Stable first quarter 2020
Stable business development in Q1 2020
- Medical technology continues to generate encouraging growth rates; mechanical engineering and automotive industry still subdued
- Production in China almost back to full output after several weeks of shutdown
- Revenues of EUR 20.5 million (-2.9%), operating EBIT of EUR 2.1 million at previous year's level
- Publication of the forecast for 13 May 2020 planned
Gelsenkirchen, 27 April 2020 - The Masterflex Group was able to record stable business development overall in the first quarter of 2020. Consolidated revenues declined slightly by 2.9% from EUR 21.1 million to EUR 20.5 million. Revenues generated with clients in the medical and laboratory technology and food industries continued to develop encouragingly. In contrast, the mechanical engineering and automotive industries continued their weak demand, which was already noticeable in 2019, which had a correspondingly dampening effect on the Masterflex Group's revenues development. The shutdown of the Chinese site for several weeks in the first quarter was a major factor in the decline in revenues. As a result, planned revenues of EUR 0.4 million were not generated. Production is now almost running at full capacity again.
Dr. Andreas Bastin, CEO of the Masterflex Group: "We performed well in the first quarter - particularly against the backdrop of the corona-related shutdown in China and the ambitious figures from the prior-year quarter. Developments in the medical technology business remain very positive. In terms of revenues, we were not able to fully compensate for the shutdown in China and the current weakness in the automotive industry. However, in the first quarter alone we increased our order backlog by EUR 3.5 million, two thirds of which was in medical technology.
Operating EBIT in the first quarter of 2020 was again at the same level as in the same quarter of the previous year at EUR 2.1 million. Accordingly, the EBIT margin was 10.0% after 9.8% in the same period of the previous year. The financial result improved significantly due to the new syndicated loan concluded in 2019. Accordingly, the Masterflex Group was able to improve consolidated net profit slightly from EUR 1.2 million to EUR 1.3 million. This corresponds to earnings per share for the three-month period of 2020 of EUR 0.14 after EUR 0.13 in Q1/2019. Cash flow from operating activities rose to EUR 0.9 million, compared with EUR -0.1 million in the previous year.
The Masterflex Group expects the corona pandemic to have a much stronger impact in Q2 2020. Dr. Andreas Bastin: "We do not expect to see a gradual improvement in the environment until the third or perhaps only the fourth quarter. Overall, we remain cautiously optimistic for 2020. We have positioned the company very robustly for the challenges ahead. A cash on hand of currently EUR 6.9 million as well as a positive and intensive dialogue with our banking partners contribute to this. Thanks to the significant portions of sales in medical, laboratory and food technology, we are classified as systemically relevant. With the exception of the small sites in France and England, we were able to keep all German and US sites in ongoing production. The supply chains are very stable so far. We have target industries with growing demand as well as others with currently weak environments. This mutual compensation is a reasonable starting position to come out of the crisis well." The Masterflex Group is currently developing various scenarios in order to be able to provide a forecast of indicative figures for further development in 2020, if possible, by the date of publication of the quarterly report on 13 May 2020.
Note: The complete quarterly report will be published on 13 May 2020 on www.masterflexgroup.com
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