Masterplast Books Q1 Loss on Lower Demand, Reduced Margins
Listed building materials maker Masterplast booked a first-quarter net loss of EUR 5,850,000 as demand fell and margins narrowed, state news wire MTI writes, citing an earnings report released ahead of the opening bell on Thursday.
Sales revenue fell 27% to EUR 37,602,000 on a "significant decline in the construction market and lower demand", while Masterplast could sell its finished products, made from raw materials purchased earlier at higher prices, only at reduced prices, the company said.
To address the changed market conditions, Masterplast focused on reducing operating costs, optimizing production and inventory levels, and more efficient energy management. It also restructured its management, reviewed its processes and launched "significant staff optimization" in manufacturing and operations.
Masterplast augured a "significant improvement" from the second half of the year, supported by a wave of energy efficiency-boosting renovation at the European level and the company's own efficiency improvement measures.
The company noted that it had revised its EBITDA forecast for 2023 to EUR 8 million, but said it could return to its original growth path from 2024, and after-tax profit could exceed EUR 30 mln by 2026.
Masterplast said it is continuing to implement its investment strategy, laying the foundation for the growth path.
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