{"id":87158,"date":"2023-12-22T08:39:39","date_gmt":"2023-12-22T08:39:39","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/egger-group-reports-stable-business-development-despite-challenges\/"},"modified":"2025-09-19T09:01:18","modified_gmt":"2025-09-19T09:01:18","slug":"egger-group-reports-stable-business-development-despite-challenges","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/egger-group-reports-stable-business-development-despite-challenges\/","title":{"rendered":"Egger Group reports stable business development despite challenges"},"content":{"rendered":"

The Egger Group, headquartered in St. Johann in Tirol (AT), concluded the initial half of its 2023\/2024 financial year (reporting date 31 October 2023) with consolidated sales of \u20ac2.1 billion (\u20137.0% compared to the previous year). The business environment proved challenging, marked by persistently high inflation, elevated interest rates, volatile raw material prices, and geopolitical crises. Despite these conditions, the wood-based material manufacturer is content with its stable development in the first half of 2023\/2024.<\/span><\/p>\n

Thomas Leissing, chief financial officer of Egger Group and Speaker of the Group Management, remarked, \u201cThe 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 can nevertheless 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\u2019s climate protection commitment to the Net Zero 2050 target.\u201d<\/p>\n

Decline in demand recorded<\/strong><\/p>\n

During the initial half-year of 2023\/2024, the Egger Group generated sales of \u20ac2,097.8 million (\u20137.0% compared to the first half-year 2022\/2023) and an EBITDA of \u20ac299.2 mil (\u201315.4% compared to the previous year). The EBITDA margin is 14.3%, and the shareholder\u2019s equity ratio remains at the high level of 44.9%.<\/p>\n

This result reflects the highly volatile general conditions of the past six months. Declines in sales and earnings disproportionately affected the flooring, OSB, and timber product areas. 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\u2019s level.<\/p>\n

Long-term investment strategy<\/strong><\/p>\n

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 consistently adheres to this strategy and is constantly investing in existing plants to keep them at the cutting edge of technology or to expand them further. In the first half of 2023\/2024, investments totalled<\/p>\n

\u20ac238.6 mil (\u20ac229.7 mil 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.<\/p>\n

Further growth: 22nd plant in Markt Bibart\u00a0<\/strong><\/p>\n

The cornerstone for another milestone in Egger\u2019s history was laid with the acquisition of the chipboard plant in Markt Bibart (DE). With this additional location in the core market of Germany, the Egger Group now has 22 plants. The purchase agreement for the plant, which previously belonged to the Rauch Group, was signed on 8 Sep 2023. The successful closing followed at the beginning of November, shortly after the end of the first half of the financial year.<\/p>\n

Outlook for the second half-year fraught with uncertainty<\/strong><\/p>\n

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. The family company can rely on the commitment of its more than 11,000 qualified and motivated employees and the continued successful cooperation with its customers and partners worldwide. Together with them, Egger is convinced that it can fully utilise the advantages of its sustainable business model, its strong financial base, and the production advantages of its state-of-the-art plants.<\/p>","protected":false},"excerpt":{"rendered":"

The Egger Group, headquartered in St. Johann in Tirol (AT), concluded the initial half of its 2023\/2024 financial year (reporting date 31 October 2023) with consolidated sales of \u20ac2.1 billion (\u20137.0% compared to the previous year). The business environment proved … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96204,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-87158","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nEgger Group reports stable business development despite challenges - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/egger-group-reports-stable-business-development-despite-challenges\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Egger Group reports stable business development despite challenges - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The Egger Group, headquartered in St. Johann in Tirol (AT), concluded the initial half of its 2023\/2024 financial year (reporting date 31 October 2023) with consolidated sales of \u20ac2.1 billion (\u20137.0% compared to the previous year). 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