A Year of Gradual Normalization, Divestments, and New Strategy
For the financial year 2023/24, earnings continued to be influenced by high prices for raw materials, energy, and transportation, especially at the beginning of the year. However, a gradual normalization of costs, combined with implemented price increases, has strengthened the margin throughout the year, even though the construction industry in the Nordic region has remained under pressure, and the price increases implemented have only partially compensated for the cost developments in recent years.
Revenue reached 2,208 million DKK compared to 2,130 million DKK the previous year, corresponding to 4% growth and slightly exceeding the updated expectations of 2,100 - 2,200 million DKK announced on November 10, 2023.
The operating result (EBIT) of 68 million DKK was in line with the originally announced expectations and the preliminary result reported on May 13, 2024.
A significant event during the year was the sale of Eskaro Group AB, which included the group's Russian activities. In connection with the transaction, Flügger increased its ownership stake in Eskaro Ukraine from 70% to 80%, while all other companies and activities in Eskaro were divested.
The financial 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 report and will be further elaborated upon during Flügger's general meeting on August 21, 2024.
For the upcoming financial year 2024/25, revenue is expected to be in the range of 2,200 – 2,400 million DKK, based on the expectation that activity in the Nordic markets will remain unchanged to slightly increasing, while there will continue to be growing activity in Eastern European markets and exports in general.
EBIT is expected to be in the range of 75-95 million DKK, representing an improvement compared to the financial year 2023/24, primarily due to normalized margins and initiatives from the new strategy taking effect throughout the year.
Sune Schnack, CEO of Flügger group A/S, states:
“This year’s results show that we are on the right path, despite the fact that painters in the Nordic region, in particular, have experienced a significant decline in activity in recent years, and we have gone through a period of substantial cost increases. I am therefore pleased that Flügger has managed to strengthen its position across our markets and is thus well-positioned when market activity picks up again. In Flügger's international markets, we have also seen general progress in both exports and our own stores.”
New Strategy for Flügger: ‘Flügger Organic – Delivering Sustainable Value’
Sune Schnack continues:
“It is in our DNA to be a strong partner for the professional painter and a co-creator of a greener paint industry. Throughout our recent strategic period, we have invested in new factories and gained valuable experiences from our markets outside the Nordic region, as well as tested different business models. This has prepared us to grow organically by scaling our well-tested 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.”
Going forward, the company will prepare and publish quarterly statements instead of quarterly reports for the 1st and 3rd quarters. The company's financial calendar is updated on flugger.com/investor/finanskalender.
Further Inquiries
Casper Paggio Hansson Felt, Communications Manager at Flügger group A/S
Tel. +45 27 53 28 99 / cafel@flugger.com
Read the English summary of the Annual Report.