Arbonia considers purchase offers for the Climate Division and publishes annual results for 2023 - Seite 2

Upon completion of the transaction, Arbonia would completely focus on the doors business and implementing the adopted strategy. The division continues to work towards the goal of expanding its leading position as a Central and Eastern European supplier of wooden doors and glass solutions. Based on the largely completed, comprehensive investment programme for increasing capacity and productivity as well as by increasing market shares in its domestic and neighbouring target markets, the Arbonia Doors group is aiming for above-average market growth in the future. Building on the investments made and with the aid of digital solutions, the Arbonia Doors group is positioning itself as an innovative full-range supplier and cost leader.

The Doors Division would use the sales proceeds that remain following debt reduction and the return of funds to shareholders to accelerate the further development of its business. Firstly, it will continue growing organically and, secondly, make acquisitions that will help it establish a broader position both geographically and with regard to product variety.

Without currently knowing if and when the negotiations will lead to a transaction, the relevant IFRS guidelines (IFRS 5) require the Climate Division to be recorded as a discontinued operation in the consolidated financial statement as soon as a sale is classified as highly probable. At the same time, it is important to note that the full holding costs are allocated to the continuing operating activities, which leads to increased expense items and negatively affects the profitability figures.

Financial figures for continuing operations for 2023

In the financial year 2023, Arbonia was confronted with a historic slump in the construction industry in most of its core markets, which resulted in a volume decrease of up to 30% for its products in individual markets. In addition to inflationary increases in construction costs and sharp rises in interest rates, the construction industry was also subjected to uncertainties in Germany, culminating in the divisive negotiations within the “traffic light“ coalition government regarding the German Buildings Energy Act (GEG).