BUCHAREST (Romania), October 26 (SeeNews) - Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said that its net profit soared by an annual 41% in the first nine months of 2021, to 43.3 million lei ($10 million/ 8.7 million euro).
The rise in profit reflects increases in both sales volumes and efficiency of operations, the group said in a statement filed with the Bucharest Stock Exchange on Monday.
The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by an annual 32% in the first nine months of 2021, reaching 64.5 million lei, while the operating profit increased by 37% year-on-year to 50.5 million lei.
The EBITDA margin of 14.3% shows continuous improvement, although in the third quarter there was a slowdown, the group said, adding that market uncertainty and substantially higher raw material costs were adverse factors and a brake on performance acceleration.
The group's turnover rose 46% year-on-year to 415 million lei during January-September.
"Overall, we have maintained our upward trend and keep a double-digit growth rate, in spite of the less favorable market conditions compared to previous quarters. The delay in infrastructure projects, including delays in recalculating contract prices based on new raw material and labor costs, has spread vertically in the construction market, to all suppliers and all companies operating in our field," TeraPlast Group CFO Ioana Birta said.
According to the group, the macroeconomic climate is dominated by multi-level uncertainties (raw material costs, energy prices, public policies, supply chains pressures), and therefore the entire business environment bears short- and medium-term risks.
TeraPlast Group comprises flagship company TeraPlast SA, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast.
Blue-chip TeraPlast SA's shares traded 4.21% lower at 1.23 lei as at 1330 CET on Tuesday on the Bucharest Stock Exchange.
(1 euro=4.9476 lei)