Monday, August 3, 2020
Amidst pandemic EGGER group happily closes the financial year 2019/2020 with sales of EUR 2.83 billion (-0.4 %) and EBITDA of EUR 424.4 million (-0.1 %). The close of EGGER group’s financial year on April 30, 2020 comes at a particularly challenging time. Nevertheless, the wood-based material manufacturer is reporting eleven successful months and thus a stable business development overall: The Group’s sales and earnings are exactly the same as in the previous year. Once again EGGER has invested a record sum of EUR 531.4 million in existing and new plants. The family-owned company with its solid financial basis, global presence, state-of-the-art facilities and high employee orientation considers itself well positioned to overcome the corona crisis.
“We are satisfied with our business development from May 2019 to March 2020. We have responded quickly to the challenges of the corona pandemic and the restrictions imposed to fight it. Their economic effects are only included in our 2019/2020 financial year for one month,” explains Thomas Leissing, Spokesman for the Group Management responsible for Finance, Administration and Logistics.
Overall, EGGER can report a stable development of its key figures for the financial year 2019 / 2020: The Group generated revenue of EUR 2,831.5 million (-0.4 % on the previous year) and EBITDA of EUR 424.4 million (- 0.1 % on the previous year). The EBITDA margin was 15.0 %, the same as in the previous year. At 37.9%, the shareholder’s equity ratio is higher than in the previous year (36.8%).
Regionally different effects of the crisis
After a very positive business development in the first eleven months, the effects of the corona pandemic have slightly dampened this trend. There were regional differences in the economic impact due to differences in the spread of the virus and the measures taken nationally to combat it, says Ulrich Bühler, EGGER Group Management Sales & Marketing:
“We reacted very quickly to the crisis. First and foremost, we have taken measures to protect our employees and partners. In addition, our top priority was to be a reliable partner for our customers even in times of crisis. We are proud that we were able to supply them consistently”. Our global presence and the respective regional procurement of raw materials have proven to be great advantages. Digital services and communication channels were also increasingly used.
While sales in Western Europe declined over the entire 2019/2020 financial year, sales in Central Europe increased slightly and in the Eastern European, American and overseas markets in some cases substantially, compared to the previous year. The Division Decorative Products Centre generated in the last financial year a turnover of EUR 886.6 million (+ 2.8 % on the previous year). The Division Decorative Products West, with plants in the UK and France, generated sales of EUR 663.2 million, down -7.1% on the previous year. The turnover in the Division Decorative Products East rose by +5.8 % to EUR 886.5 million. The latest division, Decorative Products Americas, increased its turnover by + 14.2 % to EUR 137.3 million. In addition to the Concordia site in Argentina, this already includes market development activities in North America for the plant under construction in Lexington, NC.
The Flooring Products Division, with sales of EUR 441.0 million, is -1.3 % slightly below the previous year. The Other segment includes the sawmill in Brilon (DE), smaller independent divisions and Group functions and generated a revenue of EUR 173.7 million. The development of earnings in the divisions also varied. In April 2020 the results were consistently lower. The Decorative Products West Division was particularly affected by the tough lockdown measures and temporary plant shutdowns in the UK and France. Overall, however, the decorative divisions and also the Flooring Products Division were even able to exceed the results of the previous year.
Tags: 2019/2020, Covid-19, egger decorative collection, EGGER Group, europe, Financial Report, pandemic, woodworking and manufacturing, woodworking machinery
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