Masterplast has doubled its profit

calendar_today2018 August 21
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The company is counting on dynamic growth in the second half-year too. Masterplast Nyrt. closed the second quarter with close to 27 million euro income, which corresponds to 14 percent expansion compared with one year ago. The company’s profit doubled, growing to 1.65 million euros, and the growth in headcount also continued, with 930 working in the company at the end of the period. Masterplast Nyrt. took advantage of the opportunities offered by the construction industry boom in the second quarter, the company’s turnover, business result and profit also expanding to a significant extent. The company closed the April-June period with 26.97 million euro income, which exceeded that of one year before by 14 percent. The Hungarian market providing one third of the total turnover played a key role in the expansion, as it produced a 24 percent increase reckoned over the year, and brought in close to 9.3 million euro income. The Polish market amounting to 7 percent of the turnover offered an outstanding achievement, where the company attained 30 percent expansion, but 22 percent growth was also demonstrated in Ukraine. Export markets contributed 17 percent to the income in the second quarter, the company achieving 11 percent improvement in this segment.

Masterplast Nyrt.’s business result (EBIT) grew by 37 percent in the second quarter of 2018 compared with one year earlier, approaching 1.6 million euros, which is attributable to higher turnover, the rising trade margin and improving manufacturing and haulage efficiency. In the April-June period, the company’s after tax profit grew by 95 percent to 1.65 million euros when reckoned over the year. Besides higher turnover and the business result, exchange rate effects also played a role in this sizable leap in profit.

The second quarter saw a significant rise in the output of the Subotica fibreglass mesh and EPS plant. Concurrently with the upswing in production capacity, the number of workers at Masterplast is constantly expanding. At the end of June this year the company had 930 workers, one year earlier there were 879, and at the end of the first quarter the company had 900 employees.

“The initial results of our strategy updated last year can already be seen, building on the opportunities offered by the favourable environment in the branch, we have significantly increased our turnover and improved our result-producing capabilities. Taking the favourable market mood into consideration, we are reckoning on further dynamic growth for the second half year, we are expecting significant expansion chiefly on the Hungarian, Polish and our export markets” – said Dávid Tibor, president of Masterplast Nyrt.

The company’s goal is to become the leading manufacturing and distributor company on the market for products associated with insulation solutions by 2020. To this purpose, the company updated its strategy last year and is paying particular attention to increasing production efficiency and to more effective operation. Last autumn the company announced an additional investment of close to 6.7 million euros in its Subotica plant, by means of which the company will also offer products to segments which are not closely linked with the construction industry. The new, industrial division may also play an important role in helping the company meet the targets set for 2020 of a 110 million euro income and an EBITDA margin above 7.5 percent.

Since 1 August 2018, a new CEO in the person of Róbert Nádasi has been overseeing realisation of the strategic goals at Masterplast Nyrt. The manager replacing László Piry joined the company in 2010, and worked as economic director before being appointed as CEO.

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.