Lantmännen Unibake Holding A/S

Management's reviewManagement's reviewManagement commentary

The income statement for Lantmännen Unibake Holding A/S for the year 2022 shows a net profit of MDKK 40 and an equity end of the year of MDKK 2,271. Gross profit shows a gain of MDKK 171 and the profit before net financials and tax (EBIT) a gain of MDKK 41. Impairment of subsidiary MDKK 128 and dividends from subsidiaries totals MDKK 152 and net of financial income and expenses MDKK -17 resulting in a profit before tax of MDKK 40.The result for 2022 of MDKK 40 is not at the level of the outlook for 2022, however management consider the result for satisfactory, as the lower result is primarily a consequence of a challenging year for Läntmannen Unibake Group due to impact of COVID-19, the war in Ukraine, rising commodity prices and energy costs, and also impairment loss of MDKK 128 in investments in subsidiaries.Other events in 2022In 2022 several factors have significantly influenced the development of the company and the group either directly or indirectly.Restrictions related to the Covid-19 pandemic where still in place in many of the countries where the company’s subsidiaries are located and has influenced the economic development of the company and the group.Because of the Russian invasion of Ukraine Lantmännen Group Management decided to isolate all its operations in Russia from the rest of the Group, by among other things stopping all import/export, as a first step in a potential divestment of the operations.Global uncertainty, mostly due to the invasion of Ukraine but also other geopolitical factors have led to rapid macroeconomic changes, large commodity price movements, changing consumption patterns, rising interest rates and high energy and fuel pricesMitigating cost reductions and profit protection plans did however moderate the negative impact of the of above-mentioned factors influencing the company’s and the groups financial results.Furthermore, due to the isolation of the Russian operations, the result has been impacted by special items, see note 2, special items.For significant accounting estimates and judgments, we refer to note 3, Significant accounting estimates and judgments.