Wood-based material manufacturer Egger has posted €4.13billion turnover and EBITDA of €493.6 million, against the backdrop of a “turbulent” economic environment.

Left to right: The Egger Group management team; Chief financial officer Thomas Leissing, chief supply chain officer Frank Bölling, Chief sales officer Michael Egger Jr. and chief technology OfficerHannes Mitterweissacher

In its 2023/2024 financial year, overall turnover was down 7.1% compared to the previous year, while EBITDA declined 18.1 % compared to the previous year.

Chief financial officer of Egger Thomas Leissing commented: “We are not entirely satisfied with the results.

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“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.”

In the 2023/2024 financial year, Egger produced 10.4 million m³ of wood-based materials and timber, against 9.6 million m³ last year, with the economic slowdown impacting product areas to differing degrees.

 “People in the vast majority of our markets have to deal with high inflation, the higher cost of living and more difficult construction conditions.

“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”, said chief sales officer of Egger Group Michael Egger Jr.

It saw the turnover of its Building Products, which includes products for wood construction and flooring, fall by 22.0% to €704.9 million.

Whereas Decorative Products, which includes products for furniture and interior design, generated €3,629.0 million in the 2023/2024 financial year, down just 3.8% compared to the previous year

According to the company, the introduction of its Egger Decorative Collection 24+ provided positive momentum and new sales orders.

Egger made business investments totalling €568.6 million against €540.6 million last year, which included company acquisitions, and focused on the circular economy, renewable energy and upgrading capabilities.

The company acquired its 22nd plant in Markt Bibart (DE) and invested in the factory to use recycled wood and upgrade to laminated chipboard.

Further it has bought a minority stake in Panel Plus, a Thai wood-based material panel manufacturer, to strengthen its position in Asia.

With 69% of its energy already obtained from renewable sources, Egger will continue to reduce greenhouse gases and has established a climate strategy with its commitment to Net Zero by 2050.

Egger uses 65% of wood from recycling or saw industry by-products for new materials, and has also invested in its Timberpak recycling plants in Poland, Italy, Germany, the UK and USA, which provide recycled wood.

The company cited its overall economic outlook remains extremely cautious, characterised by fragile markets, the resulting price pressure and geopolitical crises, such as, the ongoing Russia-Ukraine conflict, hyperinflation, market slump in Argentina, and conflict in the Middle East.

The turnover and earnings expectations for Egger are correspondingly cautious.

“Nevertheless, we are also very well positioned for this period of downturn.

“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”, agreed all members of the Egger Group management.

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