"The financial results of TeraPlast Group in 2023 bear the imprint of a macroeconomic environment filled with challenges. Nevertheless, the overall performance was relatively similar to that of 2022, TeraPlast said in a press release.
The group's installations business generated a net profit of 17.3 million lei in 2023, while the windows and packaging divisions booked net losses of 1.9 million and 15.7 million lei, respectively.
The consolidated turnover of the group came in at 672.3 million lei in 2023, down 5% year-on-year. Earnings before interest, tax, depreciation, and amortisation (EBITDA) totalled 51.37 million lei at the end of last year, which is an annual decrease of just 3%.
During the last quarter of 2023, EBITDA rose 52% on the year to 6.36 million lei, mainly due to the contribution of the installations segment.
"These results reflect the challenging economic context, with a decrease of demand for some of our markets, which led to us directing our efforts to preserving volumes, market shares and margins," said Ioana Birta, CFO of TeraPlast Group.
In 2023, TeraPlast commissioned a major investment, the stretch film factory, and concluded the negotiations for the acquisition of Palplast and Freiler Group, with these M&As bringing one-off costs of 1.2 million lei, the CEO said, adding that the group is embarking on 2024 "strengthened by these acquisitions and with excellent perspectives on Western European markets."
For 2024, the group has budgeted a 30% year-on-year growth of its turnover, to 864.5 million lei, and an almost nine-fold increase of its net profit, to 10.6 million lei, with the highest growth rate expected in the installations division.
TeraPlast Group is a major polymer processor in Central and Eastern Europe. The group includes parent company TeraPlast, as well as subsidiaries TeraGlass, TeraPlast Recycling, TeraBio Pack and Somplast.
Blue-chip TeraPlast's shares traded 4.21% lower at 0.592 lei as of 1334 CET on Monday on the main market of the Bucharest Stock Exchange.
Jul 5, 2024
