Wernsing Scandinavia Aps

Development in activities and financial matters
The food activities of the group was in 2022 heavily impacted by the outbreak of the war in Ukraine and subsequently energy crisis. The supply chain has been challenged during the year leading to scarcity on certain raw materials. Input costs such as energy, raw materials, packaging and distribution were very volatile during the year with a strong upward trend. The increases were - continuously during the year - passed on to the customers. Inflation and increase in cost of living have had an impact on consumption. In some categories the assortment has been adjusted to the new marked situation. Furthermore Covid-19 restrictions in the beginning of the year continued to have a negative impact on the sales in the food service sector. Due to the after-effects from Covid-19 and the increasing input costs – especially on energy – after the outbreak of the war in Ukraine the management could in the annual report for 2021 not estimate the financial consequences and results for the year 2022. It has been decided to change the strategi and the production setup in one of the group companies. The changes will be implemented during 2023 and the following year. Consequently the assets of the group has been revaluated and a write down amounting to DKK 28m has been charged to the profit and loss. The agriculture part of the group was positively effected by higher prices on piglets and plants. The management considers the results acceptable taken the extraordinary costs and inflation crisis circumstances into account.

To strenghen the equity of the company and group, the parent company have provided a tax free group contribution of DKK 148,7m (EUR 20,0m).