TeraPlast Group reported 97 per cent increase in turnover in Q1 2018

TeraPlast Group, one of the main players in the construction market, posted a 131 million RON turnover in the first quarter of 2018 (1st quarter 2017: 67 million RON). The main contributors to this increase were the businesses that joined the group's portfolio in 2017: Depaco - Wetterbest, the sandwich panel factory in Serbia and the Politub business.

2018-05-03 11:03:36

TeraPlast Group includes TeraSteel Romania and TeraSteel Serbia (producers of sandwich panels and galvanized metal structures), TeraPlast (manufacturer of PVC pipes, granules and profiles), Depaco (Wetterbest metal tile manufacturer), TeraGlass (PVC window and door manufacturer) and the distributor TeraPlast Hungary.

Steel Division, TeraSteel Romania, TeraSteel Serbia and Depaco, generated 56 per cent of the Group's turnover in the first quarter of this year.

Starting 2018, the Group′s financial statements includes Depaco, a company controlled by TeraPlast since January. Depaco registered a turnover of 25 million RON, up with 13 per cent compared to Q1 2017. Through its synergy with TeraSteel, Depaco also accessed industrial construction projects, for which it provided blackboards, registering a 65 per cent increase in sales on this segment. On a growing residential building market, Wetterbest continues its market share growth strategy.

From the perspective of the TeraPlast Group′s management team, 2018 began as a volatile year, and we do not have any reasons to believe that this volatility will decrease in the next quaters. In these first three months, the competition between manufacturers was primarily on price, as showed by the Group's EBITDA margin of 6 per cent for Q1 2018.

The growth driver of the construction market will continue to be the private sector. For the infrastructure sector, which represents 12% of the group′s turnover for the year 2018, there are no clear forecasts.
In this context, it turns out that the diversification of activities was a correct strategy. The Group will continue to integrate the purchased businesses in order to increase the overall business efficiency.