Masterplast set a record in profit

Favourable exchange rates enabled the company to achieve its highest Q3 after-tax results at a value of 5.55 million euros, which is a 10% increase compared to previous records. After the first 9 months of this year, the group’s taxed profits are 20% above base level, with 94% of target results – increased in September – achieved.

The company’s revenue in Q3 was 55 million euros, 9% higher than the base level value. However, the energy crisis, inflation and interest rate challenges also affected the construction sector. Due to these factors and the issues with the supply chain resulting in the high level of stocks, demand for newly built house-related products has decreased. Nevertheless, the demand for thermal insulation products used to upgrade buildings’ energy efficiency is growing within the modernisation sector. In Q3, thermal insulation product sales increased by 29%, which is a substanial growth. The Hungarian market had a major role in this increase as soaring energy prices and governmental subsidies available until the end of the year had a stimulating effect. 61% of the company’s profit originates from in-house-produced thermal insulation products. 

Factors like increasing energy prices, operational costs and high raw material stock levels – accumulated to provide supply security – have periodically hindered factory production efficiency. In the following period, focus will be on improving factory production efficiency by enhancing thermal insulation production performance, run-off of raw material stocks priced at a higher level, and energy efficiency management. In order to eliminate the negative impacts of energy prices, the company addressed a 1.5 billion forints worth of energy efficiency investment. To achieve this goal, the group will submit an application for 675 million forints worth of aid within the framework of the government’s Factory Rescue Program.

Impacted by macroeconomy, industrial and operational measures, EBITDA was 5.7 million euros with a 10.4% rate in Q3, which is 9% below base level. However, the total EBITDA reached 19.4 million euros with an 11.8% rate, meaning a 157.000 euros rise to the base value of 19.2 million euros.

Favourable exchange rate fluctuations compensated for the adverse effects of forint inflation; therefore, Masterplast’s after-tax profit was 5.55 million euros, a 10% increase compared to the base level value at 5.03 million euros, being the highest Q3 profit in the company’s history. Overall, the company will keep to its budget, published in September, of which 94% has already been achieved.

Meanwhile, Masterplast provided its resources with favourable interest rates regardless of the deteriorating financial environment. The previous bond issuing and low-interest mortgages with around 2% interest cost cover ongoing investments and the working capital loans of manufacturing. After the quarter, the company managed to raise 9.2 billion forints worth of capital, ensuring the medium-term production development strategy’s financial aspects.

“Macroeconomic trends and changes caused by the energy crises could have a strong and accelerating impact on the construction industry. Commencement of building new houses and investment levels could decrease, while within the modernisation sector, thermal insulation market-related energy efficiency upgrades may firmly expand. In the European market, this expansion can advance with the energy efficiency of buildings support programs within the  REPowerEU program framework. Production development is still our primary focus, with which we can provide our expansion plans in a sustainable way. Our financial resources are given, and we have established stable and favourable financing of our goals.” – suggested Dávid Tibor, President of Masterplast.