Interim financial report, Q1 2020/21: Largest quarterly revenue in the Group’s history and earnings record
Flügger delivered a strong result in the first quarter of the 2020/21 financial year. Revenue rose by 22% to DKK 629 million, while earnings increased by DKK 58 million – from DKK 66 million in the same period the previous year to DKK 124 million.
Spring and summer saw a dramatic increase in demand and greater activity in our stores across the Nordic markets – especially in the Danish market, where revenue rose by 22% in the first quarter.
The excellent result is being attributed to more activity in the DIY segment, in part because many consumers have invested in house and garden projects during the COVID-19 pandemic. The result has also been positively impacted by streamlining improvements and acquisition of Polish paint manufacturer Unicell in November 2019. Sales to the professional segment have been at expected levels during the period.
In Denmark (including Iceland, Greenland and the Faroe Islands), revenue increased by 22% in local currencies compared to the prior-year period. Revenue in Sweden rose by 13%, while revenue in Norway increased by 8% in local currencies. However, revenue in Norway was impacted by a significant drop in the currency, such that revenue on the Norwegian market decreased by 3% in Danish kroner. Revenue rose by 8% in Poland, while sales to other countries, including Exports and China, dropped by 10%.
CEO Jimmi Mortensen comments:
“The first quarter of our 2020/21 financial period has been extraordinary in many ways. Initial uncertainty and concern about the impact of COVID-19 on our business was replaced by high activity in our stores. Reduced travel activity and changeable summer weather prompted consumers across the Nordic markets to spend the summer advancing house and garden projects. We are therefore pleased to have achieved the largest quarterly revenue in the Group’s history and a corresponding earnings record.
I would like to thank our employees for the hard work they have put in to meet the heightened demand, and our customers for supporting our business by choosing Flügger products for their projects.
The solid start to the financial year leads us to believe that 2020/21 will be the year when Flügger passes an economic milestone and achieves more than DKK 2 billion in revenue, and historically high EBIT.”