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Gross profit (bruttofortjeneste)

Gross profit (bruttofortjeneste) is revenue minus the direct costs of delivering goods or services (e.g. cost of goods sold). For most small Danish companies, gross profit is the top line of the published financial statements, because revenue may be omitted.

Gross profit shows what remains of revenue once direct costs — cost of goods and other external expenses — are paid. It must cover salaries, rent, depreciation, and everything else before any profit remains.

Why don't small companies show revenue?

Companies in reporting class B may combine revenue and direct costs into a single line: gross profit (or gross loss). This is a lawful simplification used by the vast majority of Danish companies — which is why you typically see gross profit rather than revenue when looking up a smaller company's financials.

Gross profit is not net profit
A large gross profit can still end in a loss once staff costs and depreciation are deducted. Look at the net result and equity for the full picture.
See gross profit for every Danish company

Related terms

Revenue (omsætning)

Revenue (nettoomsætning) is a company's total income from sales of goods and services in the fiscal year, excluding VAT and net of discounts.

Net result (årets resultat)

The net result (årets resultat) is the bottom line of the financial statements: the company's total profit or loss for the fiscal year after all costs, financial items, and tax have been deducted.

Reporting class (regnskabsklasse)

The reporting class (A, B, C, or D) is the Danish Financial Statements Act's grouping of companies by size and type. The class determines the content requirements for the annual report — the higher the class, the more disclosure.

Profit margin (overskudsgrad)

The profit margin (overskudsgrad) shows how large a share of revenue ends up as operating profit. It is calculated as operating profit divided by net revenue, multiplied by 100.