Rosendahl Design Group A/S Annual Report 2024 • Management’s Review Development in Activities and Finances 2024 followed the turbulent tendences from 2023 and 2022. We continued to face geo-political volatility that severely affected prices, inflation and consumer spending. Further, global supply chains still showed instability that affected timeliness and rates. Given that environment we are satisfied to have stabilised the turnover and the business, and to obtain a normalised EBITDA (normalised for extraordinary costs related to organisational changes) of 40M DKK or 9%, which was above the stated range of 6 – 8 % in the 2024 outlook. This, despite our turnover and profit was slightly below the range stated in the outlook in the annual rapport for 2023. Overall, this is a significant improvement over 2022 and 2023 and follow substantial operational improvements and improved sales in H2. Gearing ratio declined as well from 9 to 5 and the interest- bearing debt decreased 25M DKK to 170M DKK. The same with our total inventory that declined 38M DKK to 170M DKK. Especially in H2 there was an emphasis on lifting turnover as well as a disciplined focus on optimising operations and reduc- ing costs. This caused significant organisational changes that meant we unfortunately had to let good people off. These efforts coupled with increased procurement discipline and improved shipping efficiency enabled us able to finalise 2024 with earnings before tax at 6M DKK. Our focus for the coming year is on stabilising the business by expanding our partnerships and improving our commercial offering. This and continued focus on diligence in terms of operational efficiency and excellence are our priorities as it gives us agility to navigate volatile macro conditions with precarious consumer sentiments. Outlook Given the current volatility it is difficult to deliver proper guidance, but we still plan to maintain a stabil development in turnover and expect 2025 to end around 440 - 475M DKK and the profit to be between 3M DKK to 8M DKK. We expect an EBITDA margin around 6-9%. Our strategic focus continues to be on creating long term sustainable growth and improve our cash flow through strong emphasis on cash conversion. We believe the fundamentals are healthy; the operation has improved, and we strive for more; the organisation is in place and the management group is complete. We are confident that we have sound strategic direction with a focus on partnerships, professionalisation and prioritising. Further, we have an attractive product line up for 2025 with good partners to sell it. We are, however, concerned about the volatility globally, especially the ongoing tariff discussions and their repercus- sions for the global economy is of relevance. In the short term we are concerned it will negatively affect consumer sentiment and thus consumer spending as consumers are holding out to gauge the wider consequences in the economy. In the longer term, a potentially global recession caused by instability and stunted spending is a major cause for concern. 14
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