TeraPlast Group increased its EBITDA by 41% in 2019
The TeraPlast Group, the largest Romanian manufacturer of construction materials, registered an increase of 21% in turnover, for 2019, compared to the previous year, reaching 972.6 million RON. During the same period, the Group’s total EBITDA rose by 41%, reaching 91.2 million RON.
These achievements are a direct result of the favorable market conditions, as well as of the previous investments made by the Group’s companies.
”We are very close to the one billion RON in turnover mark, which is twice what the Group registered two years ago. Additionally, we’ve managed to keep our promise to create value to our investors, by increasing the net profit by 85%, to 41.8 million RON in 2019, as well as by increasing the rentability of capital employed from 9.3% in 2018 to 15% in 2019. The efficiency of our development strategy and the maturation of the businesses that have recently become part of the Group are also reflected within the EBITDA, which has doubled in the last two years, reaching 91.2 million RON.
In 2020, we will reap the benefits of the 98 million RON we invested in 2019. These will contribute significantly to the target turnover of 1.25 billion RON, with an EBITDA of 145 million RON,” stated Ioana Birta, Chief Financial Officer of the TeraPlast Group.
TeraPlast was the best performer of 2019, with an increase in business of 25%, reaching 365 million RON, while its EBITDA registered an increase of 80% compared to the same period last year, reaching 37 million RON. In 2019, the company manufactured and sold over 16 million linear meters of pipes, more than 8 million pieces of fittings and roto formed products, 7 million linear meters of window profiles and more than 14 thousand tons of compounds.
TeraSteel Romania and Serbia registered the best profit margin, out of all the Group’s companies. The increase of the sandwich panel segment margins is a result of the savings made within the acquisition of raw materials, as well as of the higher usage of the Serbian production capacity. The Serbian market continues to be a high potential market for TeraSteel. The company registered an increase in business of 18% in 2019, compared to the same period the previous year, reaching 308.8 million RON. Meanwhile, TeraSteel’s EBITDA registered an increase of 42% compared to 2018, reaching 37.6 million RON. The quantity of sales has also increased last year, by over 30%, with TeraSteel selling more than 3.8 million square meters of sandwich panels and 7 thousand tons of galvanized steel purlins.
The turnover for Wetterbest, the second largest metallic tiles manufacturer in Romania, increased by 22% in 2019, reaching 269.9 million RON, with the company’s EBITDA reaching 15.1 million RON in 2019. Wetterbest sold 5 million square meters of metallic tiles in 2019, more than 2 million square meters of self-supporting steel sheet, and more than 4 million pieces of drain systems and accessories. The 44.5 million RON investment project started in 2019 and completed by the first part of 2020, will support the increase of the market share and profitability.
TeraGlass benefited from a 16.1 million RON investment in 2019, and, following this process, its workflow was completely automated to produce windows and doors. In 2019, TeraGlass sold more than 118.000 units, mainly on international markets.
The substantial investments made in 2019, in Wetterbest and TeraGlass, are the main drivers for growth in 2020, together with TeraPlast.
For 2020, the Group estimates a significant increase in profitability, with a budgeted EBITDA of over 145 million RON that represents an increase of 59% compared to 2019, and a turnover of 1.25 billion RON, an increase of 29% compared to 2019.