The EGGER Group experienced an eventful financial year 2023/2024, characterised by a fragile economic environment, in which it generated a group-wide turnover of EUR 4.13 billion and EBITDA of EUR 493.6 million.
Against this backdrop, the family business is consistently pursuing its strategy of sustainable and healthy growth. EGGER has been successfully driving forward significant strategic developments. For example, the Group added a 22nd plant in Markt Bibart (DE), acquired a minority stake in the Thai wood-based material manufacturer Panel Plus and established a pioneering climate strategy with its commitment to the Net Zero objective by 2050.
“We are not entirely satisfied with the results," says Thomas Leissing, Chief Financial Officer EGGER Group and Speaker of the Group Management, at the annual press conference at the headquarters in St. Johann in Tirol (Austria). "At the same time, we are proud that we have been holding our own in this very difficult environment.
"We are clearly focused on the future and are delighted to have been able to initiate far-reaching strategic developments. Thanks to our very solid financial basis and long-term strategy, even considering the fragile market situation, we are taking steps towards growth, and are growing despite the market situation”, EGGER generated a Group-wide turnover of EUR 4,132.5 million in the 2023/2024 financial year (-7.1% compared to the previous year). EBITDA amounted to EUR 493.6 million (-18.1 % compared to the previous year) and the EBITDA margin was 11.9 % (previous year 13.5%). The equity ratio remains at a high level of 43.5%.
Developments in the product areas
In the 2023/2024 financial year, the EGGER Group produced 10.4 million m³ of wood-based materials and timber (previous year: 9.6 million m3). The effects of the overall economic slowdown were felt to slightly differing degrees in the individual product areas. “People in the vast majority of our markets have to deal with high inflation, the higher cost of living and more difficult construction conditions. All of this has led to a low propensity to consume and significant decline in construction permits – and ultimately to a low demand for our products”, says Michael Egger Jr., Chief Sales Officer EGGER Group. Market and price pressure was considerable in the Building Products segment (products for wood construction and flooring).
Unconsolidated turnover in this product area fell by -22.0% to EUR 704.9 million. In the Decorative Products segment (products for furniture and interior design), the plants in Western and Eastern Europe have been well utilised. However, the situation in the core markets in Central Europe has been challenging, with the German-speaking region particularly experiencing extremely high market and price pressure. Since the beginning of 2024, the introduction of the new EGGER Decorative Collection 24+ has provided positive momentum and positive levels of new incoming orders. The Decorative Products segment generated an unconsolidated turnover of EUR 3,629.0 million in the 2023/2024 financial year (-3.8% compared to the previous year).
Sustainability as a driver
EGGER has the ambition to contribute to protecting and preserving the future. Important momentum in the past financial year was the adoption of a forward-looking climate strategy. EGGER is committed to reducing its climate-impacting greenhouse gas emissions in line with the Paris Climate Agreement and is clearly committed to the Net Zero target by 2050. The family business will both reduce greenhouse gases in its own sphere of activity and influence, i.e. Scope 1 and 2, and also include the upstream and downstream value chain (Scope 3). 69% of the energy used now is already obtained from renewable sources. “We have set ourselves the ambitious Net Zero target. As for milestones, we have established pioneering climate targets for 2030. Measures are being implemented step by step and in close cooperation with our partners”, says Hannes Mitterweissacher, Chief Technology Officer EGGER Group.
The EGGER Group is currently already implementing investment projects which contribute to this climate protection commitment. In the past financial year 2023/2024, investments, including acquisitions, totalled EUR 568.6 million (previous year: EUR 540.6 million). “In addition to company acquisitions, this expenditure is spread across all of our plants – to secure the best industrial basis, expand existing capacities and produce in closed cycles which save resources as much as possible. For example, we have invested in significantly more capacity for coating with decorative surfaces, in furniture component lines and laminate production. These capacities open up new opportunities for us on the market,” says Frank Bölling, Chief Supply Chain Officer EGGER Group.
Major advances towards international growth
The EGGER Group has been taking significant steps in implementing its own growth strategy in the past financial year. In November 2023, the wood-based material manufacturer took over the chipboard plant in Markt Bibart (DE), and now, the Group officially has 22 production plants. Extensive investments in this latest plant are already being implemented, which will enable to use recycled wood and upgrade to laminated chipboard.
With the goal of further strengthening its own market position in Asia, at the start of 2024, the EGGER Group acquired a 25.1% share in the Thai wood-based material manufacturer Panel Plus Co., Ltd. As a significant growth market, Asia plays an important role in strategic thinking. With Panel Plus, EGGER has found the ideal partner to expand its own presence there.
The network of international recycling collection sites, which EGGER operates under the name Timberpak, has also been expanded to include additional branches. The wood-based material manufacturer has invested in its recycling collection sites in Poland, Italy, Germany, the UK and USA. These sites provide recycled wood, a valuable resource that is used in EGGER plants for producing high-quality, new wood-based materials. Already 65% of the wood that EGGER uses in its wood-based materials comes from recycling or by-products from the sawmill industry.
Full details of the 2023/2024 financial year can be found in the Financial and Sustainability Report at to.egger.link/credit-relations.
Cautious outlook for the 2024/2025 financial year
The overall economic outlook remains extremely cautious, characterised by fragile markets, the resulting price pressure and geopolitical crises, such as, the ongoing Russia-Ukraine conflict, hyperinflation and drastic market slump in Argentina as well as the conflict in the Middle East. The turnover and earnings expectations for EGGER are correspondingly cautious. “Nevertheless, we are also very well positioned for this period of downturn. We have a solid financial basis, a long-term, sustainable strategy, successful partnerships with our customers and suppliers and, above all, the best employees. Our sincere thanks go to our more than 11,000 employees, whose daily commitment makes all the difference. Our global team also knows how to turn a crisis into an opportunity”, agree all members of the EGGER Group Management.
