The Homag Group’s sales and earnings declined in the Q1 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 HomagGroup’s order intake increased by 7% to Euro 377 million in the first three months of 2024 (previous year: Euro 353 million). The order backlog decreased to Euro 871 million as of March 31, 2024.
The weaker order intake in 2023 is reflected in the HomagGroup’s sales performance in the Q1 2024. Sales decreased by 14% to Euro 347 million, compared to Euro 404 million in Q1 2023. This had an impact on EBIT before extraordinary effects, which fell to Euro 10.8 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.”
The Homag Group is the world's leading provider of integrated solutions for production in the woodworking industry and woodworking shops.
