Homann Holzwerkstoffe GmbH proved its crisis resilience and achieved record earnings before interest, taxes, depreciation and amortization (EBITDA) in the financial year 2020 despite a slight decline in revenues due to the pandemic. Although revenues fell by 4% to Euro 262.8 million, operating EBITDA rose from Euro 47.1 million to Euro 49.4 million. The EBITDA margin consequently improved from 17.1% to 19.1%.
At the bottom line, Homann Holzwerkstoffe GmbH generated consolidated net income of Euro 19.1 million, compared with Euro 22 million in the previous year.
Adjusted for one-time effects from exchange rate fluctuations, consolidated net income was up from Euro 21.5 million to Euro 24.3 million. As a result, equity increased noticeably to Euro 57.9 million (December 31, 2019: Euro 45.1 million). As total assets picked up as well, the equity ratio improved only slightly to 18.7% (December 31, 2019: 18.3%).
Operating cash flow rose from Euro 40.9 million in 2019 to Euro 43.3 million in the reporting year. The positive operating performance and the decrease in net debt led to a decline in leverage (net debt to operating EBITDA) to 2.3x (December 31, 2019: 2.8x).
Fritz Homann, Managing Director of Homann Holzwerkstoffe GmbH: “Our business model enabled us to achieve a record result despite the adversities in the market, even exceeding our internal planning for 2020. While the furniture industry has suffered from the restrictions imposed on public life, online retail is booming and the trends towards working from home, home schooling and cooking at home are increasing the demand for new furniture and kitchens.
“The financial year 2021 has started well, we are in a solid position and we are optimistic about the future. As part of our growth strategy, we will start construction of our fourth plant near Vilnius in Lithuania in the summer of 2021, with production there scheduled to begin in the second half of 2022. Lithuania is one of the most important locations for the furniture industry in Eastern Europe and also a very densely forested country. This gives us both access to raw materials and proximity to our customers.”
Headquartered in Munich, Homann Holzwerkstoffe GmbH is a leading supplier of thin, high-quality finished medium-density and high-density fibreboards (MDF/HDF).