The group’s consolidated EBITDA climbed 41% to RON91.2 million in 2019.
“We are close to the RON1 billion turnover threshold, which shows the group’s activity has doubled compared with two years ago. Also, we are committed to bringing added value to our shareholders through an 85% increase in net profit, which reached RON41.8 million in 2019, as well as by boosting the return on capital employed, from 9.3% in 2018 to 15% in 2019. The efficiency of the development strategy and the maturing of the businesses that recently entered the group also reflect in the EBIDTA, which has doubled in the last two years, reaching RON91.2 million. 2020 will see the advantages of the RON98 million investments carried out in 2019, which will significantly contribute to reaching a turnover of RON1.25 billion, in the context of an EBITDA of RON145 million,” said Ioana Birta, CFO of TeraPlast Group.
The largest company of the group, Teraplast SA, ended 2019 with a turnover of RON365 million, up 25% on the year, while its EBITDA soared 80% to RON37 million.
The best profit margin was reported by TeraSteel Romania and Serbia, which saw an 18% higher turnover of RON308.8 million, while the EBITDA grew 42% compared with 2018, up to RON37.6 million. The evolution of TeraSteel was due to savings on raw material purchases, and to increasing the usage of the production capacity in Serbia. As per the preliminary financial report, the market in Serbia still has a large growth potential for TeraSteel.
Wetterbest, the second largest player on the metallic tile market, reported a 22% increase in turnover, to RON269.9 million, and its EBITDA grew 4% to RON15.1 million.
TeraGlass saw an investment of RON16.1 million in 2019, and the production flow is fully automated for the manufacturing of windows and doors. In 2019, TeraGlass sold over 118,000 units, mainly on global markets. The company’s turnover stayed at RON28.9 million, while its EBIDTA halved to RON1.4 million (-56%).
Since April 2019, the group’s recycling activity has been carried out within the independent firm TeraPlast Recycling, which will merge with Politub, a producer of pipes and polyethylene fittings, owned by Teraplast SA.
For 2020, Teraplast Group aims to significantly boost the profitability and targets an EBITDA of over RON145 million, up 59% on the year, and a turnover of RON1.25 billion, up 29% versus 2019.