Windows 

Market trends

In the reporting year, the Windows Division achieved a net revenue of CHF 357.9 million, which represents a decrease of –0.1% in comparison to the previous year (CHF 358.2 million). When adjusted for currency effects, this resulted in growth of 2.2%. Without one-time effects, EBITDA grew by 65.0% from CHF 27.1 million in the previous year to CHF 44.8 million. EBITDA with one-time effects improved by 71.9% from CHF 24.7 million in the previous year to CHF 42.4 million. EBIT without one-time effects changed from CHF 3.2 million in the previous year to CHF 23.6 million (+636.5%). With one-time effects, EBIT increased from CHF –0.4 million in the previous year to CHF 20.3 million in the reporting year.

Despite the challenging environment, the Windows Division can look back on a pleasing 2020 reporting year, in which a significant improvement in profitability was achieved with currency-adjusted revenue growth. In addition to the relocation of all production sites to Eastern Europe, which has now been completed, the significant growth and improved earnings quality in the Swiss market, among others, had a positive impact on the profitability of the division. Furthermore, the increase in output volume at the production site in Langenwetzendorf (D) as well as the improved operative performance at the Polish production plant in Zambrów contributed to the positive result.

The consolidation of the windows business in the Swiss market, especially in the vinyl window segment, continued during the reporting year. EgoKiefer succeeded in holding its own in this competitive environment, increasing its order intake and gaining market shares. The direct customer business developed positively, which is not least due to the differentiated project processing according to order size. The second distribution channel of EgoKiefer, the specialist partner business, was stable in the reporting year. The situation regarding the COVID-19 pandemic occasionally had a dampening effect. Nevertheless, it was possible to further optimise and expand the dealer network in a targeted manner.

At the beginning of the reporting year, a new, additional CNC profiling system was put into operation at the production plant in Langenwetzendorf (D). This capacity expansion enables the division to meet the increasing demand for wood and wood/aluminium windows in the German and Swiss markets. Furthermore, additional and ongoing optimisations of the production processes took place in Langenwetzendorf (D). On the market side, Wertbau’s business in Germany was stable and improved slightly over the previous year. With the Wertbau and Dobroplast brands as well as the newly acquired digital subsidiary Webcom, further market shares are to be continuously gained in the fragmented German window market in the following years.

The planned expansion of the division’s own insulating glass production at the Pravenec (SK) site was successfully implemented in the reporting year. The division commissioned an additional plant for laminated safety glass (LSG) and thus increased the output volume. With this expansion of vertical integration, the division is now in a position to cover the majority of its own demand for insulating and laminated safety glass at the Pravenec (SK) and Langenwetzendorf (D) sites with its own insulating glass production. In the last quarter of 2020, Slovaktual also started manufacturing the new vinyl and aluminium front door product lines.

The Polish company Dobroplast developed very positively in the reporting year. For the coming years, the focus will be on opening up further export markets in Central and Southern Europe. The launch of a new generation of vinyl windows is planned for the first quarter of 2021, which will provide a new impetus for growth in the domestic market as well as in the export markets. The online window configurator for Polish customers, which was launched in 2019 together with the sister company Webcom, also developed well. The number of certified dealers connected to the platform more than doubled in the reporting year.

In early December 2020, the Windows Division acquired the remaining 65% share of the German company Webcom with the online platforms bew24-fenster.de, fensterdepot24.de, and fenster-webshop.de for the sale of windows, doors, and construction elements. In spring 2017, the division had already entered into a partnership and a minority share of 35% with the company. With this acquisition, it now secures further expertise in the areas of digitisation, software development, and e-commerce, as well as an established, profitable business model with an experienced team that has seen strong growth in recent years.

Products, technology, and innovation

In this reporting year, the division continued to develop its product portfolio in order to meet the needs and demands of the customers in the various sales markets and to further increase its competitiveness. For example, new vinyl and aluminium exterior doors were launched in Switzerland with EgoKiefer and new vinyl exterior doors were launched in Poland with Dobroplast. These products are based on the divisional product platform strategy and will also be integrated into the product ranges of the other two companies, Wertbau and Slovaktual, in the future. The expansion of Dobroplast’s product portfolio in Poland and in the export markets with the new vinyl window "InvestLine" is planned for 2021.

On the production side, the reporting year was characterised by ongoing and targeted modernisations and replacement investments to increase the degree of automation and the vertical integration.

EgoKiefer implemented various digital initiatives in the reporting year, including an online lead generator for window renovation enquiries from end customers, to which EgoKiefer’s trading partners are directly linked, and a new exterior door configurator for the newly launched vinyl and aluminium exterior doors.