Accelerating EBIDTA growth at Masterplast

In the third quarter, Masterplast Nyrt. took advantage of the opportunities offered by the boom in the region’s construction industry, the region’s key construction material producer-distributor company increased its income by 10 percent compared with one year earlier. In Hungary, the most important market for the company group, turnover expanded by 18 percent and the after-tax result at group level exceeded 1.1 million euros.

Masterplast Nyrt. achieved a revenue of 26.74 million euros in the third quarter, which exceeded that of one year earlier by 10 percent. On the whole, the company was working in a favourable branch environment in the July-September period. The firm achieved an outstandingly good result on the most important Hungarian market, where the European Union energetics grants (for instance KEHOP), the state home creation scheme (CSOK), as well as the low interest rate provided an incentive for housing construction and renovation. The company achieved an income close to 8.2 million euros in the third quarter in Hungary, which means an 18 percent growth when reckoned over the year.

Due primarily to the higher turnover, the company’s EBITDA result expanded by 13 percent in the July-September period when compared with the same period of 2016, and it exceeded two million euros. Masterplast Nyrt. closed the third quarter with a net result of 1.13 million euros, which is a 15 percent growth compared with last year.

The July-September period succeeded well for all the product groups important in terms of strategy, in the case of the facadet insulation systems and elements associated with building and housing renovations for instance, having the greatest share in turnover, there was 15 percent expansion, whilst it was 23 percent for the dry construction and accessory profiles.

Examining the first three quarters, Masterplast increased its turnover by 10 percent to 68.52 million euros compared with one year earlier. Masterplast Nyrt. closed the January-September period with a net result of 2 million euros, which meant an 18 percent fallback when reckoned over the year. In the background of the fall is first and foremost the deterioration of the financial result, which was caused by the higher interest expenses due to the increased credit because of the investments, and the unfavourable changes in rates of exchange.

“The constantly improving economic environment, the surplus cover for expected turnover increase, as well as the expanding output and improving efficiency of our own manufacturing capacity may guarantee that the company reaches the operating result goal for 2017 formulated in the business plan, and overfulfils the income target” – stressed Dávid Tibor, president of Masterplast Nyrt. board of directors. The company is counting on revenue growing at over 10 percent for 2017 and an EBITDA result higher than that of last year.

“By mean of our latest investment announced at the beginning of October, not only will our production capacity increase, but we can also appear with our products in industrial areas offering new perspectives. All this results in stable operation and sustainable development, which our investors can also share in” – added Dávid Tibor.

Masterplast Nyrt. announced on 6 October, that it would launch a further investment of close to 6.7 million euros on its Subotica site. By means of the development, the fibreglass mesh manufacturing capacity of the Subotica plant will grow by more than 20 million square metres per year.

Thanks to the investments, 105 new jobs will be created in the facility, and as a result of the expansion, also taking seasonality into consideration, the plant’s fibreglass mesh manufacturing capacity will exceed 90 million square metres annually.

The development, implementation of which will be launched next year and according to the plans will also be completed in 2018, creates an opportunity for Masterplast to expand the product range. The firm can start to manufacture additional new types of fibreglass mesh used in construction work, and besides this there will also be an opportunity to produce more specialised, composite fibreglass mesh for general industrial usage.

Masterplast Nyrt.’s stock exchange presence reached an important milestone on 18 October, on the decision of the BSE the company’s shares were reclassified in the Premium category. The stocks of key firms in the economy, also popular among investors, are placed in the Premium category.

Masterplast Nyrt.

Founded in 1997, the Masterplast group is one of the leading building material producer and distributor companies in the Central Eastern European region. The company group owns subsidiaries in 10 countries, and sells products in a further 30 countries. The company is registered in the premium category on the Budapest Stock Exchange, and had revenue of 201,8 million euros in 2022.