Masterflex SE increases operating EBIT by 80.7% in the first nine months of 2022 - Double-digit EBIT margin target sustainably achieved

• Strong growth of Group revenue by 27.6% to EUR 76.0 million
• Group operating EBIT jumps by 80.7% to EUR 10.4 million
• Earnings target "Double Digit" sustainably achieved with 13.7% EBIT-margin
• High order backlog of EUR 24.1 million and robust order intake
• Forecast for the 2022 business year raised

Gelsenkirchen, 09 November 2022 - The Masterflex Group (ISIN: DE0005492938) generated revenue of EUR 76.0 million in the first nine months of the current financial year (9M/2021: EUR 59.6 million). This corresponds to a year-on-year increase in revenue of 27.6%. The growth is based equally on volume and price effects as well as a favourable development on the currency side due to the strong US dollar.

Group EBITDA reached EUR 14.1 million in the reporting period (9M/2021: EUR 9.3 million) and thus recorded an increase of 50.7%. Operating earnings before interest and taxes (operating EBIT) for the nine-month period 2022 jumped by 80.7% to EUR 10.4 million (9M/2021: EUR 5.8 million). The operating EBIT margin after nine months was 13.7% compared to 9.7% in the same period of the previous year. Masterflex SE has thus sustainably achieved the "double digit" earnings target. Consolidated earnings for the first nine months of 2022 almost doubled to EUR 7.3 million (9M/2021: EUR 3.8 million). Accordingly, earnings per share rose to EUR 0.76 after EUR 0.39 in the comparable period of the previous year.

The development of results was characterised by rising raw material, freight and energy prices. However, the inflationary effects were largely offset by price adjustments. Personnel costs rose disproportionately compared to revenue and mainly due to growth, which can be seen in the decline of the personnel employment ratio (measured against total output) from 37.4% (9M/2021) to 32.3% (9M/2022). The higher sales volumes were thus noticeably reflected in the result, which in particular reflects the successful implementation of the B2DD (Back to Double Digit) programme of measures.

Broken down by customer sector, the development from the previous quarters continues. The classic industries, especially mechanical engineering, automotive and aviation, as well as medical technology, continued to show high demand dynamics. The high-margin medical technology business accounted for 18% of revenue. Business in America also continued to develop dynamically. Overall, the growth was supported by all companies of the Masterflex Group.

The order backlog at the end of the third quarter of 2022 amounted to EUR 24.1 million (9M/2021: EUR 15.4 million). Order intake remains at a very satisfactory level, which, in combination with the high order backlog, provides a solid basis for further development.

Dr Andreas Bastin, CEO of the Masterflex Group: "We are experiencing a pleasing business development across the whole range of our activities. Above all, we are benefiting from the cross-industry application possibilities for our hose and connection systems and, thanks to our in-depth industry expertise, from the return of all customer industries to growth. The order situation remains robust and makes us optimistic about the further course of the 2022 financial year and beyond. Overall, 2022 is an extremely successful year for Masterflex, crowned by the promised return to a sustainable double-digit EBIT margin."

Forecast raised

At the end of the third quarter, the Masterflex Group exceeded the previous forecast for the 2022 financial year. As announced in the ad hoc release of 24 October 2022, the Management has raised the previous forecast for the 2022 financial year on the basis of the successful business development and the solid order backlog. The Company now expects an increase in revenue to between EUR 92 and 96 million (previously: EUR 83 to 87 million) and an operating EBIT of between EUR 9.3 and 10.5 million (previously: between EUR 8.3 and 9.0 million) for the 2022 financial year.

Selected key figures

*) unaudited

The 9-month report as at 30 September 2022 is available on the Internet at masterflexgroup.com/investor-relations.

About Masterflex SE:

The Masterflex Group is an expert for 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 are internationalization, innovation, operational excellence and digitalisation. Masterflex shares (GSIN 549293, ISIN DE0005492938) have been listed in the Prime Standard of the German Stock Exchange since 2000.

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Susan Hoffmeister
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