Growth for the EGGER Group
The EGGER Group again set new records in its annual results for 2017/2018.
Sales increased during the business year 2017/2018 by 12.5 per cent to reach EUR 2.6 billion (US$3.1 billion). EBITDA increased by 22.6 per cent to hit EUR 445.8 million (US$522.5 million), with the margins exceeding previous years’ levels by 16.6 per cent.
Moreover, due to a high equity ratio of 40.5 per cent, the family business continues to enjoy a good credit rating, and the quantity of rawboards, including timber, increased to 8.5 million m³ – a 6.5 per cent increase – which means the full utilisation of all primary production capacities. On average in 2017, 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,” explained Thomas Leissing, spokesman for Group Management, refers to the overall positive trend of 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 per cent 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 (US$567.1 million) were posted during the business year 2017/2018 as compared to the EUR 259.2 million(US$303.85 million) seen the previous year. Out of this, EUR 70.5 million (US$82.6 million) was spent on maintenance investments and EUR 413.3 million (US$484.4 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 United Kingdom (U.K.), as well as the political and economic situation in Turkey, and 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.