Annual
Report
2022/23
1 April 2022 – 31 March 2023
Contents
Introduction
5 To our shareholders
7 Highlights
8 Matas at a glance
9 Financial highlights 2022/23
10 ESG highlights 2022/23
11 Five-year key financials
Strategy and financial ambitions
13 Growing Matas Group
14 Strategy execution 2022/23
16 Industry and market trends
18 Financial guidance 2023/24
Results
20 Results
20 Costs and operating performance
23 Profit for the year
23 Statement of financial position
24 Environment Social Governance
at Matas
26 ESG strategy
Governance
28 Risk management
31 Corporate governance
35 Board of Directors
37 Executive Management
38 Shareholder information
Statements
41 Statement by the Board of Directors
and the Executive Management
42 Independent auditor's report
Consolidated
financial statements
47 Statement of
comprehensive income
48 Statement of cash flows
49 Statement of financial position
50 Statement of changes in equity
52 Summary of notes to the
financial statements
53 Notes to the financial statements
82 Matas Group
Parent company
financial statements
84 Parent company financial statements
Other
95 Definitions of key financials
96 Interim financial highlights
Growing Matas Group
Matas Group offers the broadest assortment
within health, beauty and wellbeing in Denmark.
ESG Report 2022/23
Read more about Matas Group's ESG initia-
tives in our ESG Report.
Read more
ESG Report
2022/23
1 April 2022 – 31 March 2023
Matas A/S | Rørmosevej 1, DK-34 50 Allerød | CV R nr. 27 52 84 06
Page 3 of 98
Matas | Annual Report 2022/23
Matas’ financial year 2022/23 has been remarkable for its
progress in a highly volatile environment. Revenue grew by
more than 3% to DKK 4,490 million and EBITDA before special
items improved to DKK 809 million despite cost inflation. Profit
before tax grew by 6% to DKK 373 million and free cashflow
grew by DKK 144 million to DKK 423 million.
TO OUR SHAREHOLDERS
A year of progress
and growth
The central achievement of the year is that
Matas has been able to deliver both growth
and earnings in line with our Growing Matas
Group strategy. Matas grew despite being
up against two exceptional years where “life
under COVID-19” drove a spike in demand
for health and personal care products. Matas
also grew despite unprecedented shifts in
the macroeconomic environment and in
consumption patterns.
For the first time since March 2020, the
COVID-19 pandemic was not a significant
factor in Matas’ performance or daily ope-
rations. But as one crisis receded, new ones
made way: War in Ukraine, disruptions in
global supply chains, rampant inflation and
energy prices, and a constantly looming Lars Vinge Frederiksen
Chairman
Gregers Wedell-Wedellsborg
CEO
fear of recession and slowdown in private
consumption.
In retail overall, we saw consumers gearing
down spending on big ticket items such
as electronics, cars, and home improve-
ment. We saw travel retail and spending on
services bouncing back. But we also saw that
consumers continued spending on beauty,
care and wellbeing. We saw a shift in shop-
ping patterns with customers returning to
the physical stores, shopping centers and
high streets while holding back online. In this
environment, Matas did particularly well and
gained market share online with double digit
growth in a flat market.
There are three drivers of growth in Matas:
Overall demand for the beauty category
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 5 of 98
which once again proved resilient despite
tightening of household budgets. Pricing
where we pursued a strategy of price mode-
ration, down-trading options and sharing the
inflationary pressure across the value chain
– and as result avoided losing sales volume.
And finally, assortment expansion which is
the key long-term driver in the Growing Matas
Group strategy.
At the same time, our customers have
shopped more frequently and rewarded
Matas with record-high customer satisfaction
scores. Skilled and motivated staff across all
our sales channels, broad health and beauty
assortment and fast online delivery have
been key to success. Furthermore, our loyalty
club with 1.9 million members has evolved
and strengthened the bond between our
customers and Matas. This differentiates Matas
lower logistics costs and fast online delivery of
an even wider assortment.
Based on the satisfactory financial results
and in light of the significant investment in
Matas Logistics Center, the Board of Directors
proposes that a dividend of DKK 77 million,
equivalent to DKK 2.00 per share, be declared
and approved on 29 June 2023 at the Annual
General Meeting.
Once again, we would like to take the oppor-
tunity to praise our dedicated colleagues in
our stores around the country, in the logistics
centers and at the head office. The good
results and historically high customer satis-
faction rates are the fruits of collaborative
company-wide culture and energetic and
dedicated daily effort. Thank you.
Lars Vinge Frederiksen
Chairman
Gregers Wedell-Wedellsborg
CEO
“ As a part of our growth strategy, we have
now entered new geographic markets.”
The financial year 2023/24 is expected to be
volatile. Rising interest rates affect a great
number of households and, combined with
inflation and uncertainty around energy
prices, there is still a risk of recession. This
risk is partly mitigated by nationwide wage
increases, but severe global crises as the
ongoing war in Ukraine will most likely impact
the Danish economy negatively.
However, Matas has historically performed
well during recessions and has entered the
new year with good sales momentum. Matas
also has a particularly sound financial foun-
dation with low debt and a low gearing which
leaves room for investments to maintain and
expand our position towards our 2025/26
financial ambition of reaching more than DKK
5 billion in revenues with an EBITDA margin
between 17-18%.
The construction market is no longer over-
heated, and we have signed an agreement
to start construction of our new automated
logistics center in 2023/24, so that we can
support Matas’ growth and profitability with
+18 0
new brands added
in a market characterised by intensifying
competition.
As part of our growth strategy, we have
now entered new geographic markets.
Not backed by full-scale marketing, but to
test and learn and find yet another path
for organic growth over the years to come.
In Germany, Matas is now present in more
than 200 beauty stores and perfumeries that
sell our iconic private label brand, Matas
Striberne. In Sweden and Norway, we have
launched the matas.se and matas.no web
shops, thus gaining access to 16 million new
online customers.
Our earnings for the year improved slightly
compared to previous years and profitability
reached the top end of our guidance for the
year. This reflects our ability to manage the
inflationary pressure. We took certain cost
measures throughout the year and still had
room to continue our investment in initiatives
that will drive long-term growth.
Corporate governance, sustainability and
social impact become increasingly important
to our many stakeholders, and we have taken
our efforts as well as our reporting to a new
level. We have made progress across all three
strategic priority pillars: Sustainability, public
health as well as diversity and inclusion.
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 6 of 98
Highlights
Financials and KPIs
• Revenue growth of 3.3% despite
headwinds
• EBITDA before special items sustained
despite cost inflation and 1 percent-
agepoint “margin investment” in
future growth
• Profit before tax improved by 6.2%
• Cash flow improved by DKK 144
million
• Gearing of 2.0x
• Q4 growth of 8.3%
• Good sales momentum in 2023/24
• Dividend of DKK 2.00 in light of MLC,
growth investments and macro
prudence
Strategy
• Assortment expansion strategy is
working – delivering more than DKK
100 million growth in new categories
• Comeback of physical stores to
pre-COVID-19 levels
• Online growth and market share
gains in a flat market
• Cost ratios maintained despite infla-
tionary pressures
• Matas Logistics Center signed and
scheduled to open in spring 2025
• International is still small, but growing
briskly
Guidance
• Organic revenue growth of 3-6%
• EBITDA margin (before special items)
around 17%
• CAPEX of DKK 425-450 million
including DKK 250 million for MLC
• On track to deliver on long-term
financial ambitions
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 7 of 98
Matas at a glance
DKKb 4.5
Revenue
#1
Online market leader in
health and beauty
+2,000
Employees
260
Physical stores
across Denmark
1.9 million
Club Matas
members
With revenue at DKK 4.5 billion, Matas
Group is Denmark’s largest health and
beauty retailer. Matas was established
in 1949 as a chain of independent
materialists. Today, Matas Group is a listed,
integrated omnichannel retailer with own
brands, 1.9 million Club Matas members,
260 physical stores and matas.dk, the
second most visited web shop across all
categories in Denmark as well as multiple
other speciality web shops.
Revenue by sales channel
%
Retail revenue by category
%
71
27
2
Online
Mass Beauty
Other
Physical stores
High-End Beauty
Wholesale
Health and Wellbeing
37
34
26
3
2022/23
2022/23
Matas | Annual Report 2022/23
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2022/23
2021/22
2020/21
44.9%
45.3%
44.2%
2022/23
2021/22
2020/21
322
358
358
2022/23
2021/22
2020/21
4,490
4,344
4,164
2022/23
2021/22
2020/21
18.0%
18.5%
19.1%
2022/23
2021/22
2020/21
423
279
774
71
27
2
44.9%4,490
18.0% 423
322
Financial highlights 2022/23
Revenue split
(%)
Adjusted profit after tax
(DKKm)
Gross margin
(%)
Free cash flow
(DKKm)
Revenue
(DKKm)
EBITDA margin before special items
(%)
Wholesale
Online
Physical stores
Total revenue rose by 3.3% in 2022/23 driven by online
growth of 10.7%. 1% to 3% announced in Trading
Update Q3.
Gross profit for 2022/23 amounted to DKK 2,014 million, up
from 1,966 in 2021/22.
EBITDA margin before special items was 18.0% for
2022/23. 17% to 18% announced in Trading Update Q3.
Adjusted profit after tax for 2022/23 amounted to DKK 35
million lower than for 2021/22, due to increasing interests
and higher taxes as Matas brand was fully amortised in
2021/2 2.
Online channels grew to a share of 27% in 2022/23
comparred to 25% in 2021/22.
Free cash flow increased by DKK 144 million to DKK 423
million in 2022/23, mainly driven by cash generated
from operations, but also less corporate tax payments
compared to 2021/22.
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
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2022/23
2021/22
2020/21
5,763
6,227
0
2022/23
2021/22
2020/21
7.5
7.6
7.7
2022/23
2021/22
2020/21
50,318
47,187
0
2022/23
2021/22
2020/21
47.8
49.3
0*
2022/23
2021/22
2020/21
44,019,944
39,081,783
37,949,783
2022/23
2021/22
2020/21
91
92
92
2022/23
2021/22
2020/21
0 3 6 9 12 15
12.5
12.8
0
2022/23
2021/22
2020/21
41
36
41
SOCIALENVIRONMENT GOVERNANCE
UN Global Compact
Matas continues as an UNGC signatory
and reports separately on Commu-
nication on Progress through UNGC's
platform.
ESG Board implemented
5 times a year 11 board members meet
in the ESG Board to oversee ESG goal
implementation and progress.
Updated Supplier Code
of Conduct (CoC)
Matas has introduced a new Supplier
CoC setting out suppliers rules of
conduct in relation to environment
and people.
EU taxonomy reporting
Matas now reports on taxonomy
eligibility and alignment.
Double materiality assessed
Matas’ double materiality has been
assessed applying same impact and
materiality levels as described in the
CSRD standards.
* Matas has introduced total employee turnover to its ESG reporting. However, due to limited data availability employee turnover for FY2020/21 has not able to be calculated.
7. 5 %
from FY 2021/22
1%
from FY 2021/22
7%
from FY 2021/22
1.5pp
from FY 2021/22
5M
from FY 2021/22
1pp
from FY 2021/22
3%
from FY 2021/22
5pp
from FY 2021/22
Carbon emissions – Scope 1 and 2
Absolute CO
2
e, tons
Employee satisfaction
Satisfaction & motivation score
Carbon emissions – Scope 3
Absolute CO
2
e, tons
Employee turnover
%
Plastic reductions
Count
Gender diversity, overall
% of female representation
CO
2
intensity
Revenue, tons/DKKm
Gender diversity, other mmt. level
% of female representation
ESG highlights 2022/23
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 10 of 98
Five-year key financials
* Comparative figures for 2018/19 are not comparable with the figures for 2019/20, 2020/21, 2021/22 and 2022/23 due to the
implementation of IFRS 16 effective 1 April 2019 and IFRS 9 and 15 effective 1 April 2018. Firtal Group is included in key financials
from 13 November 2018, Kosmolet from 11 June 2019 and Web Sundhed from 12 April 2021. For definitions, see “Definitions of
key financials”.
1)
Total investments, i.e. CAPEX, acquisitions, etc.
(DKKm) 2022/23 2021/2 2 2020/21 2019/20 2018/19*
Statement of comprehensive
income
Revenue 4, 4 89. 6 4,344.2 4,163.6 3,688.5 3,541.3
Gross profit 2,014.4 1,966.0 1,8 41.2 1,64 0.4 1,588.8
EBITDA 804.2 8 09.6 788.0 678.4 52 9.7
EBIT 423.1 388.3 380.4 292.9 363.3
Net financials (50.3) (37. 3) ( 2 7. 0 ) (43.0) (21.4)
Profit before tax 372.8 351.1 353.4 249.9 341.9
Profit for the period after tax 280.7 276.5 269.0 191.2 263.1
Special items 4.8 (7.0) 9.1 21.5 18.9
EBITDA before special items 8 09.0 802.6 7 97.1 699.9 548.6
Adjusted profit after tax 322.1 3 57. 5 3 5 7. 5 282.6 343.2
Statement of financial position
Total assets 6,280.2 6,055.3 6,143.1 6,588.3 5,538.8
Total equity 3,363.1 3,152.3 3,038.9 2,764.0 2,669.9
Net working capital 23.0 (12.2) (126.1) 90.3 (139.7)
Net interest-bearing debt 1,642.4 1,648.8 1,72 7. 2 2,499.6 1,504.1
Statement of cash flows
Cash flow from operating activities 679.0 510.5 952.0 446.8 472.8
Cash flow from investing activities (92.2) (50.5) (50.5) (123.8) (63.5)
Free cash flow 423.2 278.9 774.1 111. 2 233.8
(DKKm) 2022/23 2021/22 2020/21 2019/20 2018/19*
Ratios
Revenue growth 3.3% 4.3% 12.9% 4.2% 2.2%
Underlying like-for-like
revenue growth 3.1% 2.1% 13.5% 0.7% 0.5%
Gross margin 44.9% 45.3% 44.2% 44.5% 44.9%
EBITDA margin 17. 9 % 18.6% 18.9% 18.4% 15.0%
EBITDA margin before special items 18.0% 18.5% 19.1% 19.0 % 15.5%
EBIT margin 9.4% 8.9% 9.1% 7. 9 % 10.3%
Cash conversion 59.9 % 54.5% 109.7 % 45.3% 82.0%
Earnings per share, DKK 7. 41 7. 27 7. 0 4 5.01 6.96
Diluted earnings per share, DKK 7.35 7. 2 0 6.96 4.96 6.93
Dividend per share (proposed), DKK 2.00 2.00 2.00 0.00 3.00
Share price, end of year, DKK 84.2 96.3 83.1 42.7 65.8
ROIC before tax including goodwill 9.4% 9.9 % 9.6% 8.5% 11. 3 %
ROIC before tax excluding goodwill 45.0% 50.1% 40.6% 35.4% 101.3%
Net working capital as a percentage
of LTM revenue 0.5% (0.3)% (3.0)% 2.4% (3.9)%
Investments
1)
as a percentage
of revenue 5.7% 5.3% 4.3% 9.1% 6.7%
Investments excluding acquisitions as a
percentage of revenue 5.7% 4.2% 3.6% 5.2% 3.6%
Net interest-bearing
debt/EBITDA before special items 2.0 2.1 2.2 3.6 2.7
Number of transactions (millions) 23.2 22.0 20.9 20.9 21.3
Average basket size (DKK) 188.8 192.2 19 7. 5 174.7 165.1
Number of stores 260 260 265 268 278
Club Matas members (millions) 1.87 1.74 1.69 1.66 1.64
Club Matas Plus members (thousands) 68.9 52.6 21.5 - -
Average number of employees (FTE) 2,124 2,164 2,152 2,197 2,149
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Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 11 of 98
Growing
Matas Group
In August 2021, Matas launched its five-
year Growing Matas Group strategy.
Based on the purpose ‘Health and
Beauty for Life’, the Group will grow
by selling more to existing customers
– especially the 1.9 million Club Matas
members – driven by an expansion of
the assortment.
Strategic tracks
Commercial: Matas offers the broadest and most
attractive health and beauty assortment to the
Danish consumers. Going forward to 2025/26,
Matas will continually expand its online assortment
with new brands, products and categories.
E-commerce: matas.dk is the second most visited
web shop in Denmark and the number one online
destination for health and beauty in Denmark.
Furthermore, Matas Group runs a number of niche
web shops operated by Firtal and Web Sundhed,
an online pharmacy service platform. Going
forward to 2025/26, Matas aims to strengthen its
market leadership through continuous customer
satisfaction improvements.
Connected retail: With 260 stores nationwide and
more than 2,000 trained beauty and health advi-
sors, Matas has the most accessible network and a
value-adding service concept. Matas aims to offer
personalised advice and seamless shopping across
all channels by strengthening its in-store digital
services and adapting the network to market
demands.
Brands: As the owner of a category-leading brand
portfolio, Matas offers distinctive and unique
branded products with national recognition. Going
forward to 2025/26, Matas will expand its House of
Brand portfolio and grow the Matas Brands busi-
ness via own channels and through wholesale.
Logistics: With in-house logistics, Matas delivers a
fast and consistent experience to both customers
and suppliers. Going forward to 2025/26, Matas will
invest in a new Matas Logistics Centre (MLC) with
automated logistics to enhance effectiveness and
enable assortment expansion.
Internationalisation: A selection of Matas’ own
brands including Matas Striberne, Matas Natur and
My Moments, is available in more than 200 stores in
Germany and in January 2023 the web sites matas.
no and matas.se were launched.
ESG: As one of the most wellknown brands in
Denmark, Matas is recognised as a responsible
company by consumers. Going forward to 2025/26,
Matas aims to make continued progress on its ESG
focus areas: Reducing climate footprint, contrib-
uting to public health and championing inclusion.
The Group aims to grow revenue to more than
DKK 5 billion excluding M&A, with an EBITDA
margin before special items between 17% and
18% enabled by accumulated investments
of DKK 1-1.3 billion for the period 2021/22 to
2025/26.
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Page 13 of 98
Strategy execution
2022/23
Commercial: Expand assortment
• Introduced more than 180 new brands
during the financial year 2022/23 to our
customers and 1.9 million Club Matas
members. Club Matas Plus reached almost
70,000 paying members, who combined
with the Club Matas members contributed
to 90% of the revenues from Matas stores
and matas.dk in 2022/23.
• Assortment expansion was concentrated
within the following categories:
· Skincare
· Make-up
· Haircare
· Mother and child
· Sports nutrition and equipment
· Sexual wellness
· Vitamins and supplements
E-commerce: Extend market leadership
• Realised revenue growth of 11% in the finan-
cial year 2022/23. The growth was driven
by an increase in number of transactions
compared to previous year.
• Customer satisfaction reached an all-time
high during the year, with a Net Promotor
Score (NPS) of 75 on matas.dk.
• Matas.dk was once again the second most
frequently visited web shop in Denmark in
2022.
435
480
650
1,260
26%
0%2%
1%
Vitamins,
supplements
and health food
Sexual
wellness
Sports nutrition
and
equipment
Mother
and
child
Matas’ online share Estimated online market, DKKm
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Connected retail: Consolidate and connect stores
• Revenue from physical stores was in line with previous finan-
cial year, despite a decrease in basket size as a result of a
post COVID-19 normalization. The number of transactions
increased compared to previous year, and customer satis-
faction reached a NPS of 73 in 2022/23.
• The pick-in-store concept was expanded to the entire store
network and thereby executed around 7% of all online orders
during Q4. Beyond the customer benefit of very fast delivery,
pick-in-store is cheaper and greener, due to lower logistics
and packaing costs.
• Consolidated the cooperation between the physical Matas
stores and the online web shop matas.dk through increased
focus on connected retail, which gives the customers the
opportunity to shop the entire online assortment of 60,000
SKUs when visiting their local Matas store with typically 10,000
SKUs.
Brands: Grow the portfolio of House Brands
• In September 2022, Matas acquired the remaining 60% of the
shares in Miild A/S, a Danish beauty brand with certification
from AllergyCertified, Svanemærket and ECOCERT. Miild was
integrated in to our House of Brands business unit, which also
includes Nilens Jord, to capture synergies.
• Nilens Jord was once again the most best selling make-up
brand in the Matas stores and delivered 5% annual revenue
growth.
• Matas Striberne launched a number of new products and
especially the line Curly Girl was well-received among the
Matas customers.
Logistics: Automate logistics
• After postponing the construction of Matas Logistics Center
(MLC), due to rising prices on materials and labour shortages
in the construction sector, an agreement to build a 32,500 m
2
Matas Logistics Center was signed on 30 May 2023.
Internationalisation: Geographical expansion
• Selected products from Matas Striberne, Matas Natur and My
Moments are now available at 200 doors in Germany.
• Launched the web shops matas.no and matas.se on 31
January 2023 which now offer Norwegian and Swedish
customers the products and services known from matas.dk.
ESG: Impact society in a positive way
• Among other activities to reduce energy consumption in
the stores during the financial year, Matas has sourced
renewable energy certificates (REC) to cover 1,600 MWh of
energy use which equates to approximately 10% of the total
consumption for the financial year 2022/23.
• Read more about Matas Group's ESG initiatives in our ESG
Report 2022/23 here: ESG Report 2022/23
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Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
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Industry and
market trends
During the financial year 2022/23,
the health and beauty market
was driven by evolving consumer
preferences and increased awareness
around sustainability and personal
wellbeing. Some of the key trends and
developments include:
#1
Digitalisation and
e-commerce
Online shopping continued
to gain traction, with
consumers increasingly
relying on e-commerce
platforms for their health and
beauty needs. Matas Group
once again proofed its worth
with its omnichannel strategy
and by using social media,
influencer marketing, and
virtual consultations to reach
consumers.
#2
Sustainability and
eco-friendliness
Consumers in Denmark
increasingly looked for
eco-friendly and sustain-
able products. Matas Group
continued its focus on using
natural, organic, and cruel-
ty-free ingredients and at
the same time encouraged
consumers to return empty
packaging for recycling.
#3
Health and
wellbeing focus
In general there was a
growing demand for prod-
ucts that promote overall
health and wellbeing. This
was also evident in the
increase of sales within the
category Health and Well-
being in Matas Group.
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#4
Clean
beauty
The clean beauty move-
ment, which emphasises
transparency in ingre-
dients and manufac-
turing processes, gained
momentum in Denmark. The
Danish beauty brand Miild
with a number of certifica-
tions was fully acquired and
merged with Matas Group
during the financial year
2022/23.
#5
At-home beauty
treatments
As people became more
conscious of their health
and safety, there was an
increased interest in at-home
beauty treatments. DIY
beauty kits and at-home
spa treatments were more
popular than ever and
especially within DIY nail kits,
Matas Group expanded its
range of products.
#6
Gender-neutral
and inclusive
products
The Danish market saw a rise
in gender-neutral and inclu-
sive products, with brands
catering to diverse consumer
needs and preferences,
regardless of gender iden-
tity. This included skincare,
cosmetics, and personal
care products formulated for
all skin types and tones.
#7
Plant-based
and vegan
products
As awareness of the environ-
mental impact and ethical
concerns associated with
animal-derived ingredients
grew, Danish consumers
increasingly sought plant-
based and vegan alter-
natives in the health and
beauty sector.
#8
Telemedicine
and virtual
consultations
The health and beauty
industry in Denmark saw
a growth in telemedicine
and virtual consultations, as
consumers sought profes-
sional advice and guid-
ance remotely. At matas.
dk consumers are offered
consultations with material-
ists, dermatologists and other
health professionals.
These trends and developments indicate a consumer-driven
shift towards sustainable and online driven demand in the
Danish health and beauty market during the financial year
2022/23.
Industry and market trends
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Financial guidance 2023/24
Revenue is expected to grow between 3% and 6%. The EBITDA margin
before special items is expected around 17%. Investments, excluding
M&A, are expected in the DKK 425-450 million range, including
approximately DKK 250 million for the Matas Logistics Center.
Matas’ commercial performance and
strategic progress were strong in 2022/23.
However, the financial year 2023/24 is
expected to be characterised by macroeco-
nomic uncertainty and volatility.
Rising interest rates affect a great number of
households and combined with inflation and
uncertainty around energy prices, there is still
a risk of recession.
Revenue
For the financial year 2023/24, Matas expects
organic revenue to grow between 3% and 6%,
based on the following core assumptions:
• Moderate underlying market growth, driven
by modest price increases below the levels
of 2022/23
• Limited impact of a potential recession on
the health and beauty market
ments, can only be partly mitigated by
efficiency measures in 2023/24
• Energy prices will be lower than the levels
seen during 2022/23
CAPEX
Matas expects investments, excluding M&A,
in the DKK 425-450 million range for 2023/24,
based on the following assumptions:
• Underlying CAPEX around 4% of revenue,
driven in particular by the ongoing digital
transformation, store network investments
as well as the continued upgrade of the ERP
system
• Investments in Matas Logistics Center of
around DKK 250 million to support Matas’
long-term growth and profitability
Forward-looking statements
The annual report contains statements relating
to the future, including statements regarding
Matas Group’s future operating results, finan-
cial position, cash flows, business strategy and
future targets. Such statements are based on
Management’s reasonable expectations and
forecasts at the time of release of this report.
Forward-looking statements are subject to
risks and uncertainties and a number of other
factors, many of which are beyond Matas
Group’s control. This may have the effect that
actual results may differ significantly from the
expectations expressed in the report. Without
being exhaustive, such factors include general
economic and commercial factors, including
market and competitive conditions, supplier
issues and financial and regulatory issues, IT
failures as well as any effects of healthcare
measures that are not specifically mentioned
above.
• A continuing underlying channel shift from
physical to online retail sales
• Increased competition in the online health
and beauty market
• Continued progress on international sales
will drive incremental growth
EBITDA margin
Matas expects an EBITDA margin before
special items around 17%, based on the
following assumptions:
• The OPEX commitments for strategic initia-
tives, including assortment expansion and
international growth will affect the 2023/24
EBITDA margin adversely by around 1
percentage point
• The impact from up to 6% wage growth
related to the collective bargaining agree-
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 18 of 98
Results
Revenue
Matas Group generated total revenue of DKK
4,490 million for the financial year 2022/23
corresponding to a year-on-year increase
of 3.3% from DKK 4,344 million in 2021/22. The
growth was driven by an increase in online
sales.
Retail revenue from own stores and web shops
also grew 3.3% and underlying sales increased
by 3.1% for the financial year 2022/23
compared to 2021/22.
Revenue by category
as well as sales within the health category.
Matas’ own brands, especially Nilens Jord and
Striberne, delivered sales growth during the
quarter.
Overall, private label sales accounted for
16.9% of the revenue generated by Matas
stores and matas.dk in 2022/23, an increase of
0.3 percentage points compared to 2021/22.
Performance by sales channel; Matas’ online
channels grew revenue by 14.8% to DKK 309
million during Q4 2022/23 compared to Q4
2021/22 driven by a higher number of online
transactions. Online share of total revenue
came to 29.4% in the quarter, which is the
same level as for Q3 which was a new record
for Matas’ online channels. Matas’ physical
stores reported sales growth of 5.0% to DKK 707
million in Q4 2022/23. The number of Matas
stores at 31 March 2023 amounted to 260,
equal to the number of stores at 31 March
2022. Wholesale revenue increased by DKK 6.7
million in Q4 2022/23. Full-year wholesale grew
by DKK 7.4 million.
Gross profit and margin
Gross profit for 2022/23 amounted to DKK
2,014 million, a 2.5% increase from DKK 1,966
million in 2021/22. The 2022/23 gross margin
was 44.9% corresponding to an increase of
0.1 percentage point compared to last year,
adjusting for the DKK 20 million income in
connection to the Club Matas VAT case from
2021/22. The increase in gross margin was trig-
gered by increased sales within Mass Beauty,
which is the category with the highest private
label share.
Gross profit for Q4 2022/23 amounted to DKK
485 million, a year-on-year increase of 3.5%.
The gross margin was 46.1% compared with
48.2% in Q4 2021/22. The lower gross margin
was partly attributable to the increase in the
online share of Matas Group’s overall revenue,
as online sales generally generate a lower
gross margin than sales in the physical stores.
Furthermore, the decrease in the gross margin
was related to timing of supplier subsidies
compared to same period last year.
Costs and operating performance
Overall costs were up by 4.7% to DKK 1,210
million amounting to 27.0% of revenue
compared with 26.6% last year, with other
external costs accounting for DKK 385 million
and staff costs amounting to DKK 825 million.
Overall costs amounted to DKK 323 million
in Q4 2022/23, corresponding to 30.7% of
2022/232021/222020/21
Physical stores Online
Wholesale
3,060
1,083
21
102
109
1,089
1,205
3,153 3,175
Mass Beauty grew by 6.3%, Health and Well-
being grew by 4.3% while High-End Beauty
grew by 0.7%.
Footfall increased compared to previous year
and the number of transactions grew by 5.2%
to 23.2 million, while the average basket size
fell by 1.8% to DKK 189.
In Q4 2022/23, total revenue rose by 8.3%
driven by online growth of 14.8%, while whole-
sale grew by 23.2% and physical stores grew
by 5.0%.
Performance by category; High-End Beauty
sales grew by 3.8% in the quarter, driven by
an increase in sales of fragrances for men
and professional haircare. Skincare sales
were just barely at last year's level, seem-
ingly stabilising at this level after the growth
reported during COVID-19. Make-up grew
in the quarter with 2.0%. Growing sales by
11.3% in the quarter, Mass Beauty realised
the highest increase. Health and Wellbeing
grew sales by 9.0% in the quarter. The various
product lines recorded highly different growth
rates with sales of COVID-19- related products
declining by 90%, or DKK 10 million, whereas
sales of dermatological and special skincare
products recorded ongoing significant growth
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Revenue by category and sales channel
(DKKm)
FY
2022/23
FY
2021/22 Growth
Q4
2022/23
Q4
2021/22 Growth
Categories
High-End Beauty 1,560.7 1,550.3 0.7% 309.6 298.2 3.8%
Mass Beauty 1,536.0 1,444.5 6.3% 362.3 325.4 11.3%
Health and Wellbeing 1,157.0 1,109.1 4.3% 313.6 287.7 9.0%
Other 126.5 138.4 (8.6)% 29.9 30.5 (2.0)%
Retail revenue 4,380.2 4,242.3 3.3% 1,015.4 941.8 7.8%
Retail revenue by category (%)
High-End Beauty 36% 37% 30% 32%
Mass Beauty 35% 34% 36% 35%
Health and Wellbeing 26% 26% 31% 30%
Other 3% 3% 3% 3%
Wholesale 109.4 101.9 35.4 28.7
Total revenue 4,489.6 4,344.2 3.3% 1,050.7 970.6 8.3%
Revenue by sales channel (%)
Physical stores 71% 73% 67% 69%
Online 27% 25% 30% 28%
Wholesale 2% 2% 3% 3%
revenue against 31.8% in the year-earlier
period.
Other external costs amounted to 8.6% of
revenue in 2022/23 against 7.6% in 2021/22
and were up by DKK 53 million (15.8%) from
DKK 332 million in 2021/22. The increase in
other external costs was mainly driven by DKK
18 million attributable to variable marketing,
IT and logistics costs as a result of continuing
digital growth. DKK 12 million were attribut-
able to higher energy cost, as a result of rising
lighting and heating prices and DKK 7 million
were attributable to higher IT costs related
to the ongoing digitalisation of the Group’s
activities.
Other external costs were up by DKK 19 million
year-on-year in Q4 2022/23 to DKK 116 million.
Staff costs were up by DKK 1 million (0,1%) to
DKK 825 million and amounted to 18.4% of
revenue in 2022/23 against 18.7% in 2021/22
adjusted for special items.
Staff costs were driven by ramp up of strategic
initiatives, while underlying staff costs in the
stores declined.
The staff costs for 2022/23 included DKK 8 million
related to the Company’s long-term share-
based compensation programme which was at
the same level as in 2021/22 when adjusted for
special items. At 31 March 2023, Matas Group
had 2,124 full-time employees, against 2,164 at
31 March 2022.
Staff costs totalled DKK 207 million in Q4
2022/23, a year-on-year decrease of DKK
5 million of which DKK 7 million was attri-
butable to special items in 2021/22.
EBITDA before special items was DKK 809
million against DKK 803 million in 2021/22. The
EBITDA margin before special items was 18.0%
against 18.5% in 2021/22. EBITDA declined 0.7%
year-on-year to DKK 804 million in 2022/23. The
EBITDA margin was 17.9% against 18.6% the
year before.
EBITDA for Q4 2022/23 amounted to DKK 162
million against DKK 160 million in 2021/22.
EBITDA before special items came to DKK
162 million. The EBITDA margin before special
items was 15.4% against 17.3% in Q4 2021/22,
refelcting the change in gross profit.
Matas | Annual Report 2022/23
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Page 21 of 98
High-End Beauty
Luxury beauty products, including cosmetics, skincare
and haircare products and fragrances.
Health and Wellbeing
MediCare (OTC medicine and nursing products). Vita-
mins, minerals, supplements, specialty foods and herbal
medicinal products. Sports, nutrition and exercise.
Mother and child. Personal care products (oral, foot and
intimate care and hair removal). Special skincare.
Mass Beauty
Everyday beauty products and personal care, including
cosmetics and skincare and haircare products.
Other
Clothing and accessories (footwear, hair ornaments,
jewellery, toilet bags, etc.). House and garden (cleaning
and maintenance, electrical products, interior decora-
tion and textiles) and other revenue.
Amortisation, depreciation and impairment
Total amortisation, depreciation and impairment
charges were down by DKK 40 million in 2022/23
to DKK 381 million.
During Q4 2021/22, the Matas Brand trademark
of approximately DKK 1.1 billion was fully amor-
tised, reducing the yearly amortisations and
depreciations by DKK 66 million.
Net financials and tax
Net financial expenses rose by DKK 13 million to
DKK 45 million in 2022/23 due to a DKK 5 million
compensation attributable to the Matas VAT
case last year and an interest rate increase.
The effective tax rate was 24.7% in 2022/23,
compared with 21.2% in 2021/22. The lower tax
rate in 2021/22 was partly attributable to tax
deductions resulting from the payment of cash
consideration in connection with the exercise
of long-term incentive programmes (LTIP) in
2021/2 2.
Categories
Matas is characterised by its wide assortment within beauty, personal care, health, wellbeing and
problem-solving household products. This broad product range creates a unique one-stop retail
value proposition for the Group's customers in the shape of four categories:
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Page 22 of 98
Profit for the year
Profit for the year after tax amounted to DKK
281 million corresponding to an increase of
1.5% from DKK 277 million in 2021/22. Adjusted
profit after tax amounted to DKK 322 million
compared to DKK 358 in 2021/22. Adjusted
profit after tax for Q4 2022/23 amounted to
DKK 28 million against DKK 61 million in Q4
2021/2 2.
Statement of financial position
Total assets amounted to DKK 6,280 million at
31 March 2023, up from DKK 6,055 million at 31
March 2022.
Current assets totalled DKK 1,079 million, a year-
on-year increase of DKK 50 million. Inventories
amounted to DKK 912 million at 31 March 2023,
an increase of DKK 22 million compared with the
level at 31 March 2022. Inventories accounted
for 20.3% of full-year revenue at 31 March 2023
compared with 20.5% at 31 March 2022. Despite
the ongoing assortment expansion, Matas has
succeeded in maintaining the inventories rela-
tive to LTM revenue compared to last year.
Trade receivables increased by DKK 17 million
to DKK 44 million, mainly driven by the ongoing
activities in Web Sundhed. Trade payables fell
by DKK 29 million relative to DKK 634 million at 31
March 2022.
Net working capital excluding deposits
amounted to DKK 23 million at 31 March 2023
against negative DKK 12 million at 31 March
2022, a difference of DKK 35 million. The nega-
tive working capital development was driven
by an increase in inventories combined with a
decline in trade payables relative to last year.
Cash and cash equivalents amounted to DKK
37 million, which is an increase of DKK 9 million
compared to 2021/22.
Equity amounted to DKK 3,363 million at 31
March 2023, compared with DKK 3,152 million at
31 March 2022.
Net interest-bearing debt was DKK 1,642 million
at 31 March 2023, a year-on-year decline of DKK
6 million – equalling 2.0 times LTM EBITDA before
special items, which is within the long-term
target of a gearing ratio between 2 and 3.
Gross interest-bearing debt amounted to DKK
1,679 million at 31 March 2023, including lease
liabilities of DKK 651 million. At 31 March 2022,
gross interest-bearing debt amounted to DKK
1,677 million, including lease liabilities of DKK 523
million.
At 31 March 2023, the Company’s share capital
consisted of 38,291,492 shares of DKK 2.50
each, corresponding to a share capital of DKK
95,728,730. Matas held 358,423 treasury shares
at 31 March 2023 (626,585 at 31 March 2022).
Statement of cash flows
Cash generated from operations was an
inflow of DKK 742 million in 2022/23 against
an inflow of DKK 615 million in 2021/22, an
increase of DKK 128 million attributable to a
more favourable working capital develop-
ment than 2021/22.
The free cash flow was an inflow of DKK 423
million in 2022/23 against an inflow of DKK 279
million in 2021/22.
Cash generated from operations in Q4
2022/23 was an outflow of DKK 15 million, a
year-on-year decline of DKK 92 million. Cash
flows from investing activities were an outflow
of DKK 256 million in 2022/23, compared with
an outflow of DKK 232 million in 2021/22. For
Q4 2022/23, cash flows from investing activities
were an outflow of DKK 73 million against an
outflow of DKK 39 million in Q4 2021/22. The
Q4 2022/23 free cash flow was an outflow of
DKK 118 million, compared with an inflow of
DKK 12 million in Q4 2021/22. Cash flows from
financing activities were a net outflow of DKK
415 million in 2022/23 against an outflow of
DKK 291 million in 2021/22.
Return on invested capital
ROIC before tax excluding goodwill was 45.0%
at 31 March 2023 against 50.1% at 31 March
2022. ROIC before tax including goodwill
was 9.4% at 31 March 2023 against 9.9% at 31
March 2022.
Parent Company performance
The Parent Company generated a loss of
DKK 18 million against a loss of DKK 14 million
in 2021/22. The decline can be explaned by
a combination of both lower staff costs due
to termination cost included in 2021/22 and
less tax income from cash settlement of LTIP
compared to 2021/22.
Equity was DKK 1,855 million at 31 March 2023
compared with DKK 1,943 million at 31 March
2022.
Events after the date of the
statement of financial position
No subsequent events have occurred that
materially affect the Group’s financial position.
Matas | Annual Report 2022/23
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ESG Report
2022/23
1 April 2022 – 31 March 2023
Matas A/S | Rørmo sevej 1, DK-3450 All erød | CVR nr. 27 52 84 06
ESG Report 2022/23
Read more
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 24 of 98
IMPACT MATERIALITY
Minimal Informative Important Significant Essential
DENNE
MODEL
KOMMER FRA
SR OG SKAL
TAGES DER
FRA Ingen
incopy Links
skal i begge
mapper
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 25 of 98
DENNE
MODEL
KOMMER FRA
SR OG SKAL
TAGES DER
FRA Ingen
incopy
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 26 of 98
Respond
to risk
Determine risk
strategy
Assess
risk
Assess risk
interaction
Identify
risk
Risk management
Matas Group works continually to identify, assess and respond
to the risks to which Matas Group is exposed. Changes to
macroeconomic factors within Matas Group’s geographical
area may affect Matas Group through changes in overall
retail demand, specifically in the health and beauty market,
and by supply chain disruptions.
Risk management is an integral part of Matas
Group’s management process, the objec-
tive being to limit uncertainties and risks with
respect to the defined financial targets and
strategic objectives for Matas Group.
The Executive Management is responsible
for preparing, implementing and main-
taining control and risk management systems
subject to the approval of the Board of Direc-
tors, which has the overall responsibility for
management. Based on reporting from the
Executive Management, the Audit Committee
continually monitors whether the Company’s
internal control and risk management systems
are effective and complied with, and it also
continually monitors the development and
handling of key risks.
The Board of Directors is provided with an
overview of Matas Group’s key risks and their
potential impact on earnings at least once a
year so that any measures necessary to miti-
gate such risks can be implemented.
Risk management cycle
at Matas Group:
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Page 28 of 98
Material operational risks
Risk Description Mitigation
Macroeconomic
development
Matas Group operates in a discretionary consumer spending category
and is exposed to changes in the macroeconomic environment within
Matas Group’s geographical area and general changes in consumer
behavior, which may affect Matas Group’s business in terms of demand
for health and beauty products.
By actively monitoring the macroeconomic trends and changes in
consumer behavior, as well as monitoring the daily sales trends in
Matas, the management can respond swiftly, for instance in case
of sudden declines in sales, by adjusting campaigns and other sales
promoting initiatives.
Brand and
product liability
Ranked as the sixth best brand among all Danish brands in 2022
(YouGov), the Matas brand and product liability is crucial for the Matas
Group to keep and attract customers, shareholders, and employees.
Continuously build and maintain brand awareness through commercial
initiatives. Furthermore, Matas Group has developed a risk manage-
ment policy and procedures in case of potential claims related to
product liabilities, including personal injury claims, and has also taken
out an insurance in this area.
Industry
developments
and international
competition
Matas Group is strongly exposed to the development in overall retail
sales in Denmark, where we see a general shift towards online chan-
nels.
Historically, Matas Group has competed with a large number of Danish
retail market players, including supermarkets, local perfumeries, health
food shops, pharmacies, department stores and travel retailers. As
consumer behavior continues its shift toward online channels, compe-
tition from international players has intensified, and Matas Group is
currently facing increasing competition from Danish and international
health, beauty and wellbeing web shops.
The growing online sales are supported by new ways of launching and
marketing brands and by new technology-driven options. Strategically,
Matas Group aims to bring its many assets into play in new ways to
pursue the potential provided by a stronger market position. It strives to
do this by increasing its focus on online sales, launching of marketing
campaigns, leveraging the Club Matas loyalty programme, developing
the store network and enhancing the customer experience.
Matas | Annual Report 2022/23
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Page 29 of 98
Risk Description Mitigation
Supply chain
disruption
A global supply chain disruption may cause delays or absence in
delivery of specific goods.
In order to meet any changes in terms of delivery or reduced access to
important product categories, Matas Group deals with a large number
of different suppliers and markets a broad range of different brands
within each product category.
Financial risks
Matas Group is to some extent exposed to financial risks such as interest
rate, liquidity and credit risks.
Reference is made to note 29 to the consolidated financial statements
for additional information on the financial risks.
Material operational risks
Matas | Annual Report 2022/23
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ESG Report
2022/23
1 April 2022 – 31 March 2023
Matas A/S | Rør mosevej 1, DK-3450 Al lerød | CVR nr. 27 52 84 06
Matas | Annual Report 2022/23
Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 31 of 98
Annual General Meeting
Board of Directors
Nomination Committee
Remuneration Committee
Audit Committee
Matas Management Team
Organisation
Executive Management
Governance structure
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Page 33 of 98
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Introduction Strategy and financial ambitions Results Governance Statements Financial statements Other
Page 34 of 98
Board of Directors
Lars Vinge Frederiksen, Chairman Mette Maix, Deputy Chairman Birgitte Nielsen, Board member
• Born 1958, Danish nationality
• Professional board member since 2013
• Member of the Board of Directors since 2013
• Up for re-election in 2023
• Chairman of the Remuneration and
Nomination Committees
• Independent board member
• Born 1969, Danish nationality
• CEO at Rosendahl Design Group A/S
• Member of the Board of Directors since 2017
• Up for re-election in 2023
• Member of the Remuneration and
Nomination Committees
• Independent board member
• Born 1963, Danish nationality
• Professional board member since 2006
• Member of the Board of Directors since 2013
• Up for re-election in 2023
• Chairman of the Audit Committee
• Independent board member
Other
directorships
Member of the board of directors and of the
remuneration and nomination committees of Tate & Lyle
PLC, London. Chairman of the supervisory board of PAI
Partners SA, Paris.
Member of the boards of directors of Aarstiderne A/S,
Good Food Group A/S, Planetary Impact Ventures and
UNICEF Danmark.
Member of the board of directors of Kirk Kapital
A/S, Topsøe Holding A/S and De Forenede
Ejendomsselskaber A/S.
Expertise Special expertise in general management, strategic
development and financial communication for listed
international companies. Expertise in Corporate
Governance, mergers and acquisitions and business
development.
Special expertise in international sales, brand
development and retail, including omnichannel and
physical retail, and experience in general management
and strategic development.
Special expertise in general management and strategic
development, board experience, including extensive
financial and accounting expertise, and capital markets
experience.
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Page 35 of 98
Board of Directors
Henrik Taudorf Lorensen, Board member Kenneth Melchior, Board member Lars Jensen, Board member
• Born 1971, Danish nationality
• Founder and CEO of TAKT A/S
• Member of the Board of Directors since 2020
• Up for re-election in 2023
• Member of the Remuneration and
Nomination Committees
• Independent board member
• Born 1983, Danish nationality
• Vice President, General Manager, Zalando Lounge
• Member of the Board of Directors since 2021
• Up for re-election in 2023
• Member of the Audit Committee
• Independent board member
• Born 1973, Danish nationality
• CEO at Royal Unibrew A/S
• Member of the Board of Directors since 2022
• Member of the Audit Committee
• Independent board member
Other
directorships
Member of the boards of directors of EarLabs AB,
Malmö, Louisiana Museum of Modern Art, Bubblebee
Industries ApS and Pongo Partners ApS and Director of
TAKT A/S’ subsidiary TAKT Export ApS.
Member of the board of directors of Les Deux. Member of the board of directors in several companies
related to the direct ownership of Royal Unibrew A/S.
Expertise Special expertise in consumer branding, digitalisation,
ESG, international sales, strategic development and
general management.
Special expertise in international retail, in-depth insights
into digital marketing, international knowledge of
customer clubs and loyalty programmes and experience
in launching e-commerce in several European markets.
Special expertise within consumer packaged
goods (CPG), general management and strategic
development, financial experience, and management
from listed companies.
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Gregers Wedell-Wedellsborg, CEO Per Johannesen Madsen, CFO
Born 1972, Danish nationality
CEO at Matas since November 2017
Born 1968, Danish nationality
CFO at Matas since August 2022
Expertise and
experience
Gregers holds a MSc in political science from University
of Copenhagen and a MPA from Harvard University.
Per holds a MSc in Business Administration Economics
and Auditing from Copenhagen Business School.
• Group Executive Vice President, Coop Denmark
• Digital Director, TV 2 Denmark
• Management positions, Berlingske Media
• Consultant, Accenture
• Officer, Royal Danish Guards
• Board experience since 2012
• Group CFO, Scandlines
• Executive Vice President & CFO, Copenhagen Airport
• Senior Finance positions Nordic & Germany, The Coca-
Cola Company
• Auditor & Consultant, Arthur Andersen
Executive Management
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Shareholder information
Share capital (DKK) 95,728,730
Number of shares
(of DKK 2.5)
38,291,492
Nominal value per share 2.5 DKK
Shares classes 1
Restrictions on
transferability and voting
rights
None
Stock
exchange
Nasdaq
Copenhagen
Trading symbol MATAS
ISIN code DK0060497295
Closing price at 31 March,
2022
96.30 DKK
Closing price at 31 March,
2023
84.20 DKK
Change during the
financial year
(12.6%)
Matas A/S is listed on Nasdaq Copenhagen
and is a component of the OMX Copenhagen
Mid Cap index.
Share capital
Matas Group held 358,423 treasury shares at
31 March 2023 (626,585 at 31 March 2022).
Treasury shares are held for the purpose of
cancelling shares bought back and meeting
the obligations under the long-term executive
incentive program.
At 31 March 2023, Matas A/S’ market capital-
isation was DKK 3.2 billion. The average daily
turnover in Matas A/S’ shares was DKK 6.3
million, a decrease of 51% compared DKK 12.4
million in 2021/22.
Authorisations relating to the share capital
At the Annual General Meeting held on 27
June 2019, the Board of Directors was author-
ised as described below in relation to the
share capital. None of these authorisations
had been exercised at 1 April 2023.
• In the period until 1 April 2024, the Board
of Directors is authorised to increase the
Company's share capital in one or more
issues without pre-emption rights for the
Company’s existing shareholders by up
to a nominal amount of DKK 9,570,000.
The capital increase must take place at
market price and may be effected by cash
payment or as consideration for a full or
partial acquisition of business activities or
other assets.
• In the period until 1 April 2024, the Board
of Directors is authorised to increase the
Company’s share capital in one or more
issues without pre-emption rights for the
Company’s existing shareholders by up
to a nominal amount of DKK 1,000,000 in
connection with the issue of new shares for
the benefit of the Company’s employees
and/or employees in its subsidiaries. The
new shares will be issued at a subscription
price to be determined by the Board of
Directors that may be below the market
price.
• New shares issued in pursuance of the
above authorisations, which are not to
exceed a nominal amount of DKK 9,570,000,
must be issued to named holders and be
registered in the name of the holder in the
Company’s register of shareholders, must
be fully paid up, must be negotiable instru-
ments and must in every respect carry the
same rights as the existing shares. The Board
of Directors is authorised to lay down the
terms and conditions for capital increases
pursuant to the above authorisations and to
make any such amendments to the Articles
of Association as may be required as a result
of the Board of Directors’ exercise of the
said authorisations.
The Board of Directors is further authorised
to purchase treasury shares to the extent the
Company’s holding of treasury shares at no
time exceeds 10% of the share capital. The
purchase price must not deviate by more
than 10% from the listing price on Nasdaq
Copenhagen at the time of the purchase.
The current authorisation is valid until 29 June
2023. The Board of Directors proposes that
the authorisation be renewed at the Annual
General Meeting to be held on 29 June 2023.
Allocation of capital and dividend policy
Matas Group’s capital structure must always
ensure the financial flexibility required
to implement the strategic objectives
announced.
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Group’s adjusted profit for 2022/23, be distri-
buted as dividends, equivalent to DKK 2.00 per
share.
Investor relations website
Information about Matas A/S and its shares,
share price, company announcements, finan-
cial data, annual and interim reports, investor
presentations, financial calendar etc. can be
found on investor.matas.dk
Investor relations
It is the policy of Matas A/S to communicate
precisely, actively and in a timely manner to its
stakeholders in the financial markets in order
to ensure that all investors have equal and
adequate access to relevant information as a
basis for trading in and pricing of the Compa-
ny’s shares. This is done taking into account
the rules and legislation applicable to compa-
nies listed on Nasdaq Copenhagen. For
further details on our investor relations policy,
please visit investor.matas.dk
At 31 March 2023, Matas A/S is covered by
three equity analysts. For a full list of analysts,
please see investor.matas.dk
29 June 2023 Annual General Meeting for
2022/23
16 August 2023 Interim report – Q1 2023/24
10 November
2023
Interim report – Q2 2023/24
9 January 2024 Trading update for Q3
2023/24
2 February 2024 Interim report – Q3 2023/24
7 May 2024 Deadline for the Company’s
shareholders to submit in
writing requests for specific
proposals to be included on
the agenda for the Annual
General Meeting
28 May 2024 Annual Report 2023/24
19 June 2024 Annual General Meeting for
2023/24
Matas has a long-term financial gearing ratio
target of 2.0-3.0x, measured as net interest-
bearing debt to EBITDA before special items.
The financial gearing ratio may under excep-
tional circumstances temporarily exceed 3 on
a quarterly basis.
Distributions by way of dividends and share
buybacks are expected to amount to at least
20% of adjusted profit after tax
Ownership
During the financial year 2022/23, Matas’
shareholder base grew by 6% to 20,610 regis-
tered shareholders, who represented 93% of
the share capital. The proportion of shares
held by Danish shareholders was 66%, in line
with the preceding year.
Shareholders holding more than 5% of the
share capital in Matas A/S according to attest
shareholding notifications are:
• Brightfolk A/S, Denmark (10.0%)
• ATP, Denmark (5.12%)
Dividend
Based on the highly satisfactory financial
results, the Board of Directors proposes that
DKK 76.6 million, equivalent to 24% of Matas
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Page 39 of 98
Executive Management
Board of Directors
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Independent auditor's report
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CVR no. 30 70 0 2 28
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Page 45 of 98
(DKKm) Note 2022/23 20 21/22
Revenue 3, 4 4,489.6 4,344.2
Cost of goods sold 5 (2,475.2 ) (2,378.2 )
Gross profit 2,014.4 1,966.0
Other external costs 6 (384.9 ) (332.3 )
Staff costs 7 (825.3 ) (824.1 )
Amortisation, depreciation and impairment 8, 30 (381.1 ) (421.3 )
EBIT 423.1 388.3
Share of profit or loss after tax of associates 9 (4.9 ) (4.6 )
Financial income 10 0.5 5.3
Financial expenses 11 (45.9 ) (37.9 )
Profit before tax 372.8 351.1
Tax on profit for the year 12 (92.1 ) (74.6 )
Profit for the year 280.7 276.5
Other comprehensive income
Value adjustment of hedging instrument in the year - 1.7
Tax on value adjustment of hedging instrument - (0.4 )
Other comprehensive income after tax - 1.3
Total comprehensive income for the year 280.7 277.8
Distributed as follows:
Shareholders of Matas A/S 280.7 277.8
Minority shareholders - -
Earnings per share:
Earnings per share, DKK 13 7.41 7.27
Diluted earnings per share, DKK 13 7.35 7.20
Statement of
comprehensive income
Retail revenue by category
%
Retail revenue by category
%
Mass Beauty Mass Beauty
Other Other
High-End Beauty High-End Beauty
Health and Wellbeing Health and Wellbeing
36
35
26
3
37
34
26
3
2022/23 2021/22
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(DKKm) Note 2022/23 20 21/22
Profit before tax 372.8 351.1
Amortisation, depreciation and impairment 8 381.1 421.3
Share of profit or loss after tax of associates 4.9 4.6
Financial income 10 (0.5 ) (5.3 )
Financial expenses 11 45.9 37.9
Other non-cash operating items, net 8.0 (13.5 )
Cash generated from operations before changes in working capital 812.2 796.1
Changes in working capital 26 (69.9 ) (181.6 )
Cash generated from operations 742.3 614.5
Interest received 10 0.5 5.2
Corporation tax paid (63.8 ) (109.2 )
Cash flow from operating activities 679.0 510.5
Acquisition of intangible assets 15 (162.1 ) (132.9 )
Acquisition of property, plant and equipment 17 (92.2 ) (50.5 )
Disposal of investments in subsidiaries - 0.4
Acquisition of subsidiaries and operations 27 (1.5 ) (48.6 )
Cash flow from investing activities (255.8 ) (231.6 )
Free cash flow 423.2 278.9
(DKKm) Note 2022/23 20 21/22
Raising of loans with credit institutions 24 - 763.5
Repayment of loans with credit institutions (126.0 ) (708.4 )
Repayment of lease liabilities 30 (172.3 ) (167.7 )
Interest paid 11 (39.8 ) (27.1 )
Dividend paid (76.6 ) (76.6 )
Acquisition of treasury shares - (75.1 )
Cash flow from financing activities (414.7 ) (291.4 )
Net cash flow from operating, investing and financing activities 8.5 (12.5 )
Cash and cash equivalents, beginning of period 28.2 40.7
Cash and cash equivalents, end of period 36.7 28.2
The above cannot be derived directly from the statement of comprehensive income and the statement
of financial position.
Statement of cash flows
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Statement of financial position
(DKKm) Note
31 March
2023
31 March
2022
ASSETS
Non-current assets
Goodwill 3,999.4 3,993.6
Trademarks and trade names 58.1 67.8
Other intangible assets 235.8 186.8
Total intangible assets 15, 16 4,293.3 4,248.2
Lease assets 30 622.3 500.2
Land and buildings 17 87.5 86.6
Other fixtures and fittings, tools and equipment 17 65.2 86.7
Leasehold improvements 17 27.3 40.3
Plant in progress 17 59.7 9.6
Total property, plant and equipment 862.0 723.4
Investments in associates 9 1.4 7.3
Deposits 44.3 46.8
Other securities and investments 0.7 0.6
Total other non-current assets 46.4 54.7
Total non-current assets 5,201.7 5,026.3
Current assets
Inventories 19 911.8 890.1
Trade receivables 20 43.7 26.6
Corporation tax receivable 20.6 45.5
Other receivables 24.9 7.1
Prepayments 40.8 31.5
Cash and cash equivalents 36.7 28.2
Total current assets 1,078.5 1,029.0
Total assets 6,280.2 6,055.3
(DKKm) Note
31 March
2023
31 March
2022
EQUITY AND LIABILITIES
Equity
Share capital 21 95.7 95.7
Translation reserve 0.3 0.3
Treasury share reserve (43.5 ) (76.0 )
Retained earnings 3,233.5 3,055.2
Dividend proposed for the financial year 14 76.6 76.6
Matas A/S’ share of equity 3,362.6 3,151.8
Non-controlling interests 0.5 0.5
Total equity 3,363.1 3,152.3
Liabilities
Deferred tax 22 198.8 192.8
Lease liabilities 30 462.6 343.5
Provisions 28.0 28.0
Credit institutions, non-current 24 917.7 996.1
Other payables 13.0 37.7
Total non-current liabilities 1,620.1 1,598.1
Credit institutions, current 110.4 157.9
Lease liabilities 30 188.4 179.5
Prepayments from customers 23 161.4 154.5
Trade payables 634.1 662.9
Other payables 25 202.7 150.1
Total current liabilities 1,297.0 1,304.9
Total liabilities 2,917.1 2,903.0
Total equity and liabilities 6,280.2 6,055.3
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Statement of changes in equity
(DKKm)
Share
capital
Translation
reserve
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Non-
controlling
interests
Total
equity
Equity at 1 April 2022 95.7 0.3 (76.0 ) 76.6 3,055.2 3,151.8 0.5 3,152.3
Other comprehensive income - - - - - - - -
Profit for the year - - - 76.6 204.1 280.7 - 280.7
Total comprehensive income - - - 76.6 204.1 280.7 - 280.7
Transactions with owners
Dividend paid - - - (75.9 ) - (75.9 ) - (75.9 )
Dividend on treasury shares - - - (0.7 ) 0.7 - - -
Share buyback programme - - 32.5 - (32.5 ) - - -
Share-based payment - - - - 8.0 8.0 - 8.0
Tax, share-based payment - - - - (2.0 ) (2.0 ) - (2.0 )
Total transactions with owners - - 32.5 (76.6 ) (25.8 ) (69.9 ) - (69.9 )
Equity at 31 March 2023 95.7 0.3 (43.5 ) 76.6 3,233.5 3,362.6 0.5 3,363.1
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(DKKm)
Share
capital
Hedging
reserve
Translation
reserve
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Non-
controlling
interests
Total
equity
Equity at 1 April 2021 95.7 (1.3 ) 0.3 (2.6 ) 76.6 2,870.2 3,038.9 - 3,038.9
Value adjustment of hedging instrument - 1.7 - - - - 1.7 - 1.7
Tax on value adjustment - (0.4 ) - - - - (0.4 ) - (0.4 )
Other comprehensive income - 1.3 - - - - 1.3 - 1.3
Profit for the year - - - - 76.6 199.9 276.5 - 276.5
Total comprehensive income - 1.3 - - 76.6 199.9 277.8 - 277.8
Transactions with owners
Dividend paid - - - - (76.6 ) - (76.6 ) - (76.6 )
Dividend on treasury shares - - - - - - - - -
Share buyback programme - - - (75.0 ) - - (75.0 ) - (75.0 )
Addition of non-controlling interests - - - - - - - 0.5 0.5
Exercise of incentive programme - - - 1.6 - (26.7 ) (25.1 ) - (25.1 )
Share-based payment - - - - - 11.8 11.8 - 11.8
Total transactions with owners - - - (73.4 ) (76.6 ) (14.9 ) (164.9 ) 0.5 (164.4 )
Equity at 31 March 2022 95.7 - 0.3 (76.0 ) 76.6 3,055.2 3,151.8 0.5 3,152.3
Statement of changes in equity
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Summary of notes to the financial statements
Note 1 Accounting policies 53
Note 2 Significant accounting estimates,
assumptions and judgments 61
Note 3 Segment information 62
Note 4 Revenue 62
Note 5 Cost of goods sold etc. 63
Note 6 Fees to the auditors appointed
by the shareholders in
general meeting 63
Note 7 Staff costs 64
Note 8 Depreciation, amortisation
and impairment 64
Note 9 Share of profit or loss after tax
of associates 64
Note 10 Financial income 64
Note 11 Financial expenses 64
Note 12 Tax 65
Note 13 Earnings per share 65
Note 14 Dividend per share 65
Note 15 Intangible assets 66
Note 16 Impairment testing 66
Note 17 Property, plant and equipment 69
Note 18 Treasury shares 69
Note 19 Inventories 69
Note 20 Trade receivables 70
Note 21 Equity 70
Note 22 Deferred tax 71
Note 23 Prepayments from customers 72
Note 24 Amounts owed to
credit institutions 72
Note 25 Other payables 72
Note 26 Changes in working capital 72
Note 27 Acquisition of subsidiaries and
contingent consideration 73
Note 28 Contingent liabilities and security 74
Note 29 Financial risks and
financial instruments 75
Note 30 Leases 77
Note 31 Management’s remuneration,
share options and shareholdings 77
Note 32 Related parties 81
Note 33 Events after the date of the
statement of financial position 81
Note 34 New financial reporting regulation 81
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Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Note 1 – Accounting policies continued
Notes to the financial statements
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Notes to the financial statements
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Notes to the financial statements
Note 2 – Significant accounting estimates, assumptions and judgments
continued
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Notes to the financial statements
Note 4 – Revenue continued
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Notes to the financial statements
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Notes to the financial statements
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Notes to the financial statements
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Notes to the financial statements
Note 16 – Impairment testing continued
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Notes to the financial statements
Note 16 – Impairment testing continued
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Notes to the financial statements
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Notes to the financial statements
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Notes to the financial statements
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Notes to the financial statements
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Notes to the financial statements
Note 26 – Changes in working capital continued Note 27 – Acquisition of subsidiaries and contingent consideration
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Notes to the financial statements
Note 27 – Acquisition of subsidiaries and contingent consideration
continued
Note 27 – Acquisition of subsidiaries and contingent consideration
continued
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Notes to the financial statements
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Notes to the financial statements
Note 29 – Financial risks and financial instruments continued
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Notes to the financial statements
Note 30 – Leases continued
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Notes to the financial statements
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Notes to the financial statements
Note 31 – Management’s remuneration, share options and
shareholdings continued
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Notes to the financial statements
Note 31 – Management’s remuneration, share options and
shareholdings continued
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Notes to the financial statements
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Matas Group
Domicile Ownership
Parent Company
Matas A/S Denmark
Denmark
Subsidiaries
Matas Operations A/S Denmark 100%
Matas Property A/S Denmark 100%
Firtal Group ApS Denmark 100%
Firtal Web A/S Denmark 100%
Firtal Tech ApS Denmark 66%
Firtal Distribution ApS Denmark 100%
Kosmolet A/S Denmark 100%
Web Sundhed ApS Denmark 100%
Web-Apo ApS Denmark 100%
Apo-IT ApS Denmark 100%
Miild A/S Denmark 100%
Associates
Geniads ApS Denmark 50%
Other countries
Matas Torshavn P/F Faroe Islands 100%
Matas Sverige AB (dormant) Sweden 100%
GRAENN GmbH Germany 100%
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(DKKm) Note 2022/23 20 21/22
Other operating income 3 9. 5 11. 3
Other external costs 14 (2.9) (4.0)
Staff costs 4 (21.9) (33.4)
EBIT (15.3) (26.1)
Financial expenses 5 (5.0) (1.0)
Profit/loss before tax (20.3) (27.1)
Tax on profit/loss for the year 6 2.6 13.0
Profit/loss for the year (17.7 ) (14.1)
Other comprehensive income
Other comprehensive income after tax - -
Total comprehensive income for the year (17.7 ) (14.1)
Proposed appropriation of profit
Proposed dividend: DKK 2.00 per share (2021/22: DKK 2.00 per share) 76.6 76.6
Retained earnings (94.3) (90.7)
Total (17.7) (14.1)
Statement of comprehensive income
(DKKm) Note 2022/23 20 21/22
Profit/loss before tax (20.3) (27.1)
Financial expenses 5 5.0 1.0
Non-cash operating items etc. 8.0 (13.4)
Cash generated from operations before changes in working capital (7.3) (39.5)
Changes in working capital 9 0.6 0.2
Cash generated from operations (6.7) (39.3)
Corporation tax paid (63.8) (109.2)
Cash flow from operating activities (70.5) (148.5)
Change in receivables from Group entities - -
Cash flow from investing activities - -
Free cash flow (70.5) (148.5)
Dividend paid (70.5) (76.6)
Share buyback programme - (75.1)
Interest paid (5.0) 1.0
Debt raised/settled with Group entities 152.1 299.2
Cash flow from financing activities 70.5 148.5
Net cash flow from operating, investing and financing activities - -
Cash and cash equivalents at 1 April - -
Cash and cash equivalents at 31 March - -
Statement of cash flows
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Statement of financial position
(DKKm) Note
31 March
2023
31 March
2022
ASSETS
Non-current assets
Investments in subsidiaries 7 2,036.3 2,036.3
Deferred tax assets 6 5.0 7.1
Total non-current assets 2,041.3 2,043.4
Current assets
Receivables from Group entities 11 - -
Corporation tax receivable 6 28.2 56.8
Other receivables 0.2 0.6
Total current assets 28.4 57. 4
Total assets 2,069.7 2,100.8
(DKKm) Note
31 March
2023
31 March
2022
EQUITY AND LIABILITIES
Equity
Share capital 8 95.7 95.7
Treasury share reserve (43.5) (76.0)
Retained earnings 1,726.4 1,846.5
Dividend proposed for the financial year 76.6 76.6
Total equity 1,855.2 1,942.8
Liabilities
Payables to Group entities 11 212.8 156.5
Trade payables 11 1.7 1.5
Total current liabilities 214.5 158.0
Total liabilities 214.5 158.0
Total equity and liabilities 2,069.7 2,100.8
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Statement of changes in equity
(DKKm)
Share
capital
Treasury
share
reserve
Proposed
dividend
Retained
earnings Total
Equity at 1 April 2022 95.7 (76.0) 76.6 1,846.5 1,942.8
Other comprehensive income - - - - -
Profit/loss for the year - - 76.6 (94.3) (17. 7 )
Total comprehensive income - - 76.6 (94.3) (17.7)
Transactions with owners
Dividend paid - - (75.9) - (75.9)
Dividend on treasury shares - - (0.7) 0.7 -
Exercise of incentive programme - 32.5 - (32.5) -
Share-based payment - - - 8.0 8.0
Tax, share-based payment - - - (2.0) (2.0)
Total transactions with owners - 32.5 (76.6) (25.8) (69.9)
Equity at 31 March 2023 95.7 (43.5) 76.6 1,726.4 1,855.2
Equity at 1 April 2021 95.7 (2.6) 76.6 1,952.1 2,121.8
Other comprehensive income - - - - -
Profit/loss for the year - - 76.6 (90.7) (14.1)
Total comprehensive income - - 76.6 (90.7) (14.1)
Transactions with owners
Share buyback programme - (75.0) - - (75.0)
Dividend paid - - (76.6) - (76.6)
Exercise of incentive programme - 1.6 - (26.7) (25.1)
Share-based payment - - - 11. 8 11. 8
Total transactions with owners - (73.4) (76.6) (14.9) (164.9)
Equity at 31 March 2022 95.7 (76.0) 76.6 1,846.5 1,942.8
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Summary of notes to the financial statements
Note 1 Accounting policies 88
Note 2 Accounting estimates and
judgments 89
Note 3 Other operating income 89
Note 4 Staff costs 89
Note 5 Financial expenses 89
Note 6 Tax 90
Note 7 Investments in subsidiaries 90
Note 8 Equity and treasury shares 90
Note 9 Changes in working capital 91
Note 10 Contingent liabilities and security 91
Note 11 Financial risks and
financial instruments 92
Note 12 Related parties 93
Note 13 New standards and interpretations 93
Note 14 Fees to the auditors appointed
by the shareholders in
general meeting 93
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Notes to the financial statements
The separate financial statements of the Parent Company are incorporated in the Annual Reports the
Danish Financial Statements Act requires separate parent company financial statements for companies
reporting under IFRS.
The financial statements of the Parent Company are prepared in accordance with International Finan-
cial Reporting Standards as adopted by the EU and additional disclosure requirements of the Danish
Financial Statements Act.
The accounting policies are consistent with those of last year.
Description of accounting policies
The Parent Company's accounting policies differ from the accounting policies applied in the consol-
idated financial statements (see note 1 to the consolidated financial statements) in the following
respects:
Financial income
Dividend in subsidiaries is recognised in the parent company's statement of comprehensive income in
the financial year in which the dividend is declared. An impairment test is performed if more than the
comprehensive income of a subsidiary is distributed.
Investments in subsidiaries
Investments in subsidiaries are measured at cost in the parent company's financial statements. Cost
includes the purchase consideration calculated at fair value plus direct acquisition costs.
If there is an indication of impairment, an impairment test is performed as described in the accounting
policies applied in the consolidated financial statements. Where the carrying amount exceeds the
recoverable amount, the investment is written down to this lower value.
When distributing other reserves than retained earnings in subsidiaries, the distribution reduces the cost
of the investments if the distribution is in the nature of a repayment of the Parent Company's investment.
Tax
Matas A/S is subject to the Danish rules on compulsory joint taxation of the Group's Danish subsidiaries.
Matas A/S is the administration company in respect of the joint taxation and accordingly settles all
corporation taxes with the tax authorities. Joint taxation contributions to/from subsidiaries are recog-
nised under tax on the profit for the year. Tax payable and tax receivable are recognised under current
assets/liabilities. Joint taxation contributions payable and receivable are recognised in the statement of
financial position under receivables from and payables to Group entities.
Companies using the tax losses of other entities pay a joint taxation contribution to the Parent Company
at an amount corresponding to the tax base of the tax losses used. Companies whose tax losses are
used by other entities receive joint taxation contributions from the Parent Company corresponding to
the tax base of the losses used (full distribution).
Note 1 – Accounting policies
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Notes to the financial statements
Note 2 – Accounting estimates and judgments
Estimation uncertainty
The determination of the carrying amount of certain assets and liabilities requires estimates as to how
future events will affect the value of such assets and liabilities at the date of the statement of finan-
cial position. Estimates material to the Parent Company's financial reporting are made, inter alia, by
reviewing investments in subsidiaries for impairment.
The estimates used are based on assumptions which Management believes to be reliable, but which
are inherently subject to uncertainty. Such assumptions may be incomplete or inaccurate, and unex-
pected events or circumstances may arise. Furthermore, the Company is subject to risks and uncer-
tainties that may cause the actual results to differ from these estimates. The financial risks affecting the
Matas Group are described in note 2 to the consolidated financial statements.
The notes to the financial statements comprise disclosures on assumptions of future events and other
estimation uncertainties at the date of the statement of financial position involving a considerable risk
of changes that could lead to a material adjustment of the carrying amount of assets or liabilities in the
coming financial year.
Note 3 – Other operating income
(DKKm) 2022/23 2021/22
Management fee from Group entities 9.5 11. 3
Total 9.5 11.3
Note 4 – Staff costs
Remuneration of the Parent Company's Board of Directors and Executive Management is recognised in
profit or loss.
Fees to the Board of Directors are recognised in the amount of DKK 3.0 million (2021/22: DKK 2.9 million).
The remuneration of the Executive Management is recognised in profit or loss in the amount of DKK 11.2
million (2021/22: DKK 13.4 million).
Share-based payment is recognised in the amount of DKK 8.0 million (2021/22: DKK 11.5 million) for the
Executive Management and other executives.
The item in 2021/22 also includes termination benefits for the Company’s former CFO, who resigned 1
June 2022.
For additional information on remuneration of the Board of Directors and the Executive Management,
see note 31 to the consolidated financial statements.
Note 5 – Financial expenses
(DKKm) 2022/23 2021/22
Interest, Group entities 5.0 1.0
Total financial expenses 5.0 1.0
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Notes to the financial statements
Note 6 – Tax
(DKKm) 2022/23 2021/22
Tax on the profit/loss for the year breaks down as follows:
Tax on the profit/loss for the year (2.6) (13.0)
Total (2.6) (13.0)
Tax on the profit/loss for the year has been calculated as follows:
Joint taxation contributions (5.3) (7.9)
Deferred tax 2.1 (4.6)
Prior-year tax adjustment 0.6 (0.5)
Total (2.6) (13.0)
Tax on the profit/loss for the year is explained as follows:
Computed 22.0% tax on profit/loss before tax (4.5) (6.0)
Interest expense limitation 0.6 0.0
Cash settlement of LTIP 2019/20 through equity (1.4) (8.6)
Provisions 0.9 0.9
Other 1.8 0.7
Total (2.6) (13.0)
Effective tax rate (12.7)% (48.0)%
Deferred tax assets as of 31 March 2023 is recognised with DKK 5.0 million (2021/22: DKK 7.1 million)
regarding Matas Group share-based payments (PSUs). The change in the deferred tax assets in 2022/23
of DKK 2.1 million is recognised in the income statement.
Note 7 – Investments in subsidiaries
(DKKm) 2022/23 2021/22
Cost at 1 April 2,036.3 2,036.3
Carrying amount at 31 March 2,036.3 2,036.3
The Company's equity investment in Matas Operations A/S was 100% at 31 March 2023 (31 March 2022:
ownership interest 100%).
Note 8 – Equity and treasury shares
Share capital
The nominal value of the share capital is DKK 95,728,730 divided into shares of DKK 2.50, equivalent to
38,291,492 shares and 38,291,492 votes. The shares are not divided into share classes.
Capital structure
The Company regularly assesses the need for adjustment of the capital structure. The capital is
managed for the Group as a whole.
The ratio of equity to total equity and liabilities was 89.3% at 31 March 2023 (31 March 2022: 92.5%).
Treasury shares
See note 18 to the consolidated financial statements.
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Notes to the financial statements
Note 9 – Changes in working capital
(DKKm) 2022/23 2021/22
Change in receivables, prepayments and deferred income 0.4 0.1
Change in trade payables and other payables 0.2 0.1
Total 0.6 0.2
(DKKm) 1 April 2022 Cash flows 31 March 2023
2022/23
Group entities (156.5) (56.3) (212.8)
Receivables/payables, financing activities (156.5) (56.3) (212.8)
(DKKm) 1 April 2021 Cash flows 31 March 2022
2021/22
Group entities 52.4 (208.9) (156.5)
Receivables/payables, financing activities 52.4 (208.9) (156.5)
Note 10 – Contingent liabilities and security
The Parent Company is jointly taxed with the other Danish companies of the Matas Group. As the
administration company, the Company has unlimited and joint and several liability with the other
entities participating in the joint taxation for Danish corporation tax payable by the jointly taxed enti-
ties. Corporation tax payable amounted to DKK zero at 31 March 2023 (31 March 2022: DKK zero). Any
adjustments to the taxable joint taxation income may cause the Parent Company's liability to increase.
The Parent Company and a number of Matas Group's Danish subsidiaries are jointly and severally liable
for the joint registration of VAT.
Security
The Company has guaranteed all debt raised under the agreement with credit institutions.
Debts to credit institutions raised by the Company’s subsidiaries stood at DKK 1,030 million at 31 March
2023 (31 March 2022: DKK 1,158 million).
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Notes to the financial statements
Note 11 – Financial risks and financial instruments
The Company has no activity and no direct foreign currency risks.
Liquidity risk
The Company's financial liabilities fall due as follows:
(DKKm)
Carrying
amount
Contractual
cash flows
Within
1 year
2 to 3
years
4 to 5
years
After 5
years
2022/23
Non-derivative
financial instruments
Payables to Group entities 212.8 212.8 212.8 - - -
Trade payables 1.7 1.7 1.7 - - -
31 March 2023 214.5 214.5 214.5 - - -
2021/22
Non-derivative
financial instruments
Payables to Group entities 156.5 156.5 156.5 - - -
Trade payables 1.5 1.5 1.5 - - -
31 March 2022 158.0 158.0 158.0 - - -
Maturity analysis assumptions
The maturity analysis is based on all undiscounted cash flows including estimated interest payments.
The estimates of interest payments are based on current market conditions.
On the basis of the Company’s expectations regarding future operations and the Company’s current
cash resources, no significant liquidity risks have been identified.
Credit risk
The maximum credit risk related to financial assets corresponds to the values recognised in the state-
ment of financial position.
The Company has no material credit risk.
(DKKm)
Carrying
amount
2022/23
Fair value
2022/23
Carrying
amount
2021/22
Fair value
2021/22
Receivables from Group entities - - - -
Loans and receivables - - - -
Payables to Group entities 212.8 212.8 156.5 156.5
Suppliers 1.7 1.7 1.5 1.5
Financial liabilities
at amortised cost 214.5 214.5 158.0 158.0
Financial liabilities measured at amortised cost have a short credit period and are deemed to have a
fair value that is equivalent to the carrying amount.
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Notes to the financial statements
Note 12 – Related parties
In addition to the disclosures in note 32 to the consolidated financial statements, the Parent Company's
related parties comprise subsidiaries, see note 7 to the parent company's financial statements.
Matas A/S is jointly taxed with its subsidiaries. Joint taxation contributions from subsidiaries amounted to
DKK (5.3) million in 2022/23 (2021/22: DKK (7.9) million).
Matas A/S has set up a management fee scheme with its subsidiaries, see note 3, and a cash pool
scheme.
No other transactions were made during the year with members of the Board of Directors, members
of the Executive Management, significant shareholders or other related parties with the exception of
management remuneration. For additional information, see note 4 to the parent company's financial
statements and note 31 to the consolidated financial statements.
Note 13 – New standards and interpretations
The description in note 34 to the consolidated financial statements of new standards not yet in force
also fully covers the Parent Company.
Note 14 – Fees to the auditors appointed by the shareholders in
general meeting
(DKKm) 2022/23 2021/22
Fees to EY 0.4 0.3
Total fees to auditors appointed by the shareholders in general meeting 0.4 0.3
(DKKm) 2022/23 2021/22
Audit 0.3 0.2
Other assurance engagements - -
Tax and VAT assistance - -
Other services 0.1 0.1
Total fees to auditors appointed by the shareholders in general meeting 0.4 0.3
Matas has adopted a policy for non-audit services provided by the auditors appointed by the share-
holders in general meeting. The policy regulates when services must be approved by the Audit
Committee and which services are permitted and not permitted.
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Definitions of key financials
The financial ratios shown in the list of key financials in the consolidated financial statements have been
calculated in accordance with the guidelines of the Danish Finance Society.
Revenue growth Revenue for the year less last year's revenue/last year's revenue
Gross margin Gross profit as a percentage of revenue
Earnings per share Profit for the year attributable to shareholders of Matas A/S divided by
average number of shares
Diluted earnings per share Profit for the year attributable to shareholders of Matas A/S divided by
diluted average number of shares
Dividend per share Proposed dividend per share
In the Annual Report, Matas applies the following non-GAAP measures:
Underlying (like-for-like)
revenue growth
Growth reported by retail stores included in two comparable periods
EBITDA Earnings before interest, tax, depreciation, amortisation and impair-
ment
EBITDA margin EBITDA as a percentage of revenue
EBITDA before special items EBIT plus amortisation, depreciation and impairment losses plus specific
costs/income which Management does not consider part of normal
operations
EBITDA margin before
special items
EBITDA margin before special items as a percentage of revenue
EBITA EBIT plus amortisation of trademarks and other intangible assets except
software plus any impairment losses in respect of goodwill and other
intangible assets plus specific costs/income which Management does
not consider part of normal operations
EBITA margin EBITA as a percentage of revenue
EBIT Earnings before interest and tax
EBIT margin EBIT as a percentage of revenue
Adjusted profit after tax Profit after tax for the year plus the tax-adjusted effect of amortisation
of intangible assets except software and impairment losses and specific
costs/income which are not considered part of normal operations
Cash conversion EBITDA before special items plus change in net working capital less
capital expenditure divided by EBITDA before special items
Net working capital The sum of inventories, trade receivables, other receivables and
prepayments less the sum of prepayments from customers, trade paya-
bles and other current liabilities
Free cash flow Cash flow from operating activities less net capital expenditure
including acquisitions of subsidiaries and operations
Net interest-bearing debt Debt to credit institutions and other interest-bearing debt less cash and
cash equivalents
Net interest-bearing debt to EBITDA
before special items (gearing)
Ratio of net interest-bearing debt at year-end to LTM EBITDA before
special items
Invested capital The sum of property, plant and equipment, intangible assets and net
working capital less parts of deferred tax
Return on invested capital (ROIC)
before tax, including goodwill
EBITA as a percentage of average invested capital
Return on invested capital (ROIC)
before tax, excluding goodwill
EBITA as a percentage of average invested capital excluding goodwill
Investments as a
percentage of revenue
The year’s addition of intangible assets and property, plant and
equipment, including acquisitions of subsidiaries and operations as a
percentage of revenue
Average basket size Average DKK amount a customer spends per visit in the physical stores
or web shops, calculated by dividing total retail sales revenue by
number of transactions.
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Interim financial highlights
2022/23 2021/22
(DKKm) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Statement of comprehensive income
Revenue 1,050.7 1,396.2 98 9.2 1,053.5 970.6 1,378.4 973.9 1,021.3
Gross profit 484.5 620.9 442.9 466.1 468.3 613.7 430.9 453.1
EBITDA 161.6 295.9 160.0 186.7 160.0 300.9 163.0 185.7
EBIT 50.8 201.4 73.3 97.6 59.9 193.7 56.7 78.0
Net financials (15.5) (12.6) (13.3) (9.0) (12.2) (4.2) (10.3) (10.5)
Profit before tax 35.4 188.8 60.0 88.6 47.7 189. 5 46.4 67. 5
Profit for the period 17.6 14 7. 3 46.7 69.1 39.3 146.7 36.4 54.1
Statement of financial position
Assets 6,280.2 6 ,149.0 6 ,111. 2 6,054.7 6,055.3 6,216.5 6,204.9 6,243.5
Equity 3,363.1 3,345.2 3,195.8 3 ,147. 0 3,152.3 3 ,107. 6 3,012.2 2,993.5
Net working capital 23.0 (119. 4) 47. 6 31.5 (12.2) (89.5) (76.2) (113 .1)
Net interest-bearing debt 1,642.4 1,235.0 1,583.7 1,561.7 1,648.8 1,660.5 1,766.0 1,739. 5
Statement of cash flows
Cash flow from operating activities (45.2) 433.9 145.7 144.5 51.5 241.2 129.6 88.2
Cash flow from investing activities (72.9) (51.5) (85.5) (45.9) (39.4) (55.1) (43.5) (93.6)
Free cash flow (118 .1) 382.4 60.2 98.6 12.1 186.1 86.1 (5.4)
Net cash flow from operating, investing and financing activities (94.9) 88.5 (2.9) 17.9 (15.1) 16.8 (9. 2) (5.0)
(Unaudited)
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Interim financial highlights – continued
2022/23 2021/22
(DKKm) Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1
Key performance indicators
Number of transactions (millions) 5.5 6.8 5.4 5.5 5.1 6.6 5.2 5.1
Average basket size (DKK) 182.3 202.8 179.4 187.1 182.7 204.5 181.9 196.4
Total retail floor space (thousands of square metres) 53.3 53.7 53.5 53.5 53.3 53.3 53.4 53.8
Avg. revenue per square metre (DKK thousands) - LTM 81.9 80.6 80.3 79.9 79.3 79.5 78.7 78.5
Like-for-like growth 7. 5 % 1.2% 1.6% 2.9% (2.3)% 2.8% 1.8% 5.9%
Adjusted figures
EBITDA 161.6 295.9 160.0 186.7 160.0 300.9 163.0 185.7
Special items - - - 4.8 7. 8 (17. 4) 2.6 0.0
EBITDA before special items 161.6 295.9 160.0 191.5 167. 8 283.5 165.6 185.7
Depreciation of property, plant and equipment ( 97. 8) (81.9) (75.3) ( 7 7. 8) (79.5) ( 7 7. 5 ) (75.5) (78.2)
EBITA 63.8 214.0 84.7 113.6 88.3 206.0 90.1 107. 5
Adjusted profit after tax 2 7. 8 157.1 55.6 81.6 61.4 156.5 62.5 7 7. 2
Gross margin 46.1% 44.5% 44.8% 44.2% 48.2% 44.5% 44.2% 44.4%
EBITDA margin 15.4% 21.2% 16.2% 17. 7 % 16.5% 21.8% 16.7% 18.2%
EBITDA margin before special items 15.4% 21.2% 16.2% 18.2% 17. 3 % 20.6% 17.0 % 18.2%
EBITA margin 6.1% 15.3% 8.6% 10.8% 9.1% 14.9% 9. 3% 10.5%
EBIT margin 4.8% 14.4% 7. 4 % 9.3% 6.2% 14.1% 5.8% 7. 6%
(Unaudited)
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Page 97 of 98
Design & production: Noted
Matas A/S
Rørmosevej 1
3450 Allerød
Phone: +45 48 16 55 55
www.matas.dk
investor.matas.dk
CVR no.: 27 52 84 06