Masterflex SE: Upturn in revenue and return to a double-digit EBIT margin in Q1
• Revenue of € 17.5 million – plus 4.2%
• EBIT margin of 10.4%
• EPS of € 0.13 – plus 30.0%
Gelsenkirchen, 9 May 2016 – The innovative hose manufacturer has had a good start to the 2016 financial year. Revenue of the Masterflex Group, the developer and producer of high-tech hoses and connection systems, increased by 4.2% in the first quarter of 2016 to € 17.5 million. As a consequence, operating earnings (EBIT) rose from € 1.7 million to € 1.8 million, resulting in an EBIT margin of 10.4% (Q1 2015: 10.0%; 2015: 7.6%). Dr Andreas Bastin, CEO of the Group: “This is a good start to the year. And we are working hard to maintain this level. This particularly applies to our profitability, where we had identified a need to catch up at the end of the last year. But we are on the right track with that at the moment.”
Background: besides expanding international activities, particularly in the USA and China, the Group management has been focusing on achieving a sustainable improvement in profitability since the end of the last year. To this end, a series of successive measures relating to procedures and the organisational structure have been implemented since the end of 2015.
This is already starting to bear fruit. Thanks to design-to-cost measures and bundling on the buyer-side, the company achieved a lower rise in the cost of materials, which only increased by 1.9% to € 5.4 million (Q1 2015: € 5.3 million). Staff costs climbed by 4.3% to € 6.7 million in Q1/2016. But this figure already fully reflects the 2016 pay increases.
The Masterflex Group anticipates further gains in efficiency based on improved processes within the company as a result of the construction of an extension at the main Gelsenkirchen site, the foundation stone for which was laid in April 2016. “To date, construction and costs are progressing fully according to plan. We expect to be able to start using the production halls, warehouse and other areas later this year. This will then lead to further savings by 2017 at the latest as substitute warehouses and premises will no longer be needed and logistics channels can be eliminated,” Bastin emphasised.
Net finance costs decreased further to minus € 0.2 million, resulting in consolidated net income of € 1.1 million. Based on this, consolidated earnings per share climbed 30% to € 0.13 (previous year: € 0.10).
The key figures for the first three months of 2016 can be found in the table below.
The full balance sheet as at 31 March 2016, along with the income statement, statement of comprehensive income and cash flow statement for Q1/2016 can be found online at masterflexgroup.com/en/investor-relations/financial-reports/financial-reports-2016.html
| Key figures Q1/2016 | 31.03.2016 | 31.03.2015 | Change |
|---|---|---|---|
| Consolidated revenue (k€) | 17,461 | 16,762 | 4.2% |
| EbitDA (k€) | 2,486 | 2,389 | 4.1% |
| Ebit (k€) | 1,822 | 1,677 | 8.6% |
| EBT (k€) | 1,597 | 1,436 | 11.2% |
| Financial result (k€) | -225 | -241 | -6.6 % |
| Consolidated earnings from continued business units (k€) | 1,099 | 941 | 16.8% |
| Consolidated earnings from discontinued business units (k€) | -3 | -5 | -40.0 % |
| Consolidated net income (k€)* | 1,103 | 923 | 19.5% |
| Earnings per share from continued business units (€) | 0.13 | 0.10 | 30.0% |
| Earnings per share from discontinued business units (€) | 0.00 | 0.00 | |
| Earnings per share (€) | 0.13 | 0.10 | 30.0% |
| Ebit-margin | 10.4% | 10.0% | |
| Staff | 606 | 590 | 2.7% |
| 31.3.2016 | 31.12.2015 | ||
| Consolidated equity (k€) | 26,501 | 26,012 | 1.9% |
| Consolidated total assets (k€) | 55,988 | 54,484 | 2.8% |
| Consolidated equity ratio | 47.3% | 47.7% | |
| * without minority interests |