HOMAG closes 2020 with positive result despite pandemic

HOMAG CEO Ralf W. Dieter

The HOMAG Group closed fiscal year 2020 with a positive result despite the challenges arising from the COVID-19 pandemic.

“In spite of the coronavirus crisis, we developed the company further and made acquisitions, in particular to strengthen our business in China and in the solid-wood sector,” pointed out HOMAG Chief Executive Officer Ralf W. Dieter.

According to preliminary figures, the HOMAG Group’s order intake in fiscal 2020 declined by 10.4% to €1.093m (previous year: €1.220m). Sales decreased by 13.1% to €1.112m (previous year: €1.279m). By contrast, the order backlog stood at €581m as at 31 December 2020, thus exceeding the previous year’s level (31 December 2019: €546m). The HOMAG Group achieved operating EBIT of €27.0m (previous year: €82.7m).

“After a good start to the year, we recorded a significant decline in orders in the second quarter, due to the restrictions and uncertainties resulting from the coronavirus pandemic,” explained Dieter. “In the second half of the year, and particularly in the final quarter, demand picked up noticeably.”

As at 31 December 2020, the HOMAG Group had 6,942 employees (31 December 2019: 6,569). However, it must be noted that the Group gained around 550 employees through the first-time consolidation of two companies acquired in 2020, HOMAG China Golden Field in China and System TM in Denmark.

In order to maintain close dialog with customers despite the cancelled trade fairs and reduced personal contact, the HOMAG Group relied increasingly on digital formats. One such example was the HOMAG Treff 2020 in-house event, which was organized in a hybrid format. During this global event, customers could participate live in over 500 activities for a period of 60 days, either on site in small groups or online via a digital platform.

“The feedback we received from customers and from sales was very good,” reported Dieter.

The CEO is optimistic about the future: “Many of our customers are benefiting from the fact that people are spending more time at home due to the pandemic and are investing in their living space, for example in new furniture or kitchens. As a result, we, too, are expecting a growth stimulus.”