Masterplast builds on the future of insulation

For the first time in its history, the company has reached a 200 million EUR annual turnover by making revenue of 201.8 million EUR. In the last months of the year, the company’s profit was significantly worsened by several factors, which will also have a noticeable effect on the first half of 2023. The company’s management remains optimistic about its medium-term outlooks and maintains its development plans. The annual sales of thermal insulation materials were expanded by 38%, and the increasingly profitable investments into new thermal insulation material manufacturing provide an opportunity to gain ground in Western European markets, too.

The company’s annual revenue rose by 5%, reaching 201.8 million EUR due to the strong performance of the construction industry, which even managed to compensate for the setback in healthcare product sales. In 2022, the company’s EBITDA profit reached 20.4 million EUR with a 10.1% ratio, while its profit after tax was 15.6 million EUR at a rate of 8%, meaning a 3% minus difference compared to the profit of the base year.

Due to a deterioration in macroeconomic conditions, the demand for construction materials declined rapidly in the last months of 2022. In Q4, the shrinking market decreased the company’s revenue by 17% compared to the base year. Higher inventory levels with reducing raw materials and end product prices proved disadvantageous in the volatile market. Economic operators became more careful and took steps to reduce inventory levels and prices, which further weakened the demand for the company’s products, and the increasing competition resulted in lower margins. Furthermore, the increased manufacturing – primarily energy – costs and the unfavorable exchange rates affecting the company also decreased its quarterly profit. With the elongated effects of those mentioned above, the company expects an operation with lower profitability in the first half of 2023, which might be compensated by a favourable base impact and an expanding Western European export based on the growing manufacturing capacities. New investments into manufacturing commencing in 2023 will make it possible to introduce new products and address new, more major European partners.

The changing market conditions indeed prompted the company to respond to them. Its management placed their focus on optimising inventory levels, increasing operational and manufacturing efficiency, and conscious energy management. Energy supply to the manufacturing is guaranteed again, with (increasingly) favourable market conditions, whilst the company is applying for the Factory Rescue Program’s resources to finance energy efficiency modernisation and promote renewable energy production.

“In the last quarter, the negative economic and market impacts were added, significantly hampering the company’s operation. Therefore, annual revenue growth was lower than expected. The outstanding profits made in 2021 were typically influenced by the high sales volumes of covid protective clothing, on which we could not rely in 2022. At the same time, we achieved significant growth in our core business, that is, the sales of thermal insulation materials of strategic importance. As regards the future, our increasing manufacturing volumes and our three new plants to be launched this year producing plastic insulation materials will provide further expansion opportunities. Based on these, we can increase our presence in the Western European markets. Our glass and rock wool manufacturing projects are progressing well, providing Masterplast with a considerable competitive advantage in the medium term. Logic dictates that the second half of 2023 will be stronger, which could be further boosted by the emergence of a European subsidy programme for building energy modernisation or by a permanent armistice in Ukraine”, said Masterplast Nyrt. President Dávid Tibor.