HOMAG : with expected decline in sales and earnings in the first quarter of 2024

05/14/2024

HOMAG Group with expected decline in sales and earnings in the first quarter of 2024

Schopfloch, May 14, 2024. The HOMAG Group's sales and earnings declined in the first quarter of 2024. This was due to the significant drop in demand last year.

"Business development in the first three months of 2024 is in line with our expectations," explained CEO Dr. Daniel Schmitt. "Although our order intake increased slightly due to a fairly good project and service business, the woodworking industry is still reluctant to invest. As a result, we cannot yet speak of a recovery in demand or a turnaround." The HOMAG Group's order intake increased by seven percent to EUR 377 million in the first three months of 2024 (previous year: EUR 353 million). The order backlog decreased to EUR 871 million as of March 31, 2024 (3/31/2023: EUR 1,036 million).

The weaker order intake in 2023 is reflected in the HOMAG Group's sales performance in the first quarter of 2024. Sales decreased by 14 percent to EUR 347 million (previous year: EUR 404 million). This had an impact on EBIT before extraordinary effects, which fell to EUR 10.8 million (previous year: EUR 27.0 million).

"This decline in sales and earnings is in line with our forecasts," explained Dr. Schmitt. "In order to increase our profitability again, we decided on a package of measures to adjust capacity and increase efficiency back in November 2023, which we are currently implementing. In this way, we are making the HOMAG Group fit for the future and intend to return to profitable growth in the next upturn."

Company Background
The HOMAG Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops. Its 14 specialized production sites, about 20 Group-owned sales and service companies and approximately 60 exclusive sales partners worldwide make the company a unique system provider. Backed by a workforce of over 7,000 employees the HOMAG Group offers its customers solutions for digitized production, based on digital data continuity from point of sale through the entire production process, combined with a comprehensive software suite. In addition, the open ecosystem "tapio" (open Internet-of-Things platform) maps the data flow along the entire value chain of the timber industry. The HOMAG Group has been majority-owned by the Dürr Group since October 2014.

Disclaimer
This press release contains certain statements relating to the future. Future oriented statements are all those statements that do not pertain to historical facts and events or expressions pertaining to the future such as "believes", "estimates", "assumes", "forecasts", "intend", "may", "will", "should" or similar expressions. Such future-oriented statements are subject to risks and uncertainty since they relate to future events and are based on current assumptions of the Company, which may not occur in the future or may not occur in the anticipated form. The Company points out that such future-oriented statements do not guarantee the future; actual results including the financial position and the profitability of the HOMAG Group as well as the development of economic and regulatory framework conditions may deviate significantly (and prove unfavorable) from what is expressly or implicitly assumed or described in these statements. Even if the actual results of the HOMAG Group including the financial position and profitability as well as the economic and regulatory framework conditions should coincide with the future-oriented statements in this press release, it cannot be guaranteed that the same will hold true in the future.

Back to List

Downloads HOMAG Press Pictures (ZIP, 43 MB)