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MASTERFLEX – Technische Schläuche & Verbindungen
MASTERFLEX – Technische Schläuche & Verbindungen

B2DD optimization program proves effective, medium-term targets confirmed

· Consolidated revenue of EUR 71.9 million in 2020 at the upper end of the forecast range · Group operating EBIT of EUR 3.2 million exceeds forecast for 2020 · “Back to Double Digit” optimization program on track, initial positive effects evident · Medium-term targets confirmed with a sustained double-digit EBIT margin

 

Gelsenkirchen, March 31, 2021 – Masterflex SE (ISIN: DE0005492938) published its Annual Report for fiscal year 2020 today. In a fiscal year severely impacted by the corona pandemic, the Group succeeded in achieving the upper end of the forecast range for revenue and even exceeded its own targets for operating EBIT. 

In total, the Masterflex Group generated revenue of EUR 71.9 million in fiscal year 2020. This is a 10.1% decline compared to the previous year's revenue of EUR 80.0 million, as expected. Activities in the aerospace, automotive and mechanical engineering sectors in particular were adversely affected by the negative effects of the COVID-19 pandemic. By contrast, its performance in the medical technology sector was quite positive. Together with the activities in the food and pharmaceutical industries, this partly compensated for declines in revenue in areas more severely affected by the pandemic.

The combination of strict cost discipline together with the efficiency measures implemented as part of the “Back to Double Digit” (B2DD) optimization program enabled the Masterflex Group to partially compensate for the decline in revenue on the earnings side. As forecast, the Group’s operating EBIT of EUR 3.2 million was below the previous year’s figure of EUR 5.1 million, yet exceeded the forecast for the full year 2020, which foresaw operating EBIT in the range of EUR 1.0 million to EUR 2.5 million. Accordingly, the operating EBIT margin for the full year 2020 was 4.4%, compared to 6.3% the previous year. EBITDA reached EUR 7.9 million in the past twelve months, compared to EUR 9.7 million in the same period of the previous year. As expected, consolidated net profit as of December 31, 2020, was down on the same period of the previous year (EUR 2.5 million) at EUR 0.8 million.

The Group improved its financial position compared to the previous year. The Masterflex Group’s cash and cash equivalents amounted to EUR 9.2 million as of December 31, 2020 (previous year: EUR 6.9 million). As a result, net debt at the end of 2020 was EUR 18.2 million, a reduction of 24% compared to the previous year’s figure of EUR 23.9 million. Group equity of the Masterflex Group decreased by EUR 0.73 million to EUR 41.3 million as of the balance sheet date on December 31, 2020. The decrease in equity is mainly due to currency differences and the payment of the dividend for fiscal year 2019. Consolidated net profit for 2020 of EUR 0.8 million resulted in an increase in equity. With a simultaneous reduction in total assets, the equity ratio rose from 51.5% to 54.1% in fiscal year 2020.

"We are very satisfied with fiscal year 2020 in view of the impact caused by the pandemic. The fact that we can look back on a positive business performance despite the difficult conditions is largely due to the consistent implementation of our “Back to Double Digit” optimization program. With an improved financial position despite the recession, we can look forward with confidence to the current year, in which we hope to return to our growth path as the situation with regard to the infection returns to more normal levels. Considering our successes, we expressly confirm our medium-term targets of a sustainable double-digit operating EBIT margin," commented Dr. Andreas Bastin, CEO of the Masterflex Group.
 

Key Figures / Masterflex Group
(in EUR thousands)

2020

2019

Change

Consolidated revenue

71,881

79,969

-10.1%

EBITDA

7,892

9,656

-18.3%

EBIT (operating)

3,167

5,058

-37.4%

EBIT

2,335

4,542

-48.6%

EBIT margin (operating)

4.4%

6.3%

 

Net profit

793

2,532

-68.7%

Consolidated earnings per share (in EUR)

0.08

0.26

-69.2%

 

 

2020

2019

Change

Group equity

41,285

42,015

-1.7%

Group equity ratio

 

54.1%

51.5%

 

Total Group assets

76,354

81,559

-6.4%

 

Dividend
The Management Board and Supervisory Board propose to the Annual General Meeting to distribute a dividend of EUR 0.08 per share (previous year: EUR 0.07 per share) from the net retained earnings of Masterflex SE as of December 31, 2020. The Annual General Meeting is scheduled to be held on May 19, 2021.

Annual Report
The 2020 Annual Report has been published in German on www.masterflexgroup.com. The English version of the 2020 Annual Report will be published on www.masterflexgroup.com on April 12, 2021. 

Conference Call 
A conference call will be held for representatives of the media, analysts and institutional investors at 10:00 a.m. on March 31, 2021. The latest company presentation on the 2020 financial figures is also available in the Investor Relations section of www.masterflexgroup.com.
 

 

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