In line with budgeted targets, the group expects the net result to enter positive territory starting the third quarter.
In H1, EBITDA climbed by 15%, to almost RON27 million amid the expansion of the installation market along with contributions from Opal stretch films and recent acquisitions – the Wolfgang Freiler Group (Polytech & Pro-Moulding) and Palplast Moldova.
The EBITDA margin declined slightly to 6.3% in H1/2024, down from 7.3% in H1/2023, primarily due to sales price pressures from the market and efforts to expand market share. Additionally, the gross margin exceeded RON 150 million, reflecting a 29% increase compared to H1/2023, underscoring the effectiveness of the market share-focused strategy.
“Recent investments in expanding our product portfolio and the acquisitions of the Wolfgang Freiler Group and Palplast Moldova, along with organic growth, have brought robust results in the first half of 2024 for TeraPlast Group. These reflect the effectiveness of our strategy to expand and strengthen our businesses. We are on the right track to evolve from a regional leader to a European one, in line with our long-term vision,” stated Alexandru Stânean, CEO of TeraPlast Group.”
Quantitatively, TeraPlast Group experienced a significant volume increase of 57%, from 34,483 tons in H1/2023 to 54,009 tons in H1/2024. TeraPlast Group’s strategy of expanding its geographical footprint led to a doubling of sales outside Romania in the first half of 2024 compared to the same period in 2023.
“The current economic landscape is not ideal, and the markets we operate in are also experiencing it, displaying mixed trends: engineering works are advancing, while the residential sector is contracting, and inflation is impacting retail purchasing power. Moreover, the performance of our newly acquired companies is influenced by the below-expectations performance of the Western European markets. Our approach, focused on geographical expansion, reducing dependency on one market, agility in adapting to market contexts, and identifying opportunities, are core competitive advantages that significantly mitigate the adverse effects that volatile periods can have on the performance of TeraPlast Group,” Mr. Stânean added.
The Installations segment saw a 33% increase in revenue compared to H1/2023, reaching RON 307 million, and a 15% increase in EBITDA compared to the first half of last year, reaching RON 27 million, while the EBITDA margin is nearly 9%.
For the Compounds segment, revenue advanced by 14% compared to H1/2023, and the EBITDA margin was the highest within the Group, at 9.7%. The Flexible packaging segment contributed nearly RON 50 million to the Group’s consolidated revenue in the first half of the current year, but it is still in negative EBITDA territory.
The Windows and Doors business line had a similar performance as last year, with revenue 6% lower than in H1/2023, amounting to RON 23 million, but a positive EBITDA of RON 901 thousand, as the strategy shifts towards the non-retail segment while the residential segment is declining.
In H1/2024, revenue from non-retail client contracts increased by 38%, and the share of these contracts in total revenue reached 33%, 10 percentage points more than in 2023.
(English version by Catalina Apostoiu)