AUSTRIA – Austria’s Egger Group announced results for the first half of the 2014-2015 fiscal year (May 1st, 2014 – April 30th 2015). The family owned company reported an increase in turnover despite a difficult market situation at the conclusion of the half-year balance of 31 October 2014.

In comparison to the same period of the previous year, turnover increased by 2.3% to EUR 1,163 million (previous year: EUR 1,137 million). In the period EBITDA increased to EUR 172.6 million and Egger’s investments reached EUR 113.6 million (previous year: EUR 102.2 million).

By business units, the Decorative Products department, which sells products for furniture and interior design, reached the largest turnover growth with 3.7%. “All geographical markets, with the exception of Russia, where currency fluctuations and the crisis in Ukraine had an impact, have grown in this product area as compared to the previous year”, says Thomas Leissing, Head of Finances/Management/Logistics, and spokesman of the Egger Group Management.

In Retail Products (flooring), the turnover decreased by 7.9% against the same period of the previous year. The company explained this contraction as a result of a very challenging economic context and of the company’s conscious decision to forgo unprofitable volume business. The turnover of OSB and timber for Egger Building Products also proved to be declining (-5.4%). Decreasing demand and the price pressure for OSB marked these markets.

In the first six months of the 2014/15 financial year, EGGER invested EUR 113.6 million in property, plant, and equipment as well as in tangible assets (previous year: EUR 102.2 million). Out of this amount, EUR 30.3 million were spent on maintenance investments and EUR 83.3 million on growth investments. The key growth investments in the first half-year 2014/15 were investments in a high bay warehouse and a new administrative building at the headquarters in St. Johann (AT), the modernization of the glue factory in Hexham (UK), as well as the expansion of the Gagarin (RU) site to include a short cycle press and an impregnation system.

The company management looks confidently towards the second half-year of its financial year. “Thanks to the continued investments, we have more than 17 modern, environmentally friendly and safe plants,” says Thomas Leissing. Due to the positive development in Western Europe and the key markets of Eastern Europe, EGGER is expecting for the entire financial year 2014/15 a similar turnover growth as the one registered in the first half-year.