EGGER Group continues to grow

July 27, 2018
Source:
Egger/Fordaq
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938
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The wood-based material manufacturer recorded EUR 2.68 billion sales and EUR 445.8 million EBITDA for the 2017/2018 financial year. At the annual press conference held on 26th July 2018 at the headquarters in St. Johann in Tirol, the EGGER Group presented very positive overall growth for the corporate key figures. The Group sales (+12.5%), as well as the EBITDA (Earnings before Interest, Tax, Depreciation and Amortization) (+22.6%) once again reached record levels in the company’s 57-year history. The growth path first adopted last year, with new plants overseas and in Europe, has been followed consistently.

The EGGER Group set new records in its annual results for 2017/2018. Sales increased during the 2017/2018 financial year by +12.5% to reach EUR 2,683.6 million. The EBITDA increased by +22.6% to reach EUR 445.8 million. The EBITDA margin exceeded previous years’ levels by 16.6%. The family business continues to enjoy a good credit rating thanks to a high equity ratio of 40.5%. The quantity of rawboards (including timber) increased to 8.5 million m3 (+6.5%), which means the full utilisation of all primary production capacities. Across the Group, EGGER employed an average of 8765 employees last year.

Countries outside Europe are playing an increasingly important role in relation to EGGER’s total turnover. In South America and other overseas regions, 11.2% of sales revenue has already been achieved in 2017/2018 (previous year: 7.6%). A significant proportion of this increase can be attributed to the new EGGER plant in Argentina that was acquired in October 2017. Turnover for the key EGGER markets in Western Europe (59.3% of the total turnover; previous year: 63.0%) and markets in Central & Eastern Europe and Russia (29.6% of total turnover; previous year: 29.4%) have developed steadily. Only the political situation in the Ukraine and a decline in flooring sales in Turkey have had a negative impact, but it has been possible to compensate for this through increased sales in different sales territories in the region.

Under the EGGER motto of “self-propelled sustainable growth”, investments totalling EUR 483.8 million were made in the 2017/2018 financial year (previous year: EUR 259.2 million). Of which, EUR 70.5 million (previous year: EUR 64.3 million) can be attributed to maintenance investments and EUR 413.3 million to growth investments (previous year: EUR 194.9 million).

Significant investments for new and existing plants

Over the past twelve months, a number of milestones have been set to further develop the EGGER Group: At the beginning of October 2017, the Concordia plant in Argentina was acquired, and since then, the company integrated the first EGGER location outside Europe and around 500 employees into the Group. Two further production plants are currently being built or are in planning: At the beginning of September 2017, we began building a new plant in Biskupiec, Poland. Construction work has progressed according to plan thus far, and upon receipt of the necessary approvals, production of raw and coated chipboard is due to begin by the end of 2019. Furthermore, a strategic growth investment has been made in Lexington, NC, USA. The ground-breaking ceremony for an administration building and training centre was held in March 2018. Construction of the chipboard plant with coating facilities is currently in the planning stage and should be finished by the end of 2020. It has always been part of the company’s strategy to not only invest continually in new plant locations, but in existing ones, too. This is why we have invested in the finishing and logistics departments at the Austrian plants of St. Johann in Tirol and Unterradlberg (Lower Austria). Investments were made in Wismar (DE) in the production of EGGER Design and Comfort Flooring. An energy and environmental project was implemented in the French plant of Rambervillers.

EGGER presents its first sustainability report

EGGER has always embodied ecological, economical and social sustainability. By publishing the first sustainability report in the 2017/2018 financial year, EGGER has laid the foundations for the comprehensive, transparent reporting of its performances and potentials in relation to sustainability. The company acts in a forward-thinking manner yet also handles resources carefully. Over the next few years, the company wants to continue expanding its sustainability management. The EGGER 2017/2018 sustainability report is now available online: egger.com/sustainability.

Positive outlook for 2018/2019

Over the course of the coming year, EGGER will focus on concluding ongoing strategic expansion investments. In terms of the market, Group Management anticipates the macroeconomic situation to develop positively in all European markets and in Russia. The economic conditions relating to the upcoming Brexit in Great Britain are considered challenging, as well as the economic policy situation in Turkey and the currency instability in Argentina. Thanks to commissioning new capacities and positive growth in Europe and Russia, while also transferring quantities from weaker regions to alternative markets, EGGER is expecting further group-wide revenue growth for the current 2018/2019 financial year.