Flügger wants to consolidate its store network

The sales of Danish paint manufacturer and retailer Flügger came to EUR 136.0 mio in the first six months of its fiscal year 2018/2019. This signals a decline of 1 per cent compared with the same period in the previous year. In local currencies, revenue increased by 2 per cent. EBIT decreased by 15 per cent to EUR 12.2 mio in the same period. Flügger therefore continues to focus strongly on reducing costs, citing the consolidation of its store network in particular as one measure.
Flügger's revenue was heavily influenced by negative exchange rates, in which especially the trend in the Swedish krona has been unfavourable. In its domestic market in Denmark and in Poland, the group is experiencing growth, as revenue here rose by respectively 4 per cent and 12 per cent (14 per cent in local currency). Revenue in Sweden fell by 9 per cent (-2 per cent in local currency), sales in Norway decreased by 1 per cent (0 per cent in local currency), and exports to other countries fell by 4 per cent (-5 per cent in local currency). Costs for raw materials, including binders, titanium dioxide and fly ash, as well as transport costs, were characterised by significant price increases, which affected earnings.