Financial Profit Lifts Masterplast Earnings in Q3

Construction

Third-quarter after-tax profit of listed Hungarian building materials maker Masterplast rose 10% year-on-year to EUR 5,555,000, boosted by a financial gain, state newswire MTI writes, citing an earnings report released ahead of the opening bell on Thursday.

Revenue increased 9pc to EUR 55,029,000, climbing on higher sales of thermal insulation.

The direct cost of sales increased at a faster pace, rising 11% to EUR 45,173,000, while payroll costs jumped 24% to EUR 6,852,000, as Masterplast added to headcount in Serbia and raised remuneration "in line with market trends".

Operating profit fell 15% to EUR 4,358,000. However, the bottom line was lifted by a EUR 1,824,000 financial gain, well over the EUR 644,000 gain in the base period. Masterplast noted that the exchange rate effects of net receivables in euros and dollars offset the negative impact of the weaker forint.

Masterplast acknowledged higher operating costs and narrowing margins, but said full-year net income could reach the forecast EUR 18.1m, thanks to increased demand for thermal insulation, assuming a favorable currency environment.

Thermal insulation sales climbed 29% to EUR 28,030,000 in Q3, accounting for 51% of total sales revenue.

Masterplast said it has applied for support for energy efficiency improvement investments in the framework of the government's Factory Rescue Program.

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