2024
Annual and
Sustainability Report
CONTENTS
Annual review 3
Orthex in brief 4
Key figures 5
Highlights of the year 6
Review by the CEO 7
Purpose and values 10
Strategy 11
Sustainability 14
Key sustainability actions 2024 15
Sustainability at Orthex 16
Environmental: Promoting circular economy 21
Social: Safe workplace and tested products 33
Sustainability Governance: Part of everyday work 39
Governance 43
Corporate governance statement 2024 44
Board of Directors 48
Management Team 52
Remuneration report 2024 56
Financial review 60
Board of Directors’ report 62
Financial statements 84
Annual and Sustainability Report 2024
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ANNUAL
REVIEW
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Orthex in brief
Orthex is a leading Nordic houseware company. Orthex designs,
produces, markets, and sells practical and durable household products
with a mission to make consumers’ everyday life easier. Orthex’s
products cover a multifunctional assortment of storage boxes,
kitchen utensils and products for home and garden. Orthex main
consumer brands are SmartStore™ in storage products, GastroMax™
in kitchenware and Orthex™ in home and garden products. In addition,
Orthex sells kitchenware under the Kökskungen™ brand.
Orthex has more than 100 years of experience in household products,
and it has approximately 800 customers in more than 40 countries.
Orthex’s core geographic market is Europe. Orthex is headquartered in
Espoo, Finland and listed on Nasdaq Helsinki Ltd (ORTHEX).
Orthex aims to be the industry forerunner in sustainability. Our high-
quality, safe, and durable products are made with care and timeless
design. They are made for long-term use and are recyclable in all our
markets. We are actively increasing the share of recycled and renewable
raw materials in our products. At the same time, we continuously strive
to reduce the carbon footprint of our products and operations and are
aiming towards carbon neutral production by 2030.
Product categories:
Storage Kitchen Home
& garden
)
Invoiced sales of SmartStore, GastroMax, Orthex, and Kökskungen
branded products accounted for % of total invoiced sales in .
~ employees
>
customer countries
Sustainability focus
>
%
own brand sales
)
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Key figures
2024 2023 2022 2021 2020
Net sales, EUR million 89.7 85.9 84.0 88.7 75.9
Adjusted EBITA, EUR million 10.2 10.9 5.5 11.0 12.9
Adjusted EBITA margin, % 11.4% 12.7% 6.5% 12.4% 17.0%
Operating profit, EUR million 9.8 10.8 5.2 9.3 12.3
Net debt / Adjusted EBITDA 1.4x 1.5x 2.8x 1.7x 2.3x
Earnings per share, basic (EUR) 0.34 0.39 0.12 0.35 0.47
10.0%
Invoiced net sales
growth outside Nordics
288
Personnel,
FTE during the year
2.0
kgCO2
eq./kg
Our relative carbon footprint
(2023: 2.0 kgCO2 eq./kg)
5.9%
Storage category
growth
2020
2021
2022
2023
2024
75.9
88.7
84.0
85.9
89.7
Net sales, EUR million
2020
2021
2022
2023
2024
12.9
11.0
5.5
10.9
10.2
Adjusted EBITA, EUR million
2020
2021
2022
2023
2024
17.0
%
12.4
%
6.5
%
12.7
%
11.4
%
Adjusted EBITA margin, %
2020
2021
2022
2023
2024
12.3
9.3
5.2
10.8
9.8
Operating profit, EUR million
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SMETA audit
The SMETA sustainability
audit was successfully
conducted at Tingsryd
factory for the second
time and at the Lohja
factory for the first time.
Sorting solutions
Launching of a stackable
sorting solution made
from recycled plastic
called Stack-it, an addition
to our award-winning
SmartStore™ Collect range.
Circular economy
Orthex joined the Circular
Economy Green Deal and
set ambitious targets
for the year 2035 to
promote low-carbon
circular economy.
Novelties
Extension of product
portfolio made
from recycled
plastic with new
SmartStore
TM
Essence
storage baskets.
International
organisation
Strengthening of our
international sales
organisation in France
and Germany.
In-store
excellence
More than 500
SmartStore™ campaign
trucks and over 500 new
shelf implementations
together with major retail
chains around Europe and
the Nordics.
Highlights of the year
Recognitions
The new SmartStore™ Collect
Biowaste was awarded with
“Winner” at the German
Design Awards 2024 for
excellent product design,
in the category “Eco Design”.
2024
January February-April June-August September October November December
2024
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Review by the CEO
Orthex purpose is to improve consumers’ everyday life with
practical, beautiful, and durable products. We want to be
the most sustainable choice for the consumers and offer
timelessly designed, high-quality and safe products that are
increasingly made from recycled and renewable raw materials.
At the same time, we reduce the carbon footprint of our products
and aim towards carbon-neutral production.
The year 2024 was characterized by low consumer confidence and
customer carefulness, leading to a slower than normal business climate.
Despite this, the full-year net sales were the highest ever so far and grew
by 4.4% to 89.7 million euros (85.9).
The adjusted EBITA for 2024 declined and was 10.2 million euros (10.9).
Considering the one-time energy price compensation received in 2023 in
Sweden (0.7 million euros), the comparable EBITA improved by 0.6%.
The profitability was affected by higher costs related to increased production
cost as factories were planning for higher sales, reinforced commercial
resources, and salary inflation. Towards the end of the year, the profitability
was negatively impacted by higher credit loss provisions as well.
The full-year net cash flows from operating activities increased by 16.1% to
11.8 million euros (10.2). The net debt to adjusted EBITDA ratio (leverage) was
down at a healthy 1.4 (1.5) at the end of the period.
The Board of Directors proposes a dividend payout of 0.22 euros per share,
totalling 3.9 million euros and 63.9% of net profit meaning an increase in
both dividends and in percentages compared to the year 2023.
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Sales by geography
Strengthened by a solid first half of the year, the consolidated full-year
total invoiced sales increased by 4.9%. Invoiced sales in the Nordics
increased to 71.1 million euros from 68.7 million euros in 2023. Invoiced
sales in the Rest of Europe increased by 10.0% to a record of 20.3 million
euros (18.5) meaning that we reached our long-term invoiced sales
growth target +10% outside the Nordics. In the end of the year,
shipments to some customers were restricted due to increase in credit
risks, and this had a negative impact on the sales growth outside
the Nordics.
Invoiced sales in the Rest of
Europe increased by 10%.
Sales by product category
The Storage category continued to grow at a pace of 5.9% compared to
the previous year. Orthex is focusing on launching several new products
in the Storage category. The modern range of SmartStore
TM
Essence
storage baskets made from recycled material was a remarkable new
launch in 2024 and it was also recognised at the German Design Awards
2024 for its excellent product design. The Storage category accounted
for 68.9% of total invoiced sales in 2024.
Kitchen and Home & Garden categories are traditionally strong
in the Nordics, and the Kitchen category’s invoiced sales grew by
4.1% year-on-year thanks to widening customer distribution and
the successful rebranding of SmartStore
TM
food storage products.
The Home & Garden category invoiced sales remained flat compared
to the previous year.
Accelerated sales with instore visibility
Our growth strategy with a focus on accelerated European and
international growth with a strong commitment to sustainability is
progressing well. Orthex’s full-year invoiced sales in our European
strategic markets grew by 10.0%. We focused on in-store visibility
and an example of this is the building of over 500 SmartStore™ shelf
implementations in major retail chains around Europe and the Nordics.
We continued strengthening our international commercial teams, with
more local resources in France and Germany. The stronger international
presence is intended to accelerate future growth in the area. Invoiced
sales outside the Nordic markets accounted for 22.9% (21.9) of Orthex’s
invoiced sales in 2024.
Our growth strategy is
progressing well.
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Our journey towards carbon neutrality
Orthex’s main sustainability target is to aim towards carbon neutrality
in production by 2030. In 2024, Orthex joined the Circular Economy
Green Deal and committed to replace virgin raw materials with recycled
and renewable raw materials. We have an ambitious target to increase
the share of recycled and renewable raw materials in our production to
80% by 2030. In 2024, the share of recycled and renewable materials
increased to 16.6% (2023: 15.8%).
We invest in novelties
Orthex invests in novelties on a continuous basis. One of our latest
novelties is a stackable sorting solution Stack-it, an addition to our
award-winning SmartStore™ Collect range. As sorting requirements
grow, we are expanding this range to meet consumer needs and helping
retailers to offer products that solve daily sorting and waste sorting
needs. Made entirely from recycled plastic, this product range marks
another step towards our sustainability goals and Orthex’s ongoing
commitment to increase the use of recycled and renewable materials
in production. We have a rich program of new exciting products to be
launched in the coming year and we are working systematically to
improve the distribution of already launched novelties.
Solid performance
The business climate in 2024 was characterized by careful consumer
behaviour and customer uncertainty. Although inflation pressures
slowed down, and interest rates started decreasing during the year,
demand did not recover remarkably. Orthex managed, however, to
grow its full-year invoiced sales in all product categories and on all
geographical markets ending the year with a record sales quarter.
Even if I had anticipated more favourable operating conditions
and stronger growth, I am convinced that our performance builds
the momentum for the future. I am incredibly proud of the teamwork,
individual efforts, and dedication of our employees in executing our
growth strategy. I want to extend my heartfelt thank you to everyone at
Orthex for their significant contributions throughout the year, and to all
our customers and stakeholders for their trust in Orthex.
Alexander Rosenlew
CEO
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Professional implementation
We work hard to meet our customers’ and
consumers’ expectations every day.
Constant improvement
through innovation
We believe in development through continuous
improvement.
Sustainable and responsible
development
We strive to minimise our impact on the
environment and actively promote sustainability.
Respectful teamwork
We are committed to developing our
employees, showing respect, and promoting
health and safety.
Our purpose and values
We are inspired by our purpose:
Improve everyday life with sustainable
and practical products.
We develop, design, produce, and market
functional household products to customers
and consumers. Our offering is based
on appealing and innovative concepts,
responsibly produced, long-lasting products
of high quality and strong brands.
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Orthex’s key priorities in its growth strategy are to become the number one brand in
the storage product category in Europe and strengthen its position as a leading Nordic
houseware company with strong brands and sustainable products.
Solid actions to
keep winning in
the Nordics
Accelerating growth in
the international markets
through strong customer
collaboration
Accelerating growth
through the online
retail channel
Market consolidation
provides growth
opportunities
1 2 3
Orthex aims to grow the Storage product category
in the Nordics through campaigns, expansion of in-
store concepts and launch of novelties.
Orthex targets growth in the Kitchen product
category by focusing on sustainable products and
distribution expansion opportunities.
Orthex expects major growth opportunities in
the international markets and its go-to-market
strategy is delivered through local presence
with a key account approach. The key focus is
to improve the distribution of Orthex products in
Europe, invest in strategic customers and new
customer acquisition.
The company takes advantage of the e-commerce
growth opportunities by strengthening relationships
with e-commerce companies and working closely
with retailers executing a multi-channel strategy.
Orthex anticipates that acquisitions
could be an important opportunity to
reach the company’s strategic objectives.
Orthex intends to carefully evaluate
acquisition opportunities in Europe.
The synergies achieved through acquisitions
are typically related to production, sales
and marketing, logistics, product category
expansions, overheads, and a stronger
bargaining position.
In 2024, the Nordics accounted
for 77.1 percent of Orthex
invoiced sales.
In 2024, international markets
accounted for 22.9 percent of
Orthex invoiced sales.
Strategy
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Commercial factors supporting the growth strategy
• Accelerating efforts to grow the Storage category in
international markets utilising the company’s long
experience in the Nordics.
• The close distribution linkage between Kitchen and Storage
categories enables cross-selling by leveraging Orthex’s
existing customer network.
• Orthex aims to be the most sustainable choice for
the consumer by offering high-quality, safe, and long-
lasting products with timeless design. Orthex is reducing
the carbon footprint of its production and products
by increasing the use of recycled and renewable
raw materials.
• Orthex believes that it has potential to be a preferred
supplier of sustainable products.
• Innovation plays an important role in Orthex
growth strategy.
• When developing new products and concepts Orthex
will focus on improving consumers’ everyday life with
sustainable and practical products with timeless design.
CLEAR CATEGORY STRATEGY
FOCUSING ON STORAGE
SHOWING THE WAY IN
SUSTAINABILITY
GROWTH THROUGH
INNOVATIONS
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Sales growth
An annual organic net sales growth
to exceed 5 per cent on a Group
level, and 10 per cent outside the
Nordics (growth in local currencies).
Profitability
Improving EBITA margin (adjusted
for items affecting comparability)
exceeding 18 per cent over time.
Leverage
Net debt to adjusted EBITDA below
2.5x. Leverage may temporarily
exceed the target (for example, in
conjunction with acquisitions).
Pay-out ratio
Distribution of a stable and over time
increasing dividend with a pay-out
of at least 50% of net profit on a
bi-annual basis.
Long-term
financial
targets
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SUSTAINABILITY
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Key sustainability actions 2024
We increased the share of
recycled and renewable
materials (used kg) to
16.6% (2023: 15.8%).
The Engagement Index
reflecting our employee
satisfaction improved to
81, on a scale from 1 to 100
(2023: 79).
Our sickness absence
rate improved to 5.2%
(2023: 6.1%).
We were among
the pioneering organisations
to join the Circular Economy
Green Deal.
Our commitment to
ethical business practices
and sustainability was
reaffirmed through
the SMETA audit –
the world’s most widely
used ethical trade audit.
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Read more
Read more
Read more
Read more
Read more
Annual and Sustainability Report 2024
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Sustainability at Orthex
Sustainability is a core element in implementing Orthex’s growth
strategy and key objectives as we strive to be the number one brand
in storage products in Europe and strengthen our position as a leading
houseware company in the Nordics. Sustainability is a key factor in all
decision making at Orthex and a significant driver of our development
and investment agenda.
The main building blocks of our approach to sustainability are our long-
lasting products, sustainable raw materials, and our target towards
carbon neutrality. We are actively increasing the share of recycled
and renewable raw materials in our products, and we continuously
strive to reduce the carbon footprint of our operations and products.
The Science-Based Targets initiative (SBTi) has approved Orthex’s
near-term science-based emissions reduction target. This means that
Orthex’s climate targets are aligned with the target to keep global
warming below 1.5°C in accordance with the Paris Agreement.
We strive to minimise our impact on the environment and actively
promote sustainability in all our actions throughout the production
and supply chains. In our decision making, we consider environmental
aspects proactively.
Orthex’s high-quality, safe, and durable products are made with care
and timeless design. Orthex does not make single-use products. On
the contrary, Orthex’s products are made for long-term use and are fully
recyclable in all our markets at the end of their life cycle.
Our key environmental principles are:
• We only produce durable products.
• We minimise the use of resources.
• We only use recyclable materials.
• We increase the amount of recycled and renewable raw materials in
our products.
Orthex supports all seventeen UN Sustainable Development Goals
(SDGs). Based on identified priority sustainability topics, we have
determined the most relevant SDGs for Orthex, and how we can best
contribute to them.
We always optimise the use of raw materials and use as much recycled
material as we can. Our products are designed to be as efficient as
possible to produce and transport in order to consume less energy. At
our factories in Finland and in Sweden, our two main environmental
targets are to reduce the use of electricity and to lower the scrap rate.
When developing new products, we always consider how to optimise
logistics. When transporting the products, we minimise the use
of packaging.
EU’s European strategy for plastics states that “plastics are an
important material in our economy and daily lives”. We also believe
that plastic is a valuable raw material that should be used to make
long-lasting, reusable, and recyclable products, such as our own. We
are proud to be able to say that all our SmartStore
TM
novelties launched
in 2024 are made of durable recycled plastic. Orthex’s products and
resource-efficient operations contribute to the EU’s target to accelerate
the transition to a circular plastics economy.
Orthex is committed to innovation and sustainability and is actively
participating in research projects to advance the use of recycled and
renewable plastics. By participating in these projects, we aim to offer
consumers the opportunity to choose more environmentally friendly
products now and in the future. More information on these projects is
available later in this report.
Our climate targets are aligned with
the target to keep global warming below
1.5 degrees.
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Materiality assessment
Orthex’s sustainability work and sustainability strategy are based on
a stakeholder materiality assessment to ensure that our sustainability
efforts focus on the most relevant sustainability topics. The latest
sustainability materiality assessment was conducted in 2022, and
the materiality was reviewed during 2024 as part of the annual strategy
review without major changes.
We ensure that our sustainability
strategy is in line with stakeholders’
expectations.
In the materiality matrix, the sustainability topics are presented
based on their importance to our stakeholders and on the impacts on
Orthex business. The matrix is based on 2022 materiality assessment,
before the sustainability strategy was restructured to follow ESG
(Environmental, Social and Governance) structure. The next materiality
assessment will be conducted following the ESG structure.
Orthex materiality assessment
ENVIRONMENTAL SOCIAL ECONOMICAL
Impacts on Orthex business
Recycling of plastic
Sustainable
raw materials
Production scrap
Carbon emissions
Energy
Product safety
Employee health
and well-being
Zero accidents
Requirements for suppliers
Nordic production
Sustainability targets of customers
Profitability and growth
Sustainability reporting
Biodiversity
Importance to stakeholders
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Orthex’s sustainability strategy
Orthex’s sustainability strategy follows the ESG structure, and it is
confirmed annually for a three-year period. In the 2024 sustainability
strategy review, no major changes were identified.
Environmental
We focus on continuously minimising our impact on the environment
and climate, and our key target is aiming towards carbon neutral
production by 2030. Our key environmental topics are environmentally
sustainable choices, resource efficiency, and responsible production and
consumption.
Social
Caring for our people, product safety, and customer satisfaction are
the key elements of our social responsibility. Orthex promotes a zero-
accident vision and culture, and we measure our performance with
Lost-Time Injury Frequency (LTIF) rate.
Governance
Orthex’s way of conducting business goes beyond compliance with
applicable laws and regulations - high ethical standards and integrity
are present in all our activities. Our Code of Conduct and Supplier Code
of Conduct define the key principles for how we engage in business.
Orthex’s sustainability strategy, relevant sustainability topics and set
indicators, targets, and results are illustrated in the following two pages.
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KPIs
Topics
Caring for our people
Product safety
Customer satisfaction
Ethical business practices
Transparency
Environmentally sustainable choices
Resource eciency
Responsible production and consumption
Sustainable materials
Energy eciency
Production scrap
Reducing carbon footprint
Employee health and safety
Zero accidents culture
Employee satisfaction
Safe and tested products
Customer satisfaction
Ethics and integrity
Sustainable supply chain
Transparent reporting and commitment
ENVIRONMENTAL SOCIAL GOVERNANCE
PURPOSE: Improve everyday life with sustainable, practical products
Orthex designs, produces, markets and sells functional household products to customers and
consumers. Our oering is based on appealing and innovative concepts, responsibly produced,
long-lasting products of high quality and leading brands.
3. Promoting circular economy
4. Cooperation across the value chain
1. Sustainable raw materials share 2030: 80%
2. Energy eciency and renewable energy
Actions:
TARGET 2030
Towards carbon neutral production
MISSION
Sustainability strategy
Aspects
VISION
#1 Brand in storage in Europe and the leading houseware company in the Nordics.
Showing the way in sustainability in the industry.
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Targets and indicators
Orthex’s sustainability targets and key performance indicators (KPIs)
Aspect Topic KPI Indicator Target Result 2022 Result 2023 Result 2024
E
ENVIRONMENTAL
Environmentally
sustainable choices
Sustainable materials
Share of renewable and recycled materials (used kg) 2030 > 80% 13.6% 15.8% 16.6%
Increase sales of products made from renewable and
recycled materials (%)
> 2 times net sales growth
5.0%
(Net sales -5.2%)
67%
(Net sales 2.3%)
15%
(Net sales 4.4%)
Resource efficiency
Energy efficiency
Improve 1% annually, baseline 2022
(kWh/produced kg)
< 1.059 in 2025 1.092 1.025 1.024
Production scrap Scrap rate 2024 < 1.42%
1)
0.96% 0.87% 0.95%
Responsible
production and
consumption
Reducing carbon footprint
CO2 calculation for our operations (tCO2eq./a) Towards carbon neutral production by 2030 27,311
2)
30,019
2)
30,775
CO2 per produced kg (kgCO2eq./a) Reduce annually
1.9
2)
2.0
2)
2.0
S
SOCIAL
Caring for our people
Employee health and safety Sickness absence rate (factory employees) < 5% 6.5% 6.1% 5.2%
Zero accident culture LTIF < 10 9 6 10.5
Employee satisfaction Engagement index Improve annually N/A 79 / 100 81 / 100
Product safety Safe and tested products All food contact materials tested 100% 100% 100% 100%
Customer satisfaction Customer satisfaction Customer satisfaction rate Improve 3.93 / 5 (2021) 4.08 / 5 4.08 / 5 (2023)
G
GOVERNANCE
Ethical business
practices
Ethics and integrity Share of employees committed to Code of Conduct 100% N/A 100% 100%
Sustainable supply chain
Suppliers aligned with Supplier Code of Conduct
(A + B Suppliers)
100% N/A 88% 100%
Share of suppliers that are BSCI members
(in risk countries), repr. 90% of purchase value
100% 94% 100% 88%
Transparency
Transparent reporting and
commitment
CDP reporting Minimum B-level annually B A- N/A
3)
Commitment to Science-Based Targets initiative Net-Zero Target validated and approved by 2025 N/A In progress In progress
1)
New target for scrap rate: < 1.0% in 2025 and 2026
2)
The figure has been adjusted to align with the updated plastics emission factors
3)
Outcome of the 2024 CDP reporting is still pending.
Achieved In progress Actions needed New target
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We focus on reducing
our emissions.
Environmental:
Promoting circular economy
Orthex strives to continuously minimise its impact on the environment
and climate. The products we manufacture are of the highest quality
and are meant to last for years or even decades. Even after a product
has worn out, it can be recycled, and the material reused for other
purposes.
All our factories are ISO 14001 and 9001 certified for environmental and
quality management, respectively. We are making significant efforts
to increase energy efficiency and have been able to reduce energy
consumption year after year.
Our focus areas within responsible production and consumption
are reducing our greenhouse gas emissions, increasing the share of
recycled and renewable raw materials in our production, and promoting
the circular economy of plastics.
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Our road map towards carbon
neutrality by 2030
We have set an ambitious target and are aiming towards carbon
neutrality in our production by 2030. This is why we have simulated
our road map towards carbon neutrality, taking into account Scope 1,
2 and 3 emissions.
In addition to direct greenhouse gas emissions from our operations
(Scope 1) and the production of purchased energy (Scope 2), we
have included the following relevant indirect emissions (Scope 3) in
our target: purchased goods and services; fuel and energy-related
activities; upstream transportation and distribution; and waste
generated in operations.
Our Scope 2 emissions are zero since we use EPD certified renewable
hydropower electricity in all our factories. As almost all our remaining
emissions originate from the raw materials (Scope 3), we are focusing
our efforts on increasing the share of recycled and renewable
raw materials in our production. Key drivers enabling us to move
towards our goal are further adoption of the mass balance approach
(read more later in this section of the report), innovations, new
sources of raw materials, and development of plastic recycling and
recycling technology.
2030
We focus
on Scope 3
emissions
Actions to improve resource eciency
Mass balance approach
We will continue implementing a mass balance approach to make it
possible for us to offer consumers more sustainable products.
100%
renewable
energy
Zero Scope 2
emissions
Raw material
development
Orthex road map towards carbon neutrality by 2030
Innovations
We invest in researching new sources of raw materials.
Recycling technology
We closely follow development of plastic recycling
technologies e.g. chemical recycling.
2020
CO2 emissions
We focus our efforts on
increasing the share of
recycled and renewable raw
materials in our production.
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Most of our greenhouse gas emissions originate from purchased goods
and services, such as raw material extraction, and the end-of-life of sold
products, like the incineration of products for energy. The latter is excluded
from our 2030 carbon neutrality target. This is because of our limited
ability to influence consumer behaviour – whether they recycle or discard
our products after use – but also because it is difficult to evaluate how
the recycling of plastic develops.
As our products will be in use for decades, it is likely that by the tim
e they
reach their end-of-life stage, most plastic will be fully recycled. Even if we
have limited influence on consumer recycling behaviour, we proactively
promote the recycling of plastics in our communication channels and we
actively participate in plastic recycling awareness-raising activities. In addition,
we make considerable investments to find new methods and raw material
solutions. Read more about our investments in research later in this report.
The emission factors used in the market-based calculation of Orthex’s carbon
footprint are based on widely used and trusted sources, such as the licensed
databases of Ecoinvent and Sphera. When primary data from our suppliers
is not available, average emission factors are used. In 2024, updates were
made to these databases including more detailed data on fossil supply
chains and improved information on related methane leaks. Consequently,
the plastic emission factors, and related emissions increased. To maintain
data comparability, we have updated the previous years’ CO2 calculations
with the updated emission factors.
In 2024, our relative carbon footprint that eliminates the impact of
business growth decreased slightly and was 2.0 kgCO2 eq./kg (2023: 2.0 kg
CO2 eq./kg). Due to volume growth, our total emissions increased slightly
and were 30,775 tCO2-e (2023: 30,019 tCO2-e). We will continue to increase
the share of recycled and renewable raw materials in our production to
reduce emissions.
Carbon footprint 2020-2024 (tCO2 eq.)
Year Scope 1 Scope 2 Scope 3 Total
kgCO2 eq./kg
of plastic products EoL sold products
2020 72 3,052 30,274
1)
33,398
1)
2.3
1)
27,280
2021 66 0 35,600
1)
35,666
1)
2.
2
1)
30,203
2022 74 0 27,237
1)
27,311
1)
1.9
1)
26,534
2023 66 0 29,953
1)
30,019
1)
2.0
1)
30,047
2024 69 0 30,706 30,775 2.0 31,303
1)
The figure has been adjusted to align with the updated plastics emission factors.
Waste generated
in operations
EoL sold
products
Production of
purchaced energy
Fuel and energy
related activities
Upstream
transportation
and distribution
Purchased
goods and
services
Direct emissions
at production
plants
SCOPE 2
SCOPE 3
SCOPE 1
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Sustainable raw materials
Increasing the share of recycled and renewable raw materials
Orthex promotes sustainability in all choices made along the life cycle
of a product. We only use durable and recyclable raw materials while
minimising their use and optimising logistics. Reducing greenhouse gas
(GHG) emissions and increased sourcing of recycled and renewable raw
materials are at the core of our strategy and sustainability vision.
Our target is to increase the share of used recycled and renewable raw
materials in our production to 80% by 2030. In 2024, this share (used
kg) increased to 16.6% (2023: 15.8%). In addition, the growth in sales of
products made from recycled and renewable materials was three times
faster than the overall net sales growth. The growth was due to the fact
that we have launched several new products made from recycled
plastic in 2023 and 2024 and have switched to using ISCC PLUS
certified, renewable, and recycled raw materials produced by applying
the mass balance approach in several product ranges.
Renewable raw materials
Plastics made from renewable raw materials, also often called bio-
based, reduce our dependency on limited fossil resources and have
a significantly smaller carbon footprint than fossil-based plastics.
We currently use three renewable raw materials for our GastroMax
TM
BIO products: wood fibre, sugarcane, and castor oil. All these products
have OK Biobased certifications, which assures the share of bio-based
raw materials in the products. We buy the renewable raw materials
from reliable suppliers who we have long relationship with and require
that the raw materials have applicable certificates.
Recycled raw materials
The carbon footprint of products made with recycled content is lower
than that of products made with conventional plastic. We have used
recycled plastic in our production since the 1990s and currently,
a prerequisite for all new product investments is that the material
should be either recycled or renewable. We are proud to be able to
say that all our SmartStore
TM
novelties launched in 2024 are made of
durable recycled plastic.
Our SmartStore™ Recycled product range which is made with recycled
plastic is certified according to the Blue Angel ecolabel which sets strict
standards for environmentally friendly products and services.
The carbon footprint of products
made with recycled content is
reduced by up to 60%.
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CIRCULATE YOUR FOOD WASTE WITH SMARTSTORE
TM
COLLECT BIOWASTE
Since the beginning of 2024, requirements for separation of food
waste and its storing separately from other waste are increasing in
the EU. Analyses of household waste have shown that one-third of
the content consists of food or kitchen waste. By separating food
and kitchen waste and treating it right, essential resources can be
captured and effectively circulated.
So, it makes sense to sort food waste. For this need, we launched
the SmartStore™ Collect Biowaste bin for sorting and storing
household food waste. By launching this practical food waste caddy,
we wanted to make food waste separation effortless and consumers’
everyday life easier.
Just like the other sorting solutions in the Collect family,
this novelty earned recognitions in various competitions.
The SmartStore™ Collect Biowaste was awarded with “Winner”
at the German Design Awards 2024 for its stylish and practical
design in the category “Eco Design”. In addition, the container was
shortlisted for the Excellence in Housewares Awards 2024 in
the Excellence in Home Organisation category.
With its sleek Nordic design, SmartStore™ Collect Biowaste fits
beautifully on any kitchen counter. Crafted from sustainable
recycled plastics in our factory in Finland, it’s a perfect blend of
form and function. Thanks to its compact design, the product fits
well even in smaller kitchens.
Orthex was among the first consumer goods companies in the world to
start using plastic packaging recycled by consumers as raw material
for new products in 2017, as soon as technology allowed it. Today,
this plastic comes from EuCertPlast-certified suppliers in Europe.
The EuCertPlast certification (European Certification of Plastics
Recycling) is designed to ensure the traceability and transparency of
recycled plastics in the European market. It verifies the quality and
sustainability of plastic recycling processes.
We also use recycled plastic from industrial sources.
This material originates from reliable EuCertPlast certified suppliers as
well. The suppliers make the raw material by collecting post-industrial
plastic waste from various sources, and the mix may vary. Post-
industrial plastic waste is generated for example in industrial packaging,
injection moulding, thermoforming, plastic manufacturing, and industrial
processing.
All our products are recyclable.
The plastic in our products can be recycled approximately 10 times.
In practice, however, recycled plastic is always a mixture of plastics
of different ages, some of which have been recycled more often than
others. This means that while a certain part of the plastic mass can
be recycled ten times, the product as a whole can be recycled almost
indefinitely.
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Mass balance approach to drive the change
As transparent plastic and food contact with plastic are still difficult or
even impossible to achieve with recycled plastic, we have started to use
renewable raw materials by applying a mass balance approach in our
products to make it possible for us to offer consumers more sustainable
products. The mass balance approach means that recycled and
renewable materials are mixed with fossil materials in the raw material
production process as presented in the illustration below. This reduces
the amount of fossil-based plastic in the world.
In 2024, the ISCC PLUS certificates of Orthex’s Lohja and Gnosjö
factories were renewed. This allowed us to continue the usage of
recycled and renewable raw materials produced by applying the mass
balance approach. We are using renewable raw materials produced
by applying mass balance approach for example in the production of
our popular SmartStore™ Compact and Compact Clear storage boxes.
Each product has on average at least 20% of renewable or recycled raw
material allocated to it, according to the mass balance approach.
In addition, we extended the usage of ISCC PLUS certified renewable
raw materials into SmartStore™ Sustain food containers. These products
are made with 80% of bio-based plastic. The bio-based content is
allocated to the products by applying the mass balance approach.
ISCC certified
renewable and/
or recycled
feedstock
Fossil feedstock
Raw material
manufacturing
process
Product
manufacturing
process
Mixing of renewable/recycled
and fossil raw materials.
By keeping track of quantities, the
renewable/recycled raw material can
be allocated to specific products.
Fossil raw material
Conventional
product
Mixed raw material
ISCC certified product
Physically mixed raw material with documented
and verified quantity of renewable/recycled
content throughout the value chain.
The ISCC PLUS certified content is
allocated to this product by applying
mass balance approach. Mass balance
products carry the ISCC logo.
ISCC PLUS certified mass balance approach
Mass balance approach is a method to document and track renewable and/or
recycled content throughout complex manufacturing systems to the end product.
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Investing in the research of
sustainable raw materials
We invest in research to find new methods and raw materials
We want to provide consumers with the opportunity to choose more
environmentally friendly products and we invest in research to find new
methods and raw material solutions. Orthex is involved in three significant
research projects. The goals of the projects are to increase the use of
recycled and renewable plastics, and to promote circular economy. In line
with Orthex’s sustainability strategy, the projects support our 2030 carbon
neutrality target and the target to increase the use of sustainable
raw materials.
Orthex launched a significant research project for the development
of future recycled plastic products in September 2022. The project
is carried out in cooperation with partners, and it will continue until
the end of 2025. The goals of the project are to build an ecosystem
aimed at increasing the use of recycled plastic and to generate new
information about the use of recycled plastic in different applications,
especially in products suitable for food contact. The results of
the product development and tests have been encouraging and
indicated that recycled plastic is, at least in principle, suitable for food
contact. However, starting profitable industrial scale production would,
among others, require further development of sorting technology and
amendments to regulations governing the use of recycled plastic.
The project is part of the extensive and pioneering Borealis SPIRIT
(Sustainable Plastics Industry Transformation) program supported by
Business Finland, which aims to transform the plastics industry towards
a more sustainable future.
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ORTHEX RESEARCH PROJECTS IN SHORT
Food-safe recycled plastic: Together with Fortum and other
partners in the Borealis SPIRIT program, Orthex is investigating
whether recycled plastic can be used in products suitable for food
contact, expanding possibilities to use sustainable materials. Project
Engineer Unna Paavolainen from Orthex presented the test results
of this project at the annual SPIRIT event.
PlastLIFE SIP-EU: As part of this seven-year collaborative project,
Orthex is working to identify and test new environmentally friendly
plastic raw materials, aiming to bring pioneering products to market.
Reusify project: Focusing on reducing single-use packaging, Reusify
explores how packaging reuse systems could function. Orthex
goal in this project is to find solutions for replacing the single-
use products with reusable food storage and delivery boxes in
professional kitchens.
Transforming the plastics
industry towards a more
sustainable future.
Since January 2023, Orthex participates in a large cooperation
project of seven years to promote the circular economy of plastics.
The PlastLIFE SIP-EU project piloted by the Ministry of the Environment
and the Finnish Environment Institute (SYKE) is part of the EU’s LIFE
program. As part of the PlastLIFE SIP-EU project, the goal of Orthex’s
work package is to find new potential, environmentally friendly plastic
raw materials, test raw materials in production and as finished products,
and then bring new products to the market. Examples of novelties
launched by Orthex as results of this work are the SmartStore
TM
Bedroller and SmartStore
TM
Stack-it sorting solution, which are
manufactured using new recycled plastic raw materials.
Orthex is also involved in the Reusify project that started in 2024 and
aims to reduce single-use packaging. The project includes several
different stakeholders, as cooperation across the entire value chain
is a prerequisite for a circular economy. The goal of the project is to
increase the reuse of packaging by generating new knowledge and
expertise on how reuse could be implemented and what kind of system
it would require.
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REUSIFY PROJECT AIMS TO REDUCE SINGLEUSE PACKAGING
Orthex is a participant in the Reusify project, which started in 2024.
The project aims to reduce single-use packaging by developing
reusable packaging systems. Orthex goal in this project is to find
solutions for replacing the single-use products with reusable food
storage and delivery boxes in professional kitchens.
The project focuses on creating new knowledge and expertise
on how to implement reusable packaging systems. It includes
exploring various reuse dimensions, such as ecosystems,
business models, circular packaging solutions, and sustainability
scenarios. The research will also analyse consumer experience
and acceptance.
The Reusify project aims to generate new knowledge and expertise
about the introduction of packaging systems that enable reuse, and
thereby new export opportunities for Finnish industry participants.
The initiative is expected to contribute significantly to the circular
economy by reducing the use of fossil-based packaging materials
and addressing packaging waste challenges.
The Reusify project is two and a half years long co-innovation
research initiative led by VTT Technical Research Centre of
Finland Ltd. and the University of Vaasa, involving 21 stakeholder
organisations including Orthex. It is primarily funded by Business
Finland. The project is part of the broader Borealis SPIRIT
(Sustainable Plastics Industry Transformation) program.
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Resource efficiency
Our efficient operations save natural resources
Orthex’s operations are resource efficient and have minimal impact on
the environment, including local biodiversity. In optimizing resource
efficiency, our focus areas are improving energy efficiency and
decreasing production waste, or scrap. Our objective is always to save
natural and other resources.
Since we use renewable hydropower in all our factories, our energy
consumption per kilogram of product continued decreasing in 2024,
reflecting improved energy efficiency. The energy used to produce 1 kg
of goods has decreased by 9.5% compared to the 2020 average.
Another significant way to improve energy efficiency in our operations
is to replace old machines with energy efficient ones. Investments in
energy efficient machines have contributed to reducing Orthex’s energy
consumption significantly as described in the enclosed table. Our energy
efficiency target for the period of 2023–2025 is to improve energy
efficiency 1% annually (baseline year 2022).
Progress in energy consumption 2020–2024 (kWh/kg)
Year Outcome Target
2020 1.131 1.145
2021 1.100 1.106
2022 1.092 1.073
2023 1.025 1.081
2024 1.024 1.070
We optimise our production in a way that minimises the emergence of
poor-quality products or production scrap. If scrap is created despite our
measures, mainly due to colour or material change during production,
we are able to reuse the vast majority of it as raw material elsewhere in
production. This effectively eliminates the creation of actual scrap. Our
target is to reduce the share of production scrap (cost of scrap products
compared to produced volume) to under 1% during 2025 and 2026. In
2024, the scrap rate increased slightly but despite this remained clearly
below the set target and was 0.95% (2023: 0.87%).
Progress in reducing production scrap 2020–2024 (cost of scrap
products compared to produced volume, %)
Year Outcome Target
2020 1.09% 1.50%
2021 0.98% 1.50%
2022 0.96% 1.47%
2023 0.87% 1.45%
2024 0.95% 1.42%
All our factories have closed-loop systems for water use. Our operations
use cooling water in their manufacturing processes, and the water is
fully recycled in production. No wastewater is created in our operations,
and no water is released into nature.
As our products only contain the raw material and colour, we use
minimal volumes of chemicals in our production. Some chemicals
are used for other purposes, for example for cleaning. We also follow
the Substitute It Now (SIN) list to control the chemicals included in
the making of our raw materials. The SIN-list is a database of chemicals
likely to be restricted or banned in the EU. The purpose of this list
is to support organisations in identifying and replacing substances
of high concern, based on the criteria defined in REACH, the EU’s
chemical regulation.
No wastewater is created in
our operations, and no water is
released into nature.
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NEW COLOURS FROM COFFEE RESIDUES
Our GastroMax
TM
BIO tableware products needed a facelift with
trendy colours, and we wanted to find an innovative solution
supporting circular economy. Following many different research
efforts and tests, coffee residues and earth minerals were selected
as the colour materials for the tableware products.
According to sustainability researcher Gunter Pauli, coffee
production generates more than 23 million tons of garbage annually.
For consumers, used coffee grounds are the most visible example
of this waste, the bit we dump in the bin after making each fresh
brew. Following vegetables and fruits, coffee grounds are the most
common household food waste.
The coffee grounds used in the colours of our GastroMax
TM
BIO
tableware are production side streams of coffee cold brewed in
Germany. The cold brew coffee extract is used for example in
the ready to drink coffee you can find in grocery stores.
Coffee speckles enable consumers to instantly recognize that
the items are made of renewable materials. Colours made with
coffee waste and minerals also offer novelty value and differentiate
our products from the competition. GastroMax
TM
BIO plastic
products are lightweight, hygienic and robust and just perfect for
picnics, barbeques, camping and eating outdoors, and a sustainable
substitute for corresponding single-use products.
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Biodiversity
Our biodiversity impacts come from our supply chains
Orthex’s own operations are resource efficient and have minimal
impact on the environment, including local biodiversity. Our indirect
biodiversity impacts come from our supply chains, and together with
the Finnish Chemical Industry Federation and other member companies
we have created long-term, industry-level biodiversity vision, targets,
and roadmap. The most significant identified impacts of the chemical
industry on biodiversity are associated with raw material supply. These
are greenhouse gas emissions, changes in land- and water-use and
natural resource use and exploitation.
During 2024, we continued the cooperation with the Finnish Chemical
Industry Federation to establish a common approach to measure and
track biodiversity impacts within the industry over the years.
Promoting the recycling of plastic
Orthex fully supports the notion that plastic belongs in circulation,
not in nature. Plastic is a valuable material and recycling plastic is
a responsible act for a sustainable future.
Orthex is part of a value chain that enables the new life of plastic
packaging through recycling. We proactively promote the recycling of
plastics in our communication channels and various events, while also
engaging in dialogue with relevant actors. Orthex also cooperates with
its customers to raise awareness on recycling.
In 2024, we took part in “@rinkikierratys” campaign to raise consumer
awareness on the importance of plastic recycling.
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Social: Safe workplace and
tested products
Caring for our people
It is our responsibility to ensure that everyone feels safe and motivated
at work, enjoys their workplace, and can contribute through continuous
improvement. We do this by managing our occupational health and
safety risks, taking preventive measures, educating employees,
and continuously evaluating and improving our work. Leadership,
commitment, and engaged employees are key factors for us to succeed
in this area and in general. We follow up on our progress in monthly and
annual reports and meetings.
Occupational safety
Orthex promotes a zero-accident vision and culture. We want to ensure
that all our employees have a safe workplace every day. Our focus
is on preventing safety incidents, which is why we encourage our
employees to report any near-misses, unsafe practices, or other safety
observations. All reports are carefully analysed, and actions are carried
out to prevent similar situations from re-occurring in the future.
To ensure the safe use of chemicals, we provide our employees with
bulletins that define the hazard level of the chemical and include
relevant instructions for use and protective gear. Our Supplier Code of
Conduct also requires our suppliers to ensure a safe and healthy working
environment for their employees.
Orthex’s operations are audited with ISO 45001 certification for
occupational health and safety (OHS). The certificate provides
requirements for and guidance on an OHS management system.
The goal is to enable organisations to provide safe and healthy
workplaces by preventing work-related injuries and health issues, and to
help improve their OHS performance.
In addition, our Lohja factory underwent its first SMETA audit and our
Tingsryd factory was evaluated for the second time in 2024. Both sites
were thoroughly assessed on occupational health and safety, working
conditions, environmental performance, and business practices. External
audits like SMETA – the world’s most widely used ethical trade audit –
help us identify potential areas for continuous improvement, ensuring
that we maintain the highest standards in all aspects of our operations.
Our safety at work KPI is Lost-Time Incident Frequency (LTIF). This
KPI allows us to benchmark our safety performance, since it is widely
used in peer companies. We defined our LTIF target for the year
2024 regarding the entire personnel as less than 10 incidents per million
work hours. This figure is clearly below the average LTIF rate in Finnish
industry. In 2024, our employees’ LTIF rate unfortunately went up and
was 10.5 (2023: 6). Fortunately, the incidents were not serious.
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Health and well-being
We believe that the health and well-being of our employees form an
important part of their working ability. To ensure this, Orthex offers its
employees high-quality, employer-provided occupational health care.
We also promote an early support model that aims to prevent and early
detect any negative developments regarding employee health, safety,
and well-being. The model enables managers to provide adequate
and timely support to employees and to promote dialogue as part of
the company culture.
We measure health and well-being of our factory employees with a key
performance indicator for sickness absence rate (% of total theoretical
working hours). The target for this indicator is to reach the level of below
5%. In 2024, sickness absences decreased to 5.2% (2023: 6.1%). It is
a top priority for us to ensure the health and safety of our employees
and they are instructed to stay at home with the slightest symptoms of
an illness. We also continue hybrid working practices where remote and
in-office days vary depending on the needs.
Human resources
In human resources, we focus on developing an organisation with
highly motivated and skilled employees and competent leadership,
while enabling continuous improvement for all. Orthex’s performance
management and development process is a key element in guiding
employee performance and development. All managers are evaluated by
their teams annually, and all employees are provided with a structured
way of giving and receiving feedback. This helps ensure that everyone
has an opportunity to influence their personal development.
Our annual employee surveys and their follow-up surveys are important
elements of people management at Orthex. The annual employee
survey focuses on the following topics: engagement, leadership,
team efficiency, organisational and social work environment, and
management. The employee survey’s response rate was again excellent
at 98% (2023: 98%).
We measure our employee satisfaction with the KPI Engagement Index,
and we have set a target to improve annually. The relationship between
engagement and profitability of the organisation is well established.
Based on the responses to eight questions related to motivation and
commitment, our employees’ Engagement Index improved and was
81/100 in 2024 (2023: 79/100).
Employee survey helps to identify employee strengths and areas of
improvement. Each team discussed the results of the survey and agreed
on plans for development actions with regular follow-up of results and
implementation.
Employee feedback helps us build
a safe and motivating workplace.
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Diversity and inclusion
We promote equality and do not tolerate discrimination in any form.
Our employees have the freedom to organise themselves, and we
respect trade unions and personnel representatives and engage in open
dialogue with them. Our employee survey confirms that our employees
feel that people are treated fairly at work, regardless of sex, age, or
cultural background and that everyone can express themselves freely
and safely and feel part of a greater context.
Orthex had 312 employees at the year-end, which is slightly less than at
the end of 2023 (318). The distribution of employees by functions and
gender is described in the enclosed graphs. Regarding these, the most
significant change in 2024 occurred in the Management Team, where
the proportion of women rose from 25% to 33%.
Continuous improvement
We operate an internal reporting system for employees’ development
proposals, reports of deviations, incidents and accidents including close
calls. Each proposal and report are evaluated and documented. Based on
these employee observations, we have done numerous improvements
in, for example, our ways of working, work environment, and safety
equipment. Our target is to have each production and warehouse site
employee submit at least one development proposal annually. In 2024,
we got 224 development proposals which is clearly more than in 2023
(148) but we still didn’t quite reach our target. In 2025, we will be even
more active in communicating to our employees about the importance
of submitting development proposals.
Production (160)
Warehouse (66)
Sales (53)
Admin (19)
Marketing (14)
Headcount
by function
Total 312
Men 54%
Women 46%
Employees
by gender
Men 67%
Women 33%
Members of the
Management
Team by gender
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Product safety
We ensure our products are safe to use
Product safety is a top priority for Orthex. We take great pride in offering
products that are manufactured with safe, high-quality raw materials
that make them durable, functional, and safe to use. We comply
with all relevant product safety regulations and guidelines, such as
the EU’s General Product Safety Regulation regarding consumer goods,
the Regulation of good practices in food contact material operations, and
the Regulation on plastic materials and articles in contact with food.
All our products made from conventional plastic are free of Bisphenol
A (BPA) and phthalates. Recycled plastic is also tested and safe, but as
it originates from multiple plastic products, it cannot be used in food-
contact products.
Regulation on recycled plastics material which entered into force in
2022 aims to increase the use of recycled plastic material in food
contact materials while ensuring the safety of recycled plastic. Recycled
plastic materials and articles intended to come into contact with food
must be both chemically and microbiologically safe. We follow closely
developments in this area and are constantly looking for new and safe
raw material sources for recycled plastic. The European Food Safety
Authority’s approval process for registering a new recycled raw material
intended for food contact is a long-term process that requires a lot
of raw material testing, process validation and other verification of
the functionality of the process and that the recycled raw material is
completely safe to use in food contact.
Around 90% of Orthex’s products are manufactured at our factories in
Finland and Sweden. The remaining 10% are manufactured by carefully
selected suppliers, mainly in the Far East. We only work with big, reliable
suppliers that follow all regulations for food contact materials and test
their raw materials. For more information about how we work with our
suppliers, see section Responsible sourcing.
Product safety is a top
priority for Orthex.
Food contact products
We follow all EU regulations concerning food contact products.
All these products are carefully tested on a regular basis in independent,
accredited laboratories to ensure product safety. For example, our lunch
boxes undergo heat resistance testing to ensure that no substances
are released into food during heating. We specify these details in our
product-specific Declarations of Compliance. In addition, symbols on our
products and their packaging present which temperatures the product
endures and whether it is safe to use in, for example, the microwave,
fridge, or dishwasher. For more information about our product symbols,
visit www.orthexgroup.com.
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Customer satisfaction
We help our customers achieve their sustainability targets
Orthex serves various retail customers, such as traditional convenience
stores, specialty and hardware retailers, online stores, and department
stores. Consumers – the customers of our customers – are another
important stakeholder group to us. We believe that satisfied customers
and consumers will lead to a healthy and growing business. We work
hard to meet or exceed the expectations of our customers and consumers,
and we seek to be the preferred value-creating partner to our customers.
As we increase the share of renewable and recycled raw materials in our
production and proceed towards carbon neutrality, we can further support
our customers in achieving their own sustainability targets.
We actively participate in the sustainability work of our customers and
provide data and information for them so that they can use it in their
calculations and target setting.
The vast majority of our products are manufactured in Finland and
Sweden, which means that the distance to our core markets – the Nordic
countries and Europe – is short. This enables us to react to customer
needs in a timely manner and with less tiers in the customer’s supply
chain. Our warehouse in Germany increases the efficiency of our logistics
in Europe.
We measure customer satisfaction with a survey every second year.
The latest survey was conducted in 2023 when we improved our
customer satisfaction rate to 4.08 (2021: 3.93), on a scale from 1 to 5.
Orthex customers were also asked to rate Orthex as a forerunner in
sustainability and the rate improved to 4.22 (2021: 3.88).
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SMARTSTORE
TM
TRUCK ROLLS AROUND EUROPE
We seek to be the preferred value-creating partner to our
customers and successful in-store concepts are one example of
adding value.
Our SmartStore
TM
truck has been a great success among our
customers and consumers, and it is rolling out through Europe
and hundreds of stores. The trucks are loaded with our iconic
SmartStore
TM
Classic storage boxes. SmartStore
TM
Classic is one of
our best-selling products and it is a perfect durable box for various
storing and organising purposes at home, or in the office, storage
room, summer cottage or garage.
At Orthex, we believe in the power of great visibility. As a leading
manufacturer of household products, we know that most purchase
and brand decisions happen on the spot, whether in stores or online.
Just during 2024, we set up over 500 SmartStore
TM
campaign
trucks together with major retail chains in the Nordics and
elsewhere in Europe. The truck campaigns boosted the storage box
sales in these stores.
We are committed to helping our customers create outstanding
store presentations. From planning to execution, we collaborate
with retailers to design concepts that enhance product visibility and
make it easy for consumers to find and choose the right products
for their needs.
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Sustainability Governance:
Part of everyday work
Orthex’s sustainability strategy is confirmed annually for a three-
year period including the company’s key sustainability topics in
environmental, social and governance (ESG) areas. Key performance
indicators and targets are defined for each topic.
Sustainability work is led by the Board of Directors, the CEO, and
the Management Team. The Board of Directors approves the company’s
sustainability strategy and annually set sustainability targets and
monitors performance against the targets. The Management Team
reviews the company’s most important sustainability indicators monthly,
and all indicators once a year. Progress in sustainability is part of
the CEO’s incentive plan (read more in the Remuneration Report 2024)
and the Management Team members’ incentive plan.
The everyday sustainability work at Orthex is integrated into all
operations and functions. Orthex’s sustainability strategy is executed by
a dedicated team which monitors the progress of the set sustainability
targets. The team is led by the Chief Marketing and Sustainability Officer
(CMSO) and Chief Supply Officer (CSO) who report directly to the CEO
and are members of the Management Team. The team includes our
ESG Advisor and representatives of our quality functions and, through
the CMSO and CSO, covers production, procurement, marketing,
sustainability, product development, and commercial functions.
The ESG Advisor is responsible for the development of the company’s
sustainability strategy and for coordinating and implementing
sustainability initiatives in line with the sustainability strategy.
We have a dedicated team that
is monitoring the progress of set
sustainability targets.
Orthex’s key sustainability-related policies and principles are:
• Orthex Code of Conduct
• Supplier Code of Conduct
• Anti-Corruption Policy
• Equal Rights & Opportunities Policy
• Quality, Environmental and Safety Policy
• Purchase Policy
• HR Policy
Sustainability-related risks
Orthex’s risk management policy classifies risks into three groups:
strategic, operational, and financial risks. Orthex assesses ESG risks
as part of systematic risk management process. Sustainability-related
risks are typically covered under operational risks, where we review
circumstances or events that can cause harm to people, property,
business, information, or the environment.
The responsibility for implementing risk management lies with
the Management Team, and we strive to ensure that each employee
understands and can control risks within their operational environment
and responsibilities. We do this by, for example, implementing our Code
of Conduct (business ethics risks) and ISO 45001-certified management
system (occupational safety risks). Our employees also receive regular
training in cyber security, and annual competition law training is
provided for employees in contact with our customers and suppliers.
Stakeholder analysis
Our annual organisation-wide stakeholder analysis includes mapping
of our key focus groups in upstream and downstream value chain and
identification of the most significant stakeholders within these groups.
Our key focus groups include for example our A and B level suppliers,
customers and consumers. We define our influence on the stakeholders
and their interests and evaluate each stakeholder’s importance to us and
our interests. Based on this, we assess potential risks and opportunities
related to the most significant stakeholders in our value chains.
Read more about our risk management and ESG risks in the Board of
Directors’ report for the year 2024.
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Ethics and integrity
We aim to go beyond compliance
Orthex operates internationally, and we strive to comply with all
laws and regulations applicable to our operations. However, our way
to conduct business goes beyond that: high ethical standards and
integrity are present in everything we do. Everyone at Orthex has a role
in ensuring that the company operates in an ethical and responsible
manner, regardless of the situation. We train and educate our employees
to ensure that everyone understands what ethical behaviour is and how
to demonstrate it.
Orthex Code of Conduct applies to all our employees, and members of
the Management Team and the Board of Directors. The Code of Conduct
defines the key principles for how we engage in business, treat each
other, and safeguard Orthex’s assets. It is a tool that helps recognise
ethical dilemmas and presents ways to solve them. Our employees
are encouraged to report any breaches of the Code of Conduct to their
supervisors or through Orthex’s whistleblowing channel. Our KPI related
to ethical business practices is the share of employees committed to
Orthex Code of Conduct, and the target is 100%. In 2024, we achieved
this target (2023: 100%).
To promote accountability and foster a responsible company culture,
we have an internally operated whistleblowing channel. The channel
is open to all internal and external stakeholders and can be used
anonymously. Employees can use the channel via the company’s
intranet pages and other stakeholders through the company’s
website (Whistleblowing - Orthex Group). The employees and other
stakeholders may use the channel to report suspected non-compliance
with Orthex’s Code of Conduct or Supplier Code of Conduct; breaches of
legislation; or other regulations or guidelines. Such non-compliance may
include, for example, approval of a gift against guidelines, fraud, forgery,
conflicts of interest, or inappropriate behaviour by a colleague or partner.
When Orthex receives a report on a suspected misconduct or
non-compliance, the matter is first investigated by the CEO and
the respective member of the Management Team. After processing
the report, the CEO determines potential further actions, which can
be corrective or disciplinary. The whistleblowing reports are always
processed in confidence, and the whistleblower, their personal data,
and the subject of the report are always protected in accordance
with the applicable whistleblower protection, data protection and
information security laws. We did not receive any reports through
the whistleblowing channel in 2024 nor the previous year.
Orthex’s way to conduct business
goes beyond complying with laws
and regulations.
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Responsible sourcing
We have strict sustainability requirements for our suppliers
Orthex procures its raw materials mainly from European suppliers.
Only slightly more than one percent of the raw materials used by
the company come from elsewhere than the EU area or Great Britain.
Our suppliers are key partners for us in controlling and developing
the sustainability of our value chain. We aim for active engagement with
and continuous evaluation of our suppliers. In the evaluation process
we take into account sustainability, cost efficiency, innovation skills, risk
management, and other opportunities. Sustainability is at the core of
our business and that drives us to find alternative and more sustainable
solutions. Elements of more sustainable solutions are defined by
category. Main target is to reduce CO2 emissions and improve resource
and energy efficiency.
Supplier Code of Conduct
Our Supplier Code of Conduct (SCoC) presents Orthex’s sustainability
requirements for suppliers. Our suppliers must either commit to our
Supplier Code of Conduct or present their own code of conduct with
similar or stricter sustainability requirements compared to those in our
SCoC. Our target is that all our A and B classified suppliers must align
with Orthex Supplier Code of Conduct, and we achieved this target in
2024 (2023: 88%).
If our audits or evaluations reveal non-compliance with our SCoC, we
require the supplier to take corrective action and remedy any adverse
impacts on people or the environment, as well as ensure the prevention
of similar issues taking place in the future. The supplier is given
a timeframe to complete the agreed actions. If the supplier is unable to
take corrective, remedial, or preventative measures on its own, we will
support in developing and implementing an action plan.
If the supplier is unwilling to take corrective action, or there are
repeated and serious breaches of our SCoC, Orthex has the right to end
the business relationship. Orthex will not conduct any business with
a supplier engaged in violations of fundamental human rights, and we
will immediately terminate the business relationship with a supplier
that commit such violations. These zero-tolerance practices are listed in
our SCoC.
In addition to engaging with our suppliers directly, we are a member
of amfori BSCI, a platform that enables companies to improve visibility
over the social performance of their supply chain. In countries that
we have determined high-risk, we monitor compliance with our SCoC
in the supply chain through amfori BSCI which carries out on-site
inspections, audits, and periodic self-evaluations of suppliers and their
sub-contractors. Orthex has been a member of amfori BSCI since
2018 and we follow the share of suppliers that are amfori BSCI members
(in risk countries) and represent 90% of purchase value. The target is
to cover 100% of these suppliers. We didn’t reach that target in 2024:
the result was 88% (2023: 100%). In recent years, we have significantly
reduced purchases from risk countries, and as a result, new, smaller
suppliers have risen to 90% of the purchase value. Our goal is to have
these suppliers also become members of amfori BSCI during 2025.
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Transparent reporting and commitment
We consider transparent reporting of our environmental, social and
governance (ESG) impacts and efforts an important part of how we
do business. We receive an increased number of various ESG related
questions and requests from our stakeholders, especially from
customers and investors, and we seek to increase transparency and
provide reliable data on material sustainability topics. Orthex reports
on its sustainability efforts every year as a part of its Annual and
Sustainability Reports and monitors closely any applicable reporting
requirements. In addition, Orthex contributes to several third-party
sustainability reports and commitments.
In 2024, Orthex continued its preparations for the entry into force
of the Corporate Sustainability Reporting Directive (CSRD). The new
reporting requirements were expected to apply to the company starting
from the beginning of 2025. However, changes to these reporting
requirements have been proposed within the EU, which may result in
the company being exempt from these requirements due to its size. We
are closely monitoring the progress of the regulatory changes and their
potential impacts on the company’s reporting obligations.
Circular Economy Green Deal commitment
In 2024, Orthex joined the Circular Economy Green Deal. The Circular
Economy Green Deal is a voluntary commitment in which
the participating organisations commit to reducing their use of natural
resources and setting effective goals, and to taking actions that
promote a low-carbon circular economy. The commitments aim to
reduce the use of raw materials, extend the useful life of materials
and products, increase the supply of options that cause less burden on
the environment and strengthen the natural capital, and develop new
operational and business models that are in line with a circular economy.
The joining organisations show leadership in promoting a circular
economy and gain opportunities for networking and developing
cooperation with other stakeholders that aim for a circular economy.
Orthex joined the Circular
Economy Green Deal.
Orthex’s commitment relates to action areas “Increasing the value of
recycled materials and bio-based raw materials in production” and
“Expanding the availability of circular economy products in the market”.
We are committed to using recycled and renewable raw materials in
the manufacture of our products, as our goal is to replace virgin raw
materials in our production with recycled and renewable raw materials
and to introduce plastic products made from recycled or renewable
materials to the market.
CDP
Orthex reports on risk management and management practices
related to climate change in Climate Disclosure Project’s (CDP) climate
change program annually. CDP is a non-profit organisation that runs
the global disclosure system for investors, companies, cities, and states
to manage their environmental impacts. Our target is to reach at least
the Management level with the score B in CDP reporting. Outcome of
the 2023 CDP reporting was disclosed in February 2024 and Orthex
reached the highest Leadership level with a score A-. Outcome of
the 2024 CDP reporting is still pending.
EcoVadis
In 2024, Orthex participated for the second time in the EcoVadis ESG
assessment and was awarded with a bronze medal for sustainability
performance (2023: silver). The assessment results places Orthex
among the top 22 percent of over 90,000 companies globally assessed
by EcoVadis.
Nasdaq ESG Transparency Partner
Orthex is certified Nasdaq ESG Transparency Partner. This certification
is used by Nasdaq to show engagement in the market transparency
and raising environmental standards. Sustainability is a core element in
Orthex’s strategy and with this reporting to Nasdaq’s ESG Data Portal
we want to provide quantifiable data on environmental, social and
governance issues to investors and other stakeholders.
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GOVERNANCE
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CORPORATE GOVERNANCE
STATEMENT 2024
Orthex Corporation (”Orthex” or ”the company”) is a public limited
liability company listed on Nasdaq Helsinki Ltd and headquartered in
Espoo, Finland. The company’s corporate governance complies with
the company’s Articles of Association and Corporate Governance
Principles as well as rules and regulations applicable to Finnish
listed companies such as the Finnish Limited Liability Companies Act
(“Companies Act”) and Securities Markets Act, and rules and regulations
of Nasdaq Helsinki Ltd. The company also adheres to the Finnish
Corporate Governance Code 2025 (”CG Code”) issued by the Securities
Market Association. The CG Code is available on the association’s
website (www.cgfinland.fi).
This Corporate Governance Statement is issued as a separate
statement from the Board of Directors’ report, but it is published
simultaneously with the Board of Directors’ report and with
the company’s financial statements, sustainability report, and
the remuneration report for the year 2024 on the corporate website
at www.investors.orthexgroup.com. As the company has no
audit committee, the company’s Board of Directors has reviewed
the Corporate Governance Statement.
Governing bodies
The Annual General Meeting, the Board of Directors and the CEO are
responsible for the governance of Orthex. The company’s shareholders
exercise the highest decision-making power at the general meeting of
shareholders. The Shareholders’ Nomination Board prepares proposal for
the composition of the Board of Directors to the Annual General Meeting.
The Annual General Meeting elects the members of the Board
of Directors. The company is managed by the Board of Directors
and the CEO, appointed by the Board of Directors. The company’s
Management Team assists the CEO in the operative management of
the company. The members of the Management Team are appointed by
the Board of Directors together with the CEO.
Governance structure of Orthex Corporation
Shareholders
External independent auditor General meeting of shareholders
Board of Directors
CEO
Management Team
Shareholders’ Nomination Board
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General Meeting of Shareholders
The General Meeting of Shareholders is the ultimate decision-making
body of the company. At the General Meeting of Shareholders,
shareholders exercise their powers in accordance with the Companies
Act and the Articles of Association. The General Meeting of Shareholders
decides on matters that under the Companies Act and the Articles
of Association are within its purview. Annual General Meeting of
Shareholders is convened by the Board of Directors annually and it is
held within six months from the end of the previous financial year. An
Extraordinary Meeting of Shareholders may be convened as stipulated
in the Companies Act. Matters on which the Annual General Meeting
decides include the adoption of the financial statements, distribution
of profits, discharge from liability, and election of the members of
the Board of Directors and the auditor, as well as their remuneration.
Decisions to amend the Articles of Association are also taken by
the General Meeting of Shareholders.
Annual General Meeting 2024
Orthex Corporation’s Annual General Meeting was held in Espoo on
9 April 2024. The general meeting adopted the financial statements and
discharged the members of the Board of Directors and the CEO from
liability for the financial year 2023. The general meeting also approved
the 2023 remuneration report for the governing bodies.
The general meeting approved the Board of Directors’ proposal to
pay a dividend of EUR 0.21 per share. The dividend was paid in two
instalments. The first instalment of EUR 0.11 per share was paid on
18 April 2024. The second instalment of EUR 0.10 per share was paid
on 9 October 2024.
The general meeting resolved that Sanna Suvanto-Harsaae, Markus
Hellström, Jyrki Mäki-Kala, Jens-Peter Poulsen and Anette Rosengren
be re-elected to the Board, all for a term of office ending at the end of
the next Annual General Meeting. Sanna Suvanto-Harsaae continues to
chair Orthex Board of Directors. The members of the Board of Directors
are independent of the company and its significant shareholders.
In the autumn of 2024, the number of members of Orthex’s Board of
Directors decreased to four as Jens-Peter Poulsen announced his
resignation from the Board as of the end of October.
As to Board remuneration, the general meeting resolved that
the remuneration of the members of the Board of Directors remain
the same and that the Chair of the Board of Directors be paid a monthly
fee of EUR 4,000 and other members of the Board of Directors
a monthly fee of EUR 2,000.
Ernst & Young Oy, a firm of Authorised Public Accountants, was re-
elected the company’s auditor for a term of office ending at the end
of the next Annual General Meeting. As announced by Ernst & Young
Oy, APA Mikko Rytilahti continues as the signing audit partner.
The remuneration of the auditor was resolved to be paid according to
a reasonable invoice approved by the Board.
The general meeting also authorised the Board of Directors to issue or
convey a total maximum of 1,600,000 new shares and special rights
entitling to shares in one or several issues and to acquire a maximum
of 175,000 shares in the company. The authorisations will be valid until
30 June 2025.
Further information about the decisions of the general meeting can
be found in the AGM documents, which are available on the corporate
website at Annual General Meeting 2024 – Orthex Group.
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The Board of Directors
Under the company’s Articles of Association, the Board of Directors is
composed of a minimum of four and a maximum of eight members.
Members of the Board of Directors are elected at the general meeting.
The term of office of a member of the Board of Directors commences
from the close of the general meeting in which they are elected and
expires at the close of the following annual general meeting. The Board
of Directors elects a chair from among its members.
Jens-Peter Poulsen, member of Orthex’s Board of Directors since
2021, announced his resignation from the Board as of 31 October 2024.
Mr Poulsen was appointed to a new, time-consuming full-time position;
hence he decided to resign from the Board. Following his resignation,
the Board of Directors of Orthex consist of four members.
The Board of Directors is quorate when more than one-half of its
members are present. A decision by the Board of Directors is the opinion
supported by more than one-half of the members present at a meeting.
In the event of a tie, the Chair of the Board has the casting vote.
The Board of Directors convenes according to a pre-agreed schedule
normally from six to ten times a year and holds extra meetings when
deemed necessary. Meetings can also take place remotely by using
technical means or devices.
The Board evaluates its operations and working methods once a year.
Duties of the Board of Directors
The tasks and responsibilities of the Board of Directors of the company
are determined in the Companies Act as well as in other applicable
legislation. The Board of Directors has general authority to decide and
act in all matters not reserved for other corporate governing bodies by
law or under the provisions of the company’s Articles of Association.
The general task of the Board of Directors is to duly organise Orthex’s
management and operations. In all situations, the Board of Directors
must act in accordance with Orthex’s best interest.
The Board of Directors has a written charter that specifies its duties.
The duties of the Board of Directors include:
• approving reports of the Board of Directors, financial statements,
and interim reports
• seeing to the appropriate organisation of accounts and
financial administration
• preparing proposals for the general meeting of shareholders and
convening general meetings of shareholders
• approving and confirming strategic guidelines and long-term
strategic targets
• approving principles for risk management and internal control
• confirming annual budgets and operating plans
• appointing the CEO and deciding on the terms and conditions of
the CEO contract
• deciding on the company structure
• making significant business decisions, such as decisions on mergers
and acquisitions, significant contracts, investments, and financing
arrangements and
• deciding on other matters falling under the statutory responsibilities
of the Board of Directors.
Orthex’s Board of Directors has no committees, but the Board may
consider setting up potential committees in the future. As there are no
committees, the entire Board of Directors is responsible for discharging
the statutory duties of the audit committee.
Number of Board meetings and attendance rates
In 2024, the Board held 10 meetings. Some of these meetings were held
remotely. Attendance in the meetings is reported in the table below.
Number of Board meetings and members’ attendance 2024
Director
Attendance /
No of meetings Attendance rate
Sanna Suvanto-Harsaae (ch.) 10/10 100%
Markus Hellström 10/10 100%
Jyrki Mäki-Kala 10/10 100%
Jens-Peter Poulsen
1)
8/8 100%
Anette Rosengren 10/10 100%
1)
Resigned from the Board 31 Oct. 2024.
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Diversity of the Board of Directors
Orthex regards diversity as an important and natural approach in its
operations. Diversity shall be part of such cooperative and functional
Board of Directors which is able to respond to the requirements set
out in the company’s business and strategic objectives. Such Board
of Directors will also be able to support and challenge the company’s
operative management in a proactive and constructive manner.
The principles concerning the diversity of the Board of Directors are in
line with this premise.
When preparing the composition of the Board of Directors of Orthex,
attention is paid to the requirements set by the company’s Articles
of Association and the Corporate Governance Code, as well as to
the requirements set by the company’s operations and the premises of
diversity derived therefrom.
Significant factors concerning the composition of the Board of Directors
include mutually complementary variety of competences, education and
experience in different areas and professional fields and in management
and business operations existing in different development phases,
as well as the personal capabilities of each member, all of which
add to the diversity of the Board of Directors. Diversity is considered
not only from the aspect of gender but also from other factors
promoting the Board’s diversity, such as the age structure of the Board,
the members’ educational and professional background, their experience
relevant for the position, and personal characteristics. When preparing
the composition, it is also assessed how the members’ skills, education
and experience complement each other. The company’s long-term
needs are also considered.
The purpose of the diversity principles is to contribute to making sure
that the Board of Directors’ combined competence and experience and
the diversity of its composition are sufficiently aligned with Orthex’s
operational needs. With regard to gender structure, the objective is that
there is a balanced representation of different genders in the Board.
The Nordic Business Diversity Index examines the diversity of senior
leadership in Nordic listed companies. In 2024, Orthex was ranked
sixth among small-cap companies in the Helsinki Nasdaq category and
seventh in 2025. The 2025 Index analysed senior leadership in more
than 840 companies across Finland, Sweden, Denmark, Norway, and
Iceland. Leadership diversity was assessed across four key aspects:
gender, age, nationality, and education.
At year-end 2024, the company’s Board of Directors comprised
four members. Diversity of the Board of Directors with respect
to gender, nationality, age, tenure as well as educational and
professional background is described on this and on the next two
pages. Additional information for example on the Board members’
previous positions of trust is available on the corporate website at
Board of Directors - Orthex Group.
Male 50%
Female 50%
Gender
50-54 years 25%
55-60 years 50%
61-65 years 25%
Age
Finland 50%
Sweden 25%
Finland-Denmark 25%
Nationality
1-2 years 25%
2-3 years 50%
4-5 years 25%
Tenure
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Jyrki Mäki-Kala
Member of the Board of Directors since 2022
Born 1961
Finnish citizen
Master’s degree in economics
Independent of the company and its significant shareholders
Main occupation: Professional director
• Neste Corporation, Chief Financial Ocer, and member of Executive
Committee 2013–2022
• Kemira Oyj, Chief Financial Ocer 2008–2013
• Kemira Pulp & Paper, Vice President, and President positions 2005–2008
• Nokia Chemicals/Finnish Chemicals Oy, Director, and Vice President
positions 1988–2005
• Anora Group Plc, Vice-Chair of the Board of Directors since 2023 and member of
the Board and Chair of the Audit Committee since 2020
• Outokumpu Corporation, member of the Board of Directors and Chair of the Audit
Committee since 2023
Sanna Suvanto-Harsaae
Chair of the Board of Directors since 2021, member since 2020
Born 1966
Finnish and Danish citizen
Bachelor’s degree in economics
Independent of the company and its significant shareholders
Main occupation: Professional director
• Awardit AB, Chair of the Board of Directors since 2024
• Finnair Plc, Chair of the Board of Directors since 2023
• N’Age A/S, Chair of the Board of Directors since 2023
• Posti Group Corporation, Chair of the Board of Directors since 2020
• BoConcept A/S, Chair of the Board of Directors since 2016
• Nordic Pet Care Group A/S, Chair of the Board of Directors since 2012
• CEPOS (Center for Political Studies), member of the Board of
Directors since 2017
Markus Hellström
Member of the Board of Directors since 2022
Born 1974
Finnish citizen
Master’s degree in engineering
Independent of the company and its significant shareholders
Main occupation: Managing Director of Oy Snellman Ab since 2023
• Fazer Group, Executive Vice President, and Managing Director of
Fazer Confectionery Ltd. 2020–2023
• Fazer Bakeries Finland, Country Manager and Fazer Bakeries Ltd.,
Managing Director 2014–2020
• Fazer Bakeries Ltd., Vice President, Head of Operations,
Bakery Business Unit 2013–2014
• Fazer Bakeries Ltd., Business Development Director /
Business Controller 2007–2012
• Fazer Group, Sourcing Manager for Logistics Services 2004–2007
• Logico Solutions, Partner 2003–2004
• Candyking, Sweden, Logistics Manager 2000–2003
Members of the Board of Directors on 31 December 2024
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Anette Rosengren
Member of the Board of Directors since 2023
Born 1966
Swedish citizen
Bachelor’s degree in business administration
Independent of the company and its significant shareholders
Main occupation: Managing Director of Philip Morris /
Swedish Match Nordics since 2019
• Fazer Bakery (Sweden), Managing Director 2015–2018
• Lantmännen Doggy, CEO 2012–2015
• Lantmännen Group, SVP, Head of CF Communication, Sustainability and
R&D 2008–2012
• Kraft Foods, Director, Strategic Development and Marketing, Nordic 2005–2008
• Kraft Foods (Austria), VP Category Development, EEMA region 2004–2005
• Kraft Foods (USA), Director, Marketing Service, International 2002–2004
• Kraft Foods (Nordic), marketing and commercial roles 1995–2002
• Unilever, marketing and commercial roles 1989–1995
• Greenfood AB (publ), member of the Board of Directors since 2016
Shareholdings of the members of the Board of Directors
The shareholdings of the members of the Board of Directors and their
closely associated persons, as at the end of 2024, are presented in
the table below. None of the members of the Board of Directors nor their
closely associated persons or entities has any share-based rights in
Orthex or its subsidiaries.
Board of Directors’ shareholdings
Director Position
Number of shares on
31 Dec 2024
Sanna Suvanto-Harsaae chair 8,515
Markus Hellström member 3,640
1)
Jyrki Mäki-Kala member 2,010
Anette Rosengren member 2,000
Total 16,165
% of total shares 0.1%
Orthex total number of shares 17,758,854
1)
including shares of closely associated persons
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Shareholders’ Nomination Board
Orthex Corporation’s Extraordinary General Meeting on 5 March
2021 decided to establish a Shareholders’ Nomination Board.
The Nomination Board annually prepares proposals for the election
and remuneration of members of the Board of Directors to the Annual
General Meeting. It is also the duty of the Nomination Board to search for
new director candidates.
The Extraordinary General Meeting adopted a Charter of the Shareholders’
Nomination Board, which governs the appointment, composition, and
duties and responsibilities of the Nomination Board. The Charter is
available on the corporate website at Nomination Board - Orthex Group.
The Nomination Board has been established for the time being and can
only be dissolved by a decision of the general meeting. The term of office
of the members of the Nomination Board expires annually when a new
Nomination Board has been appointed.
The Nomination Board consists of the four largest shareholders of
the company as of 31 August or, if the company has more than four
shareholders, whose shareholding and voting rights in the company
are more than 10 per cent, the corresponding number of shareholders
or persons appointed by them. The Chair of the Board acts as an expert
member of the Nomination Board.
Based on the shareholder register of Orthex Corporation as of 31 August
2024, the shareholders represented in the Shareholders’ Nomination
Board are Conficap Oy, Alexander Rosenlew, Ilmarinen Mutual Pension
Insurance Company and Varma Mutual Pension Insurance Company.
The representatives of the four largest shareholders in the Nomination
Board include three men and one woman and they are:
• Erik Toivanen, CEO, Conficap Oy
• Alexander Rosenlew
• Annika Ekman, Head of Direct Equity Investments, Ilmarinen Mutual
Pension Insurance Company
• Erkka Kohonen, Senior Portfolio Manager, Varma Mutual Pension
Insurance Company
Erik Toivanen was elected to chair the Nomination Board, and its expert
member is Sanna Suvanto-Harsaae, Chair of Orthex’s Board of Directors.
In September 2024, changes occurred in the composition of
the Nomination Board. Conficap Oy appointed Erik Toivanen as its
representative, replacing Maarit Toivanen. Additionally, Varma Mutual
Pension Insurance Company became one of the company’s four largest
shareholders, replacing Thominvest Oy. Mats Söderström served as
Thominvest Oy’s representative on the Nomination Board.
The Nomination Board prepared the proposals for the composition and
remuneration of the Board of Directors and submitted them to the Board
of Directors of Orthex Corporation. The Board of Directors incorporated
these proposals into the notice of the meeting when convening Orthex
Annual General Meeting 2024.
Chief Executive Officer
Alexander Rosenlew has been the Chief Executive Officer of Orthex
Corporation since 2010. Mr Rosenlew holds master’s degrees both in
economics and in management.
The CEO is responsible for the operational management of Orthex in
accordance with the strategy approved by and instructions and orders
given by the Board of Directors. The CEO prepares matters to be decided
by the company’s Board of Directors, develops Orthex’s operations
together with the Board in accordance with the set objectives and
ensures the proper implementation of the Board’s decisions. The CEO
is also responsible for ensuring that Orthex complies with applicable
laws and regulations and that the company’s financial affairs have
been arranged in a reliable manner. The CEO chairs the meetings of
the Management Team.
Management Team
The role of Orthex’s Management Team is to manage Orthex’s operative
business as a whole. The members of the Management Team have
certain powers to act within their respective areas of responsibility,
and they have a duty to develop Orthex’s business in accordance with
the objectives set by the company’s Board of Directors and the CEO.
Orthex’s Board of Directors appoints the members of the Management
Team together with the CEO. The Management Team meets regularly on
a monthly basis or when deemed necessary.
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Changes took place in the operative management and in the composition
of the Management Team in 2024. Peter Ottosson, member of Orthex’s
Management Team and Operations Director of the Gnosjö factory, decided
to leave his position to assume a role with another employer. Mr Ottosson
continued in his position until the end of April.
Orthex announced in February that it is clarifying its operational
management towards increasing company-wide responsibilities
resulting in corresponding changes in the Management Team.
Tom Ståhlberg, member of the Management Team and Operations
Director of the Lohja factory, was appointed Chief Supply Officer (CSO)
assuming the overall responsibility for Orthex production, supply chain
and purchasing from the beginning of March. The change also removed
the need to replace Peter Ottosson in the Management Team.
In November, the company announced that it had agreed with
the Management Team member Alex Nielsen that he will leave
the company and his position as Sales Director responsible for Europe
and International Markets at the end of November. The recruitment
process for a new Sales Director was initiated immediately.
Members of Orthex’s Management Team, which consists of four men
including the CEO and two women, are presented on the following page.
Additional information on the Management Team members’ career
history and potential positions of trust is available on the corporate
website at Management Team - Orthex Group.
Shareholdings of the members of the Management Team
The shareholdings of the CEO and other members of the Management
Team (including their closely associated persons or entities), as at
the end of 2024, are presented in the table below.
The CEO or other members of the Management Team (or their closely
associated persons or entities) have no share-based rights in Orthex or
its subsidiaries.
Management’s shareholdings
Management Team
member Position
Number of shares
on 31 Dec 2024
Alexander Rosenlew CEO 2,047,726
Oy Rosaco Ab
1)
36,679
Saara Mäkelä Chief Financial Officer 141,833
Hanna Kukkonen
Chief Marketing and
Sustainability Officer 201,530
Tom Ståhlberg Chief Supply Officer 316,250
2)
Nicholas Ledin Sales Director, Nordic 62,475
Hans Cronquist
Operations Director,
Tingsryd 100,700
Total 2,907,193
% of total shares 16.4%
Orthex total number of shares 17,758,854
1)
controlled corporation
2)
including shares of closely associated persons
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Members of the Management Team on 31 December 2024
From left to right: Nicholas Ledin, Hans Cronquist, Hanna Kukkonen, Saara Mäkelä, Alexander Rosenlew, Tom Ståhlberg.
Alexander Rosenlew
Chief Executive Ocer
Management Team member since 2010
Employed by Orthex since 2010
Born 1971, Finnish citizen
Master’s degrees in economics and in management
Tom Ståhlberg
Chief Supply Ocer
Management Team member since 2012
Employed by Orthex since 2012
Born 1969, Finnish citizen
Master’s degree in industrial engineering and
management
Saara Mäkelä
Chief Financial Ocer, Head of IT
Management Team member since 2017
Employed by Orthex since 2017
Born 1976, Finnish citizen
Master’s degree in economics
Nicholas Ledin
Sales Director, Nordic
Management Team member since 2015
Employed by Orthex since 2001
Born 1970, Swedish citizen
High school graduate
Hanna Kukkonen
Chief Marketing and Sustainability Ocer,
Head of Product Development
Management Team member since 2012
Employed by Orthex since 2012
Born 1973, Finnish citizen
Master’s degree in economics
Hans Cronquist
Operations Director, Tingsryd
Management Team member since 2019
Employed by Orthex since 2019
Born 1970, Swedish citizen
Master’s degree in mechanical engineering
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Financial reporting process
Orthex compiles its financial reporting in accordance with
the International Financial Reporting Standards (IFRS), the Finnish
Securities Markets Act, the Finnish Accounting Act and the guidelines
and statements of the Finnish Accounting Board, while also complying
with the rules and regulations of the Financial Supervisory Authority
and the rules of Nasdaq Helsinki Ltd. The principles, instructions,
practices, and areas of responsibility in internal auditing and risk
management relating to the company’s financial reporting process are
aimed at ensuring that the company’s financial reporting is reliable and
that the financial statements have been prepared in accordance with
applicable laws, regulations, and the company’s operating principles.
Orthex’s financial reporting is supervised on two levels, in individual
companies and at the group level. On both levels, control measures and
analyses are carried out to ensure the validity of financial reporting.
The Board of Directors is responsible for overseeing the financial
reporting process.
Risk management
The purpose of Orthex’s risk management is to ensure the fulfilment of
customer promises, business profitability, ability to pay dividends, value
creation for shareholders, sustainable business, and business continuity.
To achieve this, Orthex strives to be aware of the uncertainties and risk
factors and opportunities associated with its objectives and operations,
and to identify, assess and manage risks and their consequences in
a consistent and effective manner.
Orthex has a risk management policy approved by the Board of Directors
that guides risk management in a way that supports the achievement of
the company’s objectives, protects personnel and the company’s various
assets, and ensures the financial sustainability of operations.
The responsibility for implementing risk management lies with
the Management Team. In addition, each employee must be aware of
and manage the risks associated with their own operating environment
and areas of responsibility. The company’s Board of Directors approves
the company’s risk management policy and monitors and assesses
the effectiveness of risk management.
Risk management principles
Risk management is a systematic activity designed to ensure
comprehensive and appropriate risk identification, assessment,
management, and control. It is an integral part of Orthex’s planning and
management process, decision making, day-to-day management of
operations, and monitoring and reporting procedures. Risks are assessed
and managed in a business-oriented and thorough manner. This means
that key risks are systematically identified, evaluated, managed,
monitored, and reported as part of the business.
Risk management process and reporting
Orthex prioritises risks according to the importance of the risk by
assessing the impact, likelihood, and level of risk management of
the risk materialisation. Risk management measures address the most
significant risks through cost-effective and appropriate policy options.
The Management Team regularly monitors the implementation of risk
management. If necessary, corrective measures will be taken.
The Management Team reports to the Board of Directors on risks and risk
management measures 2–3 times a year. The Board reviews the most
significant risks, measures to manage them and assesses the efficiency
and effectiveness of risk management. The Board reports on the most
significant risks and uncertainties in the annual Board of Directors’
reports and any material changes in these factors in the interim reports.
Additional information on the company’s risk management and on
the most significant risks and uncertainties is available in the Board of
Directors’ Report for the year 2024.
Internal control and audit
The Company’s Board of Directors has confirmed the operating
principles of internal control followed at Orthex, aiming to ensure
that the company’s objectives regarding, inter alia, Orthex’s strategy,
operations, practices, and financial reporting in particular are
met. The operating principles of internal control also contribute to
ensuring the company’s compliance with legislation and regulations.
Internal control is an essential part of business management and in
ensuring that the set objectives are met. Internal control is aimed to
be organised efficiently, so that any deviations from targets can be
detected as early as possible or that they can be prevented.
Orthex’s tools of internal control include internal policies, guidelines,
and instructions, together with manual controls as well as controls built
into systems. In addition, internal control is implemented in the form
of various monitoring reports and meetings. The Board of Directors of
Orthex is responsible for organising the internal control and oversees
the efficiency of internal control. The Management Team and the CEO
are responsible that functioning control procedures are in use.
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Orthex Group has not organised its internal audit as a separate function.
The Board assesses annually the need for internal audit procedures and
may use internal company resources or external service providers for
internal audit measures. Any outcomes of such procedures or measures
are reported to the Board of Directors.
Related party transactions
The Board of Directors has defined the principles for monitoring
and evaluating related party transactions. The company evaluates
and monitors transactions concluded between the company and its
related parties and ensures that any conflicts of interest are taken into
account appropriately in the decision-making process of the company.
The company keeps a list of related parties.
Approval of related party transactions concluded in the ordinary course of
business and on customary commercial terms is subject to the company’s
normal approval policies and processes. Approval of a related party
transaction that is not concluded in the ordinary course of business
or on customary terms is subject to the Board of Directors’ approval.
The company’s finance function monitors related party transactions as
a part of the company’s normal reporting and control procedures and
reports related party transactions to the Board of Directors.
The Board of Directors regularly evaluates the reported related party
transactions and the appropriateness of the company’s process and
policies on related party transactions. Information on transactions
concluded between the company and its related parties is disclosed,
as required, annually in the notes to the company’s consolidated
financial statements.
Material related party transactions are disclosed in accordance with
Chapter 8, section 1a of the Securities Markets Act.
Insider administration
Orthex has prepared insider guidelines approved by the company’s
Board of Directors, the purpose of which is to clarify and supplement
the operating methods of Orthex and its insiders and to serve as
a practical tool in handling insider matters. The Insider Guidelines define
clear operating instructions for, among other things, the management of
inside information, the maintenance of insider lists and the reporting of
transactions by persons subject to disclosure.
The Insider Guidelines apply to Orthex and persons in managerial
positions at Orthex, as well as to persons working for Orthex who
have access to inside information or who have otherwise become
aware of inside information. In addition, the Insider Guidelines apply
by agreement to persons otherwise acting on behalf of or for Orthex
in the performance of their duties through which they have access to
inside information.
Orthex’s insider administration compiles insider lists and keeps them up
to date in electronic form. In addition to individual insider lists (project-
specific insider list), Orthex may prepare a supplement for permanent
insiders (permanent insiders). Permanent insiders include only those
persons who, by virtue of their duties, are considered to have continuous
access to all inside information about Orthex. In the project-specific
insider list, Orthex will include those with inside information about
the project, including any external advisors and experts.
Insider lists are maintained by an electronic procedure prepared and / or
approved by the Financial Supervisory Authority or another appropriate
body that meets the applicable requirements. Insider lists are not public
and are not made available to the public.
Orthex will notify the insider in writing of his or her insider status,
the resulting obligations and any penalties for breach of those
obligations. The person entered in the project-specific insider list will be
notified of the termination of the project and the closure of the project-
specific insider list.
Persons discharging managerial responsibilities at Orthex and other
permanent insiders, as determined by Orthex, should schedule their
trading in Orthex financial instruments in a manner that does not
undermine confidence in the securities market.
Persons discharging managerial responsibilities at Orthex are
the members of the Board of Directors, the CEO, and the members
of the Management Team. Orthex maintains a list of the persons in
managerial position and the persons and entities closely associated with
them. Orthex does not maintain a list of permanent insiders.
The persons in managerial position at Orthex may not enter into
transactions with Orthex financial instruments for their own account or
for the account of a third party during a closed period beginning 30 days
prior to the disclosure date of Orthex’s financial statements release,
half-year financial report and the three- and nine-month interim reports
provided periodically by Orthex and ending 24 hours after publishing
the group’s interim report, half-year financial report or financial
statements release. In addition, Orthex recommends that persons
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discharging managerial responsibilities in the company do not engage in
transactions with the company’s financial instruments after the end of
each quarterly period and that they time their potential transactions to
the two-week-period, which begins on a date following the disclosure
date of the afore mentioned financial reports.
In accordance with Nasdaq Helsinki Ltd’s insider guidelines, Orthex
maintains a list of persons who participate in the preparation, auditing,
or publication of Orthex’s financial reports. Such persons may not carry
out transactions for their own account or on behalf of a third party
during a closed period.
Persons in managerial position at Orthex and their close associates shall
disclose to Orthex all transactions they make on their own account with
Orthex’s shares, debt instruments or derivatives or other related financial
instruments. The reporting obligation applies to transactions carried out
on or off any marketplace.
A person in managerial position or another person subject to a trading
restriction specified by the company should request an assessment of
the legality and regularity of the proposed transaction in the financial
instrument from the company’s insider administration. Notwithstanding
the assessment procedure, the person in a managerial position or
the other person mentioned above is responsible for ensuring that they
comply with the laws, regulations, and instructions.
Orthex has an internally operated whistleblowing channel
through which Orthex employees can anonymously report any
suspected violations of financial market rules and regulations.
Other stakeholders can report suspected infringements by sending
email to whistleblow@orthexgroup.com. Further information and
instructions for whistleblowing are available on the corporate website
Whistleblowing - Orthex Group.
External audit
According to the Articles of Association, the company has one
auditor. The auditor must be a firm of authorised public accountants.
The auditor is elected annually by the Annual General Meeting for
a term that expires at the end of the next Annual General Meeting
following the election. The task of the auditor is to audit the consolidated
financial statements, the financial statements of the parent
company, the accounting of the Group and the parent company and
the administration of the parent company. The company’s auditor
submits the auditor’s report to the shareholders in connection with
the annual financial statements and submits regular reports on its
findings to the Board of Directors.
At the Annual General Meeting 2024, Ernst & Young Oy, a firm of
Authorised Public Accountants, was elected the company’s auditor
with Mikko Rytilahti, Authorised Public Accountant, as the signing
audit partner. The audit fees paid to the auditor in 2024 totalled EUR
134 thousand (2023: 116 thousand). No fees were paid to the auditor for
non-audit services (2023: 3 thousand).
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REMUNERATION REPORT
2024
Orthex Corporation’s (”Orthex” or ”the company”) remuneration
report for the financial year 2024 has been prepared in accordance
with the Finnish Corporate Governance Code 2025 issued by
the Securities Market Association and other applicable regulations.
The Corporate Governance Code is available on the association’s
website (www.cgfinland.fi). The remuneration report is published
simultaneously with the corporate governance statement, the Board of
Directors’ report, the financial statements, and the sustainability report
on the corporate website at Investors - Orthex Group. The company’s
Board of Directors has prepared and approved this remuneration report,
and it will be presented to the Annual General Meeting to be held on
29 April 2025 for the shareholders’ advisory approval.
This remuneration report describes how Orthex has applied
the remuneration policy approved at the company’s Annual General
Meeting on 18 April 2023. The remuneration report describes
the remuneration and other financial benefits paid to the members
of the Board of Directors and the CEO during the financial year 2024.
In addition, the remuneration report compares the development
of the remuneration of the Board of Directors and the CEO with
the development of the employees’ average remuneration and
the company’s financial development over the past five years.
Introduction
The goal of Orthex’s remuneration schemes is to drive and reward
the achievement of the company’s strategic priorities and thereby
promote the company’s financial long-term success, competitiveness
and favourable development of shareholder value.
Effective and competitive remuneration is an essential tool for recruiting
capable management in the company. The remuneration schemes aim
to attract, motivate, and retain key employees, and engage them in long-
term performance to achieve personal and shared goals and increase
shareholder value.
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Summary of remuneration in 2024
In 2024, the actual remuneration of the members of the Board of
Directors and the CEO followed the remuneration policy. Orthex did
not deviate from the remuneration policy in the remuneration of
the members of the Board of Directors and the CEO and did not exercise
its right to recover the remuneration during 2024.
During the financial year 2024, the members of the Board of Directors
were paid fixed monthly fees. The amount of the fees paid depended
on the member’s role in the Board: Chair of the Board – member of
the Board. As decided at the 2024 AGM, the monthly fees remained
the same. The fees paid are disclosed under section “Remuneration of
the Board of Directors”.
The total remuneration paid to the CEO during the financial year
2024 consisted of fixed base salary with fringe benefits and variable
short-term incentive paid for the performance in 2023. The CEO’s
earned short-term incentive for 2023 was 50% of the annual
maximum short-term incentive. The CEO’s total remuneration in
the financial year 2024 amounted to EUR 569,216, of which variable
remuneration accounted for 22.1 per cent. Orthex has no long-term
share-based or other incentive schemes in place, which partly explains
the share of variable remuneration of the CEO’s total remuneration.
The salaries and incentives paid to the CEO are disclosed under section
“Remuneration of the CEO”.
Development of the Group’s financial performance and remuneration
The following table shows the development of the total remuneration of the Board of Directors and the CEO compared to the development of Orthex
employees’ average remuneration and the company’s financial development over the past five years.
Development of total remuneration and financial development over the past five years
EUR thousand 2024 2023 2022 2021 2020
Net sales 89,734 85,945 84,048 88,694 75,865
Adjusted EBITA 10,234 10,918 5,490 10,996 12,933
Board of Directors
1)
140 144 144 126 71
CEO
1)
569 437 527 478 367
Employees' average remuneration
2)
60 59 55 58 55
1)
The remuneration of the Board of Directors and the CEO was adjusted in connection with the company's IPO in March 2021.
2)
Employees’ average remuneration is total employee remuneration divided by the average number of personnel during the year.
2020
2021
2022
2023
2024
75.9
88.7
84.0
85.9
89.7
Net sales, EUR million
2020
2021
2022
2023
2024
12.9
11.0
5.5
10.9
10.2
Adjusted EBITA, EUR million
2020
2021
2022
2023
2024
17.0
%
12.4
%
6.5
%
12.7
%
11.4
%
Adjusted EBITA margin, %
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Remuneration of the Board of Directors
The Annual General Meeting decides on the remuneration to be
paid to the members of the Board of Directors. The proposal for
the remuneration of the members of the Board of Directors for
the 2024 Annual General Meeting was prepared by the company’s
Shareholders’ Nomination Board.
In accordance with the decision of the Annual General Meeting in
2024, the remuneration of the Board of Directors remained the same
and the Chair of the Board of Directors was paid a monthly fee of EUR
4,000 and other members of the Board of Directors a monthly fee of
EUR 2,000.
Board fees were paid monthly in cash. No meeting fees were paid for
Board meetings. The remuneration of the members of the Board of
Directors does not involve pension contributions and the members of
the Board of Directors are not covered by Orthex’s incentive schemes.
Reasonable travel and other expenses related to the Board work were
reimbursed in accordance with the company’s travel rules.
The remuneration paid to the members of the Board of Directors in
2024 is shown in the table on the right. The members of the Board of
Directors did not receive any other financial benefits.
Remuneration of the Board of Directors paid in 2024
EUR Monthly fee Total
Sanna Suvanto-Harsaae 4,000 48,000
Markus Hellström 2,000 24,000
Jyrki Mäki-Kala 2,000 24,000
Jens-Peter Poulsen
1)
2,000 20,000
Anette Rosengren 2,000 24,000
Total 140,000
1)
Resigned from the Board 31 Oct. 2024.
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Remuneration of the CEO
The Board of Directors decides on the remuneration of the CEO. The CEO
of Orthex is Alexander Rosenlew since 2010. The CEO’s remuneration
consists of a fixed base salary with fringe benefits and a variable short-
term incentive. In 2024, Orthex did not have any long-term share-based
or other incentive schemes. The purpose of rewarding the CEO is to
guide the implementation of the company’s strategic goals and thereby
promote the company’s long-term financial success, competitiveness,
and favourable development of shareholder value. The CEO’s significant
shareholding (11.7%) in the company strengthens the alignment of
the CEO’s interests with those of shareholders.
Under Orthex’s variable short-term incentive scheme, the CEO may
be granted annual performance-based incentives in addition to his
fixed annual salary. The aim of the incentive scheme is to encourage
the CEO to commit to the company and motivate him to achieve
the best possible result. In addition, the incentive scheme is intended
to encourage the CEO to work in a way that supports Orthex’s strategy,
growth, and competitiveness.
Incentives under annually commencing short-term incentive plans
are discretionary and tied to Orthex’s results of operations and
the achievement of relevant performance metrics and/or individual
performance targets. The terms and objectives of the incentive plan,
including performance metrics and weights, are determined, and
approved annually in advance by the company’s Board of Directors.
In 2024, the metrics and weights of the CEO’s incentive plan were as
follows: profit performance 50%, net sales 35%, sustainability 15%.
During the financial year 2024, the maximum amount of the CEO’s
incentive corresponded to 7 months’ gross base salary.
The CEO is entitled to a statutory pension. The CEO’s pension and
retirement age are determined on the basis of the Employees’ Pensions
Act. The CEO does not have any supplementary pension insurance paid
by the company.
The salaries, incentives and fringe benefits paid to the CEO in
2024 are shown in the table below. The incentive paid in 2024 is
based on the 2023 short-term incentive plan. The CEO’s earned
short-term incentive for 2023 was 50% of the annual maximum
short-term incentive.
Remuneration of the CEO paid in 2024
EUR 2024 2023
Fixed based salary and mobile phone
benefit 443,468 425,527
Incentives 125,748 11,900
Other financial benefits - -
Total 569,216 437,427
Share of fixed pay of total remuneration 77.9% 97.3%
Share of variable pay of total
remuneration 22.1% 2.7%
The CEO participated in the company’s short-term incentive plan
2024. The CEO’s earned short-term incentive for 2024 was 14.3% of
the annual maximum short-term incentive. The performance-based
incentive for the year 2024 will be paid in April 2025.
Remuneration of the CEO not yet paid but due based on the year 2024
Short-term incentive scheme EUR
Remuneration due based on the achievement of STI
performance targets in 2024 35,928
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CONTENTS
Board of Directors’ report 3
KEY FIGURES 18
Financial Statements 25
CONSOLIDATED FINANCIAL STATEMENTS, IFRS 26
Consolidated income statement 26
Consolidated statement of other comprehensive income 26
Consolidated statement of financial position 27
Consolidated statement of changes in equity 28
Consolidated statement of cash flows 29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 30
1. Accounting principles for the consolidated financial statements 30
2. Net sales 33
3. Other operating income 34
4. Operating expenses 34
5. Employee benefits 34
6. Financial income and expenses 37
7. Income taxes 37
8. Intangible assets 40
9. Property, plant and equipment 42
10. Leases 43
11. Financial assets and financial liabilities 45
12. Fair value hierarchy 54
13. Inventories 55
14. Trade and other receivables 55
15. Trade and other payables 56
16. Share capital and reserves 56
17. Related party disclosures 57
18. Collaterals, commitments and contingent assets and liabilities 57
19. Subsequent events 58
PARENT COMPANY FINANCIAL STATEMENTS, FAS 59
Parent company income statement 59
Parent company balance sheet 60
Parent company cash flow statement 61
Notes to the parent company financial statements 62
SIGNATURES OF THE BOARD OF DIRECTORS’ REPORT
AND FINANCIAL STATEMENTS 66
AUDITOR’S REPORT 67
INDEPENDENT AUDITOR’S REPORT ON THE ESEF CONSOLIDATED
FINANCIAL STATEMENTS OF ORTHEX OYJ 72
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Part of the Board of Directors’ report
Board of Directors’ report
Orthex is a leading Nordic houseware company. Orthex designs,
produces, markets, and sells household products with a mission to make
consumers’ everyday life easier. Orthex offers a broad assortment of
household products in three product categories: Storage, Kitchen, and
Home & Garden.
Orthex strives to create functional, durable, and high-quality household
products. Orthex aims to be the industry forerunner in sustainability.
Orthex markets and sells its products under three main consumer
brands: SmartStore
TM
, GastroMax
TM
and Orthex
TM
. In addition, it sells
kitchen products under the Kökskungen
TM
brand. Orthex’s geographic
markets include the Nordics, the Rest of Europe, and the Rest of
the world. Orthex is headquartered in Espoo, Finland, and it currently has
eight local sales organisations located in the Nordics, Germany, France,
the United Kingdom, and the Benelux.
Key figures
EUR million 2024 2023 2022
Invoiced sales 92.3 88.0 85.8
Net sales 89.7 85.9 84.0
Gross margin 25.7 24.3 17.9
Gross margin, % 28.6% 28.3% 21.3%
EBITDA 14.3 14.9 9.2
EBITDA margin, % 15.9% 17.3% 10.9%
Adjusted EBITDA 14.6 14.9 9.3
Adjusted EBITDA margin, % 16.3% 17.4% 11.1%
EBITA 9.8 10.9 5.3
EBITA margin, % 11.0% 12.6% 6.3%
Adjusted EBITA 10.2 10.9 5.5
Adjusted EBITA margin, % 11.4% 12.7% 6.5%
Operating profit 9.8 10.8 5.2
Operating profit margin, % 11.0% 12.5% 6.2%
Net cash flows from operating activities 11.8 10.2 6.2
Net debt / Adjusted EBITDA 1.4x 1.5x 2.8x
Adjusted return on capital employed (ROCE), % 29.7% 31.8% 15.9%
Equity ratio, % 41.9% 40.2% 36.3%
Earnings per share, basic (EUR) 0.34 0.39 0.12
FTEs 288 281 295
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Long-term financial targets
As long-term financial targets the company has adopted to an average
annual organic net sales growth to exceed 5 per cent at the Group
level and to exceed 10 per cent outside the Nordics (growth in local
currencies), adjusted EBITA margin (adjusted for items affecting
comparability) to exceed 18 per cent over time and net debt to adjusted
EBITDA ratio to stay below 2.5x. Leverage may temporarily exceed
the target range (for example, in conjunction with acquisitions).
The company aims to distribute a stable and over time increasing
dividend with a pay-out of at least 50 per cent of net profit, in total,
on a biannual basis.
Market overview
Orthex operates in the storage, kitchenware, and home and garden
products market, which has historically been stable and resilient
throughout different economic cycles. The market for household
products in Europe is fragmented. Although the market is competitive,
fragmentation lowers the threshold to increase market share and find
attractive niches.
The major megatrends supporting Orthex’s business include
urbanisation and the related increase in the number of households and
decrease in living space per household. More people live in single-person
households and family sizes are decreasing. According to Eurostat,
the number of single-person households in the EU increased by 21%
from 2013 to 2023. Small spaces drive demand for functional storage
solutions and household products that allow efficient use of the living
space. Despite households being inhabited by fewer people, the need
for necessities, such as home storage, food storage and kitchen utensils,
remains nearly the same per household.
Consumption patterns supporting Orthex’s business are mainly related
to how people spend their time at home. One of these is the interest
in cooking at home, which continues trending as a healthy, and less
expensive way of eating. As per 6Wresearch
1)
, European kitchenware
market is projected to grow at a CAGR of 5% between 2025 and 2031.
Consumers are increasingly concerned about climate change and
biodiversity loss and want to do their part in the fight against them
by buying sustainable products, avoiding food waste, and sorting
and recycling their waste. Tightening legislation also supports this
development. However, only a few households have enough pre-
installed waste recycling and sorting solutions, which creates a demand
for these and for sorting and recycling solutions that can also function
as interior design elements. According to Mordor Intelligence
2)
, European
home organisers and storage market is expected to grow at a CAGR of
over 4% between the years 2025 and 2030.
Another consumption pattern supporting Orthex’s business is
the demand for houseplants and interest in gardening. Houseplants
bring fresh air, colour, and cosiness into homes. Their use as design
elements is becoming commonplace, particularly in dense urban areas
that have limited green spaces. In addition, there is increasing popularity
for gardening herbs, plants, and vegetables indoors and outdoors. These
trends are driving demand for plant care products.
The uncertainties related to the general development of the global
economy and geopolitical tensions influence consumer confidence,
purchasing power and behaviour and, as a result, can have an impact on
Orthex’s business. As a result of the prevailing consumption uncertainty,
many retailers are carefully monitoring their inventory levels. Orthex
product price points are relatively low, and the products are bought to
solve real needs. Therefore, Orthex believes that its product categories
will be less affected by careful consumer purchasing behaviour
than other, more expensive consumer goods categories. Orthex will
follow the market trends and will strive to navigate through changing
conditions as efficiently as possible.
Group performance
Net sales and profitability
In 2024, the Group’s Net sales increased by 4.4% to EUR 89.7 million
(85.9). Invoiced sales amounted to EUR 92.3 million (88.0). The increase
in constant currency net sales was 4.3% compared to 2023.
The year 2024 was characterized by low consumer confidence and
customer carefulness, leading to a slower than normal business climate.
Despite this, the company’s full-year net sales were the highest ever
so far. Successful launches of novelties, campaigns, strong in-store
activities as well as new product and customer listings contributed to
the net sales growth.
1)
Prominent companies in Europe Kitchenware Market with Size
2)
Europe Home Organizers & Storage Market Size & Share Analysis -
Industry Research Report - Growth Trends
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EBITA was 9.8 million (10.9) during 2024 and decreased by 9.4%.
Adjusted EBITA decreased by 6.3% to EUR 10.2 million (10.9). Adjusted
EBITA margin decreased to 11.4% (12.7). Operating profit was EUR
9.8 million (10.8). Items affecting comparability totalled EUR 0.4 million
(0.1). When considering the one-time energy price support received in
Sweden in the previous year (EUR 0.7 million), the comparable EBITA
increased by EUR 0.1 million.
The lower profitability is attributed to increased production cost
planned for higher sales, enforcement of commercial organisation,
commercial activities, and salary inflation. In addition, the profitability
was negatively impacted by higher credit loss provisions. Raw material
fluctuation stabilized during the year.
Orthex’s financial income and expenses during the financial year
consisted of EUR 2.1 million net expenses (2.2). The decrease in net
financial expenses is mainly due to lower interest expenses related to
bank loans.
Profit before taxes was EUR 7.8 million (8.5) and profit for the period
was EUR 6.1 million (6.9).
Development by geography
Orthex’s core market area by geography is the Nordics, where
the Group’s invoiced sales in 2024 amounted to EUR 71.1 million
(68.7). Invoiced sales in the Nordics totalled 77.1% (78.1) of the Group’s
total invoiced sales. Invoiced sales in the Rest of Europe grew to
EUR 20.3 million (18.5). Sales in the Rest of the world increased to
EUR 0.9 million (0.8).
Invoiced sales increased steadily in the Nordic core markets during
the first half of the year due to successful campaigns and strong
in-store activities. Careful consumer behaviour affected the retailers’
buying volumes especially in Sweden in the latter part of the year. In
January–December, invoiced sales in the Rest of Europe grew in line
with the long-term strategic target by solid 10.0%.
Orthex’s products are sold in more than 40 countries, and export to non-
Nordic countries grew by 1.0 percentage point and accounted for 22.9%
(21.9) of the Group’s invoiced sales at the end of the period.
Invoiced sales by geography
EUR million 2024 2023 2022
Nordics 71.1 68.7 68.5
Rest of Europe 20.3 18.5 15.9
Rest of the world 0.9 0.8 1.5
Total 92.3 88.0 85.8
Development by product category
Orthex combined the previous Home & Yard and Plant care categories
into a new reporting category called Home & Garden from the beginning
of 2024. The Home & Garden category includes all the same items as
the previous two categories. Now Orthex has three reporting categories
which are Storage, Kitchen, and Home & Garden.
Orthex’s largest category is Storage with invoiced sales totalling
EUR 63.6 million (60.0) during 2024. The Storage category grew driven
by new customer and product listings, and successful new product
launches and campaigns. The Storage category represents most of
the business outside of the Nordic countries and the positive sales
development in the Rest of Europe took the overall Storage category
growth to 5.9% compared to the previous year.
Orthex has a strong position in the Nordics in food storage and
kitchenware products and the Group’s invoiced sales in the Kitchen
category increased to EUR 19.3 million (18.6). Widening customer
distribution and the successful rebranding of SmartStore
TM
food storage
products is visible in the Kitchen category’s sales growth.
Invoiced sales in the Home & Garden category amounted to
EUR 9.4 million (9.4).
Invoiced sales by product category
EUR million 2024 2023 2022
Storage 63.6 60.0 55.1
Kitchen 19.3 18.6 19.8
Home & Garden 9.4 9.4 10.9
Total 92.3 88.0 85.8
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Financial position and cash flow
At the end of December, the balance sheet totalled EUR 85.6 million
(85.6), of which equity accounted for EUR 35.8 million (34.4).
The Group’s net debt was EUR 20.3 million (22.3) at the end of
the review period. Non-current interest-bearing liabilities were
EUR 26.3 million (29.6) and Orthex’s total interest-bearing liabilities
were EUR 30.7 million (33.9). Interest-bearing liabilities include loans
from credit institutions, pension liabilities and lease liabilities.
During the period January−December 2024, the Group’s net cash
flows from operating activities were EUR 11.8 million (10.2) and cash
conversion was 70.9% (82.6). The energy price compensation received
in Sweden (EUR 0.7 million) was paid to the company in June 2023.
Interest paid during the period totalled EUR 1.8 million (1.9). Cash and
cash equivalents amounted to EUR 10.5 million (11.6) at the end of
the review period.
Net debt/adjusted EBITDA was 1.4 (1.5). Orthex’s long-term target is to
keep Net debt/adj. EBITDA below 2.5x.
At the end of the review period, the Group’s Equity ratio was 41.9%
(40.2). Adjusted return on capital employed (ROCE) was 29.7% (31.8) and
return on equity (ROE) 17.4% (21.5).
Investments, research, and product
development
Orthex’s investments during 2024 amounted to EUR 4.3 million (2.6) and
were mainly related to moulds for new products and capacity increases.
The increase in investments is due to the timing of completion of
the investments made in 2023 to the beginning of the year 2024.
Orthex is involved in three large research projects for the development
of recycled and renewable plastics. Orthex is researching in
collaboration with Fortum and other partners whether recycled plastic
could be used in products suitable for food contact. Since 2023, Orthex
is participating in a large cooperation project of seven years to promote
the circular economy of plastics. Orthex’s goal is to find new potential,
environmentally friendly plastic raw materials, test raw materials in
production and as finished products, and then bring new products to
the market. Orthex is also involved in the Reusify project that started in
2024 and aims to reduce single-use packaging.
These investments in research support Orthex’s 2030 carbon neutrality
target and the target to increase the use of recycled and renewable
raw materials.
Research and product development expenses have not been capitalized.
Personnel
In 2024, the average number of personnel employed by Orthex was
288 (281). In 2024, wages and salaries amounted to EUR 19.0 million,
in 2023 to EUR 17.9 million, and in 2022 to EUR 18.3 million. Group
headcount at the end of the financial year was 312 (318), of which
51% (52) worked in production, 21% (21) in warehouse, 17% (18) in sales,
6% (6) in administration and 5% (4) in marketing.
Group structure
There were no changes in the Group structure during 2024.
Governance
The company’s governance complies with the company’s Articles of
Association and Corporate Governance Principles as well as rules and
regulations applicable to Finnish listed companies such as the Finnish
Limited Liability Companies Act and Securities Markets Act, and rules
and regulations of Nasdaq Helsinki Ltd. The company also adheres
to the Finnish Corporate Governance Code 2025 (”CG Code”) issued
by the Securities Market Association. The CG Code is available on
the association’s website (www.cgfinland.fi).
Further information on the company’s governance principles is available
in the Corporate Governance Statement 2024 published simultaneously
with the Board of Directors’ report and the Financial Statements. As
the company has no audit committee, the company’s Board of Directors
has reviewed the Corporate Governance Statement.
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Decisions of the Annual General Meeting
Orthex Corporation’s Annual General Meeting was held in Espoo on
9 April 2024. The general meeting adopted the financial statements and
discharged the members of the Board of Directors and the CEO from
liability for the financial year 2023. The general meeting also approved
the 2023 remuneration report for governing bodies.
The general meeting approved the Board of Directors’ proposal to
pay a dividend of EUR 0.21 per share. The dividend was paid in two
instalments. The first instalment of EUR 0.11 per share was paid on
18 April 2024. The second instalment of EUR 0.10 per share was paid on
9 October 2024.
The general meeting resolved that Sanna Suvanto-Harsaae, Markus
Hellström, Jyrki Mäki-Kala, Jens-Peter Poulsen and Anette Rosengren
be re-elected to the Board, all for a term of office ending at the end of
the next Annual General Meeting. Sanna Suvanto-Harsaae continues
to chair the Board. The general meeting resolved that the remuneration
of the members of the Board of Directors remain the same and that
the Chair of the Board of Directors be paid a monthly fee of EUR
4,000 and other members of the Board of Directors a monthly fee of
EUR 2,000.
Ernst & Young Oy, a firm of Authorised Public Accountants, was re-
elected the company’s auditor with APA Mikko Rytilahti continuing as
the signing audit partner.
The general meeting authorised the Board of Directors to issue or
convey a total maximum of 1,600,000 new shares and special rights
entitling to shares in one or several issues. The Board of Directors
was also authorised to decide on the acquisition of a maximum
of 175,000 company shares. The authorisations are valid until
30 June 2025.
Further information about the decisions of the general meeting can
be found in the AGM documents, which are available on the corporate
website at Annual General Meeting 2024 - Orthex Group.
Changes in the Management Team
During the year, changes took place in the company’s operational
responsibilities and the Management Team. Orthex clarified its
operational management towards increasing company-wide
responsibilities and appointed Tom Ståhlberg Chief Supply Officer
(CSO) assuming the overall responsibility for Orthex production, supply
chain and purchasing from the beginning of March. In addition, Peter
Ottosson, member of the company’s Management Team and Operations
Director of the Gnosjö factory, left the company at the end of April,
and Alex Nielsen, member of the company’s Management Team
and Sales Director, Europe and International Markets at the end of
November. These changes are elaborated in further detail in the stock
exchange releases issued by the company in January, February, and
November 2024 and they are available on the corporate website at
Media - Orthex Group.
Change in the Board of Directors
Jens-Peter Poulsen, member of Orthex’s Board of Directors since
2021 announced in October that he had decided to resign from the Board
as of 31 October 2024 since he had been appointed to a new, time-
consuming full-time position. Following his resignation, the Board of
Directors of Orthex will consist of four members until the next Annual
General Meeting.
Board of Directors
On 31 December 2024, the company’s Board of Directors consisted
of the following members: Sanna Suvanto-Harsaae (Chair), Markus
Hellström, Jyrki Mäki-Kala, and Anette Rosengren.
Management’s ownership and remuneration
On 31 December 2024, the members of the Board of Directors, the CEO,
and other members of the Management Team, including their closely
associated persons and entities, owned a total of 2,923,358 shares in
the company, corresponding to 16.5% of the total number of shares.
Information on the shareholdings of the members of the Board of
Directors, the CEO, and other members of the Management Team
is disclosed in the Corporate Governance Statement 2024 and on
the corporate website.
Information on the remuneration of the members of the Board of
Directors, the CEO, and other members of the Management Team is
disclosed in the notes to the financial statements. The remuneration of
the members of the Board of Directors and the CEO is also described in
the Remuneration Report 2024.
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Composition of Shareholders’ Nomination Board
The Extraordinary General Meeting on 5 March 2021 decided to establish
a Shareholders’ Nomination Board for the company and the Nomination
Board’s charter was approved. The Nomination Board consists of
the four largest registered shareholders of the company as of 31 August.
According to the shareholders’ register, the company’s four largest
shareholders on 31 August 2024 were Conficap Oy, Alexander Rosenlew,
Ilmarinen Mutual Pension Insurance Company, and Varma Mutual
Pension Insurance Company.
On 11 September 2024, the company announced that these shareholders
have appointed their representatives to the Shareholders’ Nomination
Board, the composition of which is as follows:
• Erik Toivanen, CEO of Conficap Oy
• Alexander Rosenlew
• Annika Ekman, Head of Direct Equity Investments of Ilmarinen Mutual
Pension Insurance Company
• Erkka Kohonen, Senior Portfolio Manager of Varma Mutual Pension
Insurance Company
The Nomination Board has elected Erik Toivanen as its chair. The Chair of
Orthex’s Board of Directors, Sanna Suvanto-Harsaae, acts as an expert
member of the Nomination Board.
More information on the Nomination Board is available on the corporate
website at Nomination Board - Orthex Group.
Shares and shareholders
Orthex’s shares are listed on the main list of Nasdaq Helsinki Ltd since
March 2021.
At the end of the reporting period, Orthex Corporation’s registered share
capital amounted to EUR 80,000 and the registered number of issued
shares was 17,758,854. All shares carry one vote and have equal voting
rights. There are no voting restrictions associated with the shares.
The shares hold no nominal value. The trading code of the shares is
“ORTHEX”, and the ISIN code FI4000480504.
Trading volume during the period was EUR 13.1 million (7.3) and
2,164,530 shares (1,497,211). The highest price of the share was EUR 7.30
(5.76) and the lowest was EUR 4.89 (3.70). The closing price of the share
at the end of December was EUR 5.00 (5.40). The year-end market
value of the share capital stood at EUR 88.8 million (95.9). The company
did not have any treasury shares at the end of the review period.
At year-end, the number of registered shareholders including nominee
registers was 14,429 (15,587). The nominee-registered shares
accounted for 11.6% of the total number of shares and amounted to
2,052,890 shares. At the end of the period, the ten largest registered
shareholders possessed a total of 52.6% (50.0) of Orthex’s shares
and votes.
Authorisations, option, and share-based
incentive schemes
During 2024, Orthex did not have any share option or share-based
incentive schemes.
Orthex’s Board of Directors is authorised to issue or convey a total
maximum of 1,600,000 shares and special rights entitling to shares in
one or several issues. The Board of Directors is also authorised to acquire
a maximum of 175,000 shares in the company. The authorisations
will be valid until 30 June 2025. The Board of Directors has no other
authorisations.
Major shareholders 31 Dec 2024
*
Shareholder
No. of
shares
% of
shares
Conficap Oy 2,486,240 14.00
Rosenlew Alexander 2,047,726 11.53
Ilmarinen Mutual Pension Insurance Company 1,061,000 5.97
Varma Mutual Pension Insurance Company 831,106 4.68
Thominvest Oy 761,000 4.29
OP-Finland Small Cap 641,591 3.61
Aktia Capital Mutual Fund 521,274 2.94
Oy Julius Tallberg Ab 352,571 1.99
Fondita Nordic Micro Cap Investment Fund 328,500 1.85
Ståhlberg Tom Christian 314,000 1.77
Total 9,345,008 52.6
*)
Source: Euroclear Finland
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Sector distribution 31 Dec 2024
*
Sector
No. of
shares
% of
shares
Households 5,952,179 33.52
Private companies 4,974,904 28.01
Financial and insurance institutions 2,080,836 11.72
Public sector organisations 2,379,032 13.40
Non-profit institutions 294,742 1.66
Foreigners 24,271 0.14
Nominee registered 2,052,890 11.56
Total 17,758,854 100
*)
Source: Euroclear Finland
Share distribution 31 Dec 2024
*
Number of shares Number of shareholders % of shareholders Number of shares % of shares
1–100 9,591 66.47 517,053 2.91
101–1,000 4,301 29.81 1,364,728 7.69
1,001–10,000 461 3.19 1,117,347 6.29
10,001–100,000 53 0.37 1,553,902 8.75
100,001–1,000,000 19 0.13 5,790,608 32.61
> 1,000,000 4 0.03 7,415,216 41.76
Total 14,429 100 17,758,854 100
Nominee registered 8 0.06 2,052,890 11.56
*)
Source: Euroclear Finland
Under the provisions of the Securities Market Act, changes in holdings
must be disclosed when the holding reaches, exceeds, or falls below
5, 10, 15, 20, 25, 30, 50 or 66,7 (2/3) per cent of the voting rights or
the number of shares in the company. The stock exchange releases
on notifications of changes in holdings (flaggings) are available on
the corporate website at https:/investors.orthexgroup.com/.
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Sustainability
Sustainability is a core element in implementing Orthex’s growth
strategy and key objectives as we strive to be the number one brand in
storage products in Europe, and to strengthen our position as a leading
houseware company in the Nordics. Sustainability is a key factor in all
decision making at Orthex and a significant driver of our development
and investment agenda. For example, a prerequisite for all new product
investments is that the material should be either recycled or renewable.
Orthex does not make single-use products. On the contrary, Orthex’s
products are made for long-term use and are fully recyclable in all our
markets at the end of their life cycle.
Orthex aims to be the industry forerunner in sustainability by offering
timelessly designed, high-quality, safe, and long-lasting products,
reducing the carbon footprint of its operations and products, and
sourcing more and more of its raw materials from recycled and
renewable materials. Orthex’s main sustainability target is to aim
towards carbon neutral production by 2030. The Science Based Targets
initiative (SBTi) has approved Orthex’s near-term science-based
emissions reduction target, which means that Orthex’s climate targets
are aligned with the target to keep global warming below 1.5°C in
accordance with the Paris Agreement.
Orthex has identified priority sustainability topics in environmental,
social and governance (ESG) areas. For each topic, the company has
defined key performance indicators and targets. More information on
the company’s sustainability strategy, set targets, and achieved results
in 2024 can be found in the Annual and Sustainability Report’s dedicated
section on sustainability.
Sustainability actions in 2024
Orthex’s active sustainability work continued during 2024.
Circular Economy Green Deal
Orthex announced in December that it has joined the Circular Economy
Green Deal. Orthex’s commitment relates to action areas “Increasing
the value of recycled materials and bio-based raw materials in
production” and “Expanding the availability of circular economy products
in the market”. Orthex commits to replace in its production virgin raw
materials with recycled and renewable raw materials and to introduce
new plastic products made from recycled or renewable materials to
the market.
The Circular Economy Green Deal is a voluntary strategic commitment
shared by companies, municipalities, regions, sectoral organisations, and
the Finnish government in which the participating organisations commit
to reducing their use of natural resources and setting effective goals,
and to taking actions that promote a low-carbon circular economy.
The objectives include curbing the consumption of non-renewable
natural resources and doubling the circular economy rate of resources
and materials by 2035.
Recognitions
In January, Orthex was ranked in 6th place among the Nasdaq Helsinki
small-cap companies in the Nordic Business Diversity Index examining
the diversity of senior leadership in Nordic listed companies.
Orthex reached the highest Leadership level with a score A- in
the Climate Disclosure Project’s (CDP) climate change program which
assesses climate change related risk management and practices.
Outcome of the 2023 CDP reporting was disclosed in February 2024.
Outcome of the 2024 CDP reporting is still pending.
EcoVadis disclosed its 2023 sustainability rating outcome in July placing
Orthex at the bronze level. EcoVadis rates businesses’ sustainability
based on their environmental impact, labour and human rights
standards, ethics, and procurement practices.
In addition, Orthex was awarded the Nasdaq ESG Transparency Partner
badge for 2023 ESG reporting for a third year in a row.
Audits
Orthex strives to minimise its impact on the environment and climate
and invests in high-quality and safety of its products. All our three
factories in Finland and Sweden have already since 2002 been
ISO 14001 and 9001 certified for their environmental and quality
management systems. In 2021, Orthex’s operations were awarded
the ISO 45001 certification for occupational health and safety
management system.
During the first months of the year, Orthex’s operations were evaluated
based on the principles of the SMETA sustainability audit. SMETA is
the world’s most widely used audit, and the abbreviation stands for
Sedex Members Ethical Trade Audit. The SMETA audit was conducted
at Orthex’s Tingsryd factory for the second time and at the Lohja
factory for the first time. The level of Orthex’s operations were assessed
in terms of occupational health and safety, working conditions,
environmental performance, and business practices. The audit
performed by an external party effectively maps the level of operations
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Part of the Board of Directors’ report
and shows potential areas for improvement and ensures that we
maintain the highest standards in all aspects of our operations.
In March, Orthex’s Lohja factory was audited and the ISCC PLUS
certificate was renewed. Corresponding audit was carried out in
the Gnosjö factory in May resulting in renewal of its ISCC PLUS
certificate as well. Usage of ISCC PLUS certified renewable raw
materials produced by applying the mass balance approach supports
Orthex’s long-term carbon neutrality target, and the target to increase
the share of sustainable raw materials in production.
Research investments
Orthex is involved in three large research projects focusing on
the development of recycled and renewable plastics, because the supply
of high-quality recycled materials suitable for different purposes is
still weak. In addition, the company has recruited a product engineer
specialising in the research and testing of new raw materials in practice.
Transparent plastic and food contact with plastic are still difficult
or even impossible to achieve with recycled plastic. To tackle this
challenge that is crucial for Orthex’s carbon neutrality target, Orthex is
researching in collaboration with Fortum and other partners whether
recycled plastic could be used in products suitable for food contact.
The research results have been promising but the start of industrial
scale use will require, among others, further improvements in the sorting
technology. In 2024, the research project focused on the development
of this technology, improvement of recycled plastic’s traceability, and
closer review of the legal restrictions.
Since 2023, Orthex is also participating in a large cooperation project of
seven years to promote the circular economy of plastics. Orthex’s goal
is to find new potential, environmentally friendly plastic raw materials,
test raw materials in production and as finished products, and then bring
new products to the market.
Orthex is also involved in the Reusify project that started in 2024 and
aims to reduce single-use packaging. The project includes several
different stakeholders as cooperation across the entire value chain
is a prerequisite for a circular economy. The goal of the project is
to increase the reuse of packaging by generating new knowledge
and expertise on how the reuse of single-use packaging could be
implemented and what kind of a system it would require.
These significant investments in research support Orthex’s 2030 carbon
neutrality target and the target to increase the use of recycled and
renewable raw materials. These research projects are elaborated
in further detail in the sustainability section of the Annual and
Sustainability Report 2024.
Investments in novelties
Orthex also invests in novelties on a continuous basis and a prerequisite
for all new product investments is that the material should be either
recycled or renewable. In 2024, we launched several novelties, including
a practical food waste bin SmartStore™ Collect Biowaste, a modern
range of SmartStore
TM
Essence storage baskets and a stackable sorting
solution SmartStore
TM
Collect Stack-it. All these products are made
from recycled plastic, marking further steps towards our sustainability
goals and showing Orthex’s ongoing commitment to increase the use of
recycled and renewable materials in production.
A comprehensive description of Orthex’s sustainable business practices
is included in the sustainability section of the Annual and Sustainability
Report 2024.
Risks and uncertainties
Risk management
The purpose of Orthex’s risk management is to ensure the fulfilment of
customer promises, business profitability, ability to pay dividends, value
creation for shareholders, responsible business, and business continuity.
To achieve this, Orthex strives to be aware of the uncertainties and risk
factors and opportunities associated with its objectives and operations,
and to identify, assess and manage risks and their consequences in
a consistent and effective manner.
Orthex’s risk management policy guides risk management in a way
that supports the achievement of the company’s objectives, protects
personnel and the company’s various assets, and ensures the financial
sustainability of operations.
The responsibility for implementing risk management lies with
the Management Team. In addition, each employee must be aware of
and manage the risks associated with their own operating environment
and areas of responsibility. The company’s Board of Directors approves
the company’s risk management policy and monitors and assesses
the effectiveness of risk management.
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Risk management principles
Risk management is a systematic activity designed to ensure
comprehensive and appropriate risk identification, assessment,
management, and control. It is an integral part of Orthex’s planning and
management process, decision making, day-to-day management of
operations, and monitoring and reporting procedures. Risks are assessed
and managed in a business-oriented and thorough manner. This
means that key risks, including ESG risks, are systematically identified,
evaluated, managed, monitored, and reported as part of the business.
Risk management process and reporting
Orthex prioritises risks according to the importance of the risk by
assessing the impact, likelihood, and level of risk management of
the risk materialisation. Risk management measures address the most
significant risks through cost-effective and appropriate policy options.
The Management Team regularly monitors the implementation of risk
management. If necessary, corrective measures will be taken.
The Management Team reports to the Board of Directors on risks
and risk management measures 2-3 times a year. The Board reviews
the most significant risks, measures to manage them and assesses
the efficiency and effectiveness of risk management.
Risk classification
Risk refers to an event or circumstance that may hinder or prevent
the achievement of targets or may result in missing of business
opportunities. Orthex classifies risks in three groups:
• Strategic risks
• Operational risks
• Financial risks
Strategic risks refer to uncertainty that is primarily related to changes
in the operating environment and the ability to utilize or anticipate
these changes. These changes may relate, for example, to the general
economic situation, customer consumption behaviour, competition,
legislation, or technological developments. When assessing strategic
risks and opportunities, the goal is to find the business opportunities
that are used to achieve the goals with manageable risks, while avoiding
those that present unreasonably high risks.
Operational risk means a circumstance or event that can prevent or
hinder the achievement of objectives or cause harm to people, property,
business, information, or the environment. Operational risks are avoided
or reduced, but in such a way, that the costs of risk avoidance are
proportionate to the magnitude of the risk.
Financial risks are those related to Orthex’s financial position. These
include e.g., availability and cost of finance, net working capital and
liquidity, and foreign exchange rate fluctuations. Orthex’s financial
risk management is described in the notes to the consolidated
financial statements.
Non-economic impacts are also considered when assessing
risks. Reputation risk arises if Orthex’s operations conflict with
the expectations of various stakeholders, such as customers, suppliers,
regulators, or shareholders. Responsible practices are key to preventing
reputational risks. Reputation risks are managed through timely and
adequate communication.
Main strategic, operational, and financial risks
Risks relating to the macroeconomic environment
Cost inflation, interest rate levels, and geopolitical tensions impact
the global economic trend as well as the development of consumers’
purchasing behaviour and, as a result, can have an impact on Orthex’s
business. Russia’s war against Ukraine or the conflict in the Middle East
do not directly affect Orthex’s business as Orthex does not sell products
to Russia, Belarus, Ukraine, or Israel or source raw materials from
these countries. However, geopolitical tensions cause disturbances in
global supply chains and contribute to the general economic situation
and consumers’ purchasing power and behaviour. These factors may
affect the company’s sales and profitability as well as operational
reliability and efficiency. The Group has hedged part of its interest-
bearing liabilities against rising interest rates with interest derivatives.
In addition, some of the electricity contracts have been purchased at
fixed prices due to the strong volatility of market electricity.
Risks relating to changes in competitive environment
Orthex operates in a competitive and fragmented storage, kitchenware,
and home and garden products market. Even though the markets in
which Orthex operates are fragmented, Orthex’s competitors may
consolidate, establish consortiums, or aim to expand their operations
in the future, which may increase competition in Orthex’s markets,
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including in the Nordics. Any significant consolidation could create
competitors with more financial, technical, marketing, or other
resources that would enable them to assign more resources to the sale
of household goods than currently, which, in turn, could have an adverse
effect on Orthex’s business and growth opportunities.
Risks relating to sourcing of raw materials
Plastic polymers are the largest group of raw materials used in
the production of Orthex’s products. Raw material prices are typically
negotiated annually based on estimated volumes for the year ahead.
Orthex does not hedge against raw material price fluctuations.
Accordingly, Orthex’s profitability is particularly exposed to fluctuations
in virgin plastic polymer (produced directly from crude oil and never
been used or processed before) prices, which have historically
fluctuated to a certain extent in line with crude oil price fluctuations.
Orthex also uses recycled and renewable materials in the production of
its products and sells products entirely sourced from external suppliers,
as well as products that are partly produced in-house and partly consist
of externally sourced components. The prices of these raw materials
and traded goods have not historically been subject to the same level of
fluctuation as virgin plastic polymers. However, there has been shortage
on the market because of higher demand and this can lead to higher
prices also in recycled and renewable materials. If Orthex is unable
to offset price increases in raw materials and traded goods, whether
through price increases or otherwise, or should there be significant
disruptions in their availability, this could have a material adverse effect
on Orthex’s profitability and/or margins.
Risks relating to quality of products
Thanks to its own production, Orthex can control the quality of its
products and the health and environmental aspects of production and
products. Although Orthex has several quality control measures in place,
there can be no assurances that such measures will always be adequate
to detect potential product quality defects.
Any significant quality issue may require a considerable amount of
management resources. Responding to detected or suspected quality
issues, for example, by proactively adjusting production processes or
by switching the materials or components used, usually gives rise to
costs that may be significant. Such events may also lead to product
recalls, product liability or warranty claims, and contractual liabilities
towards Orthex’s customers and/or end-customers, or to third-party
claims. Product quality issues or product recalls may also harm
Orthex’s reputation and lead to loss of customers. Furthermore, Orthex’s
insurance coverage does not cover claims based on quality issues and
product liability claims concerning Orthex’s products. Realisation of
the aforementioned risks may have a material adverse effect on Orthex’s
business, results of operations, financial position, and/or reputation.
Risks relating to changes in customer preferences
Several megatrends and consumer preferences have been driving
the demand in the home storage, food storage and kitchen utensils
markets in recent years, including population growth, urbanisation,
changes in the form of housing, sustainability, and design preferences
among the end-customers of Orthex’s products. Changes in consumer
preferences could relate to, among others, improved functionality, higher
quality, innovative solutions, new technologies, attractive design, and
new and more advanced materials.
If Orthex is unable to successfully anticipate and identify changing
consumer preferences, Orthex could lose its market share in the Nordics,
its sales development may be slower than expected, and it may be
forced to rely on price reductions to dispose of excess or slow-moving
inventory or to make significant investments in the future to remain
competitive. Any of these could have a material adverse effect on
Orthex’s business, financial position and/or results of operations.
Risks relating to production facilities and
warehouse operations
As Orthex’s production largely relies on its own production facilities,
events that would cause significant disruptions in or the suspension
of Orthex’s production facilities could materially affect Orthex’s ability
to deliver its products to its customers in a timely manner. Orthex’s
production facilities may be damaged or destroyed, or they may be
closed or the equipment on the premises may be damaged due to, for
example, fire, accident, natural disaster, or equivalent events beyond
Orthex’s control. Similarly, Orthex’s warehouses could be subject to
similar events, which could destroy all or part of Orthex’s inventory.
Such events or incidents could result in material disruptions and delays
in Orthex’s production and deliveries and in Orthex not necessarily
being able to fulfil its obligations to its customers. If Orthex were
unable to locate alternative production facilities, transfer production to
Orthex’s other production facilities or to repair the damaged premises or
equipment in a timely and cost-effective manner, such conditions could
have a material adverse effect on Orthex’s business, financial position
and/or results of operations.
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Risks relating to IT infrastructure and systems
Difficulties in maintaining and updating IT infrastructure, deficiencies
in IT systems, and external cyber-attacks related to IT systems may
have an adverse effect on Orthex. Orthex uses information technology
infrastructure, applications and software products that cover essential
aspects of its business, such as production, inventory management,
logistics, human resources, finances, and other administrative
systems. Orthex’s IT systems and infrastructure may be vulnerable
to cybersecurity risks, including cyber-attacks, direct or indirect, such
as computer viruses and worms, phishing attacks, and penetrating or
bypassing security measures in order to gain unauthorised access to
Orthex’s information networks and systems. Exploitation of possible
weaknesses in Orthex’s security controls could disrupt its business and
cause leakage of sensitive information, theft of intellectual property and
damage to Orthex’s reputation.
Risks relating to management and employees
The success of Orthex’s business and strategy depends on Orthex’s
ability to attract and retain key management and production personnel.
The loss of management or key personnel may result in the loss of
expertise or, in certain circumstances, the transfer of expertise to
Orthex’s competitors. In addition, Orthex’s production processes require
qualified, skilled production workers (particularly with specialized
training and knowledge of plastic).
In accordance with its current strategy, in addition to strengthening
its market position in the Nordics, Orthex will focus on accelerating
its growth in the international markets outside the Nordics, which
imposes new demands to Orthex’s management and personnel. Orthex’s
geographical expansion also requires the recruitment of additional
personnel. If Orthex is not successful in recruiting and retaining qualified
key personnel, this may have an adverse effect on Orthex’s business.
Risks relating to regulation and compliance
With operations in several countries, Orthex is subject to a variety
of laws and regulations, and potential violations of such laws and
regulations could have an adverse effect on Orthex. Orthex must
comply with laws and regulations enacted at both the national and EU
level concerning its operations in relation to matters including health,
safety, consumer protection and marketing, general product safety,
environment, employment, competition, company law, data protection,
international trade, and taxation in all countries in which Orthex pursues
business. Failure to comply with applicable laws and regulations
may cause Orthex financial losses, undermine Orthex’s business
opportunities and harm Orthex’s reputation.
Risks relating to taxation
Orthex’s tax burden depends on certain tax laws and regulations and
their application and interpretation (for example, with regard to transfer
pricing rules). Changes in tax laws and regulations or their interpretation
and application may increase Orthex’s tax costs to a significant degree,
which could have an adverse effect on Orthex’s financial position and/or
results of operations. In addition, Orthex may at times be subject to tax
audits conducted by national tax authorities. Tax audits or other auditing
measures carried out by tax or other authorities, such as customs
officials, could result in an imposition of additional taxes (such as income
taxes, taxes at source and property, capital, transfer, and value-added
taxes), which could lead to an increase in Orthex’s tax liability.
In 2022, Orthex Corporation was subject to a tax audit regarding
the financial years 2020 and 2021. The tax audit report included
subsequent taxes and tax increases amounting to a total of EUR
0.3 million relating to the VAT deductibility of IPO related costs.
The company disagreed with the interpretation made in the tax audit
and filed a claim for adjustment to its taxation with the Assessment
Adjustment Board of the Finnish tax authority. However, the company
was requested to pay additional taxes in accordance with
the interpretations set out in the tax audit report and the company paid
the subsequent taxes and tax increases in June 2022. Orthex did not
recognise the subsequent taxes and tax increases in the consolidated
statement of comprehensive income. The Assessment Adjustment
Board issued its decision on the company’s claim for adjustment in
February 2025 and the company’s claim was partly approved. As
a result of the decision, EUR 0.2 million was recognised as items
affecting comparability under fixed costs in the 2024 financial
statements of Orthex Corporation.
Risks relating to currency fluctuations
Orthex has operations in several countries, so the company is exposed
to transaction and translation risk related mainly to the Swedish krona,
the Norwegian krone, the Danish krone, the British pound sterling and
the U.S. dollar. The Group is typically not hedged against currency
risk, except for certain large purchases under the Kökskungen brand.
Fluctuations in exchange rates have had and may continue to have
a material adverse effect on Orthex’s results of operations.
Risks relating to liquidity
Orthex currently finances its business and investments with
operational cash flows and debt financing. Sufficient cash flow is
required for Orthex’s business and maintaining its ability to service
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its debt. There can be no assurance that Orthex will be able to secure
financing to a sufficient extent and on competitive terms to finance
its business and investments. Changes in the macroeconomic
environment or in the general financial markets may have an adverse
effect on the availability, price, and other terms of financing. Changes
in the availability of equity and debt financing and in the terms of
the financing available may influence Orthex’s ability to invest in
developing and growing its business in the future. If Orthex is not able to
obtain financing on competitive terms or at all, this may have a material
adverse effect on Orthex’s business, financial position and/or results
of operations.
ESG risks
Orthex assesses ESG risks as a part of its systematic risk management
process and has identified the following most significant ESG risks:
unfavourable changes in environmental and other related legislation,
product safety related issues, and employee health and safety related
risks. To mitigate these risks, Orthex actively monitors applicable
legislation, uses accredited test laboratories for food contact testing, and
systematic health and safety process has been implemented through
the work environment committee. Failure to comply with environmental
legislation, product safety regulations or laws and regulations
applicable to employee health and safety may cause Orthex financial
losses, undermine Orthex’s business opportunities and harm Orthex’s
reputation.
Board of Directors’ proposal for the use
of the profit shown on the balance
sheet and resolution on the distribution
of dividends
According to the financial statements to be adopted for the financial
year ended 31 December 2024, the parent company’s distributable
funds amount to EUR 21,204,617.74, including the profit for the period of
EUR 5,946,289.82.
The Board of Directors proposes to the general meeting that based on
the financial statements to be adopted for the financial year ended on
31 December 2024, shareholders be paid a dividend of EUR 0.22 per
share totalling approximately EUR 3.9 million based on the number of
registered shares in the company at the time of the proposal.
The dividend is proposed to be paid in two instalments as follows:
• The first instalment of the dividend amounting to EUR 0.11 per share
will be paid to a shareholder who is registered in the company’s
shareholder register held by Euroclear Finland Oy on the record date of
the first instalment of the dividend payment 2 May 2025. The Board of
Directors proposes that the first instalment of the dividend be paid on
9 May 2025.
• The second instalment of the dividend amounting to EUR 0.11 per
share will be paid in October 2025 to a shareholder who is registered
in the company’s shareholder register held by Euroclear Finland Oy
on the record date of the second instalment of the dividend payment
1 October 2025. The Board of Directors proposes that the second
instalment of the dividend be paid on 8 October 2025. The Board of
Directors further proposes that the Board be authorised to decide, if
necessary, on a new record date and date of payment for the second
instalment of the dividend should the rules of Euroclear Finland
Oy or statutes governing the Finnish book-entry system change or
otherwise so require.
There have been no significant changes in the parent company’s
financial position after the financial year-end. The company’s liquidity
is good, and the Board of Directors deems that the company’s solvency
will not be jeopardised by the proposed dividend distribution.
Events after the financial year
On 17 January 2025, Orthex disclosed the Shareholders’ Nomination
Board’s proposals to the Annual General Meeting 2025 regarding
the composition and remuneration of the Board of Directors.
The Shareholders’ Nomination Board proposes that the Board of
Directors would consist of five members and that Sanna Suvanto-
Harsaae, Markus Hellström, Jyrki Mäki-Kala, and Anette Rosengren be
re-elected to the Board and that Tuomas Yrjölä be elected as a new
member to the Board, all for a term of office ending at the end of
the Annual General Meeting 2026.
All director nominees have consented to their election and confirmed
that they are independent of the company and its significant
shareholders. Background information on the director nominees is
available on the corporate website Board of Directors - Orthex Group.
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As regards the remuneration, the Shareholders’ Nomination Board
proposes that the monthly remuneration of the members of the Board of
Directors remains the same and that the Chair of the Board of Directors
be paid a monthly fee of EUR 4,000 and other members of the Board
of Directors a monthly fee of EUR 2,000. The Nomination Board further
proposes an introduction of meeting-specific fees so that a meeting
fee of EUR 250 is paid for a meeting held in the Board member’s
country of residence or as a remote meeting, and a meeting fee of EUR
500 for a meeting held elsewhere than in the Board member’s country
of residence and that reasonable travel and other expenses related
to the Board work be reimbursed in accordance with the company’s
travel rules.
Market outlook
Global volatility, cost inflation, and consumer and customer uncertainty
will affect the business environment. Orthex is closely following
the financial performance of its retail customers as the prolonged
consumer carefulness and changes in shopper trends can lead to fast
changes in the customers’ financial capabilities or even discontinuation
of business.
To ensure effective implementation and adoption of its strategy, Orthex
is constantly evaluating consumer trends, customer demands and
market conditions. The strategy is designed to deliver the specified long-
term financial targets. In addition, an overall focus on sustainability is at
the heart of the business development.
In 2024, raw material prices stabilised at approximately the previous
year’s level. The price level in 2025 will be affected by the development
of the demand for plastic raw materials, changes in sanctions against
Russia, the potential escalation of the crisis in the Middle East, and
logistic challenges. The European Central Bank’s forecast says that
the euro area economy is set to continue its gradual recovery although
recent indicators suggest a weakening of growth in the short term.
Orthex will closely monitor the general economic and market trends
and the development of consumer confidence and purchasing power
and will strive to navigate through changing conditions as efficiently
as possible.
International distribution build-up is progressing according to plan,
delivering a growing base of customers and point of sales throughout
Europe. Orthex has continued strengthening its international sales
organisation which is expected to support positive sales development in
the Rest of Europe in 2025.
In 2025, Orthex will celebrate the 30th anniversary of the iconic
SmartStore
TM
Classic storage box range, which provides the company
with an excellent opportunity to raise the international awareness of
the SmartStore
TM
brand and highlight the premium quality of the Classic
storage boxes.
Russia’s war against Ukraine or the crisis in the Middle East do not
directly affect Orthex’s business as Orthex does not sell products to
Russia, Belarus, Ukraine, or Israel or source raw materials from these
countries. However, geopolitical tensions cause disturbances in global
supply chains and contribute to the general economic trend and
consumers’ purchasing power and behaviour, and, as a result, can have
an impact on Orthex’s business in 2025, especially in the important
Nordics market.
Espoo, 11 March 2025
Board of Directors
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Key figures
EUR thousand 2024 2023 2022
Net sales 89,734 85,945 84,048
Net sales growth, % 4.4% 2.3% -5.2%
Constant currency net sales growth, % 4.3% 5.3% -3.8%
Invoiced sales 92,291 87,989 85,794
Invoiced sales growth, % 4.9% 2.6% -5.3%
Gross margin 25,704 24,320 17,919
Gross margin, % 28.6% 28.3% 21.3%
EBITDA 14,257 14,892 9,154
EBITDA margin, % 15.9% 17.3% 10.9%
EBITA 9,845 10,863 5,317
EBITA margin, % 11.0% 12.6% 6.3%
Operating profit 9,833 10,750 5,191
Operating profit margin, % 11.0% 12.5% 6.2%
Items affecting comparability 389 55 173
Adjusted gross margin 25,704 24,320 17,919
Adjusted gross margin, % 28.6% 28.3% 21.3%
Adjusted EBITDA 14,645 14,947 9,328
Adjusted EBITDA margin, % 16.3% 17.4% 11.1%
Adjusted EBITA 10,234 10,918 5,490
Adjusted EBITA margin, % 11.4% 12.7% 6.5%
Adjusted operating profit 10,222 10,805 5,364
Adjusted operating profit margin, % 11.4% 12.6% 6.4%
Earnings per share, basic (and diluted), EUR 0.34 0.39 0.12
FTEs 288 281 295
Personnel expenses 19,017 17,921 18,300
EUR thousand 2024 2023 2022
Key cash flows indicators
Net cash flows from operating activities 11,805 10,170 6,177
Operating free cash flows 10,391 12,353 5,774
Cash conversion, % 70.9% 82.6% 61.9%
Investments in tangible and intangible assets -4,255 -2,594 -3,553
Financial position key figures
Net debt 20,286 22,317 26,028
Net debt / adjusted EBITDA last 12 months 1.4x 1.5x 2.8x
Net working capital 13,090 14,266 13,670
Capital employed excluding goodwill 34,356 34,462 33,487
Return on capital employed (ROCE), % 28.6% 31.6% 15.4%
Adjusted return on capital employed (ROCE), % 29.7% 31.8% 15.9%
Equity ratio, % 41.9% 40.2% 36.3%
Return on equity, % 17.4% 21.5% 6.9%
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Share-related key figures
EUR 2024 2023 2022
Earnings per share, basic (and diluted) 0.34 0.39 0.12
Equity per share 2.02 1.94 1.67
Effective dividend yield, % 4.4% 3.9% 2.4%
Price per earnings 18.66 13.91 39.19
Closing share price on the last day of trading 5.00 5.40 4.68
Highest 7.30 5.76 11.29
Lowest 4.89 3.70 3.82
Market value of shares at the end of period, EUR million 88.8 95.9 83.1
Number of shares traded, pcs 2,164,530 1,497,211 5,653,412
Of weighted average number of shares, % 12.2% 8.4% 31.8%
Number of shares outstanding at the end of the period, pcs 17,758,854 17,758,854 17,758,854
Weighted average number of shares outstanding, pcs 17,758,854 17,758,854 17,758,854
Dividend payout per share 0.22
*)
0.21 0.11
Dividend payout per share of result, % 63.9% 54.1% 92.1%
*)
Board of Directors’ proposal
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EUR thousand 2024 2023 2022
Net sales growth, %
Net sales 89,734 85,945 84,048
Net sales growth, % 4.4% 2.3% -5.2%
Constant currency net sales growth, %
Net sales 89,734 85,945 84,048
FX rate adjustment - 83 -2,412
Constant currency net sales 89,734 86,029 81,636
Constant currency net sales growth, % 4.3% 5.3% -3.8%
Invoiced sales
Net sales 89,734 85,945 84,048
Discounts and bonuses 4,004 3,715 3,182
Other sales and refunds -1,447 -1,672 -1,437
Invoiced sales 92,291 87,989 85,794
Invoiced sales growth, % 4.9% 2.6% -5.3%
Gross Margin
Net sales 89,734 85,945 84,048
Cost of sales -64,030 -61,625 -66,129
Gross Margin 25,704 24,320 17,919
Gross Margin (%) 28.6% 28.3% 21.3%
EUR thousand 2024 2023 2022
EBITDA
Operating profit 9,833 10,750 5,191
Depreciation, amortisation, and impairment 4,423 4,142 3,964
EBITDA 14,257 14,892 9,154
EBITDA margin (%) 15.9% 17.3% 10.9%
EBITA
Operating profit 9,833 10,750 5,191
Amortisation and impairment 12 113 126
EBITA 9,845 10,863 5,317
EBITA margin (%) 11.0% 12.6% 6.3%
Operating profit
Operating profit 9,833 10,750 5,191
Operating profit margin, % 11.0% 12.5% 6.2%
Items affecting comparability / adjustments (EBITDA)
Restructuring related expenses 182 - -
Other items affecting comparability - 55 173
Tax audit 2022 207 - -
Items affecting comparability / adjustments (EBITDA) 389 55 173
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EUR thousand 2024 2023 2022
Adjusted Gross Margin
Gross Margin 25,704 24,320 17,919
Adjusted Gross Margin 25,704 24,320 17,919
Adjusted Gross Margin (%) 28.6% 28.3% 21.3%
Adjusted EBITDA
Operating profit 9,833 10,750 5,191
Depreciation, amortisation and impairment 4,423 4,142 3,964
Adjustments (EBITDA) 389 55 173
Adj. EBITDA 14,645 14,947 9,328
Adj. EBITDA margin (%) 16.3% 17.4% 11.1%
Adjusted EBITA
Operating profit 9,833 10,750 5,191
Amortisation and impairment 12 113 126
Adjustments (EBITA) 389 55 173
Adj. EBITA 10,234 10,918 5,490
Adj. EBITA margin (%) 11.4% 12.7% 6.5%
Adjusted operating profit
Operating profit 9,833 10,750 5,191
Adjustments 389 55 173
Adj. operating profit 10,222 10,805 5,364
Adj. operating profit margin (%) 11.4% 12.6% 6.4%
EUR thousand 2024 2023 2022
Earnings per share, basic (and diluted), EUR
Profit for the period 6,110 6,892 2,121
Average number of shares 17,759 17,759 17,759
Earnings per share, basic (and diluted), EUR 0.34 0.39 0.12
Operating free cash flows
Adj. EBITDA 14,645 14,947 9,328
Investments in tangible and intangible assets -4,255 -2,594 -3,553
Operating free cash flows 10,391 12,353 5,774
Cash conversion, %
Operating free cash flows 10,391 12,353 5,774
Adj. EBITDA 14,645 14,947 9,328
Cash conversion, % 70.9% 82.6% 61.9%
Net debt
Total interest-bearing liabilities 30,749 33,885 36,312
Cash and cash equivalents -10,463 -11,568 -10,284
Net debt 20,286 22,317 26,028
Net debt/ Adj. EBITDA
Net debt 20,286 22,317 26,028
Adj. EBITDA. 12 months 14,645 14,947 9,328
Net debt/ Adj. EBITDA 1.4x 1.5x 2.8x
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EUR thousand 2024 2023 2022
Net working capital
Inventories 12,491 12,088 14,283
Trade and other receivables 17,960 17,866 13,387
Trade and other payables -17,362 -15,687 -14,000
Net working capital 13,090 14,266 13,670
Capital employed excluding goodwill
Total Equity 35,828 34,436 29,711
Net debt 20,286 22,317 26,028
Goodwill -21,758 -22,292 -22,252
Capital employed excluding goodwill 34,356 34,462 33,487
Return on capital employed (ROCE), %
Operating profit 9,833 10,750 5,191
Average capital employed excluding goodwill 34,409 33,975 33,746
Return on capital employed (ROCE), % 28.6% 31.6% 15.4%
Adjusted return on capital employed (ROCE), %
Adjusted operating profit 10,222 10,805 5,364
Average capital employed excluding goodwill 34,409 33,975 33,746
Adjusted return on capital employed (ROCE), % 29.7% 31.8% 15.9%
EUR thousand 2024 2023 2022
Equity ratio (%)
Total equity 35,828 34,436 29,711
Total assets 85,557 85,568 81,837
Equity ratio (%) 41.9% 40.2% 36.3%
Return on equity, %
Profit for the period 6,110 6,892 2,121
Total equity (average for the first and last day of the period) 35,132 32,074 30,754
Return on equity, % 17.4% 21.5% 6.9%
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Part of the Board of Directors’ report
Calculation of key figures
IFRS key figures
Earnings per share,
basic (and diluted)
= Profit for the period attributable to
the owners of the parent / Weighted
average number of shares outstanding
Alternative performance measures
Orthex presents alternative performance measures as additional
information to financial measures presented in the consolidated income
statement, consolidated balance sheet and consolidated statement
of cash flows prepared in accordance with IFRS. In Orthex’s view,
alternative performance measures provide significant additional
information on Orthex’s results of operations, financial position and cash
flows to management, investors, analysts, and other stakeholders.
Alternative performance measures should not be viewed in isolation
or as a substitute to the IFRS financial measures. All companies
do not calculate alternative performance measures in a uniform
way, and therefore Orthex’s alternative performance measures may
not be comparable with similarly named measures presented by
other companies.
Key figure Formula
Constant currency net sales growth, % Net sales growth calculated by using previous year’s revenue translated at average foreign exchange
rates for the current year
Invoiced sales Product sales to resale customers excluding off invoice discounts, customer bonuses and
cash discounts
Invoiced sales growth, % Increase in invoiced sales
Gross margin Net sales less Cost of sales
Gross margin, % Gross margin / Net sales
EBITDA Operating profit before depreciation, amortisation, and impairment
EBITDA margin, % EBITDA / Net sales
EBITA Operating profit before amortisation and impairment
EBITA margin, % EBITA / Net sales
Operating profit Operating profit
Operating profit margin, % Operating profit / Net sales
Items affecting comparability Material items outside ordinary course of business including restructuring costs, net gains, or losses
from sale of business operations or other non-current assets, strategic development projects, external
advisory costs related to capital reorganisation, impairment charges on non-current assets incurred
in connection with restructurings, compensation for damages and transaction costs related to
business acquisitions
Adjusted gross margin Gross margin excluding items affecting comparability
Adjusted gross margin, % Adjusted gross margin / Net sales
Adjusted EBITDA EBITDA excluding items affecting comparability
Adjusted EBITDA margin, % Adjusted EBITDA / Net sales
Adjusted EBITA EBITA excluding items affecting comparability
Adjusted EBITA margin, % Adjusted EBITA / Net sales
Adjusted operating profit Operating profit excluding items affecting comparability
Adjusted operating profit margin, % Adjusted operating profit / Net sales
Net cash flows from operating activities Net cash from operating activities as presented in the consolidated statement of cash flows
Operating free cash flows Adjusted EBITDA less investments in tangible and intangible assets
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Key figure Formula
Cash conversion, % Operating free cash flows / Adjusted EBITDA
Investments in tangible and intangible assets Investments in tangible and intangible assets as presented in the consolidated statement of
cash flows
Net debt Current and non-current interest-bearing liabilities less cash and cash equivalents
Net debt / adjusted EBITDA last 12 months Net debt / Adjusted EBITDA
Net working capital Inventories, trade, and other receivables less trade and other
payables
Capital employed excluding goodwill Total equity and net debt and less goodwill
Return on capital employed (ROCE), % Operating profit / Average capital employed excluding goodwill
Adjusted return on capital employed (ROCE), % Adjusted operating profit / Average capital employed excluding goodwill
Equity ratio, % Total equity / Total assets
Return on equity, % Result for the period / Total equity (average for the first and last day of the period)
Share-related key figures
Equity per share, EUR Total equity attributable to the equity holders of the parent / Number of outstanding shares at the end
of the financial year
Effective dividend yield, % Dividend/share / Price of share at the end of the accounting period
Price per earnings, EUR Closing price of share at the end of the financial year / Earnings per share
Market value of shares at the end of period Number of shares at the end of accounting period x Price of the share at the end of accounting period
Dividend payout per share of result, % (Dividend/share) / Earnings per share
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Part of the financial statements
Consolidated Financial Statements, IFRS
Consolidated income statement
EUR thousand Note Jan 1 - Dec 31 2024 Jan 1 - Dec 31 2023
Net sales 2 89,734 85,945
Cost of sales -64,030 -61,625
Gross margin 25,704 24,320
Other operating income 3 19 811
Selling and marketing expenses -9,982 -9,237
Administrative expenses -5,907 -5,143
Operating profit 9,833 10,750
Financial income and expenses 6 -2,066 -2,231
Profit before taxes 7,768 8,520
Income taxes 7 -1,658 -1,628
Profit for the period 6,110 6,892
Profit for the period attributable to:
Equity holders of the parent 6,110 6,892
Earnings per share for profit attributable to the
equity holders of the parent:
Earnings per share, basic (and diluted), EUR 0.34 0.39
Consolidated statement of comprehensive income
EUR thousand Note Jan 1 - Dec 31 2024 Jan 1 - Dec 31 2023
Profit for the period 6,110 6,892
Other comprehensive income
Items that may be reclassified subsequently to
profit or loss:
Translation differences -948 85
Items that will not be reclassified to profit or loss:
Remeasurement gains (+) / losses (-) from defined
benefit plans 5 -40 -298
Other comprehensive income for the period, net of tax -988 -213
Total comprehensive income for the period 5,121 6,679
Total comprehensive income attributable to:
Equity holders of the parent 5,121 6,679
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Part of the financial statements
Consolidated statement of financial position
EUR thousand Note 31 Dec 2024 31 Dec 2023
Assets
Non-current assets
Intangible assets 8 21,759 22,303
Property, plant and equipment 9 15,125 13,942
Right-of-use assets 10 6,746 6,999
Other non-current assets 104 107
Deferred tax assets 7 701 695
Total non-current assets 44,435 44,046
Current assets
Inventories 13 12,491 12,088
Trade and other receivables 14 17,960 17,866
Derivative financial instruments 11 6 -
Income tax receivables 202 -
Cash and cash equivalents 11 10,463 11,568
Total current assets 41,123 41,522
Total assets 85,557 85,568
EUR thousand Note 31 Dec 2024 31 Dec 2023
Equity and liabilities
Equity attributable to the equity holders of the parent company
Share capital 80 80
Invested unrestricted equity fund 7,851 7,851
Retained earnings 29,281 26,941
Translation differences -1,384 -436
Total equity 11 35,828 34,436
Non-current liabilities
Loans from credit institutions 11 16,391 19,391
Lease liabilities 10,11 6,242 6,629
Pension liabilities 5,11 3,644 3,613
Deferred tax liabilities 7 782 796
Total non-current liabilities 27,058 30,429
Current liabilities
Loans from credit institutions 11 3,000 3,000
Lease liabilities 10,11 1,473 1,252
Trade and other payables 15 17,362 15,687
Derivative financial instruments 11 52 41
Income tax liabilities 783 723
Total current liabilities 22,670 20,703
Total liabilities 49,729 51,132
Total equity and liabilities 85,557 85,568
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Part of the financial statements
Consolidated statement of changes in equity
Equity attributable to the equity holders of the parent company
EUR thousand Share capital
Invested unrestricted
equity fund Retained earnings
Translation
differences Total equity
1 Jan 2024 80 7,851 26,941 -436 34,436
Profit for the period 6,110 6,110
Translation differences -948 -948
Remeasurement gains (+) / losses (-) from defined benefit plans -40 -40
Total comprehensive income for the period 6,069 -948 5,121
Transactions with owners:
Dividends paid -3,729 -3,729
31 Dec 2024 80 7,851 29,281 -1,384 35,828
1 Jan 2023 80 7,851 22,301 -521 29,711
Profit for the period 6,892 6,892
Translation differences 85 85
Remeasurement gains (+) / losses (-) from defined benefit plans -298 -298
Total comprehensive income for the period 6,593 85 6,679
Transactions with owners:
Dividends paid -1,953 -1,953
31 Dec 2023 80 7,851 26,941 -436 34,436
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Part of the financial statements
Consolidated statement of cash flows
EUR thousand Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023
Cash flows from operating activities
Profit before taxes 7,768 8,520
Adjustments:
Depreciation, amortisation and impairment 4 4,423 4,142
Financial income and expenses 6 2,066 2,230
Other adjustments -269 -206
Cash flows before changes in working capital 13,988 14,686
Changes in working capital
Decrease (+) / increase (–) in trade and other
receivables -97 -4,383
Decrease (+) / increase (–) in inventories -404 2,196
Decrease (–) / increase (+) in trade and other payables 1,915 1,346
Cash flows from operating activities before financial
items and taxes 15,402 13,845
Interests paid -1,781 -1,918
Income taxes paid -1,815 -1,757
Net cash flows from operating activities 11,805 10,170
Cash flows from investing activities
Investments in tangible and intangible assets -4,255 -2,594
Net cash flows from investing activities -4,255 -2,594
EUR thousand Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023
Cash flows from financing activities
Repayment of lease liabilities 10 -1,601 -1,329
Repayment of short-term borrowings 11 -3,000 -3,000
Dividends paid 16 -3,729 -1,953
Net cash flows from financing activities -8,330 -6,283
Net change in cash and cash equivalents -779 1,293
Net foreign exchange differences 11 -326 -9
Cash and cash equivalents at 1 January 11,568 10,284
Cash and cash equivalents at 31 December 10,463 11,568
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Part of the financial statements
Notes to the consolidated
financial statements
1. Accounting principles for
the consolidated financial statements
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Part of the financial statements
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Part of the financial statements
Information about subsidiaries
The consolidated financial statements of the Group include:
Climate related issues
Climate commitments are part of Orthex’s sustainability strategy.
Orthex constantly strives to minimize its impact on the environment and
climate. The products we manufacture are of high quality and made to
last for years or even decades. Even after a product has worn out, it can
be recycled, and the material reused for another purpose. The progress
in the sustainability work is part of the CEO’s and the Management
Team’s incentive plan (more information in note 5, in the Remuneration
report 2024, and on the corporate website).
Climate change brings both business risks and opportunities to Orthex.
Unfavourable changes in environmental laws or other related legislation,
as well as factors related to product safety and employee health and
safety may cause financial losses.
In the consolidated financial statements, climate-related matters may
affect, for example, goodwill, as profitability, growth and the discount
rate are defined as the key variables for impairment testing. The Group
has assessed and identified climate-related risks in connection with
the strategy-based profitability figures together with other variables
affecting the business (more information in note 8).
The Group has an external loan of EUR 19.5 million and the terms and
conditions of the financial loan have sustainability-related measures
related to production energy consumption and waste percentage in
production (more information in note 11).
Orthex’s strategy together with the adaptability and resilience related to
climate change also creates opportunities by promoting the transition
to a low-carbon economy. The Group’s strategy has been influenced by
the opportunities related to recycled and renewable products. The global
climate targets and increase in related regulations may increase sales of
Orthex’s environmentally-friendly products.
More information on climate-related matters is presented in
the sustainability section of the Group’s annual and sustainability report.
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
The maturity analysis of lease liabilities is disclosed in Note 11.
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Part of the financial statements
11. Financial assets and financial
liabilities
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
The decision-making criteria used by management to measure
the ECL includes:
1. Historically Orthex has minimal amount of bad debt.
2. Major clients are big retailers and credit risk relating to the retailers
is minimal.
3. In export sales, Orthex uses credit collaterals to minimize
the credit risk.
4. Average order amounts are small and Orthex has the ability to react
quickly whenever there are signals from clients’ liquidity problems.
Orthex’s customers are major retailers with solid credit ratings. Orthex
monitors the credit ratings relating to its largest clients continuously.
The risk for credit loss relating to the major retailers is considered to be
low. For other clients, Orthex has credit collateral to manage the credit
risk relating to the purchases made by those customers.
The management uses historical outlook to assess the expected credit
losses in addition to the current economic outlooks and client specific
analysis. The maximum exposure to credit risk is the carrying amount of
accounts receivables. In Orthex’s business, the average size of a single
purchase order is small giving Orthex the ability to react to clients’
liquidity problems quickly.
Orthex applies a simplified approach method for the assessment
of the expected credit loss impairment. The calculation of expected
credit losses (ECL) is based on historical data and, for parameters
concerning the future, on the payment behaviour of customers. Any
receivable, which is considered to be more than 90 days past due
are considered to be defaulted and impaired and are written off from
the receivable balance.
Orthex does not have any major risk concentrations regarding
the Group’s receivables and the trading partners are all well established
companies with historically stable payment behaviour towards business
transactions with Orthex.
Trade receivables consist mainly of receivables from customers.
Impairment losses of trade receivables recognised in profit or loss
amounted to EUR 290 thousand during the year 2024. In 2023,
impairment losses of trade receivables were EUR 15.7 thousand.
The maturity distribution of trade receivables is presented in Note 14.
7 million credit facility and a EUR 19.5 million loan agreement with
Nordea Bank Plc. According to the terms and conditions of the financial
covenants, the gearing ratio is to be below 125% and the net debt to
EBITDA ratio below 3.25x. The covenants must be met on an ongoing
basis and are tested and reported to the lender on a quarterly basis.
Orthex’s financial forecasts do not indicate any breach of the financial
covenants.
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Part of the financial statements
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Part of the financial statements
To maintain or adjust the capital structure, the Group may adjust
the dividend payment to shareholders, return capital to shareholders
or issue new shares. The Group monitors capital using the equity ratio,
which is counted as total equity / total assets.
EUR thousand 31 Dec 2024 31 Dec 2023
Equity 35,828 34,436
Balance sheet total 85,557 85,568
Equity ratio 41.9% 40.2%
No changes were made in the objectives, policies or processes for
managing capital during the years ended 31 Dec 2024 and 31 Dec 2023.
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
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Part of the financial statements
Parent company financial statements, FAS
Parent company income statement
EUR Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023
Net sales 2 840,000.00 840,000.00
Administrative expenses -1,439,364.36 -1,313,057.17
Operating profit -599,364.36 -473,057.17
Interest income from group companies 671,710.16 632,065.24
Dividends received from group companies 4,000,000.00 7,000,000.00
Other interest and financial income from others - 59,602.27
Interest and financial expenses to others -1,222,795.35 -1,578,150.03
Financial income and expenses 5 3,448,914.81 6,113,517.48
Profit (loss) before appropriations and taxes 2,849,550.45 5,640,460.31
Appropriations
Group contribution 6 3,500,000.00 3,400,000.00
Income taxes 7 -403,260.63 -404,458.31
Profit (loss) for the period 5,946,289.82 8,636,002.00
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Part of the financial statements
Parent company balance sheet
EUR Note 31 Dec 2024 31 Dec 2023
ASSETS
NON-CURRENT ASSETS
Investments
Holdings in subsidiaries 8 25,295,133.29 25,295,133.29
Receivables from subsidiaries 8 11,638,197.22 11,166,487.06
Investments total 36,933,330.51 36,461,620.35
NON-CURRENT ASSETS TOTAL 36,933,330.51 36,461,620.35
CURRENT ASSETS
Short-term receivables
Income tax receivables 12,815.89 -
Receivables from subsidiaries 9 3,900,000.00 5,481,359.46
Prepayments and accrued income 10 70,397.70 261,157.41
Short-term receivables total 3,983,213.59 5,742,516.87
Cash and cash equivalents 179,594.17 148,760.99
CURRENT ASSETS TOTAL 4,162,807.76 5,891,277.86
ASSETS TOTAL 41,096,138.27 42,352,898.21
EUR Note 31 Dec 2024 31 Dec 2023
SHAREHOLDERS' EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Share capital 80,000.00 80,000.00
Invested unrestricted equity fund 8,430,263.84 8,430,263.84
Retained earnings 6,828,064.08 1,921,421.42
Profit (loss) for the period 5,946,289.82 8,636,002.00
SHAREHOLDERS' EQUITY TOTAL 11 21,284,617.74 19,067,687.26
LIABILITIES
Long-term liabilities
Loans from credit institutions 12 16,500,000.00 19,500,000.00
Long-term liabilities total 16,500,000.00 19,500,000.00
Short-term liabilities
Loans from credit institutions 12 3,000,000.00 3,000,000.00
Income tax liabilities - 404,458.31
Trade payables 10,255.78 18,646.07
Other payables 48,574.77 46,026.94
Accruals and deferred income 13 252,689.98 316,079.63
Short-term liabilities total 3,311,520.53 3,785,210.95
LIABILITIES TOTAL 19,811,520.53 23,285,210.95
SHAREHOLDERS' EQUITY AND LIABILITIES TOTAL 41,096,138.27 42,352,898.21
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Part of the financial statements
Parent company cash flow statement
EUR Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023
Cash flows from operating activities
Profit before appropriations and tax 2,849,550.45 5,640,460.31
Adjustments:
Financial income and expenses 5 -3,448,914.81 -8,113,517.48
Other adjustments - 0.01
Cash flows before changes in working capital -599,364.36 -2,473,057.16
Changes in working capital
Decrease (+) / increase (–) in trade and other
receivables 588,362.57 2,160,533.96
Decrease (–) / increase (+) in trade and other payables -69,232.11 -439.23
Cash flows from operating activities before financial
items and taxes -80,233.90 -312,962.43
Interests and other financing expenses paid -1,233,980.42 -1,578,150.03
Dividends received 5,494,941.67 5,088,672.52
Income taxes paid -820,534.83 -462,066.80
Net cash flows from operating activities 3,360,192.52 2,735,493.26
Cash flows from investing activities
Net cash flows from investing activities - -
EUR Note 1 Jan - 31 Dec 2024 1 Jan - 31 Dec 2023
Cash flows from financing activities
Dividends distribution -3,729,359.34 -1,953,473.94
Repayment of short-term loans -3,000,000.00 -3,000,000.00
Group contributions received 3,400,000.00 2,231,327.48
Net cash flows from financing activities -3,329,359.34 -2,722,146.46
Net change in cash and cash equivalents 30,833.18 13,346.80
Cash and cash equivalents at 1 January 148,760.99 135,414.19
Cash and cash equivalents at 31 December 179,594.17 148,760.99
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Part of the financial statements
Notes to
the parent company
financial statements
1. Parent company accounting principles
The financial statements of Orthex Corporation have been prepared in
accordance with the Finnish Accounting Act and Ordinance and other
statutes regulating the preparation of financial statements (Finnish
Accounting Standards, FAS). The financial statements are presented
in euros.
The preparation of financial statements in conformity with regulations
in force and generally accepted accounting principles requires
management to make estimates and assumptions that affect
the valuation of assets and liabilities and reported amounts of revenues
and expenses. Actual results could differ from those estimates.
Transactions in foreign currencies
Transactions in foreign currencies are recorded at the rates of exchange
prevailing at the date of the transaction. At the end of the reporting
period, balances in foreign currencies are translated using the exchange
rate prevailing at the end of the reporting period.
Income taxes
Income taxes consist of the aggregate current tax expense based on
the Finnish tax rules and adjustments to prior year taxes. The parent
company does not account for deferred taxes as a stand-alone entity.
Receivables
Receivables are valued at the lower of book value and recoverable value.
Derivatives
Orthex Corporation has interest rate derivatives. Hedge accounting is
not applied to interest rate derivatives to the extent that the derivatives
protect the parent company’s interest rate risk. The fair values of
the derivatives are recorded in the balance sheet and changes in the fair
value are recorded in the financial items of the income statement.
The realized profit or loss of interest rate swaps hedging variable
rate loans is presented in the income statement in financial items.
The fair values of interest rate swaps are determined using a method
based on the present value of future cash flows, which is supported
by market interest rates at the end of the reporting period and other
market information.
Appropriations
Appropriations in the parent company balance sheet consist of received
group contributions.
2. Net sales
Net sales
EUR 2024 2023
Administration services 840,000.00 840,000.00
3. Personnel costs and number of
employees
Personnel costs, book value
EUR 2024 2023
Wages and salaries 721,925.93 828,775.51
Pension costs 123,066.89 97,616.86
Other personnel costs 20,712.48 12,651.85
Total 865,705.30 939,044.22
CEO and Board remuneration, book value
EUR 2024 2023
CEO 569,216.00 437,427.00
Board of Directors 140,000.00 144,000.00
Number of employees
Average (FTE) 2024 2023
Employees 2 2
Total 2 2
The CEO and the CFO of Orthex Group work in Orthex Corporation.
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Part of the financial statements
4. Fees paid to company’s auditors
EUR 2024 2023
Audit fees 134,088.00 116,166.00
Other - 3,000.00
Total 134,088.00 119,166.00
5. Financial income and expenses
EUR 2024 2023
Interest and financial income from
group companies 671,710.16 632,065.24
Dividends received from
group companies 4,000,000.00 7,000,000.00
Other interest and financial income
from others - 59,602.27
Total financial income 4,671,710.16 7,691,667.51
Interest and financial expenses to others -1,222,795.35 -1,578,150.03
Total financial expenses -1,222,795.35 -1,578,150.03
Total financial income and expenses 3,448,914.81 6,113,517.48
6. Appropriations
EUR 2024 2023
Group contribution received 3,500,000.00 3,400,000.00
Total 3,500,000.00 3,400,000.00
7. Income taxes
EUR 2024 2023
Current year taxes -395,184.10 -404,458.31
Taxes from previous years -8,076.53 -
Total -403,260.63 -404,458.31
8. Investments
EUR
Holdings in
subsidiaries
Receivables from
subsidiaries Total
Acquisition cost
Balance at 1 Jan 2023 25,295,133.29 10,534,421.82 35,829,555.11
Additions - 632,065.24 632,065.24
Balance at 31 Dec 2023 25,295,133.29 11,166,487.06 36,461,620.35
Additions - 471,710.16 471,710.16
Balance at 31 Dec 2024 25,295,133.29 11,638,197.22 36,933,330.51
Shares in subsidiaries
Number of shares Domicile % of share capital Book value, EUR
Oy Orthex Finland Ab 135,170 Helsinki 100 25,295,133.29
Total, 31 Dec 2024 25,295,133.29
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Part of the financial statements
9. Receivables from subsidiaries
EUR 2024 2023
Other receivables 3,900,000.00 5,481,359.46
Total 3,900,000.00 5,481,359.46
10. Prepayments and accrued income
EUR 2024 2023
Value added taxes related to the
tax audit 59,013.39 265,828.75
Other items 11,384.31 -4,671.34
Total 70,397.70 261,157.41
11. Shareholders’ equity
EUR 2024 2023
Share capital, 1 Jan 80,000.00 80,000.00
Share capital, 31 Dec 80,000.00 80,000.00
Invested unrestricted equity fund, 1 Jan 8,430,263.84 8,430,263.84
Invested unrestricted equity fund, 31 Dec 8,430,263.84 8,430,263.84
Retained earnings, 1 Jan 10,557,423.42 3,874,895.36
Dividends distribution -3,729,359.34 -1,953,473.94
Retained earnings, 31 Dec 6,828,064.08 1,921,421.42
Profit (loss) for the period 5,946,289.82 8,636,002.00
Distributable earnings, 31 Dec 21,204,617.74 18,987,687.26
Shareholders' equity total, 31 Dec 21,284,617.74 19,067,687.26
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Part of the financial statements
12. Long-term liabilities
EUR 31 Dec 2024 31 Dec 2023
Loans from credit institutions:
Payable in the next 12 months 3,000,000.00 3,000,000.00
Payable between one and five years 16,500,000.00 19,500,000.00
13. Accruals and deferred income
EUR 31 Dec 2024 31 Dec 2023
Wages, salaries and social costs 170,498.43 153,483.69
Derivatives 52,418.00 10,821.00
Other 29,773.55 151,774.94
Total 252,689.98 316,079.63
The value of the underlying asset of the derivatives in the financial
statements on 31 December 2024 was EUR 9,750,000.00, and
the maturity date of the derivatives is 22 December 2025.
14. Leasing contracts
EUR 31 Dec 2024 31 Dec 2023
Next year 21,350.95 -
Later 57,281.69 -
Total 78,632.64 -
15. Contingencies and pledged assets
EUR 31 Dec 2024 31 Dec 2023
Pledges given on behalf of Group
companies:
Enterprise mortgages 48,100,000.00 48,100,000.00
Property mortgages 10,192,329.66 10,192,329.66
Total 58,292,329.66 58,292,329.66
The company has a credit limit of EUR 7,000,000.00, of which EUR
1,000,000.00 has been allocated to Oy Orthex Finland Ab and EUR
878,023.08 to Orthex Sweden AB.
Tax audit 2022
In 2022, Orthex Corporation was subject to a tax audit regarding
the financial years 2020 and 2021. The tax audit report included
subsequent taxes and tax increases amounting to a total of EUR
0.3 million relating to the VAT deductibility of IPO related costs.
The company disagreed with the interpretation made in the tax audit
and filed a claim for adjustment to its taxation with the Assessment
Adjustment Board of the Finnish tax authority. However, the company
was requested to pay additional taxes in accordance with
the interpretations set out in the tax audit report and the company paid
the subsequent taxes and tax increases in June 2022. Orthex did not
recognise the subsequent taxes and tax increases in the consolidated
statement of comprehensive income. The Assessment Adjustment
Board issued its decision on the company’s claim for adjustment in
February 2025 and the company’s claim was partly approved. As a result
of the decision, EUR 0.2 million was recognised as items affecting
comparability under fixed costs in the 2024 financial statements of
Orthex Corporation.
16. Company shares
The company has 17,758,854 shares. The company’s share capital is
EUR 80,000.00. Each share entitles its holder to one vote at the Annual
General Meeting.
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Signatures of the Board of Directors’ report and financial statements
Espoo, 11 March 2025
Sanna Suvanto-Harsaae, Chair of the Board of Directors Markus Hellström Jyrki Mäki-Kala
Alexander Rosenlew, CEO
Anette Rosengren
Auditor’s Note
Our auditor’s report has been issued today.
Espoo, 11 March 2025
Ernst & Young Oy
Authorised Public Accountant Firm
Mikko Rytilahti
Authorised Public Accountant
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Auditor’s report
(Translation of the Finnish original)
To the Annual General Meeting of Orthex Oyj
Report on the Audit of
the Financial Statements
Opinion
We have audited the financial statements of Orthex Oyj (business
identity code 2727990-2) for the year ended 31 December 2024.
The financial statements comprise the consolidated balance sheet,
income statement, statement of comprehensive income, statement of
changes in equity, statement of cash flows and notes, including material
accounting policy information, as well as the parent company’s balance
sheet, income statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view of
the group’s financial position, financial performance and cash flows in
accordance with IFRS Accounting Standards as adopted by the EU.
• the financial statements give a true and fair view of the parent
company’s financial performance and financial position in accordance
with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to
the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in
Finland. Our responsibilities under good auditing practice are further
described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group companies
in accordance with the ethical requirements that are applicable in
Finland and are relevant to our audit, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that
we have provided to the parent company and group companies are in
compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit
services referred to in Article 5(1) of regulation (EU) 537/2014. The non-
audit services that we have provided have been disclosed in note 4 to
the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of
the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
We have fulfilled the responsibilities described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section
of our report, including in relation to these matters. Accordingly,
our audit included the performance of procedures designed to
respond to our assessment of the risks of material misstatement
of the financial statements. The results of our audit procedures,
including the procedures performed to address the matters below,
provide the basis for our audit opinion on the accompanying financial
statements.
We have also addressed the risk of management override of internal
controls. This includes consideration of whether there was evidence of
management bias that represented a risk of material misstatement due
to fraud.
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Key Audit Matter How our audit addressed the Key Audit Matter
Valuation of goodwill
We refer to note 8 to the consolidated financial statements.
The value of goodwill at the date of the financial statements amounted to 21.8 million euros, representing 25.4%
of the group’s total assets and 60.7% of the group’s equity.
Valuation of goodwill is based on management’s estimates about the value-in-use calculations of the group’s cash
generating units.
There are a number of underlying assumptions used to determine the value-in-use of a cash generating unit,
including the development of revenue and profitability and the discount rate applied to cash flows estimates.
The results of value-in-use calculations may vary significantly when the underlying assumptions are changed.
Changes in the above-mentioned individual assumptions may result in an impairment of goodwill.
Valuation of goodwill was a key audit matter because the assessment process requires significant management
judgements and forecasts to be made, because it is based on assumptions related to market and economic
conditions extending far into the future and because the amount of goodwill is material to the consolidated
financial statements.
This matter was also a significant risk of material misstatement as defined by EU Regulation No 537/2014,
point (c) of Article 10(2).
Our audit procedures to address the risk of material misstatement regarding valuation of goodwill included
among others:
• involving our valuation specialists to assist us in assessing the appropriateness of the methodologies,
impairment calculations and underlying assumptions applied by management in the impairment testing;
• testing the mathematical accuracy of the impairment calculations;
• comparing the key assumptions applied by management in the impairment testing to approved budgets and
forecasts, information available in external sources and our independently calculated industry averages such as
for the weighted average cost of capital used in discounting cash flows;
• comparing the outcome of the impairment test to the market capitalization of Orthex Oyj; and
• comparing the principles applied by management in the impairment testing to the requirements set out in
the standard IAS 36 Impairment of Assets.
We also assessed the appropriateness of the disclosures regarding impairment testing made in the notes to
the consolidated financial statements.
Revenue recognition
We refer to note 2 to the consolidated financial statements.
According to the accounting policy presented in the consolidated financial statements, revenue from the sales
of goods is recognized at the point in time when control of the goods is transferred to the customer. Cash
and volume discounts granted to customers are taken into account when determining the amount of revenue
recognized.
The revenue of Orthex Group is mainly generated from sales of household products to retailers.
There are multiple varying contractual terms across the group’s markets regarding the above-mentioned discounts
which could lead to misstatement of revenue, either due to fraud or error. The group focuses on revenue as a key
performance measure which could create an incentive for revenue to be recognized prematurely. Due to these
circumstances, revenue recognition was determined to be a key audit matter.
This matter was also a significant risk of material misstatement as defined by EU Regulation No 537/2014,
point (c) of Article 10(2).
Our audit procedures to address the risk of material misstatement regarding revenue recognition included
among others:
• assessing the compliance of the group’s accounting policies over revenue recognition, including those related to
discounts, with the applicable accounting standards;
• analyzing a sample of contracts with customers and comparing the terms determined in them to the terms used
in the group’s calculations regarding discounts;
• testing the mathematical accuracy of the group’s calculations of discounts and assessing the adequacy of
liabilities recognized based on those calculations;
• testing the accuracy of revenue recognition by performing both analytical procedures and tests of details on
a transaction level before and after the date of the financial statements; and
• analyzing the timing of revenue recognition based on delivery lead times.
We also assessed the appropriateness of the disclosures regarding revenue recognition made in the notes to
the consolidated financial statements.
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Key Audit Matter How our audit addressed the Key Audit Matter
Valuation of inventories
We refer to note 13 to the consolidated financial statements.
The value of inventories at the date of the financial statements amounted to 12.5 million euros, representing
14.6% of the group’s total assets and 34.9% of the group’s equity.
Inventories are valued at the lower of cost or net realizable value. Inventories are presented net of an impairment
loss allowance recognized for slow-moving or obsolete inventories or for inventories that have an otherwise lower
net realizable value than cost.
Valuation of inventories was a key audit matter because the carrying value of inventories is material to the
consolidated financial statements and because valuation of inventories involves management’s judgment and
estimates in order to determine the amount of slow-moving or obsolete inventories as well as the net realizable
value of inventories.
Our audit procedures included among others:
• assessing the group’s accounting policies over inventory valuation and comparing them to the applicable
accounting standards;
• comparing unit values of selected inventory items to sales prices;
• testing exceptional inventory values using data analysis;
• assessing the assumptions applied and the calculations prepared by management regarding slow-moving or
obsolete inventories and the expected demand and net realizable value of inventory items; and
• testing the mathematical accuracy of the impairment loss allowance calculations prepared by management and
assessing the adequacy of the allowances recognized.
We also assessed the appropriateness of the disclosures regarding valuation of inventories made in the notes to
the consolidated financial statements.
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Responsibilities of the Board of Directors
and the Managing Director for the Financial
Statements
The Board of Directors and the Managing Director are responsible for
the preparation of consolidated financial statements that give a true
and fair view in accordance with IFRS Accounting Standards as adopted
by the EU, and of financial statements that give a true and fair view in
accordance with the laws and regulations governing the preparation of
financial statements in Finland and comply with statutory requirements.
The Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and
the Managing Director are responsible for assessing the parent
company’s and the group’s ability to continue as going concern,
disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting. The financial statements are
prepared using the going concern basis of accounting unless there
is an intention to liquidate the parent company or the group or cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of
the Financial Statements
Our objectives are to obtain reasonable assurance on whether
the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of
assurance, but is not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material misstatement
when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably
be expected to influence the economic decisions of users taken on
the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the group’s
internal control.
• Evaluate the appropriateness of accounting policies used and
the reasonableness of accounting estimates and related disclosures
made by management.
• Conclude on the appropriateness of the Board of Directors’ and
the Managing Director’s use of the going concern basis of accounting
and based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast
significant doubt on the parent company’s or the group’s ability
to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial statements or, if such
disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the parent
company or the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of
the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
• Plan and perform the group audit to obtain sufficient appropriate audit
evidence regarding the financial information of the entities or business
units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision
and review of the audit work performed for purposes of the group
audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in
internal control that we identify during our audit.
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We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore
the key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting
on May 7, 2009 and our appointment represents a total period of
uninterrupted engagement of 16 years. Orthex Oyj has been a public
interest entity since March 29, 2021.
Other information
The Board of Directors and the Managing Director are responsible for
the other information. The other information comprises the report of
the Board of Directors and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report
thereon. We have obtained the report of the Board of Directors prior to
the date of this auditor’s report, and the Annual Report is expected to be
made available to us after that date.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information identified above and,
in doing so, consider whether the other information is materially
inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated. With respect
to report of the Board of Directors, our responsibility also includes
considering whether the report of the Board of Directors has been
prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors
is consistent with the information in the financial statements and
the report of the Board of Directors has been prepared in compliance
with the applicable provisions.
If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude
that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Espoo 11.3.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Rytilahti
Authorized Public Accountant
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Independent Auditor’s
Report on the ESEF
Consolidated Financial
Statements of Orthex Oyj
(Translation of the Finnish original)
To the Board of Directors of Orthex Oyj
We have performed a reasonable assurance engagement on
the financial statements 7437008RMK8BSWN39T09-2024-12-31-fi.
zip of Orthex Oyj (y-identifier: 2727990-2) that have been prepared in
accordance with the Commission’s regulatory technical standard for
the financial year ended 31.12.2024.
Responsibilities of the Board of Directors and
the Managing Director
The Board of Directors and the Managing Director are responsible
for the preparation of the company’s report of Board of Directors and
financial statements (the ESEF financial statements) in such a way
that they comply with the requirements of the Commission’s regulatory
technical standard. This responsibility includes:
• preparing the ESEF financial statements in XHTML format in
accordance with Article 3 of the Commission’s regulatory technical
standard
• tagging the primary financial statements, notes and company’s
identification data in the consolidated financial statements that
are included in the ESEF financial statements with iXBRL tags in
accordance with Article 4 of the Commission’s regulatory technical
standard and
• ensuring the consistency between the ESEF financial statements and
the audited financial statements
The Board of Directors and the Managing Director are also responsible
for such internal control as they determine is necessary to enable
the preparation of ESEF financial statements in accordance
the requirements of the Commission’s regulatory technical standard.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical
requirements that are applicable in Finland and are relevant to
the engagement we have performed, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The firm applies International Standard on Quality Management (ISQM)
1, which requires the firm to design, implement and operate a system
of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and
applicable legal and regulatory requirements
Auditor’s Responsibilities
Our responsibility is to, in accordance with Chapter 7, Section
8 of the Securities Markets Act, provide assurance on
the financial statements that have been prepared in accordance
with the Commission’s technical regulatory standard. We express an
opinion on whether the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all
material respects, in accordance with the requirements of Article 4 of
the Commission’s regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent
the assurance has been provided. We conducted a reasonable assurance
engagement in accordance with International Standard on Assurance
Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
• whether the primary financial statements in the consolidated financial
statements that are included in the ESEF financial statements have
been tagged, in all material respects, with iXBRL tags in accordance
with the requirements of Article 4 of the Commission’s regulatory
technical standard and
• whether the notes and company’s identification data in
the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects,
with iXBRL tags in accordance with the requirements of Article 4 of
the Commission’s regulatory technical standard and
• whether there is consistency between the ESEF financial statements
and the audited financial statements.
The nature, timing and extent of the selected procedures depend on
the auditor’s judgement. This includes an assessment of the risk of
material deviations due to fraud or error from the requirements of
the Commission’s technical regulatory standard.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
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Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company’s identification data in the consolidated financial statements
that are included in the ESEF financial statements of Orthex Oyj
7437008RMK8BSWN39T09-2024-12-31-fi.zip for the financial
year ended 31.12.2024 have been tagged, in all material respects, in
accordance with the requirements of the Commission’s regulatory
technical standard.
Our opinion on the audit of the consolidated financial statements of
Orthex Oyj for the financial year ended 31.12.2024 has been expressed
in our auditor’s report 11.03.2025. With this report we do not express
an opinion on the audit of the consolidated financial statements nor
express another assurance conclusion.
Helsinki 25.03.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Mikko Rytilahti
Authorized Public Accountant
ANNUAL REVIEW SUSTAINABILITY GOVERNANCE FINANCIAL REVIEW
