Romanian plastic products manufacturer TeraPlast Group [BSE:TRP] said that its net profit jumped by an annual 71% in the first half of 2021 to 28.7 million lei ($6.9 million/ 5.8 million euro).
The net profit was generated by the businesses in the current structure of the TeraPlast Group, excluding the impact of the exit from the Steel division and the window profiles business from earlier this year, the group said in a statement filed with the Bucharest Stock Exchange, BVB, on Monday.
The group’s earnings before interest, taxes, depreciation and amortisation (EBITDA) rose by an annual 47% in the first half of 2021 to 42.7 million lei, while the operating profit increased by 63% year-on-year.
The EBITDA margin stood at 15.7%, above the budgeted level and by 0.8 percentage points above the level of the same period last year.
The consolidated results of the first six months include the effects of Somplast integration since the second quarter, that added the flexible packaging business line to the group.
The group management said that it continues to analyse strategic options for expanding, including through M&A.
"Comparing these results to the first half of 2020 - at that time considered a new record in terms of financial performance - confirms the success of our positioning and accelerated profitable development strategy in both plastics processing and green economy, through biodegradable packaging and rigid PVC recycling," TeraPlast Group CFO Ioana Birta said.
TeraPlast Group also said it expects that it will book a turnover of 636 million lei and an EBITDA of 89.1 million lei for 2021.
TeraPlast Group is comprised of the flagship company TeraPlast SA, TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast.
TeraPlast SA shares traded 1.29% lower at 0.9190 lei as at 1040 CET on Tuesday on the Bucharest Stock Exchange.
(1 euro=4.9208 lei)