It said its EBITDA grew 32% on the year in the first quarter, to RON17.4 million.
“Despite the difficult context starting March, we kept a balanced profitability margin at group level and even performed in certain areas. Our production facilities are all operational and we adapt to the current environment. It is premature to estimate the impact the following economic crisis will have upon our business but the results of the first quarter indicate that we might close 2020 with a performance similar to what we had in 2019,” said Ioana Birta, CFO of TeraPlast Group.
TeraPlast had the best evolution during the first quarter of 2020. Its revenue grew by 28% on the year due to growth in infrastructure works. At the same time, the company generated 72% of the Group’s EBITDA and marked the best profitability margin of 14.3% due to operational efficiency measures.
TeraSteel registered a RON5.9 million EBITDA, slightly higher compared with the first quarter 2019, and its revenue rose grew 24% on the yera. The Serbian factory continued to be the main driver of growth for this business since the one in Romania operates at full capacity.
Wetterbest and TeraGlass registered moderate growth in revenue compared with the first quarter of 2019 due to a drop in sales in March.
“These companies were the most impacted by the healthcare crisis since roof systems, windows and doors are addressed to final beneficiaries. The eroded profitability of the two companies is due to additional costs with ramping up recent investments of last year. Moreover, the staff structure was tailored in order to support the budgeted growth in 2020. Considering the current context, both companies implemented measures to cut personnel costs and offer support for their employees,” the group said.
TeraPlast Group is 46.8% owned by local businessman Dorel Goia, while KJK Balkan Holding owns 10%.