TeraPlast Group reports 32 percent organic growth in Q1 profitability

TeraPlast Group, the largest Romanian construction materials manufacturer, registered a 32 percent growth in EBITDA in Q1-2020, up to RON 17,4 million, despite the outbreak of the coronavirus crisis in March. The Group’s turnover rose by 20 percent in the same period, up to RON 208,9 million.

„Our Group implemented extensive investment projects in 2019, worth almost RON 100 million. In the first quarter of 2020 we focused on getting these investments within normal functioning parameters, as they set the ground for our development during the next years. Despite the difficult context we find ourselves in, 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”, stated Ioana Birta, CFO of TeraPlast Group.

TeraPlast revenue rose by 28 percent year/year, amid the evolution of the infrastructure works. At the same time, the company generated 72 percent of the Group’s EBITDA and marked the best profitability margin of 14,3 percent due to operational efficiency measures.

The TeraSteel business registered a RON 5,9 million EBITDA, slightly increasing compared to the first quarter of 2020, while the revenue rose by 24 percent compared to the same period. The Serbian factory continues to be the main driver of growth for this business since the one in Romania operates at full capacity. TeraSteel is one of the main producers of thermal insulating panels, galvanized steel purlins and turnkey halls in the CEE area and its products reach 25 European countries.