Romanian construction materials holding TeraPlast Group (BVB:TRP) continued its solid performance in 2021, with the turnover rising by 55%, to RON 615 mln - a record result in the current structure of the group.

Net profit (which does not include the impact of 2021 exits: RON 190 mln / EUR 38 mln) rose by 50% to RON 44.6 mln.

EBITDA reached RON 74.2 mln, an increase of 36% compared to the previous year.

While the revenues exceeded the projections of some analysts (RON 608 mln estimated by Swiss Capital, according to Ziarul Financiar), the profitability lagged slightly below expectations - and the disappointment was seen in the performance of the company’s shares: -1.23% after the FY 2021 report was released on February 7.

The consolidated result was positively influenced by the commissioning of some scheduled investments (the expansion of the capacities of the Installation Division and TeraPlast Recycling) but was burdened by non-recurring costs related to the ramp-up of new investments, which amounted to almost RON 3.7 mln, the company explained.

The group continued to sell significant volumes despite the rise in raw material costs and a decline in the construction sector in the second half of 2021, the company stresses.

The conditions of the construction market did not allow the full transfer into the market of the record increases in raw material prices, it also explains.

Supply chain disruptions have caused delays in the delivery and commissioning of both the biodegradable packaging factory and some of the production lines for the Installation business. Delays have led to additional costs with employees and test materials that could not be recovered by the end of 2021. Starting this year, however, these investments will contribute more visibly to positive results.

(Photo: Teraplast Facebook Page)

andrei@romania-insider.com