Masterflex SE: Masterflex Group remains significantly profitable in the second quarter and first half year of 2020 despite corona-related revenue decline
Thanks to the strong focus on future-oriented industries such as medical and laboratory technology and the food industry, Masterflex was able to almost completely offset the negative revenues effects of the corona-related shutdown of the site in China in Q1 2020. In the second quarter, however, the economic downturn in Europe and in industries such as aviation, mechanical engineering and automotive was too sharp - despite a significant recovery in China and continued stable business in the USA. Dr. Andreas Bastin, CEO of the Masterflex Group: "The decisive factor for us was that we were able to offset this revenue shortfall of EUR 4.6 million compared with the previous year, which we had expected, in terms of earnings in the best possible way. The fact that we were nevertheless able to generate operating EBIT of EUR 2.5 million shows how well we have our cost base under control and that we have reacted quickly and, above all, have taken exactly the right path with our "Back to Double Digit" optimisation programme, which was launched in 2019. On this basis, we should then be able to achieve clearly disproportionately positive earnings effects even when revenues recover. The Masterflex Group was also able to further increase its own liquidity and reduce net debt in the first half of the year. Even in the scenario of a possible further decline in revenues in 2020 as a result of the effects of the pandemic, liquidity is assured for the coming quarters. Lower investment volume, short-time working, reduction of working capital, lower tax payments and strict spending discipline can compensate for this.
Masterflex expects to have already seen the sharpest revenue dip in the wake of the COVID 19 pandemic in the second quarter. In the third quarter, the challenges will primarily be in the aviation sector and in the USA - a region that has proven to be very robust in the first six months. At the same time, Masterflex expects Q4 2020 to at least match the previous year's level in terms of revenues. Assuming that an economic upturn becomes apparent in the months from October to December, Masterflex continues to expect a decline in revenues for 2020 as a whole in the order of 10% to 15%. The expectations for operating EBIT are between EUR 2.5 million and EUR 1.0 million.
Note: The complete 2020 half-yearly report will be published on 12 August 2020.
Masterflex Group specializes in the development and production of high-quality hose and connection systems. With 14 operating units in Europe, America and Asia, the Group maintains a nearly global presence. Its growth drivers are internationalization, innovation, operational excellence and digitization. Masterflex shares (German Securities ID: 549293) have been admitted for trading in Deutsche Börse's Prime Standard segment since 2000.
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22.07.2020 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.deLanguage: English Company: Masterflex SE Willy-Brandt-Allee 300 45891 Gelsenkirchen
Germany Phone: +49 (0)209 970770 Fax: +49 (0)209 9707733 E-mail: firstname.lastname@example.org Internet: www.MasterflexGroup.com ISIN: DE0005492938 WKN: 549 293 Indices: Prime all share Listed: Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart, Tradegate Exchange EQS News ID: 1098639 End of News DGAP News Service