ANNUAL ANNUAL
REPORTREPORT
for the financial year ended 31 December 2023for the financial year ended 31 December 2023
The Annual Report was presented and adopted
at the Annual General Meeting of the Company on 12 July 2024
Mejerigaarden A/S, Sennelsvej 1, DK-7700 Thisted, CVR nr. 37 31 73 14
Part of
Managements Statement 1
Information on the Company 2
Management’s Review
3
Report of the Management 12
FINANCIAL STATEMENT
Statement of Comprehensive Income 15
Statement of Financial Position 16
Statement of Changes in Equity 17
Statement of Cash Flows 18
Notes to the Financial Statements 20
Independent auditor’s report 66
CONTENTS
MANAGEMENTS STATEMENT 1
BOARD OF DIRECTORS
EXECUTIVE BOARD
2 INFORMATION ON THE COMPANY
The Company Mejerigaarden A/S
CVR No. 37 31 73 14
Address of the Company Sennelsvej 1 , DK-7700 Thisted
Municipality of re. office: Thisted
Board of Directors Søren Grønnegaard Lauridsen (Chairman of the Board)
Arturs Cirjevskis (Member of the Board)
Lincoln Lin Feng Pan (Member of the Board)
Executive Board Torben Meng
Arturs Cirjevskis
Reporting period 1 January 2023 – 31 December 2023
Name and address of the KPMG P/S
certified audit company and Statsautoriseret Revisionspartnerselskab
certified auditor in charge Frederiks Plads 42, 7 . tv 8000 Aarhus C
CVR No. 25 57 81 98
Bankers Ringkjøbing Landbobank
MANAGEMENT’S REVIEW 3
MANAGEMENT’S REVIEW
The Annual Report of Mejerigaarden A/S has been prepared in accor-
dance with IFRS Accounting Standards adopted by the EU and further
requirements in the Danish Financial Statements Act, applying to large
enterprises of reporting class C.
PRINCIPAL ACTIVITIES
Mejerigaarden A/S (the Company) carries on production, sale and distri-
bution of ice-cream products primarily for the Danish market. Principal
activities have not changed compared to previous reporting year.
MARKET OVERVIEW
Mejerigaarden is the biggest local operator of ice cream in Denmark.
The overall market in Denmark for Mejerigaarden’s products is growing
at moderate pace, predominantly driven by higher value added.
The market is active with market participants (producers, operators,
customers and consumers) looking for differentiation tactics, with Premi-
er Is being the only one in the market positioned to actively engage in
multiple channels, including off-trade, on-trade and direct-to-consumer.
DEVELOPMENT IN THE YEAR
In the financial year 2023, Mejerigaarden took several strategic steps to
significantly improve long-term business prospects. These steps inclu-
ded conducting research on consumer perceptions of a wider range of
products for doorstep delivery, digitizing relationships with both corporate
and private customers, and developing a more efficient supply chain
software infrastructure. Mejerigaarden anticipate that some of these initi-
atives will start yielding results in the near future. Additionally, the expan-
sion of the Hjem-IS brand with the introduction of the Fråst subbrand has
provided us with valuable market insights, which will help us develop a
strong activation and communication plan for 2024 and beyond.
In 2023, the company achieved its strongest revenue to date, surpas-
sing the milestone of 0.5 billion DKK revenue for the first time ever.
Additionally, it was the second-best year in terms of operating cash flow,
enabling accelerated investment for further growth opportunities.
The Company maintained its total market share in 2023.
For 2023, the income statement shows a loss of DKK 29.9 m and equity
amounts to DKK 170.4 m. Based on the expectations outlined in our 2022
annual report, the performance for 2023 did not meet our expectations
due to costs connected to strategic initiatives and write-downs for loans
and receiveable to Fråst ApS (100% subsidiary) with DKK 10.8 m.
The results are thus considered unacceptable, and management aims
to improve bottom-line performance to positive net profit in 2024 year.
EXPECTED FINANCIAL DEVELOPMENT
The company expects a positive financial performance in 2024, with a
projected pre-tax profit ranging between DKK 20 and 25 m. The loss
incurred in 2023 is anticipated to be turned into a profit in 2024, as the
company will focus on growing its core business in the coming year.
Mejerigaarden anticipate an increase in revenue and the transforma-
tion of previous efforts and projects into a stronger positive performan-
ce at the bottom line. The company’s operational focus is not only on
delivering profit and loss, but also on strong conversion into free cash
flow generation.
SPECIAL RISKS
Operations
The Company’s operations are typically affected by changes in the price
of raw materials from year to year. However, for major items, the com-
4 MANAGEMENT’S REVIEW
pany and the Group usually aim to lock in a predetermined price for the
incoming flow of goods (such as sugar and carton), in order to minimize
the impact of short-term price fluctuations.
Financial risks
The Company is not significantly exposed to changes in exchange rates
and interest-rate levels to any material extent.
EXTERNAL ENVIRONMENT
The Company makes targeted efforts to reduce its consumption of re-
sources and environmental impact.
The climate and environmental policy adopted is based on financially
and environmentally sound operations and is a natural and important
element of Management’s target of optimising both production conditi-
ons and product quality.
ETHICAL TRADING
AND ANTI-CORRUPTION RULES
All types of corruption, bribery, fraud and money laundering are stric-
tly prohibited. We reject all unfair and restrictive trading practices. No
employee of the Company is allowed to accept personal gifts, services,
travels, event offers or similar benefits of material value from suppliers
or other business partners.
It is strictly forbidden to grant, offer or promise any benefit, whether
directly or indirectly, to any public officer with a view to wrongfully influ-
encing the exercise of public authority in connection with purchases,
tendering or any other type of business or business transaction that
may result in an undue gain.
We are on the lookout for conflicts of interests, and our employees
should always safeguard the Company’s interests over their personal
interests. We encourage everyone to use their common sense.
We focus on the Company’s internal procedure and control measures
and are striving continuously to adapt these to our day-to-day work and
in response to external impacts. We did not during the year identify any
instances in the nature of bribery, fraud or corruption.
It is an unconditional requirement that our suppliers declare to meet an
internally defined code of conduct, which contains CSR requirements
defined by, among others, the UN, OECD and the Danish Ministry of
Business, Industry and Financial Affairs.
The purpose of the internal code of conduct is, among other things, to
ensure that Mejerigaarden A/S actively aims at complying with laws,
regulations and generally accepted practice to avoid any form of corrup-
tion, including bribery and money laundering.
EMPLOYEES AND WORKING ENVIRONMENT
At Mejerigaarden, we operate under a policy that focuses on creating a
good, safe, and prosperous workplace for all our employees. Our goal
is to ensure a work environment where every employee feels safe and
valued, and where there are ample opportunities for personal and pro-
fessional growth.
We place high importance on safety and have implemented new work
procedures to minimise risks and ensure that all employees can per-
form their duties in safe conditions.
In 2023, we implemented a new conveyor belt and standing platforms
at our Thisted factory to ensure correct working heights for each emplo-
yee. Additionally, we introduced new work rotations to minimise repe-
titive tasks and promote a variety of duties and working positions. For
production, we acquired new tools to assist with lifting in order to pro-
mote sustainable ergonomic health. All production facilities have been
reviewed to ensure appropriate working conditions and a safe work
environment.
In 2023, Mejerigaarden also reaped the benefits of ongoing efforts to
enhance the working environment. Building on these efforts, we have
established a comprehensive list of company policies that we aim to
activate and fulfill over the coming fiscal years. As these policies were
formulated during the 2023 fiscal year, Mejerigaarden has not yet seen
the results of the initiatives outlined below. However, we anticipate that
they will become increasingly evident throughout the coming year.
2023 also became the year when Mejerigaarden joined Dansk Industri’s
diversity pledge. This initiative encourages Mejerigaarden to commit
to creating a more inclusive workplace by implementing strategies that
promote equality, diversity, and a culture where all employees can thri-
ve, regardless of gender, age, ethnicity, or other personal backgrounds.
This commitment aims to enhance Mejerigaarden’s competitiveness
and contribute positively to society.
Newly formulated company policies to be implemented in 2024 and
2025:
1. SOCIAL RELATIONS
1.1 Combating Discrimination and Promoting Diversity
• Policy: We commit to creating a workplace free from
discrimination and to promoting diversity and inclusion
at all levels of our organisation.
• Actions: Implement and maintain a comprehensive equali-
ty policy, which includes guidelines for recruitment, promo-
tions, and employee treatment.
• Goal: Ensure that a greater amount of leadership positions
are held by women in the future as a result of natural attrition.
1.2 Community Engagement
• Policy: We support and actively engage in the communities
where we operate to promote sustainable development.
• Actions: Implement programs that support local initiatives,
education, and health projects.
MANAGEMENT’S REVIEW 5
• Goal: Allocate portions of our annual profits to community
projects, based on specific assessments of project scope.
1.3 Human Rights
• Policy: We respect and promote human rights in all our
activities and business relationships.
• Actions: Develop and implement a human rights policy,
including due diligence procedures and collaboration with
suppliers to ensure compliance.
• Goal: Ensure that all suppliers have signed our human rights
code by 2024.
2. PERSONNEL RELATIONS
2.1 Work Environment and Safety
• Policy: We prioritise safety and a healthy work environment
for all employees.
• Actions: Conduct regular safety training, implement health
and safety standards, and continuously evaluate workplace
safety conditions.
• Goal: Reduce workplace accidents by 50% by 2025.
2.2 Employee Development and Training
• Policy: We invest in our employees’ development and growth
through continuous education and training.
• Actions: Offer internal and external training programs,
mentorship, and career development plans.
• Goal: Ensure that all employees participate annually in training
and development activities, such as courses, webinars, etc.
2.3 Work-Life Balance
• Policy: We support our employees in achieving a healthy
balance between work and personal life.
• Actions: Implement flexible work arrangements, such as
flextime and the option to work from home.
• Goal: Increase employee satisfaction with work-life balance
by 20% from baseline being established in 2024.
2.4 Equality and Pay Transparency
• Policy: We ensure equal pay for equal work and transparency
in pay structures.
• Actions: Conduct regular pay reviews and publish pay data
to identify and address any pay disparities.
• Goal: Eliminate gender pay gaps by 2025.
2.5 Employee Involvement
• Policy: We promote a culture where employees can actively
participate in decision-making.
• Actions: Conduct regular employee surveys and feedback
sessions and establish employee councils.
• Goal: Increase employee engagement by 30% from baseline
being established in 2024.
These policies and goals are designed to create a responsible, fair,
and sustainable workplace that respects both social obligations and the
well-being of our employees.
6 MANAGEMENT’S REVIEW
ENVIRONMENT AND CLIMATE
Mejerigaarden A/S produces ice-cream products, which requires a sig-
nificant consumption of energy. The energy consumption is mainly used
for cooling, heating and freezing.
The actual energy consumption varies compared to the production
volume and product mix and, consequently, the determination of gross
production target figures is less relevant for the Company.
The energy consumption has developed as follows:
Both electricity and gas consumption reduced in comparison with 2022.
Mejerigaarden A/S continuously works on minimising its indirect en-
vironmental impact by selecting packaging types with the least possible
impact on the environment. Thus, sustainability, including the climate
impact, constitutes the Company’s primary strategy area. All packaging
materials use is FSC certified.
A few years ago, the Company entered a climate partnership with Dong
(Ørsted) and implemented an energy savings project under which feasi-
ble energy efficiency measures were introduced.
The Company’s wastewater is monitored and neutralised before it is
released to a purification plant, and waste from the production is sold
for biogas production to the extent possible.
HUMAN RIGHTS
Mejerigaarden A/S supports and respects internationally declared
human rights. We are actively working to ensure that all our employees
are treated equally and respectfully. We do not employ anyone below
the age of 15, and the age of all employees is verified through their civil
registration number. This is checked monthly, and no incidents was
discovered during 2023.
It is our ambition to promote diversity and to focus on employee invol-
vement and competence development, we do not accept differential
treatment of any kind nor threats suppression or harassment of any kind
among our employees or among suppliers.
Mejerigaarden A/S obtains its raw materials and packaging worldwide.
Through supply agreements and supplier cooperation as well as the use
of certified ingredients (UTZ, RSPO), we place specific requirements for
suppliers’ compliance with human rights as per UN conventions and the
ILO as well as for not using child labour.
MANAGEMENT’S REVIEW 7
Electricity Natural gas
2023 2022 2021 2023 2022 2021
KWH 4.864.833 5.408.269 5.471.092
M3 207.502 234.854 240.771
Per production
hourly wage
49,32 46,26 44,46 2,10 2,01 1,96
Production
hours
98.631 116.922 122.583
8 MANAGEMENT’S REVIEW
SUBSEQUENT EVENTS
No events materially affecting the assessment of the Annual Report
have occurred after the balance sheet date.
FINANCIAL HIGHLIGHTS
Seen over a five-year period, the development of the Group is descri-
bed by the following financial highlights:
MANAGEMENT’S REVIEW 9
2023
TDKK
2022
TDKK
2021
TDKK
2020
TDKK
2019
TDKK
Prot/loss
Revenue 520.725 498.091 488.287 492.150 427.942
Gross prot 247.367 235.667 265.937 266.873 213.441
Operating prot -16.736 -5.556 37.309 46.727 5.628
Prot/loss before nancial
income and expenses
-16.736 -5.556 37 309 46 727 5 628
Net nancial items -18.707 -4.756 -7.708 -13.170 -10.526
Net prot/loss for the year -29.886 -7.476 23.026 26.100 -5.656
Balance sheet
Balance sheet total 415.831 437.750 437.109 480.070 426.144
Equity 170.411 200.297 207.772 114.746 88.646
Cash ows
Cash ows from:
- operating activities 49.080 21.337 53.298 122.184 51.147
- investing activities -39.335 -15.315 -23.132 -15.040 -15.334
- including investment in
property, plant and equipment
-20.124 -21.486 -27.622 -15.606 -19.013
- nancing activities -10.059 -30.986 -94.662 -29.954 -35.489
Change in cash and cash equivalents for the year 314 -24.964 -64.495 77.190 325
-24.964 -24.964
Number of employees 332 344 338 324 439
Ratios
Gross margin 47,5% 47,4% 54,5% 54,2% 49.9%
Prot margin -3,2% -1,1% 7,6% 9,5% 1.3%
Return on assets -4,0% -1,3% 8,5% 9,7% 75.7%
Solvency ratio 41,0% 45,8% 47,5% 23,9% 20.8%
Return on equity -17,5% -5,1% 14,3% 25,7% -6.2%
FINANCIAL HIGHLIGHTS
With effect from 1 January 2020, Mejerigaarden A/S has been merged with the since 2017 wholly owned subsidiary Hjem-IS Danmark A/S. Comparative gures include the
total activity for the previous two independent units (except for 2016). For denitions, see under accounting policies.
10 MANAGEMENT’S REVIEW
2023
2022
2021
2020
2019
2018
MIO.
300
400
REVENUE
100
200
468
427,9
492,2
488,3
498,1
520,7
GROSS PROFIT
226,2
213,4
266,9
MIO.
50
100
150
200
250
265,9
235,7
247,4
MANAGEMENT’S REVIEW 11
RECORD YEAR FOR REVENUE PAVES
THE WAY FOR STRONG PROFITABILITY
DESPITE CHALLENGING YEAR
On October 9th 1933, Sigurd Laurids Sørensen laid the foundation for
what we now know as Mejerigaarden and Premier Is. In 2023, Mejeri-
gaarden celebrated its 90th birthday.
However, the ninetieth year was a challenging one for Mejerigaarden.
2023 started well with two good quarters; May and June in particular
were exceptionally good and among the best months in the company’s
history. We saw very satisfactory results with positive development and
stable growth.
Following an incredibly successful first half of the year, including some
of the company’s best months ever, Mejerigaarden dedicated most of
the latter part of the year to working on multiple growth projects that are
anticipated to yield significant results in 2024 and beyond.
Our off-trade business experienced significant growth in 2023. We
continuously monitor consumer purchasing habits and adapt to market
trends by providing high value in all product categories, including sticks,
cones, and multipacks.
We have observed intense competition in the market, with companies
striving to gain more market share through frequent and extensive cam-
paigning. While marketing activations are crucial, we strongly believe
that in the ice cream category, it is equally (if not more) important to
focus on maintaining high quality, enhancing the buying and consumpti-
on experience, and introducing appealing new products.
2023 also showed several positive signs. In the autumn, we replaced
one of our oldest production lines, Rollo. The machine was purchased
as a prototype and has been running for several decades, producing
more than one billion ice creams. The replacement is one of the largest
investments in Mejerigaarden’s recent history, and the new Rollo is
now running at full speed. This will boost our efficiency and is without a
doubt a confident investment in future production.
The 90th birthday also marked the end of the strategic period for ‘The
New Premier Is’, a period in which we made significant progress in optimi-
sing our systems, processes, and business operations to remove comple-
xity and ensure continued focus on the value-creating part of the busi-
ness. We have streamlined and trimmed the company by removing the
least profitable products, as well as simplifying our procurement structure.
As Mejerigaarden moves into a new development phase, focusing on
strong operational expertise and customer-centricity, we bid farewell to
former C-suite. Former General Manager spent four years as part of the
12 REPORT OF THE MANAGEMENT
Premier Is C-suite, first as CCO and later as CEO, but parties agreed that
a different skill set was required to lead the company into the next phase.
As we continue our way through 2024 and look to the future, we are
glad to say that we are in a favourable position. Mejerigaarden is built
on a solid foundation, and we have a dedicated and highly competent
team that will ensure our competitiveness in the coming years through
new technology and innovation. With our strategy and tactical plans, we
are well-equipped to both address challenges and embrace opportunities.
IMPORTANT STEPS TOWARDS
A MORE SUSTAINABLE BUSINESS
Since the founding of Premier Is in 1933, the goal has been to create
top-quality products, and that ambition still guides the further develop-
ment of the business. While we remain rooted in tradition, we are also
very much focused on the future.
As a company, we have a responsibility in how we treat our planet and
our local environment. By minimizing our environmental impact, com-
plying with strict environmental regulations, and increasing efciency
through reduced waste and energy efciency, we ensure a focus on
a more sustainable business approach. We are very aware that our
production is quite energy-intensive, with electricity and gas being the
major culprits. The same applies to our distribution, where we rely on
petrol and diesel. This is something we are working hard to improve.
In 2023, we continued our journey towards our climate footprint reduc-
tion goals across the entire value chain. Some of the related initiatives
REPORT OF THE MANAGEMENT 13
include efforts to inuence our top ten suppliers to reduce their CO2
emissions and work towards converting 50% of the vehicle eet from
diesel to renewable energy sources by 2030.
Premier Is has chosen a pragmatic approach to creating a greener busi-
ness based on four focus areas:
• Green energy
• Suppliers
• Energy-efcient production and operations
• Sustainable transport
Our climate goals have been validated by the Science Based Targets
Initiative (SBTI). SBTI is the standard and path that we, and many of our
customers and partners, have chosen to follow. We chose SBTI because
it is science-based and aligned with the Paris Agreement. We believe that,
in order to really make a difference, action needs to be taken throughout
the entire value chain, hence the involvement of suppliers in the plan.
EXCITING ICE CREAM NEWS
Every year, we introduce a range of new products, and in 2023, we wel-
comed innovations such as Bobl’is and scoop ice cream with marshmal-
lows. The work on these new products is a collaborative effort between
sales, product development, and production teams. Together, they delve
into the trends presented by suppliers to the product development team.
Sales gures for current products and feedback from our different custo-
mers also play a signicant role, as does the valuable input that our
sales representatives provide. We also draw inspiration from external
specialists such as trend researchers.
At Mejerigaarden, we are committed to continuous R&D work to ensure
that we remain at the forefront of the Danish ice cream industry. We stri-
ve to lead the market by providing a diverse selection of locally crafted,
innovatively styled products unmatched by our competitors.
MEJERIGAARDEN’S 90TH BIRTHDAY
In October, festivities were on the agenda as Mejerigaarden, our original
dairy, celebrated its 90th birthday. On October 9th 1933, Sigurd Laurids
Sørensen laid the foundation for what we now know as Mejerigaarden
and Premier Is.
Since its humble beginnings in 1933, Premier Is has been on quite a
journey – a journey of more than just ice cream production. Mejeri-
gaarden started as a traditional dairy with production of buttermilk and
butter. Later, the focus shifted towards ice cream, and as part of that
development, several companies were acquired. Subsequently, there
was large-scale production of feta cheese with signicant exports to the
Middle East. Mejerigaarden also launched Coca Cola in Denmark as a
distributor in its early days. In recent years, however, it’s in ice cream
that Mejerigaarden has excelled.
In connection with the dairy’s birthday, Jens Jørgen Sørensen, son of
founder Sigurd Laurids Sørensen and former CEO of the company, took
us back in time and shared his insight into the evolution that ‘Denmark’s
Ice Cream Dairy’ has gone through. The milestone also made headlines
in both local and industry media, and the 90th birthday celebration at
Store Torv in Thisted attracted large numbers of visitors.
14 REPORT OF THE MANAGEMENT
STATEMENT OF COMPREHENSIVE INCOME 15
Note 2023
DKK
2022
DKK
Revenue 5 520 725 000 498 091 141
Cost of goods sold 6 (273 357 518 ) (262 423 736 )
Gross prot 247 367 482 235 667 405
Selling expenses 7 (206 779 118 ) (201 510 798 )
Administrative expenses 8 (56 752 958 ) (42 408 909 )
Other operating income 9 (a) 448 644 1 292 781
Other gains / (loss), net 9 (b) 416 710 1 860 735
Other operating expenses 9 (c) (1 436 465 ) (457 245 )
Operating prot / (loss) (16 735 685 ) (5 556 031 )
Finance costs 10 (18 707 424 ) (4 755 810 )
Prot/ (loss) before income tax (35 443 129 ) (10 311 841 )
Deferred income tax 13 5 557 542 2 836 230
Prot/ (loss) for the year (29 885 587 ) (7 475 611 )
Other comprehensive income -
Total comprehensive prot/ (loss) for the
reporting year
(29 885 587 ) (7 475 611 )
16 STATEMENT OF FINANCIAL POSITION
Assets Note 31.12.2023
DKK
31.12.2022
DKK
Non-current assets
Intangible assets 16 164 363 361 155 996 055
Property, plant and equipment 17 142 019 177 143 906 134
Trade and other receivables 20 3 517 464 2 818 299
Investments in subsidiaries 18 - -
Total non-current assets: 309 900 002 302 720 488
Current assets
Inventories 19 75 639 602 102 292 501
Trade and other receivables 20 27 404 729 29 536 327
Cash and cash equivalents 21 2 886 689 3 201 117
Total current assets: 105 931 020 135 029 945
Total assets 415 831 022 437 750 433
Liabilities
Share capital 22 1 100 000 1 100 000
Share premium 22 69 999 991 69 999 991
Other reserves 617 488 617 488
Retained earnings 98 693 583 128 579 170
Total equity: 170 411 062 200 296 649
Non-current liabilities
Borrowings 23 82 634 229 88 628 309
Deferred tax liability 24 16 412 582 21 970 125
Trade and other liabilities 25 12 401 273 13 195 159
Total non-current liabilities: 111 448 084 123 793 593
Current liabilities
Borrowings 23 38 500 374 27 832 701
Trade and other payables 25 95 471 502 85 827 490
Total current liabilities: 133 971 876 113 660 191
Total liabilities: 245 419 960 237 453 784
Total equity and liabilities: 415 831 022 437 750 433
STATEMENT OF CHANGES IN EQUITY 17
Share capital Share premium Other reserves
Retained
earnings
Total
DKK DKK DKK DKK DKK
Balance as at 31.12.2021 1 100 000 69 999 991 617 488 136 054 781 207 772 260
Total comprehensive loss for the reporting year - - - (7 475 611 ) (7 475 611 )
Balance as at 31.12.2022 1 100 000 69 999 991 617 488 128 579 170 200 296 649
Total comprehensive loss for the reporting year - - - (29 885 587 ) (29 885 587 )
Balance as at 31.12.2023 1 100 000 69 999 991 617 488 98 693 583 170 441 062
18 STATEMENT OF CASH FLOWS
Note 2023
DKK
2022
DKK
Cash ows from operating activities
Prot/ (loss) before tax (35 443 129 ) (10 311 841 )
Adjustments for:
Depreciation of property, plant and equipment 17 32 308 011 32 119 818
Amortization of intangible assets 16 11 436 327 12 158 404
Interest expenses 10 4 259 737 3 298 743
Impairment of receivables 978 248 (182 006 )
Impairment of inventory (2 054 516 ) 3 421 935
Impairment of intangible assets - 209 286
(Gain) on disposal of non-current assets (416 710 ) (1 860 735 )
Adjustments for:
(Decrease) in inventories 28 707 415 (17 340 173 )
(Increase)/ decrease in trade and other receivables (677 816 ) 1 348 686
Increase/ (decrease) in trade and other payables 8 850 126 5 089 006
Cash generated from operations 47 947 693 27 951 124
Corporate income tax paid/ repayment received 1 132 000 (6 614 252 )
Net cash generated from operating activities 49 079 693 21 336 872
Cash ows from investing activities
Acquisition of tangible (20 202 509 ) (13 285 666 )
Acquisition of intangible assets (20 124 036 ) (8 200 715 )
Proceeds from sale of tangible assets and intangible assets 991 318 6 171 265
Net cash used in investing activities (39 335 227 ) (15 315 116 )
STATEMENT OF CASH FLOWS 19
Note 2023
DKK
2022
DKK
Cash ows from nancing activities
Borrowings received 103 287 086 70 047 148
Repayments of borrowings 23 (vii), 27 (iv) (92 982 508 ) (80 807 306 )
Interest paid 23 (vii) (2 030 635 ) (1 256 172 )
Lease liabilities with purchase option interest payments 23 (vii) (293 348 ) (365 534 )
Lease liabilities without purchase option interest repaid 23 (vii) (1 935 754 ) (1 848 796 )
Lease liabilities with purchase option payments 23 (vii) (3 541 371 ) (4 340 843 )
Lease liabilities without purchase option repaid 23 (vii) (12 562 365 ) (12 414 065 )
Net cash used in nancing activities (10 058 895 ) (30 985 568 )
Net (decrease) / increase in cash and cash equivalents (314 427 ) (24 963 812 )
Result of foreign exchange rate uctuations - 20
Cash and cash equivalents at beginning of the year 21 3 201 117 28 164 909
Cash and cash equivalents at end of the year 21 2 886 689 3 201 117
1. GENERAL INFORMATION
Mejerigaarden A/S is involved in production, wholesale and do-
or-step-delivery of ice-cream and related accessories.
The Company belongs to the ice-cream and dairy industry group that
is known under the name of Food Union. The only shareholder of the
Company is Food Union Holding (CY) Company Limited, incorporated
in Cyprus. Food Union Holding (CY) Company Limited prepares conso-
lidated nancial statements for the Food Union group (hereinafter “the
FU Group”) that are available on the company’s registered address.
GROUP STRUCTURE DESCRIPTION
Top Level:
1. PAGAC Farm Holding I Limited (BVI):
This company is at the top of the hierarchy and owns
100% of Food Union (EE) Limited.
Intermediate Level:
2. Food Union (EE) Limited (BVI):
Owns 100% of Food Union Holding (CY)
Company Limited.
Lower Level:
3. Food Union Holding (CY) Company Limited (Cyprus):
Has several subsidiaries that are fully or almost fully owned:
- Food Union Management SIA (Latvia): Owned 100%
- Mejerigaarden A/S (Denmark): Owned 100%
- Fråst ApS (Denmark): Owned 100% subsidiary
- Premia Tallinna Külmhoone AS (Estonia): Owned 100%
- Premia FFL AS (Latvia): Owned 100% subsidiary
- AB Premia KPC (Lithuania): Owned 100% subsidiary
- Rigas Piena Kombinats AS (Latvia): Owned 98.24%
- Valmieras Piens AS (Latvia): Owned 94.17% subsidiary
- Alpin 57 Lux S.R.L. (Romania): Owned 100%
- ISBJØRN IS Holding AS (Norway): Owned 90%
- ISBJØRN IS AS (Norway) 100% subsidiary
- Den Norske Isbilen AS (Norway) 100% subsidiary
Side Connections:
4. Reinkind II AS (Norway):
Holds a 10% ownership interest in ISBJØRN IS
Holding AS (Norway).
This chart below illustrates the group structure with PAGAC Farm
Holding I Limited as the top parent company, which through several
intermediate holding companies owns a range of subsidiaries in various
countries, including Denmark, Estonia, Latvia, Lithuania, Romania, and
Norway. This shows a broad geographical diversication of companies
under the Food Union Group.
Mejerigaarden and Fråst description:
• Food Union Holding (CY) Company Limited is the
parent company in Cyprus, which has full control over
Mejerigaarden A/S, based in Denmark.
• Mejerigaarden A/S functions as an intermediate owner
and has full control over Fråst ApS, making Fråst ApS a
subsidiary of Mejerigaarden A/S.
Therefore, the ownership structure is:
• Food Union Holding (CY) Company Limited (parent company)
• Mejerigaarden A/S (subsidiary)
• Fråst ApS (subsidiary of Mejerigaarden A/S)
20 NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS 21
2. SUMMARY OF
SIGNIFICANT ACCOUNTING POLICIES
The principal accounting policies applied in the preparation of these
nancial statements are set out below. These policies have been consi-
stently applied to all the years presented, unless otherwise stated.
BASIS OF PREPARATION
The nancial statements of Mejerigaarden A/S are prepared in accor-
dance with IFRS Accounting Standards and as adopted by European
Union (EU) and additional requirements in the Danish Financial State-
ments Act, applying to large enterprises of reporting class C.
The preparation of the nancial statements in conformity with IFRS
requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the
IFRS accounting policies. The areas involving a higher degree of jud-
gement or complexity, or areas where assumptions and estimates are
signicant to the nancial statements are disclosed in Note 4.
The nancial statements are presented in Danish krone, which equals
functional currency DKK (DKK). Certain monetary amounts, percentages
and other gures included in this report are subject to rounding adjust-
ments. On occasion, therefore, amounts shown in tables may not be the
arithmetic accumulation of the gures that precede them, and gures
expressed as percentages in the text and in tables may not total 100
percent. Changes for periods between monetary amounts are calculated
based on the amounts in ore coin and then rounded to the nearest coin.
The reporting period for the nancial statements is from 1 January 2023
until 31 December 2023. Pursuant to IFRS10, no consolidated nancial
statements have been prepared. The nancial statements of Mejeri-
gaarden A/S and subsidiaries are included in the consolidated nancial
statements of Food Union Holding (CY) Company Limited, ΗΕ 276546,
Themistokli Dervi 5 Nicosia 1066, Cyprus.
ADOPTION OF NEW AND REVISED IFRS AND INTERPRETATIONS
At the time of publishing this annual report, there are several new or
revised standards and interpretations that have not yet come into effect
and therefore have not been incorporated into the annual report. The
new standards and interpretations will be implemented as they become
mandatory. None of the new standards or interpretations are expected
to have a signicant impact on the nancial reporting for the Group and
the Parent Company.
FOREIGN CURRENCY TRANSLATION
(i) Functional and presentation currency
Items included in the nancial statements are measured using the cur-
rency of the primary economic environment in which the entity operates
(“the functional currency”). The nancial statements are presented in
Danish krona (DKK), which is the Company’s presentation currency.
(ii) Transactions and balances
Foreign currency transactions are translated into the functional currency
using the exchange rates prevailing at the dates of the transactions or
valuation where items are re measured. Foreign exchange gains and
losses resulting from the settlement of such transactions and from the
translation at year end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognized in prot or loss.
REVENUE RECOGNITION
Revenue is recognized based on the price specied in the contract, net of
value added taxes, volume rebates granted, returns and discounts.
22 NOTES TO THE FINANCIAL STATEMENTS
Accumulated experience is used to estimate and provide for the discounts,
using the expected value method, and revenue is only recognized to the
extent that it is highly probable that a signicant reversal will not occur.
The Company does not expect to have any contracts where the period
between the transfer of the goods or services to the customer and payment
by the customer exceeds one year. Consequently, the Company does not
adjust any of the transaction prices for the time value of money.
Revenues earned by the Company are recognized on the following bases:
(i) Sales of goods and services
Sales are recognized when control of the products has transferred to
the customer, which is usually when the Company has sold or delivered
goods to the customer, the customer has accepted the goods and colle-
ctability of the related receivable is reasonably assured.
A receivable is recognized when the goods are delivered as this is the
point in time that the consideration is unconditional because only the
passage of time is required before the payment is due. For private and
public customers, we typically operate with different terms: current week
plus eight days for private customers, and net thirty days for public
customers.
Sales of services are recognized in the accounting period in which the
services are rendered. Revenue from services includes delivery fees,
sales of cream mix, pallets, and packaging, which account for only a
small fraction of the total revenue.
Major part of services relates to sale of goods and accordingly service
revenues are recognized at a point in time in the same patter as the
revenue from sale of goods is recognized.
CURRENT AND DEFERRED INCOME TAX
The tax expense for the period comprises current and deferred tax.
Tax is recognized in prot or loss, except to the extent that it relates to
items recognized in other comprehensive income or directly in equity. In
this case, the tax is also recognized in other comprehensive income or
directly in equity, respectively.
The current income tax is calculated on the basis of the tax laws enac-
ted or substantively enacted at the balance sheet date in Denmark.
Management periodically evaluates positions taken in tax returns with
respect to situations in which applicable tax regulation is subject to
interpretation. If applicable tax regulation is subject to interpretation, it
establishes provision where appropriate on the basis of amounts expec-
ted to be paid to the tax authorities.
Deferred income tax is recognized using the liability method, on tempo-
rary differences arising between the tax bases of assets and liabilities
and their carrying amounts in the nancial statements.
However, deferred income tax is not accounted for if it arises from initial
recognition of an asset or liability in a transaction other than a business
combination that at the time of transaction affects neither accounting
nor taxable prot / loss. Deferred income tax is determined using tax
rates and laws that have been enacted or substantively enacted by the
balance sheet date and are expected to apply when the related deferred
income tax asset is realized, or the deferred income tax liability is settled.
Deferred income tax assets are recognized only to the extent that it is
probable that future taxable prot will be available against which the
temporary differences can be utilized.
Deferred income tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets against current tax
NOTES TO THE FINANCIAL STATEMENTS 23
liabilities and when the deferred income taxes assets and liabilities re-
late to income taxes levied by the same taxation authority on either the
same taxable entity or different taxable entities where there is an intenti-
on to settle the balances on a net basis.
PROPERTY, PLANT AND EQUIPMENT
Property, plant, and equipment are stated at historical cost less depreci-
ation and impairment, if any. Historical cost includes expenditure that is
directly attributable to the acquisition of property, plant, and equipment.
Land is not depreciated. Depreciation on other assets is calculated
using the straight-line method to allocate their cost to their residual
values, over their estimated useful lives. The annual depreciation rates
are as follows:
Buildings 10-20 years
Equipment and machinery 6-15 years
Other xed assets and motor vehicles 5-10 years
Other xed assets consist of softice machines and freezers. The assets’
residual values and useful lives are reviewed, and adjusted if appropriate,
at each statement of nancial position date.
Expenditure for repairs and maintenance of property, plant and equip-
ment is charged to the prot or loss of the year in which they were incur-
red. The cost of major renovations and other subsequent expenditure are
included in the carrying amount of the asset or recognized as a separate
asset, as appropriate, only when it is probable that future economic bene-
ts associated with the item will ow to the Company and the cost of the
item can be measured reliably.
Items of property, plant and equipment are derecognized on disposal or
when no future economic benets are expected from their use or dis-
posal. Gains and losses on disposal of property, plant and equipment are
determined by comparing proceeds with carrying amount and are recog-
nized in “other gains/(losses) – net” in prot or loss.
RIGHT-TO-USE ASSETS AND LEASES
The Company leases depots, equipment, trucks, and cars. Rental
contracts are typically made for periods of 1 to 10 years, but may have
extension options, especially in relation to real estate. Lease terms are
negotiated on individual basis and contain a wide range of different
terms and conditions.
Lease liabilities are measured at the present value of the remaining
lease payments, considering extension options, where reasonably
expected to be used. Associated Right-to-use assets are measured at
the amount equal to the lease liability.
Right-to-use assets are generally depreciated over the shorter of the
asset’s useful life and the lease term on a straight-line basis. If the
Company is reasonably certain to exercise a purchase option, the Right-
to-use asset is depreciated over the underlying asset’s useful life.
As key inputs in calculating present value of lease payments the mana-
gement is required to assess the likelihood of using the agreement exten-
sion option as well as establish the discount rate implicit in the lease.
In determining the lease term, the Company considers all facts and
circumstances that create an economic incentive to exercise an exten-
sion option. Extension options are included in the lease term if the lease
is reasonably certain to be extended.
For discounting the incremental borrowing rate is used, being the esti-
mated rate that the Company would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.
24 NOTES TO THE FINANCIAL STATEMENTS
Payments associated with short-term leases and leases of low-value
assets are recognised on a straight-line basis as an expense in the
income statement. Short-term leases are leases with a lease term of 12
months or less without a purchase option. Low-value assets comprise
assets below USD 5 000 equivalent in euro. Variable lease payments
linked to actual usage, ination or performance are not included in the
base of calculation of Right-to-use asset, but instead, in every period
when incurred are recognized directly in Prot or loss statement.
Lease liabilities and related assets are remeasured if there is a modi-
cation, a change in the lease term, a change in the lease payments or a
change in assessment of an option to purchase the underlying asset at
the end of the lease period.
GOODWILL
Goodwill arises on the acquisition of subsidiaries and represents the ex-
cess of the consideration transferred over the Company’s interest in net fair
value of the net identiable assets, liabilities, and contingent liabilities of the
acquiree and the fair value of the non-controlling interest in the acquiree.
For the purpose of impairment testing, goodwill acquired in a business
combination is allocated to each of the CGUs, or groups of CGUs, that is
expected to benet from the synergies of the combination. Each unit or
group of units to which the goodwill is allocated represents the lowest level
within the entity at which the goodwill is monitored for internal manage-
ment purposes.
Goodwill impairment reviews are undertaken annually or more frequently
if events or changes in circumstances indicate a potential impairment. The
carrying value of goodwill is compared to the recoverable amount, which is
the higher of value in use and the fair value less costs to sell. Any impair-
ment is recognized immediately as an expense and is not subsequently
reversed. See also principles for “Impairment of non-nancial assets”.
TRADEMARKS, LICENSES, PATENTS
Separately acquired trademarks and licenses are shown at historical
cost. Trademarks and licenses acquired in a business combination are
recognized at fair value at the acquisition date.
Trademarks and licenses with a nite useful life are carried at cost less
accumulated amortization and they are tested for impairment where
there is an indication of impairment.
Amortization is calculated using the straight-line method to allocate the
cost of trademarks, brands, licenses (other than software) over their
estimated useful lives as follows:
Trademarks and brands 20 years
Licenses and patents (other than software) 3-10 years
The useful lives of trademarks have been determined based on mana-
gement estimates of the expected length of the cash generating period
by these assets. Useful lives of software license have been determined
on the basis of duration of right of use of assets.
The management estimates that umbrella brands have indenite useful
lives since the cash ows generated by these intangible xed assets have
indenite future. See also principles for “Impairment of non-nancial assets”.
SOFTWARE
Costs that are directly associated with identiable and unique computer
software products controlled by the Company and that will probably gene-
rate economic benets exceeding costs beyond one year are recognized
as intangible assets. Subsequently computer software is carried at cost
less any accumulated amortization and any accumulated impairment los-
ses. Expenditure, which enhances or extends the performance of compu-
NOTES TO THE FINANCIAL STATEMENTS 25
ter software programs beyond their original specications is recognized as
a capital improvement and added to the original cost of the computer soft-
ware. Costs associated with maintenance of computer software programs
are charged to the prot or loss of the year in which they were incurred.
Computer software costs are amortized using the straight-line method
over their estimated useful lives, not exceeding a period of ve years.
Amortization commences when the computer software is available for
use and is included within administrative expenses.
IMPAIRMENT OF NON-FINANCIAL ASSETS
Assets that have an indenite useful life or intangible assets not rea-
dy to use, are not subject to amortization and are tested annually for
impairment. Assets that are subject to depreciation or amortization are
reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An impair-
ment loss is recognized for the amount by which the asset’s carrying
amount exceeds its recoverable amount. The recoverable amount is the
higher of an asset’s fair value less costs to sell and value in use. For the
purposes of assessing impairment, assets are grouped at the lowest le-
vels for which there are separately identiable cash ows (cash genera-
ting units). Non-nancial assets, other than goodwill, that have suffered
an impairment are reviewed for possible reversal of the impairment at
each reporting date.
INVENTORIES
Inventories are stated at the lower of cost and net realizable value.
Cost is determined using the rst in, rst out (FIFO) method. The cost
of nished goods and work in progress comprises raw materials, direct
labour, other direct costs and related production overheads (based on
normal operating capacity). It excludes borrowing costs. Net realizable
value is the estimated selling price in the ordinary course of business
less applicable variable selling expenses.
When the net realizable value of inventories is lower than its cost, provisi-
ons are created to reduce the value of inventories to its net realizable value.
TRADE RECEIVABLES
Trade receivables are amounts due from customers for merchandise
sold or services performed in the ordinary course of business. If collec-
tion is expected in one year or less (or in the normal operating cycle of
the business if longer), they are classied as current assets. If not, they
are presented as non-current assets. Trade receivables are recognized
initially at fair value and subsequently measured at amortized cost. Re-
fer to accounting policy on Financial assets for further details.
FACTORING
Factoring is the transfer (sale) of receivables, whereby depending on
the type of the factoring contract the buyer has the right to sell the
transferred receivable back to the seller within a certain time period
(factoring with recourse) or there is no right of resale back to the seller
and all the risks and benets associated with the receivable are trans-
ferred from seller to purchaser (factoring without recourse).
If the seller of the receivable retains the repurchase obligation, the
transaction is recognised as a nancing transaction (i.e. as a loan with
the receivable as a collateral) and not as a sale. The receivable is not
considered as sold as a result of factoring, but it remains in the balance
sheet until the receivable is collected or the recourse right has expired.
The related liability is recorded similarly to other borrowings.
If there is no repurchase obligation and the control over the receivable
and the related risks and rewards of the ownership are transferred to
26 NOTES TO THE FINANCIAL STATEMENTS
the buyer, the transaction is recognised as a sale of the receivable.
The related expense is recognised as a nance cost (similarly to inte-
rest expense) or as an impairment loss of receivables, depending on
whether the purpose of the transaction was to manage the cash ows
or to manage credit risk.
SHARE CAPITAL
Ordinary shares are classied as equity. Incremental costs directly attribu-
table to the issue of new shares are shown in equity as a deduction, net of
tax, from the proceeds.
CASH AND CASH EQUIVALENTS
In the statement of cash ows, cash and cash equivalents include cash
in hand, deposits held at call with banks with original maturity of three
months or less. Bank overdrafts which are used as nancing tools, are
presented under nancing cash ows and do not comprise part of cash
and cash equivalents.
DIVIDEND
Dividend distribution proposed by Management for the year is disclosed
as a separate equity item.
EMPLOYEE BENEFITS
Employee benets include payroll payments, holiday and pension re-
servation and provisions. The are no pensions obligations to employees
when paid to local authorities.
BORROWINGS
Borrowings are recognized initially at fair value, net of transaction costs
incurred. Borrowings are subsequently carried at amortized cost. Any dif-
ference between the proceeds (net of transaction costs) and the redemp-
tion value is recognized in prot or loss over the period of the borrowings,
using the effective interest method, unless they are directly attributable to
the acquisition, construction or production of a qualifying asset, in which
case they are capitalized as part of the cost of that asset.
Fees paid on the establishment of loan facilities are recognized as transa-
ction costs of the loan to the extent that it is probable that some or all of
the facility will be drawn down. In this case, the fee is deferred until the
draw down occurs. To the extent there is no evidence that it is probable
that some or all of the facility will be drawn down, the fee is capitalized as
a prepayment (for liquidity services) and amortized over the period of the
facility to which it relates. All gains or losses resulting from the modica-
tions of borrowings that did not result in de-recognition are recognised in
prot or loss.
Borrowing costs are interest and other costs that the Company incurs in
connection with the borrowing of funds, including interest on borrowings,
amortization of discounts or premium relating to borrowings, amortization
of ancillary costs incurred in connection with the arrangement of borrow-
ings, lease charges and exchange differences arising from foreign cur-
rency borrowings to the extent that they are regarded as an adjustment to
interest costs.
Borrowings are classied as current liabilities, unless the Company has
an unconditional right to defer settlement of the liability for at least twelve
months after the balance sheet date.
TRADE PAYABLES
Trade payables are obligations to pay for goods or services that have
been acquired in the ordinary course of business from suppliers. Ac-
counts payable are classied as current liabilities if payment is due
NOTES TO THE FINANCIAL STATEMENTS 27
within one year or less (or in the normal operating cycle of the business
if longer). If not, they are presented as non-current liabilities.
Trade payables are recognized initially at fair value and subsequently
measured at amortized cost using the effective interest method.
INVESTMENTS IN SUBSIDIARIES
A subsidiary is an entity over which the Company has control. The Com-
pany controls an entity when it is exposed to, or has rights to, variable
returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity. Investments in subsi-
diaries are carried at cost and are remeasured annually to the lower of
their carrying amount and fair value less costs to sell.
FINANCIAL ASSETS
Classication
The Company classies its nancial assets in the following measure-
ment categories: those to be measured at amortised cost and those
at fair value through prot and loss. The classication and subsequent
measurement of debt nancial assets depends on: (i) the Company’s
business model for managing the related assets portfolio and (ii) the
cash ow characteristics of the asset. On initial recognition, the Com-
pany may irrevocably designate a debt nancial asset that otherwise
meets the requirements to be measured at amortized cost or at FVOCI
at FVTPL if doing so eliminates or signicantly reduces an accounting
mismatch that would otherwise arise. The company does not have any
nancial assets at FVTPL or FVOCI.
Recognition and derecognition
All purchases and sales of nancial assets that require delivery within
the time frame established by regulation or market convention (“regular
way” purchases and sales) are recorded at trade date, which is the date
when the Company commits to deliver a nancial instrument. All other
purchases and sales are recognized when the entity becomes a party to
the contractual provisions of the instrument. Financial assets are dere-
cognised when the rights to receive cash ows from the nancial assets
have expired or have been transferred and the Company has transfer-
red substantially all the risks and rewards of ownership.
Measurement
At initial recognition, the Company measures a nancial asset at its fair
value plus, transaction costs that are directly attributable to the acquisition
of the nancial asset. Fair value at initial recognition is best evidenced by
the transaction price. A gain or loss on initial recognition is only recorded if
there is a difference between fair value and transaction price which can be
evidenced by other observable current market transactions in the same
instrument or by a valuation technique whose inputs include only data
from observable markets.
Impairment – credit loss allowance for expected credit losses (ECL)
The Company assesses on a forward-looking basis the ECL for debt in-
struments (including loans) measured at amortised cost and FVOCI and
with the exposure arising from loan commitments and nancial guaran-
tee contracts. The Company measures ECL and recognises credit loss
allowance at each reporting date. The measurement of ECL reects:
(i) an unbiased and probability weighted amount that is determined by
evaluating a range of possible outcomes, (ii) time value of money and
(iii) all reasonable and supportable information that is available without
undue cost and effort at the end of each reporting period about past
events, current conditions and forecasts of future conditions.
The carrying amount of the nancial assets is reduced through the use
of an allowance account, and the amount of the loss is recognized in
the income statement within “net impairment losses on nancial assets”.
28 NOTES TO THE FINANCIAL STATEMENTS
Debt instruments measured at amortised cost are presented in the
balance sheet net of the allowance for ECL. For loan commitments and
nancial guarantee contracts, a separate provision for ECL is recogni-
sed as a liability in the balance sheet. For debt instruments at FVOCI,
an allowance for ECL is recognised in prot or loss and it affects fair
value gains or losses recognised in OCI rather than the carrying amount
of those instruments.
Expected losses are recognized and measured according to one of two
approaches: general approach or simplied approach. For trade recei-
vables including trade receivables with a signicant nancing compo-
nent and contract assets the Company applies the simplied approach
permitted by IFRS 9, which uses lifetime expected losses to be recogni-
zed from initial recognition of the nancial assets.
Modication
The Company sometimes renegotiates or otherwise modies the contra-
ctual terms of the nancial assets. The Company assesses whether the
modication of contractual cash ows is substantial considering, among
other, the following factors: signicant change in interest rate, change in
the currency denomination, new collateral or credit enhancement that
signicantly affects the credit risk associated with the asset or a signi-
cant extension of a loan when the borrower is not in nancial difculties.
If the modied terms are substantially different, the rights to cash ows
from the original asset expire and the Company derecognises the original
nancial asset and recognises a new asset at its fair value. The date of
renegotiation is considered to be the date of initial recognition for subse-
quent impairment calculation purposes, including determining whether a
SICR has occurred. The Company also assesses whether the new loan or
debt instrument meets the SPPI criterion. Any difference between the car-
rying amount of the original asset derecognised and fair value of the new
substantially modied asset is recognised in prot or loss, unless the sub-
stance of the difference is attributed to a capital transaction with owners.
In a situation where the renegotiation was driven by nancial difcul-
ties of the counterparty and inability to make the originally agreed
payments, the Company compares the original and revised expected
cash ows to assets whether the risks and rewards of the asset are
substantially different as a result of the contractual modication. If the
risks and rewards do not change, the modied asset is not substantially
different from the original asset and the modication does not result in
derecognition. The Company recalculates the gross carrying amount by
discounting the modied contractual cash ows by the original effective
interest rate and recognises a modication gain or loss in prot or loss.
FINANCIAL ASSETS AT AMORTIZED COST
These amounts generally arise from transactions outside the usual opera-
ting activities of the Company. These are held with the objective to collect
their contractual cash ows and their cash ows represent solely pay-
ments of principal and interest. Accordingly, these are measured at amorti-
zed cost using the effective interest method, less provision for impairment.
Financial assets at amortized cost are classied as current assets if they
are due within one year or less (or in the normal operating cycle of the
business if longer). If not, they are presented as non-current assets.
FINANCIAL LIABILITIES
All nancial liabilities (trade payables, other short and long-term liabilities,
borrowings) are initially recognised at their fair value, less any transaction
costs. They are subsequently recognised at amortised cost, using the effe-
ctive interest rate method.
The Company classies liabilities as non-current or current depending
on the rights that exist at the end of the reporting period. Liabilities are
NOTES TO THE FINANCIAL STATEMENTS 29
non-current if the entity has a substantive right, at the end of the reporting
period, to defer settlement for at least twelve months. Management’s expecta-
tions whether they will subsequently exercise the right to defer settlement do
not affect classication of liabilities. The right to defer only exists if the entity
complies with any relevant conditions as of the end of the reporting period.
FINANCIAL RATIO
Gross margin = Gross prot / Revenue * 100
Prot margin = Prot/loss before nancial income and expenses / Revenue *
100
Return on assets = Prot/loss before nancial income and expense / Balance
sheet total * 100
Solvency ratio = Equity / Balance sheet total * 100
Return on Equity = Net prot/loss for the year / Equity * 100
3. FINANCIAL RISK MANAGEMENT
FINANCIAL RISK FACTORS
The Company’s activities expose it to a variety of nancial risks: market
risk (including foreign exchange risk, fair value interest rate risk and cash
ow interest rate risk), credit risk and liquidity risk. The Company’s risk
management program focuses on the unpredictability of nancial markets
and seeks to minimize potential adverse effects on the Company’s nanci-
al performance.
MARKET RISK
Currency/Foreign exchange risk
Foreign exchange risk arises when future commercial transactions or
recognized assets or liabilities are denominated in a currency that is not
the functional currency of the Company. Majority of all Company’s nancial
assets and liabilities are in DKK, while part of borrowings is also in EUR.
Since DKK is pegged to EUR, the management considers that the Com-
pany is not exposed to signicant foreign exchange risk due to EUR.
The Company has not used nancial instruments to protect itself against
possible currency risks that may occur in the future in business transac-
tions, assets and liabilities in foreign currencies. Income and expenses
from transactions made in foreign currencies are recognised under other
operating income/expense or nancial income/expense in “Gain/loss from
change of exchange rate”.
Cash ow and fair value interest rate risk
The Company’s interest rate risk arises from long term borrowings. Bor-
rowings issued at variable rates expose the Company to cash ow interest
rate risk. Borrowings issued at xed rates expose the Company to fair
value interest rate risk. As at 31 December 2023 and 31 December 2022,
the Company’s borrowings have variable interest rates. The Company’s
management monitors the interest rate uctuations on a continuous basis
and acts accordingly.
CREDIT RISK
Credit risk arises from cash and cash equivalents, deposits with banks and
nancial institutions, as well as credit exposures to wholesale and retail custo-
mers, including outstanding receivables and committed transactions.
The Company’s cash and cash equivalents have been invested in secure
nancial institutions. The Company manages its credit risk by continuous-
ly assessing the credit history of its customers and setting credit terms
individually for each client. Individual risk limits are set based on internal
ratings in accordance with limits set by the management. The utilization of
credit limits is regularly monitored. In addition, the Company continuously
30 NOTES TO THE FINANCIAL STATEMENTS
monitors accounts receivable balances to minimize appearance of bad
debts. Refer to Note 15 for further disclosure on credit risk.
To minimize credit risk, solvency of a potential contractual partner is
assessed. Contracts for purchase and sale of products are concluded
with all contractual partners, and a payment is granted only to reliable
partners. If possible, the Company uses factoring, without recourse as
an additional measure to manage credit risk. No credit limits were ex-
ceeded during the reporting period, and management does not expect
any losses from non-performance by these counterparties.
LIQUIDITY RISK
The Company manages its liquidity risk by monitoring the changes in
working capital and by ensuring adequate funding. Based on the Com-
pany’s cash management principle, the Company’s cash is accumulated
in dedicated bank accounts.
Risk analysis and designing of risk management plans are conducted at
the top management level. The Company’s liquidity risk policy is based on
a conservative approach whose main objective is to secure the safeguar-
ding of the cash ows generated from the operations to ensure sufcient
liquidity enabling timely settlement of the liabilities undertaken.
The table below analyses the Company’s non-derivative nancial liabilities
into relevant maturity groupings based on the remaining period at the ba-
lance sheet date to the contractual maturity date. The amounts disclosed
in the table are the contractual undiscounted cash ows for borrowings.
Borrowings, DKK
(ex. lease liabilities)
Less than
3 months
Less than
1 year
Between 1
and 5 years
Over 5
years
Total
31 December 2023 21 951 756 - - - 21 951 756
31 December 2022 11 880 122 - - - 11 880 122
All carrying balances of trade and other payables approximate their fair
values. For information on lease liabilities refer to Note 22 (viii).
(ii) Capital risk management
The Company’s objectives when managing capital are to safeguard the
Company’s ability to continue as a going concern in order to provide re-
turns for shareholders and benets for other stakeholders and to main-
tain an optimal capital structure to reduce the cost of capital. In order to
maintain or adjust the capital structure, the Company may adjust divi-
dends paid to shareholders, return capital to shareholders, issue new
shares or sell assets to reduce debt.
The capital as dened by management at 31 December 2023 and 2022
consists of total equity of the Company plus net debt of the Company,
as shown on the face of the balance sheet.
The gearing ratios on 31 December 2023 and 2022 were as follows:
31.12.2023
DKK
31.12.2022
DKK
Total borrowings (Note 23) 121 134 603 116 461 010
Less: Cash and cash
equivalents (Note 21)
(2 886 689) (3 201 117)
Net debt 118 247 914 113 259 893
Total equity 170 441 062 200 296 649
Total capital as
dened by management
288 658 976 313 556 542
Gearing ratio 41% 36%
The company has a credit line agreement for a total limit of DKK 50.0
million with oating interest rate applied to drawn amount.
NOTES TO THE FINANCIAL STATEMENTS 31
The bank facility is up to re-negotioation at latest 1 October 2024. Food
Union Holding (CY) Company Limited has issued an irrevocably and
unconditionally guarantee to provide Mejerigaarden A/S with sufcient
liquidity, so that Mejerigaarden at any times has sufcient liquidity to
meet its current and future liabilities as they fall due.
Based on above the management assess Mejerigaarden A/S has suf-
cient cash resources to carry out the planned activities for 2024.
Under the terms of the FU Group’s borrowing facilities, the FU Group
is required to comply to certain nancial and non-nancial covenants.
Please refer to Note 23 (vi).
(iii) Fair value estimation
The company has no assets or liabilities measured at fair value.
4. CRITICAL ACCOUNTING ESTIMATES,
JUDGEMENTS AND ASSUMPTIONS
Estimates and judgements are continually evaluated and are based on
historical experience and other factors, including expectations of future
events that are believed to be reasonable under the circumstances. The
Company makes estimates and assumptions concerning the future.
The resulting accounting estimates will, by denition, seldom equal the
related actual results. The estimates and assumptions that have a sig-
nicant risk of causing a material adjustment to the carrying amounts of
assets and liabilities within the next nancial year are discussed below.
• Impairment of goodwill
The Company tests annually whether goodwill has suffered any impair-
ment, in accordance with the accounting policy stated in Note 2. The
recoverable amount of cash generating units has been determined ba-
sed on value in use calculations. These calculations require the use of
estimates as disclosed in Note 16. As at 31 December 2023 and 2022
the management concluded that no impairment charge is required.
• Leases
As key inputs in calculating present value of lease payments the manage-
ment is required to assess the likelihood of using the agreement extensi-
on option as well as establish the discount rate implicit in the lease.
In determining the lease term, the Company considers all facts and
circumstances that create an economic incentive to exercise an extensi-
on option. Extension options are included in the lease term if the lease is
reasonably certain to be extended.
For discounting the incremental borrowing rate is used, being the estima-
ted rate that the Company would have to pay to borrow the funds neces-
sary to obtain an asset of similar value in a similar economic environment
with similar terms and conditions.
Lease liabilities and related assets are remeasured if there is a modi-
cation, a change in the lease term, a change in the lease payments or a
change in assessment of an option to purchase the underlying asset at
the end of the lease period.
32 NOTES TO THE FINANCIAL STATEMENTS
NOTES TO THE FINANCIAL STATEMENTS 33
5. REVENUE
2023
DKK
2022
DKK
Revenue by operating activities
Sales of goods 518 439 115 496 537 365
Other services 2 285 885 1 553 776
520 725 000 498 091 141
Sales of goods by product type
Ice cream 506 518 173 492 529 768
Frozen food 8 764 084
Other (ice-cream accessories) 3 156 858 4 007 597
518 439 115 496 537 365
Revenue by geographical area
Denmark 501 374 720 480 352 824
Norway 12 680 122 10 797 959
Sweden 4 144 339 3 476 244
Germany 1 983 728 2 060 897
Romania 286 014 -
Poland 134 109 179 803
Latvia 121 968 213 310
Singapore - 103 732
Taiwan - 891 239
Hong-Kong - 15 133
520 725 000 498 091 141
6. COST OF GOODS SOLD
2023
DKK
2022
DKK
Materials and goods for sale 216 037 280 201 049 337
Salary expenses 37 973 106 42 233 266
Machinery repair and maintenance 8 447 797 9 085 531
Depreciation 5 667 825 5 146 964
Social and pensions contributions 4 372 277 4 080 783
Variable and low value rent expenses 54 524 13 935
Other production costs 804 709 813 920
273 357 518 262 423 736
34 NOTES TO THE FINANCIAL STATEMENTS
7. SELLING EXPENSES
2023
DKK
2022
DKK
Salary expenses 103 320 835 99 599 729
Depreciation 25 902 220 26 263 364
Transport and logistics expenses 23 532 033 22 060 120
Marketing and promotion expenses 14 980 464 16 164 052
Amortization 9 275 394 9 907 941
Repair and maintenance 9 085 698 7 262 619
Social and pensions contributions 8 993 611 8 066 659
Impairment of receivables; receivables written off 2 377 645 172 018
Fuel, power, and utilities 2 245 326 4 169 403
Traveling expenses
947 160 1 109 489
Variable and low value rent expenses
769 918 28 819
Other selling and marketing expenses
5 348 814 6 706 585
206 779 118 201 510 798
8. ADMINISTRATIVE EXPENSES
2023
DKK
2022
DKK
Salary expenses 23 721 082 19 365 518
Social and pensions contributions 3 809 070 3 965 440
Professional fees and services 14 321 811 5 494 301
Depreciation 737 965 709 491
Amortization 2 160 933 2 250 463
Other administrative costs 12 002 097 10 623 696
56 752 958 42 408 909
The professional fees stated above include tDKK 584 (2022: tDKK 375) auditor’s remuneration and tDKK 148 (2022: DKK nil) fee for tax consul-
tancy and other services from the statutory audit rm.
NOTES TO THE FINANCIAL STATEMENTS 35
9. OTHER OPERATING INCOME AND EXPENSES
2023
DKK
2022
DKK
9 (a) Other operating income
Interest income (loans to related parties; Note 27(iii)) - -
Other nance income 21 850 70 377
Other operating income 315 404 1 222 404
337 254 1 292 781
9 (b) Other gains/ (losses), net
(Loss) / gain from disposal of
property, plant and equipment (Note 17)
12 158 2 008 254
(Loss) / gain from disposal of
intangible assets (Note 16)
404 552 (147 519)
416 710 1 860 735
9 (c) Other operating expenses
Impairment of intangible assets (Note 16) - 209 285
Property tax 260 988 247 960
Other operating expenses 1 175 477 -
1 436 465 457 245
10. FINANCE COSTS
2023
DKK
2022
DKK
Interest expenses:
- Bank borrowings (Note 19 (vii)) 2 030 635 870 646
- Loans from the related parties (Note 25 (iii)) - 213 768
- Contract fees and fees for handling by the factoring 1 472 947 475 950
- Right-to-use asset with purchase option (Note 22 (viii)) 293 348 365 534
- Right-to-use asset without purchase option (Note 22 (viii)) 1 935 754 1 848 795
Other nance costs 2 107 519 636 386
Finance costs (write-downs)
- Write-down of loan to related parties 7 911 390 -
- Write-down of receivable from related parties 2 915 831 -
- Write-down of investment in subsidiary 40 000 -
18 707 424 4 411 079
36 NOTES TO THE FINANCIAL STATEMENTS
11. EXPENSES BY NATURE
2023
DKK
2022
DKK
Cost of materials and goods used 216 037 280 201 049 337
Salary expenses incl. directors’ remuneration and fees 182 189 982 177 311 395
Traveling expenses 2 214 204 1 734 552
Transportation, logistics and materials cost 23 532 033 22 060 120
Depreciation and amortization (Note 16, 17) 43 744 338 44 278 222
Fuel, power, machinery maintenance and repairs 19 778 821 20 517 553
Marketing, promotion and similar costs 20 329 278 22 870 638
Professional fees and services 14 321 811 5 494 301
Variable and low value rent expenses 824 441 42 753
Other administrative costs 10 851 799 10 020 114
Other production costs 687 962 792 440
Impairment charge of receivables, written off 2 377 645 172 018
Total cost of sales, selling and administrative costs 536 889 594 506 343 443
12. STAFF COSTS
2023
DKK
2022
DKK
Salary expenses 153 066 560 153 478 506
Social and pensions contributions 17 058 291 16 058 050
Directors’ remuneration and fees 11 948 463 7 720 007
Social and pensions contributions
on director’s remuneration
116 667 54 832
182 189 982 177 311 395
The board of directors do not receive remuneration for the functions as Board of Directors.
Average number of employees during the reporting period
NOTES TO THE FINANCIAL STATEMENTS 37
13. INCOME TAX
2023
DKK
2022
DKK
Current income tax charge for prior year - 14 645
Change in deferred income tax (Note 24)
(5 557 542) (2 850 875)
Total income tax charged for the year: (5 557 542) (2 836 230)
The Company’s total income tax charge for the reporting year differs from the theoretically calculated tax amount that would arise using the
applicable tax rate as follows:
Prot before tax (35 443 129) (10 311 841)
Tax calculated at nominal tax rate (7 797 488) (2 268 605)
Under / (over) provision of prior periods - 14 645
Non-taxable income/ non-deductible expense 2 239 946 (582 271)
Corporate income tax charge (5 557 542) (2 836 231)
Applicable tax rate for Mejerigaarden A/S is 22%.
38 NOTES TO THE FINANCIAL STATEMENTS
14. FINANCIAL INSTRUMENTS BY CATEGORY
Assets as per balance sheet
31.12.2023
DKK
31.12.2022
DKK
Financial assets at amortized cost:
Trade and other receivables,
excl. prepayments (Note 20)
19 343 260 20 177 101
Cash and cash equivalents (Note 21) 2 886 689 3 201 117
22 259 043 23 378 218
Financial assets at fair value
through prot and loss:
Trade receivables under factoring agreements 4 325 974 906 280
4 325 974 906 280
26 585 017 24 284 498
Contractual liabilities per balance sheet
Borrowings including nance lease (Note 23) 121 134 603 116 461 010
Trade and other payables (excl.
salaries and taxes) (Note 25)
57 809 464 63 714 986
178 944 067 180 175 996
NOTES TO THE FINANCIAL STATEMENTS 39
15. CREDIT QUALITY OF FINANCIAL ASSETS
The Company has two types of nancial assets that are subject to IFRS 9 expected credit loss model:
- Trade receivables;
- Debt investments carried at amortized cost (loans).
Trade receivables
The Company applies simplied approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade recei-
vables, based on shared credit characteristics and the days past due.
The expected credit loss rates are based on the payment proles of sales over a period of 2 years prior to 31 December 2023 and the historical
credit losses experienced within this period. The historical loss rates are adjusted to reect current information.
Other tax receivables are considered as a separate, low default risk group, with no expected credit losses.
Trade receivables from related parties are considered as a separate group, with no historical credit losses over the relevant assessment period.
Accordingly, no lifetime expected credit losses are recognized in respect of trade receivables from related parties.
On that basis, the loss allowance as of 31 December 2023 and 2022 was determined as follows:
Trade receivables
31.12.2023
DKK
31.12.2022
DKK
Gross trade receivables, excl. related parties 19 075 795 18 533 187
Loss allowance (1 575 442) (597 194)
Expected loss rate, % 8.3% 3.2%
Gross trade receivables from related parties 2 400 292 3 147 387
Loss allowance - -
Expected loss rate, % 0.0% 0.0%
Other tax receivables 6 078 416 7 211 151
Loss allowance - -
Expected loss rate, % 0.0% 0.0%
40 NOTES TO THE FINANCIAL STATEMENTS
Movements on the expected loss on trade and other receivables are as follows:
2023
DKK
2022
DKK
At the beginning of the year 597 194 779 199
Provision for receivables impairment 978 248 -
Receivables written off uncollectable - (182 005)
1 575 442 597 194
15. CREDIT QUALITY OF FINANCIAL ASSETS (CONTINUED)
31.12.2023
DKK
31.12.2022
DKK
Range A 2 654 013 2 927 069
Unrated or not specied 232 676 274 048
2 886 689 3 201 117
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation of
recovery, include, amongst others, the failure of debtor to engage in a repayment plan with the Company as well as declared insolvency or
liquidation of debtor.
Debt investments carried at amortized cost
All the Company’s loans receivable from related parties (debt investments at amortised cost) are considered as a separate group. Loans recei-
vable from related parties are considered to have low credit risk, based on the assumption of these parties having low risk of default and demon-
strating strong capacity to meet its contractual cash ow obligations, therefore, the loss allowance assessed during the period was limited to 12
months expected losses.
Accordingly, no expected credit losses are recognised in respect of loans receivable from related parties.
Cash and cash equivalents
While cash and cash equivalents are also subject to the impairment requirements of IFRS 9, since cash at bank are held in Range A banks, there
are no impairments.
Cash at bank (as per Moody’s rating) at the date of approval of these nancial statements:
NOTES TO THE FINANCIAL STATEMENTS 41
Goodwill
Trademarks and
brands
Other intangible
assets
Licences, patents
and software
Total
DKK DKK DKK DKK DKK
Period 01.01.2022-31.12.2022
Cost acquisition amount 58 037 498 104 900 000 43 311 485 17 656 781 223 905 763
Depreciation accumulated in the begin-
ning of the year
(20 359 000) (31 643 310) (10 104 032) (62 106 342)
Opening net book amount 58 037 497 84 541 000 11 668 174 7 552 749 161 799 420
Additions 1 465 000 - 5 423 417 1 312 299 8 200 716
Disposals - - (4 890 934) - (4 890 934)
Accumulated amortization
on disposals
- - 3 254 542 - 3 254 542
Impairment charge (Note 9 (c)) (209 285) - - - (209 285)
Amortization charge - (3 996 000) (5 620 924) (2 541 480) (12 158 404)
Closing net book amount 59 293 212 80 545 000 9 834 275 6 323 568 155 996 055
As at 31 December 2022:
Cost 59 502 497 104 900 000 43 843 968 18 969 080 227 215 545
Accumulated depreciation (209 285) (24 355 000) (34 009 693) (12 645 512) (71 219 490)
Net book amount 59 293 212 80 545 000 9 834 275 6 323 568 155 996 055
16. INTANGIBLE ASSETS
Period 01.01.2022-31.12.2023
Cost acquisition amount 59 502 498 104 900 000 43 843 968 18 969 079 227 215 545
Depreciation and impairment
in the beginning of the year
(209 286) (24 355 000) (34 009 693) (12 645 512) (71 219 490)
Opening net book amount 59 293 212 80 545 000 9 834 275 6 323 568 155 996 055
Additions - - 4 911 685 15 212 350 20 124 035
Disposals - - (1 055 000) - (1 055 000)
Accumulated amortization
on disposals
- - 734 598 - 734 598
Amortization charge - (3 996 000) (5 279 394) (2 160 933) (11 436 327)
Closing net book amount 59 293 212 76 549 000 9 146 164 19 374 985 164 363 361
As at 31 December 2023:
Cost 59 502 498 104 900 000 47 700 652 34 181 430 246 284 580
Accumulated depreciation (209 286) (28 351 000) (38 554 488) (14 806 445) (81 921 219)
Net book amount 59 293 212 76 549 000 9 146 164 19 374 985 164 363 361
Amortisation charge is included in ‘selling expenses’ and in ‘administrative expenses’
42 NOTES TO THE FINANCIAL STATEMENTS
16. INTANGIBLE ASSETS (CONTINUED)
Impairment test of non-current assets
As at the end of the reporting year, goodwill relates to amounts resulting from historical reorganizations and merger process of Food Union Scandi-
navia ApS, Mejerigaarden Investments A/S and Mejerigaarden A/S and acquisition process of Hjem-Is Danmark A/S.
The recoverable amount of the assets, including goodwill, has been determined based on value-in-use calculation. This calculation uses pre-tax
cash ow projections based on nancial budget for the next reporting year approved by the management and further forecast based on the Com-
pany’s long-term plan, covering a period until 2028. Cash ows beyond 2024 are extrapolated using the estimated growth rates stated below.
Management determined that the EBITDA percentage and Capex level over the forecast period are the most sensitive key assumptions. These
assumptions have been thoroughly evaluated, taking into account the Company’s historical performance, including the actual performance for the
year 2023, the approved budget for 2023, and management’s expectations for market development. The new EBITDA targets are therefore a result
of careful consideration and analysis of past performance data. As a result of the test, there was no indication of impairment for the carrying amount
of goodwill as of 31 December 2023 and 2022.
Year 2023 impairment review, including carrying value of assets and excess of recoverable amount over carrying amount are as of 31 October
2023 and 2 months budgeted. The management has evaluated the movement between 31 October 2023 and 31 December 2023 and concluded
that there were no material changes that would signicantly impact the impairment review results, and, accordingly, conclude that using the data as
described is appropriate.
The following table sets out the summary of asset values tested for the impairment, impairment test results and the key assumptions used for value-
in-use calculations. The table also depicts sensitivity to change in each individual key assumption that would make recoverable value to approxima-
te carrying value of the respective asset tested.
2023 DKK 2022 DKK
Net book amount 320 402 1 636 392
Prot / (Loss) on disposal of intangible assets 404 552 (147 519)
Proceeds from disposal of intangible assets 724 954 1 488 873
In the cash ow statement, proceeds from sale of intangible assets comprise:
NOTES TO THE FINANCIAL STATEMENTS 43
Key assumptions used for
value-in-use calculations are as follows:
31.12.2023
DKK 000’
31.12.2022
DKK 000’
EBITDA margin 10.50% - 12.00% 12.26% - 14.00%
Capital investments p.a.
DKK 12 665, DKK 7 450, DKK 7 450,
DKK 7 450, DKK 30 398
during period 2024-2028
DKK 12 648, DKK 7 440, DKK 7 440,
DKK 7440, DKK 31 865
during period 2023-2027
Discount rate (WACC): 8.96% 9.42%
The following individual change in each of the key assumptions would make recoverable amount approximate respective carrying amount:
EBITDA decrease to presented % p.a. 7.29% - 8.33% 10.26% - 11.71%
Increase in capital investments p.a. 24 882 13 615
Increase in WACC rate to presented % 14.05% 12.29%
* Including goodwill and PPA recognized on consolidated Food Union Holding (CY) Company Limited in amount DKK 157 million (31.12.2022.:
DKK 170 million).
16. INTANGIBLE ASSETS (CONTINUED)
Assets tested for impairment and results:
31.12.2023
DKK 000’
31.12.2022
DKK 000’
Goodwill 59 293 59 293
Carrying value of assets (incl. goodwill) * 464 613 497 418
Excess of recoverable amount over carrying amount 377 704 40 927
44 NOTES TO THE FINANCIAL STATEMENTS
17. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Equipment
and machinery
Other xed assets
Advances paid
for xed assets
Total
DKK DKK DKK DKK DKK
Period 01.01.2022-31.12.2022
Cost acquisition amount 96 781 642 102 333 707 109 776 215 308 891 564
Depreciation accumulated
in the beginning of the year
(24 370 435) (88 347 212) (69 792 943) (182 510 590)
Opening net book amount 72 411 207 13 986 495 39 983 272
-
126 380 974
Additions 31 158 916 2 593 373 18 566 827
-
52 319 116
Disposals (9 894 373) (74 000) (2 508 897)
-
(12 477 270)
Accumulated depreciation on disposals 7 794 377 74 000 1 934 755
-
9 803 132
Depreciation charge (10 534 803) (4 019 908) (17 565 107)
-
(32 119 818)
Closing net book amount 90 935 324 12 559 960 40 410 850
-
143 906 134
As at 31 December 2022:
Cost 118 046 185 104 853 081 125 834 145
-
348 733 411
Accumulated depreciation (27 110 861) (92 293 121) (85 423 295)
-
(204 827 277)
Net book amount 90 935 324 12 559 960 40 410 850
-
143 906 134
NOTES TO THE FINANCIAL STATEMENTS 45
For information on pledged property, plant and equipment and capital commitments please refer to Note 23 (vi) and 25. Depreciation expense has been
charged in ‘cost of sales’, ‘selling and marketing expenses’ and ‘administrative expenses’ (Notes 6, 7, 8 and 11). In 2023 and 2022 the Company has
no capitalized borrowing costs on qualifying assets. In the cash ow statement, proceeds from sale of property, plant and equipment comprise:
2023 DKK 2022 DKK
Net book amount 254 206 2 674 138
(Loss) / gain on disposal (Note 9 (b)) 12 158 2 008 254
Proceeds from disposal of property, plant and equipment 266 364 4 682 392
17. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Land and
buildings
Equipment
and machinery
Other xed assets
Advances paid
for xed assets
Total
DKK DKK DKK DKK DKK
Period 01.01.2022-31.12.2023
Cost acquisition amount 118 046 185 104 853 081 125 834 145 348 733 411
Depreciation accumulated
in the beginning of the year
(27 110 861) (92 293 121) (85 423 295) (204 827 277)
Opening net book amount 90 935 324 12 559 960 40 410 850
-
143 906 134
Additions 15 631 305 131 037 10 276 117
11 902 661
37 941 120
Disposals (16 888 595) (50 000) (405 497) (17 344 092)
Reclassication - 2 844 907 (145 000)
(2 844 907)
(145 000)
Accumulated depreciation on disposals 9 767 734 - 201 291
-
9 969 025
Depreciation charge (11 001 711) (4 539 825) (16 766 474)
-
(32 308 010)
Closing net book amount 88 444 057 10 946 079 33 571 287
9 057 754
142 019 177
As at 31 December 2023:
Cost 116 788 895 107 779 025 135 254 765
9 057 754
368 880 439
Accumulated depreciation (28 344 838) (96 832 946) (101 683 478)
-
(226 861 262)
Net book amount 88 444 057 10 946 079 33 571 287
9 057 754
142 019 177
46 NOTES TO THE FINANCIAL STATEMENTS
Net book amounts of Right-to-use assets with purchase rights and Right-to-use assets without purchase rights included in the above total
net book value of property, plant and equipment as at 31 December 2023 are as follows:
For disclosure of lease liabilities, please refer to Note 23 (viii).
Land and buildings
Equipment
and machinery
Other xed assets
and motor vehicles
Advances paid for
xed assets Total
RTU assets with purchase option - - 14 074 649 - 14 074 649
RTU assets without purchase option 76 756 073 - 8 268 085 - 85 024 158
Property, plant and equipment without
lease terms
11 687 984 10 946 079 11 228 552 9 057 754 42 920 370
Net book amount, total PPE 88 444 057 10 946 079 33 571 286 9 057 754 142 019 177
Right-to-use assets without purchase option movement is summarized in table below:
2023
DKK
2022
DKK
Opening amount 90 119 076 72 845 691
Additions 14 588 308 29 687 450
Disposals, net (7 120 861) -
Reclassication to own or right-to-use with purchase option - -
Depreciation charge (Land and buildings) (8 589 292) (8 316 096)
Depreciation charge (Other xed assets and motor vehicles) (3 973 073) (4 097 969)
85 024 158 90 119 076
17. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Land and buildings
Equipment
and machinery
Other xed assets
and motor vehicles
Advances paid for
xed assets Total
RTU assets with purchase option - - 14 977 467 - 14 977 467
RTU assets without purchase option 77 877 918 - 12 241 158 - 90 119 076
Property, plant and equipment without
lease terms
13 057 406 12 559 960 13 192 224 - 38 809 590
Net book amount, total PPE 90 935 324 12 559 960 40 410 849 143 906 134
NOTES TO THE FINANCIAL STATEMENTS 47
18. INVESTMENTS IN SUBSIDIARIES
In February 2023 Mejerigaarden A/S established new 100% by the Company owned subsidiary Fråst ApS, domiciled at Sennelsevej 1, 7700 Thisted.
Mejerigaarden has invested 40,000 DKK as founding capital upon the establishment of the company, Fråst, in February 2023. The equity share in
Fråst ApS has been written down to zero in the 2023 nancial statements due to capital loss. The subsidiary is expected to be closed in 2024 either
through liquidation or merger.
19. INVENTORIES
31.12.2023
DKK
31.12.2022
DKK
Raw materials 19 601 979 17 834 172
Goods for sale 54 980 448 82 607 319
Work in progress 1 057 175 1 851 010
75 639 602 102 292 501
Inventory residuals above includes provision for decrease in:
Write-downs have been made to accomodate a lower net realizable value of raw materials and goods for sale. The write-down amounts to:
- Raw materials, were DKK nil (31.12.2022.: DKK 1.881.035).
- Goods for sale, were DKK 1.367.419 (31.12.2022:.:DKK 1.540.900).
48 NOTES TO THE FINANCIAL STATEMENTS
31.12.2023
DKK
31.12.2022
DKK
Initial direct and restoration cost of rent 3 517 464 2 818 299
Non-current trade and other receivables: 3 517 464 2 818 299
Trade receivables 18 871 565 17 984 422
Receivables from related parties (Note 27 (ii.i)) 2 400 292 3 147 387
Provisions for bad and doubtful debts (1 575 442) (597 194)
Total trade receivables 23 494 098 20 534 615
Current income tax - 1 132 000
Excise tax 3 279 940 3 279 436
Ice – cream tax 2 798 476 2 798 476
Other taxes - 1 239
Other receivables 204 230 548 765
Deferred expenses 1 072 513 1 241 796
Prepayments and advance payments 23 136 -
Prepayments and advance payments
to related parties (Note 27 (ii))
330 019 -
Current trade and other receivables: 27 404 729 29 536 327
30 922 193 32 354 626
As at 31 December, the carrying amounts of trade and other receivables are denominated in the following currencies:
DKK 28 942 465 29 363 230
EUR 1 979 728 2 991 396
30 922 193 32 354 626
The carrying value of trade and other receivables as at 31.12.2023. and 31.12.2022.
For information on pledged assets refer to Note 23 (vi).
The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivables set above. It was assessed that a
portion of the impaired receivables is expected to be recovered. Amounts charged to the allowance account are generally written off when there
is no expectation of recovering additional cash. See also Note 15 Credit quality of nancial assets. The Company’s activities in foreign currencies
are limited; consequently, changes in exchange rates and interest rates will not affect results, cash flows and equity to any material extent. The
Company’s interest-bearing debt consists primarily of intercompany payables or is based on a fixed interest rate and, therefore, changes in inte-
rest rates will have a limited effect on earnings.
20. TRADE AND OTHER RECEIVABLES
NOTES TO THE FINANCIAL STATEMENTS 49
31.12.2023
DKK
31.12.2022
DKK
Cash at bank 2 654 013 2 927 069
Cash on hand 232 261 272 787
Cash on transit 415 1 261
2 886 689 3 201 117
As at 31 December, the cash and cash equivalents are denominated in the following currencies:
DKK 2 749 707 938 520
EUR 136 982 2 262 597
2 886 689 3 201 117
21. CASH AND BANK
22. SHARE CAPITAL AND RESERVES
The Company’s share capital as at 31 December 2023 and 31 December 2022 consists of:
- The share capital of the company amounts to DKK 1.100.000 divided intor shares of DKK 1.00.
- One share of DKK 1.00 entitles to on vote.
- No special rights or privilege are attached to any share.
- Shares are fully pledged.
50 NOTES TO THE FINANCIAL STATEMENTS
Non-current borrowings:
31.12.2023
DKK
31.12.2022
DKK
Lease liabilities with purchase option (Note 23 (viii)) 10 581 025 11 117 092
Lease liabilities without purchase option (Note 23 (viii)) 72 053 204 77 511 217
Total non -current borrowings: 82 634 229 88 628 309
Current borrowings:
Bank overdraft 21 951 755 11 647 178
Lease liabilities with purchase option (Note 23 (viii)) 3 577 665 3 577 665
Lease liabilities without purchase option (Note 23 (viii)) 12 970 954 12 607 858
Total current borrowings: 38 500 374 27 832 701
121 134 603 116 461 010
23. BORROWINGS
The company has a credit line agreement for a total limit of DKK 50.0 million with oating interest rate applied to drawn amount.
The bank facility is up to re-negotioation at latest 1 October 2024. Food Union Holding (CY) Company Limited has issued an irrevocably and
unconditionally guarantee to provide Mejerigaarden A/S with sufcient liquidity, so that Mejerigaarden at any times has sufcient liquidity to meet
its current and future liabilities as they fall due.
Based on above the management assess Mejerigaarden A/S has sufcient cash resources to carry out the planned activities for 2024.
NOTES TO THE FINANCIAL STATEMENTS 51
23. BORROWINGS (CONTINUED)
Non-current borrowings:
2023
DKK
2022
DKK
Leasing debt - Financial leasing (10 581 025) (11 117 092)
Leasing debt RTU Trucks (491 434) (698 283)
Leasing debt RTU Buildings (67 862 105) (69 347 045)
Leasing debt RTU Other facilities (3 699 678) (7 465 890)
(82 634 242) (88 628 310)
Current borrowings:
Bank overdraft (21 951 756) (11 647 178)
Leasing debt Financial leasing shortterm (3 577 665) (3 577 665)
Leasing debt RTU Trucks shortterm (205 713) (205 713)
Leasing debt RTU Buildings shortterm (8 893 968)
(8 530 873)
Leasing debt RTU Other facilities shortterm (3 871 272) (3 871 272)
Total current borrowings: (38 500 374) (27 832 701)
(121 134 616) (116 461 011)
52 NOTES TO THE FINANCIAL STATEMENTS
(i) Fair values
The carrying amounts of borrowings and nance lease liabilities as of 31 December 2023 and 2022 approximates their fair value.
(ii) Denomination in foreign currencies
As at 31 December, the carrying amounts of the Company’s borrowings are denominated in the following currencies:
31.12.2023
DKK
31.12.2022
DKK
DKK 121 131 488 116 457 894
EUR 3 115 3 116
121 134 603 116 461 010
23. BORROWINGS (CONTINUED)
(iii) Maturity of non-current borrowings (excl. lease liabilities)
Less than 3 months 21 951 756 11 647 178
21 951 756 11 647 178
(iv) Undrawn balances
Undrawn nancing balances as at 31 December 2023 and 31 December 2022 are as follows:
Floating rate with expiring within one year 68 048 244 50 615 425
NOTES TO THE FINANCIAL STATEMENTS 53
(v) Interest rates and exposure to interest rate changes
The Company’s borrowings to/from related parties have variable interest rate, which consist of 3M Euribor/ ESTER plus xed margin. The Com-
pany’s management monitors the interest rate uctuations on a continuous basis and acts accordingly. Credit line facility in Ringkjøbing Land-
bobank is available with applied xed annual interest rate plus key interest rate published by Denmark’s National bank.
The exposure of the Company’s borrowings to interest rate changes and the contractual repricing dates as of 31 December 2023 and 31 De-
cember 2022 are as follows:
31.12.2023
DKK
31.12.2022
DKK
3 months or less 14 158 690 14 694 753
3 to 6 months 21 951 756 11 647 181
Fixed interest rate (lease liabilities without purchase option):
2-5 years 57 100 455 58 988 915
Over 5 years 27 923 702 31 130 161
121 134 603 116 461 010
23. BORROWINGS (CONTINUED)
54 NOTES TO THE FINANCIAL STATEMENTS
Balance Sheet and Liabilities: Mejerigaarden has a total balance sheet of 416 million DKK. Out of this sum, 22.9 million DKK consists of bank
debt, and 99.1 million DKK are long-term liabilities.
Potential Consequences of Interest Rate Increases:
1. Increased Interest Expenses:
If interest rates rise, the interest expenses on both the bank debt and long-term liabilities will increase. For example, an interest rate increase of
1% will result in an annual additional cost of 229,000 DKK for the bank debt and 991,000 DKK for the long-term liabilities, amounting to a total
additional cost of 1,220,000 DKK annually.
2. Liquidity Pressure:
Increased interest expenses may cause liquidity pressure, especially if the company does not have sufcient free cash ow to cover the increa-
sed interest expenses. This can limit the company’s ability to invest or cover operational costs.
3. Impact on Financial Results:
The increased interest expenses will reduce the net income, negatively impacting the company’s protability. This can also affect the company’s
creditworthiness and ability to attract future nancing.
4. Increased Capital Costs:
An increase in interest rates can also raise the company’s capital costs, as both existing and future loans will become more expensive. This
can lead to higher return requirements on investments to maintain protability.
5. Risk Management:
To mitigate the risk of rising interest rates, the company could consider using nancial instruments such as interest rate swaps or xed-rate
loans. These instruments can help lock in interest rates and reduce the uncertainty of future interest expenses.
Overall Assessment: Interest rate sensitivity poses a signicant risk to Mejerigaarden’s nancial position, as rate increases can lead to sub-
stantial additional costs, impacting both liquidity and protability. Therefore, it is crucial to have a robust risk management strategy in place to
address potential interest rate increases and their consequences.
SENSITIVITY ANALYSIS ON INTEREST RATES
NOTES TO THE FINANCIAL STATEMENTS 55
2023
DKK
2022
DKK
At the beginning of the year 11 647 178 -
Received during the period 103 287 086 70 047 148
Paid during the period (92 982 508) (58 399 970)
Interest charged (Note 10) 2 030 635 870 646
Interest paid (2 030 635) (870 646)
At the end of the year 21 951 756 11 647 178
(vii) Bank borrowing movement (excl. lease liabilities):
23. BORROWINGS (CONTINUED)
(vi)
Pledges, collaterals and loan covenants
Mejerigaarden A/S is under Food Union Group Senior Facility Agreement(“SFA”) and Revolving Facility agreement. Subordinated and Security
Agency agreement and / or any other Finance Document resulting from the men tioned agreements arranged by VTB Bank (Europe) SE. Under
SFA, certain entities of the Food Union Group are Obligors (including Mejeri gaarden A/S), while Food Union Holding (CY) Company Limited
(the Parent) and LLC Food Union Management (the Borrower) are Guarantors.
As at 31 December 2023 Food Union Group has made all payments under SFA in due time. The nal settlement of the said liabilities is due on
30 De cember 2025.
Senior Facility Agreement requires compliance to certain nancial covenants, based on consolidated nancial statements of the FU Group.
Reporting on nancial covenants compliance is required quarterly. Based on nancial information presented in 31 December 2023 consolidated
nancial statements, as adjusted according to the requirements of the Senior Facility Agreement the FU Group complies with required nancial
covenants.
Non-current (excluding leased assets) and current assets with a carrying amount of 284.771.738 DKK has been pledged as following:
15.000.000 EUR in pledge towards Ringkjøbing Landbobank and secondary VTB Bank Deutschland AG as 1. priority. The company has issued
a declaration of negative pledging to VTB Bank (Deutschland) AG as 2. priority. 700.000 EUR in pledge towards VTB Bank (Europe) SE as 3.
priority. The company has issued a declaration of negative pledging to Skandinaviska Enkilda Banken as 4. priority. 8.600.000 EUR in pledge
towards VTB Bank (Europe) SE as 5. Priority. Further the company has issued a declaration on negative pledging to Ringkjøbing landbobank
and guarantee against dividend without the banks approval. Land and buildings with an amount of DKK 12.000.000 has been provided as colla-
teral for Food Union Group’s bank engagement with VTB Bank Deutschland AG. The mortgage deeds amount to EUR 15.000.000.
As security for lease of Kiosk, security has been provided by account held as collateral with bank of DKK 320 thousand.
56 NOTES TO THE FINANCIAL STATEMENTS
Lease liabilities without purchase option:
No later than 1 year 12 970 954 12 607 858
Later than 1 year and no later than 5 years 44 129 502 46 381 056
Later than 5 years 27 923 703 31 130 161
Present value of lease liabilities 85 024 159 90 119 075
Future nance charges on lease liabilities 18 458 160 12 010 644
Total minimum lease payments 117 641 009 116 824 476
Minimum lease payments:
No later than 1 year 18 723 461 17 869 305
Later than 1 year and no later than 5 years 61 812 024 63 112 026
Later than 5 years 37 105 524 35 843 145
117 641 009 116 824 476
23. BORROWINGS (CONTINUED)
31.12.2023
DKK
31.12.2022
DKK
Lease liabilities with purchase option :
No later than 1 year 3 577 665 3 577 665
Later than 1 year and no later than 5 years 10 581 025 11 117 092
14 158 690 14 694 757
(viii) Lease liabilities
NOTES TO THE FINANCIAL STATEMENTS 57
Lease liabilities with
purchase option movement:
2023
DKK
2022
DKK
At the beginning of the year 14 694 757 9 689 600
Transfers
(145 000) -
Received during the period 3 150 304 9 346 000
Repaid during the period (3 541 371) (4 340 843)
Interest charged (Note 10) 293 348 365 534
Interest paid (293 348) (365 534)
Set off assignment / Disposal - -
At the end of the year 14 158 690 14 694 757
Lease liabilities without
purchase option movement:
At the beginning of the year 90 119 075 72 845 691
Recognized during the year 14 588 308 29 687 450
Paid during the year (12 562 364) (12 414 065)
Interest charged (Note 10) 1 935 754 1 848 795
Interest paid (1 935 754) (1 848 796)
Disposal (1 935 754) -
At the end of the year 85 024 159 90 119 075
23. BORROWINGS (CONTINUED)
58 NOTES TO THE FINANCIAL STATEMENTS
24. DEFERRED CORPORATE INCOME TAX
In accordance with Danish tax legislation current corporate income tax is applied at the rate of 22% on taxable income generated by the Com-
pany during the taxation period ending 31 December 2023.
31.12.2023
DKK
31.12.2022
DKK
Deferred income tax assets 4 297 214 1 988 916
Deferred income tax liabilities (20 709 797) (23 959 041)
At the end of the reporting year, net (16 412 583) (21 970 125)
Deferred income tax (net) movement in the reporting year:
Deferred income tax (liability)/ asset, net:
2023
DKK
2022
DKK
At the beginning of the reporting year (21 970 125) (24 821 000)
Current year change (Note 13) 5 557 542 2 850 875
At the end of the reporting year (16 412 583) (21 970 125)
Deferred income tax assets, gross:
31.12.2023
DKK
31.12.2022
DKK
Deferred tax assets to
be received within 12 months
7 143 840 1 988 916
7 143 840 1 988 916
Deferred income tax liabilities, gross:
Deferred tax liabilities to
be settled within 12 months
(1 054 987) (2 464 691)
Deferred tax liabilities to
be settled after more than 12 months
(22 501 437) (21 494 350)
(23 556 443) (23 959 041)
Deferred income tax liabilities, net: (16 412 583) (21 970 125)
NOTES TO THE FINANCIAL STATEMENTS 59
31.12.2023
DKK
31.12.2022
DKK
Non-current trade and other payables:
Accrued liabilities 12 401 273 13 195 159
12 401 273 13 195 159
Current trade and other payables:
Trade and other payables 22 495 155 43 443 464
Trade payables to related parties
(Note 27 (ii.i))
10 400 168 2 341 924
Social insurance and similar contributions 2 188 173 2 733 606
Value added tax 4 689 234 2 343 257
Personal income tax 5 890 584 -
Ice-cream tax 4 588 300 4 677 914
Other payables, incl. salary payables 14 332 536 9 487 993
Accrued liabilities 30 005 500 20 799 332
95 471 502 85 827 490
107 872 775 99 022 649
The fair value of trade and other payables approximates their carrying amount at the balance sheet date.
Due to legislative changes in Denmark, part of unused vacation pay is frozen by the entity. The amount is indexed every period by the govern-
ment set rate (3,5% in 2023 and 2,1% in 2022). Amount is to be released to every employee upon leaving the labour market and accordingly
presented as non-current accrued liabilities.
25. TRADE AND OTHER PAYABLES
60 NOTES TO THE FINANCIAL STATEMENTS
As at 31 December 2023 and 2022, the carrying amounts of the Company’s trade and other payables are denominated in the following currencies:
31.12.2023
DKK
31.12.2022
DKK
DKK 90 887 735 84 529 771
EUR 16 862 338 14 348 082
NOK 122 702 139 464
Other - 5 332
107 872 775 99 022 649
25. TRADE AND OTHER PAYABLES (CONTINUED)
26. CONTINGENT LIABILITIES
For information on pledged assets refer to Note 23 (vi).
The Company and it’s subsidiary Fråst ApS are jointly and severally liable for tax on the Group’s jointly taxed income and for certain withholding
taxes such as dividend tax as well as for the joint registration for VAT. Any subsequent corrections of the taxable income subject to joint taxation
or withholding taxes on dividends, etc., may entail an increase in the entities’ liability. The Company and Fråst ApS as a whole is not liable to
any other parties.
The Company and subsidiary Fråst ApS are jointly and severally liable for the joint registration concerning VAT.
Mejerigaarden A/S has issued letter of support towards the subsidiary Fråst ApS for continuing its activities in 2024, where it will be merged
with Mejerigaarden A/S or liquidated.
NOTES TO THE FINANCIAL STATEMENTS 61
2023
DKK
2022
DKK
Sale of goods 1 697 597 4 184 567
Other services 82 274 -
Other income - 1 207 655
1 779 871 5 392 222
Sales of goods by product type
Ice-cream 983 602 4 184 567
Frozen food 713 994 -
1 697 597 4 184 567
Revenue to related parties by geographical area
Norway, sister subsiduary 1 372 542 2 971 827
Latvia, sister subsiduary 121 268 1 410 109
Romania, sister subsiduary 286 061 -
Other countries, sister subsiduary - 1 010 286
1 779 871 5 392 222
(i.ii) Purchase of goods and services
Purchases of goods 40 421 139 13 898 059
27. RELATED PARTY TRANSACTIONS
The parties are considered related when one party has the possibility to control the other one or has signicant inuence over
the other party in making nancial and operating decisions. The Company is engaged in the following transactions with the related parties. All
transactions between related parties comply with the arm’s length principle (Please see page 21-22 for organizational describtion and chart):
Food Union Holding (CY) Company Limited has issued an irrevocably and unconditionally guarantee to provide Mejerigaarden A/S with sufcient
liquidity, so that Mejerigaarden A/S at any times has sufcient liquidity to meet its current and future liabilities as they fall due.
(i) Sales and other services and key management remuneration
(i.i.) Sale of goods and rendering of services
62 NOTES TO THE FINANCIAL STATEMENTS
(i.iii) Key management remuneration (Note 12)
Directors’ remuneration 11 948 463 7 720 007
Social and Pensions
contributions on director’s remuneration
116 667 54 834
12 065 130 7 774 839
(ii) Year-end balances
(ii.i) Accounts receivable and payable arising from transactions with related parties
31.12.2023
DKK
31.12.2022
DKK
Receivables from related parties (Note 20)
Subsiduary
Fråst ApS 0 -
Sister subsiduary
Food Union (Taiwan) Limited 892 836 890 872
Den Norske Isbilen AS 711 834 -
Food Union Management SIA 635 531 634 184
Rigas Piena Kombinats AS 330 019 25 165
Food Union (SG) Limited 103 918 103 764
Isbjorn Is AS 54 370 305 415
Food Union Asia Pacic Limited 1 803 15 135
Food Union (UK) Limited* - 1 172 852
2 730 311 3 147 387
27. RELATED PARTY TRANSACTIONS (CONTINUED)
(i.iii) Interest income and interest expenses
2023
DKK
2022
DKK
Interest income 0 -
Interest expenses - 213 768
0 213 768
NOTES TO THE FINANCIAL STATEMENTS 63
31.12.2023
DKK
31.12.2022
DKK
Payables to related parties (Note 25)
Subsiduary
Fråst ApS - -
Sister subsiduary
Food Union Management SIA 10 367 711 1 597 074
Premia Tallina Kulmhoone AS 32 457 -
Rigas Piena Kombinats AS - 744 850
10 400 168 2 341 924
27. RELATED PARTY TRANSACTIONS (CONTINUED)
64 NOTES TO THE FINANCIAL STATEMENTS
28. EVENTS AFTER THE REPORTING PERIOD
As of the last day of the reporting year until the date of signing these nancial statements there have been no events requiring adjustment
of or disclosure in the nancial statement or notes thereto.
27. RELATED PARTY TRANSACTIONS (CONTINUED)
(iv) Borrowings from the related parties
2023
DKK
2022
DKK
At the beginning of the year - 22 567 267
Borrowings repaid during the year - (22 407 336)
Interest charged (Note 10) - 213 768
Interest paid - (385 525)
Foreign exchange differences - 11 826
At the end of the year (Note 23) - -
NOTES TO THE FINANCIAL STATEMENTS 65
INDEPENDENT AUDITOR’S REPORT
We conducted our audit in accordance with International Standards on Auditing
(ISAs) and the additional requirements applicable in Denmark.
Our responsibilities under those standards and requirements are further descri-
bed in the ”Auditor’s responsibilities for the audit of the nancial statements”
section of our report.
We believe that the audit evidence we have obtained is sufcient and appropri-
ate to provide a basis for our opinion.
Independence
We are independent of the Company in accordance with the International
Ethics Standards Board for Accountants’ International Code of Ethics for Pro-
fessional Accountants (IESBA Code) and the additional ethical requirements
applicable in Denmark, and we have fullled our other ethical responsibilities in
accordance with these requirements and the IESBA Code.
66 INDEPENDENT AUDITOR’S REPORT
CVR no. 25 57 81 98
INDEPENDENT AUDITOR’S REPORT 67
Mejerigaarden A/S
Sennelsvej 1, DK-7700 Thisted
CVR-nr. 37 31 73 14