DGAP-News

Masterflex SE business development exceeds plan - Medium-term double-digit EBIT margin target already almost achieved - Seite 2

Operating earnings before interest and taxes (operating EBIT) improved significantly to EUR 5.8 million (9M/2020: EUR 3.5 million) in the first nine months of 2021 - despite rising raw material prices and the related higher stockpilling of critical materials - resulting in a significant year-on-year increase of 64.7%. The Masterflex Group has therefore exceeded the earnings level before corona in the same period of 2019 (9M/2019: EUR 5.3 million) despite a lower revenue base, which is also reflected in a higher operating EBIT margin. The EBIT margin increased significantly to 9.7% in 9M/2021 (9M/2020: 6.3%, 9M/2019: 8.4%). The Masterflex Group is thus on track for a double-digit EBIT margin with its "Back to Double Digit" restructuring program.

Consolidated EBITDA reached EUR 9.3 million (9M/2020: EUR 6.6 million) in the nine-month period and consolidated net income EUR 3.8 million (9M/2020: EUR 1.4 million). Accordingly, earnings per share rose to EUR 0.39, compared with EUR 0.15 in the same period of the previous year.

Developments in the customer industries were heterogeneous. As in previous quarters, the traditional industrial hose business in the mechanical engineering and automotive sectors in particular showed strong demand momentum. Catch-up effects as a result of the restrained demand in the fiscal year 2020 as well as the conversion to more sustainable production processes had a positive impact on revenue development here. In this area, the Masterflex Group benefited in particular from the high level of material expertise and hose diversity in its portfolio.

Business in the medical technology sector continues to be characterized by the fact that, on the one hand, the special economic situation resulting from COVID-19-relevant equipment has leveled off and, on the other hand, there was a lack of growth impetus in the actual core business in medical technology. Postponements of surgical procedures are still the order of the day, which means that the pre-pandemic level has not yet been reached again for surgeries. In particular, investments and work for new projects and the start of series production of products already developed are still being postponed by a few customers. In line with the long-term orientation of the Masterflex Group, the product portfolio of medical technology hose solutions was consistently further expanded in the first three quarters of 2021. At the same time, production capacities were expanded in line with planning in order to be prepared for the expected growth and catch-up phase.