Rosendahl Design Group A/S Annual Report 2023 • Management’s Review Proving to be yet a turbulent year from a macroeconomic viewpoint, 2023 did not live up to our expectations. In spite of exiting products, successful collaborations, and a significant reduction in stock, the macroeconomic trends have had a major impact on our financial results. War in several regions, pressure on the Nordic currencies, continued high interest rates, and a shift from home economics to the experience economy have not gone unnoticed by the company. However, we have approached the difficult times as a welcome opportu - nity to improve our internal processes and our business princi- ples in general, and we look to the future with cautious yet more optimistic eyes. In 2023, Rosendahl Design Group incl. subsidiaries in Norway, Sweden, Germany, China, and the US reported a total turnover of DKK 464 M. Operating profit before depreciation and amortization, EBITDA, was DKK 21 M while total loss for the year ended at DKK 16,8 M. While still expecting challenging macroeconomic influences in the upcoming year, a healthier stock level as well as focus on procurement and tight management of our supply chain, an agile organization, lower financial costs, and a more robust capital structure shall contribute to bringing us positively through 2024. We remain fully focused on our strategy and long term ambitions. RETURNING TO THE DAILY BUSINESS On a personal level, returning to the company as CEO in June 2023 after three years as Chairperson of the Board, has been a significant decision. It has been rewarding to refamiliarize myself with all aspects of the business, the organization, and our brands after my time away from the daily business. I have been granted the opportunity to see the business from the outside and have returned with new ways, views, and ideas that I look forward to continue working on in the coming year. RESPONSIBLY INTO THE FUTURE Throughout 2023, large efforts have been invested in obtaining B Corp-certification, which we are proud to say was accom - plished in the beginning of 2024. We are well underway with the preparations for CSRD compliance and benefiting positively from the synergies between the B Corp framework and the CSRD reporting requirements. In 2023, we have changed our Articles of Association to reflect our societal ambition, which is to bring Danish design traditions responsibly into the future. It is now part of the formal purpose of the company to have a significant positive impact on society and the environment as a whole. In view of this, it has so far been one of our greatest accom- plishments this year to obtain our B Corp certification. The certification is based on a holistic view of the company and shows our commitment to responsible business conduct with regards to social and environmental performance as well as transparency. With this certification we have become part of a global movement of businesses dedicated to building a better world. I am convinced that we are on the right path, and we take pride in dedicating time and resources to find ever better ways to manufacture our beautiful products with respect of both nature and people. I am thankful to our organization for adopting these aspirations wholeheartedly and for investing their time and skills into a socially conscious, while still economically responsible, business model. It is my personal hope that our efforts will inspire others to act responsibly and work for a better world while pursuing their respective business goals. LOOKING AHEAD We continue to execute our defined strategic priorities. The further development of our e-commerce platform, which was launched in 2022, continues successfully, the Swedish market is doing very well in spite of the macroeconomic situation, and our youngest market, North America, is growing steadily. Major strategic projects within procurement, S&OP and brand strategy have been established in the second half of 2023 and continue with full force into 2024 with the ambition to ensure a positive financial result in 2024. While still expecting challenging times, Rosendahl Design Group is looking towards 2024 with the confidence that our new and improved processes will better equip us to face a rapidly fluctuating market. We approach the coming year with an adjusted cost base, reduced stock, and strong projects that will further shape the business for the unpredictable market conditions of the future. As such, we enter 2024 with an improved financial structure as well as with a new financial agreement which supports both operations and working capital. With our iconic brand portfolio, exiting new products, and our societal ambition as a guiding principle, we look to the future with both confidence and faith. I wish to thank everyone involved with Rosendahl Design Group for their dedication and co-operation in 2023. Henrik Rosendahl CEO and owner, Rosendahl Design Group 7
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