Masterplast has retained its stability

Masterplast Nyrt. closed the year 2016 with an income of 80.16 million euros, this fell short of the figure for the previous year by 4 percent. The decisive proportion of the fallback was caused by a drop in the revenue from the facade insulation systems and their elements (-9%), which produce the highest share of the turnover. Besides the sharp competition battle in this product range, the course of business was also influenced by the fact that in line with strategic decisions made in the middle of last year, the company fully switched over from the sale of commercial fibreglass mesh to that of its own manufacture on European Union markets. This was enabled by the new plant established with an 8.4 million euro investment in Subotica, though this has not yet reached its maximum production capacity. This is expected to happen at the close of phase III next year, thus the lack of capacity may have a perceptible effect in the coming period.

The Masterplast Group’s EBIDTA result fell back to 4.51 million euros due to falling income, this being 12 percent less than one year earlier. The after-tax result was 2.39 million euros, which is 7 percent less than in 2015.

In the slightly improving market environment but ever sharpening competition in the fourth quarter of last year, the company achieved an income of 18.04 million euros, which meant a 6 percent drop compared with one year earlier. At the same time, whilst in 2015 the company reported a 721 thousand euro loss in the last three months, the loss in the October-December period of last year was much less, just 61 thousand euros.

In the last quarter of last year, various tendencies were perceptible on Masterplast’s markets. On the Hungarian market with the greatest weight, statistics indicated recovery, the effects of government measures for stimulating the housing market being felt in the increase in numbers of new housing constructions. At the same time, as insulation materials are incorporated in the later phases of construction, retail purchases have shown growth to a lesser extent as yet, though these significantly improve the prospects for the Hungarian market and Masterplast. The last quarter has produced an 8 percent growth on the Hungarian market, when reckoned over the year. A favourable tendency was also felt on export markets, where the company achieved a 4 percent expansion in turnover.

Construction industry demand dropped off on the likewise important Romanian market, and the branch production also fell in Slovakia in the last quarter, whist in Serbia and Croatia there was continuing recovery. The Ukrainian market stabilised, and construction industry output also increased. The ever intensifying competition battle and market saturation in a number of large countries (Serbia, Romania, Croatia, Ukraine) make the situation difficult for market players. Before the call for tenders associated with the new budget cycle, state investments typically demonstrated stagnation in the EU countries.

“In a market environment posing a serious challenge, in the midst of a change in strategy we have managed to preserve our stability and ability to produce results, which is a good demonstration of Masterplast’s strength. The Subotica investment, the cleaned up product portfolio, the transformation of company structure, as well as the appointment of the new CEO László Piry at the end of last year have all served the purpose of making Masterplast a true, major international company. Our steps so far have laid a good foundation for us to exploit the opportunities offered by the Hungarian governmental measures for stimulating housing construction, as well as the expansion expected in the coming years in the construction industry of the region and the European Union to the maximum extent, and for the company to launch into vigorous growth” – stressed Dávid Tibor, president – managing director of Masterplast Nyrt.

They are clearly counting on growth in the company for next year, in which the Subotica plant will play a key role. The facility will reach its full capacity in 2018, then it will be capable of manufacturing 70 million square metres of gfibreglass mesh every year. The rapid growth of production in the plant is also perceived in the headcount of workers at Masterplast, 800 were working for the company at the end of last year, which means an increase of close to 150 people over the year. 236 people work at the Subotica plant.