2024
“We believe
in the
magic
of win win”
ANNUAL REPORT 2024
DK Company A/S, La Cours Vej 6, DK-7430 Ikast, CVR no. 24 43 11 18
Annual Report 2024 DK Company
Content
05 Growth of 10% in both turnover and EBT
06 Financial highlights of the group
08 The Blooming Concept
10 Multi-brand strategy
11 Strategy summary
12 Brands
13 Report on profit and loss
15 Risk management
20 Statement on responsibility
21 Diversity, equality and inclusion
23 Statement of income and comprehensive income
24 Balance sheet • Assets and liabilities
25 Cash flow statement
26 Statement of changes in equity
27 Notes • Basis of preparation of the consolidated
financial statement
31 Notes • EBITDA, working capital and cash flows
37 Notes • Significant accounting estimates, assumptions
and adjustments
39 Notes • Invested capital
47 Notes • Capital structure
50 Notes • Tax
53 Notes • Other notes to the consolidated
financial statements
62 Statement of income
63 Balance sheet • Assets and liabilities
64 Statement and changes in equity
65 Notes to the parent company financial statements
77 Company information
79 Managements statement
80 Independent Auditor’s Report
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Annual Report 2024 DK Company 3 / 82
ORGANIC GROWTH
One of DK Company’s
strengths is its strong geo-
graphical presence in more
than 35 countries worldwide.
DK Company’s portfolio
consists of 430 shops: fully
and partly owned, franchises,
consession and consignment.
26
11%
5,362
MIO. DKK
REVENUE
718
MIO. DKK
EBITDA
16,500
SELLING POINTS
35
COUNTRIES
430
SHOPS
Development
in revenue
MIO. DKK
NEW TO
THE FAMILY
BRANDS
DK Company has based the
business on selling to more
than 16,500 selling points.
DISTRIBUTION
BY COUNTRY
Managements review
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DK Company 4 / 82Annual Report 2024
05 Growth of 10% in both turnover and EBT
06 Financial highlights of the group
08 The Blooming Concept
10 Multi-brand strategy
11 Strategy summary
12 Brands
13 Report on profit and loss
15 Risk management
20 Statement on responsibility
21 Diversity, equality and inclusion
MANAGEMENT’S
REVIEW
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Annual Report 2024 DK Company 5 / 82
Growth of 10% in both turnover and EBT
With more than 10% growth in turnover and
on profit before tax DK Company fulfills the
expectations for 2024.
The turnover totals DKK 5.4 billion against
DKK 4.8 million in 2023. The profit before tax
(EBT) totals DKK 536 million against EUR 487
million in 2023, corresponding to a profit mar-
gin of 10% for both 2024 and 2023.
Group CEO Jens Poulsen states: “In 2024,
we have continued our investment in future
growth with a three-digit million amount in
particular IT, logistics and sales promotion
activities, which despite challenging markets
underlines DK Company’s faith in the future.”
Internally the year has been characterized by
significant growth, integration of new IT and
logistics systems as well as delayed freight
deliveries from the Far East and freight rates.
Internationally, the geopolitical turmoil with a
Europe under pressure as well as the ongoing
war in Ukraine and a volatile US dollar have
had and will continue to have a major impact
on DK Company’s business.
EXPECTATIONS FOR 2025
The new presidentcy in the USA means that
the visibility for 2025 has lowered significantly.
The rules of the game have changed, and we
are looking into a scenario with customs barri-
ers as well as an even more vlolatile US dollar,
which will cause increased challenges for DK
Company as we source primarily in US dollars.
Also, the freight conditions are unpredictable
with the risk of delayed deliveries and rising
rates
Jens Poulsen
Founder and majority shareholder
DK Company Group
Group CEO
Jens Obel Jørgensen
Shareholder DK Company Group
CEO Ikast and Copenhagen
Søren Lauritsen
Shareholder DK Company Group
Group CFO
Kasper Philipsen
Shareholder DK Company Vejle A/S
CEO Vejle
Jens Poulsen states: “We are still in a tense
geopolitical situation, which may affect con-
sumers’ desire to buy. DK Company delivers
goods at a reasonable price level with value
for money, and we have historically managed
well during crises, when consumers’ available
income is under pressure.”
DK Company has an ambitious goal for 2025
to repeat the growth achieved in 2024 with a
10% growth in both turnover and profit before
tax.
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Annual Report 2024 DK Company 6 / 82
Financial highlights of the group
Amounts in DKK thousands
Revenue (DKK million)
Operating profit (DKK million)
Total cash flow (DKK million)
Return on equity (%)
2024 2023 2022 2021 2020
Revenue 5,361,911 4,828,458 4,646,260 3,911,731 3,254,339
Expenses -4,644,108 -4,153,491 -3,837,973 -3,132,575 -2,753,003
Other operating income 107 2,197 6,522 0 1,150
Other operating expenses -282 -2,570 -728 -271 -4,079
Profit before depreciation, amortisation and financial income and expenses 717,628 674,594 814,081 778,885 498,407
Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment -200,426 -168,602 -137,440 -150,232 -165,648
Operating profit before special items 517,202 505,992 676,641 628,653 332,759
Special items 0 0 0 0 14,656
Operating profit 517,202 505,992 676,641 628,653 347,415
Financial income and expenses, net amounts 18,473 -19,206 -15,657 -16,882 -12,604
Profit before tax 535,675 486,786 660,984 611,771 334,811
Tax on profit for the year -122,937 -115,462 -146,504 -137,791 -50,413
Profit for the year incl. minority interests 412,738 371,324 514,480 473,980 284,398
Profit/Loss attributable to shareholders of the parent 394,192 349,063 473,067 430,146 262,148
Non-current assets 889,717 968,671 672,304 538,525 604,379
Current assets 2,140,694 1,908,986 1,854,894 1,495,169 1,279,217
Total assets 3,030,411 2,877,657 2,527,198 2,033,694 1,883,596
Equity of shareholders of the parent 1,265,392 1,050,426 883,092 925,068 718,991
Minority interests 90,259 74,472 68,601 76,620 53,121
Total equity 1,355,651 1,124,898 951,693 1,001,688 772,112
Non-current liabilities 352,257 422,525 230,846 173,357 261,438
Current liabilities 1,322,503 1,330,234 1,344,659 858,649 850,046
Total equity and liabilities 3,030,411 2,877,657 2,527,198 2,033,694 1,883,596
Cash flows from operating activities 576,059 439,111 473,331 691,841 656,197
Cash flows for investing activities -52,234 -97,117 -66,127 -53,149 -37,381
Cash flows from financing activities -352,871 -350,281 -630,807 -457,441 -426,369
Total cash flows 170,954 -8,287 -223,603 181,251 192,447
Investments in property, plant and equipment -130,175 -501,271 -318,139 -101,408 -75,175
Depreciation on property, plant and equipment 197,426 168,453 136,287 145,149 160,943
Average number of employees 1,690 1,654 1,572 1,468 1,523
Financial ratios
Revenue growth (%) 11.0 3.9 18.8 20.2 -3.9
Gross margin (%) 54.9 53.0 55.4 57.3 54.9
Profit margin (%) 9.6 10.5 14.6 16.1 10.7
Solvency ratio (%) 41.8 36.5 34.9 45.5 38.2
Return on equity (%)
1)
34.0 36.1 52.3 52.3 41.3
Dividend per share, DKK 33.3 31.2 78.1 46.7 8.1
1) Ratios are calculated on the profit for the year distributed to the parent’s shareholders.
Unless otherwise defined above, the financial highlights have been defined and calculated in accordance with the recommendations issued by the Danish Society of Financial Analysts.
Reference is made to the definition of financial ratios page at the end of the Annual Report.
MANAGEMENT’S
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Annual Report 2024 DK Company 7 / 82
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“We are still in a tense geopolitical situation, which may affect consumers’
desire to buy. DK Company delivers goods at a reasonable price level with
value for money, and historically we managed well during crises, when
consumers’ available income is under pressure”
JENS POULSEN, GROUP CEO
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Annual Report 2024 DK Company 8 / 82
The Blooming Concept
DK Company’s strategy is to be among the
leading multi-brand suppliers in Europe in
the mid-market. This strategy has proven
strong, as the diversification into 26 brands has
ensured increased earnings and revenue over
the past 23 years. Moreover, DK Company’s
collections are represented in 35 markets,
which reduces dependence on individual
markets, thus providing the DK Company
Group with considerable risk diversification,
which helps to ensure continuous growth.
DK Company’s sales channels are divided into
wholesale, retail and e-commerce. The main
activities of wholesale are the design, market-
ing, sale and distribution of brands to both
women and men. The retail segment consists
of 150 shops, which are wholly or partly owned
by DK Company or operated on a franchise
basis.
A number of brands have a total of 280 con-
cession and consignment agreements with a
number of European department stores. All
the Group’s brands are sold on the Group’s
e-commerce platforms. In addition, most
brands are sold through partners’ web shops.
The Group has its own designers and buyers in
Denmark, and the collections are mainly pro-
duced in China, India, Bangladesh and Turkey.
In China and Bangladesh, DK Company has
its own purchasing departments. Most of the
collections are delivered to warehouses in
Denmark, from where they are distributed
to customers. A minor part of the collections
is delivered directly to customers. Fulfilment
centres in Poland and Germany handles
e-commerce distribution.
DK Company sees more opportunities for
growth in all business areas. Being present in
35 markets means there is untapped poten-
tial for additional sales in the markets already
established.
Having 26 well-established brands provides
the foundation for implementation of the stra-
tegic ambition of being able to offer different
retail concepts.
The individual concepts, primarily designed for
women and based on the Group’s most dis-
tinctive brands, are: b.young, Fransa, Ichi and
!Solid. The retail concepts Companys and De-
signers Market embrace most of the Group’s
remaining women’s brands and constitute the
Group’s primary multi-brand concepts.
DK Company offers its partners several
exciting single or multi-brand concepts and
a variety of brands which may be adapted to
the needs and customer base of the individual
shop.
“DK Company is a fashion group with the
will and courage to stand out. Believing in
soft values and being willing to follow
the Blooming Concept “
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Annual Report 2024 DK Company 9 / 82
The partner concept is defined as a close
collaboration with partners each selling several
of the Group’s brands.
BUSINESS CONCEPT AND MISSION
DK Company is a fashion group with the will
and courage to stand out. Believing in soft val-
ues and being willing to follow the Blooming
Concept are the hallmarks of our corporate
culture. DK Company’s dedicated staff know
that growth and a healthy economy depend
on the Group’s values and the active day-to-
day efforts of the staff.
DK Company’s multi-brand strategy is
primarily based on brands providing ‘value
for money’. However, brands such as InWear,
Part Two, Karen by Simonsen and Gestuz
put DK Company in the high-end part of the
mid-market, where focus is on ‘luxury for less’.
In both cases, the consumers should feel they
get more than they spend.
DK Company aims to build long-term ‘win-
win’ relationships between the Company,
its employees, customers and suppliers – it is
from here, the strategic concept of ‘4 x win’
has emerged.
The relationships are based on trust, prox-
imity and mutual respect for the entire value
chain.
THE BLOOMING CONCEPT
The strategy is based on ‘The Blooming
Concept’ visualised by a flower. The flower
is a living, organic symbol of growth. It has
healthy roots and a stem, which is strong
enough to support and nourish the colourful
flowers.
The retail flower is raised slightly above the
other three flowers of the Group’s brands. This
is an illustration of how all brands must be able
to think and act as retailers to contribute to the
development of the overall business.
The flower requires care, attention and con-
stant development to maintain its unique
attraction, and to stay strong and straight,
which will enable us to make the most any
advantages and stand up to any adversity. The
stem is a symbol of corporate functions such
as business solutions, IT, HR, logistics, ware-
houses and the finance department. The root
system is the foundation of the flower, which
is made up of DK Company’s suppliers and
purchasing departments.
This foundation constitutes the competitive
nourishment for the petals, illustrating the
individual brands which must flourish for the
benefit of shops and customers worldwide.
Customers are illustrated by bees buzzing
around the flowers. The bees should be
attracted to the many different brands of the
flower, which are also meant to make the
Group an attractive partner.
The purpose of the Blooming Concept is for
the entire value chain from root system to
bees to experience ‘the magic of win-win’.
The primary resources in this context are peo-
ple, networks and relationships. Without these,
the flower loses both energy and attraction,
and thus risks losing earnings and growth.
People, networks and long-term relationships
are therefore crucial to the Group.
STRENGTH OF THE
BLOOMING CONCEPT
Several years of experience have provided
DK Company with considerable expertise in
the integration and consolidation of acquisi-
tions. This has been made possible by the root
system and the corporate functions of the
flower, which have provided the foundation of
and been adaptable to the increased activity.
Consequently, the foundation has strength-
ened existing and new petals alike by provid-
ing greater bargaining power over suppliers in
addition to the cost-effective systems which
help create success for the individual brands.
While integrating and consolidating its
acquisitions, DK Company has managed to
adapt the overall portfolio of brands. When,
for various reasons, a brand cannot be further
developed or it no longer matches the Group
strategically, it will be discontinued. This
provides room for further attention to existing
brands or introducing a new brand which can
be easily integrated into the Group.
By means of its support functions and root
system, the Group is able to acquire and
integrate complementary enterprises and/or
brands which benefit from the stability of the
stem, thus en-abling the individual brands to
maintain focus on developing products for
the sales channels.
Likewise, the work on harmonising the
Group’s IT platform, finance function and
purchasing procedures has contributed to
establishing a plug-and-play set-up, which
makes future integrations more effective
both in terms of cost and time.
Through the development and acquisition of
retail concepts, the Group has strengthened
the sales channels of the individual brands,
and in combination with the partnership
agreements, the wide range of brands allows
customers to do business with a significant
partner, thus creating a win-win situation.
By applying the knowledge brought to the
individual brands by retail, wholesale is drawn
closer to the market development, which
enables the supply of the right products at the
right time.
The establishment of the Group’s own e-com-
merce platform, which may be used by all the
Group’s brands, has strengthened this particu-
lar sales channel in recent years.
The collaboration with external e-commerce
partners has been increasing in the past cou-
ple of years.
This experience forms the basis of DK Com-
pany’s business concept – that is the ability to
integrate and develop brands in a structured
and cost-effective way.
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Annual Report 2024 DK Company 10 / 82
Multi-brand strategy
DK Company’s multi-brand strategy is based on a portfolio of 26
brands with a broad geographical presence in 35 markets.
The Blooming Concept ensures that all brands retain their unique
identity and design DNA. Synergies are created by using a number
of corporate functions. The realised synergies have made the Group
more resilient with respect to generating positive results.
STRONG GEOGRAPHICAL PRESENCE
One of DK Company’s strengths is its strong
geographical presence. Our collections are
sold to 35 countries worldwide. The strategic
acquisitions of reputable brands in recent
years, including InWear, PartTwo, Matinique,
Saint Tropez and !Solid, have strengthened
DK Company’s position especially in Norway
and Germany, which are also the Group’s larg-
est growth markets.
In addition, DK Company has realised rather
significant revenues in the other European
markets, where a major part of the revenue
related to, for example, Blend was generated
in Southern Europe. This contributes to a
geographical revenue diversification, which
makes DK Company less vulnerable to fluc-
tuations in the individual markets.
RETAIL
Historically speaking, most of the Group’s
shops have been run in collaboration with
a third party, either on a franchise basis or
through shared ownership with DK Company.
DK Company’s portfolio consists of 150 shops,
the majority of which is located in Norway,
primarily in large shopping centres. In Norway,
b.young is the prevailing concept. A number
of brands have entered into a total of 280 con-
cession and consignment agreements with a
number of European department stores.
When cooperating with a third party on the
operation of a shop, DK Company uses one of
two types of partnership agreements defined
as follows:
• Partly owned shops, where DK Compa-
ny participates by holding a controlling
share and running the shop in coopera-
tion with a local retailer.
• The franchise model, where partners run
shops in the local area through presence
and local knowledge.
The day-to-day business is supported by DK
Company’s retail organisation, for example via
initiatives such as a customer club, advertising
campaigns as well as accounting and other
finance services.
PARTNERSHIP AGREEMENTS
Historically, DK Company has based its busi-
ness on wholesale and is selling its goods to
more than 16,500 selling points primarily in
Europe. Most of the Group’s revenue originates
from such business.
In order to create maximum synergy in the
collaboration with external distributors, DK
Company has entered into partnership agree-
ments with the Group’s distributors. The pur-
pose of such agreements is to ensure a close
collaboration and create win-win situations
between DK Company and its distributors.
The agreements support the collaboration by
affiliating several brands through a multi-
brand agreement.
It is DK Company’s ambition to become the
preferred partner in the mid- segment. Our
goal is therefore to expand the number of
multi-brand agreements with the Group’s
wholesale customers to create unique op-
portunities for both parties.
Strategy summary
STRATEGY ADOPTION
ACQUISITION OF ENTERPRISES
EXPANSION VIA ECOMMERCE
PREFERRED PARTNER IN THE MID-SEGMENT
INCREASED COOPERATION
DEVELOPMENT OF MARKETS
Acquisition of enterprises, brands and retail chains. Acquisition of enterprises, brands and retail
chains is part of DK Company’s DNA. DK Company therefore always pays attention to any oppor-
tunities arising in the market. Based on the experience gained through recent years’ acquisitions,
DK Company has created a set-up which facilitates an efficient and fast process for acquisitions.
The Group intends to continue creating growth through acquisition of complementary enter-
prises, brands and major retail chains.
Through the DK Company Online Group, DK Company has an e-commerce platform which
comprises all the brands of the DK Company Group. As a consequence, the Group has the
option of expanding its e-commerce activities in the future. In addition, the ambition is to
expand the collaboration with leading e-commerce partners both through partnerships.
It is DK Company’s ambition to become the preferred partner in the mid-segment. Our goal is
therefore to expand the number of multi-brand agreements with the Group’s wholesale custom-
ers to create unique opportunities for both parties.
Increased cooperation with the Group’s wholesale customers.
Development of existing markets and establishment in new markets. DK Company will contin-
ue to generate growth through development of the individual brands in the Company’s brand
portfolio. In recent years, DK Company has established sales activities in several new markets. DK
Company primarily intends to develop its sales activities in the existing markets, but also to enter
new markets when the opportunity arises. DK Company has launched several brands on the
North American market, thus commencing sales activities in this market.
DEVELOPMENT OF RETAIL CONCEPTS
The Group intends to develop retail concepts and establish more shops in
strategically important markets. Strengthening and expanding of the
Group’s retail concepts.
DK Company 11 / 82Annual Report 2024
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Annual Report 2024 DK Company 12 / 82
According to its strategy, the Group will con-
centrate on brands offering value for money
and luxury for less, as well as offer retail con-
cepts matching these criteria.
Each brand has its own DNA, identity, unique
characteristics and functions as a separate
entity. The individual brands are continuously
developed, in part to avoid overlap resulting
in internal competition, and in part to create
brands and collections which complement
and support each other. This increases the
opportunity for complementary sales.
The Group’s brands are; Atelier Rêve, BALL,
Blend, b.young, Bon’A Parte, Casual Friday,
Cream, Culture, Fransa, FQ1924, Gestuz, Ichi,
InWear, Kaffe, Kaffe Curve, Karen by Si-
monsen, Matinique, My Essential Wardrobe,
Part Two, Pulz Jeans, Soaked In Luxury, Saint
Tropez, !Solid, Sorbet, The JoggConcept and
Wood Wood.
The Group’s retail concepts are: !Solid,
b-young, Fransa, Ichi and the multi-brand
concepts COMPANYS and Designers Market.
All brands and retail concepts are described
in detail at: www.dkcompany.com under
“Brands” while the retail concepts are found
under “Retail”.
Brands
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Report on prot and loss
GROSS PROFIT
Gross profit was DKK 2.9 billion (DKK
2.6 billion). The profit margin landed 1.6
percentage points higher than last year,
which is primarily due to a more stable
currency market compared to 2023.
INVESTMENTS
In 2024, DK Company invested DKK 48
million (DKK 93 million) in non-current
assets.
COSTS
Other external expenses constituted DKK
1,362 million (DKK 1,014 million). The in-
crease is due to a higher level of activity of
the Group and office facilities, showrooms
and preparation for the increased report-
ing requirements placed on our business
within the ESG area.
Depreciation, amortisation and impair-
ment losses for the year were DKK 200
million (DKK 168 million).
REVENUE
The Group’s revenue was DKK 5.4 billion (DKK 4.8 billion), which is an increase of DKK 533
million in 2024. The increase was generated from organic growth.
Profit before tax was DKK 536 million (DKK 487 million), corresponding to a profit margin of
10% (10.5%).
PROFIT OF THE YEAR
Profit before tax was DKK 536 million
(DKK 487 million).
TAX
In the financial year, tax of DKK 123 million
(DKK 115 million) was recognised in the
income statement.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses represent
a net income of DKK 18 million (a net cost
of DKK 19 million).
5.4
BILLION DKK
2024
4.8
BILLION DKK
2023
10%
PROFIT MARGIN
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TOTAL EQUITY
The Group’s total equity, exclusive of
minority interests, is determined at DKK
1,265 million (DKK 1,050 million), after dis-
tributed dividens of DKK 200 million. The
solvency ratio is 41.8% (36.5%).
PARENT
In 2024, the company realised revenue of DKK
811 million (DKK 675 million). Profit before tax was
DKK 421 million (DKK 369 million). The results are
considered satisfactory.
PROPOSAL FOR DISTRIBUTION OF PROFIT
CASH FLOWS
In 2024, the Group increased its total li-
quidity by DKK 171 million after a dividend
off DKK 204 million paid out in 2024.
The Group generated cash flows from
operating activities of DKK 576 million
in 2024 compared to DKK 439 million in
2023. The positiv cash flow development
in 2024 is due to a positiv increase in EBT
and a lower payable tax for 2024 com-
pared to 2023.
Cash flows from investing activities
constituted an expense of DKK 52 million
compared to an expense of DKK 97 mil-
lion in 2023.
Cash flows from financing activities were
DKK 352 million compared to DKK 350
million in 2023. In 2024, the Group distrib-
uted dividends of DKK 204 million (DKK
204 million).
The total cash flow changes for the year
are positiv with DKK 171 million compared
to a negative DKK 8 million for 2023.
SUBSEQUENT EVENTS
No subsequent events have occured
which have an impact on the Financial
Statement.
PENDING LAWSUITS
The Group has challenged a decision by
the Norwegian Customs authorities in a
case concerning the customs clearance of
goods in Norway.
The Group has recognised the preliminary
decision of the authorities but expects to
win the appeal.
The Group has no other pending cases of
significance, except ongoing collection
proceedings.
DKK MILLION 2024 2023
Reserve for net revaluation
according to the equity
method 164 41
Retained earnings 27 108
Proposed dividend for
he year 200 200
Total 391 349
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Annual Report 2024 DK Company 15 / 82
Risk management
The following contains a description of general risk factors related to conduct-
ing business, risks associated with the fashion industry and special risks of the
DK Company Group. The risk factors and uncertainties mentioned include
those currently assessed by Management to be the most significant risks.
Effective tools have been implemented to manage and address the various
risks. The risk factors are not listed in order of priority.
CORE RISKS
DK Company has defined the following core
risks: fashion risk, risk of loss of brand value, risk
of loss of intellectual property rights, supplier
risk, risks related to logistics and inventories,
insurance risk, debtor risk and employee risk.
These risk factors are defined as inherent in
the Group’s operations.
DK Company manages the stated risks by
means of tools developed based on the
Group’s experience and competencies.
FASHION RISK
In the fashion industry, it is a basic condition
that a single collection may fail from a fashion
point of view. DK Company diversifies such risk
by annually designing 6 to 12 collections for
26 different brands. In addition, the individual
brands appeal to different target groups, both
in terms of gender, style, price and age. More-
over, DK Company’s collections are currently
sold in 35 markets.
The Group’s brands also vary in terms of
fashionability. In general, DK Company’s collec-
tions are developed on a commercial and
market-oriented basis, as it is crucial for the
Group’s profitability that the individual brands
can be produced in quantities sufficient to
provide economies of scale.
Experience shows that DK Company has been
good at responding in time to changes in
consumer preferences as a result of shifting
fashion trends. DK Company’s success is close-
ly related to its ability to respond quickly and
be flexible about changes in the market.
RISK OF LOSS OF BRAND VALUE
Another basic condition of the fashion industry
is the risk of losing brand value, that consum-
ers lose interest in the brand and that the
brand loses status. DK Company’s brands
have all been around for a number of years,
and over time, the individual brands have
developed a rather significant intangible value.
As the collections are continually developed,
the loss of brand value is a constant risk if such
development does not follow market trends.
DK Company has therefore put systems in
place to ensure that the Group will respond
promptly to market signals indicating that
its brand development is not on track. As an
example, the sales department is actively
involved in the development of collections.
Analyses of sales in own shops are also used as
input for design development.
Negative media coverage or bad publicity
among core consumers may result in a
significant loss of brand value. Therefore, DK
Company has prepared corporate responsi-
bility policies. These policies reduce the risk of
loss of brand value.
The policies are described in detail in the Sus-
tainability section of the webside. It is crucial
to the brand value that consumers maintain
the belief that our products provide value for
money and luxury for less.
DK Company gives priority to quality control
areas, as the Group depends on its continuous
delivery of high-quality products.
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Annual Report 2024 DK Company 16 / 82
RISK OF LOSS OF INTELLECTUAL
PROPERTY RIGHTS
For historical reasons, the DK Company A/S
Group does not own all the trademark rights to
the individual brands. Therefore, DK Company
has defined a number of procedures which en-
sure the continued right to use the trademarks.
DK Company A/S has entered into non-termi-
nable agreements on the right of use of the
following trademarks and figurative marks: Kaffe,
Cream and Karen by Simonsen. These trade-
marks belong to Jens Poulsen Holding ApS,
which is controlled 100% by CEO Jens Poulsen.
Jens Poulsen Holding ApS makes the trademark
rights available to the Company for a small fee
on the condition that the Company incurs all
costs related to maintaining and protecting the
registration of the trademarks and figurative
marks.
The right of use agreements between DK
Company A/S and Jens Poulsen Holding ApS are
independent from Jens Poulsen’s affiliation
with the Company. Should a change of control
take place in Jens Poulsen Holding ApS as a result
of Jens Poulsen’s transfer of shares in this com-
pany, whereby Jens Poulsen will hold less than
51% of the shares in Jens Poulsen Holding ApS,
DK Company A/S has an option to acquire the
registered trademarks at a price assessed by an
independent valuer.
The DK Company A/S Group owns the trade-
mark rights to Atelier Rêve, BALL, Blend, Bon’A
Parte, b.young, Casual Friday, Culture, Double A,
Gestuz, Fransa, FQ1924, ICHI, InWear, Kaffe Curve,
Matinique, My Essential Wardrobe, Part Two,
Pulz Jeans, Saint Tropez, Soaked in Luxury, Sol-
id, Sorbet, The JoggConcept and Wood Wood.
DK Company has an agreement with a
trademark agent regarding the monitoring
of any infringement of the brands sold on the
market.
SUPPLIER RISK
DK Company’s production is outsourced to
external suppliers, ensuring flexibility and
risk diversification. DK Company is extremely
experienced in international sourcing.
By using suppliers in different countries, the
risk of failing supplies is further diversified, as
the Group is not dependent on the conditions
and developments in a single production
country. It is the Group’s policy that a single
supplier must account for a maximum of 30%
of the Group’s total production.
DK Company ensures proximity to the fac-
tories by means of the Group’s purchasing
departments in China and Bangladesh. The
employees of the local purchasing depart-
ments contribute with extensive experience,
knowledge and competencies, which means
that the Group achieves the most optimal
combination of price, quality and delivery
reliability. This mitigates DK Company’s opera-
tional risks.
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Annual Report 2024 DK Company 17 / 82
RISKS RELATED TO LOGISTICS
AND INVENTORIES
A significant part of DK Company’s goods are
ordered in advance by the Group’s distributors,
which minimises risks related to inventories.
However, when the industry is under pressure,
orders may be cancelled.
Fashion clothes have limited useful life, and
reliability of delivery is therefore a core area for
DK Company. According to the agreements,
the collections must be delivered to the shops
within certain deadlines. If the products are
not delivered on time, there is a risk that they
will be returned, resulting in an increased
amount of excess goods and write-downs. DK
Company has logistical procedures in place,
limiting the risk of capital being tied up in
inventory of excess goods.
The collections are delivered either on hangers
or in flat packages. Most of the production
from Asia is transported by sea freight, and a
minor part is shipped by air freight and rail to
Europe. Products from European countries
are transported by truck. The geographical
distribution and the flexibility of the option of
transferring the cargo from ship to air freight
and rail reduce risks related to logistics.
DK Company has modern warehouse and lo-
gistics facilities suitable for both flat packages
and ready-made clothing on hangers in the
Danish cities Ikast, Kolding and Vejle.
In terms of managing revenue related to
e-commerce, the Group moreover has agree-
ments with third parties on warehouse and
logistics facilities in Germany and Poland.
Most of the Group’s goods are sold con-
tinuously during the season. At the end of
a season, the goods are transferred to the
Group’s own physical outlet shops in Denmark,
Sweden, Norway and Switzerland or to DK
Company’s online outlet. Additional excess
goods are sold through brokers in markets
where DK Company is not represented.
In their entirety, DK Company’s planning tools,
warehouse facilities, know-how and experi-
ence significantly reduce the risks related to
logistics and inventories.
INSURANCE RISK
Based on the Group’s increased geographical
distribution and, hence, its growing need to
take out local insurance in areas where the
Group’s companies are located, DK Company
has entered into an agreement with an inter-
national insurance partner.
In cooperation with the insurance partner, the
Executive Board conducts an annual review
and assessment of risks and cover. In the
Executive Board’s assessment, the insurance
taken out is estimated to provide reasonable
insurance cover to the Group’s assets and
operational base in case of damage.
DEBTOR RISK
DK Company has entered into an insurance
contract for credit insurance of the Group’s
customers. The contract implies that approx-
imately 60-70% of the Group’s total net sales
are made to customers covered by credit
insurance. The sum insured is 90% of the
Group’s receivables from insured customers.
The remaining part of the Group’s revenue
is distributed on customers from whom the
Group has historically received payments on
time, or where prepayment has been agreed
for the orders placed. This mitigates the risk of
losses.
EMPLOYEE RISK
When key employees leave the Group or
become unable to discharge their duties, DK
Company is exposed to risk, since the success
of the Group, among other things, depends
on the efforts, industry knowledge and qualifi-
cations of the employees.
The Group is subject to risk if DK Company
is unable to keep recruiting, developing and
retaining the right employees.
DK Company embraces the value of the
whole person and work-life balance. Human
resources are therefore a priority area for DK
Company’s management. The employees
constitute essential knowledge resources to
the Group. The HR department has developed
policies and guidelines for the development
and supplementary training of the staff.
DK Company invests time and resources in
the personal and professional development
alike of employees, for example by offering
coaching.
The above holistic initiatives minimise the risk
of losing employees, including
key personnel.
NON-CORE RISKS LITIGATION
AND ARBITRATION
DK Company may become a party to litigation
and arbitration proceedings. Although DK
Company follows a common transfer pricing
practice, it is not guaranteed that tax author-
ities around the world will adopt the same
interpretations when considering the Group’s
pricing in relation to intercompany trade.
Should DK Company’s intercompany transfer
pricing policies be questioned, it may have a
significantly negative impact on the operating
profit.
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Annual Report 2024 DK Company 18 / 82
FINANCIAL RISKS
The financial risks of the Group are defined as
currency, interest rate and liquidity risks.
CURRENCY RISK
The Group has prepared a corporate currency
policy to ensure that currency risks are
minimised. All material transaction risks are
hedged. DK Company’s currency risks are pri-
marily hedged by forward exchange contracts.
Exchange rate and interest rate fluctuations
may have a negative impact on the results.
DK Company’s financial statements are
presented in Danish kroner (DKK), mean-
while, a significant portion of the Group’s
income and expenses are in other currencies,
including NOK, SEK, GBP, CHF, EUR, CAD and
USD, which means that DK Company may
be exposed to adverse fluctuations in foreign
exchange rates.
Exchange rate fluctuations affect the trans-
lated value of the operating results generated
outside Denmark. Fluctuations may also affect
the translation of the value of assets and liabili-
ties in foreign currencies.
DK Company buys many of its products from
suppliers whose products are priced in curren-
cies other than DKK, especially USD and EUR.
In addition, DK Company sells many products
in currencies other than DKK, especially NOK,
SEK, GBP, CHF, CAD and EUR. Unfavourable
exchange rate fluctuations may therefore
result in lower earnings.
INTEREST RATE RISK
DK Company’s interest rate risks are related
to the Group’s interest-bearing assets and
liabilities.
The Group’s interest rate risks are managed
by obtaining floating rate debt and financial
instruments adapted to the interest rate risk of
the underlying investment.
LIQUIDITY RISK
The Group organises its cash resources and
capital structure to safeguard planned invest-
ments and ensure that the Group may con-
tinue as a going concern. Reference is made
to note 26 to the Consolidated Financial State-
ments for further information on the Group’s
financial risks on the balance sheet date.
POLITICAL RISKS
DK Company may be affected by new trade
restrictions or changed customs tariffs and
quotas.
There is a risk that such changes may increase
DK Company’s expenses, which in turn may
have an adverse effect on future profit from
operating activities and the Group’s financial
position.
Management is not in a position to anticipate
whether any of DK Company’s production
countries will become subject to change, and
therefore, it is not possible to assess the specif-
ic impact of any changes.
DK Company conducts business in several
jurisdictions worldwide. Local tax rules and
interpretations thereof are changed on an
ongoing basis, and such changes may be
implemented retroactively. A risk exists that
changes to tax rules or the interpretation of
those rules, in one or more jurisdictions, may
result in an increased effective tax rate of the
Group or otherwise affect the Group’s profit
from operating activities.
IT RISK
DK Company has developed reliable IT sys-
tems, which ensure reliable performance of
day-to-day operations, including strengthen-
ing of the delivery reliability and an efficient
supply chain. Work is ongoing to cover IT risks,
including virus attacks, system crashes, etc.
Today, DK Company has a corporate IT
platform. The platform provides overview,
focus and effectivity while simplifying the
day-to-day tasks. In addition, the platform
ensures consistency when benchmarking
the 26 brands.
MANAGEMENT’S
REVIEW
Annual Report 2024 DK Company 19 / 82
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JENS POULSEN, GROUP CEO
“When I look back, I am proud that during the last
four years DK Company has managed to grow
the turnover by more than DKK 2 billion, mainly
driven by organic growth”
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Annual Report 2024 DK Company 20 / 82
Statement on responsibility
The statement regarding corporate social
responsibility and data ethics is included in DK
Company’s Responsibility Report, which is a
summary and provides insight into how the
DK Company Group works with responsibility.
The journey to become more responsible is an
ongoing process during which we continuous-
ly learn from experience and find new ways
to make an impact and improve our processes.
The responsibility report makes it possible to
dive into our work on the UN’s global goals.
The statement contains excerpts from our pol-
icies on corporate social responsibility, which
relate to human rights, social issues, employee
relations, environment, climate, data ethics,
and anti-corruption.
The report can be downloaded from the
company’s website.
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Annual Report 2024 DK Company 21 / 82
Annual Report 2024 DK Company 21 / 82
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DK Company 22 / 82Annual Report 2024
Consolidated nancial statements
23 Statement of income and comprehensive income
24 Balance sheet • Assets and liabilities
25 Cash flow statement
26 Statement of changes in equity
27 Notes • Basis of preparation of the consolidated
financial statement
31 Notes • EBITDA, working capital and cash flows
37 Notes • Significant accounting estimates, assumptions and adjustments
39 Notes • Invested capital
47 Notes • Capital structure
50 Notes • Tax
53 Notes • Other notes to the consolidated
financial statements
DK Company 23 / 82Annual Report 2024
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Amounts in DKK thousands
Statement of income and comprehensive income
1 January - 31 December
Note Income statement 2024 2023
1 Revenue 5,361,911 4,828,458
Cost of sales -2,419,692 -2,255,386
Gross profit 2,942,219 2,573,072
Other external expenses
-1,362,376 -1,014,003
2 Staff costs -862,040 -884,102
3 Other operating income 107 2,197
4 Other operating expenses -282 -2,570
Profit before depreciation, amortisation and financial income and expenses 717,628 674,594
5 Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment -200,426 -168,602
Operating profit 517,202 505,992
15 Financial income 84,677 38,646
16 Financial expenses -66,204 -57,852
Financial income and expenses, net amounts 18,473 -19,206
Profit before tax 535,675 486,786
20 Tax on profit for the year -122,937 -115,462
Profit for the year 412,738 371,324
Profit is attributable to:
Shareholders of the parent 394,192 349,063
Minority interests 18,546 22,261
Note Statement of comprehensive income 2024 2023
Profit of the year 412,738 371,324
Items that may be reclassified to the income statement:
Exchange adjustments from translation of foreign entities -5,792 -3,383
Fair value adjustments of hedging instruments:
Value adjustment for the year -275,020 -118,265
Any value adjustments reclassified to the income statement 312,926 130,333
Tax on other comprehensive income -8,339 -2,655
Other comprehensive income 23,775 6,030
Total comprehensive income 436,513 377,354
Profit is attributable to:
Shareholders of the parent 416,699 354,313
Minority interests 19,814 23,041
DK Company 24 / 82Annual Report 2024
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Total assets (DKK million) Equity (DKK million)
Amounts in DKK thousands
Balance sheet • Assets and liabilities
at 31 December
Note
Assets
2024 2023
Non-current assets
11 Intangible assets 207,549 201,051
12 Property, plant and equipment 180,974 178,044
13 Leased assets 468,694 559,008
Other receivables 22,590 25,043
27 Receivables from group enterprises 980 980
21
Deferred tax assets 8,930 4,545
Non-current assets 889,717 968,671
Current assets
6 Inventories 1,212,225 1,047,806
7 Trade receivables 299,081 505,321
17 Other contract assets 23,187 22,368
Corporation tax receivable 25,518 8,747
8 Other receivables 168,498 87,187
Prepaid expenses 25,202 21,528
Cash 386,983 216,029
Current assets 2,140,694 1,908,986
Total assets 3,030,411 2,877,657
Note
Equity and liabilities
2024 2023
18 Equity
Share capital 60,000 60,000
Foreign currency translation reserves -31,462 -26,225
Hedging reserves 24,305 -3,354
Retained earnings 1,012,549 820,005
Proposed dividend 200,000 200,000
Equity of shareholders of the parent 1,265,392 1,050,426
Non-controlling interests 90,259 74,472
Equity 1,355,651 1,124,898
Liabilities
Non-current liabilities
21 Deferred tax liabilities 22,293 15,714
13 Lease liabilities 329,964 406,811
Non-current liabilities
Current liabilities
13 Lease liabilities 142,432 148,334
Prepayments received from customers 940 1,149
17 Other contract liabilities 61,113 57,901
Trade payables 680,239 537,931
Corporation tax 56,753 34,343
Payables to group enterprises 99,945 249,259
9
Other payables 281,081 301,317
Current liabilities 1,322,503 1,330,234
Liabilities 1,674,760 1,752,759
Total equity and liabilities 3,030,411 2,877,657
DK Company 25 / 82Annual Report 2024
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Cash ow statement
1 January - 31 December
Amounts in DKK thousands
Note 2024 2023
Profit before tax 535,675 486,786
22 Adjustments and non-cash transactions 207,405 179,066
10 Change in working capital -32,777 -3,651
Cash flows from operating activities before financial income and expenses 710,303 662,201
Interest income received 46,395 34,993
Interest expenses paid -58,303 -44,739
Cash flows from operating activities before tax 698,395 652,455
20
Corporation tax reimbursed/paid -122,336 -213,344
Cash flows from operating activities 576,059 439,111
Acquisition of intangible assets -9,500 -3,000
Acquisition of property, plant and equipment -48,075 -93,022
Disposal of property, plant and equipment 2,832 3,248
Acquisition of financial assets -1,845 -5,112
Sale of financial assets 4,354 769
Cash flow for investing activities -52,234 -97,117
Repayment of lease liabilities -148,595 -146,211
Dividend paid to minority interests -4,276 -17,170
Dividend paid to shareholders of the parent -200,000 -186,900
Cach flows from financing activities -352,871 -350,281
Cach flow for the year 170,954 -8,287
Cash and cash equivalents, beginning of year 216,029 224,316
Cash and cash equavalents, end of year 386,983 216,029
Cash and cash equivalents include:
Cash 386,983 216,029
The cash flow statement cannot be immediately derived from the published financial statements.
DK Company 26 / 82Annual Report 2024
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Amounts in DKK thousands
Statement of changes in equity
Share
capital
Foreign
currency
translation
reserves
Hedging
reserves
Retained
earnings
Proposed
dividend
Equity of
sharehold-
ers of the
parent
Non-con-
trolling
interests
Total
equity
Equity at 1 January 2024
Profit for the year 0 0 0 194,192 200,000 394,192 18,546 412,738
Exchange adjustments from translation of foreign entities 0 -5,237 0 85 0 -5,152 -640 -5,792
Fair value adjustments of hedging instruments:
Value adjustment for the year 0 0 -242,731 0 0 -242,731 -32,289 -275,020
Value adjustments reclassified to the income statement 0 0 278,191 0 0 278,191 34,735 312,926
Tax on other comprehensive income 0 0 -7,801 0 0 -7,801 -538 -8,339
Other comprehensive income 0 -5,237 27,659 85 0 22,507 1,268 23,775
Comprehensive income for 2024 0 -5,237 27,659 194,277 200,000 416,699 19,814 436,513
Adjustment, beginning of year 0 0 0 -1,733 0 -1,733 -580 -2,313
Acquisition and sale of minority interests 0 0 0 0 0 0 829 829
Dividend 0 0 0 0 -200,000 -200,000 -4,276 -204,276
Changes in equity for 2024 0 0 0 -1,733 -200,000 -201,733 -4,027 -205,760
Equity at 31 December 2024 60,000 -31,462 24,305 1,012,549 200,000 1,265,392 90,259 1,355,651
Equity at 1 January 2023
Profit for the year
Exchange adjustments from translation of foreign entities 0 -3,081 0 88 0 -2,993 -390 -3,383
Fair value adjustments of hedging instruments:
Value adjustment for the year 0 0 -104,174 0 0 -104,174 -14,091 -118,265
Value adjustments reclassified to the income statement 0 0 114,742 0 0 114,742 15,591 130,333
Tax on other comprehensive income 0 0 -2,325 0 0 -2,325 -330 -2,655
Other comprehensive income 0 -3,081 8,243 88 0 5,250 780 6,030
Comprehensive income for 2023 0 -3,081 8,243 149,151 200,000 354,313 23,041 377,354
Adjustment, beginning of year 0 0 0 -79 0 -79 0 -79
Dividend 0 0 0 0 -186,900 -186,900 -17,170 -204,070
Changes in equity for 2023 0 0 0 -79 -186,900 -186,979 -17,170 -204,149
Equity at 31 December 2023 60,000 -26,225 -3,354 820,005 200,000 1,050,426 74,472 1,124,898
DK Company 27 / 82Annual Report 2024
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Notes • Basis of preparation of the consolidated nancial statement
The Consolidated Financial Statements of
DK Company A/S for 2024 are prepared in
accordance with IFRS Accounting Standards
as adopted by the EU and Danish disclosure
requirements for annual reports prepared
in accordance with the provisions applying
to reporting class C (large enterprises), cf the
Danish Executive Order on Adoption of IFRS
issued pursuant to the Danish Financial State-
ments Act. DK Company A/S is a public limited
company domiciled in Denmark.
The Parent Company Financial Statements
have been prepared in accordance with the
provisions of the Danish Financial Statements
Act applying to enterprises of reporting class C
(large enterprises).
With regards to the true and fair view of the
Financial Statements, certain reclassifications
have been made in the income statement and
notes. Comparative figures have been adjust-
ed accordingly.
The Consolidated Financial Statements are
presented in Danish kroner (DKK), which is the
presentation currency for the Group’s activities
and the functional currency of the parent.
iXBRL reporting
The annual report for 2024 is presented in
accordance with the applicable requirements
of the European Single Electronic Format
(ESEF). In addition to the annual report’s
primary statements, the notes are also tagged
in 2023. The iXBRL tagging was performed in
accordance with the ESEF taxonomy included
in the ESEF Regulation and developed on the
basis of the IFRS taxonomy issued by IFRS.
Where financial statement items in the annual
report are not defined in the ESEF taxonomy,
an extension has been made to the taxonomy.
Apart from extensions related to subtotals,
extensions to the taxonomy are linked to
elements of the ESEF taxonomy. The annual
report filed with the Danish authorities con-
sists of a special technical zip file containing an
XHTML document.
Roundings and presentation in the prepara-
tion of the annual report DK Company uses
minimum amounts of DKK 1,000 in the mea-
surement of underlying data. As the annual
report is generally presented in thousands
of Danish kroner, all amounts provided have
been rounded, for which reason some addi-
tions may not add up.
CONSOLIDATED FINANCIAL STATEMENTS
The Consolidated Financial Statements
comprise DK Company A/S (parent) and the
companies (subsidiaries) over which the par-
ent has control.
The parent is considered to have control of an
entity if the Group is exposed, or has a right,
to variable returns from its involvement with
the entity and has the ability to affect those re-
turns through its power over the entity. When
assessing whether the Group has control, de
facto control and any potential voting rights
of substance actually existing at the balance
sheet date are taken into account.
Entities in respect of which the Group exercis-
es significant influence, but not control, over
operational and financial policies are classi-
fied as associates. Significant influence exists
where the Group directly or indirectly holds or
controls more than 20% of the voting rights
but less than 50%. The Group chart is shown
at the end of the annual report, to which refer-
ence is made.
CONSOLIDATION PRINCIPLES
The Consolidated Financial Statements are
prepared on the basis of financial statements
of DK Company A/S and its subsidiaries. The
Consolidated Financial Statements are pre-
pared by combining items of a uniform nature.
The financial statements used for consoli-
dation are prepared in accordance with the
Group’s accounting policies.
Upon consolidation, elimination is made of
intercompany income and expenses, inter-
company balances and dividends as well as
of realised and unrealised profits and losses
on transactions between the consolidated
enterprises.
The subsidiaries’ items are fully consolidated in
the Consolidated Financial Statements. Minori-
ty interests’ share of profit/loss for the year
and of equity in subsidiaries that are not fully
owned is included as part of the consolidated
profit and equity, respectively, but is presented
separately.
MINORITY INTERESTS
Minority interests are initially measured at
fair value or their proportionate share of the
fair value of the acquired entity’s identifiable
assets, liabilities and contingent liabilities.
In the first case, goodwill relating to the
minority interests’ ownership shares in the
acquired entity is recognised, while in the
latter case no goodwill is recognised in relation
to minority interests’ ownership shares. The
method is determined for each transaction
and disclosed in the notes in connection with
the description of acquired entities.
Minority interests are subsequently adjusted
for their proportionate share of changes in the
subsidiary’s equity. Comprehensive income is
allocated to the minority interests, even where
the minority interest becomes negative as a
result.
The acquisition or sale of minority interests in a
subsidiary which does not result in the cessa-
tion of control is treated as an equity transac-
tion in the Consolidated Financial Statements,
and the difference between the consideration
and carrying amount is allocated to the par-
ent’s share of equity.
BUSINESS COMBINATIONS
Newly acquired or newly established e ntities
are recognised in the Consoli dated Finan-
cial Statements from the date of acquisition
or establishment, re spectively. The date of
acquisition is the time when actual control of
the entity acquired is taken over. Comparative
DK Company 28 / 82Annual Report 2024
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • Basis of preparation of the consolidated nancial statement
figures are not restated for newly acquired
entities. Entities sold or wound up are rec-
ognised in the consolidated comprehensive
income statement up to the date of disposal
or date of winding-up, respectively. The date
of disposal is the time when actual control
of the entity acquired is taken over by a third
party. Discontinued operations and assets
held for sale are presented separately.
Acquisitions of new entities of which the
Group obtains control are accounted for
using the purchase method under which the
identified assets, liabilities and contingent
liabilities of the newly acquired entities
are measured at fair value at the time of
acquisition. Identifiable intangible assets are
recognised if they can be separated from
or arise from a contractual right. Howev-
er, non-current assets acquired for resale
purposes are measured at fair value less
expected selling expenses. Restructuring
costs are recognised in the pre-acquisition
balance sheet only if they constitute an obli-
gation for the acquired entity. Deferred tax is
recognised on the revaluations.
Positive differences (goodwill) between, on
the one hand, the purchase consideration,
the value of minority interests in the acquired
entity and the fair value of any previously
acquired equity investments and, on the
other hand, the fair value of the assets,
liabilities and contingent liabilities acquired
are recognised as goodwill under intangible
assets. Goodwill is not amortised but is tested
for impairment at least once a year. The first
impairment test is carried out before the end
of the year of acquisition.
On acquisition, goodwill is allocated to the
cash-generating units which subsequently
provide the basis for the impairment test.
Goodwill and fair value adjustments related
to the acquisition of a foreign entity with
a different functional currency than the
Group’s presentation currency are treated
as assets and liabilities of the foreign entity
and, on initial recognition, translated into the
functional currency of the foreign entity at the
exchange rate of the date of transaction.
Negative differences (negative goodwill) are
recognised in the profit for the year at the
time of acquisition.
The purchase consideration for an entity
consists of the fair value of the agreed con-
sideration in the form of assets transferred,
liabilities assumed and equity instruments
issued. If the final determination of the consid-
eration is subject to one or more future events
or to the fulfilment of conditions agreed,
these will be recognised at fair value at the
time of acquisition. Subsequently, contingent
purchase consideration, which is not an equity
instrument, is measured at fair value through
the income statement.
If, at the time of the acquisition, there is
uncertainty as to the identification or mea-
surement of acquired assets, liabilities or
contingent liabilities or the determination
of the purchase consideration, initial recog-
nition is made on the basis of provisionally
determined values. If it subsequently turns
out that the identification or measurement of
the purchase consideration, acquired assets,
liabilities or contingent liabili-ties was not
correct on initial recognition, the statement is
adjusted retrospectively, including goodwill,
for 12 months after the acquisition, and any
comparative figures are restated. After that,
goodwill is not adjusted. Changes in estimates
of contingent purchase consideration are
recognised in profit for the year.
TRANSLATION POLICIES
A functional currency is determined for each
of the Group’s reporting entities. The function-
al currency is the currency used in the primary
economic environment in which the individ-
ual reporting entity operates. Transactions in
currencies other than the functional currency
are transactions in foreign currencies.
On initial recognition, transactions in foreign
currencies are translated to the functional
currency at the exchange rates at the dates
of transaction. Trade receivables, payables
and other monetary items denominated in
foreign currency which have not been settled
at the balance sheet date are translated to
the functional currency at the closing rate.
Property, plant and equipment, intangible
assets, inventories and other non-monetary
assets purchased in foreign currencies and
measured on the basis of historical cost are
translated to the functional currency at the
exchange rate of the date of transaction.
Exchange rate differences arising between
the transaction date and the date of payment
and the balance sheet date, respectively, are
recognised in the profit or loss as revenue
and costs of sale, respectively, in respect of
exchange differences relating to trade receiv-
ables and trade payables. Other exchange
differences are recognised as financial income
and expenses.
On recognition in the Consolidated Financial
Statements of entities with a functional
currency other than Danish kroner (DKK), the
statements of comprehensive income are
converted using average exchange rates for
the months, unless these differ materially from
the actual exchange rates at the time of the
transactions. In case of the latter, the actual
exchange rates will be used. Balance sheet
items are translated at the exchange rates at
the balance sheet date.
Exchange differences arising from the trans-
lation of the opening equity and balance
sheet items of foreign entities at closing rates
and exchange differences from the transla-
tion of comprehensive income from average
rates to closing rates are recognised in other
comprehensive income in a separate foreign
currency translation reserve under equity. The
exchange adjustment is divided between the
parent’s and the minority shareholders’ shares
of equity.
DK Company 29 / 82Annual Report 2024
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • Basis of preparation of the consolidated nancial statement
The reserve for foreign currency translation ad-
justments includes all exchange adjustments
resulting from the translation of financial
statements of entities using a functional
currency other than DKK. With respect to full
or partial disposal of wholly-owned foreign
entities, for which control is ceded, exchange
adjustments which are recognised on an
accumulated basis in other comprehensive in-
come and which are attributable to the entity
will be reclassified from other comprehensive
income to profit/loss for the year with any
gains or losses generated on the disposal. In
respect of disposal of partially owned foreign
subsidiaries for which control is ceded, the
part of the foreign currency translation reserve
relating to minority interests is not transferred
to the income statement. In case of a partial
disposal of foreign subsidiaries for which con-
trol is not ceded, a proportion of the foreign
currency translation reserve is transferred
from the parent company shareholders to the
minority shareholders’ share of equity.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are
recognised in the balance sheet as from the
trade date and are measured at fair value at
the date of settlement. Subsequently, deriv-
ative financial instruments are measured at
fair value at the balance sheet date. Positive
and negative fair values of derivative financial
instruments are included in other receivables
and other debt, respectively.
Cash flow hedge
The share of fair value adjustments of
derivative financial instruments classified as
and meeting the requirements for hedges of
expected future cash flows and which ensure
efficient changes to future cash flows are
recognised in other comprehensive income in
equity under a separate hedging reserve until
the hedged cash flows affect results. At this
time, gains and losses relating to such hedg-
ing transactions from other comprehensive
income are reclassified and recognised in the
same item as the hedged transactions.
If the hedging instrument no longer meets
the hedge accounting criteria, the hedging
relationship will be discontinued. The accu-
mulated value change recognised in other
comprehensive income is reclassified to the in-
come statement when the hedged cash flows
affect the results or are no longer probable.
The share of the value adjustment of a deriv-
ative financial instrument which is not part
of a hedging relationship is presented under
financial income and expenses.
OTHER DERIVATIVE FINANCIAL
INSTRUMENTS
Other derivative financial instruments that do
not meet the criteria for treatment as hedging
instruments are considered trading portfolios
and measured at fair value with current recog-
nition of fair value adjustments in financial in-
come and expenses in the income statement.
Dividends
Dividend is recognised as a liability when a
resolution approving the dividend has been
adopted by the Annual General Meeting of
shareholders (the time of declaration).
DK Company 30 / 82Annual Report 2024
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • Basis of preparation of the consolidated nancial statement
The financial highlights have been calculated in accordance with the recommendations issued by the Danish Soci-
ety of Financial Analysts.
The financial ratios stated in the Annual Report have been calculated as follows:
Revenue growth (%) =
Gross margin (%) =
Profit margin (%) =
Solvency ratio (%) =
Return on equity (%) =
Net interest-bearing cash / debt position =
Gearing (%) =
Borrowing base (%) =
Dividend per share =
DEFINITION OF FINANCIAL RATIOS
(Revenue for the year - last year’s revenue) x 100
Last year’s revenue
Gross profit/loss x 100
Revenue
Operating profit/loss x 100
Revenue
Equity excluding non-controlling interests end of year x 100
Total assets at year end
Profit/loss attributable to shareholders of the parent x 100
Average equity, excluding non-controlling interests
Current and non-current payables to credit institutions and lease
commitments less cash
Net interest-bearing cash / debt position
Profit/Loss before depreciation/amortisation and financial
income and expenses
Net interest-bearing cash / debt position
Inventories + trade receivables + trade payable
Parent’s dividend yield x nominal value of share
100
DK Company 31 / 82Annual Report 2024
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
This section of the annual report contains
notes relating to the Group’s primary oper-
ations. inclusing a breakdown by operating
segments.
The following notes are presented in this
section:
1. Revenue
2. Starff costs
3. Other operating income
4. Other operation expenses
5. Depreciation, amortisation and impair-
ment losses
6. Inventories
7. Trade receivables
8. Other receivables
9. Other payables
10. Changes in working capital
INCOME STATEMENT
Revenue
The Group’s revenue stems from the sale
of goods for resale in the textile industry.
Revenue is recognised when control of the in-
dividually identifiable performance obligation
set out in the sales agreement passes to the
customer, which according to the terms of sale
occurs at the time of delivery.
The Group’s sales agreements are divided
into individually identifiable performance
obligations, which are recognised and
measured separately at the fair value of
the agreed consideration. Although sales
agreements for the sale of goods for resale
often set out multiple performance obli-
gations, such obligations are treated as a
single performance obligation owing to their
concurrent delivery. If a sales agreement
contains multiple performance obligations,
the total sales value of the sales agreement
is allocated proportionally to its individual
performance obligations.
Recognised revenue is measured at the fair
value of the consideration agreed, exclusive
of VAT, charges, etc. collected on behalf of
third parties. All types of discounts grant-
ed are recognised in revenue. Exchange
differences in receivables from the sale of
goods and services in foreign currencies are
recognised in revenue. Fair value corresponds
to the price agreed discounted to net present
value, where the terms of payment exceed 12
months.
The part of total consideration that is variable,
for example in the form of discounts, bonus
payments, etc., is only recognised in reve-
nue when it is reasonably certain that there
will be no reversal thereof in subsequent
periods. This also applies to the goods that
are expected to be returned by fulfilling the
Group’s return obligations based on historical
experience on actual return percentages and
product mix. Customers are typically entitled
to return online purchases within two weeks,
but when returning Christmas presents
purchased between 1 November and 23 De-
cember, they have 14-90 days.
The terms of payment in the Group’s sales
agreements with customers depend in part
on the underlying performance obligation
and in part on the underlying customer
relationship. The Group’s payment terms are
typically net 30 days, but up to 90 days for
large customers.
The Group does not typically enter into sales
agreements under which the credit period
exceeds 12 months. As a result, the Group
does not adjust the contract price with a
financing element.
Recognition of revenue is not associated with
significant estimates and j udgements.
Cost of sales
Cost of sales include direct expenses incurred
to generate revenue for the year. Cost of sales
is recognised in line with revenue. Change
in inventories for the year is included in the
cost of sales. Exchange differences relating
to trade payables in foreign currencies are
recognised in cost of sales.
Other external expenses
Other external expenses include other ex-
penses incurred in the year for procurement,
sales, including commission to external sales
agents, distribution and advertising, admin-
istration, costs for the retention of patent
rights and bad debts, etc. Lease payments
made under operating leases are recognised
in other external expenses on a straight-line
basis over the lease term. Development costs
which do not qualify for recognition in the
balance sheet are recognised in other exter-
nal expenses.
Staff costs
Staff costs include salaries, considerations,
pensions and other staff costs related to the
Group’s employees, including the Executive
Board and Board of Directors.
income in the form of compensation re-
ceived from public authorities
Compensation received from public author-
ities is recognised and set off against other
external expenses and staff costs in line with
the costs associated with the compensation,
once the Group has obtained final commit-
ment from the compensation provider that
it is likely that the Group will meet the condi-
tions attached to the compensation and it is
highly likely that the compensation will not
have to be repaid.
Other operating income and expenses
Other operating income and expenses com-
prise income and expenses of a secondary
nature to the activities of the Group, includ-
ing gains and losses from current sale and
replacement of intangible assets and prop-
erty, plant and equipment. Gains and losses
from the disposal of intangible assets and
property, plant and equipment are calculated
as the difference between selling price less
selling costs and the carrying amount at the
time of disposal.
Depreciation, amortisation and impairment
losses on intangiable assets as well as
property, plant and equipment
Depreciation, amortisation and impairment
losses on property, plant and equipment and
intangible assets include depreciation of
Notes • EBITDA, working capital and cash ows
32 / 82Annual Report 2024 DK Company
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • EBITDA, working capital and cash ows
property, plant and equipment and amortisa-
tion of intangible assets, as well as impairment
losses for the year as a result of impairment.
Special items
Special items include major revenue and
one-off costs, e.g. transaction costs, incurred
in connection with the acquisition of subsid-
iaries and activities, restructuring costs and
negative goodwill recognised upon acqui-
sition. These items are presented separately
for the sake of com-parability in the income
statement, including to give a clearer view of
the profit/loss from operating activities.
Inventories
Inventories are measured at the lower of cost
using the FIFO method and net realisable
value.
The cost of goods for resale consists of
purchase price plus direct delivery costs. The
cost of goods in transit are value at purchase
price.
The net realisable value of inventories is
calculated as expected selling price with
deduction of costs incurred to execute sales.
The value is determined allowing for mar-
ketability, obsolescence and development in
expected sales sum.
Receivables
Receivables include trade receivables and
other receivables. Receivables are included in
the category of loans and receivables, which
are financial assets with fixed or determin-
able payments not listed in an active market
and which are not derivative financial instru-
ments.
Receivables are initially measured at fair
value and subsequently at amortised cost,
usually corresponding to nominal value
less provisions for bad debts. Impairment
allowances are made under the simplified
expected credit loss model under which the
total loss is recognised immediately in profit/
loss at the time of recognition in the balance
sheet based on the expected loss over the
lifetime of the receivable. The financial
asset relating to trade receivables is moni-
tored continuously in accordance with the
Group’s risk management until realisation.
Write-down is calculated on the basis of the
expected loss rate computed from historical
data adjusted for estimates of the impact of
expected changes in relevant parameters.
Assessment of writedowns for estimated
bad debt is carried out using a provisions
account.
The revenue recognition of interest on
impaired receivables is calculated on the
basis of the impaired balance at the effective
interest rate of the individual receivable or
portfolio.
Other contract assets
Other contract assets include refund assets.
Refund assets include the goods that are
expected to be returned by fulfilling the
Group’s return obligations based on historical
experience on actual return percentages and
product mix. Refund assets are determined
as cost of the underlying items, minus any
necessary writedowns.
Prepaid expenses
Prepayments, recognised under assets,
include costs incurred relating to subsequent
financial years. Prepaid expenses are mea-
sured at cost.
CASH FLOW STATEMENT
The cash flow statement shows the cash
flows broken down by operating, investing
and financing activities for the year, changes
for the year 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 acquiring and selling
entities is shown separately under cash flows
for investing activities.
The cash flow statement includes cash flows
related to business acquisitions as from the
date of acquisition, and cash flows from
businesses sold are recognised up until the
time of the sale.
Cash flows from operating activities are pre-
sented according to the indirect method and
are calculated on the basis of the profit/loss
before tax adjusted for non-cash operating
items, change in working capital, interest
received and paid, including the interest ele-
ment on recog-nised lease liabilities, as well
as any refunded and paid corporation tax.
Cash flows for investing activities include
payments in connection with purchases and
sales of enterprises and activities, purchas-
es and sales of intangible assets, property,
plant and equipment, and other non-current
assets, dividends received and securities not
presented as cash and cash equivalents.
Cash flows from financing activities comprise
changes in the size or composition of the
parent’s share capital and related costs, as
well as the raising and repayment of loans,
repayments on interest-bearing debt and
lease commitments, purchases and sales of
treasury shares and minority interests, and
payment of dividend to shareholders and
minority shareholders.
Cash and cash equivalents include cash at
bank and in hand.
Cash flows in other currencies than the func-
tional currency are recognised in the cash
flow statement by using average exchange
rates for the months, unless these differ ma-
terially from the actual exchange rates at the
time of the transactions. In case of the latter,
the actual exchange rates will be used.
10.9%
4.3%
5.1%
4.6%
12.4%
11.5%
21.1%
Denmark
Norway
Germany
Other markets in
Europe
France
Canada
The UK
Benelux
Sweden
Other markets
outside Europe
13.8%
15.0%
1.3%
2024
33 / 82Annual Report 2024 DK Company
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • EBITDA, working capital and cash ows
The Group is engaged in the sale of clothing within a number of brands, all of which are categorised as 'Fashion Clothing'.
Thus, the Group has no products or services that differ significantly from each other, and therefore no separate information is
provided about individual products or services.
The entire Group revenue relates to the sale of goods and is recognised at a specific time.
Primary customers
No single customer accounts for more than 10% of the consolidated revenue.
Amounts in DKK thousands
2023
1. REVENUE
In terms of geography, consolidated revenue may essentially be broken down as follows:
Revenue 2024 2023 Growth 2024 Growth 2023 Share 2024 Share 2023
Denmark 969,336 719,687 34.7% 14.4% 18.2% 15.0%
Norway 586,873 667,622 -12.1% -10.2% 10.9% 13.8%
Germany 1,300,027 1,018,791 27.6% 2.1% 24.2% 21.1%
Sweden 559,054 557,070 0.4% 2.2% 10.4% 11.5%
Benelux 593,790 599,899 -1.0% 38.1% 11.1% 12.4%
The UK 263,520 223,254 18.0% -0.9% 4.9% 4.6%
Canada 220,410 243,942 -9.6% 1.4% 4.1% 5.1%
France 197,408 208,749 -5.4% 19.7% 3.7% 4.3%
Other markets in Europe 574,108 525,007 9.4% -15.3% 10.7% 10.9%
Other markets outside Europe 97,385 64,437 51.1% 77.3% 1.8% 1.3%
5,361,911 4,828,458 11.0% 3.9% 100.0% 100.0%
NOTE 1 SEGMENT REPORTING
Reporting segments 2024 2023 Growth 2024 Growth 2023 Share 2024 Share 2023
Business to business 2,822,658 2,535,855 11.3% -2.2% 52.6% 52.5%
Business to customer 2,539,253 2,292,603 10.8% 11.7% 47.4% 47.5%
5,361,911 4,828,458 11.0% 3.9% 100.0% 100.0%
Based on management control and financial management, DK Company Group. has identified 2 reporting segments, which are
Business to Business and Business to Customer. Management primarily evaluates reporting segments based on turnover perfor-
mance. All inter-segment transactions were made on an arm’s length basis.
34 / 82Annual Report 2024 DK Company
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • EBITDA, working capital and cash ows
Average numbers of employees
Amounts in DKK thousands
2024
Board of
Directors
Executive
Board Total
Wages and salaries 700 6,808 7,508
Defined contribution plans 0 560 560
700 7,368 8,068
2023
Board of
Directors
Executive
Board Total
Wages and salaries 675 6,180 6,855
Defined contribution plans
0 513 513
675 6,693 7,368
The above amounts include the value of employee benefits.
3. OTHER OPERATING INCOME 2024 2023
Gain on disposal of intangible assets and property, plant and equipment 107 2,197
107 2,197
4. OTHER OPERATING EXPENSES
Loss on disposal of intangible assets and property, plant and equipment 282 2,570
282 2,570
2. STAFF COSTS 2024 2023
Wages and salaries 763,911 714,611
Defined contribution plans 61,680 57,388
Other social security expenses 36,449 34,157
862,040 806,156
Average number of employees 1,690 1,654
Remuneration to the Board of Directors and Executive Board:
5. DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES ON
INTANGIBLE ASSETS AND PROPERTY, PLANT AND EQUIPMENT 2024 2023
Trademarks rights 0 149
Orderbook 3,000 0
Buildings 674 572
Leasehold improvements 21,095 19,059
Other fixtures and fittings, tools and equipment 19,398 11,814
Leased assets 156,259 137,008
Total depreciation and amortisation 200,426 168,602
35 / 82Annual Report 2024 DK Company
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • EBITDA, working capital and cash ows
Receivables do not carry interest until normally 30-60 days after the date of invoicing. Interest is subsequently added
to the outstanding amount.
The Group has recognised interest on unpaid trade receivables of DKK 2.7 million (DKK 2.8 million) for the year.
Amounts in DKK thousands
6. INVENTORIES 2024 2023
Finished goods and goods for resale 868,194 791,205
Goods in transit 344,031 256,601
1,212,225 1,047,806
Movements for the year in inventory write-downs:
2024 2023
Inventory write-down at 1 January 110,669 108,495
Foreign currency translation adjustments -694 -594
Additions for the year 70,744 50,541
Disposals for the year -31,880 -47,773
Inventory write-down at 31 December 148,839 110,669
7. TRADE RECEIVABLES
Due between
2024 Not due 1-60 days 61-120 days > 120 days Total
Trade receivables 163,598 120,000 20,797 55,074 359,469
Impairment losses on trade receivables -1,085 -2,774 -4,362 -52,167 -60,388
Trade receivables, net 162,513 117,226 16,435 2,907 299,081
Proportion of total receivables expected
to be settled 83.2%
Impairment rate 0.7% 2.3% 21.0% 94.7% 16.8%
Due between
2023 Not due 1-60 days 61-120 days > 120 days Total
Trade receivables
155,561 327,940 17,978 54,455 555,934
Impairment losses on trade receivables -1,281 -2,029 -4,888 -42,415 -50,613
Trade receivables, net 154,280 325,911 13,090 12,040 505,321
Proportion of total receivables expected
to be settled 90.9%
Impairment rate 0.8% 0.6% 27.2% 77.9% 9.1%
7. TRADE RECEIVABLES, CONTINUED 2024 2023
Impairment losses on trade receivables
Provision for bad debt under IFRS 9 at 1 January
50,613 59,655
Foreign currency translation adjustments -211 0
Adjustments for the year recognised in the income statement. 9,986 -9,042
Impairment losses at 31 December
60,388
50,613
2024 2023
The geographical distribution of trade receivables (net) is as follows:
Denmark
46,969 56,709
Norway 9,604 10,871
Germany 61,487 130,603
Sweden 22,064 28,266
Benelux 32,147 61,443
The UK 18,350 23,594
Canada 23,604 29,327
France 1,736 6,508
Other markets in Europe 77,375 154,676
Other markets outside Europe 5,745 3,324
299,081 505,321
Calculation of impairment loss is based on the simplified expected credit loss model under which the total loss is
recognised immediately in profit/loss at the time of recognition in the balance sheet based on the expected loss
over the useful life of the receivable. Impairment under IFRS 9 is continuously monitored according to the Group’s
risk management until realisation and is calculated on the basis of the expected loss rate considering due to histori-
cal data adjusted for estimates of the impact of expected changes in relevant parameters.
The carrying amount of the receivables is essentially equivalent to their fair values.
36 / 82Annual Report 2024 DK Company
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • EBITDA, working capital and cash ows
It is Management’s assessment that the carrying amount of receivables in all materiality corresponds to the fair value.
Amounts in DKK thousands
8. OTHER RECEIVABLES 2024 2023
Receivables related to VAT, customs duties and tax on salaries 15,137 4,859
Receivable related to cash collateral 988 1,006
Derivative financial instruments 56,454 0
Receivable from factoring 39,521 31,848
Other receivables 56,398 49,474
168,498 87,187
9. OTHER PAYABLES 2024 2023
VAT, customs duties and with holding tax on salaries 99,315 103,489
Salaries and wages, social security expenses and payable holiday pay 70,119 67,467
Derivative financial instruments 0 14,967
Other payables 111,647 115,394
281,081 301,317
Expected maturity:
0-1 year 281,081 301,317
1-5 years 0 0
281,081 301,317
10. CHANGES IN WORKING CAPITAL 2024 2023
Changes in inventories -164,420 100,659
Changes in receivables 156,340 -147,893
Changes in trade payables 142,295 -41,156
Changes in other payables -166,992 84,739
-32,777 -3,651
DK Company 37 / 82Annual Report 2024
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FINANCIAL STATEMENTS
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INFORMATION
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FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
In applying the Group’s accounting policies
described in note 1, Management needs to
make assessments and estimates of, as well
as prepare assumptions for, the carrying
amounts of assets and liabilities that cannot
be immediately derived from other sources.
The estimates and assumptions made are
based on historical experience and other
relevant factors which Management considers
appropriate in the circumstances and which
are inherently uncertain and unpredict-
able. The assumptions may be incomplete
or inaccurate, and unexpected incidents or
circumstances may arise. As a result of the
risks and uncertainties to which the Group is
exposed, actual results may differ from the
estimates made. Special risks for the Group
are discussed in Management’s Review in
the ‘Risk management’ section and note 26
‘Financial risks’ to the Consolidated Financial
Statements.
The estimates made and the underlying
assumptions are continuously reassessed.
Changes to accounting estimates made are
recognised in the accounting period in which
the change takes place and in future account-
ing periods if the change affects both the
period in which the change takes place and
subsequent accounting periods.
SIGNIFICANT ACCOUNTING ASSESSMENTS
ASSOCIATED WITH THE APPLICATION OF
ACCOUNTING POLICIES
In applying the Group’s accounting policies,
Management has not only carried out the es-
timates described below but also the follow-
ing accounting assessments, which have had
a material impact on the amounts recognised
in the Consolidated Financial Statements:
DETERMINING LEASE TERMS
The lease term covers the non-terminable
period of the lease agreement, periods sub-
ject to an extension option that the Group
reasonably expects to exercise, and periods
subject to a termination option that the
Group reasonably
expects not to exercise.
A number of the Group’s property leases are
subject to options that entitle the Group to an
extension of the agreement for an additional
lease term of an average of three to four years.
On initial recognition of the leased asset, the
Group assesses whether the exercise of the
extension option is reasonably certain. The
Group will reassess this estimate in the event
of significant events or significant changes in
circumstances within the Group’s control.
The assessment of the property lease term is
carried out individually for each lease entered
into. The assessment of the lease term for
retail properties includes an assessment of
the location, including whether it is deemed
a strategically important location. It also
includes an assessment of the expected
development of the business environment at
the location.
DETERMINATION OF DISCOUNT RATE OF
LEASES
The Group uses its alternative borrowing rate
to measure future lease payments at net
present value. When assessing the alternative
borrowing rate, the Group divided its portfolio
of leased assets into two categories; the Group
considers the leases and the underlying
assets of each category to have the same
characteristics and risk profile. The categories
are as follows:
• Operating equipment, etc.
• Properties
The Group sets the alternative borrowing
rate for the above categories of leases in
connection with the initial recognition of a
lease. Moreover, the rate is fixed in connection
with subsequent changes to the underlying
contractual cash flows arising from changes
to the Group’s assessment of whether the ex-
ercise of a purchase, extension or termination
option is regarded as reasonably certain, or
where a lease agreement is modified.
When assessing the Group’s alternative
borrowing rate, the Group has calculated
its alternative borrowing rate for its leases of
properties located in Denmark on the basis
of the interest rate on a mortgage bond with
a maturity corresponding to the term of the
lease. The interest rate on the financed part
for which a mortgage cannot be used is esti-
mated on the basis of a reference interest rate
plus a credit margin derived from the Group’s
existing credit facilities.
The Group has calculated its alternative bor-
rowing rate for leases of operating equipment,
etc. based on a reference interest rate plus a
credit margin derived from the Group’s exist-
ing credit facilities.
SIGNIFICANT ACCOUNTING ESTIMATES,
ASSUMPTIONS AND UNCERTAINTIES
Recognition and measurement of assets
and liabilities are often dependent on future
events subject to some uncertainty. In this
context, it is necessary to assume a course
of events, etc. that reflects Management’s
assessment of what the most likely course of
events will be. In particular, the assumptions
and uncertainties set out below are signifi-
cant in the Consolidated Financial Statements
for 2023 as they have had a significant impact
on the assets and liabilities recognised in the
Financial Statements and may require ad-
justments in subsequent financial years if the
courses of events assumed are not realised as
expected. No major changes have been made
to the Group’s assessment methods.
Notes • Signicant accounting estimates, assumptions and adjustments
DK Company 38 / 82Annual Report 2024
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MANAGEMENT’S
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Notes • Signicant accounting estimates, assumptions and adjustments
Goodwill
In connection with the annual impairment
test of goodwill, or when there is an indication
of impairment, estimates are made of whether
the parts of the enterprise (cash-generating
units) to which goodwill relates will be able to
generate sufficient positive net cash flows in
the future to support the value of goodwill and
other net assets in that part of the enterprise.
Given the nature of the business, expected
cash flows have to be estimated for many
years into the future, which naturally leads to
some uncertainty. T he uncertainty is reflected
in the selected discount rate. The value has not
been subject to impairment in relation to the
acquisition cost for the financial year. Refer-
ence is made to note 11.
Trademark rights
In connection with the annual impairment
test of trademark rights, or when there is an in-
dication of impairment, estimates are made of
whether the parts of the enterprise (cash-gen-
erating units) to which the trademarks relate
will be able to generate sufficient positive net
cash flows in the future to support the value of
the trademark rights and other net assets in
that part of the enterprise.
Given the nature of the business, expected
cash flows have to be estimated for many
years into the future, which naturally leads to
some uncertainty.
The uncertainty is reflected in the selected
discount rate. Due to impairment in 2023 of
the trademark Bon’ A Parte the value of the
trademark of DKK 8 million has been impaired
and written down to DKK 8. The value of the
other trademark rights has not been subject
to impairment for the financial year. Reference
is made to note 11.
Inventories
Measurement of the Group’s inventories is sig-
nificantly influenced by estimates regarding
the need for writedown to a lower net realis-
able value and the assumptions used to cal-
culate it. Measurement of inventories is based
on an individual assessment of seasonality and
age and the risk of realisation assessed for the
individual product groups.
Receivables
Measurement of the Group’s trade receivables
is associated with accounting estimates of in-
dications of impairment. The indication of im-
pairment is based on the simplified expected
credit loss model under which the total loss is
recognised immediately in the income state-
ment at the time of recognition in the balance
sheet. The impairment in particular implies an
estimate of the expected loss rate calculated
on the basis of historical data adjusted for
estimates of the impact of expected changes
in relevant parameters.
DK Company 39 / 82Annual Report 2024
PARENT COMPANY
FINANCIAL STATEMENTS
COMPANY
INFORMATION
CONSOLIDATED
FINANCIAL STATEMENTS
MANAGEMENT’S STATEMENT
AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
plant and equipment. Depreciation is calcu-
lated using the straight-line method over the
estimated useful lives of the assets, which are:
Buildings 20 - 30 years
Leasehold improvements 2 - 10 years
Plant and machinery 5 - 15 years
Other fixtures and fittings,
tools and equipment 2 - 7 years
Land is not depreciated
The basis of depreciation is the cost of the
asset less the residual value and any depre-
ciation. The residual value is the amount
expected to be obtained from the sale of the
asset today after deduction of selling costs if
the asset was already of the age and condition
expected after its useful life. The depreciation
method, useful life and residual value are
determined at the date of acquisition and re-
assessed annually. If the residual value exceeds
the carrying amount of the asset, depreciation
is discontinued.
If the period of depreciation or the residual
value changes, the effect on depreciation is
recognised prospectively as a change in the
accounting estimate.
Property, plant and equipment are written
down to the lower of the recoverable amount
or carrying amount, see the section on impair-
ment below.
Software that is not an integral part of the
associated hardware is considered intangible
assets, while other software without which
the computer cannot operate is included
as property, plant and equipment. Software
under intangible assets is measured at cost
less accumulated amortisation and impair-
ment losses. Software under intangible assets
is amortised on a straight-line basis over its
expected useful life, which is up to three years.
Property, plant and equipment
Property, plant and equipment are measured
at cost less accumulated depreciation and
impairment losses.
Cost comprises the cost of acquisition, ex-
penses directly related to the acquisition and
setup costs up until the time when the asset
is ready for use.
Subsequent costs for, e.g., the replacement of
a component of a tangible asset are rec-
ognised in the carrying amount of the asset
concerned when it is probable that the costs
incurred will lead to future economic benefits
for the Group. The replaced components are
no longer recognised in the balance sheet,
and the carrying amount is transferred to the
income statement.
All other costs of ordinary repair and mainte-
nance are recognised in the income state-
ment as incurred.
Where parts of an item of property, plant and
equipment have different useful lives, they
are depreciated as separate items of property,
This section of the annual report contains
notes relating to the Group’s invested capital
The following notes are presented in this
section:
11. Intangiable assets
12. Property, plant and equipment
13. Lease assets
14. Investments in subsidiaries, associates and
joint arrangements
BALANCE SHEET
Goodwill
Goodwill is initially recognised and measured
as the difference between, on the one hand,
the cost of the acquired entity, the value of
minority interests in the acquired entity and
the fair value of any previously acquired equity
investments and, on the other hand, the fair
value of the assets, liabilities and contingent
liabilities acquired, see the description in the
consolidated financial statements section.
When recognised, goodwill is allocated to the
activities of the Group that generate inde-
pendent income (cash-generating units). The
definition of cash-generating units follows the
management structure and the internal finan-
cial management policy and Group reporting.
Subsequently, goodwill is measured at cost
less accumulated impairment losses. Goodwill
is not amortised but is tested for impairment
at least once a year, see below.
Other intangiable assets
Other intangible assets with indefinite useful
lives are initially recognised and measured
as the difference between, on the one hand,
the cost of the acquired entity, the value of
minority interests in the acquired entity and
the fair value of any previously acquired equity
investments and, on the other hand, the fair
value of the assets, liabilities and contingent
liabilities acquired, see the description in the
consolidated financial statements section.
When recognised, the amount related to
trademark rights is allocated to the activities
of the Group that generate independent
income (cash-generating units). The definition
of cash-generating units follows the man-
agement structure and the internal financial
management policy and Group reporting.
Subsequently, trademark rights are measured
at cost less accumulated impairment losses.
Trademark rights are not amortised but tested
for impairment at least once a year, see below.
Development projects relating to products
and processes that are clearly defined and
identifiable are recognised as intangible
assets if it is likely that the product or process
will generate future economic benefits to the
Group, and the development costs of each
asset can be measured reliably. Other devel-
opment costs are recognised in the income
statement as incurred. The Group has no de-
velopment projects that meet the criteria for
recognition of intangible assets in the balance
sheet.
Notes • Invested capital
DK Company 40 / 82Annual Report 2024
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AND AUDITOR’S REPORT
MANAGEMENT’S
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Notes • Invested capital
Leases
Leased assets and lease liabilities are rec-
ognised in the balance sheet when, under
a lease agreement for a specific identifiable
asset, the Group is provided with the leased
asset during the lease period, and when the
Group acquires the right to virtually all the
economic benefits of the use of the identified
asset and the right to make decisions regard-
ing the use of the identified asset.
Lease liabilities are initially measured at the
net present value of future lease payments
discounted at an alternative borrowing rate.
The following lease payments are recognised
as part of the lease liability:
• Fixed payments.
• Variable payments that depend on an
index or a rate, initially measured using
the index or rate as at the commence-
ment date.
• Amounts due under a residual value
guarantee.
• The exercise price of call options that,
with high probability, Management
expects to exercise.
• Payments covered by an extension
option that, with high probability, the
Group expects to exercise.
• Penalties related to a termination option
unless, with high probability, the Group
expects not to exercise the option.
The lease liability is measured at amortised
cost using the effective interest methodology.
The lease liability is reassessed when changes
in the underlying contractual cash flows arise
owing to changes in an index or interest rate,
if there are changes in the Group’s estimate
of a residual value guarantee, or if the Group
changes its assessment of whether the exer-
cise of a purchase, extension or termination
option is regarded as reasonably certain.
The leased asset is initially measured at cost,
which corresponds to the value of the lease lia-
bility adjusted for prepaid lease payments, plus
directly related costs and estimated costs for
demolition, refurbishment or the like and less
discounts received or other types of incentive
pay from the lessor.
Subsequently, the asset is measured at cost
less accumulated depreciation and impair-
ment losses. The leased asset is depreciated
over the shorter of the lease term and the
useful life of the leased asset. Depreciation
is recognised on a straight-line basis in the
income statement.
The leased asset is adjusted for changes in
the lease liability as a result of changes in the
terms of the lease or changes in the contract’s
cash flows in line with changes in an index or
interest rate.
Leased assets are depreciated on a straight-
line basis over the expected lease terms which
are as follows:
Operating equipment, etc. 2 - 5 years
Shop leases and showroom 2 - 6 years
Owner-occupied properties 5 - 10 years
Warehouse properties 2 - 5 years
The Group presents leased assets and lease
liabilities separately in the balance sheet.
The Group has chosen not to include low-val-
ue leased assets and short-term leases in
the balance sheet. Instead, lease payments
made under such leases are recognised in the
income statement on a straight-line basis.
Impairment test of non-current assets Good-
will and intangiable assets with indefinite
useful lives
For goodwill and intangible assets with
indefinite useful lives, the recoverable amount
is determined annually regardless of any indi-
cations of impairment. The first assessment
is carried out before the end of the year of
acquisition.
The carrying amount of goodwill is tested for
impairment together with other non-current
assets in the cash-generating unit or the
group of cash-generating units to which the
goodwill has been allocated and is written
down to the recoverable amount over the
income statement in case of a higher carrying
amount.
As a main rule, the recoverable amount is cal-
culated as the net present value of expected
future net cash flows from the enterprise or
activity (cash-generating unit) to which the
goodwill relates.
Other non-current assets
The carrying amounts of other non- current
assets with definite useful lives are assessed
annually to determine whether there is any
indication of impairment. If this is the case, the
recoverable amount of the asset should be
calculated in order to determine the need for
impairment and the extent thereof. The recov-
erable value is determined as the higher value
of the fair value of the asset and the fair value
of the cash-generating unit, less expected
selling costs or value in use.
The value in use is calculated as the net pres-
ent value of expected future cash flows from
the asset or the cash- generating unit to which
the asset relates.
Recognition of impairment loss in the in-
come statement
If the recoverable amount of the asset and
the cash-generating unit, respectively, is
lower than the carrying amount, the carrying
amount is written down to the recoverable
amount. Impairment losses are recognised in
the income statement.
An impairment loss in respect of goodwill is
not reversed. Impairment of other assets is
reversed to the extent that changes occur in
assumptions and estimates leading to the
impairment losses. Impairment losses are only
r eversed to the extent that the new carrying
amount of the asset does not exceed the car-
rying amount that the asset would have had
after depreciation/amortisation had the asset
not been im-paired.
DK Company 41 / 82Annual Report 2024
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FINANCIAL STATEMENTS
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INFORMATION
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AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • Invested capital
Amounts in DKK thousands
The recoverable amounts of each cash-generating unit to which the goodwill amounts are allocated are deter-
mined on the basis of the calculation of the units’ value in use, i.e. discounting of expected future cash flows that
are compared with the carrying amounts. Future cash flows are based on the Company’s budgets for the financial
years 2025 - 2028 (2023: 2024 - 2027). The main parameters when calculating the value in use are revenue, EBITDA
and the discount rate. In calculating the value in use, a growth factor has been used during the terminal period of
2% at 31 December 2024 and 2% at 31 December 2023 and a discount rate after tax of 9.6% at 31 December 2024 and
a discount rate after tax of 9.4% at 31 December 2023.
DK Company Cph Group incl. DK Company Canada Inc.:
The cash-generating unit 'DK Company Cph Group including DK Company Canada Inc.' holds the four brands:
InWear, Matinique, Part Two and Soaked in Luxury each of which are individual cash-generating units. Determina-
tion of the recoverable value of this cash-generating unit is based on a positive development of the activity owing to
continued focus on and positioning of the brands in the market In addition, an expectation of improved cost-effec-
tiveness has been incorporated over the period as a result of continued optimisation in connection with increasing
integration of the Group’s strategy in the form of ‘The Blooming Concept’.
Companys Retail AG:
The cash-generating unit 'Companys Retail AG' covers the operation of the Companys chain's retail activities in Swit-
zerland. Determination of the recoverable value of this cash-generating unit is based on a positive development of
the activity owing to continued focus in the market. The Company is intended to play a central role in the marketing
of the Group’s brands to the Swiss end user.
The impairment test has not given rise to any indications of impairment for neither 2024 nor 2023.
11. INTANGIBLE ASSETS
Goodwill
Trademark
rights Software Orderbook
Cost at 1 January 2024 65,822 137,091 11,837 0
Foreign currency translation adjustments -2 0 0 0
Additions at cost 3,250 3,250 0 3,000
Cost at 31 December 2024 69,070 140,341 11,837 3,000
Amortisation and impairment losses at 1 January 2024 560 1,302 11,837 0
Amortisation for the year 0 0 0 3,000
Amortisation and impairment losses at 31 December
2024
560 1,302 11,837 3,000
Carrying amount at 31 December 2024 68,510 139,039 0 0
Cost at 1 January 2023 64,322 135,591 11,837 0
Additions at cost 1,500 1,500 0 0
Cost at 31 December 2023 65,822 137,091 11,837 0
Amortisation and impairment losses at 1 January 2023 560 1,153 11,837 0
Amortisation for the year 0 149 0 0
Amortisation and impairment losses at 31 December
2023
560 1,302 11,837 0
Carrying amount at 31 December 2023 65,262 135,789 0 0
Goodwill:
Goodwill relating to acquisitions is, at the time of the acquisition, allocated to the cash-generating units which are
expected to achieve economic benefits from the acquisition.
The total carrying amount of goodwill is allocated to the following cash-generating units:
Carrying amount
2024 2023
DK Company Cph Group incl. DK Company Canada Inc. 35,766 32,518
DK Company Con A/S 953 953
Earnest money, retail 3,487 3,487
Companys Retail AG 15,646 15,646
Agencies and customer relations 12,658 12,658
Carrying amount of goodwill 68,510 65,262
DK Company 42 / 82Annual Report 2024
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AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
Notes • Invested capital
Amounts in DKK thousands
11. INTANGIABLE ASSETS, CONTINUED
Trademark rights:
Trademark rights relating to acquisitions are, at the time of the acquisition, allocated to the cash- generating units
which are expected to achieve economic benefits from the acquisition. Trademark rights are considered to have an
indefinite useful life as the collections prepared for the individual brands are being developed continuously taking
into account the unique DNA of the brands to which the trademark rights relate. Thus, no multi-year amortisation is
provided on those trademarks, but solely impairment to the extent that the calculated recoverable value does not at
least match the carrying amount.
The carrying amount of the trademark rights is thus allocated to the following cash-generating units:
Carrying amount
2024 2023
Blend He 23,000 23,000
ICHI 5,000 5,000
Fransa 23,000 23,000
b.young 23,000 23,000
InWear 10,000 10,000
Matinique 8,000 8,000
Part Two 7,500 7,500
Soaked in Luxury 4,500 4,500
Bon'A Parte 7,630 7,630
Culture 8,400 8,400
Pulz 9,000 9,000
Saint Tropez 3,500 3,500
Solid 1,759 1,759
Ball 1,500 1,500
Wood Wood 3,250 0
Carrying amount of trademark rights 139,039 135,789
The recoverable amounts of each cash-generating unit to which the trademark rights are allocated are determined
on the basis of the calculation of the units’ value in use, i.e. discounting of expected future cash flows that are
compared with the carrying amounts. Future cash flows are based on the Company’s business plans, budgets/
forecasts for the financial years 2025-2028 (2023: 2024-2027). The main parameters when calculating the value in
use are revenue, estimated royalty rate and the discount rate. Overall, due to continued focus and positioning, a
positive development of the activity in the coming years is expected. In addition, a positive development in costs is
expected in line with the expansion of and compliance with ‘The Blooming Concept’, which has a positive effect on
the royalty rate applied. In calculating the value in use, a growth factor has been used during the terminal period of
2,0% at 31 December 2024 and 2,0% at 31 December 2023 and a discount rate after tax of 9.6% at 31 December 2024
and 9.4% at 31 December 2023.
Impairment of the trademark rights of Bon´A Parte results in a impariment loss of 0.1 million in 2023 due to expect-
ed lower activities in compared to previous years.
Besides this, the impairment test did not give rise to any indications of impairment for neither 2024 nor 2023.
12. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Leasehold
improve-
ments
Other fix-
tures and
fittings,
tools and
equipment
Cost at 1 January 2024 19,132 167,631 96,387
Foreign currency translation adjustments 0 -2,190 -1,459
Additions at cost 955 14,563 32,557
Disposals at cost 0 -10,754 -15,937
Transfer between categories 0 834 -834
Cost at 31 December 2024 20,087 170,084 110,714
Depreciation and impairment losses at 1 January 2024 1,689 76,791 26,626
Foreign currency translation adjustments 0 -1,430 -1,418
Depreciation for the year 674 21,095 19,398
Reversal of assets sold 0 -9,634 -13,880
Transfer between categories 0 503 -503
Depreciation and impairment losses at 31 December 2024 2,363 87,325 30,223
Carrying amount at 31 December 2024 17,724 82,759 80,491
Cost at 1 January 2023 18,232 149,583 43,853
Foreign currency translation adjustments 0 -2,530 -1,985
Additions at cost 900 28,915 63,207
Disposals at cost 0 -8,337 -8,688
Transfer between categories 0 0 0
Cost at 31 December 2023 19,132 167,631 96,387
Depreciation and impairment losses at 1 January 2023 1,117 64,260 23,684
Foreign currency translation adjustments 0 -1,380 -1,819
Depreciation for the year 572 19,059 11,781
Reversal of assets sold 0 -5,144 -7,024
Transfer between categories 0 -4 4
Depreciation and impairment losses at 31 December 2023 1,689 76,791 26,626
Carrying amount at 31 December 2023 17,443 90,840 69,761
DK Company 43 / 82Annual Report 2024
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MANAGEMENT’S
REVIEW
Notes • Invested capital
Amounts in DKK thousands
13. LEASES
LEASED ASSETS Properties
Operating
equipment,
etc. Total
Carrying amount at 1 January 2024 406,502 152,507 559,009
Foreign currency translation adjustments -3,602 -190 -3,792
Additions 67,155 14,945 82,100
Depreciation for the year -125,588 -30,672 -156,260
Disposals -11,701 -662 -12,363
Carrying amount at 31 December 2024 332,766 135,928 468,694
Carrying amount at 1 January 2023 301,804 23,722 325,526
Foreign currency translation adjustments -4,820 -286 -5,106
Additions 260,074 148,175 408,249
Depreciation for the year -118,982 -18,059 -137,041
Disposals -31,575 -1,045 -32,620
Carrying amount at 31 December 2023 406,501 152,507 559,008
LEASE LIABILITIES
Expected maturity: 2024 2023
0-1 years 155,940 162,683
1-5 years 296,370 356,788
Over 5 years 57,272 80,834
Total non-discounted lease liability 509,582 600,305
Lease liability recognised in the balance sheet
Short-term 142,432 148,334
Long-term 329,964 406,811
472,396 555,145
AMOUNT RECOGNISED IN THE INCOME STATEMENT
Interest expenses relating to lease liabilities 15,286 8,296
Lease payments not recognised as part of the lease liability 38,656 36,371
53,942 44,667
For 2024, the Group has paid DKK 163.9 million in relation to leases, of which interest payments related to recognised
lease liabilities of DKK 15.3 million, and repayments of recognised lease liabilities of DKK 148.6 million.
For 2023, the Group has paid DKK 154.5 million in relation to leases, of which interest payments related to recognised
lease liabilities of DKK 8.3 million, and repayments of recognised lease liabilities of DKK 146.2 million.
DK Company 44 / 82Annual Report 2024
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Notes • Invested capital
Amounts in DKK thousands
14. INVESTMENTS IN OTHER ENTITIES
Statement of Comprehensive Income, etc. 2024 Revenue
Profit for
the year
Total com-
prehensive
income
Minority
interests’
share of
profit for
the year
Dividend
paid to
minority
interests’
Østfold Mote AS (DK Company Vejle Group), (Norway, 50% ownership, minority interest) 43,240 2,883 2,883 1,442 1,989
DSM CPH 1 ApS (DK Company Retail Group), (Denmark, 19.5% ownership, minority interest) 57,737 3,209 3,209 626 488
DK Company Vejle A/S, (Denmark, 13.1% ownership, minority interest) 1,216,997 103,780 118,347 12,494 0
Meinemarkenmode GmbH (DK Company Vejle Group), (Germany, 24.9% ownership, minority interest) 671,417 11,005 11,005 2,740 0
Other subsidiaries that are individually immaterial 1,244 1,799
18,546 4,276
Balance Sheet 2024
Non-current
assets
Current
assets
Non-current
liabilities
Current
liabilities
Carrying
amount of
minority
interests
Østfold Mote AS (DK Company Vejle Group), (Norway, 50% ownership, minority interest) 1,287 9,653 0 7,509 1,716
DSM CPH 1 ApS (DK Company Retail Group), (Denmark, 19.5% ownership, minority interest) 4,757 12,454 20 6,786 2,029
DK Company Vejle A/S. (Denmark, 13.1% ownership, minority interest) 360,307 497,458 33,572 401,195 55,413
Meinemarkenmode GmbH (DK Company Vejle Group), (Germany, 24.9% ownership, minority interest) 415 353,926 0 237,903 28,993
Other subsidiaries that are individually immaterial 2,108
90,259
DK Company 45 / 82Annual Report 2024
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Notes • Invested capital
Amounts in DKK thousands
14. INVESTMENTS IN OTHER ENTITIES, CONTINUED
Statement of Comprehensive Income, etc. 2023 Revenue
Profit for
the year
Total com-
prehensive
income
Minority
interests’
share of
profit for
the year
Dividend
paid to
minority
interests’
Østfold Mote AS (DK Company Vejle Group), (Norway, 50% ownership, minority interest) 45,348 3,799 3,799 1,899 1,724
DSM CPH 1 ApS (DK Company Retail Group), (Denmark, 19.5% ownership, minority interest) 51,650 2,280 2,280 445 722
DK Company Vejle A/S, (Denmark, 13.1% ownership, minority interest) 1,201,080 102,573 111,507 12,903 13,100
Meinemarkenmode GmbH (DK Company Vejle Group), (Germany, 24.9% ownership, minority interest) 577,622 22,636 22,636 5,636 0
Other subsidiaries that are individually immaterial 1,378 1,624
22,261 17,170
Balance Sheet 2023
Non-current
assets
Current
assets
Non-current
liabilities
Current
liabilities
Carrying
amount of
minority
interests
Østfold Mote AS (DK Company Vejle Group), (Norway, 50% ownership, minority interest) 2,042 10,546 0 7,974 2,307
DSM CPH 1 ApS (DK Company Retail Group), (Denmark, 19.5% ownership, minority interest) 3,514 11,166 54 4,929 1,891
DK Company Vejle A/S, (Denmark, 13.1% ownership, minority interest) 351,884 485,686 40,090 484,680 40,977
Meinemarkenmode GmbH (DK Company Vejle Group), (Germany, 24.9% ownership, minority interest) 627 278,069 0 173,364 26,228
Other subsidiaries that are individually immaterial 3,069
74,472
DK Company 46 / 82Annual Report 2024
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Notes • Invested capital
Group subsidiaries
Place of
registered office
Owner-
ship
Ownership
subgroup Currency
Share capital
(1,000)
Companys Retail AG Switzerland 100% CHF 100
DK Company Canada Inc. Canada 100% CAD 2,200
DK Company Con A/S Denmark 100% DKK 600
DK Company France Sarl France 100% EUR 10
DK Company Germany GmbH Germany 100% EUR 13
DK Company Shanghai Ltd. China 100% RMB 1,282
DKC Norway AS Norway 100% NOK 100
DK COMPANY CPH GROUP:
DK Company Cph A/S Denmark 100% DKK 18,000
DK Company Belgium NV Belgium 100% EUR 3,305
DK Company Finland OY Finland 100% EUR 600
DK Company Norge AS Norway 100% NOK 30
Romerike Mote AS Norway 100% NOK 200
DK Company Sweden AB Sweden 100% SEK 10,000
Charlottenberg Fashion AB Sweden 100% SEK 100
DKC Germany GmbH Germany 100% EUR 25
DK Company Austria GmbH Austria 100% EUR 10
DK Company B.V. The Netherlands 100% EUR 10
TOG Clothing (UK) Ltd. UK 100% GBP 100
DK COMPANY ONLINE GROUP:
DK Company Online A/S Denmark 100% DKK 26,500
DK Company Online AB Sweden 100% SEK 200
DK Company Online AG Switzerland 100% CHF 100
DK Company Online AS Norway 100% NOK 100
DK Company Online B.V. The Netherlands 100% EUR 227
DK Company Online GmbH Germany 100% EUR 52
DK COMPANY RETAIL GROUP:
DK Company Retail A/S Denmark 100% DKK 16,100
DSM CPH 1 ApS Denmark 80.5% DKK 500
Common Company ApS Denmark 70% DKK 80
MISS O. GROUP:
Miss O ApS Denmark 100% DKK 1,664
Trendmatch ApS Denmark 70% DKK 83
Place of
registered office
Owner-
ship
Ownership
subgroup Currency
Sharecapital
(1,000)
DK COMPANY VEJLE GROUP:
DK Company Vejle A/S Denmark 86,9% DKK 8,550
DK Company Málaga S.L. Spain 100% EUR 4
DKV Norway AS Norway 100% NOK 100
DK Company Vejle Switzerland AG Switzerland 100% CHF 100
DKC Sweden AB Sweden 100% SEK 100
DKC Vejle Belgium NV Belgium 100% EUR 62
DKV Company Canada Inc. Canada 100% CAD 0
DKV France SARL France 100% EUR 1
DKV France Agency SAS France 60% EUR 100
DKV Germany GmbH Germany 100% EUR 25
Meinemarkenmode GmbH Germany 70% EUR 200
Scandinavian Fashion Commerce Inc. USA 70% USD 6
DKV Retail A/S Denmark 100% DKK 500
DKV Retail II A/S Denmark 100% DKK 500
DKV UK LTD UK 100% GBP 50
DK Company Vejle USA Inc. USA 100% USD 6
DKV Retail Norway AS Norway 100% NOK 2,600
b.young Retail Norway AS Norway 100% NOK 200
Ichi Retail Norway AS Norway 100% NOK 601
Fransa Retail Norway AS Norway 100% NOK 100
Motedrift AS Norway 100% NOK 100
Solid Retail Norway AS Norway 100% NOK 300
Tromsø Mote AS Norway 100% NOK 100
Harstad Mote AS Norway 100% NOK 350
Bodø Mote AS Norway 100% NOK 400
Partner Mote AS Norway 100% NOK 200
Tromsø Tekstil AS Norway 100% NOK 100
Hammerfest Mote AS Norway 100% NOK 200
Steinkjer Mote AS Norway 50% NOK 200
Vennesla Mote AS Norway 50% NOK 300
Vestby Mote AS Norway 50% NOK 600
Vågsbygd Mote AS Norway 50% NOK 600
Østfold Mote AS Norway 50% NOK 600
Åkra Mote AS Norway 50% NOK 500
In companies with a 50% equity interest, DK Company Vejle A/S has control through DKV Retail Norway AS.
The accounts of all subsidiaries were closed at 31 December.
DK Company 47 / 82Annual Report 2024
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This section of the annual report contains
notes relating to the Group’s capital structure.
The following notes are presented in
this section:
15. Financial income
16. Financial expenses
17. Contract assets and liabilities
18. Equity
19. Debt from financing activities
FINANCIAL INCOME AND EXPENSES
Financial income and expenses include
interest income and expenses, the interest
element of finance lease payments, realised
and unrealised gains and losses, including am-
ortisation additions or deductions on liabilities
and transactions in foreign currencies other
than exchange differences in trade receivables
and trade payables recognised under revenue
and cost of sales, respectively. Moreover,
interest charges and reimbursements under
the on-account tax scheme are recognised as
financial income and expenses.
Interest income and expenses are accrued
based on the principal and the effective
interest rate. The effective interest rate is
the discount rate to be used to discount
the expected future payments linked to the
financial asset or liability in order for the net
present value of these to correspond to the
carrying amounts of the asset and the liability,
respectively.
Notes • Capital structure
• Level 3: Value based on generally accept-
ed valuation methods and reasonable
estimates (non-observable market infor-
mation).
FAIR VALUE MEASUREMENT
The Group applies the fair value concept in
connection with certain disclosure require-
ments and for the recognition of financial
instruments. Fair value is defined as the price
obtainable by selling an asset or payable for
transferring a liability in a normal transaction
between market participants (‘exit price’). Fair
value is a market-based and not an entity-spe-
cific measurement. The entity applies the
assumptions that market participants would
make use of when pricing the asset or liability
on the basis of existing market conditions,
including assumptions regarding risks. Thus,
when calculating fair value, the entity’s inten-
tion of owning the asset or settling the liability
is not taken into account.
The fair value assessment is based on the
primary market. If no primary market exists,
the assessment is based on the most ad-
vantageous market, being the market that
maximises the price of the asset or liability less
transaction and transport costs.
All assets and liabilities measured at fair value
or for which fair value is disclosed, are catego-
rised by the fair value hierarchy, as described
below:
• Level 1: Value based on the market value
of similar assets/liabilities in a well-func-
tioning market.
• Level 2: Value based on generally accept-
ed valuation methods on the basis of
observable market information.
DK Company 48 / 82Annual Report 2024
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Notes • Capital structure
Amounts in DKK thousands
Dividends distributed for the year amounted to DKK 200 million compared to DKK 186.9 million last year.
Dividends distributed per share equals DKK 33.3 compared to DKK 31.2 last year.
It is proposed for this year to distribute dividends of DKK 200 million for the financial year compared to DKK 200
million last year.
The share capital is fully paid up.
RESERVES
Dividends
Dividend is recognised as a liability when a resolution approving the dividend has been adopted by the Annual Gen-
eral Meeting of shareholders (the time of declaration). Dividend proposed for distribution for the year is disclosed as
a separate equity item until adopted by the Annual General Meeting.
Foreign currency translation reserves
The foreign currency translation reserve comprises the parent shareholders’ share of exchange differences occurring
from translation of financial statements of entities stated in a functional currency other than DKK, exchange adjust-
ments regarding assets and liabilities which form part of the Group’s net investments in such entities and exchange
adjustments regarding hedging transactions which hedge the Group’s net investments in such entities.
The reserve is dissolved through divestment of foreign entities or if the conditions for effective hedging have ceased
to exist.
Hedging reserves
The hedging reserve includes the accumulated net change in the fair value of hedging transactions which meet the
criteria for hedging future cash flows, with the transaction hedged not having been realised yet.
The reserve will be dissolved when the secured transaction is realised, if the secured cash flows are no longer expect-
ed to be realised or the hedging conditions are no longer effective.
17. CONTRACT ASSETS AND LIABILITIES 2024 2023
RECONCILIATION OF CONTRACT ASSETS AND LIABILITIES
Contract assets:
Receivables included in trade receivables 299,081 505,321
Other contract assets:
Refund assets 23,187 22,368
322,268 527,689
Contract liabilities:
Prepayments received from customers 940 1,149
Other contract liabilities:
Refund liabilities 61,113 57,901
62,053 59,050
18. EQUITY
No. (1,000) Nominal value
SHARE CAPITAL
2024 2023 2024 2023
Share capital at 1 January 6,000 6,000 60,000 60,000
Share capital at 31 December 6,000 6,000 60,000 60,000
The share capital is distributed as follows:
6,000,000 shares of DKK 10 60,000 60,000
60,000 60,000
15. FINANCIAL INCOME 2024 2023
Other interest income 46,395 34,993
Interest income from financial assets not measured at fair value through profit or
loss
46,395 34,993
Foreign exchange gains and fair value adjustment of financial instruments 38,282 3,653
84,677 38,646
16. FINANCIAL EXPENSES DKK 1,000 2024 2023
Interest expenses, lease liabilities 15,286 8,296
Other interest expenses 43,003 36,443
Interest expenses from financial liabilities not measured at fair value through profit
or loss 58,289 44,739
Foreign exchange loss and fair value adjustment of financial instruments 7,901 13,113
66,190 57,852
DK Company 49 / 82Annual Report 2024
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Notes • Capital structure
Amounts in DKK thousands
19. DEBT FROM FINANCING ACTIVITIES
Non-cash changes
2024
Beginning
of year Cash flows
Other
additions and
disposals End of year
Lease liabilities 555,145 -152,486 69,737 472,396
555,145 -152,486 69,737 472,396
Non-cash changes
2023
Beginning
of year Cash flows
Other
additions and
disposals End of year
Lease liabilities 330,906 -151,390 375,629 555,145
330,906 -151,390 375,629 555,145
DK Company 50 / 82Annual Report 2024
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This section of the annual report contains
notes relating to the Group’s taxation.
The following notes are presented in this
section:
20. Tax on profit/loss for the year
21. Deferred tax
TAX
Tax on profit/loss for the year
DK Company A/S is taxed jointly with all its
Danish subsidiaries and the parent Jens
Poulsen Holding ApS as administration com-
pany. The current corporation tax is allocated
to the jointly taxed enterprises in proportion
to their taxable incomes. The jointly taxed
companies are included in the on-account
taxation scheme.
Tax for the year consists of current tax for
the year and any changes in deferred tax. In
addition, tax for the year consists of changes
to tax of previous years and changes in the
assessment of provisions for uncertain tax po-
sitions. Tax for the year is recognised in profit
for the year, in other comprehensive income
or directly in equity, depending on where the
transaction to which tax for the year relates is
recognised.
Tax payable and deferred tax
Current tax liabilities and receivables are rec-
ognised in the balance sheet as tax calculated
on the taxable income for the year, adjusted
for tax on the taxable income of previous years
and for taxes paid on account.
The tax rates and tax rules in force on the
balance sheet date will be applied when cal-
culating current tax for the year.
Deferred tax is measured under the balance
sheet liability method on the basis of all
temporary differences between the carrying
amounts and the tax bases of assets and lia-
bilities. However, no deferred tax is recognised
on temporary differences relating to goodwill
not deductible for tax purposes, or other items
where temporary differences – except in the
case of business combinations – have arisen at
the date of acquisition and affect neither the
net profit or loss nor the taxable income.
Deferred tax on temporary differences
associated with investments in subsidiaries
is recognised, unless the parent is able to
control when deferred tax is realised and it is
likely that deferred tax will not be triggered as
current tax in the foreseeable future.
Deferred tax is determined on the basis of the
contemplated use of the individual asset and
settlement of the individual liability.
Deferred tax is measured on the basis of
the tax rules and tax rates of the respective
countries that under the laws adopted or
in reality adopted at the balance sheet date
would be applicable when the deferred tax is
expected to crystallise as current tax. Changes
in deferred tax as a result of changes in tax
rates or tax rules are recognised in the profit
or loss, unless the deferred tax is attributable
to transactions previously recognised in other
comprehensive income or directly in equity.
If the latter is the case, the change is also
recognised in other comprehensive income or
directly in equity.
Deferred tax assets, including the tax base of
tax loss carry-forwards, are recognised under
other non-current assets at the values at
which the assets are expected to be realised,
either by set-off against deferred tax liabilities
or as net tax assets by set-off against future
positive taxable income. It will be assessed on
each balance sheet date whether it is prob-
able that in future, sufficient taxable income
will be generated for the deferred tax asset to
be utilised.
Uncertain tax positions are measured,
depending on the type, either as a probabili-
ty-weighted average of possible outcomes or
as the most likely outcome. Uncertain tax posi-
tions are recognised in the tax items to which
they relate, i.e. under current tax payable/
receivable and/or deferred tax liabilities/assets,
respectively.
Notes • Tax
DK Company 51 / 82Annual Report 2024
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Notes • Tax
Amounts in DKK thousands
20. TAX ON PROFIT FOR THE YEAR 2024 2023
Current tax for the year 128,486 113,925
Change in deferred tax for the year -6,442 1,112
Adjustment of tax relating to previous years 893 425
Tax on profit for the year 122,937 115,462
The tax on profit for the year can be explained as follows:
Tax rate of 22.0% on the profit before tax 117,849 107,093
Adjustment of calculated tax in foreign group enterprises in relation
to 22.0% and profit from associates 5,494 7,293
Tax effect of:
Non-taxable income 17 -13
Non-deductible expenses 201 794
Deferred tax asset not recognised -1,517 -130
Adjustment of tax relating to previous years 893 425
Tax on profit for the year 122,937 115,462
Effective tax rate 23.0% 23.7%
Total tax for the year includes the following:
Tax on profit/loss for the year, see above 122,937 115,462
Tax on other comprehensive income, see below 8,339 2,655
131,276 118,117
Tax on fair value adjustments of hedging instruments 8,339 2,655
Tax on other comprehensive income 8,339 2,655
EXHAUSTIVE PRESENTATION OF INCOME TAXES PAID BY COUNTRY 2024 2023
Denmark 89,433 176,899
Norway 6,774 7,209
Sweden 2,178 1,794
Germany 10,626 15,579
Belgium 4,002 1,476
Netherlands 1,068 107
Finland 475 179
UK 2,620 990
Spain 439 668
Canada 2,193 4,130
Switzerland -14 47
France 1,328 1,826
USA 1,181 2,440
China 33 0
122,336 213,344
DK Company 52 / 82Annual Report 2024
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Notes • Tax
Amounts in DKK thousands
The Group has prepared an impairment test of deferred tax assets which shows that the losses with reasonable cer-
tainty will be realised in the foreseeable future, and thus the requirement of convincing evidence for the recognition
of deferred tax assets is considered met.
Provision for deferred tax is by the Danish companies made at the tax rate at which temporary differences are
expected realised on the basis of the adopted corporation tax rate of 22%. The same applies to the Norwegian
companies in the Group, whose corporate tax rates are 22% and to the Group’s Swedish companies, whose corporate
tax rates are 20.6%.
Deferred tax assets not recognised in the balance sheet:
2024 2023
Tax losses 267 1,004
267 1,004
The above tax assets have not been recognised, as it is considered improbable that they will be used in taxable
income in the foreseeable future.
2024
Balance Sheet
1. January
Correction
beginning of year
Foreign currency
translation
adjustments
Recognised
in profit/loss for
the year
Recognised in
other compre-
hensive income
Acquisition
and sale of
enterprises, etc.
Balance Sheet
31. December
Intangible assets -26,586 -258 -93 1,761 0 0 -25,176
Property, plant and equipment 10,643 0 37 3,141 0 0 13,821
Inventories 684 0 2 -4,158 0 0 -3,472
Receivables 1,424 0 5 856 0 0 2,285
Other current assets -164 0 -1 8,389 -8,339 0 -115
Other liabilities 5,327 0 19 -4,015 0 0 1,331
Tax losses -89 0 0 89 0 0 0
Retaxation liability -2,408 0 -8 379 0 0 -2,037
-11,169 -258 -39 6,442 -8,339 0 -13,363
2023
Balance Sheet
1. January
Correction
beginning of year
Foreign currency
translation
adjustments
Recognised
in profit/loss for
the year
Recognised in
other compre-
hensive income
Acquisition
and sale of
enterprises, etc.
Balance Sheet
31. December
Intangible assets -31,823 85 -708 5,860 0 0 -26,586
Property, plant and equipment
10,868 0 242 -467 0 0 10,643
Inventories 7,626 0 170 -7,112 0 0 684
Receivables 823 0 18 583 0 0 1,424
Other current assets -277 0 -6 2,774 -2,655 0 -164
Other liabilities 7,426 0 165 -2,264 0 0 5,327
Tax losses 195 0 4 -288 0 0 -89
Retaxation liability -2,162 0 -48 -198 0 0 -2,408
-7,324 85 -163 -1,112 -2,655 0 -11,169
21. DEFERRED TAX 2024 2023
Deferred tax at 1 January -11,169 -7,324
Correction beginning of year -258 85
Foreign currency translation adjustments -39 -163
Deferred tax for the year recognised in profit/loss for the year 6,442 -1,112
Deferred tax for the year recognised in other comprehensive income -8,339 -2,655
Deferred tax at 31 December -13,363 -11,169
Deferred tax is recognised as follows in the balance sheet:
Deferred tax assets 8,930 4,545
Deferred tax liabilities -22,293 -15,714
-13,363 -11,169
Deferred tax and movements in temporary differences can be specified as follows:
DK Company 53 / 82Annual Report 2024
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MANAGEMENT’S
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This section of the annual report contains oth-
er mandatory notes that do no fall within the
scope of the other sections of the report.
The following notes are presented in this
section:
22. Adjustment for non-cash transactions
23. Security
24. Contingent assets and liabilities
25. Acquisitions of enterprises
26. Financial risks
27. Related parties
28. Fee to auditors appointed at the annual
general meeting
29. Subsequent events
30. New accounting regulation
31. Shareholder information
32. Adoption of the annual report for publica-
tion
Provisions
Provisions are recognised when, in conse-
quence of events occurring in the financial
year or previous years, the Group is under a
legal or constructive obligation, and it is prob-
able that the financial resources of the Group
will be drawn on to settle the obligation. Pro-
visions are measured as best estimate of the
expenses necessary to settle the obligations
on the balance sheet date. Provisions with
expected maturity more than one year after
the balance sheet date are measured at net
present value.
Notes • Other notes to the consolidated nancial statements
Deferred income
Deferred income, recognised under
liabilities, includes received income relating
to subsequent financial years. Deferred
income is measured at cost.
Other contract liabilities
Other contract liabilities cover return obliga-
tions concerning goods that are expected to
be returned based on historical experience on
actual return percentages and product mix.
Return obligations are measured as the sales
price of the underlying items.
Other financial liabilities
Other financial liabilities include debt to
credit institutions, trade payables and other
debt to public authorities, etc. Other financial
liabilities are initially measured at fair value less
any transaction costs. In subsequent periods,
the liabilities are measured at amortised cost
using “the effective interest method” so that
the difference between the proceeds and the
nominal value is recognised in the income
statement as financial expenses over the loan
term.
Pension obligations, etc.
The Group has entered into pension agree-
ments and similar agreements with the main
part of its employees.
As regards defined contribution plans, fixed
contributions are paid regularly to indepen-
dent pension companies, etc. Contributions
are recognised in the income statement
for the period in which the employees have
performed the service entitling them to
the pension contribution. Amounts due are
recognised in the balance sheet under other
liabilities. The Group has no defined benefit
plans.
DK Company 54 / 82Annual Report 2024
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Notes • Other notes to the consolidated nancial statements
Amounts in DKK thousands
25. ACQUISITIONS OF ENTERPRISES
The DK Company A/S Group has not acquired any enterprises of a significant nature in 2024.
The DK Company A/S Group has not acquired any significant enterprises after the balance sheet date.
23. SECURITY
Security has been provided for rental obligations, etc. for a total of DKK 71,5 million and DKK 78 million last year.
24. CONTINGENT ASSETS AND LIABILITIES
Other contingent assets
None other than the deferred not recognised tax assets referred to in note 21.
Other contingent liabilities
The Group is jointly taxed with its parent Jens Poulsen Holding ApS as administration company and is jointly and
severally liable with other jointly taxed companies for payment of corporation tax as from the accounting period of
2013, as well as for withholding tax on interest, royalties and dividends falling due on or after 1 July 2012. At 31 Decem-
ber 2024, the total amount outstanding in joint corporation tax is DKK 6.4 million compared to last year’s DKK 0.7
million.
The Group has entered into agreements on continuous consideration where the consideration does not meet the
criteria for recognition in the income statement and balance sheet as leased assets under IFRS 16. These agreements
primarily concern logistics setup and access to sales channels. At 31 December 2024, the total liability concerning
future payments for these commitments amounts to DKK 112 million and DKK 84 million last year.
The Group has entered into agreements (letters of credit) for supplies of DKK 180.9 million compared with DKK 101.2
million last year.
22. ADJUSTMENTS AND NONCASH TRANSACTIONS
2024 2023
Depreciation, amortisation and impairment losses on intangible assets as well as proper-
ty, plant and equipment 200,426 168,602
Gain on disposal of intangible assets and property, plant and equipment 282 -2,197
Loss on disposal of intangible assets and property, plant and equipment -107 2,570
Financial income -84,677 -38,646
Financial expenses 66,204 57,852
Other adjustments 25,277 -9,115
207,405 179,066
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Notes • Other notes to the consolidated nancial statements
Amounts in DKK thousands
26. FINANCIAL RISKS 2024 2023
Categories of financial instruments
ASSETS
Derivative financial instruments (assets) 56,454 0
Hedge instruments measured at fair value concluded to hedge future cash flows 56,454 0
Trade receivables 299,081 505,321
Receivables from group enterprises 980 980
Other receivables 191,088 112,230
Cash 386,983 216,029
Financial assets measured at amortised cost 878,132 834,560
LIABILITIES
Derivative financial instruments (liabilities) 0 14,967
Hedge instruments measured at fair value concluded to hedge future cash flows 0 14,967
Lease liabilities 472,396 555,145
Trade payables 680,239 537,931
Financial liabilities, measured at amortised cost 1,152,635 1,093,076
Risk management policy of the Group
As a result of its operations, investment and financing, the Group is exposed to changes in exchange rates and in-
terest rates. The Group’s policy is not to speculate actively in financial risks. The Group’s financial management thus
focuses on the management of financial risks related to operations and financing.
For a description of accounting policies and methods, including the recognition criteria and bases of measurement
used, please see the accounting policies.
No changes have been made to the Group’s risk exposure or risk management compared to 2023.
DK Company 56 / 82Annual Report 2024
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Notes • Other notes to the consolidated nancial statements
Amounts in DKK thousands
Currency risks
The Group’s foreign currency risks are handled centrally by the Group finance department. Activities carried out by the Group’s Danish companies are affected
by exchange rate changes, as some revenue and the majority of the purchase of goods are made in foreign currency, while other expenses, including salary
and wages, are primarily incurred in Danish kroner. The Group is also affected by changes in exchange rates, as the profits/losses for the year of foreign group
enterprises are translated into Danish kroner on the basis of average prices. The Group’s foreign currency risks are managed centrally and hedged primarily
as a result of revenue and expenses incurred in the same currency as well as through the use of derivative financial instruments. In accordance with a foreign
exchange policy approved by the Board of Directors, foreign currency risks are hedged so that currency positions are hedged as much as possible for up to 18
months.
The Group’s foreign currency risks in the balance sheet can be shown as follows:
26. FINANCIAL RISKS, CONTINUED
Nominal currency
positions at
31.12.2024
Sensitivity analysis
Cash and cash
equivalents and
receivables
Liabilities (non-
derivatives) Total
Likely change
in exchange rate
Hypothetical impact on profit/loss
for the year on equity
USD/DKK 39,403 -403,628 -364,225 +10% -28,410 -28,410
NOK/DKK 119,857 -116,838 3,019 +10% 235 235
SEK/DKK 47,906 -27,601 20,305 +10% 1,584 1,584
EUR/DKK 552,807 -303,937 248,870 +2% 3,882 3,882
Others 137,636 -150,725 -13,089 +10% -1,021 -1,021
897,609 -1,002,729 -105,120 -23,730 -23,730
Nominal currency
positions at
31.12.2023
Sensitivity analysis
Cash and cash
equivalents and
receivables
Liabilities (non-
derivatives) Total
Likely change in
exchange rate
Hypothetical impact on profit/loss
for the year on equity
USD/DKK 26,009 -298,893 -272,884 +10% -21,285 -21,285
NOK/DKK 105,774 -106,040 -266 +10% -21 -21
SEK/DKK 94,443 -70,056 24,387 +10% 1,902 1,902
EUR/DKK 460,024 -308,959 151,065 +2% 2,357 2,357
Others 158,740 -58,547 100,193 +10% 7,815 7,815
844,990 -842,495 2,495 -9,232 -9,232
DK Company 57 / 82Annual Report 2024
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Notes • Other notes to the consolidated nancial statements
Sensitivity analysis of foreign currency
The assumptions applied to the sensitivity analysis are unchanged sales, price levels and interest rates.
The Group's main currency exposure relates to purchases in USD and EUR and sales in NOK, SEK and EUR. The
above sensitivity analysis shows the net effect on profit/loss for the year and equity, had the exchange rate of the
currencies concerned been 10% higher at the end of the year than the exchange rate actually applied. 10% is the
sensitivity factor used in the internal reporting of foreign currency risks. The specified impact contains the effect of
transactions concluded for the purpose of foreign currency hedging. Had the rate been 10% lower than the actual
rate, this would have had a corresponding negative net impact on profit/loss for the year and equity, respectively.
Interest rate risk
The Group's interest rate risk is monitored by the finance department in accordance with the Group's policies in this
area.
The Group’s financial assets and financial liabilities are floating-rate only and therefore considered to be subject to
interest rate adjustments within one year.
The Group’s interest rate risk relates to the interest-bearing debt. The Group’s net dept portfolio consists of short-
term net debt to credit institutions. Sensitivity of an interest rate change of +/- 1% amounts to approx. DKK -3.9
million and DKK -2.2 million last year.
Credit risks
The Group's credit risks are partly related to receivables and derivative financial instruments with positive fair value.
The maximum credit risk related to financial assets corresponds to the values recognised in the balance sheet.
The Group has no significant risks relating to a single customer or business partner. The Group’s policy for assuming
credit risks entails that all customers are as a general rule covered by credit insurance taken out with external busi-
ness partners.
In some instances, the Group receives collateral for sale on credit, and security received is included in the assess-
ment of the requirement for a provision for bad debt. The maximum credit risk is reflected in the carrying amount of
each financial asset included in the balance sheet.
26. FINANCIAL RISKS, CONTINUED
2024
Carrying
Amount
Contractual
cash flow 0-1 years 1-5 years After 5 years
Non-derivative financial instruments
Lease liabilities 472,396 509,582 155,940 296,370 57,272
Trade payables 680,239 680,239 680,239 0 0
1,152,635 1,189,821 836,179 296,370 57,272
2023
Non-derivative financial instruments
Lease liabilities 555,145 600,305 162,683 356,788 80,834
Trade payables 537,931 537,931 537,931 0 0
1,093,076 1,138,236 700,614 356,788 80,834
Carrying amount 2024 2023
Trade receivables 299,081 505,321
Receivables from group enterprises 980 980
Other receivables 191,088 112,230
491,149 618,531
Note 7 shows the geographical distribution of trade receivables and the non-impaired receivables.
Liquidity risk
Due dates of financial liabilities are specified below, broken down by the time intervals applied in connection with
the Group's cash management. The specified amounts represent the amounts due for payment including interest,
etc.
DK Company 58 / 82Annual Report 2024
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Notes • Other notes to the consolidated nancial statements
Optimisation of capital structure
The Company’s management assesses on a current basis whether the Group’s capital structure is in accordance
with the interests of the Company and its shareholders. The overall goal is to ensure a capital structure that supports
long-term economic growth while maximising return to the Group’s stakeholders by optimising the relationship
between equity and debt. The Group’s overall strategy remains unchanged compared to last year.
The Group's capital structure consists of debt that includes call loans from the Company's credit institutions, includ-
ing lease liabilities, as well as cash and equity.
The Company's Board of Directors continuously reviews the Group's capital structure and assesses the Group's costs
of capital and the risks associated with each type of capital. The Group’s objective is to operate with gearing in the
range of -0.5 - 2.5 measured as the ratio of net interest-bearing debt and profit/loss before depreciation, amortisation
and financial income and expenses.
Such gearing is determined as follows:
2024 2023
Credit institutions 472,396 555,145
Cash -386,983 -216,029
Net interest-bearing debt 85,413 339,116
Profit before depreciation, amortisation and financial
income and expenses
717,628 674,594
Gearing 0.1 0.5
Another financial benchmark is the solvency ratio, which is
calculated as follows:
Equity excluding minorities 1,265,392 1,050,426
Total assets 3,030,411 2,877,657
Solvency ratio (%) 41.8 36.5
A third financial benchmark is the borrowing base,
which is calculated as follows:
Net interest-bearing debt 85,413 339,116
Inventories 1,212,225 1,047,806
Trade receivables 299,081 505,321
Trade payables -680,239 -537,931
831,067 1,015,196
Borrowing base 0.1 0.3
26. FINANCIAL RISKS, CONTINUED
Derivative financial instruments meeting hedging requirements
The Group has concluded foreign currency hedging agreements that meet the criteria for hedge accounting. The
fair value adjustment is recorded directly in equity and will be recognised as the financial contracts are realised. The
open forward exchange contracts may be specified as follows:
2024 Residual maturity Contractual value Fair value
Currency risks:
USD 0-12 months 856,586 51,994
SEK 0-12 months -192,953 2,426
NOK 0-14 months -132,352 1,995
GBP 0-9 months -74,394 -1,161
CHF 0-20 months -108,344 835
CAD 0-9 months -40,494 365
308,049 56,454
2023 Residual maturity Contractual value Fair value
Currency risks:
USD 0-12 months 1,046,193 -3,753
SEK 0-12 months -217,855 -4,980
NOK 0-14 months -175,144 -3,975
GBP 0-9 months -76,352 374
CHF 0-20 months -121,410 -3,067
CAD 0-9 months -52,454 434
402,978 -14,967
Positive contractual value refers to the purchase of the currency in question, and negative contractual value refers to
such sale.
Assets and liabilities measured at fair value
The Group’s derivative financial instruments exist only in the form of forward exchange contracts measured accord-
ing to generally accepted valuation techniques based on relevant observable exchange rates (fair value hierarchy
level 2). Both externally and internally calculated fair values based on discounting of future cash flows are applied.
Derivative financial instruments are recognised in other receivables and other payables.
The gains on derivative financial instruments recognised in the income statement in revenue, cost of sales, financial
income and financial expenses appear from the statement of comprehensive income for 2024 and 2023, respective-
ly.
DK Company 59 / 82Annual Report 2024
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Notes • Other notes to the consolidated nancial statements
Related party transactions
During the financial year, the Group has completed the following transactions with related parties with control over
DK Company A/S or other parties related to them:
• Rent in accordance with the ten-year lease with JP Ejendomme 2 A/S on an owner-occupied property in
Denmark. The lease is concluded on terms corresponding to market conditions for the area. Rent of DKK 9.4
million and DKK 9.1 million for 2023 was paid in the financial year. Total annual rent for lease with JP Ejendom-
me 2 A/S amounts to DKK 9.4 million and DKK 9.1 million for 2023, and lease is non-terminable until 1 February
2031.
• Use of trademark rights in return for the Group, vis-à-vis Jens Poulsen Holding ApS, undertaking to pay all
costs of maintaining and protecting the registrations of the trademarks and figurative marks. The agreement
on the right to use trademarks and figurative marks is non-terminable, but may nonetheless be terminated if
one of the parties is in material default of its obligations under the agreement. As a consequence of the Group
having undertaken to pay all costs of maintaining and protecting the registrations of the trademarks and figu-
rative marks, only a small annual fee is to be paid for such use. The trading was done on an arm’s length basis.
• Balances appear from the balance sheets as receivables from group enterprises and payables to group
enterprises. Interest on intercompany balances is disclosed in notes 15 and 16 Non-current receivables relate to
non-interest-bearing deposits regarding the above-mentioned leases. Other balances with group enterprises
are payable on demand and carry interest of approx. 4.0% per year.
In addition, ordinary management remuneration has been paid to CEO Jens Poulsen according to note 2.
Subsidiaries
Transactions with subsidiaries are eliminated from the Consolidated Financial Statements.
28. FEE TO AUDITORS APPOINTED AT THE ANNUAL GENERAL MEETING
PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab 2024 2023
Statutory audit 3,133 3,015
Other assurance engagements 145 233
Tax and VAT-related advice 829 447
Other services 983 190
5,090 3,885
Other auditors in foreign subsidiaries
Statutory audit 1,528 1,608
Other assurance engagements 0 108
Tax and VAT-related advice 1,245 1,271
Other services 125 186
2,898 3,173
7,775 7,058
All material group enterprises are audited by PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab.
Fees relating to other auditors concern local audits and consulting regarding certain foreign subsidiaries for which
PricewaterhouseCoopers, Statsautoriseret Revisionspartnerselskab is not appointed auditor.
29. SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially affect the assessment of the Annual Report.
27. RELATED PARTIES
Related parties with control
Related parties with control over DK Company A/S:
Name Place of registered office Basis of control
DKC Holding 2011 A/S La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Holding ApS La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Søbjergvej 56, Ikast-Brande Shareholder with ultimate control over DK Company
A/S
DK Company 60 / 82Annual Report 2024
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Notes • Other notes to the consolidated nancial statements
30. NEW ACCOUNTING REGULATION
At the time of publication of this Annual Report, IASB has issued a number of new IFRS standards, amendments to
existing standards and IFRIC interpretations that are not yet mandatory for DK Company A/S when preparing the
annual report for 2024.
DK Company A/S expects to implement the adopted but not yet applicable standards and interpretations in step
with their adoption by the EU and subsequent mandatory application by DK Company A/S. Where the effective
date is different in the EU from that of the IASB, implementation of the changes is contemplated after adoption
in the EU. None of the new standards or interpretations are expected to have a material effect on recognition and
measurement in DK Company A/S’ future annual reports.
31. SHAREHOLDER INFORMATION
DK Company A/S' parent is DKC Holding 2011 A/S, Ikast-Brande, holding all share capital and voting rights. The Com-
pany’s ultimate parent is Jens Poulsen Holding ApS, Ikast-Brande.
DK Company A/S has not registered other shareholders holding more than 5% of the voting rights or nominal value
of the share capital.
32. ADOPTION OF THE ANNUAL REPORT FOR PUBLICATION
At its board meeting on 16 May 2025, the Board of Directors approved this Annual Report for publication.
The Annual Report will be submitted to DK Company A/S' shareholders for approval at the Annual General Meeting
on 16 May 2025.
Parent Company Financial Statements
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DK Company 61 / 82Annual Report 2024
62 Statement of income
63 Balance sheet • Assets and liabilities
64 Statement and changes in equity
65 Notes to the parent company financial statements
DK Company 62 / 82Annual Report 2024
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Amounts in DKK thousands
Statement of income
1 January - 31 December
Note 2024 2023
2 Revenue 810,989 675,025
Costs of goods for resale -493,229 -403,556
Other external expenses -125,817 -104,895
3 Other operating income 157,303 120,581
Gross profit 349,246 287,155
4 Staff costs -213,662 -188,911
Depreciation, amortisation and impairment losses on intangible assets as well as
property, plant and equipment
-21,979 -9,717
5 Other operating expenses 0 -200
Profit before financial income and expenses 113,605 88,327
Share of profit/loss after tax in group enterprises 286,281 277,922
6 Financial income 41,537 22,899
7 Financial expenses -20,413 -20,267
Financial income and expenses, net amounts 307,405 280,554
Profit before tax 421,010 368,881
8 Tax on profit for the year -30,366 -20,305
Profit for the year 390,644 348,576
DK Company 63 / 82Annual Report 2024
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Amounts in DKK thousands
Balance sheet • Assets and liabilities
at 31 December
Note
Equity and liabilities
2024 2023
Equity
14 Share capital 60,000 60,000
Reserve for net revaluation under the equity method 637,911 468,834
Hedging reserves 12,389 -2,611
Retained earnings 201,965 175,531
Proposed dividend 200,000 200,000
Equity 1,112,265 901,754
Non-current liabilities
13 Deferred tax 3,246 276
11 Provision for negative investments in group enterprises 5,528 5,295
15 Credit institutions 61,214 61,213
Non-current liabilities 69,988 66,784
Current liabilities
15 Credit institutions 80,686 77,092
Prepayments received from customers 27 35
Trade payables 142,987 115,529
Payables to group enterprises 678,469 543,406
Corporation tax 31,226 16,157
Other payables 67,447 85,164
Current liabilities 1,000,842 837,383
Liablities 1,070,830 904,167
Total equity and liabilities 2,183,095 1,805,921
Note
Assets
2024 2023
Non-current assets
Goodwill 840 1,680
9 Intangible assets 840 1,680
Land and buildings 11,421 11,427
Leasehold improvements 42,639 45,918
Other fixtures and fittings, tools and equipment 98,894 101,875
10 Property, plant and equipment 152,954 159,220
11
Investments in subsidiaries 975,871 806,561
12
Other receivables 1,367 1,413
13
Deferred tax assets 0 0
Other non-current assets 977,238 807,974
Non-current assets 1,131,032 968,874
Current assets
Inventories 204,082 135,754
Inventories
204,082 135,754
Trade receivables 5,585 4,320
Receivables from group enterprises 276,810 357,017
Other receivables 36,612 12,984
Deferred income 6,653 5,630
Receivables 325,660 379,951
Cash 522,321 321,342
Current assets 1,052,063 837,047
Total assets 2,183,095 1,805,921
DK Company 64 / 82Annual Report 2024
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Amounts in DKK thousands
Statement and changes in equity
Share capital
Reserve for
net revaluation
under the equity
method Hedging reserves
Retained
earnings
Proposed
dividend Total equity
Equity at 1 January 2024 60,000 468,834 -2,611 175,531 200,000 901,754
Correction beginning of year 0 -991 0 0 -991
Transferred from distribution of net profit 0 164,182 0 26,462 200,000 390,644
Value adjustment of financial instruments 0 0 19,231 0 0 19,231
Tax on financial instruments 0 0 -4,231 0 0 -4,231
Exchange adjustments from translation of foreign entities 0 -5,081 0 -28 0 -5,109
Change in equity in group enterprises 0 10,967 0 0 0 10,967
Dividends distributed in the financial year 0 0 0 0 -200,000 -200,000
Equity at 31 December 2024 60,000 637,911 12,389 201,965 200,000 1,112,265
Equity at 1 January 2023
60,000 249,137 -3,090 241,044 186,900 733,991
Correction beginning of year 0 172,688 0 -172,688 0 0
Transferred from distribution of net profit 0 41,022 0 107,554 200,000 348,576
Value adjustment of financial instruments 0 0 614 0 0 614
Tax on financial instruments 0 0 -135 0 0 -135
Exchange adjustments from translation of foreign entities 0 -1,697 0 -379 0 -2,076
Change in equity in group enterprises 0 7,684 0 0 0 7,684
Dividends distributed in the financial year 0 0 0 0 -186,900 -186,900
Equity at 31 December 2023 60,000 468,834 -2,611 175,531 200,000 901,754
DK Company 65 / 82Annual Report 2024
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BALANCE SHEET
66 Note 1 - Accounting policies
INCOME STATEMENT
71 Note 2 - Revenue
71 Note 3 - Other operating income
71 Note 4 - Staff costs
71 Note 5 - Other operating costs
71 Note 6 - Financial income
71 Note 7 - Financial expenses
71 Note 8 - Tax on profit/loss for the year
72 Note 9 - Intangible assets
72 Note 10 - Property, plant and equipment
72 Note 11 - Investments in subsidiaries
73 Note 12 - Other receivables
73 Note 13 - Deferred tax
73 Note 14 - Share capital
73 Note 15 - Debt
73 Note 16 - Security
74 Note 17 - Contingent assets and liabilities
75 Note 18 - Related parties
75 Note 19 - Subsequent events
75 Note 20 - Distribution of profit
Notes to the parent company nancial statements
NOTES NOT REFERRED TO IN THE ANNUAL REPORT
Notes to the parent company nancial statements
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NOTE 1 - ACCOUNTING POLICIES
The Financial Statements for 2024 of the
parent DK Company A/S are prepared in
accordance with the provisions of the Danish
Financial Statements Act applying to enter-
prises of reporting class C (large enterprises).
The accounting policies are consistent with
those of last year.
With regards to the true and fair view of the
Financial Statements, certain reclassifications
have been made in the income statement and
notes. Comparative figures have been adjust-
ed accordingly.
RECOGNTION AND MEASUREMENT
Income is recognised in the income statement
as earned, including value adjustments of
financial assets and liabilities. Moreover, all
expenses incurred are recognised in the
income statement, including depreciation,
amortisation, impairment losses and pro-
visions as well as reversals due to changed
accounting estimates of amounts previously
recognised in the income statement.
Assets are recognised in the balance sheet
when it is probable that future economic
benefits attributable to the asset will flow to
the Company, and the value of the asset can
be measured reliably.
Liabilities are recognised in the balance sheet
when it is probable that future economic
benefits will flow out of the Company, and the
value of the liability can be measured reliably.
Assets and liabilities are initially measured at
cost. Subsequently, assets and liabilities are
measured as described below for each item.
Certain financial assets and liabilities are
measured at amortised cost, which involves
the recognition of a constant effective interest
rate over the maturity period. Amortised cost is
calculated as original cost less any repayments
and with addition/deduction of the accumu-
lated amortisation of any difference between
cost and the nominal amount. Capital losses
and gains are thus allocated over the terms of
the asset or liability.
Recognition and measurement take into
account predictable losses and risks occurring
before the presentation of the Financial State-
ments which concern affairs and conditions
existing at the balance sheet date.
The Annual Report is presented in Danish
kroner (DKK), which is also the functional
currency of the parent. All other currencies are
regarded as foreign currencies.
TRANSLATION POLICIES
On initial recognition, foreign currency trans-
actions are translated applying the exchange
rate at the transaction date. Exchange dif-
ferences arising due to differences between
the transaction date rates and the rates at
the dates of payment are recognised in the
income state-ment. If foreign exchange
positions are considered hedges of future cash
flows, the value adjustments are recognised
directly in equity.
Receivables, payables and other monetary
items denominated in foreign currency which
have not been settled at the balance sheet
date are measured at the closing rate. Any
differences between the exchange rates at the
balance sheet date and the rates at the dates
when the receivables or the payables arose
or at which they were recognised in the latest
financial statements are recognised in the
income statement.
Intangible assets and property, plant and
equipment purchased in foreign currencies
are translated at the exchange rates at the
dates of transaction.
If the foreign group enterprises meet the
criteria for legal entities, the income state-
ments are converted at an average exchange
rate for the month, and the balance sheet
items are translated at the exchange rates on
the balance sheet date. Currency translation
differences arising on the translation of the
opening equity of foreign group enterprises at
the exchange rates on the balance sheet date
and on the translation of income statements
from average exchange rates to the exchange
rates on the balance sheet date are recognised
directly in equity.
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial instruments are initially
recognised in the balance sheet at cost and
are subsequently remeasured at their fair val-
ues. Positive and negative fair values of deriva-
tive financial instruments are included in other
receivables and other payables, respectively.
Changes in fair values of derivative finan-
cial instruments that are meant to hedge
recognised assets or liabilities are recognised
in the income statement as are any changes
in the fair value of the hedged asset or the
hedged liability.
Changes in fair values of derivative financial in-
struments that are meant to hedge future as-
sets and liabilities are recognised in receivables
or payables as well as in equity. If the future
transaction results in the recognition of assets
or liabilities, amounts recognised in equity are
transferred from equity and recognised in the
cost of the asset or the liability, respectively.
If the future transaction results in income or
expenses, amounts recognised in equity are
transferred to the income statement in the
period in which the hedged item affects the
income statement.
INCOME STATEMENT
Revenue
The Company’s revenue stems from the sale
of goods for resale in the textile industry.
Revenue is recognised when control of the in-
dividually identifiable performance obligation
set out in the sales agreement passes to the
customer, which according to the terms of sale
occurs at the time of delivery.
The Company’s sales agreements are divided
into individually identifiable performance ob-
ligations, which are recognised and measured
separately at fair value.
Notes to the parent company nancial statements
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Although sales agreements for the sale of
goods for resale often set out multiple perfor-
mance obligations, such obligations are treat-
ed as a single performance obligation owing
to their concurrent delivery.
If a sales agreement contains multiple perfor-
mance obligations, the total sales value of the
sales agreement is allocated proportionally to
its individual performance obligations.
Recognised revenue is measured at the fair
value of the consideration agreed, exclusive of
VAT, charges, etc. collected on behalf of third
parties. All types of discounts granted are
recognised in revenue. Exchange differenc-
es in receivables from the sale of goods and
services in foreign currencies are recognised
in revenue. Fair value corresponds to the price
agreed discounted to net present value, where
the terms of payment exceed 12 months.
The part of total consideration that is variable,
for example in the form of discounts, bonus
payments, etc., is only recognised in revenue
when it is reasonably certain that there will be
no reversal thereof in subsequent periods. This
also applies to the goods that are expected to
be returned by fulfilling the Company’s return
obligations based on historical experience
on actual return percentages and product
mix. Customers are typically entitled to return
online purchases within two weeks, but when
returning Christmas presents purchased
between 1 November and 23 December, they
have 14-90 days.
COST OF GOODS FOR RESALE
Cost of goods for resale include expenses
incurred to generate revenue for the year.
Cost of goods for resale are recognised in line
with revenue. Change in inventories for the
year is included in the cost of goods for resale.
Exchange differences relating to suppliers of
goods and services in foreign currencies are
recognised in cost of goods for resale.
OTHER EXTERNAL EXPENSES
Other external expenses include expenses for
distribution and advertising, sale, administra-
tion, premises, losses on trade receivables and
rental expenses under operating leases.
STAFF COSTS
Staff costs include salaries, considerations,
pensions and other staff costs related to the
Company’s employees.
DEPRECIATION, AMORTISATION AND
IMPAIRMENT LOSSES ON INTANGIBLE
ASSETS AS WELL AS PROPERTY, PLANT AND
EQUIPMENT
Depreciation, amortisation and impairment
losses on property, plant and equipment and
intangible assets include depreciation of prop-
erty, plant and equipment and amortisation of
intangible assets, as well as impairment losses
for the year as a result of impairment.
OTHER OPERATING INCOME AND OPERAT
ING EXPENSES
Other operating income and expenses
comprise income and expenses of a second-
ary nature to the activities of the Company,
including gains or losses from current sale and
replacement of intangible assets and property,
plant and equipment. Gains or losses from
the disposal of intangible assets and property,
plant and equipment are determined as the
difference between the selling price less sell-
ing costs and the carrying amount at the time
of disposal.
INCOME IN THE FORM OF COMPENSATION
RECEIVED FROM PUBLIC AUTHORITIES
Compensation received from public
authorities is recognised in other operating
income in line with the costs associated
with the compensation, once the Company
has obtained final commitment from the
compensation provider that it is likely that the
Company will meet the conditions attached
to the compensation and it is highly likely that
the compensation will not have to be repaid.
SHARE OF PROFITLOSS AFTER TAX IN
GROUP ENTERPRISES
According to the equity method, a proportion
of profit or loss after tax in the underlying
enterprises is to be recognised in the income
statement. Shares of profit or loss after tax in
subsidiaries and associates are presented in
the income statement as separate line items.
Full elimination of intra-group profit/loss is
made for investments in subsidiaries. For
investments in associates, only a proportionate
elimination of intra-group profit/loss is made.
FINANCIAL INCOME AND EXPENSES
Financial income and expenses comprise
interest income and expenses, the interest
element of finance lease payments, realised
and unrealised capital gains and losses in
respect of securities, debt and transactions in
foreign currencies, amortisation of financial
assets and liabilities as well as interest charges
and interest reimbursement under the
on-account taxation scheme. Financial items
are recognised at the amounts relating to the
financial year.
TAX ON PROFITLOSS FOR THE YEAR
The parent is jointly taxed with its Danish
subsidiaries and the ultimate Danish parent
company, Jens Poulsen Holding ApS, as well
as this parent’s other Danish subsidiaries. The
current Danish corporation tax is allocated to
the jointly taxed Danish companies in propor-
tion to their taxable incomes.
The jointly taxed Danish enterprises are includ-
ed in the on-account taxation scheme.
Tax for the year consists of current tax for the
year and any changes in deferred tax for the
year. The tax attributable to the profit for the
year is recognised in the income statement,
whereas the tax attributable to equity transac-
tions is recognised directly in equity.
BALANCE
Intangible assets
GOODWILL
Goodwill is amortised on a straight-line basis
over the estimated useful life determined on
the basis of Management’s experience with
the individual business areas.
Notes to the parent company nancial statements
DK Company 68 / 82Annual Report 2024
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AND AUDITOR’S REPORT
MANAGEMENT’S
REVIEW
The amortisation period is ten years. Man-
agement estimates a useful life of at least ten
years for the Company’s goodwill. Emphasis
is placed on the Company’s brands being
well incorporated in the market and provid-
ing satisfactory earnings. Goodwill is written
down to the lower of the recoverable amount
or carrying amount. However, goodwill for
agencies with a contractual term of 1 to 3 years
is amortised over this period.
PROPERTY, PLANT AND EQUIPMENT
Leasehold improvements and other fixtures
and fittings, tools and equipment are mea-
sured at cost less accumulated depreciation
and less any accumulated impairment losses.
Cost comprises the cost of acquisition as well
as expenses directly related to the acquisition
up until the time when the asset is ready for
use.
Where parts of an item of property, plant and
equipment have different useful lives, they
are depreciated as separate items of property,
plant and equipment.
Depreciation is calculated using the straight-
line method over the estimated useful lives of
the assets, which are:
Leasehold improvement 2 - 10 years
Other fixtures and fittings,
tools and equipment 3 - 6 years
The basis of depreciation is cost less estimat-
ed residual value at the end of the useful life
and reduced by any impairment loss. The
depreciation period and the residual value
are determined at the date of acquisition and
are reassessed annually. If the residual value
exceeds the carrying amount of the asset,
depreciation is discontinued.
If the period of depreciation or the residual
value changes, the effect on depreciation is
recognised prospectively as a change in the
accounting estimate.
Gains or losses from the disposal of property,
plant and equipment are calculated as the
difference between the selling price less sell-
ing costs and the carrying amount at the time
of disposal. Profit or losses are recognised in
the income statement under other operat-
ing income and other operating expenses,
respectively.
LEASES
The Company has chosen IAS 17 as interpre-
tation for the classification and recognition of
leases.
Leases in respect of assets in terms of which
the Company assumes all substantial risks
and rewards of ownership (finance leases) are
initially recognised in the balance sheet at
the lower of the assets’ fair value and the net
present value of the future minimum lease
pay-ments. When computing the net present
value, the interest rate implicit in the lease or
the alternative borrowing rate is applied as the
discount rate.
After that, assets acquired under finance
leases are treated in the same way as the other
assets of the Company.
The capitalised lease obligation is recognised
in the balance sheet under debt, and the inter-
est element of the lease payment is charged
over the lease term to the income statement
under finance costs. After initial recognition,
lease obligations are measured at amortised
cost.
All other leases are considered operating leas-
es. Payments made under operating leases
and other rental agreements are recognised in
the income statement over the lease term. The
Company’s total liability relating to operating
leases and rental agreements is disclosed un-
der contingent assets and liabilities, etc.
OTHER NONCURRENT ASSETS
Investments in group enterprises
Investments in group enterprises are
measured according to the equity method.
The Company has chosen the equity method
as its measurement method.
This implies that investments are measured
at cost on initial recognition. Cost is allocated
according to the purchase method.
Newly acquired or newly established
enterprises are recognised in the financial
statements from the date of acquisition or
establishment. Enterprises sold or wound
up are recognised until the date of disposal.
Comparative figures are not restated for newly
acquired, sold or wound-up enterprises.
The date of acquisition is the date when the
Company obtains actual control of the entity
acquired.
Acquisitions of new group enterprises are ac-
counted for using the purchase method under
which the identified assets and liabilities of the
newly acquired enterprises acquired are mea-
sured at fair value at the date of acquisition.
Identifiable intangible assets are recognised
if they can be separated from or arise from a
contractual right. Deferred tax is recognised
on the revaluations.
Positive differences (goodwill) between the
cost and fair value of the identifiable assets,
liabilities and contingent liabilities acquired
are recognised under investments in group
enterprises.
The difference is amortised systematically in
the income statement according to an indi-
vidual estimation of the useful life determined
on the basis of Management’s experience with
the individual business areas.
Negative differences (negative goodwill) are
recognised in the income statement at the
date of acquisition.
Costs incurred in connection with acquisitions
(transaction costs) are recognised directly in
the income statement under shares of profit
or loss after tax of group enterprises in the year
of incurrence. In contrast to the accounting
policies applied in the Consolidated Financial
Notes to the parent company nancial statements
DK Company 69 / 82Annual Report 2024
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AND AUDITOR’S REPORT
MANAGEMENT’S
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Statements, where such costs are recognised
directly in the income statement under special
items, the parent discloses these special
items only in a separate note to the income
statement.
If, at the date of the acquisition, there is uncer-
tainty as to the identification or measurement
of acquired assets, liabilities, contingent liabili-
ties or the determination of the purchase con-
sideration, initial recognition is made on the
basis of provisionally determined values. If it
subsequently turns out that the identification
or measurement of the purchase consider-
ation, acquired assets, liabilities or contingent
liabilities was not correct on initial recognition,
the statement is adjusted retrospectively.
Goodwill and negative goodwill from acquired
enterprises may be adjusted up to 12 months
after acquisition.
Cost is adjusted for shares of profit or loss
after tax deducting or adding unrealised
intra-group profits and losses.
Dividends received are deducted from the
carrying amount. Investments in group enter-
prises that are measured at equity value are
subject to impairment tests in case of indica-
tion of impairment.
On divestment of group enterprises in which
control is no longer maintained, profits or
losses are determined as the difference be-
tween the net selling price on the one hand
and the proportion of the carrying amount
of net assets on the other. Gains or losses are
recognised in the income statement under
financial income and expenses, net. If the
Company continues to hold investments in
the divested group enterprise, the remaining
proportion of the carrying amount forms
the basis for measurement of investments in
group enterprises.
OTHER RECEIVABLES
Deposits are measured at amortised cost.
IMPAIRMENT OF NONCURRENT ASSETS
The carrying amounts of intangible assets
and property, plant and equipment as well as
investments in group enterprises are assessed
annually to determine whether there is any
indication of impairment other than that
expressed
by amortisation and depreciation.
In the event of indications of impairment, an
impairment test is carried out of each indi-
vidual asset or group of assets. Write-down is
made to the lower of the recoverable amount
or carrying amount.
The recoverable amount used is the higher
of net selling price and value in use. The value
in use is calculated as the net present value
of the expected net cash flows from the use
of the asset or asset group and expected net
cash flows on the disposal of the asset or asset
group on expiry of the useful life.
Previously recognised impairment losses are
reversed when the basis for the impairment
loss no longer exists. An impairment loss in
respect of goodwill is not reversed.
INVENTORIES
Inventories are measured at cost under the
FIFO method. If the net realisable value of
inventories is lower than cost, write-down is
made to this lower value.
The cost of inventories equals landed cost.
The net realisable value of inventories is calcu-
lated as the selling price less costs of comple-
tion and costs incurred to execute sales. The
net realisable value is determined allowing for
marketability, obsolescence and development
in expected selling price.
RECEIVABLES
Receivables are measured at amortised cost.
The Company has chosen IAS 39 as interpreta-
tion for the write-down of financial receivables.
Write-down to net realisable value is made for
estimated bad debts. Assessment of write-
downs for estimated bad debt is carried out
at both individual and portfolio level using a
provisions account.
DEFERERED INCOME
Deferred income that are recognised under
assets include expenses related to subsequent
reporting periods.
EQUITY RESERVE FOR NET REVALUATION
UNDER THE EQUITY METHOD
Reserve for net revaluation under the equity
method includes net revaluation of invest-
ments in group enterprises relative to cost.
The reserve may be eliminated in case of
loss, realisation of investments or changes in
accounting estimates.
This reserve cannot be recognised at a nega-
tive amount.
EQUITY DIVIDEND
Dividend expected to be paid for the year is
disclosed as a separate equity item. Proposed
dividend is recognised as a liability when a
resolution approving the dividend has been
adopted by the general meeting (the time of
declaration).
CORPORATION TAX AND
DEFERRED TAX
Current tax liabilities and receivables are rec-
ognised in the balance sheet as tax calculated
on the taxable income for the year, adjusted
for tax on the taxable income of previous years
and for taxes paid on account.
Deferred tax is measured under the balance
sheet liability method on the basis of all
temporary differences between the carrying
amount and the tax base of assets and liabil-
ities. However, no deferred tax is recognised
on temporary differences relating to goodwill
not deductible for tax purposes, or other items
where temporary differences except in the
case of business acquisitions have arisen at
Notes to the parent company nancial statements
DK Company 70 / 82Annual Report 2024
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MANAGEMENT’S
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the date of acquisition and affect neither the
net profit for the year nor the taxable income.
In cases where the computation of the tax
base may be made according to different tax
rules, deferred tax is measured on the basis of
Management’s intended use of the asset and
settlement of the liability, respectively. Deferred
tax assets as well as deferred tax liabilities are
recognised.
Deferred tax assets, including the tax base of
tax loss carry-forwards, are recognised at the
value at which they are expected to be utilised,
either by elimination in tax on future earnings
or by set-off against deferred tax liabilities with-
in the same legal tax entity and jurisdiction.
Deferred tax is adjusted for eliminations of
unrealised intra-group gains and losses.
Deferred tax is measured on the basis of the
tax rules and tax rates of the respective coun-
tries that will be effective under the legislation
at the balance sheet date when the deferred
tax is expected to crystallise as current tax. Any
changes in deferred tax due to changes to tax
rates are recognised in the income statement.
DEBT
Financial debts are initially measured at fair
value less any transaction costs. In subsequent
periods, the debts are measured at amortised
cost using “the effective interest method” so
that the difference between the proceeds and
the nominal value is recognised in the income
statement as financial expenses over the loan
term.
Other payables are measured at net realisable
value.
CASH FLOW STATEMENT
According to section 86(4) of the Danish
Financial Statements Act, no cash flow state-
ment has been prepared for the parent as
such statement is included in the cash flow
statement for the Group.
Notes to the parent company nancial statements
DK Company 71 / 82Annual Report 2024
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Amounts in DKK thousands
5. OTHER OPERATING COSTS 2024 2023
Loss on disposal of intangible assets and property, plant and equipment 0 200
0 200
6. FINANCIAL INCOME 2024 2023
Interest income from group enterprises 26,490 22,577
Other interest income 400 288
Foreign exchange gains 14,647 34
41,537 22,899
7. FINANCIAL EXPENSES 2024 2023
Interest expenses related to group enterprises 14,235 12,394
Other interest expenses 6,012 2,726
Foreign exchange losses 166 5,147
20,413 20,267
8. TAX ON PROFITLOSS FOR THE YEAR 2024 2023
Current tax for the year 31,226 17,057
Change in deferred tax for the year -1,261 3,248
Adjustment of tax relating to previous years 401 0
30,366 20,305
2. REVENUE 2024 2023
By geography
Denmark 410,861 239,678
Norway 35,155 45,216
Germany 69,293 87,221
Sweden 51,930 52,346
The UK 48,889 40,905
Benelux 46,602 38,680
Canada 21,856 30,136
France 14,438 18,889
Other markets in Europe 100,090 109,160
Other markets outside Europe 11,875 12,794
810,989 675,025
3. OTHER OPERATING INCOME 2024 2023
Gain on sale of activities 7 160
Administration fee 157,296 120,421
157,303 120,581
4. STAFF COSTS 2024 2023
Wages and salaries 195,883 173,563
Pensions 15,238 12,813
Other social security expenses 2,541 2,535
213,662 188,911
Including remuneration to the Board of Directors 700 675
Including remuneration to the Executive Board 7,368 6,693
The above amounts include the value of employee benefits.
Average number of employees 370 333
Notes to the parent company nancial statements
DK Company 72 / 82Annual Report 2024
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Amounts in DKK thousands
9. INTANGIBLE ASSETS
Goodwill
Cost at 1 January 2024 88,814
Cost at 31 December 2024 88,814
Amortisation and impairment losses at 1 January 2024 87,134
Amortisation for the year 840
Amortisation and impairment losses at 31 December 2024 87,974
Carrying amount at 31 December 2024 840
10. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Leasehold
Improve-
ments
Other
fixtures and
fittings,
tools and
equipment
Cost at 1 January 2024 12,400 64,263 140,248
Additions at cost 590 2,573 11,709
Disposals at cost 0 0 -60
Cost at 31 December 2024 12,990 66,836 151,897
Depreciation and impairment losses at 1 January 2024 973 18,345 38,373
Depreciation for the year 596 5,852 14,690
Reversal of assets sold 0 0 -60
Depreciation and impairment losses at 31 December 2024 1,569 24,197 53,003
Carrying amount at 31 December 2024 11,421 42,639 98,894
Carrying amount of leased assets 80,154
The leased assets relate primarily to inventory machines. The leased assets are provided as security for lease liabilities.
11. INVESTMENTS IN SUBSIDIARIES
Investments
in group
enterprises
Cost at 1 January 2024 332,432
Cost at 31 December 2024 332,432
Value adjustments at 1 January 2024 468,835
Correction beginning of year -991
Exchange adjustments from translation of foreign entities -5,081
Share of profit/loss for the year 286,281
Distribution from group enterprises 10,967
Adjustments reversed on disposal -122,100
Value adjustments at 31 December 2024 637,911
Transferred to provisions 5,528
Carrying amount at 31 December 2024 975,871
DK Company A/S' share
Group enterprises are specified as follows:
Profit for
the year
Equity
DKC Norway AS, Tønsberg, Norway, 100% 3,219 7,714
Miss O ApS, Ikast-Brande, Denmark, 100% 135 -374
DK Company Vejle A/S, Vejle, Denmark, 86,9% 83,056 358,476
DK Company Retail A/S, Ikast-Brande, Denmark, 100% 3,159 23,349
DK Company Shanghai Ltd., Shanghai, China, 100% -435 -5,154
DK Company Cph A/S, Copenhagen, Denmark, 100% 178,407 439,208
DK Company Canada Inc., Quebec, Canada, 100% 4,972 44,615
DK Company Online A/S, Ikast-Brande, Denmark, 100% 21,010 90,687
DK Company Con A/S, Ikast-Brande, Denmark, 100% 1,551 10,956
DK Company France Sarl, Paris, France, 100% 466 3,371
DK Company Germany Gmbh, Hamburg, Germany, 100% 723 1,330
Companys Retail AG, Baar, Switzerland, 100% 1,926 11,139
298,189 985,317
Adjustments to intercompany profits -8,692 -21,639
Tax on adjustments to intercompany profits 1,901 6,665
Adjustments for acquisitions in 2014 -1,393 0
Adjustments for acquisitions in 2015 -3,629 0
Adjustments for acquisitions in 2017 -95 0
Transferred to provisions 0 5,528
286,281 975,871
All subsidiaries are regarded separate entities.
Notes to the parent company nancial statements
DK Company 73 / 82Annual Report 2024
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Amounts in DKK thousands
12. OTHER RECEIVABLES
Deposits
Cost at 1 January 2024 1,413
Foreign currency translation adjustments -2
Additions at cost 62
Disposals at cost -106
Cost at 31 December 2024 1,367
Carrying amount at 31 December 2024 1,367
13. DEFERRED TAX 2024 2023
Deferred tax at 1 January -276 3,107
Deferred tax for the year recognised in profit/loss for the year 1,261 -3,248
Deferred tax for the year recognised in equity -4,231 -135
Deferred tax at 31 December -3,246 -276
Deferred tax is recognised as follows in the balance sheet:
Deferred tax assets 0 0
Deferred tax liabilities -3,246 -276
-3,246 -276
Deferred tax relates to:
Intangible assets -120 -247
Property, plant and equipment 318 -815
Other liabilities -3,444 786
-3,246 -276
Provision for deferred tax is made at the tax rate at which temporary differences are expected realised on the basis
of the adopted corporation tax rate of 22%.
14. SHARE CAPITAL 2024 2023
The share capital is distributed as follows:
6,000,000 shares of DKK 10
60,000 60,000
60,000 60,000
The share capital has changed as follows:
Share capital at formation 29,000 29,000
Cash capital increase 30.06.2006 6,000 6,000
Capital increase 25.08.2008 500 500
Capital reduction to cover losses 27.09.2011 -34,300 -34,300
Capital increase through non-cash contribution 27.09.2011 59,995 59,995
Issuance of new shares in DK Company A/S to IC Group A/S in con-
nection with the acquisition of an enterprise 30.06.2014 6,883 6,883
Capital reduction 29.07.2016 -8,078 -8,078
60,000 60,000
The Company holds no treasury shares at the balance sheet date. No acquisition or sale of treasury shares has been
completed during the financial year.
15. DEBT 2024 2023
Credit institutions 141,900 138,305
141,900 138,305
The debt is expected to fall due for payment as follows:
0-1 year 80,686 77,092
1-5 year 61,214 61,213
141,900 138,305
16. SECURITY
The Company has entered into agreements (letters of credit) for the delivery of goods of DKK 31 million compared to
DKK 14.8 million last year.
Investments in all significant group enterprises are provided as security for balances with credit institutions.
Notes to the parent company nancial statements
DK Company 74 / 82Annual Report 2024
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17. CONTINGENT ASSETS AND LIABILITIES
Contingent liabilities
The Company has provided security to cover future lease obligations. Total security constitutes DKK 4.4 million
compared to DKK 4.3 million in 2023.
In connection with its previous banking activities, the Company has been involved in legal proceedings concerning
the professional liability of advisers. All prior proceedings have been closed by way of settlement. If the Company
becomes party to future litigation and arbitration proceedings, claims may be raised against the Company.
The Company is jointly and severally liable with DK Company Vejle A/S, DK Company Cph A/S, DK Company Online
A/S and DK Company Retail A/S for all group enterprises’ banking arrangements with Jyske Bank A/S. The total liabil-
ity amounted to DKK 80,7 million at 31 December 2024 and DKK 77,1 million at 31 December 2023.
The Company is jointly taxed with its parent Jens Poulsen Holding ApS as administration company and is jointly and
severally liable with other jointly taxed companies for payment of corporation tax as from the accounting period of
2013, as well as for withholding tax on interest, royalties and dividends falling due on or after 1 July 2012. At 31 Decem-
ber 2024, the total amount outstanding in joint corporation tax is DKK 31.2 million compared to the DKK 16.2 million
at 31 December 2023.
Operating lease liabilities comprise the following: 2024 2023
Shop leases and buildings:
0-1 year 18,775 17,065
1-5 year 37,661 42,750
Over 5 years 4,708 13,712
61,144 73,527
Leased operating equipment, etc.:
0-1 year 2,299 2,915
1-5 year 2,784 3,478
5,083 6,393
The Company leases properties under operating leases. The typical lease term is between 1-10 years with the
possibility of extension upon expiry.
In addition, the Company leases operating equipment etc. under operating leases.
The lease term is typically between 1-4 years.
FINANCIAL INSTRUMENTS
The Company has entered into forward exchange contracts to hedge future purchases of goods in USD as well as
future sale of goods in SEK, NOK, GBP, CHF and CAD. In relation to the market price at the balance sheet date, a
capital gain is sustained in the amount of DKK 26,1 million and a capital loss of DKK -9,9 million in 2023, of which DKK
15,7 million and DKK -3,6 million at 31 December 2023 is recognised directly in equity, while DKK 10,5 million and DKK
-6,3 million at 31 December 2023 is recognised in the income statement.
2024
Residual
maturity
Value of
currency Fair value
Currency risks:
USD 0-12 months 57,000 22,721
SEK 0-10 months -217,500 1,926
NOK 0-5 months -80,000 1,033
GBP 0-8 months -4,400 -612
CHF 0-17 months -13,200 817
CAD 0-6 months -5,100 221
26,106
2023
Residual
maturity
Value of
currency Fair value
Currency risks:
USD 0-15 months 64,250 -1,941
SEK 0-12 months -252,000 -3,554
NOK 0-6 months -135,000 -1,986
GBP 0-9 months -5,200 203
CHF 0-24 months -14,780 -2,924
CAD 0-7 months -6,900 298
-9,904
Notes to the parent company nancial statements
DK Company 75 / 82Annual Report 2024
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18. RELATED PARTIES
Related parties with control
Related parties with control over DK Company A/S:
Name Place of registered office Basis of control
DKC Holding 2011 A/S La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Holding ApS La Cours Vej 6, Ikast-Brande Shareholder with the majority of voting rights
Jens Poulsen Søbjergvej 56, Ikast-Brande Shareholder with ultimate control over DK Company A/S
Related party transactions
During the financial year, the Company’s related party transactions were solely carried out on an arm’s length basis.
The Company is included in the Consolidated Financial Statements of Jens Poulsen Holding ApS, Ikast-Brande.
19. SUBSEQUENT EVENTS
No events have occurred after the balance sheet date which materially affect the assessment of the Annual Report.
20. DISTRIBUTION OF PROFIT 2024 2023
Proposal for distribution of net profit
Reserve for net revaluation under the equity method 164,182 41,022
Retained earnings 26,462 107,554
Proposed dividend for the year 200,000 200,000
390,644 348,576
77 Company information
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DK Company 76 / 82Annual Report 2024
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DK Company 77 / 82Annual Report 2024
Company information
COMPANY DK Company A/S
Telephone: +45 96 600 700
CVR no: 24 4 3 11 18
Founded: 25 November 1958
Registered office: Ikast-Brande Municipality
Financial year: 1 January – 31 December
E-mail: info@dkcompany.com
Web: www.dkcompany.com
EXECUTIVE BOARD Jens Poulsen, Group CEO
Jens Obel Jørgensen, CEO
Søren Skovdal Lauritsen, Group CFO
Jyske Bank A/S
Vestergade 8-16
DK-8600 Silkeborg
BNP Paribas Factor A/S
Stationsparken 21, 1
DK-2600 Glostrup
Midt Factoring A/S
Nygade 111
DK-7430 Ikast
BOARD OF DIRECTORS Bo Boulund Knudsen, Chairman
Lars Radoor Sørensen
Marianne Tochtermann
Jens Poulsen
Kasper Toftekær Philipsen
AUDIT PricewaterhouseCoopers
Statsautoriseret Revisionspartnerselskab
Jens Chr. Skous Vej 1
DK-8000 Aarhus
BANKS
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DK Company 78 / 82Annual Report 2024
79 Managements statement
80 Independent Auditor’s Report
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EXECUTIVE BOARD
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CVR No 33 77 12 31
