Masterplast Reports Highest Ever Third Quarter Profit

The Hungarian construction material production company's sales increased by 9% in Q3 compared to the base period – in economic recession fears environment – driven by strong sales performance related to insulation products.

A statement published on the website of the Budapest Stock Echange highlights that the impact of increased inventory levels at higher prices (widely typical of the industry – driven by inflationary pressures and supply constraints) and increased operating, energy costs resulted 9% lower quarterly EBITDA compared to base year.

Meanwhile, the total EBITDA (EUR 19,363,000, 11.8% EBITDA margin) was EUR 156,000 higher than the base of EUR 19,207. As a result of favourable exchange rate movements for the Group, the Company achieved its highest ever third quarter profit after tax (EUR 5,555,000), 10% above the base figures.

The overall profit after-tax was EUR 17,031,000, 20% higher than a year earlier, which is 94% of the annual profit target published in September. If favourable currency movements for the Company continue to exist, with further strengthening of the insulation market in the renovation sector and reliance on Masterplast's strong manufacturing base and stable supply chain could ensure achievement of the annual profit after-tax targets forecasted in September.

In addition, low (~2%) interest rate loans, bonds of the Group and raised funds from market capitalisation after the quarter will allow implementation of strategic investments.