EGGER Group Closes Financial Year with 4.23 Billion Euros in Sales in a Challenging Environment
Wood-based materials specialist reports significant revenue increase due to strong product demand and record production, combined with price increases necessitated by cost pressures.
ST. JOHANN IN TYROL, AUSTRIA (July 29, 2022)— EGGER Group is closing its 2021/22 financial year in exceptionally challenging times. The ongoing COVID-19 pandemic and crisis in Ukraine are having a massive impact on the global energy and raw materials markets. High product demand is reflected in the financial figures.
EGGER reports a positive financial results and key figures for the financial year 2021/22: Group-wide sales were 4.23 billion euros ($4.3 billion), up 37.4% compared to the previous year, and EBITDA of 877.5 million euros (up 41.0% compared to the previous year) were generated. The EBITDA margin is stable at 20.7% (previous year: 20.2%), and the shareholder’s equity ratio of 50.9% is above the previous year's figure of 42.0%.
"This increase in results shows that, on the one hand, we have coped well with the challenges of the ongoing pandemic and, at the same time, we have made very good use of the opportunities that have arisen in our industry," says Thomas Leissing, Chief Financial Officer and speaker of EGGER Group Management.
The EGGER Group, headquartered in St. Johann in Tyrol (AT), closes its 2021/2022 financial year with sales of 4.23 billion euros.
EGGER has produced record quantities in recent months, meeting strong customer demand. With 10.5 million m³ of wood-based materials and timber, EGGER Group achieved a production peak. Group Management attributed the positive development in this challenging environment above all to EGGER’s approximately 10,800 employees.
The global situation on the raw materials markets is extremely challenging. EGGER is also experiencing a huge increase in energy and transport costs. The increasing demand for wood, the most important raw material for the wood-based materials producer, is leading to additional cost pressure.
Subdued Expectations for the 2022/23 Fiscal Year
The crisis in Ukraine, volatile commodity markets, uncertain energy supplies, ongoing COVID-19 pandemic and rising inflation are factors that dampen EGGER Group's earnings expectations for the coming fiscal year.Even though the outlook is currently gloomy, EGGER is adhering to its company strategy to continue stable growth under its own steam.
New Appointment to the EGGER Group Management
In the current fiscal year, the top managing body of the wood-based materials manufacturer is reshaping itself: Walter Schiegl stepped down from Group Management after more than 20 years and assume the membership role on the Supervisory Board currently held by Michael Egger this fall, thus helping to shape the Group’s future strategic orientation. Michael Egger celebrates his 75th birthday at the end of August, and will then retire from the strategic board. The position of Walter Schiegl as Chief Technology Officer has been assumed by Hannes Mitterweissacher.Additionally, after many years, a member of the Egger family will once again be active in the operational management of the EGGER Group, as Michael Egger, Jr., takes over the marketing/sales agenda from Ulrich Bühler, who will continue to support in an advisory role. Thomas Leissing continues to serve as Chief Financial Officer, but has transferred responsibility for supply chain management to Frank Bölling. Bölling’s appointment creates a four-person Group Management structure, and allows EGGER to respond to the potential and current developments in the area of internal and external supply chain.
The management team of the EGGER Group reports on the results for the year and challenging situations (from left): Thomas Leissing (Chief Financial Officer and Speaker of the Group Management), Hannes Mitterweissacher (Chief Technology Officer), Frank Bölling (Chief Supply Chain Officer) and Michael Egger Jr (Chief Sales Officer).
About EGGER
Founded in 1961 in St. Johann in Tyrol, Austria, EGGER Group is a more than $4.3 billion privately-held, family-owned company that employs approximately 10,800 associates. EGGER is a global leader in the manufacturing of wood-based materials for the furniture and interior design, flooring and building products industries. The company’s extensive, value-added product range includes thermally fused laminate (TFL), laminates, edge banding, raw particleboard, medium density fiberboard (MDF) and MDF mouldings. With 20 production plants worldwide, EGGER Wood Products LLC is the company’s first production facility in North America. The state-of-the-art particleboard manufacturing plant, with lamination capacity, started production in September 2020. The total investment of the project, once completed, will be approximately $700 million and will create an estimated 770 direct jobs.The EGGER Annual Financial Report 2021/2022 is online!