Egger Group generated a Group-wide turnover of €4.13 billion (£3.52b) in the 2023/2024 financial year, down 7.1% compared to the previous year.
Egger said the results reflect a “turbulent overall economic environment”, yet has stated that its strategic milestones in “growth and climate protection” have been reached.
The financial results also show Egger’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) at €493.6 million (£420.7m), which is down 18.1% compared to the previous year. This represents an EBITDA margin of 11.9%.
Speaking at a press conference at the wood-based material manufacturer’s headquarters in St. Johann in Austria, Thomas Leissing, chief financial officer of Egger Group, said: “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.
“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”
The manufacturer produced 10.4m m³ of wood-based materials and timber (previous year: 9.6m m3), and believes the effects of the overall economic slowdown had a varied impact on different product areas of the business.
“People in the vast majority of our markets have to deal with high inflation, the higher cost of living, and more difficult construction conditions,” said Michael Egger Jr., chief sales officer at Egger Group.
“All of this has led to a low propensity to consume and significant decline in construction permits – and ultimately to a low demand for our products.”
Egger recently announced it would open a collaborative Clerkenwell showroom with Blum and Cleaf in the Autumn and also the acquisition of a majority stake (60%) in the Italian recycling company Cartfer Urbania S.r.l.
The future outlook for Egger’s turnover and earnings is “cautious”. Despite a prudent approach, the manufacturer says it is also well positioned for this period of downturn.
In its results announcement, Egger said: “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.”
