Årsrapport 30700228 EY Godkendt Revisionspartnerselskab Dalgasgade 27, 3. sal 7400 Herning 2024-01-01 2024-12-31 2023-01-01 2023-12-31 62707828 Papyrus A/S Mileparken 22, 2. 2740 Skovlunde 1966-07-28 Ballerup Danske Bank PricewaterhouseCoopers Statsautoriseret Revisionspartnerselskab 33771231 Strandvejen 44 DK-2 00 Hellerup 2025-07-08 Jens Thurøe Regnskabsklasse C, mellemstor virksomhed Revisionspåtegning Grundlag for konklusion Konklusion true 2025-07-08 2025-07-08 CaseWare Working Papers Skovlunde Joris Maria H. Lambert Jens Thurøe Chairman Joris Maria H. Lambert Jeno Szilagyi DK-2900 Hellerup Bo Schou-Jacobsen James Liang State Authorised Public Accountant mne28703 State Authorised Public Accountant mne34549 291902000 238575000 215025000 18733000 7871000 2911000 -521000 1238000 -189000 -1798000 -1651000 44902000 6639000 2271000 126557000 161967000 150302000 0 0 0 0 405000 77030000 44029000 67390000 2 5.2 17 3.5 1.8 7.2 11.1 23.5 10.4 8.9 55.7 57.9 60.9 27.2 44.8 5.9 15.8 74.2 11.9 3.4 226475000 226471000 193701000 189764000 0 168000 16494000 11768000 16280000 25107000 11694000 12600000 18000 34000 82000 645000 4486000 11828000 963000 4018000 1484000 2780000 3965000 13066000 1512000 3094000 2453000 9972000 34000 52000 34000 52000 34000 52000 13669000 15004000 13669000 15004000 4611000 27603000 36462000 34495000 994000 4110000 4102000 2486000 1380000 1589000 47549000 70283000 61218000 85287000 61252000 85339000 30000000 30000000 178000 3124000 3912000 16278000 34090000 49402000 19164000 27920000 2936000 2083000 116000 0 4946000 5934000 27162000 35937000 27162000 35937000 61252000 85339000 30000000 9430000 37600000 -6306000 16278000 0 37600000 30000000 3124000 16278000 0 -1487000 0 -1459000 3912000 0 16278000 30000000 178000 3912000 9502000 10319000 1629000 1714000 222000 206000 341000 361000 11694000 12600000 17 18 870000 1205000 93000 2813000 44000 0 1440000 2780000 1140000 2875000 372000 219000 3912000 16278000 -1459000 -6306000 35535000 35535000 35483000 18000 35501000 34000 300 30000000 30000000 -4110000 -6985000 Today, the Board of Directors and the Executive Board have discussed and approved the annual report of Papyrus A/S for the financial year 1 January - 31 December 2024. The annual report is prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the financial position of the Company at 31 December 2024 and of the results of the Company's operations for the financial year 1 January - 31 December 2024. Further, in our opinion, the Management's review gives a fair review of the matters discussed in the Management's review. We recommend that the annual report be approved at the annual general meeting. To the shareholder of Papyrus A/S In our opinion, the Financial Statements give a true and fair view of the financial position of the Company at 31 December 2024, and of the results of the Company’s operations and cash flows for the financial year 1 January - 31 December 2024 in accordance with the Danish Financial Statements Act. We have audited the Financial Statements of Papyrus A/S for the financial year 1 January - 31 December 2024, which comprise income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies (“the Financial Statements”). We conducted our audit in accordance with International Standards on Auditing (ISAs) and the additional requirements applicable in Denmark. Our responsibilities under those standards and requirements are further described in the “Auditor’s responsibilities for the audit of the Financial Statements” section of our report. We are independent of the Company in accordance with the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (IESBA Code) and the additional ethical requirements applicable in Denmark, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Management is responsible for the Management's review. Our opinion on the financial statements does not cover the Management's review, and we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the Management's review and, in doing so, consider whether the Management's review is materially inconsistent with the financial statements or our knowledge obtained during the audit, or otherwise appears to be materially misstated. Moreover, it is our responsibility to consider whether the Management's review provides the information required under the Danish Financial Statements Act. Based on the work we have performed, in our view, Management’s Review is in accordance with the Financial Statements and has been prepared in accordance with the requirements of the Danish Financial Statements Act. We did not identify any material misstatement in Management’s Review. Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the Danish Financial Statements Act, and for such internal control as Management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the Financial Statements, Management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting in preparing the Financial Statements unless Management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so. Our objectives are to obtain reasonable assurance about whether the Financial Statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Financial Statements. As part of an audit conducted in accordance with ISAs and the additional requirements applicable in Denmark, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the Financial Statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by Management. Conclude on the appropriateness of Management’s use of the going concern basis of accounting in preparing the Financial Statements and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Financial Statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern. Evaluate the overall presentation, structure and contents of the Financial Statements, including the disclosures, and whether the Financial Statements represent the underlying transactions and events in a manner that gives a true and fair view. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. The financial ratios stated under "Financial highlights" have been calculated as follows: Operating profit/loss Profit/loss before net financials +/- Other operating income and other operating expenses Operating margin Operating profit/loss (EBIT) x 100 Revenue Gross margin Gross profit/loss x 100 Revenue Equity ratio Equity, year-end x 100 Total equity and liabilities, year-end Return on equity Profit/loss after tax x 100 Average equity Papyrus A/S is a wholesaler and service company selling graphic paper, cardboard, stationery and commodities. In the year under review, the Company carried out efficiency enhancing measures and created the basis for significant synergies through a new Scandinavian organization with local, country-based sales entities, whereas other functions have been pooled in shared Scandinavian entities. It is essential to the Company to have considerable market and product knowledge of customers and suppliers. In addition to this, reliability of delivery and services are important parameters in the competition on the market. The main activity area of Papyrus is the Danish home market. The development within financial conditions, information technology, customer structure and earnings in the graphics trade affect the Company's revenue and profit. Primarily the graphic division still sees a concentration of companies towards larger units. Furthermore, during 2024, we can see significant changes influenced by both internal and external factors. Economic challenges include the impact of a broader economic slowdown and uncertain international markets. In 2024, Papyrus completed a merger with intra-group company Scaldia A/S. The main purpose of merging the companies is to streamline operations and reduce administration by having one legal entity instead of two. There are no uncertainties in recognition or measurement affecting the financial statements. Any potential uncertainties are considered immaterial and have therefore not been specified. No unusual circumstances occurred during the financial year that have affected recognition or measurement. Therefore, no specific section on this has been included. The income statement for 2024 shows a profit of DKK 2,453 thousand against a profit of DKK 9,972 thousand last year, and the balance sheet at 31 December 2024 shows equity of DKK 34,090 thousand. In 2024 the company's revenue decreased compared to 2023. Regarding capital formation, the focus during 2024 has been on reducing accounts receivable through the implementation of a factoring solution. This has contributed to freeing up liquidity and thereby improving the company's cash flow.The company has also worked on adjusting its inventory levels. Comparative figures have not been restated due to the merger. Profit before tax for the year is below expectations and the forecast made last year. Management considers the financial performance satisfactory in the light of the market situation, and the economic climate e.g. regards to inflation and energy prices etc. The big profit decrease compared to 2023 is mainly explained by lower demand due to broader economic slowdown and uncertain international markets. The graphic division has maintained and expanded its position as the leading and largest wholesaler in its field in Denmark. The company has not conducted any research and development activities during the year. Therefore, no section on this has been included in the Management’s Review. Management forecasts a slight decrease in demands for the Company’s products but expects its continuous innovation efforts to help secure its leading market position. The Company expects a profit before tax in 2025 of DKK 8,500 - 10,000 thousand. The annual report of Papyrus A/S for 2024 has been prepared in accordance with the provisions in the Danish Financial Statements Act applying to medium-sized reporting class C entities. The accounting policies used in the preparation of the financial statements are consistent with those of last year. With reference to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are part of the consolidated cash flow statement for the Parent Company, Opti Group. Reporting currency The financial statements are presented in Danish kroner (DKK'000). Intra-group business combinations The book value method is applied to business combinations such as acquisition and disposal of investments, mergers, demergers, contributions of assets and share conversions, etc. in which entities controlled by the parent company are involved, provided that the combination is considered completed at the time of acquisition without any restatement of comparative figures. Differences between the agreed consideration and the carrying amount of the acquiree are recognised directly in equity. There are no trangible or intangible fixed assets in Scaldia A/S, and losses cannot be transferred in a taxable merger. The taxable merger has an accounting effective date of 01. January 2024. On initial recognition, transactions denominated in foreign currencies are translated at the exchange rate at the transaction date. Foreign exchange differences arising between the exchange rates at the transaction date and the date of payment are recognised in the income statement as financial income or financial expenses. Receivables and payables and other monetary items denominated in foreign currencies are translated at the exchange rate at the balance sheet date. The difference between the exchange rates at the balance sheet date and the date at which the receivable or payable arose or was recognised in the most recent financial statements is recognised in the income statement as financial income or financial expenses. The Company has chosen IFRS 15 as interpretation for revenue recognition. Revenue is recognized when the control over the individual identifiable delivery obligation is fulfilled towards the customer, so that the customer obtains control of the asset or the service. The sales consideration is allocated proportionally to the individual delivery obligations of the agreement. The date of the transfer of the most significant rewards and risks is based on standardised terms of delivery. Revenue is measured at the fair value of the agreed consideration excluding VAT and taxes charged on behalf of third parties. All discounts and rebates granted are recognised in revenue. Other Operating income comprise items of a secondary nature relative to the Company's core activities, including gains on the sale of fixed assets. Cost of sales includes the cost of goods used in generating the year's revenue. Other external expenses include the year's expenses relating to the Company's core activities, including expenses relating to distribution, sale, advertising, administration, premises, bad debts, payments under operating leases, etc. Staff costs include wages and salaries, including compensated absence and pension to the Company's employees, as well other social security contributions, etc. The item is net of refunds from public authorities. The item comprises depreciation of property, plant and equipment. The basis of depreciation, which is calculated as cost less any residual value, is depreciated on a straight line basis over the expected useful life. The expected useful lives of the assets are as follows: Plant and machinery 5-7 years Other operating expenses comprise items of a secondary nature relative to the Company's core activities, including losses on the sale of fixed assets. Financial income and expenses are recognised in the income statement at the amounts that concern the financial year. Net financials include interest income and expenses as well as allowances and surcharges under the advance-payment-of-tax scheme, etc. Tax for the year includes current tax on the year's expected taxable income and the year's deferred tax adjustments. The portion of the tax for the year that relates to the profit/loss for the year is recognised in the income statement, whereas the portion that relates to transactions taken to equity is recognised in equity. The entity is jointly taxed with other Danish group entities. The total Danish income tax charge is allocated between profit/loss-making Danish entities in proportion to their taxable income (full absorption). Jointly taxed entities entitled to a tax refund are reimbursed by the management company based on the rates applicable to interest allowances, and jointly taxed entities which have paid too little tax pay a surcharge according to the rates applicable to interest surcharges to the management company. Property, plant and equipment Items of property, plant and equipment are measured at cost less accumulated depreciation and impairment losses. Cost includes the acquisition price and costs directly related to the acquisition until the time at which the asset is ready for use. Gains or losses are calculated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses from the disposal of property, plant and equipment are recognised in the income statement as other operating income or other operating expenses. The Company has chosen IAS 17 as interpretation for classification and recognition of leases. Leases that do not transfer substantially all the risks and rewards incident to the ownership to the Company are classified as operating leases. Payments relating to operating leases and any other rent agreements are recognised in the income statement over the term of the lease. The Company's aggregate liabilities relating to operating leases and other rent agreements are disclosed under "Contingent liabilities". The carrying amount of intangible assets and property, plant and equipment is assessed for impairment on an annual basis. Impairment tests are conducted on assets or groups of assets when there is evidence of impairment. The carrying amount of impaired assets is reduced to the higher of the net selling price and the value in use (recoverable amount). The recoverable amount is the higher of the net selling price of an asset and its value in use. The value in use is calculated as the present value of the expected net cash flows from the use of the asset or the group of assets and the expected net cash flows from the disposal of the asset or the group of assets after the end of the useful life. Previously recognised impairment losses are reversed when the reason for recognition no longer exists. Impairment losses on goodwill are not reversed. Inventories are measured at cost in accordance with the FIFO method. Where the net realisable value is lower than cost, inventories are written down to this lower value. The net realisable value of inventories is calculated as the sales amount less costs of completion and expenses required to effect the sale and is determined taking into account marketability, obsolescence and development in the expected selling price. The Company has chosen IAS 39 as interpretation for impairment write-down of financial receivables. Receivables are measured at amortised cost. An impairment loss is recognised if there is objective evidence that a receivable or a group of receivables is impaired. If there is objective evidence that an individual receivable has been impaired, an impairment loss is recognised on an individual basis. Receivables in respect of which there is no objective evidence of individual impairment are tested for objective evidence of impairment on a portfolio basis. The portfolios are primarily based on the debtors' domicile and credit ratings in line with the Company's risk management policy. The objective evidence applied to portfolios is determined based on historical loss experience. Impairment losses are calculated as the difference between the carrying amount of the receivables and the present value of the expected cash flows, including the realisable value of any collateral received. The effective interest rate for the individual receivable or portfolio is used as discount rate. Prepayments recognised under "Assets" comprise prepaid expenses regarding subsequent financial reporting years. Balances in the Group's cash pool scheme are not, due to the nature of the scheme, considered as cash, but are recognised under the financial statement item receivables from group entities. Proposed dividends Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Dividend proposed for the year is recognised as a liability once adopted at the annual general meeting (declaration date). Dividends expected to be distributed for the financial year are presented as a separate item under "Equity". Current tax payables and receivables are recognised in the balance sheet as the estimated income tax charge for the year, adjusted for prior-year taxes and tax paid on account. Deferred tax is measured according to the liability method on all temporary differences between the carrying amount and the tax base of assets and liabilities. However, deferred tax is not recognised on temporary differences relating to goodwill which is not deductible for tax purposes and on office premises and other items where temporary differences, apart from business combinations, arise at the date of acquisition without affecting either profit/loss for the year or taxable income. Where alternative tax rules can be applied to determine the tax base, deferred tax is measured based on Management's intended use of the asset or settlement of the liability, respectively. Deferred tax is measured according to the tax rules and at the tax rates applicable at the balance sheet date when the deferred tax is expected to crystallise as current tax. Deferred tax assets are recognised at the expected value of their utilisation; either as a set-off against tax on future income or as a set-off against deferred tax liabilities in the same legal tax entity. Changes in deferred tax due to changes in the tax rate are recognised in the income statement. The Company has chosen IAS 39 as interpretation for liabilities. Financial liabilities are recognised at the date of borrowing at the net proceeds received less transaction costs paid. On subsequent recognition, financial liabilities are measured at amortised cost, corresponding to the capitalised value, using the effective interest rate. Accordingly, the difference between the proceeds and the nominal value is recognised in the income statement over the term of the loan. Financial liabilities also include the capitalised residual lease liability in respect of finance leases. Other liabilities are measured at net realisable value. After the balance sheet date no events have occurred which could materially affect the Company’s financial position. Members of Board of Directors and Executive Board does not receive any remuneration. Note 13 provides more details on security for loans, etc. as regards property, plant and equipment. Other contingent liabilities The Company is jointly taxed with Stadsing A/S, which acts as management company, and is jointly and severally liable with other jointly taxed group entities for payment of income taxes as well as withholding taxes on interest, royalties and dividends. Other rent and lease liabilities: DKK'000 2024 2023 Rent and lease liabilities 1,558 1,387 The Company has provided a company charge in operating equipment, inventory, receivables, etc., of nominally EUR 9,900 thousand (DKK 73,600 thousand) as security for its bank debt. Parties exercising control Related party Domicile Basis for control Papyrus AB Sweden Immediate parent OptiGroup Holding AB Sweden Ultimate parent Information about consolidated financial statements Parent Domicile Requisitioning of the parent company's consolidated financial statements OptiGroup AB Sweden Flöjelbergsgatan 1, SE-431 37 Mölndal (Södra Porten), Sweden Related party transactions The Company solely discloses related party transactions that have not been carried out on an arm's length basis, cf. section 98c(7) of the Danish Financial Statements Act. All transactions have been carried out on an arm's length basis. 62707828 2024-01-01 2024-12-31 62707828 2024-01-01 62707828 2023-12-31 62707828 2024-12-31 62707828 2023-01-01 62707828 2024-01-01 2024-12-31 1 62707828 2024-01-01 2024-12-31 2 62707828 2024-01-01 2024-12-31 3 62707828 2024-12-31 1 62707828 2024-01-01 2024-12-31 1 62707828 2024-01-01 2024-12-31 2 62707828 2024-01-01 2024-12-31 1 62707828 2024-01-01 e:PlantAndMachineryMember 62707828 2024-01-01 2024-12-31 e:PlantAndMachineryMember 62707828 2024-12-31 e:PlantAndMachineryMember 62707828 2023-01-01 e:ContributedCapitalMember 62707828 2024-01-01 e:ContributedCapitalMember 62707828 2024-01-01 2024-12-31 e:ContributedCapitalMember 62707828 2024-12-31 e:ContributedCapitalMember 62707828 2024-01-01 e:RetainedEarningsMember 62707828 2024-01-01 2024-12-31 e:RetainedEarningsMember 62707828 2024-12-31 e:RetainedEarningsMember 62707828 2023-01-01 e:RetainedEarningsMember 62707828 2023-01-01 2023-12-31 e:RetainedEarningsMember 62707828 2024-01-01 e:ProposedDividendRecognisedInEquityMember 62707828 2024-01-01 2024-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2024-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2023-01-01 e:ProposedDividendRecognisedInEquityMember 62707828 2023-01-01 2023-12-31 e:ProposedDividendRecognisedInEquityMember 62707828 2023-01-01 2023-12-31 62707828 2022-01-01 2022-12-31 62707828 2022-12-31 62707828 2021-01-01 2021-12-31 62707828 2021-12-31 62707828 2020-01-01 2020-12-31 62707828 2020-12-31 62707828 2023-12-31 1 iso4217:DKK xbrli:shares xbrli:pure