HOMAG Group announces successful start to fiscal year 2021

The HOMAG Group got off to a good start into the fiscal year 2021, setting a new record for order intake in the first quarter. The number of orders increased equally strongly in all regions of the world.

In the first quarter of 2021, the HOMAG Group’s order intake increased significantly by 49% to EUR 448 million (previous year: EUR 302 million). Sales increased by 7% to EUR 309 million (previous year: EUR 290 million). As a result of the sharp growth in orders, the order backlog at 31 March 2021, was EUR 719 million, significantly higher than the figure at the previous year’s reporting date (31 March 2020: EUR 556 million), also reaching a record level. The HOMAG Group generated an operating EBIT of EUR 13.5 million (previous year: EUR 16.1 million).

“The positive trend of the last months of 2020 has continued in the first quarter of 2021, even though margin quality has not yet reached pre-crisis levels,” emphasised Chief Executive Officer Ralf W. Dieter. “It is now clear that the furniture industry is back in an investment cycle after two weaker years.” The HOMAG Group benefited above all from strong demand in the single machine business and growth in service.

As of 31 March 2021, the company had 6,948 employees (31 March 2020: 6,613). As a result of the acquisition of HOMAG China Golden Field and System TM in Denmark, approximately 550 new employees have joined the Group.

“We continue to work intensively on optimising processes and structures and our product range,” explained Dieter. “For example, it is paying off that we have launched several new machines and systems, thus increasing the attractiveness of our product range.”

The HOMAG Group is benefiting from the increase in home furniture purchases during the COVID-19 pandemic, which is boosting demand among HOMAG customers. “The prospects for a successful fiscal year 2021 are very good, which is why we expect growth in order intake, sales and EBIT margin,” added Dieter.