• Reorganisation completed successfully
  • Group sales reach euro 928 million
  • Operative result increases by 17 percent to euro 104.4 million, EBITDA margin reaches 11.2 percent
  • Core East business unit increases EBITDA by more than 30 percent

Munich/Neumarkt, 6 March 2014 - Pfleiderer, one of the leading wood-based panel manufacturers in Europe, can look back on the first year following its reorganisation to a sound sales and earnings performance in 2013. The consolidated sales in 2013 of euro 928.3 million are 2.7 percent below the previous year's value of euro 954.1 million. This means the group has managed to maintain its position in what was once again a difficult market environment. In the Core West business unit (Western Europe region), despite difficult market conditions, Pfleiderer benefited from its reorganised branding and in sales as well as from its competitive production facilities. The Core East business unit (Eastern Europe region) was able to exceed its own expectations in a stable sector environment.

The operative result before interest, taxes, depreciation and amortisation (EBITDA) rose in the business year 2013 by 17.0 percent to euro 104.4 million. This meant an improvement in the EBITDA margin from 9.4 percent to 11.2 percent of sales. This is primarily due to the different measures to increase efficiency and to cost savings achieved thanks to a leaner organisation (all figures are preliminary, not yet certified).

"In the first year following the reorganisation of our Group, Pfleiderer has developed well was how Michael Wolff, Spokesperson of the Pfleiderer GmbH Management, summed up the results today at the company's press conference in Munich. "Through our clear positioning in continued, hard-fought markets, and through numerous measures to increase efficiency, we have sustainably improved the earnings position. We have won back our customers' and business partners' trust in Pfleiderer and made the Group fit for the future.

  Performance of the two business units

The Core West business unit with Pfleiderer Holzwerkstoffe GmbH as the operative business unit achieved sales of euro 608.9 million, 5.1 percent less than 2012, in an overall market that has shrunk yet again and was under significant price pressure. However, at the same time the company managed to increase the operative EBITDA by 5.1 percent to euro 62.2 million. The integrated sales introduced at the beginning of 2013 for all brands and products, together with cross-location supply chain management and the restructured group of plants meant that the company was able to utilise sales potential with customers better, reduce delivery times and organise processes more efficiently.

The Core East business unit with the listed Pfleiderer Grajewo S.A. in Poland, in which Pfleiderer holds around 65 percent of the shares, increases sales in 2013 by around 2.1 percent to euro 349.1 million. The operative EBITDA increased significantly by 30.7 percent to euro 39.6 million, above all as a consequence of more favourable material costs, higher capacity utilisation of the plants and general efficiency increases.

Sound capital base provides sufficient room for manoeuvre

The balance sheet total of the Pfleiderer Group as of 31 December 2013 amounted to euro 889.6 million. The equity ratio reached the sound value of 27.9 percent. The financial debts at the end of 2013 amounted to euro 408.1 million.

Richard Mayer, Commercial Director of Pfleiderer GmbH: "Following the substantial debt relief, Pfleiderer now has a stable and healthy capital base and a marketable debt to equity ratio. We therefore have sufficient room for manoeuvre for the challenges of the market.

Competitiveness strengthened still further

In 2013, Pfleiderer invested euro 59.2 million in modernising its eight plants in Europe. A highlight during the past year was the all-round renewed particleboard plant II in Neumarkt, which with a single investment of more than euro 25 million is the largest and most efficient plant in the Pfleiderer Group. On 18 December 2013, the first panel left the conveyor belt in Plant II. "This investment is a clear declaration of our belief in the Neumarkt location, and with which we secure it long term, says Michael Wolff.

Outlook and prospects

Pfleiderer plans sustained profitable development in the coming years. In particular, opportunities are expected in Eastern Europe, while for Western Europe, in view of the still volatile markets and continued over-capacities, we expect further calming of the market situation.

Michael Wolff: "For Pfleiderer, sustainable profitability has priority over fast growth. Above all, it is important that we set the quality standards and convince our customers again and again through innovative product ranges, a high level of consulting expertise and excellent service. At the end of the day, this is the basis on which to secure and develop Pfleiderer's position as the supplier of the wood processing trade, a partner of the furniture industry and a specialist for projects business.

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