For the 2023/24 fiscal year, earnings continued to be affected by high prices for raw materials, energy and transport, especially at the beginning of the year. However, a gradual normalisation of costs, combined with the implementation of price adjustments, has strengthened margins throughout the year, although the construction industry in the Nordic region has remained under pressure and the implemented price adjustments have only partially compensated for the cost development in recent years.

• Revenue was DKK 2,208 million compared to DKK 2,130 million the year before, corresponding to an increase of 4% and slightly above the updated expectations of DKK 2,100 – 2,200 million announced on 10 November 2023.
• The operating profit (EBIT) of DKK 68 million was in line with the original expectations and the preliminary result announced on 13 May 2024.
• A significant event during the year was the divestment of Eskaro Group AB, which included the group’s Russian activities. In connection with the transaction, Flügger increased its ownership share in Eskaro Ukraine from 70% to 80%, while all other companies and activities in Eskaro were divested.
• The fiscal year also marked the end of Flügger’s previous strategic period and the beginning of a new one. Flügger’s new strategy, Flügger Organic, is briefly mentioned in the financial statements and will be elaborated on at Flügger’s Annual General Meeting on 21 August 2024.
• For the upcoming fiscal year 2024/25, sales of DKK 2,200-2,400 million are expected, based on the expectation that activity in the Nordic markets will be unchanged to slightly increasing, while activity in the Eastern European markets and exports in general will continue to grow.
• EBIT is expected to be in the range of DKK 75-95 million, an improvement compared with 2023/24. This is mainly due to normalised margins and initiatives from the new strategy that will take effect throughout the year.

CEO of Flügger group A/S, Sune Schnack, comments:

“This year’s results show that we are on the right track, despite the fact that painters, especially in the Nordic region, have experienced a significant decline in activity in recent years, and we have been through a period of significant cost increases. I am therefore pleased that Flügger has been able to strengthen its position in all our markets and is thus well positioned when market activity picks up again. We have also seen a general increase in Flügger’s international markets, both in exports and in our own markets.”

New strategy for Flügger: ‘Flügger Organic – Delivering sustainable value’

Sune Schnack continues:

“It’s in our DNA to be a strong partner for the professional painter and co-creator of a more sustainable paint industry. During our recent strategy period, we have invested in new factories and gained valuable experience from our markets outside the Nordic region and tested different business models. This has prepared us to grow organically by scaling our proven models internationally, expanding our market potential towards the professional segment and simplifying other parts of the business. All with a strong focus on Flügger’s core customer, the professional painter. This is the essence of Flügger Organic.”

In future, the company will prepare and publish quarterly announcements instead of quarterly reports for Q1 and Q3.
The company’s fiscal calendar can be found here.

Please note that the official annual report is prepared according to the ESEF regulation in Danish. An unofficial summary of the annual report in English is attached in a PDF version.