Masterplast reached its most successful year in the decade

In a positive industrial environment, the leading Hungarian producer of construction industry products reached its most successful year in the decade following the crisis, as a result of the 71-percent growth in output in the last quarter and exploiting its continuously growing production output and strong market interconnectedness. The group will start production in a new scope soon, which can benefit from the strengthening of the renovation sector.

In the last quarter of 2019 somewhat moderate, but on the whole positive environment characterised the new construction sector and the renovation sector. In Hungary, which is the most relevant place for markets, the construction sector had a moderately increasing quarter, but the number of ongoing building projects continue to be significant. There were compensating effects at the regional markets, but on the whole, it can be said that the atmosphere of the construction sector was positive.

In the biggest Hungarian market of the Masterplast Group the turnover from trading increased by 12 percent while from the regional markets the Group recorded increase in its turnover in Romania, Serbia, Ukraine and Slovakia. The Group was also successful in its strategic scopes and in selling seasonal products. Also, the sales of external thermal insulation systems and dry construction elements increased by 12 percent. Apart from these, the turnover of thermal, acoustic and hydro insulating elements increased by 6 percent.

The fibre glass production was fully staffed at the company’s manufacturing base in Szabadka and, besides improved quality, in the last quarter manufacturing was close to full capacity. Comparing output, it surpassed the quantity of the previous year by 26 percent and fully achieved the objectives set for 2019. The prospects of fibre glass production for 2020 are quite favourable. The conditions reaching the maximum capacity are met while maintaining the high quality.

The manufacturing of EPS insulating products continued a positive trend and increased the production volume again compared to the same period of the previous year. Besides the increasing demand for the manufacturing of EPS heat-insulating panels, Masterplast achieved 15-percent growth in the quarter, its performance throughout the year surpassed the previous year’s by 20 percent. In the unit in Szabadka the maximum utilisation of production and the overcapacity of production due to T-Cell acquisition guaranteed the stable and sufficient background in order to respond to the increased demands.

In the Kál-centred foam plant of the Group the output followed the annual trend in the last quarter, it was 11 percent below the quantity of the previous year in total. To work more effectively, the company renewed its management, thereby facilitating prosperity in 2020.

In the headquarters of the Group in Sárszentmihály the launching of diffusion roofing foil production started under €2 million investment at the third manufacturing base. The test run is likely to start in the second quarter of 2020 and self-manufactured products will be launched in the second half of 2020.

On a yearly basis the company’s revenue increased by 10 percent, some €10 million and exceeded €107 million. After the recession the highest revenue of the decade continued the upward trend reached in the past three years coupled with efficient functioning and profitability. The €7268 cost of EBITDA (earnings before interest, taxes, depreciation and amortisation) improved to 6.8 EBITDA ratio compared to €6034, 6.2 percent EBITDA  ratio in 2018. Whereas, the revenue after taxation increased some €1.5 million, that is, it increased 45 percent compared to the reference period. By this achievement, we managed to reach the target at the level of turnover and EBITDA, while regarding the profit after taxation we managed to overperform the targets by €800.000. In the last quarter of 2019 the income of the Group increased by 7 percent and the commercial margin also expanded, although to a lesser extent than expected.  In the last quarter the EBIT of the Group increased more than the increase was in turnover, reaching € 972.000, which was 70 percent above the base.

Masterplast participated in the Growth Debenture Programme of the Hungarian National Bank within which it issued bonds with a nominal value of HUF6 billion (€ 18.1 million). By doing so, it not only transformed the financing of the Group, but also generated long-term, low-interest bearing (1,08 % EUR) liability to a further growth.

“As far as our most important Hungarian market is concerned, our expectations for the upcoming years concerning the construction sector are quiet positive. Although the withdrawal of reduced VAT rate concluded by the end of year has an impact on the launching of new investments, the implementation of already started projects will last for years.

Also, the extended family housing benefit scheme (CSOK) started in summer and the developing energy-consciousness can lead to growth at the renovation market.” –David Tibor, the CEO of Masterplast explained.

 “Masterplast had a quiet successful year in 2019, since not only our revenue but also our efficiency was close to break a record. We view the coming years as something entirely positive and we are expecting positive construction environment on regional level. The expanding manufacturing, the utilisation of the synergy of T Cell acquisition and our widening manufacturing activities provide good bases for further dynamic growth.” – Róbert Nádasi, the CEO of Masterplast added.