Masterplast’s income leapt at the beginning of the year

The company managed to increase its income on all its markets apart from Ukraine. For instance, in Slovakia, there was 37 percent improvement, but a further 4 percent expansion was also achieved on the European Union export markets, which were already producing excellent results one year ago. After the significant fallback experienced on the Ukrainian market in the second half of 2016, an improvement was observed, and finally the company’s sales there fell short of the strong 2016 base by a total of 8 percent in the first quarter.

Within Masterplast revenue, the facade insulation systems and their elements primarily associated with building and housing renovations continued to provide the highest proportion in the first three months of the year, the share of this product group in the turnover being 41 percent. A key role in the growth of revenue was played by the leap in sales of EPS (expanded polystyrene – insulation boards), which was partially due to contractors making advance purchases because of significant changes in raw material prices.

The Masterplast Group’s EBITDA result was 611 thousand euros in the first quarter, which meant a fallback of close to 120 thousand euros compared with one year earlier. The narrowing of the company’s trade margin, as well as higher transportation costs also played a role in the drop. Besides this, with the gradual growth in the capacity of the Subotica fibreglass mesh plant, the staff headcount also increased, thus raising wage costs. At the same time the firm’s financial result improved when reckoned over the year, so the after-tax result was also positive in the first quarter, considered weakest due to seasonal effects, and moreover, it exceed the figure from one year earlier.

The Masterplast Group employed 863 persons at the end of March, this being an increase of close to 200 compared with the March of 2016. 274 are working in the company’s Subotica fibreglass mesh plant.

“The statistics still report branch growth in Hungary, primarily due to the European Union energetics grants and the increased apartment house construction in the state home creation scheme launched last year. In the area of retail purchases, an increase in demand is not yet perceptible for the present, though with the growth in the number of housing construction permits we are expecting growth in the coming periods in the case of new housing, as well as in the renovation segment. Masterplast’s growth prospects are also strengthened by the fact that additional measures passed by the government for stimulating the housing market have seen the light of day. The “Warmth of home” scheme is continuing from the June of 2017, and a credit scheme for supporting the energy efficiency of residential buildings and the use of renewable energy has also appeared. Because of these changes, we are counting on continuing growth in turnover and result in the coming quarters” – said Dávid Tibor, president of Masterplast Nyrt.