Masterflex SE Reports Increased Profitability in Q1 2024 Despite Revenue Decline

Masterflex SE has reported a profitability increase in the first quarter of 2024, achieving an operating EBIT margin of 16.3%, despite a decrease in revenue compared to the previous year. Masterflex, a leading developer and manufacturer of connection and hose systems, achieved a total revenue of EUR 26.2 million in the first three months, a decrease of 5.2% year-on-year, but managed to increase its operating EBIT to EUR 4.3 million from EUR 4.1 million during the same period in 2023.

The company attributes the strong profitability to increased efficiency and successful control of personnel costs, which have kept rising due to inflation. EBITDA also saw a modest rise to EUR 5.5 million, up by 1.8% from EUR 5.4 million in the first quarter of 2023. However, consolidated net income fell to EUR 2.8 million from EUR 3.4 million, primarily due to higher financing costs and a favorable tax effect in the previous year.

Looking ahead, Masterflex has a solid order backlog valued at EUR 20.8 million and confirms its full-year forecast for 2024, expecting revenue between EUR 100 million and EUR 107 million and an EBIT ranging from EUR 12 million to EUR 15 million. The company remains optimistic about its robust U.S. activities and anticipates positive developments in the aerospace and medical technology sectors.