Wood-based panels giant Egger said it intends to resume its growth strategy after posting a 33% rise in annual profits to €236m.
Egger, whose turnover dropped 2% to €1.47bn, said production volume increases, lower raw materials costs and a reduction in fixed costs have had a positive impact on operations in the past year.
“Thanks to a clear strategy and purposeful action, Egger has weathered the economic crisis well and can look to the future with optimism,” it said.
The takeover of 71.5% of Turkish edging manufacturer Roma Plastik, it added, was a positive signal.
Production capacity grew slightly to 6.38 million m³, largely due to the modernisation of the Rion des Landes plant.
Its core western Europe market suffered a 1.7% reverse during the year, while the slump was 7.7% in eastern Europe. Overseas business registered a 42% gain.
The furniture industry customer sector generated 46% of turnover, with the kitchen market performing especially well. Marketing of laminate flooring through DIY stores represented 9% of turnover.
The furniture, interior design and flooring sectors accounted for a €1.26bn turnover, compared to €1.3bn a year ago. Construction materials – OSB, DHF, DFF and N+F products, as well as timber, saw their combined turnover rise to €171m from €144m.
Looking forward, Egger said it was cautiously optimistic but pointed to uncertainties such as low European growth rates, low population growth, inflation fears, the euro crisis, public sector savings packages, weak housing market and raw material price escalation.
“But in the final instance, the outlook has noticeably improved,” said Egger’s group management spokesperson Thomas Leissing.
The group is aiming at a 10% turnover growth in the next year.
