TeraPlast Group improves profitability and reaches RON 719 million revenue in the first nine months of 2019

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Bogdan Tudorache

TeraPlast Group`s EBITDA, the largest Romanian manufacturer of construction materials, rose by 29% in the first nine months of 2019, reaching RON 68,3 million. The key drivers of the EBITDA improvement were TeraPlast and TeraPlast Recycling, with up to 50% increase in EBITDA compared to the same period of the last year. Moreover, the Group`s revenue increased by 22%, up to RON 719,14 million, in line with the budget.

„As a result of the construction market dynamics and the operational efficiency measures, the first nine months of the year reached the top in the Group`s history, in terms of both profitability and sales. We strengthened our market shares and we are determined to continue the development of the future projects in pursuance of a continuous growing trend” said Ioana Birta, CFO of TeraPlast Group. The best results in the first nine months of this year were recorded by TeraPlast and TeraPlast Recycling, with an increase of 28% in revenue, up to RON 278,5 million. The efficient employment of the production capacities is the key driver of the company’s EBITDA improvement, which rose by of 49% compared to the same period of last year, up to RON 27,88 million.

The increase of TeraPlast was determined mainly by the sales of sewage systems and water & gas systems for infrastructure projects. The company registered 40% revenue growth from sales of PVC sewage systems, and 80% revenue growth from sales of polyethylene systems. Hence, the Group strengthened its position as a detached leader in the exterior sewage market.

TeraSteel Romania and Serbia, market leader by volumes in the PUR and PIR segment in both countries, recorded a 18% revenue growth, up to RON 217 million, while EBITDA rose by 30%, up to lei 25,18 million. The 11,6% Terasteel EBITDA margin is above the industry average and reflects the maturity of the Serbian business, the scale-economies and the ability to adapt quickly to the market conditions in terms of raw materials purchasing strategy. TeraSteel supplies a wide and solid portfolio of wholesalers in the region, the company being among in top 5 key players in Hungary, Bulgaria and the Republic of Moldova. Furthermore, the company reaches new markets by developing premium solutions, such as mineral wool sandwich panels and Lead by TeraSteel turnkey halls.

Wetterbest’s revenue increased by 22%, up to RON 202 million, while EBIDTA exceeded RON 13,5 million, with a 10% increase compared to last year. Wetterbest EBITDA encompasses the operational expenses aimed to support the future development: higher wages, brand promotion and sales consolidation in the center and northern areas of Romania.

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