Egger achieves 11% growth in first half of FY2017/18, growth expected for the rest of the year

The EGGER Group concluded the first half of 2017 (FY 2017/2018) with a consolidated turnover of EUR 1.32 billion (+11.1% YoY). The result before interest, taxes and depreciation (EBITDA) increased to EUR 222.5 million (+17.4%). The EBITDA margin increased to 16.8% (previous year: 15.9%).

Headquartered in St. Johann in Tirol, the group has more than 9000 employees and expects positive growth for the full financial year 2017/2018.

Over the past half-year, the EGGER Group was able to profit from the largely positive economic situation and the growing building and renovation activities. The company managed to increase its turnover in Europe and all relevant geographic markets, as well as in all product segments. The largest turnover increases (+11.0%) were recorded for EGGER Decorative Products, which sells products for furniture and interior design.

The largest development of this segment, with 76 per cent of all sales, was in Central and Eastern Europe. The successful worldwide introduction of the EGGER Decorative Collection 2017-2019 had a particularly positive effect on the Decorative Products segment. Minor losses due to the exchange rate were recorded only in the UK. The Overseas segment grew significantly, particularly in Asia and North America. The turnover of the new plant in Concordia, Argentina, which joined the Group on Oct 1, 2017, are also included.

EGGER Flooring Products (Laminate, Comfort and Design flooring) achieved an increase in turnover of 6.4 per cent, compared to the same period during the previous year despite a still difficult market environment. The overall increase in the turnover primarily depends on the gradual marketing of the new flooring capacities in the Gagarin (RU) plant. However, the EBITDA development was negative, due to the incomplete utilisation of capacities, as well as increased costs for wood and chemicals.

EGGER Building Products also achieved a turnover increase of 9.2 per cent in a market marked by increasing raw material costs and availability bottlenecks. The sales of OSB products and timber also increased. The largest growth in the OSB segment was recorded in Eastern Europe. On the other hand, timber sales increased in Germany and certain overseas markets. In this segment the EBITDA is also under the level of the previous year, which is again due to the increase in raw material costs for wood and chemicals.

The EGGER Group is also expecting a stable development of its business activity for the second half of the financial year 2017/2018.