"We are pleased that we were able to conclude another successful financial year, especially in the current challenging macroeconomic situation. The last few years have been exceptional for our industry. Demand for our products was extremely high during the pandemic thanks to the accompanying cocooning effect. We are now seeing a return of our key figures to a stable and sustainable level in the long term," said Thomas Leissing, Chief Financial Officer and Speaker of the Group Management, at the annual press conference at the headquarters in St. Johann in Tirol (AT).

For the 2022/2023 financial year, EGGER reports an increase in revenue, but a decline in earnings: Thus, a Group-wide turnover of EUR 4,449.7 million (+5.1% compared to the previous year) was generated. EBITDA amounted to EUR 602.5 million (-31.3% compared to the previous year) and the EBITDA margin was 13.5% (previous year 20.7%). Thus, after the extraordinarily high demand experienced during the pandemic, the result is settling at a level that is sustainable in the long term. The equity ratio remains at a high level of 45.9%.

"Our stable financial basis as well as our approach of sustainable and responsible management, which we have always lived by, provide us with stability even in a challenging situation. We were also able to successfully reach a decisive growth milestone in the past financial year. Thanks to the majority shareholding in the Italian wood-based material manufacturer SAIB, the EGGER Group's 21st plant is located in Caorso (IT)," says Leissing.

Investments under the sign of sustainability
EGGER stands for effective and sustainable production and was able to implement numerous investment projects that further underpin this strategy. In the past financial year 2022/2023, investments including acquisitions in the amount of EUR 540.6 million (previous year: EUR 293.6 million) were made. The investment focus was on the areas of circular economy, renewable energy and optimised logistics as well as further refinement capacities. Already, 65% of the wood used by EGGER comes from recycling or by-products of industrial wood processing steps, such as wood chips or sawdust. 70% of the energy used is obtained from renewable sources. The wood-based material manufacturer is pursuing the goal of increasing both shares even further in the future. "As a manufacturing company, EGGER feels it has a responsibility to actively contribute to climate protection and aims to continuously reduce its own climate-impacting emissions. These ambitions will be clearly expressed in future investment projects," says Frank Bölling, Chief Supply Chain Officer.

An important lever for climate protection lies in the EGGER products themselves. The renewable resource wood binds CO2 during its growth and over its entire life. In the 2022/2023 financial year, the EGGER Group produced 9.6 million m³ of wood-based materials and timber - this quantity stores 6.4 million tonnes of CO2. "In the past financial year, we were able to utilise our primary production facilities well despite challenges in our supply chains. The general increase in demand for our most important resource, wood, is putting us under increasing pressure and once again underlines the relevance of cascading wood utilisation, of which we have always been convinced," Hannes Mitterweissacher, Chief Technology Officer, describes the current situation.

Different developments in the product categories
Developments in the individual product categories varied in the past financial year. "The market situation is completely different than in the past boom years. Effects on demand result in particular from the increased cost of living and the decline in building permits," says Michael Egger Jr., Chief Sales Officer. In the 2022/2023 financial year, the Decorative Products division (products for furniture and interior design) generated unconsolidated revenue of EUR 3,783.4 million (+8.9% compared to the previous year). With unconsolidated revenue of EUR 511.1 million, the Flooring Products division also slightly exceeded the previous year by +0.8%. In both product categories, the revenue increases are mainly explained by cost-related price increases. In the Building Products division (building products such as OSB and timber), unconsolidated revenue fell by -18.7% to EUR 434.8 million. The market environment for building products is challenging due to the decline in new construction.
Full details of the 2022/2023 financial year can be found in the annual financial report at www.egger.com/credit-relations. 

Subdued expectations for the 2023/2024 financial year
The ongoing crisis in Ukraine, volatile energy and raw materials markets, persistently high inflation in key sales regions and further impending geopolitical crises, as well as the enormous challenges of climate change, are determining elements in the overall economic outlook. EGGER faces additional challenges from the currency development in Argentina. The outlook for revenue and earnings development of the EGGER Group is subdued. "It is extremely difficult to make a forecast for the coming months. Nevertheless, we are convinced that we have set the right course with our strategic orientation of long-term growth based on our own performance. We continue to focus on product diversity, market diversification, stable relationships with our partners and constant innovation for our customers. In addition, we will focus strongly on further improving our sustainability performance," says Thomas Leissing.
The most important part of the family business is and will remain the employees. EGGER Group Management united: "Our great thanks go to our now more than 11,000 employees, whose daily commitment makes the successful development of our company possible in the first place. We are convinced that together we will successfully master the challenges ahead."

Transparent communication of sustainability performance
At the same time as the Annual Financial Report, the EGGER Group publishes the current Sustainability Report (non-financial statement) at www.egger.com/sustainability. It contains the Group's strategy, objectives and performance with regard to economic, ecological and social sustainability. With this report, EGGER discloses its strategic sustainability goals and underlines its clear commitment to sustainable, generation-oriented management and to transparent communication throughout.

EGGER Group closes financial year with revenue of EUR 4.45 billion in an extremely volatile environment
→ Turnover: EUR 4.45 billion (+5.1%)
→ EBITDA: EUR 602.5 million (-31.3%).
→ 9.6 million m³ wood-based materials incl. timber
→ EUR 540.6 million for growth and maintenance investments (incl. cash out acquisitions) with a focus on the circular economy, renewable energy, logistics and refining capacities

→ Overall economic slowdown dampens demand
→ Key figures return to stable long-term levels
→ Outlook 2023/2024: Subdued revenue and earnings development for the EGGER Group
→ Publication of the new sustainability report at www.egger.com/sustainability