DGAP-News: Masterflex SE / Key word(s): Annual Results/Forecast
Masterflex Group remains on growth track and increases revenue by 3.4% in 2018
- Operating EBIT of EUR 6.3 million affected by delayed revenue recognition
- Comprehensive package of measures to increase returns in individual subsidiaries announced
- Continued growth expected at stable earnings development in 2019
The revenue trend in 2018 led to a dampening of the earnings trend. Masterflex Group achieved EBITDA of EUR 9.6 million after EUR 10.3 million in the previous year. Operating EBIT developed similarly, decreasing from EUR 7.1 million to EUR 6.3 million. The EBIT margin dropped from 9.5% to 8.1%. Net income for the year amounted to EUR 3.4 million after EUR 4.3 million in the previous year. In addition to the revenue trend, higher personnel costs due in particular to various personnel measures as well as higher material costs had an impact.
Dr. Andreas Bastin, CEO of Masterflex SE: "We are not at all satisfied with the earnings development. Although it will continue to enable us to propose a dividend as in previous years and at the same time strengthen equity for further growth, we had set ourselves higher targets. The environment and demand for our high-tech hoses are intact worldwide, as the analysis of the very good order intake by region and industry shows." Mark Becks, CFO of Masterflex SE: "At the same time, several of our subsidiaries have shown how double-digit EBIT margins can be achieved even in a challenging environment. Unfortunately, we did not succeed in all of our Group companies in 2018."
The Masterflex Group intends to continue its growth course in 2019. Revenue growth in the range of 3.0% to 6.0% is planned. Further measures will be implemented in 2019 to increase profitability, especially at the subsidiaries, which have so far failed to meet the double-digit EBIT margin target. The positive earnings effects should then become visible in 2020/2021. In the current year, the Masterflex Group plans to achieve operating EBIT of at least EUR 6.3 million again. Excluding the costs for the partial restructuring of individual subsidiaries, the operating EBIT margin should also rise slightly again in 2019.
Dr. Andreas Bastin: "We had a good start into 2019 in operating terms. The high order backlog gives us an additional boost. Some of the factors that slowed us down in 2018 were contained by our countermeasures." At the same time, the focus in the first few months of 2019 will be on the final development of more far-reaching action plans and the start of implementation in order to significantly and sustainably increase personnel productivity at the particularly personnel-intensive subsidiaries. Other strategic projects include international sales in particular. Dr. Andreas Bastin: "We are currently finalizing our action plan for sustainable achievement of our return targets and are coordinating it internally with the managing directors of our subsidiaries and the Supervisory Board. Our goal is to be able to present a detailed roadmap to our shareholders in summer 2019 on how we can combine our continued growth to an even greater extent with an increase in returns."
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,
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