Gerda og Victor B. Strand Holding A/S

Annual Report

2024

Henrik Brandt
Chairman of the General Meeting
Date: 4 April 2025

Registration no.: 35 04 30 55
Toms Allé 1,
2750 Ballerup
Denmark

Gerda og Victor B. Strand Holding A/S
Toms Allé 1, 2750 Ballerup, Denmark

Telephone:+45 44 89 10 00
Fax:+45 44 89 10 99
E-mail:[email protected]
Website:www.tomsgroup.com
Registered office:Ballerup
Registration no.:35 04 30 55
Established:1 February 2013
Financial year:1 January – 31 December

Ownership
Gerda og Victor B. Strand Holding A/S is a fully owned
subsidiary of Gerda & Victor B. Strands Fond

Group companies

Toms Gruppen A/S
Toms Allé 1, 2750 Ballerup, Denmark

Toms Sverige AB
Hamngatan 17, 302 43 Halmstad, Sweden

Toms Polska Sp. z o.o.
Ul. Okrezna 27, 64-100 Leszno, Poland

Hanseatisches Chocoladen Kontor GmbH & Co. KG
An der Reeperbahn 10, 28217 Bremen, Germany

 

Please click here for complete list of subsidiaries

*) This entity is not included in this Annual Report.

Revenue 2024

DKK 1 million

DENMARK/SWEDEN 64%

DKK 100 million

GERMAN 13%

DKK 100 million

OTHER 23%

100

GROUP EMPLOYEES
(2023: 902)

DKK 1000 million

GROUP REVENUE
(2023: DKK 1,661 million)

Our values - the four C’s

Courage

Creativity

Collaboration

Commitment

Five years overview

Financials

20242023202220212020

 

Results (DKKm)
Revenue1,683.51,660.91,613.01,450.7 1,253.7
Gross profit443.6457.4 470.6 419.2 282.4
Operating profit before special items *98.0 97.6 99.180.3 -3.3
Operating profit 82.5 49.8 95.3 75.1 -26.0
Net financials -6.0 21.3 -8.3 -22.4 -40.8
Profit/loss before tax 167.1 71.1 87.0 52.7 -66.8
Profit/loss for the year 123.2 54.3 71.956.0 -58.6

 

Financial position (DKKm)
Non-current assets 736.3 790.4 775.9818.1 830.4
Current assets 813.0 694.8 616.5 564.9 486.4
Total assets 1,549.31,485.2 1,392.4 1,383.0 1,316.8
Share capital 10.010.010.010.010.0
Equity 1,037.0 908.4 837.4763.8 703.1
Provisions 67.8 103.8 63.0 52.8 46.1
Long-term debt154.2 164.1170.3178.7 187.2
Short-term debt 290.3 308.9321.7 387.7 380.4
Total liabilities and equit1,549.3 1,485.21,392.4 1,383.0 1,316.8

 

Cash flow (DKKm)
Cash flow from operating activities 105.788.211.1213.0 101.6
Cash flow from investment activities 53.4-44.4-48.4 -49.7 -106.9
Of this investments in property,
plant and equipment
-38.0-50.3 -48.4 -49.3 -106.0
Cash flow from financial activities -20.1-17.1 -16.8 -72.3 4.6
Total increase/decrease in cash and cash
equivalents
139.026.7 -54.191.0 -0.7

Ratio

20242023202220212020

 

Financial ratios** (%)
Growth in operating profit before special items0.4-1.6 23.4 n/a n/a
Operating margin4.9 3.05.44.7-1.9
Return on invested capital8.35.1 10.5 8.5 -2.7
Adjusted return on invested capital9.9 9.9 11.0 9.1 -0.3
Gross margin 26.327.5 35.7 35.6 30.6
Current ratio 280.1 224.9 191.6 145.7 127.8
Solvency ratio66.9 61.6 60.1 55.253.4
Return on equity 12.7 6.2 9.0 7.6 -7.9
Average number of employees841902919928933

*) Special items are disclosed in note 1 to the financial statement.
**) Refer to definitions of financial ratios, etc. Click here.

Operating profit before special items

DKKm

Adjusted return on invested capital

%

Management’s Review

Financial highlights

Principal activities of the Company
Gerda og Victor B. Strand Holding A/S is a holding company. Toms Gruppen A/S manufactures, markets and sells confectionary.

Denmark is the largest market, including sales to Danish/ German border shops. Mainly branded products are sold in Denmark, and Toms Gruppen A/S is the market leader across the confectionery category as a total.

In Germany, sales mainly consist of premium chocolate under the brands of Hachez, Feodora and Anthon Berg.

In Sweden, sales consist of Pick-and-Mix sweets as well as branded products like Anthon Berg and Toms.

The international business mainly exports to the markets in North America, Europe and Asia. In several markets, sale is handled through distributors. The business unit is also responsible for sales to the travel retail market.

All production takes place at the Group’s own three factories in Denmark, Ballerup and Helseholmen and Poland, Nowa Sól, as well as a packaging facility in Poland, Leszno.

Read more

Revenue

DKKm

Gross margin

  • 22.5%
DKKm / %
  • 28.9%
  • 29,2%
  • 27,5%
  • 26,3%

Free cash flow

DKKm

Net working capital

DKKm

2025 Outlook

We expect continued pressure on our margins in 2025, mainly driven by significant increases in cocoa market prices. We expect revenue growth to be in the range of 10-15%, driven by required price increases and entailing volume pressure. Operating profit before special items in the following range: DKK 105 million – DKK 115 million is expected.

General risks

The Group’s main operating risks are attributable to the development of the consumer trends and the competitive environment in the retail market. In addition, risks are associated with the following: fluctuations of market prices of cocoa and other significant raw materials and future uncertainties related to macro-economic risks. In relation to recent announcement of closing the production operations in Ballerup, Denmark, the Group is exposed to the risk of retaining key employees.

Particular risks

Data Ethics
The only activity in the company is to own all shares in Toms Gruppen A/S. As the company does not process or store data covered by the data ethics politics requirements, it has been decided not to implement a data ethical politic.

Financial risk management

The Group is exposed to several financial risks, mainly within currency risk, arising from the operating and financing activities. The risks are an inherent part of the Group’s operating and financial activities. However, through effective risk management, below mentioned risks are monitored and mitigated to a reasonable level with low impact on the financial statements for the Group.

Read more

Equity and solvency

  • Solvency ratio
  • 53%
  • 55%
  • 60%
  • 61%
  • 67%

Statement by the Board of Directors and the Executive Board

Statement by the Board of
Directors and the Executive Board

The Board of Directors and the Executive Board have today discussed and approved the Annual Report of Gerda og Victor B. Strand Holding A/S for the financial year 1 January – 31 December 2024.

The Annual Report has been prepared in accordance with the Danish Financial Statements Act. 

It is our opinion that the consolidated financial statements and the parent company financial statements give a true and fair view of the Group’s and the Company’s financial position at 31 December 2024 and of the results of the Group’s and the Company’s operations and consolidated cash flows for the financial year 1 January – 31 December 2024.

Furthermore, in our opinion, the Management’s review gives a fair review of the development in the Group’s and the Company’s operations and financial matters and the results of the Group’s and the Company’s operations and financial position. 

We recommend that the Annual Report be approved at the Annual General Meeting.

Ballerup, 4 April 2025



Executive Board

Annette Zeipel
CEO

Claus Rosthof
CFO

Board of Directors

Henrik Brandt
Chairman

Carsten Bennike
Vice Chairman

Peter Giørtz-Carlsen
Vice Chairman

Jesper Terndrup Madsen

Anuradha Chugh

Martin Schlatter

Torben Klyhn Andersen
(E)

René Brink Hansen
(E)

Klaus Toxborg Petersen
(E)

Financial risk management

Interest rate risks
Interest rate risks arise in relation to interest-bearing assets and liabilities. The Group is in a net debt position which is expected to continue into 2025. The Group is mainly financed through fixed interest rate mortgage loans. The interest rate risk will therefore be very limited.

Liquidity risks
Liquidity risk results from the Group’s potential inability or difficulty in meeting the contractual obligations associated with the financial liabilities due to insufficient liquidity. The Group has an uncommitted overdraft facility to cover periods with cash deficit. The Group expects to have surplus during most of 2025.

Currency risks
The Group’s currency risks occur mainly due to an imbalance between income and expenses in different currencies (transaction risk), because the Group consists of companies with a functional currency other than DKK (translation risk)

Net investment risk: The Group incurs currency risk, mainly due to net investments in Poland. The Group has decided not to hedge the currency risk related to net investments in foreign subsidiaries but monitor the effect closely.

The Group is exposed to both transaction and translation effects from foreign exchange rates.

Transaction risk: The Group incurs costs in foreign currency for the purchase of raw materials and investments, and the individual companies have revenues in foreign currencies. The Group’s currency policy stipulates as a rule that the net cash flows in the major currencies (SEK, PLN, USD) must be hedged according to policy. Hedging is mainly made by using forward contracts.

Translation risk: For 2024, the statement of profit and loss and financial position were affected mainly by fluctuations in PLN and SEK. Credit risks The Group’s credit risks are related to the primary financial assets. The Group’s policy for undertaking credit risks means that all new major customers and other business partners must be credit rated. A large proportion of transactions with customers outside the local markets are insured. Furthermore, significant non-insured customers are reviewed on a periodic basis.

Sustainability and corporate responsibility

The Group has decided to publish the statutory report on social responsibility according to section 99a of the Danish Financial Statements Act on our website. Our non-financial report can be found at Toms – Reports and policies (tomsgroup.com) and is an integral part of the Management’s review.

Gender distribution in the workforce and management
 Toms Group is dedicated to pursuing a balanced gender distribution in its workforce and management. We strive to recruit and maintain a diverse workforce by including diversity parameters in our employee initiatives. Our Diversity Policy establishes the framework for this endeavour.

In 2024, the Executive Board comprised six members elected by the Annual General Meeting, one of whom was a woman (16.7%). Our target is a 40/60 gender distribution by 2028, i.e. at least two members of the underrepresented gender elected by the Annual General Meeting (33.3%).

The top management team at Toms Group comprises nine members, with a gender distribution in 2024 of five women and four men (44%). This fulfils our ambition of equal gender distribution in our top management. In 2023, the top management team comprised eight members: four men and four women (50%).

As for the Group’s 67 members of other management levels (middle and line managers below the top management level), the female gender was underrepresented in 2024, with a distribution of 23 women (34.3 %) and 44 men. In 2023, there were 77 members of other management levels, with 27 women (35%) and 50 men. The ambition is to achieve an equal gender distribution in other management levels.

Financial highlights

Development in activities and financial position
The Group’s revenue for 2024 amounted to DKK 1,684 million (2023: DKK 1,661 million), an increase of 1.4% compared to 2023. The revenue growth was mainly driven by the export and travel retail markets. The growth was below our 2024 expectations due to negative impacts of passing on increases to our customers.

Despite a challenging 2024 with pressure on our margins from increased raw material costs, mainly cocoa, the Group managed to deliver a profit before special items of DKK 98 million (2023: DKK 98 million), which was in line with last year’s expectation.

Operating profit before financial items amounted to DKK 173 million (2023: DKK 50 million), an increase of DKK 123 million, mainly driven by the divestment of production property related to the discontinued operations in Germany (DKK 91 million).

In 2024, financial expenses, net amounted to DKK 6 million (2023: financial income, net DKK 21 million). The development was mainly driven by the exchange rate development of SEK.

The net result for 2024 amounted to DKK 123 million (2023: 54 million).

Balance sheet and equity development
The Group’s total assets at year-end increased by DKK 64 million in 2024 to DKK 1,549 million. At 31 December 2024, equity amounted to DKK 1,037 million (2023: DKK 908 million), mainly driven by the profit for the year of DKK 123 million. The growth in equity, increases the solvency ratio for 2024 to 66.9% from 61.6% in 2023. Cash generation Cash flow from operating activities was DKK 106 million (2023: DKK 88 million). The increase in operating profit was the main reason for the stronger cash flow. Changes in provisions represented an outflow of DKK 31 million (2023: inflow of DKK 25 million), primarily due to releases related to the closure of the German operations during 2024.

Cash flow from investing activities was an inflow of DKK 53 million (2023: outflow of DKK 44 million). The increase of DKK 97 million was mainly a result of the divestment of production property related to the discontinued operations in Germany (DKK 91 million).

Cash flow from financing activities was an outflow of DKK 20 million (2023: outflow of DKK 17 million).

The total the cash flow for the year amounted to DKK 139 million compared to DKK 27 million in 2023.

Development activities
Costs are continuously incurred for development of the product portfolio. Development activities include the development of new products as well as improvement of existing products and concepts. All development costs were expensed.

Related parties

Gerda & Vicotr B. Strand Holding A/S’ related parties consists the following:

Control:

Gerda og Victor B. Strands Fond and its Board of Directors, Ballerup, Denmark

Other related parties:

Toms Gruppen A/S, Ballerup, Denmark – Subsidiary

Toms Sverige AB, Halmstad, Sweden – Subsidiary

Toms Polska Sp. z.o.o, Leszno, Poland – Subsidiary

Hanseatische Chocolade GmbH, Bremen, Germany – Subsidiary

Hanseatische Geschäftsführungs GmbH, Bremen, Germany – Subsidiary

Hanseatische Chocoladen Kontor GmbH & Co. KG, Bremen, Germany – Subsidiary

FHG Beteiligungsgesellschaft mbH & Co. KG, Bremen, Germany – Subsidiary

Hawopral GmbH, Bremen, Germany – Subsidiary

 

Related parties also include Board of Directors, the Board and Management, hereunder exectuive employees.

The Company has chosen only to disclose transactions which have not been made on market terms in accordance with section 98 (c) (6) of the Danish Financial Statements Act.

Definition and Terms

Definitions
Return on invested capital:Operating profit in percent of the average of total assets less cash, less liabilities excluding interest bearing debt
Adjusted return on invested capital:Operating profit before special items in percent of the average of total
assets less cash less liabilities excluding interest bearing debt.
Net Working Capital:Inventories and trade receivables plus other receivables minus trade
payables and other payables
Free Cash Flow:Inventories and trade receivables plus other receivables minus trade
payables and other payablest
Operating margin:Operating profit in percent of revenue
Return on equity:Profit from ordinary activities after tax in percent of average equity
Current ratio:Profit from ordinary activities after tax in percent of average equity
Cross margin:Gross profit in percent of revenue
Operating profit before special item:Gross profit in percent of revenue
Operating profit:Operating profit before impairments, restructuring cost and other
cost not related to ordinary activities
Solvency ratio:Equity at year end in percent of total equity and liabilities at year end

 

Terms
Sugar confectionery:Equity at year end in percent of total equity and liabilities at year end
International:Internal segment. Includes export (except Sweden and Travel Retail)
Travel Retail:Ferry and airport sales
Special items:Refer to note 1