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DGAP-News: Masterflex SE / Key word(s): Annual Results
Masterflex SE presents Annual Report 2021 - Focus on double-digit EBIT margin in 2022
- Consolidated revenue above the forecast range that was raised in the third quarter
- Consolidated operating EBIT of EUR 5.8 million above the pre-pandemic level
- Significant increase in the operational EBIT margin reflects success of B2DD
- Dividend of EUR 0.12 per share (previous year: EUR 0.08) planned
- Forecast for 2022: Revenue expected to increase to between EUR 83 million and EUR 87 million with a double-digit EBIT margin
Gelsenkirchen, March 31, 2022 - Masterflex SE (ISIN: DE0005492938) presented its audited Consolidated Financial Statements for fiscal year 2021 today, confirming the preliminary figures published on March 8, 2022. The Group succeeded in exceeding its revenue forecast range, which was raised after the third quarter, and in achieving a significant increase in earnings and thus also a significant improvement in the operating EBIT margin.
Overall, Masterflex SE generated revenue of EUR 79.1 million in fiscal year 2021. This represents an increase of 10.0% compared to the previous year's revenue figure of EUR 71.9 million. Operating EBIT in fiscal year 2021 was EUR 5.8 million, compared to EUR 3.2 million in 2020, and the operating EBIT margin increased significantly to 7.3% (previous year: 4.4%). Masterflex SE thus exceeded the forecast it had communicated for 2021 in terms of revenue. The company had forecast revenue growth of 5% to 8% year-on-year in its guidance, which was adjusted upwards after the third quarter. In terms of operating EBIT, Masterflex SE also exceeded its target of reaching the pre-pandemic level from 2019. The "Back to Double Digit" (B2DD) optimization program is having the desired effect and played a significant role in the positive development of earnings. Consolidated net income more than quadrupled year-on-year to EUR 3.3 million in the reporting year (previous year: EUR 0.8 million). Earnings per share in accordance with IFRS, basic and diluted, increased accordingly to EUR 0.34 (previous year: EUR 0.08).
The effects of the corona pandemic continued to be felt throughout 2021, particularly in the supply and price situation of raw materials. Thanks to the progress made in the area of productivity and price adjustments, as well as appropriate precautions in the availability of raw materials, Masterflex SE was and is able to manage this situation well in the respective subsidiaries.
In terms of customer industries, Masterflex SE recorded rising demand above all from cyclical sectors such as automotive and mechanical engineering. In contrast, the high-margin business in medical technology showed a flat demand trend due to postponements of operations and the slowdown in special economic activity in the corona environment. By contrast, there was surprisingly more demand from the aerospace industry. The high order intake and, in some cases, corona-related downtime pushed the subsidiary Matzen & Timm to its capacity limits. Excluding this capacity effect, the fourth quarter in particular would have been quite a bit better. By expanding capacity at Matzen & Timm, Masterflex is responding to the surprisingly good order situation so it can work off the high order backlog and order intake with customers from the aerospace industry.
The financial position of the Group has continued to improve compared to the previous year. The Masterflex Group's cash and cash equivalents amounted to EUR 9.6 million as of December 31, 2021 (previous year: EUR 9.2 million). As a result, net debt at the end of 2021 was EUR 15.9 million and thus declined by around 12% compared to the previous year's figure of EUR 18.2 million. The Masterflex Group's consolidated equity increased by EUR 3.7 million to EUR 45.0 million as of the balance sheet date on December 31, 2021 (previous year: EUR 41.3 million). The increase in equity is mainly attributable to the change in the adjustment item for currency translation (EUR 0.9 million) and to the consolidated net profit of EUR 3.3 million. The dividend payment of EUR 0.8 million reduced equity. Despite a simultaneous increase in total assets, the equity ratio (equity in relation to total assets) also increased from 54.1% to 56.7% as of the reporting date.
Business development and expectations in the individual target industries remain positive despite the challenges arising from the aftermath of the corona pandemic and the war in Ukraine. The broad range of applications for Masterflex hoses in various industries means that economic fluctuations can be balanced out. For the full year 2022, the Management expects an increase in revenue to between EUR 83 million and EUR 87 million. This forecast is based on the premise that the measures adopted to combat the corona pandemic will remain at the level of fiscal year 2021 or perhaps even be reduced. The war in Ukraine has not had any significant impact on the development of the Masterflex Group's business thus far. The sustainable achievement of a double-digit EBIT margin from 2022 onwards is still set as a target, so that operating EBIT for the full year is expected to be in a range of EUR 8.3 million to EUR 9.0 million.
"We can look back on a successful 2021 and have returned to our usual growth path following the corona slump. We have done our homework with the successful implementation of our optimization program, and it is now a matter of tackling our medium-term target of revenue growth to EUR 100 million by 2024," commented Dr. Andreas Bastin, CEO of the Masterflex Group.
About Masterflex SE:
The Masterflex Group is an expert on the development and manufacture of sophisticated connection and hose systems. With 14 operating units in Europe, America and Asia, the Group is represented nearly worldwide. Current drivers of its growth include internationalization, innovation, operational excellence and digitalization. Masterflex shares (GSIN 549293) have been listed in the Prime Standard of the German Stock Exchange since 2000.
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31.03.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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