Masterflex with strong first quarter - Revenues rise by 15.6% - Group EBIT increases by 35.2%

Masterflex with strong first quarter - Revenues rise by 15.6% - Group EBIT increases by 35.2%

• Significant revenue and EBIT growth in the first quarter of 2023
• Consolidated revenue increased by 15.6% to EUR 27.6 million
• Consolidated operational EBIT at EUR 4.1 million 35.2% up year-on-year
• EBIT margin further increased to 15.0% (3M/2022: 12.8%)
• Order backlog increased further in the first quarter

Gelsenkirchen, May 09, 2023 - The Masterflex SE (ISIN: DE0005492938)  has made a strong start to the 2023 financial year with a high-growth first quarter. Thanks to a sustained robust order situation, the Group is continuing the successful development of the previous year and significantly increasing revenues and earnings.

Masterflex generated revenues of EUR 27.6 million in the first three months of 2023. This corresponds to a year-on-year increase in revenue of 15.6% compared to the previous year's value of EUR 23.9 million. The consolidated operational EBIT of the first quarter of 2023 amounts to EUR 4.1 million and therefore increases disproportionately to revenues by 35.2% compared to the same period of the previous year (3M/2022: Euro 3.1 million). The EBIT margin in the Group thus increased to 15.0% after 12.8% in the same period of the previous year. At the net level, consolidated earnings amount to EUR 3.4 million, resulting in an increase of 62.3% compared to the previous financial year of EUR 2.1 million. Accordingly, consolidated earnings per share were EUR 0.36 (3M/2022: EUR 0.22).

The positive development is driven by all companies. With regard to individual customer sectors, the sustained high growth in the aviation business and, among others, the business in the life science and semiconductor technology sectors are particularly outstanding. The medical technology sector also developed very dynamically, with the high-margin medical technology business now rising to 19% of total revenues (3M/2022: 18%). In regional terms, Asia, the USA and Brazil stood out the most. In addition to higher sales volumes, price effects are also driving the overall high growth in the Group.

The disproportionate growth in earnings compared to revenues is mainly due to the improvement in margins as a result of economies of scale achieved thanks to the sustained volume growth and a favourable product mix. In addition, Masterflex has so far been able to largely compensate for the sharp rise in raw material, energy and logistics costs. The sharp rise in wage and salary costs due to inflation is offset by higher productivity, which is reflected in a slightly lower personnel cost ratio of 33.1% compared to 33.3% in the same period of the previous year.

The balance sheet position has also improved further as of March 31, 2023. At the end of March 2023, the Group's equity amounted to EUR 55.3 million, compared to EUR 52.0 million as of December 31, 2022. The Group's equity ratio increased from 57.6% as of December 31, 2022 to 58.5% as of March 31, 2023, despite the higher balance sheet total due to the growth-related increase in inventories.

The order backlog continues to be robust, with incoming orders continuing to show a positive trend in the first quarter, resulting in a EUR 1.4 million increase in the order backlog to EUR 24.2 million at the end of the first quarter, compared to EUR 22.8 million at 31 December 2022.

Dr Andreas Bastin, CEO of the Masterflex Group: "We have had a successful start to the year in every respect, with strong momentum in revenue growth. The significant increase in earnings also underpins our promise to further expand the double-digit EBIT margin this year. While we continue to face certain challenges, such as the incalculable development of the Ukraine war, persisting shortages of raw materials, persistently high inflation in raw materials and wages, and rising interest rates, we have every reason to be optimistic about the rest of the financial year. Order backlog and order intake indicate a continuation of the positive business development of the first three months, which makes us confident that we will achieve the goals we have set for 2023."

Forecast 2023 reaffirmed

In view of the very good development in the first quarter and subject to no significant worsening of the situation in the Ukraine war, in the supply of raw materials or a substantial inflation-related disadvantageous increase in input as well as wage and salary costs, the Masterflex Group reaffirms the forecast for 2023. The Management expects an increase in revenue to between EUR 103 million and EUR 110 million in the 2023 financial year. At the same time, the operating EBIT is expected to be between EUR 11.0 and 14.0 million.

Conference Call

A conference call for media, analysts and institutional investors will be held today at 10:00 am (CEST). The quarterly statement and a company presentation on the financial figures for the first quarter of 2023 will also be published on www.masterflexgroup.com in the Investor Relations section.

About Masterflex SE:

The Masterflex Group is an expert on the development and manufacture of sophisticated connection and hose systems. With 14 operating units in Europe, America and Asia, the Group is represented nearly worldwide. Current drivers of its growth include internationalization, innovation, operational excellence and digitalization. Masterflex shares ((ISIN DE0005492938, WKN 549293, GSIN 549293) have been listed in the Prime Standard of the German Stock Exchange since 2000.

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