MASTERPLAST Group Financial and Sustainability Report

The building insulation materials firm Masterplast’s revenue (EUR 136 million) declined by 6.2% compared to the 2023 base due to the persistently weak industry environment, despite the successful entry into the market for Certified Energy Savings (HEM), which generated significant additional sales, the company reported on the website of the Budapest Stock Exchange this Friday.

However, "thanks to efficiency measures, the Group’s profitability improved significantly and in 2024 the Group was already operating at a predominantly positive EBITDA level," they say.

In the base year, the Company recognised a significant inventory write-down, which was not necessary in the year under review. As a result, the Company’s EBITDA result was EUR 2.2 million, EUR 8.4 million higher than in the base year. Due to the low capacity utilisation of the factories, the Company’s profit after tax, including depreciation and amortisation and the financial result, was still a loss. The after-tax loss of EUR -4.6 million in 2024 represents an improvement of around EUR 11 million compared to the loss of EUR -15.6 million last year. The Company’s medium and longterm outlook remains positive. EU energy targets guarantee significant market potential in both the renovation and new construction segments.

Both the Hungarian and the European markets are already showing signs of a steadily strengthening construction sector in the coming periods.

• Due to persistently high interest rates and the fact that EU renovation programs are still only in their formative stages, the European construction sector remained subdued in 2024, with widespread postponement of projects across both new construction and renovation segments. The Hungarian home renovation programme launched during the year has not yet had a stimulating effect on the market.
• The Group’s total consolidated revenue for 2024 amounted to EUR 136 137,000, representing a 6.2% decrease compared to the base period. Revenue from the thermal insulation systems product group — comprising 51% of total sales and largely consisting of own-manufactured products — fell by 12% year-on-year. Sales in the heat, sound, and water insulation materials product group increased by 19%, supported by slab insulation campaigns and the recent introduction of own-manufactured XPS products. Revenue declined in the roofing foils and accessories (-3%), dry construction systems (-26%), and building industry accessories (-14%) product groups. The industrial applications product group showed a 16% increase in revenue thanks to the sale of Certified Energy Savings (HEMs), despite an overall 51% decline compared to the base period in traditional product lines within this segment.
• Revenue declined in most markets, including Hungary — Masterplast's largest market — where sales fell by 8%. Only Serbia (+10%), Germany, and North Macedonia recorded year-on-year growth.
• In 2024, the Group’s production capacities operated more cost-effectively under a reorganized structure tailored to current demand conditions. The Serbian fiberglass plant achieved profitability in contrast to the prior year. Output at the Serbian fiberglass and German nonwoven fabric facilities increased compared to 2023, while the Sárszentmihály plant (producing fleece and roofing foil) maintained production levels close to the previous year. EPS manufacturing units operated with low capacity utilization. Meanwhile, production was successfully launched at the new XPS plant in Subotica, which is now serving Group needs with increasing output.
• Taking into account the change in own-manufactured inventory, the Company’s total material costs and contracted service expenses decreased by 13% year-on-year.
• Personnel expenses increased by approximately 13% compared to the base period, while the number of employees remained largely unchanged due to the headcount optimization already reflected in the 2023 base. At the end of December 2024, the Group employed 1,150 people, compared to 1,138 at the end of the base period.
• Under other operating results, the Company recognized a profit of EUR 1,173,000 in 2024, compared to a loss of EUR 3,677,000 in the previous year. In 2023, significant inventory impairment was recorded, which was not necessary in the reporting period.
• Depreciation and amortization expenses increased by 17%, primarily due to the new EPS plant in Italy and the XPS plant in Serbia.
• As a result, the Company achieved EBITDA of EUR 2,205,000 in 2024 (representing an EBITDA margin of 1.6%), compared to an EBITDA loss of EUR 6,128,000 (-4.2% margin) in the base year. The operating result for 2024 was a loss of EUR 5,318,000, significantly improved compared to the prior year’s loss of EUR 12,549,000.
• Interest income declined, while interest expenses remained at the level of the previous year. Due to favorable exchange rate effects, other financial income totaled EUR 2,510,000, compared to a loss of EUR 2,503,000 in the base period.
• The Group’s net loss for 2024 amounted to EUR 4,641,000, compared to a net loss of EUR 15,610,000 in the previous year.