Approved at the Company’s
Annual General Meeting
on 26th April 2024
ldavang A/S
Tofthøjvej 41, DK-7321 Gadbjerg
CVR 20 95 61 43
Contents
Independent
auditors’ report
Management's review
Company Details
Group Chart
Historical Development
Business Review 2023
Current Risks
Sustainability Agenda
Annual Account Taxonomy
Parent Company
Financial statements
for the period
1 January - 31 December
Income Statement
Statement of Other
Comprehensive Income
Balance Sheet
Statement of
Changes in Equity
Cash Flow Statement
Notes
Group
Financial statements
for the period
1 January - 31 December
Income Statement
Statement of Other
Comprehensive Income
Balance Sheet
Statement of
Changes in Equity
Cash Flow Statement
Notes
Statement by the
Board of Directors and
the Executive Board
4
10
11
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47
47
49
50
51
48
3
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84
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15
8246
2
Statement
by the Board of Directors and the Executive Board
Executive Board
Claus Baltersen
CEO
Michael Henriksen
CFO
Board of Directors
Claus Baltersen Ole Bjerremand Hansen
Carsten Lund Thomsen
Niels Hermansen
Chairman
Jytte Rosenmaj
Tofthøj, 26 April 2024
The Board of Directors and Executive Board have today considered and adopted the
Annual Report of Idavang A/S for the financial year 1 January – 31 December 2023.
The Annual Report has been prepared in accordance with International Financial Reporting
Standards as adopted by the EU and further requirements in the Danish Financial
Statements Act.
In our opinion, the Consolidated Financial Statements and the Parent Company Financial
Statements give a true and fair view of the financial position at 31 December 2023 of the
Group and the Parent Company and of the results of the Group and Parent Company
operations and cash flows for 2023.
In our opinion, Management’s Review includes a true and fair account of the development
in the operations and financial circumstances of the Group and the Parent Company, of the
results for the year and of the financial position of the Group and the Parent Company as
well as a description of the most significant risks and elements of uncertainty facing the
Group and the Parent Company.
In our opinion, the Annual Report of Idavang A/S for the financial year 1 January - 31
December 2023 with the file name IDAVANG-2023-12-31-en.zip is prepared, in all material
respects, in compliance with the ESEF Regulation.
We recommend that the Annual Report be adopted at the Annual General Meeting.
3
non-audit services referred to in Article 5(1) of
Regulation (EU) No 537/2014 were not provided.
Appointment
We were first appointed auditors of Idavang A/S on
25 May 2020 for the financial year 2020. We have
been reappointed annually by shareholder
resolution for a total period of uninterrupted
engagement of 4 years including the financial year
2023.
Key audit matters
Key audit matters are those matters that, in our
professional judgement, were of most significance in
our audit of the Financial Statements for 2023.
These matters were addressed in the context of our
audit of the Financial Statements as a whole, and in
forming our opinion thereon, and we do not provide
a separate opinion on these matters.
including material accounting policy information for
the Group as well as for the Parent Company.
Collectively referred to as the “Financial Statements”.
Basis for opinion
We conducted our audit in accordance with
International Standards on Auditing (ISAs) and the
additional requirements applicable in Denmark. Our
responsibilities under those standards and
requirements are further described in the Auditor’s
responsibilities for the audit of the Financial
Statements section of our report.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
Independence
We are independent of the Group in accordance with
the International Ethics Standards Board for
Accountants’ International Code of Ethics for
Professional Accountants (IESBA Code) and the
additional ethical requirements applicable in
Denmark. We have also fulfilled our other ethical
responsibilities in accordance with these
requirements and the IESBA Code.
To the best of our knowledge and belief, prohibited
Independent Auditor’s Report
To the shareholders of ldavang A/S
Report on the audit of the
Financial statements
Our opinion
In our opinion, the Consolidated Financial Statements
and the Parent Company Financial Statements give a
true and fair view of the Group’s and the Parent
Company’s financial position at 31 December 2023
and of the results of the Group’s and the Parent
Company’s operations and cash flows for the financial
year 1 January to 31 December 2023 in accordance
with IFRS Accounting Standards as adopted by the EU
and further requirements in the Danish Financial
Statements Act.
Our opinion is consistent with our Auditor’s Long-
form Report to the Audit Committee and the Board
of Directors.
What we have audited
The Consolidated Financial Statements and Parent
Company Financial Statements of Idavang A/S for the
financial year 1 January to 31 December 2023
comprise income statement and statement of
comprehensive income, balance sheet, statement of
changes in equity, cash flow statement and notes,
4
Key audit matter How our audit addressed the key audit matter
Consolidation, recognition and valuation of Russian activities
A substantial part of the Group´s activities is located in North-western Russia.
The overall political situation in Russia is uncertain due to the international sanctions on Russia following
the Russian invasion of Ukraine.
This affects the consolidation and recognition of the activities in Russia due to uncertainty related to
Idavang's ability to control and operate the activities.
This also affects the valuation of the Russian assets, as there is uncertainty related to Idavang’s access to
proceeds from the assets in Russia.
We focused on this as the accounting treatment is complex and non-standard by nature, and involves
significant judgement to be made by Management. Further, there is a high level of subjectivity exercised
by Management in determining WACC and estimating future cash flows in the impairment test.
We refer to note 2 in the Consolidated Financial Statements.
Fair value of commercial and breeding herd
The Group’s biological assets in terms of commercial and breeding herd are measured at fair value less
selling costs at the balance sheet date. At 31 December 2023 the fair value of the Group’s herd amounts
to EUR 44.155 thousand (2022: EUR 40.099 thousand).
The Group applies a model includes data on number of pigs, quotations and prices from recognized
markets and assumptions on necessary adjustments appropriate for the local markets.
We focused on the measurement of fair value because the model applied for determining the fair value is
complex and involves significant judgements, as local prices are not available in all relevant markets for
the various stages in the production from piglets to slaughter pigs and from young females to sows.
We refer to note 15 in the Consolidated Financial Statements.
We evaluated the management's basis for the assessment of Idavang’s ability to control and operate the
Russian activities.
We performed this evaluation considering the political situation in Russia impact on the Group’s ability to
control the Russian Activities.
We challenged the management’s basis for consolidation and recognition as continuing activities in the
Group consolidation.
We analysed and challenged the significant estimates and assumptions applied by Management in the
valuation of the Russian assets, including assumptions applied in the impairment test. We used our internal
valuation specialists in assessing the WACC used.
We evaluated and tested the appropriateness of the Group’s model for determining the fair value of the
herd throughout the stages of the production. We tested the Group’s model for consistency with previous
years.
We challenged the assumptions applied in the model with reference to historical data and external
documented quotations and sales prices based on age, weight, breed and genetic heritage, where
applicable.
We evaluated the appropriateness of the related disclosures provided.
Independent Auditor’s Report
To the shareholders of ldavang A/S
5
Auditor’s responsibilities for
the audit of the Financial Statements
Our objectives are to obtain reasonable assurance
about whether the Financial Statements as a whole are
free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit
conducted in accordance with ISAs and the additional
requirements applicable in Denmark will always detect a
material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of
users taken on the basis of these Financial Statements.
As part of an audit in accordance with ISAs and the
additional requirements applicable in Denmark, we
exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
Financial Statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the
override of internal control.
Management is responsible for Management’s
Review.
Our opinion on the Financial Statements does not
cover Management’s Review, and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the Financial
Statements, our responsibility is to read
Management’s Review and, in doing so, consider
whether Management’s Review is materially
inconsistent with the Financial Statements or our
knowledge obtained in the audit, or otherwise
appears to be materially misstated.
Moreover, we considered whether Management’s
Review includes the disclosures required by the
Danish Financial Statements Act and Article 8 of
Regulation (EU) 2020/852 (EU Taxonomy
Regulation).
Based on the work we have performed, in our view,
Management’s Review is in accordance with the
Consolidated Financial Statements and the Parent
Company Financial Statements and has been
prepared in accordance with the requirements of
the Danish Financial Statements Act and the
disclosure requirements of Article 8 of Regulation
(EU) 2020/852 (EU Taxonomy Regulation). We did
not identify any material misstatement in
Management’s Review.
Management’s responsibilities for
the Financial Statements
Management is responsible for the preparation of
consolidated financial statements and parent
company financial statements that give a true and
fair view in accordance with IFRS Accounting
Standards as adopted by the EU and further
requirements in the Danish Financial Statements
Act, and for such internal control as Management
determines is necessary to enable the preparation
of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the Financial Statements, Management
is responsible for assessing the Group’s and the
Parent Company’s ability to continue as a going
concern, disclosing, as applicable, matters related
to going concern and using the going concern
basis of accounting unless Management either
intends to liquidate the Group or the Parent
Company or to cease operations, or has no realistic
alternative but to do so.
Independent Auditor’s Report
To the shareholders of ldavang A/S
Statement
on Management’s
Review
6
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose
of expressing an opinion on the effectiveness of the
Group’s and the Parent Company’s internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and
related disclosures made by Management.
• Conclude on the appropriateness of Management’s use of
the going concern basis of accounting and based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast
significant doubt on the Group’s and the Parent
Company’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the
related disclosures in the Financial Statements or, if such
disclosures are inadequate, to modify our opinion. Our
conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events
or conditions may cause the Group or the Parent
Company to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content
of the Financial Statements, including the disclosures,
and whether the Financial Statements represent the
underlying transactions and events in a manner that
gives a true and fair view.
• Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business
activities within the Group to express an opinion on the
Report on compliance with
the ESEF Regulation
As part of our audit of the Financial Statements we
performed procedures to express an opinion on
whether the annual report of Idavang A/S for the
financial year 1 January to 31 December 2023 with the
filename IDAVANG-2023-12-31-en.zip is prepared, in
all material respects, in compliance with the
Commission Delegated Regulation (EU) 2019/815 on
the European Single Electronic Format (ESEF
Regulation) which includes requirements related to the
preparation of the annual report in XHTML format and
iXBRL tagging of the Consolidated Financial Statements
including notes.
Management is responsible for preparing an annual
report that complies with the ESEF Regulation. This
responsibility includes:
• The preparing of the annual report in XHTML format;
• The selection and application of appropriate iXBRL tags,
including extensions to the ESEF taxonomy and the
anchoring thereof to elements in the taxonomy, for all
financial information required to be tagged using judgement
where necessary;
• Ensuring consistency between iXBRL tagged data and the
Consolidated Financial Statements presented in human-
readable format; and
Consolidated Financial Statements. We are responsible
for the direction, supervision and performance of the
group audit.
We remain solely responsible for our audit opinion.
We communicate with those charged with
governance regarding, among other matters, the
planned scope and timing of the audit and
significant audit findings, including any significant
deficiencies in internal control that we identify
during our audit.
We also provide those charged with governance
with a statement that we have complied with
relevant ethical requirements regarding
independence, and to communicate with them all
relationships and other matters that may
reasonably be thought to bear on our
independence and, where applicable, actions taken
to eliminate threats or safeguards applied.
From the matters communicated with those
charged with governance, we determine those
matters that were of most significance in the audit
of the Financial Statements of the current period
and are therefore the key audit matters.
We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure
about the matter.
Independent Auditor’s Report
To the shareholders of ldavang A/S
7
creation of extension elements where no suitable element in the
ESEF taxonomy has been identified;
• Evaluating the use of anchoring of extension elements to
elements in the ESEF taxonomy; and
• Reconciling the iXBRL tagged data with the audited
Consolidated Financial Statements.
In our opinion, the annual report of Idavang A/S for the
financial year 1 January to 31 December 2023 with the file
name IDAVANG-2023-12-31-en.zip is prepared, in all
material respects, in compliance with the ESEF Regulation.
error. The procedures include:
• Testing whether the annual report is prepared in XHTML
format;
• Obtaining an understanding of the company's iXBRL
tagging process and of internal control over the tagging
process;
• Evaluating the completeness of the iXBRL tagging of the
Consolidated Financial Statements including notes;
• Evaluating the appropriateness of the company's use of
iXBRL elements selected from the ESEF taxonomy and the
Independent Auditor’s Report
To the shareholders of ldavang A/S
• For such internal control as Management determines
necessary to enable the preparation of an annual report
that is compliant with the ESEF Regulation.
Our responsibility is to obtain reasonable assurance
on whether the annual report is prepared, in all
material respects, in compliance with the ESEF
Regulation based on the evidence we have
obtained, and to issue a report that includes our
opinion. The nature, timing and extent of
procedures selected depend on the auditor's
judgement, including the assessment of the risks of
material departures from the requirements set out
in the ESEF Regulation, whether due to fraud or
Esbjerg, 26 April 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
Palle H. Jensen
State Authorised Public Accountant
mne32115
Birgitte Larsen
State Authorised Public Accountant
mne16564
8
Management's
Review
Management's Review
Company Details Financial Highlights
Name
Address, zip code, city
CVR no.
Established
Financial year
Website
Telephone
Board of Directors*
Executive Board*
Shareholders
Ultimate parent company
Auditors
ldavang A/S
Tofthøjvej 41
DK-7321 Gadbjerg
20 95 61 43
1998
1 January - 31 December
www.idavang.com
+45 75 87 64 15
Niels Hermansen, Chairman
Jytte Rosenmaj
Claus Baltersen
Ole Bjerremand Hansen
Carsten Lund Thomsen
Claus Baltersen, CEO
Michael Henriksen, CFO
Jast Holding ApS,
Tofthøjvej 41, DK-7321 Gadbjerg,
100%
Jast Holding ApS, Tofthøjvej 41, DK-7321 Gadbjerg, 100%
Pricewaterhousecoopers
Statsautoriseret Revisionspartnerselskab
Esbjerg Brygge 28,
DK-6700 Esbjerg
Revenue
EBITDA (*)
Profit/loss before net financials (EBIT)
Net financials
Profit/loss for the year
Tangible assets
Biological assets (herd and crop)
Total assets
Equity
Net interesting-bearing debt (NIBD)
Non-current liailities
Current liabilities
Cash flows from operating activities
Investment in property, plant and equipment
Cash flows lrom financing activities
Total cash flows
EBITDA margin
Current ratio
Equity ratio
Return on equity
Sold volume liveweight (kMT)
Return on average invested capital (ROIC)
Average number of full-time employees
Key Fiqures
Financial Ratios
EUR'000,000
(*) Refer to note 3 Segments. Financial ratios are calculated in accordance with the recommendations
of the Danish Finance Society. For terms and definitions, please see the accounting policies in note 1.
(*) See note 23 for further information
2019
110.5
26.9
18.4
−4.8
11.0
96.7
45.0
200.1
67.3
90.1
98.0
34.8
2.7
−9.3
-2.8
-9.7
24%
245%
34%
16%
89
13%
830
2020
101.8
10.5
2.8
-11.2
-7.8
79.5
33.7
146.4
29.9
87.8
83.4
33.1
21.8
-4.6
-6.0
11.6
10%
148%
20%
-26%
92
2%
799
2021
100.2
14.6
7.5
−5.5
2.4
79.4
28.0
146.2
39.7
78.5
77.5
28.9
11.4
−3.9
−11.2
−1.0
15%
181%
27%
6%
92
6%
769
2022
115.2
30.2
22.3
-3.8
15.7
80.9
41.4
158.4
61.7
66.5
63.9
32.7
17.7
-4.4
-15.0
-4.0
26%
188%
39%
26%
92
17%
770
2023
142.3
45.4
11.6
-6.5
0.8
40.3
45.2
121.4
43.6
38.3
58.4
19.4
28.7
-1.9
-18.5
8.4
32%
332%
36%
2%
93
14%
761
10
L A T V I A
E S T O N I A
F I N L A N D
S W E D E N
N O R W A Y
D E N M A R K
G E R M A N Y P O L A N D
B E L A R U S
R U S S I A
L I T H U A N I A
Management's Review
Group Chart
Russian
pig operation
Lithuanian
pig operation
IDAVANG AGRO
LLC
Leningrad Oblast, Russia
IDAVANG
LLC
Pskov Oblast, Russia
UAB
IDAVANG
IDAVANG
A/S
Denmark
Above group chart shows only operational entities. All group enterprises are 100% directly or indirectly owned by Idavang A/S.
Please see Parent Company Note 8 for details.
IDAVANG LUGA
LLC
Leningrad Oblast, Russia
Lithuania
11
Revenue for the ldavang group was EUR 142.3m in 2023 against EUR 115.2m in
2022. EBITDA was EUR 45.4m against EUR 30.2m (at fixed herd prices – see
below in table, it was EUR 38.8m against 2022 of EUR 21.8m), and profit after
tax was EUR 0.8m against EUR 15.7m in 2022.
Production volume is back to normal with 94 MT, hereof 1 MT was increase in
herd in Ostrov. Hence, Russian volume of 38 MT is just 1MT below historical
maximum in 2020. In Lithuania, production was slightly up to 56 MT compared
to 2022 (55 MT).
The Lithuanian EBITDA (FHP) was in 2023 driven to an historical high level (of
28,4 mEUR compared to 14,0 mEUR in 2022), as a consequence of the massive
reduction in European herd, that happened in 2021 and 2022, whereas 2023
development have been almost neutral.
Overall, this led to significant increase in sales price (to 1,76 EUR/kg) for the
whole year compared to 2022 (+30% in Lithuania). Feed average prices were
9% higher than in 2022 (including effect from our matif hedges with EUR 4.9m,
without matif 20% higher), hence earnings per kg produced was historical high.
In Russia, the supply and demand balance seem in balance. Nevertheless,
export of Russian pork to Vietnam continue to increase, and from 2024 China
has also opened for Russia pork, as Russian pork is highly competitive due to
devaluation of RUB during 2023.
Furthermore, the grain price has fallen significantly as Russia needs to export
Management's Review
surplus production to the world market with discount.
Idavang does not expect the government to introduce subsidy programs to
increase production further. As construction prices of new stables are not
justified by cash flow, no significant expansion is expected and with Chinese
export opening outlook are positive (for cash flows in RUB). Therefore,
reasonably sales prices in the following years are expected.
Overall, 2023 led to significant decrease in sales price (to 1,23 EUR/kg) for the
whole year compared to 2022 (-21% in Russia), and a reduction in feed average
prices of -34% compared to 2022. Net effect is that earnings per kg produced
have been on normal level in RUB.
Nevertheless, the expected market returns on investments in Russia have
increased massively in 2023, and combined with Idavang Russia going forward
does not have any debt makes the WACC very high.
Hence, even if Idavang Russia is highly profitable in RUB, there has been made
an impairment write down of 27,2 mEUR. Hence, all buildings in Russia is now
included with 0,2 mEUR, and the net assets (equity) in Russia is now 32,7 mEUR.
Field activities had a below normal harvest in 2023, and combined with lower
prices due to market situation EBITDA was significant below norm 2023
(EBITDA EUR 1.3m), similar to 2022 (EUR 4.4m).
The group invested EUR 1.9m in 2023 (EUR 4,4m), which is significant less than
the depreciation of EUR 6.5m. This is due to investment stop in Russia hence
only minimum investments was made (EUR 0,1m).
The equity on 31st December 2023 amounted to EUR 43.6m at an equity ratio
of 36% (39% 2022), down EUR 18,1m compared to 2022. The change
nevertheless following significant movements being: EUR 21,4m ordinary result
(EUR 7,3m) driven by Lithuania, whereas the Russian impairment negatively
affected with EUR -27,2m (EUR 0,0m), write up of the herd with EUR 6,6m (EUR
8,4m), weaker RUB with EUR -16,0m (EUR 5,6m) and reversal of matif hedging
of EUR -4,8m (EUR 0,6m).
Net interest-bearing debt (NIBD) decreased to EUR 38.3m in 2023, being EUR
28.2m lower than in 2022 (66.5 mEUR). Nevertheless, European NIBD is higher
with EUR 44,9m, as Russia has net deposit. Idavang has almost two years
duration with the EUR 75m bond left, hence having very stable financing.
Our vision is to achieve
and maintain the highest
quality of pigs while strictly
adhering to all ethical and
environmental standards.
Our mission is to be the top
producer of pigs in the
Baltic states and North Western
Russia, renowned for high
quality pigs produced in
accordance with top ethical and
environmental standards.
We strive to be an important
and dependable partner to our
clients, an actively benevolent
member of the surrounding
communities, an employer who
provides an exciting and
appealing workplace
environment while offering
our employees personal and
professional development
opportunities, as well as steady
career possibilities.
Operating profit as per profit and loss
Depreciations and impairment
EBITDA
Value adjustment biological assets (reversed)
EBITDA at fixed herd prices
EUR’000 2023
11,630
33,730
45,360
-6,576
38,784
EBITDA at fixed herd prices reflects that the normal EBITDA has been adjusted for the unrealized
value adjustments related to the biological assets required by IFRS.
2022
22,251
7,992
30,243
-8,430
21,813
12
Sensitivity
EUR '000
EBITDA
Total assets
Liabilities
Net assets
Russia / 2023
13,687
39,690
-6,951
32,739
Russia / Last ECB 2022
10,649
31,092
-5,445
25,647
FX
End period
Average period
Annual Account 2023
91.19
91.81
Last ECB 2022
117.20
117.20
13
used as translation currency. Nevertheless, if other exchange rates would have been used the Idavang
Group annual account could have looked material different if e.g. if average rate EURRUB 2021 was used
(see example below), as group equity then would be negatively impacted with EUR 14,0m compared to
current account.
Therefore, the most critical estimate during the entire annual account process has been selecting the
translation exchange rate EURRUB. Idavang currently can only to a limited extend transfer money out of
Russia being 10-20 mRUB monthly from Russia to Denmark, which have been done in 2024.
Idavang management continues to make efforts to identify and mitigate impacts to the Group, however,
there are factors beyond its knowledge or control, including the duration and severity of warfare, as well
as further governmental, diplomacy actions taken and any effect on the future EURRUB currency relation.
Russia
Russian activities
As of the date of signing this annual report, Russian military forces “special military operation” into
Ukraine has limited direct on Group operations in Russia. The Idavang groups operation in Russia of
cropping 8.2 thousand hectares and production of 340 thousand pigs has significant distance to areas
impacted by the “special military operation”.
Consolidation, recognition and classification of the Russian activities
Idavang Group management continues to be able to operate and control the Russian entity.
Consequently, the activities are fully consolidated.
Examples of the control is gained is by participation of Group management in Russian operational
management meetings, that Idavang executive management is majority on board of Russian subsidiaries
and loyal longterm employees.
Recognition and valuation of Russian assets
The expected market returns on investments in Russia have increased massively in 2023 due to increased
market risks premium. Idavang has therefore assessed the WACC for the Russian entity to 34% including
adjusted risk premium of 22% based on average markets risk in Russia for 2023
Idavang Russia is highly profitable in RUB, with 2024 outlook for EBITDA RUB 1,1-1,4b (page 19), which
management expect to be normalized operation going forward. The normalized and expected
profitability going forward is also the basis for the impairment test.
Due to the above mentioned increased market risks premium, all intangible assets (EUR 140k) and
buildings (EUR 27,079k) in Russia have been impaired. The net assets (equity) in Russia amounts after the
impairment to 32,7 mEUR. Total impairment write down of 27,2 mEUR has been recognized in the
income statement in 2023.
Exchange rates uncertainties
The Russian economy impact on Idavang is high, especially through translation EURRUB currency and
basic profitability of producing pork meat in Russia. Evaluating the current Russian economy is difficult as
lack of exchangeability partly exist for the EURRUB, hence the exchange rates published by the Russian
Central Bank are not validated by the European Central Bank (or other major Central Banks).
Preparing the Idavang 2023 Annual account has exchange rates from the Russian Central Bank been
Management's Review
13
L A T V I A
E S T O N I A
F I N L A N D
S W E D E N
N O R W A Y
D E N M A R K
G E R M A N Y P O L A N D
B E L A R U S
R U S S I A
L I T H U A N I A
Group activitiesRegion / market
Core Activity
Idavang's core activity is the production and sale of high-quality slaughter pigs and
weaners in Russia and Lithuania.
ldavang specialises in both brown field and green field pig production projects in
Lithuania and Russia.
We acquire and invest in larger production sites. We refurbish the facilities and renew
the technology and knowhow with the companies well-developed production solutions.
Production sites are within a reasonable geographic area to enhance synergies.
Key Market Facts
31%
#1
Pig Producer
56k
tonnes/year
Market
Share
Lithuania
9%
#2
Pig Producer
38k
tonnes/year
Market
Share
North Western Russia
Management's Review
14
ldavang A/S started operating the first farm Šalnaičiai (Lithuania) with an initial
investment of EUR 800 thousand.
Rupinskai farm was acquired; in total, 3,000 sows were held.
Mūša, Sajas and Kalvarija farms were acquired, and the production volume exceeded
11 kMT by 2005. ldavang paired off with IØ Fund (Danish Government) in Lithuanian
operations from 2001-2005.
Activities were expanded to Russia as Farm Vostochny (Idavang Agro LLC) was
acquired and reached a total of 6,600 sows the next year.
Skabeikiai, Lekėčiai and Pasodėlė farms were bought, bringing sows in operation up to
19,000.
Construction of Farm ldavang Ostrov, a green field farm, began in Russia and in
Lithuania Joniškis, Šeduva and Šešupė farms were acquired. Furthermore, the
International Finance Corporation (part of World Bank Group) became a ldavang A/S
shareholder.
Russian expansion continued. Farm Ostrov went into operation, and field operations
increased significantly.
Construction of biogas sites in Lithuania in cooperation with Modus Energy and
establishment of contracting in Poland. ldavang Lithuania started to use as a boars
station.
Idavang Group issues re-financing using a EUR 85m bond.
Bond was listed on Nasdaq and construction on Luga site in Russia started.
Luga slaughter pig stables in operation, and Berzai farm was rented in Lithuania to
reduce contracting in Poland.
Refinanced 85 mEUR bond with 75 mEUR bond and reduced share capital with 20% by
acquiring IFC shares.
1999
2002
2006
2010
2011
2013
2014
2018
Historical Development Knowledge Resources
Management's Review
ldavang produces commodities in an international, competitive
environment.
One of the only ways we can secure our position as market leader in
regard to productivity and quality is to retain our employees, develop
their skills and enable them to constantly improve.
2017
2019
2008
2020
15
Grain
Production
Pig
Production
Slaughter
House
Farmlands
Grain
Production
Pig
Production
Slaughter
House
Farmlands
Lithuania Value Chain
Management's Review
Lithuania
Lithuania, our focus is on pig production
within brown field projects, as it utilize our
core competencies and superior efficiency
in pig production.
Sales is made weekly auctioneering of
slaughter pigs for the best possible prices
based on demand and supply in the
Lithuanian and Polish market.
Production, utilize our core competencies
and superior efficiency in pig production.
> Sourcing of feed component is done
predominantly from a limited number of
larger local agricultural companies, to
which we have long relations.
> Manure is sold to local farmers as
fertilizer instead of cultivating the fields,
but Idavang spread most of it on the
farmer’s fields to secure the correct
handling.
Business Model Value Chain
Russia Value Chain
Russia
Russia, our focus has an extended value
chain as it include farmland, grain
production and pig production in both
green field and brown field projects.
Sales is made weekly auctioneering of
slaughter pigs for the best possible prices
based on demand and supply in the
Leningrad and Pskov Oblast market.
Production, utilize our core competencies
and superior efficiency in pig production.
> Grain production on own fields supply
significant part of feed removing
dependency on Russian Farmers. Sourcing
of remaining of feed is done from a
number of medium and larger agriculture
companies predominant in Russia.
> Manure is used on own fields as
fertilizer, but some part is also supplied to
local farmers for their fields as fertilizer.
16
EUR/kg
0.1
0.2
0.3
0
EUR/kg
2023
0.2
0.4
0.6
0.8
1.0
1.2
0
1.4
1.6
EBITDA fixed herd prices reflect that the above EBITDA has been adjusted for the unrealized value adjustment related to biological
assets.
The EBITDA fixed herd price for 2023 amounted to 28,413 kEUR, corresponding to an EBITDA margin of 29.2% (2022: 14,041 kEUR
and EBITDA margin 19.2 %). Hence, the EBITDA fixed herd price increased compared to 2022 of EUR 14,4m.
The sales price increased 30 % compared to 2022 to an average 1,76 EUR per kilo slaughter pigs’ live weight in 2023 (2022: 1,35
EUR per kilo live weight slaughter pigs) with an effect of EUR 22,0m, whereas higher feed prices impact negative (with EUR 3.9m).
Cost per kg. (excluding feed) increased 0,4% compared to 2023.
Idavang Lithuania did during 2022 receive one-off subsidies to support meat production in difficult times of 5,1 mEUR, which
impact negative when comparing 2023 to 2022.
Management's Review
Business Review 2023
Development in Segments
Live weight sales price
Feed price
Lithuania
accounted for
68%
of Group revenue
in FY2023
(63% in FY2022).
Lithuania
EUR’000 FY2023
Lithuania
Lithuania
97,250
4,100
-71,348
-2,064
1,992
0
29,930
204
-2,018
28,116
-4,057
24,059
2,583
32,513
28,413
Revenue
Value adjustment, biological assets
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Profit for the year
Depreciations included in production cost
EBITDA
EBITDA fixed herd prices (excl. value adjustment)
FY2022
72963
8176
−66526
−2124
7167
0
19656
249
−1295
18610
−2593
16017
2561
22217
14041
2022
Q1 Q2 Q3 Q4
0.24
0.28
0.32
0.30
2022
Q1 Q2 Q3 Q4
1.01
1.38
1.51
1.48
1.65
1.88
1.84
1.65
Q1 Q2 Q3 Q4
2023
Q1 Q2 Q3 Q4
0.31
0.30
0.320.32
17
2023
EUR/kg
Q1 Q2 Q4
0.1
0.2
0.3
0
0.26
Q3
EUR/kg
0.2
0.4
0.6
0.8
1.0
1.2
0
1.4
1.6
2023
Management's Review
Business Review 2023
Development in Segments
Live weight sales price
Feed price
Russia
accounted for
32%
of Group revenue
in FY2023
(37% in FY2022).
Russia
EUR’000
Russia
Russia
EBITDA fixed herd prices reflect that the above EBITDA has been adjus-ted for the unrealized value adjustment related to biological
assets.
The EBITDA fixed herd price for 2022 amounted to 11,351 kEUR, corresponding to an EBITDA margin of 25.2% (2022: 8,458 kEUR and
EBITDA margin 20.0 %). The EBITDA fixed herd price increased compared to 2022 of EUR 2,9m is primarily driven by increased
volume due to production in Ostrov.
The sales price decreased 21 % compared to 2023 to an average 1,23 EUR per kilo slaughter pigs’ live weight in 2022 (2022: 1,56
EUR/kg) with a negative effect of EUR 11,4m, whereas lower feed prices impact positive (with EUR 11.9m), and higher volumes
positive (EUR 3,9 m).
Impairment of Russian operation. Idavang has in 2023 impaired our Russian operations with EUR 27,2m, this impairment is done
due to increased WACC requirement in the Russia market, which is historical high. Idavang Russia is still generating a normal cash
flow in RUB. Effect on Russian balance is that all intangible assets are written down 100% and buildings in tangible assets down 99%.
FY2023
45,066
2,476
-63,970
-1,281
389
0
-17,320
701
-685
-17,304
-96
-17,400
31,147
13,827
11,351
Revenue
Value adjustment, biological assets
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Profit for the year
Depreciations included in production cost
EBITDA
EBITDA fixed herd prices (excl. value adjustment)
2022
2022
FY2022
42256
254
−38195
−1446
412
0
3281
4590
−3268
4603
−85
4518
5431
8712
8458
1.19
Q1 Q2 Q3 Q4
1.42
1.86
1.66
Q1 Q2 Q4
0.34
0.26
Q3
0.39
0.32
1.27
1.24
1.23
1.20
Q1 Q2 Q3 Q4
0.24
0.19
0.20
18
Product mix
2016 2017 2018 2019
0
Slaughterpigs LT Slaughterpigs RU 30 kg LT 30 kg RU Sows
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
Management's Review
Revenue
Revenue increased from EUR 115.2m to EUR 142.3m (24%). The change comprises of higher prices EUR
11,7m and an increase of EUR 15.4m due to higher volume. The higher volume mainly due to Ostrov back
in production.
Herd value adjustment
In 2023, the fair value adjustment for herd is driven by the increasing prices in EU and comprised EUR
+6.6m. Therefore, the adjustment mainly consists in increase in Lithuania with EUR +4.1m.
Production cost
Production costs increased by EUR 30.6m to EUR 135.3m from 104.7m (29.2%), but when excluding the
impairment relating to Russia (EUR 27,2m) has been reversed the increase is EUR 3,4m.
The increase was mainly due to the following four factors:
• Feed cost impacted production cost with EUR -0.1m (a decrease compared to 2022 equals +0.1%, of
which volume is +10.4% and price -9.4%)
• RU General lower cost level (excluding energy and feed) EUR 1,4m, this is driven by weaker RUB
(25% / EUR 3,6m) as increased activity due to volume is reducing this.
• LT General higher cost level EUR 1,7m and excluding for one-off effect in 2022 it equals 9% and is
mainly inflations driven
• Decreases in energy was with 28% (EUR -1,4 m).
• Field impacted negative (partly due to lower prices) with EUR -3.0m
• The change in herd compared to 2023 is EUR -2.6m (EUR 1.4 m in 2023 vs. EUR 4.0 m in 2022), this is
driven by repopulation of the Ostrov herd was mainly done in 2022.
Slaughter pigs Lithuania - Price / Kg live weight
Weaners Lithuania - Price / Unit
Slaughter pigs Russia - Price / Kg live weight
Weaners Russia - Price / Unit
Sales prices in EUR / Averages
2020
1.13
87
1.10
45
Grant
The government level of direct subsidies for meat and grain (excluding interest
subsidies) is significantly lower in 2023 (EUR 0.2m) due to no support for meat
producers in Lithuania (EUR 5,1m in 2022) compared to 2022 (EUR 5.3m).
Furthermore, the harvest result includes grants of EUR 0.3m, similar to 2022
(EUR 0.4m).
2020
2021
0.99
-
1.28
-
2021
2022
1.35
-
1.56
-
2022 2023
2023
1.76
-
1.23
-
19
Outlook 2024
The company expects an EBITDA at fixed herd prices for 2024 around EUR 30-37m.
• Lithuanian EBITDA (at fixed herd prices) is expected to be between EUR 20-24m
• Russia EBITDA (at fixed herd prices) is expected to be between RUB 1,1-1,4b
Meat prices
Sales price is lower than in 2023, driven by small decrease in Lithuania.
• Lithuanian sales price is expected to decrease with 3-10% from 2023 level of 1,76 EUR/kg
• Russian sales price is expected to be stable/increase 0-5% from 2023 level of 113 RUB/kg
Feed price
Feed price is expected to be lower than in 2023 (primarily due to weaker RUB),
and a potentially further weaker RUB could decrease additionally.
• Lithuanian feed price is expected to increase with 4-7% from end 2023 level of 0,313 EUR/kg
• Russian feed price is expected to be stable from end 2023 level of 20,11 RUB/kg
EURRUB exchange rate
Management expects the EURRUB to continuously become higher during the year, and is
expect the 2024 average of the EURRUB to be in the high end of the range 90-110 (average
in 2023 was 92 with a monthly average range of 75-103).
Management's Review
Follow-up on 2023 outlook
TThe EBITDA fixed herd price 2023 (EUR 38.8m) was higher than expected
(EBITDA EUR 23-25m), this primarily due strong sales prices in Lithuania.
· Lithuanian EBITDA was historical high with EUR 28,4m (at fixed herd prices)
compared to expected to be between EUR 10-14m, this was due to extraordinary
high sales prices (+30% up from 2022) with an effect of EUR 22,0m
· Russia EBITDA (at fixed herd prices) was lower than expected (RUB 1,2-1,3b) with
RUB 1,0b due to field result RUB 0,1b below expectations and slightly slower
ramp-up
Meat prices
EU/Lithuania average prices for 2023 were with 30% above 2022 higher than
maximum in expectation range (EUR 1,55-1,69/kg) and contribute to surpassing
overall expectation.
Russian average prices for 2023 were as expected 5% (expected 0-5%) above
2022 expected with 113 RUB/kg, hence fulfills the management expectations.
Feed price
Feed price was as expected higher than in 2022 (in local currency), and ended
lower due to a RUB devaluation with 0,275 EUR (in 2023) compared to 0,304 EUR
· Lithuanian feed average prices were 9% higher than in 2022, within expectations
of 5-10% above 2022 level.
· Russian feed average prices were 20 RUB/kg, as expected stable from 20 RUB/kg
in 2022.
EURRUB exchange rate
EURRUB average in 2023 was 92 (slightly above expectation of in the high end of
the range 75-90) with a monthly average range of 75-103).
20
Management's Review
Niels Hermansen
CHAIRMAN
1953
Male
Danish
2013
Yes
Member
0
0
Name
Role
Born
Gender
Nationality
First elected
Employed since
Independent
Audit Committee
Securities 31.12.2020
1)
JAST Holding
Chairman
Member
Jytte Rosenmaj
BOARD MEMBER
1964
Female
Danish
1999
No
Chairman
0
0
Ole Bjerremand Hansen
BOARD MEMBER
1960
Male
Danish
1999
No
Member
0
2)
125,000
Carsten Lund Thomsen
BOARD MEMBER
1967
Male
Danish
1999
No
Member
0
83,332
Claus Baltersen
CEO & BOARD MEMBER
1971
Male
Danish
2017
1998
No
0
41,668
Michael Henriksen
CFO
1974
Male
Danish
2009
0
0
Directorships
Board Of Directors Executive Board
1) JAST Holding A/S is Idavang A/S's sole shareholder with 100%, and the company has issued 800,000 shares in total.
Jast Holding Aps,
Cerca A/S,
Meta Mariehjemmet,
Premium Pork International A/S,
Danish Pig Genetics P/S,
Komplementarselskabet
Danish Pig Genetics Aps,
CubAgro Holding Aps,
DCH International A/S
Stjerneskansen Holding Aps,
Vissing Holding A/S,
Vissing Fonden
Jast Holding Aps,
Tofthøj Agro Aps
Fredericia Furniture A/S,
Vikan A/S
Tofthøj Agro Aps,
Agreena Aps
Slovakian Farm Invest A/S,
Akset A/S
Jast Holding Aps
Jast Holding Aps
2) Include all shares controlled
Management
21
The Russian economy is particularly sensitive to oil
and gas prices.
Considering the sensitivity of the economy to oil
and gas prices, the economic situation in the future
is difficult to predict, as the country’s ability both to
produce and to sell its oil and gas is expected to be
negatively impacted by both current and future
sanctions from Western countries.
Furthermore, Russia has allocated massive part of
Russian budget towards military (e.g., special
military operation in Ukraine), which negatively
impact both now and in the future wealth in Russia.
Hence, both purchase power and inflation levels
(2023 7.4 % and 2022 11.8 %) are expected to be
further negative impacted.
Conclusion, on emerging market risk, is that it is
increasing in the Russian economy, and impacting
Russian both consumers' purchase power and
inflation negative.
Emerging market risk is
increasing in Russia
Political tension and international sanctions
against Russian interest have increased
continuously after “special military operation”
into Ukraine started in February 2022,
negatively impacting the Russian economy.
It is expected that full impact of current
sanctions, have not been seen. Hence, the total
negative impact by current and future sanctions
from Western countries on Russian economy is
difficult to quantify currently.
The Russian legal, tax and regulatory
frameworks continue to develop in a fast pace
towards countries behind sanctions (“unfriendly
countries”) with frequent negative changes.
Conclusion, on legal environment (in both
Russia and international) is that it may
potentially have a negative impact on Idavang's
operations in Russia and the financial position
in the future.
Russian international political risk
and Russian legislation risk
As pork is a global commodity. global supply
and demand influences prices in all markets to a
higher or lower degree, ldavang mitigates this
by focusing on markets where there is an
undersupply of pork.
Thereby, we compete with producers in other
markets. which need to transport the pork to
North Western Russia or Lithuania.
Fluctuations in prices of pork
Current Risks (I)
Management's Review
Pigs are fed by grain, protein (e.g. soya and
sunflower) and premixes (vitamin and minerals),
which account for a significant part of
production costs.
An increase in these prices, together with an
inability to transfer such increased costs to
slaughterhouses, may have a material adverse
effect on ldavang's profit. Over time, such an
imbalance will lead to inefficient producers and
closed productions; hence supply will be
reduced, which will increase prices again.
ldavang mitigates this exposure by being a cost-
efficient producer with high productivity and
operations in markets with natural premiums.
Fluctuations in prices
of raw materials
The Board of Directors and Executive Board of Idavang are taking these issues into account in the
ongoing strategic review of Idavang's Russia business. When evaluating the different strategic
options for the future of Idavang's Russian business, including a potential sale of the business.
(Company Announcement No. 19/2023)
No conclusion of the process has been reached, at the date of signing the annual account.
22
During 2023, the RUB has fluctuated within a
range of 27% against the EUR.
As a result, the total effect for 2023 was an 31%
devaluation EUR/RUB, which negatively affected
equity by EUR 14.0m, as all Russian tangible
assets are measured in RUB.
Financial risks
An outbreak of a serious disease could
potentially cause a loss of earnings from the
relevant farm for a period during which a
replacement herd would be put into operation.
Production management places high focus on
the risk, and the highest biosecurity measures
are taken. Furthermore, the herd is insured for
all diseases to mitigate the risk to the highest
possible degree.
Diseases
An economic downturn or an uncertain
economic outlook in the Russian economy could
adversely affect consumers‘ meat and pork
consumption habits.
Similarly, a global economic downturn or an
uncertain economic outlook in the world
economy could adversely affect global
consumers‘ meat and pork consumption habits.
With pork being a global commodity, the
individual regions as EU or Russia will also be
effect, but the effects might be lower as regional
markets have own fluctuations.
Russian, EU and global
economic conditions
The concentration of production facilities in
North Western Russia and Lithuania means that
ldavang's operations are dependent on the
degree to which raw materials can be imported
and the possibility of exporting from Lithuania
to EU and especially Russia (if it opens up
borders) ensures the best prices for Lithuanian
live pigs.
Two areas can disrupt this export possibility: the
political situation and outbreaks of diseases.
Currently, Russian borders are closed for all
imports of live commercial pigs and for chilled
and frozen meat from a number of countries
due to veterinarian and/or political reasons
(embargo).
Polish borders are closed for all imports of live
commercial pigs from ASF Zone 2+3 in
Lithuania, whereas pork meat from ASF Zone 2
can be sold in Poland, chilled and frozen.
Concentration of production
facilities in North Western Russia
and Lithuania
Current Risks (II)
Management's Review
23
Sustainability Agenda
Part of the Management Review
sustainability topics structured in following 4 groups:
Governance, Economic, Social, Environmental.
General ESG risk assessment
Idavang has conducted a materiality assessment and
established a materiality matrix based on insights
gathered during processes with operational and group
management. The identified topics represents areas
where Idavang has a impact on stakeholders and the UN
Sustainable Development Goals.
At Idavang, we are addressing our
obligation to contribute to a
sustainable future with a genuine
sense of humility and responsibility
that we present to you our
sustainability agenda.
In the complex tapestry of the European Union's
agricultural sector, we at Idavang have always considered
ourselves more than just a business; we are part of a
community, a collective endeavour that feeds millions,
sustains livelihoods, and upholds the standards that
define our industry.
Our mission, deeply entrenched in every aspect of our
operation, is not just to meet the current needs but to
anticipate and shape the future. The sustainability
agenda we share today is a testament to this
commitment, laying bare our challenges, triumphs, and
lessons learned.
Corporate Social Responsibility
Our CSR policy will be described on the following pages
with all key topics, that are relevant for our business with
special focus on climate change, occupational health and
safety, animal welfare and biosecurity.
Our CSR policy is based on the company focuses on the
following five values:
Our Sustainability Agenda
• Respect & Trust
Each employee and partner is very important to us, and
we treat them with fairness and respect, expecting the
same from them in return.
• Quality & Ethics
We only produce quality products.
• Transparency
We always act in a legal and proper, as well as
transparent and fair manner.
• Environmental Responsibility
We use the state-of-the-art technology and adhere to
the principles of corporate social responsibility.
• Constant Development
We are open to change and innovation and feel
responsibility for the personal and professional growth
of our employees.
The ldavang Group is constantly working on
safeguarding these values throughout our organization.
Historically, the ldavang group has always focused on
CSR. Consequently, ldavang has had grouphoused sows
and used partly slatted floors since its establishment in
1999.
Listening to our stakeholders
Idavang has conducted a materiality assessment based
on Global Reporting Initiative principles of relevant
Materiality Matrix
IMPORTANCE TO
LONG TERM SUCCESS
IMPORTANCE
TO STAKEHOLDERS
Moderate High Critical
Mod.
High
Crit.
EMPLOYEE WELFARE
TAXES
WASTE
MANAGEMENT
BIODIVERSITY
ECONOMIC
INCLUSION
WATER STEWARDSHIP
TECHNOLOGY
INNOVATION
COMPLIANCE
(REGULATIONS &
CERTIFICATIONS)
ODOUR
ANIMAL WELFARE
LOCAL COMMUNITIES
TRANSPARENCY OF
SUPPLY CHAIN
HUMAN CAPITAL
DEVELOPMENT
ENERGY EFFICIENCY
BIOSECURITY
GHG EMISSIONS
GOVERNANCE ECONOMIC SOCIAL ENVIRONMENTAL
RISK
MANAGEMENT
ETHICS / REPUTATION
COMPLIANCE
POLLUTION
EQUALITY
QUALITY
VALUE CREATION FOR
SHAREHOLDERS
OCCUPATIONAL HEALTH & SAFETY
HUMAN RIGHTS
25
Reporting Standards
sections 99a and 99b.
Idavang reporting in compliance with section 99a of the Danish Financial Statements Act
Idavang reporting in compliance with section 99b of the Danish Financial Statements Act
The disclosures in this Annual Report comply with the Danish Financial Statements Act,
can be found on the following pages of this report:
can be found on the following pages of this report:
• Business model can be seen on page 16
• General ESG risk assessment: page 25
• Risk, policies and activities regarding environment and climate change: pages 27-33
• Risk, policies and activities regarding employee conditions: page 33
• Risk, policies and activities regarding human rights: page 34
• Risk, policies and activities regarding anti-corruption: page 35
• Gender target for the Board of Directors and activities for improving the gender balance: page 38
Our Sustainability Agenda
26
We constantly strive to take care of the environment in
all everyday actions, and we acknowledge the need to
take care of natural resources to the benefit of future
generations. Our focus is to reduce any negative impact
that our production may have on the environment.
GHG emissions here we are currently working on
developing policy. Nevertheless, we are already involved
in a number of activities reducing emission being biogas
production, optimizing use of manure. Our aim to reduce
GHG.
Climate change impact feed cost, due to weather (e.g.
drought) conditions globally, but over time limited on
earnings as all pork combined are exposed to same
conditions, see Risk section page 22.
Environment & Climate Change
We do not have full ownership of the entire value chain.
The materiality matrix identified 4 areas with
environmental issues where Idavang impact: Pollution/
Slurry management, Energy efficiency, GHG emissions,
and Biosecurity.
Of these 4 areas we have objectives for 3 areas, which
illustrate status and progress. Risk, policies and activities
regarding these topics will be reviewed in this section.
Environmental matters are an
integrated part of ldavang's mission
and we make no compromises.
Resource Efficiency
Electricity intensity
Electricity from Modus Biogas
FCR (Feed conversion ratio)
Slurry utilization
Slurry utilization
Animal Health & Welfare
SPF (Specific Pathogen Free) status
Reduce Negative Impacts
Lagoon breaches
Measure unit
KWh / 1 kg produced
Percent of total energy
kg of feed / 1 kg produced
Sales to farmers, kEUR
Tons of external manure
Confirmed YES / NO
Number of cases
Entity
GROUP
LT
GROUP
LT
RU
GROUP
GROUP
15 vs 23
-16%
6%
-6%
-
21,727
/
n/a
/
n/a
Goal'28
0.27
>100%
2.80
>1,672
>15,000
/
YES
/
0
Goal'23
0.30
>100%
2.80
>1,424
>15,000
/
YES
/
0
2023
0.30
104%
2.79
1,406
21,727
/
YES
/
0
2022
0.32
170%
2.83
1,443
23,269
/
YES
/
0
2015
0.35
98%
2.97
0
0
/
YES
/
0
Overview
27
The manure management process at the company
involves several steps to ensure efficient handling and
environmental sustainability.
The company focuses on seeing the manure as a valuable
fertilizer which, however, it has a specific odor. Putting
the fertilizer to efficient use and causing no
inconveniences to our neighbors, we carry out careful
maintenance and continuous improvements of the
manure collection, storage and fertilization systems.
Our complexes in Lithuania and Russia have successfully
functioning manure management equipment that
separates the liquid and solid faction of manure and
removes excess phosphorus and ammonia.
Furthermore, is there closed Lagoons/tanks on every
farm with top and double liners to prevent the emission
of ammonia, nitrogen (greenhouse gas). Closed
lagoons/tanks also ensure that no odor will be released
into the air.
Materiality
Historical Idavang system for handling our manure
management process have been working efficiently.
Nevertheless, it was in Idavang materiality assessment
classified as both Critical and Material. This is in case of a
leakage could be substantial negative to the environment
(and local community) as volumes in Lagoons/tanks are
large. Hence, impact on nature and biodiversity would be
Policy
Pollution and Slurry Management requirement around
pork production is highly regulated, and Idavang policy is
to follow all local and regional regulations.
Key risk/targets identified
Focus 1
Environmental risk is potential leakage of manure from
lagoons or other action that leads to leakage. Aim, no
leakage from lagoons.
Focus 2
The environmental target is optimizing use of manure.
Aim, reducing the amount of mineral fertilizer by
supplying organic fertilizer (manure) to farmers on the
optimal time.
Actions
Action on focus 1
Environmental risk, Due diligence process is in place,
where all lagoons are periodic reviewed by internal
maintenance crews, with intervals below 12 months.
In case of issues during the periodic review, the necessary
actions are taken to maintain the Lagoon, so that all
regulations are followed and no risk of leakage exist.
significant negative. Financial for Idavang there would be
fines, task of cleaning and potential reputation damage.
Nevertheless, it is unlikely that it would have material
effect on sales prices even considering the reputational
effect as slaughter pigs are commodities.
The assets would take limited damage, hence financially
cleaning up and restoring biodiversity, would be the
main task. Nevertheless, depending on the farm size that
could also impact with amounts in mio. EUR.
Practical are lagoons constantly being supervised, which
is why a leak extremely unlikely would be full lagoon.
The evaluation of our slurry storage and spreading, here
we know odor is important for local communities.
Nevertheless, optimizing the use of slurry for organic
fertilizer also includes removing smell (e.g. via biogas) to
increase value of the fertilizer.
Hence, it gets low classification in our materiality due to
low odor and very low level of complains from local
communities.
Illustrating the special situation relating to on Russia our
best in class methods have significant positive effect on
the environment (no pollution) and local communities
(less odor) compared to average Russian pork producer
as our handling slurry in Russia also comply with EU
rules.
Environment & Climate Change
Pollution & Slurry Management
28
mineral fertilizer, with organic fertilizer.
In Russia we have for years utilized our slurry, but have
realized that not all animal producers do that.
Therefore, have we been buying manure from Chicken
farmers from external as well to replace mineral fertilizer.
Focus 2 / KPI 2:
Price paid for organic fertilizer as we assume it equals
mineral fertilizer volume reduced. Revenue in 2023 was
EUR 1.406k/m3 (2022 - EUR 1.443k/ m3). Expectations for
2024 are EUR 1.183k due to lower prices for mineral
fertilizer. Target for 2028 equals cost for handling, and is
expected reached, as Idavang expect fertilizer (energy
cost) to increase over time.
Focus 2 / KPI 3:
In Russia we expect same level of external fertilizer in
2024, which is maximum we can substitute and above
target.
During 2023 maintenance and CAPEX in lagoons where
396 kEUR. Furthermore, during an internal review was it
concluded that the Lagoon at Salnaiciai farm need an
overhaul, which is planned for 2024 with estimated cost
of 385 kEUR.
Action on focus 2
Actions to support optimizing slurry in Lithuania does
involve working with farmers as they are our customers.
The farmers have argued change in equipment would
improve value for them, hence a new pioneer equipment
(larger) have been taken into use in 2023 (cost 1,0
mEUR), as part of new strategy to increase volume and
improve coordination with farmers (as larger equipment
are requested), so that the organic fertilizer has the
highest effect hence replacing the maximum volume of
Environment & Climate Change
Pollution & Slurry Management
KPI’s
Focus 1 / KPI 1:
Environmental risk, Idavang have had 0 leakage from
lagoons during 2023 and 0 significant fines and do not
expect any leakage in 2024.
Slurry utilization
Slurry utilization
Reduce Negative Impacts
Lagoon breaches
Sales to farmers, kEUR
Tons of external manure
LT
RU
GROUP
-
21,727
n/a
>1,672
>15,000
/
0
>1,424
>15,000
0
1,406
21,727
0
1,443
23,269
/
0
0
0
/
0
Resource Efficiency Measure unit Entity 15 vs 23Goal'28Goal'23202320222015
Number of cases
29
Resource Efficiency
Electricity intensity
Electricity from Modus Biogas
Measure unit
KWh / 1 kg produced
Percent of total energy
Entity
GROUP
LT
15 vs 23
-16%
6%
Goal'28
0.27
>100%
Goal'23
0.30
>100%
2023
0.30
104%
2022
0.32
170%
2015
0.35
98%
with methane gas. Investment in conversion is budgeted
in double digit mEUR and expected done over next 18
months so that energy production with biogas is
maintained the next decade instead of closed down.
KPI’s
Focus 1:
Reduce energy consumed per kg produced, as gross
energy consumption not illustrate efficiency. Since 2015
we have reduced energy with 16% per kg produced.
In 2023 the increased usage of LED was main reason for
reduced in KwH per kg meat produced.
Focus 2:
Optimize energy from slurry, measured in kwh in % of
own consumption.
SIn 2023 a solution was created, so that Biogas plants
will not have to be closed.
When production will be methane gas, then we will
convert methane gas into kwh to illustrate efficiency.
Focus on energy in our business relates not only to our
production facility. Biogas, where we use our efforts
together with a business partner (Modus Energy) we
have established biogas plants with the aim to improve
environmental targets. (our ownership is 17,5%,).
Risk
Commodity production price is essential, hence too
much consumption of energy makes the business less
sustainable financial.
Policy
Reducing energy consumption in own processes and in
our partners if possible, and utilizing gas in manure
though biogas processes.
Key targets identified
Focus 1
Reduce energy continuously, with all cost-efficient
measures and best available technology.
Focus 2
Optimize synergy on energy with slurry in biogas
Environment & Climate Change
Energy Efficiency
Actions
Action on focus 1
During the last two years, focus on reduce of we have
been adopting advanced monitoring systems, motion-
sensing lighting solutions, and transitioning to energy-
saving LED lighting.
Furthermore, solar panels on the roofs of our facilities
produced 1,647 MWh of electricity (owned by our
energy supplier), which was supplied to the national
grid, reflecting our holistic approach to sustainability
and energy self-sufficiency (together with suppliers).
Action on focus 2
In 2016 we managed to become net supplier of
energy, and did produce 70% more kwh then we used in
Lithuania and Russia combined.
The energy production is nevertheless less attractive
now, hence our partner and us are transition away from
electricity to methane gas production in bio reactors,
which will reduce electricity generation but replace it
30
UV lamps are used for sanitization of surfaces and all
items brought into the farm.
Food: Here we enforce strict cafeteria protocols:
• External food and beverages are not permitted on the
premises. Dining is confined to the cafeteria, where food
must not be taken out.
• Dishes containing pork or wild boar are prohibited for
food suppliers. Separate dining zones are designated for
internal and external staff, with no intermingling.
• All contractors, including food servers are subject to
rigorous health checks and hygiene practices.
• The cafeteria is regularly cleaned, with UV disinfection
and pest control measures in place.
BRINGING GOODS TO THE FARM
Quarantine Room Requirement: All departments must
have a quarantine room equipped with a UV disinfection
system.
Clean Goods Only in Quarantine: Only clean goods are
allowed in quarantine. If necessary, they should be
washed or cleaned beforehand.
Packaging Handling: Goods packaged in multiple layers
are unpacked from their outer packaging before being
placed in quarantine.
Avoiding African Swine Fever (ASF) is
critical because it is a highly
contagious viral disease that affects
domestic and wild pigs with a
mortality rate that can reach 100%,
nevertheless other critical diseases can
also have serious adverse effects.
Hence, again in 2023 did management multiple times
towards farm management emphasize importance of the
following measures, as critical disease does not only
threaten animal health and welfare but also has severe
socioeconomic impacts.
Policy
Implement best practice biosecurity available in all areas.
Key risk/targets identified
Avoiding African Swine Fever (ASF) and other critical
diseases
Actions
Biosecurity and hygiene are paramount and each farm
maintains strict protocols for territory access and
cleanliness to prevent contamination.
Environment & Climate Change
Biosecurity
Following are only key measures split into: basic, bring to
the farm and moving animals:
BASIC
Fencing: Different fences (two or three layers around
each farm) are used, including ones to deter wildlife.
Perimeter control cameras cover our operation cites.
Regular Maintenance: Herbicide treatments are applied
regularly around structures and fences.
Grounds Management: Building surrounds are covered
with crushed stone or concrete for cleanliness.
Security: Trash is regularly removed, gates are
immediately closed post-use, and fruit tree growth is
controlled.
Vehicle and Visitor Protocols: Vehicles undergo
disinfection and registration, and there are specific
parking rules. Visitors and employees must change
footwear and sanitize hands upon entry.
Waste Management: Waste is disposed of in containers
outside the main gate.
Access Control: Entry to sensitive areas requires a 48-
hour period of no contact with other pigs and thorough
disinfection.
Personal Hygiene: Strict showering, clothing, footwear
protocols enforced including use of disinfectants.
31
Special Equipment for Pig Herding: Use of special
boards for herding pigs.
Dress Code for Operators: Operators in the shipment
container wear special red overalls and designated shoes.
Cleaning and Disinfection Post-Loading: After loading
pigs, the ramp, trailer, shipment container, and used
equipment are immediately washed and disinfected.
Truck Driver's Footwear: Drivers wear farm-provided
rubber boots stored in a special storage near the
container.
Green Trailer Usage: A green trailer is used for
transporting pigs from the ramp to the transshipment
container.
KPI’s
SPF status on herd (no critical disease) is seen as the best
proxy for high biosecurity level.
Hence, having this status on all farms is the KPI.
Quarantine and Disinfection Protocol: Items destined
for pig holding areas must be quarantined for 48 hours
and disinfected with cold smoke in the quarantine room.
Disinfectant Mats: Two disinfectant mats are installed in
the quarantine room, one at the door leading outside
and another at the door to the pig holding areas.
UV Lamps in Quarantine Room: The room is equipped
with UV lamps for disinfection.
Operational Schedule: Goods are brought into
quarantine from Monday to Friday. The outside door is
locked over the weekend, and all goods are transferred
inside the farm on Monday. A visible schedule for goods
delivery and removal from quarantine is maintained.
MOVING ANIMALS
This list highlights the comprehensive biosecurity and
operational protocols in place for the loading of pigs at
Idavang:
Internal transport is used for transportation of pigs
between our farms. Internal transport does not transport
Environment & Climate Change
Biosecurity
pigs to slaughterhouses nor to external farms managed
by other companies.
External supplier of transportation (In case we needed)
quarantine for vehicles is applied
Trucks that have not transported pigs to a
slaughterhouse for at least 24 hours are used for
transporting piglets to different farms.
Location of Loading Areas: Pig loading areas are set up
at the entrance to the company premises. Pigs from
barns to loading areas are transported stricktly by
internal transport.
Cleanliness and Documentation: Trucks must be clean
and free from prohibited cargo, with documentation
confirming disinfection.
Disinfection Measures: Additional disinfection of the
trailer's end using a mobile sprayer when positioned
against the container.
Inspection and Documentation: Employees inspect
arriving trucks and complete an inspection report.
Animal Health & Welfare
SPF (Specific Pathogen Free) status
Measure unit
Confirmed YES / NO
Entity
GROUP
15 vs 23
n/a
Goal'28
YES
Goal'23
YES
2023
YES
2022
YES
2015
YES
32
Our employees are our company.
Our stable core workforce supports our strong and
cohesive company culture, fostering an environment
where employees feel a sense of belonging and
commitment.
The retention rate for our long-term employees is
therefore critical for our long-term success, and our
employees health is critical to secure that retention
rate is high.
Health and Safety Policy
The main purpose of the OHS system is to protect
employees' life and health and to ensure good working
conditions by avoiding injuries and accidents.
The OHS tasks are structured in seven main tasks:
1. Strengthen and develop health and safety systems by
forming socially responsible approach to the employees'
health and safety
2. Perform occupational risk assessment of all workplaces
• Comprehensive training was provided to all staff, above
4,000 hours (in Lithuania it was even above average 1 full
day per employee).
• Extensive equipment inspections, covering more than
1.000 units to ensure they met safety and operational
standards, reflecting Idavang's dedication to maintaining a
secure and efficient work environment
• Accidents were recorded and investigated in the effort to
minimize the occurrence of similar event in the future.
KPI
In Russia OHS: was stable, but still one accident (0,3 OHS:
TRIR) above current target. Nevertheless, significantly
better than base year 2015.
Lithuania have been struggling with more accidents than
expected, and 2023 increase to very unacceptable high
level of 3,3 where the biggest number of accidents
related to work with animals has resulted in new action
for 2024 being that all instructions and trainings manuals
will be reviewed and updated (especially on how to
approach pigs etc.)
Employee Conditions
3. Improve the system of training certification and
instruction of employees on issues of the employee’s safety
and health
4. Increase preventive efficiency of employees’ health care
5. Increase fire safety
6. Improve safety of employees performing dangerous work
7. Providing safe, healthy work conditions for all employees
Risk
OHS: TRIR being work accidents per 200.000 hours
worked
Actions
In the agricultural sector, TRIR often surpasses that of
many other industries, which is attributed to the intrinsic
hazards of farming work. Hence, Idavang continuously
work on making actions to reduce accident level.
Following are some of the actions taken during 2023:
Human Capital
OHS: TRIR
OHS: TRIR
Employee conditions KPI's
accidents per 200.000 hours worked
accidents per 200.000 hours worked
Entity
LT
RU
15 vs 23
-29%
124%
Goal'28
0
0
Goal'23
1.5
1.5
2023
1.8
3.3
2022
1.8
2.5
2015
2.5
1.5
33
Targets identified
We care about human rights;
hence we do not tolerate
discrimination.
Neither do we tolerate violence
physical nor psychological against
employees or management.
Policy
Idavang want to be attractive place to work, hence offer
competitive position standard salary (objective
qualifications of employees) and have detailed work rules
regulating work conduct so that conflicts are avoided.
Part of these is alcohol policy.
Key risk
Physical violence against employees or management,
which will make employees or management leave and
make recruitment difficult.
Salary level is not attractive or same position have
different salaries (depending on gender), creating the
risk that employees leave their position.
Other areas of human rights
Policy
Idavang want to work with responsible suppliers.
Actions
Visits/reviews at suppliers have mandatory part, being
inspections of suppliers' facilities to verify that suppliers
work practice is ethical, work safety rules implemented
and applicable labour laws are followed.
The audits and inspections should be structure regular
and have short written reports.
These actions will also be folllowed the coming years.
Human Rights
Actions
All new employees are as part of intro process tested in
knowlegde and acceptance of the work rules (including
alcohol policy).
Employees (both Lithuania and Russia) are randomly
tested (average 1 out of 4 working day).
Alcohol test rules
Up to 0,2 is allowed to work (exception drivers 0,0).
Between 0,2-0,4 in two test suspended and sent home.
Above 0,4 in two test person is fired.
During 2023 we have started to implement Alcohol test
in trucks, so they cannot start if above 0,0
Salaries attractiveness are annually compared with
industry companies within country and region.
During 2023 these comparisons where made and salaries
adjusted accordingly, so that Idavang salaries above
average and all are equally paid if same qualification.
34
Actions
Actions on Focus 1, large gifts are not accepted, and
small gifts (especially around Christmas) are mainly
consumed at work.
Actions on Focus 2, purchasing step is split on two/tree
persons and always involves approval of CEO in selection
of buyer and acceptance of price. Furthermore, a
minimum of 3 offers are always received. Receiving
goods always involves weight on our scales and control
of our analyzing equipment. Receiving person is not
known in advance. In 2023 CCO (part of Group
Management) again communicated towards employees
and suppliers Idavang position and focus on corruption.
Actions on Focus 3, all cases should be reported to both
Group Management and Board. Both Lithuania and
Russia management have in 2023 towards Group
management confirmed that no cases of corruption have
been encountered.
These actions will also be folllowed the coming years.
KPI
During 2023 has no corruption cases been discovered.
ldavang have historically had two cases in Russia of large
contract fraud where both employees and suppliers were
terminated. Idavang has not during its 15 years in
Russian received request for bribery for authorities or
suppliers in Russia.
The aim of company's anti-corruption policy is to define
ldavang's business practice for countering corruption
and bribery and to provide guidance to employees.
All our partners and employees are informed about our
attitude and principles towards corruption. Warning
signs are place on walls, doors and info boards around
on the farms as well as in country headquarters.
This policy extends to all ldavang's business dealings
and transactions in both Lithuania and Russia Suppliers
and business contacts are periodically being informed
about requirements.
Russia generally have higher corruption than in Western
parts of the world. Nevertheless, Idavang has conducted
business in Russia for 15 years with a strong code of
conduct that is integrated in all managers that have
long tenors (average around 10 years).
The local Russian management is a mix of Danes,
German and Russian that all live according to Idavang
(and Scandinavian norms), especially the Russian
managers have positively chosen a Scandinavian
company and the agriculture industry to avoid
corruption. Agriculture due to strategic position (within
Russian community) and with our strict policy, hence we
rarely encounter indications of it.
The Russian management strong ties to Idavang code of
conduct also ensures Idavang Group full control of the
Russian subsidiary, Idavang policy towards corruption
was also paramount in the investment from IFC and IFU.
Policy
ldavang has a zero-tolerance policy towards bribery and
corruption.
Ensure to the extent possible for Idavang, that customers
and suppliers within the company supply chain comply
with all applicable laws, rules and regulations including
anti-corruption.
Targets identified
Focus 1
Small contracts: Gifts and corruption from suppliers
Focus 2
Large contracts (feed): 3-way embezzlement involving
supplier, buyer (Idavang employee nr. 1) and control
person (Idavang employee nr. 2)
Focus 3
Bribery request from authorities or suppliers.
Nevertheless, Idavang sees this as a limited relevant issue
as Agriculture is a strategical industry in Russia with own
local Vice-Governor.
Anti-Corruption
35
Key risk
Violation of anti-corruption laws and non-compliance
with Idavang's own code of conduct could damage
Idavang's reputation towards all stakeholders, and
involve riks of monetary fines.
36
Accidents per 200.000 hours worked
An incident at work, including a traffic accident, during the performance of work functions or while at the workplace,
as a result of which the employee suffers health damage and loses his ability to work at least for one day or as a
result of which the employee dies. It must be investigated and recognized in the prescribed manner accident at work
The number of hours actually worked by all employees. It includes worked time with overtime. Worked time also
includes the time needed to prepare and organize the workplace, work tools, and safety measures; downtime due to
reasons such as absence from work, equipment failure, accident, etc. i.e. when, according to the labor or collective
agreement, it is stipulated to pay for that time; breaks at work, which are counted as working time according to
normative legislation, etc. The time worked does not include paid but not worked time (annual leave, sick days, etc.),
rest time (breaks for rest and meals, etc.), time spent traveling to and from the workplace, etc.ds
High health status so the animals do not have any SPF-diseases
Diseases that pigs can get and be negatively influenced by (Enzootic Pneumonia, App/Porcine pleuropneumonia,
PRRS, Swine dysentery, Atrophic rhinitis, Mange and Lice)
Net energy produced by biogas plants that Idavang is co-investor in, and supply slurry to
KwH it takes to produce a kg of live weight pig (calculated as all KwH used I Idavang Group / all kg of live weight pig
produced in Idavang Group)
Lagoon structure break and slurry runs out or overrun of slurry from lagoon due to too much slurry is filled into it.
External manure is defined as Chicken manure from producers not utilizing its fertilizer capabilities
Idavang sale to farmers of slurry components liquid or solid, included in financial account in other income (note 7)
Definition
Definitions
Of KPI / Sustainability Terms
OHS: TRIR
Accidents
Hours worked
SPF (Specific Pathogen Free) status
SPF diseases
Electricity from Modus biogas
Electricity intensity
Lagoon breaches
Slurry utilization / Tons of external manure
Slurry utilization / Sale to farmers
Term
36
Corporate Governance
Shareholders
Shareholders can exercise their rights at the general
meeting of shareholders, which is the company’s
supreme governing body.
Board of Directors
The overall task of Idavang’s Board of Directors is to
create value for the shareholders by managing the
company.
The Board resolves matters relating to Idavang’s
strategic development, budgets, risk factors,
acquisitions and divestments as well as major
development and investment projects. Furthermore,
the Board of Directors supervises the Executive Board.
Executive Board
The Executive Board of Idavang is appointed by the
Board of Directors and is responsible for the
company’s day-to-day management, including the
development and results of the company’s operations
as well as the company’s internal development.
The Executive Board is responsible for implementing
Idavang’s strategy and the overall resolutions
approved by the Board of Directors.
For details on the Board of Directors or Executive Board see page 20.
Audit Committee
The Board of Directors has set up an Audit Committee
to assist it in supervising the financial reporting
process and the efficiency of ldavang's internal control
and risk management systems.
The Executive Board is responsible for maintaining
controls and an effective risk management system and
it has taken the necessary steps to address the risks
identified in relation to financial reporting.
The composition of the Board of Directors, Audit
Committee and Executive Board ensures the
availability of relevant competencies with respect to
internal controls and risk management.
Financial reporting
In relation to its financial reporting process, Idavang
has set up a number of internal controls to ensure that
the company’s financial reporting gives a true and fair
view free from material misstatement. The internal
control and risk management systems also ensure that
the financial reporting complies with applicable laws
and standards.
The financial reporting process is subject to systematic
assessment on an ongoing basis in collaboration with
the Audit Committee. The tasks and focus areas of the
Audit Committee are updated every year in the form
of an annual wheel. According to the annual wheel,
the tasks of the Audit Committee include monitoring
the financial reporting process in connection with the
publication of annual and interim reports, including a
review of accounting policies and significant
accounting estimates and judgments.
Internal controls and risk management systems in
relation to the financial reporting
Corporate Finance conducts regular control
inspections at Lithuanian and Russian subsidiaries to
ensure that corporate standards for internal controls
have been implemented and operate effectively.
Any proposals for improvement are reported to the
audit committee. The audit committee chairman is the
board member Jytte Rosenmaj.
The duties of the audit committee are to monitor the
following:
> The financial reporting process.
> The company’s internal control systems and risk
management systems, including insurance matters.
> The statutory audit of the financial statements.
> The independence of the auditors, including in particular
the provision of non-audit services to the Group.
Management's Review
37
Remuneration
Remuneration of members of the Board of
Directors and the Executive Board
Idavang seeks to ensure that the remuneration of the
Board of Directors and the Executive Board is at a
competitive and reasonable level compared with
companies of the same size and with the same
complexity as that of Idavang to ensure that Idavang is
able to attract and retain competent executives.
The members of the company's Board of Directors
receive a fixed fee, the amount of which is subject to
shareholder approval.
The remuneration and employment terms of the
members of the Executive Board are determined by
the Board of Directors, which also evaluates the work
of the Executive Board.
The members of the Executive Board receive a fixed
annual salary, and either have a performance-related
cash bonus or a share-based long-term incentive
program.
The remuneration paid for 2023 is specified in note 5
in the Group Notes.
Remuneration General
Idavang has a competitive remuneration system for all
employees.
Idavang pays competitive salaries to our employees.
The salary structure has standardized principles and is
transparent to all employees.
Furthermore do we provide free meals, working
clothes and footwear for our employees.
Intellectual Capital Resources
ldavang considers the employees and the
organizational culture as the most important assets of
the company.
The Company's long-term success is highly linked to
attracting, retaining and developing the employees,
which is why both internal and external training and
education are priorities of ldavang.
Management's Review
38
Human Resource Policy
The company's goal is to increase the female
representation until both genders are represented
with minimum 2 person on the Board of Directors.
Idavang Group's objective on development of
diversity at the Board of Directors level is that next
time a natural change in the board will happens then
the company will strive to have over-representation
of under-represented gender among final candidates.
During 2023 Idavang Group has not performed any
actions to fulfill the target related to the under-
represented gender as there were no changes in the
Board of Directors.
Based on historical turnover levels on board of
directors, the company expects the target to double
representation (of the under-represented gender) to
be reached latest 2028.
The company is committed to observing the group's
human resource policy, which first key principles are
the equality of employees.
We want the company's employees to experience
equal opportunities for employment, improvement,
career-making, and gaining management positions
regardless of gender, age or nationality.
Idavang use § 99b stk.4 (parent company below 50
employees), hence do not make targets for under-
represented gender for other management
Management's Review
Post Balance Sheet Events
Idavang have in first weeks of January
purchased nom. 15,9 mEUR bonds, average
purchase price 92,2. Hence, income effect
of nom 15,9 mEUR * 7,8% or 1,2 mEUR.
Data Ethics Policy
The company has no policy as external data
is extremely limited, but follows all
applicable laws.
39
5 Years Overview
Board of Directors
Total members
Under-represented gender in %
Target in %
Year for fulfilled
Full management
Total members
Under-represented gender in %
20272026202520242023
5
20
40
2028
2
0
Annual Account
Taxonomy
The EU Taxonomy is a regulation which is continuously
being developed by the EU to drive sustainable
investments by classifying economic activities based
on their potential to positively contribute to the
environment.
The EU Taxonomy establishes a common language for sustainable
finance and a basis for the EU to achieve its climate and
environmental objectives, as outlined in the Paris Agreement. The
regulation helps investors identify environmentally sustainable
economic activities and promotes the transition to a low carbon
and climate-resilient economy. As such, the regulation is designed
to encourage investment in an environmentally sustainable
economy.
According to the NACE-code framework, Idavang is considered
under the economic activity “Raising of swine/pigs”, which is
associated with NACE-code A1.4.6. An economic activity is
considered eligible if it is described in the delegated acts,
irrespective of whether the activity meets any of the technical
screening criteria.
In turn, an economic activity is considered aligned if it
substantially contributes to one or more of the environmental
objectives, does no significant harm to any of the other objectives,
and is carried out in compliance with minimum safeguards.
Under the EU Taxonomy, companies are required to disclose the
scope of their eligible economic activities and the extent to which
these are in alignment with the technical screening criteria.
Towards Taxonomy Alignment
To substantiate alignment against the technical
screening criteria, the assessment should follow a
three-layered approach:
1. The activity must substantially contribute to one of
the environmental objectives, which is stipulated based
on the eligible economic activity.
2. The activity must do no significant harm (DNSH) to
the other environmental objectives.
3. The activity must comply with the minimum
safeguards covering social and governance standards.
This means conducting a robust assessment
considering the extent of our capital and operational
expenditure and their potential to contribute to
climate change mitigation and circular economy.
The taxonomy alignment assessment requires a
thorough review of the criteria related to substantial
contribution, DNSH and the minimum safeguards.
Annual Account Taxonomy
Eligibility At
Idavang In 2023
However, the EU has not adopted
Idavang’s economic activity, which
means we report 0% eligibility
and alignment of turnover
(Raising of swine/pigs) against the
two climate related objectives, as
well as against the four non-
climate environmental objectives.
An assessment of our CapEx
recognizes an eligibility of 0,0% or
EUR 0k (Total CapEx is EUR 2.144k.
Our current assessment of our
operational expenditure indicates
that 8,4% of OpEx (total 105,9
mEUR) follows the OpEx definition
of the taxonomy, of which 0.0%, or
EUR 0k, is eligible.
41
Total
Turnover of
Taxonomy-non-eligible activities
Taxonomy-non-eligible activities
Turnover of
Taxonomy-eligible activities (A.1 + A.2)
Turnover of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned) A.2
Taxonomy eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Of which Transitional
Of which Enabling
Turnover of environmentally sustainable activities
(Taxonomy-aligned) A.1
Environmentally sustainable activities
(Taxonomy-aligned)
Taxonomy-eligible activities
Pollution
Proportion of Taxonomy
aligned (A.1) or eligible
(A.2) turnover, year 2022
Circular Economy
Biodiversity
Minimum Safeguards
Category Enabling
Activity
Category Transitional
Activity
Water
Biodiversity
Circular Economy
Pollution
Water
Climate Change
Adaptation
Climate Change
Mitigation
Proportion
of Turnover,
year N
Turnover
Code
Climate Change
Adaptation
Climate Change
Mitigation
Y;N;N/EL Y/N
EL;N/EL
%kEUR
Economic activities
% E T
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
0%0 0%NNNNNNN0%0%0%0%0%0%
0%0 E0%NNNNNNN0%0%0%0%0%0%
T0%0 0%NNNNNNN0%
0%0 0%0%0%0%0%0%0%
0%0 0%0%0%0%0%0%0%
100%142,316
100%142,316
B.
A.
A.2
A.1
A.
Annual Account Taxonomy
Turnover
Financial Year 2023 Substantial Contribution Criteria
DNSH Criteria ("Does Not Significantly Harm")
2023
42
Total
OpEx of
Taxonomy-non-eligible activities
Taxonomy-non-eligible activities
OpEx of
Taxonomy-eligible activities (A.1 + A.2)
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned) A.2
Taxonomy eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Of which Transitional
Of which Enabling
OpEx of environmentally sustainable activities
(Taxonomy-aligned) A.1
Environmentally sustainable activities
(Taxonomy-aligned)
Taxonomy-eligible activities
Pollution
Proportion of Taxonomy
aligned (A.1) or eligible
(A.2) OpEx, year 2022
Circular Economy
Biodiversity
Minimum Safeguards
Category Enabling
Activity
Category Transitional
Activity
Water
Biodiversity
Circular Economy
Pollution
Water
Climate Change
Adaptation
Climate Change
Mitigation
Proportion
of OpEx,
year N
OpEx
Code
Climate Change
Adaptation
Climate Change
Mitigation
Y;N;N/EL Y/N
EL;N/EL
%kEUR
Economic activities
% E T
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
0%0 0%NNNNNNN0%0%0%0%0%0%
0%0 E0%NNNNNNN0%0%0%0%0%0%
T0%0 0%NNNNNNN0%
0%0 0%0%0%0%0%0%0%
0%0 0%0%0%0%0%0%0%
100%8,895
100%8,895
B.
A.
A.2
A.1
A.
Annual Account Taxonomy
Financial Year 2023 Substantial Contribution Criteria
DNSH Criteria ("Does Not Significantly Harm")
2023
OpEx
43
Total
CapEx of Taxonomy-non-eligible activities
(raising of swine/pigs - A.1.4.6)
Taxonomy-non-eligible activities
CapEx of
Taxonomy-eligible activities (A.1 + A.2)
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned) A.2
Taxonomy eligible but not environmentally
sustainable activities (not Taxonomy-aligned)
Of which Transitional
Of which Enabling
CapEx of environmentally sustainable activities
(Taxonomy-aligned) A.1
Environmentally sustainable activities
(Taxonomy-aligned)
Taxonomy-eligible activities
Pollution
Proportion of Taxonomy
aligned (A.1) or eligible
(A.2) CapEx, year 2022
Circular Economy
Biodiversity
Minimum Safeguards
Category Enabling
Activity
Category Transitional
Activity
Water
Biodiversity
Circular Economy
Pollution
Water
Climate Change
Adaptation
Climate Change
Mitigation
Proportion
of CapEx,
year N
CapEx
Code
Climate Change
Adaptation
Climate Change
Mitigation
Y;N;N/EL Y/N
EL;N/EL
%kEUR
Economic activities
% E T
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
0%0 0%NNNNNNN0%0%0%0%0%0%
0%0 E0%NNNNNNN0%0%0%0%0%0%
T0%0 0%NNNNNNN0%
0%0 0%0%0%0%0%0%0%
0%0 0%0%0%0%0%0%0%
100%2,144
100%2,144
B.
A.
A.2
A.1
A.
Annual Account Taxonomy
Financial Year 2023 Substantial Contribution Criteria
DNSH Criteria ("Does Not Significantly Harm")
2023
CapEx
44
Accounting Practice
The EU Taxonomy is still evolving and remains subject to
interpretation. For 2023, Idavang’s EU Taxonomy
reporting follows a systematic process to identify
economic activities in scope for reporting and the
respective financial KPIs.
Taxonomy eligibility is expressed as a share of these KPIs
and the scope of each of these measures is defined by
the Regulation. The reporting scope covers the entire
Idavang Group.
Turnover
The Turnover measure comprises the revenue line from
the consolidated income statement. All of our revenue is
derived from our pig production, including sale of
slaughter pigs, weaners and sows.
These revenue streams are currently non-eligible
according to the Taxonomy Regulation.
Total turnover is in accordance with the revenue reported
in the Annual Report 2023. The turnover KPI is defined as
Taxonomy eligible turnover (numerator) divided by total
turnover (denominator). Noneligible turnover is defined
as total turnover minus Taxonomy-eligible and
Taxonomy-aligned turnover.
plant and equipment, but not cost of goods sold.
Our assessment has identified no EU Taxonomy-eligible
OPEX activities based on our current understanding of
the Taxonomy Regulation within the screened economic
activities:
The OPEX KPI is defined as Taxonomy-eligible OPEX
(numerator) divided by total OPEX (denominator). Non-
eligible OPEX is defined as total OPEX minus Taxonomy-
eligible and Taxonomy-aligned OPEX.
Annual Account Taxonomy
CapEx
The CapEx measure comprises additions to intangible
assets and property, plant and equipment, including
right-of-use assets and biological assets.
Our assessment has identified no EU Taxonomy-eligible
CAPEX activities based on our current understanding of
the Taxonomy Regulation within the screened economic
activities:
The CAPEX KPI is defined as Taxonomy-eligible CAPEX
(numerator) divided by total CAPEX (denominator).
Non-eligible CAPEX is defined as total CAPEX minus
Taxonomy-eligible and Taxonomy aligned CAPEX.
Total CapEx is in accordance with Additions in Tangible
assets note in the Annual Report 2023, and EUR 248k of
biological assets, as most of addition i biological assets
note 15 does not fulfill criterias (mainly feed).
OpEx
The Taxonomy’s OpEx definition is narrow and includes
only direct non capitalized costs related to R&D,
maintenance, short-term leases and building renovation
measures. It also includes other direct expenditure
relating to the day-to-day servicing of assets of property,
45
Group
Financial Statements
Income statement
Statement of other comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
47
47
48
49
50
51
Statement Of Other Comprehensive Income
Profit for the year
Other comprehensive income
Exchange adjustment,
foreign subsidiaries (pre-tax)
Hedge accounting transferred
to production cost (pre-tax)
Value adjustment at hedge
instrument of the year (pre-tax)
Other comprehensive income
to be reclassified to profit or loss
in subsequent periods
Other comprehensive income
not be reclassified to profit or loss
in subsequent periods
2023EUR’000
15
NOTE
Income Statement
Revenue
Value adjustment, biological assets
Production costs
Administrative costs
Other income
Other expense
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Owners of the parent
EUR’000
Group
2023
Financial Statements for the period January 1 - December 31
5
3
6
4 5 6
9
8
9
11
792
-14,023
-4,855
0
-18,878
0
142,316
6,576
-135,318
-4,325
2,381
0
11,630
507
-7,023
5,114
-4,322
792
Total comprehensive income -18,086
Profit for the year 792
Attributable to:
2022
115,219
8,430
-104,721
-4,256
7,579
0
22,251
3,457
-7,294
18,414
-2,678
15,736
15,736
2022
15,736
5,644
-4,274
4,856
6,226
0
21,962
47
22
17
10
23
11
23
23
19
15
18
17
15
14
12
Balance Sheet
Assets
Total assets
2023EUR’000
Group
Financial Statements for the period January 1 - December 31
NOTE NOTE Equity & Liabilities
Total equity & liabilities
2023EUR’000
20
Non-current assets
Intangible assets
Property, plant and equipment
Biological assets
Other non-current assets:
Deferred tax
Financial assets
Total other non-current assets
Total non-current assets
Current assets
Inventories
Biological assets
Receivables
Trade receivables
Other receivables
Prepayments
Income tax
Total receivables
Cash
Total current assets
Equity
Share capital
Exchange adjustments
Other reserves
Retained earnings
Total equity
Non-current liabilities
Credit institutions and issued bonds
Government grants
Deferred tax
Provisions
Other non-current liabilities
Total non-current liabilities
Current liabilities
Credit institutions
Trade payables
Prepayments from customers
Income taxes
Other payables
Total current liabilities
Total liabilities
800
-43,219
0
86,039
43,620
52,532
1,480
3,999
0
348
58,359
3,239
7,804
1,258
3,151
3,981
19,433
77,792
2022
158,373
1,221
80,880
13,543
761
445
1,206
96,850
17,395
27,888
3,471
1,723
692
392
6,278
9,962
61,523
2022
158,373
800
-29,196
4,855
85,247
61,706
58,718
1,697
2,957
0
554
63,926
17,734
9,741
829
745
3,692
32,741
96,667
121,412
1,025
40,283
14,383
759
444
1,203
56,894
10,462
30,860
4,108
527
716
347
5,698
17,498
64,518
121,412
48
Statement Of Changes In Equity
TotalEUR’000
Share
Capital
Exchange
Adjustment
Other
Reserves
Retained
Earnings
Group
Financial Statements for the period January 1 - December 31
1Equity at 31 December 202
Profit/loss for the year
Exchange rate adjustments, foreign subsidiaries
Hedge instrument transferred to production cost
Value adjustment of hedge instrument of the year
Total comprehensive income
Reduction of sharecapital
22Equity at 31 December 20
Profit/loss for the year
Exchange rate adjustments, foreign subsidiaries
Hedge instrument transferred to production cost
Total comprehensive income
23Equity at 31 December 20
800
0
800
0
800
39,744
15,736
5,644
-4,274
4,856
21,962
61,706
792
-14,023
-4,855
-18,086
43,620
69,511
15,736
15,736
85,247
792
792
86,039
4,273
-4,274
4,856
582
4,855
-4,855
-4,855
0
-34,840
5,644
5,644
-29,196
-14,023
-14,023
-43,219
49
Cash Flow Statement
Group
Financial Statements for the period January 1 - December 31
15
NOTE
Operating profit/loss
Depreciation and amortisation
Profit from sale of tangible assets
Accrual of hedging accounting
Changes in inventories
Changes in receivables
Changes in trade payables & prepayments from customers
Changes in other current liabilities
Addition/disposal of biological assets
Value adjustment, biological assets
Total
Interest received
Interest paid
Corporation tax paid
Cash flows from operating activities
2023 2023EUR’000NOTE EUR’000
Acquisition of intangible assets
Acquisition of property, plant and equipment
Addition/disposal of property, plant and equipment
Acquisition/disposal of biological assets (non-current)
Acquisition of investments
Cash flows from investing activities
Proceeds from borrowings
Repayment of borrowings
Dividends paid
Cash flows from financing activities
Net cash flows from operating,
investing and financing activities
Cash and cash equivalents at 1 January
Exchange adjustments
Cash and cash equivalents at 31 December
6
15
12
14
20
23
The Group owns EUR 11.2m (2022: EUR 12.7m) Idavang A/S bonds year end,
furthermore the Group has EUR 9.0m overdraft (2022: EUR 9.0m).
11,630
33,730
0
-4,855
3,729
77
-786
80
-1,132
-6,576
35,897
458
-6,780
-827
28,748
0
-1,896
317
-274
0
-1,853
2,816
-21,336
0
-18,520
8,375
9,962
-839
17,498
2022
22,251
7,992
-37
582
-1,030
1,729
2,354
388
-1,664
-8,430
24,135
458
-7,063
220
17,750
2022
-5
-4,388
133
-2,532
0
-6,792
11,615
-26,617
0
-15,002
-4,044
13,545
461
9,962
50
date of the transaction. Monetary items denominated in foreign currencies are translated into EUR at
the exchange rates at the balance sheet date. Realized and unrealized exchange gains and losses are
recognized in profit or loss as financial income/expenses.
Non-monetary assets and liabilities measured at historic cost in foreign currencies are translated into
EUR at the exchange rates at the date of recognition. Non-monetary assets and liabilities measured at
fair value in foreign currencies are translated into EUR at the exchange rates at the date of
determination of the fair value.
Derivative financial instruments
The Group enters into commodity contracts with respect to grain in order to secure future supply.
Derivate financial instruments are initially measured at fair value at the time of conclusion of the
contract and subsequently at fair value at the balance sheet date. They are recognised in other
receivables when the fair value is positive and in other payables when the fair value is negative.Changes
in the fair values of derivate financial instruments that are designated and qualify as hedges of future
commodity purchases are recognised in other comprehensive income. Income and expenses relating to
such hedging transactions are transferred from other comprehensive income on realisation of the
hedged item and are recognised in the same entry as the hedged item.
Any gains or losses arising from changes in the fair value of derivative financial instruments that not
qualify as hedges are recognised under net financials in the income statement.
Purchase contracts
The company enters into purchase contracts on feed components, for future delivery, for use in pig
production (executory contracts). The cost price for the grain is the agreed contract price which is
recognised in the books at time of delivery.
An onerous executory contract is a contract in which the unavoidable costs of meeting the obligations
under the contract exceed the economic benefits expected to be received under it. An executory
contract for purchase of inventory is deemed onerous if the economic benefit expected to be received
from the products produced with it (net realisable value of the inventories to be obtained) is lower than
the costs. For onerous contract a provision is recognised.
NOTES: Group
Financial Statements for the period January 1 - December 31
Basis of preparation
The consolidated financial statements are prepared in accordance with International Financial Reporting
Standards ('IFRS') as adopted by the EU and additional Danish disclosure requirements for financial
statements prepared by large reporting class D enterprises.
The consolidated financial statements are presented in EUR, as the majority of the group i EUR related.
The parent's functional currency is DKK.
The financial statements have been prepared on the historical cost basis except for biological assets
and hedging contracts, which are measured at fair value, and amortized cost for loans were relevant.
The accounting policies remain unchanged from previous year.
New financial reporting regulations
As of the date of this annual report, the IASB has issued a number of new and amended standards and
interpretations which are not mandatory for Idavang A/S for 2023. None of these are expected to have
material impact for Idavang A/S.
The following adopted standards and interpretations that have not yet come into force will be
implemented as and when they become mandatory for Idavang A/S as per the EU effective dates: IAS 1
(Presentation of financial statements claryfying the definition of current liabilities), IFRS 16 (Leases -
Amendment to IFRS 16), IAS 7/IFRS 7 (New disclosure requirements for supplier finance arrangements),
IAS 21 (Currency translation of currencies that cannot freely be translated at an official exchange rate).
Consolidated financial statements
Subsidiaries are all entities (including structured entities) over which the group has control. The group
controls an entity where the group is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power to direct the activities of the
entity. Subsidiaries are fully consolidated from the date on which control is transferred to the group.
They are deconsolidated from the date that control ceases.
The consolidated financial statements are prepared by aggregating the parent's and the subsidiaries'
financial statements, prepared in accordance with the accounting policies applied by the group. Intra-
group income and expenses, shareholdings, etc., intra-group balances and dividends and realized and
unrealized gains on transactions between the consolidated entities are eliminated on consolidation.
Currency translation
Transactions denominated in foreign currencies are translated into EUR at the exchange rates at the
1
Exchange rate2023 average2022 average31.12.202331.12.2022EUR/RUB91.8168.7099.19 75.66EUR/DKK7.45297.43657.45297.4365
Note 1.
Significant Accounting Policies
51
NOTES: Group
Financial Statements for the period January 1 - December 31
Income statement
Revenue
Revenue from sale of slaughter pigs and weaners are recognised in the income statement when the
delivery and transfer of risk to the buyer has been made before year end. Revenue is recognised
exclusive of VAT and is measured at the fair value of the consideration received or receivable.
Production costs
Production costs comprise expenses incurred in generating the revenue for the year.
Such costs include direct and indirect production costs relating to raw materials and consumables,
wages and salaries, rent and leases, and depreciation, amortisation and impairment losses in respect of
production plant.
Dividend
Dividend revenue is recognised when the Group's right to receive the dividend has been established.
Net financials
Financial income and expenses are recognised in profit or loss at the amounts that relate to the
reporting period. Net financials include interest income and expenses, realised and unrealised capital
and exchange gains and losses on securities and foreign currency transactions and surcharges and
allowances under the advance-payment-of-tax scheme, etc.
Government grants
The Group's government grants are subject to IAS 20 and comprise:
Government grants related to expenses
In Russia, the Group historical received government grants in the form of reimbursement of interest
expenses on loans, when constructing farms. These grants are recognised together with depreciations
of the assets.
Government grants related to expenses are recognised as income as the right to the grant is earned
and received, i.e. as the eligible expenses are incurred and the grant is deposited in a bank account.
Government grants related to property, plant and equipment
In Lithuania, the Group receives government grants for the investment of property, plant and equip-
ment in return for the Group's commitment to carry on pig production for a certain number of years.
Government grants for assets are recognised as deferred income, which is reduced in step with the
depreciation of the related asset and recognised in profit or loss under depreciation.
Income taxes
Income taxes include current tax on the year's expected taxable income and the year's deferred tax
adjustments less the share of the tax for the year that concerns changes in equity.
Current and deferred taxes related to items recognised directly in equity are taken directly to equity.
52
losses. The residual value is determined at the date of acquisition and is reviewed on an annual basis. If
the residual value exceeds the carrying amount of the asset, depreciation is discontinued. Where the
depreciation period or the residual value changes, the effect on depreciation is recognized
prospectively as a change in accounting estimates.
Property, plant and equipment are depreciated using the straight-line method on the basis of the cost
over the following useful lives:
Land is not depreciated. Gains and losses from the sale of property, plant and equipment are calculated
as the difference between the selling price less selling costs and the carrying amount at the time of sale.
Gains or losses are recognised in profit or loss.
Property, plant and equipment are tested for impairment whenever there is an indication that an asset
might be impaired. The impairment test is performed for each individual asset or group of assets,
respectively.
The carrying amount of the assets is reduced to the higher of the value in use and the fair value less
costs to sell of the asset or group of assets (recoverable amount) if it is lower than the carrying amount.
Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset,
which is an asset which requires a substantial period of time to get ready for its intended use or sale,
are capitalised as part of the cost of the asset concerned until such time as it is essentially ready for its
intended use or sale. Borrowing costs comprise interest and other expenses incurred in connection with
borrowing.
Fixed assetsUseful life, years Buildings25-40Plant and machinery8-15Other fixtures and fittings, tools and equipment3-10
Balance sheet
Intangible assets
Intangible assets with indefinite lives comprise goodwill. Goodwill is not amortised but is tested for
impairment on an annual basis. The impairment test is performed for the cash-generating unit to which
the goodwill belongs. The carrying amount of goodwill is reduced to the higher of the value in use and
the fair value less costs to sell of the activity or the business area to which the assets relate (recoverable
amount) if it is lower than the carrying amount.
Intangible assets with definite lives
Intangible assets with definite lives comprise electricity rights and the right to buy leased land in Russia.
The rights are measured at cost less accumulated amortisation and impairment. Rights are depreciated
using the straight-line method on the basis of the cost over the following useful lives:
The rights are tested for impairment whenever there is an indication that they might be impaired. The
impairment test is performed for each individual asset or group of assets, respectively. The carrying
amount of the assets is reduced to the higher of the value in use and the fair value less costs to sell of
the asset or group of assets (recoverable amount) if it is lower than the carrying amount.
Property, plant and equipment
Property, plant and equipment include land and buildings, plant and machinery and other fixtures and
fittings, tools and equipment. Property, plant and equipment are measured at cost less accumulated
depreciation and impairment. The cost includes the cost of acquisition, expenses directly attributable to
the acquisition of the asset and expenses incurred to prepare the asset until such time as it is ready to
be put into operation.
Depreciation is calculated on the basis of cost price reduced by the residual value and any impairment
Intangible assetsUseful life, yearsRights20-25
NOTES: Group
Financial Statements for the period January 1 - December 31
53
Leases
The Group assesses at contract inception whether a contract is, or contains, a lease. That is if the
contract conveys the right to control the use of an identified asset for a period of time in exchange for
consideration. The Group applies a single recognition and measurement approach for all leases, except
for short-term leases and leases of low value assets. The Group recognizes lease liabilities to make
lease payments and right-of-use assets representing the right to use the underlying assets.
The Group recalculate lease liabilities and the right to use asset, when modifications of leases are made.
Right-of-use-assets. The Group recognizes right-of-use assets at the commencement date of the
lease. Initially right-of-use assets are measured at the present value of the future lease payment plus
the cost of obligations to refurbish the assets. Payments mainly consist of fixed payment and is
adjusted for any remeasurement of lease liabilities. The leased assets are depreciated on a straight-line
basis over the shorter of the lease term and the estimated useful lives of the assets. Right-of-use assets
are tested for impairment whenever there is an indication that the asset may be impaired.
Lease liabilities. At the commencement date of the lease, the Group recognize lease liabilities
measured at the present value of lease payment to be made over the lease term. The lease payments
include fixed payments. In calculating the present value of the lease payments, the Group uses its
incremental borrowing rate at the lease commencement date because the interest rate implicit in the
lease is not readily determinable.
After the commencement date, the amount of lease liabilities is reduced for the lease payments made
and the carrying amount of the lease liability is re-measured if there is a modification, a change in the
lease payments or a change in the assessment of an option to either extend or terminate the contract.
The Group’s lease liabilities are included in interest bearing debt (see note 25).
NOTES: Group
Financial Statements for the period January 1 - December 31
Short-term leases and leases of low value assets. The Group applies the recognition exemption to its
short-term (lease term of less than 12 months that do not contain a purchase option) and low value
asset leases. Lease payments on these contracts are recognized as expenses.
Biological assets
Breeding herds are classified as non-current. Commercial herd (slaughter pigs) are classified as current.
Biological assets are recognized when the Group controls the asset and it is probable that future
economic benefits associated with the asset will flow to the Group and the cost or fair value of the asset
can be measured reliably. Biological assets are measured at fair value less selling costs.
Value adjustments of biological assets are recognized in profit or loss for the period to which they
relate. The value of crops is calculated at cost plus production overheads. At the time of harvest, crops
are reclassified from biological assets to inventories, measured at fair value less the cost of
transportation, which subsequently makes up the cost.
Inventories
Inventories are measured at cost by reference to the FIFO method. Where the net realizable value is less
than the cost, the carrying amount is reduced to such lower value.
Receivables
Receivables are recognized initially at fair value and subsequently measured at amortized cost less
impairment assessment is based on the Expected Credit Loss model (ECL). The ECL model involves a
three-stage approach under which financial assets move through the stages as their credit quality
changes.
The stages determine how impairment losses are measured and the effective interest is applied. For
trade receivables, the Group applies the simplified approach, which permits the use of lifetime ECL.
Provisions rates are determined based on groupings of trade receivables sharing the same credit risk
characteristics and days past due.
Prepayments
Prepayments comprise prepaid expenses.
Leasing assetsUseful life, yearsBuildings - office5Buildings - production10Other (contract length)3-70
54
Level 1:
Value in an active market for similar assets/liabilities
Level 2:
Value based on recognized valuation methods on the basis of observable market information
Level 3:
Value based on recognized valuation methods and reasonable estimates (non-observable market
information).
Cash flow statement
The cash flow statement shows the Group's and the parent company's net cash flow during the year,
the year's changes in cash and cash equivalents and the cash and cash equivalents at the beginning and
at the end of the year.
Cash flows from operating activities are presented using the indirect method and are calculated as the
profit or loss for the year, adjusted for non-cash operating items, changes in working capital, paid
financial expenses and paid income taxes.
Cash flows from investing activities comprise payments related to additions and disposals of fixed
assets, securities related to investing activities and dividends received from subsidiaries. Cash flows
from financing activities comprise dividends paid to shareholders, borrowings and repayments of
interest-bearing debt.
Cash and cash equivalents comprise cash.
Financial highlights
Financial ratios are calculated in accordance with the recommendations of the Danish Finance Society.
Segment information
Revenue, result, total assets and liabilities has been allocated according to geographical markets.
Board approval
The annual account has been reviewed and approved by the board on the 26th April 2024, and will be
presented to the shareholders on the Annual General Meeting later on the 26th April 2024.
NOTES: Group
Financial Statements for the period January 1 - December 31
Equity
Foreign currency translation adjustments
Foreign currency translation adjustments comprise exchange adjustments in connection with the
translation of foreign subsidiaries' balance sheets from their functional currency into the Group's
presentation currency.
Other reserves
Other reserves comprise hedge accounting in Lithuania.
Income taxes
Current taxes are recognized in the balance sheet as the estimated tax in respect of the expected
taxable income for the year, adjusted for tax on prior years' taxable income and tax paid in advance.
Provisions for deferred tax are calculated at local rates of all temporary differences between carrying
amounts and tax values, with the exception of temporary differences occurring at the time of
acquisition of assets and liabilities neither affecting the results of operations nor the taxable income,
and temporary differences on goodwill.
Deferred tax assets are recognized at the value at which they are expected to be utilized, either through
elimination against tax on future earnings or a set-off against deferred tax liabilities.
Financial liabilities
Financial liabilities comprise mortgage debt, payables to other credit institutions and subordinated
loans. Financial liabilities are recognized at the inception of the loan at the proceeds received, net of
transaction costs incurred. Financial liabilities are subsequently measured at amortized cost, determined
by reference to the effective interest rate at the time of borrowing. Bonds owned are deducted in the
principal
Fair value
Fair value measurements are based on the principal market. If no principal market exist, the
measurement is based on the most advantageous market, i.e. the market that maximizes the price of
the asset or liability less transaction and/or transport costs. All assets and liabilities which are measured
at fair value, or whose fair value is disclosed, are classified based on the fair value hierarchy, see below:
55
NOTES: Group
Financial Statements for the period January 1 - December 31
Ratios
TermDescriptionEBITDA Earnings before interest, tax, depreciation and amortizationEBITDA margin EBITDA x 100 / RevenueCurrent ratio Current assets x 100 / Current liabilitiesEquity ratio Total equity x 100 / Total assetsReturn on equity Profit for the year x 100 / EquitySold volume live weight Weight of slaughter pigs, piglets, weaners and sows soldkMT 1,000,000 kgAverage invested capital Assets less cash, less bonds less non-interest-bearing debt including provisions Return on average invested capital EBIT (Operating profit) x 100 / Average invested capital (average for the year)Net interest-bearing debtNon-current interest-bearing liabilities plus debt to credit institutions less cashless bondsEBITDA fixed herd pricesEBITDA adjusted for the unrealized value adjustment related to biological assets.
56
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 2.
Critical Accounting Estimates And Judgements
In preparing the Group’s Consolidated Financial Statements, Management makes various accounting
estimates, judgments and assumptions, which form the basis of presentation, recognition and
measurement of the Group’s assets and liabilities.
Material accounting estimates and judgments relate primarily to the Group’s biological assets in the
fields, which in a large part of the year are covered by snow and commercial pigs below 60 kg. in
Russia.
When assessing the fair value of crops, the Group estimates that there was no material biological
transformation from the time of sowing until the field work starts 1 July, and therefore these biological
assets are measured at cost, which corresponds to the fair value.
Assessing the fair value of commercial herd below 60 kg it is based on multiplied a discretionary factor
(calculated as the Russian sales price for slaughter pigs in EUR last month / Lithuanian sales price for
slaughter pigs last month) on the values per category calculated for the Lithuanian market.
Estimation Uncertainty
Determining the carrying amount of some assets and liabilities requires judgments, estimates and
assumptions concerning future events.
The judgments, estimates and assumptions made are based on historical experience and other factors,
which Management assesses to be reliable, but which by their very nature are associated with
uncertainty and unpredictability. These assumptions may prove incomplete or incorrect, and
unexpected events or circumstances may arise.
The Group is also subject to risks and uncertainties, which may lead to actual results differing from
these estimates, both positively and negatively. Assumptions about the future and estimation
uncertainty on the balance sheet date is described in the notes where there is a significant risk of
changes that could result in material adjustments to the carrying amount of assets or liabilities within
the next financial year.
Management regards biological assets to include the key accounting estimates and assumptions used
in the preparation of the Consolidated Financial Statements.
The Group's biological assets are measured at fair value less estimated costs to sell at each balance
sheet date.
2
Breeding herd, fair value prices for the herd are estimated in the following way:
Gilts.
The fair value price of gilts is estimated using the following principle. 22-week (PRRS negative) gilt
quotes are obtained from a reputable Danish genetic company. The quote is in DKK. So it is converted
to EUR using the exchange rate at the end of the reporting period (e.g., Dec23A).
The current quote in EUR is the adjusted with the following two adjustments: (i) the current quote is
reduced by the current years market sale price for the 93 kg slaughter pigs (that is the assumed weight
of a 22 week pig), and (ii) reduced price is then increased by the last year average price of a 93 kg (or 22
week) pig.
After applying the two adjustments, the gilt value. The gilt value is first increased by adjusting for
growing 5 additional weeks (total of 27 weeks). This adjustment is based on the quoted premium for
gilts above the age of 22 weeks as per a reputable Danish genetic company.
Secondly, the long-term gilt value is reduced by estimate of genetics. This adjustment is estimated as
half of the difference between 22-week (PRRS negative) gilts and current year slaughter pig price. As
per Management, the estimate of price reduction is conservative. Hence, the Management treats this
conservative adjustment sufficient to also cover the transport expenses. After all these adjustments, the
Management derives the average price for 27-week (PRRS negative) gilt.
Sows.
The fair value price for sows is based on the average gilt price. To arrive at the fair value estimate of
base sow, the value is adjusted for growing the gilt by additional 5 weeks (total of 32 weeks). This
adjustment is based on the quoted premium for gilts between 26 and 32 weeks as per a reputable
Danish genetic company.
Next, the estimated value of piglets per sows per year. The fair value estimate of piglets per sow is
made using actual current year piglets weaned per litter per sow multiplied by the 2.5-year average
price of piglets and divided with 2 (assuming all sows are half way in pregnancy).
The 2.5-year average price of piglets is determined using monthly quotes obtained from the SPF-
Danmark after converting from DKK to EUR. Fair value per sow is determined by adding fair value of
piglets per sow to the fair value of gilt at 32-weeks of age.
57
NOTES: Group
Financial Statements for the period January 1 - December 31
The carrying amount at 31 December 2023 is EUR 44,155 thousand (2022 EUR 40,099 thousand).
Please refer to note 15. Sensitivity in key valuation variables is slaugterpigs EUR 1,6m (10%
change of slaughterpig price), Weaners EUR 1,6m (10% change of weaner price), piglets EUR
0,2m (10% change of piglet price) and 22 weeks gilt (Danish genetic company) EUR 0,5m (10%
change Gilt price)
The Group’s financial departments are responsible for performing the valuation of fair value
measurements including level 3 fair values of biological assets.
Same valuation model and techniques are used every month. The valuation model includes market
inputs from official prices and actual own sales prices in local markets. The valuation process and
results for recurring measurement are reviewed and approved by Group Management at least once
every quarter.
For crops sown in autumn, the Group generally estimate that there was no material biological
transformation at 1 January till 30 June compared with the time of sowing, and therefore, these
biological assets are measured at cost occurred in the process, which corresponds to the fair value.
If assumptions for biological transformation have changed, additional adjustments to the fair value
are made at the end of each reporting period till the end of harvesting.
Tangible assets depreciations periods are based on decline in value of assets. Idavang business model
means that assets typically continue to use assets which has very limited market value. The old tangibles
assets are maintained extensively with higher than normal maintenance cost as consequence. The fully
depreciated assets still in use of EUR 78,462 thousand, is estimated to have limited sales value.
Commercial herd, fair value prices for the commercial herd are determined in the following way:
Piglets.
Fair value price per piglet is determined based on the SPF-Danmark quotes for SPF-PRRS negative
piglets at 7 kg for region 2 or 3. The quoted price is adjusted for the difference in the average weight of
the commercial stock of piglets. (see all info quotes on spf.dk)
The adjustment is based on the SPF-Danmark quotes for piglet that are less than 7 kg. The
Management makes the assumption that an average piglet on commercial stock is approx. 3.75 kg. The
fair value price per piglet of 7 kg is adjusted for the quote differential between a 7 kg and a 3.75 kg
piglet as per SPF-Danmark. This adjusted fair value price per piglet is used to value the commercial
stock of piglets.
Weaners.
Fair value price per weaner is determined by the sum of a SPF-Danmark quote for SPF-PRRS negative
weaners at 30 kg for region 2 or 3. Similarly as with piglets, the fair value price for weaners is adjusted
for the difference in the average weight of the commercial stock of weaners. The adjustment is also
based on the SPF-Danmark quotes for weaner that are less than 30 kg. The Management makes the
assumption that an average weaner on commercial stock is approx. 18.5 kg. The fair value quote per
weaner of 30 kg is adjusted for the quote difference between a 30 kg and an 18.5 kg weaner as per
SPF-Danmark. The adjusted fair value price per weaner is used to value the commercial stock of
weaners.
Slaughter pigs.
For slaughter pigs between 30 kg and 60 kg, the fair value price per unit is determined by adjusting the
30 kg weaner price by the SPF-Danmark quotes for weaner that are above 30 kg. The Management
makes the assumption that approx. 40% of all the slaughter pigs on commercial stock are between 30
kg and 60 kg, with the average weight of 45 kg. Hence, the fair value quote per weaner of 30 kg is
adjusted for the quote differential between 45 kg and 30 kg.as per SPF-Danmark. The adjusted fair
value price is used to value the commercial stock of slaughter pigs that are between 30 and 60 kg.
For slaughter pigs above 60 kg, the actual market sale price of slaughter pigs. Furthermore, the model
assumes that a good approximate for average weight of slaughter pigs above 60 kg is the average
between 60 kg and the actual average weight of slaughter pig sales (for FY23A this was 114.04 kg). In
FY23A, the assumed that the average weight of slaughter pigs above 60 kg was approx. 87.23 kg.
Fair value assessment of commercial stock in Lithuania and Russia are conceptually identical. The key
differences are that adjusted fair value prices for piglets, weaners and slaughter pigs between 30 kg
and 60 kg are multiplied by a country risk factor (differences in sales prices in December between
Russia and Lithuania on slaughter pigs). In FY23A this factor for Russia was set at 0.68 (and FY22 0.82).
Actual Russian market price is used as a fair market value price for slaughter pigs above 60 kg.
EUR20232022 Slaughterpig sales price liveweight – Russia end year1.12 1.30Slaughterpig sales price liveweight – Lithuania end year 1.66 1.58Weaners (30 kg) sales price – Lithuania end year8065Piglets (7 kg)3930Premium/discount for Russian meat (relation between slaughter pig prices)-32%-18%Sows unit price – Russia470552Sows unit price – Lithuania514429
58
used as translation currency. Nevertheless, if other exchange rates would have been used the Idavang
Group annual account could have looked material different if e.g. if average rate EURRUB 2021 was used
(see example below), as group equity then would be negatively impacted with EUR 14,0m compared to
current account.
Therefore, the most critical estimate during the entire annual account process has been selecting the
translation exchange rate EURRUB. Idavang currently can only to a limited extend transfer money out of
Russia being 10-20 mRUB monthly from Russia to Denmark, which have been done in 2024.
Idavang management continues to make efforts to identify and mitigate impacts to the Group, however,
there are factors beyond its knowledge or control, including the duration and severity of warfare, as well
as further governmental, diplomacy actions taken and any effect on the future EURRUB currency relation.
SensitivityEUR '000Russia / 2023Russia / Last ECB 2022EBITDA13,68710,649Total assets39,69031,092Liabilities-6,951-5,445Net assets32,73925,647FXAnnual Account 2023Last ECB 2022End period91.19117.20Average period91.81117.20
NOTES: Group
Financial Statements for the period January 1 - December 31
Russian activities
As of the date of signing this annual report, Russian military forces “special military operation” into
Ukraine has limited direct on Group operations in Russia. The Idavang groups operation in Russia of
cropping 8.2 thousand hectares and production of 340 thousand pigs has significant distance to areas
impacted by the “special military operation”.
Consolidation, recognition and classification of the Russian activities
Idavang Group management continues to be able to operate and control the Russian entity.
Consequently, the activities are fully consolidated.
Examples of the control is gained is by participation of Group management in Russian operational
management meetings, that Idavang executive management is majority on board of Russian subsidiaries
and loyal longterm employees.
Recognition and valuation of Russian assets
The expected market returns on investments in Russia have increased massively in 2023 due to increased
market risks premium. Idavang has therefore assessed the WACC for the Russian entity to 34% including
adjusted risk premium of 22% based on average markets risk in Russia for 2023.
Idavang Russia is highly profitable in RUB, with 2024 outlook for EBITDA RUB 1,1-1,4b (page 19), which
management expect to be normalized operation going forward. The normalized and expected
profitability going forward is also the basis for the impairment test.
Due to the above mentioned increased market risks premium, all intangible assets (EUR 140k) and
buildings (EUR 27,079k) in Russia have been impaired. The net assets (equity) in Russia amounts after the
impairment to 32,7 mEUR. Total impairment write down of 27,2 mEUR has been recognized in the
income statement in 2023.
Exchange rates uncertainties
The Russian economy impact on Idavang is high, especially through translation EURRUB currency and
basic profitability of producing pork meat in Russia. Evaluating the current Russian economy is difficult as
lack of exchangeability partly exist for the EURRUB, hence the exchange rates published by the Russian
Central Bank are not validated by the European Central Bank (or other major Central Banks).
Preparing the Idavang 2023 Annual account has exchange rates from the Russian Central Bank been
59
EUR’000GroupRussiaLithuania Other 2023Intangible assets 1,026 001,025Property, plant and equipment34,3275,956040,283Biological assets9,3325,051014,383Other non-current assets401,1991,203Total non-current assets44,68911,0071,19956,894Inventories2,1558,307010,462Biological assets20,10810,752030,860Receivables4,70499405,698Cash8,7258,63014317,498Total current assets35,69228,68314364,518Total assets80,38139,6901,342121,412Credit institutionsand issued bonds-28,851-2,022-24,898-55,771Deferred tax-3,99900-3,999Other liabilities-12,811-4,929-282-18,022Liabilities-45,661-6,951-25,180-77,792Net assets34,72032,739-23,83843,620
NOTES: Group
Financial Statements for the period January 1 - December 31
3
Note 3.
SegmentsEUR’0002023GroupRussiaLithuania Other Revenue 97,250 45,0660142,316Value adjustment, biological 4,1002,47606,576assets (non-cash item)Production costs *-71,348-63,9700-135,318Administrative costs-2,064-1,281-980-4,325Other income1,99238902,381Other expense0000Operating profit29,930-17,320-98011,630Financial income204701-398507Financial expense-2,018-685-4,320-7,023Profit before tax28,116-17,304-5,6985,114Tax on profit for the year-4,057-96-169-4,322Profit for the year24,059-17,400-5,867792Depreciations included in production cost *2,58331,147033,730EBITDA32,51313,827-98045,360EBITDA fixed herd prices 28,41311,351-98038,784(excluding value adjustment)
Definition of other is Idavang A/S, Rurik A/S, Rus Invest Aps and elimination (of intercompany
debt, cash pool and interest)
* Production cost in Russia include the impairment of EUR 27,1m - see note 2 & note 6 for details
Russian revenue
97%
Slaughter
pigs
3%
Other pigs
43,668
+1,398
=45,066
Russian EBITDA
88% Pigs
12%
Fields
Lithuanian revenue
97%
Slaughter
pigs
3%
Other pigs
94,351
+2,899
=97,250
Lithuanian EBITDA
100% Pigs
Idavang Group did in 2023
have 2 customers above 10%,
with 19% and 12%.
Eliminations made are 1.991 kEUR between
Financial income/expense and 26.432 kEUR between
Total assets and Liabilities
60
EUR’000GroupRussiaLithuania Other 2022Intangible assets 1,033 18801,221Property, plant and equipment35,56345,317080,880Biological assets7,5116,032013,543Other non-current assets401,2021,206Total non-current assets44,11151,5371,20296,850Inventories2,14115,254017,395Biological assets17,44310,445027,888Receivables4,7331,54506,278Cash7803,5855,5979,962Total current assets25,09730,8295,59761,523Total assets69,20882,3666,799158,373Credit institutions and issued bonds-21,265-12,746-42,441-76,452Deferred tax-2,95700-2,957Other liabilities-11,470-4,649-1,139-17,258Liabilities-35,692-17,395-43,580-96,667Net assets33,51664,971-36,78161,706
NOTES: Group
Financial Statements for the period January 1 - December 31
3
Note 3.
Segments
Definition of other is Idavang A/S, Rurik A/S, Rus Invest Aps and elimination
(of intercompany debt, cash pool and interest).
Eliminations made are 3.290 kEUR between Financial income/expense and 17.660 kEUR
between Total assets and Liabilities.
Russian revenue
98%
Slaughter
pigs
2%
Other pigs
42,256
Russian EBITDA
Lithuanian revenue
98%
Slaughter
pigs
2%
Other pigs
72,963
Lithuanian EBITDA
100% Pigs
Idavang Group did in 2022
have 3 customers above 10%,
with 15%, 11% and 10%.
48% Pigs Fields 52%
EUR’0002022GroupRussiaLithuania Other Revenue 72,963 42,2560115,219Value adjustment, biological assets (non-cash item)8,17625408,430Production costs-66,526-38,1950-104,721Administrative costs-2,124-1,446-686-4,256Other income7,16741207,579Other expense0000Operating profit19,6563,281-68622,251Financial income2494,590-1,3823,457Financial expense-1,295-3,268-2,731-7,294Profit before tax18,6104,603-4,79918,414Tax on profit for the year-2,593-850-2,678Profit for the year16,0174,518-4,79915,736Depreciations included in production cost 2,5625,43107,993EBITDA22,2188,712-68630,244EBITDA fixed herd prices 14,0428,458-68621,814(excluding value adjustment)
Total revenue
Total revenue
61
NOTES: Group
Financial Statements for the period January 1 - December 31
4
EUR’000
Fee regarding statutory audit
Assurance engagements
Tax assistance
Other assitance
Total
2023
112
0
0
0
112
5
EUR’000
Wages and salaries
Other social security costs
Other staff costs
Total
2023
14,302
1,402
668
16,372
Note 5.
Staff Costs
Note 4.
Fees Paid To Auditors Appointed At The Annual General Meeting Staff costs are recognized as follows in the financial statements:
Production
Fixed assets
Administration
Of which:
Remuneration for executive board
Salaries to other executive officers
Remuneration for board of directors
Total
Average number of full-time employees
2023
13,959
0
2,413
16,372
588
637
235
1,460
761
EUR’0002022
109
0
0
0
109
2022
13,946
1,497
320
15,763
2022
13,226
0
2,537
15,763
586
607
235
1,428
770
62
Note 7.
Other Income
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 6.
Amortization, Depreciation And Impairment
6
7
EUR’00020222022Grants in Russia on meat and grain219224Grants in Lithuania (pig grower related)05,062Sale of slurry1,4061,443Delivery of pigs502454Sale of fixed assets037Miscellaneous255359Total2,3817,579
EUR’00020232022Buildings & Land3,4724,157Buildings impairment27,0790Buildings & Land IFRS16249218Plant and machinery2,2823,155Plant and machinery IFRS16 & financial leasing177149Other fixtures and fittings, tools and equipment176114Other fixtures and fittings, tools and equipment Financial lease133171Plants Under Construction (impairment)00Intagible assets2228Intagible assets impairment1400Total33,7307,992
63
Note 10.
Government Grants
The Group receives government grants in the form of reimbursement of interest on loans, grants
for crop production and compensation for high grain prices.
The Group also receives grants for the maintenance of property, plant and equipment in return for
a commitment to carry on pig production for a certain number of years.
The carrying amount of the grants partly relates to the EU SAPARD. The carrying amount is no
longer subject to non-fulfilment terms if the underlying assets are not used.
Government grants relating to interest on loans from credit institutions have been deducted in
financial expenses.
NOTES: Group
Financial Statements for the period January 1 - December 31
8
Note 8.
Financial Income
9
Note 9.
Financial Expenses
10
EUR’000 20232022Carrying amount 1/11,6971,563Received in the year - investments20995Received in the year - operations4565,822Recognised in profit or loss in the year investments-212-61Recognised in profit or loss in the year operations-456-5,822Exchange adjustment-214100Carrying amount 31/121,4801,697
EUR’00020232022> Financial expenses from financial assets and liabilities at fair value through profit or loss:Interest, derivative financial instruments00> Financial expenses originating from loans and receivables measured at amortized cost: Exchange losses00Interest payables to credit institutions-623-1,094Interest, bonds-6,118-6,021Interest, relating to IFRS 16-48-70Other-234-109Total financial expenses -7,023-7,294
EUR’00020232022> Financial income from financial assets and liabilities at fair value through profit or loss:Interest, derivative financial instruments0128Exchange gains 49201Interest income, banks266222Purchase of bonds below par-2,798Other192108Total financial income5073,457
64
NOTES: Group
Financial Statements for the period January 1 - December 31
11
Note 11.
Income Taxes
12
Note 12.
Intangible Assets
EUR’000 20232022Income tax expense recognized in profit or loss:Estimated tax on the taxable income for the year-3,416-918Adjustment regarding prior year137168Change in deferred tax-1,043-1,928Income taxes-4,322-2,678Reconciliation of tax rate:Danish tax rate22%22%Difference, tax rate in foreign subsidiaries38%-14%Tax loss carry forward not capitalized25%7%Effective tax rate85%15%Income taxes:Carrying amount 1/1353-618Payment-828221Tax on taxable income for the year3,279750Exchange rate adjustment 00Carrying amount 31/122,804353
EUR’000 Goodwill Right Total Amortization at 1 January 20229484071,355 Amortization -2828 Disposals--0 Impairments--0 Exchange adjustments-22 22 Impairment losses and amortization at 31 December 2022948 457 1,405 Carrying amount at 31 December 20221,0192021,221Cost at 1 January 20231,9676592,626 Additions-00 Disposals-00 Exchange adjustments--105-105 Cost at 31 December 20231,967 554 2,521 Amortization at 1 January 2023948 4571,405Amortization 02222 Disposals000 Impairments0140140 Exchange adjustments0-71 -71 Impairment losses and amortization at 31 December 2023948 548 1,496 Carrying amount at 31 December 20231,01961,025
65
Note 13.
Impairment Test, Intangible Assets
Intangible assets with indefinite lives (goodwill) are tested for impairment on an annual basis.
Goodwill
Goodwill relates to Lithuania: Šalnaičių (1999) and Skabeikių (2006).
Goodwill is tested for the smallest group of cash-generating units in respect of which goodwill is
monitored by Management and which is not larger than the group's operating segments.
As sales and production are managed centrally in each individual country, goodwill is monitored at
country level. Goodwill has been allocated to Lithuania, the carrying amount of goodwill at 31 December
totaled:
The recoverable amount is determined on the basis of a calculation of the value in use using cash flow
calculations based on budgets and forecasts for 2024-2027 (2022: 2023-2026), as approved by
management. The calculation of the value in use is based on the following estimates:
NOTES: Group
Financial Statements for the period January 1 - December 31
13
The key assumptions used in cash flow projections are as follows:
Selling price per kilo pork compared with cost price per kilo grain
For Lithuania, an expectation as to average sales prices and grain prices has been used, based on 2024
budget. Forward estimates are based on historical averages and EU forecasts.
Investments
Lithuania's investments are expected to be EUR 1.1m in 2024, but in from 2025 and in terminal value
investment is included equal to depreciations to be conservative. It is therefore Management's
judgement that investments will be lower than depreciation charges going forward.
Working capital
In Management's opinion, working capital reached a normal level in 2023 in the cash generating units.
Management does not expect significant changes to the level of working capital in future.
As the estimated value in use is considerably higher than the carrying amount, the impairment test
shows no indication of impairment of goodwill.
Safety margin in performed impairment test
Management estimate the safety margin in 2023 impairment test to be 48% (compared to safety
margin of 32% in 2022).
Lithuania20232022Discount factor before tax9.5%9.7%Growth rate in terminal period2%2%
Lithuania20232022EUR’0001,0191,019
66
Note 14.
Property,
Plant And
Equipment
Cost amount of assets
written off but still in use
is EUR 78,462 thousand.
The amount of borrowing
costs capitalised during
the year ended
31 December 2023 was
EUR 0k (2022: EUR 0k).
See note 23 for financial
liabilities relating to
right-to-use assets.
NOTES: Group
Financial Statements for the period January 1 - December 31
14
Land Land Plant PlantFixtures, Fixtures,PlantsTotaland and and and fittingsfittings,toolsunderbuildingsbuildingsmachinerymachineryand toolsIFRS16 and constructionEUR’0002023IFRS16Financial leaseFinancial leaseCost at 1 January 2023114,1842,44542,5072,9272,7061,9372,283168,989Additions880126253954228411,897Disposals-366-36-7370-82-7-7-1,235Transfers2,02201,797-1,659954-950-2,1640Exchange adjustments-13,679-218-6,574-1100-400-20,981Cost at 31 December 2023102,2492,19137,1191,2933,8631,402553148,670Impairment losses and depreciations at 1 January 202348,11387234,1861,6412,0261,271088,109Depreciations3,4722492,28217717613306,489Impairments27,07900000027,079Reversed depreciation on disposals-1190-7240-72-30-918Transfers001,524-1,529867-86200Exchange adjustments-7,025-38-5,192-11700-12,372Impairment losses and depreciations at 31 December 202371,5211,08232,0762892,8805390108,387Carrying amount at 31 December 202330,7281,1095,0431,00498386355340,283Land which is not depreciated 2,765
67
See note 2 for details on
impairment
Note 14.
Property,
Plant And
Equipment
Cost amount of assets
written off but still in use
is EUR 35,916 thousand.
The amount of borrowing
costs capitalised during
the year ended
31 December 2022 was
EUR 0k (2021: EUR 63k).
See note 25 for financial
liabilities relating to
right-to-use assets.
NOTES: Group
Financial Statements for the period January 1 - December 31
14
Land Land Plant PlantFixtures, Fixtures,Plants Totaland and and and fittingsfittings,toolsunderbuildingsbuildingsmachinerymachineryand toolsIFRS16 and constructionEUR’0002022IFRS16Financial leaseFinancial leaseCost at 1 January 2022106,5932,40738,1032,4832,2031,7173,194156,700Additions260201,4098924163421,5784,917Disposals0-54-3940-63-46-2-559Transfers1,9710874-448101-77-2,952-531Exchange adjustments5,360722,51504914658,462Cost at 31 December 2022114,1842,44542,5072,9272,7061,9372,283168,989Impairment losses and depreciations at 1 January 202242,40964029,4051,7871,8751,181077,297Depreciations4,1572183,15514911417107,964Reversed depreciation on disposals00-3750-50-390-464Transfers00300-29537-4200Exchange adjustments1,547141,701050003,312Impairment losses and depreciations at 31 December 202248,11387234,1861,6412,0261,271088,109Carrying amount at 31 December 202266,0711,5738,3211,2866796672,28380,880Land which is not depreciated 3,436
68
NOTES: Group
Financial Statements for the period January 1 - December 31
15
Note 15. Crops Commercial Total Current Non currentHerdAssets/ Breeding HerdBiological EUR’000AssetsCarrying amount at 1 January 20221,00414,88815,89212,094Gains/losses from fair value changes (included in income statement)09,7929,792-1,362Value adjustment of biological assets.Additions4,417103,443107,8605,483Disposals -4,178-100,627-104,805-4,341Transfers0-1,391-1,3911,391Exchange adjustments 894515402782022Carrying amount at 31 December 20221,33226,55627,88813,543Biological assets provided as security for loans0000Carrying amount at 1 January 20231,33226,55627,88813,543Gains/losses from fair value changes (included in income statement)04,5424,5422,034Additions3,637102,243105,8803,742Disposals -3,560-98,928-102,488-5,729Transfers0-2,261-2,2612,261Exchange adjustments -321-2,380-2,701-1,4682023Carrying amount at 31 December 20231,08829,77230,86014,383Biological assets provided as security for loans0000
69
NOTES: Group
Financial Statements for the period January 1 - December 31
Idavang uses the following hierarchy for determining and disclosing the fair value:
Level 1:
Quoted (unadjusted) prices in active markets for identical assets
Level 2:
Significant observable inputs
Level 3:
Significant unobservable inputs
Commercial and breeding herd are measured at fair value level 3 due to significant links to observable
quotes on pigs and recent sales prices.
Crops are based on cost of seed, fertilizer, chemical, variable cost and salary to field production. Revaluation of consuma-
ble biological assets was made based on the prices of the most recent sales prices and official quotes.
Commercial and breeding herd are measured at fair value level 2, due to significant links to observable quates on pigs and
recent sales prices See calculation method in note 2 Accounting estimates
20232022An area of 8,077 haAn area of 8,269 haCropswas harvested mainly wheat,was harvested mainly wheat,and by the end of 2023and by the end of 20225,532 ha were seeded6,060 ha were seededStock increased Stock decreased Commercial and at year-end stock and at year-end stock herdwas 370,008 pigs.was 363,728 pigs.During the yearDuring the year781,767 slaughter pigs,703,924 slaughter pigs,0 weaners and0 weaners and15,647 sows11,269 sowswere soldwere soldStock increased andStock decreased andBreeding herdthe year ended withthe year ended witha total of 31,353 sows,a total of 30,415 sows,gilts and boarsgilts and boars
70
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 16.
16
Idavang uses the following hierarchy for determining and disclosing the fair value:
Fair value on outstanding bonds end year is difficult to evaluate due to high spread. Based on Idavang trades the first
two weeks of 2024 a price of 97,7 for the entire bond is estimated as fair value.
Loans, Receivables And LiabilitiesLevel 1: Quoted (unadjusted) prices in active markets for identical assets or liabilitiesMeasured At Amortised Cost20232022CarryingFairCarryingFairLevel 2: EUR’000amountvalueamountvalueOther techniques for which all input that have a significant effect on the recorded fair value are observable, either directly or indirectly. All financial assets and liabilities are classified as level 2 except Financial assets444444445445bonds and matif contracts (hedging), which are level 1. Nevertheless in 2023 bonds are classified asTrade receivables4,1084,1083,4713,471level 2 due to high spread.Other receivables (normal)5275271,7231,723Other receivables (hedging)000020232022Prepayments716716692692CarryingFairCarryingFairCash17,49817,4989,9629,962EUR’000amountvalueamountvalueTotal cash and receivables 23,29323,29316,29316,293Level 117,49817,4989,9629,962measured at amortised costLevel 2Payables to credit institutions & issued bonds54,63053,39274,80874,808Level 35,7955,7956,3316,331Payables IFRS 161,1411,1411,6441,644Total cash and receivables 23,29323,29316,29316,293measured at amortised costTrade payables7,8047,8049,7419,741Prepayments from customers1,2581,258829829Level 1Other payables (normal)3,9813,9813,6923,692Level 255,77154,53376,45264,458Other payables (hedging)0000Level 313,04313,04314,26214,262Total financial liabilities68,81467,57690,71490,714Total financial liabilities68,81467,57690,71478,720measured at amortised costmeasured at amortised cost
71
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 17.
Deferred Tax
17
Deferred tax asset/liability is recognised in the balance sheet as follows:
Deferred tax asset
Deferred tax liability
Deferred tax, net
Reconciliation of deferred tax, net:
At 1/1
The year’s tax income/expense recognized in profit or loss
Exchange adjustments
At 31/12
761
1,029
-268
Tax losses carry forward
not capitalized are
EUR 7.358 thousand (2022
EUR 4.491 thousand)
due to uncertainties of
utilizing it in the future.
The tax loss carry forward
isunlimited.
Deferred tax assets
(tax loss carry forward)
are recognised when
it is assumed highly
probably that the assets
will be utilised.
Effect of income statement
is the difference of opening
and closing deferred tax.
Consolidated balance sheet Income statement
759
3,999
-3,240
-2,196
-1,042
0
-3,238
761
2,957
-2,196
-268
-1,928
0
-2,196
EUR’000202320221/1 202220232022Property, plant and equipment-1,864-1,337-742-528-595Biological assets-2,145-1,629-710-516-919Other non-current assets11100Current assets and liabilities98800Tax loss carry forward7597611,1750-414Deferred tax income/(expense)-1,044-1,928Deferred tax asset/(liability)-3,240-2,196-268
72
NOTES: Group
Financial Statements for the period January 1 - December 31
Note 19.
Trade Receivables
19
Trade receivables at 31 December 2023 include receivables at a nominal value of EUR 4,108 thousand
(2022: EUR 3,471 thousand), the carrying amount of which has been reduced by EUR 0 thousand (2022:
EUR 0 thousand) regarding write downs. Trade receivables overdue by more than 30 days are EUR 305
thousand (2022: EUR 172 thousand).
The reason why trade receivables are low compared to revenue is that all sales in Russia are prepaid by
the customer and sales in the EU (mainly Lithuania) have been covered th ough r credit insurance
agreements since 2006.
As all sales in Russia are prepaid and all other sales have been covered by credit insurance the write-
down according to the expected credit loss model is insignificant. Therefore there have not been
recognized any write-downs on the receivables.
20
Note 20.
Cash
18
Note 18.
Inventories
21
Note 21.
Derivatives
Contracting grain in Lithuania
Typical contacts buying grain in LT is split into two parts: Matif price and discount (for feed wheat).
The price is fixed using matif contracts, before physical contract is closed, hence gain/loss on matif
contract and physical contract combined equals grain expense. Contracts are reviewed and unefficient
parts of hedging transaction are classified as financial income/expense. In 2023 all contracts was
closed as physical contacts and no matif was used.
In 2023 has hedging had effect on comprehensive income of -4.855 kEUR (4.856 kEUR in 2022).
Tax of other comprehensive income amount to 0kEUR, as tax on hedging is included when the gain/
loss is transferred to the profit and loss.
EUR’000 202320222021Derivatives designated for hedge reserve primo4,8554,273548Current year hedges accounted as income (expenses) in financial activities-(128)(142)Decrease (increase) of feed cost related to current year hedge-(1,925)(1,107)Decrease (increase) of feed cost related to previous year hedge(4,855)(4,352)(548)Gain (loss) on hedging transactions-6,9875,522Derivatives designated for hedge reserve ultimo-4,8554,273 Non realized profit/loss included in Other receivables---Other payables--79
EUR’000 20232022Raw materials and consumables10,46217,395Cost of sales recognised in profit or loss (feed)74,08274,077
EUR’00020232022Cash - Denmark / Lithuania8,8686,077Cash - Russia8,6303,885Total17,4989,962
73
NOTES: Group
Financial Statements for the period January 1 - December 31
22
Note 22.
Capital Structure
Capital management
The Group aims to create the room required to secure its strategic development activities and be able
to provide a competitive return for its shareholders. The Board of Directors generally intends to
distribute excess cash to the shareholders by way of dividends. However, dividends will always take into
account the Group’s growth plans and funding requirements.
Share and authorisations
Idavang A/S has only one share class with equal rights. Shares have a denomination of EUR 1 per share
(hence total 800.000 shares). The shares are non-negotiable instruments.
Capital Structure
The share capital has been paid in full and 100% owned by JAST Holding Aps. All resolutions at the
general meetings of shareholders must be adopted by a simple majority of the votes of the shares
present at the meeting, unless one of the listed voting right restrictions or the Danish Companies Act
provides otherwise. In the event of a tie, the proposal will lapse.
Note 23.
Financial Risks
23
Sales price risk
Idavang policy is selling on weekly auctions, but a minor percentage of sales to Lithuanian customers is
linked to national price index.
The Group is highly exposed to global and EU developments in the price of pork. Lithuanian sales are
fully linked to EU and German prices. A 1% change would affect profit by EUR 1.0m (2022: EUR 0.7m), all
other things being equal. Russian sales due to closed borders towards the EU more linked to the global
market. A 1% change would affect profit by EUR 0.4m (2022: EUR 0.4m), all other things being equal.
Raw material price risk
Board and management does quarterly on board meetings define mandates for next quarter’s hedging.
The Group is highly exposed to global and EU developments in the price of grain and protein (soy and
sunflower). A change of 10% on grain prices is estimated to affect profit by +/- EUR 3.9m in 2023
(based on current years purchase * 10%) (2022: EUR 4.2m), all other things being equal. Furthermore, a
similar 10% change in protein prices is estimated to affect profit by +/- EUR 1.1m in 2023 (based on
current years purchase * 10%) (2022: EUR 1.1m), all other things being equal.
Credit risk
The Group policy is to to minimise its credit risks. Sales transactions should therefore for all Russian
customers be carried through up-front in cash, and for EU clients, credit insurance need to be taken out
in advance.
Liquidity risk
The Idavang Group has its main financing in a 5 year bond with bullet payment on expiry in December
2025, hence limited debt service. The Group monitors its risk to a shortage of funds, high-level liquidity
planning tool and detailed budgets. The Group's objective is to maintain a balance between continuity
of funding and flexibility through the use of bank overdrafts, bank loans, cash and bonds.
The Group have targets for reduction of net interest bearing debt during the next 4 years, so that
refinancing the bond will be unproblematic. The Bond loan agreements is not subject to financial
covenants.
The Group overdraft facility of 9 mEUR function mainly function as liquidity reserve.
Foreign exchange risk
Idavang policy is not to hedge EURRUB exposure.
Interest rate risk
Idavang policy is to have long funding of loans, and all changes in funding need board approval.
The Group's funding from bonds has variable interest rates and the remaining have fixed rates. It is the
Group's policy not to enter into interest rate swaps. A 1% change in Euribor 3 months would, all other
things being equal, affect P/L by EUR 0.5m (2022: EUR 0.6m).
74
The following assumptions are made in the overview above: revenue in Russia is RUB-denominated. Grain and soy in
Russia are assumed RUB exposure as invoiced in RUB. EUR includes DKK as it's tied to the EUR.
EUR’0002022RUBUSDEUR12/31Revenue42,256072,963115,219Production cost-38,1950-66,526-104,721Administration expenses-1,4460-2,124-3,570Net exposure2,61504,3136,928Payables to credit institutions12,746063,70676,452Net exposure12,746063,70676,452
The following assumptions are made in the overview above: revenue in Russia is RUB-denominated. Grain and soy in
Russia are assumed RUB exposure as invoiced in RUB. EUR includes DKK as it's tied to the EUR.
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
EUR’0002023RUBUSDEUR12/31Revenue45,066097,250142,316Production cost-63,9700-71,348-135,318Administration expenses-1,2810-2,064-3,345Net exposure-20,185023,8383,653Payables to credit institutions2,022053,74955,771Net exposure2,022053,74955,771
Illustration of Currency Sensitivity
75
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
The Group's policy is to minimize current payables to credit institutions. The Group has assessed the
concentration of risk with respect to refinancing of its debt, finding it to be low and spread among a
number of banks.
Access to sources of funding is sufficiently available and debt maturing within 12 months is expected to
a high degree to be rolled over with existing lenders.
Payables to credit institutions are recognised in the balance sheet as follows:
Payables to credit institutions and bonds including interest have the following maturity terms:
Quoted bond is included with EUR 469k with 1 year and 50,711k 1-5 year
Russia will not take anymore loans, current loan has been repaid in January.
Issued bonds include prepaid cost of EUR 700k 31.12.2022, which is written off over the tenor of the loan.
EUR’000 Cash flow20231/1 12/31FX/Non cashPayables to credit institutions, IFRS 161,644-318-1851,141Issued bonds59,969-9,48624250,725Payables to credit institutions14,840-8,555-2,3793,905Total76,452-18,359-2,32255,771Issued bonds include prepaid cost of EUR 458k 31.12.2023, which is written off over the tenor of the loan.Issued bonds is net amount of circulating bonds and EUR 12,7m owned by the company.EUR’000 Cash flow20221/1 12/31FX/Non cashPayables to credit institutions, IFRS 161,945-328271,644Issued bonds70,356-7,821-2,56659,969Payables to credit institutions19,700-6,8531,99214,840Total92,001-15,002-54776,452
Within1-5More thanCurrency Interest20231 yearyears5 yearsEUR11.2%50,725469 50,256 0EUR1.7-7.8%3,024748 2,102 174RUB3.5%2,0222,022 0 0Total 55,771 3,239 52,358 174Within1-5More thanCurrency Interest20221 yearyears5 yearsEUR9.1%59,969 3,887 56,082 0EUR0.7-6.5%3,737 1,101 2,257 379RUB3.5%-4.25%12,746 12,746 0 0Total 76,452 17,734 58,339379
EUR’00020232022Within 1 year9,09924,0071-5 years 57,48868,871More than 5 years 328599Total66,91493,477
76
Note 23.
Leases
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
EUR’000As at 31 December2023EUR’000As at 31 December2023Set out below are the carrying amounts of leaseFuture lease payments liabilities and the movements during the period:IFRS 16 Regular Totalare as follows:IFRS 16 Regular TotalAs at 1 January 1,644 1,281 2,925 Within one year 328 434 762 Additions 5 441 446 From one to five years 777 1,013 1,790 Accretion of interest 6 74 80 After five years 564 - 564 Payments-318 -524 -842 Total lease obligations 1,669 1,447 3,116 Disposals-15 - -15 Modifications-155 - -155 Exchange adjustments-26 - -26 As at 31 December 1,141 1,272 2,413Interest-528 -175 -703 Present value of lease obligation 1,141 1,272 2,413 The following are the amounts recognized in profit or loss:IFRS 16 Regular TotalLease obligations are Depreciation expense of right-of use assets 297 260 557 accounted for as:IFRS 16 Regular TotalInterest expense on lease liabiilities 48 74 122 - Current 289 358 647 Expenses relating to short-term leases (production)-244 - -244 - Non-Current 852 914 1,766 Expenses relating to short-term leases (Admininstation)-94 - -94 Present value of lease obligation 1,141 1,272 2,413 Total amount recognized in profit or loss 7 334 341
As at 31 December 2023 and 2022 all regular lease liabilities are denominated in Euro. Negotiated by management to provide flexibility in managing the leased-asset portfolio and align the Company's
business needs. As at 31 December 2023 where no contracts which extensions options were expected not be
exercised nor any contracts which termination options were expected to be exercised.
+
77
Note 23.
Leases
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
EUR’000As at 31 December2022EUR’000As at 31 December2022Set out below are the carrying amounts of leaseFuture lease payments liabilities and the movements during the period:IFRS 16 Regular Totalare as follows:IFRS 16 Regular TotalAs at 1 January 1,945 854 2,799 Within one year 331 439 770 Additions 49 1,397 1,446 From one to five years 1,049 992 2,041 Accretion of interest 43 19 62 After five years 890 - 890 Payments-328 -963 -1,291 Total lease obligations 2,269 1,431 3,700 Disposals-113 -26 -139 Modifications 23 - 23 Exchange adjustments 24 - 24 As at 31 December 1,644 1,281 2,925 Interest-626 -150 -776 Present value of lease obligation 1,644 1,281 2,925 The following are the amounts recognized in profit or loss:IFRS 16 Regular TotalLease obligations are Depreciation expense of right-of use assets 311 158 469 accounted for as:IFRS 16 Regular TotalInterest expense on lease liabiilities 56 19 75 - Current 279 383 662 Expenses relating to short-term leases (production)-210 - -210 - Non-Current 1,364 898 2,262 Expenses relating to short-term leases (Admininstation)-148 - -148Present value of lease obligation 1,644 1,281 2,925Total amount recognized in profit or loss 8 177 185
As at 31 December 2022 and 2021 all regular lease liabilities are denominated in euro. Negotiated by management to provide flexibility in managing the leased-asset portfolio and align the Company's
business needs. As at 31 December 2022 where no contracts which extensions options were expected not be exercised
nor any contracts which termination options were expected to be exercised.
+
78
Note 24.
Related Party
Transactions
24
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
EUR’000
Shareholders in JAST Holding Aps
(excluding Remuneration for Board of Directors and Executive Board)
Total
Shareholders in JAST Holding Aps
(excluding Remuneration for Board of Directors and Executive Board)
Total
2022
2023
16
16
16
16
0
0
0
0
Dividend Management Fee and Salary
79
Note 25.
Bond
25
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
Issuer Idavang A/S Security package: (i) share pledges over Guarantors and Russian operating companies (ii) mortgages over substantially Lithuanian real estate, (iii) Danish registered negative pledges, (iv) assignment over intra-group loan (RUB 0.9bn*) from the Issuer to Idavang Agro LLCOriginal Guarantors: Rus Invest Aps, Rurik A/S, Pskov Invest Aps, Idavang Russia A/S and UAB Idavang Status of the bond: Senior secured Currency: EUR Initial debt amount: EUR 75 millions (current outstanding EUR 62,3m) Other facilities: Super senior RCF up to 9 mEUR, governed under an inter-creditor agreement with bondholders. Basket of leasing, factoring and other of 6,5 mEUR and permitted indebteness of RUB 1,750m in Russia (apx. EUR 19m)Tenor 5 years Pricing: 3m EURIBOR + 725 bps p.a., quarterly interest payments, EURIBOR floor of 0% Rating: Unrated Call options: Non call during the first 30 months, then 50/33/25/10/0 after 30/36/42/48/57 Incurrence test "NIBD/EBITDA LTM fixed herd price (net leverage) of 3.00 and No Event of Default is continuing or occurring upon the incurrence or payment" Restricted payments No financial support (by way of loans, capital or similar) by the Issuer to Russian subsidiaries, except if funded by the super senior facilityor if the incurrence test is met (excluding the IFC Deposit from Net Interest Bearing Debt)Information covenants: Annual audited statements, quarterly unaudited reports Change of control: Investor put at 101% Listing of bonds: Nasdaq Copenhagen Trustee: Nordic Trustee Governing law: Danish law
*Assignment over intra-group loans is RUB 0.0b
80
Note 26.
Contingent Liabilities, Securities And Other Financial Obligations
Contingent liabilities
Securities
The following assets have been provided as security for the group's bankers:
NOTES: Group
Financial Statements for the period January 1 - December 31
NOTES: Group
Financial Statements for the period January 1 - December 31
26
Other obligations
Purchase contracts of grain, soy and sunflower in Lithuania and Russia of EUR 40.4m (2022 EUR 40.3m).
The Idavang Group is party of a credit facility agreement with Jyske Bank and Nordic Trustee. See details
in Parent Company Note 14.
Note 27.
Post Balance Sheet Events
Idavang have in first weeks of January purchased nom. 15,9 mEUR bonds, average purchase price 92,2.
Hence, income effect of nom 15,9 mEUR * 7,8% or 1,2 mEUR.
27
EUR’00020232022Land, buildings and machinery30,48950,278Herd00Inventories00Cash and cash equivalents00Total30,48950,278
81
Parent Company
Financial Statements
Income statement
Statement of other comprehensive income
Balance sheet
Statement of changes in equity
Cash flow statement
Notes to the financial statements
83
83
84
85
86
87
82
Parent Company
Statement Of
Other Comprehensive Income
Profit for the year
Other comprehensive income:
Exchange adjustment, foreign subsidiaries
Other comprehensive income not be reclassified
to profit or loss in subsequent periods
Other comprehensive income
Other comprehensive income not be reclassified
to profit or loss in subsequent periods
Total comprehensive income
2023EUR’000
3,773
0
0
0
0
3,773
NOTE
Income Statement
Revenue
Administration costs
Operating profit
Financial income
Financial expenses
Profit before tax
Tax on profit for the year
Profit for the year
Attributable to:
Transferred to equity
EUR’000 2023
0
-980
-980
21,934
-17,096
3,858
-85
3,773
3,773
Financial Statements for the period January 1 - December 31
5
6
7
3 4
2022 2022
0
-686
-686
5,975
-6,021
-732
0
-732
-732
-732
0
0
0
0
-732
83
Parent Company
NOTE
M E N U
Non-current assets
Other non-current assets
Shares in subsidiaries
Deferred tax
Other receivables
Total non-current assets
Current assets
Receivables
Receivables from group companies
Total receivables
Cash
Total current assets
EUR’000 2023
Financial Statements for the period January 1 - December 31
Total assets
Balance Sheet
Assets
Equity & Liabilities
10
NOTE
Equity
Share capital
Exchange adjustments
Retained earnings
Total equity
Non-current liabilities
Credit institutions and issued bonds
Total non-current liabilities
Current liabilities
Credit institutions
Other payables
Total current liabilities
Total liabilities
EUR’000 2023
Total equity & liabilities58,414
10
11
8
12
13,179
280
440
13,899
18,545
18,545
25,970
44,515
800
-25
6,032
6,807
50,256
50,256
469
882
1,351
51,607
58,414
9 10
2022
64,320
24,016
280
441
24,737
16,459
16,459
23,124
39,583
2022
800
22
2,259
3,081
56,082
56,082
3,887
1,270
5,157
61,239
64,320
84
M E N U
Statement Of Changes In Equity
Total
EUR’000
Share
Capital
Exchange
Adjustment
Retained
Earnings
Financial Statements for the period January 1 - December 31
3,813
-732
0
-732
3,081
3,773
-47
3,726
6,807
Parent Company
2,991
-732
-732
2,259
3,773
0
3,773
6,032
22
0
22
-47
-47
-25
800
0
800
0
800
Equity at 31 December 2021
Profit/loss for the year
Other comprehensive income
Total comprehensive income
Equity at 31 December 2022
Profit/loss for the year
Other comprehensive income
Total comprehensive income
Equity at 31 December 2023
85
M E N U
Cash Flow Statement
Financial Statements for the period January 1 - December 31
Parent Company
NOTE EUR’000 2023
Operating profit/loss
Changes in receivables
Changes in non-current receivables
Changes in other current liabilities
Total
Interest received
Dividend received
Interest paid
Corporation tax paid
Cash flows from operating activities
NOTE EUR’000 2023
13
-980
-1,823
-
-389
-3,192
3,549
18,000
-5,951
-
12,406
0
0
-9,494
-9,494
2,912
23,124
-66
25,970
Cash flows from investing activities
Proceeds from borrowings
Repayments of borrowings
Cash flows from financing activities
investing and financing activities
Cash and cash equivalents at 1 January
Exchange adjustments
Cash and cash equivalents at 31 December
Net cash flows from operating,
2022
-686
1,924
-
653
1,891
2,974
151
-5,778
-
-762
2022
0
0
-7,832
-7,832
-8,594
31,718
0
23,124
86
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 1.
Significant Accounting Policies
The financial statements of Idavang A/S are prepared in accordance with International Financial Reporting
Standards (’IFRS’) as adopted by the EU and additional Danish disclosure requirements for financial
statements.
The financial statements are presented in EUR. The company’s functional currency is DKK.
The accounting policies applied by Idavang A/S are consistent with those applied by the group, cf. note 1
to the consolidated financial statements and the below.
The accounting policies remain unchanged from previous year.
Revenue
Revenue consists of management fee allocated to subsidiaries in the group and is recognized on a
straight-line bases as the services are provided.
Revenue is measured at the fair value of the agreed consideration excl. VAT and taxes charged on behalf
of third parties.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. If the cost exceeds the recoverable amount, the carrying
amount is reduced to such lower value.
Dividends
Dividends from investments in subsidiaries are recognised in the parent company’s income statement in
the reporting year in which the dividends are declared.
1
Note 2.
Critical Accounting Estimates And Judgements
In preparing the Parent Company Financial Statements, Management makes limited accounting
estimates, judgments and assumptions, which form the basis of presentation, recognition and
measurement of the Parent Company’s assets and liabilities.
Investments in subsidiaries constitute a significant part of Idavang A/S total assets. Indication of
impairment of investments in subsidiaries are assessed annually by management. Impairment tests
are conducted in the same way as for goodwill in the Group, in the consolidated financial statements
The receivables from group companies are included in impairment tests.
Management have in 2023 impaired Russian activities with EUR 10,8m relating to Russia assessment
that no further indications of impairment existed at year-end 2023. Impairment tests have therefore
not been carried out for investments in other subsidiaries. See note 2 in Group account for more
details.
The fair value of receivables in subsidiaries corresponds to the carrying amount in all material
respects, as receivables from group companies has market terms.
2
EUR’000
Fee regarding statutory audit
Assurance engagements
Tax assistance
Other assistance
Total
Note 3.
Fees Paid To
Auditors Appointed
At The Annual
General Meeting
2023
73
0
0
0
73
Audit fees are recognised
under administration expenses.
3
2022
78
0
0
0
78
87
EUR’000
Other fixtures and fittings, tools and equipment
Note 5.
Amortisation, Depreciation And Impairment Losses
2021
0
Amortisation, depreciation
and impairment losses
are recognised under
administration expenses.
2020
2
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Wages and salaries
Other social security costs
Total
Production
Fixed assets
Administration
Of which:
Remuneration for executive board
Salaries to other executive officers
Remuneration for board of directors
Total
Average number of full-time employees
Note 4.
Staff Costs
2023
418
0
418
0
0
418
183
0
235
418
2
Staff costs are recognised
under administration
expenses.
4
EUR’000
Exchange gains
Interest income from credit institutions
Interest income from related parties
Dividend
Purchased bond below par
Total financial income
Note 5.
Financial Income
2023
0
1,594
1,955
18,385
0
21,934
Financial income originating
from loans and receivables
measured at amortised cost.
EUR’000
Exchange losses
Interest payables to credit institutions
Interest, relating to IFRS 16
Purchased bond above par
Impairment loss
Other
Total financial expenses
Note 6.
Financial Expenses
2023
76
6,118
0
118
10,784
0
17,096
Financial expenses originating
from financial liabilities
measured at amortised cost.
5
6
2022
420
0
420
0
0
420
185
0
235
420
2
2022
52
854
2,120
151
2,798
5,975
2022
0
6,021
0
0
0
0
6,021
88
Note 7.
Income Taxes
2023
-85
0
0
0
-85
22%
0%
-20%
0%
2%
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Cost 1/1
Additions
Disposals
Write-down
Merger
Exchange adjustments
Cost 31/12
Note 8.
Investments
In Subsidiaries
Of The Group
2023
24,016
-
-
-10,784
-
-53
13,179
7
8
Subsidiary
UAB Idavang
Rus Invest Aps
Rurik A/S
ID 22.09.2023 Aps
Idavang Agro LLC
Idavang LLC
Nordrik Invest LLC
Idavang Luga LLC
Rurik Russia LLC
MPK-Vostochny LLC
Sovhoz Vostochny LLC
Ownership
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Russia
Denmark
Lithuania
Subsidiaries Of The Group
EUR’000
Income tax expense recognised in profit or loss:
Estimated tax on the taxable income for the year
Group taxation contribution
Adjustment regarding prior year
Changes in deferred tax
Income taxes
Reconciliation of tax rate:
Danish tax rate
Ajustment regarding prior year
Not reconnized tax assets
Tax free income
Effective tax rate
Active / No activities
2022
0
0
0
0
0
22%
0%
-22%
0%
0%
1/1 2022
28,623
-
-
-
-6,782
9
21,850
2022
21,850
2,166
-
-
-
-
24,016
89
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Issued bonds
Total
Issued bonds
Total
Book value
50,725
50,725
59,969
59,969
Interest
periodCurrency
EUR
EUR
Avg. nominal
interest
Avg. effective
interest
11.2%
9.1%
Note 9.
Payables
to credit
institutions
and issued
bonds
9
1.75 years
2.75 years
11.6%
9.4%
2023
2022
EUR’000
Non-current liability
Current liability
Book value in total
2023
50,256
469
50,725
Payables to credit institutions
and bonds including interest have
the following maturity terms:
EUR’000
Within 1 year
1-5 years
More than 5 years
Total
2023
6,212
55,199
0
61,411
Quoted bond is included withEUR 469k with 1 year
and 50,711k 1-5 year
Interest rate on issued bond is 3m EURIBOR + 725 bps p.a., quarterly interest payments, EURIBOR floor of 0%.
See Group account note 27 for all bond terms and group account note 25 for repayment profile.
2022
56,082
3,887
59,969
2022
9,476
66,413
0
75,889
90
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Loans and receivables at amortised cost:
Financial assets
Receivables from group entities
Other receivables
Cash
Total receivables and cash measured at amortised cost
Total financial assets
Financial liabilities measured at amortised cost:
Payables to credit institutions
Other payables
Total financial liabilities measured at amortised cost
Total financial liabilities
Note 10.
Financial Assets
And Liabilities
Receivables from group
entities are based on
agreements with 3rd party,
hence assumed equal
to fair value.
Fair value on outstanding
bonds end year is difficult to
evaluate due to high spread,
but as Idavang purchased
30% during first weeks and
sellers after purchases wanted
par, it is Idavang's view that
all bonds below par was
purchased, hence fair value
included with discount on
January purchased bonds.
Fair value 2023
440
18,545
0
25,970
44,515
44,515
49,487
882
50,369
50,369
Carrying amount 2023
440
18,545
0
25,970
44,515
44,515
50,725
882
51,607
51,607
EUR’000
Payables to credit institutions
Issued bonds
Payable to credit institutions
Total
10
12/31
0
50,725
0
50,725
Other
0
242
0
242
Cash flow
0
-9,486
0
-9,486
2023 1/1
0
59,969
0
59,969
Other consist of
Non cash items being
gain from purchase of
bonds (see Note 5) and
expenses on bond
from issue of it.
Fair value 2022
441
16,459
0
23,124
39,583
39,583
47,975
1,270
49,245
49,245
Carrying amount 2022
441
16,459
0
23,124
39,583
39,583
59,969
1,270
61,239
61,239
12/31
0
59,969
0
59,969
Other
0
-2,555
0
-2,555
Cash flow
0
-7,832
0
-7,832
2022 1/1
0
70,356
0
70,356
91
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
EUR’000
Cash
Group cash pool
Total
Note 11.
Cash
2023
9,143
16,827
25,970
EUR’000
Loss bought forward/group taxation
Deferred tax income/(expense)
Deferred tax asset/(liability)
Deferred tax asset/liability is recognised in the balance sheet as follows:
Deferred tax asset
Deferred tax liability
Deferred tax, net
Reconciliation of deferred tax, net:
At 1/1
Transferred in connection with the group taxation
The year’s tax income/expense recognised in profit or loss
The year’s tax income/expense recognised in other comprehensive income
At 31/12
Note 12.
Deferred Tax
1/1 2022
280
0
280
0
280
194
86
0
0
280
11
12
2023
0
0
Income statementBalance sheet
Tax losses carry forward
are capitalized with
EUR 280 thousand (out of
EUR 4,698 thousand) due
to uncertainties of utilizing
it in the future.
2022
0
0
2022
280
0
280
0
280
280
0
0
0
280
Group cashpool,
hence maximum
fully available
amount is limited.
2022
9,065
14,059
23,124
2023
280
0
280
0
280
280
0
0
0
280
92
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 13.
Related Party
Transactions
EUR’000
Subsidiaries:
Idavang LLC
Idavang UAB
Idavang Agro LLC
Rus Invest Aps
Total
385
1,955
2,339
Interest
net
300
300
17,945
18,545
Loan
to/from
2023
EUR’000
Owners:
Shareholders in JAST Holding ApS
Total
Dividend
Management
fee & salary
13
(excluding Remuneration for Board
of Directors and Executive Board)
0
0
16
16
In addition to the related
parties mentioned in
the consolidated financial
statement, Idavang A/S's
related parties include
the subsidiaries set out in
Note 9, executive board
and board of directors.
Note 13.
Related Party
Transactions
EUR’000
Subsidiaries:
Idavang Agro LLC
Rus Invest ApS
Total
371
1,749
2,120
Interest
net
132
16,327
16,459
Loan
to/from
2022
EUR’000
Owners:
Shareholders
in JAST Holding ApS
Total
Dividend
Management
fee & salary
(excluding Remuneration
for Board of Directors
and Executive Board)
0
0
16
16
In addition to the related
parties mentioned in
the consolidated financial
statements, Idavang A/S's
related parties include the
subsidiaries set out in Note 8
and executive board
and board of directors.
+
18,000
18,000
Dividend
Terms
Idavang LLC and
Idavang Agro LLC
dividend declared
last week of December
payable in Q1 2024
and no interest
Rus Invest Aps,
payable on demand
and 12% interest
93
M E N U
NOTES: Parent Company
Financial Statements for the period January 1 - December 31
Note 14.
Contingent Liabilities, Securities And Other Financial Obligations
Contingent liabilities
The Company is taxed on a joint basis with its parent, Jast Holding ApS. The Company is thus jointly and
severally liable for all tax liabilities under the joint taxation arrangement until and including the financial
year ended 31 December 2023.
Securities
The Idavang Group is party of a credit facility agreement with Jyske Bank and Nordic Trustee. Under this
agreement, the following assets are held collateral:
> Receivables from group entities:
- Idavang Agro LLC (Russia) EUR 132K
> Shares in:
- Rus Invest ApS (Denmark)
- Rurik A/S (Denmark)
- Idavang Agro LLC (Russia)
- Idavang Luga LLC (Russia)
- UAB Idavang (Lithuania)
In addition, the following companies in the Idavang group participate in a cross guarantee to Jyske Bank
as the lender of this agreement: all except Russians.
The above mentioned securities have been provided as collaterals for bank mortgages of EUR 71,338
thousand at 31 December 2023.
Other obligations
None
14
Note 15.
Post Balance Sheet Events
No events materially affecting the Company's financial position have occurred subsequent to the
financial year-end.
15
94
Information on reporting entity:
LEI code of reporting entity
Name of reporting entity or other means of identification
Class of reporting entity
Identification number [CVR] of reporting entity
Domicile of entity
Legal form of entity
Country of incorporation
Address of entity's registered office
Telephone number of reporting entity
Homepage of reporting entity
Principal place of business
Description of nature of entity's
operations and principal activities
Name of parent entity
Name of ultimate parent of group
Name and surname of chairman of general meeting
Average number of employees
Dates/locations:
Place of signature of statement by management
Date of approval of annual report
Executive board & Supervisory board:
Name and surname of member of executive board 1
Title of member of executive board 1
Name and surname of member of executive board 2
Title of member of executive board 2
Name and surname of member of supervisory board 1
Title of member of supervisory board 1
Name and surname of member of supervisory board 2
Name and surname of member of supervisory board 3
Name and surname of member of supervisory board 4
Name and surname of member of supervisory board 5
Dates/locations:
Signature of auditors, place
Signature of auditors, date
Auditor 1:
Name and surname of auditor 1
Description of auditor 1
Identification number of auditor 1
Name of audit firm 1
Address of auditor
Auditor 2:
Name and surname of auditor 2
Description of auditor 2
Identification number of auditor 2
5493000WVOJNMTISMP12
lDAVANG A/S
Tofthøjvej 41, DK 7321 Gadbjerg
A/S
Denmark
Tofthøjvej 41, DK-7321 Gadbjerg
Lithuania & Russia
Idavang's core activity is the production
and sale of high-quality slaughter pigs
and Weaners in Russia and Lithuania.
Jast Holding ApS
Jast Holding ApS
lDAVANG A/S
Tofthøjvej 41, DK 7321 Gadbjerg
A/S
Denmark
Tofthøjvej 41, DK-7321 Gadbjerg
Lithuania & Russia
Idavang's core activity is the production
and sale of high-quality slaughter pigs
and Weaners in Russia and Lithuania.
Jast Holding ApS
Jast Holding ApS
5493000WVOJNMTISMP12
IDAVANG A/S
Reporting class D
20956143
Tofthøjvej 41, DK 7321 Gadbjerg
+45 75 87 64 15
www.idavang.com
Michael Henriksen
761
Tofthøj
2024-04-26
Claus Baltersen
CEO
Michael Henriksen
CFO
Niels Hermansen
Chairman
Jytte Rosenmaj
Claus Baltersen
Ole Bjerremand Hansen
Carsten Lund Thomsen
Esbjerg
2024-04-26
Palle H. Jensen
State Authorised Public Accountant
mne32115
Pricewaterhousecoopers
Statsautoriseret Revisionspartnerselskab
Esbjerg Brygge 28, DK 6700 Esbjerg
Birgitte Larsen
State Authorised Public Accountant
mne16564
5493000WVOJNMTISMP12
lDAVANG A/S
Reporting class D
20956143
Tofthøjvej 41, DK 7321 Gadbjerg
Tofthøjvej 41, DK-7321 Gadbjerg
+45 75 87 64 15
www.idavang.com
Michael Henriksen
761
Tofthøj
2024-04-26
Claus Baltersen
CEO
Michael Henriksen
CFO
Niels Hermansen
Chairman
Jytte Rosenmaj
Claus Baltersen
Ole Bjerremand Hansen
Carsten Lund Thomsen
Esbjerg
2024-04-26
Palle H. Jensen
State Authorised Public Accountant
mne32115
Pricewaterhousecoopers
Statsautoriseret Revisionspartnerselskab
Esbjerg Brygge 28, DK 6700 Esbjerg
Birgitte Larsen
State Authorised Public Accountant
mne16564
General data ESEF ESEF hypertags General data DKGAAP DKGAAP hypertags
ESEF page
95
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