Flügger continues positive trend and raises both short and long-term outlook

Having posted a record profit in Q1 of the 2020/21 non-calendar financial year, and stronger earnings in the ensuing months, Flügger is now raising its earnings outlook for the 2020/21 financial year for the second time.

Flügger published its Q1 2020/21 financial results on 22 September – showing record revenue and earnings. Customer traffic in the Group’s stores has been higher than usual in recent months, and efficiency improvements implemented over the past few years have contributed to improving earnings. Increased activity in the DIY segment has been attributed to the impact of COVID-19. Flügger acquired Polish paint manufacturer Unicell in 2019, and this has also helped increase revenue.

The positive trend has led Flügger to raise its EBIT outlook from DKK 120 million originally, to DKK 130-150 million on 6 August, and now again to DKK 160-180 million.

Outlook for 2020/21
6 August 2020 (raised)
7 October 2020 (raised)
Revenue Approx. DKK 2 billion Over DKK 2 billion Over DKK 2 billion
EBIT Approx. DKK 120 million DKK 130-150 million DKK 160-180 million
EBIT margin Approx. 6% Approx. 7% Approx. 8-9%

CEO Jimmi Mortensen comments:
We’re pleased to see that the efficiency improvements implemented in sales and production have had a positive impact on our earnings.

We’re not only raising our outlook for the current financial year. We now expect to see revenue of more than DKK 2.5 billion and an EBIT margin of 8% by 2023/24. In addition to organic growth, we expect the Group to make further acquisitions that will contribute to positive, profitable growth.