Towards immense revenue and profit growth, Masterplast could close an outstandingly successful year. The mid-term plans of the company includes further development in its own production background, that led to the announcement of a new manufacture investment by the leaders of the company.
According to the forecasts, the annual turnover can achieve €107 million after a 10-percent growth, while the profit or loss after tax will expectedly grow with 45% compared to the result of last year, and can reach €4,8 million. Many factors contributed to the best results achieved in the past ten years. By expanding the production emission and the operational efficiency, the company has founded a base to take advantage of the favorable industrial environment and, with the strategic products, has immensely increased its market share. The favorable foreign exchange environment has also supported the outstanding achievement.
In Masterplast’s strategy, the development of the manufacturer background plays a crucial role. Due to its manufacturer investment in the amount of €20 million established in the past 5 years, the company is able to grow its product base by own production in most of its key products. With a 25-percent growth in the fiber glass emission and the 30-percent growth in the EPS insulation systems, the proportion turnover of products from own production has reached 45% concerning the total turnover.
The T-Cell acquisition realized in June 2019 provided an expanding product background to the outstanding growth reached in the Hungarian market. At products mainly for industrial use, the company had to face with a slower upswing concerning the Masterfoam investment.
The longer goal of the company is to possess own production in its every strategic product category, to further strengthen its market positions and to exceed 65% in the own-produced products in the proportion of turnover. In the light of this, the leaders of the company have announced to start producing another product category. In the framework of the project Sarszentmihaly 2.0, a line of German technology will be installed which is capable of producing 30 million square meters high quality of diffusion roofing foil. The value of the investment is €1,3 million, which will be accomplished by leveraging state aids according to the plans of the company. The production expectedly starting in the second quarter of 2020 will improve the security of supply and gives opportunity to a further dynamic growth.
In the framework of the growth debenture program of HNB (Hungarian National Bank), Masterplast implemented a successful bond issue on December 4, 2019. The bonds were issued with oversubscription, in the value of HUF6,02 billion (~€18,2 million), with 7-year maturity and a 1,93-percent average yield. The borrowing from the bonds provides a favorable opportunity to the company to redeem its credits and restructure the financing.
The company in its midterm forecast by 2022 indicates a decelerating revenue growth, a further expanding production emission, a more effective operation and higher efficiency which is supported by the favorable rate of bond yields from 2020.
Relating to the investors value creation, the company has strengthened its dividend policy disclosed last year, which focuses on the value creation of shareholders. The company provides a stable base to the exchange rate’s further elevation with its efficient operation and successful investments in production. Furthermore, with the continuous increase of free float, the BUX membership could be a realistic goal as well.
Dávid Tibor, president of Masterplast
“The results were warmly welcomed of course; however, we are already working on to build a company which is successful in the next decade. We are working on a sustainable Masterplast that is able to adapt to the rapidly changing business environment due to its agile organizational operation, and to correspond the needs even in growing competition. By 2030 we will have possessing own production in every strategic product and increasing our market share due to our stable background.” – added Dávid Tibor, president of Masterplast.
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.