“During the first quarter, the plans of margin improvement showed their results, on the background of a favorable context in the construction sector. We are on track to reaching the objectives of 2019 in terms of EBITDA and turnover and we are capitalizing on the investments made in the last two years,” said Ioana Birta, CFO of TeraPlast Group.
The Wetterbest division had the sharpest increase in turnover, reaching RON44 million in the first quarter, compared with RON25.5 million in the same period of 2018.
TeraPlastSA had a RON17.5 million increase in turnover due to the start of the water and sewage infrastructure projects, financed by EU funds. This increase in volumes, as well as measures taken to improve the operational performance of the company led to an EBITDA increase to RON5.7 million, up 39% compared with the first quarter of 2018.
TeraSteel’s sandwich panel sales increased by RON8 million in the first quarter compared with the same period of 2018 mostly due to the increase of the Serbian subsidiary. This evolution was the result of the increase of the customer base in the Balkans area as well as the consolidation of existing partnerships, the Group said.
In 2019, the Group will invest more than EUR23 million to expand its production capacities and the diversify its product portfolio.
For the full year, TeraPlast Group expects total revenues of RON977.5 million, 21.4% higher than in 2018, and a gross profit of RON51.2 million, nearly double compared with 2018.