On the export markets, reckoned as the second largest in terms of turnover, income essentially stagnated, whilst in Romania the July-September period experienced a significant fallback in the construction industry, as in Masterplast’s turnover there. The company experienced the highest development in Poland, where revenue expanded in the third quarter by 43 percent to 2.5 million euros compared to one year ago. In Ukraine, the company’s turnover grew by close to one fifth, to 2.9 million euros.
In the third quarter, the Masterplast Group significantly increased the output of its Subotica fibreglass mesh factory and to a smaller extent the production of the Kál foam foil plant. Primarily due to the expanding production in Subotica, the Company’s manufacturing efficiency improved and manufacturing achievement grew. At the same time the company sold the Sfântu Gheorghe EPS production line which was closed down in 2018, leading to a quarterly loss of around 270 thousand euros.
The increasing revenue, as well as the rising trade margin led to the company’s business result increasing by 32% in the third quarter without the effect of selling the machine, together with the unique item by 14%, thus reaching 1.7 million euros. The quarterly exchange rates had a negative influence on the financial result, which even so improved overall compared with the base period. All in all, the group’s profit after tax in the last quarter grew by 3%, including up till the end of September, by close to 900 thousand euros. At the end of September, the company employed 923 people, whilst there were 917 one year earlier.
“Construction industry expectations in Hungary continue to be positive, the constant increase in our manufacturing capacity and our completed developments as well as those underway at present provide a good basis for exploiting the boom experienced both here at home and in other countries of the region. In line with our updated strategy, our goal is still for us to become the leading manufacturing and distribution company on the market for products associated with insulation solutions by 2020” – said Tibor Dávid, president of Masterplast Nyrt.
Last autumn the company announced an additional investment of close to 6.7 million euros in its Subotica plant, with which the amount dedicated to creating and increasing the manufacturing capacity there grew to 15.1 million euros. By means of the new development, 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.
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.