truefalsePisit AwnpoonÅrsrapport25578198KPMGVesterballevej 27, 2.DK-7000 Fredericia2022-01-012022-12-312021-01-012021-12-312023-04-272023-04-2728996268CPF Denmark A/SSvinget 56800VardeDKDenmark2005-08-16Varde+45 75 26 13 30KPMG25578198Nikolaj Møller Hansenmne33220statsaut. revisorVesterballevej27, 2.7000FredericiaDKDenmark45707077602023-04-27Regnskabsklasse C, mellemstor virksomhedfalsefalseRevisionspåtegningThe Board of Directors and the Executive Board have today discussed and approved the annual report of CPF Denmark A/S for the financial year 1 January – 31 December 2022.The annual report has been prepared in accordance with the Danish Financial Statements Act.We recommend that the annual report be approved at the annual general meeting.Varde,Christian Oxholm Winther JuhlJan WolgastPisit AwnpoonPrasit BoondoungprasertChairman Paisan ChirakitcharernAnat JulintronChristian Oxholm Winther JuhlJan WolgastMorten HesselholtVathana SinghpuckTo the shareholders of CPF Denmark A/SWe 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.Fredericia,31184000381510002466200013224000114650001285000549000132500089200017300014877000199420001184700044500002380000Fixed assets66130006722000683100069180007041000187625000900900001003650001031310001190600004795700043051000290330001941100016151000Current liabilities13966800047039000713320008372000010290900025.647.828.918.813.5Current ratio129.6177.2131.1114.9108.8131313111131184000381510001316100013157000109000109000179140002488500016660008550001900004000003060001919900025434000432200054920001487700019942000254200026460001400019000255600026650004057000405700066130006722000104903000305500002872800020754000328800001965300021160004040001400019000880000025500029600064873000411260001123600011692000181012000833680001876250009009000037290003729000442280003932200047957000430510001446500060500028170003224000110372000296490000521100012014000835000013966800047039000139668000470390001876250009009000037290003932200001487700009971000372900044228000131399710005924000490600014018000Control Related party transactions CPF Denmark A/S' related parties comprise the following: CPF Trading Co. Ltd., C.P. Tower 2, 28th fl, 1 Ratchadapisek Road, Bangkok 10400, Thailand holds more than 50% of the share capital. The ultimate parent company is Charoen Pokphand Foods Public Co., Ltd., Bangkok, Thailand. CPF Denmark A/S is part of the consolidated financial statements of CPF Trading Co. Ltd., C.P. Tower 2, 28th fl, 1 Ratchadapisek Road, Bangkok 10400, Thailand, which is the smallest and largest group, in which the Company is included as a subsidiary. The consolidated financial statements can be requistioned from the office in Denmark.In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022. Further, in our opinion, the Management's review gives a fair review of the development in the Company's activities and financial matters, of the results for the year and of the Company's financial position.We have audited the financial statements of CPF Denmark A/S for the financial year 1 January – 31 December 2022 comprising income statement, balance sheet, statement of changes in equity and notes, including accounting policies. The financial statements are prepared in accordance with the Danish Financial Statements Act. In our opinion, the financial statements give a true and fair view of the Company's assets, liabilities and financial position at 31 December 2022 and of the results of the Company's operations for the financial year 1 January – 31 December 2022 in accordance with the Danish Financial Statements Act.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 that 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 as to 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 in Denmark will always detect a material misstatement when it exists. Misstatements may 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 made 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 company 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.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, we conclude that the 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 of the Management's review. The financial ratios have been calculated as follows: Solvency ratio Equity ex. non-controlling interests at year-end x 100 Total equity and liabilities at year-end Current ratio Current assets total x 100 Current liabilitiesCPF Denmark A/S´ principal activities are trading in food, primarily chicken products from CP Foods Thailand and related products from within the CP Group of companies.No significant events materially affecting the assessment of the Annual Report have occurred after the balance sheet date.The supply chain instability has continued into the early part of the year but has improved during the latter part giving more stability on both availability and cost. We have seen a continuous growth in both retail and food service businesses across all markets benefiting from the increased need of easy and convenient food solutions. The uncertainties brought by the Russian invasion of Ukraine have not had any significant effect on our supply chain during the year. We have seen increasing instability on raw material pricing though. The profit of the year is satisfactory and exceeding our expectations on both gross profit and profit for the year compared to outlook presented in the annual report 2021. This is mainly due to a significant delay in expected impact of increased expenses on the supply chain costings. The current instability in Europe caused by the war in Ukraine will continue to have effect on our supply chain. It is the company´s overall expectation that 2023 will be 10-15% lower compared with 2022 on both gross profit and result. Further focus on new and improved sales in all markets and categories will continue to bring more varied growth across Scandinavia. The concept of value adding and bringing convenience closer to the consumers will continue to develop the business in a positive way in the future. The annual report of CPF Denmark A/S for 2022 has been prepared in accordance with the provisions applying to reporting class C medium-sized entities under the Danish Financial Statements Act.The accounting policies used in the preparation of the financial statements are consistent with those of last year.Pursuant to section 86(4) of the Danish Financial Statements Act, no cash flow statement has been prepared. The Company's cash flows are included in the cash flow statement in the consolidated financial statements of the parent company, Charoen Pokphand Foods Public Co., Ltd.On initial recognition, transactions denominated in foreign currencies are translated at the exchange rates 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 rates 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 latest financial statements is recognised in the income statement as financial income or financial expenses.Pursuant to Section 32 of the Danish Financial Statements Act, the Company has decided only to disclose gross profit.Income from the sale of goods is recognised in revenue when delivery and transfer of risk to the buyer have taken place, and the income may be measured reliably and is expected to be received. Revenue is measured at the fair value of the agreed consideration, excluding VAT and other indirect taxes charged on behalf of third parties. All discounts granted are recognised in revenue.Cost of goods sold includes consumables used in generating the year’s revenue.Other external costs comprise costs relating to the Company's ordinary activities, including costs for sales, distribution and administration.Staff costs comprise wages and salaries, including holiday allowance, pension and other social security costs. Refunds from public authorities are deducted from staff costs.Dividends from investment in participating interests are recognised in the period when the dividends are declared.Financial income and expenses comprise interest income and expense, financial costs regarding finance leases, gains and losses on securities, payables and transactions denominated in foreign currencies, amortisation of financial assets and liabilities as well as surcharges and refunds under the on-account tax scheme, etc.Tax for the year comprises current corporation tax for the year and changes in deferred tax, including changes in tax rates. The tax expense relating to the profit for the year is recognised in the income statement, and the tax expense relating to amounts directly recognised in equity is recognised directly in equity.Land and buildings, plant and machinery and fixtures and fittings, tools and equipment are measured at cost less accumulated depreciation. Cost comprises the purchase price and any costs directly attributable to the acquisition until the date on which the asset is available for use. Indirect production overheads and borrowing costs are not recognised in cost. Where individual components of an item of property, plant and equipment have different useful lives, they are accounted for as separate items, which are depreciated separately. The depreciable amount, which is calculated as cost less any projected residual values after the end of the useful life, is depreciated on a straight-line basis over the estimated useful life. The estimated useful lives are as follows: Land is not depreciated. The useful life and residual value are reassessed annually. Changes are treated as accounting estimates, and the effect on depreciation is recognised prospectively. Gains and losses on the disposal of property, plant and equipment are stated as the difference between the selling price less selling costs and the carrying amount at the date of disposal. Gains and losses are recognised in the income statement as other operating income or other operating costs, respectively.Buildings 25 years Fixtures and fittings, tools and equipment 3-5 yearsLeases 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 leases are recognised in the income statement over the term of the lease. The Company's aggregate obligations relating to operating leases and other leases are disclosed under contingencies, etc.Equity interests is measured at cost. In case of indication of impairment, an impairment test is conducted. When the cost exceeds the recoverable amount, write-down is made to this lower value. The carrying amount of property, plant and equipment is subject to an annual test for indications of impairment other than the decrease in value reflected by depreciation or amortisation. Impairment tests are conducted of individual assets or groups of assets when there is an indication that they may be impaired. Write-down is made to the recoverable amount if this is lower than the carrying amount. The recoverable amount is the higher of an asset’s net selling price and its value in use. The value in use is determined as the present value of the forecast cash flows from the disposal of the asset or the group of assets after the end of the useful life.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. Cost comprising purchase price plus delivery costs. The net realisable value of inventories is calculated as the sales amount less costs of completion and costs necessary to make the sale and is determined taking into account marketability, obsolescence and development in expected selling price.Receivables are measured at amortised cost, which usually corresponds to nominal value. Write-down is made for bad debt losses where there is an objective indication that a receivable has been impaired. If there is an objective indication that an individual receivable has been impaired, write-down is made on an individual basis. Write-downs are calculated as the difference between the carrying amount of receivables and the present value of forecast 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 comprise payments paid regarding expenses in subsequent years.Cash at bank and in hand comprise cash and bank deposits.The expected dividend payment for the year is disclosed as a separate item under equity.Current tax payable and receivable is recognised in the balance sheet as tax computed on the taxable income for the year, adjusted for tax on the taxable income of prior years and for tax paid on account. Deferred income tax is measured using the balance sheet liability method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes on the basis of the intended use of the asset and settlement of the liability, respectively. Deferred tax assets, including the tax base of tax loss carry-forwards, are measured at the value at which the asset is expected to be realised, either by elimination in tax on future earnings or by set-off against deferred tax liabilities. Deferred tax is measured on the basis of the tax rules and tax rates that will be effective under the legislation at the balance sheet date when the deferred tax is expected to crystallise as current tax. In cases where the computation of the tax base may be made according to alternative tax rules, deferred tax is measured on the basis of the intended use of the asset and settlement of the liability, respectively.Financial liabilities are recognised at cost at the date of borrowing, corresponding to the proceeds received less transaction costs paid. In subsequent periods, the financial liabilities are measured at amortised cost using the effective interest method. Accordingly, the difference between cost and the nominal value is recognised in the income statement over the term of the loan together with interest expenses. The liability in relation to frozen holiday funds is measured at net realisable value, including indexation. Indexation adjustments are recognised as interest expense in the income statement.Wages and salaries 11,911 12,176 Pensions 804 672 Other staff costs 446 309 13,161 13,157 Average number of full-time employees 13 13Staff costs of the Company include remuneration of the Executive Board and Board of Directors of DKK 7,840 thousand (2021: DKK 6,886 thousand). In accordance with section 98b(3) of the Danish Financial Statements Act, remuneration of the Executive Board and the Board of Directors is presented as an aggregate single amount.DKK'000 2022 2021 Current tax for the year 4,317 5,485 Deferred tax for the year 5 7 4,322 5,492 DKK'000 Land and buildings Fixtures and fittings, tools and equipment Total Cost at 1 January 2022 3,520 874 4,394 Cost at 31 December 2022 3,520 874 4,394 Depreciation at 1 January 2022 -874 -855 -1,729 Depreciation for the year -104 -5 -109 Depreciation at 31 December 2022 -978 -860 -1,838 Carrying amount at 31 December 2022 2,542 14 2,556 DKK'000 Participating interests Cost at 1 January 2022 4,057 Cost at 31 December 2022 4,057 Carrying amount at 31 December 2022 4,057 Name/legal form Registered office Participating interests Equity Profit for the year Participating interests: DKK'000 DKK'000 Kalino Food AB Södergatan 16 , 211 34 Malmo , Sweden 29% 11,012 9,308 11,012 9,308Prepayments comprise prepaid expenses regarding office rent and insurance premiums.The share capital consists of 500,000 shares of a nominal value of EUR 500,000 each. No shares carry any special rights.Rent liabilities amount to DKK 22 thousand. As collateral for bank overdraft, the Company has issued a company charge secured upon ordinary claims attributable to trade receivables, receivables from paritcipating interests and finished goods coming in at a total of DKK 30,000 thousand. The carrying amount of the assets comprised by the company charge reached DKK 166,511 thousand at 31 December 2022. A bank guarantee of DKK 75 thousand has been provided. The Company has entered into multiple financial futures agreements. At 31 December 2022, the agreements represent a negative market value of DKK 6 thousand.The Company has entered into operating leases with a remaining term of 67 months and an average monthly lease payment of DKK 30 thousand, totalling DKK 1,982 thousand.289962682022-01-012022-12-31289962682022-01-012022-12-311289962682022-01-012022-12-311289962682022-01-012022-12-312289962682022-01-012022-12-313289962682022-01-012022-12-311289962682022-01-012022-12-312289962682022-01-012022-12-313289962682022-01-012022-12-317289962682022-01-012022-12-318289962682022-01-012022-12-319289962682022-01-012022-12-3110289962682021-01-012021-12-31289962682022-01-012022-12-31g:PreviousYearMember289962682022-01-012022-12-31g:TwoYearsAgoMember289962682022-01-012022-12-31g:ThreeYearsAgoMember289962682022-01-012022-12-31g:FourYearsAgoMember289962682022-12-31289962682022-12-31g:PreviousYearMember289962682022-12-31g:TwoYearsAgoMember289962682022-12-31g:ThreeYearsAgoMember289962682022-12-31g:FourYearsAgoMember289962682022-01-012022-12-313289962682022-01-012022-12-313g:PreviousYearMember289962682022-01-012022-12-313g:TwoYearsAgoMember289962682022-01-012022-12-313g:ThreeYearsAgoMember289962682022-01-012022-12-313g:FourYearsAgoMember289962682022-01-012022-12-318289962682022-01-012022-12-318g:PreviousYearMember289962682022-01-012022-12-318g:TwoYearsAgoMember289962682022-01-012022-12-318g:ThreeYearsAgoMember289962682022-01-012022-12-318g:FourYearsAgoMember289962682022-01-012022-12-31104289962682022-01-012022-12-31104g:PreviousYearMember289962682022-01-012022-12-31104g:TwoYearsAgoMember289962682022-01-012022-12-31104g:ThreeYearsAgoMember289962682022-01-012022-12-31104g:FourYearsAgoMember289962682022-01-012022-12-31c:ProposedDividendRecognisedInEquityMember289962682021-01-012021-12-31c:ProposedDividendRecognisedInEquityMember289962682021-12-31289962682022-01-012022-12-31c:ContributedCapitalMember289962682022-01-01c:ContributedCapitalMember289962682022-12-31c:ContributedCapitalMember289962682022-01-012022-12-31c:RetainedEarningsMember289962682022-01-01c:RetainedEarningsMember289962682022-12-31c:RetainedEarningsMember289962682022-01-012022-12-31c:RetainedEarningsMember289962682021-01-012021-12-31c:RetainedEarningsMemberxbrli:pureiso4217:DKKiso4217:DKK