(AOF) – Specialized in the marketing of culinary accessories, Mastrad announces that its consolidated turnover amounts to 6.97 million euros, down 27% over the financial year compared to the previous financial year. It posted a negative Ebitda of 785,000 euros against a profit of 676,000 euros a year earlier. The results for the past half-year are not in line with its expectations due to major supply difficulties in its factories, whether in terms of raw materials (steel, silicone, etc.) or electronic components.
Similarly, the strong tensions and higher prices in its supply chain have seriously slowed down and increased the cost of its deliveries.
Mastrad was nevertheless able to adapt its prices, in order to partially offset the increase in costs, thus limiting the drop in EBITDA.
The group has reduced its fixed costs and its payroll, thus generating annual savings of around 500,000 euros over the new 2022-2023 financial year and has closed its two loss-making business units in Hong Kong and Chicago in order to focus on the most carrier of its activity, namely its wireless temperature control systems.
Mathieu Lion, CEO of the group, commented on its half-year results: “In a degraded market for our classic products but growing sharply for our connected products, we are persevering in our strategic pivoting and our operational and capital restructuring. (…) The figure revenue from our IoT products is up sharply over the current half-year, demonstrating the soundness of our strategy”.
The group’s cash as of June 30, 2022 amounted to 383,000 euros compared to 386,000 euros as of June 30, 2021. “Cash must be reconstituted in the short term before returning to profitable growth”, explained Mastrad. Discussions are underway with our financial partners regarding the terms of financing which should take place in early 2023 in the form of a capital increase with maintenance of preferential subscription rights.
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The French beauty and hygiene market continues to decline
In recent years, the French have simplified their beauty routines, which has resulted in lower spending. According to Kantar, the weight of personal care and beauty in spending on consumer products has steadily decreased over the past five years, dropping below 10%. Thus in 2021, health and beauty expenditure accounted for 8.5%. For the NielsenIQ panelist, the development of telework penalizes the sector because teleworkers reduce their health and beauty purchases twice as quickly as the average French person. This trend is likely to continue in 2022. To this is added another negative factor: with inflation and the loss of purchasing power, the French will certainly carry out arbitrations in their spending, which could be at the expense of the hygiene-beauty.