High growth of the EGGER Group semi-annual results
Our group managed to close the first half of the 2017/2018 financial year with a consolidated turnover of EUR 1,32 billion. According to data published on the October 31st, we recorded an 11,1% increase comparing to last year. We are entering the second half of the year with employment rate at the level of over 9 000 employees and forecast of further company development.
In the last two quarters of the current financial year, our Group has definitely benefited from favourable economic conditions and the growing demand for renovation and construction materials. The company has managed to increase its turnover both on European markets and on other continents. The growth has been visible in all segments of products. The highest increase in turnover (11% up) was recorded in the area of sales of EGGER decorative materials line, including products for furniture and interior design. This segment has been developed the most in Central and Eastern Europe, where 76% of all purchase transactions have been conducted.
The launch of our new collection of decorative materials 2017-2019 on global markets had an extremely positive effect on the segment of decorative products. Small losses related to currency exchange rate have been recorded only in Great Britain. Despite the difficult market conditions still present in the segment of floors manufactured under the EGGER brand (laminate floors, Comfort and Design floors), we have noted 6,4% higher turnover comparing to the same period last year. In the segment of EGGER construction products, we can also boast an increase in turnover of 9,2%, which has been achieved despite higher raw material costs and problems with their availability. OSB products have also been popular in global markets. The largest increase in this segment was observed in Eastern Europe. The sale of timber products has increased in Germany and in some non-European markets.
Intensive investment activity
The first half of the 2017/2018 financial year abounded with important events and was characterized by the significant development of the company. In July 2017, we acquired chipboards and MDF boards production plant in Concordia, Argentina, and announced the Greenfield investment project in Lexington in the United States. In the last half of the financial year, we have started the construction of the nineteenth EGGER Group production plant in Biskupiec, which is also the first Polish factory of the company. Furthermore we invested in energy in France and in logistics and automation projects in Austria and in Germany.
Positive outlook for the second half-year
“We are pursuing a consistent growth strategy, committed to moderation, and making sure that every step the organisation makes is viable. A solid financial basis supports long-term supply relationships with customers and suppliers, as well as further stable growth based on our own performance” – said Thomas Leissing, spokesperson of the EGGER Group Management.
The EGGER Group expects a stable development of its business activity for the second half of the financial year 2017/2018. Given the positive situation in Western Europe, the new plant in Argentina, and the strategic move of production volume from weaker regions to alternative markets, EGGER is expecting to increase turnover and maintain stable results throughout the Group for the financial year 2017/2018.