EGGER Group: Sales and earnings growth at half year

The EGGER Group, headquartered in St. Johann in Tirol (Austria), closed the first half of its 2021-22 financial year (reporting date Oct. 31, 2021) with consolidated sales of 1.98 billion euros ($2.24 billion) an increase of 36.5% as compared to the previous year. Special economic circumstances in the construction and furniture sector as well as capacity increases of new plants contributed significantly to the result. Raw material markets, however, created challenges.

The coronavirus pandemic and its effects on the economy and society were also decisive factors for the EGGER Group in the first half of the 2021-22 financial year. The special situation in which the industry has found itself since summer 2020 remained in place. The strong increase in demand continued.

Thomas Leissing, EGGER Group Management Finance/Administration/Logistics: "The so-called cocooning effect, i.e., the increased consumer investment in one's own home, as well as the uninterrupted new construction activities in almost all regions of the world are the main drivers behind the high demand for our products. We are pleased that we have been able to make good use of the opportunities offered by this market setting. At the same time, the pandemic also presents us with significant challenges, especially in the area of raw material supply."

Demand at an extremely high level

During the first half-year 2021-22 the EGGER Group was able to generate sales of EUR 1,978.1 million (+36.5% compared to the first half-year 2020-21) and an EBITDA of EUR 478.6 million (+62.9% compared to the previous year). This result reflects the high level of demand. The new EGGER plants in Biskupiec (PL), and in Lexington, NC (US), contributed significantly to the increase in sales and results. In addition, the product mix was optimized in all plants. The building products product area in particular recorded disproportionate growth.

Challenges on raw material markets

Since the beginning of the year, the supply situation on the global raw materials markets has become increasingly tense – a dynamic that has intensified considerably in recent months. This applies in particular to the chemical raw materials needed for wood-based materials, edging and surface production.

Stable expectations for the second half-year

Despite continued uncertainties due to the coronavirus pandemic, the overall outlook for the second half of the 2021-22 financial year is positive.