MASTERFLEX O.N.
MASTERFLEX O.N.
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Ticker: MZX
ISIN: DE0005492938

DGAP-News: Masterflex SE: Despite corona-related revenue weakness Masterflex Group remains significantly profitable in H1 2020

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DGAP-News: Masterflex SE / Key word(s): Half Year Results
Masterflex SE: Despite corona-related revenue weakness Masterflex Group remains significantly profitable in H1 2020

12.08.2020 / 08:00
The issuer is solely responsible for the content of this announcement.


Masterflex SE: Despite corona-related revenue weakness Masterflex Group remains significantly profitable in H1 2020

- Revenues down by 10.9% with good development in medical technology and food industry

- Operating EBIT amounts to EUR 2.5 million


Gelsenkirchen, 12 August 2020 - With a decline in revenues of 10.9% to EUR 37.4 million in the first half of 2020, the growth course of the Masterflex Group, which had lasted ten years, was temporarily interrupted due to Corona. Continued positive development in the Masterflex Group's future markets such as medical and laboratory technology, life sciences and the food industry was unable to offset the fact that the effects of the COVID 19 pandemic and the challenging developments in the aviation, automotive and mechanical engineering industries led to an overall decline in revenues of 19.0% in Q2 2020.

Dr. Andreas Bastin, CEO of Masterflex Group: "In our opinion, we saw the low point of revenue development in Q2, even though we expect the third quarter to remain challenging. Thanks to the optimisation programme we have already started in 2019 and additional cost-cutting measures in 2020, we were able to continue to operate profitably in such a difficult second quarter and to show a satisfying level of profitability for the entire first half of the year". Masterflex generated consolidated earnings before interest, taxes, depreciation and amortisation (EBITDA) of EUR 4.7 million (previous year: EUR 5.6 million). Operating EBIT in the first half of the year amounted to EUR 2.5 million, compared with EUR 3.6 million in the prior-year period. The bundled purchasing of materials, for example, had a stabilizing effect on earnings, as a result of which the cost of materials ratio was reduced from 33.2% to 30.8%. Various measures were also consequently implemented in the personnel area starting with the B2DD optimisation programme, which were then significantly intensified again in 2020 in the course of the pandemic. The personnel reductions carried out and the effects from the partially implemented short-time work led to a decrease in personnel expenses by 5.5% from EUR 16.3 million to EUR 15.4 million. The earnings per share are calculated at EUR 0.13 (previous year: EUR 0.22). At the same time, we succeeded in further reducing net debt and increasing liquidity in the first half of the year.

Mark Becks, CFO of the Masterflex Group: "The mostly achieved stabilization of our earnings despite this difficult revenue trend is already an indication of what should be possible when revenue picks up again. We remain very cautious in our forecast for 2020, but at the same time we are sticking to our goal of achieving a double-digit EBIT margin again by 2022. In our revenue performance, too, I see 2020 as only a temporary "slip-up" due to the COVID 19 pandemic. Our stable growth over the past ten years shows that our market drivers are intact, that we are benefiting from the increasing focus on medical and laboratory technology, life sciences and the food industry, and that we can return to the growth path with corresponding speed. For 2020, the company expects a decline in revenues of 10% to 15% and a decline in EBIT to EUR 1.0 to 2.5 million. A double-digit EBIT margin is the target for 2022, and the revenues mark of EUR 100 million should be exceeded in 2023/2024.

Selected key figures
in €k
30.06.2020 30.06.2019
Consolidated revenue 37,378 41,940
EBITDA 4,665 5,617
EBIT (operative) 2,460 3,620
EBIT-Marge (operative) 6.6% 8.6%
EBIT 2,249 3,533
Consolidated result 1,292 2,130
Consolidated earnings per share (€) 0.13 0.22
    31.12.2019
Consolidated equity 42,254 42,015
Consolidated equity ratio 52.3% 51.5%
Consolidated balance sheet total 80,716 81,559
 

Note: The half-year report as of 30 June 2020 is available on the Internet at
https://www.masterflexgroup.com/investor-relations/financial-reports-of-masterflex-se/

Masterflex Group specializes in the development and production of high-quality hose and connection systems. With 14 operating units in Europe, America and Asia, the Group maintains a nearly global presence. Its growth drivers are internationalization, innovation, operational excellence and digitization. Masterflex shares (German Securities ID: 549293) have been admitted for trading in Deutsche Börse's Prime Standard segment since 2000.

Contact: Frank Ostermair/Linh Chung, Better Orange IR & HV AG, Phone: 49 89 88 96 906 14, E-mail: [email protected]



12.08.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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Language: English
Company: Masterflex SE
Willy-Brandt-Allee 300
45891 Gelsenkirchen
Germany
Phone: +49 (0)209 970770
Fax: +49 (0)209 9707733
E-mail: [email protected]
Internet: www.MasterflexGroup.com
ISIN: DE0005492938
WKN: 549 293
Indices: Prime all share
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange
EQS News ID: 1115043

 
End of News DGAP News Service

1115043  12.08.2020 

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