Gelsenkirchen, August 11, 2021 – The Masterflex Group recorded growth again in the first half of 2021 despite the still noticeable dampening effects of the corona pandemic. While revenue in the first quarter of 2021 was still 4.9% below the previous year’s level due to the corona pandemic, the Masterflex Group achieved revenue growth of 14.8% in the second quarter compared to the same quarter of the previous year. Overall, Masterflex closed the first half of 2021 by posting a 4.0% increase in revenue to EUR 38.9 million (previous year: EUR 37.4 million).
Operational earnings before interest and taxes (operational EBIT) amounted to EUR 3.7 million in the first half of 2021 (previous year: EUR 2.5 million), resulting in a significant year-on-year increase of 49.6%. This equates to an operational EBIT margin of 9.5% (previous year: 6.6%) in relation to total output. The Masterflex Group is thus on track to achieve the medium-term target of a double-digit EBIT margin formulated as part of the “Back to Double Digit” program. The efficiency measures implemented and the adjustment of capacities, in particular the closure of production in France and the Czech Republic, are having an impact. Consolidated net income amounted to EUR 2.4 million in the first half of 2021 and is thus 88,7% higher than last year’s figure of EUR 1.3 million. Accordingly, earnings per share amounted to EUR 0.25, compared to EUR 0.13 in the same period of the previous year.
As expected, demand picked up in the second quarter of 2021 due to the ongoing progress of the vaccination program, falling incidence rates and the resulting significant easing of restrictions. Demand momentum was particularly strong in traditional industrial sectors such as mechanical engineering and the automotive industry, which were quite weak in 2020 due to the pandemic. By contrast, the COVID-19-related special boom in the medical technology sector flattened out slightly, as expected. The core medical technology business, which was relevant prior to COVID-19, did not generate any growth momentum due to pandemic-related postponements of operations. Despite the shift in the focus of demand, medical technology contributed a stable 17% to sales revenue (previous year: 20%). The aviation industry is still undergoing structural change; however the order situation is brightening in this area as well. The Masterflex Group’s strategic focus on a wide range of different industries confirms the stability of its business model in uncertain economic times. The increase in the order backlog by around EUR 7 million since the beginning of the year also underscores the company’s focus on long-term growth markets.
“Our development in the first half of 2021 shows that we have done our homework internally in terms of profitability and productivity. At the same time, we are seeing encouraging signs in terms of order intake; the investment backlogs caused by the pandemic are dissolving in various industries and this is already being reflected in our order intake. Even if a certain degree of caution is still appropriate with regard to the virus mutations, I am confident that 2021 will again be a growth year for Masterflex,” said Dr. Andreas Bastin, CEO of the Masterflex Group.
With a view to the full year 2021, the management expects an above-average and profitable business development in the second half of 2021. The Management Board therefore confirms its forecast of an increase in revenue of 2 to 5% compared to fiscal year 2020 and EBIT that is above the previous year in both absolute and percentage terms. This is subject to the proviso that the delta variant or other mutations of the COVID-19 virus do not slow down the development of the global economy again.
Masterflex continues to stick to its general target of return-oriented growth above the growth rate of the economy. This includes the medium-term achievement of the return target of an EBIT margin in excess of 10%. The company continues to regard the achievement of a double-digit EBIT margin by 2022 as achievable.
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The Half Year Report as of June 30, 2021, is available on the Internet at https://www.masterflexgroup.com/investor-relations/financial-reports-of-masterflex-se/.