Masterplast closed peacetime with record

In 2020 Masterplast accomplished the best first quarterly results in its history. The Group’s turnover increased by 13% besides a 21-percent increase of the operational result, while the profit or loss after taxation increased by 14% compared to the reference period. The demand for insulation material experienced in Hungary played a significant role, of what the largest Hungarian construction material manufacturer could take advantage via its steady supply chain.

The environment in the industry is getting more and more insecure since March, however the negative affect has not been observed yet in the results of the company due to the longer cycles. The first quarterly results of the group’s turnover increased by 13% compared to the last year. The produced EBITDA is worth €1,126 which equals to 4,5 EBITDA proportion by contrast the 4,2-percent EBITDA proportion equals to €934,000 reached last year, meaning a 21-percent increase. The profit or loss after taxation increased by 14%, i.e. €34,000, compared to the reference period. The response given to the extremely high demand experienced in March played an immense role in achieving record-breaking turnover and operational result.

Besides the positive results, the prospects of the industry have noticeably worsened and became insecure in the situation by the end of the quarter.

Due to the restrictions, the export activity to the western countries affected by the virus became more difficult or had to be paused. Besides the overall economical downturn and emergency restrictions, the starting of new investments and the number of the construction permits have significantly decreased as well. The projects carried out pursuant to the previous governmental incentives mostly entered to the final stage, anticipating tightening opportunities due to the lack of new holistic governmental incentives. The previously announced state incentives, the allowance on the rust zones, and the renovation mood among the citizens might result in a positive effect; however further state allowance on construction and renovations needs to be started to balance the permanently worsening industrial environment.

The company reacted to the new reality with fast measurements. The steady operation is ensured by exploiting own manufacturing opportunities, stable supply chain, cost-efficient changes and restructuring the work schedules. Besides the financial stability, the company ensures a business continuity and the supply of their partners by maintaining the high-performing services. Masterplast does not plan downsizes and counts with retaining its staff. Knowing the changed consumer habits, the company aims to further develop its own online presence and support the partners e-commercial and online development.

The production of diffusion roofing foil started in last autumn continues according to the original plans. The production line was installed successfully in the headquarters in Sárszentmihály, and we prepared for the starting of the initial manufactures.

On the general meeting, which was exceptionally held online, important decisions were taken. The payment of the dividend is delayed for a year in order to sustain the financial stability and due to the financial demands of the investments. The company counts with the previously announced dividend payment forecast. Furthermore, the Executive Board has also renewed. We welcome Margaret Elizabeth Dezse, financial expert with decades of experience acquired at EY, and Ottó Sinkó, co-CEO and co-owner of Videoton Holding, the largest company with Hungarian majority ownership. Dirk Theuns, European leader of IKO Group, continues his work in the board.