Masterflex SE

Good Figures for FY 2016 - Profitability Increased Again

Business news for the stock market

Gelsenkirchen (pta006/27.03.2017/07:30) - '
* Revenue of Eur 66.5 million - growth of 3.7%
* Operating earnings of Eur 6.1 million - EBIT margin grew by a good 25% to 9.2%
* Net income of Eur 2.9 million - earnings per share of Eur 0.34
* Provisional figures for 2016 confirmed

Masterflex SE maintained the growth rates of previous years in financial year 2016: The revenue of the international specialist provider of high-tech hoses and connection systems increased by 3.7% to Eur 66.5 million in 2016. Operating earnings (EBIT) increased by as much as 25.2% to Eur 6.1 million. This equates to an EBIT margin of 9.2%. Even without non-recurring effects, the thus adjusted EBIT still grew by 21.1% to Eur 5.9 million.

Dr Andreas Bastin, CEO of the Masterflex Group: "The past financial year was as labour-intensive as it was successful. Much was accomplished in the past year. In addition to the further significant improvement in profitability, we also grew robustly in terms of innovation. We launched a range of new or enhanced hoses and connection products on the market, such as the Master-PUR L-F Trivolution® and an extruded double hose. In particular, we started developing intelligent hoses. Under the AMPIUS brand, we want to be the very first company on the market to offer networkable options for our entire hose portfolio."

In addition, the Masterflex Group significantly expanded its production and storage capacity. Bastin: "This building is a major project for us, so we are all the more delighted that we were able to make the investment of around Eur 7 million as planned. In addition to optimising our production and delivery capability, we thus successfully concluded the first measures to improve our internal processes at the headquarters in 2016. We expect the extensive and in parts very detailed package of measures to result in a lasting improvement in our efficiency."

Improved cost discipline also contributed to the good operating earnings. The material cost ratio - defined as material costs in relation to gross revenue - of 31.0% was down on the previous year (31.6%). The staff cost ratio was also virtually stable, being only slightly higher than 2015's rate of 39.4% at 39.5%. In addition, other operating expenses were reduced 6.9% to Eur 11.7 million. The depreciation and amortisation of Eur 2.7 million was slightly lower than in 2015 due to the scheduled phasing out of assets.