The group’s turnover grew 17%, to RON487 million.
“The performance in the first six months exceeded our expectations. It was a record semester for TeraPlast and we continue our growth strategy,” said Ioana Birta, CFO of TeraPlast Group.
At the same time, the group’s EBITDA increased 49%, from over RON35 million to over RON52 million.
TeraPlast SA, the parent company of the group, doubled its profitability in the first half of the year. EBITDA increased from RON15.2 million to over RON31 million, marking a profit margin of 15.7%. During the same period, the comapny’s turnover grew 17%, to nearly RON200 million duw to a high number of ongoing infrastructure projects and the opening of new construction sites.
Wetterbest, one of the leaders of the metallic roof tiles market in Romania, posted 11% growth in turnover, from over RON105 million to over RON116 million in the first half.
In March 2020 the company inaugurated the new factory in Baicoi, following a RON44.5 million investment. The new factory has increased its annual production capacity to over 10 million square meters of metallic roof tiles.
The upward trend on the industrial segment is reflected in the performance of TeraSteel Romania and Serbia, which recorded double-digit increases in the first half of 2020.
TeraSteel’s turnover increased by 19%, from RON130.8 million in the first half of 2019, to RON156 million in the same period of 2020. TeraSteel’s EBITDA exceeded RON16 million, 24% more than in the first half of 2019.
TeraGlass is currently performing below expectations in terms of profitability, although it has recorded the largest increase in sales among the Group’s companies. In the next period, the development of this business is a priority, the company said.
On July 24 TeraPlast SA concluded an agreement with Kingspan Group for the sale of the Steel division. The transaction concerns the entire participation of TeraPlast SA in Wetterbest and TeraSteel Romania and Serbia. The value of the division is estimated at RON410 million, an amount that will be adjusted with the financial debt of the division at the date of the transfer of ownership, based on an agreed formula.
The actual transfer will be made in a period of 3-6 months, after fulfilling the customary closing conditions.
TeraPlast shares grew 24% on the Bucharest Stock Exchange Monday following the sale announcement.
TeraPlast SA is 47% by Dorel Goia, while pension fund NN Pensii owns 11%, and investment fund KJK Balkan Holding holds 10%.