- Operating EBIT of EUR 2.5 million achieved
- Liquidity further increased and net debt reduced
Gelsenkirchen, 22 July 2020 - According to preliminary figures, the Masterflex Group was able to continue its profitable development in both the second quarter and the first half year 2020 - despite a significantly clouded environment in many target industries. In the first six months of the year, Masterflex Group generated operating EBIT of EUR 2.5 million, compared with EUR 3.6 million in the same period of the previous year. The Masterflex Group also recorded positive operating EBIT again in the three-month period from April to June. This noticeably limited the effects on earnings of the corona-related revenue decline of 10.9% to EUR 37.4 million in the first half of the year. The main reason for this decline was a very weak second quarter, as expected, in which revenues were down 19.0% on the previous year.
Thanks to the strong focus on future-oriented industries such as medical and laboratory technology and the food industry, Masterflex was able to almost completely offset the negative revenues effects of the corona-related shutdown of the site in China in Q1 2020. In the second quarter, however, the economic downturn in Europe and in industries such as aviation, mechanical engineering and automotive was too sharp - despite a significant recovery in China and continued stable business in the USA. Dr. Andreas Bastin, CEO of the Masterflex Group: "The decisive factor for us was that we were able to offset this revenue shortfall of EUR 4.6 million compared with the previous year, which we had expected, in terms of earnings in the best possible way. The fact that we were nevertheless able to generate operating EBIT of EUR 2.5 million shows how well we have our cost base under control and that we have reacted quickly and, above all, have taken exactly the right path with our "Back to Double Digit" optimisation programme, which was launched in 2019. On this basis, we should then be able to achieve clearly disproportionately positive earnings effects even when revenues recover. The Masterflex Group was also able to further increase its own liquidity and reduce net debt in the first half of the year. Even in the scenario of a possible further decline in revenues in 2020 as a result of the effects of the pandemic, liquidity is assured for the coming quarters. Lower investment volume, short-time working, reduction of working capital, lower tax payments and strict spending discipline can compensate for this.
Masterflex expects to have already seen the sharpest revenue dip in the wake of the COVID 19 pandemic in the second quarter. In the third quarter, the challenges will primarily be in the aviation sector and in the USA - a region that has proven to be very robust in the first six months. At the same time, Masterflex expects Q4 2020 to at least match the previous year's level in terms of revenues. Assuming that an economic upturn becomes apparent in the months from October to December, Masterflex continues to expect a decline in revenues for 2020 as a whole in the order of 10% to 15%. The expectations for operating EBIT are between EUR 2.5 million and EUR 1.0 million.
Note: The complete 2020 half-yearly report will be published on 12 August 2020.