The year's operations and profit developments
The pre-tax profit for 2010 amounted to DKK 39.0 million versus DKK 48.9 million in 2009. In view of market conditions and the situation in the food sector, developments during the year were extremely positive.
In 2010 NOWACO remained focused on strengthening its cooperation with customers and suppliers, while also achieving a satisfactory increase in its portfolio. On the product side, the year also developed satisfactorily, with several new initiatives.
Revenue amounted to DKK 1,520 million in 2010, and gross profit came to DKK 88.2 million. The contribution ratio was 5.8% compared to 6.3% in 2009. Total expenses amounted to DKK 54.4 million, and financial net income of DKK 5.8 million was recorded. The post-tax profit amounted to DKK 29.4 million against DKK 36.9 million in 2009.
The company's Management considers the performance for the year satisfactory.
Balance sheet
The company's balance sheet total amounted to DKK 318.4 million at 31 December 2010. The most significant asset item is receivables from customers, amounting to DKK 258.9 million or 81% of the balance sheet total. The company's equity totalled DKK 117.3 million at end-2010, up DKK 9.7 million on end-2009. Dividend in the amount of DKK 20.0 million was distributed in 2010. The solvency ratio came to 36.8% at 31 December 2010.
Cash flow developments
The cash flows for the year were negative in the amount of DKK 57.4 million, a development attributable to a further build-up of receivables and the distribution of dividend.
Significant events after the close of the financial year
No events materially affecting the Company's financial position have occurred since the repor-ting date.
Outlook for 2011
The company's Management sees great potential in retaining and expanding NOWACO's market position. Thus, in the years ahead we expect to expand both our geographical presence and our range of products. Against this background, we expect to generate a profit for 2011 at the same or a slightly higher level than in 2010.
Resources
The company's prime resource continues to be our highly qualified and ambitious team of employees, their amazing team work and a NOWACO team spirit, enabling us to achieve impressive results together. We maintain an unwavering focus on continuously developing our international teams' competencies and on optimizing our organizational knowledge-sharing, co-operative relations, business opportunities and goals.
