The EGGER Group, headquartered in St. Johann in Tirol (AT), closed the first half of its 2022/2023 financial year (reporting date 31 October 2022) with consolidated sales of EUR 2.26 billion (+14.0% as compared to the previous year). However, the highly volatile general conditions are also a challenge for the wood-based materials manufacturer: It is forced to register a noticeable decline in demand. The outlook for the second half of the year is reserved.
The first half of the 2022/23 financial year was marked by a multitude of crises and uncertainties, both economically and politically. Thomas Leissing, Chief Financial Officer EGGER Group: "The very strong results of the previous year are due to the extremely high demand following the cocooning effect that resulted from the Corona crisis, and can therefore be classified as exceptional. This boom in demand has noticeably decreased since spring 2022. In the meantime, we are seeing a decline in demand in almost all markets. At the same time, we continue to face a multitude of uncertainties."
Demand noticeably declined
During the first half-year 2022/23 we were able to generate sales of EUR 2,255.4 million (+14.0% as compared to the first half-year 2021/22) and an EBITDA of EUR 353.7 million (–26.1% compared to the previous year). The EBITDA margin is 15.7%, the shareholder’s equity ratio is at the high level of 51.2%. The increase in sales is primarily due to the sharp rise in costs for raw materials, energy and logistics, which led to higher sales prices. The many uncertainties and crises and their effects on the energy and raw material markets, as well as massive inflation and the resulting loss of purchasing power, have caused a noticeable decline in demand.
Reserved outlook for second half-year
The overall economic outlook remains fraught with uncertainty for the coming months and will continue to be strongly influenced by the challenges on the energy and raw material markets. This means that earnings expectations for the second half of the 2022/23 financial year are also reserved.
The EGGER Half-Year Financial Report 2022/23 is online.