Teraplast shifts to profit at end-Sep after losses in H1

Romanian construction materials group Teraplast (BVB: TRP) reported RON 6.8 million (EUR 1.3 million) net profit in January-September, less than half compared to the RON 16.3 million earnings in the same period last year but an outstanding performance after the losses posted in H1.

The company has a notable market capitalisation of nearly RON 1.1 billion (EUR 220 million) after the 1.63% advance of its shares on the day it reported Q3 results.

"We've experienced a consistently improved demand resulting from the more accelerated development of infrastructure projects [...]. Unfortunately, the other segments, although they are generally on a positive quarterly trend, do not stand at the expected level [...] due to the unfavourable context," explained Ioana Birta, CFO of TeraPlast Group.

Teraplast's turnover contracted 8% y/y to RON 517 million in January-September.

The group's EBITDA edged down by 7% y/y to RON 45.0 million in the first nine months of the year. It was derived almost entirely from one of the group's four segments of activity (Installation and Recycling). The same sector boasted the highest EBITDA margin, 11.5%, compared to 8.7% on average for the entire group.

For the full year 2023, TeraPlast estimates a turnover of RON 674 million (-5% y/y) and an EBITDA of RON 56 million (+5.6% y/y), which would result in an 8.3% EBITDA margin. The group's main driver will remain Installations & Recycling.

(Photo source: TeraPlast)