The Egger Group, headquartered in St. Johann in Tirol (AT), closed the first half of its 2023/2024 financial year (reporting date 31 October 2023) with consolidated sales of Eur 2.1 billion (–7.0 percent as compared to the previous year). The business environment was challenging due to persistently high inflation, high interest rates, volatile raw material prices and geopolitical crises. In view of this situation, the wood-based material manufacturer is satisfied with its stable development in the first half of 2023/2024.
Thomas Leissing, Chief Financial Officer Egger Group and Speaker of the Group Management: “The first six months of our financial year have been very demanding. Persistently high inflation in many regions, stricter capital requirements for home purchases and global geopolitical uncertainties have led to a general weakness in consumption and a decline in demand in almost all markets. Thanks to the efforts of our more than 11,000 employees, we are nevertheless able to report Group-wide sales that decreased only slightly. We are particularly pleased that we could successfully initiate strategically forward-looking decisions in the first half of 2023/2024, such as the acquisition of our 22nd production plant in Markt Bibart (DE) and the Egger Group’s climate protection commitment to the Net Zero 2050 target.”
Decline in demand recorded
During the first half-year 2023/2024, the Egger Group generated sales of Eur 2,097.8 million (–7.0 percent as compared to the first half-year 2022/2023) and an EBITDA of Eur 299.2 million
(–15.4 percent as compared to the previous year). The EBITDA margin is 14.3 percent, the shareholder’s equity ratio is at the high level of 44.9 percent.
This result reflects the highly volatile general conditions of the past six months. Declines in sales and earnings affected the flooring, OSB and timber product areas disproportionately. However, the previous year period was still characterised in part by an exceptionally good market environment and margin level. Products for wood construction and flooring are now directly affected by the downturn in the construction industry. The first-time inclusion of the Caorso (IT) plant, in which Egger has held a majority stake since the end of 2022, had a positive effect on revenue development in the decorative products area for furniture and interior design. In addition, the plant in Lexington, NC (US) achieved volume increases due to further market expansion in the USA. Overall, these effects led to Group-wide sales and earnings slightly below the previous year’s level.
Long-term investment strategy
The continuous development of the Egger Group has always been part of its strategy. Even in the current volatile market environment, the wood-based material manufacturer is consistently adhering to this strategy and is constantly investing in existing plants in order to keep them at the cutting edge of technology or to expand them further. In the first half of 2023/2024, investments totalled Eur 238.6 million (Eur 229.7 million in the same period last year). The focus areas were the expansion of active backward integration and the further increase in sustainability performance. Efforts to promote the circular economy were a key topic, which Egger addressed with investments in facilities for the processing of recycled wood and in its own collection sites.
