TeraPlast aims for 29 percent increase in turnover in 2024

TeraPlast Group estimates a turnover of 864.5 million RON in 2024, an increase of 29 percent compared to 2023. The company expects an EBITDA of 71.7 million RON, +39 percent compared to 2023 and an EBITDA margin of 8.3 percent. The net profit of the TeraPlast group for this year is estimated at 10.6 million RON (vs. 1.1 million RON in 2023).

The takeover of the Wolfgang Freiler group is expected to be completed in the first half of the year.

Following successful negotiations, the agreement for the acquisition of the Wolfgang Freiler Group from the Uhl family in Austria has been signed in February. The entity holds modern production facilities in Hungary and a dynamic distribution division across multiple Central and Western European markets.

The transaction value has been set at 16.53 million Euro, covered from mixed sources (internal and bank financing), with an additional earn-out mechanism based on the EBITDA performance of the Freiler Group in 2024.

For the whole year 2023, EBITDA stands at 51.3 million RON, a 3 percent decrease versus 2022, mainly due to the decrease in the Compounds segment. EBITDA margin, Group level, slightly increased to 7.6 percent, while for the Installations segment remains in the double-digit range.

The Group’s gross margin increased from 32 percent to 37 percent, representing a 10 percent increase in absolute terms.

The consolidated turnover contracted by 5 percent in 2023, to RON 672 million, under the influence of the decrease in the Compounds segment. Exports reached 16 percent of the turnover and the Group’s products reached 22 European markets. In terms of quantities, total volumes are close to the 2022 levels – 75,346 tonnes in 2023 versus 76,931 tonnes in 2022 (-2 percent yoy). The quantities sold in the second half of the year, especially the 27 percent increase in volumes in Q4 2023 vs. Q4 2022 show positive market dynamics, well above that of 2022.

The net result of 2023 remained in positive range of RON 1.1 million despite business seasonality of the last quarter of the year. The Installations segment generated a net profit of RON 17.3 million. Two divisions had a net loss, Windows (RON 1.9 million lei) and Packaging (RON 15.7 million lei).