Note 01 Company information and basis of preparation
Elopak ASA is a public limited company incorporated in NorwayElopak is a global supplier of liquid carton packaging and filling equipment, catering to both the fresh and aseptic segments. The principal activities of the company and its subsidiaries are described in Note 3. The address of the registered office and principal place of business is Industriveien 30, 3430 SpikkestadNorway. Elopak ASA is listed on the Oslo Stock Exchange (Oslo Bors). The Board of Directors and the CEO authorized these consolidated financial statements of Elopak ASA and its subsidiaries for the year ended December 31, 2024, for issue on April 2, 2025.
Elopak\u2019s material accounting policies are included in the explanatory notes to the consolidated financial statements.
Basis of preparation
The consolidated financial statements of Elopak ASA and its subsidi-aries have been prepared in accordance with International Financial Reporting Standards (IFRS\u00ae) as adopted by the European Union (EU). The accounting policies adopted have been applied consistently to all the years presented. Elopak also provides disclosures in accordance with requirements in the Norwegian Accounting Act (Regnskapsloven). New and amended standards adopted by Elopak do not have a material impact on the consolidated financial statements. The Elopak Group consists of Elopak ASA and its subsidiaries as set out in Note27.
The consolidated financial statements incorporate the financial state-ments of the companies controlled by Elopak ASA. The functional currency of Elopak ASA is the Euro (EUR). All numbers are presented in Euro 1\u00a0000 unless otherwise is clearly stated.
Material accounting policies
Material accounting policies and information about management judg-ments, estimates, and assumptions are provided in the respective notes throughout the consolidated financial statements. Accounting policies that relate to the financial statements as a whole or are relevant for several notes are included in this \u201cMaterial accounting policies\u201d section.
Foreign currencies
The individual financial statements of each group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the consolidated financial statements, the results and financial position of each group entity are expressed in Euro, which is the functional currency of the parent company and the presentation currency for the consolidated financial statements.
For presenting the consolidated financial statements, the assets and liabil-ities of Elopak\u2019s foreign operations are expressed in Euro using exchange rates prevailing on the reporting date. Income and expense items are translated at the average exchange rates for the relevant periods.
Impairment of non-financial assets excluding goodwill
At each reporting date, Elopak reviews the carrying amounts of its non-fi-nancial assets to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, Elopak estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or cash-generating unit) is esti-mated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount. The increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below.
Financial instruments at amortized cost
Subsequent to initial recognition, non-derivative financial instruments are measured at amortized cost using the effective interest method, less any impairment losses. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability or, where appropriate, a shorter period.
Financial instruments at fair value
The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments where there
is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm\u2019s length market transactions; reference to the current market value of another instrument which is substantially the same; discounted cash flow analysis or other valuation models.
Trade and other payables
Trade and other payables that contain significant financing components are measured at amortized cost, otherwise, they are measured at nominal value.
Adoption of new and revised International Financial Reporting Standards
A number of new standards are effective for annual periods beginning after January 1, 2024, and earlier application is permitted. However, Elopak has not early adopted the following new or amended accounting standards.
Amendments to IFRS that are mandatorily effective for an accounting period that begins on or after January 1, 2024 have been adopted. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements except Supplier
Finance Arrangements. (For more details refer Note Supplier Finance Arrangements.)
\u2022Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
\u2022Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
\u2022Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The following new and amended standards issued but not yet effective are not expected to have a material impact on Elopak\u2019s consolidated financial statement:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments (Amendments to IFRS 9 and IFRS 7)
The following new and amended standards issued but not yet effective are currently being assessed by Elopak for disclosure requirements and if the required information is available.
\u2022IFRS 18- Presentation and disclosure in Financial statements.
\u2022IFRS 19- Subsidiaries without Public Accountability: Disclosures.
Note 02 Critical accounting judgments and key sources of estimation uncertainty
In the application of Elopak\u2019s accounting policies, which are described in Note 1, management is required to make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
IFRS 15 - Revenue Recognition
Management has exercised judgment in assessing the recognition of revenue over time under IFRS 15. The judgment is based on manage-ment\u2019s assessment of the legally enforceable right to payment for cartons with no alternative use, as cartons are printed based on customer spec-ifications. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions in each country the Group operates gives the company an enforceable right to payment for work
performed to date, as described in IFRS 15. The reclassification of revenue from inventory of finished goods to revenue from customers is based on management\u2019s best estimate of information given at the end of the reporting period. Revenue recognized over time is presented in note 3and the contract assets are disclosed under note18.
Consolidation of GLS Elopak
Elopak and GLS signed on April 28, 2022 an agreement in which the two companies will have 50% ownership of a newly formed company, GLS Elopak. The agreement provides Elopak with exposure to variable returns and power to affect the returns from GLS Elopak, which means that Elopak will have control of GLS Elopak in accordance with IFRS 10 and will consolidate the company as a subsidiary in Elopak\u2019s financial statements.
Deferred tax assets
Management has exercised judgment in assessing the recognition of tax loss carryforward for Elopak\u2019s various entities and the resulting deferred tax asset. The judgment is based upon the entities\u2019 assessed ability to generate future cash flows that will enable the entities to do so. The assessments imply a degree of uncertainty relating to such future events. Tax expenses and deferred tax assets are presented in Note 9.
Tax disputes
In tax disputes, Elopak accounts for tax costs according to decisions made by local tax authorities or according to subsequent tax rulings in the actual case or similar cases. Where transfer pricing adjustments have been made, mutual agreement procedures (MAP) between the affected countries are normally available. A successful MAP procedure, as intended in the double tax treaties between countries, would result in a corresponding tax adjustment in a Group company, thus removing the tax cost for Elopak. Where a MAP process is available, Elopak recognizes tax costs according to the probability of the outcome of the MAP process. If tax authorities within the EU do not agree, taxpayers have the right to demand arbitration. Details regarding ongoing tax disputes are described in Note 9.
Note 03 Revenues
Accounting policy
The Group is a global supplier of paper-based packaging system solutions for liquid products. Revenue from contracts with customers is derived from sale of filling equipment, Pure-Pak\u00aecarton and Roll Fed packaging material (hereby denominated as cartons), closures and related services. Revenue is recognised when control of the goods or services are transferred to the customer and is presented net of returns, trade discounts, volume rebates and other customer incentives. The Group also presents lease income from lease of filling equipment.
Generally, the Group recognises revenue on a point in time basis when the customer takes title to the goods and rewards for the goods. For goods without alternative use where the Group has a legally enforceable right to payment for the goods, the Group recognises revenue over time, which generally is, as the goods are produced.
Sale of cartons and closures
Cartons are printed based on customer specifications and are therefore without alternative use. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions give the company an enforceable right to payment for work performed to date as described in IFRS 15. Most of the customer contracts include cancellation clauses that give the company sufficient protection to conclude that there is an enforceable right to payment.
Closures are not customised and therefore with alternative use and recognised at point in time.
Sale of filling equipment
Revenue from sale of filling equipment is recognised at the point in time when control of the asset is transferred to the customer, generally when the machine is tested and accepted by the customer. Filling equipment could result in no alternative use if it would incur significant costs to rework the design and func-tion of the machine to adapt it to another customer. However, in most cases filling equipment is standard equipment and considered to have alternative use, hence they are recognised at point in time.
Sale of service
The Group offers research and development support, after sales services and technical training and main-tenance support. Revenue from support, service and training is recognised over time, as the customer simultaneously receives and consumes the benefit provided to them. The Group uses an input method in measuring progress of the services because there is a direct relationship between the Group\u2019s effort/labour hours occurred and the transfer of service to the customer.
Trade discounts, volume rebates and other incentives
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Cartons are often sold with retrospective volume discounts based on aggregate sales over several months. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. A refund liability is recognised for the expected volume discounts payable to customers in relation to sales made until the end of the reporting period.
No significant element of financing is deemed present, and the Group had no right of return in the reporting period.
Contract liabilities
Payments for filling equipment are generally made in installments and a contract liability is recognised when a payment is received or due from a customer before the Group transfers the filling equipment. Contract liabilities are recognised as revenue when control of the filling equipment is transferred to the customer.
Contract assets
Contract assets consist of prepaid support (rebate) to customers which will be offset against contracted future purchases of carton and features. The prepaid support is allocated to the different performance obligations, hereunder filling equipment and cartons/closures. Contract assets include over time revenue for cartons before the right to payment becomes unconditional. See Note 18for disclosure of contract assets.
Remaining performance obligations
Delivery obligations for cartons are completed within one year or less, so we have therefore elected to use exception IFRS 15.121.
The Group\u2019s revenues consist of revenue from contracts with customers (99%) and rental income from lease of filling equipment (1%). Revenues are primarily derived from the sale of cartons and closures, sales and rental income related to filling equipment and service.
Revenues specified by geographical area
EUR 1\u00a0000 | 2024 | 2023 |
USA | 238\u00a0279 | 219\u00a0203 |
Germany | 160\u00a0493 | 159\u00a0778 |
Canada | 79\u00a0416 | 77\u00a0705 |
Netherlands | 61\u00a0241 | 58\u00a0201 |
Norway | 20\u00a0345 | 27\u00a0120 |
Other | 596\u00a0728 | 590\u00a0036 |
Total revenue | 1\u00a0156\u00a0502 | 1\u00a0132\u00a0043 |
The revenues are specified by location (country) of the customer.
Revenues by product and operating segment
2024 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Cartons and closures | 751\u00a0951 | 291\u00a0593 | (4\u00a0322) | 1\u00a0039\u00a0222 |
Equipment | 51\u00a0280 | 16\u00a0219 | (9\u00a0209) | 58\u00a0289 |
Service | 59\u00a0161 | - | (1\u00a0326) | 57\u00a0835 |
Other | 11\u00a0533 | 2\u00a0603 | (12\u00a0980) | 1\u00a0156 |
Total revenue | 873\u00a0924 | 310\u00a0416 | (27\u00a0838) | 1 156 502 |
2023 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Cartons and closures | 755\u00a0682 | 276\u00a0739 | (4\u00a0245) | 1\u00a0028\u00a0177 |
Equipment | 52\u00a0385 | 12\u00a0114 | (14\u00a0227) | 50\u00a0272 |
Service | 52\u00a0113 | - | (971) | 51\u00a0142 |
Other | 10\u00a0278 | 1\u00a0748 | (9\u00a0575) | 2\u00a0451 |
Total revenue | 870\u00a0459 | 290\u00a0601 | (29\u00a0017) | 1\u00a0132\u00a0043 |
Note 04 Operating segments
Information reported to the Group\u2019s chief operating decision makers, Elopak Management, for the purpose of resource allocation and assessment of segment performance is focused on two key geographical regions \u2013 EMEA and Americas. GLS Elopak is included in EMEA. Key figures representing the financial performance of these segments are presented in the following note. Refer to Note 13for disclosure of fixed assets specified by geographical area. The tables include continuing operations only.
2024 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Revenue from contracts with customers | 848\u00a0203 | 308\u00a0011 | 288 | 1\u00a0156\u00a0502 |
Revenue from other group segments | 25\u00a0721 | 2\u00a0405 | (28\u00a0126) | - |
Total revenue | 873\u00a0924 | 310\u00a0416 | (27\u00a0838) | 1\u00a0156\u00a0502 |
Other income | 89 | - | - | 89 |
Total income | 874\u00a0013 | 310\u00a0416 | (27\u00a0838) | 1\u00a0156\u00a0591 |
Operating expenses\u200c1 | (734\u00a0026) | (249\u00a0141) | (7\u00a0024) | (990\u00a0191) |
Depreciation and amortization | (55\u00a0017) | (8\u00a0049) | (1\u00a0311) | (64\u00a0377) |
Impairment | (2\u00a0568) | - | - | (2\u00a0568) |
Operating profit | 82\u00a0401 | 53\u00a0226 | (36\u00a0172) | 99\u00a0456 |
EBITDA\u200c2 | 139\u00a0987 | 70\u00a0971 | (34\u00a0861) | 176\u00a0097 |
Adjusted EBITDA\u200c2 | 139\u00a0987 | 70\u00a0971 | (34\u00a0861) | 176\u00a0097 |
Purchase of non-current assets during the year | 48\u00a0278 | 59 155 | 1 668 | 109 101 |
2023 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Revenue from contracts with customers | 842\u00a0304 | 288\u00a0882 | 857 | 1\u00a0132\u00a0043 |
Revenue from other group segments | 28\u00a0153 | 1\u00a0718 | (29\u00a0872) | - |
Total revenue | 870\u00a0457 | 290\u00a0601 | (29\u00a0015) | 1\u00a0132\u00a0043 |
Other income | 61 | 83 | ( 0) | 145 |
Total income | 870\u00a0519 | 290\u00a0684 | (29\u00a0015) | 1\u00a0132\u00a0187 |
Operating expenses\u200c1 | (734\u00a0923) | (230\u00a0120) | (3\u00a0034) | (968\u00a0076) |
Depreciation and amortization | (50\u00a0589) | (7\u00a0159) | (2\u00a0398) | (60\u00a0147) |
Impairment | (1\u00a0186) | - | - | (1\u00a0186) |
Operating profit | 83\u00a0821 | 53\u00a0405 | (34\u00a0446) | 102\u00a0778 |
EBITDA\u200c2 | 135\u00a0582 | 67\u00a0433 | (32\u00a0049) | 170\u00a0966 |
Adjusted EBITDA\u200c2 | 135\u00a0482 | 67\u00a0433 | (32\u00a0049) | 170\u00a0866 |
Purchase of non-current assets during the year | 38\u00a0353 | 1\u00a0756 | 665 | 40\u00a0774 |
1Operating expenses include cost of materials, payroll expenses, and other operating expenses.
2See the APM disclosure for the reconciliation of EBITDA and adjusted EBITDA. With effect from the third quarter of 2024, the definition of EBITDA has changed to include share of net profit from joint ventures. As a consequence, the comparatives have been updated accordingly.
Note 05 Payroll expenses, numbers of employees, benefits etc.
The table includes continuing operations only.
EUR 1\u00a0000 | 2024 | 2023 |
Salary | (163\u00a0723) | (151\u00a0449) |
Social security | (23\u00a0185) | (23\u00a0585) |
Pension defined benefit plans (Note20) | (110) | (99) |
Pension defined contribution plans (Note20) | (11\u00a0140) | (9\u00a0996) |
Other benefits | (5\u00a0083) | (4\u00a0495) |
Total | (203\u00a0242) | (189\u00a0623) |
Man-year Elopak employees (excl. equity investees) | 2\u00a0153 | 2\u00a0078 |
Executive management compensation for the year ended December 31, 2024 is disclosed in the Remuneration Report which is presented on the Elopak website.
Note 06 Share-based payments
In November 2023 the Group expanded the long-term incentive program to include senior management. Under the expanded program PSUs (Performance Share Units) of the parent are granted to members of Elopak Management and senior management. One PSU (instrument) equals one share. The eligible employees will be granted an annual award of shares from the company if certain performance criteria are met.
The key terms and conditions related to the grants are as follows:
KPI Categories | Weighted | Metric |
Financial targets | 50% | Adjusted EBITDA less normalized CapEx |
People and Planet targets | 20% | Environmental target (Co2emission) |
Shareholder value targets | 30% | Total shareholders return (TSR) |
The granted PSUs will be gradually vested during a 3-year period. Allocation of PSUs will be based on % of base pay, maximum allocation of 80% for CEO, 50% for Global Leadership Team members, and between 10 to 15% for senior management.
The fair value of the PSUs related to TSR is estimated at the grant date through a Monte Carlo simulation. The fair value of the PSU\u2019s related to the remaining KPIs are equal to the share price at grant date. However, the above performance condition is only considered in determining the number of PSUs that will ultimately vest.
The PSUs will under normal circumstances be exercised as soon as possible after each vesting date. There are no cash settlement alternatives. The Group does not have a past practice of cash settlement for these PSUs. The Group accounts for the PSUs as an equity-settled plan.
There is no exercise price to any of the PSUs, and therefore the weighted average exercise price for all instruments are zero.
Reconciliation of outstanding Performance share units
Number of instruments in thousands (PSU) | 2024 Number of options | 2023 Number of options |
Outstanding at January 1 | 2\u00a0211 | 699 |
Granted during the year | 929 | 1\u00a0616 |
Performance adjusted | - | 45 |
Exercised during the year | (540) | (149) |
Expired during the year | (217) | - |
Outstanding at December 31 | 2\u00a0383 | 2\u00a0211 |
Exercisable at December 31 (vested) | - | - |
Weighted average remaining contractual life outstanding at end of period | 1.48 years | 1.87 years |
The weighted average share price at the date of exercise was EUR 2.84 in 2024 and EUR 2.27 in 2023.
The weighted average fair value of PSU granted was EUR 2.47 during 2024 and EUR 1.40 in 2023.
The following tables list the inputs to the models used for the years ended December 31
Assumptions and inputs for options granted during the year | 2024 | 2023 |
FV per instrument\u200c1 | \u20ac 2.47 | \u20ac 1.40 |
Dividend yield\u200c1 | - | - |
Expected volatility\u200c1 | 11.86% | 21.06% |
Risk-free interest rate\u200c1 | 1.60% | 1.81% |
Contractual life\u200c1 | 2.55 | 2.55 |
Expected lifetime\u200c1 | 0.28 | 0.32 |
Weighted average share price (\u20ac) | \u20ac 2.84 | \u20ac 2.02 |
1Weighted average parameters at grant of instrument
Expected volatility is assessed based on historical volatility of the Company\u2019s share price, with more weight to the expected term period. The expected term of the instruments has been based on historical experience and general option holder behavior.
Components of share-based payments employee benefit expense | 2024 | 2023 |
Share based payment | (2\u00a0340) | (1\u00a0445) |
Social security contribution | (415) | (196) |
Total expenses related to share-based payments | (2\u00a0755) | (1\u00a0640) |
Note 07 Other operating expenses
EUR 1\u00a0000 | 2024 | 2023 |
Sales and administration expenses | (8\u00a0700) | (7\u00a0733) |
Occupancy and maintenance expenses | (6\u00a0503) | (5\u00a0201) |
Travel expenses | (12\u00a0711) | (11\u00a0313) |
Losses and changes in allowance for bad debt | (970) | (571) |
Consultants, auditors, lawyers, etc | (16\u00a0990) | (16\u00a0423) |
IT expenses | (12\u00a0933) | (10\u00a0901) |
Other expenses | (8\u00a0389) | (6\u00a0516) |
Total | (67\u00a0195) | (58\u00a0658) |
Note 08 Financial items
Financial income
EUR 1\u00a0000 | 2024 | 2023 |
Interest income from bank deposits | 16\u00a0754 | 3\u00a0346 |
Other interest income | 266 | 285 |
Finance lease interest income | 532 | 555 |
Other financial income | 739 | 3\u00a0621 |
Total | 18\u00a0292 | 7\u00a0807 |
Financial expense
EUR 1\u00a0000 | 2024 | 2023 |
Interest expenses | (18\u00a0327) | (14\u00a0402) |
Other interest expense\u200c1 | (9\u00a0706) | 846 |
Lease liability interest | (7\u00a0892) | (6\u00a0566) |
Other financial expenses | (2\u00a0656) | (6\u00a0424) |
Total | (38\u00a0581) | (26\u00a0545) |
1Other interest expense in 2023 annual report included loss from interest rate derivatives of EUR 5.5 million. This is showed in a separate table below, restating the 2023 figures for this line.
Foreign exchange gain/(loss)
EUR 1\u00a0000 | 2024 | 2023 |
Foreign currency gains | 38\u00a0354 | 12\u00a0504 |
Foreign currency losses | (31\u00a0545) | (13\u00a0002) |
Total | 6\u00a0809 | (498) |
Fair value changes on financial instruments
EUR 1\u00a0000 | 2024 | 2023 |
Fair value change IRS | (2\u00a0860) | (5\u00a0518) |
Fair value change CCS | (4\u00a0058) | - |
Total | (6\u00a0918) | (5\u00a0518) |
Interest paid and received under Elopak\u2019s interest rate swaps was from 2024 accounted on a gross basis in financial income or expense, compared to net under financial income or expense prior to 2024.
Note 09 Income tax
Income tax expense
EUR 1\u00a0000 | 2024 | 2023 |
Current income tax charge | 24\u00a0141 | 20\u00a0405 |
Adjustments in respect of current income tax of previous year | 846 | (2\u00a0934) |
Withholding tax | 1\u00a0651 | 1\u00a0107 |
Total current income tax | 26\u00a0638 | 18\u00a0578 |
Deferred tax cost | (4\u00a0199) | (2\u00a0519) |
Effect of changed tax rate and corrections previous years | 4\u00a0764 | (545) |
Total deferred tax | 565 | (3\u00a0064) |
Income tax expense reported in the statement of comprehensive income | 27\u00a0203 | 15\u00a0514 |
Payable tax
EUR 1\u00a0000 | 2024 | 2023 |
Payable tax opening balance | 759 | (3\u00a0185) |
Current income tax | 26\u00a0638 | 18\u00a0578 |
Translation | 956 | (278) |
Net tax paid | (27\u00a0299) | (14\u00a0356) |
Payable tax closing balance | 1\u00a0054 | 759 |
Reconciliation of tax expense
EUR 1\u00a0000 | 2024 | 2023 |
Profit before income tax | 88\u00a0753 | 84\u00a0879 |
Expected tax at statutory tax rate\u200c1 | 21\u00a0301 | 20\u00a0371 |
Adjustments in respect of different local tax rates | 2\u00a0318 | 2\u00a0151 |
Share of results of joint ventures | (2\u00a0327) | (1\u00a0645) |
Adjustments in respect of income tax of previous years | 4\u00a0902 | (2\u00a0626) |
Withholding tax, non-refundable | 1\u00a0651 | 1\u00a0107 |
Adjustments in respect of changes to tax rates and regulations | (114) | (853) |
Currency translation effects\u200c2 | (1\u00a0030) | (4\u00a0630) |
Other differences | 503 | 1\u00a0640 |
Income tax expense | 27\u00a0203 | 15\u00a0514 |
Effective income tax rate | 30.7% | 18.3% |
1The Group tax rate has been set to 24% during 2024 (24% in 2023).
2The tax effect on currency valuation is estimated as Elopak ASA tax filling is submitted in NOK against a functional currency in Euro.
Change in deferred tax on items in Other Comprehensive Income/Equity
EUR 1\u00a0000 | 2024 | 2023 |
Remeasurement gain/loss on actuarial gains and losses | 232 | 211 |
Cash flow hedges | (520) | (406) |
Equity transactions | 848 | (409) |
Change in deferred tax on items in Other Comprehensive Income/Equity | 560 | (603) |
Deferred tax
EUR 1\u00a0000 | 2024 | 2023 |
Revaluation of inventories | 12\u00a0454 | 16\u00a0795 |
Payables/receivables | 27\u00a0952 | 23\u00a0538 |
Non-current assets | (20\u00a0662) | (14\u00a0729) |
Fixed assets depreciations | (7\u00a0665) | (7\u00a0927) |
Other current assets | (9\u00a0343) | (17\u00a0971) |
Liquid assets | 28 | - |
Losses available for offsetting against future taxable income | 5\u00a0269 | 9\u00a0427 |
Other differences | (315) | (292) |
Total deferred tax | 7\u00a0717 | 8\u00a0842 |
Deferred tax assets | 22\u00a0295 | 22\u00a0883 |
Deferred tax liabilities | 14\u00a0578 | 14\u00a0041 |
Net deferred assets/liabilities | 7\u00a0717 | 8\u00a0842 |
Deferred tax assets are evaluated at each balance sheet date, and recognized to the extent that it is probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the liability shall be settled or the asset to be realized, based on tax rates and laws that have been enacted or substan-tively enacted at the balance sheet date.
Specification of tax losses carried forward \u2013 country and year of expiry
EUR 1\u00a0000 | After 2026 | Indefinite | Total |
United Kingdom | - | 12\u00a0256 | 12\u00a0256 |
Norway | - | 9\u00a0704 | 9\u00a0704 |
Other | - | 277 | 277 |
Total | - | 22\u00a0237 | 22\u00a0237 |
Tax losses carried forward of EUR 8.6 million are not recognized as a basis for calculating unused tax losses carried forward in net deferred assets/liabilities. The amount not recognized is related to the United Kingdom.
Where transfer pricing adjustments have been made, mutual agreement procedure (MAP) between the affected countries are normally available. See note 2for further details.
In tax disputes, the Group accounts for tax costs according to decisions made by local tax authorities, or according to subsequent tax rulings in the actual case, or similar cases. On March 26, 2025, Elopak ASA lost the dividend distribution case regarding taxation of dividends from Elopak Systems AG to Elopak ASA, formerly Elopak AS. The full tax cost of NOK 69 600 thousand was recognized and paid in accordance with the decision of the tax office in 2017.
OECD Pillar Two, addressing tax challenges from digitalization and globalization, has established a global minimum tax of 15% on large multinationals which includes Elopak. It ensures that multinational enterprises (MNEs) pay at least 15% tax in each jurisdiction and applies a top-up tax if a subsidiary pays below the minimum tax rate.
Elopak works closely with the Ferd Group who owns 44.37% of Elopak for Pillar II reporting purpose, as well as the EU Public Country-By-Country Reporting.
Transitional safe harbour (2024-2026) applies to MNEs during the initial years of Pillar Two. Jurisdictions from full GloBE calculations are exempt if they meet the Effective tax rate test over 15%.
Elopak has identified 3 countries where it operates a corporate income tax rate below 15%. Elopak does not expect any significant effects from the Pillar II for the two entities located in Eastern Europe and a Controlled Foreign Corporation also taxed in Norway at 22%.
Note 10 Discontinued operations
In 2022, the deconsolidation of Russian operations resulted in a purchase price payable over five installments. After its initial recognition, the receivable is evaluated at amortized cost.
In 2023, Elopak received the first installment and part of the second installment. In 2024, Elopak received the third and part of the second installment.
One of Elopak\u2019s former customers in Russia had won a legal claim which was recognized as a part of discontinued operations in 2023.
In 2024, the Russian local court satisfied the customers claim for direct damage and has dismissed the customers claim of loss profit leading to a partial reversal of contingent liability recognized in 2023.
Note 11 Development cost and other intangible assets
Accounting policy
Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally generated intangible asset arising from development is recognized in the statement of financial position if the recognition criteria in IAS 38 are met. After initial recognition the assets are carried at cost less any accumu-lated amortization and impairment losses. See Note 1for impairment of non-financial assets accounting policy.
Development cost and other intangible assets
2024 | ||||
EUR 1\u00a0000 | Customer relations | Development costs | IT-software | Total |
Cost at 1.1 | 26\u00a0469 | 52\u00a0889 | 80\u00a0671 | 160\u00a0029 |
Additions | - | 3\u00a0000 | 2\u00a0801 | 5\u00a0801 |
Disposals | - | (741) | (4\u00a0538) | (5\u00a0278) |
Currency translation | 1\u00a0095 | 2 | 147 | 1\u00a0243 |
Cost at 31.12 | 27\u00a0564 | 55\u00a0151 | 79\u00a0080 | 161\u00a0795 |
Acc. amortization and impairment losses at 1.1 | 8\u00a0560 | 29\u00a0832 | 59\u00a0337 | 97\u00a0729 |
Current year amortization charge | 2\u00a0831 | 4\u00a0520 | 8\u00a0420 | 15\u00a0772 |
Amortization disposals | - | (592) | (4\u00a0538) | (5\u00a0129) |
Currency translation amortization | 389 | - | 103 | 493 |
Currency translation impairment | - | - | 16 | 16 |
Accumulated amortization at 31.12 | 11\u00a0780 | 33\u00a0761 | 62\u00a0747 | 108\u00a0287 |
Net accumulated impairment at 31.12 | - | - | 592 | 592 |
Carrying amount 31.12 | 15\u00a0784 | 21\u00a0390 | 15\u00a0741 | 52\u00a0915 |
Economic life | 0-8 years | 5-10 years | 3-7 years | |
Amortization method | Linear | Linear | Linear |
2023 | ||||
EUR 1\u00a0000 | Customer relations | Development costs | IT-software | Total |
Cost at 1.1 | 26\u00a0183 | 47\u00a0814 | 79\u00a0502 | 153\u00a0499 |
Additions | - | 5\u00a0215 | 1\u00a0415 | 6\u00a0630 |
Disposals | - | (146) | (126) | (272) |
Currency translation | 286 | 6 | (121) | 171 |
Cost at 31.12 | 26\u00a0469 | 52\u00a0889 | 80\u00a0671 | 160\u00a0029 |
Acc. amortization and impairment losses at 1.1 | 5\u00a0698 | 25\u00a0748 | 50\u00a0722 | 82\u00a0168 |
Current year amortization charge | 2\u00a0812 | 4\u00a0084 | 8\u00a0744 | 15\u00a0640 |
Current year impairment charge | - | - | 17 | 17 |
Amortization disposals | - | - | (29) | (29) |
Currency translation amortization | 50 | - | (109) | (59) |
Currency translation impairment | - | - | (9) | (9) |
Accumulated amortization at 31.12 | 8\u00a0560 | 29\u00a0832 | 58\u00a0761 | 97\u00a0152 |
Net accumulated impairment at 31.12 | - | - | 576 | 576 |
Carrying amount 31.12 | 17\u00a0910 | 23\u00a0057 | 21\u00a0334 | 62\u00a0300 |
Economic life | 0-8 years | 5-10 years | 3-7 years | |
Amortization method | Linear | Linear | Linear |
Customer relations include fair value of customer and supply contracts from the acquisition of GLS Elopak and Naturepak Beverage Packaging Ltd in 2022. Customer relations have an estimated economic life of 8 years.
The additions under development costs relate to the development of new filling and production machine technology.
Most of the IT-software are additions related to investments in IT system for management of materials flow and finances. The system roll-out started in 2017 and continued throughout 2024.
Research and development
The cost of research and development not eligible for capitalization which have been expensed in 2024 amounts to EUR 17.0 million. Comparable amount in 2023 was EUR 12.8 million.
Note 12 Goodwill
Accounting policy
Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group\u2019s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units expected to benefit from the synergies of the combination irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impair-ment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
The table below shows the cost value, additions, disposals, impairment charges and carrying value for the various goodwill items in the Group.
Goodwill
EUR 1\u00a0000 | 2024 | 2023 |
Cost at 1.1 | 112\u00a0274 | 111\u00a0181 |
Currency translation | 1\u00a0521 | 1\u00a0093 |
Cost at 31.12 | 113\u00a0795 | 112\u00a0274 |
Accumulated impairment 1.1. | 6\u00a0213 | 6\u00a0223 |
Currency translation impairment | (3) | (9) |
Accumulated impairment at 31.12 | 6\u00a0211 | 6\u00a0213 |
Carrying amount 31.12 | 107\u00a0584 | 106\u00a0061 |
Impairment test for goodwill
Goodwill is allocated to the Group\u2019s cash generating units and is tested for impairment annually or more frequently if there are indications of impairment. Testing for impairment involves the determination of the recoverable amount of the cash generating unit. The recoverable amount is determined by discounting future expected cash flows, based on the business plans for the cash generating units. The discount rate applied to the future cash flow is based on the Group\u2019s weighted average cost of capital (WACC), adapted to the market\u2019s apprehension of the risk factors for each cash generating unit.
Cash generating units
The goodwill items specified above are related to the Elopak Group. Goodwill related to acquisition of Elopak Denmark A/S, Elopak AB, Elofin OY, Variopak and Naturepak Beverage Packing Co.Ltd. are allocated to the cash
generating unit Europe. This CGU, renamed to Elopak EMEA following the acquisition of Naturepak Beverage Packing Co.Ltd. in March 2022, consists of Elopak\u2019s European markets, including the internal production and supply organization and Naturepak Beverage, a leading provider of fresh liquid carton and packaging systems in the MENA region with local production facilities in Morocco and Saudi Arabia. These goodwill items have a carrying value of EUR 104.7 million as of December 31, 2024 (EUR 103.2 million as of December 31, 2023). Goodwill related to the acquisition of GLS Elopak in April 2022 is allocated to a separate cash generating unit as operations are mainly in India (GLS Elopak buys raw materials, produces cartons and sells goods to the customers). This goodwill item has a carrying value of EUR 2.9 million as of December 31, 2024 (EUR 2.8 million as of December 31, 2023).
The basis to consider Elopak EMEA as one cash generating unit is the inherent structure of the market. Customers are merging across borders and are increasingly treating EMEA as one market. The historical requirement from customers to source from specific plants is no longer present. Elopak is adapting to this trend by allocating produc-tion flexibly to the plants in EMEA in order to optimize logistics and production cost. According to this development, the margins along Elopak\u2019s value chain will be subject to change from one year to another, and therefore the appropriate way to assess indicators for impairment for the EMEA business is as one unit.
Impairment test and assumptions
Recoverable amount for the cash generating units Elopak EMEA and GLS Elopak are calculated based on values in use. The cash flows that are basis for the impairment tests are based on assumptions about future sales volumes, selling prices and direct costs. These are uncertain factors. These assumptions are based on historical experience from the markets, adopted budgets and the Group\u2019s expectations of market changes and other financial impacts from climate risks. Upon completion of the impairment tests in 2024 and 2023 the Group does not expect signifi-cant changes in current trade in EMEA and expected future cash flows there are mainly a continuation of observed trends. GLS Elopak is continuing its expansion, relying on a huge and one of the fastest growing carton market in the world.
Calculated recoverable amounts in the impairment tests are higher than carrying amounts, and based on the tests, it is concluded that there is no impairment in 2024 or 2023.
Determined cash flows are discounted with discount rates presented in the table below.
Detailed description of the assumptions used
Discount rate after tax | Discount rate before tax | |||
EUR 1\u00a0000 | 2024 | 2023 | 2024 | 2023 |
Elopak EMEA | 6.5% | 6.9% | 6.9% | 7.4% |
Elopak GLS | 12.5% | 13.1% | 13.1% | 14.1% |
The discount rates reflect the current markets assessment of the risk specific to the cash generating units. The rates are estimated based on the weighted average cost of capital for similar assets in the market. These rates have been further adjusted to reflect the specific risk factors related to the cash generating units, which have not been reflected in the cash flow.
Average growth rate for the future 2 to 5 years period is based on Elopak Group\u2019s expectations for the market development that the business operates in. When estimating future cash flows committed operating efficiency improvement measures are taken into account. Changes in the outcomes for these initiatives may influence future estimated cash flows.
Investment costs necessary to meet expected future growth are taken into account. Based on management\u2019s assessment, the estimated investment costs do not include investments that improve the assets performance. The related cash flows are treated correspondingly.
Management believes that there is no reasonably possible change in any of the key assumptions that would cause the carrying value of the unit to materially exceed its recoverable amount. Sensitivity analysis have been performed based on a 0.5% increase and decrease of the discount rate and perpetual growth. The value in the low end of the range is higher than the carrying amount, hence the sensitivity analysis shows no indication of impairment.
Note 13 Property, plant and equipment
Accounting policy
Capitalized property, plant and equipment are reflected at cost less accumulated depreciation and accumu-lated impairment losses. Property, plant and equipment, other than land and properties under construction, are depreciated over their estimated useful lives, using the straight-line method and taking into consideration any residual values. See Note 1for impairment of non-financial assets accounting policy.
Property, plant and equipment
2024 | ||||
EUR 1\u00a0000 | Landand buildings | Machineryand plant | Officeand transport | Total |
Cost at 1.1 | 54\u00a0692 | 582\u00a0248 | 20\u00a0911 | 657\u00a0851 |
Additions | 370 | 92\u00a0746 | 821 | 93\u00a0937 |
Disposals | (477) | (3\u00a0932) | (488) | (4\u00a0897) |
Transfer to/from inventory / reclassification | 2\u00a0668 | (5\u00a0834) | 2\u00a0176 | (990) |
Currency translation | 589 | 6\u00a0612 | 274 | 7\u00a0476 |
Cost at 31.12 | 57\u00a0843 | 671\u00a0839 | 23\u00a0694 | 753\u00a0376 |
Acc. depreciation and impairment losses at 1.1 | 30\u00a0636 | 406\u00a0249 | 18\u00a0032 | 454\u00a0917 |
Current year depreciation charge | 1\u00a0450 | 29\u00a0186 | 1\u00a0797 | 32\u00a0433 |
Current year impairment charge | 10 | 2\u00a0533 | 25 | 2\u00a0568 |
Depreciation disposals | (476) | (3\u00a0899) | (488) | (4\u00a0863) |
Impairment disposals | - | (15) | - | (15) |
Currency translation | 128 | 2\u00a0980 | 215 | 3\u00a0323 |
Acc. depreciation and impairment losses at 31.12 | 31\u00a0748 | 437\u00a0034 | 19\u00a0581 | 488\u00a0363 |
Carrying amount 31.12 | 26\u00a0095 | 234\u00a0805 | 4\u00a0113 | 265\u00a0013 |
Economic life | 0-40 years | 3-15 years | 3-12 years | |
Amortization method | Linear | Linear | Linear |
The increase in machinery and plant in 2024 is related to the construction of our new production plant in Little Rock, Arkansas
2023 | ||||
EUR 1\u00a0000 | Landand buildings | Machineryand plant | Officeand transport | Total |
Cost at 1.1 | 52\u00a0701 | 556\u00a0880 | 20\u00a0390 | 629\u00a0971 |
Additions | 256 | 34\u00a0198 | 381 | 34\u00a0835 |
Disposals | (434) | (1\u00a0602) | (370) | (2\u00a0406) |
Transfer to/from inventory / reclassification | 2\u00a0475 | (4\u00a0535) | 634 | (1\u00a0426) |
Currency translation | (305) | (2\u00a0694) | (124) | (3\u00a0123) |
Cost at 31.12 | 54\u00a0692 | 582\u00a0248 | 20\u00a0911 | 657\u00a0851 |
Acc. depreciation and impairment losses at 1.1 | 29\u00a0375 | 381\u00a0609 | 17\u00a0012 | 427\u00a0997 |
Current year depreciation charge | 1\u00a0610 | 27\u00a0981 | 1\u00a0453 | 31\u00a0043 |
Current year impairment charge | 164 | 979 | 25 | 1\u00a0168 |
Depreciation disposals | (301) | (1\u00a0072) | (361) | (1\u00a0734) |
Impairment disposals | (132) | (36) | (4) | (172) |
Depreciation transferred to inventory / reclassification | - | (1\u00a0625) | - | (1\u00a0625) |
Currency translation | (80) | (1\u00a0587) | (93) | (1\u00a0760) |
Acc. depreciation and impairment losses at 31.12 | 30\u00a0636 | 406\u00a0249 | 18\u00a0032 | 454\u00a0917 |
Carrying amount 31.12 | 24\u00a0056 | 175\u00a0999 | 2\u00a0879 | 202\u00a0934 |
Economic life | 0-40 years | 3-15 years | 3-12 years | |
Amortization method | Linear | Linear | Linear |
The lease revenues and commitments for Carton filling machines rented to customers as well as the lease expenses and commitments for equipment leased and used in our production are disclosed in Note14.
The company has not pledged property, plant and equipment as security for liabilities.
Property, plant and equipment specified by geographical area\u200c1
EUR 1\u00a0000 | 2024 | 2023 |
Canada | 21 400 | 23 778 |
Denmark | 23 856 | 24 708 |
Germany | 80 286 | 71 065 |
India | 12 910 | 10 593 |
Morocco | 7 949 | 7 492 |
Netherlands | 50 886 | 46 349 |
Norway | 3 057 | 3 779 |
Saudi Arabia | 2 727 | 2 982 |
Ukraine | 3 027 | 3 271 |
United Kingdom | 9 920 | 8 671 |
United States | 48 795 | 59 |
Other | 201 | 186 |
Total | 265 013 | 202 934 |
1The split by geographical area is based on the jurisdiction of legal owner.
Other off-balance sheet commitments and contingencies
EUR 1\u00a0000 | 2024 | 2023 |
Commitments for the acquisition of property, plant and equipment | 28\u00a0330 | 7\u00a0012 |
Note 14 Leases
Accounting policy
The Group as a lessee
The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases and leases of low value assets. For short-term leases and leases of low value assets, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components and instead accounts for any lease and associated non-lease components as a single arrangement. The Group has applied this practical expedient to all classes of right-of-use assets, except for rent of buildings.
The Group as a lessor
The group enters into lease agreements as a lessor with respect to filling machines placed with customers. These leases are classified as finance or operating leases. Whenever the terms of the lease transfer substan-tially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
See Note 1for impairment of non-financial assets accounting policy.
1. The Group as lessor - operating leases
The Group leases out filling machines under operating leases. Rental income was EUR 9.8 million in 2024 compared to 10.0 million in 2023. Lease terms are between 1 year to 10 years. Options to extend the lease term or purchase the leased asset reflect market conditions at the time of exercising the option.
At the reporting date the Group has future minimum lease receivables as follows (undiscounted)
EUR 1\u00a0000 | 2024 | 2023 |
Due within year 1 | 8\u00a0884 | 9\u00a0578 |
Due within year 2 | 6\u00a0818 | 8\u00a0083 |
Due within year 3 | 6\u00a0124 | 6\u00a0329 |
Due within year 4 | 5\u00a0323 | 5\u00a0128 |
Due within year 5 | 3\u00a0757 | 4\u00a0195 |
Due after year 5 | 8\u00a0393 | 7\u00a0652 |
Total | 39\u00a0298 | 40\u00a0965 |
2. The Group as lessor - finance lease receivables
The group leases out filling machines under finance leases. Generally, lease terms are between 5 years to 10 years. Options to extend or purchase the leased asset will normally reflect market pricing.
Amounts receivable under finance leases (undiscounted)
EUR 1\u00a0000 | 2024 | 2023 |
Due within year 1 | 1\u00a0993 | 2\u00a0150 |
Due within year 2 | 2\u00a0019 | 1\u00a0581 |
Due within year 3 | 1\u00a0591 | 1\u00a0493 |
Due within year 4 | 1\u00a0241 | 1\u00a0083 |
Due within year 5 | 1\u00a0107 | 769 |
Due after year 5 | 3\u00a0373 | 1\u00a0684 |
Total receivables under finance leases, undiscounted | 11\u00a0324 | 8\u00a0760 |
Unearned finance income | 2\u00a0306 | 1\u00a0676 |
Total receivables under finance leases, discounted | 9\u00a0017 | 7\u00a0084 |
There is no impairment loss allowance related to the finance lease receivables in 2024 and 2023. Credit risk related to the filling machine lease agreements is considered very low. Credit risk is considered insignificant due to right to require return of the machine in case of default. The average effective interest rate contracted is approximately 6.29% per annum.
The Group as lessee
The Group leases several assets including buildings, plants, cars and filling machines.
Right-of-use assets
December 31, 2024 | ||||
EUR 1\u00a0000 | Property and buildings | Machinery | Office and transport | Total |
Carrying amount 1.1 | 51\u00a0596 | 24\u00a0800 | 9\u00a0974 | 86\u00a0370 |
Additions and adjustments | 513 | 17\u00a0400 | 4\u00a0076 | 21\u00a0989 |
Disposals | - | (18) | (190) | (208) |
Current year depreciation charge | (4\u00a0426) | (7\u00a0521) | (4\u00a0227) | (16\u00a0173) |
Carrying amount at 31.12 | 47\u00a0683 | 34\u00a0661 | 9\u00a0634 | 91\u00a0978 |
December 31, 2023 | ||||
EUR 1\u00a0000 | Property and buildings | Machinery | Office and transport | Total |
Carrying amount 1.1 | 52\u00a0148 | 13\u00a0968 | 10\u00a0668 | 76\u00a0784 |
Additions and adjustments | 3\u00a0896 | 16\u00a0043 | 3\u00a0261 | 23\u00a0200 |
Disposals | (6) | (33) | (111) | (151) |
Current year depreciation charge | (4\u00a0442) | (5\u00a0177) | (3\u00a0844) | (13\u00a0463) |
Carrying amount at 31.12 | 51\u00a0596 | 24\u00a0800 | 9\u00a0974 | 86\u00a0370 |
The Group has one significant purchase options for the purchase of the High Bay warehouse lease agreement. This purchase option can be exercised in 2042 and the purchase price is market value at exercise date. An exercise of the purchase option is not considered to be reasonably certain, hence it is not recognized.
In 2024, expenses related to short-term leases were EUR 0 thousand, expenses related to low value assets were EUR 777 thousand and expenses related to variable payments not included in the measurement of lease liabilities were EUR 209 thousand.
The Group has signed contracts for Tethered Cap and other closure lines with a lease term of 5 years and a nominal value of EUR 20.8 million, which will commence at different stages during 2024.
Lease liabilities
EUR 1\u00a0000 | Note | 2024 | 2023 |
Current lease liabilities | 23\u00a0312 | 23\u00a0096 | |
Non-current lease liabilities | 83\u00a0219 | 78\u00a0424 | |
Total | 106\u00a0531 | 101\u00a0520 |
At the reporting date the Group has lease liabilities as follows (undiscounted)
EUR 1\u00a0000 | 2024 | 2023 |
Due within year 1 | 25\u00a0516 | 25\u00a0505 |
Due within year 2 | 22\u00a0144 | 18\u00a0597 |
Due within year 3 | 19\u00a0318 | 17\u00a0262 |
Due within year 4 | 15\u00a0171 | 14\u00a0637 |
Due within year 5 | 12\u00a0870 | 11\u00a0258 |
Due after year 5 | 61\u00a0981 | 70\u00a0132 |
Total | 157\u00a0001 | 157\u00a0390 |
Note 15 Investment in joint ventures
Accounting policy
A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control; that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.
The results and assets and liabilities of a joint venture company are incorporated in these financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost as adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the equity investee. The statement of comprehensive income reflects the share of the results of operations of the associate (net after tax). Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the joint venture company recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the investment. After application of the equity method the Group determines whether it is necessary to recognise an additional impairment on the individual investments. The Group determines if there are indications of impairment, and if this is the case, the Group calculates the impairment loss as the difference between the recoverable amount of the joint venture and its carrying value.
The investment in the joint ventures specified below have been accounted for in accordance with the equity method of accounting. Lala Elopak S.A. de C.V. is a carton production plant in Mexico selling cartons to Americas. Impresora Del Yaque is a carton production facility in the Dominican Republic also selling cartons to Americas. Elopak Nampak Africa Limited is a sales centre in Kenya, established in 2020, selling cartons to Africa. The investments are joint ventures because the investment partners have the same rights and control in the companies.
Investments in joint ventures
2024 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak NampakAfrica Ltd | Total |
Ownership - and voting share | 49% | 51% | 50% | |
Carrying amount 1.1 | 27\u00a0805 | 10\u00a0163 | (258) | 37\u00a0709 |
Income from joint venture companies | 6\u00a0988 | 2\u00a0707 | - | 9\u00a0696 |
Dividend received | (3\u00a0411) | (2\u00a0209) | - | (5\u00a0620) |
Recognized to equity | 29 | - | - | 29 |
Currency translation | (4\u00a0205) | 184 | - | (4\u00a0021) |
Carrying amount 31.12 | 27\u00a0206 | 10\u00a0845 | (258) | 37\u00a0793 |
2023 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak NampakAfrica Ltd | Total |
Ownership - and voting share | 49% | 51% | 50% | |
Carrying amount 1.1 | 24\u00a0210 | 10\u00a0707 | (244) | 34\u00a0673 |
Income from joint venture companies | 4\u00a0730 | 2\u00a0139 | (14) | 6\u00a0855 |
Dividend received | (4\u00a0004) | (1\u00a0907) | - | (5\u00a0911) |
Recognized to equity | (6) | - | - | (6) |
Currency translation | 2\u00a0874 | (777) | - | 2\u00a0097 |
Carrying amount 31.12 | 27\u00a0805 | 10\u00a0163 | (258) | 37\u00a0709 |
Summarized financial information
2024 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak Nampak Africa Ltd | Total |
Revenue | 94\u00a0795 | 28\u00a0435 | - | 123\u00a0230 |
Operating profit | 16\u00a0034 | 4\u00a0818 | (8) | 20\u00a0845 |
Profit after tax (loss) | 14\u00a0262 | 5\u00a0309 | 1 | 19\u00a0571 |
Other comprehensive income that may be reclassified to net income | (8\u00a0582) | 361 | - | (8\u00a0221) |
Total comprehensive income | 5\u00a0680 | 5\u00a0670 | 1 | 11\u00a0350 |
Current assets | 53\u00a0849 | 20\u00a0265 | 137 | 74\u00a0250 |
Non-current assets | 14\u00a0442 | 3\u00a0428 | 1 | 17\u00a0870 |
Current liabilities | 16\u00a0476 | 2\u00a0426 | 86 | 18\u00a0988 |
Non-current liabilities | 2\u00a0166 | - | 567 | 2\u00a0733 |
Equity | 49\u00a0648 | 21\u00a0266 | (516) | 70\u00a0399 |
Group\u2019s share of profit after tax (loss) | 6\u00a0988 | 2\u00a0707 | - | 9\u00a0696 |
2023 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak Nampak Africa Ltd | Total |
Revenue | 95\u00a0362 | 24\u00a0703 | 21 | 120\u00a0086 |
Operating profit | 13\u00a0281 | 4\u00a0267 | (29) | 17\u00a0519 |
Profit after tax (loss) | 9\u00a0653 | 4\u00a0195 | (28) | 13\u00a0820 |
Other comprehensive income that may be reclassified to net income | 5\u00a0866 | (1\u00a0523) | - | 4\u00a0342 |
Total comprehensive income | 15\u00a0518 | 2\u00a0672 | (28) | 18\u00a0163 |
Current assets | 52\u00a0932 | 18\u00a0786 | 125 | 71\u00a0842 |
Non-current assets | 16\u00a0255 | 3\u00a0053 | 1 | 19\u00a0309 |
Current liabilities | 16\u00a0234 | 1\u00a0911 | 75 | 18\u00a0221 |
Non-current liabilities | 2\u00a0969 | - | 567 | 3\u00a0536 |
Equity | 49\u00a0984 | 19\u00a0928 | (517) | 69\u00a0395 |
Group\u2019s share of profit after tax (loss) | 4\u00a0730 | 2\u00a0139 | (14) | 6\u00a0855 |
Note 16 Other non-current assets
EUR 1\u00a0000 | 2024 | 2023 |
Contract assets | 2\u00a0443 | 3\u00a0311 |
Non-current finance lease receivables (Note14) | 6\u00a0862 | 5\u00a0113 |
Financial instruments (Note24) | 1\u00a0086 | 3\u00a0521 |
Other non-current assets | 2\u00a0721 | 2\u00a0948 |
Carrying amount 31.12 | 13\u00a0111 | 14\u00a0892 |
Note 17 Inventory
Accounting policy
Cost is calculated using the FIFO cost formula for cartons, filling machines and spare parts.
Inventory
2024 | ||||
EUR 1\u00a0000 | Raw materials | Work in progress | Finished goods | Total |
Cost 31.12 | 30\u00a0915 | 97\u00a0696 | 81\u00a0983 | 210\u00a0594 |
Write down 01.01 | (3 558) | (19) | (7 736) | (11 313) |
Realised | (5) | - | 122 | 117 |
Write down | 108 | - | (1 571) | (1\u00a0463) |
Write down per 31.12. | (3\u00a0455) | (19) | (9 185) | (12 660) |
Carrying amount 31.12 | 27\u00a0460 | 97\u00a0677 | 72\u00a0798 | 197\u00a0935 |
2023 | ||||
EUR 1\u00a0000 | Raw materials | Work in progress | Finished goods | Total |
Cost 31.12 | 27\u00a0621 | 93\u00a0456 | 82\u00a0424 | 203\u00a0502 |
Write down 01.01 | (3\u00a0755) | (19) | (7\u00a0100) | (10\u00a0874) |
Realised | 291 | - | 424 | 715 |
Write down | (93) | - | (1\u00a0060) | (1\u00a0153) |
Write down per 31.12. | (3\u00a0558) | (19) | (7\u00a0736) | (11\u00a0313) |
Carrying amount 31.12 | 24\u00a0063 | 93\u00a0437 | 74\u00a0688 | 192\u00a0188 |
Note 18 Trade receivables and other current assets
Accounting policy
Trade and other receivables that are held to collect contractual cash flows only and the contractual cash flows are solely principal and interest are measured at amortised cost using the effective interest method, less any impairment. Short-term receivables are measured at nominal values reduced by appropriate allow-ances for expected credit losses.
Accounts receivables which are subject to non-recourse factoring are classified as instruments held to collect contractual cash flows and for sale and are measured at fair value through other comprehensive income until they are derecognised.
See Note 1for non-derivative financial instruments accounting policy.
Impairment of financial assets
The loss allowance for expected credit losses is mostly related to individual assessments and is recognised for financial asset measured at amortised cost or fair value through OCI, contract assets under IFRS 15, lease receivables under IFRS 16 and certain written loan commitments and financial guarantee contracts. Loss allowance is assessed at each reporting day. Loss allowances for trade receivables, contract assets and lease receivables that do not contain a significant financing component are measured at an amount equals to lifetime expected credit losses. Loss allowances for trade receivables, contract assets and lease receivables that do contain a significant financing component are measured at an amount equals to the lifetime expected credit losses including interest revenues. When there is no objective evidence of impairment, interest reve-nues are calculated based on gross carrying amount, otherwise interests are calculated based on the net carrying amount. The amount of the loss is recognised in profit or loss. In case of changes to expected credit losses in a subsequent period, the previously recognised impairment loss is reversed to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss is recognised in profit or loss.
Trade receivables
EUR 1\u00a0000 | 2024 | 2023 |
Accounts receivable, gross | 125\u00a0963 | 115\u00a0000 |
Allowances | (5\u00a0737) | (4\u00a0758) |
Carrying amount 31.12 | 120\u00a0226 | 110\u00a0243 |
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
2024 | |||
EUR 1\u00a0000 | Gross carrying amount | Loss rate | Expectedcredit loss |
Current | 100\u00a0558 | 3.3% | 3\u00a0325 |
Up to 7 days | 6\u00a0446 | - | 2 |
Up to 30 days | 8\u00a0415 | 0.1% | 8 |
30-60 days | 3\u00a0298 | 2.3% | 77 |
60-90 days | 1\u00a0187 | 3.5% | 41 |
Over 90 days | 6\u00a0058 | 37.7% | 2\u00a0283 |
Total | 125\u00a0963 | 4.6% | 5\u00a0737 |
2023 | |||
EUR 1\u00a0000 | Gross carrying amount | Loss rate | Expectedcredit loss |
Current | 96\u00a0131 | 3.3% | 3\u00a0218 |
Up to 7 days | 7\u00a0863 | - | - |
Up to 30 days | 4\u00a0292 | 0.3% | 13 |
30-60 days | 2\u00a0228 | 0.3% | 6 |
60-90 days | 1\u00a0102 | 0.1% | 1 |
Over 90 days | 3\u00a0383 | 44.9% | 1\u00a0519 |
Total | 115\u00a0000 | 4.1% | 4\u00a0758 |
Movement in the allowance for expected credit losses of trade receivables
EUR 1\u00a0000 | 2024 | 2023 |
As at 1.1 | 4\u00a0758 | 4\u00a0045 |
Change in provision for expected credit losses | 934 | 473 |
Change in write-off | (36) | (98) |
Foreign exchange movement | 81 | 338 |
Carrying amount 31.12 | 5\u00a0737 | 4\u00a0758 |
Other current assets
EUR 1\u00a0000 | 2024 | 2023 |
Project income earned, not invoiced | 39 112 | 44 643 |
Prepaid support | 1 939 | 1 832 |
Contract assets | 41 051 | 46 475 |
Prepayments and accrued expenses | 24 792 | 20 519 |
V.A.T. receivable | 27 776 | 20 820 |
Accrued income tax receivables | 4 240 | 6 238 |
Financial instruments | 714 | 1 064 |
Finance leasing receivable short-term | 2 156 | 1 971 |
Other current receivables | 17 779 | 16 632 |
Carrying amount 31.12\u200c1 | 118 508 | 113 720 |
1Contract assets consist of prepaid rebates to customers which will be offset against contracted future sales of carton and closures. Total of prepaid support was EUR 4.4 million in 2024 and 5.1 million in 2023. Based on customer knowledge and experience of very few losses, the credit risk related to prepaid support is considered insignificant.
Note 19 Equity and shareholders information
Elopak ASA was established with share capital of NOK 376\u00a0906\u00a0620 (EUR 50\u00a0155\u00a0321) and the total number of shares outstanding for Elopak ASA was 269\u00a0219\u00a0014, each with a face value of NOK 1.4 (EUR 0.19). At December 31, 2024, the company has a share capital of NOK 376 587 901 (EUR 50\u00a0112\u00a0977) and the total number of shares outstanding for Elopak ASA is 268\u00a0991\u00a0358, each with a face value of NOK 1.4 (EUR 0.19).
Treasury shares / Share-based bonus
Elopak ASA\u2019s ordinary general meeting on May 13, 2024 approved a share buy-back program for the repurchase of up to NOK 37\u00a0690\u00a0662, meaning up to 26.9 million shares at nominal value of NOK 1.40/share. The shares acquired under the share buy-back program will be used to meet the Company\u2019s obligations towards employees who partici-pate in the Company\u2019s long-term incentive plan. As of December 31, 2024, the balance of treasury shares is 227\u00a0656. The treasury share capital is EUR 43 thousand and the treasury share premium is EUR 795 thousand.
Dividend
The Board approved a dividend of NOK 1.46 per share for the financial year 2023 on May 13, 2024. The dividend payment was EUR 34.4 million based on 269\u00a0219\u00a0014 outstanding shares, of which EUR 20.2 million was paid to Ferd AS. The Board of Directors will propose to the Annual General Meeting a dividend of EUR 0.13 per share for the financial year 2024.
Share capital
2024 | |||
Number of shares | Ordinaryshares issued | Treasuryshares | Ordinary shares outstanding |
Shares at 1.1 | 269\u00a0219\u00a0014 | (267\u00a0344) | 268\u00a0951\u00a0670 |
Treasury shares purchased | - | (500\u00a0000) | (500\u00a0000) |
Treasury shares re-issued | - | 539\u00a0688 | 539\u00a0688 |
Shares at 31.12 | 269\u00a0219\u00a0014 | (227\u00a0656) | 268\u00a0991\u00a0358 |
2023 | |||
Number of shares | Ordinaryshares issued | Treasuryshares | Ordinary shares outstanding |
Shares at 1.1 | 269\u00a0219\u00a0014 | (5\u00a0519) | 269\u00a0213\u00a0495 |
Treasury shares purchased | - | (410\u00a0540) | (410\u00a0540) |
Treasury shares re-issued | - | 148\u00a0715 | 148\u00a0715 |
Shares at 31.12 | 269\u00a0219\u00a0014 | (267\u00a0344) | 268\u00a0951\u00a0670 |
Basic and diluted earnings per share
(EUR 1\u00a0000, except number of shares) | 2024 | 2023 |
Profit attributable to Elopak shareholders | 60\u00a0912 | 67\u00a0061 |
Issued ordinary shares at beginning of period, adjusted for share split in the period | 268\u00a0951\u00a0670 | 269\u00a0213\u00a0495 |
Effect of shares issued | 36\u00a0548 | (62\u00a0416) |
Weighted-average number of ordinary shares in the period | 268\u00a0988\u00a0218 | 269\u00a0151\u00a0079 |
Basic and diluted earnings per share attributable to Elopak shareholders (in EUR) | 0.23 | 0.25 |
The Group\u2019s top 20 shareholders
The 20 largest shareholders from the shareholder register\u200c1
Shareholder\u2019s name | Total shareholding |
Ferd AS\u200c2 | 44.37% |
Mizuho Trust & Banking (Lux.) S.A. | 5.05% |
Folketrygdfondet | 4.37% |
Pareto Asset Management AS | 2.32% |
Verdipapirfondet Alfred Berg Gamba | 1.95% |
The Northern Trust Comp, London Br | 1.81% |
DNB Asset Management AS | 1.75% |
The Bank of New York Mellon SA/NV | 1.65% |
Morgan Stanley & Co. International | 1.51% |
Caceis Bank | 1.43% |
Fj\u00e4rde AP-fonden | 1.41% |
Brown Brothers Harriman (Lux.) SCA | 1.24% |
The Bank of New York Mellon SA/NV | 1.07% |
Verdipapirfondet Alfred Berg Norge | 0.89% |
BNP Paribas | 0.81% |
Skagen Vekst Verdipapirfond | 0.79% |
Verdipapirfondet KLP Aksjenorge | 0.77% |
Caceis Bank | 0.65% |
Bank Pictet & Cie (Europe) AG | 0.62% |
State Street Bank and Trust Comp | 0.61% |
1Source: VPS share register.
2Elopak ASA is a subsidiary of Ferd AS and is consolidated within their consolidated financial statements which can be found on their website.
The 20 largest shareholders beneficial ownership\u200c3
Shareholder\u2019s name | Total shareholding |
Ferd AS | 44.37% |
Nippon Paper Industries co | 5.05% |
Folketrygdfondet | 4.37% |
Alfred Berg Kapitalforvaltning | 4.11% |
DNB Asset Management AS | 2.84% |
Pareto Asset Management | 2.36% |
Artemis Investment Management | 2.04% |
Fidelity International (FIL) | 1.93% |
Fj\u00e4rde AP-fonden | 1.41% |
Ind\u00e9pendance et Expansion AM S.A. | 1.21% |
Arctic Fund Management | 1.07% |
ODDO BHF Asset Management | 0.88% |
Skagen Fonder | 0.79% |
KLP Kapitalforvaltning AS | 0.77% |
Pictet Asset Management | 0.57% |
Forsvarets Personellservice | 0.57% |
Storebrand Asset Management | 0.56% |
UBS Global Asset Management | 0.51% |
Ruth Asset Management | 0.50% |
SR-Forvaltning AS | 0.47% |
3The shareholder analysis is provided by Modular Finance. The data is compiled through multiple sources including VPS, Morningstar, reports, and press releases. Whilst every reasonable effort is made to verify all data, neither Modular Finance nor Elopak can guarantee that the analysis is complete.
The Executive team own directly, or indirectly the following number of shares in the Group
Executive team | Total number of shares |
Thomas K\u00f6rmendi, Chief Executive Officer | 502\u00a0175 |
Bent Kilsund Axelsen, Chief Financial Officer | 213\u00a0895 |
Ivar Jevne, EVP Packaging and Procurement\u200c1 | 358\u00a0535 |
Dag Gr\u00f6nevik, EVP Equipment and Service | 33\u00a0282 |
Nete Bechmann, Chief Human Resource Officer | 52\u00a0515 |
Stephen Naumann, Executive Vice President Region Europe North and CIS | 207\u00a0722 |
Lionel Ettedgui, Executive Vice President Region Americas | 149\u00a0755 |
Finn Morten T\u00f8rjesen, Executive Vice President Region Europe South and New Markets | 110\u00a0455 |
Thea Corwin Brist\u00f8l, Chief Marketing and Communication Officer | 1\u00a0565 |
Ivan Ferrini, EVP Packaging and Procurement | - |
Uwe Schulze, EVP Product and Development | - |
Total | 1\u00a0629\u00a0899 |
1Retired 31.12.2024
Note 20 Employee retirement benefit plans
Defined contribution plans
The Group operates defined contribution pension plans where the plans are held separately from those of the Group in funds under control of trustees. The only obligation of the Group is to make the specified contributions.
Defined benefit plans
The Group also runs pension plans that grant the employees a right to defined future benefits. The benefits are mainly dependent on years of service, the level of salary at age of retirement and size of contributions from the national insurance. The obligations are partly covered through insurance companies. Elopak has unfunded retiree medical insurance plans for certain of its employees located in the United States.
Pension liability
EUR 1\u00a0000 | 2024 | 2023 |
Defined benefit obligations | (2\u00a0221) | (2\u00a0502) |
Net pension liability | (2\u00a0221) | (2\u00a0502) |
Pension expense
EUR 1\u00a0000 | 2024 | 2023 |
Defined benefit plans net | (110) | (99) |
Defined contribution plans | (11\u00a0140) | (9\u00a0996) |
Total pension expenses | (11\u00a0250) | (10\u00a0095) |
Defined benefit plans are subject to actuarial calculations. The estimated pension cost for pension benefit plans in 2024 is EUR 110 thousand and in 2023 is EUR 99 thousand.
Note 21 Interest-bearing loans and borrowings
Accounting policy
See Note 1for non-derivative financial instruments accounting policy.
Interest-bearing loans and borrowings
2024 | 2023 | |||
EUR 1\u00a0000 | Available | Utilised | Available | Utilised |
Current interest bearing liabilities | 57\u00a0117 | 30 383 | 56\u00a0857 | 19\u00a0333 |
Non-current interest bearing liabilities | 259\u00a0740 | 224\u00a0433 | ||
Bonds | 230 591 | |||
Long-term credit facilities from banks | 210 000 | 29 150 | 400 000 | 224 433 |
Total | 290 123 | 243\u00a0767 |
Repayment profile
EUR 1\u00a0000 | 2024 | 2023 |
2024 | - | 19\u00a0333 |
2025 | 30 383 | 225\u00a0000 |
2026 | - | - |
2027 | 63\u00a0791 | - |
2028 | - | - |
2029 | 153\u00a0175 | - |
2030 | - | - |
2031 | 43\u00a0625 | - |
Total | 290 974 | 244\u00a0333 |
Weighted average interest rates on long term loans
2024 | 2023 | ||||
EUR 1\u00a0000 | Rate | In Ccy | In EUR | In Ccy | In EUR |
EUR | 4.94% | 30\u00a0000 | 30\u00a0000 | 225\u00a0000 | 225\u00a0000 |
NOK | 5.87% | 2\u00a0719\u00a0816 | 230\u00a0591 | - | - |
Total | 260\u00a0591 | 225\u00a0000 |
The values above are gross amounts excluding amortised borrowing costs.
Elopak has issued senior unsecured green bonds with a total amount of NOK 2.7 billion. The issue is split into 3 tranches of 3, 5 and 7 year. The settlement date is May 28 of the maturity year. The bonds have been swapped to floating Euribor. The green bonds are initially recognized at cost, being the fair value of the consideration received net of incremental cost, and subsequently measured at amortized cost using the effective interest method. The cross-currency swaps are recognized as financial income or financial expense in profit or loss in line with accounting policy in Note24.
The long term loans are drawn under a EUR 210 million multi currency revolving credit facility. The facility is available until June 2029. Amounts are shown net of prepaid transaction costs. Changes to the Groups debt profile reflect changes in the functional currency of entities within the Group.
Elopak has one financial covenant related to the syndicate facility, Net Interest Bearing Debt divided by 12 month rolling EBITDA. Elopak is in compliance with the covenant as of 31 December 2024, and expects to be compliant with all bank covenants under the syndicate loan agreement for the foreseeable future.
Elopak has a Supply Chain Financing arrangement towards the largest suppliers to optimize working capital.
Accounts receivables factoring facilities
EUR 1\u00a0000 | Available | 2024 | Available | 2023 |
Non-recourse | 178\u00a0455 | 45\u00a0275 | 180\u00a0141 | 45\u00a0010 |
Total | 45\u00a0275 | 45\u00a0010 |
Elopak factors its receivables in the ordinary course of business.
Note 22 Other current liabilities
EUR 1\u00a0000 | 2024 | 2023 |
Provisions | 2\u00a0916 | 3\u00a0343 |
Accrued expenses | 85\u00a0942 | 70\u00a0330 |
Derivatives (Note24) | 4\u00a0866 | 8\u00a0231 |
Prepaid from customers | 42\u00a0032 | 38\u00a0636 |
Total | 135\u00a0756 | 120\u00a0540 |
Note 23 Capital management
Elopak\u2019s level of capital and how this is managed relate closely to the company\u2019s risk profile and the company\u2019s ability to withstand turbulent times. The main objectives when Elopak assesses its capital management is to mini-mize financing costs, while maintaining adequate liquidity and flexibility for short-term liquidity needs and M&A activities. Elopak\u2019s financial guiding is to pay out dividends equal to 50% - 60% of normalised net profits.
All financing activities are managed by the central Treasury at the parent company level. The capital needs of Elopak subsidiaries are mainly covered by granting internal loans or by equity injection where applicable. The short-term liquidity needs of Elopak group companies are managed at group level through the Elopak internal bank and cash-pooling. The financial guiding also targets constantly that the company reduces its gearing ratio and to be ~2.0x EBITDA on a mid-term basis.
The financial covenants under Elopak\u2019s Revolving Credit Facility are limited to a maximum gearing ratio (Net Interest Bearing Debt/EBITDA) of 4.15x. There are no financial covenants applicable to the NOK bonds issued in 2024.
Note 24 Financial risk management
Accounting policy
The Group uses derivative financial instruments to hedge its risks to interest rate, foreign exchange rate and raw material fluctuations arising from operational, financing and investment activities. In accordance with its Treasury policy, the Group does use derivative financial instruments for trading purposes. The derivative financial instruments are measured at fair value.
Hedge accounting is applied for cash flow hedges and fair value hedges when hedging criteria are met. Recognition of any resultant gain or loss depends on the nature of the hedging relationship. The Group designates certain derivatives as either hedge of highly probable forecast transactions or hedge of foreign currency risk of firm commitments (cash flow hedges) or hedge of the fair value of recognised assets or liabilities or firm commitments (fair value hedges).
For cash flow hedges foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised directly in other comprehensive income, while any foreign exchange gains or losses relating to the ineffective portion are recognised in the income statement. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged. The derivative is also measured at fair value, and gains and losses from both the hedging instrument and the hedged item are recognised in the income statement.
Hedge effectiveness is assessed at inception and verified on a regular basis, and hedge accounting is discon-tinued if the hedge no longer meets the hedge accounting.
Any gains or losses arising from changes in fair value on derivative financial instruments that are not cash flow hedges or fair value hedges are recognized in the income statement as financial income or expense.
Balance sheet management
Elopak aims to maintain a solid balance sheet with a mid-term leverage target of ~2.0x to ensure financial flexibility and cost-efficient funding. The Group manages the balance sheet through an annual budgeting process followed by performance management and rolling forecasting updates to ensure financial flexibility and liquidity for the Group. The capital structure provides a good balance between shareholder return and a solid balance sheet. The Group\u2019s
main financial covenant under its syndicated revolving credit facility, Net Interest Bearing Debt divided by 12 month rolling EBITDA, is monitored to ensure compliance at all times.
Financial risk policy
Elopak Treasury is responsible for financial risk management for the Group, including liquidity management, interest rate risk, managing foreign exchange risk, credit risk and capital management. Risk management activities are governed by appropriate policies and procedures approved by the Board of Directors. Risks are identified, measured and managed in accordance with the Group\u2019s policies and risk objectives. It is the Group\u2019s policy that no trading in derivatives for speculative purposes shall be undertaken. There were no principal changes in the Group\u2019s approach to capital management during the years ending 31 December 2024 and 31 December 2023.
Categories of financial risk to operational business
1. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency risk, commodity price risk and interest rate risk. Elopak buys derivatives to manage market risks and seeks to apply hedge accounting to manage volatility in profit or loss. Hedge accounting is applied to all currency and commodity derivatives, while interest rate and cross-currency derivatives are not subject to hedge accounting.
Derivatives
December 31, 2024 | December 31, 2023 | |||||
EUR 1\u00a0000 | Assets | Liabilities | Total | Assets | Liabilities | Total |
Currency derivatives | 75 | 8\u00a0895 | (8\u00a0819) | 904 | 7\u00a0398 | (6\u00a0494) |
Commodity derivatives | 32 | 631 | (599) | 31 | 2\u00a0408 | (2\u00a0377) |
Interest derivatives | 1\u00a0693 | 3\u00a0007 | (1\u00a0315) | 3\u00a0650 | 2\u00a0105 | 1\u00a0545 |
Total | 1\u00a0800 | 12\u00a0533 | (10\u00a0733) | 4\u00a0585 | 11\u00a0911 | (7\u00a0326) |
The full fair value of a derivative is classified as \u201cOther non-current assets\u201d or \u201cOther non-current liabilities\u201d if the remaining maturity of the derivative is more than 12 months and as \u201cOther current assets\u201d or \u201cOther current liabilities\u201d, if the maturity of the derivative is less than 12 months. The fair value estimation of derivative finan-cial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than
unadjusted quoted prices for identical assets and liabilities, with changes in fair value are therefore recognized in the income statement.
Where eligible, derivatives used for hedging are designated in cash flow hedge accounting relationships.
Exchange rate risk
The Group is exposed to changes in the value of EUR relative to other currencies. Elopak\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign operations and net investments in foreign subsid-iaries. The carrying amount of the Group\u2019s net investments in foreign entities and proceeds from these investments varies with changes in the foreign exchange rate. The Group\u2019s net income is affected by currency fluctuations, as the profit and losses from foreign operations are translated into EUR using average exchange rates for the period.
The carrying amounts of Elopak ASA\u2019s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
Assets | Liabilities | |||
Currency | 2024 | 2023 | 2024 | 2023 |
BGN | 438 | 241 | 265 | 246 |
CAD | 134\u00a0930 | 96\u00a0376 | 164\u00a0864 | 64\u00a0044 |
CHF | 3\u00a0451 | 4\u00a0800 | 3\u00a0418 | 4\u00a0771 |
CZK | 63\u00a0326 | 62\u00a0929 | 63\u00a0178 | 62\u00a0821 |
DKK | 3 263 500 | 2\u00a0809\u00a0965 | 3\u00a0337\u00a0774 | 2\u00a0889\u00a0442 |
EUR | 840\u00a0974 | 86\u00a0393 | 901 160 | 750\u00a0783 |
GBP | 39 729 | 32\u00a0760 | 40\u00a0111 | 32\u00a0821 |
HUF | 940\u00a0869 | 863\u00a0797 | 454\u00a0357 | 449\u00a0243 |
NIS | - | - | 9 | 9 |
JPY | 4\u00a0158\u00a0712 | 2\u00a0814\u00a0818 | 6\u00a0284\u00a0200 | 6\u00a0493\u00a0463 |
MXN | 66\u00a0571 | 66\u00a0521 | 62\u00a0313 | 62\u00a0304 |
NOK | 2 902 889 | 2\u00a0537\u00a0714 | 5\u00a0723\u00a0572 | 2\u00a0548\u00a0400 |
PLN | 101 059 | 79 545 | 99 165 | 78 552 |
RUR | 1 889 318 | 1 889 323 | 1 888 920 | 1 888 924 |
SEK | 361 121 | 260 590 | 369 341 | 274 466 |
USD | 269 853 | 63 043 | 209 431 | 83 515 |
Foreign exchange risk related to foreign operating activities, such as payments of salaries and personnel and corporate tax in foreign currencies, managed by hedging cash flows that are considered highly probable over the next 18 months, using a layered hedging strategy.
Foreign exchange risk related to procurement of filling machines are hedged at a one-to-one basis (100% coverage at the specified date of payment). The entire green bonds in NOK have been economically hedged through cross-currency swaps converting the liabilities to EUR. The residual translation risk relates to inconsistencies in the accounting measurement between the NOK bonds, measured at amortized cost using the effective interest method, and the cross-currency swaps, measured at fair value through profit and loss.
Hedge accounting is applied to all foreign exchange derivatives, provided all hedging criteria are met. Hedge accounting is designated at the date of recognition of the hedged item, however the derivatives are due at the date of expected payment. At designation, the fair value of the hedging derivatives is recycled from Hedge reserve to the hedged item (i.e. filling machine recognised in inventory), and to profit or loss to the same accounting line and at the same time as the hedged item is recognised to profit or loss.
Outstanding derivatives
Outstanding FX derivatives
Nominal amount | December 31, 2024 | December 31, 2023 | ||
Currency | Ccy | EUR | Ccy | EUR |
CAD | - | - | 7\u00a0749 | 5\u00a0292 |
EUR | (62\u00a0694) | (62\u00a0694) | (89\u00a0952) | (89\u00a0952) |
JPY | 6\u00a0410\u00a0567 | 39 314 | 10\u00a0358\u00a0989 | 66\u00a0264 |
NOK | 290\u00a0700 | 24 646 | 388\u00a0197 | 34\u00a0536 |
USD | (6\u00a0749) | (6 496) | (27\u00a0740) | (25\u00a0104) |
Total nominal value | (5 230) | (8\u00a0965) | ||
Total fair value | (4\u00a0761) | (6\u00a0494) |
Positive numbers represent purchases
Outstanding CCS derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
Currency | Notional EUR | Fair value | Notional EUR | Fair value |
EURNOK | 232\u00a0233 | (4\u00a0058) | ||
Total | (4\u00a0058) |
Positive numbers represent derivative assets
Exchange rate risk sensitivity
The Group calculates the sensitivity on the change in fair value on foreign exchange and cross currency derivatives of a defined change in the foreign exchange rates relative to EUR, with all other variables being held constant. This is shown in the table below:
Foreign exchange contracts and cross currency swaps
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
+5% | (16\u00a0074) | (5\u00a0932) | (5\u00a0022) | (10\u00a0872) | |
(5%) | 8\u00a0240 | (234) | (2\u00a0597) | (427) |
The impact on the Group\u2019s equity is due to changes in the fair value of foreign exchange derivatives designated as cash flow hedges. The cross-currency derivatives are not subject to hedge accounting, however economically fully hedge the NOK bond foreign exchange exposure through converting the liabilities to floating Euribor.
Financial instruments designated as cash flow hedges
As of 31 December 2024 and 2023, all material foreign exchange derivatives positions are designated cash flow hedges.
Interest risk
Elopak is exposed to fluctuations in interest rates through funding and cash management activities. Changes in interest rates affect the fair value of assets and liabilities. Interest income and interest expense in the income
statement are influenced by changes in interest rates in the market. To manage this risk, the Group maintains a portion of its borrowings at fixed rates of interest by entering interest rate swaps. The fixed rate green bond has been converted to floating Euribor through cross-currency swap. These interest rate and cross currency swaps are designated to hedge underlying debt obligations; however, they are not subject to hedge accounting.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Currency | Notional EUR | Fair value | Notional EUR | Fair value |
Interest | EUR | 180\u00a0000 | (1\u00a0315) | 150\u00a0000 | 1\u00a0545 |
Total | (1\u00a0315) | 1\u00a0545 |
Positive numbers represent derivative assets
Interest rate risk sensitivity
Elopak calculates the sensitivity on the change in fair value on interest rate swaps of a defined parallel shift in the interest rate curve of the relevant currencies, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Interest rate swaps | +1% | 6\u00a0102 | 4\u00a0417 | ||
(1%) | (6\u00a0437) | (4\u00a0642) |
The interest rate derivatives are not subject to hedge accounting.
Commodity price risk
Elopak\u2019s operating activities require a continuous supply of aluminium and polyethylene. Based on a 12-month forecast of requirements the Group manages the commodity price risk by hedging the purchase price of the commodity with the use of commodity price swaps. Hedge accounting is applied for all commodity derivatives. The Group policy states that minimum 60% of our closed commodity position in the current customer price validity period should be hedged, financially or commercially.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
EUR 1\u00a0000 | Metric Tonnes | Fair value | Metric Tonnes | Fair value |
Polyethylene | 15\u00a0000 | (631) | 15\u00a0000 | (2\u00a0408) |
Aluminium | 2 400 | 32 | 3\u00a0960 | 31 |
Total | (599) | (2\u00a0377) |
Positive numbers represent derivative assets
Commodity risk sensitivity
The Group calculates the sensitivity on the change in fair value on commodity derivatives of a defined change in the commodity price, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Commodity swaps | +5% | 1\u00a0659 | 1\u00a0604 | ||
(5%) | (1\u00a0659) | (1\u00a0604) |
2. Liquidity risk
Elopak\u2019s objective is to maintain a balance between continuity of funding, and flexibility through the use of a long-term syndicated revolving credit facility and overdraft facilities connected to Elopak ASA\u2019s cash pools. To the extent permissible by local rules and regulations, subsidiaries owned 90% or more, participate in Elopak ASA\u2019s cash pool. Elopak ASA shall have sufficient sources of liquidity to cover expected operational liquidity needs for the next 12 months. Liquidity requirements to fund acquisitions is considered separately.
The maturity profile of the Group\u2019s financial assets and liabilities based on contractual undiscounted payments is summarised below. The tables only show balance sheet items classified as financial instruments and do not include other balance sheet items affecting liquidity, such as inventories. Also, off-balance sheet items such as unused credit facilities are not included. The derivative instruments may be settled gross or net with the relevant protocol being reflected in the tables.
Contractual maturities of financial liabilities, including estimated interest payments
Non-derivatives financial liabilities
EUR 1\u00a0000 | Note | Carrying value | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal |
Loans and borrowings | 290 123 | 30 383 | 63 791 | 153 175 | 43 625 | 290 974 | |
Accounts payable | 73 304 | 73 304 | - | - | - | 73 304 | |
Other liabilities | 196 726 | 126 160 | 25 456 | 19 665 | 25 444 | 196 726 | |
Total | 560 153 | 229 847 | 89 247 | 172 840 | 69 069 | 561 004 |
Derivatives financial instruments
EUR 1\u00a0000 | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal | |
FX | 4 421 | 404 | - | - | 4 825 | |
IRS | - | - | 1 995 | 1 013 | 3 007 | |
Commodities | 631 | - | - | - | 631 | |
CCS | - | 1 148 | 2 331 | 590 | 4 070 | |
Total | 5 051 | 1 552 | 4 326 | 1 603 | 12 533 |
3. Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Elopak has adopted a policy of only being exposed to credit-worthy counterparties, based upon independent credit analysis for all counterparties, where available. In the cases where this is not available, Elopak uses other publicly avail-able financial information and its own trading records to assess creditworthiness. Outstanding receivables are monitored regularly.
4. Hedge accounting
Cash flow hedge accounting is applied to hedges of foreign currency risk and commodity price risk. The economic relationship between the hedged item and the hedging instrument is determined through critical terms matching for the purpose of assessing hedge effectiveness. The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair values of cash flow hedging instruments related to hedged transactions that have not yet occurred. Movements in the cash flow hedge reserve are detailed in the table below:
Contracts
EUR 1\u00a0000 | Opening position | Movement | 2024 | Opening position | Movement | 2023 |
Commodity price hedges | (2\u00a0377) | 1\u00a0778 | (599) | (3\u00a0318) | 942 | (2\u00a0377) |
Currency hedges | (3\u00a0048) | (530) | (3\u00a0578) | (176) | (2\u00a0872) | (3\u00a0048) |
Currency translation | - | - | - | - | - | - |
Tax effect | 1\u00a0150 | (275) | 875 | 737 | 413 | 1\u00a0150 |
Total | (4\u00a0275) | 973 | (3\u00a0302) | (2\u00a0758) | (1\u00a0517) | (4\u00a0275) |
The movement in the hedge reserve includes gains/(losses) transferred from the cash flow hedge reserve into the income statement during the period. Foreign exchange forwards and commodities hedge maturities are disclosed in note 24.2Liquidity Risk, which is representative of when the hedge reserve in equity will be recycled to the statement of comprehensive income. These are included in the following line items in the income statement.
Movement in hedge reserve
EUR 1\u00a0000 | 2024 | 2023 |
Cost of goods sold | 1\u00a0834 | (1\u00a0673) |
Other operating expenses | 705 | (1\u00a0829) |
Net financial items | (6\u00a0918) | (5\u00a0518) |
Total | (4\u00a0380) | (9\u00a0020) |
Movement in hedge reserve due to changes in fair values | (3\u00a0407) | (10\u00a0537) |
Total movement in hedge reserve | 973 | (1\u00a0517) |
Due to Elopak hedging policy, hedges are entered into based on highly probable future transactions, either per trans-action or by applying base layers. All hedges have a hedge ratio 1:1 and hedge in-effectiveness related to differences in timing of settlement in 2024 and 2023 was insignificant and is not recognised directly to profit and loss.
Carrying amount of financial asset and liabilities
The fair value of all financial assets and liabilities approximates their carrying value. The fair value estimation of derivative financial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than unadjusted quoted prices for identical assets and liabilities.
December 31, 2024 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 1 751 | 49 | - | 1 799 | - | 1 799 | - | 1 799 | |
Finance lease receivable\u200c1\u200c | - | - | 9 017 | 9 017 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 122 259 | 122 259 | - | - | - | - | |
Cash and cash equivalents | - | - | 28 052 | 28 052 | - | - | - | - | |
Total | 1 751 | 49 | 159 328 | 161 128 | - | 1 799 | - | 1 799 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 290 974 | 290 974 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 106 531 | 106 531 | - | - | - | - | |
Derivatives | 8 265 | 4 268 | - | 12 533 | - | 12 533 | - | 12 533 | |
Trade payables and Other payables | - | - | 113 786 | 113 786 | - | - | - | - | |
Total | 8 265 | 4 268 | 511 292 | 523 825 | - | 12 533 | - | 12 533 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Carrying amount of financial asset and liabilities
December 31, 2023 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 3 660 | 925 | - | 4 585 | - | 4 585 | - | 4 585 | |
Finance lease receivable\u200c1\u200c | - | - | 7 084 | 7 084 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 112 639 | 112 639 | - | - | - | - | |
Cash and cash equivalents | - | - | 13 308 | 13 308 | - | - | - | - | |
Total | 3 660 | 925 | 133 032 | 137 617 | - | 4 585 | - | 4 585 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 243 767 | 243 767 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 101 520 | 101 520 | - | - | - | - | |
Derivatives | 5 451 | 6 460 | - | 11 910 | - | 11 910 | - | 11 910 | |
Trade payables and Other payables | - | - | 168 864 | 168 864 | - | - | - | - | |
Total | 5 451 | 6 460 | 514 151 | 526 062 | - | 11 910 | - | 11 910 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Fair value of financial assets and financial liabilities are measured using different levels of input.
\u2022Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
\u2022Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
\u2022Level 3 inputs are unobservable inputs for the asset or liability.
Note 25 Change in obligations from financial activities
2024 | ||||
EUR 1\u00a0000 | Interest-bearing loans and borrowings(Note21) | Lease liabilities(Note14) | ||
Current non-in-terest bearing liabilities(Note26) | Total | |||
1.1 | 243\u00a0756 | 101\u00a0520 | 40\u00a0466 | 385\u00a0742 |
Cash Flows | ||||
Proceeds from borrowings | 288\u00a0918 | - | 218\u00a0977 | 507 895 |
Repayment of borrowings | (246\u00a0248) | - | (219\u00a0661) | (465 909) |
Interest on borrowings | (15\u00a0304) | - | - | (15\u00a0304) |
Lease payments | - | (23\u00a0589) | - | (23\u00a0589) |
Non-cash effects | ||||
Interest expense | 15\u00a0105 | 7\u00a0892 | - | 22\u00a0997 |
Net additions lease liabilities | - | 20\u00a0708 | - | 20\u00a0708 |
Other non-cash items | 967 | - | - | 967 |
31.12 | 287\u00a0194 | 106\u00a0531 | 39\u00a0782 | 433\u00a0507 |
2023 | ||||
EUR 1\u00a0000 | Interest-bearing loans and borrowings(Note21) | Lease liabilities(Note14) | ||
Current non-in-terest bearing liabilities(Note26) | Total | |||
1.1 | 325\u00a0715 | 90\u00a0674 | 38\u00a0341 | 454\u00a0731 |
Cash Flows | ||||
Proceeds from borrowings | 1\u00a0087\u00a0304 | - | 218\u00a0596 | 1\u00a0305\u00a0900 |
Repayment of borrowings | (1\u00a0174\u00a0598) | - | (216\u00a0471) | (1\u00a0391\u00a0069) |
Interest on borrowings | (11\u00a0303) | - | - | (11\u00a0303) |
Lease payments | - | (18\u00a0359) | - | (18\u00a0359) |
Non-cash effects | ||||
Interest expense | 11\u00a0605 | 6\u00a0566 | - | 18\u00a0171 |
Net additions lease liabilities | - | 22\u00a0639 | - | 22\u00a0639 |
Other non-cash items | 5\u00a0033 | - | - | 5\u00a0033 |
31.12 | 243\u00a0756 | 101\u00a0520 | 40\u00a0466 | 385\u00a0742 |
Note 26 Supplier Finance Arrangements
The Group had introduced supply chain financing for large board suppliers and in some circumstances the payment terms in the contract with the vendor are linked to the supply chain financing arrangement. In such circumstances, the payable for the goods delivered is reclassified from trade payables to current non-interest bearing liabilities, and the change in the current non-interest bearing liabilities has been presented as financing activities in the statement of cash flows. The supply chain financing arrangement is provided by a leading Nordic financial services group with stand-alone rating of A by S&P Global, AAA by Moody\u2019s and AA-by Fitch.
Carrying amounts of liabilities part of the arrangement
EUR 1\u00a0000 | 31 December 2024 | 31 December 2023 |
Presented in finance payables | 39\u00a0782 | 40\u00a0466 |
of which suppliers have been paid by finance providers | 39\u00a0782 | 40\u00a0466 |
Range of payment due dates: | Days after invoice date | |
Liabilities that are part of the SCF | 90 | 90 |
Payment terms with the board suppliers, without the supply chain financing arrangement. | 30-75 | 30-75 |
Effects in financial statements
In Statement of financial position a reclassification for 2024 and 2023:
Before | Before | After | After | |
EUR 1\u00a0000 | 2024 | 2023 | 2024 | 2023 |
Trade payables | 113 086 | 127 847 | 73 304 | 87 381 |
Current non-interest bearing liabilities | 39 782 | 40 466 |
In Cashflow a reclassification for 2024 and 2023:
Before | Before | After | After | |
EUR 1\u00a0000 | 2024 | 2023 | 2024 | 2023 |
Change in accounts payables | (16\u00a0259) | 3\u00a0897 | (15\u00a0575) | 1\u00a0772 |
Net cashflow from operating activities | (16\u00a0259) | 3\u00a0897 | (15\u00a0575) | 1\u00a0772 |
Net payments on supply chain financing | (684) | 2\u00a0125 | ||
Net cashflow from financing activities | (684) | 2\u00a0125 |
Note 27 Shares in subsidiaries and joint ventures
The following companies are consolidated as subsidiaries in Elopak Group
Company | Percentage owned | Year of acquisition | Country | Principal activity |
Elopak AB | 100% | 1961 | Sweden | Trading |
Elopak B.V. | 100% | 1968 | Netherlands | Manufacturing |
Elopak GmbH | 100% | 1968 | Germany | Trading and manufacturing |
Elopak SpA | 100% | 1981 | Italy | Trading |
Elopak Oy | 100% | 1982 | Finland | Trading |
Elopak Systems AG | 100% | 1984 | Switzerland | Trading |
Elopak Holdco US Inc. | 100% | 2024 | USA | Holding |
Elopak Inc. | 100% | 1987 | USA | Trading |
Elopak Denmark A/S | 100% | 1988 | Denmark | Trading and manufacturing |
Elopak GesmbH | 100% | 1989 | Austria | Trading |
PrJSC Elopak Fastiv | 100% | 1994 | Ukraine | Trading and manufacturing |
Elopak S.A. | 100% | 1994 | Poland | Trading and service |
Elopak Israel AS | 100% | 1998 | Norway | Holding |
Elopak Canada Inc. | 100% | 2000 | Canada | Trading and manufacturing |
Elofill GmbH | 100% | 2000 | Germany | Holding |
Elopak s.r.o. | 100% | 2001 | Czech Republic | Trading |
Elopak UK Ltd | 100% | 2004 | United Kingdom | Trading |
Elopak BS d.o.o | 100% | 2017 | Serbia | Service |
Elopak Kft. | 100% | 2006 | Hungary | Trading |
Elopak EOOD | 100% | 2009 | Bulgaria | Trading |
Elopak Tunisie SARL | 100% | 2017 | Tunisia | Trading |
Elopak Egypt LLC | 100% | 2017 | Egypt | Trading |
Elopak Algerie SARL | 100% | 2018 | Algeria | Trading |
Elopak Arabia Holding Company LLC | 100% | 2022 | Saudi Arabia | Holding |
Elopak Packaging Company LLC | 100% | 2022 | Saudi Arabia | Trading and manufacturing |
Elopak Morocco SAS | 100% | 2022 | Morocco | Trading and manufacturing |
GLS Elopak | 50% | 2022 | India | Trading and manufacturing |
The percentage owned represents the voting stake.
The following joint ventures are accounted for in accordance with the equity method
Company | Percentage owned | Year of acquisition | Country | Principal activity |
Lala Elopak S.A. de C.V. | 49% | 1998 | Mexico | Trading and manufacturing |
Impresora Del Yaque | 51% | 2007 | Dominican Republic | Trading and manufacturing |
Elopak Nampak Africa Ltd | 50% | 2020 | Kenya | Trading |
The percentage owned represents the voting stake.
Note 28 Related parties
Transactions with key management
Related party transactions and balances
Transaction values for the year ended | Balance outstanding as of | |||
EUR 1\u00a0000 | December 31 2024 | December 31 2023 | December 31 2024 | December 31 2023 |
Joint Ventures | ||||
Sales of goods and services | 2\u00a0854 | 7\u00a0606 | 1 214 | 5\u00a0033 |
Purchase of goods and services | 52\u00a0478 | 36\u00a0865 | 3 583 | 3\u00a0075 |
Dividends received | 9\u00a0866 | 2\u00a0018 | - | - |
Associates | ||||
Sales of goods and services | 20 | 82 | - | - |
Purchase of goods and services | 2\u00a0114 | 1\u00a0777 | 606 | 23 |
Loan and related interest | - | - | 815 | 818 |
Board of Directors: annual compensation and number of shares owned
Compensation earned | Number of shares | |||
EUR 1\u00a0000, except number of shares | December 31 2024 | December 31 2023 | December 31 2024 | December 31 2023 |
Dag Mejdell, Chairperson | 74 | 45 | 56\u00a0000 | 56\u00a0000 |
Sid Mehran Johari | 40 | 40 | 17\u00a0857 | 17\u00a0857 |
Anna Kristina Belfrage | 48 | 48 | - | - |
Manuel Arbiol Pascual | - | - | - | - |
Marianne \u00d8degaard Ribe | 25 | - | - | - |
Anette Bauer Ellingsen | 13 | 13 | 1\u00a0071 | 1\u00a0071 |
H\u00e5vard Grande Urhamar | 13 | 5 | - | - |
Cornelia Ann O Neill Kormeseth | - | - | - | - |
Erland Fretheim | - | - | 370 | 370 |
Magne Johan Hamarstr\u00f8m | - | - | - | - |
Jo Olav Lunder\u200c1 | - | 21 | - | - |
Trond Solberg\u200c2 | 20 | 50 | - | - |
Sanna Suvanto- Harsaae\u200c3 | 18 | 43 | 14\u00a0285 | 14\u00a0285 |
Erlend Sveva\u200c4 | - | 8 | - | 1\u00a0071 |
Marianne Groven\u200c5 | - | - | - | - |
1Left his position as Chairperson May 11, 2023
2Left his position as Board member May 13, 2024
3Left her position as Board member May 13, 2024
4Left his position as Board member August 30, 2023
5Left her position as Board member end August, 2024
Other related party transactions
Loans to employees were EUR 25 thousand in 2024 and EUR 19 thousand in 2023. No guarantees have been provided. None of the Board Members or the CEO have executive loans or guarantees in the company.
Note 29 Fees to external auditors
PWC was elected as the principal auditor for 2019, while some group companies are audited by other audit firms.
Year to date ended December 31, 2024 | |||||
EUR 1\u00a0000 | Audit fee | Other assurance services | Tax services | Other non-audit services | Total |
PWC | (828) | (83) | (6) | (100) | (1\u00a0016) |
Others | (156) | - | (137) | - | (293) |
Total | (984) | (83) | (143) | (100) | (1\u00a0309) |
Year to date ended December 31, 2023 | |||||
EUR 1\u00a0000 | Audit fee | Other assurance services | Tax services | Other non-audit services | Total |
PWC | (878) | (34) | (2) | (96) | (1\u00a0010) |
Others | (230) | (3) | (113) | (89) | (435) |
Total | (1\u00a0108) | (37) | (115) | (185) | (1\u00a0445) |
Note 30 Subsequent events
The Board of Directors will propose to the Annual General Meeting a dividend of EUR 0.13 per share for 2024.
Note 31 Financial climate impact
Financial climate impacts
Based on the double materiality assessment and the climate risk assessment, Elopak has considered the impacts of climate change in preparing the 2024 consolidated annual financial statements. To read more about climate risks, see chapter four Sustainability statement.
Impact on capital expenditure commitments:
\u2022Targets related to reduced emissions are mainly met by replacing old production line components with new, more energy-effective components. Most of the replaced parts are already fully depreciated.
\u2022Due to the Single Use Plastic Directive the existing Caps lease contracts were reassessed in 2022 with a reduced useful life in preparation for the changing legislation. Elopak has signed a contract for Tethered Cap lines and is expecting to expand the offering of tethered cap solutions to customers during 2023 and 2024. Additionally, Elopak has assessed that the existing lease contracts for separable cap lines should be fully depreciated before the tethering requirement will be in place and has therefore reassessed the respective leases, see Note 14for further information.
Recognition and measurement of impairments:
Impairments are mainly identified and recognized by determining the recoverable amount based on value in use, which means that the item is measured as a present value of discounted future cash-flows. These cash flows are based on expected revenues, result and capital expenditures in the CGU of which the item is operating within. The climate risk financial impact assessment concludes that the potential of revenues is by far higher than the risk of costs and that the revenues is likely to occur earlier than the costs. In the case that Elopak is faced with increased cost related to the climate risks, this will over time be passed on to the customers, like what other packaging companies are expected to do when faced with the same climate challenges. Based on this, we consider the risk of impairment related to climate risk to be low.
Recognition and measurement of provisions and disclosures surrounding contingent liabilities:
Elopak has not identified future costs or losses that meet the definition of provision or contingent liabilities under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Inventory is measured at cost and written down to the extent that expected sales price less cost of sales is lower than cost. Inventory items related to sale of cartons and closures have a high turnover, hence it is not expected to be negatively impacted by future climate risk costs. Filling machines and spare parts for filling machines have a lower turnover in inventory, however climate risk assessments have not concluded a specific risk related to these machines.
Besides the specific assessments mentioned above, no financial climate impacts have been identified as material to the 2024 consolidated Annual Financial Statements or the alternative performance measures (APMs).
Note 01 Company information and basis of preparation
Elopak ASA is a public limited company incorporated in NorwayElopak is a global supplier of liquid carton packaging and filling equipment, catering to both the fresh and aseptic segments. The principal activities of the company and its subsidiaries are described in Note 3. The address of the registered office and principal place of business is Industriveien 30, 3430 SpikkestadNorway. Elopak ASA is listed on the Oslo Stock Exchange (Oslo Bors). The Board of Directors and the CEO authorized these consolidated financial statements of Elopak ASA and its subsidiaries for the year ended December 31, 2024, for issue on April 2, 2025.
Elopak\u2019s material accounting policies are included in the explanatory notes to the consolidated financial statements.
Basis of preparation
The consolidated financial statements of Elopak ASA and its subsidi-aries have been prepared in accordance with International Financial Reporting Standards (IFRS\u00ae) as adopted by the European Union (EU). The accounting policies adopted have been applied consistently to all the years presented. Elopak also provides disclosures in accordance with requirements in the Norwegian Accounting Act (Regnskapsloven). New and amended standards adopted by Elopak do not have a material impact on the consolidated financial statements. The Elopak Group consists of Elopak ASA and its subsidiaries as set out in Note27.
The consolidated financial statements incorporate the financial state-ments of the companies controlled by Elopak ASA. The functional currency of Elopak ASA is the Euro (EUR). All numbers are presented in Euro 1\u00a0000 unless otherwise is clearly stated.
Material accounting policies
Material accounting policies and information about management judg-ments, estimates, and assumptions are provided in the respective notes throughout the consolidated financial statements. Accounting policies that relate to the financial statements as a whole or are relevant for several notes are included in this \u201cMaterial accounting policies\u201d section.
Foreign currencies
The individual financial statements of each group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the consolidated financial statements, the results and financial position of each group entity are expressed in Euro, which is the functional currency of the parent company and the presentation currency for the consolidated financial statements.
For presenting the consolidated financial statements, the assets and liabil-ities of Elopak\u2019s foreign operations are expressed in Euro using exchange rates prevailing on the reporting date. Income and expense items are translated at the average exchange rates for the relevant periods.
Impairment of non-financial assets excluding goodwill
At each reporting date, Elopak reviews the carrying amounts of its non-fi-nancial assets to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, Elopak estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or cash-generating unit) is esti-mated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount. The increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below.
Financial instruments at amortized cost
Subsequent to initial recognition, non-derivative financial instruments are measured at amortized cost using the effective interest method, less any impairment losses. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability or, where appropriate, a shorter period.
Financial instruments at fair value
The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments where there
is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm\u2019s length market transactions; reference to the current market value of another instrument which is substantially the same; discounted cash flow analysis or other valuation models.
Trade and other payables
Trade and other payables that contain significant financing components are measured at amortized cost, otherwise, they are measured at nominal value.
Adoption of new and revised International Financial Reporting Standards
A number of new standards are effective for annual periods beginning after January 1, 2024, and earlier application is permitted. However, Elopak has not early adopted the following new or amended accounting standards.
Amendments to IFRS that are mandatorily effective for an accounting period that begins on or after January 1, 2024 have been adopted. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements except Supplier
Finance Arrangements. (For more details refer Note Supplier Finance Arrangements.)
\u2022Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
\u2022Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
\u2022Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The following new and amended standards issued but not yet effective are not expected to have a material impact on Elopak\u2019s consolidated financial statement:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments (Amendments to IFRS 9 and IFRS 7)
The following new and amended standards issued but not yet effective are currently being assessed by Elopak for disclosure requirements and if the required information is available.
\u2022IFRS 18- Presentation and disclosure in Financial statements.
\u2022IFRS 19- Subsidiaries without Public Accountability: Disclosures.
Note 01 Company information and basis of preparation
Elopak ASA is a public limited company incorporated in NorwayElopak is a global supplier of liquid carton packaging and filling equipment, catering to both the fresh and aseptic segments. The principal activities of the company and its subsidiaries are described in Note 3. The address of the registered office and principal place of business is Industriveien 30, 3430 SpikkestadNorway. Elopak ASA is listed on the Oslo Stock Exchange (Oslo Bors). The Board of Directors and the CEO authorized these consolidated financial statements of Elopak ASA and its subsidiaries for the year ended December 31, 2024, for issue on April 2, 2025.
Elopak\u2019s material accounting policies are included in the explanatory notes to the consolidated financial statements.
Basis of preparation
The consolidated financial statements of Elopak ASA and its subsidi-aries have been prepared in accordance with International Financial Reporting Standards (IFRS\u00ae) as adopted by the European Union (EU). The accounting policies adopted have been applied consistently to all the years presented. Elopak also provides disclosures in accordance with requirements in the Norwegian Accounting Act (Regnskapsloven). New and amended standards adopted by Elopak do not have a material impact on the consolidated financial statements. The Elopak Group consists of Elopak ASA and its subsidiaries as set out in Note27.
The consolidated financial statements incorporate the financial state-ments of the companies controlled by Elopak ASA. The functional currency of Elopak ASA is the Euro (EUR). All numbers are presented in Euro 1\u00a0000 unless otherwise is clearly stated.
Material accounting policies
Material accounting policies and information about management judg-ments, estimates, and assumptions are provided in the respective notes throughout the consolidated financial statements. Accounting policies that relate to the financial statements as a whole or are relevant for several notes are included in this \u201cMaterial accounting policies\u201d section.
Foreign currencies
The individual financial statements of each group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the consolidated financial statements, the results and financial position of each group entity are expressed in Euro, which is the functional currency of the parent company and the presentation currency for the consolidated financial statements.
For presenting the consolidated financial statements, the assets and liabil-ities of Elopak\u2019s foreign operations are expressed in Euro using exchange rates prevailing on the reporting date. Income and expense items are translated at the average exchange rates for the relevant periods.
Impairment of non-financial assets excluding goodwill
At each reporting date, Elopak reviews the carrying amounts of its non-fi-nancial assets to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, Elopak estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or cash-generating unit) is esti-mated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount. The increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below.
Financial instruments at amortized cost
Subsequent to initial recognition, non-derivative financial instruments are measured at amortized cost using the effective interest method, less any impairment losses. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability or, where appropriate, a shorter period.
Financial instruments at fair value
The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments where there
is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm\u2019s length market transactions; reference to the current market value of another instrument which is substantially the same; discounted cash flow analysis or other valuation models.
Trade and other payables
Trade and other payables that contain significant financing components are measured at amortized cost, otherwise, they are measured at nominal value.
Adoption of new and revised International Financial Reporting Standards
A number of new standards are effective for annual periods beginning after January 1, 2024, and earlier application is permitted. However, Elopak has not early adopted the following new or amended accounting standards.
Amendments to IFRS that are mandatorily effective for an accounting period that begins on or after January 1, 2024 have been adopted. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements except Supplier
Finance Arrangements. (For more details refer Note Supplier Finance Arrangements.)
\u2022Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
\u2022Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
\u2022Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The following new and amended standards issued but not yet effective are not expected to have a material impact on Elopak\u2019s consolidated financial statement:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments (Amendments to IFRS 9 and IFRS 7)
The following new and amended standards issued but not yet effective are currently being assessed by Elopak for disclosure requirements and if the required information is available.
\u2022IFRS 18- Presentation and disclosure in Financial statements.
\u2022IFRS 19- Subsidiaries without Public Accountability: Disclosures.
Foreign currencies
The individual financial statements of each group entity are prepared in the currency of the primary economic environment in which the entity operates (its functional currency). For the consolidated financial statements, the results and financial position of each group entity are expressed in Euro, which is the functional currency of the parent company and the presentation currency for the consolidated financial statements.
For presenting the consolidated financial statements, the assets and liabil-ities of Elopak\u2019s foreign operations are expressed in Euro using exchange rates prevailing on the reporting date. Income and expense items are translated at the average exchange rates for the relevant periods.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForForeignCurrencyTranslationExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__17": { "value": "Impairment of non-financial assets excluding goodwill
At each reporting date, Elopak reviews the carrying amounts of its non-fi-nancial assets to determine whether there is any indication of impairment. If any such indication exists, the recoverable amount of the asset is estimated to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, Elopak estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
If the recoverable amount of an asset (or cash-generating unit) is esti-mated to be less than its carrying amount, the carrying amount of the asset (cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognized immediately in profit or loss.
Where an impairment loss subsequently reverses, the carrying amount of the asset (cash-generating unit) is increased to the revised estimate of its recoverable amount. The increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset (cash-generating unit) in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfNonfinancialAssetsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__18": { "value": "Non-derivative financial instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.
Subsequent to initial recognition, non-derivative financial instruments are measured as described below.
Financial instruments at amortized cost
Subsequent to initial recognition, non-derivative financial instruments are measured at amortized cost using the effective interest method, less any impairment losses. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial asset or liability or, where appropriate, a shorter period.
Financial instruments at fair value
The fair value of investments that are actively traded in organized financial markets is determined by reference to quoted market bid prices at the close of business on the reporting date. For investments where there
is no active market, fair value is determined using valuation techniques. Such techniques include using recent arm\u2019s length market transactions; reference to the current market value of another instrument which is substantially the same; discounted cash flow analysis or other valuation models.
Trade and other payables
Trade and other payables that contain significant financing components are measured at amortized cost, otherwise, they are measured at nominal value.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__19-1": { "value": "Adoption of new and revised International Financial Reporting Standards
A number of new standards are effective for annual periods beginning after January 1, 2024, and earlier application is permitted. However, Elopak has not early adopted the following new or amended accounting standards.
Amendments to IFRS that are mandatorily effective for an accounting period that begins on or after January 1, 2024 have been adopted. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements except Supplier
Finance Arrangements. (For more details refer Note Supplier Finance Arrangements.)
\u2022Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
\u2022Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
\u2022Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The following new and amended standards issued but not yet effective are not expected to have a material impact on Elopak\u2019s consolidated financial statement:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments (Amendments to IFRS 9 and IFRS 7)
The following new and amended standards issued but not yet effective are currently being assessed by Elopak for disclosure requirements and if the required information is available.
\u2022IFRS 18- Presentation and disclosure in Financial statements.
\u2022IFRS 19- Subsidiaries without Public Accountability: Disclosures.
OECD Pillar Two, addressing tax challenges from digitalization and globalization, has established a global minimum tax of 15% on large multinationals which includes Elopak. It ensures that multinational enterprises (MNEs) pay at least 15% tax in each jurisdiction and applies a top-up tax if a subsidiary pays below the minimum tax rate.
Elopak works closely with the Ferd Group who owns 44.37% of Elopak for Pillar II reporting purpose, as well as the EU Public Country-By-Country Reporting.
Transitional safe harbour (2024-2026) applies to MNEs during the initial years of Pillar Two. Jurisdictions from full GloBE calculations are exempt if they meet the Effective tax rate test over 15%.
Elopak has identified 3 countries where it operates a corporate income tax rate below 15%. Elopak does not expect any significant effects from the Pillar II for the two entities located in Eastern Europe and a Controlled Foreign Corporation also taxed in Norway at 22%.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFirstTimeAdoptionExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__20": { "value": "Adoption of new and revised International Financial Reporting Standards
A number of new standards are effective for annual periods beginning after January 1, 2024, and earlier application is permitted. However, Elopak has not early adopted the following new or amended accounting standards.
Amendments to IFRS that are mandatorily effective for an accounting period that begins on or after January 1, 2024 have been adopted. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements except Supplier
Finance Arrangements. (For more details refer Note Supplier Finance Arrangements.)
\u2022Classification of Liabilities as Current or Non-current (Amendments to IAS 1)
\u2022Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)
\u2022Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)
The following new and amended standards issued but not yet effective are not expected to have a material impact on Elopak\u2019s consolidated financial statement:
\u2022Lack of Exchangeability (Amendments to IAS 21)
\u2022Classification and Measurement of Financial instruments (Amendments to IFRS 9 and IFRS 7)
The following new and amended standards issued but not yet effective are currently being assessed by Elopak for disclosure requirements and if the required information is available.
\u2022IFRS 18- Presentation and disclosure in Financial statements.
\u2022IFRS 19- Subsidiaries without Public Accountability: Disclosures.
", "dimensions": { "concept": "ifrs-full:DisclosureOfChangesInAccountingPoliciesExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__21": { "value": "Note 02 Critical accounting judgments and key sources of estimation uncertainty
In the application of Elopak\u2019s accounting policies, which are described in Note 1, management is required to make judgments, estimates, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on a regular basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.
IFRS 15 - Revenue Recognition
Management has exercised judgment in assessing the recognition of revenue over time under IFRS 15. The judgment is based on manage-ment\u2019s assessment of the legally enforceable right to payment for cartons with no alternative use, as cartons are printed based on customer spec-ifications. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions in each country the Group operates gives the company an enforceable right to payment for work
performed to date, as described in IFRS 15. The reclassification of revenue from inventory of finished goods to revenue from customers is based on management\u2019s best estimate of information given at the end of the reporting period. Revenue recognized over time is presented in note 3and the contract assets are disclosed under note18.
Consolidation of GLS Elopak
Elopak and GLS signed on April 28, 2022 an agreement in which the two companies will have 50% ownership of a newly formed company, GLS Elopak. The agreement provides Elopak with exposure to variable returns and power to affect the returns from GLS Elopak, which means that Elopak will have control of GLS Elopak in accordance with IFRS 10 and will consolidate the company as a subsidiary in Elopak\u2019s financial statements.
Deferred tax assets
Management has exercised judgment in assessing the recognition of tax loss carryforward for Elopak\u2019s various entities and the resulting deferred tax asset. The judgment is based upon the entities\u2019 assessed ability to generate future cash flows that will enable the entities to do so. The assessments imply a degree of uncertainty relating to such future events. Tax expenses and deferred tax assets are presented in Note 9.
Tax disputes
In tax disputes, Elopak accounts for tax costs according to decisions made by local tax authorities or according to subsequent tax rulings in the actual case or similar cases. Where transfer pricing adjustments have been made, mutual agreement procedures (MAP) between the affected countries are normally available. A successful MAP procedure, as intended in the double tax treaties between countries, would result in a corresponding tax adjustment in a Group company, thus removing the tax cost for Elopak. Where a MAP process is available, Elopak recognizes tax costs according to the probability of the outcome of the MAP process. If tax authorities within the EU do not agree, taxpayers have the right to demand arbitration. Details regarding ongoing tax disputes are described in Note 9.
IFRS 15 - Revenue Recognition
Management has exercised judgment in assessing the recognition of revenue over time under IFRS 15. The judgment is based on manage-ment\u2019s assessment of the legally enforceable right to payment for cartons with no alternative use, as cartons are printed based on customer spec-ifications. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions in each country the Group operates gives the company an enforceable right to payment for work
performed to date, as described in IFRS 15. The reclassification of revenue from inventory of finished goods to revenue from customers is based on management\u2019s best estimate of information given at the end of the reporting period. Revenue recognized over time is presented in note 3and the contract assets are disclosed under note18.
Note 03 Revenues
Accounting policy
The Group is a global supplier of paper-based packaging system solutions for liquid products. Revenue from contracts with customers is derived from sale of filling equipment, Pure-Pak\u00aecarton and Roll Fed packaging material (hereby denominated as cartons), closures and related services. Revenue is recognised when control of the goods or services are transferred to the customer and is presented net of returns, trade discounts, volume rebates and other customer incentives. The Group also presents lease income from lease of filling equipment.
Generally, the Group recognises revenue on a point in time basis when the customer takes title to the goods and rewards for the goods. For goods without alternative use where the Group has a legally enforceable right to payment for the goods, the Group recognises revenue over time, which generally is, as the goods are produced.
Sale of cartons and closures
Cartons are printed based on customer specifications and are therefore without alternative use. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions give the company an enforceable right to payment for work performed to date as described in IFRS 15. Most of the customer contracts include cancellation clauses that give the company sufficient protection to conclude that there is an enforceable right to payment.
Closures are not customised and therefore with alternative use and recognised at point in time.
Sale of filling equipment
Revenue from sale of filling equipment is recognised at the point in time when control of the asset is transferred to the customer, generally when the machine is tested and accepted by the customer. Filling equipment could result in no alternative use if it would incur significant costs to rework the design and func-tion of the machine to adapt it to another customer. However, in most cases filling equipment is standard equipment and considered to have alternative use, hence they are recognised at point in time.
Sale of service
The Group offers research and development support, after sales services and technical training and main-tenance support. Revenue from support, service and training is recognised over time, as the customer simultaneously receives and consumes the benefit provided to them. The Group uses an input method in measuring progress of the services because there is a direct relationship between the Group\u2019s effort/labour hours occurred and the transfer of service to the customer.
Trade discounts, volume rebates and other incentives
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Cartons are often sold with retrospective volume discounts based on aggregate sales over several months. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. A refund liability is recognised for the expected volume discounts payable to customers in relation to sales made until the end of the reporting period.
No significant element of financing is deemed present, and the Group had no right of return in the reporting period.
Contract liabilities
Payments for filling equipment are generally made in installments and a contract liability is recognised when a payment is received or due from a customer before the Group transfers the filling equipment. Contract liabilities are recognised as revenue when control of the filling equipment is transferred to the customer.
Contract assets
Contract assets consist of prepaid support (rebate) to customers which will be offset against contracted future purchases of carton and features. The prepaid support is allocated to the different performance obligations, hereunder filling equipment and cartons/closures. Contract assets include over time revenue for cartons before the right to payment becomes unconditional. See Note 18for disclosure of contract assets.
Remaining performance obligations
Delivery obligations for cartons are completed within one year or less, so we have therefore elected to use exception IFRS 15.121.
The Group\u2019s revenues consist of revenue from contracts with customers (99%) and rental income from lease of filling equipment (1%). Revenues are primarily derived from the sale of cartons and closures, sales and rental income related to filling equipment and service.
Revenues specified by geographical area
EUR 1\u00a0000 | 2024 | 2023 |
USA | 238\u00a0279 | 219\u00a0203 |
Germany | 160\u00a0493 | 159\u00a0778 |
Canada | 79\u00a0416 | 77\u00a0705 |
Netherlands | 61\u00a0241 | 58\u00a0201 |
Norway | 20\u00a0345 | 27\u00a0120 |
Other | 596\u00a0728 | 590\u00a0036 |
Total revenue | 1\u00a0156\u00a0502 | 1\u00a0132\u00a0043 |
The revenues are specified by location (country) of the customer.
Revenues by product and operating segment
2024 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Cartons and closures | 751\u00a0951 | 291\u00a0593 | (4\u00a0322) | 1\u00a0039\u00a0222 |
Equipment | 51\u00a0280 | 16\u00a0219 | (9\u00a0209) | 58\u00a0289 |
Service | 59\u00a0161 | - | (1\u00a0326) | 57\u00a0835 |
Other | 11\u00a0533 | 2\u00a0603 | (12\u00a0980) | 1\u00a0156 |
Total revenue | 873\u00a0924 | 310\u00a0416 | (27\u00a0838) | 1 156 502 |
2023 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Cartons and closures | 755\u00a0682 | 276\u00a0739 | (4\u00a0245) | 1\u00a0028\u00a0177 |
Equipment | 52\u00a0385 | 12\u00a0114 | (14\u00a0227) | 50\u00a0272 |
Service | 52\u00a0113 | - | (971) | 51\u00a0142 |
Other | 10\u00a0278 | 1\u00a0748 | (9\u00a0575) | 2\u00a0451 |
Total revenue | 870\u00a0459 | 290\u00a0601 | (29\u00a0017) | 1\u00a0132\u00a0043 |
Consolidation of GLS Elopak
Elopak and GLS signed on April 28, 2022 an agreement in which the two companies will have 50% ownership of a newly formed company, GLS Elopak. The agreement provides Elopak with exposure to variable returns and power to affect the returns from GLS Elopak, which means that Elopak will have control of GLS Elopak in accordance with IFRS 10 and will consolidate the company as a subsidiary in Elopak\u2019s financial statements.
", "dimensions": { "concept": "ifrs-full:DisclosureOfBasisOfConsolidationExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__24-1": { "value": "Deferred tax assets
Management has exercised judgment in assessing the recognition of tax loss carryforward for Elopak\u2019s various entities and the resulting deferred tax asset. The judgment is based upon the entities\u2019 assessed ability to generate future cash flows that will enable the entities to do so. The assessments imply a degree of uncertainty relating to such future events. Tax expenses and deferred tax assets are presented in Note 9.
Note 09 Income tax
Income tax expense
EUR 1\u00a0000 | 2024 | 2023 |
Current income tax charge | 24\u00a0141 | 20\u00a0405 |
Adjustments in respect of current income tax of previous year | 846 | (2\u00a0934) |
Withholding tax | 1\u00a0651 | 1\u00a0107 |
Total current income tax | 26\u00a0638 | 18\u00a0578 |
Deferred tax cost | (4\u00a0199) | (2\u00a0519) |
Effect of changed tax rate and corrections previous years | 4\u00a0764 | (545) |
Total deferred tax | 565 | (3\u00a0064) |
Income tax expense reported in the statement of comprehensive income | 27\u00a0203 | 15\u00a0514 |
Change in deferred tax on items in Other Comprehensive Income/Equity
EUR 1\u00a0000 | 2024 | 2023 |
Remeasurement gain/loss on actuarial gains and losses | 232 | 211 |
Cash flow hedges | (520) | (406) |
Equity transactions | 848 | (409) |
Change in deferred tax on items in Other Comprehensive Income/Equity | 560 | (603) |
Deferred tax
EUR 1\u00a0000 | 2024 | 2023 |
Revaluation of inventories | 12\u00a0454 | 16\u00a0795 |
Payables/receivables | 27\u00a0952 | 23\u00a0538 |
Non-current assets | (20\u00a0662) | (14\u00a0729) |
Fixed assets depreciations | (7\u00a0665) | (7\u00a0927) |
Other current assets | (9\u00a0343) | (17\u00a0971) |
Liquid assets | 28 | - |
Losses available for offsetting against future taxable income | 5\u00a0269 | 9\u00a0427 |
Other differences | (315) | (292) |
Total deferred tax | 7\u00a0717 | 8\u00a0842 |
Deferred tax assets | 22\u00a0295 | 22\u00a0883 |
Deferred tax liabilities | 14\u00a0578 | 14\u00a0041 |
Net deferred assets/liabilities | 7\u00a0717 | 8\u00a0842 |
Deferred tax assets are evaluated at each balance sheet date, and recognized to the extent that it is probable that sufficient taxable profit will be available to allow the benefit of part or all of that deferred tax asset to be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period when the liability shall be settled or the asset to be realized, based on tax rates and laws that have been enacted or substan-tively enacted at the balance sheet date.
Specification of tax losses carried forward \u2013 country and year of expiry
EUR 1\u00a0000 | After 2026 | Indefinite | Total |
United Kingdom | - | 12\u00a0256 | 12\u00a0256 |
Norway | - | 9\u00a0704 | 9\u00a0704 |
Other | - | 277 | 277 |
Total | - | 22\u00a0237 | 22\u00a0237 |
Tax losses carried forward of EUR 8.6 million are not recognized as a basis for calculating unused tax losses carried forward in net deferred assets/liabilities. The amount not recognized is related to the United Kingdom.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDeferredTaxesExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__25": { "value": "Tax disputes
In tax disputes, Elopak accounts for tax costs according to decisions made by local tax authorities or according to subsequent tax rulings in the actual case or similar cases. Where transfer pricing adjustments have been made, mutual agreement procedures (MAP) between the affected countries are normally available. A successful MAP procedure, as intended in the double tax treaties between countries, would result in a corresponding tax adjustment in a Group company, thus removing the tax cost for Elopak. Where a MAP process is available, Elopak recognizes tax costs according to the probability of the outcome of the MAP process. If tax authorities within the EU do not agree, taxpayers have the right to demand arbitration. Details regarding ongoing tax disputes are described in Note 9.
", "dimensions": { "concept": "ifrs-full:DisclosureOfAdditionalInformationExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__28": { "value": "Accounting policy
The Group is a global supplier of paper-based packaging system solutions for liquid products. Revenue from contracts with customers is derived from sale of filling equipment, Pure-Pak\u00aecarton and Roll Fed packaging material (hereby denominated as cartons), closures and related services. Revenue is recognised when control of the goods or services are transferred to the customer and is presented net of returns, trade discounts, volume rebates and other customer incentives. The Group also presents lease income from lease of filling equipment.
Generally, the Group recognises revenue on a point in time basis when the customer takes title to the goods and rewards for the goods. For goods without alternative use where the Group has a legally enforceable right to payment for the goods, the Group recognises revenue over time, which generally is, as the goods are produced.
Sale of cartons and closures
Cartons are printed based on customer specifications and are therefore without alternative use. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions give the company an enforceable right to payment for work performed to date as described in IFRS 15. Most of the customer contracts include cancellation clauses that give the company sufficient protection to conclude that there is an enforceable right to payment.
Closures are not customised and therefore with alternative use and recognised at point in time.
Sale of filling equipment
Revenue from sale of filling equipment is recognised at the point in time when control of the asset is transferred to the customer, generally when the machine is tested and accepted by the customer. Filling equipment could result in no alternative use if it would incur significant costs to rework the design and func-tion of the machine to adapt it to another customer. However, in most cases filling equipment is standard equipment and considered to have alternative use, hence they are recognised at point in time.
Sale of service
The Group offers research and development support, after sales services and technical training and main-tenance support. Revenue from support, service and training is recognised over time, as the customer simultaneously receives and consumes the benefit provided to them. The Group uses an input method in measuring progress of the services because there is a direct relationship between the Group\u2019s effort/labour hours occurred and the transfer of service to the customer.
Trade discounts, volume rebates and other incentives
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Cartons are often sold with retrospective volume discounts based on aggregate sales over several months. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. A refund liability is recognised for the expected volume discounts payable to customers in relation to sales made until the end of the reporting period.
No significant element of financing is deemed present, and the Group had no right of return in the reporting period.
Contract liabilities
Payments for filling equipment are generally made in installments and a contract liability is recognised when a payment is received or due from a customer before the Group transfers the filling equipment. Contract liabilities are recognised as revenue when control of the filling equipment is transferred to the customer.
Contract assets
Contract assets consist of prepaid support (rebate) to customers which will be offset against contracted future purchases of carton and features. The prepaid support is allocated to the different performance obligations, hereunder filling equipment and cartons/closures. Contract assets include over time revenue for cartons before the right to payment becomes unconditional. See Note 18for disclosure of contract assets.
Remaining performance obligations
Delivery obligations for cartons are completed within one year or less, so we have therefore elected to use exception IFRS 15.121.
The Group\u2019s revenues consist of revenue from contracts with customers (99%) and rental income from lease of filling equipment (1%). Revenues are primarily derived from the sale of cartons and closures, sales and rental income related to filling equipment and service.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForRecognitionOfRevenue", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__27": { "value": "Sale of cartons and closures
Cartons are printed based on customer specifications and are therefore without alternative use. Cancellation provisions in the customer contracts, combined with background law in the legal jurisdictions give the company an enforceable right to payment for work performed to date as described in IFRS 15. Most of the customer contracts include cancellation clauses that give the company sufficient protection to conclude that there is an enforceable right to payment.
Closures are not customised and therefore with alternative use and recognised at point in time.
Sale of filling equipment
Revenue from sale of filling equipment is recognised at the point in time when control of the asset is transferred to the customer, generally when the machine is tested and accepted by the customer. Filling equipment could result in no alternative use if it would incur significant costs to rework the design and func-tion of the machine to adapt it to another customer. However, in most cases filling equipment is standard equipment and considered to have alternative use, hence they are recognised at point in time.
Sale of service
The Group offers research and development support, after sales services and technical training and main-tenance support. Revenue from support, service and training is recognised over time, as the customer simultaneously receives and consumes the benefit provided to them. The Group uses an input method in measuring progress of the services because there is a direct relationship between the Group\u2019s effort/labour hours occurred and the transfer of service to the customer.
Trade discounts, volume rebates and other incentives
If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with the variable consideration is subsequently resolved. Cartons are often sold with retrospective volume discounts based on aggregate sales over several months. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated volume discounts. A refund liability is recognised for the expected volume discounts payable to customers in relation to sales made until the end of the reporting period.
No significant element of financing is deemed present, and the Group had no right of return in the reporting period.
Contract liabilities
Payments for filling equipment are generally made in installments and a contract liability is recognised when a payment is received or due from a customer before the Group transfers the filling equipment. Contract liabilities are recognised as revenue when control of the filling equipment is transferred to the customer.
Contract assets
Contract assets consist of prepaid support (rebate) to customers which will be offset against contracted future purchases of carton and features. The prepaid support is allocated to the different performance obligations, hereunder filling equipment and cartons/closures. Contract assets include over time revenue for cartons before the right to payment becomes unconditional. See Note 18for disclosure of contract assets.
Remaining performance obligations
Delivery obligations for cartons are completed within one year or less, so we have therefore elected to use exception IFRS 15.121.
The Group\u2019s revenues consist of revenue from contracts with customers (99%) and rental income from lease of filling equipment (1%). Revenues are primarily derived from the sale of cartons and closures, sales and rental income related to filling equipment and service.
Revenues specified by geographical area
EUR 1\u00a0000 | 2024 | 2023 |
USA | 238\u00a0279 | 219\u00a0203 |
Germany | 160\u00a0493 | 159\u00a0778 |
Canada | 79\u00a0416 | 77\u00a0705 |
Netherlands | 61\u00a0241 | 58\u00a0201 |
Norway | 20\u00a0345 | 27\u00a0120 |
Other | 596\u00a0728 | 590\u00a0036 |
Total revenue | 1\u00a0156\u00a0502 | 1\u00a0132\u00a0043 |
The revenues are specified by location (country) of the customer.
Revenues by product and operating segment
2024 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Cartons and closures | 751\u00a0951 | 291\u00a0593 | (4\u00a0322) | 1\u00a0039\u00a0222 |
Equipment | 51\u00a0280 | 16\u00a0219 | (9\u00a0209) | 58\u00a0289 |
Service | 59\u00a0161 | - | (1\u00a0326) | 57\u00a0835 |
Other | 11\u00a0533 | 2\u00a0603 | (12\u00a0980) | 1\u00a0156 |
Total revenue | 873\u00a0924 | 310\u00a0416 | (27\u00a0838) | 1 156 502 |
2023 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Cartons and closures | 755\u00a0682 | 276\u00a0739 | (4\u00a0245) | 1\u00a0028\u00a0177 |
Equipment | 52\u00a0385 | 12\u00a0114 | (14\u00a0227) | 50\u00a0272 |
Service | 52\u00a0113 | - | (971) | 51\u00a0142 |
Other | 10\u00a0278 | 1\u00a0748 | (9\u00a0575) | 2\u00a0451 |
Total revenue | 870\u00a0459 | 290\u00a0601 | (29\u00a0017) | 1\u00a0132\u00a0043 |
Remaining performance obligations
Delivery obligations for cartons are completed within one year or less, so we have therefore elected to use exception IFRS 15.121.
The Group\u2019s revenues consist of revenue from contracts with customers (99%) and rental income from lease of filling equipment (1%). Revenues are primarily derived from the sale of cartons and closures, sales and rental income related to filling equipment and service.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForFinancialAssetsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__30": { "value": "Note 04 Operating segments
Information reported to the Group\u2019s chief operating decision makers, Elopak Management, for the purpose of resource allocation and assessment of segment performance is focused on two key geographical regions \u2013 EMEA and Americas. GLS Elopak is included in EMEA. Key figures representing the financial performance of these segments are presented in the following note. Refer to Note 13for disclosure of fixed assets specified by geographical area. The tables include continuing operations only.
2024 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Revenue from contracts with customers | 848\u00a0203 | 308\u00a0011 | 288 | 1\u00a0156\u00a0502 |
Revenue from other group segments | 25\u00a0721 | 2\u00a0405 | (28\u00a0126) | - |
Total revenue | 873\u00a0924 | 310\u00a0416 | (27\u00a0838) | 1\u00a0156\u00a0502 |
Other income | 89 | - | - | 89 |
Total income | 874\u00a0013 | 310\u00a0416 | (27\u00a0838) | 1\u00a0156\u00a0591 |
Operating expenses\u200c1 | (734\u00a0026) | (249\u00a0141) | (7\u00a0024) | (990\u00a0191) |
Depreciation and amortization | (55\u00a0017) | (8\u00a0049) | (1\u00a0311) | (64\u00a0377) |
Impairment | (2\u00a0568) | - | - | (2\u00a0568) |
Operating profit | 82\u00a0401 | 53\u00a0226 | (36\u00a0172) | 99\u00a0456 |
EBITDA\u200c2 | 139\u00a0987 | 70\u00a0971 | (34\u00a0861) | 176\u00a0097 |
Adjusted EBITDA\u200c2 | 139\u00a0987 | 70\u00a0971 | (34\u00a0861) | 176\u00a0097 |
Purchase of non-current assets during the year | 48\u00a0278 | 59 155 | 1 668 | 109 101 |
2023 | ||||
EUR 1\u00a0000 | EMEA | Americas | Other and eliminations | Total |
Revenue from contracts with customers | 842\u00a0304 | 288\u00a0882 | 857 | 1\u00a0132\u00a0043 |
Revenue from other group segments | 28\u00a0153 | 1\u00a0718 | (29\u00a0872) | - |
Total revenue | 870\u00a0457 | 290\u00a0601 | (29\u00a0015) | 1\u00a0132\u00a0043 |
Other income | 61 | 83 | ( 0) | 145 |
Total income | 870\u00a0519 | 290\u00a0684 | (29\u00a0015) | 1\u00a0132\u00a0187 |
Operating expenses\u200c1 | (734\u00a0923) | (230\u00a0120) | (3\u00a0034) | (968\u00a0076) |
Depreciation and amortization | (50\u00a0589) | (7\u00a0159) | (2\u00a0398) | (60\u00a0147) |
Impairment | (1\u00a0186) | - | - | (1\u00a0186) |
Operating profit | 83\u00a0821 | 53\u00a0405 | (34\u00a0446) | 102\u00a0778 |
EBITDA\u200c2 | 135\u00a0582 | 67\u00a0433 | (32\u00a0049) | 170\u00a0966 |
Adjusted EBITDA\u200c2 | 135\u00a0482 | 67\u00a0433 | (32\u00a0049) | 170\u00a0866 |
Purchase of non-current assets during the year | 38\u00a0353 | 1\u00a0756 | 665 | 40\u00a0774 |
1Operating expenses include cost of materials, payroll expenses, and other operating expenses.
2See the APM disclosure for the reconciliation of EBITDA and adjusted EBITDA. With effect from the third quarter of 2024, the definition of EBITDA has changed to include share of net profit from joint ventures. As a consequence, the comparatives have been updated accordingly.
Note 05 Payroll expenses, numbers of employees, benefits etc.
The table includes continuing operations only.
EUR 1\u00a0000 | 2024 | 2023 |
Salary | (163\u00a0723) | (151\u00a0449) |
Social security | (23\u00a0185) | (23\u00a0585) |
Pension defined benefit plans (Note20) | (110) | (99) |
Pension defined contribution plans (Note20) | (11\u00a0140) | (9\u00a0996) |
Other benefits | (5\u00a0083) | (4\u00a0495) |
Total | (203\u00a0242) | (189\u00a0623) |
Man-year Elopak employees (excl. equity investees) | 2\u00a0153 | 2\u00a0078 |
Note 20 Employee retirement benefit plans
Defined contribution plans
The Group operates defined contribution pension plans where the plans are held separately from those of the Group in funds under control of trustees. The only obligation of the Group is to make the specified contributions.
Defined benefit plans
The Group also runs pension plans that grant the employees a right to defined future benefits. The benefits are mainly dependent on years of service, the level of salary at age of retirement and size of contributions from the national insurance. The obligations are partly covered through insurance companies. Elopak has unfunded retiree medical insurance plans for certain of its employees located in the United States.
Pension liability
EUR 1\u00a0000 | 2024 | 2023 |
Defined benefit obligations | (2\u00a0221) | (2\u00a0502) |
Net pension liability | (2\u00a0221) | (2\u00a0502) |
Pension expense
EUR 1\u00a0000 | 2024 | 2023 |
Defined benefit plans net | (110) | (99) |
Defined contribution plans | (11\u00a0140) | (9\u00a0996) |
Total pension expenses | (11\u00a0250) | (10\u00a0095) |
Defined benefit plans are subject to actuarial calculations. The estimated pension cost for pension benefit plans in 2024 is EUR 110 thousand and in 2023 is EUR 99 thousand.
", "dimensions": { "concept": "ifrs-full:DisclosureOfEmployeeBenefitsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__32": { "value": "Note 05 Payroll expenses, numbers of employees, benefits etc.
The table includes continuing operations only.
EUR 1\u00a0000 | 2024 | 2023 |
Salary | (163\u00a0723) | (151\u00a0449) |
Social security | (23\u00a0185) | (23\u00a0585) |
Pension defined benefit plans (Note20) | (110) | (99) |
Pension defined contribution plans (Note20) | (11\u00a0140) | (9\u00a0996) |
Other benefits | (5\u00a0083) | (4\u00a0495) |
Total | (203\u00a0242) | (189\u00a0623) |
Man-year Elopak employees (excl. equity investees) | 2\u00a0153 | 2\u00a0078 |
Note 06 Share-based payments
In November 2023 the Group expanded the long-term incentive program to include senior management. Under the expanded program PSUs (Performance Share Units) of the parent are granted to members of Elopak Management and senior management. One PSU (instrument) equals one share. The eligible employees will be granted an annual award of shares from the company if certain performance criteria are met.
The key terms and conditions related to the grants are as follows:
KPI Categories | Weighted | Metric |
Financial targets | 50% | Adjusted EBITDA less normalized CapEx |
People and Planet targets | 20% | Environmental target (Co2emission) |
Shareholder value targets | 30% | Total shareholders return (TSR) |
The granted PSUs will be gradually vested during a 3-year period. Allocation of PSUs will be based on % of base pay, maximum allocation of 80% for CEO, 50% for Global Leadership Team members, and between 10 to 15% for senior management.
The fair value of the PSUs related to TSR is estimated at the grant date through a Monte Carlo simulation. The fair value of the PSU\u2019s related to the remaining KPIs are equal to the share price at grant date. However, the above performance condition is only considered in determining the number of PSUs that will ultimately vest.
The PSUs will under normal circumstances be exercised as soon as possible after each vesting date. There are no cash settlement alternatives. The Group does not have a past practice of cash settlement for these PSUs. The Group accounts for the PSUs as an equity-settled plan.
There is no exercise price to any of the PSUs, and therefore the weighted average exercise price for all instruments are zero.
Reconciliation of outstanding Performance share units
Number of instruments in thousands (PSU) | 2024 Number of options | 2023 Number of options |
Outstanding at January 1 | 2\u00a0211 | 699 |
Granted during the year | 929 | 1\u00a0616 |
Performance adjusted | - | 45 |
Exercised during the year | (540) | (149) |
Expired during the year | (217) | - |
Outstanding at December 31 | 2\u00a0383 | 2\u00a0211 |
Exercisable at December 31 (vested) | - | - |
Weighted average remaining contractual life outstanding at end of period | 1.48 years | 1.87 years |
The weighted average share price at the date of exercise was EUR 2.84 in 2024 and EUR 2.27 in 2023.
The weighted average fair value of PSU granted was EUR 2.47 during 2024 and EUR 1.40 in 2023.
The following tables list the inputs to the models used for the years ended December 31
Assumptions and inputs for options granted during the year | 2024 | 2023 |
FV per instrument\u200c1 | \u20ac 2.47 | \u20ac 1.40 |
Dividend yield\u200c1 | - | - |
Expected volatility\u200c1 | 11.86% | 21.06% |
Risk-free interest rate\u200c1 | 1.60% | 1.81% |
Contractual life\u200c1 | 2.55 | 2.55 |
Expected lifetime\u200c1 | 0.28 | 0.32 |
Weighted average share price (\u20ac) | \u20ac 2.84 | \u20ac 2.02 |
1Weighted average parameters at grant of instrument
Expected volatility is assessed based on historical volatility of the Company\u2019s share price, with more weight to the expected term period. The expected term of the instruments has been based on historical experience and general option holder behavior.
Components of share-based payments employee benefit expense | 2024 | 2023 |
Share based payment | (2\u00a0340) | (1\u00a0445) |
Social security contribution | (415) | (196) |
Total expenses related to share-based payments | (2\u00a0755) | (1\u00a0640) |
Note 07 Other operating expenses
EUR 1\u00a0000 | 2024 | 2023 |
Sales and administration expenses | (8\u00a0700) | (7\u00a0733) |
Occupancy and maintenance expenses | (6\u00a0503) | (5\u00a0201) |
Travel expenses | (12\u00a0711) | (11\u00a0313) |
Losses and changes in allowance for bad debt | (970) | (571) |
Consultants, auditors, lawyers, etc | (16\u00a0990) | (16\u00a0423) |
IT expenses | (12\u00a0933) | (10\u00a0901) |
Other expenses | (8\u00a0389) | (6\u00a0516) |
Total | (67\u00a0195) | (58\u00a0658) |
Note 08 Financial items
Financial income
EUR 1\u00a0000 | 2024 | 2023 |
Interest income from bank deposits | 16\u00a0754 | 3\u00a0346 |
Other interest income | 266 | 285 |
Finance lease interest income | 532 | 555 |
Other financial income | 739 | 3\u00a0621 |
Total | 18\u00a0292 | 7\u00a0807 |
Financial expense
EUR 1\u00a0000 | 2024 | 2023 |
Interest expenses | (18\u00a0327) | (14\u00a0402) |
Other interest expense\u200c1 | (9\u00a0706) | 846 |
Lease liability interest | (7\u00a0892) | (6\u00a0566) |
Other financial expenses | (2\u00a0656) | (6\u00a0424) |
Total | (38\u00a0581) | (26\u00a0545) |
1Other interest expense in 2023 annual report included loss from interest rate derivatives of EUR 5.5 million. This is showed in a separate table below, restating the 2023 figures for this line.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFinanceCostExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__38": { "value": "Foreign exchange gain/(loss)
EUR 1\u00a0000 | 2024 | 2023 |
Foreign currency gains | 38\u00a0354 | 12\u00a0504 |
Foreign currency losses | (31\u00a0545) | (13\u00a0002) |
Total | 6\u00a0809 | (498) |
Fair value changes on financial instruments
EUR 1\u00a0000 | 2024 | 2023 |
Fair value change IRS | (2\u00a0860) | (5\u00a0518) |
Fair value change CCS | (4\u00a0058) | - |
Total | (6\u00a0918) | (5\u00a0518) |
Interest paid and received under Elopak\u2019s interest rate swaps was from 2024 accounted on a gross basis in financial income or expense, compared to net under financial income or expense prior to 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfFairValueOfFinancialInstrumentsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__40-1": { "value": "Note 09 Income tax
Income tax expense
EUR 1\u00a0000 | 2024 | 2023 |
Current income tax charge | 24\u00a0141 | 20\u00a0405 |
Adjustments in respect of current income tax of previous year | 846 | (2\u00a0934) |
Withholding tax | 1\u00a0651 | 1\u00a0107 |
Total current income tax | 26\u00a0638 | 18\u00a0578 |
Deferred tax cost | (4\u00a0199) | (2\u00a0519) |
Effect of changed tax rate and corrections previous years | 4\u00a0764 | (545) |
Total deferred tax | 565 | (3\u00a0064) |
Income tax expense reported in the statement of comprehensive income | 27\u00a0203 | 15\u00a0514 |
Reconciliation of tax expense
EUR 1\u00a0000 | 2024 | 2023 |
Profit before income tax | 88\u00a0753 | 84\u00a0879 |
Expected tax at statutory tax rate\u200c1 | 21\u00a0301 | 20\u00a0371 |
Adjustments in respect of different local tax rates | 2\u00a0318 | 2\u00a0151 |
Share of results of joint ventures | (2\u00a0327) | (1\u00a0645) |
Adjustments in respect of income tax of previous years | 4\u00a0902 | (2\u00a0626) |
Withholding tax, non-refundable | 1\u00a0651 | 1\u00a0107 |
Adjustments in respect of changes to tax rates and regulations | (114) | (853) |
Currency translation effects\u200c2 | (1\u00a0030) | (4\u00a0630) |
Other differences | 503 | 1\u00a0640 |
Income tax expense | 27\u00a0203 | 15\u00a0514 |
Effective income tax rate | 30.7% | 18.3% |
1The Group tax rate has been set to 24% during 2024 (24% in 2023).
2The tax effect on currency valuation is estimated as Elopak ASA tax filling is submitted in NOK against a functional currency in Euro.
Where transfer pricing adjustments have been made, mutual agreement procedure (MAP) between the affected countries are normally available. See note 2for further details.
In tax disputes, the Group accounts for tax costs according to decisions made by local tax authorities, or according to subsequent tax rulings in the actual case, or similar cases. On March 26, 2025, Elopak ASA lost the dividend distribution case regarding taxation of dividends from Elopak Systems AG to Elopak ASA, formerly Elopak AS. The full tax cost of NOK 69 600 thousand was recognized and paid in accordance with the decision of the tax office in 2017.
", "dimensions": { "concept": "ifrs-full:DisclosureOfIncomeTaxExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__45": { "value": "Payable tax
EUR 1\u00a0000 | 2024 | 2023 |
Payable tax opening balance | 759 | (3\u00a0185) |
Current income tax | 26\u00a0638 | 18\u00a0578 |
Translation | 956 | (278) |
Net tax paid | (27\u00a0299) | (14\u00a0356) |
Payable tax closing balance | 1\u00a0054 | 759 |
Note 10 Discontinued operations
In 2022, the deconsolidation of Russian operations resulted in a purchase price payable over five installments. After its initial recognition, the receivable is evaluated at amortized cost.
In 2023, Elopak received the first installment and part of the second installment. In 2024, Elopak received the third and part of the second installment.
One of Elopak\u2019s former customers in Russia had won a legal claim which was recognized as a part of discontinued operations in 2023.
In 2024, the Russian local court satisfied the customers claim for direct damage and has dismissed the customers claim of loss profit leading to a partial reversal of contingent liability recognized in 2023.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDiscontinuedOperationsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__48": { "value": "Note 11 Development cost and other intangible assets
Accounting policy
Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally generated intangible asset arising from development is recognized in the statement of financial position if the recognition criteria in IAS 38 are met. After initial recognition the assets are carried at cost less any accumu-lated amortization and impairment losses. See Note 1for impairment of non-financial assets accounting policy.
Development cost and other intangible assets
2024 | ||||
EUR 1\u00a0000 | Customer relations | Development costs | IT-software | Total |
Cost at 1.1 | 26\u00a0469 | 52\u00a0889 | 80\u00a0671 | 160\u00a0029 |
Additions | - | 3\u00a0000 | 2\u00a0801 | 5\u00a0801 |
Disposals | - | (741) | (4\u00a0538) | (5\u00a0278) |
Currency translation | 1\u00a0095 | 2 | 147 | 1\u00a0243 |
Cost at 31.12 | 27\u00a0564 | 55\u00a0151 | 79\u00a0080 | 161\u00a0795 |
Acc. amortization and impairment losses at 1.1 | 8\u00a0560 | 29\u00a0832 | 59\u00a0337 | 97\u00a0729 |
Current year amortization charge | 2\u00a0831 | 4\u00a0520 | 8\u00a0420 | 15\u00a0772 |
Amortization disposals | - | (592) | (4\u00a0538) | (5\u00a0129) |
Currency translation amortization | 389 | - | 103 | 493 |
Currency translation impairment | - | - | 16 | 16 |
Accumulated amortization at 31.12 | 11\u00a0780 | 33\u00a0761 | 62\u00a0747 | 108\u00a0287 |
Net accumulated impairment at 31.12 | - | - | 592 | 592 |
Carrying amount 31.12 | 15\u00a0784 | 21\u00a0390 | 15\u00a0741 | 52\u00a0915 |
Economic life | 0-8 years | 5-10 years | 3-7 years | |
Amortization method | Linear | Linear | Linear |
2023 | ||||
EUR 1\u00a0000 | Customer relations | Development costs | IT-software | Total |
Cost at 1.1 | 26\u00a0183 | 47\u00a0814 | 79\u00a0502 | 153\u00a0499 |
Additions | - | 5\u00a0215 | 1\u00a0415 | 6\u00a0630 |
Disposals | - | (146) | (126) | (272) |
Currency translation | 286 | 6 | (121) | 171 |
Cost at 31.12 | 26\u00a0469 | 52\u00a0889 | 80\u00a0671 | 160\u00a0029 |
Acc. amortization and impairment losses at 1.1 | 5\u00a0698 | 25\u00a0748 | 50\u00a0722 | 82\u00a0168 |
Current year amortization charge | 2\u00a0812 | 4\u00a0084 | 8\u00a0744 | 15\u00a0640 |
Current year impairment charge | - | - | 17 | 17 |
Amortization disposals | - | - | (29) | (29) |
Currency translation amortization | 50 | - | (109) | (59) |
Currency translation impairment | - | - | (9) | (9) |
Accumulated amortization at 31.12 | 8\u00a0560 | 29\u00a0832 | 58\u00a0761 | 97\u00a0152 |
Net accumulated impairment at 31.12 | - | - | 576 | 576 |
Carrying amount 31.12 | 17\u00a0910 | 23\u00a0057 | 21\u00a0334 | 62\u00a0300 |
Economic life | 0-8 years | 5-10 years | 3-7 years | |
Amortization method | Linear | Linear | Linear |
Customer relations include fair value of customer and supply contracts from the acquisition of GLS Elopak and Naturepak Beverage Packaging Ltd in 2022. Customer relations have an estimated economic life of 8 years.
The additions under development costs relate to the development of new filling and production machine technology.
Most of the IT-software are additions related to investments in IT system for management of materials flow and finances. The system roll-out started in 2017 and continued throughout 2024.
Research and development
The cost of research and development not eligible for capitalization which have been expensed in 2024 amounts to EUR 17.0 million. Comparable amount in 2023 was EUR 12.8 million.
Accounting policy
Expenditure on research activities is recognized as an expense in the period in which it is incurred. An internally generated intangible asset arising from development is recognized in the statement of financial position if the recognition criteria in IAS 38 are met. After initial recognition the assets are carried at cost less any accumu-lated amortization and impairment losses. See Note 1for impairment of non-financial assets accounting policy.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForResearchAndDevelopmentExpenseExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__50": { "value": "Note 12 Goodwill
Accounting policy
Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group\u2019s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units expected to benefit from the synergies of the combination irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impair-ment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
The table below shows the cost value, additions, disposals, impairment charges and carrying value for the various goodwill items in the Group.
Goodwill
EUR 1\u00a0000 | 2024 | 2023 |
Cost at 1.1 | 112\u00a0274 | 111\u00a0181 |
Currency translation | 1\u00a0521 | 1\u00a0093 |
Cost at 31.12 | 113\u00a0795 | 112\u00a0274 |
Accumulated impairment 1.1. | 6\u00a0213 | 6\u00a0223 |
Currency translation impairment | (3) | (9) |
Accumulated impairment at 31.12 | 6\u00a0211 | 6\u00a0213 |
Carrying amount 31.12 | 107\u00a0584 | 106\u00a0061 |
Impairment test for goodwill
Goodwill is allocated to the Group\u2019s cash generating units and is tested for impairment annually or more frequently if there are indications of impairment. Testing for impairment involves the determination of the recoverable amount of the cash generating unit. The recoverable amount is determined by discounting future expected cash flows, based on the business plans for the cash generating units. The discount rate applied to the future cash flow is based on the Group\u2019s weighted average cost of capital (WACC), adapted to the market\u2019s apprehension of the risk factors for each cash generating unit.
Cash generating units
The goodwill items specified above are related to the Elopak Group. Goodwill related to acquisition of Elopak Denmark A/S, Elopak AB, Elofin OY, Variopak and Naturepak Beverage Packing Co.Ltd. are allocated to the cash
generating unit Europe. This CGU, renamed to Elopak EMEA following the acquisition of Naturepak Beverage Packing Co.Ltd. in March 2022, consists of Elopak\u2019s European markets, including the internal production and supply organization and Naturepak Beverage, a leading provider of fresh liquid carton and packaging systems in the MENA region with local production facilities in Morocco and Saudi Arabia. These goodwill items have a carrying value of EUR 104.7 million as of December 31, 2024 (EUR 103.2 million as of December 31, 2023). Goodwill related to the acquisition of GLS Elopak in April 2022 is allocated to a separate cash generating unit as operations are mainly in India (GLS Elopak buys raw materials, produces cartons and sells goods to the customers). This goodwill item has a carrying value of EUR 2.9 million as of December 31, 2024 (EUR 2.8 million as of December 31, 2023).
The basis to consider Elopak EMEA as one cash generating unit is the inherent structure of the market. Customers are merging across borders and are increasingly treating EMEA as one market. The historical requirement from customers to source from specific plants is no longer present. Elopak is adapting to this trend by allocating produc-tion flexibly to the plants in EMEA in order to optimize logistics and production cost. According to this development, the margins along Elopak\u2019s value chain will be subject to change from one year to another, and therefore the appropriate way to assess indicators for impairment for the EMEA business is as one unit.
Impairment test and assumptions
Recoverable amount for the cash generating units Elopak EMEA and GLS Elopak are calculated based on values in use. The cash flows that are basis for the impairment tests are based on assumptions about future sales volumes, selling prices and direct costs. These are uncertain factors. These assumptions are based on historical experience from the markets, adopted budgets and the Group\u2019s expectations of market changes and other financial impacts from climate risks. Upon completion of the impairment tests in 2024 and 2023 the Group does not expect signifi-cant changes in current trade in EMEA and expected future cash flows there are mainly a continuation of observed trends. GLS Elopak is continuing its expansion, relying on a huge and one of the fastest growing carton market in the world.
Calculated recoverable amounts in the impairment tests are higher than carrying amounts, and based on the tests, it is concluded that there is no impairment in 2024 or 2023.
Determined cash flows are discounted with discount rates presented in the table below.
Detailed description of the assumptions used
Discount rate after tax | Discount rate before tax | |||
EUR 1\u00a0000 | 2024 | 2023 | 2024 | 2023 |
Elopak EMEA | 6.5% | 6.9% | 6.9% | 7.4% |
Elopak GLS | 12.5% | 13.1% | 13.1% | 14.1% |
The discount rates reflect the current markets assessment of the risk specific to the cash generating units. The rates are estimated based on the weighted average cost of capital for similar assets in the market. These rates have been further adjusted to reflect the specific risk factors related to the cash generating units, which have not been reflected in the cash flow.
Average growth rate for the future 2 to 5 years period is based on Elopak Group\u2019s expectations for the market development that the business operates in. When estimating future cash flows committed operating efficiency improvement measures are taken into account. Changes in the outcomes for these initiatives may influence future estimated cash flows.
Investment costs necessary to meet expected future growth are taken into account. Based on management\u2019s assessment, the estimated investment costs do not include investments that improve the assets performance. The related cash flows are treated correspondingly.
Management believes that there is no reasonably possible change in any of the key assumptions that would cause the carrying value of the unit to materially exceed its recoverable amount. Sensitivity analysis have been performed based on a 0.5% increase and decrease of the discount rate and perpetual growth. The value in the low end of the range is higher than the carrying amount, hence the sensitivity analysis shows no indication of impairment.
Accounting policy
Goodwill arising on the acquisition of a subsidiary or a jointly controlled entity represents the excess of the cost of acquisition over the Group\u2019s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the subsidiary at the date of acquisition. Goodwill is initially recognized as an asset at cost and is subsequently measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill is allocated to each of the Group\u2019s cash-generating units expected to benefit from the synergies of the combination irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Cash-generating units to which goodwill has been allocated are tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impair-ment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit. An impairment loss recognized for goodwill is not reversed in a subsequent period. On disposal of a subsidiary or a jointly controlled entity, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForGoodwillExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__52": { "value": "Note 13 Property, plant and equipment
Accounting policy
Capitalized property, plant and equipment are reflected at cost less accumulated depreciation and accumu-lated impairment losses. Property, plant and equipment, other than land and properties under construction, are depreciated over their estimated useful lives, using the straight-line method and taking into consideration any residual values. See Note 1for impairment of non-financial assets accounting policy.
Property, plant and equipment
2024 | ||||
EUR 1\u00a0000 | Landand buildings | Machineryand plant | Officeand transport | Total |
Cost at 1.1 | 54\u00a0692 | 582\u00a0248 | 20\u00a0911 | 657\u00a0851 |
Additions | 370 | 92\u00a0746 | 821 | 93\u00a0937 |
Disposals | (477) | (3\u00a0932) | (488) | (4\u00a0897) |
Transfer to/from inventory / reclassification | 2\u00a0668 | (5\u00a0834) | 2\u00a0176 | (990) |
Currency translation | 589 | 6\u00a0612 | 274 | 7\u00a0476 |
Cost at 31.12 | 57\u00a0843 | 671\u00a0839 | 23\u00a0694 | 753\u00a0376 |
Acc. depreciation and impairment losses at 1.1 | 30\u00a0636 | 406\u00a0249 | 18\u00a0032 | 454\u00a0917 |
Current year depreciation charge | 1\u00a0450 | 29\u00a0186 | 1\u00a0797 | 32\u00a0433 |
Current year impairment charge | 10 | 2\u00a0533 | 25 | 2\u00a0568 |
Depreciation disposals | (476) | (3\u00a0899) | (488) | (4\u00a0863) |
Impairment disposals | - | (15) | - | (15) |
Currency translation | 128 | 2\u00a0980 | 215 | 3\u00a0323 |
Acc. depreciation and impairment losses at 31.12 | 31\u00a0748 | 437\u00a0034 | 19\u00a0581 | 488\u00a0363 |
Carrying amount 31.12 | 26\u00a0095 | 234\u00a0805 | 4\u00a0113 | 265\u00a0013 |
Economic life | 0-40 years | 3-15 years | 3-12 years | |
Amortization method | Linear | Linear | Linear |
The increase in machinery and plant in 2024 is related to the construction of our new production plant in Little Rock, Arkansas
2023 | ||||
EUR 1\u00a0000 | Landand buildings | Machineryand plant | Officeand transport | Total |
Cost at 1.1 | 52\u00a0701 | 556\u00a0880 | 20\u00a0390 | 629\u00a0971 |
Additions | 256 | 34\u00a0198 | 381 | 34\u00a0835 |
Disposals | (434) | (1\u00a0602) | (370) | (2\u00a0406) |
Transfer to/from inventory / reclassification | 2\u00a0475 | (4\u00a0535) | 634 | (1\u00a0426) |
Currency translation | (305) | (2\u00a0694) | (124) | (3\u00a0123) |
Cost at 31.12 | 54\u00a0692 | 582\u00a0248 | 20\u00a0911 | 657\u00a0851 |
Acc. depreciation and impairment losses at 1.1 | 29\u00a0375 | 381\u00a0609 | 17\u00a0012 | 427\u00a0997 |
Current year depreciation charge | 1\u00a0610 | 27\u00a0981 | 1\u00a0453 | 31\u00a0043 |
Current year impairment charge | 164 | 979 | 25 | 1\u00a0168 |
Depreciation disposals | (301) | (1\u00a0072) | (361) | (1\u00a0734) |
Impairment disposals | (132) | (36) | (4) | (172) |
Depreciation transferred to inventory / reclassification | - | (1\u00a0625) | - | (1\u00a0625) |
Currency translation | (80) | (1\u00a0587) | (93) | (1\u00a0760) |
Acc. depreciation and impairment losses at 31.12 | 30\u00a0636 | 406\u00a0249 | 18\u00a0032 | 454\u00a0917 |
Carrying amount 31.12 | 24\u00a0056 | 175\u00a0999 | 2\u00a0879 | 202\u00a0934 |
Economic life | 0-40 years | 3-15 years | 3-12 years | |
Amortization method | Linear | Linear | Linear |
The lease revenues and commitments for Carton filling machines rented to customers as well as the lease expenses and commitments for equipment leased and used in our production are disclosed in Note14.
The company has not pledged property, plant and equipment as security for liabilities.
Property, plant and equipment specified by geographical area\u200c1
EUR 1\u00a0000 | 2024 | 2023 |
Canada | 21 400 | 23 778 |
Denmark | 23 856 | 24 708 |
Germany | 80 286 | 71 065 |
India | 12 910 | 10 593 |
Morocco | 7 949 | 7 492 |
Netherlands | 50 886 | 46 349 |
Norway | 3 057 | 3 779 |
Saudi Arabia | 2 727 | 2 982 |
Ukraine | 3 027 | 3 271 |
United Kingdom | 9 920 | 8 671 |
United States | 48 795 | 59 |
Other | 201 | 186 |
Total | 265 013 | 202 934 |
1The split by geographical area is based on the jurisdiction of legal owner.
Other off-balance sheet commitments and contingencies
EUR 1\u00a0000 | 2024 | 2023 |
Commitments for the acquisition of property, plant and equipment | 28\u00a0330 | 7\u00a0012 |
Accounting policy
Capitalized property, plant and equipment are reflected at cost less accumulated depreciation and accumu-lated impairment losses. Property, plant and equipment, other than land and properties under construction, are depreciated over their estimated useful lives, using the straight-line method and taking into consideration any residual values. See Note 1for impairment of non-financial assets accounting policy.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForPropertyPlantAndEquipmentExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__54": { "value": "Other off-balance sheet commitments and contingencies
EUR 1\u00a0000 | 2024 | 2023 |
Commitments for the acquisition of property, plant and equipment | 28\u00a0330 | 7\u00a0012 |
Note 14 Leases
Accounting policy
The Group as a lessee
The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases and leases of low value assets. For short-term leases and leases of low value assets, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components and instead accounts for any lease and associated non-lease components as a single arrangement. The Group has applied this practical expedient to all classes of right-of-use assets, except for rent of buildings.
The Group as a lessor
The group enters into lease agreements as a lessor with respect to filling machines placed with customers. These leases are classified as finance or operating leases. Whenever the terms of the lease transfer substan-tially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
See Note 1for impairment of non-financial assets accounting policy.
1. The Group as lessor - operating leases
The Group leases out filling machines under operating leases. Rental income was EUR 9.8 million in 2024 compared to 10.0 million in 2023. Lease terms are between 1 year to 10 years. Options to extend the lease term or purchase the leased asset reflect market conditions at the time of exercising the option.
At the reporting date the Group has future minimum lease receivables as follows (undiscounted)
EUR 1\u00a0000 | 2024 | 2023 |
Due within year 1 | 8\u00a0884 | 9\u00a0578 |
Due within year 2 | 6\u00a0818 | 8\u00a0083 |
Due within year 3 | 6\u00a0124 | 6\u00a0329 |
Due within year 4 | 5\u00a0323 | 5\u00a0128 |
Due within year 5 | 3\u00a0757 | 4\u00a0195 |
Due after year 5 | 8\u00a0393 | 7\u00a0652 |
Total | 39\u00a0298 | 40\u00a0965 |
2. The Group as lessor - finance lease receivables
The group leases out filling machines under finance leases. Generally, lease terms are between 5 years to 10 years. Options to extend or purchase the leased asset will normally reflect market pricing.
Amounts receivable under finance leases (undiscounted)
EUR 1\u00a0000 | 2024 | 2023 |
Due within year 1 | 1\u00a0993 | 2\u00a0150 |
Due within year 2 | 2\u00a0019 | 1\u00a0581 |
Due within year 3 | 1\u00a0591 | 1\u00a0493 |
Due within year 4 | 1\u00a0241 | 1\u00a0083 |
Due within year 5 | 1\u00a0107 | 769 |
Due after year 5 | 3\u00a0373 | 1\u00a0684 |
Total receivables under finance leases, undiscounted | 11\u00a0324 | 8\u00a0760 |
Unearned finance income | 2\u00a0306 | 1\u00a0676 |
Total receivables under finance leases, discounted | 9\u00a0017 | 7\u00a0084 |
There is no impairment loss allowance related to the finance lease receivables in 2024 and 2023. Credit risk related to the filling machine lease agreements is considered very low. Credit risk is considered insignificant due to right to require return of the machine in case of default. The average effective interest rate contracted is approximately 6.29% per annum.
The Group as lessee
The Group leases several assets including buildings, plants, cars and filling machines.
Right-of-use assets
December 31, 2024 | ||||
EUR 1\u00a0000 | Property and buildings | Machinery | Office and transport | Total |
Carrying amount 1.1 | 51\u00a0596 | 24\u00a0800 | 9\u00a0974 | 86\u00a0370 |
Additions and adjustments | 513 | 17\u00a0400 | 4\u00a0076 | 21\u00a0989 |
Disposals | - | (18) | (190) | (208) |
Current year depreciation charge | (4\u00a0426) | (7\u00a0521) | (4\u00a0227) | (16\u00a0173) |
Carrying amount at 31.12 | 47\u00a0683 | 34\u00a0661 | 9\u00a0634 | 91\u00a0978 |
December 31, 2023 | ||||
EUR 1\u00a0000 | Property and buildings | Machinery | Office and transport | Total |
Carrying amount 1.1 | 52\u00a0148 | 13\u00a0968 | 10\u00a0668 | 76\u00a0784 |
Additions and adjustments | 3\u00a0896 | 16\u00a0043 | 3\u00a0261 | 23\u00a0200 |
Disposals | (6) | (33) | (111) | (151) |
Current year depreciation charge | (4\u00a0442) | (5\u00a0177) | (3\u00a0844) | (13\u00a0463) |
Carrying amount at 31.12 | 51\u00a0596 | 24\u00a0800 | 9\u00a0974 | 86\u00a0370 |
The Group has one significant purchase options for the purchase of the High Bay warehouse lease agreement. This purchase option can be exercised in 2042 and the purchase price is market value at exercise date. An exercise of the purchase option is not considered to be reasonably certain, hence it is not recognized.
In 2024, expenses related to short-term leases were EUR 0 thousand, expenses related to low value assets were EUR 777 thousand and expenses related to variable payments not included in the measurement of lease liabilities were EUR 209 thousand.
The Group has signed contracts for Tethered Cap and other closure lines with a lease term of 5 years and a nominal value of EUR 20.8 million, which will commence at different stages during 2024.
Lease liabilities
EUR 1\u00a0000 | Note | 2024 | 2023 |
Current lease liabilities | 23\u00a0312 | 23\u00a0096 | |
Non-current lease liabilities | 83\u00a0219 | 78\u00a0424 | |
Total | 106\u00a0531 | 101\u00a0520 |
At the reporting date the Group has lease liabilities as follows (undiscounted)
EUR 1\u00a0000 | 2024 | 2023 |
Due within year 1 | 25\u00a0516 | 25\u00a0505 |
Due within year 2 | 22\u00a0144 | 18\u00a0597 |
Due within year 3 | 19\u00a0318 | 17\u00a0262 |
Due within year 4 | 15\u00a0171 | 14\u00a0637 |
Due within year 5 | 12\u00a0870 | 11\u00a0258 |
Due after year 5 | 61\u00a0981 | 70\u00a0132 |
Total | 157\u00a0001 | 157\u00a0390 |
Accounting policy
The Group as a lessee
The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in which it is the lessee, except for short-term leases and leases of low value assets. For short-term leases and leases of low value assets, the Group recognises the lease payments as an operating expense on a straight-line basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased assets are consumed.
As a practical expedient, IFRS 16 permits a lessee not to separate non-lease components and instead accounts for any lease and associated non-lease components as a single arrangement. The Group has applied this practical expedient to all classes of right-of-use assets, except for rent of buildings.
The Group as a lessor
The group enters into lease agreements as a lessor with respect to filling machines placed with customers. These leases are classified as finance or operating leases. Whenever the terms of the lease transfer substan-tially all the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. All other leases are classified as operating leases.
See Note 1for impairment of non-financial assets accounting policy.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForLeasesExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__57": { "value": "Note 15 Investment in joint ventures
Accounting policy
A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control; that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.
The results and assets and liabilities of a joint venture company are incorporated in these financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost as adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the equity investee. The statement of comprehensive income reflects the share of the results of operations of the associate (net after tax). Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the joint venture company recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the investment. After application of the equity method the Group determines whether it is necessary to recognise an additional impairment on the individual investments. The Group determines if there are indications of impairment, and if this is the case, the Group calculates the impairment loss as the difference between the recoverable amount of the joint venture and its carrying value.
The investment in the joint ventures specified below have been accounted for in accordance with the equity method of accounting. Lala Elopak S.A. de C.V. is a carton production plant in Mexico selling cartons to Americas. Impresora Del Yaque is a carton production facility in the Dominican Republic also selling cartons to Americas. Elopak Nampak Africa Limited is a sales centre in Kenya, established in 2020, selling cartons to Africa. The investments are joint ventures because the investment partners have the same rights and control in the companies.
Investments in joint ventures
2024 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak NampakAfrica Ltd | Total |
Ownership - and voting share | 49% | 51% | 50% | |
Carrying amount 1.1 | 27\u00a0805 | 10\u00a0163 | (258) | 37\u00a0709 |
Income from joint venture companies | 6\u00a0988 | 2\u00a0707 | - | 9\u00a0696 |
Dividend received | (3\u00a0411) | (2\u00a0209) | - | (5\u00a0620) |
Recognized to equity | 29 | - | - | 29 |
Currency translation | (4\u00a0205) | 184 | - | (4\u00a0021) |
Carrying amount 31.12 | 27\u00a0206 | 10\u00a0845 | (258) | 37\u00a0793 |
2023 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak NampakAfrica Ltd | Total |
Ownership - and voting share | 49% | 51% | 50% | |
Carrying amount 1.1 | 24\u00a0210 | 10\u00a0707 | (244) | 34\u00a0673 |
Income from joint venture companies | 4\u00a0730 | 2\u00a0139 | (14) | 6\u00a0855 |
Dividend received | (4\u00a0004) | (1\u00a0907) | - | (5\u00a0911) |
Recognized to equity | (6) | - | - | (6) |
Currency translation | 2\u00a0874 | (777) | - | 2\u00a0097 |
Carrying amount 31.12 | 27\u00a0805 | 10\u00a0163 | (258) | 37\u00a0709 |
Summarized financial information
2024 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak Nampak Africa Ltd | Total |
Revenue | 94\u00a0795 | 28\u00a0435 | - | 123\u00a0230 |
Operating profit | 16\u00a0034 | 4\u00a0818 | (8) | 20\u00a0845 |
Profit after tax (loss) | 14\u00a0262 | 5\u00a0309 | 1 | 19\u00a0571 |
Other comprehensive income that may be reclassified to net income | (8\u00a0582) | 361 | - | (8\u00a0221) |
Total comprehensive income | 5\u00a0680 | 5\u00a0670 | 1 | 11\u00a0350 |
Current assets | 53\u00a0849 | 20\u00a0265 | 137 | 74\u00a0250 |
Non-current assets | 14\u00a0442 | 3\u00a0428 | 1 | 17\u00a0870 |
Current liabilities | 16\u00a0476 | 2\u00a0426 | 86 | 18\u00a0988 |
Non-current liabilities | 2\u00a0166 | - | 567 | 2\u00a0733 |
Equity | 49\u00a0648 | 21\u00a0266 | (516) | 70\u00a0399 |
Group\u2019s share of profit after tax (loss) | 6\u00a0988 | 2\u00a0707 | - | 9\u00a0696 |
2023 | ||||
EUR 1\u00a0000 | Lala ElopakS.A. de C.V. | ImpresoraDel Yaque | Elopak Nampak Africa Ltd | Total |
Revenue | 95\u00a0362 | 24\u00a0703 | 21 | 120\u00a0086 |
Operating profit | 13\u00a0281 | 4\u00a0267 | (29) | 17\u00a0519 |
Profit after tax (loss) | 9\u00a0653 | 4\u00a0195 | (28) | 13\u00a0820 |
Other comprehensive income that may be reclassified to net income | 5\u00a0866 | (1\u00a0523) | - | 4\u00a0342 |
Total comprehensive income | 15\u00a0518 | 2\u00a0672 | (28) | 18\u00a0163 |
Current assets | 52\u00a0932 | 18\u00a0786 | 125 | 71\u00a0842 |
Non-current assets | 16\u00a0255 | 3\u00a0053 | 1 | 19\u00a0309 |
Current liabilities | 16\u00a0234 | 1\u00a0911 | 75 | 18\u00a0221 |
Non-current liabilities | 2\u00a0969 | - | 567 | 3\u00a0536 |
Equity | 49\u00a0984 | 19\u00a0928 | (517) | 69\u00a0395 |
Group\u2019s share of profit after tax (loss) | 4\u00a0730 | 2\u00a0139 | (14) | 6\u00a0855 |
Accounting policy
A joint venture is a contractual arrangement whereby the Group and other parties undertake an economic activity that is subject to joint control; that is when the strategic financial and operating policy decisions relating to the activities require the unanimous consent of the parties sharing control.
The results and assets and liabilities of a joint venture company are incorporated in these financial statements using the equity method of accounting. Under the equity method, investments in associates are carried in the consolidated statement of financial position at cost as adjusted for post-acquisition changes in the Group\u2019s share of the net assets of the equity investee. The statement of comprehensive income reflects the share of the results of operations of the associate (net after tax). Any excess of the cost of acquisition over the Group\u2019s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of the joint venture company recognised at the date of acquisition is recognised as goodwill. The goodwill is included within the carrying amount of the investment and is assessed for impairment as part of the investment. After application of the equity method the Group determines whether it is necessary to recognise an additional impairment on the individual investments. The Group determines if there are indications of impairment, and if this is the case, the Group calculates the impairment loss as the difference between the recoverable amount of the joint venture and its carrying value.
The investment in the joint ventures specified below have been accounted for in accordance with the equity method of accounting. Lala Elopak S.A. de C.V. is a carton production plant in Mexico selling cartons to Americas. Impresora Del Yaque is a carton production facility in the Dominican Republic also selling cartons to Americas. Elopak Nampak Africa Limited is a sales centre in Kenya, established in 2020, selling cartons to Africa. The investments are joint ventures because the investment partners have the same rights and control in the companies.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForInvestmentsInJointVentures", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__59": { "value": "Note 16 Other non-current assets
EUR 1\u00a0000 | 2024 | 2023 |
Contract assets | 2\u00a0443 | 3\u00a0311 |
Non-current finance lease receivables (Note14) | 6\u00a0862 | 5\u00a0113 |
Financial instruments (Note24) | 1\u00a0086 | 3\u00a0521 |
Other non-current assets | 2\u00a0721 | 2\u00a0948 |
Carrying amount 31.12 | 13\u00a0111 | 14\u00a0892 |
Note 17 Inventory
Accounting policy
Cost is calculated using the FIFO cost formula for cartons, filling machines and spare parts.
Inventory
2024 | ||||
EUR 1\u00a0000 | Raw materials | Work in progress | Finished goods | Total |
Cost 31.12 | 30\u00a0915 | 97\u00a0696 | 81\u00a0983 | 210\u00a0594 |
Write down 01.01 | (3 558) | (19) | (7 736) | (11 313) |
Realised | (5) | - | 122 | 117 |
Write down | 108 | - | (1 571) | (1\u00a0463) |
Write down per 31.12. | (3\u00a0455) | (19) | (9 185) | (12 660) |
Carrying amount 31.12 | 27\u00a0460 | 97\u00a0677 | 72\u00a0798 | 197\u00a0935 |
2023 | ||||
EUR 1\u00a0000 | Raw materials | Work in progress | Finished goods | Total |
Cost 31.12 | 27\u00a0621 | 93\u00a0456 | 82\u00a0424 | 203\u00a0502 |
Write down 01.01 | (3\u00a0755) | (19) | (7\u00a0100) | (10\u00a0874) |
Realised | 291 | - | 424 | 715 |
Write down | (93) | - | (1\u00a0060) | (1\u00a0153) |
Write down per 31.12. | (3\u00a0558) | (19) | (7\u00a0736) | (11\u00a0313) |
Carrying amount 31.12 | 24\u00a0063 | 93\u00a0437 | 74\u00a0688 | 192\u00a0188 |
Accounting policy
Cost is calculated using the FIFO cost formula for cartons, filling machines and spare parts.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForMeasuringInventories", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__62": { "value": "Note 18 Trade receivables and other current assets
Accounting policy
Trade and other receivables that are held to collect contractual cash flows only and the contractual cash flows are solely principal and interest are measured at amortised cost using the effective interest method, less any impairment. Short-term receivables are measured at nominal values reduced by appropriate allow-ances for expected credit losses.
Accounts receivables which are subject to non-recourse factoring are classified as instruments held to collect contractual cash flows and for sale and are measured at fair value through other comprehensive income until they are derecognised.
See Note 1for non-derivative financial instruments accounting policy.
Impairment of financial assets
The loss allowance for expected credit losses is mostly related to individual assessments and is recognised for financial asset measured at amortised cost or fair value through OCI, contract assets under IFRS 15, lease receivables under IFRS 16 and certain written loan commitments and financial guarantee contracts. Loss allowance is assessed at each reporting day. Loss allowances for trade receivables, contract assets and lease receivables that do not contain a significant financing component are measured at an amount equals to lifetime expected credit losses. Loss allowances for trade receivables, contract assets and lease receivables that do contain a significant financing component are measured at an amount equals to the lifetime expected credit losses including interest revenues. When there is no objective evidence of impairment, interest reve-nues are calculated based on gross carrying amount, otherwise interests are calculated based on the net carrying amount. The amount of the loss is recognised in profit or loss. In case of changes to expected credit losses in a subsequent period, the previously recognised impairment loss is reversed to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss is recognised in profit or loss.
Trade receivables
EUR 1\u00a0000 | 2024 | 2023 |
Accounts receivable, gross | 125\u00a0963 | 115\u00a0000 |
Allowances | (5\u00a0737) | (4\u00a0758) |
Carrying amount 31.12 | 120\u00a0226 | 110\u00a0243 |
Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.
2024 | |||
EUR 1\u00a0000 | Gross carrying amount | Loss rate | Expectedcredit loss |
Current | 100\u00a0558 | 3.3% | 3\u00a0325 |
Up to 7 days | 6\u00a0446 | - | 2 |
Up to 30 days | 8\u00a0415 | 0.1% | 8 |
30-60 days | 3\u00a0298 | 2.3% | 77 |
60-90 days | 1\u00a0187 | 3.5% | 41 |
Over 90 days | 6\u00a0058 | 37.7% | 2\u00a0283 |
Total | 125\u00a0963 | 4.6% | 5\u00a0737 |
2023 | |||
EUR 1\u00a0000 | Gross carrying amount | Loss rate | Expectedcredit loss |
Current | 96\u00a0131 | 3.3% | 3\u00a0218 |
Up to 7 days | 7\u00a0863 | - | - |
Up to 30 days | 4\u00a0292 | 0.3% | 13 |
30-60 days | 2\u00a0228 | 0.3% | 6 |
60-90 days | 1\u00a0102 | 0.1% | 1 |
Over 90 days | 3\u00a0383 | 44.9% | 1\u00a0519 |
Total | 115\u00a0000 | 4.1% | 4\u00a0758 |
Movement in the allowance for expected credit losses of trade receivables
EUR 1\u00a0000 | 2024 | 2023 |
As at 1.1 | 4\u00a0758 | 4\u00a0045 |
Change in provision for expected credit losses | 934 | 473 |
Change in write-off | (36) | (98) |
Foreign exchange movement | 81 | 338 |
Carrying amount 31.12 | 5\u00a0737 | 4\u00a0758 |
Other current assets
EUR 1\u00a0000 | 2024 | 2023 |
Project income earned, not invoiced | 39 112 | 44 643 |
Prepaid support | 1 939 | 1 832 |
Contract assets | 41 051 | 46 475 |
Prepayments and accrued expenses | 24 792 | 20 519 |
V.A.T. receivable | 27 776 | 20 820 |
Accrued income tax receivables | 4 240 | 6 238 |
Financial instruments | 714 | 1 064 |
Finance leasing receivable short-term | 2 156 | 1 971 |
Other current receivables | 17 779 | 16 632 |
Carrying amount 31.12\u200c1 | 118 508 | 113 720 |
1Contract assets consist of prepaid rebates to customers which will be offset against contracted future sales of carton and closures. Total of prepaid support was EUR 4.4 million in 2024 and 5.1 million in 2023. Based on customer knowledge and experience of very few losses, the credit risk related to prepaid support is considered insignificant.
Accounting policy
Trade and other receivables that are held to collect contractual cash flows only and the contractual cash flows are solely principal and interest are measured at amortised cost using the effective interest method, less any impairment. Short-term receivables are measured at nominal values reduced by appropriate allow-ances for expected credit losses.
Accounts receivables which are subject to non-recourse factoring are classified as instruments held to collect contractual cash flows and for sale and are measured at fair value through other comprehensive income until they are derecognised.
See Note 1for non-derivative financial instruments accounting policy.
Impairment of financial assets
The loss allowance for expected credit losses is mostly related to individual assessments and is recognised for financial asset measured at amortised cost or fair value through OCI, contract assets under IFRS 15, lease receivables under IFRS 16 and certain written loan commitments and financial guarantee contracts. Loss allowance is assessed at each reporting day. Loss allowances for trade receivables, contract assets and lease receivables that do not contain a significant financing component are measured at an amount equals to lifetime expected credit losses. Loss allowances for trade receivables, contract assets and lease receivables that do contain a significant financing component are measured at an amount equals to the lifetime expected credit losses including interest revenues. When there is no objective evidence of impairment, interest reve-nues are calculated based on gross carrying amount, otherwise interests are calculated based on the net carrying amount. The amount of the loss is recognised in profit or loss. In case of changes to expected credit losses in a subsequent period, the previously recognised impairment loss is reversed to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss is recognised in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForTradeAndOtherReceivablesExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__64": { "value": "Impairment of financial assets
The loss allowance for expected credit losses is mostly related to individual assessments and is recognised for financial asset measured at amortised cost or fair value through OCI, contract assets under IFRS 15, lease receivables under IFRS 16 and certain written loan commitments and financial guarantee contracts. Loss allowance is assessed at each reporting day. Loss allowances for trade receivables, contract assets and lease receivables that do not contain a significant financing component are measured at an amount equals to lifetime expected credit losses. Loss allowances for trade receivables, contract assets and lease receivables that do contain a significant financing component are measured at an amount equals to the lifetime expected credit losses including interest revenues. When there is no objective evidence of impairment, interest reve-nues are calculated based on gross carrying amount, otherwise interests are calculated based on the net carrying amount. The amount of the loss is recognised in profit or loss. In case of changes to expected credit losses in a subsequent period, the previously recognised impairment loss is reversed to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Any subsequent reversal of an impairment loss is recognised in profit or loss.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForImpairmentOfFinancialAssetsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__65": { "value": "Note 19 Equity and shareholders information
Elopak ASA was established with share capital of NOK 376\u00a0906\u00a0620 (EUR 50\u00a0155\u00a0321) and the total number of shares outstanding for Elopak ASA was 269\u00a0219\u00a0014, each with a face value of NOK 1.4 (EUR 0.19). At December 31, 2024, the company has a share capital of NOK 376 587 901 (EUR 50\u00a0112\u00a0977) and the total number of shares outstanding for Elopak ASA is 268\u00a0991\u00a0358, each with a face value of NOK 1.4 (EUR 0.19).
Treasury shares / Share-based bonus
Elopak ASA\u2019s ordinary general meeting on May 13, 2024 approved a share buy-back program for the repurchase of up to NOK 37\u00a0690\u00a0662, meaning up to 26.9 million shares at nominal value of NOK 1.40/share. The shares acquired under the share buy-back program will be used to meet the Company\u2019s obligations towards employees who partici-pate in the Company\u2019s long-term incentive plan. As of December 31, 2024, the balance of treasury shares is 227\u00a0656. The treasury share capital is EUR 43 thousand and the treasury share premium is EUR 795 thousand.
Dividend
The Board approved a dividend of NOK 1.46 per share for the financial year 2023 on May 13, 2024. The dividend payment was EUR 34.4 million based on 269\u00a0219\u00a0014 outstanding shares, of which EUR 20.2 million was paid to Ferd AS. The Board of Directors will propose to the Annual General Meeting a dividend of EUR 0.13 per share for the financial year 2024.
Share capital
2024 | |||
Number of shares | Ordinaryshares issued | Treasuryshares | Ordinary shares outstanding |
Shares at 1.1 | 269\u00a0219\u00a0014 | (267\u00a0344) | 268\u00a0951\u00a0670 |
Treasury shares purchased | - | (500\u00a0000) | (500\u00a0000) |
Treasury shares re-issued | - | 539\u00a0688 | 539\u00a0688 |
Shares at 31.12 | 269\u00a0219\u00a0014 | (227\u00a0656) | 268\u00a0991\u00a0358 |
2023 | |||
Number of shares | Ordinaryshares issued | Treasuryshares | Ordinary shares outstanding |
Shares at 1.1 | 269\u00a0219\u00a0014 | (5\u00a0519) | 269\u00a0213\u00a0495 |
Treasury shares purchased | - | (410\u00a0540) | (410\u00a0540) |
Treasury shares re-issued | - | 148\u00a0715 | 148\u00a0715 |
Shares at 31.12 | 269\u00a0219\u00a0014 | (267\u00a0344) | 268\u00a0951\u00a0670 |
Basic and diluted earnings per share
(EUR 1\u00a0000, except number of shares) | 2024 | 2023 |
Profit attributable to Elopak shareholders | 60\u00a0912 | 67\u00a0061 |
Issued ordinary shares at beginning of period, adjusted for share split in the period | 268\u00a0951\u00a0670 | 269\u00a0213\u00a0495 |
Effect of shares issued | 36\u00a0548 | (62\u00a0416) |
Weighted-average number of ordinary shares in the period | 268\u00a0988\u00a0218 | 269\u00a0151\u00a0079 |
Basic and diluted earnings per share attributable to Elopak shareholders (in EUR) | 0.23 | 0.25 |
The Group\u2019s top 20 shareholders
The 20 largest shareholders from the shareholder register\u200c1
Shareholder\u2019s name | Total shareholding |
Ferd AS\u200c2 | 44.37% |
Mizuho Trust & Banking (Lux.) S.A. | 5.05% |
Folketrygdfondet | 4.37% |
Pareto Asset Management AS | 2.32% |
Verdipapirfondet Alfred Berg Gamba | 1.95% |
The Northern Trust Comp, London Br | 1.81% |
DNB Asset Management AS | 1.75% |
The Bank of New York Mellon SA/NV | 1.65% |
Morgan Stanley & Co. International | 1.51% |
Caceis Bank | 1.43% |
Fj\u00e4rde AP-fonden | 1.41% |
Brown Brothers Harriman (Lux.) SCA | 1.24% |
The Bank of New York Mellon SA/NV | 1.07% |
Verdipapirfondet Alfred Berg Norge | 0.89% |
BNP Paribas | 0.81% |
Skagen Vekst Verdipapirfond | 0.79% |
Verdipapirfondet KLP Aksjenorge | 0.77% |
Caceis Bank | 0.65% |
Bank Pictet & Cie (Europe) AG | 0.62% |
State Street Bank and Trust Comp | 0.61% |
1Source: VPS share register.
2Elopak ASA is a subsidiary of Ferd AS and is consolidated within their consolidated financial statements which can be found on their website.
The 20 largest shareholders beneficial ownership\u200c3
Shareholder\u2019s name | Total shareholding |
Ferd AS | 44.37% |
Nippon Paper Industries co | 5.05% |
Folketrygdfondet | 4.37% |
Alfred Berg Kapitalforvaltning | 4.11% |
DNB Asset Management AS | 2.84% |
Pareto Asset Management | 2.36% |
Artemis Investment Management | 2.04% |
Fidelity International (FIL) | 1.93% |
Fj\u00e4rde AP-fonden | 1.41% |
Ind\u00e9pendance et Expansion AM S.A. | 1.21% |
Arctic Fund Management | 1.07% |
ODDO BHF Asset Management | 0.88% |
Skagen Fonder | 0.79% |
KLP Kapitalforvaltning AS | 0.77% |
Pictet Asset Management | 0.57% |
Forsvarets Personellservice | 0.57% |
Storebrand Asset Management | 0.56% |
UBS Global Asset Management | 0.51% |
Ruth Asset Management | 0.50% |
SR-Forvaltning AS | 0.47% |
3The shareholder analysis is provided by Modular Finance. The data is compiled through multiple sources including VPS, Morningstar, reports, and press releases. Whilst every reasonable effort is made to verify all data, neither Modular Finance nor Elopak can guarantee that the analysis is complete.
The Executive team own directly, or indirectly the following number of shares in the Group
Executive team | Total number of shares |
Thomas K\u00f6rmendi, Chief Executive Officer | 502\u00a0175 |
Bent Kilsund Axelsen, Chief Financial Officer | 213\u00a0895 |
Ivar Jevne, EVP Packaging and Procurement\u200c1 | 358\u00a0535 |
Dag Gr\u00f6nevik, EVP Equipment and Service | 33\u00a0282 |
Nete Bechmann, Chief Human Resource Officer | 52\u00a0515 |
Stephen Naumann, Executive Vice President Region Europe North and CIS | 207\u00a0722 |
Lionel Ettedgui, Executive Vice President Region Americas | 149\u00a0755 |
Finn Morten T\u00f8rjesen, Executive Vice President Region Europe South and New Markets | 110\u00a0455 |
Thea Corwin Brist\u00f8l, Chief Marketing and Communication Officer | 1\u00a0565 |
Ivan Ferrini, EVP Packaging and Procurement | - |
Uwe Schulze, EVP Product and Development | - |
Total | 1\u00a0629\u00a0899 |
1Retired 31.12.2024
", "dimensions": { "concept": "ifrs-full:DisclosureOfShareCapitalReservesAndOtherEquityInterestExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__66": { "value": "Dividend
The Board approved a dividend of NOK 1.46 per share for the financial year 2023 on May 13, 2024. The dividend payment was EUR 34.4 million based on 269\u00a0219\u00a0014 outstanding shares, of which EUR 20.2 million was paid to Ferd AS. The Board of Directors will propose to the Annual General Meeting a dividend of EUR 0.13 per share for the financial year 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfDividendsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__67": { "value": "1.46", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsRecognisedAsDistributionsToOwnersPerShare", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f0__s6__12__68": { "value": "0.13", "decimals": 2, "dimensions": { "concept": "ifrs-full:DividendsProposedOrDeclaredBeforeFinancialStatementsAuthorisedForIssueButNotRecognisedAsDistributionToOwnersPerShare", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00", "unit": "iso4217:EUR/xbrli:shares" } }, "f0__s6__12__69": { "value": "Basic and diluted earnings per share
(EUR 1\u00a0000, except number of shares) | 2024 | 2023 |
Profit attributable to Elopak shareholders | 60\u00a0912 | 67\u00a0061 |
Issued ordinary shares at beginning of period, adjusted for share split in the period | 268\u00a0951\u00a0670 | 269\u00a0213\u00a0495 |
Effect of shares issued | 36\u00a0548 | (62\u00a0416) |
Weighted-average number of ordinary shares in the period | 268\u00a0988\u00a0218 | 269\u00a0151\u00a0079 |
Basic and diluted earnings per share attributable to Elopak shareholders (in EUR) | 0.23 | 0.25 |
Note 21 Interest-bearing loans and borrowings
Accounting policy
See Note 1for non-derivative financial instruments accounting policy.
Interest-bearing loans and borrowings
2024 | 2023 | |||
EUR 1\u00a0000 | Available | Utilised | Available | Utilised |
Current interest bearing liabilities | 57\u00a0117 | 30 383 | 56\u00a0857 | 19\u00a0333 |
Non-current interest bearing liabilities | 259\u00a0740 | 224\u00a0433 | ||
Bonds | 230 591 | |||
Long-term credit facilities from banks | 210 000 | 29 150 | 400 000 | 224 433 |
Total | 290 123 | 243\u00a0767 |
Repayment profile
EUR 1\u00a0000 | 2024 | 2023 |
2024 | - | 19\u00a0333 |
2025 | 30 383 | 225\u00a0000 |
2026 | - | - |
2027 | 63\u00a0791 | - |
2028 | - | - |
2029 | 153\u00a0175 | - |
2030 | - | - |
2031 | 43\u00a0625 | - |
Total | 290 974 | 244\u00a0333 |
Weighted average interest rates on long term loans
2024 | 2023 | ||||
EUR 1\u00a0000 | Rate | In Ccy | In EUR | In Ccy | In EUR |
EUR | 4.94% | 30\u00a0000 | 30\u00a0000 | 225\u00a0000 | 225\u00a0000 |
NOK | 5.87% | 2\u00a0719\u00a0816 | 230\u00a0591 | - | - |
Total | 260\u00a0591 | 225\u00a0000 |
The values above are gross amounts excluding amortised borrowing costs.
Elopak has issued senior unsecured green bonds with a total amount of NOK 2.7 billion. The issue is split into 3 tranches of 3, 5 and 7 year. The settlement date is May 28 of the maturity year. The bonds have been swapped to floating Euribor. The green bonds are initially recognized at cost, being the fair value of the consideration received net of incremental cost, and subsequently measured at amortized cost using the effective interest method. The cross-currency swaps are recognized as financial income or financial expense in profit or loss in line with accounting policy in Note24.
The long term loans are drawn under a EUR 210 million multi currency revolving credit facility. The facility is available until June 2029. Amounts are shown net of prepaid transaction costs. Changes to the Groups debt profile reflect changes in the functional currency of entities within the Group.
Elopak has one financial covenant related to the syndicate facility, Net Interest Bearing Debt divided by 12 month rolling EBITDA. Elopak is in compliance with the covenant as of 31 December 2024, and expects to be compliant with all bank covenants under the syndicate loan agreement for the foreseeable future.
Elopak has a Supply Chain Financing arrangement towards the largest suppliers to optimize working capital.
Accounts receivables factoring facilities
EUR 1\u00a0000 | Available | 2024 | Available | 2023 |
Non-recourse | 178\u00a0455 | 45\u00a0275 | 180\u00a0141 | 45\u00a0010 |
Total | 45\u00a0275 | 45\u00a0010 |
Elopak factors its receivables in the ordinary course of business.
Contractual maturities of financial liabilities, including estimated interest payments
Non-derivatives financial liabilities
EUR 1\u00a0000 | Note | Carrying value | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal |
Loans and borrowings | 290 123 | 30 383 | 63 791 | 153 175 | 43 625 | 290 974 | |
Accounts payable | 73 304 | 73 304 | - | - | - | 73 304 | |
Other liabilities | 196 726 | 126 160 | 25 456 | 19 665 | 25 444 | 196 726 | |
Total | 560 153 | 229 847 | 89 247 | 172 840 | 69 069 | 561 004 |
Derivatives financial instruments
EUR 1\u00a0000 | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal | |
FX | 4 421 | 404 | - | - | 4 825 | |
IRS | - | - | 1 995 | 1 013 | 3 007 | |
Commodities | 631 | - | - | - | 631 | |
CCS | - | 1 148 | 2 331 | 590 | 4 070 | |
Total | 5 051 | 1 552 | 4 326 | 1 603 | 12 533 |
3. Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Elopak has adopted a policy of only being exposed to credit-worthy counterparties, based upon independent credit analysis for all counterparties, where available. In the cases where this is not available, Elopak uses other publicly avail-able financial information and its own trading records to assess creditworthiness. Outstanding receivables are monitored regularly.
4. Hedge accounting
Cash flow hedge accounting is applied to hedges of foreign currency risk and commodity price risk. The economic relationship between the hedged item and the hedging instrument is determined through critical terms matching for the purpose of assessing hedge effectiveness. The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair values of cash flow hedging instruments related to hedged transactions that have not yet occurred. Movements in the cash flow hedge reserve are detailed in the table below:
Contracts
EUR 1\u00a0000 | Opening position | Movement | 2024 | Opening position | Movement | 2023 |
Commodity price hedges | (2\u00a0377) | 1\u00a0778 | (599) | (3\u00a0318) | 942 | (2\u00a0377) |
Currency hedges | (3\u00a0048) | (530) | (3\u00a0578) | (176) | (2\u00a0872) | (3\u00a0048) |
Currency translation | - | - | - | - | - | - |
Tax effect | 1\u00a0150 | (275) | 875 | 737 | 413 | 1\u00a0150 |
Total | (4\u00a0275) | 973 | (3\u00a0302) | (2\u00a0758) | (1\u00a0517) | (4\u00a0275) |
The movement in the hedge reserve includes gains/(losses) transferred from the cash flow hedge reserve into the income statement during the period. Foreign exchange forwards and commodities hedge maturities are disclosed in note 24.2Liquidity Risk, which is representative of when the hedge reserve in equity will be recycled to the statement of comprehensive income. These are included in the following line items in the income statement.
Movement in hedge reserve
EUR 1\u00a0000 | 2024 | 2023 |
Cost of goods sold | 1\u00a0834 | (1\u00a0673) |
Other operating expenses | 705 | (1\u00a0829) |
Net financial items | (6\u00a0918) | (5\u00a0518) |
Total | (4\u00a0380) | (9\u00a0020) |
Movement in hedge reserve due to changes in fair values | (3\u00a0407) | (10\u00a0537) |
Total movement in hedge reserve | 973 | (1\u00a0517) |
Due to Elopak hedging policy, hedges are entered into based on highly probable future transactions, either per trans-action or by applying base layers. All hedges have a hedge ratio 1:1 and hedge in-effectiveness related to differences in timing of settlement in 2024 and 2023 was insignificant and is not recognised directly to profit and loss.
Carrying amount of financial asset and liabilities
The fair value of all financial assets and liabilities approximates their carrying value. The fair value estimation of derivative financial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than unadjusted quoted prices for identical assets and liabilities.
December 31, 2024 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 1 751 | 49 | - | 1 799 | - | 1 799 | - | 1 799 | |
Finance lease receivable\u200c1\u200c | - | - | 9 017 | 9 017 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 122 259 | 122 259 | - | - | - | - | |
Cash and cash equivalents | - | - | 28 052 | 28 052 | - | - | - | - | |
Total | 1 751 | 49 | 159 328 | 161 128 | - | 1 799 | - | 1 799 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 290 974 | 290 974 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 106 531 | 106 531 | - | - | - | - | |
Derivatives | 8 265 | 4 268 | - | 12 533 | - | 12 533 | - | 12 533 | |
Trade payables and Other payables | - | - | 113 786 | 113 786 | - | - | - | - | |
Total | 8 265 | 4 268 | 511 292 | 523 825 | - | 12 533 | - | 12 533 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Carrying amount of financial asset and liabilities
December 31, 2023 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 3 660 | 925 | - | 4 585 | - | 4 585 | - | 4 585 | |
Finance lease receivable\u200c1\u200c | - | - | 7 084 | 7 084 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 112 639 | 112 639 | - | - | - | - | |
Cash and cash equivalents | - | - | 13 308 | 13 308 | - | - | - | - | |
Total | 3 660 | 925 | 133 032 | 137 617 | - | 4 585 | - | 4 585 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 243 767 | 243 767 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 101 520 | 101 520 | - | - | - | - | |
Derivatives | 5 451 | 6 460 | - | 11 910 | - | 11 910 | - | 11 910 | |
Trade payables and Other payables | - | - | 168 864 | 168 864 | - | - | - | - | |
Total | 5 451 | 6 460 | 514 151 | 526 062 | - | 11 910 | - | 11 910 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Fair value of financial assets and financial liabilities are measured using different levels of input.
\u2022Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
\u2022Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
\u2022Level 3 inputs are unobservable inputs for the asset or liability.
Accounting policy
See Note 1for non-derivative financial instruments accounting policy.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForBorrowingsExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__73": { "value": "Note 22 Other current liabilities
EUR 1\u00a0000 | 2024 | 2023 |
Provisions | 2\u00a0916 | 3\u00a0343 |
Accrued expenses | 85\u00a0942 | 70\u00a0330 |
Derivatives (Note24) | 4\u00a0866 | 8\u00a0231 |
Prepaid from customers | 42\u00a0032 | 38\u00a0636 |
Total | 135\u00a0756 | 120\u00a0540 |
Note 23 Capital management
Elopak\u2019s level of capital and how this is managed relate closely to the company\u2019s risk profile and the company\u2019s ability to withstand turbulent times. The main objectives when Elopak assesses its capital management is to mini-mize financing costs, while maintaining adequate liquidity and flexibility for short-term liquidity needs and M&A activities. Elopak\u2019s financial guiding is to pay out dividends equal to 50% - 60% of normalised net profits.
All financing activities are managed by the central Treasury at the parent company level. The capital needs of Elopak subsidiaries are mainly covered by granting internal loans or by equity injection where applicable. The short-term liquidity needs of Elopak group companies are managed at group level through the Elopak internal bank and cash-pooling. The financial guiding also targets constantly that the company reduces its gearing ratio and to be ~2.0x EBITDA on a mid-term basis.
The financial covenants under Elopak\u2019s Revolving Credit Facility are limited to a maximum gearing ratio (Net Interest Bearing Debt/EBITDA) of 4.15x. There are no financial covenants applicable to the NOK bonds issued in 2024.
", "dimensions": { "concept": "ifrs-full:DisclosureOfObjectivesPoliciesAndProcessesForManagingCapitalExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__75": { "value": "Note 24 Financial risk management
Accounting policy
The Group uses derivative financial instruments to hedge its risks to interest rate, foreign exchange rate and raw material fluctuations arising from operational, financing and investment activities. In accordance with its Treasury policy, the Group does use derivative financial instruments for trading purposes. The derivative financial instruments are measured at fair value.
Hedge accounting is applied for cash flow hedges and fair value hedges when hedging criteria are met. Recognition of any resultant gain or loss depends on the nature of the hedging relationship. The Group designates certain derivatives as either hedge of highly probable forecast transactions or hedge of foreign currency risk of firm commitments (cash flow hedges) or hedge of the fair value of recognised assets or liabilities or firm commitments (fair value hedges).
For cash flow hedges foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised directly in other comprehensive income, while any foreign exchange gains or losses relating to the ineffective portion are recognised in the income statement. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged. The derivative is also measured at fair value, and gains and losses from both the hedging instrument and the hedged item are recognised in the income statement.
Hedge effectiveness is assessed at inception and verified on a regular basis, and hedge accounting is discon-tinued if the hedge no longer meets the hedge accounting.
Any gains or losses arising from changes in fair value on derivative financial instruments that are not cash flow hedges or fair value hedges are recognized in the income statement as financial income or expense.
Balance sheet management
Elopak aims to maintain a solid balance sheet with a mid-term leverage target of ~2.0x to ensure financial flexibility and cost-efficient funding. The Group manages the balance sheet through an annual budgeting process followed by performance management and rolling forecasting updates to ensure financial flexibility and liquidity for the Group. The capital structure provides a good balance between shareholder return and a solid balance sheet. The Group\u2019s
main financial covenant under its syndicated revolving credit facility, Net Interest Bearing Debt divided by 12 month rolling EBITDA, is monitored to ensure compliance at all times.
Financial risk policy
Elopak Treasury is responsible for financial risk management for the Group, including liquidity management, interest rate risk, managing foreign exchange risk, credit risk and capital management. Risk management activities are governed by appropriate policies and procedures approved by the Board of Directors. Risks are identified, measured and managed in accordance with the Group\u2019s policies and risk objectives. It is the Group\u2019s policy that no trading in derivatives for speculative purposes shall be undertaken. There were no principal changes in the Group\u2019s approach to capital management during the years ending 31 December 2024 and 31 December 2023.
Categories of financial risk to operational business
1. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency risk, commodity price risk and interest rate risk. Elopak buys derivatives to manage market risks and seeks to apply hedge accounting to manage volatility in profit or loss. Hedge accounting is applied to all currency and commodity derivatives, while interest rate and cross-currency derivatives are not subject to hedge accounting.
Derivatives
December 31, 2024 | December 31, 2023 | |||||
EUR 1\u00a0000 | Assets | Liabilities | Total | Assets | Liabilities | Total |
Currency derivatives | 75 | 8\u00a0895 | (8\u00a0819) | 904 | 7\u00a0398 | (6\u00a0494) |
Commodity derivatives | 32 | 631 | (599) | 31 | 2\u00a0408 | (2\u00a0377) |
Interest derivatives | 1\u00a0693 | 3\u00a0007 | (1\u00a0315) | 3\u00a0650 | 2\u00a0105 | 1\u00a0545 |
Total | 1\u00a0800 | 12\u00a0533 | (10\u00a0733) | 4\u00a0585 | 11\u00a0911 | (7\u00a0326) |
The full fair value of a derivative is classified as \u201cOther non-current assets\u201d or \u201cOther non-current liabilities\u201d if the remaining maturity of the derivative is more than 12 months and as \u201cOther current assets\u201d or \u201cOther current liabilities\u201d, if the maturity of the derivative is less than 12 months. The fair value estimation of derivative finan-cial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than
unadjusted quoted prices for identical assets and liabilities, with changes in fair value are therefore recognized in the income statement.
Where eligible, derivatives used for hedging are designated in cash flow hedge accounting relationships.
Exchange rate risk
The Group is exposed to changes in the value of EUR relative to other currencies. Elopak\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign operations and net investments in foreign subsid-iaries. The carrying amount of the Group\u2019s net investments in foreign entities and proceeds from these investments varies with changes in the foreign exchange rate. The Group\u2019s net income is affected by currency fluctuations, as the profit and losses from foreign operations are translated into EUR using average exchange rates for the period.
The carrying amounts of Elopak ASA\u2019s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
Assets | Liabilities | |||
Currency | 2024 | 2023 | 2024 | 2023 |
BGN | 438 | 241 | 265 | 246 |
CAD | 134\u00a0930 | 96\u00a0376 | 164\u00a0864 | 64\u00a0044 |
CHF | 3\u00a0451 | 4\u00a0800 | 3\u00a0418 | 4\u00a0771 |
CZK | 63\u00a0326 | 62\u00a0929 | 63\u00a0178 | 62\u00a0821 |
DKK | 3 263 500 | 2\u00a0809\u00a0965 | 3\u00a0337\u00a0774 | 2\u00a0889\u00a0442 |
EUR | 840\u00a0974 | 86\u00a0393 | 901 160 | 750\u00a0783 |
GBP | 39 729 | 32\u00a0760 | 40\u00a0111 | 32\u00a0821 |
HUF | 940\u00a0869 | 863\u00a0797 | 454\u00a0357 | 449\u00a0243 |
NIS | - | - | 9 | 9 |
JPY | 4\u00a0158\u00a0712 | 2\u00a0814\u00a0818 | 6\u00a0284\u00a0200 | 6\u00a0493\u00a0463 |
MXN | 66\u00a0571 | 66\u00a0521 | 62\u00a0313 | 62\u00a0304 |
NOK | 2 902 889 | 2\u00a0537\u00a0714 | 5\u00a0723\u00a0572 | 2\u00a0548\u00a0400 |
PLN | 101 059 | 79 545 | 99 165 | 78 552 |
RUR | 1 889 318 | 1 889 323 | 1 888 920 | 1 888 924 |
SEK | 361 121 | 260 590 | 369 341 | 274 466 |
USD | 269 853 | 63 043 | 209 431 | 83 515 |
Foreign exchange risk related to foreign operating activities, such as payments of salaries and personnel and corporate tax in foreign currencies, managed by hedging cash flows that are considered highly probable over the next 18 months, using a layered hedging strategy.
Foreign exchange risk related to procurement of filling machines are hedged at a one-to-one basis (100% coverage at the specified date of payment). The entire green bonds in NOK have been economically hedged through cross-currency swaps converting the liabilities to EUR. The residual translation risk relates to inconsistencies in the accounting measurement between the NOK bonds, measured at amortized cost using the effective interest method, and the cross-currency swaps, measured at fair value through profit and loss.
Hedge accounting is applied to all foreign exchange derivatives, provided all hedging criteria are met. Hedge accounting is designated at the date of recognition of the hedged item, however the derivatives are due at the date of expected payment. At designation, the fair value of the hedging derivatives is recycled from Hedge reserve to the hedged item (i.e. filling machine recognised in inventory), and to profit or loss to the same accounting line and at the same time as the hedged item is recognised to profit or loss.
Outstanding derivatives
Outstanding FX derivatives
Nominal amount | December 31, 2024 | December 31, 2023 | ||
Currency | Ccy | EUR | Ccy | EUR |
CAD | - | - | 7\u00a0749 | 5\u00a0292 |
EUR | (62\u00a0694) | (62\u00a0694) | (89\u00a0952) | (89\u00a0952) |
JPY | 6\u00a0410\u00a0567 | 39 314 | 10\u00a0358\u00a0989 | 66\u00a0264 |
NOK | 290\u00a0700 | 24 646 | 388\u00a0197 | 34\u00a0536 |
USD | (6\u00a0749) | (6 496) | (27\u00a0740) | (25\u00a0104) |
Total nominal value | (5 230) | (8\u00a0965) | ||
Total fair value | (4\u00a0761) | (6\u00a0494) |
Positive numbers represent purchases
Outstanding CCS derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
Currency | Notional EUR | Fair value | Notional EUR | Fair value |
EURNOK | 232\u00a0233 | (4\u00a0058) | ||
Total | (4\u00a0058) |
Positive numbers represent derivative assets
Exchange rate risk sensitivity
The Group calculates the sensitivity on the change in fair value on foreign exchange and cross currency derivatives of a defined change in the foreign exchange rates relative to EUR, with all other variables being held constant. This is shown in the table below:
Foreign exchange contracts and cross currency swaps
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
+5% | (16\u00a0074) | (5\u00a0932) | (5\u00a0022) | (10\u00a0872) | |
(5%) | 8\u00a0240 | (234) | (2\u00a0597) | (427) |
The impact on the Group\u2019s equity is due to changes in the fair value of foreign exchange derivatives designated as cash flow hedges. The cross-currency derivatives are not subject to hedge accounting, however economically fully hedge the NOK bond foreign exchange exposure through converting the liabilities to floating Euribor.
Financial instruments designated as cash flow hedges
As of 31 December 2024 and 2023, all material foreign exchange derivatives positions are designated cash flow hedges.
Interest risk
Elopak is exposed to fluctuations in interest rates through funding and cash management activities. Changes in interest rates affect the fair value of assets and liabilities. Interest income and interest expense in the income
statement are influenced by changes in interest rates in the market. To manage this risk, the Group maintains a portion of its borrowings at fixed rates of interest by entering interest rate swaps. The fixed rate green bond has been converted to floating Euribor through cross-currency swap. These interest rate and cross currency swaps are designated to hedge underlying debt obligations; however, they are not subject to hedge accounting.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Currency | Notional EUR | Fair value | Notional EUR | Fair value |
Interest | EUR | 180\u00a0000 | (1\u00a0315) | 150\u00a0000 | 1\u00a0545 |
Total | (1\u00a0315) | 1\u00a0545 |
Positive numbers represent derivative assets
Interest rate risk sensitivity
Elopak calculates the sensitivity on the change in fair value on interest rate swaps of a defined parallel shift in the interest rate curve of the relevant currencies, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Interest rate swaps | +1% | 6\u00a0102 | 4\u00a0417 | ||
(1%) | (6\u00a0437) | (4\u00a0642) |
The interest rate derivatives are not subject to hedge accounting.
Commodity price risk
Elopak\u2019s operating activities require a continuous supply of aluminium and polyethylene. Based on a 12-month forecast of requirements the Group manages the commodity price risk by hedging the purchase price of the commodity with the use of commodity price swaps. Hedge accounting is applied for all commodity derivatives. The Group policy states that minimum 60% of our closed commodity position in the current customer price validity period should be hedged, financially or commercially.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
EUR 1\u00a0000 | Metric Tonnes | Fair value | Metric Tonnes | Fair value |
Polyethylene | 15\u00a0000 | (631) | 15\u00a0000 | (2\u00a0408) |
Aluminium | 2 400 | 32 | 3\u00a0960 | 31 |
Total | (599) | (2\u00a0377) |
Positive numbers represent derivative assets
Commodity risk sensitivity
The Group calculates the sensitivity on the change in fair value on commodity derivatives of a defined change in the commodity price, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Commodity swaps | +5% | 1\u00a0659 | 1\u00a0604 | ||
(5%) | (1\u00a0659) | (1\u00a0604) |
2. Liquidity risk
Elopak\u2019s objective is to maintain a balance between continuity of funding, and flexibility through the use of a long-term syndicated revolving credit facility and overdraft facilities connected to Elopak ASA\u2019s cash pools. To the extent permissible by local rules and regulations, subsidiaries owned 90% or more, participate in Elopak ASA\u2019s cash pool. Elopak ASA shall have sufficient sources of liquidity to cover expected operational liquidity needs for the next 12 months. Liquidity requirements to fund acquisitions is considered separately.
The maturity profile of the Group\u2019s financial assets and liabilities based on contractual undiscounted payments is summarised below. The tables only show balance sheet items classified as financial instruments and do not include other balance sheet items affecting liquidity, such as inventories. Also, off-balance sheet items such as unused credit facilities are not included. The derivative instruments may be settled gross or net with the relevant protocol being reflected in the tables.
Contractual maturities of financial liabilities, including estimated interest payments
Non-derivatives financial liabilities
EUR 1\u00a0000 | Note | Carrying value | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal |
Loans and borrowings | 290 123 | 30 383 | 63 791 | 153 175 | 43 625 | 290 974 | |
Accounts payable | 73 304 | 73 304 | - | - | - | 73 304 | |
Other liabilities | 196 726 | 126 160 | 25 456 | 19 665 | 25 444 | 196 726 | |
Total | 560 153 | 229 847 | 89 247 | 172 840 | 69 069 | 561 004 |
Derivatives financial instruments
EUR 1\u00a0000 | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal | |
FX | 4 421 | 404 | - | - | 4 825 | |
IRS | - | - | 1 995 | 1 013 | 3 007 | |
Commodities | 631 | - | - | - | 631 | |
CCS | - | 1 148 | 2 331 | 590 | 4 070 | |
Total | 5 051 | 1 552 | 4 326 | 1 603 | 12 533 |
3. Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Elopak has adopted a policy of only being exposed to credit-worthy counterparties, based upon independent credit analysis for all counterparties, where available. In the cases where this is not available, Elopak uses other publicly avail-able financial information and its own trading records to assess creditworthiness. Outstanding receivables are monitored regularly.
4. Hedge accounting
Cash flow hedge accounting is applied to hedges of foreign currency risk and commodity price risk. The economic relationship between the hedged item and the hedging instrument is determined through critical terms matching for the purpose of assessing hedge effectiveness. The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair values of cash flow hedging instruments related to hedged transactions that have not yet occurred. Movements in the cash flow hedge reserve are detailed in the table below:
Contracts
EUR 1\u00a0000 | Opening position | Movement | 2024 | Opening position | Movement | 2023 |
Commodity price hedges | (2\u00a0377) | 1\u00a0778 | (599) | (3\u00a0318) | 942 | (2\u00a0377) |
Currency hedges | (3\u00a0048) | (530) | (3\u00a0578) | (176) | (2\u00a0872) | (3\u00a0048) |
Currency translation | - | - | - | - | - | - |
Tax effect | 1\u00a0150 | (275) | 875 | 737 | 413 | 1\u00a0150 |
Total | (4\u00a0275) | 973 | (3\u00a0302) | (2\u00a0758) | (1\u00a0517) | (4\u00a0275) |
The movement in the hedge reserve includes gains/(losses) transferred from the cash flow hedge reserve into the income statement during the period. Foreign exchange forwards and commodities hedge maturities are disclosed in note 24.2Liquidity Risk, which is representative of when the hedge reserve in equity will be recycled to the statement of comprehensive income. These are included in the following line items in the income statement.
Movement in hedge reserve
EUR 1\u00a0000 | 2024 | 2023 |
Cost of goods sold | 1\u00a0834 | (1\u00a0673) |
Other operating expenses | 705 | (1\u00a0829) |
Net financial items | (6\u00a0918) | (5\u00a0518) |
Total | (4\u00a0380) | (9\u00a0020) |
Movement in hedge reserve due to changes in fair values | (3\u00a0407) | (10\u00a0537) |
Total movement in hedge reserve | 973 | (1\u00a0517) |
Due to Elopak hedging policy, hedges are entered into based on highly probable future transactions, either per trans-action or by applying base layers. All hedges have a hedge ratio 1:1 and hedge in-effectiveness related to differences in timing of settlement in 2024 and 2023 was insignificant and is not recognised directly to profit and loss.
Carrying amount of financial asset and liabilities
The fair value of all financial assets and liabilities approximates their carrying value. The fair value estimation of derivative financial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than unadjusted quoted prices for identical assets and liabilities.
December 31, 2024 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 1 751 | 49 | - | 1 799 | - | 1 799 | - | 1 799 | |
Finance lease receivable\u200c1\u200c | - | - | 9 017 | 9 017 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 122 259 | 122 259 | - | - | - | - | |
Cash and cash equivalents | - | - | 28 052 | 28 052 | - | - | - | - | |
Total | 1 751 | 49 | 159 328 | 161 128 | - | 1 799 | - | 1 799 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 290 974 | 290 974 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 106 531 | 106 531 | - | - | - | - | |
Derivatives | 8 265 | 4 268 | - | 12 533 | - | 12 533 | - | 12 533 | |
Trade payables and Other payables | - | - | 113 786 | 113 786 | - | - | - | - | |
Total | 8 265 | 4 268 | 511 292 | 523 825 | - | 12 533 | - | 12 533 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Carrying amount of financial asset and liabilities
December 31, 2023 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 3 660 | 925 | - | 4 585 | - | 4 585 | - | 4 585 | |
Finance lease receivable\u200c1\u200c | - | - | 7 084 | 7 084 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 112 639 | 112 639 | - | - | - | - | |
Cash and cash equivalents | - | - | 13 308 | 13 308 | - | - | - | - | |
Total | 3 660 | 925 | 133 032 | 137 617 | - | 4 585 | - | 4 585 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 243 767 | 243 767 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 101 520 | 101 520 | - | - | - | - | |
Derivatives | 5 451 | 6 460 | - | 11 910 | - | 11 910 | - | 11 910 | |
Trade payables and Other payables | - | - | 168 864 | 168 864 | - | - | - | - | |
Total | 5 451 | 6 460 | 514 151 | 526 062 | - | 11 910 | - | 11 910 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Fair value of financial assets and financial liabilities are measured using different levels of input.
\u2022Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
\u2022Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
\u2022Level 3 inputs are unobservable inputs for the asset or liability.
Note 24 Financial risk management
Accounting policy
The Group uses derivative financial instruments to hedge its risks to interest rate, foreign exchange rate and raw material fluctuations arising from operational, financing and investment activities. In accordance with its Treasury policy, the Group does use derivative financial instruments for trading purposes. The derivative financial instruments are measured at fair value.
Hedge accounting is applied for cash flow hedges and fair value hedges when hedging criteria are met. Recognition of any resultant gain or loss depends on the nature of the hedging relationship. The Group designates certain derivatives as either hedge of highly probable forecast transactions or hedge of foreign currency risk of firm commitments (cash flow hedges) or hedge of the fair value of recognised assets or liabilities or firm commitments (fair value hedges).
For cash flow hedges foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised directly in other comprehensive income, while any foreign exchange gains or losses relating to the ineffective portion are recognised in the income statement. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged. The derivative is also measured at fair value, and gains and losses from both the hedging instrument and the hedged item are recognised in the income statement.
Hedge effectiveness is assessed at inception and verified on a regular basis, and hedge accounting is discon-tinued if the hedge no longer meets the hedge accounting.
Any gains or losses arising from changes in fair value on derivative financial instruments that are not cash flow hedges or fair value hedges are recognized in the income statement as financial income or expense.
Balance sheet management
Elopak aims to maintain a solid balance sheet with a mid-term leverage target of ~2.0x to ensure financial flexibility and cost-efficient funding. The Group manages the balance sheet through an annual budgeting process followed by performance management and rolling forecasting updates to ensure financial flexibility and liquidity for the Group. The capital structure provides a good balance between shareholder return and a solid balance sheet. The Group\u2019s
main financial covenant under its syndicated revolving credit facility, Net Interest Bearing Debt divided by 12 month rolling EBITDA, is monitored to ensure compliance at all times.
Financial risk policy
Elopak Treasury is responsible for financial risk management for the Group, including liquidity management, interest rate risk, managing foreign exchange risk, credit risk and capital management. Risk management activities are governed by appropriate policies and procedures approved by the Board of Directors. Risks are identified, measured and managed in accordance with the Group\u2019s policies and risk objectives. It is the Group\u2019s policy that no trading in derivatives for speculative purposes shall be undertaken. There were no principal changes in the Group\u2019s approach to capital management during the years ending 31 December 2024 and 31 December 2023.
Categories of financial risk to operational business
1. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency risk, commodity price risk and interest rate risk. Elopak buys derivatives to manage market risks and seeks to apply hedge accounting to manage volatility in profit or loss. Hedge accounting is applied to all currency and commodity derivatives, while interest rate and cross-currency derivatives are not subject to hedge accounting.
Derivatives
December 31, 2024 | December 31, 2023 | |||||
EUR 1\u00a0000 | Assets | Liabilities | Total | Assets | Liabilities | Total |
Currency derivatives | 75 | 8\u00a0895 | (8\u00a0819) | 904 | 7\u00a0398 | (6\u00a0494) |
Commodity derivatives | 32 | 631 | (599) | 31 | 2\u00a0408 | (2\u00a0377) |
Interest derivatives | 1\u00a0693 | 3\u00a0007 | (1\u00a0315) | 3\u00a0650 | 2\u00a0105 | 1\u00a0545 |
Total | 1\u00a0800 | 12\u00a0533 | (10\u00a0733) | 4\u00a0585 | 11\u00a0911 | (7\u00a0326) |
The full fair value of a derivative is classified as \u201cOther non-current assets\u201d or \u201cOther non-current liabilities\u201d if the remaining maturity of the derivative is more than 12 months and as \u201cOther current assets\u201d or \u201cOther current liabilities\u201d, if the maturity of the derivative is less than 12 months. The fair value estimation of derivative finan-cial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than
unadjusted quoted prices for identical assets and liabilities, with changes in fair value are therefore recognized in the income statement.
Where eligible, derivatives used for hedging are designated in cash flow hedge accounting relationships.
Exchange rate risk
The Group is exposed to changes in the value of EUR relative to other currencies. Elopak\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign operations and net investments in foreign subsid-iaries. The carrying amount of the Group\u2019s net investments in foreign entities and proceeds from these investments varies with changes in the foreign exchange rate. The Group\u2019s net income is affected by currency fluctuations, as the profit and losses from foreign operations are translated into EUR using average exchange rates for the period.
The carrying amounts of Elopak ASA\u2019s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
Assets | Liabilities | |||
Currency | 2024 | 2023 | 2024 | 2023 |
BGN | 438 | 241 | 265 | 246 |
CAD | 134\u00a0930 | 96\u00a0376 | 164\u00a0864 | 64\u00a0044 |
CHF | 3\u00a0451 | 4\u00a0800 | 3\u00a0418 | 4\u00a0771 |
CZK | 63\u00a0326 | 62\u00a0929 | 63\u00a0178 | 62\u00a0821 |
DKK | 3 263 500 | 2\u00a0809\u00a0965 | 3\u00a0337\u00a0774 | 2\u00a0889\u00a0442 |
EUR | 840\u00a0974 | 86\u00a0393 | 901 160 | 750\u00a0783 |
GBP | 39 729 | 32\u00a0760 | 40\u00a0111 | 32\u00a0821 |
HUF | 940\u00a0869 | 863\u00a0797 | 454\u00a0357 | 449\u00a0243 |
NIS | - | - | 9 | 9 |
JPY | 4\u00a0158\u00a0712 | 2\u00a0814\u00a0818 | 6\u00a0284\u00a0200 | 6\u00a0493\u00a0463 |
MXN | 66\u00a0571 | 66\u00a0521 | 62\u00a0313 | 62\u00a0304 |
NOK | 2 902 889 | 2\u00a0537\u00a0714 | 5\u00a0723\u00a0572 | 2\u00a0548\u00a0400 |
PLN | 101 059 | 79 545 | 99 165 | 78 552 |
RUR | 1 889 318 | 1 889 323 | 1 888 920 | 1 888 924 |
SEK | 361 121 | 260 590 | 369 341 | 274 466 |
USD | 269 853 | 63 043 | 209 431 | 83 515 |
Foreign exchange risk related to foreign operating activities, such as payments of salaries and personnel and corporate tax in foreign currencies, managed by hedging cash flows that are considered highly probable over the next 18 months, using a layered hedging strategy.
Foreign exchange risk related to procurement of filling machines are hedged at a one-to-one basis (100% coverage at the specified date of payment). The entire green bonds in NOK have been economically hedged through cross-currency swaps converting the liabilities to EUR. The residual translation risk relates to inconsistencies in the accounting measurement between the NOK bonds, measured at amortized cost using the effective interest method, and the cross-currency swaps, measured at fair value through profit and loss.
Hedge accounting is applied to all foreign exchange derivatives, provided all hedging criteria are met. Hedge accounting is designated at the date of recognition of the hedged item, however the derivatives are due at the date of expected payment. At designation, the fair value of the hedging derivatives is recycled from Hedge reserve to the hedged item (i.e. filling machine recognised in inventory), and to profit or loss to the same accounting line and at the same time as the hedged item is recognised to profit or loss.
Outstanding derivatives
Outstanding FX derivatives
Nominal amount | December 31, 2024 | December 31, 2023 | ||
Currency | Ccy | EUR | Ccy | EUR |
CAD | - | - | 7\u00a0749 | 5\u00a0292 |
EUR | (62\u00a0694) | (62\u00a0694) | (89\u00a0952) | (89\u00a0952) |
JPY | 6\u00a0410\u00a0567 | 39 314 | 10\u00a0358\u00a0989 | 66\u00a0264 |
NOK | 290\u00a0700 | 24 646 | 388\u00a0197 | 34\u00a0536 |
USD | (6\u00a0749) | (6 496) | (27\u00a0740) | (25\u00a0104) |
Total nominal value | (5 230) | (8\u00a0965) | ||
Total fair value | (4\u00a0761) | (6\u00a0494) |
Positive numbers represent purchases
Outstanding CCS derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
Currency | Notional EUR | Fair value | Notional EUR | Fair value |
EURNOK | 232\u00a0233 | (4\u00a0058) | ||
Total | (4\u00a0058) |
Positive numbers represent derivative assets
Exchange rate risk sensitivity
The Group calculates the sensitivity on the change in fair value on foreign exchange and cross currency derivatives of a defined change in the foreign exchange rates relative to EUR, with all other variables being held constant. This is shown in the table below:
Foreign exchange contracts and cross currency swaps
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
+5% | (16\u00a0074) | (5\u00a0932) | (5\u00a0022) | (10\u00a0872) | |
(5%) | 8\u00a0240 | (234) | (2\u00a0597) | (427) |
The impact on the Group\u2019s equity is due to changes in the fair value of foreign exchange derivatives designated as cash flow hedges. The cross-currency derivatives are not subject to hedge accounting, however economically fully hedge the NOK bond foreign exchange exposure through converting the liabilities to floating Euribor.
Financial instruments designated as cash flow hedges
As of 31 December 2024 and 2023, all material foreign exchange derivatives positions are designated cash flow hedges.
Interest risk
Elopak is exposed to fluctuations in interest rates through funding and cash management activities. Changes in interest rates affect the fair value of assets and liabilities. Interest income and interest expense in the income
statement are influenced by changes in interest rates in the market. To manage this risk, the Group maintains a portion of its borrowings at fixed rates of interest by entering interest rate swaps. The fixed rate green bond has been converted to floating Euribor through cross-currency swap. These interest rate and cross currency swaps are designated to hedge underlying debt obligations; however, they are not subject to hedge accounting.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Currency | Notional EUR | Fair value | Notional EUR | Fair value |
Interest | EUR | 180\u00a0000 | (1\u00a0315) | 150\u00a0000 | 1\u00a0545 |
Total | (1\u00a0315) | 1\u00a0545 |
Positive numbers represent derivative assets
Interest rate risk sensitivity
Elopak calculates the sensitivity on the change in fair value on interest rate swaps of a defined parallel shift in the interest rate curve of the relevant currencies, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Interest rate swaps | +1% | 6\u00a0102 | 4\u00a0417 | ||
(1%) | (6\u00a0437) | (4\u00a0642) |
The interest rate derivatives are not subject to hedge accounting.
Commodity price risk
Elopak\u2019s operating activities require a continuous supply of aluminium and polyethylene. Based on a 12-month forecast of requirements the Group manages the commodity price risk by hedging the purchase price of the commodity with the use of commodity price swaps. Hedge accounting is applied for all commodity derivatives. The Group policy states that minimum 60% of our closed commodity position in the current customer price validity period should be hedged, financially or commercially.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
EUR 1\u00a0000 | Metric Tonnes | Fair value | Metric Tonnes | Fair value |
Polyethylene | 15\u00a0000 | (631) | 15\u00a0000 | (2\u00a0408) |
Aluminium | 2 400 | 32 | 3\u00a0960 | 31 |
Total | (599) | (2\u00a0377) |
Positive numbers represent derivative assets
Commodity risk sensitivity
The Group calculates the sensitivity on the change in fair value on commodity derivatives of a defined change in the commodity price, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Commodity swaps | +5% | 1\u00a0659 | 1\u00a0604 | ||
(5%) | (1\u00a0659) | (1\u00a0604) |
2. Liquidity risk
Elopak\u2019s objective is to maintain a balance between continuity of funding, and flexibility through the use of a long-term syndicated revolving credit facility and overdraft facilities connected to Elopak ASA\u2019s cash pools. To the extent permissible by local rules and regulations, subsidiaries owned 90% or more, participate in Elopak ASA\u2019s cash pool. Elopak ASA shall have sufficient sources of liquidity to cover expected operational liquidity needs for the next 12 months. Liquidity requirements to fund acquisitions is considered separately.
The maturity profile of the Group\u2019s financial assets and liabilities based on contractual undiscounted payments is summarised below. The tables only show balance sheet items classified as financial instruments and do not include other balance sheet items affecting liquidity, such as inventories. Also, off-balance sheet items such as unused credit facilities are not included. The derivative instruments may be settled gross or net with the relevant protocol being reflected in the tables.
Contractual maturities of financial liabilities, including estimated interest payments
Non-derivatives financial liabilities
EUR 1\u00a0000 | Note | Carrying value | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal |
Loans and borrowings | 290 123 | 30 383 | 63 791 | 153 175 | 43 625 | 290 974 | |
Accounts payable | 73 304 | 73 304 | - | - | - | 73 304 | |
Other liabilities | 196 726 | 126 160 | 25 456 | 19 665 | 25 444 | 196 726 | |
Total | 560 153 | 229 847 | 89 247 | 172 840 | 69 069 | 561 004 |
Derivatives financial instruments
EUR 1\u00a0000 | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal | |
FX | 4 421 | 404 | - | - | 4 825 | |
IRS | - | - | 1 995 | 1 013 | 3 007 | |
Commodities | 631 | - | - | - | 631 | |
CCS | - | 1 148 | 2 331 | 590 | 4 070 | |
Total | 5 051 | 1 552 | 4 326 | 1 603 | 12 533 |
3. Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Elopak has adopted a policy of only being exposed to credit-worthy counterparties, based upon independent credit analysis for all counterparties, where available. In the cases where this is not available, Elopak uses other publicly avail-able financial information and its own trading records to assess creditworthiness. Outstanding receivables are monitored regularly.
4. Hedge accounting
Cash flow hedge accounting is applied to hedges of foreign currency risk and commodity price risk. The economic relationship between the hedged item and the hedging instrument is determined through critical terms matching for the purpose of assessing hedge effectiveness. The cash flow hedge reserve comprises the effective portion of the cumulative net change in the fair values of cash flow hedging instruments related to hedged transactions that have not yet occurred. Movements in the cash flow hedge reserve are detailed in the table below:
Contracts
EUR 1\u00a0000 | Opening position | Movement | 2024 | Opening position | Movement | 2023 |
Commodity price hedges | (2\u00a0377) | 1\u00a0778 | (599) | (3\u00a0318) | 942 | (2\u00a0377) |
Currency hedges | (3\u00a0048) | (530) | (3\u00a0578) | (176) | (2\u00a0872) | (3\u00a0048) |
Currency translation | - | - | - | - | - | - |
Tax effect | 1\u00a0150 | (275) | 875 | 737 | 413 | 1\u00a0150 |
Total | (4\u00a0275) | 973 | (3\u00a0302) | (2\u00a0758) | (1\u00a0517) | (4\u00a0275) |
The movement in the hedge reserve includes gains/(losses) transferred from the cash flow hedge reserve into the income statement during the period. Foreign exchange forwards and commodities hedge maturities are disclosed in note 24.2Liquidity Risk, which is representative of when the hedge reserve in equity will be recycled to the statement of comprehensive income. These are included in the following line items in the income statement.
Movement in hedge reserve
EUR 1\u00a0000 | 2024 | 2023 |
Cost of goods sold | 1\u00a0834 | (1\u00a0673) |
Other operating expenses | 705 | (1\u00a0829) |
Net financial items | (6\u00a0918) | (5\u00a0518) |
Total | (4\u00a0380) | (9\u00a0020) |
Movement in hedge reserve due to changes in fair values | (3\u00a0407) | (10\u00a0537) |
Total movement in hedge reserve | 973 | (1\u00a0517) |
Due to Elopak hedging policy, hedges are entered into based on highly probable future transactions, either per trans-action or by applying base layers. All hedges have a hedge ratio 1:1 and hedge in-effectiveness related to differences in timing of settlement in 2024 and 2023 was insignificant and is not recognised directly to profit and loss.
Carrying amount of financial asset and liabilities
The fair value of all financial assets and liabilities approximates their carrying value. The fair value estimation of derivative financial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than unadjusted quoted prices for identical assets and liabilities.
December 31, 2024 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 1 751 | 49 | - | 1 799 | - | 1 799 | - | 1 799 | |
Finance lease receivable\u200c1\u200c | - | - | 9 017 | 9 017 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 122 259 | 122 259 | - | - | - | - | |
Cash and cash equivalents | - | - | 28 052 | 28 052 | - | - | - | - | |
Total | 1 751 | 49 | 159 328 | 161 128 | - | 1 799 | - | 1 799 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 290 974 | 290 974 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 106 531 | 106 531 | - | - | - | - | |
Derivatives | 8 265 | 4 268 | - | 12 533 | - | 12 533 | - | 12 533 | |
Trade payables and Other payables | - | - | 113 786 | 113 786 | - | - | - | - | |
Total | 8 265 | 4 268 | 511 292 | 523 825 | - | 12 533 | - | 12 533 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Carrying amount of financial asset and liabilities
December 31, 2023 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 3 660 | 925 | - | 4 585 | - | 4 585 | - | 4 585 | |
Finance lease receivable\u200c1\u200c | - | - | 7 084 | 7 084 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 112 639 | 112 639 | - | - | - | - | |
Cash and cash equivalents | - | - | 13 308 | 13 308 | - | - | - | - | |
Total | 3 660 | 925 | 133 032 | 137 617 | - | 4 585 | - | 4 585 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 243 767 | 243 767 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 101 520 | 101 520 | - | - | - | - | |
Derivatives | 5 451 | 6 460 | - | 11 910 | - | 11 910 | - | 11 910 | |
Trade payables and Other payables | - | - | 168 864 | 168 864 | - | - | - | - | |
Total | 5 451 | 6 460 | 514 151 | 526 062 | - | 11 910 | - | 11 910 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Fair value of financial assets and financial liabilities are measured using different levels of input.
\u2022Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
\u2022Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
\u2022Level 3 inputs are unobservable inputs for the asset or liability.
Accounting policy
The Group uses derivative financial instruments to hedge its risks to interest rate, foreign exchange rate and raw material fluctuations arising from operational, financing and investment activities. In accordance with its Treasury policy, the Group does use derivative financial instruments for trading purposes. The derivative financial instruments are measured at fair value.
Hedge accounting is applied for cash flow hedges and fair value hedges when hedging criteria are met. Recognition of any resultant gain or loss depends on the nature of the hedging relationship. The Group designates certain derivatives as either hedge of highly probable forecast transactions or hedge of foreign currency risk of firm commitments (cash flow hedges) or hedge of the fair value of recognised assets or liabilities or firm commitments (fair value hedges).
For cash flow hedges foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised directly in other comprehensive income, while any foreign exchange gains or losses relating to the ineffective portion are recognised in the income statement. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged. The derivative is also measured at fair value, and gains and losses from both the hedging instrument and the hedged item are recognised in the income statement.
Hedge effectiveness is assessed at inception and verified on a regular basis, and hedge accounting is discon-tinued if the hedge no longer meets the hedge accounting.
Any gains or losses arising from changes in fair value on derivative financial instruments that are not cash flow hedges or fair value hedges are recognized in the income statement as financial income or expense.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForDerivativeFinancialInstrumentsAndHedgingExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__81": { "value": "Accounting policy
The Group uses derivative financial instruments to hedge its risks to interest rate, foreign exchange rate and raw material fluctuations arising from operational, financing and investment activities. In accordance with its Treasury policy, the Group does use derivative financial instruments for trading purposes. The derivative financial instruments are measured at fair value.
Hedge accounting is applied for cash flow hedges and fair value hedges when hedging criteria are met. Recognition of any resultant gain or loss depends on the nature of the hedging relationship. The Group designates certain derivatives as either hedge of highly probable forecast transactions or hedge of foreign currency risk of firm commitments (cash flow hedges) or hedge of the fair value of recognised assets or liabilities or firm commitments (fair value hedges).
For cash flow hedges foreign exchange gains or losses on the hedging instrument relating to the effective portion of the hedge are recognised directly in other comprehensive income, while any foreign exchange gains or losses relating to the ineffective portion are recognised in the income statement. For fair value hedges, the carrying amount of the hedged item is adjusted for gains and losses attributable to the risk being hedged. The derivative is also measured at fair value, and gains and losses from both the hedging instrument and the hedged item are recognised in the income statement.
Hedge effectiveness is assessed at inception and verified on a regular basis, and hedge accounting is discon-tinued if the hedge no longer meets the hedge accounting.
Any gains or losses arising from changes in fair value on derivative financial instruments that are not cash flow hedges or fair value hedges are recognized in the income statement as financial income or expense.
", "dimensions": { "concept": "ifrs-full:DescriptionOfAccountingPolicyForHedgingExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__78": { "value": "1. Market risk
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: currency risk, commodity price risk and interest rate risk. Elopak buys derivatives to manage market risks and seeks to apply hedge accounting to manage volatility in profit or loss. Hedge accounting is applied to all currency and commodity derivatives, while interest rate and cross-currency derivatives are not subject to hedge accounting.
Derivatives
December 31, 2024 | December 31, 2023 | |||||
EUR 1\u00a0000 | Assets | Liabilities | Total | Assets | Liabilities | Total |
Currency derivatives | 75 | 8\u00a0895 | (8\u00a0819) | 904 | 7\u00a0398 | (6\u00a0494) |
Commodity derivatives | 32 | 631 | (599) | 31 | 2\u00a0408 | (2\u00a0377) |
Interest derivatives | 1\u00a0693 | 3\u00a0007 | (1\u00a0315) | 3\u00a0650 | 2\u00a0105 | 1\u00a0545 |
Total | 1\u00a0800 | 12\u00a0533 | (10\u00a0733) | 4\u00a0585 | 11\u00a0911 | (7\u00a0326) |
The full fair value of a derivative is classified as \u201cOther non-current assets\u201d or \u201cOther non-current liabilities\u201d if the remaining maturity of the derivative is more than 12 months and as \u201cOther current assets\u201d or \u201cOther current liabilities\u201d, if the maturity of the derivative is less than 12 months. The fair value estimation of derivative finan-cial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than
unadjusted quoted prices for identical assets and liabilities, with changes in fair value are therefore recognized in the income statement.
Where eligible, derivatives used for hedging are designated in cash flow hedge accounting relationships.
Exchange rate risk
The Group is exposed to changes in the value of EUR relative to other currencies. Elopak\u2019s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign operations and net investments in foreign subsid-iaries. The carrying amount of the Group\u2019s net investments in foreign entities and proceeds from these investments varies with changes in the foreign exchange rate. The Group\u2019s net income is affected by currency fluctuations, as the profit and losses from foreign operations are translated into EUR using average exchange rates for the period.
The carrying amounts of Elopak ASA\u2019s foreign currency denominated monetary assets and monetary liabilities at the reporting date are as follows:
Assets | Liabilities | |||
Currency | 2024 | 2023 | 2024 | 2023 |
BGN | 438 | 241 | 265 | 246 |
CAD | 134\u00a0930 | 96\u00a0376 | 164\u00a0864 | 64\u00a0044 |
CHF | 3\u00a0451 | 4\u00a0800 | 3\u00a0418 | 4\u00a0771 |
CZK | 63\u00a0326 | 62\u00a0929 | 63\u00a0178 | 62\u00a0821 |
DKK | 3 263 500 | 2\u00a0809\u00a0965 | 3\u00a0337\u00a0774 | 2\u00a0889\u00a0442 |
EUR | 840\u00a0974 | 86\u00a0393 | 901 160 | 750\u00a0783 |
GBP | 39 729 | 32\u00a0760 | 40\u00a0111 | 32\u00a0821 |
HUF | 940\u00a0869 | 863\u00a0797 | 454\u00a0357 | 449\u00a0243 |
NIS | - | - | 9 | 9 |
JPY | 4\u00a0158\u00a0712 | 2\u00a0814\u00a0818 | 6\u00a0284\u00a0200 | 6\u00a0493\u00a0463 |
MXN | 66\u00a0571 | 66\u00a0521 | 62\u00a0313 | 62\u00a0304 |
NOK | 2 902 889 | 2\u00a0537\u00a0714 | 5\u00a0723\u00a0572 | 2\u00a0548\u00a0400 |
PLN | 101 059 | 79 545 | 99 165 | 78 552 |
RUR | 1 889 318 | 1 889 323 | 1 888 920 | 1 888 924 |
SEK | 361 121 | 260 590 | 369 341 | 274 466 |
USD | 269 853 | 63 043 | 209 431 | 83 515 |
Foreign exchange risk related to foreign operating activities, such as payments of salaries and personnel and corporate tax in foreign currencies, managed by hedging cash flows that are considered highly probable over the next 18 months, using a layered hedging strategy.
Foreign exchange risk related to procurement of filling machines are hedged at a one-to-one basis (100% coverage at the specified date of payment). The entire green bonds in NOK have been economically hedged through cross-currency swaps converting the liabilities to EUR. The residual translation risk relates to inconsistencies in the accounting measurement between the NOK bonds, measured at amortized cost using the effective interest method, and the cross-currency swaps, measured at fair value through profit and loss.
Hedge accounting is applied to all foreign exchange derivatives, provided all hedging criteria are met. Hedge accounting is designated at the date of recognition of the hedged item, however the derivatives are due at the date of expected payment. At designation, the fair value of the hedging derivatives is recycled from Hedge reserve to the hedged item (i.e. filling machine recognised in inventory), and to profit or loss to the same accounting line and at the same time as the hedged item is recognised to profit or loss.
Outstanding derivatives
Outstanding FX derivatives
Nominal amount | December 31, 2024 | December 31, 2023 | ||
Currency | Ccy | EUR | Ccy | EUR |
CAD | - | - | 7\u00a0749 | 5\u00a0292 |
EUR | (62\u00a0694) | (62\u00a0694) | (89\u00a0952) | (89\u00a0952) |
JPY | 6\u00a0410\u00a0567 | 39 314 | 10\u00a0358\u00a0989 | 66\u00a0264 |
NOK | 290\u00a0700 | 24 646 | 388\u00a0197 | 34\u00a0536 |
USD | (6\u00a0749) | (6 496) | (27\u00a0740) | (25\u00a0104) |
Total nominal value | (5 230) | (8\u00a0965) | ||
Total fair value | (4\u00a0761) | (6\u00a0494) |
Positive numbers represent purchases
Outstanding CCS derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
Currency | Notional EUR | Fair value | Notional EUR | Fair value |
EURNOK | 232\u00a0233 | (4\u00a0058) | ||
Total | (4\u00a0058) |
Positive numbers represent derivative assets
Exchange rate risk sensitivity
The Group calculates the sensitivity on the change in fair value on foreign exchange and cross currency derivatives of a defined change in the foreign exchange rates relative to EUR, with all other variables being held constant. This is shown in the table below:
Foreign exchange contracts and cross currency swaps
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
+5% | (16\u00a0074) | (5\u00a0932) | (5\u00a0022) | (10\u00a0872) | |
(5%) | 8\u00a0240 | (234) | (2\u00a0597) | (427) |
The impact on the Group\u2019s equity is due to changes in the fair value of foreign exchange derivatives designated as cash flow hedges. The cross-currency derivatives are not subject to hedge accounting, however economically fully hedge the NOK bond foreign exchange exposure through converting the liabilities to floating Euribor.
Financial instruments designated as cash flow hedges
As of 31 December 2024 and 2023, all material foreign exchange derivatives positions are designated cash flow hedges.
Interest risk
Elopak is exposed to fluctuations in interest rates through funding and cash management activities. Changes in interest rates affect the fair value of assets and liabilities. Interest income and interest expense in the income
statement are influenced by changes in interest rates in the market. To manage this risk, the Group maintains a portion of its borrowings at fixed rates of interest by entering interest rate swaps. The fixed rate green bond has been converted to floating Euribor through cross-currency swap. These interest rate and cross currency swaps are designated to hedge underlying debt obligations; however, they are not subject to hedge accounting.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Currency | Notional EUR | Fair value | Notional EUR | Fair value |
Interest | EUR | 180\u00a0000 | (1\u00a0315) | 150\u00a0000 | 1\u00a0545 |
Total | (1\u00a0315) | 1\u00a0545 |
Positive numbers represent derivative assets
Interest rate risk sensitivity
Elopak calculates the sensitivity on the change in fair value on interest rate swaps of a defined parallel shift in the interest rate curve of the relevant currencies, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Interest rate swaps | +1% | 6\u00a0102 | 4\u00a0417 | ||
(1%) | (6\u00a0437) | (4\u00a0642) |
The interest rate derivatives are not subject to hedge accounting.
Commodity price risk
Elopak\u2019s operating activities require a continuous supply of aluminium and polyethylene. Based on a 12-month forecast of requirements the Group manages the commodity price risk by hedging the purchase price of the commodity with the use of commodity price swaps. Hedge accounting is applied for all commodity derivatives. The Group policy states that minimum 60% of our closed commodity position in the current customer price validity period should be hedged, financially or commercially.
Outstanding derivatives
Notional amounts and fair values | December 31, 2024 | December 31, 2023 | ||
EUR 1\u00a0000 | Metric Tonnes | Fair value | Metric Tonnes | Fair value |
Polyethylene | 15\u00a0000 | (631) | 15\u00a0000 | (2\u00a0408) |
Aluminium | 2 400 | 32 | 3\u00a0960 | 31 |
Total | (599) | (2\u00a0377) |
Positive numbers represent derivative assets
Commodity risk sensitivity
The Group calculates the sensitivity on the change in fair value on commodity derivatives of a defined change in the commodity price, with all other variables being held constant. This is shown in the table below:
Numbers are before tax | December 31, 2024 | December 31, 2023 | |||
EUR 1\u00a0000 | Movement | Effect on profit | Effect on equity | Effect on profit | Effect on equity |
Commodity swaps | +5% | 1\u00a0659 | 1\u00a0604 | ||
(5%) | (1\u00a0659) | (1\u00a0604) |
2. Liquidity risk
Elopak\u2019s objective is to maintain a balance between continuity of funding, and flexibility through the use of a long-term syndicated revolving credit facility and overdraft facilities connected to Elopak ASA\u2019s cash pools. To the extent permissible by local rules and regulations, subsidiaries owned 90% or more, participate in Elopak ASA\u2019s cash pool. Elopak ASA shall have sufficient sources of liquidity to cover expected operational liquidity needs for the next 12 months. Liquidity requirements to fund acquisitions is considered separately.
The maturity profile of the Group\u2019s financial assets and liabilities based on contractual undiscounted payments is summarised below. The tables only show balance sheet items classified as financial instruments and do not include other balance sheet items affecting liquidity, such as inventories. Also, off-balance sheet items such as unused credit facilities are not included. The derivative instruments may be settled gross or net with the relevant protocol being reflected in the tables.
Contractual maturities of financial liabilities, including estimated interest payments
Non-derivatives financial liabilities
EUR 1\u00a0000 | Note | Carrying value | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal |
Loans and borrowings | 290 123 | 30 383 | 63 791 | 153 175 | 43 625 | 290 974 | |
Accounts payable | 73 304 | 73 304 | - | - | - | 73 304 | |
Other liabilities | 196 726 | 126 160 | 25 456 | 19 665 | 25 444 | 196 726 | |
Total | 560 153 | 229 847 | 89 247 | 172 840 | 69 069 | 561 004 |
Derivatives financial instruments
EUR 1\u00a0000 | < 1 year | 1-3 years | 3-5 years | > 5 years | Total Nominal | |
FX | 4 421 | 404 | - | - | 4 825 | |
IRS | - | - | 1 995 | 1 013 | 3 007 | |
Commodities | 631 | - | - | - | 631 | |
CCS | - | 1 148 | 2 331 | 590 | 4 070 | |
Total | 5 051 | 1 552 | 4 326 | 1 603 | 12 533 |
3. Credit risk
Credit risk is the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group. Elopak has adopted a policy of only being exposed to credit-worthy counterparties, based upon independent credit analysis for all counterparties, where available. In the cases where this is not available, Elopak uses other publicly avail-able financial information and its own trading records to assess creditworthiness. Outstanding receivables are monitored regularly.
", "dimensions": { "concept": "ifrs-full:DisclosureOfCreditRiskExplanatory", "language": "en", "entity": "scheme:529900BIDQN2AOKV6N08", "period": "2024-01-01T00:00:00/2025-01-01T00:00:00" } }, "f0__s6__12__83": { "value": "Carrying amount of financial asset and liabilities
The fair value of all financial assets and liabilities approximates their carrying value. The fair value estimation of derivative financial instruments has been arrived at by applying a level 2 valuation methodology which uses inputs other than unadjusted quoted prices for identical assets and liabilities.
December 31, 2024 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 1 751 | 49 | - | 1 799 | - | 1 799 | - | 1 799 | |
Finance lease receivable\u200c1\u200c | - | - | 9 017 | 9 017 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 122 259 | 122 259 | - | - | - | - | |
Cash and cash equivalents | - | - | 28 052 | 28 052 | - | - | - | - | |
Total | 1 751 | 49 | 159 328 | 161 128 | - | 1 799 | - | 1 799 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 290 974 | 290 974 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 106 531 | 106 531 | - | - | - | - | |
Derivatives | 8 265 | 4 268 | - | 12 533 | - | 12 533 | - | 12 533 | |
Trade payables and Other payables | - | - | 113 786 | 113 786 | - | - | - | - | |
Total | 8 265 | 4 268 | 511 292 | 523 825 | - | 12 533 | - | 12 533 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Carrying amount of financial asset and liabilities
December 31, 2023 | Categories | Fair value measurement using | |||||||
EUR 1\u00a0000 | Notes | Fair value through profit and loss (FVPL) | |||||||
Fair value through other comprehensive income (FVOCI) | Financial instruments at amortised cost | Total | Quoted prices in active markets (Level 1) | Significant observable inputs (Level 2) | Significant unobservable inputs (Level 3) | Total instruments measured at fair value | |||
Assets | |||||||||
Derivatives | 3 660 | 925 | - | 4 585 | - | 4 585 | - | 4 585 | |
Finance lease receivable\u200c1\u200c | - | - | 7 084 | 7 084 | - | - | - | - | |
Trade receivables and Other current assets | - | - | 112 639 | 112 639 | - | - | - | - | |
Cash and cash equivalents | - | - | 13 308 | 13 308 | - | - | - | - | |
Total | 3 660 | 925 | 133 032 | 137 617 | - | 4 585 | - | 4 585 | |
Liabilities | |||||||||
Liablities to financial institutions | - | - | 243 767 | 243 767 | - | - | - | - | |
Lease liabilities\u200c1 | - | - | 101 520 | 101 520 | - | - | - | - | |
Derivatives | 5 451 | 6 460 | - | 11 910 | - | 11 910 | - | 11 910 | |
Trade payables and Other payables | - | - | 168 864 | 168 864 | - | - | - | - | |
Total | 5 451 | 6 460 | 514 151 | 526 062 | - | 11 910 | - | 11 910 |
1The categories of IFRS 9 do not apply to leasing, the subsequent measurement in accordance with IFRS 16 resembles the measurement of financial instruments at amortized cost and is included under this category for carrying amounts\t
Fair value of financial assets and financial liabilities are measured using different levels of input.
\u2022Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.
\u2022Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.
\u2022Level 3 inputs are unobservable inputs for the asset or liability.
Note 25 Change in obligations from financial activities
2024 | ||||
EUR 1\u00a0000 | Interest-bearing loans and borrowings(Note21) | Lease liabilities(Note14) | ||
Current non-in-terest bearing liabilities(Note26) | Total | |||
1.1 | 243\u00a0756 | 101\u00a0520 | 40\u00a0466 | 385\u00a0742 |
Cash Flows | ||||
Proceeds from borrowings | 288\u00a0918 | - | 218\u00a0977 | 507 895 |
Repayment of borrowings | (246\u00a0248) | - | (219\u00a0661) | (465 909) |
Interest on borrowings | (15\u00a0304) | - | - | (15\u00a0304) |
Lease payments | - | (23\u00a0589) | - | (23\u00a0589) |
Non-cash effects | ||||
Interest expense | 15\u00a0105 | 7\u00a0892 | - | 22\u00a0997 |
Net additions lease liabilities | - | 20\u00a0708 | - | 20\u00a0708 |
Other non-cash items | 967 | - | - | 967 |
31.12 | 287\u00a0194 | 106\u00a0531 | 39\u00a0782 | 433\u00a0507 |
2023 | ||||
EUR 1\u00a0000 | Interest-bearing loans and borrowings(Note21) | Lease liabilities(Note14) | ||
Current non-in-terest bearing liabilities(Note26) | Total | |||
1.1 | 325\u00a0715 | 90\u00a0674 | 38\u00a0341 | 454\u00a0731 |
Cash Flows | ||||
Proceeds from borrowings | 1\u00a0087\u00a0304 | - | 218\u00a0596 | 1\u00a0305\u00a0900 |
Repayment of borrowings | (1\u00a0174\u00a0598) | - | (216\u00a0471) | (1\u00a0391\u00a0069) |
Interest on borrowings | (11\u00a0303) | - | - | (11\u00a0303) |
Lease payments | - | (18\u00a0359) | - | (18\u00a0359) |
Non-cash effects | ||||
Interest expense | 11\u00a0605 | 6\u00a0566 | - | 18\u00a0171 |
Net additions lease liabilities | - | 22\u00a0639 | - | 22\u00a0639 |
Other non-cash items | 5\u00a0033 | - | - | 5\u00a0033 |
31.12 | 243\u00a0756 | 101\u00a0520 | 40\u00a0466 | 385\u00a0742 |
Note 26 Supplier Finance Arrangements
The Group had introduced supply chain financing for large board suppliers and in some circumstances the payment terms in the contract with the vendor are linked to the supply chain financing arrangement. In such circumstances, the payable for the goods delivered is reclassified from trade payables to current non-interest bearing liabilities, and the change in the current non-interest bearing liabilities has been presented as financing activities in the statement of cash flows. The supply chain financing arrangement is provided by a leading Nordic financial services group with stand-alone rating of A by S&P Global, AAA by Moody\u2019s and AA-by Fitch.
Carrying amounts of liabilities part of the arrangement
EUR 1\u00a0000 | 31 December 2024 | 31 December 2023 |
Presented in finance payables | 39\u00a0782 | 40\u00a0466 |
of which suppliers have been paid by finance providers | 39\u00a0782 | 40\u00a0466 |
Range of payment due dates: | Days after invoice date | |
Liabilities that are part of the SCF | 90 | 90 |
Payment terms with the board suppliers, without the supply chain financing arrangement. | 30-75 | 30-75 |
Effects in financial statements
In Statement of financial position a reclassification for 2024 and 2023:
Before | Before | After | After | |
EUR 1\u00a0000 | 2024 | 2023 | 2024 | 2023 |
Trade payables | 113 086 | 127 847 | 73 304 | 87 381 |
Current non-interest bearing liabilities | 39 782 | 40 466 |
In Cashflow a reclassification for 2024 and 2023:
Before | Before | After | After | |
EUR 1\u00a0000 | 2024 | 2023 | 2024 | 2023 |
Change in accounts payables | (16\u00a0259) | 3\u00a0897 | (15\u00a0575) | 1\u00a0772 |
Net cashflow from operating activities | (16\u00a0259) | 3\u00a0897 | (15\u00a0575) | 1\u00a0772 |
Net payments on supply chain financing | (684) | 2\u00a0125 | ||
Net cashflow from financing activities | (684) | 2\u00a0125 |
Note 27 Shares in subsidiaries and joint ventures
The following companies are consolidated as subsidiaries in Elopak Group
Company | Percentage owned | Year of acquisition | Country | Principal activity |
Elopak AB | 100% | 1961 | Sweden | Trading |
Elopak B.V. | 100% | 1968 | Netherlands | Manufacturing |
Elopak GmbH | 100% | 1968 | Germany | Trading and manufacturing |
Elopak SpA | 100% | 1981 | Italy | Trading |
Elopak Oy | 100% | 1982 | Finland | Trading |
Elopak Systems AG | 100% | 1984 | Switzerland | Trading |
Elopak Holdco US Inc. | 100% | 2024 | USA | Holding |
Elopak Inc. | 100% | 1987 | USA | Trading |
Elopak Denmark A/S | 100% | 1988 | Denmark | Trading and manufacturing |
Elopak GesmbH | 100% | 1989 | Austria | Trading |
PrJSC Elopak Fastiv | 100% | 1994 | Ukraine | Trading and manufacturing |
Elopak S.A. | 100% | 1994 | Poland | Trading and service |
Elopak Israel AS | 100% | 1998 | Norway | Holding |
Elopak Canada Inc. | 100% | 2000 | Canada | Trading and manufacturing |
Elofill GmbH | 100% | 2000 | Germany | Holding |
Elopak s.r.o. | 100% | 2001 | Czech Republic | Trading |
Elopak UK Ltd | 100% | 2004 | United Kingdom | Trading |
Elopak BS d.o.o | 100% | 2017 | Serbia | Service |
Elopak Kft. | 100% | 2006 | Hungary | Trading |
Elopak EOOD | 100% | 2009 | Bulgaria | Trading |
Elopak Tunisie SARL | 100% | 2017 | Tunisia | Trading |
Elopak Egypt LLC | 100% | 2017 | Egypt | Trading |
Elopak Algerie SARL | 100% | 2018 | Algeria | Trading |
Elopak Arabia Holding Company LLC | 100% | 2022 | Saudi Arabia | Holding |
Elopak Packaging Company LLC | 100% | 2022 | Saudi Arabia | Trading and manufacturing |
Elopak Morocco SAS | 100% | 2022 | Morocco | Trading and manufacturing |
GLS Elopak | 50% | 2022 | India | Trading and manufacturing |
The percentage owned represents the voting stake.
The following joint ventures are accounted for in accordance with the equity method
Company | Percentage owned | Year of acquisition | Country | Principal activity |
Lala Elopak S.A. de C.V. | 49% | 1998 | Mexico | Trading and manufacturing |
Impresora Del Yaque | 51% | 2007 | Dominican Republic | Trading and manufacturing |
Elopak Nampak Africa Ltd | 50% | 2020 | Kenya | Trading |
The percentage owned represents the voting stake.
Note 27 Shares in subsidiaries and joint ventures
The following companies are consolidated as subsidiaries in Elopak Group
Company | Percentage owned | Year of acquisition | Country | Principal activity |
Elopak AB | 100% | 1961 | Sweden | Trading |
Elopak B.V. | 100% | 1968 | Netherlands | Manufacturing |
Elopak GmbH | 100% | 1968 | Germany | Trading and manufacturing |
Elopak SpA | 100% | 1981 | Italy | Trading |
Elopak Oy | 100% | 1982 | Finland | Trading |
Elopak Systems AG | 100% | 1984 | Switzerland | Trading |
Elopak Holdco US Inc. | 100% | 2024 | USA | Holding |
Elopak Inc. | 100% | 1987 | USA | Trading |
Elopak Denmark A/S | 100% | 1988 | Denmark | Trading and manufacturing |
Elopak GesmbH | 100% | 1989 | Austria | Trading |
PrJSC Elopak Fastiv | 100% | 1994 | Ukraine | Trading and manufacturing |
Elopak S.A. | 100% | 1994 | Poland | Trading and service |
Elopak Israel AS | 100% | 1998 | Norway | Holding |
Elopak Canada Inc. | 100% | 2000 | Canada | Trading and manufacturing |
Elofill GmbH | 100% | 2000 | Germany | Holding |
Elopak s.r.o. | 100% | 2001 | Czech Republic | Trading |
Elopak UK Ltd | 100% | 2004 | United Kingdom | Trading |
Elopak BS d.o.o | 100% | 2017 | Serbia | Service |
Elopak Kft. | 100% | 2006 | Hungary | Trading |
Elopak EOOD | 100% | 2009 | Bulgaria | Trading |
Elopak Tunisie SARL | 100% | 2017 | Tunisia | Trading |
Elopak Egypt LLC | 100% | 2017 | Egypt | Trading |
Elopak Algerie SARL | 100% | 2018 | Algeria | Trading |
Elopak Arabia Holding Company LLC | 100% | 2022 | Saudi Arabia | Holding |
Elopak Packaging Company LLC | 100% | 2022 | Saudi Arabia | Trading and manufacturing |
Elopak Morocco SAS | 100% | 2022 | Morocco | Trading and manufacturing |
GLS Elopak | 50% | 2022 | India | Trading and manufacturing |
The percentage owned represents the voting stake.
The following joint ventures are accounted for in accordance with the equity method
Company | Percentage owned | Year of acquisition | Country | Principal activity |
Lala Elopak S.A. de C.V. | 49% | 1998 | Mexico | Trading and manufacturing |
Impresora Del Yaque | 51% | 2007 | Dominican Republic | Trading and manufacturing |
Elopak Nampak Africa Ltd | 50% | 2020 | Kenya | Trading |
The percentage owned represents the voting stake.
Note 28 Related parties
Transactions with key management
Related party transactions and balances
Transaction values for the year ended | Balance outstanding as of | |||
EUR 1\u00a0000 | December 31 2024 | December 31 2023 | December 31 2024 | December 31 2023 |
Joint Ventures | ||||
Sales of goods and services | 2\u00a0854 | 7\u00a0606 | 1 214 | 5\u00a0033 |
Purchase of goods and services | 52\u00a0478 | 36\u00a0865 | 3 583 | 3\u00a0075 |
Dividends received | 9\u00a0866 | 2\u00a0018 | - | - |
Associates | ||||
Sales of goods and services | 20 | 82 | - | - |
Purchase of goods and services | 2\u00a0114 | 1\u00a0777 | 606 | 23 |
Loan and related interest | - | - | 815 | 818 |
Board of Directors: annual compensation and number of shares owned
Compensation earned | Number of shares | |||
EUR 1\u00a0000, except number of shares | December 31 2024 | December 31 2023 | December 31 2024 | December 31 2023 |
Dag Mejdell, Chairperson | 74 | 45 | 56\u00a0000 | 56\u00a0000 |
Sid Mehran Johari | 40 | 40 | 17\u00a0857 | 17\u00a0857 |
Anna Kristina Belfrage | 48 | 48 | - | - |
Manuel Arbiol Pascual | - | - | - | - |
Marianne \u00d8degaard Ribe | 25 | - | - | - |
Anette Bauer Ellingsen | 13 | 13 | 1\u00a0071 | 1\u00a0071 |
H\u00e5vard Grande Urhamar | 13 | 5 | - | - |
Cornelia Ann O Neill Kormeseth | - | - | - | - |
Erland Fretheim | - | - | 370 | 370 |
Magne Johan Hamarstr\u00f8m | - | - | - | - |
Jo Olav Lunder\u200c1 | - | 21 | - | - |
Trond Solberg\u200c2 | 20 | 50 | - | - |
Sanna Suvanto- Harsaae\u200c3 | 18 | 43 | 14\u00a0285 | 14\u00a0285 |
Erlend Sveva\u200c4 | - | 8 | - | 1\u00a0071 |
Marianne Groven\u200c5 | - | - | - | - |
1Left his position as Chairperson May 11, 2023
2Left his position as Board member May 13, 2024
3Left her position as Board member May 13, 2024
4Left his position as Board member August 30, 2023
5Left her position as Board member end August, 2024
Other related party transactions
Loans to employees were EUR 25 thousand in 2024 and EUR 19 thousand in 2023. No guarantees have been provided. None of the Board Members or the CEO have executive loans or guarantees in the company.
Note 29 Fees to external auditors
PWC was elected as the principal auditor for 2019, while some group companies are audited by other audit firms.
Year to date ended December 31, 2024 | |||||
EUR 1\u00a0000 | Audit fee | Other assurance services | Tax services | Other non-audit services | Total |
PWC | (828) | (83) | (6) | (100) | (1\u00a0016) |
Others | (156) | - | (137) | - | (293) |
Total | (984) | (83) | (143) | (100) | (1\u00a0309) |
Year to date ended December 31, 2023 | |||||
EUR 1\u00a0000 | Audit fee | Other assurance services | Tax services | Other non-audit services | Total |
PWC | (878) | (34) | (2) | (96) | (1\u00a0010) |
Others | (230) | (3) | (113) | (89) | (435) |
Total | (1\u00a0108) | (37) | (115) | (185) | (1\u00a0445) |
Note 30 Subsequent events
The Board of Directors will propose to the Annual General Meeting a dividend of EUR 0.13 per share for 2024.
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Financial climate impacts
Based on the double materiality assessment and the climate risk assessment, Elopak has considered the impacts of climate change in preparing the 2024 consolidated annual financial statements. To read more about climate risks, see chapter four Sustainability statement.
Impact on capital expenditure commitments:
\u2022Targets related to reduced emissions are mainly met by replacing old production line components with new, more energy-effective components. Most of the replaced parts are already fully depreciated.
\u2022Due to the Single Use Plastic Directive the existing Caps lease contracts were reassessed in 2022 with a reduced useful life in preparation for the changing legislation. Elopak has signed a contract for Tethered Cap lines and is expecting to expand the offering of tethered cap solutions to customers during 2023 and 2024. Additionally, Elopak has assessed that the existing lease contracts for separable cap lines should be fully depreciated before the tethering requirement will be in place and has therefore reassessed the respective leases, see Note 14for further information.
Recognition and measurement of impairments:
Impairments are mainly identified and recognized by determining the recoverable amount based on value in use, which means that the item is measured as a present value of discounted future cash-flows. These cash flows are based on expected revenues, result and capital expenditures in the CGU of which the item is operating within. The climate risk financial impact assessment concludes that the potential of revenues is by far higher than the risk of costs and that the revenues is likely to occur earlier than the costs. In the case that Elopak is faced with increased cost related to the climate risks, this will over time be passed on to the customers, like what other packaging companies are expected to do when faced with the same climate challenges. Based on this, we consider the risk of impairment related to climate risk to be low.
Recognition and measurement of provisions and disclosures surrounding contingent liabilities:
Elopak has not identified future costs or losses that meet the definition of provision or contingent liabilities under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
Inventory is measured at cost and written down to the extent that expected sales price less cost of sales is lower than cost. Inventory items related to sale of cartons and closures have a high turnover, hence it is not expected to be negatively impacted by future climate risk costs. Filling machines and spare parts for filling machines have a lower turnover in inventory, however climate risk assessments have not concluded a specific risk related to these machines.
Besides the specific assessments mentioned above, no financial climate impacts have been identified as material to the 2024 consolidated Annual Financial Statements or the alternative performance measures (APMs).