Interim financial statements
Solid increase in earnings – slight decline in revenueFlügger A/S experienced a solid +19% increase in earnings in the first half of FY 2017/2018 relative to the same period last year, but saw a slight decline in revenue of -2%.
Flügger posted net revenue of DKK 1,021 million against DKK 1,044 million in the first half of the current financial year compared with the same period last year, corresponding to -2% (Q2: -1%). The group’s earnings grew in the first half by +19%, an increase from DKK 90 million in the prior-year period to DKK 108 million in H1 2017/2018.
In the Danish market, revenue declined by -5% relative to the same period last year. In Sweden, revenue declined by -6%, while Norway saw a revenue decrease of -2%. Outside the Nordic region, we are seeing strong growth in revenue – this time of +16%, primarily due to increasing sales in Poland.
The group has continued to optimise processes within sales, production etc.; this has affected interest-bearing net cash and cash equivalents, which rose by +40% relative to the same time last year.
Jimmi Mortensen, CEO of Flügger A/S:
“During the period, we have continued consolidating our network of shops and intensify our efforts to streamline the product range and strengthen the organisation. These initiatives boost our bottom line which has increased +19% relative to last year.
We are operating in a Scandinavian market which is under pressure, and as for other players in the retail sector, the poor summer weather had a negative impact on sales, in particular the sale of outdoor products such as wood stains. On the other hand, we are seeing growth in Poland as well as within exports to France and Russia, where there are prospects for further growth. As on the Scandinavian market, we are working in Poland to increase easy access to and within our shops – as regards their layout, location and opening hours – in order to further strengthen the concept. And we will continue along these lines.
We are maintaining our outlook for the 2017/18 financial year, i.e. revenue on a par with the previous year and an operating profit corresponding to an EBIT margin of 2-3%.