Romanian construction materials group TeraPlast (BVB: TRP) announced that its EBITDA shrunk by 25% YoY to RON 48.5 mln (nearly EUR 10 mln) in January-September, despite the 25% YoY rise in sales to RON 564 mln (EUR 112 mln).

The net profit recorded in the period was almost EUR 16.4 mln (EUR 3.2 mln), down 62% YoY.

The company's shares dropped by 5.5% on October 26 after announcing Q3 results, bringing the market capitalisation to RON 1.13 bln (EUR 230 mln).

The EBITDA margin, 8.6%, is "slightly down" compared to the first half of this year, the company explains, as a result of the "very challenging macroeconomic context in 2022, which led to a decrease in the number of infrastructure construction projects and the postponement of the contracting of some new ones to the end of the year or the first part of 2023." EBITDA's decline also reflects the "record results" last year, the company also says.

Furthermore, the Group's result is burdened by the operational losses of the Flexible Packaging segment: the company invested over EUR 10 mln in a large-scale compostable bags factory that failed to generate revenues "in a climate of reduced private consumption."

andrei@romania-insider.com

(Photo source: Facebook/Teraplast)