March 10 (SeeNews) - Romanian industrial packaging producer Promateris [BSE:PPL] said on Thursday that it plans to intensifying its M&A activity in order to develop its portfolio, as well as tap into new markets this year.
In 2022, Promateris is considering acquiring local or regional companies with a green component that can generate high added value and support the creation of group synergies, it said in a press release.
Promateris also aims to access new markets in the region and strengthen its position in the key European Economic Community (EEC) markets in which it operates.
At the same time, the company seeks to diversify the product portfolio that complies with the principles of the circular economy by providing a wide range of products and services dedicated to the modern retail sector.
"In 2022, we will continue the accelerated growth we registered in the last years. Therefore, we are considering investments in biomaterials to strengthen our leading position in the Central and Eastern European region by developing biodegradable and compostable packaging production capacity at the Buftea factory," Promateris CEO Tudor Georgescu said.
"At the same time, we intend to start the production of raw material based on corn starch, intended for the production of compostable packaging. With the launch of this business line, Promateris will be the first company in Eastern Europe to produce raw materials based on corn starch. In the transition to a green economy, our main goal is to develop our presence in the regional markets and reach a turnover of 100 million euro ($110.3 million) by 2025."
Promateris plans to continue to invest in developing bioplastics capacity to strengthen its position as a regional leader and in vertical integration by starting the production of bio-based compounds.
Last year, Promateris has invested in state-of-the-art equipment, increasing production capacity by an annual 36%. The company has managed to reduce its carbon footprint by recycling more than 1,000 tons of industrial waste from the production of biodegradable packaging, process enabled by the recycling line installed at the premises.
In 2021, Promateris registered a consolidated turnover of 37.8 million euro, up 62% compared to the previous year. The group, which includes the distribution company Biodeck, recorded a consolidated EBITDA of over 6 million euro, 129% more compared to 2020. At the same time, the company recorded a net profit of 3.7 million euro, an increase of 405 % compared to 2020.
For this year, the company targets revenues of 47.7 million euro, EBITDA of 7.3 million euro and a net profit of 4.3 million euro.
Promateris was founded in 1991 as Prodplast and was rebranded in November 2020. The company specializes in packaging made from renewable, biodegradable and compostable materials.
Promateris shares traded 0.61% lower at 16.2 lei ($3.6/3.3 euro) as at 1438 CET on Thursday on the main segment of the Bucharest Stock Exchange.
(1 euro=4.9488 lei)