“These results reflect the challenging economic context, with a decrease of demand for some of our markets, which led to us directing our efforts to preserving volumes, market shares and margins. We had to undergo a different environment than the one we anticipated in the beginning of 2023, especially with regards to a slower pace of infrastructure works and residential renovations, as well as a weak demand for Compounds.” stated. Ioana Birta, CFO of TeraPlast Group.
Exports accounted for 16% in turnover, with the group’s products reaching 22 countries of Europe.
In terms of quantities, total volumes are close to the 2022 levels – 75,346 tonnes in 2023 versus 76,931 tonnes in 2022 (-2% yoy). The quantities sold in the second half of the year, especially the 27% increase in volumes in Q4 2023 vs. Q4 2022 show positive market dynamics, well above that of 2022.
For 20254, the group budgeted RON864 million turnover and net profit of RON10.6 million, as TeraPlast has a series of acquisitions underway.
“2023 was a full year in terms of events and business expansion. We commissioned a major investment, the stretch film factory, and concluded the negotiations for the acquisition of Palplast and Freiler Group. These M&A operations brought one off costs which amounted to RON 1.2 million. We embark on 2024 strengthened by these acquisitions and with excellent perspectives on Western European markets” added Ioana Birta.
“Moldavian and Hungarian markets are important for our Group, therefore production delocalisation to those markets was natural. This expansion brings several advantages. Firstly, we cut logistic costs and therefore product costs. It is a major problem for Romanian businesses which face high waiting times in the border crossings and customs as we are still outside Schengen area. Secondly, the synergies in raw materials, product mix and production capacities make us more agile in the market, and all these economies of scale are converted into profits for the Group and its shareholders. Moreover, the efficiencies in logistics and product mix will lower our carbon footprint. The integration of these new businesses in TeraPlast Group’s structure will bring efficiency at all levels and will increase the competitive position of our business. We also take part in strengthening the European industry which can service the demand in the common market with quality products and competitive prices, superior to those from the outside of EU, even in turbulent times like these marked by conflicts.” stated Dorel Goia, Chairman of the Board of TeraPlast.
The company has a RON1.3 billion capitalization an dis 46.8% controlled by Dorel Goia.
(English version by Catalina Apostoiu)