Masterflex SE: Good Figures for FY 2016 - Profitability Increased Again

Revenue Eur 66.5 m - growth 3.7% * EBIT Eur 6.1 m * Net income Eur 2.9 million * EpS Eur 0.34

Gelsenkirchen (pta006/27.03.2017/07:30 UTC+2) '
* Revenue of Eur 66.5 million - growth of 3.7%
* Operating earnings of Eur 6.1 million - EBIT margin grew by a good 25% to 9.2%
* Net income of Eur 2.9 million - earnings per share of Eur 0.34
* Provisional figures for 2016 confirmed

Masterflex SE maintained the growth rates of previous years in financial year 2016: The revenue of the international specialist provider of high-tech hoses and connection systems increased by 3.7% to Eur 66.5 million in 2016. Operating earnings (EBIT) increased by as much as 25.2% to Eur 6.1 million. This equates to an EBIT margin of 9.2%. Even without non-recurring effects, the thus adjusted EBIT still grew by 21.1% to Eur 5.9 million.

Dr Andreas Bastin, CEO of the Masterflex Group: "The past financial year was as labour-intensive as it was successful. Much was accomplished in the past year. In addition to the further significant improvement in profitability, we also grew robustly in terms of innovation. We launched a range of new or enhanced hoses and connection products on the market, such as the Master-PUR L-F Trivolution® and an extruded double hose. In particular, we started developing intelligent hoses. Under the AMPIUS brand, we want to be the very first company on the market to offer networkable options for our entire hose portfolio."

In addition, the Masterflex Group significantly expanded its production and storage capacity. Bastin: "This building is a major project for us, so we are all the more delighted that we were able to make the investment of around Eur 7 million as planned. In addition to optimising our production and delivery capability, we thus successfully concluded the first measures to improve our internal processes at the headquarters in 2016. We expect the extensive and in parts very detailed package of measures to result in a lasting improvement in our efficiency."

Improved cost discipline also contributed to the good operating earnings. The material cost ratio - defined as material costs in relation to gross revenue - of 31.0% was down on the previous year (31.6%). The staff cost ratio was also virtually stable, being only slightly higher than 2015's rate of 39.4% at 39.5%. In addition, other operating expenses were reduced 6.9% to Eur 11.7 million. The depreciation and amortisation of Eur 2.7 million was slightly lower than in 2015 due to the scheduled phasing out of assets.

The financial result amounted to Eur -1.3 million in 2016. The decline on the previous year (Eur -1.0 million) is attributable to ancillary costs for the syndicated loan that was also renegotiated in the past year and to the overall increase in financial liabilities due to the construction of the extension.

Earnings from discontinued operations deteriorated compared to the previous year (Eur -0.4 million) by nearly 50% to Eur -0.6 million. This is due the Düsseldorf Higher Regional Court's verdict in 2016 that the Masterflex Group must repay the purchase price and a portion of the ancillary costs from the sale of two former subsidiaries in 2011. Masterflex has lodged an appeal, which has not yet been decided upon. Nonetheless, the accounting provision had to be increased by around Eur 0.6 million in the past financial year.

All in all, net income for financial year 2016 increased by 50.3% to Eur 2.9 million. This translates to 34 cents per issued share.

The company has thus confirmed the provisional figures for financial year 2016 published in March.

The key figures are shown below.

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Emitter:	Masterflex SE Willy-Brandt-Allee 300 45891 Gelsenkirchen Germany
Contact Person:	Dr. Annette Littmann
Phone:	+49 209 97077-0
E-Mail:	a.littmann@masterflexgroup.com
Website:	www.MasterflexGroup.com
ISIN(s):	DE0005492938 (Share)
Stock Exchange(s):	Regulated Market in Frankfurt; Free Market in Berlin, Dusseldorf, Hamburg, Munich, Stuttgart