Masterplast: Stabilized Financial Management in 2024

Masterplast Plc. has stabilized its financial management in the 2024 financial year, primarily by reorganizing its operational processes, increasing production efficiency and making redundancies, the company’s CEO Tibor Dávid announced at the group's investor briefing on Thursday.

Speaking at the event, held at the group's headquarters in Sárszentmihály, southwest of Budapest, the CEO said the construction industry is an industry "marked by strong cycles", with a crisis again after 2008 – this one has been going on for 2.5 years – but he hopes this will be shorter than the one before. He indicated that last year was characterized by a high-interest rate environment, subdued investment, a wait-and-see market and subdued demand due to the disinflation, leading to fierce competition in the sector, a development that also brought price cuts.

He pointed out that geopolitical tensions increased uncertainty, with the availability and price of some commodities becoming hectic. By the second half of 2024, the first signs of a positive turnaround were visible, underpinned by new housing demand, while interest rates started to fall, leading to a growing interest in credit, he added.

Dávid Tibor pointed out that Masterplast has been restructured and has stabilized its financial management, so it expects to enter the growth cycle in a strong competitive and stable financial position. As he said, due to the unpredictability of the global environment, the management wants to adopt a strategic and operational model that can react quickly to changes, and to this end a new business unit structure has been introduced, with each business unit having its own leader, as the company aims to increase agility and product development speed based on market feedback.

The CEO mentioned two major developments for the future: the development of modular housing systems, for which they expect strong demand in the coming years, and the production of glass wool, which will be launched in Szerencs in the summer. With the latter, Hungarian glass wool production will be restored after 2008, which will also reduce regional import dependence.