Interim report Q1 2022/23

Revenue in Q1 2022/23 decreased by 1% compared to the same period last year. The group saw reduced sales to consumers across markets and segments. A broad trend that seems to have recovered after the end of the quarter. Sales to the professional painters were on par with the previous year.

EBIT was DKK 70 million in Q1. The result was negatively affected by rising costs, which it has not been possible to fully transfer to sales prices.

A divestment of the companies in Russia and Belarus is still to be completed, but is not expected to be completed within the next 12 months. This is because a sale of the companies is currently prevented due to EU sanctions and a new Russian decree in this area. Therefore, Russia and Belarus are now included in the accounts under continuing activities.

In this financial year, EBIT is expected to be under pressure from rising costs for raw materials, energy and transport, etc. as well as declining activity. This increase in costs has been difficult to carry over in sales prices and is expected to negatively impact margin for a few more quarters.

CEO Sune Schnack says:

"Throughout the first quarter, we have been affected by declining demand from consumers across segments. We are also affected by rising costs for raw materials, transport and energy. The unusually large cost increases have not been possible to transfer to sales prices and are expected to negatively affect the margin for a few more quarters. As part of our long-term strategy and digitalization initiatives, the quarter saw the launch of a brand new platform and website for In the coming quarters, we will continuously develop further on the platform as well as roll it out in other markets."