The EGGER Group, headquartered in St. Johann in Tirol Austria, closed the first half of its 2023/2024 financial year (reporting date October 31. 2023) with consolidated sales of 2.1 billion euro, down 7 per cent compared to the previous year.
The business environment was challenging due to persistently high inflation, high interest rates, volatile raw material prices and geopolitical crises. In view of this situation, the wood-based material manufacturer is satisfied with its stable development in the first half of 2023/2024.
Thomas Leissing, chief financial officer EGGER Group and speaker of the group management said: "The first six months of our financial year have been very demanding. Persistently high inflation in many regions, stricter capital requirements for home purchases and global geopolitical uncertainties have led to a general weakness in consumption and a decline in demand in almost all markets.
“Thanks to the efforts of our more than 11,000 employees, we are nevertheless able to report group-wide sales that decreased only slightly. We are particularly pleased that we could successfully initiate strategically forward-looking decisions in the first half of 2023/2024, such as the acquisition of our 22nd production plant in Markt Bibart, Germany and the EGGER Group's climate protection commitment to the Net Zero 2050 target."
EGGER Group adopts its climate strategy
The EGGER Group adopted its climate strategy, which sets Net Zero 2050 as its ultimate goal. EGGER is committed to reducing its climate-impacting greenhouse gas emissions in line with the Paris Climate Agreement. Comprehensive measures in numerous areas of the company are on the strategic agenda, and pioneering interim targets have been set for the period up to 2030.
The cornerstone for another milestone in EGGER's history was laid with the acquisition of the aforementioned chipboard plant in Markt Bibart. With this additional location in the core market of Germany, the EGGER Group now has 22 plants.
Outlook for the second half-year fraught with uncertainty
The overall economic outlook remains subject to great uncertainty, which is why EGGER is looking at the second half of the 2023/2024 financial year with subdued earnings expectations. EGGER anticipates a further decline in demand, partly due to seasonal effects. However, EGGER believes it is well equipped not only to successfully weather the current macroeconomic downturn, but also to emerge from it stronger than before. The family company can rely on the commitment of its more than 11,000 qualified and motivated employees and the continued successful cooperation with its customers and partners worldwide.
