Egger Group predicts market uncertainty
25 January 2024Egger Group closed the first half of its financial year with stable, yet reduced consolidated sales of €2.1bn.
The company reported in December that the six months ended October 31, 20023 saw a 7% reduction in sales compared to a year ago.
Challenges included persistently high inflation, high interest rates, volatile raw material prices and geopolitical crises.
“The first six months of our financial year have been very demanding,” said Thomas Leissing, chief financial officer of 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.”
The purchase agreement with Rauch for the Markt Bibart plant was closed at the beginning of November, shortly after the end of the first half of Egger’s financial year.
Egger says the 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.
It anticipates a further decline in demand, partly due to seasonal effects.
