Masterflex Logo

Masterflex SE business development exceeds plan – Medium-term double-digit EBIT margin target already almost achieved

Gelsenkirchen, November 10, 2021 – The Masterflex Group nearly reached the pre-corona level of 2019 with revenue of EUR 59.6 million (9M/2020: EUR 55.8 million, 9M/2019: EUR 62.5 million). Compared to the previous year, the Masterflex Group was able to generate a revenue growth of 6.8%. Although not all customer industries have yet recovered from after-effects of the corona pandemic, overall growth has continued to gain momentum.
Considered in isolation, the Group was already able to return to its pre-corona level in terms of revenue in the third quarter at EUR 20.7 million (Q3/2020: EUR 18.4 euros, Q3/2019: EUR 20.6 million). The high order backlog of the Group at EUR 15.4 million as of September 30, 2021 (December 31, 2020: EUR 9.4 million) underlines the sales and earnings targets. At the same time, the successful implementation of the „Back to Double Digit“ program (B2DD) is reflected in higher profitability. Thus, after nine months, the Masterflex Group is ahead of plan in terms of the targets set so far for the year 2021 as a whole.
Operating earnings before interest and taxes (operating EBIT) improved significantly to EUR 5.8 million (9M/2020: EUR 3.5 million) in the first nine months of 2021 – despite rising raw material prices and the related higher stockpilling of critical materials – resulting in a significant year-on-year increase of 64.7%. The Masterflex Group has therefore exceeded the earnings level before corona in the same period of 2019 (9M/2019: EUR 5.3 million) despite a lower revenue base, which is also reflected in a higher operating EBIT margin. The EBIT margin increased significantly to 9.7% in 9M/2021 (9M/2020: 6.3%, 9M/2019: 8.4%). The Masterflex Group is thus on track for a double-digit EBIT margin with its “Back to Double Digit” restructuring program.
Consolidated EBITDA reached EUR 9.3 million (9M/2020: EUR 6.6 million) in the nine-month period and consolidated net income EUR 3.8 million (9M/2020: EUR 1.4 million). Accordingly, earnings per share rose to EUR 0.39, compared with EUR 0.15 in the same period of the previous year.
Developments in the customer industries were heterogeneous. As in previous quarters, the traditional industrial hose business in the mechanical engineering and automotive sectors in particular showed strong demand momentum. Catch-up effects as a result of the restrained demand in the fiscal year 2020 as well as the conversion to more sustainable production processes had a positive impact on revenue development here. In this area, the Masterflex Group benefited in particular from the high level of material expertise and hose diversity in its portfolio.
Business in the medical technology sector continues to be characterized by the fact that, on the one hand, the special economic situation resulting from COVID-19-relevant equipment has leveled off and, on the other hand, there was a lack of growth impetus in the actual core business in medical technology. Postponements of surgical procedures are still the order of the day, which means that the pre-pandemic level has not yet been reached again for surgeries. In particular, investments and work for new projects and the start of series production of products already developed are still being postponed by a few customers. In line with the long-term orientation of the Masterflex Group, the product portfolio of medical technology hose solutions was consistently further expanded in the first three quarters of 2021. At the same time, production capacities were expanded in line with planning in order to be prepared for the expected growth and catch-up phase.
Activities in the aviation industry continued to progress at a low level. All other companies reported higher sales and earnings year-on-year. Positive growth impetus also came from Asia. However, the increasing shortage of raw materials slightly slowed down the growth momentum in the various sectors.
Dr. Andreas Bastin, CEO of the Masterflex Group: “We are very satisfied with our development in the first nine months. Despite all the challenges arising from the aftermath of the corona pandemic, the tense supply chains and the related rising raw material prices, our growth has stabilized and our profitability is developing in the right direction. We are more convinced than ever that, starting from a good fiscal year 2021, we will achieve the mid-term targets that we have communicated. We have a solid order intake and the fact that not all customer industries by any means have found their way back to growth leaves even further room for improvement.”
Forecast adjusted upwards
At the end of the third quarter, the Masterflex Group’s revenue forecast for the year, which was based on an increase in revenue of 2% to 5%, is above the upper end of the target range. Based on a solid order situation, it is foreseeable that the Masterflex Group will perform better than originally planned in terms of revenue for the full year 2021, which allows the annual targets to be specified and increased.
For this reason, the Management Board expects revenue within a range of EUR 76 million to EUR 78 million for the full year 2021. This equates to year-on-year revenue growth of 5% to 8%. Operating EBIT for the full year 2021 is expected to be significantly above the level of the fiscal year 2020 (EUR 3.2 million) and above the level of the fiscal year 2019 (EUR 5.1 million) – in line with the business development in the first nine months of the current fiscal year, which underscores the successful implementation of the B2DD program given the lower revenue base compared to 2019. Therefore, the Management sees the Masterflex Group full on track to achieve a double-digit EBIT margin again from 2022 on, as previously communicated.


About Masterflex SE:
The Masterflex Group is an expert on the development and manufacture of sophisticated connection and hose systems. With 14 operating units in Europe, America and Asia, the Group is represented nearly worldwide. Current drivers of its growth include internationalization, innovation, operational excellence and digitalization. Masterflex shares (GSIN 549293) have been listed in the Prime Standard of the German Stock Exchange since 2000.

IR Contact:
Susan Hoffmeister
Investor Relations
Phone: +49 89 125 09 03-33
sh@crossalliance.de
www.crossalliance.de

Linda Lenz

"Creativity and perfection are not mutually exclusive, but complementary."

IR Consultant at CROSS ALLIANCE since 2021.
Linda Lenz’s core competencies are public and influencer relations as well as project management.
With a a M.Sc. degree in Strategic Communication and PR and a B.A. in English Studies and Communication and Media Studies, she is fully committed to her clients because she always insists on doing the job right.
4 years of experience in Public Relations and Influencer Relations expertise in the Automotive and Energy Special Supporter ESG industries.

Jens Jüttner

"Designing a customised communication strategy for clients is what drives me. Their success is my reward."

Jens Jüttner has extensive experience in news and business journalism across all presentation formats and channels. As an investor relations consultant, he devotes his energies to the regular communications of listed companies and also provides support with their media relations activities.

Senior Consultant at CROSS ALLIANCE since 2018
BA in Journalism / Banking Officer
Five years as a member of the editorial team of business and investor magazine FOCUS-MONEY
Three years as Head of Department for “Week”
Extensive experience in writing advertorials
Shortlisted for the Alternative Media Prize 2013
Social Media Manager (Chambers of Industry and Commerce) – final project: Development of a hybrid social media campaign for LinkedIn and Twitter for an IR and media agency

T: +49 89 125 09 03 32

Markus Horntrich

"My maxim to ensure optimum performance on all your communications issues: Get up early, give it your all and work hard."

Markus Horntrich is a stock market enthusiast and, as a former editor-in-chief, has extensive experience in financial journalism and a broad network, which he uses as a basis for all aspects of PR/IR communication.

Economics graduate

Self-employed PR/IR consultant and Senior Consultant at CROSS ALLIANCE
Author
19 years at investor magazine DER AKTIONÄR
8 years as editor-in-chief at DER AKTIONÄR

T: +49 89 125 09 03 30
M: +49 170 321 42 26

Michael Lang

"As a former editor-in-chief and full-blooded journalist, a matter particularly close to my heart is ensuring that our clients get noticed in just the right way in the media."

As an experienced business journalist, Michael Lang uses his extensive network in the financial community to give clients the best media relations.

Partner at CROSS ALLIANCE since 2013
Self-employed professional in investor relations since 2010
Head of IR at IBS AG (Prime Standard) for four years
Ten years as a member of the editorial team of financial magazine DER AKTIONÄR (“2010 award for investor magazine of the year”), acting as editor-in-chief and deputy editor-in-chief, in both positions for three years
15 years of experience in financial journalism
Degree in Business Mathematics, Bayreuth University

T: +49 89 125 09 03 34

Susan Hoffmeister

"I support every company with communication just as I do my own. That's my biggest motivation."

Managing Partner Susan Hoffmeister supports listed companies with their investor relations.

Founder & Managing Director of CROSS ALLIANCE communication GmbH
Degree in Business Administration, BA in Finance & Accounting, MBA
Self-employed entrepreneur in investor relations since 2006
Deutsche Börse qualified Supervisory Board member since 2017
Member of the Supervisory Board of LEHNER INVESTMENTS AG
Head of Corporate Communications at Siemens London for five years
Head of IR at various listed companies in the software and IT industry for six years

Extensive IPO experience
T: +49 89 125 09 03 33

Sara Pinto

"My motto is 'Create value through communication'. My international professional background helps me to achieve this. I work with clients to get them the best results."

As an investor relations expert and member of the Cross Alliance team, Sara Pinto places particular emphasis on providing her clients with in-depth consultations and on strategic communication. Her specialist area is sustainability.

Consultant at CROSS ALLIANCE since 2019

MA in Business Administration & Management
Five years as Market Research Manager at FOCUS-MONEY

Extensive experience in B2B sales
Expert in CSR and ESG – contact person for sustainability strategy development, implementation of ESG criteria in corporate communications, and sustainability reporting
Language proficiency: Italian (mother tongue), German, English, Spanish

T: +49 89 125 09 03 35

Sven Pauly

"I develop innovative concepts for our clients, which actively contributes to their success."

Investor relations consultant Sven Pauly has extensive experience in TV news production, and specialises in reporting and regular communications for listed companies.

Senior Consultant at CROSS ALLIANCE since 2016
MA in Corporate Communications/PR
Consultant for investor relations and corporate communications
Extensive experience in capital market consultation
Has held roles in designated sponsoring and public affairs
Over ten years of experience in TV news production

T: +49 89 125 09 03 31