Masterflex SE presents Annual Report 2022: Net profit +137% - Another record year in sight

• Group revenue increased by around 27% to EUR 100.3 million (previous year: EUR 79.1 million)
• EBIT margin clearly in double figures at 11.4% (previous year: 7.3%)
• Net profit more than doubled to EUR 7.8 million (previous year: EUR 3.3 million) - Earnings per share increased by 137% to EUR 0.81 (previous year: EUR 0.34)
• Significant dividend increase to EUR 0.20 per share (previous year: EUR 0.12) planned
• Forecast 2023: Growth in revenue to EUR 103 million to 110 million and in operating EBIT to EUR 11 million to 14 million planned

Gelsenkirchen, March 31, 2023 – Masterflex SE (ISIN: DE0005492938) today presented its audited consolidated financial statements for the financial year 2022, confirming the preliminary figures published on March 21, 2023. The Group succeeded in exceeding the forecast range for revenue and earnings that was raised in October. Masterflex completed a new record year in 2022 and, as promised, achieved a return to a double-digit EBIT margin.

In the financial year 2022, Masterflex SE achieved consolidated revenue of EUR 100.3 million. This means that the specialist for innovative hose systems has not only reached a new record level, but also the revenue target of EUR 100 million set for 2024, two years earlier than planned. Compared to the previous year's revenue of EUR 79.1 million, the Group recorded an increase of 26.8%. The pleasing development in revenue reflects the stable demand in the addressed markets, above all in the aerospace, life science and medical technology sectors, but also in the traditional industries.

On the margin side, the productivity gains from the implemented B2DD programme were particularly noticeable, which, in addition to economies of scale from higher sales volumes, showed their full effect and contributed to the achievement of a sustainable double-digit EBIT margin in the financial year 2022. At the same time, it was possible to largely compensate for the increased energy and material costs through the price adjustments agreed with customers. Accordingly, the operating EBIT increased to EUR 11.4 million in the financial year 2022 after EUR 5.8 million in 2021. The operating EBIT margin thus rose significantly to 11.4% (previous year: 7.3%). Thanks to the uninterrupted good demand over the entire year 2022, Masterflex SE thus exceeded the forecast raised in October 2022 in terms of both revenue and earnings. This forecast provided for revenue in the range of EUR 92 million to 96 million and an operating EBIT of EUR 9.3 million to 10.5 million.

In the reporting year, the consolidated result more than doubled to EUR 7.8 million compared to the previous year (EUR 3.3 million). Earnings per share according to IFRS undiluted and diluted increased by 137% to EUR 0.81 (previous year: EUR 0.34).

The financial position of the Group has further improved compared to the previous year. The cash and cash equivalents of the Masterflex Group amounted to EUR 9.8 million as at 31 December 2022 (previous year: EUR 9.6 million). Net debt as at the end of 2022 was therefore EUR 16.8 million, a slight increase on the previous year's figure of EUR 15.9 million. Despite the contractual repayments of the syndicated loan, this reflects the increase in liabilities from finance leases due to the conclusion of a long-term rental agreement. The consolidated equity of the Masterflex Group increased by EUR 7.0 million to EUR 52.0 million as at the balance sheet date of 31 December 2022 (previous year: EUR 45.0 million), in particular, due to the strong increase in profits. The equity ratio (equity in relation to total assets) improved by one percentage point from 56.7% as at 31 December 2021 to 57.6% at the end of the 2022 financial year.

At EUR 22.8 million, the order backlog as at 31 December 2022 was able to maintain the high level of the previous year (EUR 22.9 million). At the same time, Masterflex recorded a continued robust order intake, which led to an increase in the order backlog to EUR 23.9 million in the first two months of 2023.

Against this background, the Management expects growth to continue in the current year. Specifically, the Management Board expects an increase in revenue to EUR 103 million to EUR 110 million and an operating EBIT in the range of EUR 11 million to EUR 14 million.

Dr Andreas Bastin, CEO of the Masterflex Group, comments: "We are proud to have delivered a new record year last year despite all the uncertainties. Our order intake continues to be at an unusually high level for us, and we are correspondingly confident for 2023. In the development phase ahead of us, the focus is now on growth at Masterflex, both organic and inorganic. Having already achieved our medium-term target of revenue growth to EUR 100 million two years ahead of schedule, the focus is now on the next milestone of EUR 200 million, which we are currently aiming to achieve by 2030."

Dividend

The Management Board and Supervisory Board propose to the Annual General Meeting to distribute a dividend of EUR 0.20 per share (previous year: EUR 0.12 per share) from the net retained profits as at 31 December 2022 of Masterflex SE. This corresponds to an increase of around 67%. The date for the Annual General Meeting 2023 is 7 June 2023.

Annual Report
The Annual Report 2022 was published on www.masterflexgroup.com.

Conference Call

A conference call will be held for representatives of the press, analysts and institutional investors on 31 March 2023, 10:00 am. The current investor presentation on the 2022 business figures will be published on www.masterflexgroup.com. To register, please send an e-mail to [email protected].

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 (GSIN 549293) have been listed in the Prime Standard of the German Stock Exchange since 2000.

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