Acasă » General Interest » TeraPlast’s activity picks up in Q2, EBITDA up 58%

TeraPlast’s activity picks up in Q2, EBITDA up 58%

26 July 2023
General Interest

TeraPlast managed to return to a positive bottom line, which stood at RON 1,6 million for the second quarter (Q2) and which partially compensates the negative results of the first quarter. For the whole semester, the negative result was reduced to below RON 1 mn (RON 998 th). The market conditions were unsatisfactory since the end of last year but were in line with the expectations.

For this reason, the Group has implemented an aggressive operational efficiency policy which enabled it to reconstruct the bottom line, with good perspectives for the following quarters. The Group’s forecasts entail a sharp increase in demand for the second half of the year.

The consolidated turnover for the first half of the year was RON 320,5 million, a 14% decrease year-on-year. There is, however, an improvement in sequential terms, with an 18% increase from the first quarter, driven by the seasonality of the Installation & Recycling segment. The decrease was also generated by deflation of the prices in the first part of the year compared to the same period of last year driven by a slump in raw material prices.

Group’s EBITDA stood at RON 23,2 million, a 35% decrease compared to the first half of 2022 against limited demand, but at an increased level compared to the first quarter. A dilution of the base effect becomes obvious as well as an acceleration of the activity that exceeds last year’s levels. EBITDA for the second quarter of 2023 increased by 58% compared to the first quarter, while last year the same increase was only 29%.

The dilution of the base effect is obvious in the quantitative sales as well. The sold quantities (tonnes) increased in the second quarter of last year by only 5% over the first quarter of 2022, however, this year the quantity rose by 21%, from 16.800 tonnes in the first quarter to 20.300 tonnes in the second quarter, leading to total quantities of 37.000 tonnes for the first half of the year. This evolution points to a trend that is favourable to reaching the forecast for the whole year.

Cost controls and a thorough production management led to an improvement of the quarterly performances, EBITDA margin reaching 7,3% at the end of the first semester. In the consolidated results, the performances of Installations & Recycling as well as Compounds, including recycled, which represent the core activities of the group stand out in terms of sales and profitability. EBITDA margin of Installations & Recycling reached double digits at 10,2 in H1/2023 while Compounds & Recycled had an EBITDA margin of 9,5%. Flexible packaging and Doors & Windows evolve slower than expected due to the challenging context that is translated in a slow demand for the domestic market as well as exports.

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