Group EBITDA neared RON12 million, 32% higher year-on-year, exceeding the budget for the same period.
Sales outside Romania increased by 32% and accounted for 17% of the consolidated turnover in the current year’s first quarter. TeraPlast Group’s products reach 22 European countries, primarily Hungary, the Republic of Moldova, and Germany.
Positive contributions to the Group’s results were brought by the start of production at the Opal stretch film factory and the integration of Palplast’s operations in the Republic of Moldova, the recently acquired company.
„The acquisition of Palplast has proven to be a resounding success, with sales nearly 50% higher. All tests conducted with the customers of the stretch film factory have been successful, giving us confidence that we will become the market leader in Romania. The growth strategy we have implemented begins to show its results, and thanks to our new production capacities, we can deliver Romanian products of the highest quality where we used to find imports in previous years. All these without the consolidation of Freiler Group’s results, which will begin in the second quarter. The vision of transforming TeraPlast Group into a regional leader is taking shape,” stated Mr. Dorel Goia, Chairman of the TeraPlast Board of Directors.
The Group’s sales volumes increased by 50% in Q1/2024 compared to Q1/2023, reaching 23,355 tons. The decrease in raw material prices was passed on to the market to increase the utilization rate of production capacities and consolidate market shares.
The results of the Installation segment continued to generate the highest turnover, reaching RON122 million in Q1/2024, a 19% increase compared to Q1/2023, while the EBITDA margin approaches 10%, driven by significant volume growth.
For the Compounds business line, the EBITDA margin has normalized to 11%, while sales have stagnated in value. The Group remains focused on increasing market share, and in the first quarter, TeraPlast managed to achieve this by replacing part of the imports.
For recycled material, the context remains unfavorable due to the decline in prices for virgin raw materials. Volumes sold to third parties are currently below estimates, but overall (including quantities sold to TeraPlast’s Installation segment), volumes have increased by 48% compared to Q1/2023.
The Flexible Packaging segment doubled its turnover in the first quarter, up to RON24 million. Sales of TeraBio Pack’s polyethylene and biodegradable/compostable flexible packaging are at budgeted levels, with smaller losses compared to previous years.
The Windows & Doors segment saw a 16% decrease in revenues compared to the first quarter of last year, a level in line with the budget. At the same time, the EBITDA margin improved as the Group adapted its strategy for this segment, focusing on sales to Romania’s residential and rehabilitation new projects market to reduce dependence on retail.
TeraPlast has a RON1.23 billion capitalization.
(English version by Catalina Apostoiu)