News> EGGER Group continues to grow

EGGER Group continues to grow

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The wood-based material manufacturer recorded EUR 2.68 billion sales and EUR 445.8 million EBITDA for the business year 2017/2018.

The EGGER Group again set new records in its annual results for 2017/2018. The sales increased during the business year 2017/2018 by +12.5% to reach EUR 2,683.8 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, incl. timber, increased to 8.5 million m3 (+6.5 %), which means the full utilisation of all primary production capacities. On average last year, EGGER employed 8,765 employees group-wide.

“What is particularly satisfying is that we were able to experience growth in all corporate divisions and most markets”, explains Thomas Leissing, spokesman for Group Management, and in charge of Finance, Administration, and Logistics, who also refers to the good overall trend in the economy: “The European construction industry is, for the first time ever, on a growth trajectory across all countries. The forecast for the global furniture industry is also good, worldwide trade is expected to grow by 4% in 2018. This has a positive impact on production in exporting countries.”

Under the EGGER motto “Sustainable international growth”, investments in property and intangible assets as well as acquisitions of EUR 483.8 million were posted during the business year 2017/2018 (previous year: EUR 259.2 million). Out of this amount, EUR 70.5 million was spent on maintenance investments and EUR 413.3 million on growth investments.

Positive outlook for 2018/2019

Over the coming years, EGGER will focus on completing the ongoing strategic development investments. On the market side, the Group Management counts for all European sales markets on a positive development of the overall economic situation. The framework conditions are seen as challenging due to the upcoming Brexit in the UK and the political and economic situation in Turkey as well as the currency instability in Argentina. Thanks to the commissioning of new capacities and the positive development in Europe and Russia while volumes are moved from weaker regions to alternative markets, EGGER expects turnover growth to continue across the Group for the coming business year 2018/2019.