Stark Group announced its financial results for 2022/23. The Group delivered record-high net sales of more than Euro 7 billion. Adjusted EBITDA was a strong Euro 456 million and almost on par with the previous record-setting year.
Following several years of extraordinarily high activity levels, the financial year 2022/23 proved more unpredictable. The first half of the financial year was characterised by strong growth and was followed by declining markets in the second half.
The 17.7% net sales growth was particularly driven by the Group’s acquisition of one of the United Kingdom’s largest builders’ merchant and distributor chains in February 2023. A firm grip on managing costs and leveraging scale benefits secured an EBITDA that was close to the record-setting previous year.
CFO Sisse Fjelsted Rasmussen said: “We are delivering a strong result in a year that has been difficult to navigate in many ways. Within the same year, we have seen both extraordinarily strong and relatively weak activity levels. Geopolitical turmoil, the energy crises and higher inflation and interest levels started to impact construction activity levels in the second half of our financial year, as activity failed to pick up after the winter season. Our focus is on ensuring a financially sound company that is ready to seize the growth opportunities that await when the shock effects subside.”
In February 2023, Stark Group acquired one of the UK’s largest builders’ merchant chains from French company Saint-Gobain Building Distribution Ltd. The UK business contributed with net sales of Euro 1.2 billion and EBITDA of just Euro 31 millio in the year’s results for 5 months of the financial year.
Stark Group is a leading business-to-business merchant and distributor of heavy building materials for the construction industry in Europe, with a strategic focus on serving professional builders from its more than 1,150 branches.
