Interim report Q1-Q3 2022/23
Earnings on Western European markets were negatively affected during the period by declining volumes combined with exceptionally high prices for raw materials, energy and transport. However, commodity prices are expected to have peaked in November 2022.
Eastern European markets continue to be affected by the war in Ukraine, but due to currency developments and higher sales prices, earnings were up in Q1-3. Uncertainty about the future of these markets remains.
Flügger's turnover in the first 9 months of the financial year was 2% higher than the same period the year before, despite a decrease in volume. This is a result of rising sales prices as well as growth in Eastern Europe.
The margin is expected to continue to improve towards the end of the financial year. Here, commodity prices are expected to have stabilized, while increases in sales prices are beginning to materialize.
Operating income (EBIT) amounted to DKK 49 million for the first 9 months of the year, which is DKK 103 million lower than the previous year. Expectations for the year remain unchanged. Interim earnings are expected in the range of DKK 50-80 million, while revenue is expected in the range of DKK 2,500-2,700 million.
CEO Sune Schnack says:
"We have a good momentum among the professionals, whereas sales to consumers are declining. Competition has become more intense, but we see that our persistent customer focus has an effect in the market.
At the same time, our own analyses indicate that earnings hit a low in November 2022, which is why we expect a slow recovery in the coming financial year.
I would also like to take this opportunity to thank our employees, customers and shareholders for their cooperation and efforts over the past quarter."
Please refer to the attached interim report.
Sincerely,
Flügger group A/S
Download Quarterly Report: Delårsrapport 2022-23 Q3.pdf
For further information, please contact:
Casper Paggio Hansson Felt
Tel. +45 27 53 28 99
Email: cafel@flugger.com