Masterplast soars to new heights

After a strong start to the year, sales growth accelerated further and Masterplast’s profitability reached new historical records in the second quarter. The production background of raw material, stable even in an environment with shortages, ensured for the company to fulfill the potential of the strong demand for building materials globally. However, the base effect also plays a significant role in the background of the outstanding result. In the same period of the previous year, the company’s most important export destinations were on lockdown, moreover, at that time, the company did not generate any income from the healthcare industry.

The company achieved dynamic sales growth in its entire area of operations, including Hungary and the subsidiary countries, and reached a powerful sales expansion in the export markets, which more than doubled the sales in the second quarter. The rapid expansion of the market was mainly due to the changing demand for housing arising from the virus. During the period of locked-in, people’s priority regarding the quality of the environment and living space at home was re-evaluated. During the restrictions, numerous people generated savings, which provided a financial opportunity for home renovation. The global trend had a stimulating effect on strong demand, which was even more significant in Hungary due to the available subsidies.

The disruptions in global supply chains led to shortages of raw materials and price increases, which, however, also created opportunities for the company. The company, even in this difficult situation, was able to supply raw materials to its production background, and the plants could produce full capacity utilization. Supplying the domestic market has been a key priority for the Hungarian majority-owned company from the very beginning, thanks to which there was no shortage of Masterplast’s products.

The healthcare division performed well in the second quarter as well, due to the production of raw materials in Germany and the sale of protective coveralls delivered to Hungarian healthcare system. In addition, at the end of June, the healthcare raw material production unit was solemnly handed over at the company’s central site. Together with the state support provided within the framework of the Health Industry Support Program, the production of health industry textiles started in a factory established from about HUF 9.5 billion. Managing the growth phase of the production is proceeding as planned, and so is the company’s investment in finished healthcare products.

The company has repeatedly achieved record heights in terms of key performance indicators. Record sales of € 57.1 million generated in the second quarter mean that Masterplast sales now soared to € 95.4 million after the first half. Through the surplus generated by the exports and the healthcare industry, the result produced in the second quarter also reached new heights compared to the base. EBITDA jumped to € 8.5 million, and is therefore equivalent to 14.9%, while profit after tax rose by 3.5 times to € 6.3 million. All this means that after the first six months of 2021, the company’s after-tax profit was more than 40 percent higher than its full-year earnings in 2020.

 “We are extremely proud of the result achieved, the Masterplast team has done a lot to close the first half of the year so well. Base effects also played a role in the outstanding growth. Last year, these three months were the most difficult period of the pandemic, so the base was lower, and the results of the health care division also contributed to the strong increase in results. In terms of trends, it is important to emphasize that during the pandemic, people were more aware of the deficiencies of their homes and improving the quality was much higher on the priority list. We have experienced how does it feel to be closed, the apartments often started to function as workplaces, so today the living environment plays a much more important role. People started to spend the money saved during the restrictions to improve their housing quality, which has given a huge boost to the renovation and construction market. In Hungary, government subsidies also have an incentive effect, and according to our measurements, the desire to renovate has risen to unprecedented heights. Besides, as the carbon neutrality targets of the European Union become more ambitious, the energy efficiency of buildings will increase in the long run, as this can be achieved by insulating and re-insulating the buildings that are the most energy consuming” – added David Tibor, presindent of Masterplast.