News> EGGER Group brings the 2018/2019 financial year to a close with stable results and very high investments

EGGER Group brings the 2018/2019 financial year to a close with stable results and very high investments

The wood-based materials manufacturer recorded sales of EUR 2.84 billion and adjusted EBITDA of EUR 425.0 million.

The EGGER Group Management Walter Schiegl, Ulrich Bühler and Thomas Leissing (from left) reported a positive business year and big plans for the future.

EGGER Group Management is satisfied with the sales of EUR 2,841.5 million achieved in the 2018/2019 financial year (+5.6% compared to the previous year) and the adjusted operating result (EBITDA) of EUR 425.0 million (-4.7% compared to the previous year). The adjusted EBITDA margin amounts to 15.0% and is thus in line with the long-term average. The equity ratio remains at the high level of 36.8% (previous year: 40.8%). The quantity of rawboards (including timber) increased to 8.8 million m3 (+3.5%), which means the full utilisation of all primary production capacities. Across the Group, EGGER employed an average of 9481 employees last year.

“What is particularly satisfying is that we were able to experience growth in all corporate divisions”, explains Thomas Leissing, spokesman for Group Management, and in charge of Finance, Administration, and Logistics.

Under the EGGER motto “Sustainable international growth”, investments in property and intangible assets as well as acquisitions of EUR 489.1 million were posted during the business year 2018/2019 (previous year: EUR 483.8 million). Of this amount, EUR 78.1 million was attributable to maintenance investments and EUR 411.0 million to growth investments. The two greenfield projects in Biskupiec (PL) and in Lexington, NC (USA), accounted for the largest investments.

Positive outlook for 2019/2020

In the current financial year, EGGER aims to exploit the earnings potential of the investments made. Thomas Leissing is confident about this: "Although weaker economic development has been noticeable in some of our markets in recent months, our outlook for the 2019/2020 financial year is positive. With our competitive industrial base, we will be able to build on our current results. In addition, we will launch our new EGGER Decorative Collection 2020–22 in the market at the turn of the year, continuing the great success of the first edition of this collection". EGGER also anticipates a positive development in demand for the OSB and timber product areas. Laminate flooring will continue to be under market pressure in Western Europe. Due to the stable development in the core area of furniture and interior design, growth in Russia and the shift of volumes from weaker regions to alternative markets, EGGER anticipates sustained sales growth and stable earnings for the Group as a whole in the 2019/2020 financial year.