Thursday, July 27, 2017
EGGER Group, the wood-based material manufacturer again set new records in its annual results for 2016/2017. The sales increased during the business year 2016/2017 by +1.7% to reach EUR 2,384.8 million. The EBITDA increased by +4.0 % to reach EUR 363.7 million. The EBITDA margin exceeded previous years’ levels by 15.3 %. The family business continues to enjoy a good credit rating thanks to a high equity ratio of 37.5 %. The quantity of rawboards, incl. timber, increased to 7.9 million m3 (+3 %), which means the full utilisation of all primary production capacities. On average last year, EGGER employed 8,145 employees group-wide.
Positive sales developments were achieved and the market share was developed in almost all regions across the world. Despite uncertainties following the Brexit vote, the overall development in Great Britain over the past twelve months was positive. Diminished sales and earnings are due exclusively to a weaker British Pound. The tense political and economic situation in Turkey led to lower local sales of edging, which, however, was largely compensated through exports.
Under the EGGER motto “Sustainable international growth”, investments in property and intangible assets as well as acquisitions of EUR 259.2 million were posted during the business year 2016/2017 (previous year: EUR 302.7 million). Out of this amount, EUR 64.3 million was spent on maintenance investments and EUR 194.9 million on growth investments.
Large upcoming investments
EGGER will be busy taking big steps towards further growth during the current business year 2017/2018 and beyond. On the 17th of July, the EGGER Group announced it is taking over the plant Concordia, Argentina, from the Chilean Masisa S.A. This will be the first time EGGER is represented with a production site outside Europe.
The already announced new construction of a chipboard plant in Biskupiec, in the north of Poland, is due to start on the 85 ha site in the next few weeks. The new wood-based materials plant will use the latest technology and will be equipped with a raw chip capacity of 650,000 m³, lamination and impregnation units.
Another greenfield project is currently in the early planning stages. Together with the Governor and representatives of local authorities, EGGER has recently announced its intention to build a wood-based materials plant in Lexington, North Carolina. The project implementation is scheduled to take place in several stages, the first being the construction of a chipboard plant with coating capacities.
Tags: +1.7%, 2016-2017, 384.8 million, business year, ebitda, EGGER Group, EUR 2, high equity ratio of 37.5 %, incl. timber, Positive sales development, quanitity, rawboards, sales increased, stable financial year
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