Egger records 5% growth in half-year profits

Egger Group has posted a 5% growth in earnings before interest, tax, depreciation and amortisation of €127m for the six months ended October 31.

Group sales rose 12% to €975m, while the profit margin fell slightly to 13% due to cost increases, particularly for raw materials which could not be fully passed on.

Sales of decorative wood panels increased 18% to €776m, with furniture and interior design business growing in nearly all regions.

Egger’s new building products division, comprising lumber and OSB, expanded during the period to make up 8% (€82m) of total group sales.

“With the commissioning of the new OSB plant in Radauti, Romania in early 2012, the importance of structural wood products within the group will continue to increase,” Egger said.

Egger’s retail products division, which focuses on flooring, recorded a 4% sales growth to €169m, or 17% of total sales.

“The utilisation of the laminate flooring industry as a whole is still not satisfactory and is characterised by high excess capacity.”