Flügger continues the growth journey and doubles earnings

The increased activity in the company’s stores continued in the second quarter of the financial year, revenue increased by 16% in the second quarter, and by 19% in the first half year of the financial year. About half of the increased sales come from Unicell, which was acquired in November 2019, while the other half primarily comes from Denmark and Sweden, where private consumers have increasingly initiated renovation projects during the COVID-19 pandemic. Sales to the professional segment have been at the expected level during the period.

In Denmark (incl. Iceland, Greenland and the Faroe Island) revenue in the first half year of the financial year increased by 15% compared to the same period the year before. Revenue in Sweden increased by 11%, while revenue in Norway declined by 2%. In Poland revenue increased by 94%, while sales to other countries, e.g. Export and China declined by 7%. Revenue in Norway and Poland were negatively affected by the development in currency, while revenue in Poland was positively affected by the acquisition of Unicell, Poland.

Earnings in the second quarter of the financial year doubled from DKK 38 million in the prior-year period to DKK 76 million. In the first half year earnings increased from DKK 105 million to DKK 200 million. In addition to the increased customer activity, the results are positively affected by implemented efficiencies, and utilization of synergies between acquired Unicell and the Group's other activities.

Jimmi Mortensen, CEO, states:

”We have delivered historically strong results, which in addition to COVID-19 are the sum of several factors: We have reduced our costs and exploited synergies, among these synergies between our Polish subsidiary Unicell and our other activities. This means that today we have a sustainable business model, a solid foundation, and the opportunity to invest in further growth initiatives.

In November, we entered into an agreement to purchase the majority stake in the East-European paint manufacturer Eskaro, which is a historic milestone for us. With the acquisition, we are moving into new markets in Eastern Europe, where we expect to see future growth, and in the future approximately one third of our revenue will be generated in Eastern Europe. With the acquisition of Eskaro we are taking a big leap towards our financial ambitions for 2023/24 regarding a revenue of DKK +2,5 billion and EBIT of +8%.”