EGGER obtains positive half-year balance

Turnover increased by 2.3 % to EUR 1,163 million

Despite a difficult market situation, the EGGER Group, with headquarters in St. Johann in Tirol (AT), has increased its turnover. This was the conclusion of the half-year balance of 31 October 2014. The turnover increased, in comparison to the same period the previous year, by 2.3% to EUR 1,163 million (previous year: EUR 1,137 million). The EBITDA increased to EUR 172.6 million. The equity ratio of the family business has continued to improve to reach 39.7% (30.04.2014: 39.2%).

With 3.7%, EGGER reached the largest turnover growth in the department Decorative Products, which sells products for furniture and interior design. "All geographical markets, with the exception of Russia, where currency fluctuations and the crisis in Ukraine had an impact, have grown in this product area as compared to the previous year", says Thomas Leissing, Head of Finances/Management/Logistics, and spokesman of the EGGER Group Management. The turnover decrease in EGGER Retail Products (-7.9%), which sells flooring, shows that the manufacturer of wood-based materials moves in a very challenging economic context. The company made a conscious decision to forgo unprofitable volume business. The turnover of OSB and timber for EGGER Building Products also proved to be declining (-5.4%). Decreasing demand and the price pressure for OSB marked these markets.

Well equipped for 2015

The company management looks confidently towards the second half-year of its financial year. "Thanks to the continued investments, we have more than 17 modern, environmentally friendly and safe plants," says Thomas Leissing. Due to the positive development in Western Europe and the key markets of Eastern Europe, EGGER is expecting for the entire financial year 2014/15 a similar turnover growth as the one registered in the first half-year.

EUR 113.6 million invested

In the first six months of the 2014/15 financial year, EGGER invested EUR 113.6 million in property, plant, and equipment as well as in tangible assets (previous year: EUR 102.2 million). Out of this amount, EUR 30.3 million were spent on maintenance investments and EUR 83.3 million on growth investments.

The key growth investments in the first half-year 2014/15 were investments in a high bay warehouse and a new administrative building at the headquarters in St. Johann (AT), the modernization of the glue factory in Hexham (UK), as well as the expansion of the Gagarin (RU) site to include a short cycle press and an impregnation system.

EGGER was able to improve the equity ratio to reach 39.7% (as compared to 39.2% on 30.04.2014).

The EGGER semi-annual report for 2014/2015 is now available at

EGGER Semi-annual results 2014/2015
Turnover increased to EUR 1,163 million (+ 2.3 %)
EBITDA EUR 172.6 million (+ 8.5 %)
Equity ratio 39.7 % / Increased sales volume especially for Decorative Products
EUR 113.6 million investments in the 1st half-year 2014/15

For queries:

FRITZ EGGER GmbH & Co OG
Wood-based materials
Manuela Leitner
Weiberndorf 20
6380 St. Johann in Tirol
Austria
Phone+43 5 0600-10638
Fax+43 5 0600-90638