Gelsenkirchen, August 07, 2024 – Masterflex SE (ISIN: DE0005492938), continued its successful path of increasing profitability in the first half of 2024. Despite a moderate decline in consolidated revenue of 2.1% to EUR 51.6 million in the first half of 2024 due to the economic situation, the Masterflex Group increased margins and earnings significantly. Masterflex increased its EBITDA by 7.4% to EUR 10.1 million (previous year: EUR 9.4 million). Operating earnings before interest and taxes (operating EBIT) grew by 10.8% to EUR 7.5 million (previous year: EUR 6.8 million). Overall, the Masterflex Group thus achieved an operating EBIT margin of 14.6% in relation to consolidated revenue, compared with 12.9% in the same period of the previous year. At EUR 4.8 million (previous year: EUR 4.3 million), consolidated net income was up 13.4% on the previous year. Consolidated earnings per share also increased accordingly from EUR 0.44 to EUR 0.50.
The slight decline in revenue compared to the previous year is due to the economic headwinds in cyclical customer sectors such as mechanical and plant engineering. At a regional level, activities in Asia were also slightly down on the previous year because of the economic and uncertain geopolitical situation. In contrast, the aerospace, food and semiconductor sectors continued to show dynamic growth, while at a regional level, the robust US economy is reflected in the figures with growth in activities in the USA.
The positive earnings development is based on a favorable product mix with a higher proportion of higher-margin sales. On the other hand, price adjustments and efficiency improvements in purchasing contributed to the positive development. In addition, significant inflationary wage increases were partially offset by productivity gains.
The positive earnings development also led to a further strengthening of the balance sheet. Equity amounted to EUR 62.4 million as of June 30, 2024, compared to EUR 57.6 million at the end of 2023, resulting in a solid equity ratio of 64.5% (December 31, 2023: 61.5%) on total assets of EUR 96.8 million.
Looking ahead to the rest of 2024, the Management Board remains optimistic that the targets set for the current financial year will be achieved, despite the necessary caution given the economic conditions. Thanks to its broad industry expertise in hose and connection solutions, the Masterflex Group operates a business that is highly resilient to economic fluctuations. This is also reflected in the current year. While business in the traditional, cyclically sensitive industries continues to face moderate headwinds, stable and robust growth is expected in the medical technology, aerospace, life science and other specialty industries.
Based on the successful business performance in the first half of 2024, the Management Board confirms its previous forecast for the 2024 financial year. Assuming that there is no substantial deterioration in either the economic situation or geopolitical uncertainties, the Management of the Masterflex Group continues to expect revenue in a range of EUR 100 million to EUR 107 million and EBIT in a range between EUR 12 million and EUR 15 million for 2024 as a whole.
Dr. Andreas Bastin, CEO of the Masterflex Group: "We are proud that we can show first positive effects on the earnings side from our HERO@ZERO program of the future. Our clear orientation toward profitability and our focus on higher-margin products is becoming increasingly visible in our key profitability figures. At the same time, we are preparing our company for the transition to a circular economy by establishing the necessary interfaces with dealers, customers, transporters, disposal partners and others via various network projects, so that we can look ahead with optimism in the short, medium and long term. We are on track for the current financial year. Our order intake in the first half of 2024 was stable despite the challenging economic conditions, while the order backlog as of June 30, 2024, was EUR 20.0 million and thus remains at a strong level. In short, as of today, we are heading for another successful financial year 2024, particularly on the earnings side."
Key figures
in EUR thousand | 6M/2024* | 6M/2023* | Change |
Group revenue | 51,599 | 52,684 | -2.1% |
EBITDA (operating) | 10,069 | 9,371 | 7.4% |
EBIT (operating) | 7,508 | 6,779 | 10.8% |
EBIT | 7,420 | 6,647 | 11.6% |
EBT (operating) | 6,843 | 6,220 | 10.0% |
Financial result | -665 | -559 | 19.0% |
Group result | 4,840 | 4,268 | 13.4% |
Consolidated earnings per share (EUR) | 0.50 | 0.44 | 13.6% |
EBIT margin (operating) | 14.6% | 12.9% |
|
Net return on revenue | 9.4% | 8.1% |
|
Employees (number) | 606 | 618 | -1.9% |
in EUR thousand | 30.06.2024* | 31.12.2023 | Change |
Group equity | 62,427 | 57,602 | 8.4% |
Group balance sheet total | 96,797 | 93,691 | 3.3% |
Group equity ratio | 64.5% | 61.5% |
|
*) unaudited
The interim report for the six months as of June 30, 2024 is available online at www.masterflexgroup.com/investor-relations/financial-reports-of-masterflex-se/
Conference Call/Webcast
A conference call/webcast will be held for press representatives, analysts and institutional investors on August 7, 2024, 10:00 am. The investor presentation on the first quarter 2024 business figures will be published on www.masterflexgroup.com.
To participate, please register here: Masterflex SE - Earnings Call H1 2024.