“We expected the Group’s results in the first six months of 2020 to be at least at the same level as 2019, but the demand was higher than expected. Therefore, we will have a 15% increase compared to the last year, with improved profitability. The Group’s management has implemented the needed measures to ensure an adequate liquidity and has reduced operating costs where necessary. It is important to focus on restarting the economy and the opportunities that will arise during the following period,” stated Ioana Birta, TeraPlast Group CFO.
For the first quarter of 2020, TeraPlast Group announced a turnover of RON208.9 million, 20% higher than the first quarter of 2019, and an EBITDA of RON17.4 million, 32% higher than in the same period of last year. The main drivers of growth during the first quarter were the Serbian factory and the Installation business line thanks to the positive evolution of the infrastructure works. These kept their positive trend during the second quarter as well and are reflected in the projections for the first half of 2020.
For the Plastics Division, the Group expects revenue of RON213 million for the first half of 2020, 18% higher than in the year-earlier period, and an EBIDTA of RON27 million, 54% higher than in the same period of last year.
The Steel Division is expected to reach RON265 million in revenue for the first half of 2020, 13% higher than in the same period of 2019, and an EBIDTA of RON20 million, 11% higher than in the same period of last year.
In the last two months, Teraplast Group implemented measures to protect the group’s businesses and employees, as well as to ensure their sustainability. Strict hygiene and prevention measures were set along with aligning the costs to the new business volumes. Part of this measures are the temporary management salaries reduction within a 25%-50% range.
”The TeraPlast Group management mentions that the present material provides preliminary estimated information for the January-June 2020 period. The Report containing the consolidated financial results for the afore mentioned period will be published, in accordance with the financial calendar, in July 27, 2020. Thus, the present information is estimated and can be subject to change in the half-year financial report,” per the announcement.