- Revenue increase of 2.0% – EBIT margin at 9.0%
- Annual forecast 2015 adjusted
- Package of measures launched to increase efficiency
Gelsenkirchen, 9 November 2015 – In the first nine months of 2015, the Masterflex Group’s revenue with high-tech hoses and connection systems grew to a record € 49.0 million (previous year: € 48.1 million). Nonetheless, business expectations for the second half of 2015 were not met. The increases in staff and material costs of 11.8% (other operating costs) and 11.0% (staff costs), which were designed for stronger growth, resulted in an operating result (EBIT) of only € 4.4 million at the bottom line. Compared to the EBIT of € 5.3 million in the same period of the previous year, the operating result has therefore fallen by 16.6%. This results in an EBIT margin of 9.0% (previous year: 11.0%).
To increase profitability, on 3 November the Executive Board approved a package of measures to ensure a clearly double-digit EBIT margin again in 2016. The guiding principle is the reduction of complexity in internal processes. This includes streamlining human resources and reducing the location and logistics costs resulting from the large number of locations and companies that are there by dint of history. This was implemented for the first time in October with the conversion of the Russian joint venture into an exclusive trading partnership (see announcement of 2 October). The 10,000-item product portfolio will also be managed with more consideration for general profitability in future and focused more sharply on high-revenue and high-margin products. In addition, a more efficient use of distribution channels will be targeted to reduce the administrative costs of order processing.
By contrast, the Masterflex Group achieved cost stability in terms of the use of materials in the first nine months of 2015. The cost of materials was € 16.0 million compared to € 15.7 million in the same period of the previous year. This equates to a cost of materials ratio of 31.9% (previous year: 32.3%). The financial result also continued to develop positively thanks to lower debt; expenses were still € 0.8 million (previous year: € -0.9 million).
The sharper increase in staff costs is partly due to the restaffing of management positions within the Masterflex Group. Alongside European locations such as France and Scandinavia, the management of the US business was also restaffed, as well as management positions for the smooth bore hose business. The resulting one-time costs will largely be accounted for this year. In addition, economies of scale arising from the good growth of recent years were insufficiently utilised throughout the Group, which the package of measures will gradually rectify in the future.
Here, you can find the financial figures for Q3/2015.
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