Flügger concentrates on franchising

In both the Danish, Swedish and Norwegian markets, the turnover of Flügger has fallen in the first half of the year compared with the period in the financial year 2018/19. On the other hand, progress has been made on the Polish market, and sales to other countries, including China and Russia, have also evolved positively, according to the half-year report by the Danish Flügger group. Overall, the first half-yearly turnover is DKK 988 mio (EUR 132.6 mio), a decline of 1 per cent.
In the second quarter, the operating profit (EBIT) increased by 28 per cent to DKK 38 mio (EUR 5.1 mio). According to Flügger, the increase is primarily driven by the effect of the group's efficiency programme. The programme has, among other things, resulted in Flügger having gone from 288 to 266 own shops."Since autumn 2018 we have accelerated the consolidation of our own stores and have closed around 6 per cent in the current financial year. The fewer shops are a combination of decommissioning in sparsely populated areas and conversion to the franchise, which is a focus area for the coming years," CEO Jimmi Mortensen says.