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Flügger reports profit rise amid Russian controversy

Danish paint manufacturer Flügger has reported a 38% increase in EBIT for the 2023/24 financial year, despite flat performance in its core Nordic markets. EBIT rose to DKK 94 million, while revenue saw a modest 3% growth to DKK 2.27 billion. Growth was mainly driven by stronger gross margins, higher prices, and increased sales to private consumers.

© Flügger

While operations remained stagnant in Denmark, Sweden and Norway showed slight gains. Poland, however, emerged as a key market, growing 12% to DKK 537 million, making it Flügger's second-largest market.

The financial results were overshadowed by a report from DR alleging Flügger's products are still being widely sold in Russia, potentially breaching sanctions. Flügger has confirmed it is under police investigation and is cooperating fully. The company had previously cut ties with distributors in Kazakhstan, Estonia, Azerbaijan, and Kyrgyzstan after an internal probe.

CEO Sune Schnack condemned the unauthorised resale of products by a former partner, stating: 'It is completely unacceptable.' He added that Flügger has strengthened its internal controls to prevent future violations.

The company described its overall performance as "satisfactory" in a market defined by "uncertainty and ambiguity," particularly for professional painters.

Source: www.wood-supply.dk

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