diversity metrics
S1-8
Note 7.3 // Health and safety metrics
S1-13
Note 8.1 // Whistleblower scheme
2025 2024
Total number of whistleblower reports filed 17 12
Substantiated filings 8 3
103Faerch Corporate Annual Report 2025
Independent limited assurance report on Selected ESG data in the consolidated statement of
sustainability performance
To the Stakeholders of Faerch A/S
Faerch A/S (“Faerch”) engaged us to provide limited
assurance on selected ESG data in the consolidated
statement of sustainability performance for the period
1 January 2025 - 31 December 2025 (the “Selected ESG data”)
Our conclusion
Based on the procedures we performed and the
evidence we obtained, nothing came to our attention
that causes us not to believe that the Selected ESG
data for the period 1 January 2025 - 31 December 2025
stated on page 11, marked with an asterisk (*), in the
2025 Annual Report are prepared, in all material
respects, in accordance with the accounting policies
developed by Faerch as stated in the Notes on pages
98 - 100 of the 2025 Annual Report (“accounting
policies”). This conclusion is to be read in the context
of what we state in the remainder of our report.
What we are assuring
The scope of our work was limited to assurance over the
Selected ESG data for the period 1 January - 31 December
2025 stated on page 11 the 2025 Annual Report of Faerch:
-
Total GHG emission reductions vs. 2022 baseline
(market-based)
- Scope 1 GHG emissions
- Scope 2 GHG emissions (location-based)
- Scope 2 GHG emissions (market-based)
- Scope 3 GHG emissions
- Output of tray recycled PET from Recycling Division
(ktonnes)
- Share of products designed for circularity (%)
We express limited assurance in our conclusion.
Professional standards applied and level of assurance
We performed a limited assurance engagement in
accordance with International Standard on Assurance
Engagements 3000 (Revised) ‘Assurance Engagements
other than Audits and Reviews of Historical Financial
Information’ and, in respect of the greenhouse gas
emissions, in accordance with International Standard on
Assurance Engagements 3410 ‘Assurance engagements
on greenhouse gas statements’. The quantification of
greenhouse gas emissions is subject to inherent
uncertainty because of incomplete scientific knowledge
used to determine the emissions factors and the values
needed to combine emissions of different gasses.
A limited assurance engagement is substantially less
in scope than a reasonable assurance engagement
in relation to both the risk assessment procedures,
including an understanding of internal control, and the
procedures performed in response to the assessed
risks; consequently, the level of assurance obtained in
a limited assurance engagement is substantially lower
than the assurance that would have been obtained had
a reasonable assurance engagement been performed.
Our independence and quality control
We have complied with the independence requirements
and other ethical requirements in the International Ethics
Standards Board for Accountants’ International Code
of Ethics for Professional Accountants (IESBA Code),
which is founded on fundamental principles of integrity,
objectivity, professional competence and due care,
confidentiality and professional behaviour and ethical
requirements applicable in Denmark.
PricewaterhouseCoopers applies International Standard on
Quality Management 1, ISQM 1, which requires the firm to
design, implement and operate a system of quality
management including policies or procedures regarding
compliance with ethical requirements, professional standards
and applicable legal and regulatory requirements.
Our work was carried out by an independent
multidisciplinary team with experience in sustainability
reporting and assurance.
Understanding reporting and measurement
methodologies
The Selected ESG data need to be read and understood
together with the accounting policies. The accounting
policies used for the preparation of the Selected ESG
data are the accounting policies developed by Faerch,
which Management is solely responsible for selecting
and applying.
The absence of a significant body of established
practice on which to draw to evaluate and measure
sustainability data allows for different, but acceptable,
measurement techniques and can affect comparability
between entities and over time.
Work performed
We are required to plan and perform our work in
order to consider the risk of material misstatement
of the Selected ESG data for the period 1 January
- 31 December 2025. In doing so and based on our
professional judgement, we:
- Evaluated the appropriateness of the accounting
policies used and their consistent application in the
Selected ESG data;
- Made inquiries and conducted interviews with
management with responsibility for management
and reporting of the Selected ESG data to assess
reporting and consolidation process, use of
company-wide systems and controls performed;
- Checked the Selected ESG data on a sample basis
to underlying documentation and evaluated the
appropriateness of quantification methods and
compliance with the accounting policies used for
preparing the Selected ESG data;
- Performed analytical review and trend explanation of
the Selected ESG data; and
- Evaluated the obtained evidence.
Management’s responsibilities
Management of Faerch is responsible for:
- Designing, implementing and maintaining internal
control over information relevant to the preparation
of the Selected ESG data that are free from material
misstatement, whether due to fraud or error;
- Establishing objective accounting policies for
preparing the Selected ESG data;
- Measuring and reporting the information in the
Selected ESG data based on the accounting policies;
and
- The content of the Selected ESG data.
Our responsibility
We are responsible for:
- Planning and performing the engagement to obtain
limited assurance about whether the Selected ESG
data for the period 1 January – 31 December 2025 are
prepared, in all material respects, in accordance with
the accounting policies;
- Forming an independent conclusion, based on the
procedures performed and the evidence obtained; and
-
Reporting our conclusion to the stakeholders of Faerch.
Aarhus, 26 February 2026
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR no. 3377 1231
Claus Lindholm Jacobsen Brian Christiansen
State Authorised Public Accountant State Authorised Public Accountant
mne23328 mne23371
104 Faerch Corporate Annual Report 2025
Financial
statements
Parent company
105Faerch Corporate Annual Report 2025
Table of contents - Financial statements - Parent company
Note
Income statement - Parent company 106
Balance sheet - Parent company 107
Statement of changes in equity - Parent company 108
Operating profit
1.1 Revenue 109
1.2 Expenses 109
2.1 Financial income and expenses 111
2.2 Tax on result of the year 111
3.1 Intangible assets 112
3.2 Property, plant and equipment 113
3.3 Investment in subsidaries 113
3.4 Inventories 114
4.1 Share capital 114
4.2 Proposed profit appropriation 114
4.3 Provision for deferred tax 115
4.4 Long-term debt 116
4.5 Fair value of hedging 116
5.1 Contingent assets, liabilities and other financial obligations 117
5.2 Related parties and ownership 117
5.3 Material accounting policy information 118
106 Faerch Corporate Annual Report 2025
Income statement - Parent company
1 JANUARY - 31 DECEMBER
Note DKKm 2025 2024
1.1 Revenue 1,472.5 1,529.7
1.2 Production costs -1,192.3 -1,475.3
Gross profit 280.2 54.4
1.2 Sales and distribution costs -197.6 -173.3
1.2 Administrative expenses -239.1 -102.6
Other operating income 0.0 0.0
1.2c Other operating cost -483.2 -146.6
Earnings before interest and tax -639.7 -368.1
3.3 Income from investments in subsidaries -821.5 -
2.1 Financial income 672.0 582.0
2.1 Financial expenses -556.9 -596.5
Profit/(loss) before income tax -1,346.1 -382.5
2.2 Income tax expenses 193.4 82.9
Profit/(loss) for the year -1,152.6 -299.6
Proposed distribution of profit / (loss):
Retained earnings -1,146.1 -315.5
Reserve for development projects -6.5 15.9
-1,152.6 -299.6
107Faerch Corporate Annual Report 2025
Note DKKm 2025 2024
Equity and liabilities
4.1 Share capital 79.0 79.0
Reserve for hedging instruments -11.1 -1.6
Reserve for currency adjustments -7.7 25.3
Reserve for development costs 28.4 34.9
4.2 Retained earnings 9,956.8 11,102.9
Equity 10,045.4 11,240.5
4.3 Provision for deferred tax 240.9 280.6
Other provisions 319.1 316.9
Provisions 560.0 597.5
Mortgage loans 207.1 207.1
Credit institutions 6,816.6 6,941.3
4.5 Derivates, non-current 23.0 36.8
Lease liabilities 7.7 5.4
4.4 Other non current liabilities 7,054.4 7,190.6
Credit institutions - 851.2
4.4 Lease liabilities 4.1 4.7
Trade payables 71.8 81.0
Payables to group enterprises 1,591.7 1,887.6
Corporation tax - 0.4
4.5 Derivatives, current 18.1 29.8
Other payables 131.8 111.9
Deferred income 2.3 1.4
Total current liabilities 1,819.8 2,968.1
Total liabilities 9,434.3 10,756.2
Total equity and liabilities 19,479.7 21,996.7
5.1 Contingent assets, liabilities and other financial obligations
5.2 Related parties and ownership
5.3 General accounting policies
31 DECEMBER
Note DKKm 2025 2024
Assets
3.1 Goodwill 206.4 224.1
3.1 Brand 675.3 733.2
3.1 Customer relations 194.3 223.4
3.1 Other intangible assets 593.7 703.4
Intangible assets 1,669.8 1,884.2
3.2 Land and buildings 146.3 152.4
3.2 Plant and machinery 222.5 254.3
3.2 Fixtures and fittings, tools and equipment 29.9 33.8
3.2 Fixed assets under construction 51.3 38.1
Tangible assets 450.0 478.7
3.3 Investments in subsidiaries 14,395.6 14,554.8
Deferred tax assets 86.3 -
Fixed assets investments 14,481.9 14,554.8
4.5 Derivatives, non-current - 9.5
Total non-current assets 16,601.6 16,927.1
3.4 Inventories 110.5 105.7
Trade receivables 31.1 13.4
Receivables from group enterprises 2,539.6 3,463.2
4.5 Derivatives, current 9.5 37.9
Other receivables 45.5 43.3
Corporation tax 101.4 63.7
Receivables 2,727.2 3,621.4
Cash at bank and in hand 40.2 1,342.5
Total current assets 2,878.0 5,069.6
Total assets 19,479.7 21,996.7
Balance sheet - Parent company
108 Faerch Corporate Annual Report 2025
Statement of changes in equity - Parent company
Reserve for
currency
adjustments
Reserve for
develop-
ment costs
Retained
earnings Total
Reserve for
hedging
instruments
Share
capital
DKKm
Equity 1 January 2025 79.0 -1.6 25.3 34.9 11,102.9 11,240.5
Capitalised development costs - - - -6.5 6.5 -
Fair value adjustment of hedging instruments - -12.2 - - - -12.2
Tax on adjustment of hedging instruments - 2.7 - - - 2.7
Currency adj. on investments in subsidaries - - -42.3 - - -42.3
Tax on currency adj. on investments in subsidaries - - 9.3 - - 9.3
Net profit for the year - - - - -1,152.6 -1,152.6
Equity 31 December 2024 79.0 -11.1 -7.7 28.4 9,956.8 10,045.4
Equity 1 January 2024 79.0 59.2 -10.9 19.0 9,926.3 10,072.6
Capitalised development costs - - - 15.9 -15.9 -
Fair value adjustment of hedging instruments - -78.0 - - - -78.0
Tax on adjustment of hedging instruments - 17.2 - - - 17.2
Currency adj. on investments in subsidaries - - 46.4 - - 46.4
Tax on currency adj. on investments in subsidaries - - -10.2 - - -10.2
Capital increase - - - - 1,492.1 1,492.1
Net profit for the year - - - - -299.6 -299.6
Equity 31 December 2024 79.0 -1.6 25.3 34.9 11,102.9 11,240.5
109Faerch Corporate Annual Report 2025
Note 1.1 // Revenue
Note 1.2a // Staff expenses
ACCOUNTING POLICIES
Revenue from contracts with customers is recognised in the income statement after IFRS 15 happens on the time
where control of the delivered product/service is handed over to the customer.
The control is seen as handed over when:
- There is a binding sales agreement
- Delivery has taken place before the end of the financial year
- The selling price is fixed, and
- The payment has been received or can be expected to be received with reasonable certainty.
Revenue is recognised exclusive of VAT and net of discounts relating to sales.
Geographical segments
Segment information is presented relating to the distribution of revenue on geographical segments.
Based on this, it is the Company’s assessment that it has one business segment which is “production and sale of
plastic packaging” and five geographical segments which are “North Europe”, “South Europe”, “Central Europe”,
“North America” and “rest of the World”.
ACCOUNTING POLICIES
Staff expenses comprise wages and salaries as well as payroll expenses.
DKKm 2025 2024
North Europe 858.4 902.0
South Europe 185.7 190.6
Central Europe 342.0 360.9
North America 31.2 23.7
Rest of the world 55.1 52.5
Total 1,472.5 1,529.7
DKKm 2025 2024
Wages and salaries 202.9 179.6
Pensions 15.6 14.1
Other social security expenses 5.4 3.9
Total 224.0 197.5
Including remuneration to:
Executive Board 29.8 22.0
Board of Directors 4.1 4.1
Total 33.9 26.1
Average number of employees 352 352
110 Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
Amortisation, depreciation and impairment losses comprise amortisation, depreciation and impairment of
intangible assets, leasing and property, plant and equipment.
(DKKm) 2025 2024
Intangible assets, amortisation 196.0 193.4
Leased assets, depreciation 5.6 5.5
Property, plant and equipment, depreciation 60.4 66.0
Total depreciation, amortisation and impairment losses 262.0 264.9
Depreciation/amortisation and impairment losses relate to:
Cost of goods sold 137.4 145.8
Sales and distribution costs 92.5 92.6
Administration cost 32.2 26.5
Total depriciation, amortisation and impairment losses 262.0 264.9
(DKKm) 2025 2024
Acquisition 5.6 3.3
Integration - 7.2
Other 14.4 -
Total special items 20.0 10.5
Note 1.2b // Depreciation, amortisation
and impairment losses
Note 1.2c // Special items included
in other operating cost
111Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
Financial income and expenses comprise interest, financial expenses in respect of lease liabilities, realised and
unrealised exchange adjustments, price adjustment of securities, amortisation of mortgage loans as well as extra
payments and repayment under the account taxation scheme.
(DKKm) 2025 2024
Dividend 244.1 35.4
Gain related to sale of subsidaries 139.6 0.0
Interest received from group entreprises 165.8 506.1
Other financial income 122.5 40.6
Total financial income 672.0 582.0
Interest paid to group enterprises 60.0 13.0
Other financial expenses 496.9 583.5
Total financial expenses 556.9 596.5
ACCOUNTING POLICIES
Tax for the year consists of current tax for the year and changes in deferred tax for the year. The tax attributable to
the profit for the year is recognised in the income statement, whereas the tax attributable to equity transactions is
recognised directly in equity.
(DKKm) 2025 2024
Current tax for the year 92.1 57.4
Deferred tax for the year 102.5 21.3
Adjustment of tax concerning previous years -1.2 4.2
Tax on profit for the year 193.4 82.9
Tax on profit/loss for the year 193.4 82.9
Tax on changes in equity 12.0 6.9
Total tax 205.4 89.9
Note 2.1 // Financial income and expenses
Note 2.2 // Tax on result of the year
112 Faerch Corporate Annual Report 2025
Costs incurred in connection with development projects are recognised as assets if they are expected to bring
future economic benefits. Other development costs are expensed as incurred.
Capitalised development costs are measured at cost less accumulated amortisation and impairment losses or at a
lower recoverable amount.
As of the date of completion, capitalised development costs are amortised on a straight-line basis over the period
of the expected economic benefit. The period of amoritsation is three years.
Technology is amortised on a straight-line basis over 20 years.
Customer relations is amortised on a straight-line basis over 15 years.
ACCOUNTING POLICIES
Goodwill
Goodwill is amortised on a straight-line basis over the estimated useful life of 20 years, which is determined
considering Faerch’s market position and track-record of delivering long-term growth in revenue and earnings.
Brand
Brand is amortised on a straight-line basis over the estimated useful life of 20 years, which is determined
considering Faerch’s overall market position and strong customer base.
Customer relations and other intangible assets
Projects that are clearly defined and identifiable, with the technical feasibilty, sufficient resources and a potential
future commercial or utilization opportunity within the Group is demonstrated, and where the Group intends to
produce, market or use the project are recognized as intangible assets provided that future benefits are probable.
The projects are recognised in the income statement when incurred.
Note 3.1 // Intangible assets
DKKm
Cost at 1 January 312.6 1,022.6 369.1 923.9 2,628.2
Additions - - - 14.7 14.7
Disposals - - - -33.1 -33.1
Cost at 31 December 312.6 1,022.6 369.1 905.5 2,609.8
Amortisation and impairment at 1 January 88.5 289.4 145.7 220.4 744.0
Amortisation for the year 17.7 57.9 29.1 91.3 196.0
Amortisation and impairment at 31 December 106.2 347.3 174.8 311.7 940.0
Carrying amount at 31 December 206.4 675.3 194.3 593.7 1,669.8
Total
Other
intangible
assets
Customer
relations BrandGoodwill
113Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
Property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and less any accumulated
impairment losses.
Cost comprises the cost of acquisition and expenses directly related to the acquisition up until the time when
the asset is ready for use. In the case of assets of own construction, cost comprises direct and indirect expenses
for labour, materials, components and sub-suppliers.
Interest expenses on loans raised directly for financing the construction of property, plant and equipment are recognised in
cost over the period of construction. All indirectly attributable borrowing expenses are recognised in the income statement.
Depreciation based on cost reduced by any residual value is calculated on a straight-line basis over the expected
useful lives of the assets, which are:
Buildings: 20-30 Years
Plant and machinery: 1-20 Years
Fixtures and fittings, tools and equipment: 1-10 Years
ACCOUNTING POLICIES
Investments in subsidiaries are recognised and measured at cost. Where cost exceeds the recoverable amount,
write-down is made to this lower value.
Company overviews as at 31 December 2025
All foreign subsidiaries are recognised and measured as separate entities. At 31 December 2025, the recoverable
amounts of the investments in Faerch Group Germany GmbH are assessed to be lower than their carrying
amounts, and impairment losses have therefore been recognised with an amount of DKK 0.8m. For the remaining
investments in subsidiaries, the recoverable amounts exceed their carrying amounts at 31 December 2025.
The additions in investments in 2025 relating to Faerch A/S primarily concerns the conversion of debt into equity
in Faerch France, Paccor France SAS, Faerch Finland Oy and Faerch Standdaarbuiten B.V.
The disposals relates to sales of investments in Faerch Portage and Faerch US, Inc.
Please refer to the company overview for Faerch A/S group of companies as stated in note 4.10,
which is an integrated part of this note.
Note 3.2 // Property, plant and equipment
Note 3.3 // Investment in subsidaries
DKKm
Cost at 1 January 310.0 1,051.6 493.6 38.1 1,893.3
Additions 1.6 14.4 11.5 13.2 40.7
Disposals - -10.9 -2.6 - -13.4
Cost at 31 December 311.6 1,055.1 502.5 51.3 1,920.5
Depreciation and impairment at 1 January 157.6 797.3 459.8 - 1,414.6
Depreciation for the year 7.8 43.0 15.2 - 66.0
Depreciation on disposals - -7.7 -2.3 - -10.1
Depreciation and impairment at 31 December
165.3 832.6 472.7 - 1,470.6
Carrying amount at 31 December 146.3 222.5 29.9 51.3 450.0
Total
Fixed
assets
under
construction
Fixtures
and fittings,
tools and
equipment
Plant and
machinery
Land and
buildings
Assets under finance leases amounting to DKK 4.8m for plant and machinery, DKK 1.2m for land and buildings
and DKK 3.8m for fixtures and fittings are included.
(DKKm) 2025 2024
Cost at 1 January after merger 14,554.8 7,279.8
Additions for the year 885.1 7,275.0
Disposals for the year -222.8 -
Cost at 31 December 15,217.1 14,554.8
Value adjustments at 1 January - -
Value adjustments of the year -821.5 -
Value adjustments at 31 December -821.5 -
Carring amount before reclassification at 31 December 14,395.6 14,554.8
114 Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
Inventories are measured at the lower of cost under the FIFO method and net realisable value.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables and direct
labour with addition of indirect production costs. Indirect production costs comprise the cost of indirect
materials and labour as well as maintenance and depreciation of the machinery, factory buildings and equipment
used in the manufacturing process as well as costs of factory administration and management.
The share capital is broken down as follows:
The share capital has developed as follows:
Note 3.4 // Inventories
Note 4.2 // Proposed profit appropriation
Note 4.1 // Share capital
(DKKm) 2025 2024
Raw materials and consumables 43.1 43.0
Work in progress 24.4 24.7
Finished goods 43.1 38.0
Total inventories 110.5 105.7
(DKKm) 2025 2024
Reserve for development projects -6.5 15.9
Retained earnings -1,146.1 -315.5
Total -1,152.7 -299.6
(DKKm) Number Nominal value
A-shares 13 13,000
B-share 66 66,000
Total 79 79,000
(DKKm) 2025 2024
Share capital at 1 January 79.0 79.0
Share capital at 31 December 79.0 79.0
115Faerch Corporate Annual Report 2025
Note 4.3 // Provision for deferred tax
ACCOUNTING POLICIES
Deferred tax assets and liabilities
Deferred income tax is measured using the balance sheet liability method in respect of temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes
on the basis of the intended use of the asset and settlement of the liability, respectively.
Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the
asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax
liabilities within the same legal tax entity.
Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at
the balance sheet date when the deferred tax is expected to crystallise as current tax. Any changes in deferred
tax due to changes to tax rates are recognised in the income statement.
Current tax receivables and liabilities
Current tax liabilities and receivables are recognised in the balance sheet as the expected taxable income
for the year adjusted for tax on taxable incomes for prior years and tax paid on account. Extra payments and
repayment under the on-account taxation scheme are recognised in the income statement in financial income
and expenses.
(DKKm) 2025 2024
Deferred tax, net at 1 January 280.6 304.8
Adjustments concerning previous years -19.5 -1.6
Deferred tax recognised in the income statement -102.5 -21.3
Deferred tax recognised in other comprehensive income -4.1 -1.3
Deferred tax, net at 31 December 154.6 280.6
Classified as:
Deferred tax assets 86.3 -
Deferred tax liabilities 240.9 280.6
Total 154.6 280.6
116 Faerch Corporate Annual Report 2025
ACCOUNTING POLICIES
Fixed-interest loans, such as mortgage loans and loans from credit institutions, are recognised initially at the
proceeds received net of transaction expenses incurred. Subsequently, the loans are measured at amortised cost;
the difference between the proceeds and the nominal value is recognised as an interest expense in the income
statement over the loan period.
Other debts are measured at amortised cost, substantially corresponding to nominal value.
Payments due within 1 year are recognised in short-term debt. Other debt is recognised in long-term debt.
The debt falls due for payment as specified below:
Note 4.4 // Long-term debt
Note 4.5 // Fair value of hedging
(DKKm) 2025 2024
Mortgage loans
After 5 years 158.6 173.2
Between 1 and 5 years 48.5 33.9
Long-term part 207.1 207.1
Within 1 year 0.0 0.0
Total mortgage loans 207.1 207.1
Credit institutions
Between 1 and 5 years 6,816.6 6,941.3
Long-term part 6,816.6 6,941.3
Within 1 year - 851.2
Total credit institutions 6,816.6 7,792.5
Leasing liabilities
After 5 years 0.5 -
Between 1 and 5 years 7.2 5.4
Long-term part 7.7 5.4
Within 1 year 4.1 4.7
Total leasing 11.8 10.1
(DKKm) 2025 2024
Agreements have been made on hedging contracts in terms of
interest rate swaps and forward exchange contracts
Value of hedging 1 January -19.4 58.6
Additions and fair value adjustments -12.2 -78.0
Value of hedging 31 December -31.6 -19.4
Reported in the balance sheet as
Derivatives asset, non-current 0.0 9.5
Derivatives asset, current 9.5 37.9
Derivatives liability, non-current -23.0 -36.8
Derivatives liability, current -18.1 -29.8
Value of hedging 31 December -31.6 -19.4
Contracts concerning sale of foreign exchange 170.4 191.9
Contracts of GBP 20.0m has been entered into with an average rate of EUR/GBP 0.8766 which will expire in 2026.
117Faerch Corporate Annual Report 2025
Faerch A/S has handed over part of it's receivables to BNP through a factoring contract.
Contingent liablities
Certain subsidiaries in the group are guarantors as principal obligor for the parent company’s external banking
facility of EUR 1,250m of which EUR 918m are drawn as of 31 December 2025. The net assets of the guarantor’s
amount to EUR 151.5m as of 31 December 2025.
Faerch A/S provides a payment guarantee of EUR 1,96m for a purchase power agreement that subsidiary Faerch UK
has entered with a third party energy supplier.
The Company is not involved in any lawsuits which are expected to have a material effect on the financial position
of the Company.
Through participation in a joint taxation scheme with A.P. Møller Holding A/S, the company is jointly and severally
liable for taxes payable in Denmark.
Faerch A/S has entered into a solar energy contract for an agreed-upon term of 10 years. The contract terms
expose Faerch A/S to the variability of sunlight, which could create the potential for over- or under-supply
due to fluctuating weather patterns. In periods of over-supply, Faerch A/S will have to sell unused electricity,
as the market design does not offer any alternatives and Faerch A/S has no practical ability to store electricity.
Conversely, in periods of under-supply, Faerch A/S will have to procure its required energy through other sources,
which could result in fluctuating impacts on Faerch A/S’ electricity costs. Overall, during the year, Faerch A/S
remains a net purchaser of electricity under all its contracts.
As of 31 December 2025, for this contract, the agreed-upon fixed purchase price of the electricity is higher than
the current forward-looking market prices; however, the impact of this is not currently expected to be material to
the financial statements. This conclusion is continually reassessed by management as market conditions change
over time.
Faerch A/S has contractual commitments for purchasing electricity under these contracts as follows:
Note 5.1 // Contingent assets, liabilities
and other financial obligations
(DKKm) 2025 2024
Security
The following assets have been placed as security with mortgage credit institutions:
Land and buildings with the carrying amount of 146.3 151.2
Plant and machinery with the carrying amount of 214.7 249.5
(DKKm) 2025 2024
Less than 1 year 18.0 18.0
2 - 5 years 72.0 72.0
More than 5 years 36.0 54.0
118 Faerch Corporate Annual Report 2025
BASIS OF PREPARATION
The Financial Statements of Faerch A/S for 2025 has been prepared in accordance with the
provisions of the Danish Financial Statements Act applying to large enterprises of reporting class C.
The Financial Statements for 2025 are presented in DKK millions.
Accounting policies applied are unchanged compared to the previous year.
The accounting policies are, where possible, the same as for the consolidated financial statements.
Note 5.3 // Material accounting policy information
Note 5.2 // Related parties and ownership
Controlling interest Basis
Faerch Group Holding A/S, Rasmus Færchs Vej 1, 7500 Holstebro, Denmark Parent Company
The Company's subsidiaries, refer to Note 4.10 of the consolidated financial statements Subsidiaries
Transactions
Related parties with significant influence comprise group enterprises as well as the Board of Directors and the
Executive Board of the Company.
Pursuant to section 98c(7) of the Danish Financial Statements Act, the Company transact with related parties
on market terms.
Ownership
Faerch Group Holding A/S, Holstebro, Denmark is recorded in the Company’s register of shareholders as holding
at least 5% of the votes or at least 5% of the share capital in Faerch A/S.
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Executive Management
Board of Directors
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About this report
These financial statements are consolidated financial statements
for the Group consisting of Faerch A/S and its subsidiaries. A list of
all subsidiaries is included in note 4.10. The financial statements
are presented in the functional currencies for the Group (EUR) and
the Parent company (DKK).
Photo credits
Ole Mortensen, Shutterstock and Steen Brogaard
Headquarters
Tel.: +45 99 10 10 10
official@faerch.com
CVR no. 137 23540