Rethink Tomorrow

Cash flow

Consolidated statement of cash flows

Cash flow from operating activities

Cash flowThe difference between the available cash at the beginning and the end of an accounting period. from operating activities was DKK 3,840 million, up from DKK 3,339 million in 2015, primarily due to higher net profit.

 

Net investments

Net investments excluding acquisitions were DKK 1,188 million, up from DKK 1,015 million in 2015. Net investments in property, plant and equipment amounted to DKK 1,048 million, compared with DKK 952 million in 2015. The increase is related to the purchase of land for the new innovation campus in Denmark.

 

Free cash flow before acquisitions

Free cash flowCash flow from operating activities minus cash flow from investing activities and changes in net working capital. before acquisitions was DKK 2,652 million, compared with DKK 2,324 million in 2015. The increase is primarily due to higher net profit. Free cash flow was DKK 2,491 million in 2016, compared with DKK 2,082 million in 2015. The acquisition of Organobalance GmbH impacted free cash flow by DKK 146 million in 2016.

 

Financing activities

Cash flow from financing activities was negative at DKK 2,484 million, compared with a negative cash flow of DKK 3,681 million in 2015. The negative cash flow from financing activities was mainly due to completion of the stock buyback program and dividend payments. 

 

Cash position

Cash and cash equivalents at December 31, 2016, amounted to DKK 805 million, up from DKK 796 million at year-end 2015. Undrawn committed credit facilities were DKK 3,500 million at December 31, 2016.

 



Consolidated statement of cash flows

DKK millionNote20162015
Net profit3,0502,825
Reversal of non-cash items6.62,0351,992
Income tax paid2.6(905)(893)
Interest received43
Interest paid(30)(42)
Cash flow before change in working capital4,1543,885
Change in working capital
(Increase)/decrease in receivables13(311)
(Increase)/decrease in inventories(199)(60)
Increase/(decrease) in payables and deferred income(125)(161)
Currency translation adjustments(3)(14)
Cash flow from operating activities3,8403,339
Investments
Purchase of intangible assets3.1(140)(63)
Purchase of property, plant and equipment3.2(1,076)(968)
Sale of property, plant and equipment2816
Business acquisitions and purchase of financial assets6.6(161)(242)
Cash flow from investing activities(1,349)(1,257)
Free cash flow2,4912,082
DKK millionNote20162015
Financing
Borrowings1,281122
Repayments of borrowings(773)(606)
Hedging of net investments-(398)
Purchase of treasury stock(2,000)(2,000)
Sale of treasury stock69126
Dividend paid (1,061)(925)
Cash flow from financing activities(2,484)(3,681)
Net cash flow7(1,599)
Unrealized gain/(loss) on currencies and financial assets included in cash and cash equivalents2(58)
Net change in cash and cash equivalents9(1,657)
Cash and cash equivalents, net, at January 17962,453
Cash and cash equivalents, net, at December 316.6805796
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 and depreciation & amortization
% of sales
  • Depreciation & amortization
  • Net investments
Free cash flow before acquisitions
DKK million * 2014 net impact of The BioAg Alliance DKK ~1,700 million