Virus-resistant course of business at Masterplast

Due to its quick response to the coronavirus crisis, and the implementation of streamlined operations and cost-cutting measures, Masterplast has successfully applied for state labor retention and investment grants in several countries. Effective adaptation has helped it maintain its momentum and continue to grow in the face of the pandemic crisis. By continuously maintaining its supply, the Hungarian manufacturer was able to increase its share even in the narrowing market environment during the months of the crisis, thanks to which it significantly mitigated the decline in sales caused by the April COVID shock by the end of the quarter. Although the turnover dropped with 4 percent compared to a year earlier, the company closed the second quarter with a 14-percent-increase in operating profit due to growing trade margins. With its acquisition in Germany, Masterplast has also entered the healthcare market, which can bring new opportunities and further improved the profitability of the company.

Thanks to continuous supply and rquick responses to the crisis, Masterplast was able to gain market share in several countries ahead of its competitors in the narrowing markets, which will gradually resume from the second half of the quarter. In addition to the outstanding domestic sales, the subsidiaries also performed well, while the decline in export turnover was mostly determined by the COVID situation in the Italian, Greek and English markets. With the outstanding performance in June, most of the decline in traffic measured in April was completed by the end of the quarter. The 4-percent-decline in sales was offset by growing trade margins. With an operating profit of EUR 2,757,000, the EBITDA margin reached a record high of 10 percent, which means a 14-percent-increase compared to the base period.

The company has made effective use of the investment and support opportunities provided by the viral situation. As part of this, it has successfully applied for the implementation of the Sárszentmihály roofing film production plant, as well as logistics and infrastructural developments. In addition, the company has benefited from labor retention subsidies in several countries.

In Germany, the acquisition of the Aschersleben production unit is proceeding at the planned pace. Under the management of the company, Masterplast Nonwoven GmbH started operations as a new subsidiary on 1 July. With a Western European manufacturing background, the company is entering the market for higher-profit healthcare products, making a significant contribution to further improving turnover and profitability.

Following the forced holidays in April, production increased significantly at Masterplast’s production bases. The plant has been operating at full capacity in fiberglass production since May, and in addition to the foreseeable order backlog, this will remain the case for the rest of the year. The production of Hungarocell insulation materials was constantly in high utilization, due to a huge demand for Masterplast’s popular thermal insulation product during the crisis.

 “Due to our quick response and excellent teamwork, we successfully coped with the viral situation and closed the second quarter with an increase in our market share. Our expectations for the future are also positive. We expect growth in all major markets for the second half of the year in a more favorable environment, which will be effectively supported by our more efficient adaptation than our competitors and our entry into the healthcare industry”,added Dávid Tibor, President of Masterplast.