HOMAG registers record orders and improvements in earnings for FY2021

(Image: HOMAG)

The HOMAG Group has announced their earnings for FY2021, registering the “highest order intake” in its history, with sales and earnings increased compared to the previous year.

In addition to high demand in the furniture industry, growing business in production equipment for the construction of sustainable timber houses also contributed to this success.

According to preliminary figures, HOMAG reported that their order intake in FY2021 increased by almost 60% from €1,093 million in the previous year to €1,742m.

“The fact that we exceeded the previous record order intake achieved in 2017 by around 28% reflects last year’s exceptionally strong demand,” emphasized Daniel Schmitt, CEO of HOMAG. “This success is all the more impressive given that the underlying conditions were not easy due to the restrictions caused by the coronavirus pandemic. This demonstrates the great commitment of our employees worldwide.”

Sales improved by 25% to €1,389m, compared to previous year of €1,112m, also reaching a record level despite supply chain constraints. The strong demand also led to an increase in the order backlog, which stood at €1,002m as of 31 Dec 2021, compared to €581m in the same period of 2020.

The HOMAG Group increased its operating EBIT more than three-fold to €92.1m, as compared to €27m in 2020. As of 31 Dec 2021, the company had 7,477 employees, a rise from 6,942 in 31 Dec 2020. Roughly 110 employees joined the company for acquisition-related reasons.

“In 2021, we performed very well in all regions worldwide, benefiting from the high level of investment in the furniture industry,” explained Schmitt. “This particularly applies to the European market with its particularly high growth rates.”

With the acquisition of the Danish companies System TM in 2020 and Kallesoe in 2021, the HOMAG Group has also expanded its activities in timber construction. Together with its subsidiary WEINMANN, which is active in timber house construction, the HOMAG Group can offer several technologies from a single source as a system supplier. “This segment made an important contribution to our success in 2021,” said Schmitt. “Climate-friendly timber construction is currently experiencing a boom and we are very well positioned in this growth market.”

Schmitt is optimistic with respect to the current year, and concluded: “With our high order backlog, we are confident about 2022, although we expect order intake to return to normal after the exceptional performance in 2021.”