With the close of the EGGER Group’s business year on 30 April 2021, the wood-based materials manufacturer looks back on a special situation for the past twelve months. After COVID-related effects at the beginning of the business year, EGGER experienced a strong increase in demand in almost all markets from the summer of 2020 onwards, which has remained at an exceptionally high level to this day. In order to be able to meet this demand, production capacities are being utilised to the maximum at all EGGER plants and record quantities are being produced.
Overall, EGGER reports a stable development of its key figures for the business year 2020 / 2021: The Group generated revenue of EUR 3,082.8 million (+8.9 % on the previous year) and EBITDA of EUR 622.3 million (+46.6% on the previous year). The EBITDA margin is 20.2% (previous year 15.0%), the equity ratio is 42.0% (previous year 37.9%).
“This clear development shows that at EGGER, on the one hand, we have coped well with the challenges of the pandemic, and at the same time, we have also made very good use of the opportunities that have arisen in our industry. In addition, the new plant in Biskupiec (PL) in particular made a significant contribution to the increase in earnings,” explained Thomas Leissing, Spokesman of the Group Management and responsible for Finance, Administration and Logistics.
Around 10,400 employees at 20 production sites worldwide have contributed to these results and to a new record production quantity of 9.6 million m3 of wood-based materials and timber in this challenging business year. A milestone in the past business year was the commissioning of the 20th plant in Lexington, NC, United States – the first EGGER plant in North America. Despite the difficult conditions and the ongoing special situation, the plant was able to go into operation on schedule in September 2020.
EGGER attributes the continued high demand to the cocooning effect associated with the pandemic protective measures and lockdowns (ie, the massively increased consumer investment in one’s own home). In addition, there was already a significant backlog of construction projects in many parts of Europe before the pandemic.
“Our top priority was and is the reliable supply of our customers. To this end, we make the best possible use of our capacities and try to serve customer needs via various supply plants,” said Ulrich Bühler, EGGER Group Management of Sales & Marketing.
Overall, EGGER was able to record a strong increase in demand in almost all markets worldwide in this environment and increase sales compared to the previous year, in some cases significantly: The Decorative Products Central Division generated in the last business year a turnover of EUR 930.4 million (+4.9 % on the previous year). At EUR 690.9 million, sales in the Decorative Products West Division were +4.2% higher than in the previous year. The turnover in the Decorative Products East Division rose by +10.8 % to EUR 981.8 million. The new plant in Biskupiec (Poland) developed particularly positively in this division. The latest Decorative Products Americas Division increased turnover by +32.0 % to EUR 181.2 million. The Flooring Products Division, with turnover of EUR 552.5 million, is +25.3 % above the previous year. The Other segment has a turnover of EUR 201.5 million (+16.0 % compared to the previous year).
All detailed information on the 2020/2021 business year can be found in the annual financial report at www.egger.com/credit-relations.
Further information on raw material procurement as well as on all other material sustainability topics can also be found in the EGGER Group’s Sustainability Report (non-financial statement) at www.egger.com/sustainability, which is published at the same time as the annual financial report.
Optimistic outlook for 2021/2022
Projections are currently difficult due to the lack of reliable forecasts on the development of the pandemic and possible further lockdown measures. Despite these uncertainties, EGGER anticipates a positive development in the 2021/2022 business year. Although some of the production and sales markets are currently still in crisis, there are signs of increasing demand in almost all markets and with all product areas. One risk is the development of the raw materials markets, especially the current shortage of chemical products. EGGER counteracts this by commissioning additional refinement capacities and investments to improve the raw material and energy situation, as well as with the continuous optimisation of material use and cost structure.