Cumulative revenues at the level of the productive companies in the holding are increasing by 5.6% compared to Q1 2023, in the conditions of a declining construction materials market. ROCA Industry, majority owned by the private equity company ROCA Investments, is the first strategic holding created to generate value by consolidating and modernizing Romanian production capacities to increase the competitiveness of the national industry.
Compared to the results of Q1/2023, the cumulative EBITDA at the level of ROCA Industry companies increased by 63.2%, and the turnover recorded increases of 5.6%. These results represent the effects of the implementation of the strategy at the holding level and the optimizations brought within the portfolio companies, both at the operational, commercial, financial level, but also at the level of management teams, and highlight the ability of this holding structure to generate value for the entire managed portfolio.
ROCA Industry’s performance was achieved in the context where the volume of construction works as an adjusted series decreased by 11.8% in January-February 2024 compared to the same period of 2023, while construction works on residential buildings contracted 36.9%. Also, the number of building permits was lower by 7.2% in the first quarter of 2024 compared to the first quarter of 2023, after decreasing by 20.6% in 2023 compared to 2022. (according to INSSE data)
“The results obtained in Q1/2024 are the effect of our vision of long-term sustained growth. As early as 2023, we have implemented a strategy for the organic growth of the portfolio companies, in parallel with the operational, commercial and professional development of the teams, all with the aim of improving our performance. We started reaping the fruits of the implementation of this strategy, so that all companies in the holding have positive EBITDA and have reached the budgeted targets for this period, proving that we are on the right path and consolidating our position on the market”, said Ionut Bindea, CEO of ROCA Industry.
All companies of ROCA Industry holding show positive EBITDA developments in the first quarter of this year.
BICO Industries (70% ownership by July 2023, 60% thereafter), the largest producer of fiberglass mesh in Eastern Europe and the third largest producer in the EU, reports a turnover of RON41.7 million, up 2.6% from Q1/2023 and EBITDA of RON4.5 million, respectively a 300% increase. In the first quarter, the company completed an investment project worth EUR1 million, equipping the factory in Vulcanesti with high-performance equipment for the production of knitted netting. As of Q1/2024, BICO is also a supplier of screed reinforcement materials, turning a cost-generating waste into a viable product.
EVOLOR (100% ownership), one of the largest players in the paint and varnish production industry, reaches a turnover of RON18.7 million, representing an advance of 6.3% compared to the similar period in 2023. EBITDA, worth RON1.7 million in the first quarter of the year, is below the value of Q1/2023, a year that was exceptional for the company. The company announces a 20% increase in production capacity with the relocation to the new factory.
Eco Euro Doors (100% ownership), the largest Romanian manufacturer of doors for residential construction, reports in Q1/2024 a turnover of RON13.8 million, with an EBITDA margin of 12.8%, an advance of 46% compared to the value from Q1/2023.
With a turnover of RON10.9 million and an EBITDA margin of 25.9%, Workshop Doors (70% ownership from February 2024), the most recent acquisition, is being integrated into the holding structure. The merger between WD and EED is expected to take place in Q2 and Q3 of 2024.
DIAL (100% ownership), producer of metallic wire products, records the highest increase in turnover, namely 55.5%, reaching RON18.8 million, but also an EBITDA almost 7 times higher compared to the first quarter of the year past, including the launch of new products, the maximization of existing channels and the identification of new sales channels, implicitly through the development of the export area, the correlation of production with the needs identified in the sales area, and optimizations brought by the purchasing department.
ELECROPLAST (100% ownership from July 2023), one of the most important producers of electrical cables, reaches a turnover of RON37.7 million and EBITDA of RON2 million in the first months of 2024, up 61.9% compared to Q1/2023. The company completed the implementation of the Industry 4.0 project. for the digitization of the factory and received approval for an investment project worth more than 9 million euros, aimed at the major re-engineering of equipment and the tripling of production capacity by 2026.
Roca Industry has a market value of RON206 million and is 65.95%-owned by Roca Investments. ROC1 shares have lost 10.8% so far in 2024, amid deals worth RON5.4 million, as per stock market data.