Favorable construction demand, raw material supply constraints and price rises characterized the market in 2021, where the Masterplast Group, leveraging its stable supply chain, efficient inventory policy and strong market position, achieved an outstanding result, according to the 2021 annual report by the leading insulation material and construction industry product producer-distributor company in the Central Eastern European region.
Sales increased by 56% compared to last year's base, driven by price and volume growth in the core business sales, as well as sales of protective clothing in Hungary. The Group's trading margin also increased, thanks to the solid performance of the construction segment and higher-margin sales of medical protective clothing. The profitability of the subsidiaries, the capacity utilization of the company's production units and production efficiency also improved, prompting Masterplast CEO Tibor Dávid call 2021 an “unprecedented year of success.”
As a result, EBITDA doubled to more than EUR 22 million, while profit after tax of EUR 16 million was almost 2,5 times the base year performance, earnings per share (EPS) rose to EUR 1,10. Favorable industry trends, Masterplast's strong market and economic position, stable supply chain, manufacturing background and investments provide the basis to achieve the Company's published strategic sales and earnings forecasts.
The summary of the annual report highlights that European climate protection targets, tightening energy regulations and rising energy prices have had a positive impact on industry demand, and in several countries public subsidies are encouraging insulation and renovation works. Although the coronavirus and the resulting measures have not fundamentally affected the construction industry, the economic environment, which has recovered with the easing of restrictions, has also reinforced positive trends in the industry.
At the same time, the shortage of raw materials and the related price increases since the beginning of 2021 have had a significant impact on the business in the Company’s markets. Strategic inventory levels, own production capacity, the quality of supplier relationships, and appropriate pricing were key to success in this commodity-scarce market.
The total annual turnover of the Group in 2021 was EUR 191,489,000, 56% higher than in the base period. In line with industry trends, turnover increased by 42% in the thermal insulation systems product group, which accounts for the largest share of sales and includes mainly own-produced products. Sales of the roofing foils and accessories product group, which includes diffusion roofing foils own manufactured, increased also significantly by 47%, while sales of the dry construction system product group closed 45% above the base.
Sales of heat, sound and water insulation materials increased by 27%, while sales of building industry accessories grew by 6%. A significant part of the sales growth value was driven by an increase in sales in the industrial applications product group (157%), which includes the German factory's healthcare products and the sales of protective clothing launched in December 2020.
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