ANNUAL REPORT
2022/23
ANNUAL REPORT 2022/23 | |
THE YEAR IN BRIEF | |
The strategy will pave the way | |
for better results | 4 |
Significant pressure on earnings | 6 |
Financial results | 8 |
Results and expectations | 9 |
Key figures and ratios | 10 |
OUR BUSINESS AND RESULTS | |
Harboe is the people's brewery | 11 |
Business model | 12 |
Our strategy | 13 |
Sustainability | 15 |
Long-term ESG goals and indicators | 16 |
Financial statement | 18 |
Harboe Beverages | 22 |
Harboe Ingredients | 27 |
GOVERNANCE | |
Risk factors, financial reporting | |
and control | 30 |
Corporate governance | 34 |
Shareholder relations | 37 |
Harboe's Board of Directors | 40 |
Harboe's management team | 42 |
ANNUAL REPORT 2022/23 | |
Statement by the Executive Board | |
and the Board of Directors | |
regarding the annual report | 43 |
Independent auditor's report | 44 |
Harboes Bryggeri A/S | Annual report 2022/23 | S 2 |
12 | 13 | |
Resources | Raw materials and | Breweries | Customers | Consumers | Value creation |
suppliers | |||||
Harboe is Denmark's third largest brewery and, together with our subsidiary | Harboe's overall goal is to create long-term value for our shareholders, |
in Germany, we produce and market beverages and ingredients to a wide | customers, consumers as well as the communities we are part of. The core |
range of markets around the world. See Harboe's business model here. | of our strategy is to get closer to consumers, boost growth, strengthen the |
foundation and improve earnings. Read more about our strategy here. | |
15 | 18 | |||||||||||||||||||||
ENVIRONMENT AND | PEOPLE | CONSUMER AND | BUSINESS ETHICS | |||||||||||||||||||
CLIMATE | PRODUCTS | |||||||||||||||||||||
Beverages | TURNOVER | Ingredients | ||||||||||||||||||||
Main areas: | Main areas: | Main areas: | Main areas: | |||||||||||||||||||
91% | DISTRIBUTION | 9% | ||||||||||||||||||||
Renewable energy | Diversity, equality | Sustainable products | Culture and business | |||||||||||||||||||
and inclusion | ||||||||||||||||||||||
Water and wastewater | Health and safety | Responsible information | Local anchoring | |||||||||||||||||||
and marketing | ||||||||||||||||||||||
Circular economy | Job satisfaction | Food safety and quality | ||||||||||||||||||||
Responsible value chain
It is crucial that Harboe's growth and development take place on a | In 2022/23, Harboe generated net revenue of DKK 1,621 million and EBITDA |
sustainable basis and in accordance with current regulations and standards | of DKK 85 million. See the full financial statement here. |
for good ethical behaviour and social responsibility. Get an overview of | |
Harboe's sustainability efforts here. |
Link to our other reports
Statement on Corporate | ESG Report 2022/23 | Remuneration |
Governance | report 2022/23 | |
Harboes Bryggeri A/S | Annual report 2022/23 | S 3 |
"
"It has been an extremely challenging year with soaring input prices, supply chain bottlenecks and energy supply uncertainty. The entire organisation has worked hard to meet the challenges and secure deliveries to our customers, with whom we have maintained a close and positive dialogue. In the second half of the year, we saw a positive effect from realised price increases, and combined with increased volumes, this helped secure positive results in the last two quarters of the year - although it was not quite enough to cover the losses in the first half. However, we are pleased that we have succeeded in reversing the trend, and we expect to return to delivering profits and value to our shareholders in the coming year."
Søren Malling
CEO
Harboes Bryggeri A/S | Annual report 2022/23 | S 4 |
THE STRATEGY WILL
PAVE THE WAY FOR
BETTER RESULTS
The past financial year was challenging on all levels and the year's result was not satisfactory. However, leaving aside all the market conditions that limited our ability to create the desired value for our shareholders and other stakeholders, we actually see a number of positive underlying initiatives and results that confirm that our overall strategy is the right one.
In the coming years, we will invest in new production technology to meet the expected growth and fulfil increasing demands for efficiency and sustainability.
Closer to consumers
We have a clear desire to get closer to consumers and over the past year we have invested in further building our capabilities and insights into consumer needs, purchasing behaviour and category trends. This has given us a solid starting point for our dialogue with customers, where we help put together the right product ranges to meet consumer demand. We also use this knowledge internally in the commercial development of our products, which is based on the consumer and category trends we see in the market. Specifically, this has led to the development of new completely non-alcoholic beers, as well as sugar-free and reduced sugar soft drinks. This approach has undoubtedly contributed to our success during the year in both increasing our volume and ensuring a broader representation in the Danish retail sector.
Harboes Bryggeri A/S | Annual report 2022/23 | S 5 |
The revitalisation of the Harboe brand in Denmark with new designs that more effectively profile Harboe and our values is another example of a crucial strategic initiative that has been very well received by both customers and consumers. The revitalisation also includes the message that Harboe is "The People's Brewery". This is central to our positioning of Harboe in Denmark and we have succeeded in gaining market shares in terms of both volume and value within both beer and soft drinks. We must build on this and in line with the strategy, we will strengthen the positive perception of Harboe and our products with further consumer-oriented communication in the coming years.
We have a significant position in the Danish market and we have succeeded in gaining additional market shares in terms of volume and value in both beer and soft drinks in the past financial year.
Boost growth
In Germany, we have both succeeded in creating significant new private label business and improved the position of our own Darguner brand in our local area. Both are results that contribute to growth and earnings.
In our export markets, which have been under considerable pressure, we have continued our systematic efforts to position our own brands based on specific demand.
Among other things, we are developing our Harboe brand in Senegal, where sales are developing favourably, and we are working extensively with our malt beverage, Hypermalt, which is gradually gaining distribution in more countries in Africa. In Columbia, Bear Beer is now on the shelves of the country's largest retail chain. These are excellent examples of how our systematic sales efforts are working and when market conditions normalise further, we expect more of the same.
Strengthen foundation
The challenges of the past year, with skyrocketing prices, challenged supply chains and the energy crisis, further emphasised the importance of efficient and flexible production and skilled employees who are ready to go above and beyond to solve challenges as they arise.
Alongside tackling the many daily challenges, we have invested in further production efficiency and improved resource utilisation that also ensures vital savings.
In the coming years, we will invest further in new production technology to ensure that we have the necessary capacity to meet the expected growth in activities and at the same time fulfil increasing demands for efficiency and sustainability.
A crucial factor in staying competitive is our employees - both the ones we already have and those we want to attract. Therefore, we will work hard through internal and external communication and various activities to communicate Harboe's strategic priorities, strong values and community.
In the coming year, we look forward to continuing to work on our important strategic initiatives, putting the company back on the growth track and creating positive results that create value for our shareholders, customers and business partners and make Harboe a great place to work.
Bernhard Griese
Chair of the Board
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Harboes Bryggeri A/S published this content on 23 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 July 2023 10:10:06 UTC.