Hard landing

Investments impacted EBT

Mayr-Melnhof Holz and the Pfeifer Group, which both invested in extensive expansions in 2023, were hit particularly hard by the decreases. Mayr-Melnhof Holz invested around €200 million in its Leoben site and the Pfeifer Group acquired Pölkky in Finland, probably for a similar sum. As a result, the EBT of the companies analyzed by the Holzkurier was negative for the first time since 2012.

2023 was a difficult year, burdened by high depreciation in addition to a weak market. Nevertheless, it is still manageable thanks to the extraordinarily high annual profits of €790 million in 2021 and €743 million in 2022. The cumulative average profit of all six companies analyzed was €260 million a year in the period from 2014 to 2023.

As in previous years, Binderholz leads the 2023 EBT ranking with €32.9 million – despite a 93% decrease compared to 2022, when the company still recorded €440 million in EBT. Holzindustrie Maresch** follows in second place with €16.5 million (-74%), and Johann Offner Holzindustrie*** ranks third with €8.5 million (-76%). Hasslacher Norica Timber still generated €2 million last year, despite a 97% drop. Meanwhile, EBT of Mayr-Melnhof Holz (-€50 million) and the Pfeifer Group (-€137 million) were clearly in the negative, with Mayr-Melnhof Holz recording year-on-year losses of €195 million and the Pfeifer Group’s EBT plummeting by over €400 million.

Sawmills fared better in 2023

The operating margin of the six analyzed companies fell from 13% in 2022 to -3% in 2023, with an annual result of -€146 million. Sales decreased on average by 22%. Companies, which only operate sawmills, such as Maresch** and Offner***, performed better than those with extensive further processing. The sawmills recorded operating margins of 8% (Offner) to 9% (Maresch), while Binderholz, as a highly integrated company, only achieved an operating margin of 2%. Hasslacher reported 0%, while Mayr Melnhof Holz (-6%) and the Pfeifer Group (-16%) recorded clearly negative operating margins.

More equity than ten years ago

Despite the many challenges, the equity ratio of the analyzed Austrian companies remained very high at an average of 50%. Maresch Holzindustrie, in particular, stands out with an equity ratio of 86%, despite a 2% “decrease”. Even Binderholz, the most expansive wood products company in Europe, had an equity ratio of 45% in 2023, which corresponds to an increase of 8% compared to ten years ago.

The expansions and investments of the past few years are reflected in Binderholz’s liabilities, which remained constant at €1.07 billion in 2023. Liabilities worth €717 million have a term of more than one year.

Number one bigger than the following three

With €2.1 billion in sales generated in 2023, Binderholz was bigger than the Pfeifer Group (€833 million), Mayr-Melnhof Holz (€765 million) and Hasslacher Holding (€504 million) combined. Binderholz was able to limit the drop in sales to 14%, while the Pfeifer Group (-32%), Mayr Melnhof Holz (-28%) and Hasslacher (-18%) recorded much greater losses.

Pölkky in Pfeifer’s balance sheet for the first time

At the Pfeifer Group, staff costs rose particularly sharply in 2021 and 2023. Depreciation increased as a result of the expansions and investments made in 2022 and 2023. Long-term liabilities rose from €4 million in 2022 to €62.5 million last year, which is due to the acquisition of the four Pölkky sites in Finland. In 2023, the acquired company was integrated into the group. According to the balance sheet, the purchase price for Pölkky Oy has not yet been finalized, as earn-out clauses based on the 2024 and 2025 financial years must be fulfilled. There is also a legal dispute going on in connection with the acquisition of shares.