Egger Group loses significant revenue and profit in 2023/2024

The Egger Group looks back on an eventful financial year 2023/2024, characterised by a weak economic environment: The turbulent macroeconomic environment is also challenging for the international engineered wood manufacturer – Egger generated Group-wide turnover of EUR 4.13 bn, 7.1 percent less than in the previous year, as the Group management reported yesterday at a press conference at the headquarters in St. Johann in Tyrol. Against this backdrop, the family-owned company is consistently pursuing its strategy of sustainable and healthy growth.

However, the Austrians were also able to drive forward significant strategic developments. For example, the Group added its 22nd plant in Markt Bibart (DE), acquired a minority stake in the Thai wood-based materials manufacturer Panel Plus and established a pioneering climate strategy with its commitment to the Net Zero target by 2050.  

"We are not entirely satisfied with the results. At the same time, we are proud that we were able to hold our own in this very difficult environment," said Thomas Leissing, Group Head of Finance/Administration and Spokesman of the Group Management. "Our focus is clearly on the future and we are pleased that we have been able to initiate far-reaching strategic developments." Thanks to the very solid financial basis and the long-term strategy, it is possible to take growth steps even in weak market situations and to grow against the market.

The effects of the overall economic slowdown were felt to slightly different degrees in the individual product areas. "People in the vast majority of our markets are suffering from high inflation, the higher cost of living and more difficult construction conditions," says Michael Egger Jr, Group Head of Sales/Marketing. "All of this has led to a weak propensity to consume and a significant decline in building permits - and ultimately to weak demand for our products."

Subdued outlook

The overall economic outlook remains extremely subdued, the Group Management continued. "The determining factors are the weak markets, the resulting price pressure and geopolitical crises such as the ongoing Russia-Ukraine conflict, hyperinflation and the drastic market slump in Argentina as well as the conflict in the Middle East." The sales and earnings expectations for Egger were correspondingly subdued.