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The EGGER Group, headquartered in St. Johann in Tirol, Austria, closed the first half of its 2023/2024 financial year (reporting date 31 October 2023) with consolidated sales of EUR 2.1 billion ($2.3 billion USD). This was 7 percent down compared with the previous year.
Officials say 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.
"The first six months of our financial year have been very demanding,” says Thomas Leissing, Chief Financial Officer EGGER Group and Speaker of the Group Management. “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."
Outlook for the Second Half-Year Uncertain
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. The wood-based material manufacturer 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. EGGER is convinced that it can fully utilize the advantages of its sustainable business model, its strong financial base and the production advantages of its state-of-the-art plants.
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