TeraPlast turnover reached 170.5 million RON, up by 58 percent in first quarter

TeraPlast Group reports revenue growth in the first quarter, in line with recent developments. Operating margins, although down from the same period last year, are a significant improvement over the last quarter (Q4 / 2021).

The turnover increased in the first three months of the year by 58 percent, up to 170.5 million RON, determined also by the start of production in new units following the investments made.

The net profit amounted to RON 6.8 million, decreased compared to the 1st quarter of last year. The decrease compared to the record profit of Q1 / 2021 was generated by a relative reduction to the margin in the Installations segment and a negative result of the flexible packaging division.

EBITDA stood at 15.6 million RON, which represents a margin of 9.2 percent. The level is down by 11 percent compared to the first quarter of the previous year. However, EBITDA increased by 54 percent compared to the 4th quarter of last year, and the EBITDA rate improved in the same period by 3 percentage points.

“The accelerated growth of the group’s turnover, by 58 percent, brought us very close to the quarterly historical turnover maximum of the third quarter of 2021 (by only 4 percent below this record level) and above the level of the second quarter of 2021, despite the specific seasonality at the beginning of the year. The inevitable comparison with the same period of last year requires some clarification: the group has a different structure now, with new business lines being commissioned. The consolidated result also suffered from delays in starting production of the new lines, but since March we have seen an improvement in operating margins. This improvement puts us on the right track to achieving our ambitious 2022 budget targets. ” said Ioana Birta, Chief Financial Officer of TeraPlast Group. She added: “In the last two years we have learned to navigate a difficult environment, dominated by crises. We are satisfied with the performance of the mature businesses in the group and we are confident that the investments made in the new business lines will start to catch up in time. We have learned to mitigate the impact on the Group as much as possible, to maintain good control over working capital and investment to ensure our long-term development. The current market climate is more difficult than last year, but we have the right approach, based on the investments made to meet our ambitious goals in 2022.”