HOUSING Challenging market conditions, high interest rates and a weakened German economy characterise the entire German construction industry. This rubs off on the DLG Group’s building activities. SALES 5.7 BN DKK EBITDA 250 MDKK COLLEAGUES 2,335 The Housing business area covers the DLG Group’s activities within service and sales of building materials for both commercial and private customers in Germany. Our subsidiary, Team Bau, Germany’s fourth largest builders’ merchants chain, is one of the largest players in the field in Germany, and in North West Germany, in particular. Housing employs more than 2,400 people. Sales to the construction industry (construction companies, contractors and building trades) account for about 85% of Team Bau’s revenue, and sales to private persons account for 15%. Sales are made through Team Bau’s 84 physical builders’ merchants under various brands, including Team Baucenter and BAUEN+LEBEN, the latter of which is primarily represented in the state of North Rhine- Westphalia. CHALLENGING YEAR IN THE CONSTRUCTION INDUSTRY Persistently high interest rates and a general weakening of the German economy have had a negative impact on the German construction industry in 2024, with activi- ty levels down significantly compared to previous years. Reduced public subsidies in the construction sector further dampened demand, especially for the construction of new private houses and apartments, while volatile building material prices have also made the planning of housing projects more difficult. Overall, this has made it a difficult year for the group’ sbuilders’ merchants division. However, the decline in demand is to some extent offset by new initiatives and close strategic cooperation with business customers. INCREASED FOCUS ON RENOVATION AND ENERGY EFFICIENCY While the market for construction of new buildings has declined sharply, we have seen an increasing demand for products for energy-efficient renovation and modernisation of buildings. Furthermore, activity in public infrastructure projects is expected to remain at a high level including potential for increased activity. For this reason, this is a strategic focus area for the building materials division. At the same time, there is a growing interest in sustainable energy sources, including demand for solar solutions for both residential and commercial buildings, which offers new growth opportunities. ADAPTING TO THE MARKET OF THE FUTURE To increase efficiency, improve adaptability to market changes and position Team Bau more optimally for future 32 DLG ANNUAL REPORT 2024 challenges and opportunities, Team Bau carried out a major reorganisation in 2024. The implementation of a new organisational structure began in the autumn and is a prerequisite for future competitiveness and growth. As a result, one sales organi- sation consisting of five regions has been created, a joint procurement and logistics function has been established, and business development activities have been gathered to take place at one location. The new organisational structure will be fully phased in by 2025. NEW ORDERS IN THE CONSTRUCTION SECTOR, GERMANY Index 105 100 95 90 85 80 75 2022 2023 2024
Download PDF fil
Indholdsfortegnelse