Lavazza Denmark Aps (Koncern)

Management's review

Financial reviewDevelopment in the yearThe income statement of the Company for 2023 shows a profit of DKK’000 30,218, and at 31 December 2023 the balance sheet of the Company shows equity of DKK’000 99,808. The management considers the result satisfying. EBIT for the year is 33,4 mio DKK which is slightly higher than projected last year (29-30 mio DKK), due to sales to a new export market.Subsidiaries and associated companiesLavazza Denmark ApS is 100% owner of the company Lavazza Baltics SIA.The income statement of Lavazza Baltics SIA for 2023 shows a profit of €‘000 1,436 equals DKK’000 10,675 and at 31 December 2023 the balance sheet of the Company shows equity of €‘000 4,435 equals DKK’000 32,983.In 2023, various categories and services across markets continued to be affected by inflation. In response, Lavazza Denmark implemented price increases to partially mitigate the impact of rising green coffee prices and auxiliary costs.In the domestic Danish coffee market, the filter category still shows a negative trend, which is not entirely offset by the positive growth in whole beans and single-serve categories. However, out-of-home consumption is experiencing positive development after several years of challenges posed by Covid-19.Organic growth and price adjustments in export markets contribute significantly to the overall net revenue. Additionally, Lavazza expanded its export market to include Finland in 2023. The export share increased to 51% in 2023 (from 48% in 2022), while the domestic share decreased to 49% in 2023 (from 52% in 2022). As a result, the performance in 2023 surpassed our initial expectations.Lavazza Baltics SIA acts as the agent for Lavazza Denmark ApS in the Baltic region, facilitating sales to Baltic countries as well as Finland.