Schades Nordic Aps

The Company's activities pose financial risks in relation to trade receivables and trade payables, deposits and credit with credit institutions, etc. in Danish kroner as well as in foreign currencies. The Company is, to a certain extent, affected by fluctuations in interest rates. Exchange rate fluctuations have had a minor negative impact on the Company's cash flows. The Company's receivables are distributed in such a way that the Company's credit risks are not considered unusual.

The Company's income statement for 2022 shows a profit of DKK 13,204 thousand as against DKK 2,681 thousand in 2021. Equity in the Company's balance sheet at 31 December 2022 stood at DKK 36,600 thousand as against DKK 23,396 thousand at 31 December 2021. In the beginning of 2022, there were market demand recovery following the stabilization of the COVID-19, but then overall demand has soared substantially due to the impacts from long-term strike at UPM, a large Finnish paper company, and supply issues in global supply chain. At the same time, most of raw material prices soared due to the energy crisis caused by the war in Ukraine and high inflation in global economy. This unfolded throughout 2022 and we reacted two main strategies. Firstly, responding to increased market demand by resuming production facilities that had been suspended and ended up with more volume in sales. Secondly, successful pass-through of increased material costs onto sales prices to the customers and higher margins were generated. As the result, we were able to increase turnover by DKK 52.2M and EBIT by DKK 13.8M compared to 2021 (Turnover DKK 65.7M and EBIT DKK 14.4M higher than 2022 Budget).