The Egger Group, headquartered in St. Johann in Tirol, Austria, closed the first half of its 2023/2024 financial year (reporting date 31 October 2023) with consolidated sales of Euro 2.1 billion (–7.0% 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, CFO 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 Euro 2,097.8 million (–7.0% as compared to the first half-year 2022/2023) and an EBITDA of Euro 299.2 million (–15.4% as compared to the previous year). The EBITDA margin is 14.3%, the shareholder’s equity ratio is at the high level of 44.9%. This result reflects the highly volatile general conditions of the past six months.
Outlook for the second half-year fraught with uncertainty
The overall economic outlook remains subject to great uncertainty, which is why Egger is looking at the second half of the 2023/2024 financial year with subdued earnings expectations. The wood-based material manufacturer anticipates a further decline in demand, partly due to seasonal effects. However, Egger believes it is well equipped not only to successfully weather the current macroeconomic downturn, but also to emerge from it stronger than before.
Egger is one of the world's leading wood-based solutions suppliers. Egger produces an extensive product range of wood-based materials (chipboard, OSB, and MDF board) as well as timber.
