The TeraPlast Group, one of the main players in the construction materials market, registered a consolidated turnover of RON 338 million in the first half of 2018, doubling its turnover as compared to the first half of the previous year, about RON 172 million.
The main contributors to this growth were the last year’s business in the Group’s portfolio, namely Depaco (Wetterbest), Serbia’s sandwich panel factory and Politub business. Historically, the first semester accounts for approximately 40 percent of Teraplast’s annual business, according to the seasonality of the industry.
”The results of the first half of this year confirm that we approached the right strategy in 2017 through the three important acquisitions: Serbia’s TeraSteel Factory, Wetterbest Business Group Integration and Politub Activity. These have been a major development of our portfolio, have added value and will make a significant contribution to the development of our business in the medium term as evidence and the goal of doubling our turnover over last year. Profit evolution is a result of increased turnover, which is why over the next 6 months we will focus on increasing business efficiency and improving margins, especially on metallic tile segments and water, gas and sewerage systems, ” Ioana Birta, financial manager of TeraPlast Group, stated.
The segment of sandwich panels generated a turnover of RON 112 million, up 74 percent over the same period last year, in the context of an EBITDA increase of 58 percent. This increase was mainly generated by the Serbian factory, where products are sold in 8 European countries.
Starting in 2018, the Group’s financial statements include Depaco, whose turnover increased by 25 percent over the first six months of the previous year by continuing to develop the segment of industrial building roofs and increasing its presence in the north of the country.
Wetterbest continues its strategy of increasing its market share. The Plastics Division recorded revenues of RON 145 million in S1 2018, up 35 percent over S1 2017. In this segment, the TeraPlast Group is the market leader in which it operates and at the same time constantly improves its presence in the neighboring countries.
The grain segment achieved a notable performance: revenues of RON 32 million, a 40 percent increase compared to the first half of 2017, with the EBITDA margin remaining at 12 percent. On this segment, TeraPlast is the number one manufacturer in Romania, respecting its promise to develop a wide range of granules, according to the customer’s technical specifications, providing cable manufacturers with the most effective solutions.
Based on these competencies, TeraPlast has improved its presence in neighboring countries. According to company representatives, private sector construction is still on the rise, but in the context of slowdown in consumer growth and industrial output, it does not expect the opportunities that the market offered in 2017. As far as infrastructure projects are concerned, there are many public auctions started and not allocated, therefore the Group’s business will be determined this year by the private sector dynamics.
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