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February 25, 2021

Homag Group reports 13% drop in sales in 2020 due to corona pandemic

Homag Group reports 13% drop in sales in 2020 due to corona pandemic

The Homag Group closed the 2020 financial year with a considerable drop in sales due to the challenges in connection with the corona pandemic.

"We continued to develop the company during the Corona crisis and strengthened business in China and in the solid wood sector in particular through acquisitions," emphasizes CEO Ralf W. Dieter.

According to preliminary figures, the Homag Group's incoming orders fell by 10.4 percent to EUR 1,093 million in the 2020 financial year (previous year: EUR 1,220 million).

Sales fell by 13.1 percent to EUR 1,112 million (previous year: EUR 1,279 million).

In contrast, the order backlog as of December 31, 2020 was EUR 581 million, up on the previous year's reporting date (December 31, 2019: EUR 546 million).

The Homag Group achieved an operating EBIT of EUR 27.0 million (previous year: EUR 82.7 million).

"After a good start to the year, we recorded a significant decline in orders in the second quarter due to the restrictions and uncertainties due to the corona pandemic," explains Dieter. "In the second half of the year and especially in the final quarter, demand picked up again noticeably."

In order to maintain close contact with customers despite the lack of trade fairs and fewer personal contacts, the Homag Group is increasingly using digital formats. For example, the in-house exhibition Homag Treff 2020 was set up as a hybrid format . At the global event, customers could take part in over 500 formats live on site in small groups or online via a digital platform for 60 days.

The CEO is optimistic about the future: “Many of our customers benefit from the fact that people are spending more time at home as a result of the pandemic and investing in living, for example in new furniture or kitchens. We also expect growth impulses as a result. "

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