Strong demand for building materials lifts Masterplast earnings
Third-quarter net income of listed Hungarian building materials maker Masterplast rose 138% year-on-year to EUR 5,018,000, boosted by strong market demand in its core business and higher sales of the non-core PPE business, news agency MTI says, citing an earnings report published ahead of the opening bell on Thursday.
Revenue climbed 35% to EUR 50,695,000. Sales of thermal insulation increased 36% to EUR 21,715,000, and turnover of nearly all of Masterplast's other building industry products rose in the double digits. Sales of "industrial application", which include Masterplast's PPE business, jumped 73% to EUR 8,789,000.
Masterplast entered the personal protective equipment business last year, ahead of the second wave of the pandemic, with the acquisition of a German fleece maker with business partners in both the construction and the healthcare industries.
Earnings per share came to EUR 0.37 for the quarter.
Masterplast acknowledged "supply chain difficulties", paired with "favorable construction demand" on the market in Q3, but said it managed "to deliver outstanding performance by taking advantage of reliance on its own stable supply chains, efficient inventory management, and strong market position".
The company said it expects a "similar business environment" in Q4 and forecasts "significantly higher turnover and profit generation" compared to the base period, reaffirming updated guidance issued in September.
Masterplast upgraded its guidance for 2021 after-tax profit to around EUR 15.1 million in September.
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