NEWS
Egger Group closes FY2023/24 year with €4.13bn turnover
The Egger Group has announced their performance for FY2023/24, closing out the financial year with a turnover of €4.13bn, an achievement considering the economic downturn. The group also generated an EBITDA of €493.6m. Other achievements that the group has managed this financial year was a 22nd plant in Markt Bibart, Germany, a minority stake in the Thai wood-based material manufacturer Panel Plus, and establishing a pioneering climate strategy with its commitment to the Net Zero objective by 2050. “We are not entirely satisfied with the results. At the same time, we are proud that we have been holding our own in this very difficult environment,” said Thomas Leissing, CFO of Egger Group, and speaker of the group management. “We are clearly focused on the future and are delighted to have been able to initiate far-reaching strategic developments. Thanks to our very solid financial basis and long-term strategy, even considering the fragile market situation, we are taking steps towards growth, and are growing despite the market situation.” In spite of the high figures, Egger’s turnover was 7.1% lower than the year before, and their EBITDA was 18.1% lower too. In FY2023/24, the group produced 10.4 million cubic metres worth of wood-based materials and timber. Their previous year was 9.6 million. The effects of the overall economic slowdown were felt to slightly differing degrees in the individual product areas. “People in the vast majority of our markets have to deal with high inflation, the higher cost of living and more difficult construction conditions. All of this has led to a low propensity to consume and significant decline in construction permits — and ultimately to
Egger Group Management (Image: Egger)
“We have set ourselves the ambitious net zero target. As for milestones, we have established pioneering climate targets for 2030. Measures are being implemented step by step and in close cooperation with our partners,” said Hannes Mitterweissacher, CTO of Egger Group. The overall economic outlook remains extremely cautious, characterised by fragile markets, the resulting price pressure and geopolitical crises, such as, the ongoing Russia-Ukraine conflict, hyperinflation and drastic market slump in Argentina as well as the conflict in the Middle East. The turnover and earnings expectations for Egger’s FY2024/25 are therefore correspondingly cautious. “Nevertheless, we are very well positioned for this period of downturn. We have a solid financial basis, a long-term, sustainable strategy, successful partnerships with our customers and suppliers and, above all, the best employees. Our sincere thanks go to our more than 11,000 employees, whose daily commitment makes all the difference. Our global team also knows how to turn a crisis into an opportunity,” said all members of the Egger Group Management. P
a low demand for our products,” said Michael Egger Jr, CSO of Egger Group.
Market and price pressure was considerable in the Building Products segment. Unconsolidated turnover in this product area fell by 22% to €704.9m. In the Decorative Products segment, the plants in Western and Eastern Europe have been well utilised. However, the situation in the core markets in Central Europe has been challenging, with the German-speaking region particularly experiencing extremely high market and price pressure. Since the beginning of 2024, the introduction of the new EGGER Decorative Collection 24+ has reportedly provided positive momentum and positive levels of new incoming orders. The Decorative Products segment generated an unconsolidated turnover of €3,629m, 3.8% lower than the previous year. In terms of sustainability, the group is currently implementing investment projects which contribute to this climate protection commitment, as part of their net zero target by 2050.
14 PANELS & FURNITURE ASIA | SEPTEMBER / OCTOBER 2024
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