1. Management Review
04 Management’s Report 2024
10 Key figures and financial ratios
11 In memoriam: Niels Due Jensen
12 Group Management
13 Board of Directors
14 Our divisions
18 Ignite'27: Our 2025-2027 strategy
19 Technology and innovation are levers
for climate action and growth
20 Building a water treatment platform
2. Management’s Statement
and Auditor’s Report
22 Management’s Statement
23 Independent Auditor’s Report
3. Consolidated financial statements
26 Consolidated statement of profit and loss
27 Consolidated statement of other comprehensive income
28 Consolidated statement of financial position
30 Consolidated statement of cash flows
31 Consolidated statement of changes in equity
32 Notes to the consolidated financial statements
4. Parent Company financial
statements Grundfos Holding A/S
91 Statement of profit and loss
92 Statement of other comprehensive income
93 Statement of financial position
95 Statement of cash flows
96 Statement of changes in equity
97 Notes to the financial statements
Front page photo:
A Grundfos colleague operates a crane to
lift an SE pump. SE pumps are designed
for handling wastewater, process water
and unscreened raw sewage in heavy-du-
ty municipal, utility and industrial
applications.
11 18 2019
Technology and innovation are levers
for climate action and growth
Ignite'27:
Our 2025-2027 strategy
In memoriam: Niels Due Jensen Building a water treatment platform
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
04 Management Report 2024
10 Key figures and financial ratios
11 In memoriam: Niels Due Jensen
12 Group Management
13 Board of Directors
14 Our divisions
18 Ignite'27: Our 2025-2027 strategy
19 Technology and innovation are levers
for climate action and growth
20 Building a water treatment platform
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Maintaining a robust business in a year of market
headwinds
Continuing a tendency that began during the second half
of 2023, 2024 was characterised by an unusual cocktail of
headwinds, which impacted demand in key markets and
applications negatively. Despite the market environment
challenges, we maintained a robust business.
In 2024, a number of European countries and China saw an
overall economy stand-still or experienced growth that was
significantly lower than usual. This affected the construction
sector, and particularly the activity level for new build.
Furthermore, private homeowners have for some time
focused their spending on travel and leisure rather than
home renovation. Similarly, across many industrial sectors,
investment levels have declined after the high levels seen
during the period from 2021 to mid-2023.
On top of this, after a period of stock build and growing
interest rates, many channel partners focused on reducing
their product stock throughout 2024.
mid-2023, many heat pump suppliers ramped up capacity
and built significant stock to meet the demand of the
expected conversion from gas to power across Europe.
important change did not materialise, and the demand
for heat pumps therefore slumped. As a major supplier
of pumping solutions to heat pump manufacturers, this
impacted us negatively.
However, Grundfos benefits from a combination of a
sizeable installed base of pumping solutions, loyal channel
partners and end users who appreciate our reliability,
our high-quality solutions, our global reach as well as our
capability of co-creating the right solutions together with
our partners and customers. Consequently, we have a solid
base for replacement business.
Indian markets remained strong. Towards the latter part of
2024, other markets, for example Southern Europe, also
stabilised and delivered growth.
Further, even in markets that generally represent
challenges, some applications offer significant growth
opportunities. An example is the soaring market for IT
cooling driven by data centres, where we have established
ourselves as one of the globally leading suppliers of
pumping solutions.
Water-stress and climate change continue to present two
of the biggest global challenges. Many of our customers
around the world are fully committed to contributing to
solving these fundamental issues. We are guided by our
purpose of pioneering solutions to the world’s water and
climate challenges and improving quality of life for people
as we continue helping our customers meeting their
commitments. The fundamental demand for what we do
therefore remains strong.
Sales reflecting challenged markets
The market headwinds that gained momentum during the
second half of 2023 and continued into 2024, impacted
markets deeper and persisted for a longer time than we had
anticipated.
Consequently, full-year sales for 2024 amounted to
DKK 33.2bn, representing a 2.4% decline compared
to 2023 when measured in local currencies.
MANAGEMENT REVIEW
This report covers the annual results of the Grundfos Group, Grundfos Holding A/S, and its affiliated companies.
To read the majority owner’s annual report, please visit www.poulduejensenfoundation.com
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Measured in DKK, sales declined by 3.4%, reflecting
a negative currency impact of 1%-point.
During the first half of 2024, our sales dropped 8.6%,
whereas we delivered 4% growth during the second half of
the year.
There were notable differences in market development
across different applications. Where our Commercial
Building Services division showed a sales growth of
divisions saw a minor sales decline of 1%
and 2% respectively. Due to the significant decline
in home renovation and in the heat pump application
in particular, our Domestic Building Services division
experienced a 12% sales drop compared to 2023.
Our Peerless Pump business achieved a 9% increase
in sales measured in local currencies, whereas sales in our
DAB branded business remained on par with 2023.
Sales in our Water Treatment business increased by 18%
over 2023, including the acquired Culligan Commercial &
Industrial business (see more on p. 20).
As mentioned above, we are not satisfied with the sales
decline; however, given the market situation, we are
satisfied with the overall robustness of our business.
Satisfactory financial performance
In 2024, we delivered a consistent financial performance in
line with our strategic ambitions for earnings and cash flow
generation.
To remain competitive, we continuously develop our
organisation, including our operations footprint. In 2024,
we have taken several initiatives to make our business
even stronger for future requirements. This includes major
operations footprint changes.
In March, we inaugurated a new factory located in
Changshu, China. The factory represents our single biggest
factory investment so far, and it is focused on serving our
Commercial Building Services customers in China and other
Asian countries.
In April, we announced our intention to relocate production
from our factory in Wahlstedt, Germany, to our current
locations in Hungary, Serbia and Denmark. The relocation
will take place over two-three years.
An agreement to support the colleagues who will
unfortunately lose their jobs due to the relocation of
activities was made in a constructive dialogue with the
local works council. The financial impact of the agreement
is reflected in our 2024 financial statements. For further
information, please refer to Note 19.
The agreements made in December 2022 to transfer the
ownership of our two Russian Grundfos legal entities were
finally approved and closed in 2024. The net financial
impact is an income of DKK 474m, which is reported as
a special item in our financial statements. For further
information, please refer to Note 7.
The year ended with EBIT before special items of DKK
3,590m (2023: DKK 4,309m) corresponding to a ratio
of 10.8% (2023: 12.5%). This is in line with our strategic
earnings ambition of a 10% EBIT ratio.
EBIT reached DKK 4,064m (2023: DKK 4,309m).
Net income from finance items ended at DKK 315m (2023:
DKK 395m), driven mainly by returns on our securities
portfolio and higher interest income on
cash deposits.
Profit before tax made up DKK 4,379m (2023: DKK 4,704m)
and profit after tax DKK 3,433m (2023:
DKK 3,422m).
Cash flow from operating activities amounted to DKK
4,471m (2023: DKK 5,943m). The decrease in cash flow
from operating activities derives primarily from lower EBIT
and an increase in working capital.
We continue investing significantly in the development of
new products, services and solutions. Investments in 2024
totalled DKK 1,637m (2023: DKK 1,871m), equivalent to
4.9% of revenue (2023: 5.4%).
Free cash flow ended at DKK 2,904m (2023: 4,079m),
largely as a result of the decrease in cash flow from
operating activities.
Our balance sheet remains strong. The equity ratio stands
at 68.4% at year-end (2023: 70.8%).
Overall, we are satisfied with the financial performance in
2024, despite the sales fluctuations. Revenue growth did
not meet the range forecasted for the year, yet our earnings
met the targeted 10% ratio for EBIT before special items/
revenue.
Customers in focus
“The world is full of problems that can be solved in a better
way.” This phrase was coined by Grundfos founder Poul Due
Jensen. The mindset expressed in that sentence continues
to be part of Grundfos’ credo in our ambition of bringing
solutions to our customers’ challenges.
The feedback from our ongoing customer satisfaction
surveys shows that Grundfos customers again have
recognised our efforts. In 2024, we have further improved
compared to the record-high customer satisfaction score
our customers gave us in 2023. We have improved the score
by one point overall to 82, thereby exceeding the target
originally set to be reached by 2025.
MANAGEMENT REVIEW
A quick overview
Poul Due Jensen,
Group President, CEO
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Taking customer feedback is essential for us to zoom
in on areas where we can support our customers
even better. In 2024, one of our focus themes was the
topic called ‘delivery’, which covered areas such as
our communication to customers, delivery lead time,
stock availability, customer service, real-time tracking,
order processing and order accuracy. Within this area,
customer feedback was significantly more positive than
in 2023. This outcome is the result of a determined
effort and serves as a strong inspiration for even further
improvement.
Motivated and engaged people
How we serve our customers and how we provide the
best possible environment for our people to be at their
best are some of the most essential building blocks for
our long-term success. A year of challenged markets put
additional strain on our 20,818 colleagues across the
world. In such a widespread organisation and challenged
market situation, we must stay close to our people.
We do so in many ways. One is to invite our colleagues
to participate in our annual employee motivation and
satisfaction survey (EMS). Fortunately, more than 9
out of 10 colleagues decided to provide their feedback.
The employee feedback is foundational for our leaders in
their daily effort to make Grundfos an excellent place to
work, learn and grow.
Historically, the EMS was conducted in our Grundfos
branded pumping solutions business, which covers
approximately 85% of our headcount. For the Grundfos
branded business, the 2024 EMS confirmed the record-
high overall score of 78, which was also the score in 2023.
In 2024, we invited colleagues from all parts of Grundfos
Group to participate in the EMS, the only exception being
the newly acquired Culligan Commercial & Industrial
reasons could not make it into the 2024 EMS. With close
to all Grundfos Group colleagues being part of the EMS,
we saw a small drop of 1 point, which means that the
Grundfos Group score was 77. This is still a very high
score.
Employers around the world have in recent years been
MANAGEMENT REVIEW
facing an increasing number of employees struggling with
symptoms of stress and a decline in well-being. In our
EMS, we focus on both well-being and stress. Whereas
our people share positive feedback on well-being, stress
levels are still a source of concern. We invest significant
leadership resources in preventive stress management, and
we constantly seek new ways of dealing with stress.
A diverse, equitable and inclusive workplace
Where a multitude of viewpoints and perspectives come
together, something unique is born. In Grundfos, we want
to nurture a culture that champions respect and fosters a
diverse and inclusive workplace, where our people sense
they belong and feel valued, respected and supported.
Across many elements of diversity, we make substantial
efforts to promote a better gender balance in an industry
that historically mostly has attracted males. Fortunately,
that is changing across all levels of our organisation, yet it
will require a continuous focus.
Our people and leaders are nudged in the right direction
via training on unconscious bias, a recruitment policy
that promotes recruitment of individuals from diverse
talent pools, gender-mixed mentorship programmes and
continued support for employee-driven Employee Resource
Groups.
In 2024, we reached the 2025 target of 33% female
representation on the Board of Directors. The
representation of female top leaders and all-level leaders
remained unchanged at Grundfos Group level. We will
continue our efforts to move existing biases with training
and by use of the relevant policies,
as well as through our support for Employee
Resource Groups.
MANAGEMENT REVIEW
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
MANAGEMENT REVIEW
Innovation has never been more vital. It is absolutely key to
delivering the energy-efficient and smart water solutions
the world needs. It is also key for Grundfos’ ability to
differentiate our offerings and continue to deliver more
customer value than competitors through better products,
solutions and customer experiences.
To advance our innovation agenda, we have in 2024
dedicated DKK 1,941m (2023: DKK 1,826m) to research and
development, equivalent to 5.8% of revenue
(2023: 5.3%).
Innovation at Grundfos is a cross-company effort. Research
and technology development takes place at Group level,
whilst product and solutions development happens with
customers and close to the applications within our four
divisions.
We conduct ongoing research into more sustainable
materials, more efficient and smart production technologies
as well as new software, IoT and digital platforms that help
us unleash new customer value and services.
Examples of key launches are:
• Our new SMART Digital DDA digital dosing
pump won the prestigious Red Dot Design Award for Best
Product Design due to its accessibility and ease of use.
• Introduction of the new SQ pump controller,
an IoT connected controller for our innovative SQ
submersible pump range, which enables that the
customer has seamless connectivity to Grundfos GO and
Grundfos Connect. With this system, customers receive
automated reporting of usage and performance of their
pumps, while also preventing downtime by means of our
expert analytics.
Board of Directors: Members of the Board of Directors appointed by shareholders
Top leadership: Grundfos Group Management and next level of people leaders (equivalent to ‘other mana-
gerial levels’ as defined in the Danish Financial Statements Act)
*) 2024 includes all entities. For 2023, the basis for calculation included entities covering 85% of the total
headcount
Leadership levels 2024 2023 2025 target
Board of Directors 33% (2 of 6) 20% (1 of 5) 33%
Top leadership* 21% (14 of 67) 21% (15 of 71) 27%
All levels* 25% (485 of 1,950) 25% (370 of 1,486) 27%
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
with innovative digital feature sets and
high standards for robustness.
Intellectual property rights are essential for protecting
our business and staying ahead of competition. In 2024,
Grundfos filed 45 patents for new inventions, which is the
highest level filed in recent years, and we were granted
108 new patents. We occasionally experience violations of
our intellectual property rights, and since we do not accept
unauthorised use of our technology or other intellectual
property, we are determined to enforce our rights.
Product safety and cyber security remain critically
important to Grundfos. We take lead in our industry to
give customers comfort that our solutions meet high
standards on safety and cyber security. In 2024, Grundfos
achieved the ISO27001 certification, which validates that
we have implemented an effective Information Security
Management System to oversee the development and
maintenance of our digital products and solutions.
Strengthening our water treatment business
On 1 September 2024, we welcomed more than 400
new colleagues as we acquired the Commercial &
headquartered in Bologna, Italy. Together with our existing
Eurowater business, which is focused primarily on the North
and Central European markets, we are creating a European
leader in water treatment. The combined business has been
renamed into Grundfos Water Treatment. Please find more
information in the article on p. 20.
Group KPIs
The table below summarises the achievements for the
Group’s most important KPIs.
Financial risks
As a result of our global activities, Group profit and equity
are influenced by a number of financial risks. Foreign
exchange risks in the operating companies are managed
centrally, as are interest and liquidity risks. The Board
of Directors has set up a policy for the use of financial
instruments.
Foreign exchange risk
Grundfos’ policy is to hedge foreign exchange rates for
the most essential flow of goods, i.e. sale and purchase of
goods. The objective of the policy is to reduce the potential
adverse short-term (up to 15 months) impact
from foreign exchange rate fluctuations on cash flows
and earnings, and thereby allow for planning and
counteractions in case of longer-term adverse impacts.
Currency hedging is carried out centrally by Group Treasury
and covers cash flow risk as well as fair value risk. Cash flow
risk is hedged for a period of up to 15 months, aiming at
a coverage of 50-90% of the expected exposure, whereas
fair value hedging is aiming at an 80-90% coverage of the
balance sheet exposure. The most important currencies
2024, currency contracts to reduce the foreign exchange
risk in connection with the flow of goods amounted to DKK
6,760m (2023: DKK 6,470m). Reference is made to Note 31
for further details.
Other financial risks
Grundfos. Maintaining adequate liquidity is therefore key.
In addition to unused borrowing facilities, net deposits
amounted to DKK 8,174m
by the end of 2024 (2023: DKK 8,885m).
• Credit risk: Credit risks derive primarily from trade
debtors, securities and bank receivables. Risks on
trade debtors are diversified across a large number of
customers, reducing the exposure. The credit risk on
bank receivables, forward exchange contracts and similar
is reduced by selecting financial business partners with a
high credit rating.
• Raw material risk: Grundfos does not hedge raw
materials. No single raw material constitutes a significant
proportion of production costs.
Uncertainty relating to recognition and measurement
In preparing the consolidated financial statements,
management makes a number of estimates and
assumptions related to the recognition and measurement
of assets and liabilities, all of which are inherently subject
to uncertainty. As of 31 December 2024, estimates and
assumptions are particularly relevant in respect of the
impairment testing of goodwill.
Grundfos is, as disclosed in Note 28, party to ongoing
MANAGEMENT REVIEW
Sales growth: Annual growth in
sales in local currencies
Customer satisfaction is measured
in the annual External Customer
Satisfaction Survey, ECSS. The
customer satisfaction factor is
measured on three questions
regarding overall customer
satisfaction. Answers are rated on a
scale from 1 to 10, and for reporting
purposes the scores are converted
to an index number between 0
and 100.
Employee motivation and
satisfaction is captured through 62
questions within 15 topic areas in
the annual survey
Return on sales: EBIT before special
items/Revenue
Cash Conversion: Operating
cash flow divided by EBITDA with
Operating cash flow defined for
internal performance purposes
Emissions scope 1 and 2: Emissions
from Grundfos’ own operations
(market-based)
Emissions scope 3:
Emissions from our value chain
The table below summarises the achievements for the Group’s most important KPIs.
KPI 2024 2023 2025 Target
Sales growth
(2.4%) 4.2% Grow more than served market (avg. 4%)
Customer satisfaction
82 81 81
Employee motivation and satisfaction
1
77 78 78
Return on sales
10.8% 12.5% 10%
Cash conversion
0.73 0.97 Average 0.75
Total emissions reduction
Scope 1 and 2 emissions
(market-based)
2
35.7% 20.8% Reduction in 2030 by 50%
Scope 3 emissions
2
23.6% 14.6%
3
Reduction in 2030 by 25%
1.
2024 includes all entities. For 2023, the basis for calculation included entities covering 85% of the total headcount
2.
Accumulated reduction compared to SBTi base year 2020
3.
Restated - baseline data updated
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
disputes and legal actions. None of these disputes and
legal actions will have a significant impact on our financial
position beyond what has been recognised and stated in
the Annual Report.
Outlook for 2025
For 2025, we forecast revenue growth in the range of 4-7%,
including the impacts of the acquisition made in 2024.
The forecast excludes impacts from potential acquisitions
and divestments in 2025. Given uncertainties related to
geopolitical issues, among others the potential introduction
of additional trade tariffs, and due to overall uncertain
market conditions, the assumptions underlying the revenue
forecast may change significantly during 2025.
We forecast an EBIT before special items ratio in line with
our strategic ambition of 10%.
Grundfos Strategy 2025 completed
With the launch of ‘Ignite‘27’ in January 2025, we entered
a new strategy period. For more information on Ignite‘27,
please refer to the article on p. 18. This also means that we
have completed our Strategy 2025.
When we launched Strategy 2025 in 2019, we could not
foresee the unprecedented events that have impacted the
world since 2020. Despite the many unexpected external
factors, we have successfully delivered on the most
important Group KPIs and ambitions we set for ourselves.
Our strategic ambitions and financial KPIs for sales growth,
return on sales and cash conversion were met consistently
during the strategy period. The KPIs for employee and
customer satisfaction were already achieved in 2023.
We have shown solid progress on our carbon emissions
reduction targets and the related SBTi commitments
where we are well ahead. Overall, we are satisfied with our
accomplishments during the Strategy 2025 period.
Management’s Report on the Parent Company
Grundfos Holding A/S is the Parent Company of the
Grundfos Group and holds the shares of all the other
Grundfos Group companies – either directly or indirectly.
The company’s activities include the majority of the
Group’s research and development functions, as well as
Group functions involving coordination, planning and
management.
In this capacity, Grundfos Holding A/S performs several
overarching functions and services. Grundfos Holding A/S
had 2,060 employees at the end of 2024 (2023: 1,886). In
2024, the revenue of Grundfos Holding A/S totalled DKK
5,578m (2023: DKK 5,200m), and EBIT amounted to DKK
1,002m (2023: DKK 718m).
According to the equity method, income from the other
Group companies amounted to DKK 2,410m (2023: DKK
2,524m). Profit after tax stood at DKK 3,427m (2023: DKK
3,417m). The balance sheet shows equity of DKK 24,489m
(2023: DKK 23,127m), corresponding to an equity ratio of
79.3% (2023: 78.3%).
For 2025, we expect revenue as well as EBIT at the same
level as 2024.
MANAGEMENT REVIEW
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Definition of
KEY FIGURES AND FINANCIAL RATIOS:
Sales growth: Annual change in
consolidated net revenue measured in
DKK.
Sales growth in local currencies: Annual
change in consolidated net revenue
adjusted for currency impact.
Interest-bearing net deposit/loan
Securities, Cash and cash equivalents and
Interest-bearing debt.
Return on equity: Consolidated
profit after tax as a percentage
of the average equity.
Equity ratio: Equity at year-end
as a percentage of total assets.
Net cash flow from operating and
investment activities: Net cash flow
from operating and investments
activities before impact from purchase/
sale of securities and acquisition/sale of
companies.
Sustainability key figures
See Sustainability Report for definitions.
Key figures and financial ratios – The Grundfos Group
MANAGEMENT REVIEW
Amounts in DKK million
1 January – 31 December 2024
2024 2023 2022 2021 2020
CONSOLIDATED PROFIT AND LOSS ACCOUNT
Revenue 33,226 34,407 33,341 28,733 26,340
Earnings before interest and tax (EBIT) before special items 3,590 4,309 3,939 3,266 2,606
Earnings before interest and tax (EBIT) 4,064 4,309 3,088 3,266 2,606
Net finance income and expenses 315 395 (339) 104 (42)
Profit before tax 4,379 4,704 2,749 3,370 2,564
CONSOLIDATED PROFIT AFTER TAX 3,433 3,422 2,016 2,659 1,931
CONSOLIDATED BALANCE SHEET
Intangible assets 4,425 2,739 2,530 2,548 1,138
Property, plant and equipment 7,600 7,112 6,517 6,640 5,718
Financial assets 1,315 1,028 1,063 884 777
Current assets 22,494 21,819 20,682 19,196 17,762
TOTAL ASSETS 35,834 32,698 30,792 29,268 25,395
Equity 24,524 23,155 20,946 19,507 17,501
Non-current liabilities 2,168 1,444 1,414 1,436 1,659
Current liabilities 9,142 8,099 8,432 8,325 6,235
TOTAL LIABILITIES AND EQUITY 35,834 32,698 30,792 29,268 25,395
FINANCIAL KEY FIGURES AND RATIOS
Capital investments, tangible 1,278 1,593 1,234 1,078 935
Capital investments, intangible 359 278 193 256 193
Total capital investments 1,637 1,871 1,427 1,334 1,128
Research and development cost, incl. capitalised cost 1,941 1,826 1,677 1,563 1,186
Interest-bearing net deposit/loan 8,174 8,885 6,625 7,482 7,435
Net cash flow from operating and investment activities 2,904 4,079 986 2,781 2,427
Sales growth (3.4%) 3.2% 16.0% 9.1% (4.3%)
Sales growth in local currencies (2.4%) 4.2% 12.1% 10.4% (4.4%)
EBIT before special items as a percentage of net revenue 10.8% 12.5% 11.8% 11.4% 9.9%
Return on equity 14.4% 15.5% 10.0% 14.4% 11.1%
Equity ratio 68.4% 70.8% 68.0% 66.6% 68.9%
SUSTAINABILITY KEY FIGURES
Emission scope 1 and scope 2 (1,000 t CO
2
e) 76 94.1 100.3 114.6 114.9
Emission scope 3 (1,000 t CO
2
e) 112,040 125,224 142,120 - -
EMS (Score) 77 78 76 77 77
Women leaders 25% 25% 24% 22% 24%
Water withdrawal (m
3
) 335,610 339,608 365,126 341,538 318,469
Number of employees at year-end 20,818 19,937 20,026 20,154 19,221
Not adjusted for IFRS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
NDJ artikel
Niels was synonymous with Grundfos. He was
barely two years old when the company was
founded by his father, Poul Due Jensen, and Niels
truly grew up with it. Starting as an apprentice
machinist, he became a fully qualified mechanical
engineer and eventually took over as CEO in 1977,
Grundfos transformed from a Danish company into
a global entity, pioneering intelligent and energy-
efficient pumps and water solutions.
Niels was not only a visionary leader, but also a
compassionate individual who valued respect,
integrity, and diversity. His commitment to
these values was evident in his interactions with
employees and the community.
His legacy includes the development of Grundfos’
first solar-driven pump system in 1982, which laid
the foundation for future innovations in water
introduced the world’s first intelligent pumps, and
this was due to Niels’ insistence and determination.
He was in truth a visionary leader and innovator,
and this mindset continues to live in the Grundfos
organisation.
Niels’ contributions extended beyond business.
Among many other initiatives, he funded a safe
water project in Zeze, Tanzania, providing access
to safe water for over 5,100 people. This quest
for creating access to safe water for the world’s
population will continue in Niels’ spirit. His
dedication to improving lives around the world will
be remembered and cherished.
On 24 September, thousands of Grundfos
employees took to the streets of Bjerringbro to bid
farewell to ‘Mr Grundfos’, a remarkable, deeply
respected and beloved person who left an indelible
mark on Grundfos and the world.
In memoriam:
Niels Due Jensen
On 12 September 2024, former CEO and chairperson
Niels Due Jensen passed away at the age of 81.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
MANAGEMENT REVIEW
Group
Management
Morten Bach Jensen
Group Executive Vice President
CEO Domestic Building Services
Mikael Geday
Group Executive Vice President,
Chief Financial Officer
Jens Ulrik Gernow
Group Executive Vice President
Chief Operating Officer
Bent Jensen
Group Executive Vice President
CEO Commercial Building Services
Poul Due Jensen
Group President,
Chief Executive Officer
Hamed Heyhat
Group Executive Vice President
Mirjam Baijens
Group Executive Vice President
Chief Human Resources Officer
Inge Delobelle
Group Executive Vice President
CEO Industry
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
MANAGEMENT REVIEW
Board of
Directors
Jens Winther Moberg
Chair
Carsten Joachim Reinhardt
Vice Chair
Ágnes Eszter Pauer
Member of the Board,
elected by employees
John Bjerregaard
Jacobsen
Member of the Board,
elected by employees
Søren Lund Nielsen
Member of the Board,
elected by employees
Jacoba Theresia Maria
van der Meijs
Member of the Board
Henrik Ehlers Wulff
Member of the Board
Claus Aagaard
Member of the Board
Annika Ölme
Member of the Board
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Commercial
Building Services
Moderate growth with solid traction in key markets
In 2024, our CBS division experienced an overall moderate growth rate. Three
important markets did, however, represent a solid growth pace, namely the Middle East,
a strategic focus on district energy and high growth customer verticals, such as data
centres.
Market uncertainties characterised the year
Customers in Germany, Austria and Switzerland were challenged by a general economic
slowdown, and the anticipated green transition initiatives in Germany accelerated at
a slower pace than expected. This resulted in moderate sales in the DACH region as a
whole. The Chinese market continued to face challenges in the real estate sector, which
caused lower activity levels compared to previous years.
Despite these challenges, CBS saw an improvement in order intake. Notably, the water
and energy-efficient E-pumps, which help commercial building owners
reach their carbon footprint commitments, grew increasingly popular in Europe and the
Commercial Building Services (CBS)
CBS serves customers within commercial buildings services with reliable and high-tech-
nology products and solutions, as well as a range of services, including energy and
system optimisation. CBS works dedicatedly to helping the end users of commercial
buildings reach their water and climate ambitions, while respecting, protecting and
advancing the flow of water.
7,015m
Revenue 2024 in DKK
(2023: DKK 6,965m)
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Domestic
Building Services
Navigating a challenged European market
2024 was a challenging year for DBS. The division experienced a significant sales drop driven
by low demand for small circulator pumps serving the heating applications market in key
European countries, in combination with impacts from wholesalers reducing their stock levels.
the market negatively. Despite these challenges, our DBS division kept a proactive focus on
stimulating demand and fuelling innovation, and the division maintained its market share in
The division continued its dedication to customer centricity and achieved very high customer
satisfaction scores.
Committed to an energy-efficient future
DBS is committed to providing energy-efficient products and solutions that help mitigate
the growing global challenges. In 2024, the division officially launched the new generation of
these cutting-edge high-quality products, DBS delivers sustainable design along with enhanced
digitalisation and energy efficiency, paving the way for buildings of the future.
Domestic Building Services (DBS)
DBS serves OEMs, distributors, installers and homeowners with some of the world’s most
energy-efficient pumps and solutions for domestic homes.
DBS develops, produces and sells smaller domestic pumps and solutions for single-family
housing and residential buildings, serving five domestic applications in heating, HVAC
OEM, domestic hot water, boosting and wastewater. The DBS division aspires to offer
homeowners the most attractive choices for sustainable homes and comfortable lives.
7,889m
Revenue 2024 in DKK
(2023: DKK 8,937m)
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Industry
Strategic expansion amidst challenging market conditions
In 2024, IND continued to strengthen its position in the Americas, Europe and India, while
contending with an economic slowdown in China and the Asia-Pacific region. The division
remained committed to assisting customers in transitioning to energy-efficient solutions,
and at the same time, the water treatment business was expanded.
A key milestone was reached as Industry welcomed more than 400 new water treatment
colleagues following the acquisition of Culligan’s Commercial & Industrial business in Italy,
treatment portfolio, enabling IND to serve a wider customer base.
Progress towards sustainability goals through robust
customer engagement
Industry maintained strong momentum towards sustainability objectives. Sales of the
intelligent E-pump portfolio significantly increased, reflecting dedicated efforts to
achieve an ambitious target set out to help customers transition towards more energy-
efficient solutions. Throughout the year, the division experienced high levels of customer
engagement focused on sustainability and developed strong collaborations as a trusted
solutions partner for key customers.
Industry (IND)
IND serves industry customers with a wide range of premium quality products, solutions
and services based on pumping and water treatment systems. IND optimises industrial utili-
ties and industrial processes, covering areas such as water treatment or water reuse, system
integration, energy and process optimisation by delivering value-adding digital solutions.
The division helps industrial customers and end users globally reach their water and climate
ambitions while maximising their output.
7,909m
Revenue 2024 in DKK
(2023: DKK 8,036m)
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Water Utility
Leveraging opportunities despite fluctuating sales
markets.
Throughout the year, the division focused on strengthening its foundation for operational
the groundwater business, overall demand persisted with the innovative SQ line of products.
In the municipal sector, our project-based sales experienced growth, and customer demand
remained robust throughout the year.
Innovating for a sustainable future
Innovation, energy efficiency and sustainability of our solutions is the top priority for
positively contribute to the journey toward sustainable water infrastructures and resilient
utilities to upgrade to smarter, more resilient and digitally enabled systems to improve
the efficiency of water infrastructure and effectiveness of investments that create a more
equitable water system for the future.
to create lasting impact by enhancing access to water for underserved communities. In
people.
Water Utility (WU)
aimed at
optimising water management in groundwater and irrigation, clean
committed to transforming challenges into opportunities, pioneering
innovation and delivering consistent value.
5,039m
Revenue 2024 in DKK
(2023: DKK 5,150m)
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
The coming three-year period, 2025-2027, is set to ignite
a journey, which will see Grundfos taking its position as a
globally leading provider of intelligent water and climate
solutions to new heights, shaping our industry in innovation,
circularity and net-zero impact. We do this to fulfil the
Grundfos purpose at a time where water stress, climate
change, and population growth more than ever require our
world-class water- and energy-efficient solutions.
This journey is about honouring our legacy, embracing new
bold aspirations, and continuing to make a meaningful
impact on the world. We set off from 80 proud years, where
Grundfos has been a pioneer in water and climate solutions,
rooted in a belief that innovation and sustainability can
change lives and make businesses thrive. Today, we are
more committed than ever to fulfilling our purpose and
promise of Possibility in every drop.
We see four critical must-win battles that we must tackle
together to accomplish this. They will steer our collective
efforts towards 2027 across all our four divisions and group
functions.
Innovate to grow: We will create groundbreaking solutions
that address the pressing water and
climate needs.
Win in the US: We will strengthen our presence in a
key market that offers significant growth potential.
Expand through M&A: We will leverage strategic
partnerships and acquisitions to unlock new opportunities.
Organise for competitiveness: We will boost productivity
and reinvest in future capabilities,
growth and innovation.
We are equally excited and energised as we enter the new
strategy period, knowing well that we are facing tough
competition and a complex world market.
We believe that this strategy will be an important step
on our path to fulfilling our purpose. Millions of people
around the globe depend on sustainable water and energy
solutions, and we are ready to meet these challenges with
innovation, courage and collaboration.
Ignite'27: Our
2025-2027 strategy
Coinciding with the release of this annual report,
Grundfos enters a new strategy period, which
we call Ignite'27.
Ignite’27 is the Grundfos Group Strategy 2025-2027.
The strategy marks the ‘ignition’ of a rocket that will
bring us towards our Winning Aspiration 2040 of being
the leading provider of intelligent water and climate
solutions globally, shaping our industry in innovation,
circularity and net-zero impact.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Innovation and new technology deployment is at
the core of how Grundfos serves our customers.
Throughout its 80-year history, Grundfos has used
technology to deliver high-quality and increasingly
energy-efficient solutions to support our customers
and end users in solving their water and energy
challenges. Ranging from the first deep ground water
pump in the 1940s to delivering the world’s first
‘intelligent pump’ during the 1990s by embedding
Grundfos aims to constantly deliver innovative
solutions and technology to our markets.
Today, our commitment to delivering customer and
end user value with new technology is stronger
than ever. Driven by industry-leading innovation
investment levels, Grundfos successfully delivered 26
new product launches to market in 2024.
Notable innovations include the upgrade of our MGE
motor programme with coherent functional modules
and high-efficient motors for the 11-22kW, the
to the heat pump business.
Furthermore, still guided by the urge to support our
customers in solving their most pressing problems,
Grundfos passed audit on the IEC 62443-4-1 cyber
security standard in 2024, thereby joining several
of the biggest industry companies in the world by
documenting secure product development based on
the international IEC 62443-4 standard.
Technology and
innovation are levers
for climate action
and growth
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
As populations grow and industrial demands
increase, water stress is becoming an
issue affecting communities and industries
worldwide.
Water scarcity has become a pressing concern
on every continent, driven by climate change,
pollution and unsustainable water practices.
The World Health Organization estimates that
by 2050, half of the world’s population will
be living in water-stressed areas at least one
month per year.
In response to these global challenges,
Grundfos has since 2020 been on a journey
to build a powerful new water treatment
platform, integrating advanced technologies
and processes to enhance the efficiency and
effectiveness of water treatment. Through
these enhanced water treatment capabilities
and solutions, Grundfos is equipped to make
a substantial difference in industries where
water quality is paramount, including food and
beverage, pharma, semi-conductors and data
centres.
The Grundfos water treatment business
is currently most firmly established in the
European market. Here, the expertise of
the acquired company Eurowater and the
Commercial & Industrial business of Culligan in
combination with Grundfos’ core capabilities
within pump technology, offers the customers
unique opportunities of intelligent and energy-
efficient water treatment solutions.
Water Treatment Europe has a total annual
revenue of approximately DKK 1.5bn and
employs close to 1,000 water treatment
specialists, positioning Grundfos as a leader
in water treatment in Europe. This part of
Grundfos’ business is projected to grow
significantly in future.
Building a water
treatment platform
In the face of escalating global water resource
challenges, the efficient use, reuse and treatment of
water has never been more important.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
22 Management’s Statement
23 Independent Auditor’s Report
Management’s Statement
and Auditor’s Report
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Registered Group Management
Board of Directors
MANAGEMENT’S STATEMENT AND AUDITOR’S REPORT
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
MANAGEMENT’S STATEMENT AND AUDITOR’S REPORT
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
MANAGEMENT’S STATEMENT AND AUDITOR’S REPORT
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
26 Consolidated statement of profit and loss
27 Consolidated statement of other comprehensive income
28 Consolidated statement of financial position
30 Consolidated statement of cash flows
31 Consolidated statement of changes in equity
32 Notes to the consolidated financial statements
Consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Consolidated statement of profit and loss
CONSOLIDATED FINANCIAL STATEMENTS
Amounts in DKK million
1 January - 31 December 2024
NOTE 2024 2023
Revenue 1 33,226 34,407
Production cost (19,343 ) (18,961 )
GROSS PROFIT 13,883 15,446
Research and development cost 2 (1,839 ) (1,842 )
Selling and distribution cost 3 (5,127 ) (5,926 )
Administrative cost 4 (3,327 ) (3,369 )
EARNINGS BEFORE INTEREST AND TAX (EBIT) AND BEFORE SPECIAL ITEMS 3,590 4,309
Special items 7 474 0
EARNINGS BEFORE INTEREST AND TAX (EBIT) 4,064 4,309
Finance income 8 420 463
Finance expenses 8 (105 ) (68 )
PROFIT BEFORE TAX 4,379 4,704
Income tax expenses 9 (946 ) (1,282 )
PROFIT FOR THE YEAR 3,433 3,422
ATTRIBUTABLE TO:
Shareholders of Grundfos Holding A/S 3,427 3,417
Non-controlling interests (NCI) 6 5
TOTAL 3,433 3,422
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Consolidated statement of other comprehensive income
CONSOLIDATED FINANCIAL STATEMENTS
Amounts in DKK million
1 January - 31 December 2024
NOTE 2024 2023
PROFIT FOR THE YEAR 3,433 3,422
Other comprehensive income that may be reclassified to profit and loss in subsequent periods:
Net gain/loss on cash flow hedges (149 ) (47 )
Exchange rate adjustments on foreign operations (238 ) (237 )
Tax on foreign exchange adjustments and hedging instruments 5 33
OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIOD, NET OF TAX (382 ) (251 )
Other comprehensive income that will not be reclassified to profit and loss in subsequent periods:
Remeasurement gain/loss on defined benefit plans 18 60 (2 )
Tax on defined benefit plans 9 (16 ) (3 )
OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS,
NET OF TAX
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX (338 ) (256 )
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 3,095 3,166
Attributable to:
Shareholders of Grundfos Holding A/S 3,089 3,161
Non-controlling interests (NCI) 6 5
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 3,095 3,166
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Consolidated statement of financial position
Amounts in DKK million
ASSETS
NOTE 2024 2023
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Goodwill 10 2,177 1,078
Other intangible assets 10 1,900 1,416
Completed development projects 10 111 60
Development projects in progress 10 237 185
TOTAL INTANGIBLE ASSETS 4,425 2,739
PROPERTY, PLANT AND EQUIPMENT
11 3,128 3,029
Technical installations and machinery 11 2,616 2,217
Other technical installations 11 314 338
Property, plant and equipment in progress 11 952 1,135
Right-of-use assets 12 590 393
TOTAL PROPERTY, PLANT AND EQUIPMENT 7,600 7,112
FINANCIAL ASSETS
Securities 13 73 64
Deferred tax assets 9 1,013 794
Pension assets 18 165 105
Other accounts receivable 64 65
TOTAL FINANCIAL ASSETS 1,315 1,028
TOTAL NON-CURRENT ASSETS 13,340 10,879
CURRENT ASSETS
Inventories 14 5,916 5,663
Trade and other receivables 15 7,579 6,574
Income tax receivable 783 630
Securities 13 4,707 3,144
Cash and cash equivalents 16 3,509 5,808
TOTAL CURRENT ASSETS 22,494 21,819
TOTAL ASSETS 35,834 32,698
CONSOLIDATED FINANCIAL STATEMENTS
As at 31 December 2024
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Consolidated statement of financial position
Amounts in DKK million
EQUITY AND LIABILITIES
NOTE 2024 2023
EQUITY
Share capital 17 381 381
Hedge transaction reserve (101 ) 12
Exchange adjustment reserve (27 ) 244
Retained earnings 22,536 20,790
Proposed dividend 1,700 1,700
EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF GRUNDFOS HOLDING A/S 24,489 23,127
Non-controlling interests 35 28
TOTAL EQUITY 24,524 23,155
NON-CURRENT LIABILITIES
Pensions and similar obligations 18 135 140
Provisions 19 1,201 755
Deferred tax liabilities 9 410 302
12, 20, 25 364 239
Interest-bearing debt 25 58 8
Total non-current liabilities 2,168 1,444
CURRENT LIABILITIES
Provisions 19 295 280
Trade and other payables 21 2,938 2,656
Interest-bearing debt 25 57 123
12, 20, 25 243 162
Income tax payable 1,166 1,080
Other liabilities 22 4,443 3,798
TOTAL CURRENT LIABILITIES 9,142 8,099
TOTAL LIABILITIES 11,310 9,543
TOTAL LIABILITIES AND EQUITY 35,834 32,698
As at 31 December 2024
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Consolidated statement of cash flows
Amounts in DKK million
1 January - 31 December 2024
NOTE 2024 2023
OPERATING ACTIVITIES
Profit after tax 3,433 3,422
Depreciation and amortisation of non-current assets 6, 10, 11, 12 1,586 1,845
Finance income 8 (420 ) (463 )
Finance expenses 8 105 68
(24 ) 64
Other adjustments (489 ) 164
Tax for the year 9 946 1,282
Changes in net working capital 24 (59 ) 674
Changes in warranty and other provisions 423 106
Net foreign exchange differences (56 ) 45
CASH FLOW FROM OPERATIONS
BEFORE FINANCIAL ITEMS AND TAX
Taxes paid (1,258 ) (1,504 )
Interest paid and realised currency losses 8 (51 ) (57 )
Interest received and realised currency gains 8, 13 360 308
Interest paid on lease liabilities 8, 12 (25 ) (11 )
CASH FLOW FROM OPERATING ACTIVITIES 4,471 5,943
NOTE 2024 2023
INVESTING ACTIVITIES
Purchase of intangible assets 10 (359 ) (278 )
Proceeds from sale of property, plant and equipment 70 6
Purchase of property, plant and equipment 11 (1,278 ) (1,593 )
Acquisition of subsidiaries, net of cash acquired 27 (1,622 ) (629 )
Purchase of securities 13 (3,403 ) (1,288 )
Sale of securities 13 1,891 1,441
CASH FLOW FROM INVESTING ACTIVITIES (4,701 ) (2,341 )
NET CASH FLOW FROM OPERATING AND INVESTING ACTIVITIES (230 ) 3,602
FINANCING ACTIVITIES
Payment of principal portion of lease liabilities 12, 25 (233 ) (204 )
Proceeds from borrowings 25 0 40
Repayment of borrowings 25 (11 ) 0
Purchase of own shares (79 ) (12 )
Dividend paid (1,701 ) (1,000 )
CASH FLOW FROM FINANCING ACTIVITIES (2,024 ) (1,176 )
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (2,254 ) 2,426
Cash and cash equivalents as at 1 January 5,808 3,523
EXCHANGE RATE ADJUSTMENTS (45 ) (141 )
Available fund (Opening) 5,763 3,382
CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 3,509 5,808
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Consolidated statement of changes in equity
Amounts in DKK million
Hedge transaction reserve
The Group has in OCI presented the
gains/losses arising from the hedge
transaction reserve, including those
related to foreign currency forward
contracts that are hedges of forecast
revenue and inventory purchases, that
may be reclassified to profit or loss in
subsequent periods. In subsequent
periods, the amount previously
recorded in the cash flow hedge
reserve will be recognised in profit or
loss when the asset (liability) is being
recovered (settled) or if the conditions
for cash flow hedging are no longer
fulfilled.
Exchange adjustment reserve
The Group recognised translation
differences on foreign operations in a
separate component of equity, i.e. the
exchange adjustment reserve.
1 January - 31 December 2024
NOTE
SHARE
CAPITAL
RETAINED
EARNINGS
HEDGE
TRANSACTION
RESERVE
EXCHANGE
ADJUSTMENT
RESERVE
PROPOSED
DIVIDEND
EQUITY
ATTRIBUTABLE
TO
SHAREHOLDERS
OF GRUNDFOS
HOLDING A/S
NON
CONTROLLING
INTEREST EQUITY
BALANCE AT 1 JANUARY 2023
PROFIT/ LOSS FOR THE YEAR, ATTRIBUTABLE TO
SHAREHOLDERS
Actuarial gain/loss 18 0 (2 ) 0 0 0 (2 ) 0 (2 )
Fair value adjustment of hedging instruments 0 0 (47 ) 0 0 (47 ) 0 (47 )
Exchange rate adjustments, affiliated companies, etc. 0 0 0 (236 ) 0 (236 ) (1 ) (237 )
Tax on other comprehensive income 0 (3 ) 12 21 0 30 0 30
TOTAL OTHER COMPREHENSIVE INCOME 0 (5 ) (35 ) (215 ) 0 (255 ) (1 ) (256 )
Dividend paid 17 0 0 0 0 (1,000 ) (1,000 ) 0 (1,000 )
Purchase of treasury shares 0 (287 ) 0 0 0 (287 ) 0 (287 )
Sale of own shares 0 138 0 0 0 138 0 138
Share-based compensation 0 192 0 0 0 192 0 192
TOTAL TRANSACTIONS WITH SHAREHOLDERS 0 43 0 0 (1,000 ) (957 ) 0 (957 )
BALANCE AT 31 DECEMBER 2023 381 20,790 12 244 1,700 23,127 28 23,155
PROFIT/LOSS FOR THE YEAR, ATTRIBUTABLE TO
SHAREHOLDERS
Actuarial gain/loss 18 0 60 0 0 0 60 0 60
Fair value adjustment of hedging instruments 0 0 (149 ) 0 0 (149 ) 0 (149 )
Exchange rate adjustments, affiliated companies, etc. 0 0 0 (240 ) 0 (240 ) 2 (238 )
Tax on other comprehensive income 0 (16 ) 36 (31 ) 0 (11 ) 0 (11 )
TOTAL OTHER COMPREHENSIVE INCOME 0 44 (113 ) (271 ) 0 (340 ) 2 (338 )
Dividend paid 17 0 0 0 0 (1,700 ) (1,700 ) (1 ) (1,701 )
Purchase of treasury shares 0 (378 ) 0 0 0 (378 ) 0 (378 )
Sale of own shares 0 125 0 0 0 125 0 125
Share-based compensation 26 0 228 0 0 0 228 0 228
TOTAL TRANSACTIONS WITH SHAREHOLDERS 0 (25 ) 0 0 (1,700 ) (1,725 ) (1 ) (1,726 )
BALANCE AT 31 DECEMBER 2024 381 22,536 (101 ) (27 ) 1,700 24,489 35 24,524
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Notes index
Note 1 Revenue .................................................................................................33
Note 2 Research and development cost ...........................................................34
Note 3 Selling and distribution cost ..................................................................34
Note 4 Administration cost ............................................................................... 34
Note 5 Staff cost ...............................................................................................35
Note 6 Depreciation, amortisation and impairments ....................................... 36
Note 7 Special items .........................................................................................36
Note 8 Finance income and expenses .............................................................. 37
Note 9 Tax ..........................................................................................................38
Note 10 Intangible assets ....................................................................................40
Note 11 Property, plant and equipment .............................................................43
Note 12 Right-of-use assets ................................................................................. 45
Note 13 Securities ............................................................................................... 47
Note 14 Inventories ............................................................................................48
Note 15 Trade and other receivables .................................................................49
Note 16 Cash and cash equivalents .................................................................... 50
Note 17 Share capital .......................................................................................... 51
Note 18 Pension and similar obligations ............................................................52
Note 19 Provisions ..............................................................................................56
Note 20 Bank and other loans ............................................................................. 57
Note 21 Trade and other payables ......................................................................57
Note 22 Other liabilities ...................................................................................... 58
Note 23 Fees to auditors appointed by the shareholders ..................................58
Note 24 Changes in working capital ....................................................................58
Note 25 Changes in liabilities arising from financing activities...........................59
Note 26 Share-based compensation expenses ..................................................60
Note 27 Business combinations .........................................................................62
Note 28 Commitments and contingencies ..........................................................64
Note 29 Financial risk management and financial assets ...................................65
Note 30 Capital management..............................................................................71
Note 31 Hedging activities and derivatives ......................................................... 72
Note 32 Related parties .......................................................................................76
Note 33 Events after the balance sheet date ...................................................... 77
Note 34 Information regarding the Group ..........................................................77
Note 35 Summary of material accounting policies .............................................78
Note 36 Grundfos Holding A/S Group general accounting policies .................... 81
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Notes to the consolidated financial statements
Amounts in DKK million
2024 2023
DIVISIONS
Commercial Building Services 7, 01 5 6,965
Domestic Building Services 7,8 89 8,937
Industry 7,909 8,036
5,039 5,150
Other 5,374 5,319
TOTAL 33,226 34,407
2024 2023
GEOGRAPHICAL MARKETS
Europe 17,4 84 18,592
North and South America 7,6 01 7, 26 0
Asia 6,371 6,878
The Middle East/Africa 1,770 1,677
TOTAL 33,226 34,407
Note 1 Revenue
Revenue breakdown according to the following divisions and regions:
Revenue includes sale of
goods of DKK 32,548 million
(2023: DKK 33,715 million) and
service sales of DKK
678 million (2023: DKK
692 million).
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 2 Research and development cost
2024 2023
Staff cost 1,356 1,188
Depreciation and amortisation 142 139
Other research and development cost 341 515
TOTAL 1,839 1,842
Note 3 Selling and distribution cost
2024 2023
Staff cost 2,912 2,733
Distribution cost 631 665
Depreciation, amortisation and impairment 110 502
Other selling and distribution related cost 1,474 2,026
TOTAL 5,127 5,926
Note 4 Administration cost
2024 2023
Staff cost 1,762 1,657
Depreciation and amortisation 244 230
Other administration 1,321 1,482
TOTAL 3,327 3,369
Notes to the consolidated financial statements
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 5 Staff Cost
2024 2023
Wages and salaries 8,633 7,98 8
Share-based payments 228 192
Pensions, defined benefit plans 20 72
Pensions, defined contribution plans 487 346
Other social security cost 834 666
TOTAL 10,202 9,264
Staff cost is recognised as follows:
2024 2023
Production cost 4,172 3,686
Research and development cost 1,356 1,188
Selling and distribution cost 2,912 2,733
Administration cost 1,762 1,657
TOTAL 10,202 9,264
Average number of full-time employees 19,854 19,916
Number of employees at year-end 20,818 19,937
BOARD OF DIRECTORS
OF THE PARENT
COMPANY
REGISTERED GROUP
MANAGEMENT OF THE
PARENT COMPANY
OTHER GROUP
MANAGEMENT
BOARD OF DIRECTORS
OF THE PARENT
COMPANY
REGISTERED GROUP
MANAGEMENT OF THE
PARENT COMPANY
OTHER GROUP
MANAGEMENT
Remuneration 11 22 23 11 21 19
Cash Bonus 0 13 9 0 14 15
Pensions and other post-employment benefits 0 4 3 0 5 3
Termination benefits 0 0 3 0 0 1
Share-based payments (Note 26) 0 9 1 0 11 2
TOTAL 11 48 39 11 51 40
20232024
described in Note 26 Share-based
compensation expenses.
Wages and salaries include severance
cost of DKK 449m mainly related to the
planned Wahlstedt plant relocation.
Selected CO
2
emissions-related KPIs are
included as part of Grundfos’ executive
and senior leadership remuneration
programme for short-term and
long-term incentives. For further
information see Note 26
For details on members of Other Group
Management, please refer
to page 12 in the Annual Report
Staff cost includes fees to Group Management and the Board of Directors of Grundfos Holding A/S for
directorships in Grundfos Holding A/S and can be specified as follows:
Notes to the consolidated financial statements
CONSOLIDATED FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 6 Depreciation, amortisation and impairments
Note 7 Special items
2024 2023
Intangible non-current assets, Note 10 341 707
Tangible non-current assets, Note 11 1,001 917
Right-of-use assets, Note 12 244 221
TOTAL 1,586 1,845
2024 2023
Recycling of exchange adjustment reserve (353) 0
Other cost related to divestment (121) 0
TOTAL (474) 0
Depreciation, amortisation and impairment are recognised in the statement of income and loss as follows:
2024 2023
Production cost 1,116 974
Research and development cost 116 139
Selling and distribution cost 110 502
Administrative cost 244 230
TOTAL 1,586 1,845
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
In August 2022, Grundfos announced the exit from Russia. The exit decision led to a one-off expense recognition of DKK 851m reported as special items in the consolidated profit and loss accounts. The one-off expense was based on
management’s best estimate and is comprised of impairment of assets and other cost such as severance and other legal commitments.
In December 2022, Grundfos signed an agreement with Grundfos Russia local management members to sell the two Grundfos legal entities in Russia. The divestment of the Russian business to the local management was finalised after
approvals from the Russian authorities were obtained in 2024 (OOO Grundfos Istra in March and OOO Grundfos in June).
into DKK for Group reporting purposes within other comprehensive income has been recycled into profit and loss.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 8 Finance income and expenses
2024 2023
Interest income bonds 92 71
Value adjustment bonds 41 63
Dividend income shares 18 24
Value adjustment shares 67 94
Other financial income 202 211
TOTAL 420 463
Interest on lease liabilities 25 11
29 0
Other finance expenses 51 57
TOTAL 105 68
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 9 Tax
Note 9.1 Income taxes in statement of profit and loss and reconciliation
2024 2023
TAX ON THE PROFIT FOR THE YEAR IS SPECIFIED AS FOLLOWS:
Tax on profit/loss for the year 946 1,282
Tax on other comprehensive income, deferred 20 9
Tax on other comprehensive income, current (31) 20
TOTAL 935 1,311
TAX ON THE PROFIT FOR THE YEAR IS CALCULATED AS FOLLOWS:
Current income taxes 1,179 1,253
Deferred income taxes (245) 20
Change in deferred tax due to change in tax rates 0 0
Deferred income taxes regarding previous years 23
Adjustment regarding previous years (12) 47
Top-up corporate income tax 1 0
TOTAL 946 1,282
EFFECTIVE TAX RATE IS CALCULATED AS FOLLOWS:
Danish tax rate 22% 22%
Deviation in tax rate in foreign companies in relation to Danish tax rate 1% 1%
Non-taxable income and non-deductible expenses (2%) 2%
Non-deductible withholding taxes 1% 1%
Other, including adjustments regarding previous years 0% 1%
EFFECTIVE TAX RATE 22% 27%
CONSOLIDATED OTHER COMPREHENSIVE INCOME:
DEFERRED TAX RELATED TO ITEMS RECOGNISED IN OCI DURING IN THE YEAR
Net gain/loss on cash flow hedges 36 12
Remeasurement gain/loss on actuarial gains/losses (16) (3)
DEFERRED TAX CHARGED TO OCI 20 9
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
2024 2023
CHANGES IN DEFERRED TAX
NET DEFERRED TAX ASSETS 1 JANUARY 492 562
Acquisition of companies (121) (88)
Exchange rate adjustment (10) (9)
Change in tax rate 0 0
Deferred tax recognised in profit and loss account 222 18
Deferred tax recognised in equity 20 9
NET DEFERRED TAX ASSETS 31 DECEMBER 603 492
BREAKDOWN OF DEFERRED TAX
Non-current assets (459) (220)
Current assets 668 423
Provisions 335 210
59 79
NET DEFERRED TAX ASSETS 603 492
REFLECTED IN THE STATEMENT OF FINANCIAL POSITION AS FOLLOWS:
Deferred tax assets 1,013 794
Deferred tax liabilities (410) (302)
NET DEFERRED TAX ASSETS 603 492
Note 9.2 Deferred taxes
The Group accumulated tax losses of
DKK 99m (2023: DKK 98m) that are
available indefinitely for offsetting
against future taxable profits of the
companies in which the losses arose.
Deferred tax assets have
not been recognised in respect of
these losses as they may not be used
to offset taxable profits elsewhere in
the Grundfos Group. They have arisen
in subsidiaries that have been loss-
making for some time, and there are
no other tax planning opportunities or
other evidence of recoverability in the
near future.
Cumulative
deferred income
taxes recorded in equity amounted
to DKK 174m (2023: DKK 154m). The
Group does not recognise any deferred
taxes on investments in subsidiaries
because it controls the dividend policy
of its subsidiaries – i.e. the Group
controls the timing of reversal of the
related taxable temporary differences
and management is satisfied that no
material amounts will reverse in
the foreseeable future.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 10 Intangible assets
GOODWILL
OTHER
INTANGIBLE ASSETS
COMPLETED
DEVELOPMENT PROJECTS
DEVELOPMENT
PROJECTS IN PROGRESS TOTAL
COST AT 1 JANUARY 2024 1,467 2,305 192 185 4,149
Acquisition of companies 1,062 461 0 0 1,523
Additions 0 227 20 112 359
Disposals 0 (320) (9) 0 (329)
Transfers 0 61 60 (60) 61
Exchange rate adjustments 63 63 0 0 126
COST AT 31 DECEMBER 2024 2,592 2,797 263 237 5,889
AMORTISATION AND IMPAIRMENT AT 1 JANUARY 2024 389 889 132 0 1,410
Amortisation 0 312 29 0 341
Impairment 0 0 0 0 0
Amortisation and impairment on disposals 0 (319) (9) 0 (328)
Exchange rate adjustments 26 15 0 0 41
AMORTISATION AND IMPAIRMENT AT 31 DECEMBER 2024 415 897 152 0 1,464
CARRYING AMOUNT AT 31 DECEMBER 2024 2,177 1,900 111 237 4,425
COST AT 1 JANUARY 2023 1,228 2,074 224 73 3,599
Acquisition of companies 271 426 0 0 697
Additions 0 155 10 113 278
Disposals 0 (361) (43) 0 (404)
Transfers 0 35 1 (1) 35
Exchange rate adjustments (32) (24) 0 0 (56)
COST AT 31 DECEMBER 2023 1,467 2,305 192 185 4,149
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
GOODWILL
OTHER
INTANGIBLE ASSETS
COMPLETED
DEVELOPMENT PROJECTS
DEVELOPMENT
PROJECTS IN PROGRESS TOTAL
AMORTISATION AND IMPAIRMENT AT 1 JANUARY 2023 0 967 102 0 1,069
Amortisation 0 279 30 0 309
Impairment 398 0 0 0 398
Amortisation and impairment on disposals 0 (350) 0 0 (350)
Exchange rate adjustments (9) (7) 0 0 (16)
AMORTISATION AND IMPAIRMENT AT 31 DECEMBER 2023 389 889 132 0 1,410
CARRYING AMOUNT AT 31 DECEMBER 2023 1,078 1,416 60 185 2,739
Amortisation of intangible assets is included in the Consolidated Statement
OTHER INTANGIBLE ASSETS
COMPLETED
DEVELOPMENT PROJECTS OTHER INTANGIBLE ASSETS
COMPLETED
DEVELOPMENT PROJECTS
Research and development expenses 108 29 101 30
Selling and distribution expenses 107 0 90 0
Administration expenses 97 0 88 0
TOTAL 312 29 279 30
2024 2023
Carrying amount of goodwill:
2024 2023
Industry - Water Treatment Solutions
1,801 717
Industry - Pump Solutions
93 88
239 229
Others
44 44
TOTAL
2,177 1,078
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Impairment test
End of 2024, the reported goodwill amounts to DKK 2,177m.
Goodwill primarily arose from the acquisitions of Silhorko-Eurowa
-
ter in 2020, Mechanical Equipment Company Inc. (MECO) in 2021,
Metasphere in 2023 and the Commercial & Industrial business of
Culligan in 2024.
Goodwill represents the premium paid by Grundfos above the fair
value of the net assets acquired. It is attributable to synergies and
know-how resulting from the combination of the businesses and
the value of the employee base.
Goodwill is allocated to cash-generating units which are determined
to be the most appropriate business segment levels it pertains
to. For the reporting period, following cash generating units were
identified:
(i) Industry - Water Treatment Solutions, (ii) Industry - Pump Solu
-
the cash generating units is specified in above table.
As at the reporting date, an impairment test was performed on
the carrying amount of intangible assets with indefinite useful lives
which for the reporting period only represents goodwill.
Water Treatment Solutions
Impairment tests are performed based on expected future cash
flows that are built from budgets and long-term business plans. The
carrying amount of the net assets including goodwill is compared to
the recoverable amount. The recoverable amount is calculated using
cash flow projections for a 5-year period which from thereafter
converge into a terminal value applying perpetuity growth. The pro-
jected cash flows represent management’s best estimate of revenue,
profitability and investment plans for the cash generating units.
The discount rate applied to cash flow projections is 8.9% and
terminal value cash flows are extrapolated using a 2.0% growth rate
which represents the estimated long-term average growth rate for
the industry.
Key assumptions and sensitivity analysis
The recoverable amount of the Water Treatment Solutions business
is determined to be in close range to the carrying amount and the
impairment test results are sensitive to assumptions made for the
(i) EBITDA growth rate (ii) the terminal value growth rate and (iii)
the discount rate. Each of these parameters have been assessed
and estimated using the most recently available market data and
management’s experience and best judgement on the business
outlook.
The EBITDA growth rate is built on assumptions on volume growth
and profitability expectations that leverage synergies. A change in
EBITDA margin by +/- 1 percentage point will change the value of
the cash generating unit by +/- 9.3% (DKK 329m in either direction).
The terminal value growth rate is in line with long term industry
average growth projections at 2.0%. A change in the growth rate
by +/- 0.5 percentage points will increase or decrease the value of
the cash generating unit by 3.2% (DKK 108m) and 2.7% (DKK 94m)
respectively.
The discount rate applied to cash flow projections is 8.9%. This rate
was determined based on available market data and an assessment
of the risk profile of the individual entities.
Specifically, a risk-free interest rate based on the current yield of
a 10-year government bond in the relevant geography plus an
estimated
market-risk premium are used to estimate the required rate of
return on equity. Estimated risk premiums are then added, depend
-
ing on industry, business model and geography. The required rate
of return on debt is based on an estimated credit assessment of the
entities and current interest rate levels. The required rates of return
on equity and debt are weighted using a capital structure based on
a group of company peers.
An increase in the weighted average cost of capital (WACC) by
0.5 percentage points will decrease the equity value of the cash
generating unit by 7.5% (DKK 265m) and a decrease in the WACC
by 0.5 percentage points will increase the equity value of the cash
generating unit by 8.7% (DKK 307m).
Water Utility division
Impairment tests are performed based on expected future cash
flows that are built from budgets and long-term business plans. The
carrying amount of the net assets including goodwill is compared
to the recoverable amount. The recoverable amount is calculated
using cash flow projections for a 5-year period which from there
-
after converge into a terminal value applying perpetuity growth.
The projected cash flows represent management’s best estimate of
revenue, profitability and investment plans for the cash generating
units.
The discount rate applied to cash flow projections is 8.5% and
terminal value cash flows are extrapolated using a 2.0% growth rate
which represents the estimated long-term average growth rate for
the industry.
than the carrying amount.
The Group did not identify any reasonably possible change in key
assumptions which could cause an impairment loss to be recog
-
Amounts in DKK million
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 11 Property, plant and equipment
LAND AND BUILDINGS TECHNICAL INSTALLATIONS
AND MACHINERY
OTHER TECHNICAL
INSTALLATIONS
PROPERTY, PLANT AND
EQUIPMENT IN PROGRESS
TOTAL
COST AT 1 JANUARY 2024 7,334 14,370 1,916 1,135 24,755
Acquisition of companies 35 7 6 1 49
Additions 59 404 75 740 1,278
Disposals (40) (527) (434) (5) (1,006)
Transfers 110 684 39 (894) (61)
Exchange rate adjustments (148) (138) (20) (25) (331)
COST AT 31 DECEMBER 2024 7,350 14,800 1,582 952 24,684
DEPRECIATION AND IMPAIRMENT AT 1 JANUARY 2024 4,305 12,153 1,578 0 18,036
Depreciation 227 633 141 0 1,001
Write-down of the year 0 0 0 0 0
Depreciation and impairment on disposals (31) (475) (431) 0 (937)
Transfers 0 0 0 0 0
Exchange rate adjustments (279) (127) (20) 0 (426)
DEPRECIATION AND IMPAIRMENT AT 31 DECEMBER 2024 4,222 12,184 1,268 0 17,674
CARRYING AMOUNT 31 DECEMBER 2024 3,128 2,616 314 952 7,010
COST AT 1 JANUARY 2023 6,974 13,864 1,859 1,004 23,701
Acquisition of companies 0 3 0 0 3
Additions 97 295 76 1,125 1,593
Disposals (37) (348) (63) 7 (441)
Transfers 334 577 57 (1,003) (35)
Exchange rate adjustments (34) (21) (13) 2 (66)
COST AT 31 DECEMBER 2023 7,334 14,370 1,916 1,135 24,755
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
LAND AND BUILDINGS TECHNICAL INSTALLATIONS
AND MACHINERY
OTHER TECHNICAL
INSTALLATIONS
PROPERTY, PLANT AND
EQUIPMENT IN PROGRESS
TOTAL
DEPRECIATION AND IMPAIRMENT AT 1 JANUARY 2023 4,138 11,939 1,518 0 17,595
Depreciation 224 562 131 0 917
Write-down of the year 0 0 0 0 0
Depreciation and impairment on disposals (32) (330) (62) 0 (424)
Transfers 0 0 0 0 0
Exchange rate adjustments (25) (18) (9) 0 (52)
DEPRECIATION AND IMPAIRMENT AT 31 DECEMBER 2023 4,305 12,153 1,578 0 18,036
CARRYING AMOUNT 31 DECEMBER 2023 3,029 2,217 338 1,135 6,719
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 12 Right-of-use assets
The Group’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Group is restricted from assigning and subleasing the leased assets.
The Group has leases with lease terms of 12 months or less and leases of office equipment with low value. The Group applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.
LAND AND BUILDINGS MOTOR VEHICLES OTHER EQUIPMENT TOTAL
CARRYING AMOUNT AT 1 JANUARY 2024 190 167 36 393
Additions 215 197 33 445
0 (6) (2) (8)
Depreciation (103) (118) (23) (244)
Exchange rate adjustments 2 (1) 3 4
CARRYING AMOUNT AT 31 DECEMBER 2024 304 239 47 590
CARRYING AMOUNT AT 1 JANUARY 2023 266 107 38 411
Additions 42 155 24 221
(8) (3) (2) (13)
Depreciation (111) (88) (22) (221)
Exchange rate adjustments 1 (4) (2) (5)
CARRYING AMOUNT AT 31 DECEMBER 2023 190 167 36 393
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements during the period:
2024 2023
BALANCE AT 1 JANUARY 401 401
Additions 444 221
Interest 25 11
Disposals (8) (13)
Payments (255) (219)
BALANCE AT 31 DECEMBER 607 401
Current 243 162
Non-current 364 239
TOTAL 607 401
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
The Group has lease contracts,
primarily buildings and vehicles used
of motor vehicles generally
have lease terms between
4 and 5 years and buildings
have lease terms between
1 and 10 years.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
2024 2023
253 167
One to three years 304 200
More than three years 74 46
TOTAL UNDISCOUNTED LEASE LIABILITIES AT 31 DECEMBER 631 413
The following are the amounts recognised in profit and loss:
2024 2023
Depreciation expense of right-of-use assets 243 220
Interest expense on lease liabilities 25 11
Expense relating to short-term leases 74 93
Variable lease payments 29 33
TOTAL 371 357
The Group had total cash outflows for leases of DKK 258m in 2024 (DKK 215m in 2023).
The Group has several lease contracts that include extension and termination options. Management assesses whether or not it is reasonably certain that these options will be exercised after considering all relevant
facts and circumstances.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 13 Securities
2024 2023
COST AT 1 JANUARY 3,224 3,377
Additions during the year 3,403 1,288
Disposals during the year (1,891) (1,441)
COST AT 31 DECEMBER 4,736 3,224
Value adjustments at 1 January (16) (172)
Value adjustments during the year 60 156
VALUE ADJUSTMENTS AT 31 DECEMBER 44 (16)
BALANCE AT 31 DECEMBER 4,780 3,208
Current 4,707 3,144
Non-current 73 64
TOTAL 4,780 3,208
The portfolio consists solely of listed shares and bonds and is distributed as follows:
2024 2023
Shares 1,368 786
Bonds 3,412 2,422
TOTAL 4,780 3,208
Information about the Group’s financial assets and associated risks is disclosed in note 29.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
During 2024, DKK 32m (2023: DKK 60m) was recognised as an expense for inventories carried at net realisable value.
This is recognised in cost of sales.
Raw materials and consumables 2,316 2,120
Work in progress 1,873 1,813
Manufactured goods and goods for resale 1,727 1,730
TOTAL 5,916 5,663
2024 2023
PROVISION FOR OBSOLETE INVENTORIES AT 1 JANUARY 605 542
Reversal of provision through profit and loss (48) (51)
Additional provision 72 114
PROVISION FOR OBSOLETE INVENTORIES AT 31 DECEMBER 629 605
20232024
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Note 14 Inventories
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 15 Trade and other receivables
2024 2023
Trade receivables 6,187 5,545
Prepayments 302 270
Other current receivables 1,202 889
TOTAL TRADE AND OTHER RECEIVABLES 7,691 6,704
Allowance for expected credit loss (112) (130)
TRADE AND OTHER RECEIVABLES, NET 7,579 6,574
Trade receivables are non-interest bearing and are generally on terms of 30 to 60 days.
Set out below is the movement in the allowance for expected credit losses of trade receivables and contract assets:
Trade receivables’ age profile:
2024 2023
BALANCE AT 1 JANUARY 130 138
Provisions during the year 31 29
Realised losses (8) (20)
Reversal of provision through profit and loss (40) (16)
Exchange rate adjustments (1) (1)
BALANCE AT 31 DECEMBER 112 130
2024 2023
Not overdue at the reporting date 5,806 5,083
Overdue less than 30 days 295 356
Overdue 30 to 60 days 81 87
Overdue 60 to 120 days 35 72
Overdue more than 120 days 82 77
TRADE RECEIVABLES BEFORE PROVISION 6,299 5,677
PROVISION FOR BAD DEBT AT 31 DECEMBER (112) (130)
BALANCE AT 31 DECEMBER 6,187 5,545
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Credit risk
Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer
contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities
(primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions,
foreign exchange transactions and other financial instruments.
Customer credit risk is managed by each business unit subject to the Group’s established policy, procedures and
control relating to customer credit risk management. Credit quality of a customer is assessed based
on a credit rating scorecard and individual credit limits are defined in accordance with this assessment.
The Group’s trade debtors comprise a large number of customers, and the Group’s risk in that connection is
not considered unusually high.
Outstanding customer receivables are regularly monitored. At 31 December 2024, the Group had
42 customers (2023: 50) that owed it more than DKK 10m each and accounted for approximately
24% (2023: 25%) of all the receivables outstanding.
An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit
losses. The provision rates are based on days past due for groupings of various customer segments
with similar loss patterns (i.e., by geographical region, product type, customer type and rating, and coverage by
letters of credit or other forms of credit insurance). The calculation reflects the probability-weighted
outcome, the time value of money and reasonable and supportable information that is available at the reporting
date about past events, current conditions and forecasts of future economic conditions. Generally,
trade receivables are written-off if past due for more than one year. The maximum exposure to credit risk at the
reporting date is the carrying value of each class of financial assets disclosed in Note 29.
The letters of credit and other forms of credit insurance are considered an integral part of trade receivables and
considered in the calculation of impairment. The Group evaluates the concentration of risk with
respect to trade receivables and contract assets as low, as its customers are located in several jurisdictions and
industries and operate in largely independent markets.
The Group considers a financial asset in default when contractual payments are 90 days past due. However, in cer-
tain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking
into account any credit enhancements held by the Group. A financial asset is written-off when
there is no reasonable expectation of recovering the contractual cash flows.
2024 2023
Cash at bank and on hand 3,509
5,808
TOTAL 3,509
5,808
Cash at banks earns interest at floating rates based on daily bank deposit rates.
Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.
Note 16 Cash and cash equivalents
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
Amounts in DKK million
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Note 17 Share capital
Amounts in DKK million
The share capital consists of 38,090,911 shares with a nominal value of DKK 10 each.
All shares rank equally. The share capital is fully paid.
2024 2023
Ordinary shares of DKK 10 each 381 381
TOTAL 381 381
DIVIDEND PER SHARE
2024 2023
Proposed dividend per share 44.63
44.63
Dividend from last year per share 44.63
26.25
In 2024, the Group bought 219,909 own shares (0.6% of share capital) from Poul Due Jensens Fond at fair value at time of purchase for proceeds of DKK 378 million.
All shares have been used for the Group’s share programmes during 2024. The Group has been authorised by the shareholders to acquire up to 2,625,000 treasury shares, equal to 6.6 % of the share capital.
The authorisation expires in yearly tranches during the period from 30 April 2025 to 30 April 2029.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 18 Pension and similar obligations
Defined contribution plans
The Group has made pension agreements with a considerable number of its employees. The
majority of the agreements are for defined contribution plans. Contributions are paid to pension insur-
ance plans and charged to the consolidated income statement in the period to which the contributions
relate. Once the contributions have been paid, there are no further payment obligations.
Defined benefit plans
The Group has a number of defined benefit plans where the responsibility for the pension obligation
towards the employees rests with the Group.
(gross) and 76% (2023: 77%) of its plan assets.
The plans are primarily based on years of service, and benefits are generally determined on
the basis of salary and rank. The Group assumes the risk associated with future developments
in salary, interest rates, inflation, mortality and disability etc.
The majority of the obligations are funded with assets placed in independent pension funds.
In a number of countries, some minor obligations are unfunded.
For these unfunded plans, the retirement benefit obligations amounted to DKK 119 million
or 6% of the present value of the gross obligation (2023: DKK 106 million or 6%).
Switzerland
Participants are insured against the financial consequences of retirement, disability and death. The
pension plans guarantee a minimum interest credit and fixed conversion rates at retirement. Contributions
are paid by both the employee and the employer. The plans must be fully funded. In case of underfunding,
recovery measures must be taken, such as additional financing from the employer or from the employer
and employees, reduction of benefits or a combination of both.
The pension plans include a risk-sharing element between Grundfos and the plan participants.
The UK
Participants are insured against the financial consequences of retirement and death. The schemes do not
provide any insured disability benefits. The pension plans are plans guaranteeing defined benefit pen
-
sion at retirement on a final salary basis. The majority of the pension plans do not include a risk-sharing
element between Grundfos and the plan participants.
Actuarial assumptions
Actuarial calculations and valuations are performed annually for all major plans. The actuarial assumptions
vary from country to country due to local conditions.
Discount rates at 31 December are based on the market yield of high quality corporate bonds or govern
-
ment bonds with a maturity approximating to the terms of the obligations.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
0.5% (0.5%) 0.5% (0.5%)
Discount rates (87) 95 (83) 93
Salary increase 8 (8) 7 (7)
Pension increase 42 (38) 39 (36)
CH UK CH UK
Discount rates (%) 1.00 5.25 1.75 5.00
Salary increase (%) 2.00 4.80 2.00 4.80
Pension increase (%) 0.00 3.10 0.00 3.10
Sensitivity analysis for Switzerland and the UK
The table below illustrates the sensitivity related to significant actuarial assumptions used in the calculation of the defined benefit obligation recognised at the reporting date. The sensitivity covers the plans in
increased/(decreased) the defined benefit obligation by the amounts shown below:
2024
2024
2023
2023
2024 2023
INVESTMENTS QUOTED IN ACTIVE MARKETS:
681 636
Real estate 154 157
Corporate bonds 801 736
Cash and cash equivalents 29 17
UNQUOTED INVESTMENTS:
Insurance contracts 141 127
Corporate bonds 14 13
Other 188 169
TOTAL 2,008 1,855
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
The fair values of each major class of plan assets are as follows:
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
PRESENT VALUE
OF OBLIGATION
FAIR VALUE OF
PLAN ASSETS
OBLIGATION,
NET
PRESENT VALUE
OF OBLIGATION
FAIR VALUE OF
PLAN ASSETS
OBLIGATION,
NET
CARRYING AMOUNT AT 1 JANUARY
1,872 1,837 35 1,879 1,855 24
Current service cost 22 0 22 20 0 20
Past service cost 0 0 0 54 0 54
Interest on obligation/plan asset 73 74 (1) 66 68 (2)
RECOGNISED IN PROFIT AND LOSS 95 74 21 140 68 72
Actuarial gain/loss, demographic assumptions (2) 0 (2) (10) 0 (10)
Actuarial gain/loss, financial assumptions 41 0 41 (85) 0 (85)
Actuarial gain/loss, experience adjustments (12) 0 (12) 13 0 13
Return on plan assets excl. interest income 0 79 (79) 0 (87) 87
Impact from asset ceiling 0 8 (8) 0 7 (7)
RECOGNISED IN OTHER COMPREHENSIVE INCOME 27 87 (60) (82) (80) (2)
Foreign exchange adjustments 38 47 (9) 37 46 (9)
Acquisition and divestments, net 16 0 16 0 0 0
Employee contributions 10 10 0 10 10 0
Employer contributions (4) 33 (37) (6) 50 (56)
Benefits paid (84) (88) 4 (106) (112) 6
OTHER CHANGES (24) 2 (26) (65) (6) (59)
CARRYING AMOUNT AT 31 DECEMBER 1,970 2,000 (30) 1,872 1,837 35
Accumulated impact from asset ceiling 0 8 (8) 0 16 (16)
PENSIONS AND SIMILAR OBLIGATIONS AT 31 DECEMBER 1,970 2,008 (38) 1,872 1,853 19
Carrying amount is reflected in the statement of financial position as follows:
Net pension obligations 135 140
Net pension assets (165) (105)
NET PENSION OBLIGATIONS (30) 35
2024 2023
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
In 2024 the net pension postition for the company has changed from a net obligation of DKK 35m to a net asset of DKK 30m.
The main driver for this has been return on plan assets and to a lessor extent contributions from the company.
The estimated weighted average duration of the defined benefit obligation was
13
.
1
years (2023:
13
.0 years) and is split into:
The expected payments or contributions to the defined benefit plans within the next 12 months amount to DKK 25m (2023: DKK 24m).
Amounts in DKK million
Members of defined benefit schemes
2024 2023
Active employees 2,170 2,160
Retired employees 572 598
Deferred vested 708 683
TOTAL EMPLOYEES 3,450 3,441
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 19 Provisions
WARRANTY RESTRUCTURING JUBILEE OTHERS TOTAL
BALANCE AT 1 JANUARY 2024 219 207 193 416 1,035
Provision 178 508 0 87 773
(188) 0 (10) (7) (205)
Reversed (3) (121) (3) (16) (143)
Acquisition of companies 1 0 0 0 1
Exchange rate adjustments 6 21 0 8 35
BALANCE AT 31 DECEMBER 2024 213 615 180 488 1,496
Current 136 159 0 0 295
Non-current 77 456 180 488 1,201
WARRANTY RESTRUCTURING JUBILEE OTHERS TOTAL
BALANCE AT 1 JANUARY 2023 185 144 189 376 894
Provision 151 164 4 97 416
(115) (73) 0 (2) (190)
Reversed (1) (1) 0 (51) (53)
Acquisition of companies 1 0 0 0 1
Exchange rate adjustments (2) (27) 0 (4) (33)
BALANCE AT 31 DECEMBER 2023 219 207 193 416 1,035
Current 140 140 0 0 280
Non-current 79 67 193 416 755
Warranty
The provision is recognised for
potential warranty claims on the basis
of past experience and expected
measures. The ordinary warranty on
product sold covers a period of 24
months.
Restructuring
The provision covers the expected
cost related to the announcement
of the planned relocation of our
Wahlstedt manufacturing
activities. Payment will take place
over two-three years. The reversed
amount is a consequence of the exit
of Russia mentioned in Note 7
'Special items'.
Jubilee
In the majority of companies there
is an obligation to remunerate
employees celebrating certain
anniversaries (such as 25, 40 and
50 years). The payments vary
among countries and companies.
Other
Other provisions include legal
disputes to which the Group
is a party.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 20 Bank and other loans
INTEREST RATE MATURITY 2024 2023
Bank loans 6.8% 2025 50 15
Other loans 3-5% 2025 27 29
0-3% 2025-2031 607 401
Bank overdrafts and loans 38 87
TOTAL 722 532
Current 300 285
Non-current 422 247
TOTAL 722 532
Note 21 Trade and other payables
2024 2023
Trade payables 2,938 2,656
TOTAL 2,938 2,656
Bank overdrafts:
The bank overdrafts are secured
by a portion of the Group’s
short-term deposits.
Trade payables are
non-interest bearing.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 22
2024 2023
Customer bonus 1,035 901
Staff related 1,394 1,525
Deferred income 546 495
VAT and other taxes 503 366
Accrued expenses 807 497
Other 158 14
TOTAL 4,443 3,798
Note 23 Fees to auditors appointed by the shareholders
2024 2023
16 15
4 2
6 4
6 7
TOTAL 32 28
Note 24 Changes in working capital
2024 2023
Changes in inventories (253) 857
Changes in accounts receivable (1,004) 443
Change in trade creditors, other liabilities and deferred income 927 (440)
271 (186)
TOTAL (59) 674
Customer bonus is recognised at
an estimated value according to
underlying agreements. When finally
settled, the bonus will be set off
against future payments from the
customer.
Deferred income refers to prepayments
from customers
for goods and services where
the Group has not yet fulfilled its
contractual obligations.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
CURRENT INTEREST-
BEARING LOANS AND
BORROWINGS
CURRENT LEASE
LIABILITIES
NON-CURRENT INTEREST
BEARING LOANS AND
BORROWINGS
NON-CURRENT
LEASE LIABILITIES TOTAL
BALANCE AT 1 JANUARY 2024 123 162 8 239 532
Cash flows (66) (105) 55 (152) (268)
New leases 0 178 0 267 445
Other 0 10 0 15 25
Exchange rate adjustments 0 (2) (5) (5) (12)
BALANCE AT 31 DECEMBER 2024 57 243 58 364 722
BALANCE AT 1 JANUARY 2023 100 164 3 237 504
Cash flows 31 (50) 9 (154) (164)
New leases 0 53 0 168 221
Other 0 (5) 0 (12) (17)
Exchange rate adjustments (8) 0 (4) 0 (12)
BALANCE AT 31 DECEMBER 2023 123 162 8 239 532
Note 25 Changes in liabilities arising from financing activities
‘Other’ includes the effect of
reclassification of non-current
portion of interest-bearing loans and
borrowings, including lease liabilities,
to current due to the passage of
time, the accrual of special dividends
that were not yet paid at year end,
and the effect of accrued but not
yet paid interest on interest-bearing
loans and borrowings, including lease
liabilities. The Group classifies interest
paid as cash flows from operating
activities.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 26 Share-based compensation expenses
Note 26.1
NO. OF UNITS
WEIGHTED AVERAGE
GRANT DATE FAIR VALUE
(DKK PER UNIT)
OUTSTANDING AS AT 1 JANUARY 2023 117,045 1,470
Granted during the year 66,691 1,351
Vested during the year (8,751) 1,249
Forfeited during the year (13,942) 1,458
OUTSTANDING AS AT 31 DECEMBER 2023 161,043 1,434
Granted during the year 76,030 1,711
Vested during the year (47,381) 1,372
Forfeited during the year (12,724) 1,506
OUTSTANDING AS AT 31 DECEMBER 2024 176,968 1,565
The outstanding units are
expected to vest over a
weighted average period of 1.7
years (2023: 1.6 years).
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 26.3 Expense recognised during the year
2024 2023
54 55
Expense arising from equity-settled share-based payment transactions (ESP) 174 137
TOTAL 228 192
2024 2023
Number of shares purchased during the year 173,828 203,670
Note 26.2 Employee Share Purchase Plan (ESP)
Note 26.4 Inputs and model used
2024 2023
Benchmark PE multiple
19.8 18.6
Annual growth in average profit after tax applied for share price calculation
18% 14%
ESP is a global programme, whereby certain employees are granted an option to buy shares of Grundfos Holding A/S at a discounted price. Employees of group companies in certain countries are excluded from this due to local restrictions or
requirements. The only condition for eligibility is that the employee is employed by the Group as at the specified date (close to the grant date) and has not resigned or been terminated.
The Board of Directors of Grundfos Holding A/S will each year decide if an Employee Share Purchase Plan is offered.
The expense recognised in the year in question is based on the discount the employee is entitled to upon purchase of the shares.
The share price is calculated once per year and is valid for a 12-month period. The methodology for calculating the share price is prescribed in the articles of association and is based on a multiples approach.
Thus the key parameters are multiples on price earnings from a peer group of companies and the profit after tax for the Grundfos Group.
There were no cancellations or
modifications to the grants.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 27 Business combinations
Recognised amounts of identifiable assets acquired, and liabilities assumed
FAIR VALUE RECOGNISED
IN ACQUISITION
Technology
202
Customer relations and distributors
258
Other intangible assets
1
TOTAL INTANGIBLE ASSETS
461
Property, plant and equipment
49
TOTAL NON-CURRENT ASSETS
510
Inventories
122
Trade receivables
256
Other receivables
33
Cash at bank
67
TOTAL CURRENT ASSETS
478
TOTAL ASSETS
988
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
limited liability companies. The total consideration amounted to DKK 1,622m.
The result of the acquired activities has been included in the consolidated financial statements as of 1 September 2024. The acquired business does not have a material impact on the consolidated financial statements, and
therefore historical and pro forma disclosures have not been presented. Had the acquisition taken place at 1 January 2024, revenue would have been higher by DKK 532m and profit would have been higher by DKK 34m.
The fair values of the identifiable assets and liabilities of Culligan's Commercial & Industrial business as at the date of acquisition were:
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Recognised amounts of identifiable assets acquired, and liabilities assumed
FAIR VALUE RECOGNISED
IN ACQUISITION
(9)
Provisions (15)
Deferred tax (113)
TOTAL NON-CURRENT LIABILITIES (137)
Short term liabilities (69)
Trade creditors (159)
Deferred income (23)
Other payables (51)
TOTAL CURRENT LIABILITIES (302)
TOTAL LIABILITIES ASSUMED (439)
TOTAL IDENTIFIABLE NET ASSETS 549
Goodwill 1,062
Cash net 11
TOTAL CASH ACQUISITION COST 1,622
Recognised amounts of identifiable assets acquired, and liabilities assumed
Purchase consideration 1,622
Contingent purchase consideration 0
FAIR VALUE OF CONSIDERATION 1,622
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
The fair value of the trade receivables amounts to DKK 256m. The gross amount of trade receivables is DKK 278m
The deferred tax liability mainly comprises the tax effect of the identified intangible assets.
As part of the purchase price allocation of the acquisition, goodwill of DKK 1,062m was identified after recognition of the fair value of identifiable assets, liabilities and contingent liabilities. Fair value adjustments were determined using
discounted cash flows for identified assets. The intangible assets reflect the recognition of Technological know-how (DKK 202m) and Customer relations and distributors (DKK 258m). Deferred tax of DKK 125m is in relation to these intan
-
gible asset adjustments. The acquisition of the Culligan activities involved acquisition cost of DKK 31m, which is recognised as administrative expense.
The goodwill of DKK 1,062m comprises the value of expected commercial and scaling synergies arising from the integration of the Culligan business, into the Industry-Water Treatment Solutions.
The goodwill does not meet the criteria for recognition as an intangible asset under IAS 38. The amount of the goodwill is not expected to be deductible for income tax purposes.
Note 28 Commitments and contingencies
Note 28.1 Commitments
Apart from this the Group is under no material obligations to acquire assets.
The Group is party to a number of disputes, lawsuits and legal actions including tax disputes. It is the view of management that the outcome of these legal actions will
have no other significant impact on the Group’s financial position beyond what has been recognised and stated in the Annual Report.
Note 28.2 Contingencies
2024 2023
Performance and payment guarantees 147 161
Purchase agreements for property, plant and equipment 143 129
TOTAL 290 290
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Note 29.1 Financial risks
Amounts in DKK million
Note 29 Financial risk management and financial assets
The Group’s activities expose it to a variety of financial risks:
• Market risks: Currency risk and raw materials
• Credit risk
The main purpose of the Group’s financial risk management is to finance the Group’s operations and to provide guarantees to support its operations. The Group uses derivative financial instruments to hedge certain risk exposures.
The Group’s financial risk activities are governed by the policies approved by the Board of Directors. Risk management is carried out by the Central Treasury department who are responsible for identifying, measuring and managing the
Group’s financial risks in accordance with the Group’s policies and risk objectives.
It is the Group’s policy that no trading in derivatives should be undertaken for speculative purposes.
Market risk
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
FINANCIAL RISKS
DESCRIPTION EFFECT
Reference
Currency risk
The Group is exposed to fluctuations when performing sales
and purchases in foreign currencies.
Effect: Moderate
Threat: Moderate
Note 1 ‘Revenue’
Interest rate risk
The Group is exposed to fluctuations in interest rates related to cash position,
financial investments and financing arrangements
Threat: Moderate
Note 13 ‘Securities’
Credit risk
The Group is exposed to the risk that a counterparty (mainly related to trade receivables and
cash position) will not meet its obligation leading to a financial loss.
Effect: Moderate
Note 15 ‘Trade and other receivables’
Note 20 ‘Bank and other loans’
Raw materials risk
The Group is exposed to raw material price inflation mainly related to copper
and aluminium.
Effect: High
Threat: Moderate
Note 14 'Inventories'
Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risks: currency risk and other price risk, such as inter-
est-rate risk and raw material risk. Financial instruments affected by market risk include transactions with entities in foreign currencies.
The sensitivity analysis in the following sections relates to the position as at 31 December in 2024 and 2023.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 29.2 Financial instruments by category
2024 2023
FINANCIAL RISKS
Shares 1,368 786
Bonds 3,412 2,422
0 1
FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS 4,780 3,209
Trade receivables 6,187 5,545
Cash and cash equivalents 3,509 5,808
FINANCIAL ASSETS MEASURED AT AMORTISED COST 9,696 11,353
23 0
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS 23 0
Bank and other loans 115 131
Trade creditors 2,938 2,656
FINANCIAL LIABILITIES MEASURED AT AMORTISED COST 3,053 2,787
Forward currency contracts 149 24
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 149 24
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
The sensitivity analysis has been prepared on the basis that the proportions of financial instruments in foreign currencies are all constant and on the basis of the hedge designations in place at 31 December 2024. Further, it is
assumed that the exchange rate sensitivities have a symmetric impact, i.e. an increase in rates results in the same absolute movement as a decrease in rates.
The following assumption has been made in calculating the sensitivity analysis:
The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks.
This is based on the financial assets and financial liabilities held at 31 December 2024 and 2023 including the effect of hedge accounting.
The sensitivity analysis shows the effect on profit and equity of a reasonably possible change in exchange rates.
Hedges consist primarily of currency derivatives, which are further described in the following sections.
Risk on raw material prices is not hedged by way of financial instruments. Risks on change in interest rates are not considered material for the purposes of the financial statements.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 29.3 Fair value measurement
Fair value hierarchy
QUOTED MARKET
PRICES (LEVEL 1)
VALUATION BASED
DIRECTLY OR
INDIRECTLY ON
MARKET (LEVEL 2)
VALUATION TECHNIQUES
BASED ON UNOBSERVABLE
INPUTS FOR VALUATION
(LEVEL 3) TOTAL
2024
Shares 1,368 0 0 1,368
Bonds 3,412 0 0 3,412
FINANCIAL ASSETS MEASURED AT FAIR VALUE AS OF 31 DECEMBER 4,780 0 0 4,780
Forward currency contracts 0 149 0 149
0 0 23 23
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE AS OF 31 DECEMBER 0 149 23 172
2023
Shares 786 0 0 786
Bonds 2,422 0 0 2,422
0 0 1 1
FINANCIAL ASSETS MEASURED AT FAIR VALUE AS OF 31 DECEMBER 3,208 0 1 3,209
Forward currency contracts 0 24 0 24
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE AS OF 31 DECEMBER 0 24 0 24
The following table provides the fair value measurement hierarchy of the Group’s assets and liabilities.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 29.4 Valuation techniques and assumptions used
Note 29.5 Foreign currency risks
Management assesses that the fair values of cash and short-term deposits, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts, largely due to the
short-term maturities of these instruments.
Securities
Fair value of securities is based on observable market prices from stock exchanges.
Foreign exchange derivatives
The Group enters into derivative financial instruments with various counterparties, principally financial institutions, with investment grade credit ratings. Foreign exchange forward contracts are valued using
valuation techniques, which employ the use of market observable input. The most frequently applied valuation techniques include forward pricing and swap models using present value calculations.
The models incorporate various input including the foreign exchange spot and forward rates, yield curves of the respective currencies, and currency basis spreads between the respective currencies. As at 31
December 2024, the mark-to-market values of other derivative asset positions do not contain a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty
credit risk had no material effect on the hedge effectiveness assessment for derivatives designated in hedge relationships and other financial instruments recognised
at fair value.
Electricity swap
The Group has entered into a long-term electricity swap, in which the Group purchases renewable electricity from a windfarm at a fixed price and sells it at market price with net settlements on a monthly basis.
It is a 10-year contract with expiry in 2034. The volume in the electricity swap covers a portion of the Group's electricity consumption but is not considered a hedge. The valuation of electricity swaps is based on
estimates on non-observable prices for a long-term period. The fair value of electricity swaps is determined by discounting estimated future cash flows. Discounting takes place on the basis of estimated price
curves and volumes of electricity produced.
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes
in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense is denominated in a local currency, normally being a foreign currency).
The Group manages its foreign currency risk by hedging transactions that are expected to occur within a maximum 15-month period for hedges of forecasted sales and purchases.
The Group hedges its exposure to fluctuations on the translation into Danish Kroner of its foreign operations by using foreign currency swaps and forwards.
At 31 December 2024, the Group has hedged 80% of the next 12 months’ exposure of its expected foreign currency sales. The hedged sales were highly probable at the reporting date.
The foreign currency risk is hedged by using foreign currency forward contracts.
currencies through the translate value of future EBIT and cash flows. The following table demonstrates the sensitivity to the possible change in the exchange rates of the currencies below after the effect of hedge
accounting, with all other variables held constant. The Group’s exposure to foreign currency changes for all other currencies is not material. Given the Danish Kroner has a fluctuation limit of a maximum +/- 2.25%
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
CURRENCY SENSITIVITY - IMPACT TO EQUITY
(BEFORE TAX)
INCREASE IN
EXCHANGE RATE
MONETARY
ITEMS
HEDGING NET
MONETARY
ITEMS
HEDGING NET
5% 37 (92) (55) 32 (48) (16)
5% 3 (14) (11) 4 (13) (9)
GBP 5% 17 (39) (22) 15 (32) (17)
5% 12 (22) (10) 3 (20) (17)
5% 0 21 21 0 22 22
TOTAL 69 (146) (77) 54 (91) (37)
Amounts in DKK million
The impact on equity arises from monetary items and hedging instruments where the currency that the hedging instruments and monetary items are denominated in differs from the functional currency of the entity.
The impact would have been the opposite if exchange rates had been decreasing by similar percentages. The analysis is based on the transaction currency.
Monetary items are expected to be converted to cash during a period of up to 60 days. Hedging contracts cover up to 80% of expected inflow in each currency for a period of up to 12 months.
Profit before tax will not be impacted by changes in the exchange rates due to a high degree of efficiency in the hedging.
Note 29.6
The Group monitors its risk of a shortage of funds using a liquidity planning tool. The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts and lease contracts. The
Group’s policy is that not more than 25% of borrowings should mature in the next 12-month period. Approximately 10% of the Group’s debt will mature in less than one year as at 31 December 2024 (2023: 10%) based on the carrying value
of borrowings reflected in the financial statements.
The Group assessed the concentration of risk with respect to refinancing its debt and concluded it to be low.
The Group has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders. Further, to prevent significant restrictions to Grundfos’ liquidity, cash is held
among several investment grade financial institutions to minimise loss in an illiquidity event.
2024 2023
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
ON DEMAND LESS THAN 3 MONTHS 3 TO 12 MONTHS 1 TO 5 YEARS > 5 YEARS TOTAL
As at 31 December 2024
Interest-bearing loans and borrowings (excl. items below) 0 0 57 58 0 115
0 61 182 364 0 607
Trade and other payables 0 2,448 490 0 0 2,938
Forward currency contracts 0 40 109 0 0 149
0 1 7 13 2 23
TOTAL 0 2,550 845 435 2 3,832
As at 31 December 2023
Interest-bearing loans and borrowings (excl. items below) 0 0 123 8 0 131
0 42 125 234 0 401
Trade and other payables 0 2,213 443 0 0 2,656
Forward currency contracts 0 (5) (19) 0 0 (24)
0 0 0 (1) 0 (1)
TOTAL 0 2,250 672 242 0 3,164
Amounts in DKK million
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual undiscounted payments:
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 30 Capital management
For the purpose of the Group’s capital management, capital includes issued capital and all equity reserves attributable to the equity holders of the parent. The primary objective of the Group’s capital management
is in accordance with guidelines defined by the majority owner, Poul Due Jensens Fond, to ensure and support healthy economic growth and development of the Grundfos Group.
This includes to maintain a solid equity ratio – under the current economic conditions – at a level above 60%.
There is no written dividend policy; however, in recent years, dividend distribution has been at a level of 50% of the consolidated profit of the year.
In terms of liquidity, the Group has a cash reserve comprising cash and cash equivalent (see Note 16) and securities (see Note 13).
The Group has only few and immaterial loans. Thus, the Group is not subject to financial covenants from banks or other financial institutions.
Gearing ratio is negative, demonstrating that the Group has effectively no net debt.
31 DECEMBER 2024 31 DECEMBER 2023
Bank and other loans 722 532
Trade and other payables 2,938 2,656
(8,216) (8,952)
NET DEBT (4,556) (5,764)
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 31 Hedging activities and derivatives
Forward currency contracts are estimated by generally accepted valuation techniques based on relevant observable
swap curves and exchange rates. The fair value applied is calculated mainly by external sources on the basis of
discounted future cash flows. Anticipated cash flow for individual contracts is based on observable market data such
as interest rates and exchange rates. In addition, fair values are based on non-observable data, including exchange
rate volatilities, or correlation between yield curves and credit risks. Non-observable market data account for an
insignificant part of the fair value of the derivative financial instruments.
Foreign currency risk
Foreign currency forward contracts are designated as hedging instruments in cash flow hedges of forecast cash
local currency of entities within the Group. Should there be a forecasted transaction in excess of DKK 50m, this will be
considered significant, and therefore, between 50-90% of this cash flow exposure should be hedged.
Otherwise, the exposures of foreign currency cash flows must be within the following ratios:
0-6 months: 80%-90%
7-12 months: 70%-80%
12-15 months: 50%-70%
These forecast transactions are highly probable. Refer to the table below for the relevant amounts of the respective
transactions. The foreign exchange forward contract balances vary with the level of expected foreign currency
sales and purchases and changes in foreign exchange forward rates. Given the Danish Kroner has a fluctuation limit
There is no proxy hedging for the currency risk hedging, and therefore the economic relationship between the
hedged exposure and the hedge is high. Effectiveness is assessed using the critical terms match approach according
to IFRS 9. The source of ineffectiveness is the credit risk of the hedging instruments. For hedges where the cost of
hedging is applied, the change in basis spread is recognised in other comprehensive income and is a time effect
during the life of the forward contract. At maturity, this amounts to zero.
The net amount of the foreign exchange contracts is presented within either ‘Other Current Assets’ or ‘Other Current
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
LESS THAN
1 MONTH
1 TO 3
MONTHS
3 TO 6
MONTHS
6 TO 9
MONTHS
9 TO 12
MONTHS TOTAL
AS AT 31 DECEMBER 2024 Fair Value, Asset
Fair Value,
Liability
Notional
Amount
Foreign exchange forward contracts (highly probable forecast sales or purchases)
29 31 62 66 56 244
6 11 15 16 11 59
GBP 15 13 21 20 13 82
44 120 115 92 46 417
(1,900) (3,900) (6,180) (5,970) (4,540) (22,490)
NOTIONAL AMOUNT (IN DKK MILLIONS)
0.0 (76.0) 211 222 443 472 401 1,749
4.0 4.0 25 48 66 72 47 258
GBP 0.0 (17.0) 131 119 192 180 118 740
0.0 (9.0) 43 118 113 90 45 409
0.0 (11.0) (34) (71) (112) (108) (82) (407)
AVERAGE FORWARD RATE
(EUR/ONE CURRENCY UNIT)
1.072 1.106 1.100 1.116 1.088 1.099
1.668 1.658 1.641 1.667 1.665 1.658
GBP 0.848 0.866 0.864 0.857 0.847 0.857
7.8 46 7. 805 7.78 9 7.741 7.698 7.779
399.233 403.053 401.096 408.208 423.449 407. 505
The Group is holding the following foreign exchange forward contracts:
MATURITY
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
MATURITY
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
LESS THAN
1 MONTH
1 TO 3
MONTHS
3 TO 6
MONTHS
6 TO 9
MONTHS
9 TO 12
MONTHS TOTAL
AS AT 31 DECEMBER 2023 Fair Value, Asset
Fair Value,
Liability
Notional
Amount
Foreign exchange forward contracts (highly probable forecast sales or purchases)
20 34 34 23 23 134
5 10 17 14 9 55
GBP 12 11 15 19 14 71
44 62 106 111 77 400
(2,398) (3,526) (6,417) (5,868) (3,564) (21,773)
NOTIONAL AMOUNT (IN DKK MILLIONS)
12.8 1.0 132 230 232 153 158 905
1.2 3.9 22 47 80 63 41 253
GBP 0.6 7.5 100 95 127 161 126 609
11.1 0.0 42 59 101 105 73 380
18.3 1.3 (47) (69) (125) (114) (69) (424)
AVERAGE FORWARD RATE
(EUR/ONE CURRENCY UNIT)
1.099 1.094 1.104 1.092 1.091 1.096
1.556 1.627 1.637 1.678 1.675 1.644
GBP 0.895 0.896 0.878 0.878 0.877 0.883
7. 29 4 7.393 7.683 7.726 7.71 2 7.611
408.407 415.239 408.539 411.117 396.390 408.233
The Group is holding the following foreign exchange forward contracts:
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
The effect of the cash flow hedge in the statement of profit or loss and other comprehensive income is, as follows:
TOTAL HEDGING GAIN/
LOSS RECOGNISED
IN OCI
INEFFECTIVENESS
RECOGNISED
IN PROFIT AND LOSS
LINE ITEM IN
THE STATEMENT OF
PROFIT AND LOSS
YEAR ENDED 31 DECEMBER 2024
Highly probable expected net cash flows from customers/to vendors 149 0
Revenue /
production cost
YEAR ENDED 31 DECEMBER 2023
Highly probable expected net cash flows from customers/to vendors 24 0
Revenue /
production cost
Fair value hierarchy
VOLUME OF FOREIGN
EXCHANGE FORWARD
CONTRACTS
CASH FLOW
HEDGE RESERVE
31 DECEMBER 2024
Highly probable expected net cash flows from customers/to vendors 6,760 149
31 DECEMBER 2023
Highly probable expected net cash flows from customers/to vendors 6,470 24
The impact of hedged items on the statement of financial position is as follows:
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Group companies
Argentina, Bombas Grundfos de Argentina S.A.
Austria, Eurowater Wasseraufbereitung GmbH
Austria, Grundfos Pumpen Vertrieb G.m.b.H.
Australia, Metasphere Australia Pty.
Belgium, Eurowater Belgium NV
Belgium, Grundfos Bellux S.A.
Bulgaria, Grundfos Bulgaria EOOD
Canada, Grundfos Canada Inc.
Chile, Bombas Grundfos Chile SpA
Colombia, Grundfos Columbia S.A.S.
Croatia, Grundfos Sales Croatia d.o.o.
Czechia, Eurowater spol. s.r.o.
Czechia, Grundfos Sales Czechia
and Slovakia s.r.o.
Denmark, Armacoat A/S
Denmark, Eurotank A/S
Denmark, Grundfos A/S
Denmark, Grundfos DK A/S
Denmark, Grundfos Finance A/S
Denmark, Grundfos Operations A/S
Denmark, Grundfos Water Treatment Denmark A/S
Denmark, Sintex A/S
France, Eurowater Sarl
France, Grundfos Water Treatment France S.A.S.
France, Pompes Grundfos Distribution S.A.S.
France, Pompes Grundfos S.A.S.
Germany, Biral GmbH
Germany, DAB Pumps GmbH
Germany, Deutsche Vortex GmbH & Co. KG
Germany, Eurowater Wasseraufbereitung GmbH Ger-
many, Grundfos GmbH
Germany, Grundfos Pumpenfabrik GmbH
Germany, Grundfos Verwaltung GmbH Ger-
many, Grundfos Dosing & Disinfection GmbH
Greece, Grundfos Hellas Single-Member A.E.B.E.
Hungary, DAB Pumps Hungary Kft.
Hungary, Eurowater Vizkezelés Kft.
Hungary, Grundfos Shared Services Kft.
Hungary, Grundfos South East Europe Kft.
Indonesia, PT DAB Pumps Indonesia Indo-
nesia, PT Grundfos Pompa
Indonesia, PT Grundfos Trading Indonesia
Italy, DAB Pumps S.p.A.
Italy, DWT Holding S.p.A.
Italy, CWTS S.r.l.
Italy, F.D.T. S.r.l.
Italy Everblue S.r.l.
Italy, Grundfos Pompe Italia S.r.l.
Japan, Grundfos Pumps K.K.
Grundfos Pumps SDN. BHD Mexico,
Bombas Grundfos de Mexico Manufacturing
S.A. de C.V.
Mexico, Bombas Grundfos de Mexico S.A. de C.V. Mexico,
DAB Pumps de Mexico S.A. de C.V. Nether-
lands, DAB Pumps B.V.
Netherlands, Eurowater BV
Netherlands, Solvermedia B.V.
Netherlands, Grundfos Nederland B.V.
Norway, Grundfos Water Treatment Norway AS
Norway, Grundfos Norge AS
Peru, Grundfos de Peru S.A.C.
Philippines, Grundfos IS Support & Operations
Centre Philippines Inc.
Philippines, Grundfos Pumps (Philippines) Inc.
Poland, DAB Pumps Poland Sp.Z.o.o.
Poland, Eurowater Sp. z o.o.
Poland, Grundfos Pompy Sp.Z.o.o.
Portugal, Bombas Grundfos (Portugal) S.A.
Serbia, Grundfos Srbija d.o.o.
Singapore, MECO Water Purification (Asia) Pte
Slovakia, Eurowater spol. s.r.o.
Spain, Bombas Grundfos España S.A. Spain, DAB
Sweden, Eurowater AB
Sweden, Grundfos AB
Switzerland, Biral AG
Switzerland, Eurowater Wasseraufbereitung AG
Switzerland, Grundfos Holding AG
Switzerland, Grundfos Handels AG
Switzerland, Grundfos Pumpen AG
Distribution FZE
Grundfos Pumps Corporation
(DBA Peerless Pump Company)
Note 32 Related parties
Note 32.1 Group information
The table below provides information about the Group’s structure, including details of the subsidiaries and the holding company. Grundfos Holding A/S directly or indirectly owns the
Grundfos Holding A/S, based in
Bjerringbro, Denmark, is the Parent
Company of the Grundfos Holding A/S
Group.
Ownership
The Poul Due Jensens Fond owns
87.9% of the share capital in Grundfos
Holding A/S, while the founder’s
family owns 8.8% and the employees
own 3.3%
Associates
Base Business Bjerringbro A/S,
Denmark – 21% ownership
Megat Projekt Sp. z o.o., Poland
– 50% ownership
There are restrictions on access
to liquidity among the Group’s
companies but the amounts on which
the restrictions occur are immaterial.
The German subsidiary Deutsche
uses the exemption in the § 264b
HGB to prepare, audit and publish
individual annual accounts.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 32.2 Transactions with related parties
Board of Directors and Group Executive Team
In the financial year, no transactions took place with the Board of Directors and Group Executive Team other than the transactions as a result of conditions of employment.
For compensation of Group Management, please refer to Note 5.
Poul Due Jensens Fond
In the financial year, a limited number of transactions have taken place with Poul Due Jensens Fond. The transactions comprise service transactions. The total payment to the Grundfos Group
does not exceed DKK 6m (2023: DKK 7m). In the financial year, Poul Due Jensens Fond sold shares in Grundfos Holding A/S at a value of DKK 378m to Grundfos Holding A/S (2023: DKK 287m).
Other related parties
In the financial year, a limited number of transactions have taken place with certain shareholder members of the Due Jensen Family. The transactions comprise service transactions.
The total transactions with the Grundfos Group do not exceed DKK 1m (2023: DKK 1m).
Note 34 Information regarding the Group
Note 34.1 Corporate information
The consolidated financial statements comprise the parent company Grundfos Holding A/S and its subsidiaries (the Group) for the year ended 31 December 2024. The Group’s main operations consist
of the manufacture and sale of pump solutions.
The parent company is a limited liability company incorporated and domiciled in Denmark. The company’s registered office address is Grundfos Holding A/S, Poul Due Jensens Vej 7, DK-8850 Bjerringbro.
Note 33 Events after the balance sheet date
Subsequent to 31 December 2024, there have been no further events with any significant effect on the financial statements beyond what has been recognised and disclosed in the Annual Report.
The Board of Directors of Grundfos Holding A/S has approved the issuance of these consolidated financial statements on 5 February 2025.
The annual general assembly is expected to finally approve the consolidated financial statements on 28 February 2025.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 35.1 Basis of preparation
Note 35.2 Basis of consolidation
Note 35.3 New and amended standards and interpretations
The consolidated financial statements comprise the parent company, Grundfos Holding A/S, and subsidiaries over which Grundfos Holding A/S exercises control.
Entities acquired or formed during the year are recognised in the consolidated financial statements from the date of acquisition or formation. Entities disposed of are recognised in the consolidated statement
of profit or loss until the date of disposal.
Profit or loss and each component of other comprehensive income are attributed to the owners of the parent company and to non-controlling interests even if this means that the non-controlling interests
have a negative balance. When necessary, the financial statements of subsidiaries are adjusted to align their accounting policies with those of the Group. All intra-group assets and liabilities, equity, income, expenses
and cash flows arising from transactions between group entities are fully eliminated on consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.
The following accounting standards / amendments are effective as of 1 January 2024.
• Supplier Finance Arrangements - Amendments to IAS 7 and IFRS 7
The above standards and amendments do not have material impact on our financial statements
Note 35 Summary of material accounting policies
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
The consolidated financial statements have been prepared on a historical cost basis, except for derivative financial instruments, earn out and debt or securities and equity financial assets that have been measured
at fair value.
The Annual Report is presented in Danish Kroner (DKK), the functional currency of the parent company, and all amounts are stated in millions, except when otherwise indicated.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 35.4 Standards issued but not yet effective
Note 35.5 Critical accounting estimates and judgements
Note 35.5.1 Judgements
The new and amended standards and interpretations that are issued, but not yet effective, up to the date of issuance of the Group’s financial statements are disclosed below.
The Group intends to adopt these new and amended standards and interpretations, if applicable, when they become effective.
The following accounting standards / amendments are effective as of 1 January 2025.
• IFRS 18 Presentation and Disclosure in Financial Statements – Replacement of IAS 1 Presentation of Financial Statements
The adoption is not expected to have material impact on our financial statements
In preparing the consolidated financial statement, Management has made judgements, estimates and assumptions that affect how the Group’s accounting policies are applied and the amount of assets,
liabilities, income and expenses reported.
The following provides information about judgements made in applying those accounting policies that most significantly impact the amounts recognised in the consolidated and separate financial statements:
Special items
The use of special items entails management judgement in the separation from ordinary items. Management carefully assesses individual classifications for a fair distinction between operating activities
and significant income and expenses of a special nature. The exit decision from Russia and Belarus led to one-off expenses which management deems a special item.
Exit related expenses relate to impairment of assets and cost related to severance and other legal commitments arising from the Share Purchase Agreement with the buyer.
Management has assessed the various scenarios and likelihood in their judgement and estimation of the provision.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
CONSOLIDATED FINANCIAL STATEMENTS
Note 35.5.2 Assumptions and estimation uncertainties
Management makes accounting estimates and assumptions on which the recognition and measurement
of the Group’s revenues, expenses, assets and liabilities, and the accompanying disclosures, are based.
The following provides information about assumptions and estimation uncertainties which could result
in outcomes that require a material adjustment to the carrying amounts of assets or liabilities affected
in future periods.
Tax (Note 9)
Conducting business globally the interpretation of local tax regulations – including transfer pricing – creates
uncertainty with regards to timing, assessment and other assumptions. Management reviews the assumptions on an
ongoing basis. Tax assets and liabilities are recognised at the most likely future impact
to the consolidated financial statements, considering the level and timing of future taxable income.
Impairment test of goodwill (Note 10)
The key assumptions supporting recoverable amounts mainly comprise discount rate (WACC) and expectations
regarding future production and unit prices. Please refer to Note 10 for more details related
to the impairment test.
Depreciation on tangible non-current assets (Note 11)
The expected lifetime for tangible assets is determined based on experience and expectations for future
use of the assets. Estimated lifetime is linked to uncertainty due to varying utilisation.
Inventories (Note 14)
Valuation of inventories includes estimates related to allocation of indirect cost and estimates on the net realisable
value at which inventories are expected to be sold. Estimates in these areas are based on judgements such as
determination of obsolete items and expected future revenue.
Trade receivables (Note 15)
The valuation of trade receivables includes estimates on the expected credit loss. These estimates are based on
statistics over the historic risk of credit losses, and judgements over future risk of losses. By nature, this methodology
is associated with uncertainty.
Pension obligations, defined benefit plans (Note 18)
Pension obligations under defined benefit plans are based on assumptions in the actual individual agreements (such
as a fixed amount or a percentage of the employee’s salary) and generic assumptions (interest, inflation, mortality
etc.) which are associated with a degree of uncertainty. External actuarial support is used on significant plans.
The calculated pension obligation is measured at discounted present value.
Provisions (Note 19)
Provision for warranty is determined on historic experience on the level and size of claims under the warranty
provided. The provision is adjusted annually. Management continually assesses provisions, including contingencies
and the likely outcome of pending and potential legal proceedings. The outcome of such proceedings depends on
future events, which are, by nature, uncertain. When considering provisions involving significant estimates, opinions
and estimates by external legal experts and existing case law are applied in assessing the probable outcome of
material legal proceedings.
Estimated cost of restructuring reflects the total estimated cost of decided or foreseen significant restructuring
measures.
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.1 Revenue
Pump solutions
Pump solutions relate to sale of finished goods of which revenue is recognised in the statement of profit and loss
when control of the products has been transferred to the customer (the performance obligation is satisfied at a
point in time). Control is transferred when the products are delivered, which occurs when the Group has objective
evidence that all criteria for transfer of risk have been satisfied. Sales are only recognised to the extent that it is
highly probable that a significant reversal will not occur. Products are often sold with retrospective volume discounts.
Revenue is measured at the fair value of the consideration agreed, excluding VAT, duties, and discounts in relation to
the sale contract. Accumulated experience is used to estimate variable considerations (expected value method). The
validity of assumptions and estimates are reassessed
at each reporting date. Because of historical accurate estimates, it is highly probable that a significant reversal in the
cumulative revenue recognised will not occur.
Service sales
Service income is recognised in the statement of profit and loss as the services are rendered. Accordingly, the
recognised sale corresponds to the sales value of the work performed during the year. This is determined based on
the actual cost incurred relative to the total expected cost. The sale of services is recognised in the statement of
profit and loss when the aggregated income and expenses of the service contract can be reliably measured, and it is
probable that the Group will receive the financial benefits, including payments.
Project sales
In addition to the standard pump sales Grundfos develops and delivers highly customised pump solutions. The
performance obligation is satisfied over time and payment is generally due upon completion of installation and
acceptance by the customer. In some contracts, short-term advances are required before the installation service is
provided.
A loss is recognised if the sum of the expected cost for services under the contract exceeds the transaction price.
The Group’s standard payment terms are 30-60 days. However, there may be country-specific deviations from the
standard payment terms. The Group does not expect to have any contracts where the period between the transfer
of the promised products or services to the customer and payment by the customer exceeds one year. Therefore, the
Group does not adjust any of the transaction prices for the time value of money. A receivable is recognised when the
products 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.
The Group’s obligation to repair or replace faulty products under the standard warranty terms is recognised as a
provision.
Note 36 Grundfos Holding A/S Group general accounting policies
CONSOLIDATED FINANCIAL STATEMENTS
Note 36.2 Production cost
Note 36.3 Research and development cost
Production cost comprises cost incurred in generating the revenue for the year.
This includes direct and indirect cost such as staff cost, depreciation, amortisation and provisions for obsolete inventory.
Research and development cost is cost that relates to the Company’s R&D activities, including staff cost, amortisation and depreciation. Research cost is recognised in the profit and loss account in the year it is incurred.
Development cost incurred for the maintenance and optimisation of existing products or production processes is recognised in the profit and loss account. Cost for the development of new products is recognised in the profit and loss
account, unless the criteria for recognition in the consolidated statement of financial position are met for the individual development project.
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.4 Staff cost
Note 36.5 Special items and earnings before interest and tax (EBIT) before special items
Staff cost includes the Group’s total cost of wages, salaries, pensions and other social insurance cost. Staff cost also includes cost in accordance with the Group’s employee share programme.
Staff cost including cost related to the employee share programme is distributed across functions in accordance with the functions primarily executed by the relevant employees.
Special items include significant and rarely occurring items that are the result of external events over which Grundfos has no influence and are not attributable to Grundfos’ normal operations.
This includes – but is not limited to – unforeseeable events that would be considered as force majeure such as natural disasters and political actions that significantly impact Grundfos’ operations.
Consequently, operating profit (EBIT) before special items is defined as operating profit (EBIT) excluding the above-mentioned special items.
CONSOLIDATED FINANCIAL STATEMENTS
Note 36.6 Finance income and expenses
Note 36.7 Goodwill
Note 36.8 Other intangible assets
Finance income and expenses comprise interest received, and interest paid, realised and unrealised gains/losses on securities, receivables, debt and transactions denominated in foreign currencies.
Further, the interest element of leasing payments is included.
Goodwill is recognised at initial recognition in the statement of financial position at cost and allocated to cash-generating units as described under Note 10 'Intangible assets'.
Subsequently, goodwill is measured at cost less accumulated impairment losses. Goodwill is not amortised.
Other intangible assets are measured at cost less accumulated amortisation and write-downs.
Amortisation on other intangible assets is made according to the straight-line method over the anticipated economic life of the asset.
Estimated useful lives and residual values are reassessed annually. The estimated useful lives are:
Know-how 3-10 years
Customer relations 3-10 years
Other intangible assets 3-10 years
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.9 Development projects
Development projects that are clearly defined and identifiable, where the technical feasibility, sufficient resources and a potential future market or utilisation opportunity within the Group is demonstrated, and where the Group intends to
produce, market or use the project, are recognised as intangible assets, provided that the cost can be measured reliably and that there is sufficient assurance that future earnings or the net selling price can cover cost of sales, selling and
distribution costs and administrative expenses and development cost.
Other development cost is recognised in the consolidated statement of profit or loss when incurred. Recognised development projects are measured at cost less accumulated amortisation and impairment.
Cost includes direct and indirect expenses, including wages.
Completed development projects are generally amortised on a straight-line basis over 5 years. Development projects in progress are not amortised, but annually tested for impairment.
CONSOLIDATED FINANCIAL STATEMENTS
Note 36.10 Property, plant and equipment
Property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost comprises the purchase price and any cost directly attributable to the acquisition until the date on which
the assets are available for use.
Depreciation is provided on a straight-line basis over the expected useful lives of the assets.
The expected useful lives are as follows:
Buildings 20-40 years
Technical installations and machinery 3-10 years
Other technical installations 3-10 years
The remaining useful life is reassessed annually and adjusted as necessary. The residual value of an asset is considered when the depreciable amount of the asset is determined.
The basis of depreciation is calculated considering the asset’s residual value less any impairment losses.
The residual value is determined at the date of acquisition and reassessed annually.
When the residual value exceeds the carrying amount of the assets, depreciation is discontinued. If the depreciation period or the residual value is changed, the changes are accounted for as accounting estimates,
and the effect on depreciation is recognised prospectively.
Gains/losses on the disposal of property, plant and equipment are stated as the difference between the selling price and the carrying amount at the date of disposal.
Gains/losses are recognised in the consolidated statement of profit or loss as other operating income or operating cost in the period of disposal.
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.11 Right-of-use assets and lease liability
adjusted for any lease prepayments or directly related cost, including dismantling and restoration cost.
Right-of-use assets are depreciated by the straight-line method over the lease term or the useful life of the leased asset, whichever is shortest.
The lease liability is measured at the present value of lease payments of the lease term discounted using the interest rate implicit in the lease contract. In cases where the implicit interest rate cannot be determined,
an appropriate incremental Grundfos borrowing rate is applied corresponding to the borrowing rate used in the country specific project.
Right-of-use assets and lease liabilities are not recognised for low value lease assets below DKK 50,000 or leases with a term of 12 months or less. These are recognised as an expense on a straight-line basis over the
term of the lease.
CONSOLIDATED FINANCIAL STATEMENTS
Note 36.12 Trade receivables and other receivables
Note 36.13 Inventories
Receivables are measured at amortised cost less expected credit losses. The estimated value is discounted where relevant.
Contracted work in progress is measured at sales value of the completed part of the contracts as at the date of statement of financial position.
Expected credit loss is based on historic experience including impact from regional and specific circumstances.
An impairment analysis is performed to measure expected credit losses. The provision rates are based on days past due, customer geography, type and rating and coverage by letters of credit or other forms of credit insurance. Generally,
trade receivables are written-off if past due for more than one year.
The Group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables and contract assets.
Inventories are measured at the lower of cost in accordance with the FIFO method and the net realisable value. The cost of goods for resale and raw materials and consumables comprises purchase price plus
delivery cost.
The cost of finished goods and work in progress comprises the cost of raw materials, consumables, direct wages and indirect costs such as material and labour, maintenance of and depreciation on production machinery, buildings and
equipment and cost relating to production administration and management.
The net realisable value of inventories is determined as the selling price less cost of completion and cost incurred to make the sale, taking into account marketability, obsolescence and developments in the expected
selling price.
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.14 Provisions
Note 36.15 Pension and similar obligations
Provisions are recognised when, as a result of past events, the Group has a legal or a constructive obligation, and it is probable that there may be outflow of resources embodying economic benefits to settle the obligation.
Provisions are measured at the expected future cash flows and – where material – discounted, using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific
to the liability.
Management continually assesses provisions, including contingencies and the likely outcome of pending and potential legal proceedings.
The Group has established defined-benefit plans with certain employees at some of the Group’s foreign companies. The plans place the Group under an obligation to pay a certain benefit in connection with retirement (e.g. in the form of
a fixed amount at retirement or a proportion of the employee’s exit salary). The pension obligations are determined by discounting the pension obligations at the present value.
The present value is determined based on assumptions about the future development in economic variables such as interest rates, inflation, mortality and disability probabilities, which are subject to some degree of uncertainty. External
actuaries are used for the measurement of all significant defined-benefit plans. The assumptions used are disclosed in Note 18 'Pension and similar obligations'.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.16 Tax
Note 36.17 Share-based payments
Income tax
Tax expense for the year includes current and deferred tax. Tax is recognised in the consolidated statement of profit or loss, except when the tax relates to items recognised in other comprehensive
income or directly in equity, in which case the tax is recognised in other comprehensive income or directly in equity, respectively.
Current tax
Current tax assets and tax liabilities arising from current or prior periods are recognised at the amounts expected to be received from or paid to the relevant tax authority.
Tax for the period is recognised in the consolidated statement of profit or loss.
The tax rates applied are those in force at the date of the statement of financial position.
Deferred tax
Deferred tax is measured using all temporary differences between the carrying amount and the tax value of assets and liabilities.
Deferred tax assets, including the tax value of tax loss carry forwards, are recognised to the extent that future taxable income is likely to be available against which the differences can be used
– either as a setoff against tax on future income or as a set-off against deferred tax liabilities.
Deferred tax assets are assessed on an ongoing basis and are recognised only to the extent that future taxable profits are likely to allow the recovery of the deferred tax asset.
Deferred tax assets and deferred tax liabilities are measured using the tax rates expected to apply in the year when the asset is realised, or the liability is settled.
Deferred tax assets and deferred tax liabilities are set off if a legal right to do so exists, and the deferred tax is attributable to the same legal tax entity.
The temporary exception from the requirement to account for deferred taxes arising from the implementation of the Global Minimum Tax has been applied.
Uncertain tax positions
Employees (including senior executives) of the Group receive remuneration in the form of share-based payments, whereby employees render services as consideration for equity instruments (equity settled transactions).
Equity-settled transactions
The cost of equity-settled transactions is determined by the fair value at the date when the grant is made using an appropriate valuation model.
That cost is recognised in employee benefits expense, together with a corresponding increase in equity (retained earnings), over the period in which the service and, where applicable, the performance conditions are fulfilled (the vesting
period). The cumulative expense recognised for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity
instruments that will ultimately vest. The expense or credit in the statement of profit or loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.18 Financial instruments
Note 36.19 Fair value measurements
Financial assets and financial liabilities
Financial assets and liabilities are measured at fair value through the consolidated statement of profit or loss or at fair
value through other comprehensive income (hedging instruments).
Derivatives and hedge accounting
Derivative financial instruments are measured at fair value.
An economic relationship between the hedged item and the hedging instrument exists when it is expected that
the values of the hedged item and hedging instrument will typically move in opposite directions in response to
movements in the same risk (hedged risk).
Effectiveness is monitored by comparing the change in the value of the future cash flow hedged to the change in the
value of the derivative.
Changes in the fair value of derivative financial instruments designated as a hedge of a recognised asset or liability
are recognised in other comprehensive income.
Changes in the fair value of derivative financial instruments that are not designated as a hedge or do not meet the
criteria for hedge accounting are recognised as finance income or finance cost in the consolidated statement of profit
or loss.
Other financial assets and liabilities
Receivables and other financial assets are measured at amortised cost and written down for expected credit loss on
bad debt.
Payables are measured at amortised cost.
The Group uses fair value for certain disclosures and measurement of financial instruments and other investments.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
The fair value measurement is based on the assumption that the transaction to sell the asset or transfer the liability
takes place either in the principal market for the asset or liability or, in the absence of a principal market, in the
most advantageous market for the asset or liability. The fair value of an asset or a liability is measured using the
assumptions that market participants would use when pricing the asset or liability, presuming that they are acting in
their economic best interest.
The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data is
available to measure fair value, thus maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed are categorised within the fair value hierarchy,
described as follows, on the basis of the lowest level input that is significant to the fair value measurement as a
whole.
LEVEL 1: Quoted (unadjusted) market prices in active markets for identical assets or liabilities.
LEVEL 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is
directly or indirectly observable.
LEVEL 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is
unobservable.
The fair value of interest rate swaps is determined by discounting estimated future cash flows. Discounting takes
place on the basis of yield curves based in turn on market rates prevailing at the closing date. Fair value of the issued
bonds is equal to the listed bond price at the balance sheet date.
The fair value of electricity swaps is determined by discounting estimated future cash flows. Discounting takes place
on the basis of estimated price curves and estimated volumes of electricity produced.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.20 Business combinations
Note 36.21 Government grants
Note 36.22 Foreign currency translation
Enterprises acquired during the year are recognised in the consolidated financial statements from the date of
acquisition. The acquisition date is the date when the parent company effectively obtains control of the acquired
enterprise. Enterprises disposed of are recognised in the consolidated statement of profit or loss until the disposal
date.
For acquisitions of new enterprises in which the parent company is able to exercise control over the acquired
enterprise, the purchase method is used. The acquired enterprise’s identifiable assets, liabilities and contingent
liabilities are measured at fair value at the acquisition date. Identifiable intangible assets are recognised if they are
separable or arise from a contractual right. Deferred tax on revaluations is recognised.
Goodwill is initially measured at cost, being the excess of the consideration transferred, over the Group net
identifiable assets acquired, and liabilities assumed. If this consideration is lower than the fair value of the net assets
of the subsidiary acquired, the difference is recognised in the consolidated statement of profit or loss as a gain from
a bargain purchase. After initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date,
allocated to each of the Group cash-generating units that are expected to benefit from the combination. Goodwill is
tested for impairment at year-end or more frequently when impairment indicators are identified.
The cost of a business combination comprises the fair value of the consideration agreed upon. When a business
combination agreement provides for an adjustment to the cost of the combination contingent on future events,
the amount of that adjustment is included in the cost of the combination if the adjustment is probable and can be
measured in a reliable manner. Subsequent changes to contingent considerations are recognised in the consolidated
statement of profit or loss. If uncertainties regarding the measurement of identifiable assets, liabilities and
contingent liabilities exist at the acquisition date, initial recognition will take place on the basis of preliminary fair
values. If identifiable assets, liabilities and contingent liabilities are subsequently determined to have significantly
different fair value at the acquisition date than first assumed, goodwill is adjusted up to twelve months after the
acquisition. The effect of the adjustments is recognised in the opening balance of equity and the comparative figures
are restated accordingly.
Grants for R&D purposes are recognised as income in the consolidated profit and loss account under R&D cost, thus offsetting the cost they compensate.
Grants for the purchase of assets and development projects that are capitalised are offset in the cost of the assets to which the grants are given.
For each of the reporting entities in the Group, a functional currency is determined. The functional currency of the
parent company is DKK. The functional currency is the currency used in the primary financial environment in which
the reporting entity operates. Transactions denominated in other currencies than the functional currency are foreign
currency transactions. On initial recognition, foreign currency transactions are translated into the functional currency
using the exchange rates at the transaction date. Foreign exchange differences arising between the exchange rates
at the transaction date and the date of payment are recognised in the consolidated statement of profit or loss as
financial income or financial expenses.
Receivables, payables and other monetary items denominated in foreign currencies are translated into the functional
currency using the exchange rates at the reporting date. The difference between the exchange rates at the date of
statement of financial position and at the date at which the receivable or payable arose or the exchange rates in the
latest annual report is recognised in the consolidated statement of profit or loss.
The consolidated statement of profit or loss and statement of comprehensive income of entities with a functional
currency other than Danish kroner are translated at the exchange rates at the transaction date. Balance sheet items
are translated at the exchange rates at the date of statement of financial position. An average exchange rate for each
month is used as the exchange rate at the transaction date to the extent that this does not significantly distort the
presentation of the underlying transactions.
Foreign currency translation adjustments that are considered part of the total net investment in entities with another
functional currency than DKK are recognised in the consolidated financial statements in other comprehensive income
under a separate reserve for foreign currency translation adjustments under equity.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 36.23 Cash flow statement
Note 36.24 Contingent liabilities and assets
The cash flow statement shows the cash flows from operating, investing and financing activities for the year, the
year’s changes in cash and cash equivalents as well as cash and cash equivalents at the beginning and end of the year.
The cash flow effect of acquisitions and disposals of entities is shown separately in cash flows from investing
activities. Cash flows from acquired entities are recognised in the cash flow statement from the acquisition date. Cash
flows from disposals of entities are recognised up until the date of disposal.
Cash flows from operating activities are calculated in accordance with the indirect method based on profit/loss
after tax adjusted for non-cash operating items, changes in working capital, interest received and paid, including the
interest element related to recognised lease commitments, dividends received and corporation tax paid.
Cash flows from investing activities comprise payments in connection with acquisitions and disposals
of entities and activities, of intangible assets, property, plant and equipment and other non-current assets
as well as securities that are not presented as cash and cash equivalents.
Cash flows from financing activities comprise changes in the size or composition of the share capital and related
expenses as well as borrowings, repayment of interest-bearing debt, repayment of lease commitments, purchase and
sale of treasury shares and distribution of dividends to shareholders.
Cash and cash equivalents comprise cash at bank and in hand. Cash flow in currencies other than the functional
currency are translated using average exchange rates unless this deviates significantly from
the rate at the transaction date.
Contingent liabilities comprise obligations that are not recognised because the outflow of resources embodying economic benefits will probably not be required to settle the obligation or because the amount
of the obligation cannot be measured with sufficient reliability.
CONSOLIDATED FINANCIAL STATEMENTS
Notes to the consolidated financial statements
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
91 Statement of profit and loss
92 Statement of other comprehensive income
93 Statement of financial position
95 Statement of cash flows
96 Statement of changes in equity
97 Notes to the financial statements
Parent Company
financial statements
Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Statement of profit and loss
PARENT COMPANY FINANCIAL STATEMENTS
Amounts in DKK million
1 January - 31 December 2024
NOTE 2024 2023
Revenue 1 5,578 5,200
Production cost (204) (213)
GROSS PROFIT 5,374 4,987
Research and development cost 2 (1,427) (1,434)
Selling and distribution cost 3 (989) (797)
Administrative cost 4 (1,956) (2,038)
EARNINGS BEFORE INTEREST AND TAX (EBIT) 1,002 718
Income from investments in affiliated companies 2,410 2,524
Finance income 5 682 724
Finance expenses 5 (320) (287)
PROFIT BEFORE TAX 3,774 3,679
Income tax expenses 6 (347)
PROFIT FOR THE YEAR 3,427 3,417
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Statement of other comprehensive income
1 January - 31 December 2024
NOTE 2024 2023
PROFIT FOR THE YEAR 3,427 3,417
OTHER COMPREHENSIVE INCOME THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIODS:
Exchange differences on translation of foreign operations 149 (86)
Other adjustments (456) (188)
Tax on other comprehensive income (33) 19
NET OTHER COMPREHENSIVE LOSS THAT MAY BE RECLASSIFIED TO PROFIT OR LOSS IN SUBSEQUENT PERIOD (340) (255)
TOTAL COMPREHENSIVE INCOME FOR THE YEAR, NET OF TAX 3,087 3,162
Amounts in DKK million
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Statement of financial position
Amounts in DKK million
As at 31 December 2024
ASSETS
NOTE 2024 2023
NON-CURRENT ASSETS
INTANGIBLE ASSETS
Completed development projects 111 60
Other intangible assets 125 138
Development projects in progress 237 185
Other intangible assets in progress 277 144
TOTAL INTANGIBLE ASSETS 7 750 527
PROPERTY, PLANT AND EQUIPMENT
Technical installations and machinery 8 104 95
Other technical installations 8 152 186
Property, plant and equipment in progress 8 164 124
Right of use assets 9 110 203
TOTAL PROPERTY, PLANT AND EQUIPMENT 530 608
FINANCIAL ASSETS
Investments in affiliated companies 10 17,147 15,279
Accounts receivable from affiliated companies 11 2,752 2,671
Other accounts receivable 30 33
TOTAL FINANCIAL ASSETS 19,929 17,983
TOTAL NON-CURRENT ASSETS 21,209 19,118
CURRENT ASSETS
Inventory 3 4
Accounts receivable from affiliated companies 11 2,387 2,543
Corporation tax receivable 0 134
Prepayments and other accounts receivable 12 256 239
Securities 13 4,705 3,141
Cash and cash equivalents 14 2,303 4,376
TOTAL CURRENT ASSETS 9,654 10,437
TOTAL ASSETS 30,863 29,555
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Statement of financial position
Amounts in DKK million
As at 31 December 2024
EQUITY AND LIABILITIES
NOTE 2024 2023
EQUITY
Share capital 15 381 381
Reserve development projects 191 191
Reserve for net revaluation under the equity method 4,898 4,036
Retained earnings 17,319 16,819
Proposed dividend 1,700 1,700
TOTAL EQUITY 24,489 23,127
NON-CURRENT LIABILITIES
Provisions 16 36 29
Deferred tax liabilities 6 181 110
9 99 150
TOTAL NON-CURRENT LIABILITIES 316 289
CURRENT LIABILITIES
Trade and other payables 18 283 303
Accounts payable to affiliated companies 11 5,262 5,363
Interest-bearing debt 17 31 58
9 12 53
Income tax payable 6 79 0
Other liabilities 19 391 362
TOTAL CURRENT LIABILITIES 6,058 6,139
TOTAL LIABILITIES 6,374 6,428
TOTAL LIABILITIES AND EQUITY 30,863 29,555
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Statement of cash flows
Amounts in DKK million
1 January - 31 December 2024
NOTE 2024 2023
OPERATING ACTIVITIES
Profit after tax 3,427 3,417
Depreciation and impairment of property, plant and equipment and
right-of-use assets
7, 8, 9 339 344
Finance income 5 (682) (724)
Finance expenses 5 320 287
Income from investments in affiliated companies 10 (2,410) (2,524)
Provisions 7 0
Tax for the year 6 347 262
Changes in net working capital 496 (832)
Dividends received 10 1,256 1,411
CASH FLOW FROM OPERATIONS BEFORE FINANCIAL ITEMS
AND TAX
3,100 1,641
Taxes paid (63) (277)
Interest paid and realised currency losses (320) (287)
Interest received and realised currency gains 682 724
Other adjustments 358 (25)
CASH FLOW FROM OPERATING ACTIVITIES 3,757 1,776
NOTE 2024 2023
INVESTING ACTIVITIES
Purchase of intangible assets 7 (323) (248)
Purchase of property, plant and equipment 8, 9 (163) (158)
Capital injections to subsidiaries (1,612) (544)
Repayment of loans from affiliated companies (276) 1,845
Purchase of securities 13 (3,395) (1,282)
Sale of securities 13 1,938 1,440
CASH FLOW FROM INVESTING ACTIVITIES (3,829) 1,053
NET CASH FLOW FROM OPERATING AND INVESTING ACTIVITIES (72) 2,829
FINANCING ACTIVITIES
Payment of principal portion of lease liabilities 9 (98) (102)
Proceeds from borrowings affiliated companies (96) 989
Repayment of borrowings (27) 0
Proceeds from borrowings 0 18
Purchase of own shares (80) (12)
Dividend paid (1,700) (1,000)
CASH FLOW FROM FINANCING ACTIVITIES (2,001) (107)
NET INCREASE/DECREASE IN CASH AND CASH EQUIVALENTS (2,073) 2,722
CASH AND CASH EQUIVALENTS AS AT 1 JANUARY 4,376 1,654
CASH AND CASH EQUIVALENTS AS AT 31 DECEMBER 2,303 4,376
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Statement of changes in equity
Amounts in DKK million
SHARE CAPITAL
RESERVE
DEVELOPMENT
PROJECTS
RESERVE EQUITY
METHOD
RETAINED
EARNINGS
PROPOSED
DIVIDEND
EQUITY ATTRIBUTABLE
TO SHAREHOLDERS
OF GRUNDFOS
HOLDING A/S
BALANCE AT 1 JANUARY 2023
381 126 3,111 16,304 1,000 20,922
Profit for the year, attributable to shareholders 0 65 1,113 539 1,700 3,417
Other comprehensive income/loss 0 0 0 (86) 0 (86)
Exchange rate adjustments, affiliated companies, etc. 0 0 (188) 0 0 (188)
Tax on other comprehensive income 0 0 0 19 0 19
TOTAL COMPREHENSIVE INCOME/LOSS 0 65 925 472 1,700 3,162
TRANSACTIONS WITH OWNERS:
Dividend paid 0 0 0 0 (1,000) (1,000)
Purchase of treasury shares 0 0 0 (287) 0 (287)
Sale of own shares 0 0 0 241 0 241
Share-based compensation expenses 0 0 0 89 0 89
TOTAL TRANSACTIONS WITH SHAREHOLDERS 0 0 0 43 (1,000) (957)
BALANCE AT 31 DECEMBER 2023 381 191 4,036 16,819 1,700 23,127
Profit for the year, attributable to shareholders 0 23 1,154 550 1,700 3,427
Other comprehensive income/loss 0 0 0 149 0 149
Exchange rate adjustments, affiliated companies, etc. 0 0 (292) (164) 0 (456)
Tax on other comprehensive income 0 0 0
TOTAL COMPREHENSIVE INCOME/LOSS 0 23 862 502 1,700 3,087
TRANSACTIONS WITH OWNERS:
Dividend paid 0 0 0 0 (1,700) (1,700)
Purchase of treasury shares 0 0 0 (378) 0 (378)
Sale of own shares 0 0 0 250 0 250
Share-based compensation expenses 0 0 0 103 0 103
TOTAL TRANSACTIONS WITH SHAREHOLDERS 0 0 0 (25) (1,700) (1,725)
BALANCE AT 31 DECEMBER 2024 381 214 4,898 17,296 1,700 24,489
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Notes index
Note 1 Revenue .................................................................................................98
Note 2 Research and development cost ...........................................................98
Note 3 Selling and distribution cost ..................................................................98
Note 4 Administration cost ................................................................................ 99
Note 5 Finance income and expenses ............................................................... 99
Note 6 Tax ..........................................................................................................100
Note 7 Intangible assets ....................................................................................102
Note 8 Property, plant and equipment .............................................................104
Note 9 Right-of-use assets ................................................................................. 105
Note 10 Investments in affiliated companies ...................................................... 107
Note 11 Accounts receivable from and payables to affiliated companies .........108
Note 12 Prepayments ..........................................................................................108
Note 13 Securities ................................................................................................109
Note 14 Cash and cash equivalents ..................................................................... 110
Note 15 Share capital...........................................................................................110
Note 16 Provisions ...............................................................................................111
Note 17 Interest bearing debt .............................................................................112
Note 18 Trade and other payables ......................................................................112
Note 19 Other liabilities .......................................................................................113
Note 20 Fees to auditors appointed by the shareholders ..................................113
Note 21 Staff cost ................................................................................................114
Note 22 Share-based compensation expenses ...................................................115
Note 23 Financial risk management and financial assets ...................................117
Note 24 Hedging activities and derivatives ......................................................... 122
Note 25 Related parties .......................................................................................126
Note 26 Commitments and contingencies ..........................................................127
Note 27 Events after the balance sheet date ...................................................... 127
Note 28 Grundfos Holding A/S accounting policies ............................................128
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Notes to the accounts of Grundfos Holding A/S
Amounts in DKK million
Note 1 Revenue
2024 2023
Intercompany services 5,578 5,200
TOTAL 5,578 5,200
Note 2 Research and development cost
2024 2023
Staff cost 812 719
Consultancy 235 233
Depreciation and amortisation 54 62
Other research and development cost 326 420
TOTAL 1,427 1,434
Note 3 Selling and distribution cost
2024 2023
Staff cost 187 171
Sales promotion 145 142
Consultancy 80 75
Depreciation and amortisation 8 4
Other selling and distribution cost 569 405
TOTAL 989 797
Sale of services consists of fees for royalties, IT services and other intra-group services.
PARENT COMPANY FINANCIAL STATEMENTS
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 4 Administration cost
2024 2023
Staff cost 653 693
Consultancy 205 220
Depreciation and amortisation 67 51
Other administration 1,031 1,074
TOTAL 1,956 2,038
Note 5 Finance income and expenses
2024 2023
Interest income from bonds 92 71
Value adjustment etc. from bonds 41 63
Value adjustment etc. from shares 85 118
Hedging forward contracts 20 26
Financial income, affiliated companies 297 331
Other financial income 140 118
Exchange rate adjustments, other 7 (3)
TOTAL 682 724
Interest on lease liabilities 1 1
Financial expenses, affiliated companies 289 285
29 0
Other finance expenses 1 1
TOTAL 320 287
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 6 Tax
Note 6.1 Income taxes in statement of profit and loss and reconciliation
2024 2023
TAX ON THE PROFIT FOR THE YEAR IS SPECIFIED AS FOLLOWS:
Tax on profit/loss for the year 347 262
Tax on other comprehensive income 33 (19)
TOTAL 380 243
TAX ON THE PROFIT FOR THE YEAR HAS BEEN CALCULATED AS FOLLOWS:
Current income taxes 251 228
Deferred income taxes 71 10
Withholding taxes paid abroad 19 26
Adjustment regarding previous years 6 (2)
TOTAL INCOME TAXES 347 262
EFFECTIVE TAX RATE CAN BE CALCULATED AS FOLLOWS:
Danish tax rate 22% 22%
Non-taxable income and non-deductible expenses (14%) (16%)
Withholding taxes paid abroad 1% 1%
Adjustment previous years 0% 0%
Other adjustments 0% 0%
EFFECTIVE TAX RATE 9% 7%
Income tax receivable 0 134
Income tax payable (79) 0
TOTAL INCOME TAX (79) 134
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 6.2 Deferred taxes
2024 2023
CHANGES IN DEFERRED TAX
Net deferred tax assets 1 January 110 100
Deferred tax recognised in profit and loss account 71 10
Deferred tax recognised in equity 0 0
NET DEFERRED TAX LIABILITY 181 110
2024 2023
BREAKDOWN OF DEFERRED TAX
Fixed assets 177 120
Current assets 32 24
Provisions (26) (33)
(2) (1)
Tax loss carry forward 0 0
NET DEFERRED TAX LIABILITY 181 110
REFLECTED IN THE STATEMENT OF FINANCIAL POSITION AS FOLLOWS:
Deferred tax assets 0 0
Deferred tax liabilities (181) (110)
NET DEFERRED TAX LIABILITY (181) (110)
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
OTHER
INTANGIBLE
FIXED ASSETS
OTHER INTANGIBLE
FIXED ASSETS
IN PROGRESS
COMPLETED
DEVELOPMENT
PROJECTS
DEVELOPMENT
PROJECTS
IN PROGRESS TOTAL
COST AT 1 JANUARY 2024 381 144 129 185 839
Additions 22 169 20 112 323
Disposals (261) 0 (9) 0 (270)
Transfers 90 (36) 60 (60) 54
COST AT 31 DECEMBER 2024 232 277 200 237 946
AMORTISATION AND IMPAIRMENT AT 1 JANUARY 2024 243 0 69 0 312
Amortisation and impairment 125 0 29 0 154
Amortisation and impairment on disposals (261) 0 (9) 0 (270)
AMORTISATION AND IMPAIRMENT AT 31 DECEMBER 2024 107 0 89 0 196
CARRYING AMOUNT 31 DECEMBER 2024 125 277 111 237 750
COST AT 1 JANUARY 2023 620 93 161 73 947
Additions 17 108 10 113 248
Disposals (342) 0 (43) 0 (385)
Transfers 86 (57) 1 (1) 29
COST AT 31 DECEMBER 2023 381 144 129 185 839
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
Note 7 Intangible assets
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
OTHER
INTANGIBLE
FIXED ASSETS
OTHER INTANGIBLE
FIXED ASSETS
IN PROGRESS
COMPLETED
DEVELOPMENT
PROJECTS
DEVELOPMENT
PROJECTS
IN PROGRESS TOTAL
AMORTISATION AND IMPAIRMENT AT 1 JANUARY 2023 412 0 73 0 485
Amortisation and impairment 128 0 30 0 158
Amortisation and impairment on disposals (297) 0 (34) 0 (331)
AMORTISATION AND IMPAIRMENT AT 31 DECEMBER 2023 243 0 69 0 312
CARRYING AMOUNT 31 DECEMBER 2023 138 144 60 185 527
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 8 Property, plant and equipment
TECHNICAL INSTALLATION
AND MACHINERY
OTHER TECHNICAL
INSTALLATIONS
PROPERTY, PLANT AND
EQUIPMENT IN PROGRESS TOTAL
COST AT 1 JANUARY 2024 511 831 124 1,466
Additions 13 10 132 155
Disposals (47) (339) 0 (386)
Transfers 17 21 (92) (54)
COST AT 31 DECEMBER 2024 494 523 164 1,181
DEPRECIATION AT 1 JANUARY 2024 416 645 0 1,061
Depreciation 21 65 0 86
Depreciation on disposals (47) (339) 0 (386)
DEPRECIATION AT 31 DECEMBER 2024 390 371 0 761
CARRYING AMOUNT 31 DECEMBER 2024 104 152 164 420
COST AT 1 JANUARY 2023 472 779 109 1,360
Additions 28 23 85 136
Disposals 0 0 0 0
Transfers 11 29 (70) (30)
COST AT 31 DECEMBER 2023 511 831 124 1,466
DEPRECIATION AT 1 JANUARY 2023 394 581 0 975
Depreciation 22 64 0 86
DEPRECIATION AT 31 DECEMBER 2023 416 645 0 1,061
CARRYING AMOUNT AT 31 DECEMBER 2023 95 186 124 405
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 9 Right-of-use assets
The Company has lease contracts for buildings, motor vehicles and other equipment used in its operations. For buildings that are all leased from another company in the Group, lease terms of 5 years have been applied, while motor vehicles
and other equipment generally have lease terms between 4 - 5 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and subleasing the
leased assets.
The Company also has leases with lease terms of 12 months or less and leases of low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.
Set out below are the carrying amounts of right-of-use assets recognised and the movements during the period:
BUILDINGS MOTOR VEHICLES TOTAL
CARRYING AMOUNT AT 1 JANUARY 2024 180 23 203
Additions 0 6 6
Depreciation (90) (9) (99)
CARRYING AMOUNT AT 31 DECEMBER 2024 90 20 110
CARRYING AMOUNT AT 1 JANUARY 2023 270 10 280
Additions 0 23 23
Depreciation (90) (10) (100)
CARRYING AMOUNT AT 31 DECEMBER 2023 180 23 203
Set out below are the carrying amounts of lease liabilities (included under interest-bearing loans and borrowings) and the movements during the period:
2024 2023
BALANCE AT 1 JANUARY 203 281
Additions 6 22
Interest 1 1
Payments (99) (102)
BALANCE AT 31 DECEMBER 111 203
Current 12 53
Non-current 99 150
TOTAL 111 203
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
2024 2023
12 54
One to three years 103 103
More than three years 2 52
TOTAL UNDISCOUNTED LEASE LIABILITIES AT 31 DECEMBER 117 209
The following are the amounts recognised in profit or loss:
2024 2023
Depreciation expense of right-of-use assets 100 100
Interest expense on lease liabilities 1 1
Expense relating to short-term leases 1 1
Expense relating to leases of low-value assets 2 2
Variable lease payments 0 0
TOTAL AMOUNT RECOGNISED IN PROFIT OR LOSS 104 104
The company had total cash outflows for leases of DKK 99m in 2024 (2023: DKK 102m).
The company has a number of lease contracts that include extension and termination options. Management assesses whether or not it is reasonably certain that these options will be exercised after considering all relevant facts and
circumstances.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 10 Investments in affiliated companies
2024 2023
COST AT 1 JANUARY 17,847 17,303
Additions 1,612 544
Disposals (606) 0
COST AT 31 DECEMBER 18,853 17,847
Value adjustments at 1 January (2,568) (3,493)
Share of profit 2,410 2,922
Impairment 0 (398)
Dividends received (1,256) (1,411)
Other value adjustments (292) (188)
ADJUSTMENTS AT 31 DECEMBER (1,706) (2,568)
CARRYING AMOUNT AT 31 DECEMBER 17,147 15,279
OF WHICH CARRYING AMOUNT OF GOODWILL 2,177 1,078
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 11 Accounts receivable from and payables to affiliated companies
2024 2023
Receivables from affiliated companies – non-current 2,752 2,671
Receivables from affiliated companies – current 2,387 2,543
Payables to affiliated companies – current (5,262) (5,363)
TOTAL RECEIVABLE FROM AND PAYABLES TO AFFILIATED COMPANIES (123) (149)
Note 12 Prepayments and other accounts receivable
2024 2023
Prepayments 172 139
Other accounts receivable 84 100
TOTAL 256 239
2024 2023
Breakdown of receivables from affiliated companies:
Interest-bearing receivables 4,732 4,293
Non-interest-bearing receivables 407 921
TOTAL RECEIVABLES FROM AFFILIATED COMPANIES 5,139 5,214
2024 2023
Payables to affiliated companies – non-current 0 0
Interest-bearing payables to affiliated companies – current 5,262 5,363
Non-interest-bearing payables to affiliated companies 0 0
TOTAL PAYABLES TO AFFILIATED COMPANIES 5,262 5,363
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 13 Securities
2024 2023
COST AT 1 JANUARY 3,158 3,316
Additions during the year 3,395 1,282
Disposals during the year (1,938) (1,440)
COST AT 31 DECEMBER 4,615 3,158
Value adjustments at 1 January (17) (172)
Value adjustments during the year 107 155
VALUE ADJUSTMENTS AT 31 DECEMBER 90 (17)
BALANCE AT 31 DECEMBER 4,705 3,141
Current 4,705 3,141
Non-current 0 0
TOTAL 4,705 3,141
The portfolio consists solely of listed shares and bonds and is distributed as follows:
Shares 1,346 763
Bonds 3,359 2,378
TOTAL 4,705 3,141
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 14 Cash and cash equivalents
2024 2023
Cash at bank and on hand 2,303 4,376
TOTAL 2,303 4,376
Note 15 Share capital
2024 2023
Cash at bank and on hand 2,303 4,376
TOTAL 2,303 4,376
BANK OVERDRAFTS 0 0
CASH AND CASH EQUIVALENTS 2,303 4,376
The share capital consists of 38,090,911 shares with a nominal value of DKK 10 each. All shares rank equally. The share capital is fully paid.
2024 2023
Ordinary shares of DKK 10 each 381 381
TOTAL 381 381
In 2024, the Group bought 219,909 own shares (0.6% of share capital) from Poul Due Jensens Fond at fair value at time of purchase for proceeds of DKK 378 million.
All shares have been used for the Group’s share programmes during 2024. The Group has been authorised by the shareholders to acquire up to 2,625,000 treasury shares, equal to 6.6 % of the share capital.
The authorisation expires in yearly tranches during the period from 30 April 2025 to 30 April 2029.
Cash at banks earns interest at
floating rates based on daily bank
deposit rates. Short-term deposits
are made for varying periods of
between one day and three months,
depending on the immediate cash
requirements of the Company, and
earn interest at the respective
short-term deposit rates.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 16 Provisions
RESTRUCTURING JUBILEE TOTAL
BALANCE AT 1 JANUARY 2024 0 29 29
Provision 13 0 13
(2) 0 (2)
Reversed 0 (4) (4)
BALANCE AT 31 DECEMBER 2024 11 25 36
Current 0 0 0
Non-current 11 25 36
RESTRUCTURING JUBILEE TOTAL
BALANCE AT 1 JANUARY 2023 0 29 29
Provision 0 0 0
0 0 0
Reversed 0 0 0
BALANCE AT 31 DECEMBER 2023 0 29 29
Current 0 0 0
Non-current 0 29 29
Jubilee
In Grundfos Holding A/S, employees celebrating their 25, 40 or 50-year anniversary receive a one time benefit payment.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 17 Interest bearing debt
2024 2023
31 58
TOTAL 31 58
Current 31 58
Non-current 0 0
TOTAL 31 58
Note 18 Trade and other payables
2024 2023
Trade payables 283 303
TOTAL 283 303
Bank overdrafts
The bank overdrafts are secured by a portion of the Group’s short-term deposits.
Trade payables are non-interest bearing and are normally settled on 60-day terms
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 19 Other liabilities
2024 2023
Staff related 221 259
Accrued expenses 144 95
Other 26 8
TOTAL OTHER LIABILITIES 391 362
Note 20 Fees to auditors appointed by the shareholders
2024 2023
2 1
4 1
4 2
3 2
TOTAL FEES 13 6
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 21 Staff cost
2024 2023
Wages and salaries 1,450 1,402
Share-based payments 103 89
Pensions 138 108
Other social security cost 21 20
TOTAL 1,712 1,619
Staff cost is recognised in the financial statements as follows:
2024 2023
Production 60 36
Research and development 812 719
Sales and distribution 187 171
Administration 653 693
TOTAL 1,712 1,619
Average number of full-time employees 1,955 1,825
Number of employees at year end 2,060 1,886
Staff cost includes fees to Group Management and the Board of Directors of Grundfos Holding A/S for directorships in Grundfos Holding A/S and can be specified as follows:
BOARD OF
DIRECTORS
REGISTERED GROUP
MANAGEMENT
OTHER GROUP
MANAGEMENT
BOARD OF
DIRECTORS
REGISTERED GROUP
MANAGEMENT
OTHER GROUP
MANAGEMENT
Remuneration 11 22 23 11 21 19
Cash bonus 0 13 9 0 14 15
Pensions and other post-employment benefits 0 4 3 0 5 3
Termination benefits 0 0 3 0 0 1
Share-based payments
(according to Note 26 in the consolidated notes)
0 9 1 0 11 2
TOTAL 11 48 39 11 51 40
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
20232024
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 22 Share-based compensation expenses
Note 22.1
NO. OF UNITS
WEIGHTED AVERAGE
GRANT DATE FAIR VALUE
(DKK PER UNIT)
OUTSTANDING AS OF 1 JANUARY 2023
117,045 1,470
Granted during the year 66,691 1,351
Vested during the year (8,751) 1,249
Forfeited during the year (13,942) 1,458
OUTSTANDING AS OF 31 DECEMBER 2023 161,043 1,434
Granted during the year 76,030 1,711
Vested during the year (47,381) 1,372
Forfeited during the year (12,724) 1,506
OUTSTANDING AS OF 31 DECEMBER 2024 176,968 1,565
The outstanding units are expected to
vest over a weighted average period of
1.7 years (2023: 1.6 years).
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
2024 2023
Shares purchased during the year 173,828 203,670
Note 22.3 Expense recognised during the year
2024 2023
54 55
Expense arising from equity-settled share-based payment transactions (ESP) 49 34
TOTAL 103 89
Note 22.4 Inputs and model used
2024 2023
Benchmark PE multiple 19.8 18.6
Annual growth in average profit after tax applied for share price calculation 18% 14%
Note 22.2 Employee Share Purchase Plan (ESP)
There were no cancellations or modifications to the grants.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
ESP is a global programme, whereby certain employees are granted an option to buy shares of Grundfos Holding A/S at a discounted price. Employees employed by group companies in certain countries are
excluded from this due to local restrictions or requirements. The only condition for eligibility is that the employee should be employed by the Group as at the specified date (close to the grant date) and has
not resigned or been terminated.
The Board of Directors of Grundfos Holding A/S will each year decide if an Employee Share Purchase Plan is offered.
The expense recognised over the vesting period is based on the discount the employee is entitled to upon purchase of the shares.
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 23 Financial risk management and financial assets
The main purpose of the Company’s financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations.
The Company is exposed to financial risks, consisting of liquidity risk, foreign currency risk, interest rate risk and credit risk that affect its earnings. Company Management oversees the management of these risks, including overseeing that the
Company’s financial risk activities are governed by the policies and procedures outlined by Management and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. It is the
Company’s policy that no trading in derivatives for speculative purposes may be undertaken.
The Board of Directors reviews and agrees on policies for managing each of these risks.
Note 23.1 Financial risks
FINANCIAL RISKS
DESCRIPTION EFFECT
Reference
Currency risk
The Company is exposed to fluctuations when performing sales and
purchases in foreign currencies.
Threat: Moderate
Note 1 ‘Revenue’
Interest rate risk
The Company is exposed to fluctuations in interest rates related
to financing arrangements
Effect: High
Threat: Moderate
Note 13 ‘Securities’
Note 14 ‘Cash and cash equivalents’
Note 17 ‘Interest bearing debt’
Credit risk
The Company is exposed to risk a counterparty (mainly related to
trade receivables and contracts assets) will not meet its obligation lead-
ing to a financial loss.
Effect: Moderate
Threat: Moderate
Note 11 ‘Accounts receivable from and payables
to affiliated companies’
Note 14 ‘Cash and cash equivalents’
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 23.2 Financial instrument by category
2024 2023
Shares 1,346 763
Bonds 3,359 2,378
0 1
FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS 4,705 3,142
Accounts receivable 2,387 2,543
Cash and cash equivalents 2,303 4,376
FINANCIAL ASSETS MEASURED AT AMORTISED COST 4,690 6,919
23 0
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE THROUGH PROFIT AND LOSS 23 0
Bank and other loans 31 58
Accounts payable 5,545 5,666
FINANCIAL LIABILITIES MEASURED AT AMORTISED COST 5,576 5,724
Forward currency contracts, external banks 149 28
Forward currency contracts, affiliated companies (149) (28)
FINANCIAL ASSETS/LIABILITIES MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME 0 0
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
2023
Shares 763 0 0 763
Bonds 2,378 0 0 2,378
0 0 1 1
FINANCIAL ASSETS MEASURED AT FAIR VALUE AS AT 31 DECEMBER 3,141 0 1 3,142
Forward currency contracts 0 28 0 28
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE AS AT 31 DECEMBER 0 28 0 28
Amounts in DKK million
Note 23.3 Fair value measurement
Fair value hierarchy
QUOTED MARKET
PRICES (LEVEL 1)
VALUATION BASED
DIRECTLY OR
INDIRECTLY ON
MARKET (LEVEL 2)
VALUATION TECHNIQUES
BASED ON UNOBSERVABLE
INPUTS FOR VALUATION
(LEVEL 3) TOTAL
2024
Shares 1,346 0 0 1,346
Bonds 3,359 0 0 3,359
FINANCIAL ASSETS MEASURED AT FAIR VALUE AS AT 31 DECEMBER 4,705 0 0 4,705
Forward currency contracts 0 149 0 149
0 0 23 23
FINANCIAL LIABILITIES MEASURED AT FAIR VALUE AS AT 31 DECEMBER 0 149 23 172
The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 23.4 Valuation techniques and assumptions used
Note 23.5 Foreign currency risks
The management assessed that the fair values of cash and short-term deposits, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts
largely due to the short-term maturities of these instruments.
Securities
Fair value of securities is based on observable market prices from stock exchanges.
Electricity swap
The Group has entered into a long-term electricity swap, in which the Group purchases renewable electricity from a windfarm at a fixed price and sells it at market price with net settlements on a monthly basis. It is a 10-year contract
with expiry in 2034. The volume in the electricity swap covers a portion of the Group's electricity consumption but is not considered a hedge. The valuation of electricity swaps is based on estimates on non-observable prices for a
long-term period. The fair value of electricity swaps is determined by discounting estimated future cash flows. Discounting takes place on the basis of estimated price curves and volumes of electricity produced.
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of variations in foreign currency rates.
INCREASE IN
EXCHANGE RATE
MONETARY
ITEMS HEDGING NET
MONETARY
ITEMS HEDGING NET
CURRENCY SENSITIVITY -
IMPACT ON EQUITY (BEFORE TAX)
5% 113 (4) 109 119 0 119
5% 6 0 6 7 0 7
GBP 5% (9) 0 (9) (40) 0 (40)
5% (1) 0 (1) (1) 0 (1)
5% (16) 0 (16) (15) 0 (15)
TOTAL
93 (4) 89 70 0 70
2024 2023
The impact on equity arises from
monetary items and hedging
instruments where the currency that
the hedging instruments and monetary
items are denominated in differs from
the functional currency of the entity.
The impact would have been the
opposite if exchange rates had been
decreasing by similar percentages. The
analysis is based on the transaction
currency. The Company hedges group
cash flow with external banks and
enters opposite contracts with group
companies, hence the net value
and calculated impact of currency
fluctuations on hedging is zero.
Monetary items are expected to be
converted to cash during a period
of up to 60 days. Hedging contracts
cover up to 80% of expected inflow
in each currency for a period of up
to 12 months.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 23.6
The Company’s objective is to maintain a balance between funding continuity and flexibility through the use of bank overdrafts, bank loans and bonds issue. The Management assessed the concentration of risk with respect to refinancing
its debt and concluded it to be low. Access to sources of funding is sufficiently available.
ON DEMAND
UP TO
1 YEAR
FROM 1
TO 3 YEARS
FROM 3 YEARS
TO 5 YEARS
MORE THAN
5 YEARS TOTAL
31 DECEMBER 2024
Interest-bearing loans and borrowings (excl. items below) 0 31 0 0 0 31
0 112 97 2 0 112
Trade payables 0 283 0 0 0 283
0 7 14 0 2 23
TOTAL FINANCIAL LIABILITIES MEASURED AT FAIR VALUE
0 333 111 2 2 426
31 DECEMBER 2023
Interest-bearing loans and borrowings (excl. items below) 0 58 0 0 0 58
0 54 103 52 0 209
Trade payables 0 303 0 0 0 303
0 0 (1) 0 0 (1)
TOTAL FINANCIAL LIABILITIES MEASURED AT FAIR VALUE
0 415 103 52 0 570
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 24 Hedging activities and derivatives
Forward currency contracts are estimated by generally accepted valuation techniques based on relevant observable
swap curves and exchange rates. The fair value applied is calculated mainly by external sources on the basis of
discounted future cash flows. Anticipated cash flow for individual contracts is based on observable market data such
as interest rates and exchange rates. In addition, fair values are based on non-observable data, including exchange
rate volatilities, or correlation between yield curves and credit risks. Non-observable market data account for an
insignificant part of the fair value of the derivative financial instruments.
Foreign currency risk
Foreign currency forward contracts are designated as hedging instruments in cash flow hedges of forecast cash inflows
controlled by the Company. Should there be a forecasted transaction in excess of DKK 50m, this will be considered
significant, and therefore, between 50-90% of this cash flow exposure should be hedged. Otherwise, the exposures of
foreign currency cash flows must be within the following ratios:
0-6 months: 80%-90%
7-12 months: 70%-80%
12-15 months: 50%-70%
The Company sets out opposite contracts with the controlled entities which effectively transfers the value of the
contract to the controlled entity.
These forecast transactions are highly probable. Refer to the table below for the relevant amounts of the respective
transactions. The foreign exchange forward contract balances vary with the level of expected foreign currency
sales and purchases and changes in foreign exchange forward rates. Given the Danish Kroner has a fluctuation limit
Further to the described contracts that are transferred to the controlled entities, the Company has entered contracts
There is no proxy hedging for the currency risk hedging, and therefore the economic relationship between the
hedged exposure and the hedge is high. Effectiveness is assessed using the critical terms match approach according
to IFRS 9. The source of ineffectiveness is the credit risk of the hedging instruments. For hedges where the cost of
hedging is applied, the change in basis spread is recognised in other comprehensive income and is a time effect
during the life of the forward contract. At maturity, this amounts to zero.
The net amount of the foreign exchange contracts is presented within either ‘Other Current Assets’ or ‘Other Current
Note 23.7 Interest rate risks
The company’s interest risk is mainly related to bank deposits and bonds. Bank deposits have a short time horizon, whereas the exposure of the bond portfolio – amounting to a total of DKK 3,359m (2023: DKK 2,378m) – when
expressed by an increase of the interest rate by 1 percentage point is approx. DKK 86m (2023: DKK 79m).
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
The Company is holding the following foreign exchange forward contracts:
LESS THAN
1 MONTH
1 TO 3
MONTHS
3 TO 6
MONTHS
6 TO 9
MONTHS
9 TO 12
MONTHS TOTAL
AS AT 31 DECEMBER 2024 Fair Value, Asset
Fair Value,
Liability
Notional
Amount
Foreign exchange forward contracts (highly probable forecast sales or purchases)
29 31 62 66 56 244
(29) (31) (62) (66) (56) (244)
6 11 15 16 11 59
(6) (11) (15) (16) (11) (59)
GBP - inflow 15 13 21 20 13 82
GBP - outflow (15) (13) (21) (20) (13) (82)
132 120 115 92 46 505
(132) (120) (115) (92) (46) (505)
1,900 3,900 6,180 5,970 4,540 22,490
1,900 3,900 6,180 5,970 4,540 22,490
NOTIONAL AMOUNT (IN DKK MILLIONS)
79.5 (0.1) 211 222 443 472 401 1,749
0.1 (76.4) (211) (222) (443) (472) (401) (1,749)
0.0 (3.7) 25 48 66 72 47 258
4.2 0.0 (25) (48) (66) (72) (47) (258)
GBP - inflow 18.7 0.0 131 119 192 180 118 740
GBP - outflow 0.0 (17.4) (131) (119) (192) (180) (118) (740)
9.4 (0.1) 129 118 113 90 45 495
0.1 (8.5) (129) (118) (113) (90) (45) (495)
0.3 (11.5) 34 71 112 108 82 407
12.2 (0.2) (34) (71) (112) (108) (82) (407)
AVERAGE FORWARD RATE
(EUR/ONE CURRENCY UNIT)
1.072 1.106 1.100 1.116 1.088 1.099
1.668 1.658 1.641 1.667 1.665 1.658
GBP 0.848 0.866 0.864 0.857 0.847 0.857
7.84 6 7. 805 7.789 7.741 7.6 98 7.7 79
399.233 403.053 401.096 408.208 423.449 407. 505
MATURITY
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
The Company is holding the following foreign exchange forward contracts:
LESS THAN
1 MONTH
1 TO 3
MONTHS
3 TO 6
MONTHS
6 TO 9
MONTHS
9 TO 12
MONTHS TOTAL
AS AT 31 DECEMBER 2023 Fair Value, Asset
Fair Value,
Liability
Notional
Amount
Foreign exchange forward contracts (highly probable forecast sales or purchases)
22 36 46 23 25 152
(20) (34) (34) (24) (23) (135)
8 10 17 14 9 58
(8) (10) (17) (14) (9) (58)
GBP - inflow 12 11 15 19 15 72
GBP - outflow (12) (11) (15) (19) (15) (72)
44 62 106 111 77 400
(44) (62) (106) (111) (77) (400)
3,062 4,254 6,417 5,868 3,564 23,165
(3,062) (4,254) (6,417) (5,868) (3,564) (23,165)
NOTIONAL AMOUNT (IN DKK MILLIONS)
12.8 1.0 150 243 310 157 166 1,026
1.7 12.3 (132) (230) (232) (162) (158) (914)
4.3 1.1 36 47 80 63 41 267
1.2 3.9 (36) (47) (80) (63) (41) (267)
GBP - inflow 8.5 0.5 100 95 127 161 126 609
GBP - outflow 0.6 7.5 (100) (95) (127) (161) (126) (609)
8.5 0.5 42 59 101 105 71 378
0.6 7.5 (42) (59) (101) (105) (71) (378)
19.5 0.1 60 83 125 114 69 451
0.2 18.8 (60) (83) (125) (114) (69) (451)
AVERAGE FORWARD RATE
(EUR/ONE CURRENCY UNIT)
1.099 1.094 1.104 1.092 1.091 1.096
0.952 1.627 1.637 1.679 1.675 1.555
GBP 0.895 0.896 0.878 0.878 0.877 0.883
7.29 4 7. 393 7.6 83 7.7 26 7.71 9 7.611
323.557 344.620 408.539 411.117 396.389 384.582
MATURITY
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Highly probable expected net cash flows from customers/to vendors 0 0
Revenue /
production cost
Amounts in DKK million
The effect of the cash flow hedge in the statement of profit
and loss and other comprehensive income is as follows:
TOTAL HEDGING GAIN/
LOSS RECOGNISED
IN OCI
INEFFECTIVENESS
RECOGNISED
IN PROFIT AND LOSS
LINE ITEM IN
THE STATEMENT OF
PROFIT AND LOSS
YEAR ENDED 31 DECEMBER 2024
Highly probable expected net cash flows from customers/to vendors 0 0
Revenue /
production cost
YEAR ENDED 31 DECEMBER 2023
Fair value hierarchy
VOLUME OF FOREIGN
EXCHANGE FORWARD
CONTRACTS
CASH FLOW
HEDGE RESERVE
31 DECEMBER 2024
Highly probable expected net cash flows from customers/to vendors 149 0
31 DECEMBER 2023
Highly probable expected net cash flows from customers/to vendors 129 0
The impact of hedged items on the statement of financial position is as follows:
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 25 Related parties
Note 25.1 Group information
For more information about related parties, including compensation to Group Management, see Note 32 'Related parties under the Consolidated Financial Statement'.
Note 25.2 Transactions with related parties
Transactions between Grundfos Holding A/S and the subsidiaries
2024 2023
Sale of goods and services
5,578 5,200
Cost of goods and services
1,751 1,635
Interest income
297 331
Interest expense
289 285
Dividends received
1,256 1,411
4,732 4,293
5,263 5,363
The amounts disclosed in
the table are the amounts
recognised as an expense or
income during the reporting
period. The amount of loans
represent the balances at
year-end.
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 26 Commitments and contingencies
Note 26.1 Commitments
The Company has provided security for facilities in subsidiaries. The total corporate guarantee amounts to DKK 360m (2023: DKK 407m), hereof utilised DKK 22m (2023: DKK 37m).
The Company has issued letters of intent to support subsidiaries credit facilities, company credit card limits, trade finance arrangements and foreign exchange risk due to operations in multiple currencies.
These letters of intent are contingent upon the subsidiaries’ inability to meet their financial obligations
Apart from this the Company is under no material obligations or commitments.
The Company has issued performance and payment guarantees of DKK 16m (2023: DKK 16m).
The Company has issued support letters for a number of subsidiaries.
The Danish affiliated companies participate in a Danish joint taxation arrangement with Grundfos Holding A/S serving as the administration company and are therefore jointly and severally liable for the total corporation tax and
for obligations, if any, to withhold tax on interest, royalties and dividends for the jointly taxed companies. The total net liability to the Danish tax authorities is recognised in the financial statements of Grundfos Holding A/S.
The Board of Directors of Grundfos Holding A/S has approved the issuance of the parent company financial statements on 5 February 2025. As of this date, no material events after the reporting date have occurred
that are not recognised and disclosed.
Note 26.2 Contingencies
Note 27 Events after the balance sheet date
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Amounts in DKK million
Note 28 Grundfos Holding A/S accounting policies
Grundfos Holding A/S is a private limited company domiciled in Denmark. The Annual Report for the period 1 January to 31 December 2024, comprises the Financial Statements of Grundfos Holding A/S.
C companies.
Investments in subsidiaries are measured at cost on initial recognition and subsequently at the proportionate share of the companies’ net asset value calculated in accordance with the parent company’s accounting
policies with the deduction or addition of unrealised intra-group gains/losses and with the addition or deduction of goodwill calculated according to the purchase method.
Companies with a negative net asset value are recognised at DKK 0, and any receivable amount from these companies is written down, to the extent it is deemed to be irrecoverable, by the parent company’s share
of the negative net asset value. If the negative net asset value exceeds the amount receivable, the residual amount is recognised under provisions to the extent that the parent company has a legal or constructive
obligation to cover the subsidiary’s negative balance.
The proportionate share of the profit or loss of subsidiaries after tax is recognised in the income statement after full elimination of intra-group gains/losses.
Note 28.1 Investments in subsidiaries, associates and joint ventures
PARENT COMPANY FINANCIAL STATEMENTS
Notes to the accounts of Grundfos Holding A/S
Note 28.2 Dividend
Dividend proposed for the financial year is shown as a separate item under shareholders’ equity.
Dividend is recognised as a liability at the time of adoption by the shareholders at the annual general meeting (the date of declaration).
Dividends expected to be declared in respect of the year are stated as a separate line item under equity.
Grundfos Holding A/S is jointly taxed with its Danish subsidiaries. Current tax and deferred tax is allocated between the jointly taxed companies. The jointly taxed companies are taxed under the tax prepayment scheme.
Grundfos Holding A/S has established a non-distributable reserve in equity regarding capitalised development projects. This reserve will be reversed as the development projects have effect on the income statements. The amount is
presented net of deferred tax.
Note 28.3 Corporation tax
Note 28.4 Development projects
2. Management’s Statement
and Auditor’s Report
4. Parent Company
financial statements
3. Consolidated financial statements 1. Management Review
Headquarters
8850 Bjerringbro
Denmark
+45 87 50 14 00
info@grundfos.com
Further information:
www.grundfos.com
www.poulduejensenfoundation.com
© Grundfos Holding A/S 02.2025