Bogdan Tudorache

TeraPlast Group, the largest Romanian construction materials manufacturer, registered a RON 99,1 million EBITDA in the first nine months of 2020, 46% higher than in the same period of last year. The Group’s turnover rose by 14% compared to the first nine months of 2019, up to RON 816,2 million.

“The organic growth in the first nine months of the year shows that our Group can adapt, find solutions and perform even in the difficult context of 2020. We could have increased more but we were limited by the production capacities for several main product groups. The need to increase the production capacities is one of the reasons we are planning investments of over EUR 20 million. We have submitted the first investment project, worth EUR 7,9 million, within the state aid scheme. In the coming period we will submit another three investment projects to increase the production capacities and develop new products. We will continue to bring value to our shareholders and these results represent an additional motivation” stated Ioana Birta, TeraPlast Group CFO.

In the third quarter, TeraPlast continued to be the most profitable company of the Group with an EBITDA margin of 16,8% in the first nine months. The company’s EBITDA, of RON 53,9 million, is almost double compared to the operational performance in the same period of last year. TeraPlast’s turnover rose by 15% y/y and reached RON 321,6 million, due mainly to the water and sewerage infrastructure works. The infrastructure market perspectives are positive for the next 2 years thanks to the investments within POIM (Large Infrastructure Operational Program financed through European funds) and the launch of PNRR (the National Program for Recovery and Resilience).

TeraPlast aims the expansion of the production capacity for the Installation business line, namely the pipes and fitting portfolio. To achieve that, the company submitted the first investment project within the state aid scheme to stimulate the investments with a high impact in the economy. The total value of the project is EUR 7,9 million, out of which 50% represent the requested state aid. The implementation of the project will be finalized in April 2022, and following the project 45 jobs will be created.

Wetterbest is on a positive trend with its EBITDA registering a 32% increase compared to the first nine months of 2019, reaching RON 17,6 million. The company’s profitability margin improved significantly reaching 7,9%, and the is still room for improvement. Wetterbest’s turnover reached RON 222,7 million, 10% more than in the first nine months of 2019. The lifting of the state of emergency gave way to new opportunities in the market. During this time, the potential of the new production unit in Baicoi began to be visible.

TeraSteel’s turnover rose by 13% in the first nine months of 2020 compared to the same period of last year, up to RON 246 million. The company’s EBITDA rose by 7%, up to RON 26,5 million after the first nine months of the year. TeraSteel is number one on the thermal insulating panels market in Romania and Serbia.

TeraGlass registered a 35% decrease of its EBITDA in the first nine months of 2020, despite the 24% increase in turnover in the same period, that represents the biggest increase of the Group’s companies. The company showed an improved trend for its EBITDA in the third quarter compared to the previous quarters but here too remains room for further improvement.

In July 24, TeraPlast signed an agreement with Kingspan Group to sell its Steel division. The transaction aims the entire stake TeraPlast has in Wetterbest and TeraSteel Romania & Serbia. The transfer will take place after all customary and closing conditions will be satisfied – a process still in progress.