Lactosan A/S

Ledelsesberetning
Financial Highlights of the Group2023 2022 2021 2020 2019T.DKK T.DKK T.DKK T.DKK T.DKKProfit/lossRevenue 762.802 696.706 577.377 424.497 406.808Gross profit 278.308 218.382 228.876 164.997 148.025EBITDA 148.472 115.761 133.337 95.397 82.337Profit/loss before financial income and expenses (EBIT) 130.199 94.668 111.427 74.619 69.697Net financials -6.706 -4.599 2.915 15.105 15.630Net profit/loss for the year 88.069 70.913 88.838 74.157 69.245Balance sheetBalance sheet total 577.920 562.086 507.727 415.899 418.690Equity458.566 436.255 412.990 346.481 347.179Investment in property, plant and equipment, including new subsidiaries 20.112 21.348 14.052 25.070 104.678Cash flowsCash flows from:- operating activities 130.571 69.249 57.619- investing activities -19.808 -21.698 -14.185- financing activities -85.682 -45.133 -31.190Changes for the year in cash and cash equivalents 25.081 2.418 12.244Number of employees 212 221 220The income year 2023, 2022 and 2021 show the financial highlight of the consolidated Group. According tothe Annual Accounts Act § 128, stk. 4, we have omitted from including main and key figures for 2.-4. previousfinancial year on group level. Please be aware that it is the parent company's key figures that have been usedfor 2.-4. previous financial year.2023 2022 2021 2020 2019T.DKK T.DKK T.DKK T.DKK T.DKKRatiosGross margin 36,5% 31,3% 39,6% 38,9% 36,4%Profit margin 17,1% 13,6% 19,3% 17,6% 17,1%Return on assets 22,5% 16,8% 21,9% 17,9% 16,6%Solvency ratio 79,3% 77,6% 81,3% 83,3% 82,9%Return on equity19,2% 16,3% 21,5% 21,4% 19,9%Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Explanation of financial ratiosGross margin =Profit margin =Return on assets =Solvency ratio =Return on equity = Development in activities and finance The Group's income statement for the year ended 31 December 2023 shows a net profit of T.DKK 88.069, and the balance sheet at 31 December 2023 shows equity of T.DKK 458.566. The past year and follow-up on development expectations from last year Raw material as well as energy prices stabilized throughout 2023 improving costs, and the spill over effect from price increases in 2022 had a positive effect on turnover. The combination led to an in-crease in margins and earnings in 2023 compared to 2022. Expected development Volatility in the cheese and energy markets is expected to continue in the coming year due to geo-political tensions in the Middle East as well as the continuing war in Ukraine. Turnover in 2024 is expected to be at the same level as 2023, and also net profit in 2024 is expected to be at the same level as 2023. Particular risks Currency risks Due to the global nature of all activities in the Lactosan Group, the Lactosan Group is exposed to currency transaction risks and currency translation risks. For the activities within food ingredients and food technology the transaction risk is generally hedged, and hedging is handled within the Thornico Group through balancing of income and ex-penses in the currencies relevant for these activities. Translation risks are mainly associated with the translation into DKK of earnings and net assets in foreign subsidiaries. Translation risks are not hedged. Capital resources Via its positive earnings and development, the Lactosan Group has sound and adequate capital re-sources available for new investments and growth. Business risks The Lactosan Group’s intention is to improve its market position in the cheese powder market. The Lactosan Group is presently one of the market leaders within the cheese powder market. Research and development The Lactosan Group is continuously having projects with its customers developing new recipes us-ing cheese powders as well as developing new cheese powder applications.