Danish paint and wallpaper maker Flugger A/S is booming in China. Here and elsewhere outside Scandinavia, the company’s revenue surged 33 percent in second quarter this year. Revenue also in creased in Norway with 18 percent and in Sweden with 7 percent.
However, because sales on the Danish market grew only 2%, Flugger saw its operating profit decrease 7% to 66.1 million DKK. The result was also affected by a drop in the gross margin to 56.6% from 58.7% a year earlier caused by rising raw materials prices.
At the same time, sales on the Danish market grew only 2% on account of a continuing weak demand. Hence, operating profit decreased 7% to DKK66.1m. The result was also affected by a drop in the gross margin to 56.6% from 58.7% a year earlier caused by rising raw materials prices.
Flugger downgraded its full-year operating profit guidance to DKK85m from earlier DKK100m in view to high raw materials prices, low economic growth in Denmark and concerns for the development of the global economy.
