Solid business result despite pandemic

Despite the difficult conditions, the Swiss Krono Group has come through the 2019/20 business year well: As the Corona crisis hit the economy hard and customers had to close down due to the lockdown, the company had to cope with a drop in sales of over 30 percent in April and 20 percent in May compared to the previous year. In the following months, however, the situation was stabilized and improved. For example, the Group closed the fiscal year as of September 30, 2020 with gross revenues of EUR 1.7 billion, only about four percent below the 2018/19 fiscal year with EUR 1.8 billion.

In the Flooring division, gross sales were even slightly higher than in the previous year at around EUR 715 million. Sales volumes in the Building Materials (OSB) segment remained strong – but due to price factors gross sales were down five percent year-on-year at around EUR 518 million.

The Interiors business unit was hardest hit by corona-related shutdowns in industry, with gross sales falling by 13 percent. This brings the figure for the past financial year to 391 million Euro.

“Despite the difficult market conditions of the last few months, we are pleased to be able to look back on a result that is satisfactory, given the circumstances. We have achieved this not least thanks to a crisis management system that was implemented quickly and efficiently, enabling us to adapt to the new conditions,” says Georg Mäder, CSMO of the Group.

Martin Brettenthaler, CEO and Chairman of the Executive Committee, is cautious about the coming business year: “The ongoing pandemic situation worldwide is a major uncertainty factor that we simply cannot assess. We are therefore planning cautiously for 2021. Nevertheless, as a Group we are confident about the medium-term future: We are convinced that even in a difficult global economic situation, demand for high-performance, CO2-neutral and therefore sustainable engineered wood will develop favorably for us”. The Group has therefore resumed the investment projects interrupted in the spring in order to further equip the company for the future. Investments of around 180 million euros are planned for fiscal 2020/21. The largest investment project is the start of OSB production at the Russian site in Sharya.

Following the death of company founder Ernst Kaindl in 2017, his daughter and Chairman of the Board of Directors Ines Kaindl-Benes has finally settled all outstanding inheritance issues and consolidated the shareholder base in recent months. Ines Kaindl-Benes is now 100 percent owner of the Swiss Krono Group. With this important step, the future as a family business is secured.

Since the Group’s management team under the leadership of Martin Brettenthaler has proven its worth, Ines Kaindl-Benes decided to step down from this body after twelve years as Chairman of the Board of Directors. The chairmanship of the board will be taken over by Dr. Wilhelm Hörmanseder, a long-standing and experienced board member. Georg Benes will also join the Board of Directors.