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ANNUAL REPORTSUSTAINABILITY REPORT2014/2015
CONTENTS
Comment from the CEO 3
The Löfbergs Group in brief 5
About us 6
Responsibility from bean to cup 10
In dialogue with our customers and the world around us 14
Coffee farming 18
Our own business 24
About the Sustainability Report 34
Directors' report 36
The business in figures 37
Our history 72
Good moments for future generations.
That is the vision of our current owners,
the third and fourth generation of the
Löfberg family. It extends to 2050 and
includes responsibility and benefit at
all stages from bean to cup: for coffee
farmers, employees, customers, con-
sumers, citizens, partners and owners.
That kind of mindset is possible for a
responsible family business, where sus-
tainability always has been integrated.
The coffee market is tough with
low margins and fierce competition.
A prerequisite for sustainable production
and coffee consumption is that more
people ask for and choose responsibly
produced coffee - and are willing to pay
for it. The development is going in the
right direction, especially within hotels
and restaurants where more customers
appreciate our sustainability work and
our sustainable profile. The sales of
certified coffee in grocery stores have
increased this year, but there is still more
to do. One of our great challenges is to
communicate our sustainability work
and the benefits of concious choices to
the consumer in a better way.
A central part in our sustaina bility
work is to improve the situation of
the coffee farmer to secure the future
supply of really good coffee. We can
see for ourselves on our journeys to the
producing countries how climate chan-
ges and variable world market prices are
affecting crops and living conditions,
but also what benefits the conversion to
more sustainable farming methods and
better agreements can give.
We have continued to invest in
International Coffee Partners and
Coffee & Climate during the year.
Together with other coffee busines-
ses, we help small-scale coffee farmers
with climate change adaptation and
improved profitability. The development
programme of International Coffee Part-
ners comprises more than 32,000 coffee
farmers in twelve countries.
We have also increased the
purchase of coffee from certified farms.
Almost half of all coffee we sell under
our own brands on all our markets now
comes from certified farms, and we will
reach 100% by 2020!
We also continue to work with
our climate impact at home. We have
reduced our climate impact with 24 per
cent during the last ten years through
several efforts, both big and small. One
remaining challenge towards our goal
of 100 per cent renewable is to find
an alternative to the LPG that is used
when roasting.
The Löfbergs Group's goal is to
have the best tasting and most sustai-
nable coffee and through that acheive
long-term profitability. We want to give
a relevant and honest representation
of the work with our most important
issues in our sustainability report. Issues
we have been working with for a hund-
red years and that we will continue to
work with for a hundred more. The key
is sustainability.
Lars Appelqvist
CEO, AB Anders Löfberg
THE KEY IS SUSTAINABILITY
3S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
Milestone: The entire
Löfbergs assortment in
Sweden is certified
OUR SUSTAINABILITY GOALS IN BRIEF
Certified farms
Today, 46.3 per cent of the coffee we
purchase comes from certified farms.
The entire assortment of our own
brands will be labelled by 2020; a goal
we already have met with the Löfbergs
brand, which is good for both people
and the environment.
Read more about it on page 19.
Climate impact
Since 2005, we have reduced our
climate impact with 24 per cent. The
goal is a reduction with 40 per cent by
2020. One of our great sustainability
challenges is to find an alternative to
the LPG that is used during roasting in
our main facility. Read more about it
on page 26.
Renewable energy
We are continually working on reducing
our energy use, and we are using more
and more renewable energy, for example
biogas, wind power, geothermal and
district heating. The goal is 100 per cent
renewable energy by 2020. The number
today is 39.6 per cent. Read more about it
on page 24.
Gender equality
We increased our proportion of female
executives to 29 per cent this year. The
goal is at least 40 per cent by 2020.
Becoming a more equal work place is
important to be an attractive employer for
even more people, and for creating pre-
requisites for more perspectives and wiser
decisions. Read more about it on page 31.
The Löfbergs Group in brief(Last year's figures in parentheses)
OWNER: The family Löfberg in the third and
fourth generation
MAIN OFFICE: Karlstad, Sweden
TURNOVER (MSEK): 1,709 (1,490)
OPERATING PROFIT (LOSS) (MSEK): 21.7 (23.5)
NUMBER OF EMPLOYEES: 326 (327)
VOLUME COFFEE: 26,592 metric tons (28,741)
VOLUME TEA: 160 metric tons (145)
CORE MARKETS: Sweden, Norway, Denmark,
Finland, Estonia, Latvia, Lithuania, UK
BRANDS: Löfbergs, Peter Larsen Kaffe, Melna,
Crema, Percol, Green Cup and Kobbs
46 % 40 %
29 %24 %
5S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
Office
Our sales
Roasting house
ABOUT USA family business with passion forgood coffee
The coffee company AB Anders
Löfberg was founded in 1906 by
the brothers Anders, John and Josef
Löfberg. We started roasting our own
coffee in Karlstad in 1911. Today, we
are one of the largest family-owned
coffee rosters in the Nordic countries
and we are producing an equivalent
closer to ten million cups of coffee
every day.
The company is still fully-owned by the
Löfberg family, now in its third and fourth
generation. The passion for good coffee
has been with us ever since the start,
just as the commitment concerning
social and environmental sustainability.
As a value-driven family business it is
natural and a matter of course to have a
long-term perspective on the business.
Our long-term approach combined with
the will to constantly develop and be in
the forefront is our strength on a tough
market with fierce competition.
Where we operate - our business and our markets. Up till the 1990's, we were only operating in
Sweden. Today, we have seven companies in
five countries: Sweden, Norway, Denmark,
Latvia and UK. Our main office and our largest
roasting house are situated in Karlstad, Sweden
(87 per cent of the production). A great propor-
tion of the company's employees, about 100
people, are working here.
6
The Löfberg family
AB Anders Löfberg
Löfbergs Lila ABKaffehuset i Karlstad AB
Peter Larsen Kaffe A/S(75 %) Denmark
Löfbergs Lila A/SNorway
SIA Melna KafijaLatvia Löfbergs UK Food Brands Group
UKLöfbergs Logistics
Crema Kaffebrenneri A/S
Sweden 56 %
Denmark 19 %
UK 8 %
Norway 5 %
Lithuania 4 %
Finland 3 %
Latvia 2 %
Estonia 2 %
Other 2 %
Our organisation
Brands. Our coffee is sold in about ten countries in Northern Europe under the brands Löfbergs, Peter Larsen Kaffe, Melna, Green Cup,
Crema and Percol. In Sweden, we also sell tea under the brand Kobbs.
Sales in multiple channels. About half
of our total sales takes place via the
trade of convenience goods (Retail)
and a third via cafés and restaurants
(Out of Home). The rest consists of
different business customers that sell
or serve the coffee we produce under
their own brands.
We are number two on the Swed-
ish market with a total market share
of about 20 per cent. That number is
slightly higher within café and restau-
rant, about 30 per cent (Source: SKI).
Sales (value). Sweden is decidedly our largest market, but
the shares in the other countries increase every year.
The parent company AB Anders Löfbergs has the comprehensive responsibility for the group's development, strategy and financial
governance. The group's board of directors consists of seven regular members (three owners and four external members), two employee
representatives and two deputy members. The chairman of the board is Kathrine Löfberg. The operating coffee and tea business is led by
the group management, and Lars Appelqvist is the CEO.
7S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
VISIONThe Löfbergs Group will be regarded
the the most sustainable coffee group in Europe that with passion,
strong brands and the best tasting coffee delivers
increased value for our customers and owners.
KATHRINE LÖFBERG, CHAIRMAN OF THE BOARD AND OWNER About the owner family's and the company's business philosophy, basis of value and vision.
The vision to be regarded as the most sustainable coffee group in Europe with the best tasting coffee, what does it mean and how do you know you are developing in that direction? It is really about continuing to build on the work that my great-grandfather started a hundred years
ago: producing coffee that both tastes and does good. We will keep on chasing the best coffee beans
and at the same time be a forerunner in sustainability and spread knowledge about all the good
things we do to contribute to a sustainable development. One sign of our success is that we get new
and more loyal customers.
How does it show in the company, from the daily coffee production and customer meetings to management decisions, that this is a family business of several generations? We are an active and committed owner family with clear values: Long term approach, responsibility, entrepre-
neurship, commitment and professionalism. That contributes to us making quick decisions at the same time as
we want and dare to have a long-term perspective, not at least regarding sustainability. One specific example
is when my father purchased the first container of organic coffee to Sweden in 1995, not because there was a
demand for it, but because it felt as the right thing to do. In the beginning, we sold the coffee with a loss. More
than every four cup we sell is organic today, which is great for the coffee farmer, the environment and for us.
What do you want to leave to the next generation of the Löfberg family? What do you hope has been achieved by 2050, a year that you have as target to look forward to? We are six persons in the fourth generation, and our common vision is "Good moments for future gene-
rations". We want to leave our children a respected, independent family business with strong brands that
compete on the international coffee market. But our vision is also to protect coming generations of coffee
farmers, customers and employees. We are bigger, stronger and more profitable in 2050, and we have the
same strong focus on sustainability and good coffee as today.
8
lowing areas: Financial, Customers and
Markets, Internal Processes, Responsibi-
lity and Employees.
Living values
We have a common basis of values in
the group that describes the fundamen-
tal principles of how we act towards
each other in the company as well as
in external relationships and towards
Vision and goal - good mom ents for future generations
Our vision and our goals involve being
leading in good tasting coffee, sustai-
nability and long-term profitability. We
developed our strategic plan in 2014,
which includes our most important ob-
jective areas and perspectives. Tangible
goals and governing key performance
indicators are connected to the fol-
the world around us. The basis of
values works as guidance in the daily
work and in decisions on all levels with
the starting point in five value words:
Responsibility, Commitment, Entre-
preneurship, Long-term approach and
Professionalism. The basis of our values
is described in a book that each em-
ployee receives in their native tongue.
Responsibility
Commitment
Long-term approach
Entrepreneurship
Professionalism
Our basis of values describes the fundamental principles for how we act towards each other and the world around us.
In the forefront for sustainable development
We want to take leadership and be in the
forefront in the industry when it comes to
sustainable development. We are taking
responsibility for our business's impact on
people and the environment through the
entire value chain, from bean to cup.
By continuously developing the
know ledge on where and what kind
of impact is most significant, and by
keeping ourselves updated on trends
and expectations from the world around
us, we can focus on the right things and
make sure that our sustainability work
really makes a difference.
RESPONSIBILITY FROM BEAN TO CUP
An important starting point is that
the responsibility for people and the
environment at the same time creates
conditions for long-term sustainable
business at all stages: for the coffee
farmers, for us and for our customers.
» Boat and train right into the roasting house
» Efficient logistics and renewable fuels
» Investments and commitment at home and in the producing countries
» Increase demand for certified coffee
» Energy efficiency, renewable energy sources and smart packaging
» Stimulate more sustai - nable farming methods and conditions
Andel av ka�ets totala klimatpåverkan
3,1%
TRANSPORTLEVERANS
Andel av ka�ets totala klimatpåverkan
2,6%
Andel av ka�ets totala klimatpåverkan
3,1%
FÖRÄDLING
82,4%Andel av ka�ets totala
klimatpåverkan
KAFFEODLING
Andel av ka�ets totala klimatpåverkan
8,8%
KONSUMTION
SAMHÄLLSANSVARSOCIAL RESPONSIBILITY
CONSUMPTION
DISTRIBUTION TRANSPORT
PROCESSING
COFFEE GROWING
1 0
Focus on the most essential
Our sustainability work is partly about
effect and responsibility when farming
coffee, and partly about our role as a
responsible company on the markets
where we have our own roasting and
sales business.
From a holistic perspective, the
greatest impact both environmentally
and socially is in the farming stage. The
effects from climate change for the
conditions of farming, and the supply of
great coffee in the long run, as well as
the coffee farmers' conditions and
livelihoods are some of our most
important sustainability aspects. These
areas are also our key priorities, even if
we certainly are doing a lot in many
other areas too.
Coffee farming
The farms are responsible for approxi-
mately 80 per cent of the total climate
impact of coffee, so this is where our
investments are doing most good. By
purchasing our coffee directly from the
producing countries and by increasing
the demand for coffee from certified
farms, we can get more farmers to
transition to more sustainable farming
methods. We also run and participate
in development projects to help coffee
farmers to farm with environmental
consideration, tackle climate changes
and increase their productivity and
profitability.
Community engagement - with the coffee farmers and at home
We have always been committed in the
local society and aim to contribute to a
positive development in places where
we operate, in our immediate surroun-
dings and with coffee farmers in the
producing countries around the world.
Through International Coffee Partners,
we contribute together with other Eu-
ropean family-owned coffee companies
to improve prerequisites, profitability
and living conditions for small-scale
coffee farmers.
Our commitment at home consists
of participating in infrastructural invest-
ments, cooperating with universities
as well as sponsoring sports teams and
associations.
Responsibility from bean to cup. What does it mean and what issues are most important?It means that we are taking responsibility for people and the environment along the entire value
chain. The most important is that those who farm coffee have good working conditions and get paid
fairly, and that the coffee is farmed without harming nature. At the same time we have to reduce our
own climate impact. It is about smart transport solutions, being resource-efficient when it comes to
use of energy and materials, and make environmental demands when purchasing goods and services.
What does it take to reach the vision of being the most sustainable coffee company in Europe? It is important to include all sustainability aspects: environmental, social and financial. We have to work with
improvements in the entire chain, for all interested parties, our surroundings, our suppliers and customers as
well as our company. We have to talk about the challenges the planet and its inhabitants face and about the
initiatives that we take to contribute to a more sustainable development. If we manage to increase the will to
pay for sustainable coffee, we can speed up the transition to sustainable farming methods with profitability at
all stages without negative environmental impacts.
What in the sustainability work are you most proud of?I am very proud of working in a family business with a clear basis of values, where a relatively large share of
the profit is invested in development projects in the coffee producing countries and other community
initiatives. There is a great and real commitment for people and the environment in the owner family and the
top management - that is something I am really proud of!
EVA ERIKSSON, DIRECTOR SUSTAINABILITY About the holistic perspective and prioritized issues in the sustainability work.
SUSTAINABILITY GOALS 2020
100 % renewable energy
40 % female managers
100 % certified assortment (all our own brands)
40 % less climate impact (compared to 2005)
1 2
Owners
Employees
Society
Suppliers
Customers
Consumers
Board of directors
IN DIALOGUE WITH OUR CUSTOMERS AND THE WORLD AROUND US
Our company affects and is affected
by many different interested parties
through the value chain. We are keen to
have an open and transparent dialogue
with customers, suppliers and others
in the world around us, to guarantee
that we meet the made demands and
to develop the business in the right
direction.
The dialogue is made primarily
through our daily business, in meetings
and in communication with customers
and employees, in contacts with autho-
rities and through industry cooperation
and so forth. We also follow and carry
through various customer surveys and
brand surveys and have an active busi-
ness intelligence.
1 4
Highly regarded and a sustai-nable profile with the business customers
Sustainable production and consump-
tion of coffee imply an increased
demand for responsibly produced coffee
and that more consumers make active
sustainable choices. An important task
for us is therefore to successfully reach
out with our sustainability work and the
added values we can offer.
Customers in café and restaurant
(Out of Home) and in Retail on the
Swedish market have generally put sus-
tainability matters high up on the agenda.
They also have high levels of confidence
for our sustainability work, we are ranked
among the best companies in the surveys
made. Above all, customers appreciate our
holistic approach with a clear responsibility
from bean to cup, and that we take lead-
ership and push the business in matters
of environment and social responsibility.
Many of our larger hotel and restaurant
customers that have a clear sustainability
profile themselves choose us as their supp-
lier thanks to this. Nordic Choice, Scandic,
McDonald's, Compass Group and Sodexo
are some that serve their guests certified
Löfbergs coffee.
We also have a strong sustainability
profile in Denmark and UK through our
brands Peter Larsen Kaffe, Percol and
Green Cup.
Challenging to reach the consumersAt the same time as the expectations on
responsibility and sustainability are increa-
sing, there are still few consumers that
actively are choosing certified coffee, even if
the proportion is steadily growing. For the
great majority, taste and price are significantly
more important than sustainability when
choosing coffee. One of our greatest challen-
ges forward is to communicate our
sustainability work in a clearer and more easily
accesible way to contribute to a more
sustainable coffee consumption.
"Löfbergs has worked for a long time with
sustainability and always puts ethics, social
responsibility and environment first. There are
few that work with sustainability as whole-
heartedly and consistent as Löfbergs. The com-
pany strengthens us in our sustainability work
and enables us to free up resources to focus on
areas where the needs are greater."
That was the jury's statement when Löfbergs won this year's edition of the Nordic Choice Hotels Sustainability Award.
In the last year, Löfbergs and Nordic Choice
Hotels have strengthen their cooperation in
sustainability. Besides serving organic and
Fairtrade labelled coffee, the cooperation invol-
ves climate compensation and ethical projects in
the producing countries.
AWARD-WINNING SUSTAIN-A BILITY COOPERATION
1 5S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
Sustainable Food Chain
The initiative Sustainable Food Chain
was launched in connection with the
food conference EAT Forum in June.
Behind the initiative, which is coordi-
nated by WWF, are a number of other
large operators in the Swedish food
industry and trade of consumer goods.
Löfbergs is one of the companies. The
goal is to force the pace and increase
the transition to a sustainable produc-
tion and consumption of food through
cooperation, dialogue and clear measu-
res. For more information, please visit
www.hallbarlivsmedelskedja.se
Networks and cooperation
Cooperation is required to push the
industry and the coffee market in a
sustainable direction. We are actively
participating in different networks and
forums with focus on the issues where
we have our greatest challenges or
where we can make the most difference.
We have been members of CSR Sweden
and the climate network the Haga Ini-
tiative for several years, where we carry
out annual greenhouse gas emissions
disclosures to show that it is profitable
to take active climate responsibility.
Together with a number of other
operators in the Swedish food industry,
we launched Sustainable Food Chain
in 2015.
1 6
67 %
17 % 11 %
COFFEE FARMINGResponsibility in the producing countries
The climate changes' effects on
coffee farming and the coffee farmer's
livelihood are our most important
sustainability matters. Working for
climate change adaptation and
environmental adaptation in farming,
and better social conditions is ultima-
tely about guaranteeing our long-term
supply of good coffee.
We are actively working to get
more farmers to convert to more
sustainable farming methods and to
improve the living conditions for the
approximately 40,000 coffee farmers
that deliver our coffee. We focus on two
areas: coffee from certified farms and
development projects that benefit
small-scale coffee farmers.
Good coffee directly from the producing countries. We purchase care-
fully selected and high-quality coffee beans from some twenty countries in
South and Central America, East Africa and Asia. We purchase all our coffee
directly from the producing countries with as few intermediaries as possible.
We purchase all coffee directly from
producing countries on four continents,
mostly from South America.
South America
Central AmericaAfrica
1 8
5 %
The majority of our coffee is sourced from small-scale coffee farmers that sell the
coffee through cooperatives. In all, about 40,000 coffee farmers deliver coffee to
us. We have full traceability on the coffee we purchase, even though a delivery from
a cooperative can consist of coffee from hundreds of different coffee farmers.
Africa
Asia
Coffee from certified farms
Seen to the entire life cycle of coffee,
the clearly biggest share of its climate
impact, about 80 per cent, lies at the
farming stage. Felling and the use of
chemical pesticides are two other
factors that can affect the environment
and the biological diversity negatively
when farming coffee. Many small-scale
coffee farmers and a fast-moving global
coffee market also mean social and
financial challenges.
By demanding and purchasing
coffee from certified farms, we can
contribute to improving the coffee
farmer's possibilities to meet climate
changes, increase their income and
thereby improve the living conditions of
themselves and their families.
The Löfbergs Group is one of the
world's largest importers of organic and
Fairtrade labelled coffee today. Already
in 1995, we purchased the first contai-
ner of organic coffee, not because there
was a market for it, but because it felt
right. We introduced Fairtrade labelled
coffee a few years later. Since then, we
have gradually increased the share of
certified coffee, and the entire assort-
ment under the brand Löfbergs has one
or several labels since last year. The
next goal is 100 per cent certified for all
of our brands, which we will reach by
2020.
Coffee grows best in tropical climate and is cultivated in about 50 countries
around the equator. There are two main coffee species, arabica and robusta, as well as numerous subspecies and cross-breeds. The differences in flavour are not just depending on the coffee specie, but also
on farming conditions and how the beans are handled and roasted.
In the Löfbergs Group, we mainly use high-grown arabica, which has a soft,
aromatic and complex flavour profile. A few products also include high-quality
robusta that gives a special, full-bodied contribution of flavours.
CAREFULLY SELECTED COFFEE BEANS
1 9S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
2010/2011
UTZ Certfied/Organic
Rainforest Alliance Fairtrade Organic/Fairtrade Organic
UTZ Certfied Rainforest Alliance/Organic
50%
40%
30%
20%
10%
0%2011/2012 2012/2013 2013/2014 2014/2015
100%
80%
60%
40%
20%
0%
2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
One of the world's largest importers of
organic and Fairtrade labelled coffee.
The Löfbergs Group purchased 12,700
metric tons of coffee from certified farms
during the year, which is an increase with
38 per cent compared to the year before.
Almost half of all coffee we purchase
comes from certified farms. The combina-
tion organic/Fairtrade is the largest one.
The sales of certified coffee increases.
Most of our coffee is sold under the
brand Löfbergs, and here we have come
really far in the transition to certified
coffee. The proportion increased to
92 per cent this year.
2 0
Our sustainability labels
We are working with several different labels with slightly different focus. All of them guarantee
that the farms are controlled by an independent party, and include criteria regarding fair labour
conditions for coffee farmers and farming methods that meet certain environmental criteria. The
labels we choose should make actual difference and be trustworthy towards our customers.
Fairtrade is an independent product label with focus on human and labour rights. The farmer is guaranteed a minimum price, and the cooperative
receives an extra bonus. It creates prerequisites for better working and living conditions.
Organic. The labels show that the coffee comes from organic farms, where for example chemical pesticides and artificial manure are not used.
Rainforest Alliance is an independent label with focus on conserving biodiversity, sustainable farming methods as well as the conditions and
livelihoods of the farmers.
UTZ Certified is an non-profit organisation that through information and education creates the conditions for a more sustainable production,
increased productivity and higher standards of living.
Our sustainability labelsThe labels we work with have a somewhat different focus, but they all contribute to a sustainable development for people
and the environment.
Our own development projects
We carry on several development pro-
jects, often in cooperation with other
operators, to improve competitiveness
and living conditions for small-scale
coffee farmers.
International Coffee Partners
We founded International Coffee
Partners together with four other
family-owned European coffee compa-
nies in 2001. Two more have joined us
since. The vision of International Coffee
Partners is to make small-scale coffee
farming more competitive to improve
living conditions for farmers and their
families. Productivity and profitability
in the short and long term increase in
the cooperatives through specific local
projects. We focus on education and
practical training, in farming methods
and in climate change adaptation. An
important part in many of the projects
is also to strengthen the women's role
in society.
EUR 11 million have been invested
in 23 projects in 12 countries so far.
More than 30,000 farmers are included.
The participants have in many cases
doubled or even trebled their income,
which naturally has great effects on the
standard of living and the local develop-
ment of society.
Coffee & Climate
In the project Coffee & Climate, we are
working together with other coffee
companies and aid organisations in
Sweden (Sida) and Germany (GIZ) to
help small-scale coffee farmers meet
the climate changes and at the same
time increase their income.
The climate changes have evident
effects on coffee farming in many pla-
ces. Unpredictable weather conditions
with heavy rain and prolonged drought
affect quality and crops, and make
it harder for coffee farmers to make
money. It also affects coming genera-
tions' interest for coffee farming, and
therefore threatens the supply of good
coffee in the long run.
Within Coffee & Climate, the
knowledge from international climate
research has been combined with the
coffee farmers' practical experience
to develop a toolbox that can be used
by coffee farmers all over the world.
The toolbox contains means, practical
working methods and educational
materials. It is accessible via the internet
and is regularly updated with results
from pilot areas and case studies.
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MORE INITIATIVES FOR REALLY GOOD COFFEE
CAFÉ ORGÁNICO MARCLA (COMSA) - HONDURAS
The cooperative COMSA in western Honduras consists of 800 small-scale coffee far-
mers, who farm high-grown arabica on an altitude of 1,200-1,700 metres. The coffee is
organically farmed and in accordance with Fairtrade, which for example results in:
• investments that have improved quality and productivity
• higher salaries and improved working conditions
• own production of organic fertilizers that have replaced artificial fertilizers
• support to local hospitals and ambulance helicopters
• educational scholarships to children and youth
The coffee from COMSA is well-balanced with nuances of chocolate and tropical fruit.
We use it in Harmony (Löfbergs), Økologisk Fairtrade (Peter Larsen Kaffe) and
All Day Americano (Percol) among others.
Development project for a more sustai-
nable future for closer to 1,800 coffee
farmers in a Fairtrade cooperative in
Kenya. Through local educational ef-
forts at the farming, refining and selling
stages, in cooperation with universi-
ties and the trade of consumer goods
among others, and numerous other
efforts, the programme will strengthen
Coffee is farmed on an altitude of
900-1,400 metres at Balanoor Planta-
tions in southern India. We carry on aid
projects to improve the social situation
for the workers and their families. We
pay an extra bonus of 2.5 per cent of
the sales value, which is used to repair
the coffee cooperative and increase the
farmers' income as well as create more
job opportunities for young people in
the coffee business.
The coffee from the cooperative
has an intense but mild flavour and a
prominent acidity. We sell it under the
brand Peter Larsen Kaffe in Denmark.
the pre-school, schoolbooks as well as
equipment and resources to the local
care centre. The coffee from Balanoor
has an intense aroma with nuances of
spices, nuts and vanilla, and is sold
under the brand Crema in Norway.
CREMA FOUNDATION - SOUTH OF INDIA
COFFEE FOR A BETTER FUTURE - KENYA
2 2
Close relationships with our suppliers
We travel around the world for 150 days
a year. We go up to the mountains and all
the way to the coffee farms, to meet far-
mers and find the very best coffee beans.
We have been doing business with many
of them for several generations. We
guarantee the quality through long-term
relation ships and can see with our own
eyes that certifications and development
projects contribute to a positive develop-
ment.
In addition to high demands
on flavour and quality, we also make
demands that all coffee we purchase
should be farmed with consideration
of people and the environment, All our
suppliers must also sign our own code
of conduct that is based on the UN
Global Impact and the core conven-
tions for human rights of ILO. The code
also means that one pledges oneself
to follow national legislation. The code
of conduct is harmonized with 4C, an
international platform for sustainable
coffee production.
Follow-up of the code of conduct is
done through regular contacts and
supplier visits. The number of visits
vary from the systematic risk assess-
ment based on HDI and BSCI. We visit
our main suppliers with an interval of
one to three years. When we discover
deviations of the code of conduct, we
make sure that they are taken care of.
If it is a serious deviation or if a supplier
does not act to take care of the devia-
tion, we will finish the cooperation.
As many coffee farms are family
farms where everyone in the family
helps out, it is important to guarantee
the children's right to schooling, leisure
and development.
Non-renewable (MWh) Renewable (MWh) Coffee production (metric tons)
E = Electricity U = Heating R = Roasting
MWh
12,000
10,000
8,000
6,000
4,000
2,000
0
Metric tons coffee
30,000
25,000
20,000
15,000
10,000
5,000
02005 2010/2011 2011/2012 2012/2013 2013/2014 2014/2015
EE E E E
E
U
UU
U
U U
R
R R R RR
Energy use. The electricity use at our facilities in Sweden, Denmark and Latvia has decreased since 2005, even though that the pro-
duction has increased. Almost 40 per cent of the energy is renewable today. Non-renewable energy is mainly used during roasting.
Heating and a part of the electricity in our Latvian facility are still based on non-renewable energy. The facility in Norway is responsi-
ble for less than one per cent of the production and is not included.
When looking at the whole value chain
from bean to cup, our own refining
business is responsible for quite a small
part of the impact on people and the
environment. At the same time, this is
where we really can and should ensure
responsibility the whole way and steer
the business in a sustainable direction.
Resource efficiency at the refinement
stage, being a responsible and attractive
work place, and local social commit-
ment where we operate are important
Responsibility at home
parts of the sustainability work at home.
Our strongest geographical connection
is in Karlstad, where the Löfbergs Group
was established and where the main of-
fice and the main part of the production
operate. But we are also a local operator
through our businesses in Norway,
Denmark, Latvia and UK.
Resource efficient refinement with renewable energy
Three percent of the total climate impact
of coffee derives from the production in
our roasting houses.
We are still working hard to decrease
the environmental footprint in the
processing stage. We are continuously
working to streamline and reduce our
energy use, and have set an overall goal
to use 100 per cent renewable energy
by 2020. The proportion is almost
40 per cent today.
OUR OWN BUSINESS
2 4
JAN MÖTTÖNEN, TECHNICAL MANAGER About the Löfbergs Group's work to reduce the climate impact.
What is sustainable energy use about for Löfbergs?It is about finding smart solutions for an as efficient energy use as possible, and only using sus-
tainable energy sources. If we look back 20 years, we have accomplished a lot regarding energy
efficiency. Our use of electricity is as low as it was in the beginning of the 1990's while the coffee
production has doubled! The greatest improvement was when we introduced preheating of the
green coffee beans by recycling the hot air from the roasting, a technique we were first in Europe with and
that decreased the energy use with 20 per cent. There is still kWh to save, but it is harder now when the
easier and larger measures have been done.
How far away is the goal 100% renewable? The challenge is above all to switch the LPG that is used when roasting. We are roasting with biogas from the
natural gas network at our Danish facility, but that is not possible in Karlstad. Switching to a natural gas tank
or other solutions in the existing system is not optimal as it would require more transports, and it will not be
as energy efficient. The legislation regarding food safety also limits which fuels can be used for coffee roas-
ting. Together with our LPG supplier, we are trying to find new fuel options. We have our highest hopes on
a "green" LPG made of forest residues, which is under development.
Solar panels with world record
During the spring of 2014, the world's
first large-scale testing facility of solar
panels for both heating and cooling
was built on Löfberg's roof in Karlstad.
The project is a cooperation with
ClimateWell and is partly financed with
EU funds. When the first results were
presented, they showed record levels
of efficiency; for every kWh invested,
10.6 kWh is extracted, which is twice as
much as for previous solar panels.
Transport and delivery – by boat, train and lorry
Coffee is farmed on the green slopes
of the Andes, the precipices of Mount
Kenya and in other exciting places
around the equator. It means that the
coffee beans travel a long way to get
to our part of the world. We have been
working for a long time to streamline
and reduce the climate impact from the
transports, both the incoming transports
of the coffee beans and the distribution
transports of the finished products to
our customers.
Almost all our coffee is transported
as bulk cargo in containers with boat to
Gothenburg and then with train all the
way into our facilities in Karlstad. Using
train saves more than 2,700 metric tons
of carbon dioxide per year compared
to truck transports. Our coffee capsules
from Italy are freighted with train major
parts of the distance since 2014.
A smaller volume of coffee is received in
the ports of Aarhus and Riga for further
transports with trucks to our roasting
houses in Denmark and Latvia.
Some customers pick up their
coffee from us, the rest is delivered
to wholesalers and the customers'
warehouse terminals. We have high
demands on the transport companies
we hire for distribution and delivery. In
Sweden, we use a special procurement
tool for sustainable transports with cri-
teria for work environment, road safety
and environment.
To optimize and reduce the
number of transports, we are regularly
working on planning and packing as
efficient as possible. We are at the same
time actively working to streamline our
order and freight processes.
2 5S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
Roasting
Energy
Business journeys
Own transports
Emissions metric tons per produced coffee (Hagascope)
0.12
0.10
0.16
0.14
0.08
0.06
0.04
0.02
0
Metric tons CO2e/metric tons produced coffee
3,000
4,000
2,000
1,000
0
Metric tons CO2e
2005/ Base year
2010/11 2011/12 2012/13 2013/14 2014/15
Climate impact. Our direct and indirect emissions of greenhouse gases have significantly been reduced since
2005. All electricity and heating in our Swedish and Danish facilities come from renewable energy sources
since last year. Our climate impact has been reduced with 24 per cent since 2005. The fact that it slightly
increased per metric ton of produced coffee is mainly due to a lower production volume.
Our environmental foot print is annually estimated within the scope of our membership in the Haga Ini-
tiative, and includes the business in Sweden and the production in Denmark (which is directed from Sweden).
Estimations according to Greenhouse Gas Protocol scope 1, 2 and business travel scope 3.
Climate compensated business travel
We are climate compensating all our
business travels made by plane. The
cars we use when on duty cannot let
off more than 120 grams of carbon
dioxide per kilometre according to our
car policy. The actual average for the
car journeys during 2014/2015 was 188
grams per kilometre estimated on the
entire life cycle.
Use of materials and packaging
Choice of materials and our packaging
design have an effect from an envi-
ronmental point of view seen to the
consumption of natural resources and
how efficient the transports of our cof-
fee is. By switching from glass jars to
PET cans and zip bags, we have reduced
the freight weight for instant coffee. We
have a high share of vacuum packed
coffee, which means that we freight
less air.
The waste from our business
is mainly combustible material like
packaging material, paper and rests
from green coffee. We have a developed
separation of waste, and our goal is that
as much as possible should be recycled.
The waste from the coffee beans are
pressed to fuel pellets and are used as
biofuel.
2 6
Use of materials. We used 31,786 metric
tons of materials during the year. The
green coffee has a special position and
represents 86 per cent (Karlstad).
Green coffee 86 %
Plastics 4 %
Corrugated cardboard 3 %
Equipment 1 %
Paper 5 %
Other <1 %
Waste treatment. We recycle almost
all waste (99 per cent) as energy,
material or compost (Karlstad).
Energy recovery 74 %
Composting 13 %
Recycling 12 %
Destruction 1 %
Landfill <1 %
2 7S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
Social investments
We contribute to social development in several ways, for example by paying
SEK 13.3 million in taxes and SEK 9.4 million in voluntary investments.
Systematic environment and quality work with support from management systems
Certified management systems for food
safety, quality and environment are
important tools in our daily business.
They are also an acknowledgement
towards customers and other interested
parties that we are working structu-
rally with constant improvements. All
production (except for the micro coffee
roaster Crema in Norway) is covered by
ISO 22000 or FSSC certificates for food
safety. Our Swedish business is also
certified according to ISO 14001 and
ISO 9001.
Social commitment where we operate
We have a strong anchorage in the
local community, especially in Karlstad,
but also in our other core markets. We
want to contribute in different ways to a
positive development where we operate
and commit ourselves beside the core
business to produce and sell coffee. It
can be about sponsoring sports teams
and associations or cooperation with
schools and universities. We invested
about SEK 9.4 million in different local
projects and initiatives during the finan-
cial year of 2014/2015.
In Karlstad, we have been part of infra-
structural investments and the building
of sports arenas, shopping centres and a
congress facility during the years. Right
now, we are participating in the deve-
lopment of an entirely new district with
a central location close to the water.
Financial year 2014/2015 (TSEK)
Revenue 1,745,100
Operating expenses –1,458,043
Salaries and remuneration to employees –206,432
Payments to investors –30,537
Payments to the public sector
Denmark –3,904
Sweden –7,536
Norway –901
Latvia –251
England –757
Investments in society –9,371
Retained economic value 27,368
2 8
Honey with sweet side effects
Löfbergs got beehives on the roasting house's roof in central Karlstad in the summer of 2014. The
aim was foremost to contribute to pollination and a greener urban environment, on top of that the
bees also produced good honey. The honey was then sold at Löfberg's café in aid of charitable
purposes. Everyone that bought a jar got to vote for which organisation should get the surplus.
A total of SEK 10,000 was donated to Julänglarna, a non-profit organisation that collects
contributions to help families that otherwise cannot afford to celebrate Christmas.
Support to cancer research
Our company in UK, Percol, is the official coffee partner of the research fund Cancer
Research UK. A special instant coffee was launched in 2014 as a part of the cooperation,
which is sold in favour of research. The coffee is served at the events of the fund during the
Cancer Awareness Roadshow, which is arranged in all of UK.
97.9 % The attendance rate remains high, the goal is
to always be above 97 per cent.
Development opportunities
We have staff appraisals in all our units.
It is one of the forums where we pick
up development opportunities and
educational needs. Our aim is that all
employees should have an individual
development plan.
We carry out regular employee
satisfaction surveys (next time will be
in 2016). The latest survey gave an Em-
ployee Satisfaction Index of 4.0, where
5 is the highest. We think it is a good
result, but the goal is to be even better.
The employee satisfaction survey shows
that our principal strengths are the work
place as a whole, diversity and sustai-
nability. Among the development areas,
we find competence development.
A secure working environment is a
prioritized area. We are systematically
working with follow-ups and preven-
tive measures. There were no reported
serious incidents during the year.
Competent and committed employees
is key for meeting our customers
demand and make it possible for us to
reach our goals and visions. That is why
it is important for us that we offer a se-
cure, attractive and developing working
environment. Our greatest challenge
from a sustainability and employee
perspective is to improve equality.
Coordinated group with local anchorage
We are 326 employees in five different
countries, which put demands on cen-
tral coordination and local application.
The labour laws are slightly different
in different countries, but we naturally
follow national rules and regulations
as well as collective agreements where
applicable.
We have a common basis of values
that describes the fundamental princip-
les for how we act towards each other
and the world around us. It is based on
our value words: responsibility, com-
mitment, entrepreneurship, long-term
approach and professionalism. The
basis of values is described in a book
that all employees receive in their native
tongue.
We are working after the princi-
ple that all business is local. That is an
explanation to the fact that we do not
have full coordination regarding some
key performance indicators, but we are
continuously working on increasing the
coordination. We planned for a reorga-
nisation during the year, which now has
been carried through, where the global
HR responsibility is more clear. It will
give a better general view, for example
of attendance rates, which remain high.
EMPLOYEES
3 0
EmployeesWomen: 39 % (37 %)
Men: 61 % (63 %)
ManagersWomen: 29 % (28 %)
Men: 71 % (72 %)
Total(326 employees)
Sweden(163 employees)
Women Men
Denmark(53 employees)
Norway(19 employees)
Latvia (51 employees)
England(40 employees)
39 %
37 %
30 %
42 %
51 %
37 % 63 %
48 %
58 %
61 %
63 %
70 %
0 % 20 % 40 % 60 % 80 % 100 %
Focus on gender equality
Becoming a more equal work place is one of our
great challenges. It is important in order to be an
attractive employer for even more people, and
for broadening perspectives and making wiser
decisions.
Of our 326 employees, 61 per cent are men
and 39 per cent are women. It is a marginal dif-
ference compared to previous year. We are most
equal in Latvia where 51 per cent of the em-
ployees are women, and least equal in Denmark
where 70 per cent are men.
On an executive level in the group, there
is an even bigger difference with 71 per cent
men and 29 per cent women. We are not
satisfied with that, our long-term goal is that
half of all managers will be women. We are
actively working with this goal in several
ways, for example when recruiting and with
a new talent programme.
The management team consists of
eleven people, nine men and two women.
The board has nine members including two
employee representatives and two deputy
members. Of the ordinary board members,
44 per cent are women and 56 per cent
are men.
The inequality is to a large extent
due to general traditions in society and
in our line of business. The change is
taking time as we have long periods of
employment and low staff turnover. But
the goal is clear, we want and will be a
more equal company.
3 1S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
This year, we launched an internal
talent programme with the purpose of
encouraging potential leaders and se-
cure the access to future managers and
specialists. At least half of the seats are
reserved for female employees as part
of the work to increase gender equality
in the company.
AWARDED AS A CAREER COMPANY
TALENT PROGRAMME FOR THE LEADERS OF
TOMORROW
The participants of the talent pro-
gramme are educated in leadership,
business sense, communication and
group dynamics. The talent programme
is arranged every other year. The first
round aimed at staff in Sweden, but will
in the long run include all members of
the Löfbergs Group.
– Being selected for the talent
programme strengthened my self-con-
fidence. It was a giving and instructive
training that incites me in my conti-
nuous development, says Anna Myrén,
machine operator.
Every year, Jobtip lists Sweden's most
exciting companies in which to make
a career. The survey includes thou-
sands of companies, and for the first
time we are elected one of the year's
career companies. It is an acknowled-
gement for us that we are an attractive
employer with good development
opportunities. We are extra pleased that
we got top marks when it comes to em-
ployee engagement.
The statement of the jury:
"In its work to reward equality in
the work place, Löfbergs has made
great investments in its talent pro-
gramme that brings out female talents
with potential to management
positions. The global group also offers
international career opportunities for
its employees as it has its own
companies in Sweden, Norway,
Denmark, Latvia and England. Add to
that a solid sustainability work that
permeates the entire organisation and
it is clear that Löfbergs is one of
Sweden's Career Companies 2015."
ABOUT THE SUSTAINABILITY REPORT
This is our fourth sustainability report
and it counts for the fiscal year 1 July
2014 to 30 June 2015. We account for
directions, goals, measures, results and
challenges in the work for a sustainable
development in our entire value chain
from bean to cup.
To guarantee a reliable and relevant
reporting of our sustainability work,
we use the guiding principles of Global
Reporting Initiative. This year, we have for
the first time applied GRI's new version
G4, level Core. It remains some work
and data collection in some areas to be
able to present in full according to the
criteria, our ambition is to continuously
keep developing our presentation.
The contents of the report reflect
the issues that are significant from our
business's impact on people and the
environment through the entire value
chain, our strategic direction and our
interested parties' demands and expecta-
tions. We are continuously valuing which
issues that are most central, on a strategy
level and in dialogue with our interested
parties, for example customers, employ-
ees and other actors. Before the work
with this report, a summarized materiality
analysis has been made in dialogue with
internal key stakeholders.
The reported data applies for the
entire business, where nothing else is
GRI CONTENT INDEXBelow you will find a list of mandatory indicators and indicators chosen from our materiality analysis:
Indicator Description Page/Comments Indicator Description Page/Comments
General information
Strategy and analysis
G4–1 Statements from Chairman of the Board and CEO 3, 8
Organisational profile
G4–3 Name of the organisation 1
G4–4 Primary brands, products, and/or services. 6–7
G4–5 Location of organisation’s headquarters 5
G4–6 Countries in which the organisation operates 6–7
G4–7 Nature of ownership and legal form 5
G4–8 Markets served 5–7
G4–9 Scale of the organisation 5–7
G4–10 Description of workforce
30–31 The majority of the workforce is full-time employees and employees with conditional tenure
G4–11Proportion of employees covered by collective agreements
30 All employees in Sweden are covered by collective agreements
G4–12 The organisation’s supply chain 18–19
G4–13Significant changes in the organisation during the reporting period
No significant changes
G4–14 Approach to the precautionary principle
Through systematic work with risk management and environmental mana-gement.
G4–15Externally developed economic, social environmental charters, principles, or other initiatives to which the organisation subscribes or endorses.
16, 25
G4–16 Memberships and associations 16
Identified material aspects and boundaries
G4–17Units included in the organisation's financial report as well as information whether anyone of these is not included in non-financial report
Financial as well as sustainability report refer to the entire Löfbergs Group.
G4–18 Process for defining report content 34–35
G4–19 Material aspects included in the report 10–11, 34–35
G4–20 Aspect boundary within the organisation 34–35
G4–21 Aspect boundary outside the organisation 10–11, 34–35
G4–22The effects and causes of any restatements of information provided in previous reports
No such changes
G4–23 Significant changes in scope or boundary No such changes
Stakeholder dialogues
G4–24 Stakeholder groups 14–15
G4–25 Identification and selection of stakeholder groups 14–15
G4–26 Stakeholder dialogues 14–15
G4–27 Key topics and concerns raised by stakeholders 14–15
Report profile
G4–28 Reporting period 2014/2015
G4–29 Publication date of most recent report November 2014
G4–30 Reporting cycle Annual
G4–31 Contact person for the report 35
G4–32In Accordance option and GRI Content Index selected by the organisation
34–35
G4–33 Policy and procedures for external assurance 34–35
Governance
G4–34 Governance structure of the organisation 5–7
Ethics and integrity
G4–56Values, codes of conduct and principles of the organisation
8–9
3 4
specified. Work is now being done to
develop uniform tools and systems for
measuring and follow-ups in the entire
group, for the areas where it is missing
today.
Basic data for key performance indi-
cators and statistics is gathered from our
internal operational system. No external
audit of the report has been made. Our
business is however being regularly
audited by external auditors through our
certifications in environment, quality and
food safety. By being a member of the
Haga Initiative, we also receive external
support with the guarantee of quality
regarding climate data. Together with the
other member companies, we publish
a Greenhouse Gas Emissions Disclo-
sure every year according to the GHG
Protocol.
If you have any questions, please
contact me. Eva Eriksson, Director Sustainability
Telephone: +46 (0) 54-14 01 23
eva.eriksson@lofbergs.se
Indicator Description Page/Comments Indicator Description Page/Comments
Specific information (Boundaries for selected aspects in parentheses)
ECONOMIC
Economic performance (The Löfbergs Group, owners)
G4–DMA Governance 8–9
G4–EC1 Generated and distributed economic value 28
G4–EC2Financial implications and other risks and opportunities for the organisation's activities due to climate change
18, 21
Sourcing and procurement principles (The Löfbergs Group, suppliers)
G4–DMA Governance 18–20
G4–FP1Percentage of purchased volume from suppliers compliant with the organisation’s sourcing policy
18–20
G4–FP2Percentage of purchased volume which is verified as being in accordance with credible, internationally recognized responsible production standards
20
Indirect financial effect (Supplier, local community)
G4–DMA Governance 11, 28–29
G4–FP1Indirect positive and negative financial effect as a consequence of the business
18–23, 28–29
ENVIRONMENTAL
Material and raw products (The Löfbergs Group, own business)
G4–DMA Governance 26–27
G4–EN1 Materials used by weight or volume 27
Energy (The Löfbergs Group, own business)
G4–DMA Governance 24–25
G4–EN3 Energy consumption in the organisation 24–25
Emissions (The Löfbergs Group, own business, transports, suppliers)
G4–DMA Governance 24–26
G4–EN15 Direct greenhouse gas emissions (Scope 1) 26
G4–EN16 Indirect greenhouse gas emissions (Scope 2) 26
Transport (The Löfbergs Group,own business, suppliers)
G4–DMA Governance 25–26
G4–EN30
Significant environmental impacts of transporting products and other goods and materials for the organization's operations, and transporting members of the workforce
25–26
WORKING CONDITIONS(The Löfbergs Group, own business)
Occupational health and security
G4–DMA Governance 30
G4–LA6Rates of injury, occupational disease, lost days, absenteeism, and work-related fatalities
30 No serious injuries that have required hospital treatment have occurred during the year.
Diversity and equal opportunity (The Löfbergs Group, own business)
G4–DMA Governance 31
G4–LA12
Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of diversity.
31 Gender balance is presented regarding diversity and equal opportunity
PRODUCT RESPONISBILITY
Customer health and safety (The Löfbergs Group, own business, customers and consumers)
G4–DMA Governance 28
G4–FP5Percentage of production volume manufactured in sites certified for food safety
28
Labelling of products, product information (The Löfbergs Group, own business, customers and consumers)
G4–DMA Governance 15, 20–21
G4–PR5 Results of surveys measuring customer satisfaction 15
3 5S U S TA I N A B I L I T Y R E P O R T 2 0 1 4 / 2 0 1 5
General information about the business
AB Anders Löfberg is the parent company in a group whose
business activities includes production, marketing and sale
of coffee and tea. The business mainly turns to grocery
stores, hotels, restaurants, cafés, wholesales and vending
businesses in Sweden, Norway, Denmark, Finland, England,
Estonia, Latvia and Lithuania.
AB Anders Löfberg is a subsidiary to Bröderna Löfberg AB,
556542-9262.
AB Anders Löfberg´s function is to provide services to
the group companies and to manage the shares of the
subsidiaries.
Development of the group and the parent company´s
business, profit and position (thousands SEK)
Group 2014/ 2013/ 2012/ 2011/
Financial overview 2015 2014 2013 2012
Net sales 1,709,316 1,490,163 1,545,779 1,746,301
Profit after financial items 13,130 12,158 32,058 23,053
Total assets 921,231 955,890 990,766 899,282
Solidity % 41.8% 41.6% 39.2% 41.8%
Parent company 2014/ 2013/ 2012/ 2011/
Financial overview 2015 2014 2013 2012
Net sales 11,849 10,532 0 375
Profit after financial items –2,819 27,857 3,687 6,895
Total assets 458,761 476,856 531,640 418,552
Equity ratio % 64.8% 60.0% 47.4% 60.9%
Significant events during and after the financial year.
The group´s sales have increased compared with previous
years due to the development of prices for USD and green
coffe which are important components in pricing against
customers.
During the financial year a decision was made about buil-
ding a new warehouse and a distribution center in Karl-
stad which will be owned and managed by the subsidiary
Löfberg Logistics AB. The investment is significant and will
be completed during the next financial year. Furthermore,
another 30 % of the shares in The Office Café Company Ltd
in England was acquired whereupon the holding amounts to
100%.
The groups investments in tangible fixed assets amounted to
39,9 (35,9 Msek).
The receivable which AB Anders Löfberg had on the parent
company Bröderna Löfberg AB has been finally amortized
during the year.
Future expected development and material risks and
uncertainties
The group and the parent company´s risks and uncertainties
are mainly attributable to the development of green coffe
prices and the development in the foreign exchange market.
Forward arrangements in future contracts are made in order to
protect the group and the parent company against fluctations.
The group focuses on growth in the out of home segment
and to strengthen the business in other areas.
Foreign branch offices
The groups subsidiary Kaffehuset i Karlstad AB, 556657-9578,
has a branch office in Denmark.
Application of finacial instruments
Forward agreements are used in order to protect the group
and the parent company against fluctations in currency and
green coffee prices. The group´s policy is to use currency
futures to secure corresponding outstanding contracted
green coffe purchases.
Non-financial disclosures
Substainability is important to the group and the business is
for exemple certified in accordance with ISO 14000.
Business that requires license or reporting of duty
according to the Environmental Code
The group
The predominant proportion of the business the group
runs in Sweden requires reporting of duty according to the
Environ mental code. The permission includes the processing
of green coffee and regulates emission to air in roasted gas
and cooling air. The permission has no time limit and cover
to process 50.000 ton of green coffee which is more than
enough for the current needs.
The parent company
The parent company runs no business that requires license
or reporting of duty.
Proposed allocation of the company´s profit
The Board of Directors propose that the profit available, SEK
260 890 943, is allocated as shown below:
Dividends
905.112 shares à 17,00 SEK SEK 15,386,904
Profit brought forward SEK 245,504,039
Total SEK 260,890,943
3 6
Consolidated income statement (Amounts in TSEK)
The Board of Director´s proposed allocation of the
companys profit means that the equity ratio in the group
decrease from 41,8 % to 40,8 % and that the parent
company´s equity ratio rereduces from 64,8 % to 63,5 %.
The assessment of the equity ratio is that it´s satisfactory. It
is also belived that it will be possible to maintain liquidity in
the company and the group at a satisfactory level and also
satisfy the need of working capital.
The Board of Directors opinion is that the proposed
appropriation does not prevent the company to fulfill it´s
obligation in short- and long term, nor to carry out required
investments. The proposed appropriation can by that be
justified with reference to the prudence concept in the
Swedisch Companies Act (ABL) chapter 17, 3 § section two
and three.
For further information about the company´s profit and
financial position information can be found in the following
income statement, balance sheet, cash flow statement and
pertaining notes.
Note 2014/2015 2013/2014
Net sales 3 1,709,316 1,490,163
Change in inventories of products in progress,
finished goods and work in progress 38,489 19,121
Other operating income 4 31,692 25,354
1,779,497 1,534,638
Operating expenses
Raw materials and consumables –1,028,803 –794,170
Goods for resale –110,847 –119,216
Other external costs 5 –334,476 –339,029
Employee benefit expenses 6 –206,432 –190,046
Depreciation, amortization and impairment of tangible
and intagible assets 7 –64,167 –58,784
Other operating expenses 8 –13,035 –9,898
Operating profit 9 21,737 23,495
Result from financial items
Interest income and similar income 11 4,092 5,354
Interest expense and similar charges 12 –12,699 –16,691
Profit after financial items 13,130 12,158
Tax on profit for the year 13 –10,716 –9,657
Net profit for the year 2,414 2 501
Attributable to
The parent company shareholders –693 17
Minority shareholding 3,107 2,484
3 7A D M I N I S T R AT I O N R E P O R T 2 0 1 4 / 2 0 1 5
Intangible fixed assets Note 30/06/2015 30/06/2014
Concessions, patents, licenses, trademarks and similar rights 14 1,473 1,912
Rights of tenancy and similar rights 15 1,438 1,513
Goodwill 16 65,827 84,051
68,738 87,476
Inventories etc. 28
Raw materials and consumables 154,004 171,178
Products in progress 83 122
Finished goods and goods for resale 146,249 107,721
Advance payments to suppliers 645 1,729
300,981 280,750
Property, plant and equipment
Land and buildings 17 135,081 137,612
Expenditures incurred on someone else´s property 18 1,724 –
Plant and machinery 19 110,854 125,514
Equipment, tools, fixtures and fittings 20 28,433 19,377
Construction in progress and advance
payments for property, plant and equipment 21 25,844 20,256
301,936 302,759
Financial assets
Receivables from group companies 23 – 50 000
Other securities held as non-current assets 24, 25 4,447 2,967
Deferred tax asset 26 709 471
Other long-term receivables 27 2,995 2,613
8,151 56,051
Total non-current assets 378,825 446,286
ASSETS
Non-current assets
Current assets
Current receivables
Trade receivables 198,384 173,308
Receivables from group companies 31 12
Current tax assets 3,793 5,124
Other receivables 11,189 12,530
Prepaid expenses and accrued income 29 7,812 6,699
221,209 197,673
Cash and bank balances
Cash and bank 20 216 31 181
Total current assets 542,406 509,604
Total assets 921,231 955,984
Consolidated balance sheet (Amounts in TSEK)
3 8
Equity Note 30/06/2015 30/06/2014
30, 31
Share capital (905,112 shares) 18,102 18,102
Reserves 113,593 122,387
Profit brought forward including net profit for the year 240,602 244,921
Equity attributable to the parent company shareholders 372,297 385,410
Provisions
Provisions for pensions and similar obligations 20 20
Deferred tax liability 26 42,701 45,482
42,721 45,502
Minority interest 12,923 12,266
Total equity 385,220 397,676
Non-current liabilities 33
Liabilities to credit institutions 123,392 136,438
Other liabilities 9,967 6,733
133,359 143,171
For own liabilities and provisions
Property mortgages 131,111 131,801
Shares in subsidiaries – 11,601
Pledged assets 3,131 3,291
134,242 146,693
Other pledges and equivalent collaterals None None
Total pledged assets 134,242 146,693
Contingent liabilities
Guarantees 8,497 14,306
8,497 14,306
Current liabilities
Liabilities to credit institutions 18,568 16,992
Bank overdraft 34 118,061 128,052
Accounts payable 79,351 83,491
Liabilities to group companies 212 –
Current tax liability 9,454 8,142
Other short term liabilities 62,920 48,019
Accrued expenses and deferred income 35 71,365 84,845
359,931 369,541
Total equity and liabilities 921,231 955,890
Pledged assets
EQUITY AND LIABILITIES
3 9T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – G R O U P
Operating activities Note 2014/2015 2013/2014
Profit after financial items 36 13,130 12,158
Adjustments for non-cash items etc. 68,377 59,037
81,507 71,195
Income tax paid –10,711 –4,761
Cash flow from operating ativities before working capital changes 70,796 66,434
Cash flows from working capital changes
Increase(-)/Decrease(+) of inventories –20,231 –50,339
Increase(-)/Decrease(+) of current receivables –24,867 23,051
Increase(-)/Decrease(+) of current liabilities –2,507 6,034
Cash flow from operating activities 23,191 45,180
Consolidated statement of cash flows (Amounts in TSEK)
Investing activities
Acquisition of property, plant, and equipment –39,913 –35,886
Disposial of property, plant, and equipment 40 435
Acquisition of intangible assets –129 –322
Acquisition of financial assets –3,164 –1,585
Disposial of financial assets 51,283 42,677
Cash flow from investing activities 8,117 5,319
Financing activities
Repayment of borrowings –18,227 –38,494
Acquisition of minority share –6,322 –
Paid dividend to the parent company´s shareholders –15,387 –15,387
Paid dividend to the minority shareholers –2,451 –1,761
Cash flow from financing activities –42,387 –55,642
Cash flow for the year –11,079 –5,143
Cash and cash equivalents at the beginning of the year 31,181 34,705
Exchange rate differences in cash and cash equivalents 114 1,619
Cash and cash equivalents at the end of the year 37 20,216 31,181
4 0
Income statement - parent company (Amounts in TSEK)
Note 2014/2015 2013/2014
Net sales 3 11,849 10,532
11,849 10,532
Operative expenses
Other operating expenses 5 –6,072 –5,123
Employee benefit expenses 6 –11,708 –10,469
Operating loss 9 –5,931 –5,060
Profit from financial items
Profit from participation in subsidiary company 10 1,188 35,904
Other interest income and similiar profit items 11 11,332 10,356
Interest expense and similiar profit items 12 –9,408 –13,343
Profit after financial items –2,819 27,857
Appropriations
Group contribution, received 37,210 26,306
Group contribution, paid –920 –
Profit before tax 33,471 54,163
Tax on profit for the year 13 –7,151 –4,517
Net profit for the year 26,320 49,646
4 1T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – PA R E N T C O M PA N Y
Intangible assets Note 30/06/2015 30/06/2014
Goodwill 16 – –
– –
Property, plant, equipment
Equipment, tools, fixtures and fittings 20 50 50
Construction in progress and advance
payments for property, plant and equipment 21 – –
50 50
Balance sheet – parent company (Amounts in TSEK)
ASSETS
Non-current assets
Financial assets
Investment in group companies 22 278,844 282,522
Receivables from group companies 23 38,675 54,761
317,519 337,283
Total non-current assets 317,569 337,333
Current receivables
Receivables from group companies 140,447 138,649
Other receivables 216 368
Prepaid expenses and accrued income 29 244 221
140,907 139,238
Cash and bank balances 285 285
Cash and bank 285 285
Total current assets 141,192 139,523
Total assets 458,761 476,856
Current assets
4 2
Note 30/06/2015 30/06/2014
Equity 30, 31
Restricted equity
Share capital (905,112 shares) 18,102 18,102
Statutory reserve 4,060 4,060
22,162 22,162
Non-restricted equity
Profit brought forward 234,571 200,312
Net profit for the year 26,320 49,646
260,891 249,958
283,053 272,120
EQUITY AND LIABILITIES
Untaxed reserves
Tax allocation reserves 32 18,000 18,000
18,000 18,000
Pledged assets and contingent liabilities - parent company 30/06/2015 30/06/2014
Pledged assets None None
Contingent liabilities
Guarantees for group companies 110,777 107,863
110,777 107,863
Non-current liabilities 33
Other liabilities to credit institutions 13,000 24,898
13,000 24,898
Current liabilities
Liabilities to credit institutions 18,141 16,350
Bank overdraft 34 112,038 120,261
Accounts payable 192 167
Liabilities to group companies 6,098 19,224
Current tax liability 4,384 1,854
Other short-term liabilities 218 228
Accrued expenses and deferred income 35 3,637 3,754
144,708 161,838
Total equity and liabilities 458,761 476,856
Balance sheet – parent company (Amounts in TSEK)
4 3T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – PA R E N T C O M PA N Y
Operating activities 2014/2015 2013/2014
Profit after financial items 36 –2,819 27,857
Adjustments for non-cash items, etc. 10,000 –25,915
7,181 1,942
Income tax paid –4,621 4,471
Cash flow from operating activities before working capital changes 2,560 6,413
Investing activities
Disposial of property, plant and equipment – –50
Acquisition of subsidiary (including minority shares) –6,322 –10,000
Acquisition of financial assets (including group accounts) –58,195 –
Disposial of finacial assets (including group accounts) 50,000 63,958
Cash flow from investing activities –14,517 53,908
Cash flow from working capital changes
Increase(-)/Decrease(+) of current receivables 34,982 –1,560
Increase(-)/Decrease(+) of current liabilities –659 –2,467
Cash flow from operating activities 36,883 2,386
Financing activities
Change in financial liabilities –33,285 –52,456
Recieved group contribution 26,306 11,563
Paid dividend to the parent company´s shareholders –15,387 –15,387
Cash flow from financing activities –22,366 –56,280
Cash flows for the year – 14
Cash and cash equivalents at the beginning of the year 285 271
Cash and cash equivalents at the end of the year 37 285 285
Cash flow statement – parent company (Amounts in TSEK)
4 4
General accounting principles
The parent company applies the same accounting prin-
ciples as the group except those described below in the part
"Accounting principles in the parent company".
The Annual Report has been prepared in accordance with
the Annual Accounts act and for the first year also according
to the Swedish Accounting Standards Board's accounting
principles BFNAR 2012:1 Annual Report and consolidated
accounts (K3).
In accordance to the rules in chapter 35 the group and the
parent company have decided to not account for group
contribution which have occured before the transitiontime
as appropriations. Furthermore the summary covering
several years has not been re-calculated.
Assets, provisions and liabilities have been valued at acquisi-
tion cost unless otherwise is stated below.
Intangible assets
Other intangible assets
Other acquired intangible assets are accounted for as acqui-
sition cost less accumulated amortizations and impairments.
The acquisition value includes, in addition to the purchase
price, other expenditures directly attributable to the acqui-
sition. Expenditures for internally generated goodwill and
brands are recognised in the income statement as expenses
when incurred.
Amortizations
Amortization is made linearly over the asset's estimated
useful life. The depreciation is recognised as an expense in
the income statement.
Useful life
Acquired intangible assets
Consessions, patents, licenses, brands 5 years
Rights of tenancies 33 years
Goodwill 5 years
The right of tenancies are amortized by the term of the contract.
Property, plant and equipment
Property, plant and equipment are accounted for as acquisi-
tion cost less accumulated depreciations and impairments
with adjustments for revaluations. The acquisition value
includes, in addition to the purchase price, other expendit-
ures directly attributable to the acquisition.
Indirect costs of production, which amount to more than
an insignificant part of the total expenditure for the produc-
tion and amount to more than an insignificant figure, are
included in the acquisition value.
Expenditures for dismantling, removal or restoration of loca-
tion are included in the acquisition.
Additional expenditures
Additional expenditures that fulfill the criteria of an asset are
included in the carrying amount of the asset. Expenditures
for ongoing maintenance and repairs are recognised as
expenses when incurred.
Depreciations
Depreciations are done linearly over the asset's estimated
useful life, since it reflects the expected usage of the asset's
future economic benefits. The depreciation is recognised as
an expense in the income statement.
Useful life
Buildings 10–100 years
Incurred expendtures on others properties 7 years
Plant and machineries 3–15 years
Equipment, tools, fixture and fittings 3–15 years
Notes (Amounts in TSEK unless otherwise stated)
Note 1. Accounting principles
4 6
For buildings, plants and machineries the difference in useful
life of significant components have been assessed as signifi-
cant.
The buildings consist of a number of components with
different useful life. The main parts are buildings and land. No
depreciation is made on the land component, whose useful
life is assessed as illimitable. The buildings consists of several
components, which useful lives can vary significantly.
The following main groups of components have been identi-
fied and are the base for depreciation of buildings:
- Framework 80–100 years
- Framework additions, inside walls, etc. 20–40 years
- Installations, heating, electricity, plumbing, ventilation, etc. 20–40 years
- Exterior surfaces, facades, roofs, etc. 20–30 years
- Interior surfaces, equipment of machinery, etc. 10–15 years
Impairments - property, plant, equipment, intangible
assets and shares in group companies
At every closing date, an indication if the asset's value is
lower than the carrying value is assessed. If an indication
exists, the recoverable amount of the asset is calculated.
The recoverable amount is the highest of the fair value less
cost to sell and the value in use. When calculating the value
in use, future expected cash flows that the asset is expected
to generate in the ongoing operations and when it is dis-
posed are discounted to a present value. The discount rate
used is before tax and reflects the marketable assessment of
money's time value and the risks attributable to the asset. A
previous impairment is only reversed if the reasons under-
lying the calculation of the recoverable amount at the latest
impairment have changed.
Leases
All lease contracts are accounted for as financial or operating
lease contracts. A financial lease contract is a contract where
the significant risks and benefits which are associated with
owning the asset transfers from the lessor to the lessee. An
operational lease is a lease contract which is not a financial
lease.
Financial lease contracts where the group is lessee
Rights and obligations according to financial lease contracts
are recognised as assets and liabilities in the balance sheet.
At the initial reporting oportunity the value of the assets
and liabilities is the lowest of the assets actual value and the
present value of the minum lease costs. Expenditures directly
attributable to the agreement adds to the value of the asset.
After the initial accounting oportunity the minimum lease
costs are allocated on interest and repayment on debt in
accordance with effective interest method. Variable fees
accounts for expenses in the financial year they have
incurred.
The amortisations are done over the leased assets useful life
(the lease term).
Operating lease contracts when the company or the group are
lessee
The leasing fees according to operating lease contracts,
including increased first-time rent but excluding expen-
ditures for services, such as insurance and maintance, are
accounted for as expenses linearly over the leasing period.
Financial lease contracts where the group is lessor
At the initial accounting opportunity a recievable are
accounted for the corresponding net investment in the lease
contract. Expenditures directly incurred in connection to
the financial leasing contract are allocated over the leasing
period. After the initial accounting opportunity the financial
income is allocated during the leasing period.
Operating lease contracts when the company or the group are
lessor
The leasing fees according to operating lease contracts,
including increased first-time rent but excluding expen-
ditures for services, such as insurance and maintance, are
accounted for as revenues linearly over the leasing period.
4 7T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Foreign currencies
Monetary items in foreign currencies are recalculated to
the balance sheet date's rate. Non-monetary items are not
recalculated, instead they are accounted for at the acquisi-
tion date rate.
Foreign currency differences that arise due to settlement
or recalculation of monetary items are recognised in the
income statement for the fiscal year they arise.
Net investments
An exchange rate difference relating to a monetary item and
is a part of a net investment in a foreign operation and is
valued to the aquisition value are accounted for as a sepa-
rate component directly in the equity in the consolidated
accounts.
Re-calculation of foreign operations
Assets and liabilities, including goodwill and other groupwise
surpluses and undervalues, are translated into the carrying
amount at the closing day rate. Revenues and expenses are
translated at the spot rate per each day for business activities
unless an exchange rate that approximates the actual rate is
used (average rates). The translation differences which arise
in the re-calculation are taken directly to equity. The accu-
mulated exchange differences arising from the translation of
a non-wholly owned business are allocated and recognized
as part of the minority interest.
Inventory
The inventory is recognised at the lowest of the acquisition
cost and net realisable value. Thereby risks of obsolescence
have been considered. The acquisition cost is calculated
according to the first-in-first-out principle. The acquisition
cost consists of, except expenditures for purchases, expen-
ditures for bringing the goods to their current location and
condition.
In self semi-manufactured and finished goods, the acqui-
sition cost consists of direct costs of production and the
indirect costs that amounts to more than an insignificant
part of the total expenditures for the production (or amounts
to more than an insignificant amount). At the measurement,
considerations have been taken into account regarding a
normal capacity utilisation.
Financial assets and liabilities
Financial assets and liabilities are accounted for in accor-
dance with chapter 11 (Financial instruments valued at
acquisition cost) in BFNAR 2012:1.
Accounting in and derecognisation from the balance sheet
A financial asset or financial liability is recognised in the
balance sheet when the Company becomes a part of the
instrument's contractual terms. A financial asset is dere-
cognised when the contractual right to cash flows from the
asset has expired or been settled. The same applies when
the risks and benefits associated with the holding has been
transferred to an other party substantially and the Company
does not possess control over the financial asset. A financial
liability is derecognised from the balance sheet when the
contractual obligation has been fulfilled or expired.
Valuation of financial assets
Financial assets are at the first recognition date valued at
their acquisition cost, including possible transaction expen-
ditures that are directly attributable to the acquisition of the
asset.
Financial current assets are after the first recognition date
valued at the lowest of the acqusition cost and the net
selling price at the balance sheet day.
Accounts recievable and other recievables that form current
assets are valued individually to the amount expected to be
recieved.
Financial non-current assets are after the first recognition
date valued at acquisition cost with deduction of potential
impairments and with addition of potential revaluations.
Interest-bearing financial assets are valued at amortised cost
with the application of the effective interest rate method.
When evaluating the lowest of aqcuisition cost or fair value
and when estimating the need for impairment, the groups
financial instruments held for diversification are treated as an
investment portfolio and therefore valued as one item.
Derivative instruments that form financial assets and for which
hedge accounting have not been applied (see below) are after
the first recognition valued at the lowest of the acquisition
cost and the net selling price at the balance sheet date.
Valuation of financial liabilities
Long term financial liabilities are valued at amortised cost.
Expenditures that are directly attributable to borrowings are
adjusted in the loans acquisition value and are allocated to
a particular period using the effective interest rate method.
Short-term liabilities are accounted for at acquisition cost.
4 8
Derivative instruments with negative values and for which
hedge accounting have not been applied (see below) are
accounted for as financial liabilities and are valued at the
amount that for the company is the most favourable if the
obligation is settled or transferred at the balance sheet date.
Hedge accounting
Hedge accounting have not been applied by the parent
company or the group.
Remuneration to employees
Remuneration to employees after terminated employment
Classification
Plans for remunerations after terminated employment are
classified either as defined contribution plans or defined
benefit plans.
For defined contribution plans, determined fees are paid to
another Company, normally an insurance company, and
the Company does not have any obligation to the employee
when the fee is paid. The size of the employee's remunera-
tions after terminated employment is dependent on the fees
that have been paid and the return on capital on those fees
For defined benefit plans, the group has an obligation to
provide the remunerations agreed upon to current and
earlier employees. The Company carries in all material
aspects the risk for the remunerations to be higher than
expected (actuarial risk) and the risk for the return on the
assets to deviate from the expectations (investment risk).
Investment risk also exists if the assets are transferred to
another Company.
Defined contribution plans
The fees for defined contribution plans are recognised as
expenses. Unpaid fees are accounted for as a liability.
Defined benefit plans
The Company has chosen to apply the simplifying rules
presented in BFNAR 2012:1.
In cases when the defined benefit plans are financed in
own management, the pension liability is recognised at the
amount that is received from the company that provides the
information.
Pension commitments in the group´s foreign subsidiary are
accounted for in the same way as the foreign subsidiary.
Remunerations for notice of termination
Remunerations for notice of termination, in the extent to
which the remuneration does not give the Company any
future financial benefits, are only recognised as an liability
and expense when the company has a legal or informal
obligation to either
a) terminate an employee's or group of employees' employ-
ment before the normal time for the employment's termina-
tion, or
b) give remunerations at notice of termination through offe-
rings that encourage voluntary termination.
Remunerations for notice of terminations are accounted for
only when the Company has a detailed plan for the notice
of termination and does not have any realistic possibility to
withdraw the plan.
Tax
Tax on profit for the year in the income statement consists of
current tax and deferred tax. Current tax is the income tax for
the current financial year, which refers to the year's taxable
profit and the part of earlier financial years income tax that
have not been recognised. Deferred tax is the income tax for
taxable profits referring to future financial years due to earlier
transactions or happenings.
Deferred tax liabilities are recognised for all taxable
temporary differences but not for taxable temporarys attribu-
table at the first recognition of Goodwill. Deferred tax assets
are recognised for tax-deductible temporary differences and
for the possibility to in the future use taxable loss carried
forward. The valuation is based on the carrying amount for
the corresponding asset or liability that that is expected to be
recovered or settled. The amounts are based on the tax rates
and tax laws that are determined before the balance sheet
date and have not been estimated to their present value.
A deferred tax liability or deferred tax asset cannot be
recognised for temporary differences that are attributable to
non-transferred profits from foreign subsidiaries, branches,
associated companies or jointly controlled companies, given
that it is not obvious that the temporary difference will be
reversed in the foreseeable future.
Deferred tax liabilities that have arisen due to pure acqui-
sitions of substance are valued at their present value if the
value of the deferred tax liability is a substantial part of the
deal and there is a documented relationship between the
4 9T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
purchase price and the buyer's valuation of the deferred tax
liability. A pure acquisition of substance is an acquisition of
shares in a company where the main identifiable assets are
buildings and lands and where the purchase price almost
exclusively relates to the asset with deduction for property
mortgages and deferred tax.
Deferred tax assets have been valued to the amount that is
likely to be recovered based on current and future taxable
profits. The valuation is reviewed at every balance sheet
date.
In the consolidated accounts the untaxed reserves are
divided into deferred tax and equity.
Provisions
A provision is recognised in the balance sheet when the
Company has a legal or informal obligation due to an
occurred event and it is possible that an outflow of resources
are required in order to settle the obligation and a reliable
estimation of the amount can be made.
At the first reporting date, the provision is valued at the best
estimation of the amount that will be required in order to
settle the obligation at the balance sheet date. The provision
is reviewed at every balance sheet date.
Contingent liabilities
A contingent liability is recognised as an disclosure direct
after the balance sheet when:
- A potential obligation attributable to past events and which
existence only will be confirmed by one or several uncertain
events, which are not wihtin the Company's control, occur
or absent, or
- there is a existing obligation due to past events, but has
not been recognised as a liability or provision ' since it is
not probable that an outflow of resources will be needed to
settle the obligation or the obligation's size cannot be esti-
mated with sufficient reliability.
Revenues
The inflow of financial benefits that the Company receives
or will receive on its own behalf are recognised as revenues.
Revenues are valued at fair value of what has been received
or will be received, with deductions for discounts.
Sale of goods
For sale of goods, the revenue is recognised at delivery.
Service agreements - current account
Revenues from engagements on continuous contracts are
recognised as revenues in line with work performed and
material delivered and consumed.
Service agreement- fixed price
Revenues and expenditures from engagements at fixed
prices are recognised as revenues and expenses with the
basis of the percentage of completion method at the balance
sheet day.
Interest, royalty and dividend
Revenue is recognised when the economic benefits asso-
ciated with the transaction probably will flow to the group
and when the income can be estimated reliably.
Interest is recognised as a revenue using the effective inte-
rest rate method.
Dividend is recognised when the owner's right to receive the
payment has been ensured.
Public grant
A public grant which is not associated with a demand on
future performance is accounted for as a revenue when
the terms for receiving the grant are fulfilled. A public
grant which is combined with demands on future perfor-
mance is recognised as a revenue when the performance is
performed. If the grant has been received before the terms
for recognising the grant as a revenue have been fulfilled, the
grant is recognised as a liability.
Accounting of grants associated to non-current assets
Public grants related to non-current assets are accounted
for in the balance sheet by reducing the asset´s carrying
amount.
Consolidated accounts
Subsidiary
Subsidiaries are companies in which the parent company
directly or indirectly holds more than 50 % of the number of
votes or otherwise has the controlling influence. Controlling
influence means a right to design a company´s financial and
operatively strategies in purpose to get economic benefits.
The accounting of business acquisition is based on the sight
of unity. It means that the acquisition analysis is made on
the time when the acquirer get controlling influence. From
that moment the acquirer and the acquired unit are seen as
5 0
the same accounting unit. The application of this sight of
unity means also that all assets (including goodwill), liabili-
ties, revenues and expenditures are accounted as a whole
even for co-owned subsidiaries.
The acquisition cost for the subsidiary is calculated to the
total of real value at the acqusisition date for the assets paid
with an addition of arise- and overtaken liabilities and issued
instruments of equity, expenditures directly attributable to
the acquisition and possible additional purchase price.
The acquisition analysis determines the fair value, with a
few exceptions, at the acquisition date of aquired identifi-
able assets, overtaken liabilities and the minority interest.
The minority interest is valued to fair value at the acquisi-
tion date. From the aquisition date the acquired company´s
revenues, expenditures, identifiable assets and liabilities and
possible godwill are included in the consolidated accounts.
Goodwill
Groupwise goodwill arise when the acquisition cost in an
acquisition of participations in a subsidiary exceed the deter-
mined value for the acquisition company´s identified net
assets in the acquisition analysis. Goodwill is accounted for
to the acquisition cost with deduction for amortizations and
possible impairments.
Changes in participating interest
An acquisition of additional shares in companies which
already are subsidiaries does not create a new acquisition
analysis since the parent company already has the control-
ling influence. Since the change in the participatings in a
company which is a subsidiary only is a transaction between
the owners no accounting for profit or loss in the income
statement is made. The effects of the transactions is only
accounted for in equity.
In an acquisition of additional shares in a company which
means that the company becomes a subsidiary an acquisi-
tion analysis is made. The already owned participatings
considers to be sold. When the participatings Profit or a
loss, calculated as the difference between market value and
groupwise carrying amount, will be accounted for in the
consolidated income statement.
When participatings in a subsidiary are disposed or the
controlling influence otherwise expires, the assets are treated
as sold in the consolidated accounts. A profit or a loss will
be accounted for in the consolidated income statement. If
there are any participatings left after the expired controlling
influence they will be accounted for with the fair value at the
acquisition time and to aquisition cost.
Elimination of transactions between the group company
Within the group, recievables and liabilities, revenues and
expenditures, unrealized profits or losses that arise in trans-
actions between group companies are eliminated.
Accounting principles in the parent company
The accounting principles in the parent company are in
accordance with the accounting principles in the groups
consolidated accounts (see above) exept in the following
cases.
Lease
Financial lease contracts are accounted for as operating
lease contracts in the parent company.
Foreign currencies
A currency difference which refers to a monetary item and
is part of the parent companys net investment in foreign
operations and is valued to acquisition cost are recognised
in the income statement if the difference has arised in the
parent company.
Shares in subsidiaries
Participations in a subsidiary are accounted for at acquisi-
tion cost, reduced with accumulated impairments. The
acqusition includes, except the purchase price, expenditures
directly attributable to the acquisition.
Tax
In the parent company, the deferred tax relating to untaxed
reserves is not disclosed separately in the accounts.
Group contribution and shareholders contribution
A group contribution recieved/paid are recognised as an
appropriation in the income statement. The recieved/paid
group contribution has affected the company´s current tax.
Shareholder´s contribution that have been paid without
issue of new shares or other equity instruments in exchange
are recognised in the balance sheet as an increase of the
shares carrying amount.
5 1T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Note 2. Estimates and judgments
Note 3. Net sales by geographic market and business segments
Significant estimates for the future, or other sources of uncertainty in estimates, at the balance sheet day that includes a material
risk for significant adjustment of the carrying amount of the assets or liabilities during the next financial year has not been made
according to our judgment.
The group
Net sales by business segments 2014/2015 2013/2014
Coffee and tea 1,709,316 1,490,163
1,709,316 1,490,163
Net sales by geographic market
Sweden 963,984 797,466
Denmark 335,914 305,005
Norway 86,942 79,403
Baltics 124,864 107,971
England 138,603 120,151
Rest of Europé 59,009 80,166
1,709,316 1,490,163
The parent company
Net sales by business segments 2014/2015 2013/2014
Administrative services 11,849 10,532
11,849 10,532
Net sales by geographic market
Sweden 7,184 5,438
Denmark 678 757
Norway 1,608 1,652
Baltics 866 895
England 1,513 1,790
11,849 10,532
5 2
Amounts in TSEK.
The group 2014/2015 2013/2014
Exchange gains on operating receivables/liabilities 23,562 15,087
Others 8,130 10,267
31,692 25,354
The group 2014/2015 2013/2014
KPMG (Sweden and foreign countries)
Audit services 954 1,022
Tax consultancy work 105 109
Other services 419 233
The parent company
KPMG
Audit services 109 104
Tax consultancy work 99 187
Other services 297 82
Audit services refer to the legally required examination of the annual report, book-keeping, the Board of Director's and the
Managing Director's management, other work assignments which rest upon the Company's auditor to conduct, and advising
or other support justified by observations in the course of examination or execution of such other work assignments.
Note 4. Other operating income
Note 5. Audit fees and expenses
5 3T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Whereof Whereof
Average number of employees 2014/2015 men 2013/2014 men
Parent company
Sweden 7 71% 7 71%
Total of parent company 7 71% 7 71%
Subsidiaries
Sweden 156 63% 154 64%
Denmark 53 72% 49 71%
Norway 19 55% 23 57%
Latvia 51 48% 50 46%
England 40 61% 44 64%
Total of subsidiaries 319 60% 320 62%
Group total 326 61% 327 62%
Disclosure of gender distrubution 2015-06-30 2014-06-30
in the company´s management Proportion of women Proportion of women
Parent company
Board of Directors 44% 36%
Other senior management 38% 33%
The group
Board of Directors 27% 36%
Other senior management 27% 33%
Salaries, other remunerations 2014/2015 2013/2014
and social security expenses, Salaries and Social security Salaries and Social security
including pension remunerations expenses remunerations expenses
Parent company 7,658 3,850 7,381 3,344
(of that pension expenses) (1,439) 1) (1,025) 1)
Subsidiaries 133,419 42,886 125,362 41,205
(of that pension expenses) (15,058) (14,338)
The group total 141,077 46,736 132,743 44,549
(of that pension expenses) (16,497) 2) (15,363) 2)
1) Of the parent company´s pension expenses 649 thousands SEK (p.y. 274) relates to the company´s Board of Directors and Managing
Director. The company has no outstanding pension commitments to this group.
2) Of the group´s pension expenses 1 337 thousands SEK (p.y. 764) relates to the company´s Managing Director and members of the
board. The group has no outstanding pension commitments to this group.
Note 6. Employees, personnel costs and remunerations
to Board of Directors
5 4
Amounts in TSEK.
Severance pay
The parent company has eight executives. In case of notice of termination from the employer, a term of notice between
3 – 12 moth applies. The same terms are used in the foreign subsidiaries.
Group 2014/2015 2013/2014
Depreciation and amortisation according to plan divided by asset
Concessions, patents, licenses and trademarks –625 –588
Rights of tenancy and similar rights –75 –76
Goodwill –26,905 –25,077
Land and buildings –4,102 –3,950
Expenditures incurred on someone else´s property –21 –
Plant and machinery –25,138 –23,900
Equipment, tools, fixtures and fittings –7,301 –5,193
–64,167 –58,784
Group 2014/2015 2013/2014
Exchange losses on operating receivables/liabilities –10,283 –8,655
Others –2,752 –1,243
–13,035 –9,898
Note 7. Depreciation, amortisation and impairment of property,
plant and equipment and equipment and intangible assets
Note 8. Other operating expenses
Salaries and other remunerations 2014/2015 2013/2014
divided between board members Board of Directors & Other Board of Directors & Other
et al. and other employees Managing Director employees Managing Director employees
Parent company 3,490 4,168 3,347 4,034
Subsidiaries 8,829 124,590 5,468 119,894
The group total 12,319 128,758 8,815 123,928
5 5T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Lease contracts where the company is the lessee
Group 30/06/2015 30/06/2014
Future minimum lease payments regarding non-cancellable operating lease contracts
Within one year 10,913 11,136
Between one to five years 16,579 15,173
Later than five years 2,500 –
29,992 26,309
Lease contracts where the company is the lessor
Group 30/06/2015 30/06/2014
Future minimum lease payments regarding non-cancellable operating lease contracts
Within one year 5,462 4,509
Between one to five years 13,763 7,680
Later than five years – 810
19,225 12,999
The compilation above consists of 100 % external rental incomes.
Parent company 30/06/2015 30/06/2014
Future minimum lease payments regarding non-cancellable operating lease contracts
Within one year 82 124
Between one to five years 48 130
Later than five years – –
130 254
Note 9. Operating lease
2014/2015 2013/2014
The financial year´s recognised lease expenses 13,053 11,831
The compilation above includes rental commitments.
2014/2015 2013/2014
The financial year´s recognised lease expenses 130 254
2014/2015 2013/2014
Dividends from subsidiaries 11,188 43,289
Impairment of shares in subsidiaries –10,000 –7,385
1,188 35,904
Note 10. Profit from participation in group companies
5 6
Amounts in TSEK.
Group 2014/2015 2013/2014
Interest income, group companies 1,289 2,433
Interest income, other 473 411
Exchange rate differences 2,330 2,510
4,092 5,354
Parent company
Interest income, group companies 9,204 7,876
Interest income, other 2 13
Exchange rate differences 2,126 2,467
11,332 10,356
Note 11. Interest income and similiar profit items
Group 2014/2015 2013/2014
Interest expense, group companies –6,948 –10,288
Interest expense, other –966 –659
Exchange rate differences –4,785 –5,744
–12,699 –16,691
Parent company
Interest expense, group companies –1,224 –1,743
Interest expense, other –3,496 –5,746
Other –92 –110
Exchange rate differences –4,596 –5,744
–9,408 –13,343
Group 2014/2015 2013/2014
Current tax expense –13,349 –10,327
Adjustment of tax referable to previous year 5 –551
Deferred tax 2,628 1,221
–10,716 –9,657
Parent company
Current tax expense –7,156 –3,966
Adjustment of tax referable to previous year 5 –551
–7,151 –4,517
Note 12. Interest expense and similar charges
Note 13. Tax on profit for the year
5 7T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Reconcillation of effective tax rate
2014/2015 2013/2014
Group Per cent Amount Per cent Amount
Profit before tax 13,130 12,158
Tax according to Swedish tax rate
for the group 22.0% –2,889 22.0% –2,675
Effect due to other tax rates
for foreign subsidiaries 6.4% –840 1.3% –158
Amortization of groupwise goodwill 45.1% –5,919 45.4% –5,517
Other non-deductible expenses 1.8% –239 1.8% –213
Non-taxable income 0.0% 3 0.0% –
Increase of loss carry-forward without
corresponding recognise of deferred tax 6.2% –811 4.0% –484
Tax attributable to earlier years 0,0% 5 4.5% –551
Standard interest on tax allocation reserve 0.2% –26 0.5% –59
Reported effective tax 81.6% –10,716 79.4% –9,657
2014/2015 2013/2014
Parent company Per cent Amount Per cent Amount
Profit before tax 33,471 54,163
Tax according to current tax rate
for the parent company 22.0% –7,364 22.0% –11,916
Non-deductible expenses 6.7% –2,228 2.8% –1,515
Non-taxable income –7.4% 2,462 –17.6% 9,524
Tax attributable to earlier years 0,0% 5 1.0% –551
Standard interest on tax allocation reserve 0.1% –26 0.1% –59
Reported effective tax 21.4% –7,151 8.3% –4,517
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 3,066 2,852
Other investments 129 55
Exchange rate differences during the year 133 159
At the end of the year 3,328 3,066
Accumulated amortisations
At the beginning of the year –1,154 –508
Amortisation during the year –625 –588
Exchange rate differences during the year –76 –58
At the end of the year –1,855 –1,154
Carrying amount at the end of the year 1,473 1,912
Note 14. Concessions, patents, licenses,
trademarks and similar rights
5 8
Amounts in TSEK.
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 2,500 2,595
Disposals – –100
Translation differences during the year – 5
At the end of the year 2,500 25003066
Accumulated amortisation
At the beginning of the year –987 –1,006
Disposals – 100
Amortisation during the year –75 –76
Translation differences during the year – –5
At the end of the year –1,062 –987
Carrying amount at the end of the year 1,438 1,513
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 221,584 209,226
Acquisitions – 267
Translation differences during the year 12,343 12,091
At the end of the year 233,927 221,584
Accumulated amortisation
At the beginning of the year –137,533 –109,397
Amortisation during the year –26,905 –25,077
Translation differences during the year –3,662 –3,059
At the end of the year –168,100 –137,533
Carrying amount at the end of the year 65,827 84,051
Parent company
Accumulated aquisition costs 30/06/2015 30/06/2014
At the beginning of the year 7,500 7,500
At the end of the year 7,500 7,500
Accumulated amortisation
At the beginning of the year –7,500 –7,500
At the end of the year –7,500 –7,500
Carrying amount at the end of the year – –
Note 15. Rights of tenancy and similar rights
Note 16. Goodwill
5 9T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Note 18. Expenditures incurred on someone else s property
Group
Accumulated acquisition 30/06/2015 30/06/2014
At the beginning of the year 181,601 174,909
Acquisitions 1,804 4,356
Exchange rate differences during the year –518 2,336
At the end of the year 182,887 181,601
Accumulated depreciation
At the beginning of the year –48,604 –44,007
Depreciation during the year –4,051 –3,898
Exchange rate differences during the year 285 –699
At the end of the year –52,370 –48,604
Accumulated revaluations
At the beginning of the year 4,615 4,666
Depreciation on revaluations during the year –51 –51
At the end of the year 4,564 4,615
Carrying amount at the end of the year 135,081 137,612
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year – –
Acquisitions 1,745 –
At the end of the year 1,745 –
Accumulated depreciation
At the beginning of the year – –
Depreciation during the year –21 –
At the end of the year –21 –
Carrying amount at the end of the year 1,724 –
Note 17. Lands and buildings
6 0
Amounts in TSEK.
Note 19. Plant and machinery
Note 20. Equipment, tools, fixtures and fittings
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 457,177 438,445
Acquisitions 14,120 18,803
Disposals –11,358 –2,316
Exchange rate differences during the year 477 2,245
At the end of the year 460,416 457,177
Accumulated depreciation
At the beginning of the year –331,663 –308,389
Reversed depreciation on disposals 7,457 2,143
Depreciation during the year –25,138 –23,900
Exchange rate differences during the year –218 –1,517
At the end of the year –349,562 –331,663
Carrying amount at the end of the year 110,854 125,514
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 69,653 62,321
Acquisitions 16,656 8,659
Disposals –4,382 –1,701
Exchange rate differences during the year 102 374
At the end of the year 82,029 69,653
Accumulated depreciation
At the beginning of the year –50,276 –45,897
Reverse depreciation on disposals 4,033 1,067
Depreciation during the year –7,301 –5,193
Exchange rate differences during the year –52 –253
At the end of the year –53,596 –50,276
Carrying amount at the end of the year 28,433 19,377
Parent company
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 50 –
Acquisitions – 50
At the end of the year 50 50
Carrying amount at the end of the year 50 50
6 1T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Note 21. Construction in progress and advance
payments for property, plant and equipment
Group 30/06/2015 30/06/2014
At the beginning of the year 20,256 16,188
Reclassifications –19,179 –13,581
Investments 24,767 17,649
Carrying amount at the end of the year 25,844 20,256
Note 22. Participations in group companies
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 289,907 279,907
Acquisitions 6,322 10,000
At the end of the year 296,229 289,907
Accumulated impairments
At the beginning of the year –7,385 –
Impairment during the year –10,000 –7,385
At the end of the year –17,385 –7,385
Carrying amount at the end of the year 278,844 282,522
Specification of the parent company´s and the group´s
participation in group companies
30/06/2015 30/06/2014
Number of Share Carrying Carrying
Subsidiary / Corp. Id. No / Registrered office shares in % 1) amount amount
Löfbergs Lila AB, 556290-7088, Karlstad 200,000 100.0 20,000 20,000
Kaffehuset i Karlstad AB, 556657-9578, Karlstad 400,000 100.0 40,007 40,007
Löfberg i Karlstad AB, 556326-6278, Karlstad 1,000 100.0 12,636 12,636
Löfberg Logistic AB, 556968-4532, Karlstad 100,000 100.0 10,000 10,000
Löfberg Lila Fastigheter AB, 556027-5694, Karlstad 26,627 100.0 20,369 20,369
Löfbergs Lila AS, 876862662, Oslo Norway 50 100.0 7,059 7,059
Crema Kaffebrenneri AS, 934459768, Sandefjord, Norway 64 100.0
Peter Larsen Kaffe A/S, CVN-NR 45667219, Viborg, Denmark 900 75.0 36,833 36,833
SIA Melna Kafija, Latvia 2,134,917 100.0 47,007 47,007
The Office Café Company Ltd, England 240 100.0 6,322 –
Food Brands Group Holdings Ltd, England 500,000 100.0 78,611 88,611
Food Brands group Ltd, England 50,000 100.0
278,844 282,522
1) Percentage of shares refers to the owner´s share of capital, which also is consistent with the voting rights
for the total number of shares.
6 2
Amounts in TSEK.
Note 23. Receivables from group companies
Note 24. Other securities held as non-current assets
Note 25. Financial instruments and risk management
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 50,000 91,959
Settled receivables –50,000 –41,959
At the end of the year – 50,000
Carrying amount at the end of the year – 50,000
Group
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 3,452 3,449
Additional assets 1,500 –
Exchange rate differences during the year – 3
At the end of the year 4,952 3,452
Parent company
Accumulated acquisition costs 30/06/2015 30/06/2014
At the beginning of the year 54,761 96,211
Additional receivables 33 300 –
Settled receivables –50,000 –41,836
Exchange rate differences during the year 614 386
At the end of the year 38,675 54,761
Carrying amount at the end of the year 38,675 54,761
Accumulated impairments
At the beginning of the year –485 –485
Impairments during the year –20 –
At the end of the year –505 –485
Carrying amount at the end of the year 4,447 2,967
Derivatives and financial risk management
The fair value for currency future contracts is determined
with the basis of quoted prices if available. It not available,
the fair value is measured by discounting the difference
between the agreed forward rate and the forward rate that
can be signed at the reporting date for the remaining period
of the contract. The discounting is conducted with a risk-free
rate based on government bonds.
At the balance sheet day the group´s portfolio with currency
future contracts has a negative net value at 1 074 thousands
SEK. The amount is recognised as a short term liability.
6 3T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Note 26. Deferred tax
Group 30/06/2015
Carrying Tax Temporary
Significant temporary differences amount base difference
Land and buildings in Sweden 81,869 20,287 61,582
Groupwise surplus buildings 8,798 – 8,798
Machinery and equipment in Sweden 113,788 25,751 88,037
Tax allocation reserves – –18,000 18,000
Unrealized loss at financial instruments –1,074 – –1,074
Non-current assets in a foreign country 70,794 50,500 20,294
299,674 104,037 195,637
Taxable loss carry-forward amounts to 10 712 thousands SEK and refers to loss in a foreign country.
The tax value of the loss has not been recognised in the financial statements.
Group 30/06/2014
Carrying Tax Temporary
Significant temporary differences amount base difference
Land and buildings in Sweden 83,077 22,000 61,077
Groupwise surplus buildings 8,798 – 8,798
Machinery and equipment in Sweden 119,376 20,065 99,311
Tax allocation reserves – –18,000 18,000
Non-current assets in a foreign country 71,735 49,851 21,884
311,558 102,488 209,070
Taxable loss carry-forward amounts to 7 171 thousands SEK and refers to loss in a foreign country.
The tax value in the loss has not been recognised in the financial statements.
Group 30/06/2015
Deferred Deferred
Significant temporary differences tax asset tax liability Net
Land and buildings in Sweden – 13,548 –13,548
Groupwise surplus buildings – 698 –698
Machinery and equipment in Sweden – 19,368 –19,368
Tax allocation reserves – 3,960 –3,960
Unrealized loss at financial instruments 236 – 236
Non-current assets in a foreign country 473 5,127 –4,654
Deferred tax asset/liability 709 42,701 –41,992
Group 30/06/2014
Deferred Deferred
Significant temporary differences tax asset tax liability Net
Land and buildings in Sweden – 13,437 –13,437
Groupwise surplus buildings – 698 –698
Machinery and equipment in Sweden – 21,848 –21,848
Tax allocation reserves – 3,960 –3,960
Non-current assets in a foreign country 471 5,539 –5,068
Deferred tax asset/liability 471 45,482 –45,011
6 4
Amounts in TSEK.
Note 27. Other long-term receivables
Note 28. Inventories etc.
Group
Accumulated acquisition 30/06/2015 30/06/2014
At the beginning of the year 2,613 1,710
Additional receivables 1,664 1,585
Settled receivables –533 –718
Reclassification to short-term receivables –750 –
Exchange rate differences during the year 1 36
At the end of the year 2,995 2,613
Carrying amount at the end of the year 2,995 2,613
Inventories has, in all material aspects, been accounted for at acquisition cost, the risk for obsolescence
has been taken into account.
Group 30/06/2015 30/06/2014
Rents, lease and insurance 1,620 1,790
Prepaid invoices of goods 1,943 3,135
Prepaid insurance expenses 810 737
Prepaid PR expenses 1,351 219
Expenses invoices etc. 2,088 818
7,812 6,699
Parent company
Expenses invoices etc. 244 221
244 221
Note 29. Prepaid expenses and accrued income
6 5T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Note 30. Equity in the opening balance sheet Other
Group Share capital paid-in capital Reserves
According to established balance sheet 30/06/2013 18,102 – 122,026
Effects of change of accounting principles (BS) – – –
Adjusted balance after change of accounting principles 01/07/2013 18,102 – 122,026
The translation reserve of the year 361
Equity 30/06/2014 18,102 – 122,387
Profit brought forward Minority
Group incl. net profit for the year interest
According to established balance sheet 30/06/2013 248,723 10,983
Effects of change of accounting principles (BS)
Deferred tax on temporary differences –1,026 –
change of accounting principles 01/07/2013 247,697 10,983
According to decision at annual general meeting
• Dividend –15,387 –1,761
Net profit for the year according to established income statement 80 2,484
The translation differences which are taken directly to equity 12,594 560
Effects of change of accounting principles (P & L)
Component depreciation –923
Transfers between upkeep/investment
based on component depreciation 828
Deferred tax on temporary differences 32
Total effects of change of accounting principles (P & L) –63
Equity 30/06/2014 244,921 12,266
Profit brought
Restricted forward incl. net
Parent company equity Other funds profit for the year
According to established balance sheet 30/06/2013 18,102 4,060 215,699
Effects of change of accounting principles (BS) –
Adjustment balance after change of accounting principles 01/07/2013 18,102 4,060 215,699
According to decision at annual general meeting
• Dividend –15,387
Net profit for the year according to established income statement 29,127
Effects of change of accounting principles (BS)
• Group contribution as appropriations 20,519
Total effects of change of accounting principles (BS) 20,519
Equity 30/06/2014 18,102 4,060 249,958
6 6
Amounts in TSEK.
Note 31. Equity
30/06/2015
Profit brought
forward incl. Total
Group Share capital Reserves net profit Minority equity
Opening balance 18,102 122,387 246,010 12,266 398,765
Effect of retrospective application – – –1,089 – –1,089
Adjusted opening balance 18,102 122,387 244,921 12,266 397,676
Net profit for the year –693 3,107 2,414
Changes in carrying amounts that are accounted for directly in equity
Translation difference – 816 8,474 1 9,291
Total – 816 8,474 1 9,291
Transactions with owners
Dividends –15,387 –2,451 –17,838
Changes of shares in subsidiary – –6,323 – –6,323
Total transactions with owners – – –21,710 –2,451 –24,161
Reallocations of items in equity
Other reallocations – –9,610 9,610 – –
Total reallocations – –9,610 9,610 – –
At year end 18,102 113,593 240,602 12,923 385,220
30/06/2015 Restricted equity Non-restricted equity
Profit brought
forward incl. Total
Parent company Share capital Reserves net profit Minority equity
Opening balance 18,102 4,060 249,958 272,120
Effect of retrospective application – – – –
Adjusted opening balance 18,102 4,060 249,958 272,120
Net profit for the year 26,320 26,320
Transactions with owners
Dividend – – –15,387 –15,387
Total transactions with owners – – –15,387 –15,387
At year end 18,102 4,060 260,891 283,053
Note 32. Tax allocation reserves 30/06/2015 30/06/2014
Provision for financial year 2009/2010 18 000 18 000
18,000 18,000
6 7T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Amounts in TSEK.
Note 33. Non-current liabilities
Note 35. Accrued expenses and deferred income
Note 34. Bank overdraft
Group 30/06/2015 30/06/2014
Liabilities that mature later than one year from the balance sheet day:
Other liabilities to credit institutions 123,392 132,830
Liabilities that mature later than five years from the balance sheet day:
Other liabilities to credit institutions – 3,608
Parent company
Liabilities that mature later than one year from the balance sheet day:
Other liabilities to credit institutions 13,000 24,898
Group 30/06/2015 30/06/2014
Salaries and vacation pay 24,675 26,611
Social security expenses 11,470 14,251
Selling promotion 20,519 30,917
Other items 14,701 13,066
71,365 84,845
Parent company
Salaries and vacation pay 1,585 1,821
Social security expenses 1,101 1,091
Other items 951 842
3,637 3,754
Group 30/06/2015 30/06/2014
Pledged assets for other liabilities
Property mortgages 131,111 131,801
Pledged assets 3,131 3,291
Shares in subsidiary – 11,601
134,242 146,693
Parent company
Pledged assets for other liabilities None None
Group 30/06/2015 30/06/2014
Credit limit 207,775 186,581
Unused –89,714 –58,529
Used credit amount 118,061 128,052
Parent company
Credit limit 190,000 170,000
Unused –77,962 –49,739
Used credit amount 112,038 120,261
6 8
Amounts in TSEK.
Note 36. Paid interest and received dividend
Note 37. Cash equivalents
Note 38. Group information
Group 2014/2015 2013/2014
Received dividend – –
Received interest 1,762 2,844
Paid interest –6,948 –10,288
Parent company
Received dividend 11,188 43,289
Received interest 9,206 7,889
Paid interest –4,720 –7,489
Group 30/06/2015 30/06/2014
The following sub-components are included in cash equivalents:
Bank balance 20,216 31,181
20,216 31,181
Parent company
The following sub-components are included in cash equivalents:
Bank balance 285 285
285 285
The above items have been classified as cash equivalents with the basis that:
- They have an immaterial risk for value fluctuations.
- They can easily be converted into cash.
- They have a maximum duration of 3 months from the acquisition date.
AB Anders Löfberg is a subsidiary to Bröderna Löfberg AB, 556542-9262, with domicile in Karlstad - Sweden. Bröderna Löfberg
AB also prepares consolidated accounts and is owned by a number of individuals.
Purchases and sales within the Group
Of the Group's total purchases and sales, the share between other companies in the Group is insignificant.
Of the parent company's total purchases and sales in SEK, is the purchases from the companies in the group insignificant,
while 100 % of the sales is to other companies in the group that the company belongs to.
6 9T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – N O T E S A N D C O M M E N T S
Our audit report has been submitted on 30 October 2015.
KPMG AB
Mattias Eriksson
Authorized Public Accountant
Karlstad 20 October 2015
Kathrine Löfberg Lena Andersson Hofsberger
Chairman
Lena Larsson Kasper Lennbroch
Mikael Löfberg Niklas Löfberg
Christian Sievert Bengt Holma
Employee representative
Charlotte Blomquist Lars Appelqvist
Employee representative CEO
7 0
Auditor’s report
To the annual meeting of the shareholders of AB Anders Löfberg, corp. id. 556279-8966
Report on the annual accounts and consolidated accounts
We have conducted an audit of the annual accounts and the con-
solidated accounts for AB Anders Löfberg for the financial year
01/07/2014-30/06/2015.
Responsibilities of the Board of Directors and the Managing Director
for the annual accounts and consolidated accounts
The Board of Directors and the Managing Director are responsible for the
preparation and fair presentation of these annual accounts in accordance
with the Annual Accounts Act, and for such internal control as the Board
of Directors and the Managing Director determine is necessary to enable
the preparation of annual accounts and consolidated accounts that are
free from material misstatement, whether due to fraud or error.
Auditor's responsibility
Our responsibility is to express an opinion on the annual account and
the consolidated account based on our audit. We conducted our audit
in accordance with International Standards on Auditing and generally
accepted auditing standards in Sweden. Those standards require that
we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the annual accounts and
consolidated accounts are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about
the amounts and disclosures in the annual accounts and consolidated
accounts. The procedures selected depend on the auditor’s judgement,
including the assessment of the risks of material misstatement of the
annual accounts and consolidated accounts, whether due to fraud or
error. In making those risk assessments, the auditor considers internal
control relevant to the company’s preparation and fair presentation of
the annual accounts and consolidated accounts in order to design audit
procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the company’s
internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting
estimates made by the Board of Directors and the Managing Director, as
well as evaluating the overall presentation of the annual accounts and
consolidated accounts.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Opinions
In our opinion, the annual accounts and consolidated accounts have
been prepared in accordance with the Annual Accounts Act and present
fairly, in all material respects, the financial position of the parent company
and the group as of 30 June 2015 and of their financial performance
and cash flows for the year then ended in accordance with the Annual
Accounts Act. The statutory administration report is consistent with the
other parts of the annual accounts and consolidated accounts.
We therefore recommend that the annual meeting of shareholders adopt
the income statement and balance sheet for the parent company and
the group.
Report on other legal and regulatory requirements
In addition to our audit of the annual accounts and consolidated
accounts, we have also audited the proposed appropriations of the
company’s profit or loss and the administration of the Board of Directors
and the Managing Director of AB Anders Löfberg for the financial year
01/07/2014-30/06/2015.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors is responsible for the proposal for appropria-
tions of the company’s profit or loss, and the Board of Directors and the
Managing Director are responsible for administration under the Compa-
nies Act.
Auditor's responsibility
Our responsibility is to express an opinion with reasonable assurance on
the proposed appropriations of the company’s profit or loss and on the
administration based on our audit. We conducted the audit in accord-
ance with generally accepted auditing standards in Sweden.
As basis for our opinion on the Board of Directors’ proposed appropria-
tions of the company’s profit or loss, we examined the Board of Directors'
reasoned statement and a selection of supporting evidence in order to be
able to assess whether the proposal is in accordance with the Companies
Act.
As basis for our opinion concerning discharge from liability, in addition
to our audit of the annual accounts and consolidated accounts, we
examined significant decisions, actions taken and circumstances of the
company in order to determine whether any member of the Board of
Directors or the Managing Director is liable to the company. We also
examined whether any member of the Board of Directors or the
Managing Director has, in any other way, acted in contravention of the
Companies Act, the Annual Accounts Act or the Articles of Association.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinions.
Opinions
We recommend to the annual general meeting that the profit be appro-
priated in accordance with the proposal in the statutory administration
report and that the members of the Board of Directors and the Managing
Director be discharged from liability for the financial year.
Karlstad 30 October 2015
KPMG AB
Mattias Eriksson
Authorized Public Accountant
7 1T H E B U S I N E S S I N F I G U R E S 2 0 1 4 / 2 0 1 5 – S I G N AT U R E S / A U D I T O R ’ S R E P O R T
1906 The company was founded
by the brothers Josef, Anders
and John Löfberg.
1967 Acquired our own
cargo ship.
1993 Started exporting –
initially to the Baltic.
1999 Löfbergs Lila
AS in Norway
was started up.
Partnership in
Peter Larsen Kaffe A/S.
Started our Out Of Home business.
2001 Started up International
Coffee Partners together with
Luigi Lavazza S.p.A, Gustav Paulig Ltd, Neumann
Gruppe GmbH and Tchibo GmbH.
1911 Started our own
coffee roasting.
1980
2002
OUR HISTORY
1920 Packaged coffee replaced loose
coffee. The purple pack rapidly
became the most popular.
1960 "The Coffee Scraper"
was inaugurated.
Major investments in production and
marketing.
2009 Acquisition of Crema
Kaffebrenneri AS.
2010
Acquisition of Melna
roasting house in Latvia.
2008 Lars Appelqvist takes
office as CEO.
2007 Acquisition
of the tea brand Kobbs Tea.
1963 Started up the airline
ABAL Air.
2006 Celebrated our 100th
anniversary.
The company expanded
all over Sweden.
1950
2013 Acquisition of Food Brands Group
UK, including the Percol brand.
2011 Acquisition of Red Cup UK,
including the Green Cup brand.
2015 The entire Löfbergs
assortment is certified.