PPE business boosts Masterplast earnings

Manufacturing

Listed Hungarian building materials maker Masterplast had first-half net income of EUR 9.054 million swelling from EUR 2.1 mln the base period, supported by an increase in turnover from its higher-margin personal protective equipment business, which the company entered last year ahead of the second wave of the pandemic, an earnings report published ahead of the opening bell on Wednesday shows.

Masterplast entered the PPE market last summer with the acquisition of a German fleece maker with business partners in both the construction and the healthcare industries.

First-half revenue climbed 82% to EUR 94.418 mln. Cost of materials and services rose at a slower rate, increasing 73% to EUR 71.527 mln, lifting operating profit 314% to EUR 10.898 mln.

Sales of Masterplast's "industrial applications", which includes the PPE business, jumped 494% to EUR 26.907 mln. But sales of thermal insulation also rose a robust 34% to EUR 34.840 mln, and turnover of roofing foils and accessories climbed 111% to EUR 14.257 mln, supported by the acquisition of the plant in Germany.

Earnings per share came to EUR 0.62 in H1, up from EUR 0.14 in the base period.

Masterplast said it forecasts "significantly higher earnings than in the previous year's base for the following quarters as well", adding that the outlook for both the insulation and healthcare business is "favorable". 

The company added that it still expects a "turbulent" raw materials market, but added that "its strong market and production positions ensure a high level of exploitation of the opportunities provided by demand".

Masterplast noted that export restrictions introduced by the government to curb the price of construction materials do not affect the range of products it makes and sells.

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