Harboes Bryggeri A/S
Annual Financial Report
Annual Financial Report 2022/23
Annual Report for Harboes Bryggeri A/S - 2022/23
Increasing turnover and results in line with reported outlook
-- Net turnover increased by 14% to DKK 1,621 million
-- EBITDA for 2022/23 was DKK 85 million against DKK 99 million in the
previous financial year. This corresponds to the latest reported outlook of
an EBITDA around middle of the range DKK 63-103 million. EBITDA margin was
5.3%
-- The result was affected by very challenging market conditions with sharply
rising prices on raw materials, packaging, transport, and energy. The
development affected H1 in particular, while implemented price increases
and increased business volume contributed to positiveresults in the last
two quarters of the financial year.
-- Profit before tax from continuing operations was a loss of DKK -9 million,
which corresponds to the latest reported outlook of around the middle of
the range DKK -30 - + 10 million
-- Net profit after tax was DKK -4 million
-- Cash flow from operations was DKK -59 million, which was affected by rising
revenue and tied-up inventory
Harboe's CEO Søren Malling expresses in connection with the annual report:
“It has been an extremely challenging year with soaring input prices, supply
chain bottlenecks and energy supply uncertainty. The entire organisation has
worked hard to meet the challenges and secure deliveries to our customers, with
whom we have maintained a close and positivedialogue.
In the second half of the year, we saw a positive effect from realised price
increases, and combined with increased volumes, this helped secure positive
results in the last two quarters of the year - although it was not quite enough
to cover the losses in the first half. However, we are pleased that we have
succeeded in reversing the trend, and we expect to return to delivering profits
and value to our shareholders in the coming year.”
Outlook for 2023/24
Going into 2023/24, the commercial situation looks better but still challenged.
Overall, purchase prices remain at higher levels and negotiations are ongoing
to achieve the corresponding necessary increases in sales prices with customers
and other commercial activities to mitigate these increases.
Harboe expects, that the initiatives launched in 2022/23 to consolidate the
Group's own brands through increased innovation, updated visuals and increased
marketing efforts will generate renewed growth, especially in the Danish
market.
In the German market, volumes are expected to increase due to the expansion of
private label agreements.
The export markets are expected to have a difficult year in 2023/24, and
particularly cost price increases and continued high distribution costs are
expected to put a damper on growth.
In Harboe Ingredients it is expected that a step up in sales efforts with new
products aimed at new segments will contribute to both growth and improved
earnings in the coming financial year.
Internally, focus will be on maintaining high reliability of delivery and
continuing the clear focus on optimisation and long-term efficiency
improvements.
Overall, Harboe expects a positive development in EBITDA, which is expected to
be in the region of DKK 100 - 130 million and a profit before tax of DKK 10 -
40 million.
The outlook is based on the following overall assumptions:
-- Stabilised development in both business segments (Beverages and
Ingredients)
-- Continued uncertainty about the development in prices on raw materials,
packaging, energy, and distribution
The assumptions are further described in the annual report.
For further information:
Bernhard Griese Simon
Andersson
Chairman of the Board CFO
Phone: +45 58 16 88 88 Phone: +45 58 16
88 88