Egger, the well-known Austrian group, announced that it closed the financial year 2023/2024 with a turnover of EUR 4.13 billion and generated an Ebitda of EUR 493.6 million. ‘We are not entirely satisfied with the results, but at the same time, we are proud that we have held up well during this very difficult time,’ said Thomas Leissing, cfo of Egger. ‘We are clearly focused on the future and are pleased that we were able to initiate far-reaching strategic developments. Thanks to our 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.’
Despite the excellent ‘overall’ numbers, Egger’s turnover was 7.1 per cent lower than the previous year, and Ebitda also fell by 18.1 per cent.
In 2023/24, the group produced 10.4 million cubic metres of wood-based materials and timber. The previous year’s figure was 9.6 million.
The effects of the general economic slowdown were felt to a slightly different extent in the individual production sectors.
‘People in the vast majority of our markets have to cope with high inflation, a higher cost of living and more difficult building conditions. All this has led to a low propensity to consume and a significant drop in building permits, and ultimately low demand for our products,’ said Michael Egger Jr, cso of the Egger Group.
Market and price pressure was considerable in the Building Products segment. Unconsolidated sales in this product area dropped by 22 per cent to 704.9 million.
In the Decorative Products segment, plants in Western and Eastern Europe were well utilised. However, the situation in the core markets of Central Europe was difficult, with the German-speaking region in particular experiencing extremely high market and price pressure.
Since the beginning of 2024, the introduction of the new Egger Decorative Collection 24+ has provided positive momentum and positive levels of new incoming orders. The Decorative Products segment generated unconsolidated sales of EUR 3,629 million, 3.8 per cent less than in the previous year.
In terms of sustainability, the group is already implementing investment projects that contribute to this climate protection commitment, as part of its Net Zero by 2050 goal.
The overall economic outlook remains extremely cautious, characterised by fragile markets, the resulting pressure on prices and geopolitical crises, such as the current Russia-Ukraine conflict, hyperinflation and the drastic market collapse in Argentina, as well as the conflict in the Middle East.
Egger’s revenue and profit expectations for the fiscal year 2024/25 are therefore cautious.
‘However, we are also very well positioned for this period of recession. We have a solid financial basis, a sustainable long-term 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.
