Masterplast Books Q2 Loss on Lower Demand, Reduced Margins
Listed building materials maker Masterplast booked a second-quarter net loss of EUR 3,475,000 as demand fell and margins narrowed, according to a report by state news wire MTI.
Sales revenue fell 34% to EUR 37,812,000 as the decline in the construction market "intensified" in a "highly competitive environment with shrinking margins", Masterplast said.
To adapt to the changed market conditions, Masterplast focused on reducing operating costs, optimizing production capacities and inventory levels, and more efficient energy cost management. It also restructured the operation of its management, boosting efficiency, and made changes to processes and headcount in both production and operations. As a result, Masterplast's EUR 463,000 EBITDA loss was "significantly smaller" in Q2 than in Q1.
Because of a delay in building energy renovation programs, the market has been characterized by a "wait-and-see" attitude and low demand is expected to last "until at least the start of these programs", Masterplast said. However, with measures tabled to meet European Union energy policy objectives, the medium-term outlook for the insulation market "remains positive" and the company could return to its original growth path from 2024, with annual after-tax profit exceeding EUR 30 million by 2026, it added.
Masterplast said it intended to maintain its current production capacities and continue to implement an "intensive investment strategy".
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