Historical records at Masterplast

Masterplast closed the most successful quarter in its history, breaking its previous records one after the other.

The 37.5-million turnover and the 4.2-million EBITDA value reached in the third quarter, and the EUR 2.6-million after tax profit also surpassed the best quarterly numbers so far. The outstanding results in the shadow of the coronavirus were provided by growing building material wholesale activity, expanding manufacturing and the entry into the high-profit health industry. The successful launch of Masterplast Nonwoven GmbH, the group’s new German subsidiary, which also produces specialty raw materials for healthcare, has had a significant positive impact on the company’s profitability.

Although the COVID19 affected our living environment, it did not influence notably the functioning of the construction industry. The ongoing projects were being progressed and the renovation sector has been vibrant, but the impact of investments that have not started due to changes in the business environment will be felt later.

The Group’s turnover has grown by 20%, reaching an all-time-high EUR 37.5-million level. The core construction wholesale business of the company has expanded, and the sale of the new German manufacturing company, Masterplast Nonwoven GmbH, contributed greatly to the growth achieved. In addition to the revenue growth, the trade margin and margin weight also increased compared to the base period. The improvement of core business indicators and the excellent start-up of the new business unit contributed significantly to the large increase of effectiveness.

The production emission of Masterplast has further strengthened. In Aschersleben, the German production unit, with increased market demand and high-capacity utilization, started to produce healthcare raw materials, industrial nonwovens and membranes. Among the strategically important construction products, the emission of fiberglass production has increased, while the production of polystyrene thermal insulation products has decreased compared to the extremely strong base. The number of personnel increased to 1.134 after starting the new production by the end of September.

In the third quarter of 2020, the amount of EBITDA jumped to an all-time-high EUR 4.2 million level after a 59-percent increase, besides a 11.2-percentage. The operating profit/loss was 70 percent higher than the base, at around € 3.5 million – it is also the highest value achieved in the company’s history. The effects of the adverse exchange rate influenced negatively the company’s quarterly profit, while standard issuance bonds were reduced by interest costs. Thus, the Group’s after-tax profit rose to EUR 2.6 million, setting another record. In light of the successful third quarter, the company is satisfied that they can achieve the published turnover of EUR 120 million, EBITDA of EUR 10.2 million and profit after tax of EUR 6.2 million in 2020.

“The fact that we were able to increase sales and profitability in our core business despite of the negative effects of the coronavirus is considered as a historic accomplishment. The successful entry into the health care industry also contributed to this boom which led to the best quarter in our history. Despite of the difficult times, new investment and development opportunities open up for Masterplast, and we are intensively examining their implementation. We have become particularly optimistic about the development of the Hungarian building materials market, as the newly announced government family support measures can also give a significant boost to new housing construction and renovation. All in all, despite the turbulent external environment, we consider Masterplast’s prospects for further growth to be particularly positive.”– said David Tibor, CEO of Masterplast.