Management's review
Beskrivelse af virksomhedens væsentligste aktiviteter:Operating review
Outlook Global economies are partly impacted by different regional conflicts such as Russia's invasion of Ukraine, the conflict between Hamas and Isræl and the unrest in the Red Sea area, which all together are creating increased market volatility as to among other cost prices and delivery reliability. As a consequence of the above, the realization of revenue and profit before tax targets is subject to increased uncertainty. Management is on an ongoing basis keeping track of and evaluating development and based on that identifying relevant initiatives and measures. Overall, the order book of Wanzl Nordic Group at the beginning of 2024 was at a satisfactory level, which, together with market opportunities and structural improvements carried out or initiated, provides the basis for the outlook for 2024. Management expects to report positive results for 2024. Market conditions and financial performance The nature and level of activity of the retail trade sector is influenced by the impacts created by the regional conflicts referred to above as well as factors such as internet shopping. The Wanzl Nordic Group's customer base, which includes the largest retail chains in the Nordic countries, are influenced by this as well, but they are better positioned to navigate these factors then minor chains and the individual shops. Revenue Revenue for 2023 came in at DKK 756,7million, accounting for a decrease of 10,2% on revenue for 2022 of DKK 842,9 million. Revenue for 2023 for the Group as a whole was expected to be within the range of DKK 750-800 million and hence 2023 revenue did meet expectations on an overall level. In the Parent Company, Wanzl Nordic A/S, revenue for 2023 came in at DKK 570,3 million, corresponding to a decrease in revenue of 13,8% compared to revenue for 2022. 2023 revenue levels realized in Denmark and Finland anyhow exceeded expectations, while Norway and Sweden did not meet expectations and are considered unsatisfactory. To counter this, several initiatives were launched during the year including a restructuring of the Norwegian organization. The expectation for the financial year 2024 is a revenue on Wanzl Nordic Group level in the range of DKK 650-700 million. Earnings Profit before tax reached DKK 42,6 million compared to a result of DKK 28,9 million in 2022. 2023 earnings are positively impacted by the ability of the group to navigate the market volatility encountered parred with strict cost control and saving measures. The profit before tax of the Parent Company, Wanzl Nordic A/S (Denmark), amounted to DKK 43,7 million compared to a result of DKK 29,5 million in 2022. Overall, the Wanzl Nordic Group did expect a 2023 result which would at least be matching the 2022 result, and hence actual earnings exceeded the targets set for 2023, The positive result generated in 2023 is considered satisfactory. Based on current developments and plans for 2024, then the Group expects to report a profit before tax in 2024 in the range of DKK 4-20 million. Cash flows and balance sheet Cash flows from operating activities were positive at DKK 98,3 million in 2023, compared to a positive impact of DKK 81,5 million in 2022. The positive development is linked to a significant decrease in inventory levels and the financial profit generated in 2023. During 2023 the Wanzl Nordic Group fulfilled all obligations linked to the debt positions of the Group and even managed to repay part of debt position, which was not due yet, resulting in a significant reduction in the balance of the interest bearing debt. Hence interest bearing debt amounted to DKK 73,0 million end of 2022, compared to DKK 135,2 million end of 2021. Another significant reduction in the balance of interest-bearing debt is planned in 2024, and the Wanzl Nordic Group is confident that all obligations linked to current debt positions will be met in 2024 as well.
Operating review Cash flows from investing activities for the year amounted to DKK 2,7 million, reflecting those investments in new assets is exceeding the disposal of assets. Total cash flow after financing activities including impact from repayment of loans amounted to DKK 33,8 million. The Wanzl Nordic Group’s balance sheet total reached DKK 339,9 million at 31 December 2023 against DKK 367,3 million last year. The decrease was primarily attributable to reduced inventories and debt positions. Equity stood at DKK 157,2 million at 31 December 2023, equivalent to a solvency ratio of 46,5 % as against a solvency ratio of 33,9 % at 31 December 2022. Daily operational management is focused around the development in key financial aspects. Efforts aiming at introducing overall non-financial KPI’s have anyhow been initiated, and the first non-financial KPI’s are expected to be introduced in 2024. Production, investments and quality It is the Wanzl Nordic Group's objective that the name, Wanzl Nordic, both, in terms of products and services and on all markets and within all areas, is to be associated with innovative design, excellent service and good quality. Quality management is a key element in reaching these goals, why we have commenced the work as to building up a management system around our key processes. Furthermore, we have initiated work aiming at achieving an actual quality management certification together with other sister companies in the Wanzl Group, at some future point of time. Production being in Denmark and Latvia, supports the Group's flexibility, and at the same time the operating risk posed by only one production facility has been reduced. Intellectual capital and organisation Competent staff members are the most important asset for the strategic development of the Group, and Wanzl Nordic has continuous focus on strengthening and developing the organization as well as the individuals. A new shared HR-system Sympa was launched in Wanzl Nordic in 2023, In January it was launched in Denmark and during the following month until July the other 4 countries in the Wanzl Nordic Group also had the system implemented. To have the HR-system implemented is a huge step in relation to our HR development, as we now can handle all employee master data, contracts and HR-procedures within the same, unified system for all our countries. And at the same time, we are sure that we are 100% GDPR compliant in an easier handled way than before. The first part of the roll-out was focused on registration of employee master data and all relevant employee related documents, such as employment contracts, appendixes for salary or other employment terms, job descriptions etc. So now we have all data in one, secured system. Managers have access to their own employee’s data and the employee him/herself has access to his/her own data. This is a huge improvement of our processes and eases up a lot of work in personnel administration, enabling us to focus even more on development of our intellectual capital and organization. In 2023 we also started up a few extra HR-processes to be run from Sympa apart from the master-data part of the HR-system. These parts related to on- and offboarding, where we also handle all processes in relation to ordering of IT equipment etc. In 2024 we intend to continue the work and roll out additional areas of the HR-system, such as for example system based and supported templates for appraisal interviews etc. Late 2023 we also finished preparations to use a module linked to Sympa HR-system called Recrutee/Career Hub. This module allows us to organize and publish our own recruitment processes and as the system is linked to Sympa, then when a candidate is selected for employment, his/her data is already known and can be transferred directly into Sympa. Another new system which we took into use in 2023 was the electronical signature system Scrive, which we also have linked to Sympa processes. This system gives us the possibility to send all kind of documents for signature in a secured system. This process is GDPR safe as documents are send within a secured system and it eases up the administrative work and we avoid sending documents via e-mail etc. So far Scrive has been implemented for Denmark as the largest entity. In 2024 we will start working on the implementation in the other Nordic countries. All in all the implementation of Sympa and related systems have started our “journey” towards a much more modern, flexible and effective way of working with administrative tasks, enabling us us to free up more time, to focus even more on people and culture development work. We have identified a need to lift especially the IT competence levels among our blue-collar workers. Hence in spring 2023 we arranged a basic IT-course of 10 x 3 hours duration in corporation with the same official Danish education Centre (Randers HF & VUC), which is supporting our Danish language trainings. Before training the school made a screening of the participants, to ensure the education could be adjusted to the level of the participants. The level was quite different, varying from zero IT-competences to quite experienced users. Hence, it was a demanding task for the tutor to adjust the training material. 17 employees participated the training. We are happy to see a growing interest among our blue collars to develop their skills and competences within their field of experience, and to take courses which have more modules ex. within the warehouse area. This is totally in line with the wish from the company, as we want to support development of competences. This will benefit both the company and the employees. From January 2024 the administration of the IKUF (Industrial Competence development Fond) will change from local to central administration. As a result of this the employees within the CLA for blue collars, and white collars under Danish Industry, will get access to an increased funding for training. In the spring af 2023, Wanzl Nordic arranged leadership training for the Nordic Leadership Team (14 people). This training took place in a two-day workshop in March with an external facilitator. The training was among other aiming at increasing the knowledge sharing and utilization of competences and synergies across borders.
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