Muuto A/S

Ledelsesberetning

Group consolidated results (not included in the financial statements)
Anti-corruption
Reporting on data ethics
This annual report does not include consolidated financial statements, since Muuto A/S is part of the consolidated financial statements of MillerKnoll Inc. However, the following consolidated highlights for 2023/24 for Muuto A/S (the group) can be summarized as follows:
Consolidated revenue for the last twelve months (June 2023 – May 2024) of the Muuto Group reached DKK 963 million, which was a decline of 7% from the period June 2022 – May 2023.
Consolidated EBITDA for Muuto Group was DKK 188 million which was a decline of 9% from the period June 2022 – May 2023.
The decline in consolidated revenue and EBITDA was especially driven by challenging market conditions for our Wholesale segment across geographical regions.
Risks related to receivables, creditors, supply and currency are considered normal. The Company's goal is to seek to reduce related risks through treasury management.
Anti-corruption – policy Under no circumstances does Muuto A/S tolerate any type of corruption and/or bribery.
Anti-corruption – risks, actions and results Muuto A/S has employees in a broad variety of countries across various continents and cultures, which itself poses a risk that some employees as well as the employees of Muuto A/S’ suppliers can find themselves in situations exposed to corruption and/or bribery. Muuto A/S strongly encourages anyone who has suspicions of unethical business methods to immediately report their concern to their nearest manager or use the MillerKnoll hotline, and this is communicated continuously to its employees. No situations of corruption and/or bribery have been reported from 1 June 2023 to 31 May 2024. Also, all employees have undertaken online courses in GDPR, cyber security and anti-corruption from 1 June 2023 to 31 May 2024. For the future Muuto A/S will keep the focus on anti-corruption internally as well as externally.
In its capacity as a MillerKnoll group company, Muuto A/S conducts itself in accordance with a series of values, codes and policies; with particular reference to its Code of Business Conduct and Ethics. All employees receive training in relation to the Code of Business Conduct and Ethics. Muuto A/S, in its capacity as a MillerKnoll group company, takes its responsibilities very seriously, including our internal practices as well as those with our customers, advisers and extended community. We have a robust series of policies and guidelines in place to facilitate decision-making, risk management and problemsolving. Our policies include: Privacy Notice, Cookie Notice, Do Not Sell My Personal Information, Exercise Your Privacy Rights, Accessibility, Code of Business Conduct and Ethics, Supplier Code of Conduct, Insider Trading, Whistleblower and Non-Retaliation Policy, Terms of Use, Investor Relations, Related Party Transaction Policy and Procedures, Group Health Plan Disclosure – MillerKnoll and Guest Wireless Network Acceptable Use Policy. We also conduct comprehensive compliance training globally.

Beskrivelse af virksomhedens væsentligste aktiviteter

The principal activities of the Company comprise wholesale, trade and service as well as related activities.

Beskrivelse af usikkerhed ved indregning eller måling

There is no significant uncertainty regarding recognition and measurement.
No unusual circumstances have occurred, affecting recognition and measurement.

Beskrivelse af udviklingen i virksomhedens aktiviteter og økonomiske forhold

The Company's income statement for 2023/24 shows a profit of DKK 85,994 thousand as against DKK 127,679 thousand for 2022/23. Equity in the Company's balance sheet at 31 May 2024 stood at DKK 366,908 thousand as against DKK 430,914 thousand at 31 May 2023.
Reported revenue for Muuto A/S changed from DKK 949,803 thousand in 2022/23 to DKK 843,347 thousand in 2023/24, which is a decline of 11 %. Muuto A/S' EBITDA changed from DKK 231,427 thousand in 2022/23 to DKK 167,959 thousand in 2023/24.
Muuto A/S' revenue and EBITDA were below the initial expectations for the financial year as set forth in the Management's review of the annual report for 2022/23. The delta to the original budget for 2023/24 can be explained by a decline in product volume across key business segments and markets and a slight decrease in the overall margin on products. Despite the decline compared to prior year and projected result for 2023/24, we are confident in the outlook for 2024/25 and our overall growth strategy. A reference is made to the following section.

Beskrivelse af virksomhedens forventede udvikling

Muuto A/S has gained a strong market position which provides room for further expansion on key business segments such as accessories, lighting and furniture. Management thus expects a further expansion for key business segments. The ownership structure also brings continued opportunities for Muuto A/S through the strong dealer network of MillerKnoll Inc. in especially North America and the APAC region.
The current market situation continues to be uncertain due the economic and geo-political climate. However, Management expects to report improved results for 2024/25. For the full year, growth in revenue and EBITDA in the range of 0%-10% is currently expected.