Masterplast is counting on a doubling of profits by 2021

Besides the favourable market environment, the company’s efficiency-enhancing measures also contributed to the rapid growth in turnover and profit, thanks to which it is expected that in a few years the dividend on one share could rise dynamically.

The current year is expected to close with a price income of 98 million euros for Masterplast Nyrt., which means an expansion of around 10 percent compared with the previous year, and which significantly exceeds the company’s plans. The company’s after tax profit may likewise increase to a greater extent than expected; it may reach 3.2 million euros in 2018, outstripping last year’s profit by close to one fifth.

The positive trends observed in the European construction industry are also having a favourable effect on Masterplast’s turnover. Based on these factors, in medium-term forecasts up till 2021, Masterplast Nyrt. reckons on a growth in income of more than 8 percent each year on average. The EBITDA result is expected to increase by around 20 percent next year, and a growth of around fifteen percent in this index is expected in the following two years too. Thanks to the favourable economic environment, and the constantly expanding and ever more efficient production, the company forecasts a 124 million euro income by 2021, whilst the after tax profit may reach 6 million euros, which is close to double the profit expected for 2018. With investments of several billion forints made in the recent period (the company spent more than 15 million euros just on developing the Subotica plant), the company has not only increased capacity, but has also made a conscious effort to make operation more efficient. The second, 6.7 million euro phase of the Subotica fiberglass manufacturing project has been completed, thanks to which the production capacity of the plant is now 100 million square metres. Thanks to the new equipment, the manufacturing efficiency in the facility may increase to a considerable extent. The development creates the opportunity for expanding the product portfolio and also for satisfying special customer requirements. Bearing the capacity increase and more efficient production in mind to the maximum extent, Masterplast has also made its latest investment of 502 million forints in the Kál plant which manufactures extruded polyethylene (foam sheets). In the project which also obtained a state grant of 251 million forints, the company has also effected technological and infrastructural developments on the level of Industry 4.0. Thanks to the investment, the production capacity of the Kál plant will be doubled, product quality will be further improved, and production efficiency in the plant will increase. “Thanks to tightening energetics regulations, growing environmental awareness and subsidies at both governmental and EU level, we can work in a favourable economic environment and we are counting on positive tendencies continuing in the near future too. With the increase of our production capacity and efficiency, with constant innovation and investments, as well as further optimisation of company operations, we can exploit the boom we are experiencing at the moment” – related Dávid Tibor, president of Masterplast Nyrt., at today’s press conference for presenting the company’s current results and medium-term plans. Thanks to the significant development expected in the coming years, the dividend paid out by Masterplast Nyrt. may increase to a considerable extent. According to the company’s current dividend policy, dividend payment may be up to 50 percent of the after tax profit, but this level may change as a function of the branch environment, future investments and operating capital needs. According to Masterplast forecasts, following this year’s result, the company is expected to pay a dividend of up to 34 forints, but by 2021 this amount could increase to almost double, to 66 forints per share. “In order to exploit the opportunities offered by the favourable economic environment, we are implementing organisational changes, so that our operation may be even more efficient. Our goals include strengthening the decentralised business model, emphasising market-focused operation in our subsidiaries, as well as increasing profit-generating ability” – announced Róbert Nádasi, the company’s general manager appointed in August.