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Romania's Promateris targets 70% rise in turnover in 2021

Romania's Promateris targets 70% rise in turnover in 2021 Promateris CEO Tudor Georgescu Source: Promateris

BUCHAREST (Romania), September 1 (SeeNews) - Romanian industrial packaging producer Promateris [BSE:PPL] targets a turnover of 40 million euro ($47.2 million) before the end of 2021, after recording a consolidated turnover of 17 million euro in the first half, up 60% year-on-year, it said.

The company expects to maintain the trend of recent years, with significant increases of turnover year over year - 39% in 2020, 57% in 2019 and 28% in 2018, it said in a press release on Tuesday.

"In the first half of the year, we continued to invest in company development and building production capacity by purchasing state-of-the-art equipment, training the technical and management teams, and investing in the research and development department," Promateris CEO Tudor Georgescu said.

"The financial results for the first half are in line with our expectations and motivate us to continue to make progress towards sustainability and innovation."

The group, which also includes packaging distribution company Biodeck, reported a consolidated EBITDA of 2.8 million euro in the first half of 2021, up 106% on the year.

The positive financial results were primarily generated by the expansion of the production of biodegradable and compostable packaging, the company noted.

Promateris also said it has consolidated its position on the Romanian market and abroad by developing distribution channels in the CEE region, in countries such as Greece, Poland, and Hungary.

Promateris was founded in 1991 as Prodplast and was rebranded in November 2020.

In July, the company announced that it plans to invest 15 million euro over the next five years in diversifying the activity and product portfolio by introducing new business lines related to the principles of the Green Pact launched by the European Union.

In June, Promateris said that it has completed a 2.5 million euro investment in a compostable and biodegradable packaging line at its factory in Buftea.

Promateris shares traded 15% higher at 5.75 lei ($1.38/1.17 euro) as at 1433 CET on Wednesday on the main segment of the Bucharest Stock Exchange.

($=0.8462 euro)