TeraPlast Group, the largest Romanian manufacturer of construction materials, announces a 17% increase in turnover in the first half (S1) of this year, compared to the same period last year. In the same period, EBITDA (profit before tax, depreciation and amortization) increased by 49%, from over 35 million lei yoy, to over 52 million lei. At the same time, TeraPlast SA concluded an agreement with Kingspan Group for the sale of the Steel division. The transaction concerns the entire participation of TeraPlast SA in Wetterbest and TeraSteel Romania and Serbia. The value of the division is estimated at 410 million lei, an amount that will be adjusted with the financial debts of the division at the date of the transfer of ownership over the shares of the subsidiaries, based on an agreed formula.

The actual transfer will be made in a period of 3-6 months, after fulfilling the suspensive conditions. “We open the half-yearly reporting season with good news. The performance of the first 6 months exceeded our expectations. It has been a record semester for TeraPlast and we are continuing our growth strategy. The results recorded in the first half of 2020 and the recently announced transaction confirm that at least part of the business environment is operating during this period. We managed to create value for our shareholders through the transaction with Kingspan, which we did at a price that offers a higher yield than on BVB,” said Ioana Birta, financial director of TeraPlast Group.

TeraPlast, the parent company of the Group, doubled its profitability in the first half of the year, compared to the same period last year. EBITDA increased from 15.2 million lei to over 31 million lei, marking a profit margin of 15.7%. During the same period, the turnover increased by 17%, to almost 200 million lei, as a result of the continuation of the infrastructure works and the opening of new construction sites.