XCSE:AOJ-B ESEF Annual Report
BRØDRENE A. & O. JOHANSEN A/S (XCSE:AOJ-B)
ESEF Annual Report
2023-11-01
For: 2023-06-30
View Original
Added on
September 22, 2026
Interim Financial Report
for the Period
1 January – 30 June 2023
Tel: +45 70 28 00 00 * www.ao.dk
CVR (Central Business Register) No.: 58 21 06 17
Company Announcement No. 6/2023 1/17
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 2/17
Contents
Highlights for the second quarter and first half of 2023 ............................................... page 3
Financial and operating data for the AO Group .......................................................... page 5
Management’s review ................................................................................................ page 6-8
Company announcements in 2023 ............................................................................. page 9
Management’s statement .......................................................................................... page 10
Income statement and statement of comprehensive income ..................................... page 11
Balance sheet as at 30 June 2023 ............................................................................. page 12-13
Cash flow statement ................................................................................................... page 14
Statement of changes in equity .................................................................................. page 15
Notes.......................................................................................................................... page 16-17
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 3/17
The Board of Directors has approved the Group’s interim financial report for the period 1 January – 30 June 2023.
Highlights for the second quarter and first half of 2023
• As expected, market conditions were challenging in the second quarter of 2023. Building and construction
activities softened in the period. The normalised price levels for conventional energy sources, in particular gas and
oil, reduced the demand for heat pumps. The steep increase in interest rates dampened the activity in the building
and construction industry.
• Second quarter sales and results were in line with expectations, and AO continued to gain market shares. Margins
were under pressure in April and May. In June, margins rebounded to the June 2022 level.
• B2B activities continued to grow, and the B2B sales index reached 106.5 in the first half of 2023. As expected,
margins took a hit compared to last year due to the one-off gains from price increases in 2022. In the B2C sector,
private consumers reacted stronger than B2B customers towards the cost inflation, and the decrease in demand
continued from the first quarter into the second quarter. The B2C sales index reached 85.5 in the first half of 2023.
• Consolidated revenue for the second quarter of 2023 was DKK 1,266.1 million against 1,318.8 million for the
second quarter of 2022. At the end of the quarter, the overall sales index ended at 96. The B2B sales index ended
at 98 corresponding to index 100 when adjusted for negative foreign exchange impact and the number of working
days in the quarter. The B2C sales index ended at 83. Sales were in line with previous expectations for 2023.
Consolidated revenue for the first half of 2023 was DKK 2,670.3 million, which is DKK 100.2 million, or 3.9%, more
than for the same period last year.
• The gross profit margin for the second quarter of 2023 was down by 0.9 percentage point when compared with the
second quarter of 2022. The main reason is the one-off gain from price increases in 2022. Gross profit went down
by DKK 24.6 million driven by the lower margin and the slightly lower revenue.
• EBITDA for the second quarter of 2023 totalled DKK 92.6 million, corresponding to an EBITDA margin of 7.3%,
against DKK 119.4 million and 9.1% for the second quarter of 2022. EBITDA for the first half of 2023 was DKK
214,5 million, corresponding to an EBITDA margin of 8.0%, against DKK 230.3 million and 9.0% for the first half of
2022.
• Profit before tax (EBT) for the second quarter of 2023 was DKK 57.5 million, which is DKK 33.4 million less than
for the second quarter of last year. Profit before tax (EBT) for the first half of 2023 was DKK 140.8 million, which is
DKK 36.0 million less than for the same period last year. The reduced profit before tax is impacted by DKK 7.0
million higher depreciation expenses and DKK 13.3 million higher interest expenses.
• As at 30 June 2023, the Group’s total assets amounted to DKK 3,345.5 million, which is DKK 146.3 million more
than at the same time in 2023. The increase is primarily attributable to investments in property, plant and
equipment, increasing inventories and trade receivables.
• As at 30 June 2023, the Group’s equity totalled DKK 1,370.6 million, which is DKK 115.1 million more than at the
same time in 2022. The solvency ratio was 41.0% against 39.2% at 30 June 2022.
• Cash flow from operating activities for the second quarter of 2023 was DKK -159.2 million, which is DKK 122.8
million less than for the same period last year. The decrease is primarily attributable to increased working capital,
which is affected by the timing of supplier payments. Inventories were reduced by DKK 73 million in the second
quarter of 2023. Investments for the second quarter of 2023 totalled DKK 37.6 million, compared with DKK 61.5
million for the second quarter of 2022. Investments are primarily related to IT and store network development,
including the introduction of EA assortment in relevant AO stores.
• As at 30 June 2023, net interest-bearing debt totalled DKK 940.3 million against DKK 722.7 million at the same
time in 2022. Net interest-bearing debt was 2.0 times the Last Twelve Months EBITDA. Net gearing is expected to
be reduced for the rest of the year.
• AO has re-assessed the estimated useful lives of the automated warehouses. The re-assessment of the estimated
useful lives from 10 years to 15 years will reduce depreciation by approximately DKK 17 million in 2023.
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 4/17
Expectations for the year
The first half of 2023 confirmed expectations of a strong first quarter and a lower second quarter. Updated
expectations for 2023 are as follows:
• Revenue updated to DKK 5,350-5,500 million from DKK 5.250-5.450 million.
• EBITDA unchanged in the range of DKK 435-465 million.
• Earnings before tax unchanged in the range of DKK 300-330 million. Due to the change in deprecation which will
impact full-year EBT positively by approximately DKK 17 million, EBT is expected to be in the high end of the
range of DKK 300-330 million.
The guidance assumes that demand in the second half of 2023 will continue to be negatively impacted by high cost
inflation and increased interest rates which are expected to dampen activities in the building and construction
industry. Revenue growth is expected to be flat to slightly negative in the second half of 2023. Margins are expected
to be slightly lower than last year.
Albertslund, 17 August 2023
Niels A. Johansen Per Toelstang
CEO CFO
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 5/17
Financial and operating data for the AO Group
(DKKm)
Key figures
H1
2023
H1
2022
Q2
2023
Q2
2022
Full Year
2022
Consolidated revenue
2,670.3
2,570.1
1,266.1
1,318.8
5,375.0
Gross margin
632.9
618.6
299.0
323.6
1,310.3
Earnings before interest, taxes, depreciation
and amortisation (EBITDA)
214.5
230.3
92.6
119.4
491.6
Profit or loss before financial income and expenses (EBIT)
154.6
177.3
65.1
92.3
383.6
Financial income and expenses, net
(13.7)
(0.4)
(7.6)
(1.4)
(6.1)
Profit or loss before tax (EBT)
140.8
176.8
57.5
90.9
377.4
Tax on profit or loss for the period
(30.3)
(38.7)
(12.1)
(19.9)
(83.0)
Net profit or loss for the period
110.6
138.1
45.4
71.1
294.5
Non-current assets
1,771.8
1,713.9
1,771.8
1,713.9
1,727.3
Current assets
1,573.7
1,485.3
1,573.7
1,485.3
1,591.0
Total assets
3,345.5
3,199.2
3,345.5
3,199.2
3,318.3
Share capital
28.0
28.0
28.0
28.0
28.0
Equity
1,370.6
1,255.4
1,370.6
1,255.4
1,407.5
Non-current liabilities
534.5
367.2
534.5
367.2
539.5
Current liabilities
1,440.4
1,576.5
1,440.4
1,576.5
1,371.4
Cash flow from operating activities
(159.2)
(36.4)
(5.2)
73.8
215.8
Cash flow from investing activities
(68.8)
(247.6)
(37.6)
(187.1)
(333.3)
Of which investments in property, plant and
equipment, net
(52.0)
(106.0)
(29.3)
(52.7)
(164.5)
Cash flow from financing activities
193.3
147.8
42.7
113.4
(15.5)
Cash flow for the period
(34.7)
(136.2)
(0.1)
0.1
(102.0)
Financial ratios*
Gross profit margin
23.7%
24.1%
23.6%
24.5%
24.4%
EBITDA margin
8.0%
9.0%
7.3%
9.1%
9.1%
Profit margin
5.8%
6.9%
5.1%
7.0%
7.1%
Return on capital employed**
4.6%
6.0%
2.1%
3.0%
12.7%
Return on equity**
8.0%
11.1%
3.6%
5.8%
22.2%
Net gearing
2.0
1.6
2.0
1.6
1.1
Solvency ratio
41.0%
39.2%
41.0%
39.2%
42.4%
Book value
48.9
44.8
48.9
44.8
50.3
Share price at the end of the period
75.8
72.1
75.8
72.1
83.11
Earnings per share (EPS Basic), DKK***
4.1
5.1
1.7
2.6
10.8
Diluted earnings per share (EPS-D), DKK***
4.1
5.1
1.7
2.6
10.8
Average number of employees
844
795
841
853
822
Average number of employees, incl. external temporary workers
910
864
902
920
889
* Other financial ratios have been calculated in accordance with CFA Society Denmark’s ‘Recommendations and Financial Ratios’.
** Not translated into full-year figures.
*** Basic EPS and diluted EPS have been calculated in accordance with IAS 33.
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 6/17
Management’s review
The consolidated financial statements include the financial statements of Brødrene A & O Johansen A/S and the
wholly owned subsidiaries AO Invest A/S, Billig VVS AS (Norway), Lampeguru AS (Norway), VVSochBad Sverige
AB, and AO Sverige AB.
The Group’s financial development
Consolidated revenue for the second quarter of 2023 totalled DKK 1,266.1 million, which is DKK 52.8 million, or
4.0%, less than last year. The second quarter of 2023 had one working day less than the corresponding quarter a
year ago.
Consolidated revenue for the first half of 2023 totalled DKK 2,670.3 million against DKK 2,570.1 million for the first
half of 2022, corresponding to a growth of DKK 100.2 million or 3.9%. For the first half of 2023, sales growth in the
professional B2B market was 6.5%, countered by a reduction of 14.5% in the private online market. For both
segments, growth has been higher in the second quarter than in the first half of the year. International revenue
accounts for less than 10% of total revenue.
Gross margin for the second quarter of 2023 amounted to DKK 299.0 million, compared with DKK 323.6 million for
the same period of 2022. When compared with the second quarter of 2022, the gross profit margin decreased by 0.9
percentage point to 23.6%. Last year, the second quarter gross profit margin was positively affected by one-off price
increases. Distribution costs for the second quarter constituted 3.9% of revenue, which is 0.1 percentage point less
than in the second quarter of 2022. The lower share of B2C revenue contributes to the reduction. Gross margin for
the first half of 2023 amounted to DKK 632.9 million, compared with DKK 618.6 million last year. The gross profit
margin of 23.7% is reduced by 0.4 percentage point compared with the same period last year. Distribution costs
constituted 3.8% of revenue in the first half of 2023 against 4.0% in the first half of 2022. The lower share of B2C
revenue also contributes to the reduction in distribution costs for the first half of 2023.
Total operating expenses for the second quarter of 2023, amounted to DKK 206.4 million, which is DKK 2.2 million
more than for the same period last year. The development in operating expenses was flat in the second quarter of the
year despite significant cost and salary inflation. Total operating expenses for the first half of 2023 totalled DKK 418.4
million, which is DKK 30.1 million more than for the same period last year. The increase in the first six months is
attributable to the acquisition of EA Værktøj as well as salary increases. Thus, total operating costs, measured as a
percentage of revenue, increased from 15.5% in the second quarter of 2022 to 16.3% in 2023. The increase is mainly
due to the acquisition of EA Værktøj.
In the second quarter of 2023, external expenses totalled DKK 72.8 million, which is DKK 0.8 million more than in the
second quarter of 2022. Despite cost inflation, external expenses were kept stable. External expenses for the first half
of 2023 amounted to DKK 147.5 million, which is DKK 11.7 million more than last year. The increase in the first half of
the year is attributable to the acquisition of EA Værktøj in the second quarter of 2022.
In the second quarter of 2023, staff costs amounted to DKK 133.6 million, an increase of DKK 1.4 million on last
year’s figures for the same period. Compared to the same period last year, the number of FTEs has been reduced by
18, or 2.0%. In the first half of 2023, staff costs totalled DKK 270.8 million, which is DKK 18.3 million more than in the
same period last year. In the first half of 2023, the average number of employees, including temporary workers,
increased by 46 compared with the same period a year ago. The increase is driven by the acquisition of EA Værktøj
in 2022.
Depreciation and amortisation totalled DKK 27.5 million in the second quarter of 2023 and DKK 60.0 million in the first
half of 2023. Compared with the same periods last year, these figures are up by DKK 0.3 million and DKK 7.0 million,
respectively. In the second quarter of 2023, depreciation decreased following the re-assessment of the useful lives of
the automated warehouses.
Operating profit (EBIT) for the second quarter of 2023 was DKK 65.1 million, which is 5.1% of revenue. Compared to
the same period last year, EBIT is DKK 27.2 million lower, and the profit margin is down by 1.9 percentage points.
In the first half of 2023, EBIT was DKK 154.6 million, corresponding to 5.8% of revenue. Compared to the same
period last year, EBIT is DKK 22.7 million lower, and the profit margin is down by 1.1 percentage points.
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 7/17
Financial income and expenses, net, for the second quarter of 2023 were negative at DKK 7.6 million against a
negative of DKK 1.4 million in the second quarter of 2022. Financial income and expenses, net, for the first half of
2023 were negative at DKK 13.7 million, which is DKK 13.3 million more than in the first half of 2022, driven by higher
interest levels, a higher debt level and a negative foreign exchange impact from SEK and NOK.
For the second quarter of 2023, the Group recorded a pre-tax profit of DKK 57.5 million against DKK 90.9 million
reported for the same period last year. For the first half of 2023, the Group recorded a pre-tax profit of DKK 140.8
million, which is DKK 36.0 million less than in the first half of 2022.
Tax is in accordance with applicable tax rates in the areas where the Group is operating, equalling an average tax
rate of approximately 22%.
A post-tax profit of DKK 110.6 million was recorded for the first half of 2023, compared with DKK 138.1 million for the
same period last year.
As at 30 June 2023 the Group’s total assets amounted to DKK 3,345.5 million, which is DKK 146.3 million, or 4.6%,
more than at the same time last year.
Non-current assets of DKK 1,771.8 million are DKK 57.9 million, net, higher than at the same time last year.
Current assets amounted to DKK 1,573.7 million, which is DKK 88.4 million more than at the same time last year.
Inventories increased by DKK 60.0 million to DKK 856.7 million. This increase is attributable to an inventory build-up
of products affected by supply uncertainty in 2022 as well as price increases. In the second quarter of 2023
inventories were reduced by DKK 72.4 million, and further reduction is expected in the second half of 2023. Trade
receivables went up by DKK 22.9 million to DKK 674.2 million. In part, this increase is driven by the increased
revenue from the B2B business. Cash and short-term deposits of DKK 0.3 million are at par with the level one year
ago.
Equity of DKK 1,370.6 million, corresponding to a solvency ratio of 41.0%, is DKK 115.1 million more than at the
same time last year due to earnings after tax minus dividend payments of DKK 142.7 million.
The Group’s payables to credit institutions amount to DKK 844.2 million, which is DKK 232.9 million more than at 30
June 2022.
Trade payables of DKK 871.0 million are DKK 174.3 million lower than at the same time last year. The decrease is
driven by the timing of supplier payments as well as the ongoing inventory reductions.
Other payables of DKK 88.9 million are DKK 9.3 million lower than at the same time last year.
Cash flow from operating activities for the second quarter of 2023 amounted to DKK -5.2 million, which is DKK 79.0
million less than for the same period last year. The timing of supplier payments had a negative impact on the change
in working capital. Cash flow from operating activities for the first half of 2023 amounted to DKK -159.2 million, which
is DKK 122.8 million less than for the first half of 2022. The reduction is due to increased funds tied up in working
capital.
Net investments for the second quarter of 2023 totalled DKK 37.6 million, which is DKK 149.6 million less than for the
same period last year. Net investments for the first half of 2023 totalled DKK 68.8 million, which is DKK 178.8 million
less than for the same period last year. The decrease in investments is driven by the acquisition of EA Værktøj in
2022 as well as an overall lower investment level in 2023. Shareholders received dividend payments of DKK 142.7
million against DKK 122.3 million last year. Lease payments amounted to DKK 16.5 million for the first half of 2023.
Total cash flow for the first half of 2023 is negative at DKK 34.7 million. As at 30 June 2023 the Group’s cash and
short-term deposits totalled DKK 0.3 million, which is DKK 0.4 million less than at 30 June 2022.
The interest-bearing net debt amounted to DKK 940.3 million, and financial gearing was 2.0. Net gearing is expected
to be reduced during the second half of 2023.
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 8/17
Significant risks
As mentioned in the annual report for 2022, under the paragraph ‘Internal controls and risk management’, the
Company assesses on an ongoing basis the most significant risks in connection with the Company’s activities. In
addition to the risks mentioned in the annual report, the Group is sensitive to the overall development in Danish and
Swedish economy as well as business trends in the building industries of these countries.
Incentive programme and treasury shares
An incentive programme may be prepared in accordance with the remuneration policy approved by the Annual
General Meeting on 18 March 2022. The remuneration policy is available in full on the Company’s website
www.ao.dk.
Two incentive programmes where participants are granted a combined total of 119,773 free restricted shares are
currently running. The free restricted shares are expected to be settled through treasury shares already held.
As at 30 June 2023, the Company held a total of 823,900 treasury shares.
Outlook
As mentioned under ‘Expectations for the year’ consolidated revenue in the range of DKK 5,350-5,500 million,
EBITDA of DKK 435-465 million, and EBT in the high end of DKK 300-330 million are expected for 2023.
Events after the end of the interim period
No significant events have occurred after the end of the reporting period.
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 9/17
Company announcements in 2023
Announcement no. 1 Introduction of a share-based incentive programme 19 January 2023
Announcement no. 2 Annual report 2022 22 February 2023
Announcement no. 3 Notice of Annual General Meeting 2023 22 February 2023
Announcement no. 4 Annual General Meeting 2023 16 March 2023
Announcement no. 5 Interim financial report for the first quarter of 2023 27 April 2023
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 10/17
Management’s statement
Executive Board
Board of Directors
Contacts:
Niels A. Johansen/Per Toelstang
Telephone: +45 70 28 00 00
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 11/17
Income statement and statement of comprehensive income
(All amounts are in DKK thousands)
Note:
H1
2023
H1
2022
Q2
2023
Q2
2022
Full Year
2022
Revenue
3
Cost of sales
Distribution costs
(1,935,730 )
(102,677 )
(1,849,528 )
(102,817 )
(917,446 )
(49,955 )
(943,570 )
(52,191 )
(3,855,184 )
(213,071 )
Gross profit
Other operating income
Gross margin
External expenses
(147,516 )
(135,816 )
(72,782 )
(72,001 )
(318,517 )
Staff costs
(270,838 )
(252,510 )
(133,581 )
(132,197 )
(500,240 )
Earnings before interest, taxes,
depreciation and amortisation
(EBITDA)
Depreciation and amortisation
(59,979 )
(53,012 )
(27,455 )
(27,096 )
(108,014 )
Operating profit or loss (EBIT)
Write-down of financial assets
Financial income
Financial expenses
(15,563 )
(3,253 )
(8,537 )
(2,437 )
(9,158 )
Profit or loss before tax (EBT)
Tax on profit or loss for the period
(30,294 )
(38,716 )
(12,130 )
(19,867 )
(82,959 )
Net profit or loss for the period
Other comprehensive income
Items reclassified to the income
statement
Foreign currency translation adjustment
relating to foreign entities
(6,457 )
(347 )
(4,836 )
(430 )
(6,156 )
Tax on other comprehensive income
Other comprehensive income after tax
(6,457 )
(347 )
(4,836 )
(430 )
(6,156 )
Total comprehensive income
Earnings per share
Earnings per share (EPS)
Diluted earnings per share (EPS-D)
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 12/17
Balance sheet
(All amounts are in DKK thousands)
ASSETS
Note:
2023.06.30
2022.06.30
2022.12.31
Non-current assets
Intangible assets
Goodwill
4
Intellectual property rights
Software
Property, plant and equipment
Land and buildings
Leasehold improvements
Fixtures and operating equipment
Right-of-use assets
Other non-current assets
Other Investments
Total non-current assets
Current assets
Inventories
5
Trade receivables
6
Joint taxation contribution
Other receivables
Prepayments and accrued income
Cash and short-term deposits
Total current assets
Total assets
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 13/17
Balance sheet
(All amounts are in DKK thousands)
EQUITY AND LIABILITIES
Note:
2023.06.30
2022.06.30
2022.12.31
Equity
Share capital
Reserve for foreign currency
translation adjustments
(15,101 )
(2,835 )
(8,644 )
Retained earnings
Proposed dividend for the financial year
Total equity
Non-current liabilities
Deferred tax
Credit institutions
Lease liabilities
Frozen holiday pay
Total non-current liabilities
Current liabilities
Credit institutions
Lease liabilities
Trade payables
Corporation tax
Joint taxation contribution payable
Other payables
Provisions for liabilities
Total current liabilities
Total liabilities
Total equity and liabilities
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 14/17
Cash flow statement
(All amounts are in DKK thousands)
H1
2023
H1
2022
Q2
2023
Q2
2022
Full year
2022
Operating profit or loss
Depreciation and amortisation
Other non-cash operating items, net
(23 )
(635 )
(780 )
Cash flow from operations before
change in working capital
Change in inventories
(126,732 )
(21,887 )
(219,340 )
Change in receivables
(42,570 )
(124,981 )
(107,160 )
Change in trade and
other payables
(307,837 )
(5,861 )
(192,241 )
(50,654 )
Total change in working capital
(349,958 )
(257,574 )
(87,897 )
(43,936 )
(181,222 )
Cash flow from operations
(135,434 )
(27,929 )
Net financials paid
(13,719 )
(437 )
(7,616 )
(1,399 )
(6,125 )
Corporation tax paid
(10,046 )
(8,030 )
(1,500 )
(261 )
(89,970 )
Cash flow from operating activities
(159,199 )
(36,396 )
(5,195 )
Purchase of intangible assets
(15,331 )
(14,456 )
(8,242 )
(8,818 )
(41,010 )
Purchase of property, plant and equipment, net
(52,009 )
(105,959 )
(29,337 ) (52,666 ) (164,530 )
Purchase/sale of financial assets
Acquisitions
(1,500 ) (127,163 ) - (125,663 ) (127,763
Cash flow from investing activities
(68,803 )
(247,578 )
(37,579 )
(187,147 )
(333,303 )
Change in amounts owed to credit institutions
(85,975 )
Raising of loans from credit institutions
Repayment of lease liabilities
(16,484 )
(13,350 )
(7,753 )
(6,825 )
(24,169 )
Dividends paid
(142,675 )
(122,292 )
(24,900 )
(21,266 )
(122,292 )
Cash flow from financing activities
Cash flow for the period
(34,667 )
(136,179 )
(76 )
(101,973 )
Cash and short-term deposits at beginning of period
Cash and short-terms deposits at end of period
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 15/17
Statement of changes in equity
Foreign
Proposed
currency
dividend
Share
translation
for the
Retained
Total
Capital
adjustment
financial year
earnings
equity
(8,644 )
(6,457 )
(6,457 )
(6,457 )
(142,675 )
(142,675 )
(4,325 )
(147,000 )
(141,038 )
(15,101 )
(2,488 )
(347 )
(347 )
(347 )
(122,292 )
(122,292 )
(3,708 )
(126,000 )
(122,292 )
(2,835 )
(2,488 )
(6,156 )
(6,156 )
(6,156 )
(122,292 )
(122,292 )
(3,708 )
(126,000 )
(120,749 )
(All amounts are in DKK thousands)
Equity at 1 January 2023
Net profit or loss for the period
Foreign currency translation adjustment
relating to foreign entities
Total comprehensive income
Dividend distribution
Dividend, own shares
Share-based remuneration
Total transactions with owners
Equity at 31 December 2022
Equity at 1 January 2022
Net profit or loss for the period
Foreign currency translation adjustment
relating to foreign entities
Total comprehensive income
Dividend distribution
Dividend, own shares
Total transactions with owners
Equity at 30 June 2022
Equity at 1 January 2022
Net profit or loss for the year
Foreign currency translation adjustment
relating to foreign entities
Total comprehensive income
Dividend distribution
Dividend, own shares
Share-based remuneration
Total transactions with owners
Equity at 31 December 2022
(8,644 )
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 16/17
Notes
1
Accounting policies
The interim financial report has been prepared in accordance with IAS 34 ‘Interim Financial Reporting’ as
adopted by the EU and additional disclosure requirements in the Danish Financial Statements Act.
The accounting policies are unchanged from the accounting policies applied in the consolidated and parent
company financial statements for 2022, to which reference is made. The consolidated and parent company
financial statements for 2022 contain a full description of the accounting policies.
2
Accounting estimates and judgements
Estimation uncertainty
In preparing these interim financial statements, management has made accounting estimates and
assumptions which affect the application of accounting policies and recognised assets, liabilities, income
and expenses. Actual results may deviate from these estimates.
The most significant judgements made by management in applying the Group’s accounting policies and the
key sources of estimation uncertainty are the same as those that applied to the consolidated financial
statements and parent company financial statements for 2022. For a more detailed description of the
estimation uncertainty, reference is made to the consolidated and parent company financial statements for
2022.
AO has re-assessed the estimated useful lives of the automated warehouses. The re-assessment of the
estimated useful lives from 10 years to 15 years will reduce depreciation by approximately DKK 17 million in
2023.
3
Segment information
The Group operates primarily in Denmark, and less than 10% of its revenue relates to foreign countries. This
was also the case in the first half of 2022. The Group has not traded with any individual customer
representing more than 10% of the Group’s total revenue. This was also the case in the first half of 2022. The
Group has activities within the B2B segment and the B2C segment. The two segments share the same chief
operating decision maker but are identified as separate operating segments in the internal management
reporting.
SEGMENT INFORMATION Q2 2023
SEGMENT INFORMATION Q2 2022
B2B
B2C
Total
B2B
B2C
Total
Revenue
1,138.3
127.7
1,266.1
Revenue
1,165.0
153.8
1,318.8
Cost of goods sold
- 836.2
- 80.8
- 917.0
Cost of goods sold
- 840.6
- 102.4
- 943.0
Product margin
302.1
46.9
349.0
Product margin
324.4
51.4
375.8
Distribution
- 39.7
- 10.3
- 50.0
Distribution
- 41.2
- 11.0
- 52.2
Gross margin
262.4
36.6
299.0
Gross margin
283.2
40.4
323.6
Direct expenses
- 126.7
- 29.2
- 155.9
Direct expenses
- 125.1
- 30.5
- 155.6
EBITDA before indirect expenses
135.7
7.4
143.1
EBITDA before indirect expenses
158.1
9.9
168.0
Indirect expenses
- 50.5
Indirect expenses
- 48.6
EBITDA
92.6
EBITDA
119.4
Key figures
B2B
B2C
Total
Key figures
B2B
B2C
Total
Gross margin %
23.1%
28.7%
23.6%
Gross margin %
24.3%
26.3%
24.5%
EBITDA (before indirect expenses) %
11.9%
5.8%
11.3%
EBITDA (before indirect expenses) %
13.3%
6.4%
12.7%
EBITDA %
7.3%
EBITDA %
9.1%
Brødrene A & O Johansen A/S
Interim financial report for H1 2023
Company Announcement No. 6/2023 17/17
Segment information continued
SEGMENT INFORMATION H1 2023
SEGMENT INFORMATION H1 2022
B2B
B2C
Total
B2B
B2C
Total
Revenue
2,397.2
273.1
2,670.3
Revenue
2,250.8
319.3
2,570.1
Cost of goods sold
- 1,760.7
- 174.0
- 1,934.7
Cost of goods sold
- 1,640.7
- 208.0
- 1,848.7
Product margin
636.5
99.1
735.6
Product margin
610.1
111.3
721.4
Distribution
- 81.5
- 21.2
- 102.7
Distribution
- 78.5
- 24.3
- 102.8
Gross margin
555.0
77.9
632.9
Gross margin
531.6
87.0
618.6
Direct expenses
- 251.5
- 61.6
- 313.1
Direct expenses
- 228.5
- 62.6
- 291.1
EBITDA before indirect expenses
303.5
16.3
319.8
EBITDA before indirect expenses
303.1
24.4
327.5
Indirect expenses
- 105.3
Indirect expenses
- 97.2
EBITDA
214.5
EBITDA
230.3
Key figures
B2B
B2C
Total
Key figures
B2B
B2C
Total
Gross margin %
23.2%
28.5%
23.7%
Gross margin %
23.6%
27.2%
24.1%
EBITDA (before indirect expenses) %
12.7%
6.0%
12.0%
EBITDA (before indirect expenses) %
13.5%
7.6%
12.7%
EBITDA %
8.0%
EBITDA %
9.0%
4
Goodwill and intangible assets
The annual impairment test of intangible assets, including goodwill and intellectual property rights, is
performed at 31 December 2023, after the completion of budgets and strategy plans for the coming period.
At 30 June 2023, management is of the opinion that there has been no indication of impairment of the
carrying amount of goodwill and intellectual property rights, and therefore no impairment test of goodwill and
intellectual property rights has been performed at 30 June 2023.
5
Inventories
No unusual inventory write-downs or reversals of inventory write-downs have been recorded in the period.
6
Trade receivables
An estimate is used to assess the recoverability of receivables according to the same principles as applied
in the financial statements for 2022.