Flügger Group (FLUG) Q2 24/25 earnings summary

Executive summary

• Revenue grew 4% year-over-year in H1 2024/25 to DKK 1,243 million, with EBIT up 33% to DKK 140 million, driven by price increases, cost reductions, and stable raw material costs.

• International segment led growth with a 19% increase, mainly from Poland, while Nordic remained flat and Partnerships declined due to Ukraine.

• Gross margin improved by 2.6 percentage points to 54.9%, supported by raw material cost stabilization and price increases.

• Net income after minorities rose 51% to DKK 101 million; strong cash flow after investments at DKK 271 million.

• New strategy, Flügger Organic, implemented with revised segment reporting.

Financial highlights

• H1 2024/25 revenue reached DKK 1,243m, up from DKK 1,200m year-over-year.

• EBIT increased to DKK 140m from DKK 106m, a 33% improvement.

• Gross profit increased 9% year-over-year to DKK 682 million; gross margin reached 54.9%.

• EBIT margin improved to 11.3% from 8.8% in prior year.

• Net interest-bearing debt (excl. leasing) reduced to DKK 171 million from DKK 379 million at prior year-end.

Outlook and guidance

• Revenue guidance for 2024/25 is DKK 2,200m–2,400m, representing 0–9% growth versus last year.

• EBIT guidance updated to DKK 85m–95m, up 25–40% year-over-year, reflecting margin normalization and new strategy benefits.

• Priorities include winning small- and medium-sized painters in Nordics, expanding internationally, and reducing debt.