Flügger raises expectations for top and bottom line
After significantly increased sales in the first half of the financial year and continued strengthened revenue in the following months, Flügger raises its expectations for the top and bottom line in 2020/21.
Flügger has experienced an increase in customer traffic - especially in the Danish and Swedish markets - with an increase in sales to both private and professionals customers. At the same time, Flügger’s earnings have been significantly strengthened. The positive results are due to several factors, including an increase in the number of renovation projects initiated during the COVID-19 pandemic, a positive impact from the acquisition of the paint manufacturer Unicell in November 2019, and effective cost management.
As a result, Flügger is raising its expectations for both revenue and earnings for the 2020/21 financial year. Expectations for earnings are raised to DKK 215-235 million, corresponding to an EBIT-margin in the range of 10-11%, which is close to a doubling of the originally announced expectations in June 2020. At the same time, the expectations for revenue are raised to the level of DKK 2,100 - 2,150 million.
2020/21 |
Original expectations |
6 Aug. 2020 (raised) |
7 Oct. 2020 (raised) |
12 Nov. 2020 (raised) |
10 Feb. 2021 (raised) |
Turnover |
Approx. DKK 2 billion | Over DKK 2 billion | Over DKK 2 billion | DKK 2.050 – 2.080 million | DKK 2.100 – 2.150 million |
EBIT |
Approx. DKK 120 million | DKK 130-150 million | DKK 160-180 million | DKK 200-215 million | DKK 215-235 million |
EBIT-margin |
Approx. 6% | Approx. 7% | Approx. 8-9% | Approx. 10% | Approx. 10-11% |
Jimmi Mortensen, CEO, says:
"The last many months have been quite unusual. For Flügger, the effect of COVID-19 on our business has proved difficult for us to predict. After a historically good first half of the year and several upgrades, we expected demand to stabilize at a - for Flügger and the season - more normal level. Not least since the months of November-December are our low season and characterized by reduced customer traffic.
However, we can state that neither the low season nor the closure of stores has changed the positive trend. Despite closure, we have been able to service our professional customers. Our private customers have increasingly used Click & Collect via our web portals. ”