The businesses added last year to the group’s portfolio had the main contribution to this growth: Depaco (Wetterbest), the sandwich panel manufacturer in Serbia and the Politub business. Historically, the first semester represents about 40% of TeraPlast’s annual business, as to the seasonality of the industry, the company said in a press release.
“The results of this half-year confirm we had the right strategy with the three major acquisitions we made in 2017: TeraSteel factory in Serbia, the Wetterbest business and the Politub activity. These represented a diversification of our portfolio, have brought value- added and will contribute significantly to the mid-term development of our business, our goal of doubling last year’s turnover standing as proof. During the following 6 months we will focus on improving our business and increasing the margin, mainly on the metal tile roofing segments and water, gas and sewage systems,” said Ioana Birta, financial manager of TeraPlast Group.
Beyond consolidating the new acquisitions, each business line continued its organic growth, in line with the group’s strategy, which has mainly relied on the development of the distribution network, its increased presence on European markets and the innovation capacity in developing new products.
The group’s steel division, the sandwich panel segment, generated a turnover of RON112 million, up 74% compared with the first half of 2017, while its operating profit grew 58%. Growth was generated especially by the Serbian factory, from where products are marketed to eight European countries. The manufacturing plant in Bistrita focuses on developing the premium segment.
Starting with 2018, the financial statements of the group also include the company Depaco, which had a 25% increase in turnover compared to the first six months of the previous year, by continuing the development of the roofing segment for industrial constructions and an increased presence in the north of the country. Wetterbest is continuing its strategy of increasing market share.
TeraPlast’s plastics division recorded revenues of RON145 million in the first half, 35% more than in the year-earlier period.
The compounds segment recorded revenues of RON32 million, up 40% on the year, while maintaining the EBITDA margin at 12%.
According to company representatives, private sector constructions are still on a growing trend, but with consumption and industrial output slowing down, TeraPlast does not expect the opportunities the market offered in 2017. In terms of infrastructure projects, there are many engaged and not awarded bids, therefore the results of the group will be generated in relation to the private sector this year as well.
TeraPlast Group includes PVC processor and construction materials manufacturer Teraplast (TRP.RO), subsidiaries Terasteel and Terasteel Serbia, Teraglass, Teraplast Logistic, Teraplast Hungary (distribution company), Depaco (metallic tile manufacturer), and Politub (pipeline manufacturer).
TeraPlast Group had a turnover of RON422 million in 2017 and invested over RON112 million. The group has around 700 employees in Romania and 50 in Leskovac, Serbia.