Report 2017

Cash flow

Cash flow from operating activities

Cash flow The difference between the available cash at the beginning and end of an accounting period. from operating activities was DKK 4,063 million, up from DKK 3,840 million in 2016. Higher net profit impacted cash flow positively, while changes in net working capital All current assets less current liabilities used in, or necessary for, the company’s operations. The main components are inventories, trade receivables and trade payables. impacted cash flow negatively by DKK 249 million. The higher net working capital was mainly due to higher inventory levels.

 

Net investments

Net investments excluding acquisitions were DKK 1,665 million, up from DKK 1,188 million in 2016. Net investments in property, plant and equipment amounted to DKK 1,566 million, compared with DKK 1,048 million in 2016. The higher net investments were related to the construction of the innovation campus in Denmark, new production facilities in Mumbai, India, and capacity expansions in Nebraska, US.

 

Free cash flow before acquisitions

Free cash flow Cash flow from operating activities minus cash flow from investing activities and changes in net working capital. before net acquisitions was DKK 2,398 million, compared with DKK 2,652 million in 2016. The decrease of 10% was mainly caused by higher investments, partly offset by positive development in cash flow from operating activities.

 

Free cash flow

Free cash flow was DKK 2,395 million in 2017, compared with DKK 2,491 million in 2016.

 

Financing activities

Cash flow from financing activities was negative at DKK 2,815 million, compared with a negative cash flow of DKK 2,484 million in 2016. The negative cash flow from financing activities was mainly due to completion of the stock buyback program (DKK 2,000 million) and dividend payments (DKK 1,192 million).

 

Cash position

Cash and cash equivalents at December 31, 2017, amounted to DKK 363 million, down from DKK 805 million at December 31, 2016. Undrawn committed credit facilities were DKK 3,944 million at December 31, 2017.

 

 

 

DKK million Note 2017 2016
Net profit 3,120 3,050
Reversal of non-cash items 6.6 2,065 2,035
Income tax paid 2.6 (852) (905)
Interest received 7 4
Interest paid (28) (30)
Cash flow before change in working capital 4,312 4,154
Change in working capital
(Increase)/decrease in receivables (96) 13
(Increase)/decrease in inventories (224) (199)
Increase/(decrease) in payables and deferred income 74 (125)
Currency translation adjustments (3) (3)
Cash flow from operating activities 4,063 3,840
Investments
Purchase of intangible assets 3.1 (99) (140)
Purchase of property, plant and equipment 3.2 (1,593) (1,076)
Sale of property, plant and equipment 27 28
Business acquisitions, divestments and purchase of financial assets 6.6 (3) (161)
Cash flow from investing activities (1,668) (1,349)
Free cash flow 2,395 2,491
Financing
Borrowings 636 1.281
Repayments of borrowings (438) (773)
Purchase of treasury stock (2,000) (2,000)
Sale of treasury stock 179 69
Dividend paid (1,192) (1,061)
Cash flow from financing activities (2,815) (2,484)
Net cash flow (420) 7
Unrealized gain/(loss) on currencies and financial assets included in cash and cash equivalents (22) 2
Net change in cash and cash equivalents (442) 9
Cash and cash equivalents, net, at January 1 805 796
Cash and cash equivalents, net, at December 31 6.6 363 805
Cash flow from operating activities
DKK million
NetĀ investments
DKK million % * Excluding acquisitions and The BioAg Alliance impact in 2014
  • Net investments 
  • Net investments (% of sales)
  • Net investments
Free cash flow before acquisitions
DKK million * 2014 net impact of The BioAg Alliance DKK ~1,700 million