AUSTRIA – On 31 July 2014 during the annual press conference at the headquarters in St. Johann in Tirol, the EGGER group presented the results of the 2013/14 financial year that ended 30 April.

Turnover increased by 1.7% to 2.22 billion euros in a challenging market environment. By the company’s segments, Building Products and Decorative Products reported an increased turnover, while a decrease was registered in Retail Products. EBITDA of the 2013/14 financial year increased by 3% to EUR 312 million euros as investments of 207 million euros in existing plants were undertaken.

The increase in turnover of 1.7% compared to the previous year was mainly due to turnover growth in Great Britain, while in the OSB sector it was due to the growth of the OSB plant in Radauti (Romania), which started operations in 2012. These areas compensated the partly currency-related decline in turnover in Russia and in the flooring sector.

Raw material supply remains a main challenge for EGGER. The average wood purchasing price increased, following stabilization during the 2012/13 financial year, to a new all-time high during the 2013/14 financial year. In order to respond to this situation, EGGER continues to count on backward integration with its own forest management and wood recycling companies, as well as short rotation plantations, while it invests in harvesting and logistics systems. Despite short-term relaxation due to the mild winter, EGGER expects wood prices to increase once more starting in the autumn.

In the chemical sector (urea, methanol, melamine, glue, impregnation resins), the 2013/14 financial year saw a slight decrease in price compared to the previous year. A large part of the glue and impregnation resin demand is already covered through own glue factories in Wismar (DE), Radauti (RO), and Hexham (UK). In Hexham, EGGER is now investing in a comprehensive modernization of the existing resin plant.

With maintenance investments and continuous servicing Egger was able to increase production volume compared to the previous business year with 7.5 million m3 (257.8 million cubic feet) of rawboard (chipboard, MDF and OSB) including sawn timber (2012/13: 7.3 million m3).