Results

For continuing operations, Flügger delivers 7% revenue growth and a primary operating profit EBIT of DKK 173 million. However, this result is before an impairment of DKK 74 million caused by the war in Ukraine.  After the impairment, the primary operating profit EBIT is DKK 99 million. The results for the 2021/22 financial year are characterised by rising raw material prices and the war in Ukraine. The expectations for segments 1 and 2 for the 2022/23 financial year are revenue in the range of DKK 2,200 – 2,400 million. We expect EBIT in segment 1 and 2 to be in the range of DKK 80-130 million. For continuing operations in segment 3, the EBIT is expected to be in the range of +/- DKK 10 million. However, the expected EBIT in this segment are associated with considerable uncertainty.

Sune Schnack, CEO of Flügger says:

“2021/22 has been an unpredictable year at Flügger. The fiscal year is characterised by significant acquisitions, drastic increases in prices for raw materials, energy and transport, war in Ukraine. Moreover, it is characterised by the decision to divest our activities in Russia and Belarus. Finally, a normalisation of sales to consumers after record sales during COVID-19 also had an impact on the results. Despite the many challenges, Flügger has come through the year well, and we are solidly prepared for the future. In 2022/23, we expect earnings to be under pressure due to high inflation and a slowdown in consumer sales. Depending on the price development of raw materials, we do not expect to see an improvement in earnings until the end of the 2022/23 fiscal year.”

Key insights

• In May 2021, Flügger acquired 70% of Eskaro Group AB for DKK 44 million and invested a further DKK 164 million in capital expansion. Resulting to a total investment of DKK 208 million.
• Due to the war between Russia and Ukraine, Flügger decided in April 2022 to explore the possibilities of selling Eskaro’s companies in Russia and Belarus. As a consequence, the companies in question were classified as discontinued operations.
• Net sales for the continuing operations totalled DKK 2,322 million compared to DKK 2,162 million the year before, corresponding to growth of 7%.
• Net sales including discontinued operations totalled DKK 2,520 million compared to DKK 2,162 million the year before, corresponding to a growth of 17%.
• Primary operating profit EBIT from continuing operations was DKK 173 million compared to DKK 228 million the year before. This result is before an impairment of DKK 74 million caused by the war in Ukraine. After the impairment, primary operating profit EBIT was DKK 99 million.
• In the 2022/23 fiscal year, earnings are expected to be under pressure. This is due to the effects of high inflation, which cannot be fully passed on in sales prices. Additionally, we expect a slowdown in consumer sales, which normally contribute with higher margins.
• The expectations for the 2022/23 fiscal year for segments 1 and 2 are revenue in the range of DKK 2,200 – 2,400 million and EBIT in the range of DKK 80-130 million. For the continuing part of segment 3, EBIT is expected to be in the range of +/- DKK 10 million.