Pfleiderer is a leading manufacturer of premium engineered wood products, laminates and resins. Through its Engineered Wood Products division, the company produces premium wood and laminate products for fast-growing, high-end applications in the Western European kitchen, furniture and construction markets. Pfleiderer is also a leading producer of specialty and industrial resins through its Silekol division, which are used in Pfleiderer’s own products and by external customers in the panel production, packaging, construction and building materials industries. Pfleiderer is headquartered in Neumarkt in der Oberpfalz, Germany, and employs around 2,200 staff primarily across five sites in Germany and one resin production site in Poland. The company has operated for over 125 years with sustainability and the renewable nature of wood at its core, with a strong focus on sustainable sourcing and manufacturing, reducing carbon emissions and protecting the environment.
Since the third quarter of 2020, Pfleiderer has seen a significant increase in demand across all divisions as a result of the continued economic recovery from the COVID-19 pandemic as well as increased residential renovation and new construction activity. This recovery has continued into the first months of 2021.
Based on current customer behaviour and market dynamics, Pfleiderer has budgeted for an increase in net sales to approximately EUR 1.1 billion in fiscal year 2021, of which PCF Group is estimated to contribute approximately 75-80% and Panel East approximately 20-25%. Pfleiderer’s Adjusted EBITDA for fiscal year 2021 is currently expected to increase by almost 30% compared to fiscal year 2020, primarily driven by increased sales volumes and continued cost and efficiency improvements along the whole value chain in all divisions. PCF Group is expected to account for approximately 80-85% of Pfleiderer’s Adjusted EBITDA in fiscal year 2021 and Panel East for approximately 15-20%. In addition, PGKG Group currently expects to further improve its Adjusted Free Cash Flow to approximately EUR 120 million in fiscal year 2021, of which approximately 80-85% is expected to be generated by PCF Group and approximately 15-20% by Panel East.
Pfleiderer’s budget for fiscal year 2021 has been prepared assuming a continuing and gradual recovery from the COVID-19 pandemic over the course of fiscal year 2021 and is subject to change based on the COVID-19 situation and other material uncertainties and contingencies. We are not obligated to report any change in our budget and do not expect to make any updates. As demonstrated at the onset of the pandemic, the Group continues to closely monitor the COVID-19 situation in Europe in order to be able to respond quickly should a change in market demand require new actions to protect the business and its market position. The Group will continue to prioritise the health and well-being of its employees in the face of the COVID-19 pandemic. No assurance can be given that our budget will be realized, and actual results will likely differ from our budget and these differences may be material. No representation or warranty, express or implied, is made with respect to the accuracy, completeness, likelihood of achievement or reasonableness of our budget, including the underlying assumption.
This company outlook may contain certain forward-looking statements that are based on current assumptions, opinions, estimates, projections and forecasts of the management of Pfleiderer. All statements, other than statements of historical facts, are forward-looking statements. Any such forward-looking statements involve known and unknown operational, business, economic, regulatory and other risks, uncertainties and other factors that could cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Any such forward-looking statements speak only as of the date hereof and reflect Pfleiderer’s current views with respect to future events and are necessarily based upon numerous assumptions that, while considered reasonable by Pfleiderer at the time of preparation, may or may not prove to be correct or necessarily take place. Pfleiderer cautions readers that forward-looking statements including, but not limited to, financial projections, are not to be viewed as facts and are subject to significant uncertainties and contingencies, many of which are beyond the Pfleiderer’s control, and that no assurance can be given that any particular forward-looking statement or financial projection will be realized, and that actual results may differ from projected results and that such differences may be material. No representation or warranty, express or implied, is made with respect to the accuracy, completeness, likelihood of achievement or reasonableness of such forward-looking statements, including opinions, estimates and projections or their underlying assumptions or opinions. No duty of care is owed or will be deemed to be owed in respect of such information. To the maximum extent permitted by law, any liability, including in respect of direct, indirect or consequential loss or damage suffered (whether foreseeable or not and whether arising from negligence under contract, tort, equity or otherwise), of Pfleiderer or any of its affiliates relating to such information is expressly excluded.