Flügger raises outlook for top and bottom line for the third time
Having posted a record profit in Q1 of its non-calendar financial year and after continued growth in recent months, Flügger is now raising its revenue and earnings outlook for the third time in the 2020/21 financial year.
Since publishing a historically strong Q1 on 22 September 2020, when Flügger delivered its best results to date for both top and bottom lines, the group is now revising its outlook for the current financial year for the third time.
The past six months have seen significantly stronger customer traffic and sales in the group’s stores, driven in particular by the growth in sales to private consumers who have increasingly been starting renovation projects during the COVID-19 pandemic. In addition, the effects of previously implemented streamlining measures have been having a positive impact on earnings. Flügger expected a slowdown in sales to private as well as professional customers for the remainder of the financial year, but this has not materialised.
As a result of the continued positive development, Flügger is therefore raising its outlook for its operating profit (EBIT) from DKK 160-180 million to DKK 200-215 million, while raising the outlook for revenue from DKK 2+ billion to DKK 2,050-2,080 million.
Outlook for 2020/21 |
Original |
6 August 2020 (raised) |
7 October 2020 (raised) |
12 November 2020 (raised) |
| Revenue | Approx. DKK 2 billion | Over DKK 2 billion | Over DKK 2 billion | DKK 2,050-2,080 million |
| EBIT | Approx. DKK 120 million | DKK 130-150 million | DKK 160-180 million | DKK 200-215 million |
| EBIT margin | Approx. 6% | Approx. 7% | Approx. 8-9% | Approx. 10% |
CEO Jimmi Mortensen:
“Since March, COVID-19 has created a great deal of uncertainty, and challenged us regarding the extent to which the pandemic would affect our business in the short and longer term. COVID-19 also resulted in consumers increasingly wanting to renovate their homes in the first six months of the year, and we have seen a marked increase in footfall in our stores. This resulted in historically high revenue and earnings, and upwardly revised outlooks in August and October 2020.
After a strong peak season, we expected a slight slowdown in sales to both private and professional customers. At the same time, we assessed that the risk of the pandemic flaring up again could lead to restrictions and the possible lockdown of the retail sector. However, we can now see that our sales remain high, and at this stage we no longer expect a significant slowdown in the current financial year. Therefore, for the third time, we are raising our outlook for the 2020/21 financial year in terms of both earnings and revenue.”
Long-term outlook maintained
Flügger still expects to post revenue in excess of DKK 2.5 billion and an EBIT margin of 8% by 2023/24.