EGGER Group Closes Financial Year with Revenue of EUR 4.45 Billion in an Extremely Volatile Environment
Overall economic downturns bring moderate increase in revenue and a decline in earnings.
The EGGER Group looks back on an extremely volatile financial year 2022/2023. The business environment was characterised by sharply rising interest rates, high inflation, declining new construction figures, highly volatile raw materials and energy markets, as well as geopolitical uncertainties. Despite these challenges, the EGGER Group can report a stable development.
For the 2022/2023 financial year, EGGER reports an increase in revenue, but a decline in earnings: Thus, a Group-wide turnover of EUR 4,449.7 million (+5.1% compared to the previous year) was generated. EBITDA amounted to EUR 602.5 million (-31.3% compared to the previous year) and the EBITDA margin was 13.5% (previous year 20.7%). Thus, after the extraordinarily high demand experienced during the pandemic, the result is settling at a level that is sustainable in the long term. The equity ratio remains at a high level of 45.9%. In the 2022/2023 financial year, the EGGER Group produced 9.6 million m³ of wood-based materials and timber.
"We are pleased that we were able to conclude another successful financial year, especially in the current challenging macroeconomic situation. The last few years have been exceptional for our industry. Demand for our products was extremely high during the pandemic thanks to the accompanying cocooning effect. We are now seeing a return of our key figures to a stable and sustainable level in the long term", said Thomas Leissing, Chief Financial Officer and Speaker of the Group Management.
The EGGER Group Management reports on the annual results (from left):
Thomas Leissing, Hannes Mitterweissacher, Frank Bölling and Michael Egger Jr.
Investments under the sign of sustainability
EGGER stands for effective and sustainable production and was able to implement numerous investment projects that further underpin this strategy. In the past financial year 2022/2023, investments including acquisitions in the amount of EUR 540.6 million (previous year: EUR 293.6 million) were made. The investment focus was on the areas of circular economy, renewable energy and optimised logistics as well as further refinement capacities. Already, 65% of the wood used by EGGER comes from recycling or by-products of industrial wood processing steps, such as wood chips or sawdust. 70% of the energy used is obtained from renewable sources. The wood-based material manufacturer is pursuing the goal of increasing both shares even further in the future.
Subdued expectations for the 2023/2024 financial year
The ongoing crisis in Ukraine, volatile energy and raw materials markets, persistently high inflation in key sales regions and further impending geopolitical crises, as well as the enormous challenges of climate change, are determining elements in the overall economic outlook. The outlook for revenue and earnings development of the EGGER Group is therefore subdued. Nevertheless, the family company is convinced that it has set the right course with its strategic orientation of long-term growth based on its own performance. The most important part of the family company is and remains the now more than 11,000 employees whose daily commitment makes its successful development possible.