Flügger was founded in 1783 in Hamburg, and has existed in Denmark since 1890.
Sune Schnack, son of Ulf Schnack, took over as CEO on 1 April 2021, when Jimmi Mortensen chose to resign.
After significantly increased sales in the first half of the financial year and continued strengthened revenue in the following months, Flügger raises its expectations for the top and bottom line for the financial year 2020/21 for the fourth time in February. Expectations for earnings are raised to DKK 215-235 million. DKK, corresponding to an EBIT margin in the range of 10-11%, which is close to a doubling of the originally announced expectations in June 2020. At the same time, the expectations for revenue are raised to the level of 2,100 - 2,150 mill. DKK.
The world is affected by the corona pandemic, which creates uncertainty about access to raw materials, purchasing patterns, conditions for retail, etc. However, Flügger is experiencing significantly increased customer traffic - especially in the Danish and Swedish markets - with an increase in sales to both private and professionals. At the same time, the Group's earnings are significantly strengthened. The positive results are due to several factors, including an increase in the number of renovation projects initiated during the COVID-19 pandemic, a positive impact from the acquisition of the paint manufacturer Unicell in November 2019, and effective cost management. Flügger therefore raises its expectations for both revenue and earnings for the financial year 2020/21 in August, October and November 2020. The expectations for earnings will be raised from ~ DKK 120 million. DKK to 200-215 million. DKK, corresponding to an increase in EBIT margin from ~ 6% to ~ 10%, which is close to a doubling of the originally announced expectations in June 2020. At the same time, the expectations for revenue are raised to the level of DKK 2,050-2,080 million. DKK - from originally ~ 2 billion. DKK.
In the summer of 2020, the management of Flügger will launch the Going Green strategy . The strategy consists of six focus areas that will create the basis for further growth and for Flügger to continue to invest in new value-creating initiatives for the benefit of both customers, shareholders and employees. In addition, as part of the strategy, Flügger has set goals for sustainability in both the short and long term.
In the autumn of 2017, the management of Flügger will launch the strategy Securing the Legacy and the values Team, Time and Trust . The focus is on creating profitable growth as well as efficiency - without compromising on the company's DNA and the quality, passion and creativity that has been built up over generations. Already in the first year after the launch of the strategy, the initiatives are bearing fruit and the results are reflected on the bottom line, which is being strengthened.
In the spring of 2014, a new CEO took office, who despite a high level of ambition experienced stagnant revenue and sharply declining earnings, primarily due to problems with the new IT system in 2015. In August 2016, Jimmi Mortensen took over as new CEO, and initiated clean-up in internal processes and consolidation of store network and range.
The business year 2009/10 surprised positively. Net sales dipped by only a few percent, and EBIT was just over DKK 100 million against an expectation of half. Against this background, the Group again chose to continue the strategy with organic growth established by expanding the store network in Scandinavia as well as in Poland and the Czech Republic. However, a weak sales trend in Denmark, which has traditionally been the Group's cash cow, significantly increased raw material costs and significantly increased distribution costs meant that expectations for the bottom line - ie EBIT - have not been met in recent years despite a positive sales trend.
A strategy will be drawn up in 2007 towards 2010, which entails a continuation of the expansion of the number of Flügger color stores in Scandinavia. In parallel, the focus is on Poland and China. These markets must bear the growth on the day the group has reached its goals in Scandinavia. As can be seen from the following, expectations were met in the short run, ie until the financial crisis hit the group at the turn of the year 2008/09.
After some years of satisfactory earnings, but with stagnant net sales, it was decided to prioritize the top line again. The company chose to buy the leading paint product manufacturer in Iceland and prioritized the expansion of the Flügger color chain, primarily in Norway and Sweden. The strategy for the next three years, ie up to 2007, met the expectations set.
In the 1998/99 financial year, the group did less well. The top line - ie net revenue - dived by approximately 2% to DKK 1,012 million, and the bottom line - ie primarily operating profit EBIT - also took a dive to DKK 30 million. As a consequence of this development, a strategy was laid down: The Group's profitability was to be re-established, as is evident from the development in the following years.
At the turn of the year 1993/94, Sweden's third largest paint factory, HP Färg & Kemi AB, was bought, which has since changed its name to Flügger AB. HP's Norwegian company was merged with Flügger Norge, and the Danish subsidiary PP Mester Maling continues as an independent company in the group. In the following years, the Flügger Group aims to become one of the dominant providers of building paint in Scandinavia. In Norway, a smaller color retailer chain is acquired. In Denmark, a North Jutland wholesaler is acquired, and in Sweden, AdeKema, a manufacturer of cleaning products, is acquired. The group chooses to expand the Swedish central warehouse close to Gothenburg with 11,500 pallet spaces.
Due to a serious fire in the company's factory in Kolding, a planned IPO of Flügger in 1978 has to be postponed to 1983. The introductory price was DKK 875 per share, corresponding to DKK 52 per share today, when the issue of fund shares and changed unit size are taken into account. since the IPO.
With proceeds from the IPO - DKK 42 million - Flügger diversifies. Denmark's largest wallpaper factory, Fiona in Faaborg, is acquired, and Denmark's only producer of sandpaper, Dragon in Maribo, also becomes part of the group. In Sweden, Stiwex brush and painting tool manufacturer and Fobo brush factory are acquired.
Flügger was until 1975 known as the supplier of the painting profession. Sales to individuals were not part of the business. But in 1974, the year after the first economic crisis, the painting profession and Flügger experienced a dramatic downturn, which resulted in the joint start of the store chain "Flügger colors"
During the 1960s, the site in Rødovre was fully developed, so the establishment of a new factory in 1970 in Kolding was necessary. Flügger chose that the new production plant was solely designed to produce aqueous, environmentally friendly building paints. In 1970, Flügger was transformed into a joint stock company with the next generation, his son Ulf Schnack, as CEO. The share capital corresponding to equity amounted to NOK 1 million.
On 1 April 1958, the company moved from the center of Copenhagen to a new factory and administration building in Rødovre. It was Ulf Schnack who, as a 22-year-old newly graduated chemical engineer, was responsible for the development and production of building paint in master painter quality.
After World War II, all German property in Denmark was seized by the Danish state as war damages. After a few years, the state decided to divest the company through a commission sale. It was Michael Schnack, the company's Danish manager, who, with the support of four major painting companies, acquired the company.
On November 1, 1890, the German parent company established a branch in Denmark. This happened after the parent company in Hamburg had established a sale to master painters in Denmark, which they wanted to provide local service.
In 1783, Daniel Flügger founded the company. The son, Joachim Daniel Flügger, took over the company in 1816 and carried it on in his name: JD Flügger, Farben & Lackfabrik, Hamburg. The company was run by four generations of the Flügger family until a voluntary liquidation in 1973.