ANNUAL REPORT: AVK DELIVERS SOLID ORGANIC GROWTH AND IMPROVED EARNINGS

Revenue increased by 4.1% from DKK 9.0 billion to DKK 9.4 billion and formed the basis for a net profit of DKK 620.6 million, corresponding to an increase of no less than 23.8% compared to the
previous year. At the same time, the operating margin increased from 9.7% to 10.6%. The Group expects continued growth and improved results in 2025/26 with a focus on, among other things, automation, green transition, and continued market development.

"Despite continued slowdown in the economy in several key markets, AVK manages to deliver a satisfactory result. This reflects a solid business model with a broad geographical presence
and strong positions across market segments. This strength is reinforced by AVK's continuous development and expansion of the product range globally," - Lars Kudsk, CFO of AVK.

Positive development in all fields

Among the factors that have influenced AVK's performance are a positive development in smart irrigation solutions in Italy, water supply and desalination projects in the Middle East, and general growth in the markets in India and Southeast Asia. In addition, the Group's continued focus on operational and process optimisation, and slightly falling raw material prices have had a positive effect. Both of AVK's business units made positive contributions to the result. AVK Water Solutions achieved growth of 6.8%, partly driven by an increased share from the project markets, but also through growth in several markets. The important Chinese market remained subdued, as expected. AVK Advanced Manufacturing realised a growth of 10.6%, primarily due to strong sales of rubber components, components for the wind turbine industry, and pallets based on recycled plastic.

Looking ahead on the coming year

2025/26 will be characterised by acquisitions and joint ventures. As you will be able to read more about in this magazine, there has already been a significant acquisition and an important joint venture within the past few months, clearly setting the stage for the AVK Group’s coming year.

"AVK has a clear strategic focus on developing the Group through both organic growth and targeted acquisitions and joint ventures. This allows us to strengthen our market positions, exploit industrial synergies, and create a more robust foundation for future growth," says Niels Aage Kjær.