Interim report Q3 2017/18: Solid growth in earnings – slight decline in revenue

Flügger is posting net revenue of DKK 1,388 million compared to DKK 1,401 million in the first nine months of the staggered financial year. In the Danish market, revenue declined by 2%. In Sweden and Norway, revenue declined by 4%. Sales outside Scandinavia have developed positively with growth of 12%. Sales to China, which grew significantly last year, have fallen slightly recently, while sales to Poland are developing very positively.

The group’s earnings grew by more than 50% in the first nine months of the financial year compared with the prior-year period. The net profit after tax was DKK 43 million against DKK 30 million last year.

Jimmi Mortensen, CEO of Flügger A/S:

– We’re on track, and continuing with the consolidation of our own shops and product range as well as optimising the terms of trade. Through these strategic measures, we expect to be able to boost earnings further in the coming years.

In the short term, we’re under pressure from increasing raw materials prices, not least in respect of titanium dioxide (TiO2), which is our most important pigment. In addition, we’re seeing lower demand on the Scandinavian markets despite a high level of activity within the housing sector. This is due, among other things, to new building materials, which are pre-painted, or surfaces that require less paint treatment.