Thursday, January 21, 2016
As recently announced, the entire EGGER Group was able to increase sales by 2.7% during the first half of the fiscal year 2015/16 (31st of October) to reach 1.19 billion Euro (as compared to the corresponding previous half-year). The EBITDA, at 172.2 million Euro, was maintained at a similar level to the previous year’s high of 172.6 million Euro. The flooring division stood out with an above-average positive development.
The EGGER Retail Products recorded a revenue plus for the first half of the current fiscal year: Despite a lastingly difficult market situation, the revenue of the corresponding previous half-year was exceeded by 3.9%. Volumes did decrease, however, the adopted strategy of withdrawing from low-profit flooring markets and concentrating on higher value product groups has already brought results and will continue to be pursued in the future. In the case of flooring products, increasing sales volumes are forecasted in particular in Central Europe – especially in Romania and Hungary – but also in Italy, Spain and the UK. The market in North Western Europe and France should remain stable to slightly decreasing. In the medium term, Russia is expected to continue to grow, but in the short term the market remains difficult.
Positive development in the Furniture and Interior Design division
A sales increase of +3.9 % was reached by the EGGER Group also in EGGER Decorative Products (Furniture and Interior Design). This increase is primarily due to the markets in the UK, Germany, Scandinavia and Spain. There was a regress in the Turkish and Russian markets, affected by political tensions. In the EGGER Building Products division, the sales volume of OSB increased, but lower prices led to a sales decrease of -5.0 %. Given the current overcapacities on the OSB market, an improvement of the demand and turnover situation is not expected by EGGER in the short term.
Tags: egger, fiscal year 2015/16, flooring technology, positive effect
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