EGGER shows a slight increase at the half year mark
Semi-annual turnover increased by 2% to EUR 1,137 million
The EGGER Group based in St. Johann in Tirol was able to slightly increase its consolidated semi-annual turnover as of 31st October 2013. In the period from May to October 2013, revenues grew to EUR 1,137 million (previous year: 1,114 mill. Euros). According to the semi-annual financial report of the wood-based material manufacturer, EBITDA amounted to EUR 159 million and was thus some 2% higher compared to the same period last year. The profit margin was kept stable compared to the same period last year at 14%. With an improvement in the equity ratio to 38.6% (30th April 2013: 35.3%) EGGER highlights its good credit rating as an international industrial group.
“Our higher turnover and improved results are due on the one hand to increased production at the OSB plant in Radauti, Romania and, on the other hand, to higher quantities at the chipboard plants in Hexham (UK) and Radauti (RO) as well as the Roma Plastik edging plant (TR),” explains Thomas Leissing, Spokesman for EGGER Group Management. “Notwithstanding the ongoing uncertain development of the sales and raw material markets, we expect the growth of turnover for the 2013/14 business year overall to be similar to the first six months.”
Biggest turnover increase in Building Products
EGGER manufactures in seven countries with 17 plants across Europe. Around 7.5 million cubic metres (264.9 million cubic feet) of wood-based materials are produced and distributed around the world with approximately 7,200 employees. The geographic focus is on Europe, where Western Europe accounts for 58.5% of turnover while Eastern Europe and Russia generate 35.6%. The overseas share of turnover is 5.9%.
Of the three Group divisions, EGGER Decorative Products (furniture and interior design) at 72.5% generates the largest share of turnover, coming in at EUR 893 million halfway through the 2013/14 financial year. EGGER is reporting growth in Italy, Great Britain and the overseas business with products for furniture and interior design. Notwithstanding the difficult economic situation, turnover was also increased in France and Spain compared to the same period last year.
The EGGER Retail Products division (flooring) with EUR 175 million contributes a share of 14.2% to total turnover, therefore coming in at 7% below the level of the previous year. This decrease is mainly due to significant excess production capacities and the resulting, very high price pressure.
On the other hand, the turnover of the EGGER Building Products division (OSB and sawn timber) increased by 30% compared to the same period last year. This was achieved mainly thanks to increased production at the OSB plant in Radauti (RO). The share contributed to group turnover by this youngest EGGER division has therefore increased to approximately 13.3%.
EUR 102 MILLION INVESTED
In the first six months of the 2013/14 business year, EGGER invested EUR 102 million in property, plant, and equipment as well as in tangible assets (previous year: EUR 76 million). Out of this amount, EUR 31 million was spent on maintenance investments and EUR 71 million on growth investments.
The most important growth investments in the first half of 2013/14 were for the expansion of the plants in Radauti (RO) and St. Johann (AT). Investments were made in a new biomass plant in Radauti. A new short-cycle lamination line as well as a high bay racking warehouse and a new administration building are currently under construction in St. Johann. Investments were also made in the modernisation of the resin plant at the site in Hexham (UK) as well as the expansion of the plants in Gagarin (RU), Brilon (DE) and Gifhorn (DE).
EGGER Semi-annual results 2013/2014Turnover increased to EUR 1,137 million (+ 2%)
EBITDA EUR 159 million (2%)
Equity ratio 38.6% / Increased sales volume especially for OSB and sawn timber
102 million euros invested
For queries:
FRITZ EGGER GmbH & Co OGWood-based materials
Manuela Leitner
Weiberndorf 20
6380 St. Johann in Tirol
Austria
Phone+43 5 0600-10638
Fax+43 5 0600-90638