Interim financial report, Q3 2018/19: Growth in local currencies, outlook maintained
Between Q1 and Q3 of the current financial year, Flügger Group A/S grew revenue by 2% in local currencies.
Flügger is posting revenue of DKK 1,377 million for the first nine months of the non-calendar financial year compared to DKK 1,388 million for the prior-year period. The Danish, Norwegian and Polish markets showed positive developments. In the Danish market, revenue increased by 4% (1% in DKK), in Norway revenue rose by 1% in local currencies (0% in DKK), and in Poland, Flügger saw growth of 15% in local currencies (+14% in DKK). In Sweden, revenue declined by 1% in local currencies (-7% in DKK), while sales to export markets (including China) decreased by 13% in local currencies (-3% in DKK).
The group’s earnings declined to DKK 30 million – DKK 27 million less than for the prior-year period. The development was negatively impacted by exchange rate developments and costs associated with the efficiency programme.
Jimmi Mortensen, CEO of Flügger A/S:
“We’re adhering to our plan, and are entirely focused on the continued execution of our strategic initiatives. Over the next couple of years, we will continue to consolidate our own store network and production facilities, while also optimising our products, product range and administrative functions.
Flügger group is an international company with strong Danish roots, and we are now making a number of significant investments in our primary production facilities. The modernisation of our plants is based on a desire to create a more sustainable production through improving capacity utilisation and competitiveness by focusing on 100% water-based products.
Our ambition is to create a stronger platform, and to cement Flügger’s position as one of the three biggest players in all our main markets. Therefore, we are actively assessing potential acquisitions within the building paint sector and related products and services in order to ensure that we realise our long-term objectives.”