Flügger Group (FLUG) Q4 23/24 earnings summary

Executive summary

• Achieved strong Q4 2023/24 finish with 10% revenue growth and EBIT improvement of 37mDKK year-over-year.

• Organic growth driven by Poland, with support from Denmark, Norway, and Ukraine; positive currency effect from Poland partly offset by negative effects in Ukraine, Norway, and Sweden.

• Cost normalization and price increases contributed to improved gross margin and EBIT.

Financial highlights

• Q4 2023/24 revenue reached 567mDKK, up 10% from 517mDKK in Q4 2022/23.

• Gross margin improved by 3.8 percentage points to 51.3%.

• EBIT for Q4 2023/24 was 20mDKK (3.5% margin), up from -17mDKK (-3.3%) in Q4 2022/23.

• Full-year revenue for continuing operations was 2,208mDKK; EBIT was 68mDKK.

• Organic revenue growth for 2023/24 was 6%, partly offset by a 2% negative currency effect.

Outlook and guidance

• 2024/25 revenue guidance: 2,200mDKK to 2,400mDKK; EBIT guidance: 75mDKK to 95mDKK.

• Priorities include winning small- and medium-sized painters in Nordics, expanding international growth, and further debt reduction.

• Cautiously optimistic outlook with expectations of continued cost normalization.