Egger: turnover plus 10 percent

The Egger Group, with headquarters in St. Johann in Tirol (AT), has completed the first half of its financial year 2016/2017 (reference date the 31st October 2016) with a consolidated turnover of EurR 1.19 billion. With a stable turnover development, the Ebitda increased by 10.1 percent on the previous year to reach Eur 189.6 million. The Ebitda margin increased to 15.9 percent (previous year: 14.4 percent).

The Egger Group Management is generally happy with its first half-year developments. “The general economic situation was very unstable in the last half-year. Nevertheless, as compared to the previous year, we were able to grow in almost all relevant geographic markets in our main product segment, Furniture and Interior Design, which represents 75 percent of our total turnover. The big exception is the UK, where uncertainty following the Brexit vote led to a devaluation of the currency,” explains Thomas Leissing, Head of finance/administration/logistics and spokesperson of the Egger Group Management.

The UK turnover increased by +4.8 percent in British Pounds, but the negative currency effects caused a turnover regress in Euros of – 9.2 percent. Conversely, the turnover in the decorative segment developed particularly well in Russia (+7.1 percent) and Romania (+7.8 percent), but also in markets such as Spain and Portugal (+8.0 percent) and overseas (Asia +19.4 percent and Japan +12.4 percent). We can also see positive developments in France, Italy, and particularly Austria. In Egger’s largest market, Germany, the development was stable as compared to the same period last year (+0.5 percent).

For Egger Retail Products (Flooring), the turnover for the same period last year also remained stable (-0.1%) despite a difficult market situation. The strategy to consciously forego unprofitable volume deals continues to be successful and will be implemented further during the second half of the financial year.

The turnover development of Osb and timber in the Egger Building Products Division also remained stable (+0.4 percent). The Osb products business continues to be marked by overcapacities in the market with corresponding price pressures. Nevertheless, several markets in Eastern Europe (Romania, Czech Republic and Slovakia) and overseas have developed very well.