Haugen-Gruppen Denmark A/S

Ledelsesberetning

Key activities Haugen Group Denmark is a modern food company and based on the consumer's needs, brings all the world's strong brands within food, confectionery, and beverages to the Danish consumers. The company's primary activity is to collaborate with foreign principals and bring brands to Denmark. Secondly, we also develop our own brands, such as Tørsleffs, Paradiso and Green Choice for the Danish market. The distribution takes place from the company's warehouse at Kildebrøndevej 44F in Greve, where the head office is also located. The company also operates a small warehouse with an associated logistics solution. Development in the year The income statement of the Company for 2024 shows a profit of TDKK 5,366, and at 31 December 2024 the balance sheet of the Company shows a positive equity of TDKK 88,354. The past year and follow-up on development expectations from last year The financial year 2024 has been a year of significant growth and strategic investments for our company. We have successfully increased our revenue by DKK 40.3 million, demonstrating a strong market position and continued demand for our products.Despite the increased revenue, our gross profit has decreased by DKK 6.8 million. This decline is primarily due to our investment in relocating to and setting up a new, modern, and more efficient facility. This investment, amounting to close to a double-digit million figure, includes upgraded office facilities and a significantly larger warehouse. The new location not only allows us to optimize our operations but also supports long-term and sustainable growth.As part of our strategy, in 2024, we discontinued our least rotating products, equivalent to approximately 20% of our assortment. This has resulted in lower gross profit for the financial year due to the realization of inventory. In the long run, this will increase our efficiency and make room for more new principal brands. These brands will help strengthen our product portfolio and support our mission to "making your everyday taste better”, which is at the core of everything we do.Overall, 2024 has been a year characterized by growth and strategic decisions that strengthen our company both in the short and long term. We look forward to building on this foundation and continuing our positive development in the coming years. Capital resources The company's capital resources are assessed to be satisfactory. Special risks - operating risks and financial risks For certain of the Company’s products, the harvest situation in the countries of production has a significant impact on the reliability of delivery. In these cases, long-term contracts are signed with producers to secure future deliveries. Parts of the company's portfolio are imported from Asia, we therefore keep a close eye on the logistics situation for maritime transport to Europe, and thus increase our stock volume if we experience problems. Foreign exchange risks Haugen Group Denmark A/S hedges foreign exchange positions in volatile currencies primarily GBP, USD and SEC, hedging is done at group level. Credit risks Haugen-Gruppen is primarily exposed to credit risks related to receivables from sales.All customers are individually credit assessed and assigned a credit limit. As part of the company's risk management, credit exposure is monitored and adjusted regularly. Targets and expectations for the year ahead Management expects a slight increase in pre-tax profit for 2025. The management remains focused on value-creating growth with the existing portfolio and exciting new innovations, as well as continued strict control of discounts and costs in a Danish market that is declining in volume. Research and development The Company has no research and development activities. External environment The Company continuously tries to ensure the best use of existing resources in order to reduce the impact on the external environment. Intellectual capital resources The company strives to maintain a high degree of expertise in sales and product development. Environment and Climate We are aware that we affect the environment through our import and distribution, and therefore have a great responsibility in these matters.We continuously work to reduce CO2 emissions through ongoing initiatives in our operations, increased packaging and transport efficiency, waste reduction, and responsible resource consumption.Haugen-Gruppen moved into a new building in Greve at the end of 2023. The building consists of Warehouse and offices. The premises are new and have been designed to enable more cost-efficient use, resulting in a lower environmental impact in 2024, as we have reduced two warehouses to one.In 2024, we have prepared to comply with the Plastic Directive law, which takes effect in January 2025.In 2024, we decided that all company cars will transition to electric. We have started implementing the transition to electric vehicles in 2024 as our respective company car leasing agreements expire. Furthermore, we are preparing for the EU's producer responsibility for packaging, which is introduced from Oct. 1st 2025. In this context, we have joined membership of VANA in 2024, which is intended to handle waste and recycling in Denmark.We work closely with our suppliers and producers. This is essential to achieve our sustainability goals. Supplier and human rights We must contribute to sustainable economic growth, by ensuring proper working conditions. Haugen-Gruppen sets strict requirements for certification within working environment, quality, safety, environment and ethics.All contracts signed with suppliers in 2023 and going forward are based on the BISC Code of Conduct. As an importer of goods from third countries, we have a particular risk of child labor and poor working conditions. For suppliers in these high-risk areas, we place special focus and frequently visit factories and production sites. We are not aware of or suspect any violations of human rights.In 2023, the Group has implemented new procedures in connection with the Transparency Act, which entered into force on 1 July 2022 in Norway. This means that all suppliers above a certain size must complete a statement concerning important areas such as social responsibility, supply chain, risk and diligence assessments, working conditions, rights, etc. The self-report is based on the UN Global Compact and the OECD Guidelines for Responsible Business and Care Assessments.The statement of the due diligence assessment will be published on the Group's website - https://www.haugen-gruppen.com/about-us/transparency-act. Social conditions and employee We support a sustainable future where inclusion and equality play an important role. We want to contribute by practicing equality regardless of gender, sexuality, ethnicity, age, and religion.Our foundation in sustainability work is based on our policies and guidelines, which all newly hired employees are introduced to during their introduction to the company. In order for the work to permeate the entire organization, these elements are also included in the annual employee appraisal where follow-up and goal achievement are included. Our ambition is to make sustainability a natural part of our culture and our values. Haugen Group Denmark works with sustainability in cooperation with the other companies in the group.The responsibility for overall strategies, goals and measures as well as follow-up lies with the management team and the company's quality manager.Our employees is our key asset and crucial for our future success. Protecting the safety and health of our employees is a priority, and we have a continuous focus on developing our working environment.Commitment and well-being are important to us. We conduct an employment survey every two years and always follow up on this. The daily cooperation and well-being in the organization is discussed in the company's works council, so that we, in cooperation with the employees, ensure a common focus.The company conducted the Great Place to Work employee survey in November 2022. The results showed very high satisfaction, and that we are among the top 25 workplaces to work for. The satisfaction rate in the employee survey was measured at 99.5%. We conduct frequent employee well-being surveys, and in our cooperation committee we are continuously working to improve well-being and the work environment. We focus on physical and mental aspects of health. We place a high priority on employee safety and are in the process of implementing a Health and Safety system, where all accidents and near-misses are recorded to continuously optimize our workplace. We are proud to announce that in 2024 we did not experience any workplace accidents – a testament to our ongoing commitment to safety and well-being for all employees.Improving sustainability is continuous. There will always be points of improvement and even higher ambitions. Anti-corruption and bribery It is the responsibility of the management team to ensure that anti-corruption legislation is complied with, just as it is our responsibility to incorporate additional anti-corruption policies and guidelines necessary to ensure legal compliance.For a supplier of imported food products, the risks associated with anti-corruption and bribery may occur. These risks primarily stem from dealing with various stakeholders in the supply chain, including distributors in foreign markets and business partners.The Haugen Group's Code of Conduct applies to all employees in the company, and everyone is familiar with our Code of Conduct. We have zero tolerance policy for anti-corruption and bribery. Going forward, we will continue our current anti-corruption and bribery initiatives.In 2023, it became mandatory for the Haugen Group to have a whistleblower arrangement. This came into place in mid-2023, and we cooperate with TrustCulture. Our Whistleblower scheme provides our employees with a safe environment in which to report unethical or illegal behaviour, thereby helping to reduce the risk of unethical behaviour.No breaches of the Haugen Group's rules have been identified in 2024. Uncertainty relating to recognition and measurement There has been no uncertainty regarding recognition and measurement in the Annual Report. Unusual events The financial position at 31 December 2024 of the Company and the results of the activities and cash flows of the Company for the financial year for 2024 have not been affected by any unusual events. Subsequent events No events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.