Harboes Bryggeri A/S : Harboe Bryggeri A / S' annual report 2020-21
07/21/2021 | 02:28pm EDT
This has been a year of high activity on all fronts in order to ensure the turnaround we launched last year. Our primary goal has been to create increased robustness and efficiency at the core of our business while strengthening overall commercial performance.
And although we have had to contend with the challenges posed by COVID-19, we are pleased to be able to deliver a markedly improved result, strong liquidity and a stronger business overall. This is a good starting point for our continued journey - and over the coming year, we will build purposefully on the results and expect a further improvement in earnings.
THE YEAR IN BRIEF
Chairman of the Board
Head of the Executive Board
Summary of the financial year for the group
Risk factors, financial reporting and control
and expectations for 2020/2021
Key figures and ratios
Board of directors
FINANCIAL STATEMENTS 2020/2021
Our business model
Strategy and financial goals
Independent auditor's report
Consolidated financial statements
Parent company financial statements
CHAIRMAN OF THE BOARD
CLEAR COMMERCIAL, STRATEGIC AGENDA
BIn the past year, the Board has focused on setting the framework for Harboe's further journey and formulating the strategic priorities that will ensure a restoration
of growth and markedly improved earnings over the coming years. We have had a very close and constructive collaboration with the Executive Board, where we analysed challenges and opportunities and created a clear and common understanding of the strategic potential. We want to develop Harboe into a new and strengthened version of itself - where we create increased resilience at the core and are driven by a clear commercial focus on creating profitable growth.
MANAGEMENT OF RESOURCES AND PROCESSES
Significant work has been done to identify opportunities for improvement across the value chain. Many initiatives have been launched already, and this contributes to the improved earnings in the financial year. But we continue to see opportunities for optimisation, and effective management of resources and processes will continue to be a high priority in the coming years. This must form the basis for our primary focus - namely to raise our commercial performance and create profitable growth.
We see attractive growth opportunities in the international markets, where our products are gaining recognition and can be marketed at prices that better reflect their quality. Our new, focused sales strategy has already shown promising results in the past year, and we expect to see a significant increase in activities over the coming years.
International growth must also help reduce sensitivity to individual markets and individual customers in our Northern European markets. At the same time, we are working to strengthen the commercial platform so that we make better use of the value of our brands and strengthen our competitiveness, allowing us to raise earnings for the significant business we have here.
FLEXIBILITY AND INDEPENDENCE We will invest in growth over the coming years - but we will do so based on clear strategic goals and with full focus on strengthening the commercial agenda. Investments presuppose that we have flexible liquidity - and our efforts to ensure efficient balancing of working capital and liquidity are prioritised highly and on an ongoing basis. Financial independence will continue to be crucial for us in the future - and we are pleased that we have a solid capital structure that
gives us the best possible foundation for realising our strategic goals. Over the next 4-5 years, our ambition is to raise our EBITDA margin to a stable level of over 10% and achieve a return on invested capital of over 6%.
We also have a clear awareness that the realisation of our strategic goals requires solid commercial competences - both in day-to-day management and at the board level. We have put together a strong management team, which has managed and executed the important strategic priorities that have secured the significant profit growth we are delivering this year. And that work continues - effectively backed by a very dedicated organisation that has been adjusted and strengthened to support the strategy. But at the board level, we also need specific competences
that can inspire and help set the right direction for further development. Therefore, in the nomination committee we have worked intensively to clarify our future competence needs and identify new commercial profiles to strengthen the Board. Therefore, we are pleased that, at the next general meeting, we will be able to propose the election of two new candidates, who, among other things, will contribute to Harboe's Board of Directors' broad international experience from sales and marketing of FMCG, in-depth knowledge of the German food and beverage market and solid financial skills. Both candidates are to be regarded as inde- pendent. We are confident that this will give Harboe another valuable boost to its further work.
STABLY RISING EARNINGS
In light of the circumstances, the results for the year are satisfactory, but it is clear that we must go further from here. In the coming year, we will continue our efforts to strengthen the business and create growth, and we expect a further improvement in the results. We look forward to taking the next important steps on the journey, which will secure the positive development and steadily increasing earnings which the company, our employees and shareholders deserve.
Bernhard Griese, Chairman of the Board
4 Annual Report • 2020/2021 • CHAIRMAN OF THE BOARD
HEAD OF THE EXECUTIVE BOARD
TURNAROUND AND STRENGTHENED FOUNDATION FOR THE FUTURE
DIt has been a year of high levels of activity on all fronts, with full focus on securing the turnaround we launched last year. At the same time, we have
had to contend with the additional challenges posed by COVID-19 - and this has affected our business in various ways. In Denmark, we have benefited from our primary focus on the off-trade segment, where sales have generally increased following the closure of cross-border shopping and the restaurant sector, and the results from our Northern European main markets are, overall, satisfactory. In the international markets, however, we have been challenged by restrictions, reduced capacity
FOCUS ON INTERNATIONAL SALES The results are driven by the wide range of initiatives that we have been working on this year, with two primary focus areas: Increased robustness and efficiency at the core of our business and strengthened overall commercial execution.
In the commercial area, the construction of a new international sales organisation with a clear and focused approach to the development of customer relationships and markets has shown positive results, and the changed approach has also saved significant marketing costs. We have succeeded in establishing new significant customer agreements in a number of markets, and we have
From the left: Michael Møller Jensen CFO, Søren Malling CEO, Martin Schade COO
for freight and rising freight rates, which have delayed the effect of our sales efforts and increased the pressure on our earnings. However, even though we did not get quite as far commercially as we wanted, we are still pleased to be able to deliver a markedly improved result, strong liquidity and a strengthened business overall, compared to last year.
positive expectations for the continued development - not least when we begin to see a gradual normalisation of market conditions over the coming year as the pandemic becomes more controlled. Our approach to international markets is based on our portfolio of products, which we have streamlined and strengthened based on the consumer trends we can see around the world,
with increasing demand for specialty beers, non-alcoholic beers, sugar-free beverages and organics.
STRENGTHENED COMMERCIAL PLATFORM
In Denmark, we are in the process of strengthening the commercial platform based on our Harboe brand. We benefit from having a very high level of
We have strengthened our commercial platform and made efficiency improve- ments across our activi- ties, which contribute to the improved results
5 Annual Report • 2020/2021 • HEAD OF THE EXECUTIVE BOARD
Harboes Bryggeri A/S published this content on 21 July 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 July 2021 18:27:09 UTC.