Masterflex achieves record operating EBIT after nine months – full-year forecast for 2024 confirmed

• Group revenue after nine months of 2024 at EUR 76.9 million (9M/2023: EUR 79.0 million)
• Group operating EBIT at 9-month high of EUR 11.2 million (9M/2023: EUR 11.0 million), operating EBIT margin rises to 14.5% (9M/2023: 14.0%)
• New syndicated loan provides more financial and strategic flexibility
• Full-year forecast confirmed

Gelsenkirchen, November 06, 2024 – Masterflex SE (ISIN: DE0005492938) is maintaining its course of increasing profitability also after nine months compared to the same period of the previous year. In the past third quarter, the development of the previous quarters essentially continued. From January to September 2024, the Masterflex Group generated revenue of EUR 76.9 million after EUR 79.0 million in the same period of the previous year. This corresponds to an economic-related slight decline of 2.6%. Nevertheless, the company was able to increase earnings and profitability. EBITDA amounted to EUR 15.1 million and was therefore 2.7% higher than the previous year's figure of EUR 14.7 million for the first nine months of 2023. Operating EBIT increased by 1.3% to EUR 11.2 million (9M/2023: EUR 11.0 million). The corresponding operating EBIT margin rose accordingly from 14.0% in the previous year to 14.5%. EBITDA and operating EBIT thus reached new record levels after nine months. Consolidated net income amounted to EUR 7.1 million (9M/2023: EUR 7.2 million), influenced by a higher tax rate. This results in earnings per share of EUR 0.74 (9M/2023: EUR 0.75).

As in previous quarters, the decline in revenue reflects the weak economic development in Europe and especially in Germany. Customer sectors such as mechanical and plant engineering experienced a cyclical weakness in demand, as in previous quarters. In addition, the generally high-growth aerospace sector recorded a temporary slowdown in the third quarter, which was attributable to capacity-related factors outside of Masterflex and will not be permanent. In the medical technology sector, Masterflex faced temporary order postponements due to persistently high inventories levels on the customer side. However, catch-up effects are expected in 2025. The food and semiconductor industries showed further robust growth. At a regional level, the economic development in Asia was sluggish alongside Europe. In the USA, the economy remained robust.

The positive earnings performance, despite the slight decline in revenue, continues to result from a favourable high-margin product mix and further efficiency improvements, which were already evident in previous quarters. In addition, Masterflex operates a business that is highly resilient to economic fluctuations thanks to its broad industry expertise in hose and connection solutions. This is also reflected in the development of earnings in the current year.

This year's earnings performance has further improved Masterflex's solid balance sheet situation. Group equity increased to EUR 61.9 million as at September 30, 2024 compared to EUR 57.6 million as at the 2023 balance sheet date. With total assets of EUR 97.5 million (December 31, 2023: EUR 93.7 million), the Group's equity ratio increased from 61.5% as at December 31, 2023 to 63.4% as at September 30, 2024.

Based on the successful business development in the first nine months, the Management Board is therefore confirming its previous forecast for the 2024 financial year. Assuming that there is no substantial deterioration in either the economic situation or geopolitical uncertainties, the Management Board continues to expect revenue in the range of EUR 100 million to EUR 107 million and EBIT in the range of EUR 12 million to EUR 15 million for 2024 as a whole.

Dr. Andreas Bastin, CEO of the Masterflex Group: “We are experiencing economic headwinds in some of our customer industries, but we are nevertheless performing satisfactorily as a Group on the revenue side and are standing like a rock in the surf on the earnings side thanks to continuous productivity and efficiency gains. The newly agreed syndicated loan gives us the necessary flexibility for the further implementation of our future strategy 'Hero@Zero' and at the same time expands our scope for future-oriented investments and M&A activities. We remain confident that we will achieve the goals we have set ourselves for 2024 and beyond.”

Key figures

*) unaudited

The quarterly report as of September 30, 2024 is available online at www.masterflexgroup.com/investor-relations/financial-reports-of-masterflex-se/

Conference Call/Webcast

A conference call/webcast in German with CFO Mark Becks will be held for press representatives, analysts and institutional investors on November 6, 2024, 10:00 am. The investor presentation on the business figures as at 30 September 2024 is available for download at www.masterflexgroup.com.

To participate, please register here: Masterflex SE – Earnings Call Q3 2024

About Masterflex SE:

The Masterflex Group specializes in the development and manufacture of sophisticated connection and hose systems. With 14 operating units in Europe, America and Asia, the Group is represented almost worldwide. Growth drivers are internationalization, innovation, operational excellence and digitalization. Masterflex shares (GSIN: 549293, ISIN: DE0005492938) have been listed in the Prime Standard of the German Stock Exchange since 2000.

IR Contact:

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