Delayed effect on margins from changes in raw material prices
Usually when raw materials increase there is a period with sales price increase behind the curve, followed by a period ahead
Raw material price index*
Apr-22 assumptions
LTM GM (Segment 1)
Illustrative
Delayed effect
Delayed effect
Delayed effect
2017
2018
2019
2020
2021
2022
2023
*Adjusted for timing of impact
3
Investor presentation Q1 2022/23
Q1 22/23 highlights
Revenue (mDKK)
-1%
736
730
Q1 21/22
Q1 22/23
Gross Margin (%)
-5.3pp
55.1
49.8
Q1 21/22
Q1 22/23
EBIT* (mDKK)
-47%
124
66
Q1 21/22
Q1 22/23
EBIT-margin* (%)
-7.9pp
16.9
9.0
Q1 21/22
Q1 22/23
Own & franchise stores (#)
-3%
383
370
240
243
Own stores
143
127
Franchise
Q1 21/22
Q1 22/23
ROCE* (%)
-11.9pp
18.9
7.0
Q1 21/22
Q1 22/23
*EBIT before impairment effect (132 mDKK in Q4 21/22 and 4 mDKK reversed in Q1 22/23)
4
Investor presentation Q1 2022/23
Q1 22/23 highlights - Satisfactory sales performance. Earnings impacted by high prices on raw materials, energy & logistics
Flügger Group Results
Sales overall at a satisfactory level
In the Q1 financial result, activities in Russia and Belarus, are reclassified as continuing operations
The demand from consumers declined broadly across markets and segments - a trend impacting the industry in general
Professional sales were in line with last year and at a satisfactory level
Segment 3 remained significantly affected by the war in Ukraine, but performed above expectations, and positive currency impact in Russia
EBIT impacted by lower consumer sales & higher cost levels
High prices on raw materials, energy and logistic impacted earnings negatively
Pricing initiatives partly offset the cost increases and the diluting effect on gross margin
Decline in high-margin consumer sales impacted earnings negatively
Higher warehouse cost driven by inventory build-up, to secure supply during a potential raw material shortage following the energy crisis
mDKK
Q1 22/23
Q1 21/23
Change
Net sales
730
736
-1%
Organic growth
-4%
-4%
0pp
M&A
0%
20%
20pp
Currency
3%
1%
2pp
EBIT*
66
106
-38%
EBIT-margin*
9.0%
21.0%
-12pp
150
15
EBIT*
EBIT %, LTM
100
10
50
5
0
0
-50
-5
-100
-10
Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
19/20
20/21
21/22
22/23
*EBIT before impairment effect (132 mDKK in Q4 21/22 and 4 mDKK reversed in Q1 22/23)
5
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Flügger group A/S published this content on 16 September 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 September 2022 14:59:02 UTC.
Flugger group A/S, formerly Flugger A/S, is a Denmark-based company engaged in the design, manufacturing and marketing of paints and other products for surface treatment. The Company specializes in decorative paints, wood stains, spackling pastes, cleaning products, wallpapers, and tools, among others. Apart from Flugger, the Company operates under three brand names: DAY-system, Fiona and PP Mester Maling. It controls factories in Denmark, Sweden, China and Poland, as well as a retail chain, named Flugger Decor, which is located in Scandinavia, Eastern Europe and China. Furthermore, the Company owns a number of subsidiaries, such as Flugger AB, PP Mester Maling A/S, DAY-system A/S, DAY-System AB, Flugger ehf, Flugger Limited, and Flugger Sp Zoo.
FLÜGGER GROUP A/S 
