Flügger posts significantly higher growth and a more than threefold increase in its bottom line
Flügger is posting strong results for the first three quarters of its 2020/21 financial year. Revenue in the first nine months of the company’s financial year increased by 17% to DKK 1,612 million, while earnings increased from DKK 58 million to DKK 200 million, corresponding to a 245% increase compared to the prior-year period.
COVID-19 and the resulting increase in customer traffic continued to have a positive impact on Flügger’s sales and earnings in Q3. The growing demand has primarily been driven by private customers and small businesses in Denmark and Sweden. In spite of periods when shops were in lockdown, group revenue increased by 17% in the first nine months of the financial year.
In Denmark (including Iceland, Greenland and the Faroe Islands), revenue in the first nine months of the financial year increased by 16% compared to the prior-year period. Revenue in Sweden increased by 10%, while revenue in Norway levelled off. In Poland, revenue increased by 66%, with the acquired company Unicell, which has developed very positively, contributing 8% to the group’s revenue. Sales to ‘Other countries’ decreased by 5%.
Earnings in the first nine months of the financial year increased by 245% compared to the prior-year period. The results are positively influenced by increased customer traffic, the continued effect of ongoing streamlining measures, the positive contribution from recently acquired Unicell as well as a significant reduction in costs related to business travel etc. during the corona lockdowns.
Jimmi Mortensen, CEO, says:
“Flügger is a seasonal business, and Q3 is historically loss-making. Therefore, for the first time in Flügger’s history, we can feel proud in posting a third quarter with positive operating results.
One of the reasons for this is that the entire company has focused on cutting costs and creating a scalable and sustainable business model which is better equipped to withstand changes in the market conditions. Moreover, we are investing approx. DKK 200 million in modernising and future-proofing our production. During the pandemic, our skilled employees have shown that we are able to maintain stable and well-functioning production even in unusual and unpredictable conditions.”