Mikkeller Aps

Development in activities and financesThe Company faced significant challenges throughout 2022 due to a difficult market environment, which tested its ability to effectively deliver products to the right markets at the right time. Consequently, obsolete inventory has been destroyed which had a significant impact on the financial results for the year.

Additionally, the Company was adversely affected by 1-2 months of lockdown measures in Europe and the United States, as well as 3-6+ months of restrictions in Japan and China.

Despite these obstacles, the Company proactively focused on the following key areas:

- Strengthening marketing efforts through expanded activities, including increased investments in trade marketing, paid social advertising, and other e-commerce initiatives.

- Implementing process improvements across all organizational departments. The management team recognized that many of the challenges encountered, both presently and historically, were a direct result of insufficient processes. Therefore, they have undertaken a comprehensive assessment to identify and prioritize areas for improvement, with ongoing efforts throughout 2023.

- Conducting targeted recruitment efforts to ensure the Company possesses the necessary capabilities to drive profitability by prioritizing profitable markets and products, rather than solely pursuing top-line expansion.

Management acknowledges that the net loss for the year is unsatisfactory. However, the Company remains committed to addressing these challenges head-on and is dedicated to charting a path towards a prosperous future.