The Egger Group has closed their H1 21/22FY with consolidated sales of €1.98 billion, a 36.5% compared to the previous year. In summary, the economic situation in the construction and furniture sector, as well as the capacity increases of new plants, contributed to the result. However, the situation on the raw material markets was challenging.
The COVID-19 pandemic and its effects on the economy and society were also decisive factors for the Egger Group in H1 21/22FY. The special situation in which the industry has found itself since summer 2020 remained in place, and the strong increase in demand continued.
Thomas Leissing from Egger Group Management Finance, Administration and Logistics, said, “The so-called cocooning effect, or the increased consumer investment in one’s own home, as well as the uninterrupted new construction activities in almost all regions of the world are the main drivers behind the high demand for our products. We are pleased that we have been able to make good use of the opportunities offered by this market setting. At the same time, the pandemic also presents us with significant challenges, especially in the area of raw material supply.”
Besides the consolidated sales, the Egger Group also recorded an EBITDA of €478.6 million, a 62.9% increase compared to the previous year, reflecting the strong levels of demand. The new Egger plants in the locations Biskupiec and Lexington contributed to the increase in sales and results. In addition, the product mix was optimised in all plants. The building products product area in particular recorded disproportionate growth.
However, the Egger Group was set back by challenges in raw material market. Since the beginning of the year, the supply situation on the global raw materials markets has become increasingly tense – a dynamic that has intensified considerably in recent months. This applies in particular to the chemical raw materials needed for wood-based materials, edging and surface production.
Even so, the group expressed hope that the second half of 21/22FY will be positive, despite the continued uncertainties of the pandemic.