459985172024-01-012024-12-31459985172024-12-31459985172023-12-31fsa:ContributedCapitalMember459985172023-12-31fsa:ReserveForCurrentValueOfHedgingMember459985172023-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember459985172023-12-31fsa:ReserveForDevelopmentExpenditureMember459985172023-12-31fsa:RetainedEarningsMember459985172023-12-31459985172024-01-012024-12-31fsa:ContributedCapitalMember459985172024-01-012024-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember459985172024-01-012024-12-31fsa:RetainedEarningsMember459985172024-01-012024-12-31fsa:ReserveForCurrentValueOfHedgingMember459985172024-01-012024-12-31fsa:ReserveForDevelopmentExpenditureMember459985172024-12-31fsa:ContributedCapitalMember459985172024-12-31fsa:ReserveForCurrentValueOfHedgingMember459985172024-12-31fsa:ReserveForNetRevaluationAccordingToEquityMethodMember459985172024-12-31fsa:ReserveForDevelopmentExpenditureMember459985172024-12-31fsa:RetainedEarningsMember459985172024-01-012024-12-31fsa:ManagementMember459985172024-01-012024-12-31fsa:BoardOfDirectorsMember459985172024-01-012024-12-31fsa:OtherShorttermPayablesMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:LiquidationAccountMember459985172024-01-012024-12-31cmn:ConsolidatedMember459985172024-01-012024-12-31cmn:ConsolidatedMember1459985172024-01-012024-12-31cmn:ConsolidatedMember2459985172024-01-012024-12-31cmn:ConsolidatedMember1459985172024-01-012024-12-31cmn:ConsolidatedMember2459985172024-01-012024-12-31cmn:ConsolidatedMember3459985172024-01-012024-12-31cmn:ConsolidatedMember4459985172024-01-012024-12-31cmn:ConsolidatedMember5459985172024-01-012024-12-31cmn:ConsolidatedMember6459985172024-01-012024-12-31cmn:ConsolidatedMember1459985172024-01-012024-12-31cmn:ConsolidatedMember2459985172024-12-31cmn:ConsolidatedMember459985172023-12-31cmn:ConsolidatedMemberfsa:ContributedCapitalMember459985172023-12-31cmn:ConsolidatedMemberfsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember459985172023-12-31cmn:ConsolidatedMemberfsa:ReserveForCurrentValueOfHedgingMember459985172023-12-31cmn:ConsolidatedMemberfsa:ReserveForNetRevaluationAccordingToEquityMethodMember459985172023-12-31cmn:ConsolidatedMemberfsa:RetainedEarningsMember459985172023-12-31cmn:ConsolidatedMemberfsa:EquityAttributableToParentMember459985172023-12-31cmn:ConsolidatedMemberfsa:MinorityInterestsMember459985172023-12-31cmn:ConsolidatedMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:RetainedEarningsMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:EquityAttributableToParentMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:MinorityInterestsMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:ContributedCapitalMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:ReserveForNetRevaluationAccordingToEquityMethodMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:ReserveForCurrentValueOfHedgingMember459985172024-12-31cmn:ConsolidatedMemberfsa:ContributedCapitalMember459985172024-12-31cmn:ConsolidatedMemberfsa:ReserveForCurrentValueAdjustmentsOfCurrencyGainsMember459985172024-12-31cmn:ConsolidatedMemberfsa:ReserveForCurrentValueOfHedgingMember459985172024-12-31cmn:ConsolidatedMemberfsa:ReserveForNetRevaluationAccordingToEquityMethodMember459985172024-12-31cmn:ConsolidatedMemberfsa:RetainedEarningsMember459985172024-12-31cmn:ConsolidatedMemberfsa:EquityAttributableToParentMember459985172024-12-31cmn:ConsolidatedMemberfsa:MinorityInterestsMember459985172024-01-012024-12-31cmn:ConsolidatedMember1459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:ManagementMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:BoardOfDirectorsMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:OtherShorttermPayablesMember459985172024-01-012024-12-31cmn:ConsolidatedMemberfsa:ShorttermDeferredIncomeMember459985172023-01-012023-12-31459985172023-01-012023-12-31fsa:ManagementMember459985172023-01-012023-12-31fsa:BoardOfDirectorsMember459985172023-01-012023-12-31cmn:ConsolidatedMember459985172023-01-012023-12-31cmn:ConsolidatedMember1459985172022-12-31cmn:ConsolidatedMember459985172023-01-012023-12-31cmn:ConsolidatedMemberfsa:ManagementMember459985172023-01-012023-12-31cmn:ConsolidatedMemberfsa:BoardOfDirectorsMember459985172022-12-31459985172021-12-31xbrli:pureiso4217:DKK45998517ÅrsrapportWithin our highest management level (Kvadrat A/S Board), we follow the recommendations of the Danish Business Authority to pursue a 40/60% distribution of either men or women employees. This 10% allowance ensures higher levels of flexibility in response to the labour marketUnusual circumstances affecting recognition and measurementNo circumstances exert material influence on the consolidated financial statements and parent company financial statements. Neither the Group nor the Parent company is exposed to risks apart from those generally occurring in our line of business. 202405175776500065During 2024, a change of composition in our Kvadrat A/S Board led to 7 % points decrease in the representation of women in our A/S board, from 40% (2023) to 33% (2024). Our short- and long-term goal for 2024 is return at least to a 40/60 gender distribution. 6The Board of Directors and the Executive Board have today considered and approved the annual report of Kvadrat A/S for the financial year 01.01.2024 - 31.12.2024.0.4000000.330000.20000Other management levels in Kvadrat A/S include two levels; (1) Kvadrat´s executive management, and (2) management within A/S with personnel responsibilities and with direct report to Kvadrat´s executive management.0.33000The annual report is presented in accordance with the Danish Financial Statements Act.0.4000035060000.400000.400000.40000In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2024 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2024 - 31.12.2024.30737645000283034We believe that the management commentary contains a fair review of the affairs and conditions referred to therein.0.400003444680000.430000.500000.47000We recommend the annual report for adoption at the Annual General Meeting.0.400006791580000.400000.400000.40000Ebeltoft733793000608149000721149000Anders Byriel256000008215000026655000CEO491021000380000458157000Mette Rønn Bendix115500000-11521000106232000Product Director1528720008017000183415000Lars Monrad-Gylling176650000880000155698000Chairman313580005723600028950000Anders Byriel216000-598600000Mette Rønn Bendix-5535200014941000-1233000Torsten Leif Moe14135000-7480100031046000Claire Midwood9190000744010001596000Christian Madsbjerg251100051480003824000To the shareholder of Kvadrat A/S437020008261200044226000We have audited the consolidated financial statements and the parent financial statements of Kvadrat A/S for the financial year 01.01.2024 - 31.12.2024, which comprise the income statement, balance sheet, statement of changes in equity and notes, including a summary of significant accounting policies, for the Group as well as the Parent, and the consolidated cash flow statement. The consolidated financial statements and the parent financial statements are prepared in accordance with the Danish Financial Statements Act. ​ ​In our opinion, the consolidated financial statements and the parent financial statements give a true and fair view of the Group's and the Parent's financial position at 31.12.2024 and of the results of their operations and the consolidated cash flows for the financial year 01.01.2024 - 31.12.2024 in accordance with the Danish Financial Statements Act.-732180001234000-8993000We conducted our audit in accordance with International Standards on Auditing (ISAs) and 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 consolidated financial statements and the parent financial statements" section of this auditor’s report. We are independent of the Group 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.955000163395000-13276000Management is responsible for the preparation of consolidated financial statements and parent 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 consolidated financial statements and parent financial statements that are free from material misstatement, ​whether due to fraud or error. ​ ​In preparing the consolidated financial statements and the parent financial statements, Management is responsible for assessing the Group's and the Entity’s ability to continue ​as a going concern, for disclosing, as applicable, matters related to going concern, and for using the going ​concern basis of accounting in preparing the consolidated financial statements and the parent financial statements unless Management either intends to liquidate ​the Entity or to cease operations, or has no realistic alternative but to do so.-741730001818280004283000Our objectives are to obtain reasonable assurance about whether the consolidated financial statements and the parent 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 consolidated financial statements and parent 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 consolidated financial statements and the parent 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 Group's and the Entity’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 consolidated financial statements and the parent 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 Group's and the Entity’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 consolidated financial statements and the parent 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 ​Group and the ​Entity to cease to continue as a going concern.​Evaluate the overall presentation, structure and content of the consolidated financial statements and the parent financial statements, including the disclosures ​in the notes, and whether the consolidated financial statements and the parent financial statements represent the underlying transactions and ​​events in a manner that gives a true and fair view.Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the consolidated financial statements and the parent financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.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.681830001098100053098000157280006388100012980000Management is responsible for the management commentary. ​ ​Our opinion on the consolidated financial statements and the parent financial statements does not cover the management commentary, and we do not express ​any form of assurance conclusion thereon. ​ ​In connection with our audit of the consolidated financial statements and the parent financial statements, our responsibility is to read the management ​commentary and, in doing so, consider whether the management commentary is materially inconsistent with ​the consolidated financial statements and the parent financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. ​Moreover, it is our responsibility to consider whether the management commentary provides the information ​required by relevant law and regulations.Based on the work we have performed, we conclude that the management commentary is in accordance with ​the consolidated financial statements and the parent financial statements and has been prepared in accordance with the requirements in the relevant law and regulations. We did not identify any material misstatement of the management commentary.839110006636200066078000143420000323052000139754000Aarhus3317000476730002854000Michael Bach278720001659500022455000mne19691217600011693000640000State Authorised Public Accountant17678500075961000165703000Jens Lauridsen290740000562408000327437000mne3432352534000278500053945000State Authorised Public Accountant1659500041041200017835000Financial highlights2024 DKK'0002023 DKK'0002022 DKK'0002021 DKK'0002020 DKK'000Key figuresRevenue1,644,7261,757,7651,868,1631,596,0571,452,993Gross profit/loss697,335679,158661,063604,923522,182Operating profit/loss72,648(11,521)35,41744,41514,384Net financials(58,707)(56,356)(11,464)(16,868)(9,429)Profit/loss for the year10,913(74,801)16,57627,1906,495Profit for the year excl . minority interests4,280(74,173)20,28518,909363Balance sheet total1,356,0831,366,0171,549,5241,527,2131,245,420Investments in property, plant and equipment6,97739,24643,494152,02640,992Equity333,942327,076411,644433,386375,940Equity excl. minority interests311,450306,480378,604396,927364,380Average number of employees9671,0221,057986898RatiosGross margin (%)42.4038.6435.3937.9035.94Return on equity (%)1.39(21.65)5.234.970.09Equity ratio (%)22.9722.4424.4325.9929.26Financial highlights are defined and calculated in accordance with the current version of "Recommendations & Ratios" issued by the CFA Society Denmark.Gross margin (%) :​Gross profit/loss * 100 ​RevenueReturn on equity (%) :Profit/loss for the year excl. minority interests * 100 ​Average equity excl. minority interestsEquity ratio (%) :​Equity excl. minority interests * 100 ​Balance sheet total17740001350000997000Primary activitiesKvadrat has become a global leader in textile innovation and design.​ ​We develop, produce and sell contemporary high-quality textiles and textile-related products for architects, designers and private consumers to specify in public spaces and domestic interiors. 361643000414547000400214000Development in activities and financesThe revenue for the Group for 2024 amounted to DKK 1.645m compared to DKK 1.758m in 2023. Operating profit/loss amounted to DKK 73m compared to DKK -12m in 2023 and profit before tax amounted to DKK 14m compared to DKK -60m in 2023. The revenue for the Parent company for 2024 amounted to DKK 721m compared to DKK 734m in 2023. Operating profit/loss amounted to DKK -1m compared to DKK -55m in 2023 and profit before tax amounted to DKK -9m compared to DKK -73m in 2023. The result for both the Group and the Parent company has in FY 2024 been significantly affected primarily by the following circumstances. Unstable marketplaces Firstly, the marketplaces in which we operate were challenged in both activity levels and short-term outlooks during 2024 resulting in a decrease in consolidated revenue of 113m DKK or roughly 6 % compared to 2023. This is – in our perspective – attributable to an array of different factors and variables but contributing factors are without any doubts increases in inflation in the markets we operate in, high cost of capital and a slowdown in the construction and real-estate industries. Cost of capital Secondly, the cost of capital resulted in net financial costs of 59m DKK in 2024 to service the net interest-bearing debts of the Group consisting primarily of short-term credit facilities, long-term credit facilities, lease liabilities as well as mortgage debts. The net financial costs in 2023 amounted to 57m DKK resulting in an increase from 2023 to 2024 of 2m DKK. Strategic projects Thirdly, Kvadrat Group is still in the process of developing and growing the sale to the North American markets which is managed via Kvadrat Inc. Previously, Kvadrat Group had a long-standing and successful partnership with a local partner ensuring the distribution and sale of Kvadrat products in North America. This partnership was terminated with effect from 1 January 2021 and Kvadrat has since been building, developing, and improving the direct sale of Kvadrat products via Kvadrat Inc. This is a strategic project for Kvadrat Group which has required a significant number of resources and investments to make profitable within a relatively short time in the future – as was predicted when the strategic project was started. Organisational adjustments Fourthly and final, we have in 2024 worked to optimize and adjust our organisation and processes towards increased competitiveness. Increasing our competitiveness has resulted in a gross margin of 42.4% compared to 38.6% in 2024 and staff costs of 556m DKK compared to 608m DKK in 2023. 622339000209034000631995000Profit/loss for the year in relation to expected developmentsThe development in Group and Parent company revenue and profits must be compared to the primarily positive expectations for 2024 in the annual report for Kvadrat A/S for 2023. ​ The Executive Board and Board of Directors consider the results for 2024 to be unsatisfactory, even though profitability is significantly improved by cost savings and organisation adjustments. 27850004087000994000236549000235000222049000Uncertainty relating to recognition and measurementRecognition and measurement in the consolidated financial statements and Parent company financial statement are not subject to any material uncertainties.13500008070001224000OutlookWe continue expecting a general uncertainty in the markets – in which we operate – in 2025 at least partially. We will continue our optimisation work and expect to see 7-9% revenue growth & 20% operating profit growth in 2025 compared to 2024. 24068400039950000224267000 Knowledge resourcesDespite a difficult 2024, we continue to work systematically in developing all employees in the organization to be able to best execute our Group strategy. Via our two annual Performance & Learning Conversations between all employees and their direct manager, we ensure that we are aligned on what learnings need to be applied on an individual-, team- and company-level. ​ ​We have more than 140 managers across our production-, sales-, development companies as well as our headquarters in Ebeltoft. We have continued our work with our senior management team as well as a larger group of managers with our People Partner set up, where we internally support managers in people and performance-related topics. Instead of delegating leadership development to external consultants we train and support our managers from our People Development and utilize their knowledge of context and more direct availability. In 2024, we continue insourcing most training activities of our managers facilitated by our People Development department in collaboration with relevant external experts. This creates strong social and professional ties across the organization when leaders from different parts of the company are trained and educated together. ​ ​We continue to work on the quality of our leadership and work more proactively and formalized with our People and organizational reviews. We have our own New Manager Academy and a High Potential Academy for employees that we believe could assume more responsibility in a managerial role going forward. 52 high potentials have participated, and it has generated 20 new managers during the last 6 years. Finally, we are proceeding to build the necessary competencies through our Kvadrat Academy which serves as a training forum for all our employees. All training and competence development is organized as blended, a mix of digital and on-site learning. ​ ​In our employee surveys, the employees are interviewed about their general satisfaction and specific matters related to their everyday working life. In 2024 we achieved a score of 69 compared to 72 in 2023. We will continue​to work systematically to improve the score. In the 2024 Employee Survey we were happy to see a positive trend in the number of Sterling Managers (a balanced leader with both a high professional and leadership score). ​​Our strategic direction in Kvadrat​ The aspiration in Kvadrat is to “Push the boundaries of high-quality textiles through design and innovation”. This is based on Kvadrat being a dynamic, forward-looking design company that continuously seeks to push the boundaries of aesthetics and sustainable textile design globally. Kvadrat collaborates with architects to shape spaces, designers, and furniture manufacturers to craft furniture, and encourages consumers to bring their personality and identity with tactility and colour into their homes. ​ ​Success in Kvadrat is defined by four KPIs: Employee Temperature, Customer Pulse, Brand Reputation and Financial Health. These four KPIs are the ultimate objectives for both our short- and long-term success, and therefore, all activities must strive to maximize value across these dimensions. The four KPIs are included in Kvadrat’ s global incentive program. ​ ​The 2025/26 Kvadrat Group strategy ​The formalized group strategy covers a two-year period with the ambition to be able to become more competitive and profitable. The overall ambition of the 2025/26 Kvadrat Group strategy is to grow in a healthy way and to support the three selected strategic themes: ​ ​• Extreme focus ​• We are Kvadrat ​• Transformation ​ ​Extreme focus ​We will grow our volume, revenue and improve profitability in main categories through segments and sub-segments. We will win marked shares by having extreme focus on our core products, upholstery and curtains. ​ ​We are Kvadrat ​In 2025/26 our focus is also to continue strengthen our company culture and values. At Kvadrat, we push our boundaries of high-quality textiles through design and innovation. ​ ​Transformation ​We want to strengthen our organisation and business performance though category management and more end-to-end collaboration. This will be supported through different initiatives such as implementing global supply chain, further digitalization and learning & development. ​ ​Above themes are for us healthy growth in accordance with our next two-year strategy. 173880001808400025284000673350005400047533000Environmental performanceKvadrat is a member of the Science Based Target initiative and aims to reach net zero greenhouse gas emissions by 2040. On this journey we build upon our long-term commitment to quality design, work with our production partners to reduce our impact on resources and the environment and continuously aim to innovate materials, our products and business models to rethink the way we operate in this world. Communicating our impact transparently to our clients through quality data is key and in FY 2023 we therefore launched our first 10 Environmental Product Declarations (EPDs) for 120 of our textile products. More detailed information regarding our overall sustainability performance and targets can be found in our sustainability report (see link below). 807000193830003144000Research and development activitiesThe development of our products happens in close collaboration between external affiliated designers and our ​internal product development teams. ​ ​The costs related to research activities are expensed in the income statement. The costs related to development ​activities are either expensed in the income statement or capitalized in the balance sheet depending on the ​viability and economic return of the specific development project and whether the criteria for recognition in the ​balance sheet has been fulfilled. 1952700029163400032231000Statutory report on corporate social responsibility Our attitudes and initiatives regarding environmental issues, social responsibility and gender equality in management are described in our sustainability report under "Sustainability Statement" which can be found on our website at: https://www.kvadrat.dk/en/about/sustainability-applied/sustainability-report Our sustainability report outlines policies, performance and objectives for Kvadrat as a company and Group. It addresses the requirements outlined by the Danish Financial Statements Act § 99a on the reporting of corporate social responsibility (CSR). We strive for full compliance with the Corporate Sustainability Reporting Directive (CSRD) and, thereby, the European Sustainability Reporting Standards (ESRS). Short-, medium- and long-term time horizons applied in the sustainability statement align with those suggested in section 6.4 of ESRS 1 and secure Kvadrat pursues short-term benefits while accounting for long-term impacts, risks and opportunities. Where reasonable, we complement the ESRS disclosure requirements with performance measurements of the Global Reporting Initiative (GRI) standards and guiding frameworks such as the Greenhouse Gas Protocol. Kvadrat is a member of the UN Global Compact and submits its communication on progress (COP) annually, detailing information about our activities and developments according to the Ten Principles of the UN Global Compact and the 17 UN Sustainable Development Goals (SDGs), The report is structured into three main sections – General information, Environment, Social, Governance. 8407000974280003901000 Statutory report on the underrepresented gender2024202320222021Supreme management bodyTotal number of members6565Underrepresented gender (%)33.0040.0033.0020.00Target figures (%)40.0040.0040.0040.00Within our highest management level (Kvadrat A/S Board), we follow the recommendations of the Danish Business Authority to pursue a 40/60% distribution of either men or women employees. This 10% allowance ensures higher levels of flexibility in response to the labour marketDuring 2024, a change of composition in our Kvadrat A/S Board led to 7 % points decrease in the representation of women in our A/S board, from 40% (2023) to 33% (2024). Our short- and long-term goal for 2024 is return at least to a 40/60 gender distribution. 2024202320222021Other management levelsTotal number of members34302830Underrepresented gender (%)47.0040.0043.0050.00Target figures (%)40.0040.0040.0040.00Other management levels in Kvadrat A/S include two levels; (1) Kvadrat´s executive management, and (2) management within A/S with personnel responsibilities and with direct report to Kvadrat´s executive management.1179900080360900086570001252630001366017000120750000Statutory report on data ethics policyKvadrat has since 2021 a Data Ethics Policy, in alignment with section 99d of the Danish Financial Statements Act. Our Data Ethics Policy sets a moral framework for collecting, processing, and protecting personal and non-personal data at Kvadrat. Our Data Ethics policy builds upon four principles: Transparency, Integrity, Privacy, and Inclusion. Our policy is about protecting people and defining a balance between the vast possibilities of the digital world and the ethical framework in which Kvadrat can navigate. The policy provides transparency around Kvadrat’s ethical views, compliance, and governance regarding the collection and processing of data that we are responsible for. During 2024, we developed Kvadrat´s Guidelines for Artificial intelligence (AI). During 2025, we aim to strengthen the link between those guidelines and our Data Ethics Policy. The ownership of the policy will need to be further determined to secure stronger governance and continuous implementation of the policy. https://www.kvadrat.dk/en/legal 92280001000000002455000Events after the balance sheet dateNo events have occurred after the balance sheet date to this date, which would influence the evaluation of this annual report. 375175000-249000034747200016447260009975140007938000979467000596000100000000146100010000000039850007938000199571000807700066651500021354000306480000300750002854570005696600020596000414140006973350001202220003270760001318370005561240003064800002590000311403000685590005921000190480001027400040005921000216380001027400072648000275870002758700024742000-35500073281000824810005159100072600062660001353400044400005943300013654000136540001385600013586000120788000137256000946290002673000358540004048900026396000109130003895920005768210004001880006278300011610002617400018690003519000529090001003910005388400077259000346530002540002705200011150002583700026373000341700001446760002431900010808400019602000176131000564325000146100056316100092310006851130008800470006577900005315100099751400010173030009794670005549800021813660170001000000002940110007372000825320007938000489910001132000215000002135400017835000-74173000-2252600056966000105830006998500012022200077409000880000516096000572340000440700022226000-3810003859720001652000-1200001224000-6943000-50100039160300014222000178000225784000-39000043080003787800017800068400010893000031570008627000380700055064000-32619000-3807000971100039562000038000043996000390001519100058160000314279000523040000134105000249200039000839987000-37070000-26403000135608300013449800026403000100000000974280000-37820001022-1706000807700073720001706000277900011320000204376000-741730000311450000-628000022492000-155520003339420001555200024120000173590000197710003264200024742000-28359000561920007577000100000000138560008077000102367000300750003168500041414000568938000131837000538510001009880001 Revenue2024 DKK'0002023 DKK'000Other EU countries600,068611,145Other countries121,081122,648Total revenue by geographical market721,149733,793The Company’s business is divided into business segments and geographical markets. The Company’s primary segment comprises development and sale of design textiles and textile-related products. Secondary business areas are irrelevant. Referring to S. 96 of the Danish Financial Statements Act, Management does not want to provide additional information on the geographical distribution of revenue since a detailed distribution of revenue by geographical market will be highly detrimental to the Company's competitive situation.24990002 Other operating income2024 DKK'0002023 DKK'000Salary reimbursement2,3751,654Other income626224Group service agreements23,65423,72226,65525,600332650003 Staff costs2024​DKK'0002023​DKK'000Wages and salaries142,424163,036Pension costs10,79511,508Other social security costs2,4792,106155,698176,650Average number of full-time employees200218Remuneration​of Manage- ment​2024​DKK'000Remunerationof Manage- ment​2023​DKK'000Executive Board6,9477,372Board of Directors9171,1327,8648,5041076970001080000200900003000Remuneration​of Manage- ment​2024​DKK'000Remunerationof Manage- ment​2023​DKK'000Executive Board6,9477,372Board of Directors9171,1327,8648,5041002370000694700013560830009170001000000004 Depreciation, amortisation and impairment losses2024 DKK'0002023 DKK'000Amortisation of intangible assets17,99519,337Depreciation on property, plant and equipment10,95512,02128,95031,358-24900005 Other financial income2024 DKK'0002023 DKK'000Financial income from group enterprises1,7861,382Other financial income2,0381,1293,8242,51179380006 Other financial expenses2024 DKK'0002023 DKK'000Financial expenses from group enterprises0665Other financial expenses44,22643,03744,22643,70214610007 Tax on profit/loss for the year2024 DKK'0002023 DKK'000Current tax269955Change in deferred tax(13,545)0(13,276)9551995710008 Proposed distribution of profit and loss2024 DKK'0002023 DKK'000Retained earnings4,283(74,173)4,283(74,173)3064800004283000205960009 Intangible assetsCompleted development projects ​DKK'000Acquired trademarks ​DKK'000Cost beginning of year121,83827,479Additions1620Cost end of year122,00027,479Amortisation and impairment losses beginning of year(53,655)(11,751)Amortisation for the year(15,247)(2,748)Amortisation and impairment losses end of year(68,902)(14,499)Carrying amount end of year53,09812,980010 Development projectsThe completed development projects primarily consists of a new ERP-system as well as a digital trading platform as part of a substantial digital strategic plan towards 2023 and onwards. The ERP-system was successfully launched in 2020 while the first phases of the digital trading platform has been launched at the end of 2021. Management expects a significant potential from the optimization and digitalization of the business, as future cash flows will ensure repayment of investments in the development projects, and Management does not see any indication of impairment to exist.011 Property, plant and equipmentLand and buildings DKK'000Plant and machinery DKK'000Other fixtures and fittings, tools and equipment DKK'000Leasehold improvements DKK'000Cost beginning of year187,5844,11689,99715,340Additions68000Disposals00(429)(1,048)Cost end of year187,6524,11689,56814,292Depreciation and impairment losses beginning of year(44,164)(799)(62,125)(13,164)Depreciation for the year(3,734)(463)(5,222)(1,536)Reversal regarding disposals002341,048Depreciation and impairment losses end of year(47,898)(1,262)(67,113)(13,652)Carrying amount end of year139,7542,85422,455640Recognised assets not owned by entity004,2800336500012 Financial assetsInvestments in group enterprises​DKK'000Investments in associates ​DKK'000Receivables from associates​DKK'000Deposits​DKK'000Cost beginning of year275,70946,21116,5951,774Additions29,38701,24012Disposals000(789)Cost end of year305,09646,21117,835997Revaluations beginning of year15,0316,32300Exchange rate adjustments(1,140)1,52100Amortisation of goodwill(6,118)(371)00Share of profit/loss for the year35,4591,09600Adjustment of intra-group profits1,70587100Dividend(26,403)(1,706)00Investments with negative equity value depreciated over receivables (911)000Investments with negative equity value transferred to provisions 4,354000Other adjustments364000Revaluations end of year22,3417,73400Carrying amount end of year327,43753,94517,835997Investments in group enterprises comprise unamortised goodwill of DKK 37,9m at 31.12.2024.​ ​Investments in associates comprise unamortised goodwill of DKK 371k at 31.12.2023.​ ​A specification of investments in subsidiaries is evident from the notes to the consolidated financial statements.Investments in ​associatesRegistered inOwnership ​​%Wooltex UK Ltd. England 46.003 Days of Design ApS Denmark 20.00Innvik ASNorway 30.00Kvadrat Maharam Pty. Ltd.Australia50.00Convert A/SDenmark48.67336500013 Deferred tax2024​DKK'0002023​DKK'000Intangible assets(9,443)(13,367)Property, plant and equipment(1,037)(2,798)Inventories4,6634,778Provisions3570Liabilities other than provisions660148Tax losses carried forward37,35330,696Deferred tax32,23119,527​ ​​Changes during the year2024​DKK'0002023​DKK'000Beginning of year19,52719,844Recognised in the income statement13,5450Recognised directly in equity(39)226Tax losses used by group enterprises(802)(543)End of year32,23119,527​Deferred tax assetsDeferred tax assets consists primarily of timing differences on depreciation of fixed assets as well as tax-loss carryforwards, which the company expects to use within 1-5 years as a result of future positive operations. 014 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost. 129200015 Provisions for investments in group enterprisesProvisions for investments in group enterprises is a result of investment in group enterprises with negative equity.-167300016 Other payables2024 DKK'0002023 DKK'000Holiday pay obligation13,85613,65413,85613,654-17000017 Non-current liabilities other than provisionsDue within 12 ​months​2024​DKK'000Due within 12 ​​months​2023​DKK'000Due after ​more than 12 ​months​2024​DKK'000Outstanding ​after 5 years​2024​DKK'000Mortgage debt2,9302,82724,74213,094Bank loans21,45630,38851,59117,630Lease liabilities2,0102,6394,4400Other payables0013,85613,85626,39635,85494,62944,580-55100018 Other payables2024 DKK'0002023 DKK'000VAT and duties01Wages and salaries, personal income taxes, social security costs, etc. payable3,7157,795Holiday pay obligation7,1007,417Derivative financial instruments5,3535,372Other costs payable3,4343,73419,60224,319Derivative financial instruments are described in note 19.019 Derivative financial instrumentsThe Company have no hedges currencies at the balance sheet date 31 December 2024. Other payables include the negative fair value of an interest rate swap of DKK 5.4m. The interest rate swap was made to hedge a fixed interest rate on the Company’s floating-rate mortgage loan. The interest swap has a principal amount of DKK 20m and ensures a fixed interest rate of 4,82% in the remaining term of 13 years.-55100020 Unrecognised rental and lease commitments2024 DKK'0002023 DKK'000Total liabilities under rental or lease agreements until maturity 9,87110,07217800021 Contingent liabilities2024​DKK'0002023​DKK'000Recourse and non-recourse guarantee commitments457,336505,287Contingent liabilities to group enterprises457,336505,287Recourse and non-recourse guarantee commitments7,7336,527Contingent liabilities to associates7,7336,527​The Company has provided a guarantee for the bank debt of subsidiaries and Kvadrat Holding A/S. The secured bank debt amounts to DKK 465m at 31.12.2024, which consists of the subsidiaries drawing on the credit facilities at their bank.​​The Company has provided performance guarantees for DKK 38.2m at 31.12.2024. The Company participates in a Danish joint taxation arrangement with Kvadrat Holding A/S serving as the administration company. According to the joint taxation provisions of the Danish Corporation Tax Act, the Entity is​therefore liable for income taxes etc for the jointly taxed companies and for obligations, if any, relating to the withholding of tax on interest, royalties and dividends for the jointly taxed companies. The jointly taxed entities' total known net liability under the joint taxation arrangement is disclosed in the administration company's financial statements. 022 Assets charged and collateralMortgage debt is secured by way of mortgage on properties. The carrying amount of mortgaged buildings is DKK 139.8m recognised under land and buildings. A owners mortgage of DKK 8m in properties has been pledged as security for outstanding balances with banks. The Company has pledged its assets with a corporate mortgage as security for outstanding balances with banks. The nominal amount of the corporate mortgage is DKK 200m. The corporate mortgage includes acquired trademarks, plants and machinery, other fixtures and fittings, tools and equipment, inventories and trade receivables. The carrying amount of acquired trademarks is DKK 13m. The carrying amount of plants and machinery is DKK 2.9m. The carrying amount of other fixtures and fittings, tools and equipment (leased not included) is DKK 18.2m. The carrying amount of inventories is DKK 224m. The carrying amount of trade receivables is DKK 25.2m. 17800023 Related parties with controlling interestThe Parent Kvadrat Holding A/S, Central Business Reg. No: 15 12 00 02, Ebeltoft holds all shares in the Company and thus has a controlling interest in the Company. 024 Transactions with related partiesThe annual report only dislose transactions with related parties that have not been completed on market terms. No such transactions have been completed during the financial year. 178000Investments in group enterprisesIn the parent financial statements, investments in group enterprises are recognised and measured according to the equity method. This means that investments are measured at the pro rata share of the enterprises' equity value plus unamortised goodwill and plus or minus unrealised intra-group profits and losses. Refer to the above section on business combinations for more details about the accounting policies used on acquisitions of investments in group enterprises. ​ Group enterprises with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive obligation to cover the liabilities of the relevant enterprise, and it is probable that such obligation will involve a loss, a provision is recognised that is measured at present value of the costs necessary to settle the obligations at the balance sheet date. ​ ​Upon distribution of profit or loss, net revaluation of investments in group enterprises is transferred to reserve for net revaluation according to the equity method in equity. ​ Goodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. For amounts of goodwill, useful life has been determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 10 years. ​ ​Investments in group enterprises are written down to the lower of recoverable amount and carrying amount. 00000-1372000-1372000039000003900003900000-355000463500042800006633000100000000-378200080770002779000204376000311450000224920006832400042750000Changes in intercompany activities53360001890580007260005943300018291000-4635000107425000107160000697700018850000-15808000-91617000436920003365000-7883000-54940000366770001341050001 Revenue2024 DKK'0002023 DKK'000Other EU countries1,161,8881,283,088Other countries482,838474,677Total revenue by geographical market1,644,7261,757,765The Group’s business is divided into business segments and geographical markets. The Group’s primary segment comprises development and sale of design textiles and textile-related products. Secondary business areas are irrelevant. Referring to S. 96 of the Danish Financial Statements Act, Management does not want to provide additional information on the geographical distribution of revenue since a detailed distribution of revenue by geographical market will be highly detrimental to the Group's competitive situation. 2 Other operating income2024 DKK'0002023 DKK'000Compensation073Salary reimbursement3,0582,152Profit from sale of shares05Public grants6061,270Other income32163,9853,5063 Fees to the auditor appointed by the Annual General Meeting2024 DKK'0002023 DKK'000Statutory audit services1,4031,474Other assurance engagements21520Tax services187228Other services1,6397343,4442,4564 Staff costs2024​DKK'0002023​DKK'000Wages and salaries475,468526,321Pension costs40,70041,700Other social security costs39,95640,128556,124608,149Average number of full-time employees9671,022Remuneration​of ​management​2024​DKK'000Remunerationof management​2023​DKK'000Executive Board6,9477,372Board of Directors9171,1327,8648,504967Remuneration​of ​management 2024 DKK'000Remunerationof management 2023 DKK'000Executive Board6,9477,372Board of Directors9171,1327,8648,50469470009170005 Depreciation, amortisation and impairment losses2024 DKK'0002023 DKK'000Amortisation of intangible assets34,18445,287Depreciation on property, plant and equipment34,37536,86368,55982,1506 Tax on profit/loss for the year2024 DKK'0002023 DKK'000Current tax18,00415,949Change in deferred tax(15,331)(1,008)2,67314,9417 Proposed distribution of profit/loss2024 DKK'0002023 DKK'000Retained earnings4,280(74,173)Minority interests' share of profit/loss6,633(628)10,913(74,801)428000066330008 Intangible assetsCompleted development projects​DKK'000Acquired trademarks ​DKK'000Goodwill​DKK'000Development projects in progress​DKK'000Cost beginning of year131,01518,830180,4591,234Addition through business combinations etc4,736000Exchange rate adjustments00(46)0Transfers1,25500(1,255)Additions33509,2451,136Cost end of year137,34118,830189,6581,115Amortisation and impairment losses beginning of year(56,614)(13,682)(97,847)0Exchange rate adjustments(4)0630Amortisation for the year(17,940)(1,629)(14,615)0Amortisation and impairment losses end of year(74,558)(15,311)(112,399)0Carrying amount end of year62,7833,51977,2591,1159 Development projectsThe completed development projects and development projects in progress primarily consists of a new ERP-system as well as a digital trading platform as part of a substantial digital strategic plan onwards. Management expects a significant potential from the optimization and digitalization of the business, as future cash flows will ensure repayment of investments in the development projects, and Management does not see any indication of impairment to exist.10 Property, plant and equipmentLand and buildings​DKK'000Plant and machinery​DKK'000Other fixtures and fittings, tools and equipment​DKK'000Leasehold improvements ​DKK'000Cost beginning of year232,15113,238202,667138,154Exchange rate adjustments51(115)219(3,456)Additions1221794,9051,771Disposals0(8)(5,226)(1,440)Cost end of year232,32413,294202,565135,029Depreciation and impairment losses beginning of year(50,323)(2,257)(138,786)(71,792)Exchange rate adjustments(14)12(125)3,670Depreciation for the year(5,856)(1,826)(13,844)(12,849)Reversal regarding disposals083,3411,440Depreciation and impairment losses end of​year(56,193)(4,063)(149,414)(79,531)Carrying amount end of year176,1319,23153,15155,498Recognised assets not owned by Entity004,280011 Financial assetsInvestments in associates​DKK'000Receivables from associates​DKK'000Deposits​DKK'000Cost beginning of year46,21216,59511,693Additions01,2400Disposals00(1,110)Cost end of year46,21217,83510,583Revaluations beginning of year1,46100Exchange rate adjustments1,67300Amortisation of goodwill(371)00Share of profit/loss for the year(855)00Adjustment of intra-group profits87100Revaluations end of year2,77900Carrying amount end of year48,99117,83510,583Investments in associates comprise unamortised goodwill of DKK 371k at 31.12.2024. AssociatesRegistered inOwnership ​​​%Wooltex UK Ltd.England46.003 Days of Design ApSDenmark20.00Innvik ASNorway30.00Convert A/SDenmark48.6712 Contract work in progress2024 DKK'0002023 DKK'000Contract work in progress22,29322,293Progress billings(17,985)(18,206)4,3084,08713 Deferred tax2024 DKK'0002023 DKK'000Intangible assets(10,087)(13,684)Property, plant and equipment(982)(2,732)Inventories5,7685,449Receivables(1,180)(1,180)Provisions45770Liabilities other than provisions2,8491,522Tax losses carried forward55,82747,915Deferred tax52,65237,360 ​Changes during the year2024 DKK'0002023 DKK'000Beginning of year37,36036,126Recognised in the income statement15,3311,008Recognised directly in equity(39)226End of year52,65237,360Deferred tax has been recognised in the balance sheet as follows2024 DKK'0002023 DKK'000 Deferred tax assets55,06439,950 Deferred tax liabilities(2,412)(2,590)52,65237,360​Deferred tax assetsDeferred tax assets consist primarily of timing differences on depreciation of fixed assets as well as tax loss carryforwards from foreign subsidiaries and parent company, which are expected to use the losses within 1-5 years as a result of future positive operations. 14 PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost. 15 Contributed capitalNumberNominal ​value DKK'000The shares are not divided into classes1,000100,0001,000100,00016 Other provisions Other provisions comprise primarily costs from other contractual obligations expected to be incurred by the Group.17 Other payables2024 DKK'0002023 DKK'000Holiday pay obligation13,85613,65413,85613,65418 Non-current liabilities other than provisionsDue within 12 months 2024 DKK'000Due within 12 ​months 2023 DKK'000Due after more than 12 months 2024 DKK'000Outstanding after 5 years 2024 DKK'000Mortgage debt2,9302,82724,74213,094Bank loans26,74535,02356,19217,630Lease liabilities2,0102,6397,5770Other payables0013,85613,85631,68540,489102,36744,58019 Other payables2024 DKK'0002023 DKK'000VAT and duties6,5570Wages and salaries, personal income taxes, social security costs, etc. payable18,34925,048Holiday pay obligation20,97719,856Derivative financial instruments5,3535,372Other costs payable56,46157,808107,697108,084Derivative financial instruments are described in note 24.20 Deferred incomeDeferred income includes grants for DKK 1,9m related to development projects in progress, of which DKK 0,8m has been recognized in line with the depreciation of the associated development project. Deferred income is ​recognized as other income in the income statement and in note 2.21 Changes in working capital2024 DKK'0002023 DKK'000Increase/decrease in inventories22,944291Increase/decrease in receivables(3,296)71,480Increase/decrease in trade payables etc.23,102(50,271)42,75021,50022 Derivative financial instrumentsThe Company have no hedged currencies at the balance date 31 December 2024. Other payables include the negative fair value of an interest rate swap of DKK 5,4m. The interest swap was made to hedge a fixed interest rate on the Company's floating-rate mortgage loan. The interest swap has a principal amount of DKK 20,0m and ensures a fixed interest rate of 4,82% in the remaining term of 14 years.23 Unrecognised rental and lease commitments2024 DKK'0002023 DKK'000Total liabilities under rental or lease agreements until maturity 200,440243,03624 Assets charged and collateralMortgage debt (Kvadrat A/S) is secured by way of mortgage on properties. The carrying amount of mortgaged buildings is DKK 139.8m recognised under land and buildings. A owners mortgage of DKK 8m in properties has been pledged as security for outstanding balances with banks. Kvadrat A/S has pledged its assets with a corporate mortgage as security for outstanding balances with banks. The nominal amount of the corporate mortgage is DKK 200m. The corporate mortgage includes acquired trademarks, plants and machinery, other fixtures and fittings, tools and equipment, inventories and trade receivables owned by Kvadrat A/S. The carrying amount of acquired trademarks is DKK 13m. The carrying amount of plants and machinery is DKK 2.9m. The carrying amount of other fixtures and fittings, tools and equipment (leased not included) is DKK 18.2m. The carrying amount of inventories is DKK 224m. The carrying amount of trade receivables is DKK 25.2m. 25 Transactions with related partiesThe annual report only dislose transactions with related parties that have not been completed on market terms. No such transactions have been completed during the financial year. 26 Group relationsName and registered office of the Parent preparing consolidated financial statements for the largest group: Kvadrat Holding A/S, CVR-nr. 15 12 00 02, Ebeltoft, Denmark.Name and registered office of the Parent preparing consolidated financial statements for the smallest group: Kvadrat Holding A/S, CVR-nr. 15 12 00 02, Ebeltoft, Denmark. 27 Pro-rata consolidated companiesRegistered inOwnership ​​​%Kvadrat Maharam Pty. Ltd.Australia50.0028 SubsidiariesRegistered inOwnership ​​​%Febrik BVNetherlands83.90Kvadrat Weaving BVNetherlands99.94Kinnasand GmbH Germany100.00Kvadrat AB Sweden100.00Kvadrat AG Switzerland97.00Kvadrat Asia Investment Ltd. Hong Kong50.50Kvadrat China Co. Ltd. China50.50Kvadrat Singapore Pte. Ltd. Singapore50.50Kvadrat Austria GmbHAustria97.00Kvadrat BV Netherlands95.00Kvadrat Finland Oy Finland100.00Kvadrat GmbHGermany98.00Kvadrat Iberia S.L.Spain95.00Kvadrat Inc. USA100.00Kvadrat Japan Co. Ltd. Japan80.00Kvadrat Korea Co. Ltd. South Korea100.00Kvadrat Ltd.UK100.00Kvadrat Middle East DMCCUAE 100.00Kvadrat Norge AS Norway100.00Kvadrat SAFrance95.00Kvadrat Acoustics A/SDenmark85.00Fabric Systems Ltd.UK85.00Kvadrat Acoustics Inc. USA85.00Kvadrat Soft Cells Hong Kong Ltd. Hong Kong 85.00Kvadrat Acoustics Sp. Z.o.o.Poland85.00Kvadrat Acoustics Pty. Ltd.Australia85.00Registered inOwnership ​​​%Kvadrat SpAItaly100.00Personal Design SrLItaly100.00Kvadrat REALLY ApSDenmark100.00Sahco GmbHGermany100.00Kvadrat Czech Republic s.r.o.Czech Republic100.00Kvadrat Shade Holding BVNetherlands100.00Kvadrat Shade Services BV Netherlands100.00Kvadrat High Performance Textiles BVNetherlands100.00Kvadrat Shade Assembly BVNetherlands100.00Kvadrat Shade Properties BV Netherlands100.00Verosol Australia Pty Ltd. Australia80.00Verosol Ibérica SAUSpain100.00Tecnologia de Control Solar Mexicana, SA de CVMexico100.00Tecnologia de Control Solar Mexicana de Servicios, SA de CVMexico100.00VW Solarflex SA de CVMexico100.00Magniberg Design ABSweden67.45Kvadrat Middle East Textiles LLCUAE100.00Hemp Bio ApSDenmark70.00This annual report has been presented in accordance with the provisions of the Danish Financial Statements Act ​governing reporting class C enterprises (large).The accounting policies applied to these consolidated financial statements and parent financial statements are consistent with those applied last year.Recognition and measurementAssets are recognised in the balance sheet when it is probable as a result of a prior event that future economic ​benefits will flow to the Entity, and the value of the asset can be measured reliably. ​ ​Liabilities are recognised in the balance sheet when the Entity has a legal or constructive obligation as a ​result of a prior event, and it is probable that future economic benefits will flow out of the Entity, and the ​value of the liability can be measured reliably. ​ ​On initial recognition, assets and liabilities are measured at cost. Measurement subsequent to initial recognition is effected as described below for each financial statement item. ​ ​Anticipated risks and losses that arise before the time of presentation of the annual report and that confirm ​or invalidate affairs and conditions existing at the balance sheet date are considered at recognition and ​measurement. ​ ​Income is recognised in the income statement when earned, whereas costs are recognised by the amounts ​attributable to this financial year. Consolidated financial statementsThe consolidated financial statements comprise the Parent and the group enterprises (subsidiaries) that are controlled by the Parent. Control is achieved by the Parent, either directly or indirectly, holding more than 50% of the voting rights or in any other way possibly or actually exercising controlling influence. Enterprises in which the Group, directly or indirectly, holds between 20% and 50% of the voting rights and exercises significant, but not controlling influence, are regarded as associates.Basis of consolidationThe consolidated financial statements are prepared on the basis of the financial statements of the Parent and its subsidiaries. The consolidated financial statements are prepared by combining uniform items. On consolidation, intra-group income and expenses, intra-group accounts and dividends as well as profits and losses on transactions between the consolidated enterprises are eliminated. The financial statements used for consolidation have been prepared applying the Group’s accounting policies.​​Subsidiaries’ financial statement items are recognised in full in the consolidated financial statements. Minority ​interests’ proportionate share of profit or loss is presented as a separate item in Management’s proposal for ​distribution of profit or loss, and their share of subsidiaries’ net assets is presented as a separate item in group equity. ​​Investments in subsidiaries are offset at the pro rata share of such subsidiaries’ net assets at the takeover date, with net assets having been calculated at fair value.Business combinationsNewly acquired or newly established enterprises are recognised in the consolidated financial statements from the time of acquiring or establishing such enterprises. Divested or wound-up enterprises are recognised in the consolidated income statement up to the time of their divestment or winding-up. ​ ​The purchase method is applied at the acquisition of new enterprises, under which identifiable assets and liabilities of these enterprises are measured at fair value at the acquisition date. Provisions for costs of restructuring of the enterprise acquired are only made in so far as such restructuring was decided by the enterprise acquired prior to acquisition. Allowance is made for the tax effect of restatements.Positive differences in amount (goodwill) between cost of the acquired share and fair value of the assets and liabilities taken over are recognised under intangible assets, and they are amortised systematically over the income statement based on an individual assessment of their useful life. If the useful life cannot be estimated reliably, it is fixed at 10 years. Useful life is reassessed annually. Negative balances (negative goodwill) are recognised as income in the income statement. Profit or loss from divestment of enterprisesProfits or losses from divestment or winding-up of subsidiaries are calculated as the difference between selling price or settlement price and the carrying amount of the net assets at the time of divestment or winding-up, inclusive of non-amortised goodwill and estimated divestment or winding-up expenses. Foreign currency translationOn initial recognition, foreign currency transactions are translated applying the exchange rate at the transaction date. Receivables, payables and other monetary items denominated in foreign currencies that have not been settled at the balance sheet date are translated using the exchange rate at the balance sheet date. Exchange differences that arise between the rate at the transaction date and the rate in effect at the payment date, or the rate at the balance sheet date are recognised in the income statement as financial income or financial expenses. Property, plant and equipment, intangible assets, inventories and other non-monetary assets that have been purchased in foreign currencies are translated using historical rates. ​ ​When recognising foreign subsidiaries and associates that are independent entities, the income statements are translated at average exchange rates for the months that do not significantly deviate from the rates at the transaction date. Balance sheet items are translated using the exchange rates at the balance sheet date. Goodwill is considered belonging to the independent foreign entity and is translated using the exchange rate at the balance sheet date. Exchange differences arising out of the translation of foreign subsidiaries’ equity at the beginning of the year at the balance sheet date exchange rates as well as out of the translation of income statements from average rates to the exchange rates at the balance sheet date are recognised directly in equity. ​ ​Exchange adjustments of outstanding accounts with independent foreign subsidiaries which are considered part of the total investment in the subsidiary in question are classified directly as equity.Derivative financial instrumentsOn initial recognition in the balance sheet, derivative financial instruments are measured at cost and subsequently at fair value. Derivative financial instruments are recognised under other receivables or other payables. ​​ Changes in the fair value of derivative financial instruments classified as and complying with the requirements ​for hedging the fair value of a recognised asset or a recognised liability are recorded in the income statement ​together with changes in the value of the hedged asset or the hedged liability. ​​Changes in the fair value of derivative financial instruments classified as and complying with the requirements ​for hedging future transactions are recognised directly in equity. When the hedged transactions are realised, the accumulated changes are recognised as part of cost of the relevant financial statement items. ​​For derivative financial instruments that do not comply with the requirements for being treated as hedging ​instruments, changes in fair value are recognised currently in the income statement as financial income or ​financial expenses.Public grantsPublic grants are recognised when a final commitment has been received from the grantor and it is probable that ​the conditions of the grant will be fulfilled. Grants are recognised as income in the income statement as earned. Grants awarded for acquisition of assets are recognised as deferred income in the balance sheet, which is taken to income on a straight-line basis over the useful life of the asset.RevenueRevenue from the sale of manufactured goods and goods for resale is recognised in the income statement when delivery is made and risk has passed to the buyer. Revenue is recognised net of VAT, duties and sales discounts and is measured at fair value of the consideration fixed.Contract work in progress is included in revenue based on the stage of completion so that revenue corresponds to the selling price of the work performed in the financial year (the percentage-of-completion method). Own work capitalisedOwn work capitalised comprises #staff costs and other costs incurred in the financial year and recognised in ​cost for proprietary intangible assets and property, plant and equipment.Other operating incomeOther operating income comprises income of a secondary nature as viewed in relation to the Entity’s primary ​activities, including profit from the sale of intangible assets and property, plant and equipment, and salary refunds .Cost of salesCost of sales comprises goods consumed in the financial year measured at cost, adjusted for normal inventory writedowns.Other external expensesOther external expenses include expenses relating to the Entity’s ordinary activities, including expenses for premises, stationery and office supplies, marketing costs, etc. This item also includes writedowns of receivables recognised in current assets. Staff costsStaff costs comprise salaries and wages as well as social security contributions, pension contributions, etc for entity staffDepreciation, amortisation and impairment lossesDepreciation, amortisation and impairment losses relating to property, plant and equipment and intangible assets comprise depreciation, amortisation and impairment losses for the financial year, as well as revenue recognition of grants recieved related to the intagible fixed assets and gains and losses from the sale of intangible​assets as well as property, plant and equipment.Other operating expensesOther operating expenses comprise expenses of a secondary nature as viewed in relation to the Entity’s primary activities, including loss from the sale of intangible assets and property, plant and equipment.Income from investments in group enterprisesIncome from investments in group enterprises comprises the pro rata share of the individual enterprises’ profit/loss after full elimination of intra-group profits or losses. Income from investments in associatesIncome from investments in associates comprises the pro rata share of the individual associates’ profit/loss after pro rata elimination of intra-group profits or losses. Other financial incomeOther financial income comprises dividends etc received on other investments, interest income, including interest income on receivables from group enterprises, net capital or exchange gains on securities, payables and transactions in foreign currencies, amortisation of financial assets as well as tax relief under the Danish Tax Prepayment Scheme etc. Other financial expensesOther financial expenses comprise interest expenses, including interest expenses on payables to group enterprises, net capital or exchange losses on securities, payables and transactions in foreign currencies, amortisation of financial liabilities as well as tax surcharge under the Danish Tax Prepayment Scheme etc. Tax on profit/loss for the yearTax for the year, which consists of current tax for the year and changes in deferred tax, is recognised in the ​income statement by the portion attributable to the profit for the year and recognised directly in equity by the portion attributable to entries directly in equity.The Parent is jointly taxed with all of its Danish group enterprises. The current Danish income tax is allocated among the jointly taxed entities proportionally to their taxable income (full allocation with a refund concerning tax losses).GoodwillGoodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. For amounts of goodwill, useful life has been determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 10 years. ​​ ​​Goodwill is written down to the lower of recoverable amount and carrying amount.Intellectual property rights etc.Intellectual property rights etc comprise development projects completed and in progress with related intellectual property rights and acquired intellectual property rights. Development projects on clearly defined and identifiable products and processes, for which the technical rate of utilisation, adequate resources and a potential future market or development opportunity in the enterprise can be established, and where the intention is to manufacture, market or apply the product or process in question, are recognised as intangible assets. Other development costs are recognised as costs in the income statement as incurred. When recognising development projects as intangible assets, an amount equalling the costs incurred less deferred tax is taken to equity under Reserve for development costs that is reduced as the development projects are amortised and written down. ​​ ​​The cost of development projects comprises costs such as salaries, external costs and amortisation that are directly and indirectly attributable to the development projects. ​​ ​​Indirect production costs in the form of indirectly attributable staff costs and amortisation of intangible assets and depreciation on property, plant and equipment used in the development process are recognised in cost based on time spent on each project. ​ ​​Completed development projects are amortised on a straight-line basis using their estimated useful lives which are determined based on a specific assessment of each development project. If the useful life cannot be estimated reliably, it is fixed at 10 years. For development projects protected by intellectual property rights, the maximum amortisation period is the remaining duration of the relevant rights. Intellectual property rights acquired are measured at cost less accumulated amortisation. Patents are amortised over their remaining duration, and licences are amortised over the term of the agreement. ​ ​Intellectual property rights etc are written down to the lower of recoverable amount and carrying amount. Property, plant and equipmentLand and buildings as well as other fixtures and fittings, tools and equipment are measured at cost less ​accumulated depreciation and impairment losses. Land is not depreciated. ​ ​​​ Cost comprises the acquisition price, costs directly attributable to the acquisition and preparation costs of the asset until the time when it is ready to be put into operation. For assets held under finance leases, cost is the lower of the asset’s fair value and present value of future lease payments. ​​ ​​The basis of depreciation is cost less estimated residual value after the end of useful life. Straight-line ​depreciation is made on the basis of the following estimated useful lives of the assets:Useful life Buildings30-40 yearsPlant and machinery3-5 yearsOther fixtures and fittings, tools and equipment3-5 yearsLeasehold improvementscontract periodFor leasehold improvements and assets subject to finance leases, the depreciation period cannot exceed ​​the contract period. ​​ ​​Estimated useful lives and residual values are reassessed annually. ​​ ​​Items of property, plant and equipment are written down to the lower of recoverable amount and carrying ​​amount.Investments in associatesInvestments in associates are recognised and measured according to the equity method. This means that ​investments are measured at the pro rata share of the enterprises' equity values plus unamortised goodwill and plus or minus unrealised pro rata intra-group profits and losses. Refer to the above section on business ​combinations for more details about the accounting policies used on acquisitions of investments in associates. ​​Associates with negative equity value are measured at DKK 0. Any receivables from these enterprises are written down to net realisable value based on a specific assessment. If the Parent has a legal or constructive obligation to​cover the liabilities of the relevant associate, and it is probable that such obligation will involve a loss, a provision is recognised that is measured at present value of the costs necessary to settle the obligations at the balance sheet date. ​ ​​Upon distribution of profit or loss, net revaluation of investments in associates is transferred to Reserve for net revaluation according to the equity method under equity. ​ ​​ Goodwill is the positive difference between cost and fair value of assets and liabilities arising from acquisitions. Goodwill is amortised straight-line over its estimated useful life, which is fixed based on the experience gained by Management for each business area. For amounts of goodwill, useful life has been determined based on an assessment of whether the enterprises are strategically acquired enterprises with a strong market position and a long-term earnings profile and whether the amount of goodwill includes intangible resources of a temporary nature that cannot be separated and recognised as separate assets. Useful lives are reassessed annually. The amortisation periods used are 10 years. ​​ ​​Investments in associates are written down to the lower of recoverable amount and carrying amount. Investments in associates fall within the definitions of both participating interests and associates, yet in these consolidated financial statements they have been presented as investments in associates because this designation reflects more accurately the Group’s involvement in the relevant entities. ReceivablesReceivables are measured at amortised cost, usually equalling nominal value, less writedowns for bad and ​doubtful debts.InventoriesInventories are measured at the lower of cost using the FIFO method and net realisable value. ​ ​Cost consists of purchase price, design fee’s plus delivery costs. ​The net realisable value of inventories is calculated as the estimated selling price less completion costs and ​costs incurred to execute sale.Contract work in progressContract work in progress is measured at the selling price of the work carried out at the balance sheet date. The selling price is measured based on the stage of completion and the total estimated income from the individual contracts in progress. Usually, the stage of completion is determined as the ratio of actual to total budgeted consumption of resources. ​If the selling price of a project in progress cannot be made up reliably, it is measured at the lower of costs incurred and net realisable value. ​ Each contract in progress is recognised in the balance sheet under receivables or liabilities other than provisions, depending on whether the net value, calculated as the selling price less prepayments received, is positive or negative. ​ Costs of sales work and of securing contracts as well as finance costs are recognised in the income statement as incurred.Deferred taxDeferred tax is recognised on all temporary differences between the carrying amount and the tax-based value of ​assets and liabilities, for which the tax-based value is calculated based on the planned use of each asset. ​However, no deferred tax is recognised for amortisation of goodwill disallowed for tax purposes and temporary ​differences arising at the date of acquisition that do not result from a business combination and that do not have ​any effect on profit or loss or on taxable income. ​​ ​​Deferred tax assets, including the tax base of tax loss carryforwards, are recognised in the balance sheet at ​​their estimated realisable value, either as a set-off against deferred tax liabilities or as net tax assets.​​Deferred tax relating to retaxation of previously deducted losses in foreign subsidiaries is recognised on the basis​of an actual assessment of the purpose of each subsidiary.Tax payable or receivableCurrent tax payable or receivable is recognised in the balance sheet, stated as tax computed on this year's ​taxable income, adjusted for prepaid tax.PrepaymentsPrepayments comprise incurred costs relating to subsequent financial years. Prepayments are measured at cost.CashCash comprises cash in hand and bank deposits.Minority interestsOn initial recognition, minority interests are measured at the minority interests’ share of the acquiree’s net assets measured at fair value. No goodwill related to the minority interests’ equity interests in the acquiree is recognised.Other provisionsOther provisions comprise anticipated costs of decided and published restructuring, etc. ​ ​Other provisions are recognised and measured as the best estimate of the expenses required to settle the ​liabilities at the balance sheet date. Provisions that are estimated to mature more than one year after the ​balance sheet date are measured at their discounted value.Mortgage debtAt the time of borrowing, mortgage debt to mortgage credit institutions is measured at cost which corresponds to the proceeds received less transaction costs incurred. Mortgage debt is subsequently measured at amortised cost. This means that the difference between the proceeds at the time of borrowing and the nominal repayable amount of the loan is recognised in the income statement as a financial expense over the term of the loan applying the effective interest method. Other financial liabilitiesOther financial liabilities are measured at amortised cost, which usually corresponds to nominal value.Lease liabilitiesLease liabilities relating to assets held under finance leases are recognised in the balance sheet as liabilities other than provisions, and, at the time of inception of the lease, measured at the present value of future lease payments. Subsequent to initial recognition, lease liabilities are measured at amortised cost. The difference between present value and nominal amount of the lease payments is recognised in the income statement as a financial expense over the term of the leases.Prepayments received from customersPrepayments received from customers comprise amounts received from customers prior to delivery of the ​​goods agreed or completion of the service agreed.Deferred incomeDeferred income comprises income received for recognition in subsequent financial years. Deferred income ​include grants received for development projects according to the Danish Financial Statements Act's requirement for gross presentation cannot be offset in the development cost in the balance sheet, but must presented separately under liabilities. Prepayment are measured at cost less a straight line income recognition in line with the linear depreciation of the associated activated project.Cash flow statementThe cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and the end of the financial year. ​ ​Cash flows from operating activities are presented using the indirect method and calculated as the operating profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid. ​ ​Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases. ​ ​Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs as well as the raising of loans, inception of finance leases, instalments on interest-bearing debt, purchase of treasury shares and payment of dividend. ​ ​Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less shortterm bank loans. The cash flow statement shows cash flows from operating, investing and financing activities as well as cash and cash equivalents at the beginning and the end of the financial year. ​ ​Cash flows from operating activities are presented using the indirect method and calculated as the operating profit/loss adjusted for non-cash operating items, working capital changes and income taxes paid. ​ ​Cash flows from investing activities comprise payments in connection with acquisition and divestment of enterprises, activities and fixed asset investments as well as purchase, development, improvement and sale, etc of intangible assets and property, plant and equipment, including acquisition of assets held under finance leases. ​ ​Cash flows from financing activities comprise changes in the size or composition of the contributed capital and related costs as well as the raising of loans, inception of finance leases, instalments on interest-bearing debt, purchase of treasury shares and payment of dividend. ​ ​Cash and cash equivalents comprise cash and short-term securities with an insignificant price risk less shortterm bank loans. trueGrundlag for konklusionKonklusion2025-03-282025-03-2833963556Deloitte Statsautoriseret RevisionspartnerselskabRevisionspåtegningRegnskabsklasse C, stor virksomhed2023-12-312023-01-0133963556Weidekampsgade 6Deloitte Statsautoriseret Revisionspartnerselskab2300 København S2024-12-312024-01-01Kvadrat A/S45998517ÅrsrapportAarhus C80002City Tower, VærkmestergadeSyddjursEbeltoft840010Lundbergsvej2025-03-29Lars Monrad-Gylling