Insepa A/S

Management review

Development in activities and financial position2022 saw two different developments for Espersen and Beck both on top- and bottom-line development against 2021. Espersen was heavily impacted by the high growth in raw materials up 38% compared to 2021 and utility prices going up 147% compared to 2021 and despite significant sales price increase in especially 2nd part of 2022, not enough to deliver a full year positive profitability for the business. Revenue for Espersen grew with 19% based on the increased sales prices even though volume being down with -3.6% compared to 2021.We saw the opposite situation for Beck, where revenue grew with 39,5% compared to 2021 and the profitability was showing a growth of 60% compared to 2021 on EBIT level. The main drivers for the positive development was higher volume, significantly increased sales prices and favorable USD development.Revenue for 2022 is therefore within the expected range in the outlook for 2022. Operating results before special items for 2022 amounts to DKK 41,683m and is therefore lower than in the outlook for 2022 for the reasons described above.The Group’s revenue increased 21.6% in 2022 to DKK 3,650m (2021: DKK 3,003m) mainly due to higher sales prices in both Espersen and BeckThe Group’s solvency decreased to 34.4% at 31 December 2022 (2021: 42.0%). The decrease is mainly due to the need for higher levels of financing as a result of high inflation on materials and a delay in price increases. The actions taken to increase prices and reduce inventory levels are expected to increase the solvency ratio to the level of previous years.Covid-19 insurance coverThe negative direct cost impact seen from the Covid-19 in the years of 2020 and 2021 had no significant influence on the financial year of 2022 and on the contrary, we received in the financial year of 2022 an insurance payout related to compensation triggered by the pandemic.