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As approved on the company’s
annual general meeting on
8 March 2024.
Claus Eskildsen
Chairman of the meeting
2023
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Content
02
Corporate Information
03
Management’s Statement
04
Independent Auditor’s Report
07
Management’s Review
15
Consolidated Financial Statements
61
Parent Company Financial Statements
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Corporate Information
BioMar Group A/S
Værkmestergade 25, 6.
8000 Aarhus C
Denmark
Phone: (+45) 86 20 49 70
www.biomar.com
CVR-no.: 38 57 06 17
Financial year: 1 January– 31 December
Board of Directors
Jens Bjerg Sørensen, Chairman
Asbjørn Reinkind, Deputy Chairman
Jørgen Dencker Wisborg
Anders Wilhjelm
Executive management
Carlos Diaz, CEO
Shareholders
The Group is a 100% subsidiary of:
Aktieselskabet Schouw & Co.
Chr. Filtenborgs Plads 1
8000 Aarhus C
Denmark
Approval and publication
Annual general meeting on 1 March 2024.
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Management’s Statement
The Board of Directors and the Executive Management have considered and approved the annual report for
2023 for BioMar Group A/S.
The consolidated and parent company financial statements have been prepared in line with IFRS Accounting
Standards as adopted by the EU and further requirements in the Danish Financial Statements Act.
In our opinion, the consolidated and parent company financial statements give a true and fair view of the Group’s
and the parent company’s financial position on 31 December 2023, and of the results of the Group’s and the
parent company’s operations and cash flows for the financial year ended 31 December 2023.
In our opinion, the management’s review includes a fair view on the development and performance of the Group
and the parent company, the financial results, and cash flows for the year and of the financial position, together
with a description of the significant risks and uncertainties that the Group and parent company face.
We recommend the annual report to be
adopted by the shareholders at the annual general meeting.
Aarhus, 1 March 2024
Executive Management:
Carlos Diaz
CEO
Board of Directors:
Jens Bjerg Sørensen
Chairman
Asbjørn Reinkind
Deputy Chairman
Jørgen Dencker Wisborg
Anders Wilhjelm
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Independent Auditor’s Report
To the Shareholders of BioMar Group A/S
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.
We have audited the Consolidated Financial
Statements and the Parent Company Financial
Statements of BioMar Group A/S for the financial
year 1 January - 31 December 2023, which
comprise statements of income and comprehensive
income, balance sheet, statement of changes in
equity, cash flow statement and notes, including
material accounting policy information for both the
Group and the Parent Company (“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 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, and we have fulfilled our other ethical
responsibilities in accordance with these
requirements and the IESBA Code. We believe that
the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Statement on the Management's
Review
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 during the audit, or otherwise
appears to be materially misstated.
Moreover, it is our responsibility to consider
whether Management’s Review provides the
information required under the Danish Financial
Statements Act.
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. We did not
identify any material misstatement in
Management’s Review.
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Independent Auditor’s Report
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 in preparing the financial statements
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.
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 conducted in accordance with
ISAs and the additional requirements applicable in
Denmark, we exercise professional judgment 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 over-ride of internal
control.
• 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 in preparing the financial
statements 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 and the Parent
Company to cease to continue as a going
concern.
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Independent Auditor’s Report
• Evaluate the overall presentation, structure,
and contents 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 Grou
p
t
o express an opinion on the Consolidated
Financial Statements. We are responsible for
the direction, supervision, and performance of
the group audit. We remain solely responsible
f
or 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.
Aarhus, 1 March 2024
PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
CVR No 33 77 12 31
C
laus Lindholm Jacobsen
State Authorised Public Accountant
mne23328
R
une Kjeldsen
State Authorised Public Accountant
mne34160
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Management’s Review
BioMar at a glance
BioMar is one of the world’s leading suppliers of
high-performance quality feed for the aquaculture
industry. Globally, BioMar Group supplies
aquaculture feed to more than 45 different fish and
shrimp species in more than 80 countries. The main
products are feed made for salmon and trout,
seabass, and seabream as well as shrimp. In 2022,
BioMar Group moved with the acquisition of AQ1
into an adjacent industry to the aquaculture
business of Technology.
The Group’s activities are based on geography and
business focus divided into five operational
divisions: SALMON, EMEA, LATAM, ASIA and
TECH.
The SALMON division covers operations in Norway,
Scotland, Chile and Australia. The division supplies
high-yielding feed for Atlantic salmon, Pacific
salmon, and trout. The EMEA division covers the
EMEA region and involves all operations other than
salmon. The division has production facilities in
Denmark, France, Spain, Greece, and Turkey. The
LATAM division covers.
Latin American shrimp and fish territories other than
salmon, with a special focus on hatchery products.
The division has production facilities in Ecuador and
Costa Rica. The ASIA division covers a broad range
of species relevant for this region including shrimp.
The division has two production facilities in China
and one in Vietnam. The TECH division covers
operations within farming technology in Latin
America and Australasia.
The five operational divisions enable the most
appropriate business models in the individual
markets with the aim to achieve best practice and
positive synergies across the geographical
markets.
The Group employs more than 1,900 employees
end of 2023 of which more than 200 are employed
in the Group’s joint ventures in China and Turkey.
The share of employees employed abroad
constitutes approx. 90% of the total head count.
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Financial Highlights and Key Ratios
Comparative figures for 2019-2020 have not been adjusted for changed accounting policies regarding the IFRIC agenda decision
concerning configuration or customisation costs in a cloud computing arrangement and Put option over a non-controlling interest (IFRS
10).
Financial highlights and key ratios
2023 2022 2021 2020 2019
Volume aqua feed
Tonnage in 1,000 tons 1,437 1,456 1,446 1,341 1,250
(in million DKK)
Profit and loss
Revenue 17,878 17,861 13,300 11,649 11,180
Operating profit before depreciations (EBITDA) 1,250 1,013 889 972 966
Operating profit (EBIT) 860 602 540 642 659
Net financials -212 -23 -46 -68 -33
Profit before tax 654 709 539 538 676
Profit for the year 484 556 398 396 541
Invested capital
Investments in property, plant and equipment 201 228 133 147 438
Non-current assets 4,288 4,542 4,290 3,816 4,260
Current assets 6,893 7,163 5,714 4,693 4,516
Total assets 11,181 11,705 10,004 8,509 8,776
Equity 3,125 3,190 2,917 2,664 2,857
Cash flows
Cash flows from operating activities 665 299 241 1,028 328
Cash flows from investing activities -207 -447 -336 -131 -543
Cash flows from financing activities -562 156 50 -845 198
Cash flows for the year -104 8 -46 52 -17
Key ratios
EBIT-margin (%) 4.8 3.4 4.1 5.5 5.9
Return on equity (%) 15.3 18.2 14.3 14.3 19.9
Solvency ratio (%) 27.9 27.3 29.2 31.3 32.6
ROIC excl.goodwill (%) 22.1 16.1 15.9 18.5 18.9
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Definitions of Key Ratios
Financial performance
Income statement
BioMar Group realised record high earnings full
year of 2023. Revenue was in line with last year due
to reduced prices and exchange rate developments.
By adding all the feed companies in the Group
managed by BioMar, including joint ventures,
BioMar ends with a record year surpassing the DKK
1 billion EBIT mark and a corresponding EBITDA of
more than DKK 1.4 billion of which China and
Turkey accounted for DKK 0.2 billion. A
consolidated EBITDA for 2023 of DKK 1.25 billion is
at a satisfactory level and above expectations.
Sales volume for the full year of 2023 was
marginally lower than 2022, equal to 1%. Full-year
revenue for 2023 amounted to DKK 17,878 million,
which is marginally higher than 2022, but based on
a lower sales volume. Exchange rate developments
had a significant negative effect on the full-year
revenue for 2023 of approximately DKK 1,100
million mainly due to a weakened NOK against
DKK.
SALMON division reported a combined deduction in
sales volume driven by Norway, but also Chile.
Operations in Australia and Scotland have reported
an increase in sales volume compared to 2022. The
lower sales volume reflected reduced contract
positions, because BioMar has prioritised long-term
relationships with fish farmers, but were also due to
biological factors and earlier harvest of fish stock
biomass. However, the market momentum was
supported by a broad product offering and a focus
on commercial excellence, so the division’s
earnings improved substantially.
Operating profit
(EBIT-margin)
Return on Equity (%)
Solvency rate (%)
4.8 %
15.3 %
27.9 %
Operating profit
Revenue
Profit for the year
Average equity
Equity
Total assets
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LATAM division reported substantial improvements
in sales volume compared to 2022. Earnings
improved attributable to stronger contract positions
in a market otherwise challenged by low prices on
farmed shrimp. BioMar continues to strengthen its
offering of products, concepts, and services mainly
in the Ecuadorian market where the company has
added new production capacity in 2023 by investing
in two new extrusion lines, which are fully
operational.
EMEA division reported sales volume slightly below
the level of 2022, primarily driven by the markets of
the Mediterranean region. Earnings increased
significantly compared to 2022, primarily due to
non-recurring provisions recognised in connection
with the decision to stop all sales activities in Russia
following the invasion of Ukraine in 2022.
ASIA division reported a combined volume increase
compared to 2022, mainly driven by Chinese
activities. The operation in Vietnam is still under
development. Sales volume has increased but is
still not satisfactory, and earnings are still impacted
by costs incurred for market build-up purposes.
Operations in the Tech Division, which was
established after the acquisition of AQ1, reported an
increase in revenue. The division reported a slight
drop in earnings, primarily reflecting investments in
strategic initiatives, new people and competencies
to bring further positive value to BioMar through
high-quality product offerings and being able to
further accelerate the growth both in current and
new markets.
EBITDA for 2023 amounted to a record high DKK
1,250 million compared to DKK 1,013 million in
2022, which was better than the most recent
guidance range provided after Q3 2023 and
announced by the parent company Schouw & Co.
Exchange rate developments had a negative effect
of approximately DKK 74 million compared to 2022.
Shrimp farming in Vietnam has faced disease
outbreaks and low settlement prices, combined with
challenging competition from more efficient farming
in Ecuador, all of which have severely impacted the
anticipated developments following BioMar’s
acquisition of Viet-Uc feed activities. As a result,
BioMar has written down the carrying amount of
goodwill relating to Viet-Uc by DKK 36 million, which
amount has been recognised as depreciation and
impairment.
BioMar manufactures fish feed in China and Turkey
through two 50/50 joint ventures with local partners.
These activities are not consolidated, but due to
their large growth potential, being strongly
represented in these markets, is very important to
BioMar. The three factories reported a combined
revenue of DKK 1,844 million (100% basis) and
EBITDA of DKK 179 million for 2023, against
revenue of DKK 1,665 million and EBITDA of DKK
120 million in 2022. The result was achieved
through continuous expansion of the customer
portfolio focusing on value creation and
simultaneous cost control.
The associated businesses include the Chilean fish
farming company Salmones Austral and three
minor businesses, LetSea, ATC Patagonia and LCL
Shipping. These non-consolidated joint ventures
and associates are recognised in the 2023
consolidated financial statements with a negative
profit at DKK 38 million, against DKK 80 million
profit after tax in 2022. The considerable decline
was largely attributable to a fair value adjustment of
the biomass in Salmones Austral.
Balance Sheet
Working capital increased from DKK 1,977 million
on 31 December 2022 to DKK 2,141 million on 31
December 2023, mainly driven by increased trade
receivables, whereas inventories and trade
payables were reduced. BioMar is experiencing an
increasing demand from customers requesting
longer credit terms and delays in payments as well.
Inventories decreased substantially from structured
inventory reductions, but also generally lower raw
material prices despite record high fish oil prices.
Supplier debt decreased despite focused credit
term optimisation. Lower raw material prices, lower
sales volume in Q4 2023 and exchange rate
developments are the main reasons.
BioMar Group facilitates a factoring and reverse
factoring (supply chain financing) program funded
by credit institutions. The main purpose and
benefits with the program are to reduce commercial
risk and to develop and strengthen long-term
relations with its suppliers of raw materials in a
commodity market. As a company, BioMar supports
long-term relationships with customers, suppliers,
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and other stakeholders. This is one of the guiding
principles of the business to support its Purpose
Statement.
The use of supply chain financing program is
reducing raw material costs and finance costs in
BioMar’s value chain. The program funds growth
and innovation for suppliers, which is an advantage
for BioMar’s product innovation, and it secures the
supply chain according to the strategy and future
growth. Utilisation of supply chain financing fell from
DKK 980 million on 31 December 2022 to DKK 764
million at 31 December 2023, primarily due to a
change in few suppliers where the process of
onboarding the new suppliers in the SCF facility has
taken longer time than expected. Currency
fluctuations impacted the net working capital
positively by approximately DKK 90 million mainly
due to lower USD and AUD against DKK.
ROIC excluding goodwill increased to 22.1% on 31
December 2023 from 16.1% at 31 December 2022
reflecting a significant increase in EBITA earnings,
while average invested capital decreased.
Cash Flow Statement
Cash flow from operating activities amounts to DKK
665 million compared to DKK 299 million in 2022.
The significant increase is due to higher earnings
and reduced impact from working capital compared
to 2022, however, partly offset by higher financial
costs and tax payments.
Cash flow from investment activities amounts to
DKK -207 million compared to DKK -447 million in
2022, an increase of DKK 240 million. The increase
is mainly driven by the acquisition of AQ1 Systems
in April 2022 and reduced investments in
productions facilities and equipment during 2023
compared to 2022.
Cash flow from financing activities amounts to DKK
-562 million compared to DKK 156 million in 2022.
The development is mainly related to 2022 where
BioMar made substantial drawdowns on the Group
financing facilities to settle external finance facilities
and higher investments.
Financial Resources
Net interest-bearing debt amounts to DKK 2,531
million compared to DKK 2,507 million end of 2022,
an increase of DKK 24 million, mainly due to the
need for financing the increase in working capital.
BioMar is partially financed through the parent
company with committed facilities towards third-
party financial institutions that exceed 12 months.
Business development
BioMar endeavours to be a strong long-term partner
to all its stakeholders. BioMar will stay focused over
the coming quarterly periods on taking advantage of
the downwards trends in prices of raw materials
where possible. In addition, BioMar will be strongly
focused on delivering on the company’s
sustainability ambitions, which are demanded by
customers and consumers, and which are essential
for long-term value creation.
Sustainability efforts form an integral part of
BioMar’s strategy, which includes a focus on the
use of alternative raw materials and on generally
reducing the climate impact. BioMar’s strategy also
centres on a commercial excellence program
intended to strengthen customer service and exploit
earnings potential.
In August 2022, BioMar announced together with an
Icelandic partner the ambition to construct a net-
zero emission aquaculture feed production plant in
Iceland. Exploration and negotiations have ended,
and BioMar is looking into other ways of
establishing a feed production plant in Iceland
alone.
In December 2019, the Chilean competition
authority indicted four Chilean fish feed producers,
including BioMar Chile, on charges of concerted
practice. The charges are based on isolated
circumstances related to the Chilean fish feed
industry during the 2003-2015 period. BioMar Chile
does not acknowledge the charges, and the
company intends to rebut the charges that it has
participated in concerted practices to restrict
competition in the industry. After a period with little
progress, the process has accelerated although
there is still no indication of a likely outcome.
Reference is made to note 18 for further disclosure.
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Outlook
The long-term demand for farmed fish and shrimp
is generally developing favourably in many markets,
and there are no immediate indications of any
significant changes to this trend. BioMar is well
positioned to take advantage of this trend both with
high quality and ever more sustainable feed
solutions, as well as cutting edge farming
technology. In the short- to medium-term, the
current significant price volatility in raw materials
and energy markets, including the selling prices of
farmed fish and shrimp worldwide, will impact short-
term results. Specifically for shrimp markets, feed
volume and value, and investments have been and
will continue to be impacted negatively by the
currently low shrimp prices.
BioMar is currently investing to upgrade its global
ERP cloud-based platform and state-of-art
manufacturing systems. The substantial
investments made weighs on earnings both in 2023
and in the coming years but will also bring BioMar
to a next level of digitalisation, higher efficiency,
more transparency, live data interaction with
customers, and global excellence processes.
BioMar expects to generate full-year 2024 revenue
of about DKK 17.5-18.5 billion, but changing market
conditions and volatile prices of raw materials may
as always impact the revenue forecast
substantially. Given the current outlook, BioMar
expects 2024 EBITDA in the range of DKK 1,210-
1,290 million.
The non-consolidated associates and joint ventures
are recognized at a share of profit after tax. The
share of profit after tax is expected to improve to
around DKK 70 million in 2024.
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Other statements
Risk Management
The Board of Directors and management in BioMar
assess and monitor on an ongoing basis the risks
to which the company is exposed as well as
management and mitigation of those risks. Risks
are defined as the risk of the company not achieving
its short- and long-term objectives. The risk
management strategy comprises the
implementation of a number of procedures and
policies in order to identify measure and manage
relevant risks. The Group is, among others,
exposed to strategical, operational, and financial
risks. Reference is made to note 21 for a more
detailed description of the financial risks.
The strategical risks mainly relate to the risk of
BioMar not achieving its long-term objectives but
can also impact the fulfilment of short-term
objectives. BioMar typically classifies the risk
according to two criteria being the likelihood for a
certain event to occur and the financial impact if that
event occurs. Based on an overall assessment of
each risk, actions to mitigate the risks are prioritised
and implemented. It is assessed that the risks
BioMar are exposed to are common for the industry.
Research & Development
It is BioMar’s objective to be recognised as an
innovative company which through research and
development activities delivers competitive
products and technical related services to its
customers. BioMar invests annually an amount in
the level of 12-15% of the result from operations in
research and development and has engaged highly
educated specialists in this field. In addition, BioMar
has a long tradition for cooperating with research
institutes in several countries, as well as fish
farmers are often involved in the development
processes.
Corporate Social Responsibility
In accordance with section 99a of the Danish
Financial Statements Act, BioMar has not published
an individual report for corporate social
responsibility as it has been incorporated in the
consolidated report for the parent company Schouw
& Co., to which reference is made.
Gender Composition
In accordance with the section 99b of the Danish
Financial Statements Act and section 139c of the
Danish Companies Act, BioMar Group has an
individually defined policy for gender composition.
The diversity policy in BioMar Group
BioMar Group is an international company working
across borders and cultures. In BioMar, we believe
diversity, equity, and inclusion are fundamental
factors releasing the full human potential of society.
As a socially responsible company, we must
facilitate underrepresented talent to thrive,
experience development opportunities, and to be
selected into relevant roles. As a part of our work,
we have defined a diversity policy, which is
published at our webpage:
https://www.biomar.com/our-story/our-
values/global-policies.
The policy has as its purpose to increase and
ensure value creation in BioMar Group by
increasing focus on relevant diversity in the
company and at the different management levels.
BioMar is committed to increasing and safeguarding
value creation in the company through encouraged
collaboration between people with different
backgrounds. Focus on diversity in the employee
composition is a supporting factor for breadth and
variation of expertise and for enhancing innovation,
engagement and qualified decision making.
BioMar strives to be an attractive and stimulating
workplace with a culture that appeals to and retains
the most qualified employees. It is our ambition to
create equal career opportunities for all employees
by promoting diversity in collaboration. A particular
focus is set to promote the underrepresented
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gender, as a factor driving general diversity and
equity.
The purpose of the company's targets and efforts
on diversity is to ensure a corporate culture
supporting diversity. We strive to minimise barriers
of conscious and unconscious bias which could
potentially restrict diversity or counteract equal
employment or career opportunities.
Actions to achieve equal gender distribution
In 2023, a female board member decided to leave
the board, decreasing gender diversity at board
level. The headhunting process for the open
position has focus on increasing gender diversity to
the level of 2022 through a targeted search for a
female candidate with relevant experience.
To increase gender diversity at the other
management levels, BioMar implemented a new
diversity policy enhancing executive focus on
gender diversity. In the policy it is stated that the
underrepresented gender must be represented
among the final candidates when recruiting for
management positions.
Targets for gender distribution in management
As a long-term goal, BioMar Group A/S strives to
achieve equal gender distribution on the company’s
Board of Directors and at other management levels.
An equal gender distribution is to be understood as
each gender making up at least 40 per cent of the
managers at each management level.
The company’s Board of Directors and other
management levels consist of relatively few people
and consequently, the proportion of men and
women is easily influenced by few, and sometimes
unforeseen, changes. The development in gender
composition at the company’s management levels
should be viewed over an extended period of time.
As this reporting is only targeted management
employed in BioMar Group A/S, it does not fully
represent the gender diversity at management level
in BioMar Group or in the portfolio of consolidated
companies in BioMar Group. Several of the
management members are not employed directly in
the Danish company BioMar Group A/S, but in other
of the companies in the group.
2023
4
0
40
2027
7
29
40
2027
I
n accordance with the Danish Business Authority’s
guideline on target figures, policies, and reporting
on the gender composition of management, BioMar
fulfils the equitable gender distribution at other
management levels.
Data ethics
In accordance with section 99d of the Danish
Financial Statements Act, BioMar Group has not
published an individual policy for data ethics as it
has been incorporated in the consolidated report for
the parent company Schouw & Co., to which
reference is made.
Information about the account for corporate social
responsibility, gender composition and data ethics
can be retrieved from the parent company’s website
at:
www.schouw.dk/en/responsibility/corporate-
governance
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1
6 Statements of Income and Comprehensive Income
1
7 Balance Sheet
19 Statement of Change in Equity
20 Cash Flow Statement
21 Notes
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STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(DKK 1,000)
Note INCOME STATEMENT 2023 2022
1 Revenue 17,878,356 17,860,745
2,4 Operating expenses -16,628,697 -16,829,636
5 Other operating income
9,793 5,505
Other operating expenses
EBITDA 1,250,243 1,012,552
3 Depreciation and amortisation -354,204 -354,748
3 Goodwill impairment -35,797 -55,353
EBIT 860,242 602,451
6 Share of profit after tax, associates -38,407 79,682
6 Share of profit after tax, joint ventures 44,665 50,131
7 Financial income 64,951 140,668
8 Financial expenses -277,250 -163,629
Profit before tax 654,201 709,303
9 Tax on profit for the year -170,670 -153,759
Profit for the year
Profit for the year attributable to:
Shareholders of BioMar 461,332 532,483
Non-controlling interests 22,199 23,061
Profit for the year
483,531 555,544
Other comprehensive income
Items that have been or may subsequently be reclassified to the income statement:
Exchange rate adjustments,
foreign entities -168,239 73,535
Value adjustments of hedging instruments:
- Value adjustments for the year -1,643
- Value adjustments tranferred to production costs
Other comprehensive income in subsidiaries, associates and joint ventures
Hyperinflation adjustment
9
Other comprehensive income after tax -166,287 87,389
Total comprehensive income
317,244 642,933
Comprehensive income attributable to:
Shareholders of BioMar 307,868 595,492
Non-controlling interests 9,376 47,441
Total comprehensive income
317,244 642,933
Tax on items that have been or may subsequently be reclassified to
the income statement
14,052
10,515
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986
-2,986
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483,531 555,544
-14,052
4,501
8,600
4,546
-9,209 -24,062
-8,713
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BALANCE SHEET AT 31 DECEMBER
(DKK 1,000)
Note ASSETS 2023 2022
Goodwill 1,104,787 1,177,310
Customer relations 52,453 77,890
Brands 16,131 17,895
Technology 154,397 180,940
Other intangible assets 56,879 34,292
10 Intangible assets 1,384,647 1,488,327
Land and buildings 797,080 789,337
Plant and machinery 790,593 751,630
Other plant, fixtures and operating equipment 51,155 39,183
Assets under construction 76,718 163,088
11 Property, plant and equipment 1,715,546 1,743,238
6 Investments in associates 405,028 487,964
6 Investments in joint ventures 198,218 182,005
12 Right of use assets 372,200 390,484
Securities 2,011 1,365
15 Deferred tax 56,271 70,993
14 Receivables 154,127 177,742
Other non-current assets 1,187,855 1,310,553
Total non-current assets 4,288,048 4,542,118
13 Inventories 2,227,836 2,853,441
14 Receivables 4,303,024 3,940,572
Income tax 142,768 39,597
Prepayments 35,471 30,814
Cash and cash equivalents 183,770 298,852
Total current assets 6,892,869 7,163,276
Total assets
11,180,917 11,705,394
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BALANCE SHEET AT 31 DECEMBER
(DKK 1,000)
Note EQUITY AND LIABILITIES 2023 2022
Share capital 250,000 250,000
Other reserves 57,421 221,170
Retained earnings 2,043,799 1,930,288
Proposed dividend 350,000 350,000
Share of equity attributable to the parent company 2,701,220 2,751,458
Non-controlling interests 424,040 438,728
Total equity 3,125,260 3,190,186
15 Deferred tax 157,202 208,719
16 Interest bearing debt 279,007 311,382
Other debt 5,400 -
Total non-current liabilities 441,609 520,101
16 Interest bearing debt 3,449,894 3,323,121
17 Trade payables and other debt 3,960,856 4,583,441
Deferred income - 399
Income tax 203,298 88,146
Total current liabilities 7,614,048 7,995,107
Total liabilities 8,055,657 8,515,208
Total equity and liabilities 11,180,917 11,705,394
Notes without reference:
28% 27%
18 Contingent liabilities and guarantees
21 Financial risk management
22 Acquisitions
23 Fees to auditors appointed by the general meeting
24 Related party transactions
25 Group structure
26 New financial reporting regulations
27 Material accounting policy information
28 Significant accounting estimates and judgements
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STATEMENT OF CHANGES IN EQUITY
(DKK 1,000)
Share
capital
Hedge
transaction
reserve
Exchange
rate
adjustment
reserve
Hyper-
inflation
reserve
Retained
income
Proposed
dividend
Total
Non-
controlling
interests
Total equity
Equity at 31 December 2021 250,000 -7,488 154,762 - 1,772,382 350,000 2,519,656 396,920 2,916,576
Change of accounting policy put option/NCI - -
Change of accounting policy SaaS - -
Restated equity at 1 January 2022 250,000 -7,488 154,762 - 1,772,382 350,000 2,519,656 396,920 2,916,576
Comprehensive income in 2022
Profit for the year 11,056 171,427 350,000 532,483 23,061 555,544
Other comprehensive income
Value adjustments of hedging instruments 24,567 24,567 24,567
Exchange rate adjustments of foreign entities 49,972 49,972 23,563 73,535
Other comprehensive income in subsidiaries,
associates and joint ventures
169 169 817 986
Hyperinflation adjustment -2,986 -2,986 -2,986
Tax on other comprehensive income -8,713 -8,713 -8,713
Other comprehensive income - 15,854 49,972 -2,986 169 - 63,009 24,380 87,389
Comprehensive income - 15,854 49,972 8,070 171,596 350,000 595,492 47,441 642,933
Transactions with shareholders:
Dividend distributed -350,000 -350,000 -17,557 -367,557
Capital increase - -
Additions of non-controlling interest - 11,924 11,924
Value adjustment of put option -13,690 -13,690 -13,690
Transactions with shareholders - - - - -13,690 -350,000 -363,690 -5,633 -369,323
Equity at 31 December
2022
250,000 8,366 204,734 8,070 1,930,288 350,000 2,751,458 438,728 3,190,186
Equity at 1 January 2023 250,000 8,366 204,734 8,070 1,930,288 350,000 2,751,458 438,728 3,190,186
Comprehensive income in 2023
Profit for the year -7,057 118,389 350,000 461,332 22,199 483,531
Other comprehensive income 250,000 8,366 204,734 1,013 2,048,677 700,000 3,212,790 460,927 3,673,717
Value adjustments of hedging instruments -15,695 -15,695 -15,695
Exchange rate adjustments of foreign entities -154,143 -154,143 -14,096 -168,239
Other comprehensive income in subsidiaries,
associates and joint ventures
- -
Hyperinflation adjustment 8,600 8,600 8,600
Other adjustment on equity 3,228 3,228 1,273 4,501
Tax on other comprehensive income 4,546 4,546 4,546
Other comprehensive income - -11,149 -154,143 8,600 3,228 - -153,464 -12,823 -166,287
Comprehensive income - -11,149 -154,143 1,543 121,617 350,000 307,868 9,376 317,244
Transactions with shareholders:
Dividend distributed -350,000 -350,000 -24,064 -374,064
Capital increase - -
Additions of non-controlling interest - -
Value adjustment of put option -8,106 -8,106 -8,106
Transactions with shareholders - - - - -8,106 -350,000 -358,106 -24,064 -382,170
Equity at 31 December 2023
250,000 -2,783 50,591 9,613 2,043,799 350,000 2,701,220 424,040 3,125,260
SHARE CAPITAL
The share capital is unchanged and consists of 100,000 shares with a nominal value of DKK 2,500. All shares carry equal rights. The Group does not hold
own shares.
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CASH FLOW STATEMENT
(DKK 1,000)
Note 2023 2022
EBITDA 1,250,243 1,012,552
19 Changes in working capital -190,090 -504,597
Net interest paid
-207,723 -102,266
Income taxes paid
Cash flow from operating activities
20 Purchase of intangible assets -30,741 -22,821
20 Purchase of property, plant and equipment -201,482 -227,517
Sale of property, plant and equipment 1,115 2,058
22 Acquisition of subsidiaries, net of cash - -210,989
Dividend from associates and joint ventures 29,258 9,606
Acquisition of associates -1,175 -
Loan to associates - -
Loan to customers -6,288 -
Addition/disposal of other financial assets 3,455 3,576
Investment in/sale of securities -698 -413
Cash flow from investing activities
-206,556 -446,500
20 Proceeds from borrowings - 25,237
16 Re-payment of lease debt -126,847 -130,872
Increase (re-payment) of intra-group balances -95,646 972,385
16 Increase (re-payment) of debt to credit institutions 34,153 -354,868
Dividend distributed -374,064 -367,557
Capital increase non-controlling shareholders - 11,924
Cash flow from financing activities
-562,404 156,249
Cash flow for the year -103,800 8,472
Cash, and cash equivalents at 1 January 298,852 261,708
Exchange rate adjustments of cash and cash equivalents -11,282 28,672
Cash and cash equivalents at 31 December
183,770 298,852
Of the total cash and cash equivalents balance DKK 27.4 million is situated in Russia and consequently considered
restricted cash as it is restricted for use only in the country in which it is held unless certain approvals of transfer
internationally are obtained.
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665,160
-106,966
298,723
-187,270
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
1
2023 2022
13,125,874 13,508,692
EMEA 2,961,818 2,853,866
Other segments 1,790,664 1,498,187
17,878,356 17,860,745
17,165,488 17,255,797
Other products 712,868 604,948
17,878,356 17,860,745
2
OPERATING EXPENSES 2023 2022
Cost of sales, including write-down of inventories -14,773,122 -14,931,178
Staff costs -711,893 -672,705
Other costs -1,143,682 -1,225,753
Total operating expenses -16,628,697 -16,829,636
Research and development costs included in operating expenses -99,428 -97,158
3 DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES
2023 2022
-36,949 -55,353
-52,324 -46,379
Depreciation of property, plant and equipment -174,022 -176,474
Depreciation of lease assets -126,706 -131,895
Total depreciation, amortisation and impairment losses -390,001 -410,101
4
STAFF COSTS 2023 2022
Wages and salaries -604,862 -574,776
Defined contribution pension plans -39,356 -35,685
Other social security costs -60,206 -55,691
Share-based payments -7,469 -6,553
Total staff costs -711,893 -672,705
Average number of employees 1,613 1,589
Remuneration to executive management and board of directors
Wages and salaries -5,748 -5,209
Pension -119 -103
Short term bonus -2,290 -1,962
Long term bonus -1,067 -
Share-based compensation -2,633 -2,372
Total remuneration to executive management and board of directors -11,857 -9,646
REVENUE
Revenue is split per reporting segment as follows:
Salmon
Total revenue
Aqua feeds
Total revenue
In the above disaggregation of revenue segments and/or product types comprising 10% or more of the total revenue have
been presented seperately.
Revenue is split per product type as follows:
Executive Management is part of a 3-year long-term incentive program, based on the achievement of certain targets. Sales
volume, EBITDA and ROIC determine the amount of the incentive payout.
Amortisation of intangible assets
With reference to section 98 b (3) of the Danish Financial Statements Act remuneration to the Executive Board and Board
of Directors is disclosed combined. Key management personnel is defined to be Executive Management.
Impairment of intangible assets
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
4 STAFF COSTS (continued)
BONUS SCHEMES
Share-based payments
OUTSTANDING
OPTIONS
Executive
Management
Others Total
Average
exercise
price in
DKK (1)
Fair value
(DKK) per
option (2)
Total fair
value in
tDKK (2)
Exercisable
from
Exercisable
until
Granted in 2019 25,000 40,000 65,000 574.3 71.47 4,646 March 2022 March 2023
Granted in 2020 27,000 52,000 79,000 523.4 44.1 3,484 March 2023 March 2024
Granted in 2021 30,000 55,000 85,000 678.2 125.37 10,656 March 2024 April 2025
Granted in 2022 30,000 55,000 85,000 527.1 68.35 5,810 March 2025 April 2026
Total outstanding options
at December 31
st
2022
112,000 202,000 314,000
Granted in 2023 30,000 55,000 85,000 577.5 96.55 8,207 March 2026 April 2027
Lapsed from 2019 grant -25,000 -40,000 -65,000
Exercised from 2020 grant -27,000 -22,000 -49,000
Total outstanding
options at December
31
st
2023
90,000 195,000 285,000
(1) exercised after 4 years (at the latest possible date)
(2) at the date of grant
2023
grants
2022
grants
2021
grants
2020
grants
Expected volatility 25.03% 24.82% 31.58% 22.21%
Expected term 47 mth 49 mth 49 mth 48 mth
Expected dividend per share
15 DKK 14 DKK 14 DKK 13 DKK
Risk-free interest rate 2.66% -0.17% -0.54% -0.97%
The expected volatility is calculated as 12 months' historical volatility based on average prices. If the option holders have not
exercised their share options within the specified period, the share options will lapse without any compensation to the
holders. Exercise of the share options is contingent on the holder being in continuing employment during the above-
mentioned periods. If the holder leaves the company before a share option vests, the holder may in some cases have a right
to exercise the share option early during a four-week period following Schouw & Co.'s next stock announcement. In the
event of early exercise the number of share options will be reduced proportionally.
Executive Management and executive committee management in BioMar Group are covered by the parent company Schouw
& Co.'s share option programme. The programme entitles participants to acquire shares in Schouw & Co. at a price based
on the officially quoted price at the time for granting (2023: DKK 567.50) plus a premium (2023 allocation: 2%) from the date
of grant until the date of exercise. The exercise price is adjusted less ordinary dividends, which, however, cannot exceed the
accrued premium. The costs related to the programme are calculated according to "Black & Scholes" and are expensed as
staff costs linearly over the period of the option and settled to the parent company.
Executive Management is covered by short-term bonus schemes regarding achievement of a number of both financial and
operational objectives. An amount corresponding to a maximum of 5 months of remuneration is paid out provided all the
objectives are achieved.
In 2023 49,000 options were exercised at an average price of DKK 513.33.
Fair value assumptions:
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
5
6 INVESTMENTS IN ASSOCIATES, JOINT VENTURES AND JOINT OPERATIONS
Name
2023 2022
Salmones Austral S.A. Puerto Montt, Chile 23% 23%
Aquaculture Technology Centre Patagonia S.A. Lenca, Chile 30% 30%
LetSea AS Dønna, Norway 34% 33%
LCL Shipping Ltd. Grangemouth, Scotland 40% 40%
AQ1 Systems (Asia) company limited Bangkok, Thailand 49% 49%
BioMar-Sagun TTK Söke, Turkey 50% 50%
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Wuxi, China 50% 50%
Material associates
Financial information for associates that are considered material to the Group adjusted for different accounting practices.
2023 2022
Revenue 1,950,569 2,175,138
Result after tax -189,495 296,915
Current assets 1,691,021 1,753,483
Non-current assets 2,088,143 2,262,858
Current liabilities 1,181,672 862,361
Non-current liabilities 1,108,155 1,327,955
Share of profit -43,408
68,014
OTHER OPERATING INCOME
In 2023, BioMar Group has received DKK 3.7 miliion in government grants (2022: DKK 1 million).
Equity interest
Salmones Austral S.A.
BioMar Group has the following investments in associates and joint ventures, all recognised to the Group's share of the net
equity. BioMar Group's equity interests are consistent with its voting rights.
Country and city of
incorporation
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
6 INVESTMENTS IN ASSOCIATES, JOINT VENTURES AND JOINT OPERATIONS (continued)
Immaterial associates and joint ventures
Financial information for associates and joint ventures that individually are considered immaterial to BioMar Group.
2023 2022
Share of profit from continuing operations, associates 5,001 11,668
Share of profit from continuing operations, joint ventures 44,665 50,131
Carrying amount of investments in associates and joint ventures
2023 2022
The Group's share of equity in material associates
341,164 418,289
Goodwill regarding material associates 10,960 11,329
52,904 58,346
194,962 178,749
Goodwill regarding immaterial joint ventures 3,256 3,256
603,246 669,969
Recognised as investments in associates 405,028 487,964
Recognised as investments in joint ventures 198,218 182,005
Total investments 603,246 669,969
Joint operations
Financial information for joint operations that individually are considered immaterial to BioMar Group:
2023
2022
Share of profit -4 -109
7 FINANCIAL INCOME
2023 2022
35,453 24,898
16,558 4,787
12,935 16,692
Adjustment earnout - 94,287
Fair value adjustments of financial assets measured through profit and loss 5 4
Total financial income 64,951 140,668
8
2023 2022
-95,877 -61,897
-153,112 -65,413
-10,745 -12,499
-17,516 -23,820
Total financial expenses -277,250 -163,629
The Group's share of equity in individually immaterial associates
The Group's share of equity in individually immaterial joint ventures
Total carrying amount of investments in associates and joint ventures
Pro-rata consolidated enterprises in which BioMar Group holds a 50% equity share; BioMar Aquacorporation Products S.A.
The investment in the enterprise is a joint arrangement, in which the BioMar Group in cooperation with an external partner
shares control of the production capacity in the jointly operated enterprise. As both partners contribute and thus control a
proportion of the assets and liabilities, the constructions are classified as joint operations.
Financial costs to group enterprises
Exchange rate adjustments
Interest income etc.
Financial income from group enterprises
Exchange rate adjustments
FINANCIAL EXPENSES
Interest expenses etc.
Interests from lease liabilities
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note
9
2023 2022
-170,670 -153,759
4,546 -8,713
-166,124 -162,472
Tax on the profit for the year has been calculated as follows:
-206,261 -159,316
29,108 1,530
Change in deferred tax due to change in corporate tax rates -1,168 2,010
7,651 2,017
-170,670 -153,759
Specification of tax on the profit for the year:
-143,507 -159,092
Adjustment of calculated tax in foreign subsidiaries relative to 22% -9,098 -23,555
-1,246 36,520
-6,869 5,131
-11,233 -9,357
-2,462 2,010
6,052 2,017
- 23
123 -1,542
-2,430 -5,914
-170,670 -153,759
Specification of the tax on profit for the year
P
rofit before tax
654,201 709,303
Share of profit in associates & JVs
6,258 129,813
Profit before tax excluding share of profit in associates and JVs 647,943 579,490
C
orporate tax rate in Denmark
22.0% 22.0%
Tax in foreign subsidiaries adjusted relative to 22%
4.3% 4.5%
Weighted consolidated income tax rate
26.3% 26.5%
26.1% 21.7%
(DKK 1,000)
Tax effect of:
Other non-deductible costs and non-taxable income
Adjustments from change in corporate tax rates
Adjustments of prior periods tax charge
Adjustments of prior periods tax charge
Total tax recognised in the income statement
Withholding taxes
Calculated 22% tax on the profit for the year
Current tax
Deferred tax
TAX ON PROFIT FOR THE YEAR
Tax on profit for the year is specified as follows:
Tax on profit for the year
Tax on other comprehensive income
Total tax
Share of profit/loss in associates and jv´s
Total tax recognised in the income statement
Effective tax rate
Tax loss this year not recognised
Use of tax assets not previously recognised
Reassessments of recognised tax assets
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note
9
Tax on other comprehensive income
Before tax Tax After tax
-168,239 - -168,239
Value adjustments of hedging instruments -15,695 4,546 -11,149
Hyperinflation adjustment 8,600 - 8,600
Other comprehensive income in subsidiaries,
associates and joint ventures
4,501 - 4,501
Total tax on other comprehensive income -170,833 4,546 -166,287
Before tax Tax After tax
73,535 - 73,535
Value adjustments of hedging instruments 24,567 -8,713 15,854
Hyperinflation adjustment -2,986 - -2,986
Other comprehensive income in subsidiaries,
associates and joint ventures
986 - 986
Total tax on other comprehensive income 96,102 -8,713 87,389
Exchange rate adjustments of foreign entities
The Pillar Two legislation was enacted in Denmark in December 2023 and the legislation will be effective for the Danish
Group’s financial year beginning 1 January 2024. The legislation implies that Schouw & Co. will be required to pay top-up
tax on profits of its subsidiaries to the Danish tax authorities if these are locally taxed at an effective tax rate of less than
15% (minimum tax). If the relevant BioMar jurisdictions have enacted local top-up tax rules, the top-up tax will be paid
locally and included in the BioMar Group annual report.
BioMar Group is in the process of assessing the potential exposure arising from the complex Pillar Two legislation. The
assessment is based on the latest available tax filings and country-by-country reporting for 2022 and the latest financial
information for 2023. The assessment is currently not completed.
The assessment carried out so far indicates that the main part of the jurisdictions should not be exposed to the Pillar Two
legislation, because the effective tax rate is 15% or higher. Since the assessment is still in progress, exposure may exist in
other jurisdictions. Hence, quantitative information to indicate potential exposure to Pillar Two income taxes is presently not
known or reasonably estimable.
Schouw & Co. is engaged with tax specialists to assist with the assessment and expects to complete the assessment in
the first of half of financial year 2024.
2023
Exchange rate adjustments of foreign entities
2022
(DKK 1,000)
TAX ON PROFIT FOR THE YEAR (continued)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
10
INTANGIBLE ASSETS
Goodwill
Customer
relations
Brands Technology
Other intan-
gible assets
Total
Cost at 1 January 1,232,663 199,
806 24,403 272,600 115,088 1,844,560
Exchange rate adjustments -39,916
-6,526 -796 -8,900 -1,024 -57,162
Additions -
- - - 30,741 30,741
Additions from acquisitions - - - - - -
Disposals -
- - - -126 -126
Transferred/reclassified -
- - - - -
Cost at 31 December 1,192,747 193,
280 23,607 263,700 144,679 1,818,013
Amortisation and impairment at 1 January -55,353
-121,916 -6,508 -91,659 -80,796 -356,232
Exchange rate adjustments 3,190
4,196 236 3,298 1,101 12,021
Impairment -35,797
- - - -1,152 -36,949
Amortisation - -23,107 -1,204 -20,942 -7,071 -52,324
Amortisation and impairment of disposed assets - - - - 118 118
Transferred/reclassified -
- - - - -
Amortisation and impairment at 31 December -87,960
-140,827 -7,476 -109,303 -87,800 -433,366
Carrying amount at 31 December 1,104,787 52,
453 16,131 154,397 56,879 1,384,647
Goodwill
Customer
relations
Brands Technology
Other intan-
gible assets
Total
Cost at 1 January 1,056,277 167,186 22,981 234,398 89,874 1,570,716
Change of accounting policy -
Restated cost at 1 January 1,056,277 167,
186 22,981 234,398 89,874 1,570,716
Exchange rate adjustments 45,086
8,321 1,422 12,352 1,916 69,097
Additions - - - - 22,821 22,821
Additions from acquisitions 131,300 24,299 - 25,850 - 181,449
Disposals - - - - -192 -192
Transferred/reclassified - - - - 669 669
Cost at 31 December 1,232,663 199,806 24,403 272,600 115,088 1,844,560
Amortisation and impairment at 1 January - -95,750 -4,980 -67,715 -74,935 -243,380
Exchange rate adjustments - -5,421 -286 -3,767 -134 -9,608
Impairment -55,353 - - - - -55,353
Amortisation - -20,745 -1,242 -20,177 -4,215 -46,379
Transferred/reclassified - - - - -1,512 -1,512
Amortisation and impairment at 31 December -55,353 -121,916 -6,508 -91,659 -80,796 -356,232
Carrying amount at 31 December 1,177,310 77,890 17,895 180,941 34,292 1,488,328
2023
2022
By the end of 2023 BioMar Group has contractual obligations regarding purchase of intangible assets of DKK 3 million, not yet
delivered (2022: DKK 0 million).
Other intangible assets consists mainly of IT projects, but also includes various ongoing and completed development projects of
which DKK 28.4 million (2022: DKK 11.6 million) is under development at the reporting date.
Customer relations, brands and technology all comprise assets identified as part of a business combination. None of the assets
are patented. The identified assets besides goodwill have an expected useful life between 5 and 20 years.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
10
A
SSETS
GOODWILL
CGU specific
assumptions:
Carrying
amount of
goodwill
Yearly
growth in
revenue
Growth rate
in terminal
period
Discount
rate before
tax
Carrying
amount of
goodwill
Yearly
growth in
revenue
Growth rate
in terminal
period
Discount
rate before
tax
EMEA 80,392 3.5% 2.0% 10.3% 80,346 6.2% 2.0% 8.6%
Chile 301,588 0.0% 2.0% 15.4% 311,758 1.1% 2.0% 16.7%
Vietnam - n/a 2.0% 13.5% 37,986 n/a 2.0% 15.0%
AQ1 116,433 22.0% 2.0% 13.2% 120,397 31.1% 2.0% 14.8%
Ecuador 606,374 12.1% 2.0% 17.2% 626,823 12.9% 3.0% 17.8%
1,104,787 1,177,310
Sensitivity analysis
As part of the preparation of impairment tests, sensitivity analyses are prepared on the basis of relevant risk factors and
scenarios that management can determine within reasonable reliability. Sensitivity analyses are prepared by altering the
estimates with a range of probable outcomes in discount rate, revenue growth, earning margins and working capital
employment. In total there is a large headroom for BioMar Group, however, the impairment tests for Chile and Ecuador are
sensitive towards stress test of the assumptions.
With a calculated headroom in the impairment test for Ecuador of 8%, the test is sensitive towards changes in the key
assumptions of earnings margin and revenue growth rate. For the Ecuador impairment test, the earnings margin can be
reduced by 5% and the yearly growth in revenue can be reduced to 10.3% before there is a need for impairment. For Chile, the
headroom in the impairment test is 6% with sensitivity towards the key assumptions of earnings margin and discount rate. For
the Chile impairment test, the earnings margin can be reduced by 5% and the discount rate before tax increased to 15.9%
before there is a need for impairment.
The management of BioMar Group has tested the value in use of the carrying amounts against goodwill in BioMar group
companies. In the tests performed, the senior management of the respective companies has estimated the expected free
cash flow for a five year budget period for the years 2024-2028. The free cash flow after tax has been applied to a discounted
cash flow model (the "value in use” principle) for the purpose of assessing each company's value which subsequently is
compared against the carrying amount recognised in the BioMar Group consolidated financial statements. As of 31 December
2023 BioMar Group has recognised goodwill at a total value of DKK 1,105 million (2022: DKK 1,177 million).
The discount rates are based on a WACC consisting of a 10-year unit bond plus a premium reflecting industry/geography-
specific risks, illiquidity premium and capital structure. The rate of growth used to extrapolate company cash flows in the
terminal period was fixed at 2%, a rate not expected to exceed the long-term inflation rate.
Goodwill is ascribed to the EMEA Division and to the activities in Chile, Ecuador, and AQ1. BioMar Group operates in an
expanding industry driven by global population growth, rising standards of living, sustainable fishery and technological
development. Market research institutes expect a long-term market growth in feed for fish farming, driven by the increasing
global demand for fish, including a mid-term growth for salmon for 2024, of average 4%. BioMar management expects higher
growth rates for the shrimp markets in Ecuador and Technology market and lower market growth in the established fish
farming markets especially in Europe. Where the expected CGU growth rates in the budget period 2024-2028 below are
different from those for the whole market BioMar expects to capture market shares. The assumed production capacity for the
budget period will cover the expected increase in the business activities and no productivity enhancements and cost savings
have been assumed for that period. BioMar's feed is mainly based on marine and vegetable raw materials for which a
significant part of the price fluctuations are included in the price adjustment mechanism in the sales contracts. Net sales,
earning margins, discount rate and future growth assumptions constitute the most important assumptions in the calculation
for all the CGUs. In the budget period 2024-2028, earning margins are based on the assumptions behind the 2023 realised.
The impairment tests made at 31 December 2023 resulted in a write down of of the remaining goodwill related to BioMar's
activities in Vietnam. The write-down is a result of the country for some time having struggled with Covid-19 and the shrimp
markets with low prices and diseases which has significantly delayed and altered the business plan.
The impairment tests did not result in other write-down of carrying amounts.
2023
2022
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note
11
PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Plant and
machinery
Other plant,
fixtures and
operating
equipments
Assets
under
construction
Total
Cost at1 January 1,359,107 2,388,017 201,027 163,088
4,111,239
Exchange rate adjustments -47,566 -68,840 -7,243 -3,
379 -127,028
Additions 48,519 66,632 22,255 64,076
201,482
Additions from acquisitions - - - - -
Disposals -947 -5,540 -3,534 - -
10,021
Transferred/reclassified 32,109 110,079 4,879 -147,
067 -
Cost at 31 December 1,391,222 2,490,348 217,384 76,718
4,175,672
Depreciation at 1 January -569,770 -1,636,387 -161,844 - -
2,368,001
Exchange rate adjustments 19,285 47,793 5,623 - 72,
701
Reversed depreciations on disposals 799 4,981 3,416 - 9,
196
Depreciation -44,456 -116,142 -13,424 - -
174,022
Transferred/reclassified - - - - -
Depreciation at 31 December -594,142 -1,699,755 -166,229 - -
2,460,126
Carrying amount at 31 December
797,080 790,593 51,155 76,718
1,715,546
Land and
buildings
Plant and
machinery
Other plant,
fixtures and
operating
equipments
Assets
under
construction
Total
Cost at 1 January 1,313,734 2,336,144 193,621 75,081
3,918,580
Exchange rate adjustments -7,002 -19,860 -2,042 -430
-29,334
Additions 40,749 54,073 9,298 123,397
227,517
Additions from acquisitions - - 984 - 984
Disposals -1,831 -1,567 -1,339 - -
4,737
Transferred/reclassified 13,457 19,227 505 -34,960
-1,771
Cost at 31 December 1,359,107 2,388,017 201,027 163,088 4,111,239
Depreciation at 1 January -537,394 -1,547,760 -150,602 - -
2,235,756
Exchange rate adjustments 10,679 26,248 1,878 - 38,
805
Reversed depreciations on disposals 201 1,580 1,029 - 2,810
Depreciation -44,358 -117,967 -14,149 - -
176,474
Transferred/reclassified 1,102 1,512 - - 2,
614
Depreciation at 31 December -569,770 -1,636,387 -161,844 - -2,368,001
Carrying amount at 31 December
789,337 751,630 39,183 163,088
1,743,238
(DKK 1,000)
2023
2022
By the end of 2023 BioMar Group has contractual obligations of DKK 52 million (2022: DKK 44 million) regarding purchase
of tangible assets, not yet delivered. The contracted assets are mainly regarding a new vessel in Australia.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
12
RIGHT OF USE ASSETS
Ships
Land and
buildings
Other lease
assets
Total
Cost at 1 January 606,159
179,809 69,345 855,313
Exchange rate adjustment -37,911
-5,231 -1,538 -44,680
Additions -
1,103 9,375 10,478
Disposals -
-268 -8,654 -8,922
Re-measure / modification of lease assets 73,210
33,150 14,249 120,609
Cost at 31 December 641,458 208,563 82,777 932,798
Depreciation at 1 January -313,665
-103,117 -48,047 -464,829
Exchange rate adjustment 18,004
3,916 1,093 23,013
Depreciation -81,870
-27,455 -17,381 -126,706
Depreciation and impairment of disposed assets -
264 7,660 7,924
Depreciation at 31 December -377,531
-126,392 -56,675 -560,598
Carrying amount at 31 December
263,927
82,171 26,102 372,200
Recognised in the profit and loss statement
Variable
lease
pay
ments
Service
Small value
assets
Short term
leases
Total
Expensed in the year - - - 38,528
38,528
Interest Installment
Total
IFRS 16 capitalised lease assets 10,745
126,847
137,592
Total cash outflows for leases
176,120
Ships
Land and
buildings
Other lease
assets
Total
Cost at 1 January 558,642
185,164 60,021 803,827
Exchange rate adjustment -27,492 -4,871 447 -31,916
Additions -
360 8,656 9,016
Disposals -
-294 -5,620 -5,914
Re-measure / modification of lease assets 75,009
-550 5,841 80,300
Cost at 31 December 606,159
179,809 69,345 855,313
Depreciation at 1 January -241,649 -77,432 -36,490 -355,571
Exchange rate adjustment 15,363
2,016 30 17,409
Depreciation -87,379 -27,917 -16,599 -131,895
Depreciation and impairment of disposed assets - 216 5,012 5,228
Depreciation at 31 December -313,665 -103,117 -48,047 -464,829
Carrying amount at 31 December
292,494
76,692 21,298 390,484
Recognised in the profit and loss statement
Variable
lease
pay
ments
Service
Small value
assets
Short term
leases
Total
Expensed in the year - - 364 30,044
30,408
Interest Installment
Total
IFRS 16 capitalised lease assets 12,499 130,872
143,371
Total cash outflows for leases
173,779
2023
2022
At the end of 2023 BioMar Group has no contractual obligations regarding leased assets (2022: DKK 0 million). For
information about lease debt reference is made to note 16 and 21.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
13
INVENTORIES 2023 2022
Raw materials 1,553,115
2,021,622
Biological assets 42,710 109,792
Finished goods 632,011 722,027
Total inventories 2,227,836 2,853,441
Carrying amount of inventories recognised at fair value less costs to sell
42,710 109,792
Significant assumptions determining fair value of biological assets
2023 2022
The value of biological assets is comprised of the following:
Biological assets below 1 kg -
9,113
Biological assets between 1 and 4 kg 42,710 45,051
Biological assets above 4 kg - 55,628
Total value of biological assets 42,710 109,792
Total volume of biological assets as at 31 December
t
2023: 1,175 tons (2022: 2,777 tons).
Value adjustments of biological assets taken to profit and loss:
Fair value adjustment of biological assets -
18,453 13,589
Profit on sale of biological assets 23,053 48,555
Total value adjustments 4,600 62,144
The estimate of fair value of biological assets will always be based on uncertain assumptions. Estimates are applied to the
following factors; biomass volume, the size distribution, the quality of the biomass and market prices. Forward prices are
bas
ed on prices on the recognised exchange fish pool as at 31 December 2023.
Biological assets comprise fish at sea in connection with R&D trial concessions and are according to IAS 41 and IFRS 13
measured at fair value less costs to sell. Biological assets measured at fair value are recognised at level 3 in the fair value
hi
erarchy as valuation is based on factors not derived from observable markets.
The model applied by BioMar Group divides the fish into three weight categories and assumes the following:
Biological assets with an average live weight of more than 4 kg (ready for harvesting) are measured at fair value (net sale
price), and biological assets between 1 and 4 kg in average live weight are measured at fair value less costs to sell
i
ncluding a proportionate expected net profit at harvest.
Other biological assets as fry, smolt and fish with an average live weight of less than 1 kg are likewise measured at fair
value, but due to the limited biological transformation, hence the limited market and related observable prices, accumulated
c
osts are deemed to be the best approximation of fair value at this biological stage.
Fair value adjustments and income arising from biological assets are recognised as gross profit with DKK 5 million (2022:
DKK 62 million).
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
14
RECEIVABLES
2023 2022
Trade receivables 3,328,587 3,134,524
Interest-bearing receivables 1,014,273 829,143
Other receivables 114,291 154,647
Total receivables 4,457,151 4,118,314
Non-current receivables 154,127 177,742
Current receivables 4,303,024 3,940,572
Total 4,457,151 4,118,314
Credit risks
Provision for expected credit losses
2023 2022
Provision at 1 January -125,022 -125,094
Exchange rate adjustments 13,654 -4,247
Provision for expected credit losses -6,037 -44,705
Realised in the year 32,110 49,024
Provision at 31 December -85,295 -125,022
BioMar Group's credit risks are primarily related to trade receivables. According to the group policy all significant customer
relations are continouosly credit rated. Credit insurances are taken out when deemed commercial rational compared to the
credit risk. Of the trade receivables as per 31 December 2023 DKK 1,059 million (2022: DKK 1,306 million) are covered by
credit insurance.
Related to trade receivables, BioMar Group holds collateral for a total amount of DKK 270 million (2022: DKK 253 million).
Collaterals primarily relates to securities in assets consisting of biological assets and fish farming equipment.
Interest bearing receivables mainly comprise deposits on the parent company's cash pool facility.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
14 RECEIVABLES (continued)
The Group's trade receivables and expected losses are specified as follows:
2023 Not due Total
Trade receivables 2,715,122 263,965 251,028 183,767 3,413,882
Impairment -28,175 -2,059 -9,189 -45,872 -85,295
Trade receivables, net 2,686,947 261,906 241,839 137,895 3,328,587
Proportion of trade receivables expected to be settled
97.5%
Impairment ratio 1.0% 0.8% 3.7% 25.0% 2.5%
2022 Not due Total
Trade receivables 2,785,263 164,170 97,612 212,501 3,259,546
Impairment -27,266 -1,505 -826 -95,425 -125,022
Trade receivables, net 2,757,997 162,665 96,786 117,076 3,134,524
Proportion of trade receivables expected to be settled
96.2%
Impairment ratio 1.0% 0.9% 0.8% 44.9% 3.8%
The expected credit losses and default rates are distributed as follows:
2023 Total
High-risk markets -9,477 1.1% -776 1.1% -4,622 11.2% -32,612 28.3% -47,487
Medium-risk markets -16,669 1.3% -1,197 0.7% -4,455 2.4% -13,206 23.5% -35,527
Low-risk markets -2,030 0.4% -87 0.3% -112 0.4% -52 0.4% -2,281
Total expected credit losses -28,176 -2,060 -9,189 -45,870 -85,295
2022 Total
High-risk markets -9,003 1.2% -1,008 1.4% -433 1.0% -53,758 52.0% -64,202
Medium-risk markets -16,618 1.2% -400 0.7% -321 0.9% -40,595 40.5% -57,934
Low-risk markets -1,644 0.3% -97 0.3% -71 0.3% -1,074 12.1% -2,886
Total expected credit losses -27,265 -1,505 -825 -95,427 -125,022
Not due
1-30 days
31-90 days
> 91 days
The risk assessments are based on a combination of a country and market credit rating and an entity specific risk
assessment.
Low-risk markets mainly consist of entities from the Salmon Division, whereas high-risk markets mainly are related to the
EMEA and LATAM Divisions. Medium-risk markets are a combination of entities from all divisions.
Maturity analysis
Maturity analysis
Maturity analysis
Maturity analysis
1-30 days
31-90 days
> 91 days
Not due
31-90 days
> 91 days
1-30 days
1-30 days
31-90 days
> 91 days
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
15
DEFERRED TAX 2023 2022
Deferred tax 1 January, net -137,726 -123,506
Exchange rate adjustments 4,885 -6,627
Adjustment from change in corporate tax rate -1,168 2,014
Transfer to or from income tax payable - 1,749
Deferred tax for the year recognised in profit and loss statement
28,532 2,893
Deferred tax for the year recognised in other comprehensive income 4,546 -1,712
Additions from acquisitions - -12,537
Deferred tax at 31 December, net -100,931 -137,726
Deferred tax is recognised in the balance sheet as follows:
Deferred tax asset 56,271 70,993
Deferred tax liability -157,202 -208,719
Deferred tax at 31 December, net -100,931 -137,726
Deferred tax pertains to:
Intangible assets -56,433 -67,964
Property, plant and equipment -89,514 -91,640
Current assets 13,194 -8,380
Other liabilities 31,569 29,988
Tax loss carry-forwards 253 270
Total deferred tax -100,931 -137,726
As per 31 December 2023 BioMar Group has unrecognised deferred tax assets of DKK 10 million (2022: DKK 9 million). It is
assessed that it is not probable that the tax assets can be recovered through future taxable profits.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
15
DEFERRED TAX (continued)
Balance at
1 January
Acquisitions
/
divestments
Exchange
rate
adjustments
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31 December
Intangible assets -67,964 - 2,046 9,485 -56,433
Property, plant and equipment -91,640 - 2,466 -11 -329 -89,514
Other current assets -8,381 - 1,697 18,564 1,314 13,194
Other liabilities 29,989 - -1,307 -674 3,561 31,569
Tax losses 270 - -17 253
Total changes in deferred tax -137,726 - 4,885 27,364 4,546 -100,931
Balance at
1 January
Acquisitions
/
divestments
Exchange
rate
adjustments
Recognised
in the profit
for the year
Recognised
in equity
Balance at
31 December
Intangible assets -53,381 -12,537 -2,847 801 -67,964
Property, plant and equipment -85,861 - -3,280 -2,499 -91,640
Other current assets -5,856 - -1,584 -941 -8,381
Other liabilities 17,034 - 718 13,949 -1,712 29,989
Tax losses 4,558 - 366 -4,654 270
Total changes in deferred tax -123,506 -12,537 -6,627 6,656 -1,712 -137,726
2023
2022
BioMar Group has applied the temporary exception issued by IASB in May 2023 from the accounting requirements for deferred
taxes in IAS 12. Accordingly, BioMar Group neither recognises nor discloses information about deferred tax assets and
liabilities to Pillar Two income taxes.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
16 INTEREST BEARING DEBT
2023 2022
2,998,482 2,912,
381
25,358 28,189
318,321 287,996
Leasing debt (long-term) 253,649 283,193
Leasing debt (short-term) 133,091 122,744
Total interest bearing debt 3,728,901 3,634,503
3,728,901 3,634,503
2023
Balance at
1 January
Cash flows
Exchange
rate adj.
Other
Balance at 31
December
2,912,381 95,387 -9,286 - 2,998,482
Credit institutions (long-term) 28,189 - 7 -2,838 25,358
Credit institutions (short-term) 287,996 34,153 -6,666 2,838 318,321
Leasing debt (long-term) 283,193 - -15,760 -13,784 253,649
Leasing debt (short-term) 122,744 -126,847 -6,675 143,869 133,091
Total interest-bearing debt 3,634,503 2,693 -38,380 130,085 3,728,901
Other debt (long-term) - - - - -
2022
Balance at
1 January
Cash flows
Exchange
rate adj.
Other
Balance at 31
December
1,718,199 1,210,477 -16,295 - 2,912,381
Credit institutions (long-term) 6,372 25,237 - -3,420 28,189
Credit institutions (short-term) 631,963 -354,868 7,481 3,420 287,996
Leasing debt (long-term) 333,118 - -11,071 -38,854 283,193
Leasing debt (short-term) 130,335 -130,872 -4,208 127,489 122,744
Total interest-bearing debt 2,819,987 749,974 -24,093 88,635 3,634,503
Other debt (long-term) 75,191 11,237 -86,428 -
Payable to affiliates (short-term)
Payable to affiliates (short-term)
Short-term interest bearing payables to affiliates comprise withdrawals on the parent company's cash pool facility. Movements in the
category "other" comprise additions, disposals and re-measurements occured during the reporting period.
INTEREST RATE RISKS
Due to the chosen funding of investments and the ongoing operations, BioMar Group is exposed to fluctuations in the interest rates.
In 2022, BioMar has transfered the full risk management regarding interest rate risk to the parent company through which BioMar is
fi
nanced - see also note 21. Consequently, fixed rate loans only account for 10% in 2023 (2022: 11%) of the total interest bearing
debt. For debt raised on floating terms, fluctuations in the interest rates of +/- 100 bps
will have a hypothetic impact on the profit for
the year and equity of +/- DKK 26 million in 2023 (2022: +/-DKK 25 million). No further risk management policies are carried out
related to interest rate risks.
Fair value of interest bearing debt
Credit institutions (long-term)
The Group's interest bearing debt is mainly taken out in DKK and EUR.
Payable to affiliates (short-term)
Credit institutions (short-term)
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note
17 TRADE PAYABLES AND OTHER DEBT
2023 2022
Trade payables 3,136,290 3,746,536
Payables to group enterprises - 2,457
Other debt 824,566 834,448
Total trade payables and other debt
3,960,856 4,583,441
In addition BioMar Group holds non-current debt of 5.4mDKK
18
CONTINGENT LIABILITIES AND GUARANTEES
Contingent liabilities
Pending lawsuits
Joint taxation liability
BioMar Group participates in a Danish joint taxation arrangement with Aktieselskabet Schouw & Co. (CVR no. 63965812)
serving as the administration company, and is therefore jointly and severally liable for the corporation tax and also for
obligations, if any, to withhold tax on dividends, interests and royalties. The total net liability to the Danish tax authorities is
recognised in the annual report of Aktieselskabet Schouw & Co. Potential corrections to the jointly taxed income and tax at
source may result in a higher liability for the Group.
(DKK 1,000)
The Chilean competition authority, Fiscalía Nacional Económica (“FNE”), initiated an investigation of the Chilean fish feed
industry in October 2016. As part of the investigation, BioMar Chile SA and other companies were subject to unannounced
inspections. Naturally, BioMar Chile has been cooperative, responding to questions and providing documentation to the
extent possible. Further to the industry investigation, the FNE indicted four Chilean fish feed producers, including BioMar
Chile SA, on 19 December 2019 on charges of concerted practice, claiming that BioMar Chile SA be fined up to 30,000
annual tax units, which at 31 December 2023 corresponded to approximately DKK 177 million. The charges are based on
isolated circumstances related to the Chilean fish feed industry during the 2003-2015 period. The statement of defense was
filed to the Chilean Competition Court on 19 May 2020 by BioMar Chile. The whole process has been delayed due to the
COVID-19 pandemic, however. the final judgement is expected end of 2024 at the earliest.
BioMar Chile does not acknowledge the charges and has rebutted the charges that it has participated in concerted
practices so as to restrict competition in the industry. Based on the Chilean lawyers’ opinion in the matter and the
information currently available it is not possible at this stage to anticipate the outcome of the case, neither to determine the
probability and amount of a potential outcome. Accordingly, no provision has been recognised at 31 December 2023
concerning the claim submitted.
BioMar Group is currently a party to a small number of legal disputes. Management believes that the results of these legal
disputes will not materially impact the Group’s financial position other than the receivables and liabilities that have been
recognised in the balance sheet as at 31 December 2023.
For a number of years, BioMar has facilitated a supply chain financing programme (reverse factoring) through banks. The
purpose of the programme is to develop and ensure long-term relations with strategically important suppliers of raw
materials. The supply chain finance programme contributes to ensuring low raw materials prices and financing costs in the
value chain. Suppliers participating in the programme have the option of receiving early payment once BioMar has approved
a delivery. Under the system, BioMar assigns approved invoices to the bank in a factoring arrangement without recourse.
The bank then pays the supplier early while ensuring the best possible credit period for BioMar. Supply chain finance debt
of 764m DKK is recognised in the balance sheet under trade payables (2022: 980m DKK).
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note
18 CO
NTINGENT LIABILITIES AND GUARANTEES (continued)
Guarantees
19
CHANGES IN WORKING CAPITAL 2023 2022
Change in inventories 611,998
-864,995
Change in receivables -170,872
-255,672
Change in trade payables and other debt -631,216 616,070
Total changes in working capital -190,090 -504,597
20 ADJUSTMENT FOR NON-CASH TRANSACTIONS
2023 2022
Purchase/sale of intangible assets cf. note 10 30,741
22,821
Amount paid regarding intangible assets 30,741 22,821
Purchase/sale of property, plant and equipment cf. note 11 201,482
227,517
Of which not yet paid at the balance sheet date/adjustment for the year - -
Amount paid regarding property, plant and equipment 201,482 227,517
Incurring financial liabilities 10,478 34,253
Of which lease debt -10,478
-9,016
Proceeds from borrowings - 25,237
BioMar Group is partially financed by resources of the parent company Schouw & Co. as well as a number of committed
and to a lesser extent uncommitted credit facilities. BioMar Group, like other major subsidiaries in the Schouw & Co.
G
roup, co-guarantees these facilities totaling DKK 8,165 million, of which DKK 5,542 million is utilised. In addition, a
number of other smaller facilities totaling DKK 56 million established with Schouw & Co.'s global banker HSBC, of which
DKK 48 million is utilised.
(DKK 1,000)
BioMar has provided collateral in land and buildings for morgage loans with a booked value of DKK 35 million as well as
corporate guarantees for a total of DKK 311 million.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
21 FINANCIAL RISK MANAGEMENT
The liquidity risk means that BioMar Group may not be able to fulfill its obligations as a result of a failure to release assets
or obtain adequate financing. The Group activities are exposed to a relatively high degree of seasonal fluctuations requiring
occasional oscillations in the need for liquidity. Historically, the working capital requirements are highest in the thi
rd
quarter
of 2023.
BioMar Group is predominately financed by resources of the parent company Schouw & Co. as well as a number of
committed and to a lesser extent uncommitted credit facilities.
The parent company’s source of financing is primarily composed of a syndicated banking facility, which in December 2020
was refinanced with a total facility framework of DKK 3,275 million. The facility is for a three-year period with the possibility
of a one-year extension after year one and two. The first extension option was utilised in December 2021 and the second
extension option was utilised in December 2022. The banking consortium is consisting of Danske Bank, DNB, Nordea and
the international bank Hong Kong & Shanghai Banking Corporation (HSBC).
In April 2019 and in November 2023, Schouw & Co. issued two Schuldschein EUR 136 million, (DKK 1,013 million), and
EUR 225 million (DKK 1,677 million), respectively. The Schuldschein expires in April 2024, April 2026, November 2026,
November 2028 and November 2030. In December 2021, a facility was established for a total of DKK 400 million with Nordic
Investment Bank. The facility is for a seven-year period and issued for specific capacity and development investments in
Denmark.
In addition, in 2022 and 2023, Schouw & Co. established a number of term loans with Danske Bank, Nordea Bank, HSBC,
DNB, HSBC and Jyske Bank for a total of DKK 1,800 million. The loans are committed and expire in March 2024 (DKK 400
million) and in January 2025 (DKK 1,400 million).
BioMar Group, like other major subsidiaries in Schouw & Co., co-guarantees the aforementioned facilities totaling DKK
8.165 million, of which DKK 5,590 million is utilised. In addition, a number of other smaller facilities totaling DKK 58 million
BioMar Group's interest bearing debt amounts to DKK 3,729 million end of 2023 (2022: DKK 3,635 million), of which DKK
279 million end of 2023 (2022:DKK 311 million) has a remaining loan period of more than one year. Cash and cash
equivalents amount to DKK 184 million end of 2023 (2022: DKK 299 million). Additionally, BioMar Group has significant
unutilised and committed loan facilities available with its parent company Schouw & Co. per 31 December 2023, hence the
available financial resources are deemed sufficient for the realisation of the Group's strategy. BioMar expects to repay its
financial obligations with cash flow from operations.
Mark et risk s
Liquidity risk /financial resources
As a result of the Group's international activities, the Group is influenced by and exposed to a number of different financial
risks i.e, fluctuations in energy and raw material prices as well as interests, foreign exchange rates and liquidity risks. For
the most significant areas BioMar Group management has formulated a risk policy, approved by the Board of Directors.
The Group is exposed to changes in energy prices (mainly gas, oil, electricity and environmental taxes) as energy is
consumed in the production of aqua feed. Furthermore, the Group is also indirectly exposed as changes in the energy
prices are reflected in the transportation costs. Changes in transportation costs are expected to be fully or partially passed
on to the trading partners. BioMar Group does not have an official hedging policy regarding energy, and does therefore not
actively hedge the risk of fluctuations in energy prices. Probable changes in energy prices are assessed not to have a long-
term significant impact on the Group's profit and loss or equity.
The Group is exposed to changes in raw material prices (mainly sources of protein and different types of oils) used in the
production of aqua feed. The Group does not actively hedge these risks as they are covered by update of list prices and
incorporation of price adjustment mechanism in sales contracts. Probable changes in raw material prices are assessed not
to have a long-term significant impact on the Group's profit and loss or equity.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
21 FINANCIAL RISKS MANAGEMENT (continued)
Carrying
amount
Contractual
cash flows
< 1 year 1 - 5 years > 5 years
Non-derivative financial instruments
343,684 352,678 319,379 10,
067 23,232
2,998,482 2,998,482 2,998,482 - -
Lease debt 386,740 412,507 142,
598 242,851 27,058
3,063,590 3,063,590 3,063,590 - -
784,838 784,838 779,438 5,400 -
Derivatives
45,128 45,128 45,128 - -
7,622,462 7,657,223 7,348,615 258,318 50,290
55,592 55,592 - -
Total 7,712,815 7,404,207 258,318 50,290
Carrying
amount
Contractual
cash flows
< 1 year 1 - 5 years > 5 years
Non-derivative financial instruments
316,185 322,964 288,662 10,973 23,329
2,912,381 2,912,381 2,912,381 - -
Lease debt 405,937 437,329 133,467 257,656 46,206
3,748,993 3,748,993 3,748,993 - -
806,077 806,077 806,077 - -
Derivatives
28,368 28,368 28,368 - -
8,217,941 8,256,112 7,917,948 268,629 69,535
44,833 44,833 - -
Total 8,300,945 7,962,781 268,629 69,535
2023
Derivative financial instruments
Banks and other credit institutions
Recognised in balance sheet total
Recognised in balance sheet total
Payable to affiliates
Derivative financial instruments
Other debt
Payable to affiliates
Trade payables
Banks and other credit institutions
Other debt
Trade payables
Contractual obligations to purchase property, plant
and equipment
2022
Contractual obligations to purchase property, plant
and equipment and intangible assets
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(DKK 1,000)
Note
21
Currency
Cash and
receivables
Financial
liabilities (non-
derivatives)
Derivatives to
hedging of
future cash
flows
Likely change
in exchange
rate
Hypothetical
effect on the
profit for the
year
Hypothetical
effect on the
equity
EUR / DKK 615,491 -625,448 - +0,5% -39 -39
USD / DKK 526,908 -967,655 59,414 +5,0% -774 -14,872
USD / GBP - -86,045 162,238 +10,0% -6,970 6,172
USD / NOK - -521,784 783,809 +15,0% -4,027 30,657
CLP / USD 3,426 -32,029 239,843 +15,0% -3,132 23,131
EUR / NOK - -400,288 467,276 +10,0% -5,366 5,225
NOK / GBP - -47,086 277,221 +10,0% -3,814 18,641
NOK / DKK 112,232 -124,606 31,256 +10,0% 459 1,473
EUR / USD 7 -61,830 - +5,0% -2,411 -2,411
USD / AUD 29,088 -102,412 219,284 +10,0% 4,102 10,655
Others 101,628 -210,557 -18,606 +10,0% -5,644 -5,107
1,388,780 -3,179,740 2,221,735 -27,616 73,525
Currency
Cash and
receivables
Financial
liabilities (non-
derivatives)
Derivatives to
hedging of
future cash
flows
Likely change
in exchange
rate
Hypothetical
effect on the
profit for the
year
Hypothetical
effect on the
equity
EUR / DKK 791,562 -555,318 - +0,5% 921 921
USD / DKK 865,403 -1,018,852 -148,140 +7,0% 72 -16,467
USD / GBP 3,306 -112,676 94,936 +9,0% -1,052 -1,052
USD / NOK 17,291 -806,197 1,095,475 +13,0% -931 31,086
CLP / USD 1,666 -39,306 94,789 +14,0% -3,847 5,841
EUR / NOK 1,953 -710,862 709,661 +10,0% -15,387 59
NOK / GBP - -80,938 41,110 +11,0% -3,549 -3,549
NOK / DKK 69,527 -80,625 54,986 +10,0% 505 3,423
EUR / USD 1,604 -30,677 - +7,0% -1,587 -1,587
USD / AUD 27,293 -117,819 119,362 +10,0% 1,453 2,105
Others 79,374 -136,613 -11,759 +10,0% -4,698 -3,569
1,858,979 -3,689,883 2,050,420 -28,100 17,211
2022
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL RISKS (continued)
As a main rule, the Group hedges all significant foreign currency risks regarding in- and outgoing payments in foreign currencies
in accordance with the Group's policy for currency risk management. Mostly the Group applies simple forward contracts to
hedge probable forecast sales and purchase transactions and in some cases options can be used. The instruments are traded
with the Groups primary financial partners.
Foreign currency risk s
A significant part of the Group's revenue is generated in the same currency as the functional currency for the respective
enterprises, hence these are naturally hedged and limiting the foreign currency exposure.
The sensitivity analysis shows the impact on the income statement and equity from likely changes in exchange rates in main
currencies.
2023
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
21
Currency
Notional
principal*
Accumulated
capital gain/(loss)
recognised in
equity
Fair value
Maximum
number of
months
to expiry
EUR 482,071 -3,212 -9,283 7
USD 1,224,745 -20,391 -45,639 12
PLN -35,868 - -823 4
CLP 239,843 12,139 12,139 12
NOK 308,476 9,766 10,857 4
Others 2,468 55 55 3
Total 2,221,735 -1,643 -32,694
Currency
Notional
principal*
Accumulated
capital gain/(loss)
recognised in
equity
Fair value
Maximum
number of
months
to expiry
EUR 722,244 765 16,138 6
USD 1,161,633 -4,651 -14,755 7
CLP 94,789 20,113 20,113 3
NOK 96,096 -1,367 -636 9
Others -24,340 -808 -1,090 3
Total 2,050,422 14,052 19,770
*Positive values reflect purchase of currency while negative values reflect sales of currency.
Categories of financial instruments
2023 2022
Securities (fair value hierarchy level 3) 2,011 1,365
Financial assets measured at fair value through profit and loss 2,011 1,365
Derivative financial assets (fair value hierarchy level 2) 12,434 48,138
Derivative financial liabilities (fair value hierarchy level 2) 45,128 28,368
Hedging instruments measured at fair value, net -32,694 19,770
Trade receivables 3,328,587 3,134,524
Other receivables 1,116,130 935,652
Cash and cash equivalents 183,770 298,852
Financial assets measured at amortised cost 4,628,487 4,369,028
Interest bearing debt 3,728,901 3,634,503
Trade payables and other debt 3,915,728 4,555,073
Financial liabilities measured at amortised cost 7,644,629 8,189,576
Contingent consideration (fair value hierarchy level 3) - -
Financial liabilities measured at fair value through profit and loss - -
FINANCIAL RISKS MANAGEMENT (continued)
Currency hedging agreements regarding future transactions
Net amounts outstanding for currency hedging agreements at 31 December 2023 for BioMar Group, which satisfy the
requirements for hedge accounting and which relate to future transactions (cash flow hedges and non-realised fair value
hedges).
2023
2022
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
22
ACQUISITIONS
2023 2022
Specification of acquired net assets at acquisition date
Intangible assets
- 50,149
Property, plant and equipment
- 984
Leased assets
- -
Other financial assets
- 157
Inventories
- 10,957
Receivables
- 43,278
Cash and cash equivalents
- 2,936
Deferred tax
- -12,537
Trade payables
- -3,682
Other debt
- -3,438
Current tax
- -6,179
Net assets acquired
- 82,625
Of which non-controlling interests
- -
Goodwill
- 131,300
Acquisition costs
- 213,925
Contingent consideration
- -
Of which cash and cash equivalent
- -2,936
Total cash acquisition costs
- 210,989
23
2023 2022
Audit fees
1,915 2,718
Non-audit fees
601 -
Fees for tax- and VAT-related services
263 488
Fees for other services
503 164
Total fee
3,282 3,370
No aquisitions in 2023.
FEES TO AUDITORS APPOINTED BY THE GENERAL MEETING
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
24
A
ktieselskabet Schouw & Co. owns 100% of the shares in BioMar Group A/S.
2023 2022
Management fee -2,600 -2,500
Interest paid -153,112 -65,413
Interest received 16,558 4,787
At 31 December BioMar Group has the following debt and receivables:
Receivables from BioMar Group companies 830,513 651,977
Debt to BioMar Group companies -2,998,482 -2,914,838
Transactions between BioMar Group and the associates and joint ventures appear below:
2023 2022 2023 2022
Sales 652,280
740,341 5,818 5,267
Purchases 79,619 121,666 - -
Interest received - 433 3,450 1,268
Dividend received 29,258 9,606 - -
At 31 December BioMar Group has the following debt and receivables:
Receivables from associates and joint ventures 215,367 236,266 49,796 38,420
Loan to associates and joint ventures - 10,128 - -
Debt to associates and joint ventures 5,717 5,646 200 -
Members of the Board of Directors, the key management personnel as well as their family members are considered related
parties. Furthermore, related parties are companies in which the above-mentioned group of people has significant interests.
RELATED PARTY TRANSACTIONS
Joint ventures
Associ a te s
Transactions between BioMar Group and parent company Aktieselskabet Schouw & Co. appear below:
In addition, related parties also comprise the associates and joint ventures, cf. note 6, in which BioMar Group has either
significant influence or joint control.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(DKK 1,000)
Note
25
BioMar Group's
Company name Type Domicile share in %
BioMar Group A/S Parent company Aarhus, Denmark
BioMar A/S Subsidiary Brande, Denmark 100.00
BioMar Spolka z.o.o. Subsidiary Zielona Gora, Poland 100.00
Oy BioMar AB Subsidiary Vanda Helsingfors, Finland 100.00
BioMar AB Subsidiary Malmø, Sweden 100.00
BioMar OOO, Russia Subsidiary Ropsha, Leningrad, Russia 100.00
BioMar S.A.S. Subsidiary Nersac, France 100.00
BioMar Hellenic S.A. Subsidiary Volos, Greece 100.00
BioMar Iberia S.A. Subsidiary Dueñas, Spain 100.00
BioMar Sagun TTK Joint venture Söke, Turkey 50.00
BioMar AS Subsidiary Myre, Norway 100.00
LetSea AS Associate Dønna, Norway 33.99
BioMar Ltd. Subsidiary Grangemouth, Scotland 100.00
LCL Shipping Ltd. Associate Grangemouth, Scotland 40.00
BioMar Pty. Ltd. Subsidiary Hobart, Australia 100.00
BioMar A/S Chile Holding S.A. Subsidiary Puerto Montt, Chile 100.00
BioMar Chile S.A. Subsidiary Puerto Montt, Chile 100.00
Salmones Austral S.A. Associate Puerto Montt, Chile 22.91
Aquaculture Technology Centre Patagonia S.A. Associate Lenca, Chile 30.00
BioMar Aquaculture Corporation S.A. Subsidiary Cañas, Costa Rica 100.00
BioMar Aquacorporation Products S.A. Joint operation Cañas, Costa Rica 50.00
Alimentsa S.A. Subsidiary Guayaquil, Ecuador 70.00
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Joint venture Wuxi, China 50.00
Zhuhai Haiwei Feed Co., Ltd Joint venture Zhuhai, China 100.00
Viet Uc Aqua Feed Company Limited Subsidiary An Hiep Village, Vietnam 67.50
Sensaq Investment Pty Ltd Subsidiary Hobart, Australia 100.00
AQ1 Systems Pty Ltd Subsidiary Hobart, Australia 100.00
AQ1 Systems JBO Branch Shimonoseki-city, Japan 100.00
AQ1 Systems S.A. Subsidiary Panama city, Panama 100.00
AQ1 Systems Co. Ltd Associate Bangkok, Thailand 49.00
26
NEW FINANCIAL REPORTING REGULATIONS
GROUP STRUCTURE
As of the date of release of these financial statements, the IASB has issued a number of new and amended financial reporting
standards and interpretations which are not mandatory for the BioMar Group in 2023. Approved, not yet effective standards and
amendments are implemented when they become mandatory for BioMar Group as per the EU effective dates.
It is the assessment that neither of the standards, individually or collectively, will have material impact on the financial
statements of BioMar Group.
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Note
26
Material Accounting Policy Information
BioMar Group A/S is a private limited company domiciled in Denmark. The annual report for the
period 1 January – 31 December 2023 comprises both the consolidated accounts for the BioMar
Group and its subsidiaries (the Group) and the annual accounts for the parent company, BioMar
Group A/S. The consolidated accounts for BioMar Group A/S are prepared in accordance with IFRS
accounting standards as adopted by the EU and additional Danish disclosure requirements pursuant
to the Danish Financial Statements Act applying to large class-C entities.
Basic Principles
The annual report is presented in Danish kroner which is the presentation currency for the Group and
the functional currency for the parent company. If not stated otherwise, all amounts are presented in
DKK 1,000.
The annual report is presented on the basis of historical cost, except for share-based remuneration,
derivatives, financial instruments, biological assets and contingent consideration in connection with
business combinations, which are measured at fair value.
The accounting policies are, besides as stated below, consistent with those applied last year.
Reference is also made to section 96 (3) of the Danish Financial Statements Act.
Changes in accounting policies and disclosures
Accounting policies and disclosures are unchanged from the 2022 Annual Report.
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The consolidated financial statement
The consolidated financial statements comprise BioMar Group A/S and its subsidiaries. Subsidiaries
are entities controlled by BioMar. Control means that BioMar controls the company i.e. that BioMar is
exposed to or has right to variable returns from the company and has the ability to affect the size of
those returns through its power over the company. Control is usually achieved by directly or indirectly
holding more than 50% of the voting rights or other rights such as agreements on management
control.
Entities in which the Group exercises significant influence but not control are classified as associates.
Significant influence is generally achieved by directly or indirectly holding or controlling 20% or more,
but less than 50%, of the voting rights. Factors used to determine whether BioMar Group has control
include de facto control and potential voting rights exercisable at the balance sheet date.
Non-controlling interests are recognised in consolidated entities that are not wholly owned by BioMar
Group. The proportionate share of the profit and equity of subsidiaries attributable to non-controlling
interests are recognised as a separate item under equity.
Joint arrangements are activities or companies in which the Group has joint control through
collaborative agreements with one or more parties. Joint control implies that unanimous decisions on
the relevant activities are required by the parties sharing the controlling influence. Joint arrangements
are classified either as joint ventures or joint operations. Joint operations refer to activities where the
parties have direct rights to assets and liabilities, whereas joint ventures are activities for which the
parties only have the rights to the net assets.
The consolidated financial statements have been prepared by aggregating the financial statements of
the parent company, the individual subsidiaries and joint arrangements prepared in accordance with
the Group’s accounting policies. Intra-group income and expenses, shareholdings, dividends,
balances and realised and unrealised gains on transactions between the consolidated entities are
eliminated. Unrealised gains on transactions with associates and joint ventures are eliminated
proportionate to the Group’s share of the enterprise. Unrealised losses are eliminated in the same
way as unrealised gains, to the extent that no impairment has occurred.
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Business combinations
Newly acquired or established entities are recognised in the consolidated financial statements from
the date of acquisition. Comparative figures are not adjusted to reflect acquisitions. Sold or liquidated
entities are consolidated until the date of sale or liquidation. Discontinued operations are separately
presented. The acquisition method is applied on acquisitions if the parent company gains control of
the respective company. Identifiable assets, liabilities and contingent liabilities in the acquired
company are measured at their fair value at the date of acquisition. Intangible assets are recognised if
they can be separated or if they arise from a contractual right. Deferred tax on the revaluations are
recognised. Acquisition date is the date from when BioMar gains actual control of the acquired entity.
Any excess of the consideration paid for the business over the fair value of the acquired assets,
liabilities and contingent liabilities, is recognised as goodwill under intangible assets. Goodwill is not
amortised but is annually tested for impairment. The first impairment test is performed before the end
of the year of acquisition. On acquisition, goodwill is allocated to the cash-generating units that will
subsequently form the basis for the future impairment tests. Goodwill and fair value adjustments in
connection with acquisition of a foreign entity with a different functional currency than the presentation
currency of BioMar Group are treated as assets and liabilities belonging to the foreign entity and
converted to the entity’s functional currency with the rate of the transaction date. Negative
discrepancies, negative goodwill, is recognised in the income statement at the acquisition date.
For put-options issued as part of the consideration for business combinations, put-options received
by non-controlling shareholders, where risk and rewards are preserved at NCI, are recognised as a
financial liability measured at fair value on initial recognition and set off against the parent company
share of equity. Fair value is determined as the present value of the exercise price of the option. The
option is subsequently measured at amortised cost corresponding to the discounted value of the
expected future cash flows. Value adjustments are recognised directly in parent company equity.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a
financial liability are subsequently remeasured to fair value, with changes in fair value recognised in
the income statement.
Any gains or losses on the disposal of subsidiaries, associates and joint ventures are stated as the
difference between the sales price or the proceeds from the winding-up and the carrying amount of
net assets, including goodwill, at the date of disposal and the related cost for selling or winding-up.
Foreign currency translation
A functional currency is determined for each of the reporting entities in the Group. The functional
currency is the currency in the primary economic environment in which the reporting entity operates.
Transactions in currencies other than the functional currency are transactions in foreign currencies.
On initial recognition, transactions denominated in foreign currency are translated at the exchange
rate prevailing on the transaction date. Exchange differences arising between the exchange rate at
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Material Accounting Policy Information
the transaction date and the exchange rate at the date of actual payment are recognised in the
income statement under financial income or expenses.
Receivables, payables and other monetary items denominated in foreign currency are translated at
the exchange rate prevailing at the balance sheet date. The difference between the exchange rate
prevailing at the balance sheet date and the rate from the date when the receivable or payable
arose or the exchange rate applied in the most recent annual report is recognised in the income
statement under financial income or expenses.
On consolidation of entities with functional currency different from Danish kroner (DKK), the income
statements are translated at the exchange rates prevailing at the transaction date and the balance
sheets are translated at the exchange rates prevailing at the balance sheet date.
The average exchange rate for each individual month is used as the transaction date exchange rate
in case of no significant differences. Exchange rate differences arising from the translation of the
opening equity of such entities at the exchange rate prevailing at the balance sheet date and on the
translation of the income statements from the exchange rates prevailing at the transaction date to the
exchange rate at the balance sheet date are recognised in other comprehensive income in the
exchange rate adjustment reserve under equity.
The Turkish economy has been considered a hyperinflation economy effective from 30 June 2022.
Accordingly, the Group’s Turkish joint venture is recognised in accordance with IAS 29. The joint
venture’s financial statement has been inflation-adjusted prior to recognition in the consolidated
financial statements.
Derivative financial instruments
Derivative financial instruments are measured at fair value and recognised in the balance sheet under
other receivables and other debt, respectively. The fair value of derivative financial instruments is
calculated on the basis of current market data and recognised valuation methods.
Changes in the fair value of the derivative financial instruments that effectively hedge the value of a
recognised asset or liability are recognised in the income statement together with any changes in the
value of the hedged asset or liability. Hedging of future cash flows according to contracts, except
exchange rate hedging, are treated as hedging of the fair value of a recognised asset or liability.
Changes in the part of the fair value of derivative financial instruments that is classified as and
qualifies for hedge accounting and that effectively hedge future cash flows are recognised in other
comprehensive income in the hedge transaction reserve under equity. On realisation of the hedged
transaction, any gains or losses relating to such transactions are transferred from other
comprehensive income and recognised in the same item as the hedged item.
For derivative financial instruments that do not qualify for hedge accounting, changes in the fair value
are recognised as interest income or expenses as they occur.
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Material Accounting Policy Information
Some contracts imply conditions corresponding to derivative financial instruments. Such
integrated financial instruments are recognised separately and are regularly measured to fair
value, in case they deviate significantly from the respective contract unless the total contract is
recognised and regularly measured at fair value.
Income statement
Revenue
Revenue primarily relates to sale of aqua feed but does also comprise sale of commodities and other
products and corporate services. Revenue is recognised in the income statement if transfer of the
control to the customer has taken place before year-end and if the income can be reliably measured.
The performance obligations in the contracts are to deliver aqua feed to the customers and each
delivery is considered a separate performance obligation as each delivery is distinct. Due to the
business model composition and types of sales contracts variable components and the related
consideration are considered immaterial.
Revenue is measured excluding VAT and other indirect taxes charged on behalf of third parties. All
discounts granted are deducted from revenue.
Operating expenses
Operating expenses comprise costs incurred for the manufacture and sale of goods, primarily cost of
sales, consumables, energy consumption and transportation of goods. Operating expenses
furthermore comprise wages and salaries and expenses for the company’s administration and
management. Also recognised in operating expenses are estimated changes in the value of
inventories and changes in bad debt provisions as well as product development and research costs.
Depreciation, amortisation and impairment losses
The item comprises depreciation and impairment of property, plant and equipment and lease assets
and amortisation and impairment of intangible assets.
Other operating income and expenses
Other operating income and expenses comprise activities secondary to the primary activities of the
entities and consist mainly of the following:
• Gains or losses on the disposal of intangible assets and property, plant and equipment.
• Government grants include grants and funding of development work and grants for
investments etc. Grants for research and development costs recognised in the income
statement are included in other operating income.
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Investment grants in the form of certain tax-privileges schemes in individual countries are recognised
in the balance sheet under receivables and as deferred income under liabilities. Grants are
recognised in the income statement under other operating income as the underlying investment is
depreciated. The receivable is reduced as the grant is received and the deferred income is reduced
as the grant is recognised in the income statement.
Result from Subsidiaries, Associates and Joint Ventures
Subsidiaries, associates and joint ventures are recognised in the income statement at the
proportionate share of the profit or loss and after elimination of the proportionate share of intra-group
gains or losses.
Financial Income and Expenses
Financial income and expenses include interest and capital gains and losses on transactions in
foreign currency and impairment losses on securities. Also included are amortisation of financial
assets and liabilities, including lease assets, surcharges and refunds under the on-account tax
scheme, earnout adjustments and changes in fair value of derivative financial instruments that do not
qualify as hedge accounting. Interest expenses relating to the construction of non-current assets are
recognised as part of the cost of the asset.
Government Grants
Government grants are recognised where there is reasonable assurance that the grant will be
received, and all attached conditions will be complied with. When the grant relates to an expense
item, it is recognised as income on a systematic basis over the periods that the related costs, for
which it is intended to compensate, are expensed. When the grants are related to an asset, it is
recognised as income in equal amounts over the expected useful life of the related asset.
Taxation
BioMar Group is taxed jointly with the parent company’s other Danish subsidiaries. The current
Danish income tax liability is allocated among the companies of the tax pool in proportion to their
taxable income. Companies that utilise tax losses from other companies pay a joint tax contribution to
the parent company at an amount corresponding to the tax value of the tax losses utilised.
Companies whose tax losses are utilised by other companies receive joint tax contribution from the
parent company corresponding to the tax value of the utilised losses (full absorption). The jointly
taxed companies pay tax under the Danish on-account tax scheme.
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Material Accounting Policy Information
Balance sheet
Goodwill
On initial recognition goodwill is recognised in the balance sheet at cost. Subsequently, goodwill is
measured at cost less accumulated impairment. Goodwill is not amortised.
The carrying amount of goodwill is allocated to the Group’s cash-generating units at the date of
acquisition. The determination of cash-generating units is based on the management structure and
the internal financial management.
Other intangible assets
Other intangible assets (e.g. software solutions) and intangible assets acquired in connection with
business combinations are measured at cost less accumulated amortisation and impairment.
Intangible assets are amortised on a straight-line basis over the expected useful life of the assets:
5-20 years.
Intangible assets with indefinite useful lives are not amortised but are subject to yearly impairment
tests.
Property, plant and equipment
Land and buildings, plant and machinery, fixtures and fittings and tools and equipment are measured
at costs less accumulated depreciation and impairment.
Cost comprises the purchase price and any costs directly attributable to the acquisition until the date
when the asset is ready for use. Cost is increased by the present value of estimated liabilities for the
removal and disposal of the asset and restoration of the site where the asset was used. The total cost
is de-composed for separate depreciations if the useful lives of the single components are deemed
significant different.
Subsequent costs, such as the cost of replacing components of property, plant and equipment, are
included in the asset’s carrying amount when deemed likely that it will result in economic benefits.
The replaced components are no longer recognised in the balance sheet and the carrying amount is
transferred to the income statement. All other ordinary repair and maintenance costs are recognised
in the income statement when incurred.
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Material Accounting Policy Information
Property, plant and equipment are depreciated on a straight-line basis over the expected useful-lives
of the asset/component, which are expected to be as follows:
• Buildings 20-50 years
• Plant and machinery 8-15 years
• Other fixtures and fittings, tools and equipment 4-10 years
• Land is not depreciated
The basis for the depreciations is calculated with due considerations to the asset’s scrap value,
reduced by any impairment losses. The residual value is determined at the acquisition date and
reassessed annually. If the residual value exceeds the carrying amount depreciations are ceased.
In case of changes to the depreciation period or residual value the effect on depreciations going
forward is recognised as a change of accounting estimates.
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 recognises lease liabilities to make lease
payments and right-of-use assets representing the right to use the underlying assets.
Right-of-use-assets; the Group recognises 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, as follows;
• Ships 6-15 years
• Land and buildings 2-50 years
• Other lease assets 2-10 years
Right-of-use assets are tested for impairment whenever there is an indication that the asset may be
impaired.
BioMar Group’s lease portfolio covers mainly ships and land and buildings.
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Lease liabilities: at the commencement date of the lease, the Group recognises 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.
Right-of use assets and lease liabilities are presented separately in the financial statement.
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 recognised as expenses on a straight-line basis
over the lease term.
Investments in Associates and Joint Ventures
Investments in associates and joint ventures are measured in the balance sheet at the proportionate
share of the companies’ net asset value (net equity method) calculated in accordance with the
Group’s accounting policies with deductions or addition of the proportionate share of unrealised intra-
group gains or losses and with addition of the carrying amount of goodwill. Impairment test is
performed when there is objective evidence of impairment.
Non-current Asset Impairment Test
Goodwill and intangible assets with indefinite useful lives are tested annually for impairment, initially
before the end of the year of acquisition.
The carrying amount of goodwill is tested for impairment together with the other non-current assets of
the cash-generating unit to which goodwill has been allocated and is written down over the income
statement, as a separate line item, to the lower of the recoverable amount and the carrying amount.
The recoverable amount is generally calculated as the present value of the future net cash flows
expected to be derived from the business or activity (cash-generating unit) to which the goodwill
relates.
Deferred tax assets are assessed on a yearly basis and are only recognised in case it’s deemed likely
that they will be utilised.
The carrying amount of other non-current assets are tested annually to determine whether there are
any indications of impairment. If such indication exists, the recoverable amount of the asset is
calculated. The recoverable amount is the higher of the fair value of the asset less expected costs to
sell and the value in use.
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Material Accounting Policy Information
A write-down is recognised when the carrying amount of an asset or a cash-generating unit exceeds
the recoverable amount of the asset or the cash-generating unit. Write-downs are recognised in the
income statement as impairment.
Impairment write-downs of goodwill are not reversed. Impairment of other assets is reversed to the
extend changes have occurred to the assumptions and estimates leading to the impairment.
Impairment is only reversed to the extend the new carrying amount of an asset does not exceed the
carrying amount the asset would have had net of depreciation, had the asset not been impaired.
Inventories
Inventories are measured at cost in accordance with the FIFO-method. Where the net-realisable
value is lower than the cost, inventories are written down to this lower cost.
The cost of goods for resale, raw materials and consumables comprises the purchase price and
delivery costs.
The cost of finished goods and work in progress comprise the cost of raw materials, consumables,
direct labour and indirect production costs. Indirect production costs include indirect materials and
labour as well as maintenance of and depreciation and impairment of the machines, factory
buildings and equipment used in the manufacturing process as well as factory management and
administrative expenses.
The net realisable value of inventories is calculated as the selling price less costs of conversion and
costs incurred to execute the sale, and is determined in consideration of marketability,
obsolescence and movements in the expected selling price.
Biological inventories are recognised at fair value less estimated selling costs. Gains and losses
occurring on the recognition of biological assets at fair value less estimated selling costs are
recognised in gross profit.
Receivables
Receivables are measured at amortised cost less allowance for lifetime expected credit losses.
Provisions for expected credit losses are calculated in accordance with the simplified expected
credit-loss model, after which the total expected loss is immediately recognised in the income
statement at the same time as the receivable is recognised in the balance sheet taking the total
expected loss into consideration.
Expected credit losses are calculated based on the expected default rate, determined per
geographical location. The default rate is based on historic default rates adjusted for the effect of
expected changes in relevant parameters.
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Securities
Security holdings which do not enable the Group to exercise control or a significant influence are
measured at fair value.
Value adjustments of listed securities for which changes in fair value are regularly monitored, are
recognised under financial items in the income statement when they occur.
Unlisted securities, for which the fair value is not regularly monitored, are classified as available for
sale. The securities are measured at fair value and unrealised value adjustments are recognised
directly in other comprehensive income, except for impairment losses which are recognised in the
income statement under financial items. On realisation, the accumulated value adjustment
recognised in other comprehensive income is reclassified as financials in the income statement.
Share Holders’ Equity
Dividend
Dividend is recognised as a liability at the time of adoption by the shareholders at the annual
general meeting (the date of declaration). Dividends expected to be declared in respect of the year
are stated as a separate line item under equity.
Exchange Adjustment Reserve
The exchange adjustment reserve in the consolidated financial statement comprise exchange
differences arising from the translation of the financial statement of foreign enterprises from their
functional currency into Danish kroner including exchange differences on financial instruments
considered to be part of the investment or as hedging of the net investment.
On full or partly realisation of the net investment exchange rate adjustments are recognised in the
income statement.
Hedge Transaction Reserve
The hedge transaction reserve contains the accumulated net change in the fair value of hedging
transactions that met the criteria for hedging future cash flows and for which the hedged transaction
has yet to be realised.
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Employee Benefits
Executive Management and senior managers in BioMar Group are covered by the parent company
Schouw & Co.'s share option programme. The costs related to the programme are calculated
according to "Black & Scholes" and are expensed as staff costs linearly over the period of the option
and settled to the parent company.
Pension Obligations
BioMar Group has set up pension plans and similar with the majority of the Group’s employees.
Liabilities relating to defined contribution plans are recognised in the income statement in the period
in which the benefits vest, and payments due are recognised in the balance sheet under other
payables.
Tax and Other Liabilities
Payable and deferred tax
Current tax liabilities and current tax receivables are recognised in the balance sheet as calculated
tax on the taxable income for the year, adjusted for tax on prior years’ taxable income and for tax
paid under the on-account tax scheme.
Uncertain tax positions are assessed individually, either as a probable weighted average of possible
scenarios or as the most probable scenario considering the approach that better predicts the
resolution of the uncertainty and recognised if it is probable than an amount will be paid or received.
Deferred tax is measured in accordance with the balance sheet liability method on all timing
differences between the carrying amount and the tax base of the assets and liabilities. However, no
deferred tax is recognised on timing differences regarding non-deductible goodwill and other items
for which timing differences have arisen at the acquisition date without affecting the financial results
or taxable income. In case the tax value can be measured according to multiple tax schemes, the
deferred tax is measured on the basis of the management’s planned utilisation, respective
settlement of the liability.
Deferred tax assets, including the tax base of tax loss carry-forwards, are recognised under other
non-current assets at the expected value of their utilisation either as a set-off against tax on future
income or as a set-off against tax liabilities within the same legal tax entity or jurisdiction.
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Deferred tax adjustments are made regarding eliminations of unrealised intercompany gains and
losses. Deferred tax is measured based on the tax rules and rates in the respective countries that will
apply under the legislation in force on the balance sheet date when the deferred tax is expected to
crystallise as current tax. Changes in deferred tax resulting from changes in tax rates are recognised
in the income statement.
Financial Liabilities
Debt to credit institutions is recognised at the raising of a loan at fair value less transaction costs. Debt
relating to a put option for the purchase of non-controlling interests is initially measured at fair value.
In subsequent periods, financial liabilities are measured at amortised costs, applying the “effective
interest method” to the effect that the difference between the proceeds and the nominal value is
recognised in the income statement under financial expenses over the term of the loan.
Cash Flow Statement
The consolidated cash flow statement shows the cash flows for the year distributed on operating,
investing, financing and discontinued activities, net changes for the year in cash as well as cash and
cash equivalents at the beginning and end of the year.
The cash effect of acquisitions and divestments is shown separately under cash flows from investing
activities. In the cash flow statement, cash flows concerning acquired companies are recognised from
the date of acquisition, while cash flows concerning divesting companies are recognised until the date
of divestment.
Cash flows from operating activities are calculated according to the indirect method as the profit for
the year before tax is adjusted for non-cash operating items, changes in working capital, interest paid
and income taxes paid.
Cash flows from investing activities comprise payments made in connection with the acquisition and
divestment of companies and operations and the acquisition and disposal of intangible assets,
property, plant and equipment as well as the purchase and sale of securities not recognised as under
cash and cash equivalent. Dividends from associates are included in cash flows from investing
activities.
Cash flows from financing activities include payments to and from shareholders and related expenses
as well as the raising of loans, re-payments of interest bearing debt and the purchase and sale of
treasury shares.
Cash and cash equivalents include cash at bank and in hand as well as securities with a maturity of
less than three months at the time of acquisition that can immediately be converted into cash and that
involve insignificant risk of value fluctuations.
Cash flows in currencies other than the functional currency are translated at average exchange rates
unless these differ materially from the exchange rate ruling at the transaction day.
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Key Figures Glossary
EBITDA
Profit before interest, tax,
depreciation and amortisation.
EBIT (Operating profit)
Profit before interest and tax.
EBIT-margin
Profit before interest and tax
(EBIT) as a percentage of
revenue.
Net working capital (NWC)
Inventories, trade receivables,
other receivables and other
current operating assets less
trade payables, other payables
and other current operational
liabilities.
Return on equity
Profit for the year as a
percentage of the average
equity.
Solvency ratio
Equity as a percentage of total
assets.
EBITA
Profit before interest, tax and
amortisations.
ROIC
(Return on invested capital
excl. goodwill)
EBITA as a percentage of
average invested capital.
Average invested capital
Quarterly average of
shareholder equity, net
financial debt and net tax
liabilities less non-operational
financial assets and goodwill.
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Note
27
Significant Accounting Judgments and Estimates
Estimation Uncertainty
In preparing the financial statements, management makes a number of assessments, estimates
and assumptions necessary for calculating the carrying amount of certain assets and liabilities.
The estimates and assumptions applied are based on factors such as historical experience and
other factors that management consider reasonable under the circumstances, but which are
inherently uncertain and unpredictable. Such assumptions may be incomplete or inaccurate, and
unexpected events or circumstances may arise. Due to the risks and uncertainties the Group is
subject to, actual outcome may deviate from the estimates made. It may be necessary to revise
previous estimates as a result of changes to the assumptions on which such estimates were
based or due to new information or subsequent events. The notes provide information on bases
and assumptions, on the future and other estimation uncertainties at the balance sheet date
where there is a considerable risk of changes that may lead to significant adjustment of the
carrying amount of assets and liabilities within the next financial year.
Judgments and estimates deemed significant for the financial reporting are mainly related to
impairment of trade receivables and goodwill. See further below.
Receivables (DKK 3,329 million)
The allowance for expected credit losses for trade receivables is subject to estimations as the
allowance is based on a historical credit loss experience combined with forward-looking
information on macroeconomic factors impacting the industry hence the credit risk.
Impairment of goodwill (DKK 1,105 million)
At the yearly impairment test of goodwill, or if indications of impairment, judgments and
estimations are applied to assess to which extent the cash generating units, that the goodwill is
related to, are able to generate sufficient positive cash flows in the future to support the carrying
amount of goodwill and the other net assets in the respective entities.
The impairment test and the particular sensitive circumstances relating to this is described in note
10 regarding intangible assets.
Tax
As the Group operates across many different countries, the calculation of the Group’s total tax
charge in the income statement inherently involves a degree of estimation and judgment. Tax and
transfer pricing disputes with authorities in various countries may occur and management
judgment is applied to assess to possible outcome of such disputes.
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62 S
tatements of Income and Comprehensive Income
63 Balance Sheet
64 Statement of Change in Equity
65 Cash Flow Statement
66 Notes
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STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(DKK 1,000)
Note INCOME STATEMENT 2023 2022
1 Revenue 3,164,561 4,098,531
3-4 Operating expenses -3,112,974 -4,041,313
EBITDA 51,587 57,218
2 Depreciation and amortisation -10,695 -6,476
EBIT 40,892 50,742
Share of profit after tax, subsidiaries 474,326 404,564
8 Share of profit after tax, joint ventures 44,666 50,131
5 Financial income 6,059 97,291
6 Financial expenses -111,928 -61,652
Profit before tax 454,015 541,076
7 Tax on profit for the year 7,310 -8,592
Profit for the year
461,325
532,484
Other comprehensive income
Items that have been or may subsequently be reclassified to the income statement:
Exchange rate adjustments, foreign entities -154,143 49,972
Hyperinflation adjustment 8,600 -2,986
Other value adjustments in subsidiaries and joint ventures -7,921
16,023
Other comprehensive income after tax -153,465 63,009
Total comprehensive income
307,860
595,493
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BALANCE SHEET AT 31 DECEMBER
(DKK 1,000)
Note ASSETS 2023 2022
9 Intangible assets 49,484 27,190
10 Property, plant and equipment 446 550
Investments i subsidiaries 4,288,799 4,128,899
8 Investments in joint ventures 198,218 182,005
11 Right of use assets 8,965 2,936
17 Deferred tax 2,563 7,127
13 Receivables - 2,440
Other non-current assets 4,498,545 4,323,407
Total non-current assets 4,548,474 4,351,147
14 Inventories 72,700 -
13 Receivables 1,321,763 1,743,577
Income tax 16,312 1,259
Prepayments 13,655 10,900
Cash and cash equivalents 157
62
Total current assets 1,424,587 1,755,798
Total assets
5,973,061
6,106,945
EQUITY AND LIABILITIES
2023 2022
Share capital 250,000 250,000
Hyperinflation 9,613 8,070
Reserve for net revaluation according to equity method 1,986,231 1,826,331
Retained earnings 501,518 705,094
Proposed dividend 350,000 350,000
Total equity
3,097,362 3,139,495
12 Interest bearing debt 4,620 621
Other debt 3,800
-
Total non-current liabilities 8,420 621
12 Interest bearing debt 2,363,464 2,208,256
15 Trade payables and other debt 503,815 758,573
Income tax -
-
Total current liabilities 2,867,278 2,966,829
Total liabilities 2,875,699 2,967,450
Total equity and liabilities 5,973,061 6,106,945
Notes without reference:
18 Financial risks
19 Contingent liabilities and guarantees
20 Related party transactions
21 Material Accounting Policy Information
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STATEMENT OF CHANGES IN EQUITY
(DKK 1,000)
Share
capital Hyper-inflation
Reserve for
net
revaluation
according to
the equity
method
Retained
earnings
Proposed
dividend
Total equity
Equity at 1 January 2022 250,000 - 1,538,542 755,460 350,000 2,894,002
Change of accounting policy SaaS -
Restated equity at 1 January 2022 250,000 - 1,538,542 755,460 350,000 2,894,002
Profit for the year 11,056 208,616 -37,188 350,000 532,484
Other comprehensive income
Exchange rate adjustments of foreign entities 61,461 -11,489 49,972
Other valuation adjustments in foreign entities -2,986 17,712 -1,689 13,037
Other comprehensive income - -2,986 79,173 -13,178 - 63,009
Comprehensive income - 8,070 287,789 -50,366 350,000 595,493
Transactions with shareholders:
Dividend distributed -350,000 -350,000
Transactions with shareholders - - - - -350,000 -350,000
Equity at 31 December 2022 250,000 8,070 1,826,331 705,094 350,000 3,139,495
Equity at 1 January 2023 250,000 8,070 1,826,331 705,094 350,000 3,139,495
Profit for the year -7,057 284,909 -166,520 350,000 461,332
Other comprehensive income
Exchange rate adjustments of foreign entities -117,088 -37,055 -154,143
Other valuation adjustments in foreign entities 8,600 -7,921 - 679
Other comprehensive income - 8,600 -125,009 -37,055 - -153,465
Comprehensive income - 1,543 159,900 -203,576 350,000 307,867
Transactions with shareholders:
Dividend distributed -350,000 -350,000
Transactions with shareholders - - - - -350,000 -350,000
Equity at 31 December 2023 250,000 9,613 1,986,231 501,518 350,000 3,097,362
Proposed dividend per share amounts to DKK 3,500 in 2023 (2022: DKK 3,500).
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CASH FLOW STATEMENT
(DKK 1,000)
Note 2023 2022
EBITDA 51,587 57,218
16 Changes in working capital 104,968 -408,550
Other non-cash items - -
Net interest paid -146,079 -39,520
Income tax paid -3,179 -11,429
Cash flow from operating activities
7,297 -402,280
9 Purchase of intangible assets -28,074 -18,644
10 Purchase of property, plant and equipment -86 -358
Acquisition of subsidiaries - -213,925
Capital contribution in subsidiaries - -23,637
Dividend from subsidiaries 189,417 195,948
Currency adjustment interest bearing debt -260 -
Repayment of loans - affiliates 40,370 9,630
Issuance of loans - affiliates -7,010 -24,197
Cash flow from investing activities
194,355 -75,183
12 Re-payment of lease debt -4,778 -4,625
12 Increase (re-payment) of intra-group balances 153,221 832,064
Dividend distributed -350,000 -350,000
Cash flow from financing activities
-201,557 477,439
Cash flow for the year 95 -25
Cash and cash equivalents at 1 January 62 87
Cash and cash equivalents at 31 December
157 62
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
1 REVENUE
2023 2022
Commodities 3,003,520 3,952,546
Management and corporate services 161,041 145,985
Total revenue 3,164,561 4,098,531
2 DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES
2023 2022
Impairment of intangible assets -1,152 0
Amortisation of intangible assets -4,621 -1,688
-190 -206
-4,732 -4,582
Total depreciation, amortisation and impairment losses -10,695 -6,476
3
STAFF COSTS 2023 2022
Wages and salaries -82,752 -79,529
Defined contribution pension plans -4,220 -3,692
Other social security costs -402 -400
Share-based payments -7,469 -6,566
Total staff costs -94,843 -90,187
Average number of employees 55 49
Remuneration to executive management and board of directors
Wages and salaries -5,748 -5,209
Pension -119 -103
Short term bonus -2,290 -1,962
Long term bonus -1,067 -
Share-based compensation -2,633 -2,372
Total remuneration to excecutive management and board of directors -11,857 -9,646
4 OPERATING EXPENSES
2023 2022
-2,935,935 -3,876,649
Staff costs -94,843 -90,187
Other operating expenses -82,196 -74,477
Total operating expenses -3,112,974 -4,041,313
Research and development costs recognised in operating expenses -4,565 -3,940
In the staff costs above, DKK 34 million (2022: DKK 36 million) is included regarding salaries to BioMar employees legally
employed in BioMar subsidiaries but organisationally working solely for BioMar Group A/S. Those employees are not
disclosed in the average number of employees.
Depreciation of property, plant and equipment
Depreciation of lease assets
Cost of goods sold
With reference to section 98 b (3) of the Danish Financial Statements Act, remuneration to the Executive Board and Board of
Directors is disclosed combined. For more information on salaries, pensions and share-based payment to the Executive
Management of BioMar Group, see note 4 to the consolidated financial statement.
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
5 FINANCIAL INCOME
2023 2022
3,450 1,488
2,610 1,516
Adjustment earnout - 94,287
Total financial income 6,059 97,291
6
2023 2022
-426 -13
-110,265 -37,399
-51 -74
-1,186 -16,275
Amortisation of debt - -7,891
Total financial expenses -111,928 -61,652
7
2023 2022
7,310 -8,592
7,310 -8,592
Tax on the profit for the year has been calculated as follows:
16,312 -2,541
-3,183 -725
-8,512 -6,132
2,693 806
7,310 -8,592
Specification of tax on the profit for the year:
-99,883 -119,037
113,012 115,771
2,693 806
-8,512 -6,132
7,310 -8,592
-1.6% 1.6%
Total tax
Withholding taxes
Adjustments of prior periods tax charge
Total tax recognised in the income statement
Calculated 22% tax on the profit for the year
Tax effect of:
Other non-deductible costs and non-taxable income
Adjustments of prior periods tax charge
Withholding taxes
Total tax recognised in the income statement
Effective tax rate
Interest income etc.
Financial income from group enterprises
Current tax
Deferred tax
Interest expenses leasing
FINANCIAL EXPENSES
Interest expenses etc.
Financial costs to group enterprises
Exchange rate adjustments
TAX ON PROFIT FOR THE YEAR
Tax on profit for the year is specified as follows:
Tax on profit for the year
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
8 INVESTMENTS IN JOINT VENTURES
Name Country and city of incorporation 2023 2022
BioMar-Sagun TTK Söke, Turkey 50% 50%
BioMar Tongwei (Wuxi) Biotech Co., Ltd. Wuxi, China 50% 50%
2023 2022
Share of profit from continuing operations, joint ventures 44,666 50,131
194,962 178,749
Goodwill regarding immaterial joint ventures
3,256 3,256
198,218 182,005
9
INTANGIBLE ASSETS
Other intangible
assets
Assets under
development
Total
Cost at 1 January 23,777 11,590 35,367
Additions - 28,074 28,074
Disposals - -8 -8
Transferred 11,288 -11,288 -
Cost at 31 December 35,065 28,368 63,434
Amortisation and impairment at 1 January -8,177 - -8,177
Impairment -1,152 - -1,151.70
Amortisation -4,621 - -4,621.40
Amortisation and impairment at 31 December -13,950 - -13,950
Carrying amount at 31 December 21,115 28,368 49,484
Other intangible
assets
Assets under
development
Total
Cost at 1 January 8,396 8,519 16,915
Change of accounting policy - - -
Restated cost at 1 January 8,396 8,519 16,915
Additions - 18,644 18,644
Disposals - -192 -192
Transferred 15,381 -15,381 -
Cost at 31 December 23,777 11,590 35,367
Amortisation and impairment at 1 January -6,489 - -6,489
Amortisation -1,688 - -1,688
Amortisation and impairment at 31 December -8,177 - -8,177
Carrying amount at 31 December 15,600 11,590 27,190
2023
2022
The Group's share of equity in individually immaterial joint ventures
Carrying amount of investments in joint ventures
Below is an overview of the parent company's investments in joint ventures, all recognised to the parent company's share of the
net equity. The Group's equity interests are consistent with it's voting rights.
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
10
PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Other plant,
fixtures and
operating
equipments
Total
Cost at 1 January 1,682 1,463 3,145
Additions - 86 86
Cost at 31 December 1,682 1,549 3,231
Depreciation at 1 January -1,664 -931 -2,595
Depreciation -18 -172 -190
Depreciation at 31 December -1,682 -1,103 -2,785
Carrying amount at 31 December
-0.48 446 446
Land and
buildings
Other plant,
fixtures and
operating
equipments
Total
Cost at 1 January 1,682 1,105 2,787
Additions - 358 358
Cost at 31 December 1,682 1,463 3,145
Depreciation at 1 January -1,589 -800 -2,389
Depreciation -75 -131 -206
Depreciation at 31 December -1,664 -931 -2,595
Carrying amount at 31 December
18 532 550
2023
2022
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
11
RIGHT OF USE ASSETS
Land and
buildings
Other lease
assets
Total
Cost at 1 January 8,649
11,489 20,138
Additions 1,103
- 1,103
Disposals -
- -
Re-measure / modification of lease assets 5,432 4,227 9,658
Cost at 31 December 15,184
15,716 30,899
Depreciation at 1 January -6,920 -10,282 -17,202
Depreciation -1,766 -2,966 -4,732
Depreciation and impairment of disposed assets - - -
Depreciation at 31 December -8,686 -13,248 -21,934
Carrying amount at 31 December
6,498
2,468 8,965
Recognised in the profit and loss statement
Service
Small value
assets
Short term
leases
Total
Expensed in the year
- - - -
Interest Installment
Total
IFRS 16 capitalized lease assets 51
4,778
4,830
Total cash outflows for leases
4,830
For information about lease debt reference is made to note 12 and 17.
Land and
buildings
Other lease
assets
Total
Cost at 1 January 8,649 11,008 19,657
Additions - 730 730
Disposals - -393 -393
Re-measure / modification of lease assets - 144 144
Cost at 31 December 8,649 11,489 20,138
Depreciation at 1 January -5,190 -7,794 -12,984
Depreciation -1,730 -2,852 -4,582
Depreciation and impairment of disposed assets - 364 364
Depreciation at 31 December -6,920 -10,282 -17,202
Carrying amount at 31 December
1,729
1,207 2,936
Recognised in the profit and loss statement Service
Small value
assets
Short term
leases
Total
Expensed in the year - - -
-
Interest Installment
Total
IFRS 16 capitalised lease assets 74 4,625
4,699
Total cash outflows for leases
4,699
2023
2022
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
12 INTEREST BEARING DEBT 2023 2022
2,359,091 2,205,870
Leasing debt (long-term) 4,620 621
Leasing debt (short-term) 4,372 2,386
Total interest bearing debt 2,368,084 2,208,877
2,368,084 2,208,877
2023
Balance at 1
January
Cash flows Other
Balance at 31
December
Payable to affiliates (short-term) 2,205,870 153,221 - 2,359,091
Leasing debt (long-term) 621 - 3,999 4,620
Leasing debt (short-term) 2,386 -4,778 6,765 4,372
Total interest-bearing assets and liabilities 2,208,877 148,443 10,764 2,368,084
2022
Balance at 1
January
Cash flows Other
Balance at 31
December
Payable to affiliates (short-term) 1,373,806 832,064 - 2,205,870
Leasing debt (long-term) 2,250 - -1,629 621
Leasing debt (short-term) 4,539 -4,625 2,472 2,386
Total interest-bearing assets and liabilities 1,380,595 827,439 843 2,208,877
Payable to affiliates (short-term)
Fair value of interest bearing debt
Biomar Group A/S' interest bearing debt is mainly taken out in DKK. Movements in the category "other" comprise additions,
disposals and re-measurements occured during the reporting period on leasing debt. For 2023 the company has paid 4.8m
DKK (2022: 4.7m DKK) regarding lease contracts of which 0.1m DKK (2022: 0.1m DKK) is related to interests and 4.7m DKK
(2022: 4.6m DKK) related to re-payments of lease debt.
INTEREST RATE RISKS
Due to the chosen funding of investments and the ongoing operations BioMar Group A/S is exposed to fluctuations in the
interest rates. In 2022 BioMar Group A/S transfered the full risk management regarding interest rate risk to the parent
company through which BioMar Group A/S is financed - see also note 21. Consequently fixed rate loans account for 0% in
2023 (2022: 0%) of the total interest bearing debt. For debt raised on floating terms fluctuations in the interest rates of +/- 100
bps will have a hypothetic impact on the profit for the year and equity of +/- DKK 18.4 million in 2023 (2022: +/- DKK 17.2
million).
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
13
RECEIVABLES
2023 2022
Trade receivables 1,278,047 1,627,602
Interest-bearing receivables 12,577 81,272
Other receivables 31,139 37,143
Total receivables 1,321,763 1,746,017
Non-current receivables - 2,440
Current receivables 1,321,763 1,743,577
Total 1,321,763 1,746,017
Credit risks
The parent company's credit risk relates primarily to receivables from subsidiaries.
14 INVENTORIES
2023 2022
Raw materials 72,700 -
Total inventories 72,700 -
15
TRADE PAYABLES AND OTHER DEBT 2023 2022
Trade payables 486,737 731,270
Payables to group enterprises 6,018 12,503
Other debt 11,060 14,800
Total trade payables and other debt 503,815 758,573
16
CHANGES IN WORKING CAPITAL 2023 2022
Change in receivables 381,802 -369,205
Change in trade payables and other debt -239,730 -39,345
Changes in inventories -72,700 -
Total changes in working capital 69,372 -408,550
17
DEFERRED TAX 2023 2022
Deferred tax 1 January 7,127 6,104
Deferred tax adjustment at 1 January -1,382 -
Restated deferred tax 1 January 5,745 6,104
Deferred tax for the year recognised in profit and loss statement -3,183 1,023
Deferred tax at 31 December, net 2,563 7,127
Deferred tax pertains to:
Intangible assets -4,646 -3,433
Property, plant and equipment 7,920 10,560
Provisions -1,548
Other liabilities 836 -
Total deferred tax at 31 December 2,563 7,127
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
18 FINANCIAL RISKS
Carrying
amount
Contractual
cash flows
< 1 year 1 - 5 years > 5 years
Non-derivative financial instruments
2,365,109 2,365,109 2,365,109 - -
Lease debt 8,993 9,207 4,496 4,712 -
486,737 486,737 486,737 - -
11,060 11,060 7,260 3,800 -
2,871,899 2,872,113 2,863,602 8,512 -
3,345 3,345
Total 2,875,459 2,866,947 8,512 -
Carrying
amount
Contractual
cash flows
< 1 year 1 - 5 years > 5 years
Non-derivative financial instruments
2,218,373 2,218,373 2,218,373 - -
Lease debt 3,007 3,
044 2,415 629 -
731,270 731,270 731,270 - -
14,800 14,800 14,800 - -
2,967,450 2,967,487 2,966,858 629 -
- - - -
Total 2,967,487 2,966,858 629 -
Other debt
2023
Payable to affiliates
Trade payables
Trade payables
Recognised in balance sheet total
Contractual obligations to purchase intangible assets
BioMar Group A/S is predominantly financed by the parent company through short-term credit facilities. Reference is made
note 21 in the consolidated financial statements for further information.
The available financial ressources are deemed sufficient.
2022
Payable to affiliates
Other debt
Recognised in balance sheet total
Contractual obligations to purchase intangible assets
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
18 FINANCIAL RISKS (continued)
Currency
Cash and
receivables
Financial
liabilities
(non-
derivatives)
Derivatives to
hedging of
future cash
flows
Likely
change in
exchange
rate
Hypothetical
effect on the
profit for the
year
Hypothetical
effect on the
equity
EUR / DKK 589,616 -586,404 - +0.5% 13 13
USD / DKK 545,599 -523,433 - +5% 864 864
Others 137,010 -122,123 - +5%/10% 950 950
1,272,225 -1,231,960 - 1,827 1,827
Currency
Cash and
receivables
Financial
liabilities
(non-
derivatives)
Derivatives to
hedging of
future cash
flows
Likely
change in
exchange
rate
Hypothetical
effect on the
profit for the
year
Hypothetical
effect on the
equity
EUR / DKK 747,498 -516,711 - +0.5% 900 900
USD / DKK 880,433 -564,569 -296,928 +7% 1,034 1,034
Others 73,855 -67,482 - +7%/10 442 442
1,701,786 -1,148,762 -296,928 2,376 2,376
Currency
Notional
principal
Accumulated
capital
gain/(loss)
recognised in
equity
Fair value
Maximum
number of
months to
expiry
Notional
principal
Accumulated
capital
gain/(loss)
recognised in
equity
Fair value
Maximum
number of
months to
expiry
USD - - - - -296,928 - 17,053 6
EUR - - - - - -
- - - -296,928 - 17,053
Categories of financial instruments 2023 2022
Derivative financial assets (fair value hierarchy level 2) - 17,053
Derivative financial liabilities (fair value hierarchy level 2) - -
Hedging instruments measured at fair value, net - 17,053
Receivables 1,321,763 1,728,964
Cash and cash equivalents 157 62
Financial assets measured at amortised cost 1,321,920 1,729,026
Interest bearing debt 2,368,084 2,208,877
Trade payables and other debt 507,615 758,573
Financial liabilities measured at amortised cost 2,875,699 2,967,450
Contingent considerations (fair value hierarchy level 3) - -
Financial liabilities measured at fair value through profit and loss - -
2023
Currency hedging agreements regarding future transactions
2022
The sensitivity analysis shows the impact on the income statement and equity from likely changes in exchange rates in main
currencies.
2022
2023
Net amounts outstanding for currency hedging agreements at 31 December for BioMar Group A/S, which satisfy the
requirements for hedge accounting and which relate to future transactions.
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
19 CONTINGENT LIABILITIES AND GUARANTEES
Guarantees
Contingent liabilities
Joint taxation liability
BioMar Group A/S participates in a Danish joint taxation arrangement with Schouw & Co. (cvr no. 63965812) serving as the
administration company, and is therefore jointly and severally liable for the corporation tax and also for obligations, if any, to
withhold tax on dividend, interests and royalties. The total net liability to the Danish tax authorities is recognised in the annual
report of Schouw & Co. Potential corrections to the jointly taxed income and tax at source may result in a higher liability for
the Group.
BioMar Group is partially financed by resources of the parent company Schouw & Co. as well as a number of committed and
to a lesser extent uncommitted credit facilities. BioMar Group, like other major subsidiaries in the Schouw & Co. Group, co-
guarantees these facilities totaling DKK 8,165 million, of which DKK 5,542 million is utilised. In addition, a number of other
smaller facilities totaling DKK 56 million established with Schouw & Co.'s global banker HSBC, of which DKK 48 million is
utilised.
In addition, BioMar Group A/S has provided corporate guarantees of DKK 249 million towards banks and other financial
t
BioMar Group A/S is not directly part of any pending legal disputes. Further reference is made to the comments in the
consolidated financial statements, note 18.
Pending lawsuits
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NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
(DKK 1,000)
Note
20
Schouw & Co. owns 100% of the shares in BioMar Group A/S.
2023 2022
Revenue 3,003,520 3,952,546
Management fee received 134,320 120,151
Management fee paid -2,600 -2,500
Interest paid -110,265 -37,399
Interest received 2,610 1,516
At 31 December the company has the following debt and receivables:
Receivables from BioMar Group companies 1,245,363 1,669,699
Debt to BioMar Group companies -2,365,109 -2,218,373
At 31 December the company has the following debt and receivables: 2023 2022
Receivables from joint ventures 44,709 36,097
Transactions between BioMar Group A/S and the other entities in the Schouw & Co. Group appear below;
Related parties also comprise the joint ventures in which BioMar has control or significant influence.
Joint ventures
RELATED PARTY TRANSACTIONS
Members of the Board of Directors, the key management personnel as well as their family members are considered related
parties. Furthermore, related parties are companies in which the above-mentioned group of people has significant interests.
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Note
20
Material Accounting Policy Information
BioMar Group A/S is a private limited company domiciled in Denmark.
The parent company accounts for BioMar Group A/S are prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the EU and additional Danish
disclosure requirements pursuant to the Danish Financial Statements Act applying to large class-
C
entities. General reference is made to the description of accounting policies provided in the
consolidated financial statements. Matters particular to the parent company are described in the
following.
BioMar Group A/S has implemented the standards and interpretations which are effective from 1
January 2023. The parent company accounting policies are consistent with those applied last
year.
Investments in Subsidiaries and Joint Ventures
The proportionate share of the profit or loss from subsidiaries and joint ventures after tax and after
elimination of the proportionate share of intra-group gains or losses is recognised in the income
statement.
Investments in subsidiaries and joint ventures are, at first recognition, measured at cost
and subsequently at the proportionate share of the companies’ net assets calculated in
accordance with the parent company’s accounting policies with deductions or addition of the
proportionate share of unrealised intra-group gains or losses and with addition of goodwill
calculated according to the acquisition method. Investments in entities with negative net assets
are recognised at DKK 0, and receivables and loans from the entities, if any, are written down
corresponding to the parent company’s share of the negative net assets to the extent the amount
is deemed irrecoverable. In case the negative accounting values of the net assets exceed the
receivable amounts, the remaining amount is recognised as a liability in case the parent company
has a judicial or actual obligation to cover the negative balance.
The net revaluations of investments in subsidiaries are transferred to the designated reserve
under equity in case the carrying amount exceeds the acquisition price. Recently acquired or
established companies are recognised in the financial statements from the date of acquisition.
Sold or liquidated companies are likewise recognised until the date of the sale or liquidation.
Share Holders’ Equity
Dividend
Dividend is recognised as a liability at the time of adoption by the shareholders at the annual
general meeting (the date of declaration). Dividends expected to be declared in respect of the
year are stated as a separate line item under equity.
Reserve for net revaluation according to the equity method
Net revaluations of subsidiaries and joint ventures are recognised under equity as reserve for net
revaluations to the extent that the carrying value exceeds the cost price of the investment.
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