Flügger benefits in part from the Covid-19 crisis

In fiscal 2019/2020 (May to April), the Danish paint manufacturer and dealer Flügger increased its sales by 4 per cent to DKK 1.895 bn (EUR 254 mio). The sales growth was generated primarily by Poland, where sales rose by 38 per cent. This was also attributable to the acquisition of Polish manufacturer Unicell in November 2019. In Denmark, too, sales were up by 5 per cent, whereas Sweden, Norway and the other countries into which Flügger has expanded saw a decline of 2 per cent, 9 per cent and 10 per cent respectively. The company cited the Covid-19 crisis along with the sharp devaluation of the Norwegian krone and a sharply declining Norwegian exchange rate as reasons for the downturn.
Jimmi Mortensen, CEO, had the following to say regarding the business trend: "The Covid-19 crisis has both had both positive and negative effects on Flügger's markets in Q4, i.e. the months of February-April 2020. In Q4, we experienced rising demand, particularly in Denmark, where revenue increased by 28 per cent, and partly in Sweden, where revenue increased by 6 per cent. Together, Denmark and Sweden account for more than 60 per cent of our revenue. Conversely, the early shutdown of our dealer network in China and the substantially restricted consumer spending in Poland adversely impacted our revenue. In Norway, the sharp devaluation of the Norwegian krone has also adversely affected our revenue. Overall, we posted organic growth of 10 per cent in Q4, which we are very pleased with, given the uncertain market conditions."